RESTRUCTURING AND OPTIMIZATION	9 Months Ended
Sep. 27, 2026
Restructuring and Related Activities [Abstract]
RESTRUCTURING AND OPTIMIZATION	RESTRUCTURING AND OPTIMIZATION Hog Production Reform On October 16, 2026, we entered into agreements with VisionAg Hog Production, LLC (“VisionAg”) pursuant to which we will sell approximately 40,000 sows and the associated commercial hog inventories located on certain Company-owned and contract farms in North Carolina to VisionAg, and assign certain contract grower agreements to VisionAg. The sale of sows will be financed through an interest-bearing note over a 30-month period. We also entered into a ten-year master lease agreement to lease the associated company-owned hog production facilities to a contract grower for VisionAg. These leases provide for annual base rent of approximately $1 million and include the option to purchase the leased properties during the lease term at predetermined prices. In addition, the parties amended existing supply, transportation, genetic material, and other commercial agreements to support the transition of the operations. We continue to maintain commercial relationships with VisionAg under these amended agreements, including a long-term market hog supply agreement. As a result of these agreements, we expect to produce approximately nine hundred thousand fewer hogs per year, which will be supplied by VisionAg. Springfield, Massachusetts Facility In October 2026, we exited our leased Springfield, Massachusetts dry sausage production facility and consolidated production across our network, including at our Nashville, Tennessee facility. The decision to close the Springfield facility was part of the Company’s ongoing efforts to optimize its manufacturing footprint and improve operational and cost efficiencies. During the third quarter and first nine months of 2026, we recognized $5 million and $11 million, respectively, in accelerated depreciation and amortization, employee termination benefits and other exit costs in cost of sales in the condensed consolidated statement of income. The lease terminates in March 2027 and we expect to recognize an additional $2 million in exit costs through the termination date. Administrative Process Optimization In the fourth quarter of 2025, we commenced an initiative to modernize and optimize certain of our administrative and transactional processes. As part of this initiative, we will employ new and advanced technologies, including artificial intelligence and robotic process automation, that will allow us to drive significant improvements in operational efficiency and productivity. As a result of this initiative, during the third quarter and first nine months of 2026, we recognized $3 million and $8 million, respectively, in restructuring costs in selling, general and administrative expenses (“SG&A”) in the condensed consolidated statement of income and anticipate additional one-time restructuring costs totaling approximately $3 million in the fourth quarter of fiscal year 2026. Office Closures In the second quarter of 2025, we announced a plan to close our satellite offices in Lisle, Illinois and Kansas City, Missouri and move work performed at those locations to our headquarters in Smithfield, Virginia. As a result, we estimated and accrued $4 million of employee termination benefit costs in SG&A in the condensed consolidated statement of income in the second quarter of 2025 for personnel who were not expected to relocate. Subsequent office closure costs were not material. Workforce Reduction In the first quarter of 2025, we implemented a reduction in workforce initiative to streamline our operations and reduce operating expenses. We eliminated certain corporate and plant positions and recognized employee termination benefit costs totaling $9 million in the condensed consolidated statement of income in the first quarter of 2025 with $6 million classified in SG&A and $2 million classified in cost of sales.

On October 16, 2026, we entered into agreements with VisionAg Hog Production, LLC (“VisionAg”) pursuant to which we will sell approximately 40,000 sows and the associated commercial hog inventories located on certain Company-owned and contract farms in North Carolina to VisionAg, and assign certain contract grower agreements to VisionAg. The sale of sows will be financed through an interest-bearing note over a 30-month period. We also entered into a ten-year master lease agreement to lease the associated company-owned hog production facilities to a contract grower for VisionAg. These leases provide for annual base rent of approximately $1 million and include the option to purchase the leased properties during the lease term at predetermined prices. In addition, the parties amended existing supply, transportation, genetic material, and other commercial agreements to support the transition of the operations. We continue to maintain commercial relationships with VisionAg under these amended agreements, including a long-term market hog supply agreement. As a result of these agreements, we expect to produce approximately nine hundred thousand fewer hogs per year, which will be supplied by VisionAg.

facility was part of the Company’s ongoing efforts to optimize its manufacturing footprint and improve operational and cost efficiencies. During the third quarter and first nine months of 2026, we recognized $5 million and $11 million, respectively, in accelerated depreciation and amortization, employee termination benefits and other exit costs in cost of sales in the condensed consolidated statement of income. The lease terminates in March 2027 and we expect to recognize an additional $2 million in exit costs through the termination date.

In the fourth quarter of 2025, we commenced an initiative to modernize and optimize certain of our administrative and transactional processes. As part of this initiative, we will employ new and advanced technologies, including artificial intelligence and robotic process automation, that will allow us to drive significant improvements in operational efficiency and productivity. As a result of this initiative, during the third quarter and first nine months of 2026, we recognized $3 million and $8 million, respectively, in restructuring costs in selling, general and administrative expenses (“SG&A”) in the condensed consolidated statement of income and anticipate additional one-time restructuring costs totaling approximately $3 million in the fourth quarter of fiscal year 2026.

In the second quarter of 2025, we announced a plan to close our satellite offices in Lisle, Illinois and Kansas City, Missouri and move work performed at those locations to our headquarters in Smithfield, Virginia. As a result, we estimated and accrued $4 million of employee termination benefit costs in SG&A in the condensed consolidated statement of income in the second quarter of 2025 for personnel who were not expected to relocate. Subsequent office closure costs were not material.