7. DIVESTITURES AND ASSETS HELD FOR SALE

Chef Boyardee^® Business

During the first quarter of fiscal 2026, we completed the sale of our Chef Boyardee^® business for net proceeds of $607.0 million, including working capital adjustments. The business results were previously reported in our Grocery & Snacks, International, and Foodservice segments. We recognized a gain on the sale of $42.7 million within Loss (gain) on divestitures in fiscal 2026.

The assets and liabilities related to our Chef Boyardee^® business have been reclassified as assets and liabilities held for sale within our Consolidated Balance Sheets for the period presented prior to the divestiture. The assets and liabilities related to our Chef Boyardee^® business classified as held for sale reflected in our Consolidated Balance Sheets were as follows:

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Frozen Fish Business

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During the first quarter of fiscal 2026, we completed the sale of our frozen fish business, which includes our Van De Kamp’s^® and Mrs. Paul’s^® brands for net proceeds of $41.9 million, including working capital adjustments. The business results were previously reported primarily in our Refrigerated & Frozen segment. We recognized a loss on the sale of $0.5 million within Loss (gain) on divestitures in fiscal 2026. In connection with the sale of this business, we recognized an impairment charge of $27.2 million in our Refrigerated & Frozen segment within Loss (gain) on divestitures during fiscal 2025.

The assets related to our frozen fish business have been reclassified as assets held for sale within our Consolidated Balance Sheets for the period presented prior to the divestiture. The assets related to our frozen fish business classified as held for sale reflected in our Consolidated Balance Sheets were as follows:  

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Agro Tech Foods Limited Divestiture

During the first quarter of fiscal 2025, we completed the sale of our 51.8% ownership stake in Agro Tech Foods Limited (“ATFL”) for net proceeds of $76.8 million. Prior to the transaction, our majority ownership of ATFL was consolidated within our International segment. We recognized a loss of $2.3 million on the sale within Loss (gain) on divestitures in fiscal 2025. In connection with this divestiture, we also released $41.8 million and $38.0 million of currency translation losses from accumulated other comprehensive loss and noncontrolling interests, respectively. During fiscal 2024, we recognized impairment charges of $36.4 million within Loss (gain) on divestitures related to this business. As a result of the timing of certain tax elections, we recognized income tax expense of $11.1 million in fiscal 2026 associated with this divestiture.

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Other Assets Held for Sale

During fiscal 2026, we sold a certain manufacturing facility and related warehouse in our Refrigerated & Frozen segment for net proceeds of approximately $26.5 million. We recognized a gain of $8.3 million on the sale within SG&A expenses in fiscal 2026 included in restructuring activities (see Note 3). These assets have been classified as assets held for sale within our Consolidated Balance Sheets for the period presented prior to the sale.

In addition, we actively market certain other assets from time to time. These assets have also been reclassified as assets held for sale within our Consolidated Balance Sheets for periods prior to the disposal of the individual asset groups.

The other assets currently classified as noncurrent assets held for sale in our Consolidated Balance Sheets were $13.0 million and $34.9 million as of May 31, 2026 and May 25, 2025, respectively.

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