During the fourth quarter of fiscal 2026, we entered into a definitive agreement to sell our business in Brazil to Café Três Corações

S.A. (3corações) for a base price of R$800.0 million, subject to certain specified deductions and customary post-closing adjustments.

The sale is anticipated to close in calendar 2026, subject to regulatory approvals and other customary closing conditions. As a result,

we have classified relevant assets and liabilities (the disposal group) associated with our Brazil business as held for sale in our

Consolidated Balance Sheets as of May 31, 2026. Additionally, in the fourth quarter of fiscal 2026, we recorded a $1,031.8 million

non-cash pre-tax loss to value the disposal group at the lower of its carrying value or fair value less costs to sell based on estimated net

proceeds, which was based on Level 2 inputs in the fair value hierarchy and includes the impact of accumulated foreign currency

translation losses that will be reclassified to earnings upon sale. We recorded the loss in restructuring, transformation, impairment, and

other exit costs in our Consolidated Statements of (Loss) Earnings, which included a $753.1 million reserve against the assets held for

sale and a $264.9 million accrual of the remaining difference between the carrying amount and the estimated net proceeds within

liabilities held for sale. We will monitor changes in the estimated net proceeds that could further impact the value of the disposal


In Millions	May 31, 2026
Cash and cash equivalents	$37.9
Receivables	157.4
Inventories	59.3
Prepaid expenses and other current assets	15.6
Land, buildings, and equipment	134.9
Other intangible assets	57.2
Deferred income taxes	253.1
Other assets	37.7
Gross assets held for sale	$753.1
Reserve for assets held for sale	(753.1)
Assets held for sale	$—

Accounts payable	$110.6
Other current liabilities	53.8
Other liabilities	20.5
Gross liabilities held for sale	184.9
Loss in excess of assets held for sale	264.9
Liabilities held for sale	$449.8

During the first quarter of fiscal 2026, we completed the sale of our United States yogurt business to Groupe Lactalis S.A. and

During the third quarter of fiscal 2025, we completed the sale of our Canada yogurt business to Sodiaal International and recorded a

pre-tax gain of $95.9 million. In the first quarter of fiscal 2026, we recorded a sale price adjustment that resulted in a $7.9 million

During the third quarter of fiscal 2025, we acquired NX Pet Holding, Inc., representing Whitebridge Pet Brands’ North American

premium cat feeding and pet treating business, for a purchase price of $1.4 billion (Whitebridge Pet Brands acquisition). We financed

the transaction with cash on hand and new debt. We consolidated Whitebridge Pet Brands into our Consolidated Balance Sheets and

recorded goodwill of $1,086.7 million, an indefinite-lived intangible asset for the Tiki Pets brand totaling $289.0 million, and a finite-

lived customer relationship asset of $31.0 million. The goodwill is included in the North America Pet segment and is not deductible

for tax purposes. The pro forma effects of this acquisition were not material. The consolidated results are reported in our North

America Pet operating segment on a one-month lag. In fiscal 2026, we recorded a $31.9 million decrease to goodwill, primarily related

to adjustments to certain purchase accounting liabilities upon finalization of income tax returns recorded in the second quarter of fiscal

During the fourth quarter of fiscal 2024, we acquired a pet food business in Europe, for a purchase price of $434.1 million, net of cash

acquired. During the first quarter of fiscal 2025, we paid $7.7 million related to a purchase price holdback after closing conditions

were met. We financed the transaction with cash on hand. We consolidated the business into our Consolidated Balance Sheets and

recorded goodwill of $317.5 million, an indefinite-lived brand intangible asset of $118.4 million and a finite-lived customer

relationship asset of $14.2 million. The goodwill is included in the International segment and is not deductible for tax purposes. The

pro forma effects of this acquisition were not material. The consolidated results are reported in our International operating segment on