On August 26, 2024, we completed a carve-out and distribution of our European operations to WH Group. The European carve-out represented a strategic shift in our geographical footprint. Accordingly, where applicable, the historical results of operations, assets and liabilities, and cash flows of the European operations have been condensed into separate line items and presented in the condensed consolidated statements of income, the condensed consolidated balance sheets and the condensed consolidated statements of cash flows as discontinued operations.

The following table presents the major components of net income from discontinued operations included in the condensed consolidated statements of income.


	Three Months Ended				Six Months Ended
	June 29, 2025		June 30, 2024		June 29, 2025		June 30, 2024
	(in millions)
Sales	$	—	$	926	$	—	$	1,735
Cost of sales	—		782		—		1,495
Gross profit	—		143		—		240
Selling, general and administrative expenses	—		55		—		105
Operating gains	—		(2)		—		(11)
Operating profit	—		90		—		146
Interest expense	—		2		—		2
Non-operating losses	—		5		—		6
Income from discontinued operations before income taxes	—		84		—		138
Income tax on discontinued operations	—		37		—		49
Net income from discontinued operations	$	—	$	47	$	—	$	89

Prior to the carve-out and distribution of our European operations, we completed the following acquisition, which is included in discontinued operations.

On March 28, 2024, our former European operations purchased a 50.1% stake in Argal Alimentacíon, S.A. (“Argal”), a Spanish producer of packaged meats products with approximately 1,480 employees, for €91 million ($98 million), subject to post-closing adjustments. The amount paid at closing was €82 million ($88 million) with the remaining balance due upon finalization of the purchase price. In August 2024, an additional €8 million ($9 million) was paid, which resulted in a final purchase price of €90 million ($97 million).