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.

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 August 30, 2026, and May 31, 2026. In the fourth quarter of fiscal 2026, upon initial

classification of the disposal group as held for sale, 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 included the impact of accumulated foreign currency translation losses that will be reclassified to earnings

upon sale. In the first quarter of fiscal 2027, we recorded an additional non-cash pre-tax loss of $23.7 million based on changes to the

carrying value of the disposal group, including the change in accumulated foreign currency translation losses, and a revised estimate of

net proceeds. We recorded the loss in restructuring, transformation, impairment, and other exit costs in our Consolidated Statements of

Earnings, and adjusted the reserve for assets held for sale and accrual for the loss in excess of assets held for sale accordingly.

On September 2, 2026, subsequent to the end of the first quarter of fiscal 2027, we completed the sale of our business in Brazil to

3corações. We expect to record certain customary post-closing sale price adjustments in the second quarter of fiscal 2027.


In Millions	Aug. 30, 2026
Cash and cash equivalents	$30.7
Receivables	87.7
Inventories	74.9
Prepaid expenses and other current assets	12.0
Land, buildings, and equipment	134.0
Other intangible assets	55.0
Deferred income taxes	254.6
Other assets	40.7
Gross assets held for sale	$689.6
Reserve for assets held for sale	(689.6)
Assets held for sale	$—

Accounts payable	$79.9
Other current liabilities	36.9
Other liabilities	20.3
Gross liabilities held for sale	137.1
Loss in excess of assets held for sale	365.9
Liabilities held for sale	$503.0

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