In the
first quarter
of fiscal
2026, we
entered into
two accelerated
share repurchase
(ASR) agreements
with an
unrelated
third-party
financial
institution
to
repurchase
an
aggregate
of
$
500.0
million
of
our
shares
of
common
stock.
We
paid
an
aggregate
of
$
500.0
million and received
an initial delivery
of
7.5
million shares of
our common stock
based on the
closing price of our
common stock on
July
1,
2025.
The value
of the
initial
shares
delivered
under
the
ASR agreements
represented
80
percent
of
the
aggregate
purchase
price, with
a fair
value of
$
400.0
million. The
ASR agreements
were funded
with proceeds
from the
sale of
the United
States yogurt
The
first
ASR
agreement
was
settled
on
August
4,
2025,
with
a
final
delivery
of
1.2
million
additional
shares.
The
final
average
purchase price for the first ASR agreement was $
50.41
per share, not including costs of execution or excise tax.
The
unsettled
balance
of
$
50.0
million
as
of
August
24,
2025,
related
to
the
second
ASR
agreement
is
included
as
a
reduction
to
additional
paid-in
capital
in
our
Consolidated
Balance
Sheets.
The
amount
was
settled
subsequent
to
the
end
of
the
first
quarter
of
fiscal 2026, with a final delivery of
1.3
million shares. The final average purchase price for the second
ASR agreement was $
49.45
share, not including costs
of execution or excise
tax. The total number
of shares ultimately purchased
and the price paid per
share was
determined upon
final settlement
based on
the daily
volume-weighted
average price
of our
common stock
over the
term of
the ASR
agreement, less a discount, and subject to customary adjustments pursuant
to the terms and conditions of the ASR agreement.
8.7
million shares of
our common stock
during the first
quarter of fiscal
2026 under the
ASR agreements reduced
the
outstanding
shares used
to determine
our weighted
average shares
outstanding
for purposes
of calculating
basic and
diluted EPS
for
the first
quarter of
fiscal 2026.
We
have also
evaluated,
as of
August 24,
2025, the
second ASR
agreement for
the potential
dilutive
effects
of the
shares remaining
to be
received upon
settlement, and
determined
that the
additional shares
would be
anti-dilutive
and
therefore were not included in our diluted EPS calculation for the first
quarter of fiscal 2026.