v3.26.3
Chobani Transactions
 9 Months Ended
Sep. 30, 2026
Unusual or Infrequent Items, or Both [Abstract]  
Unusual or Infrequent Items, or Both, Disclosure Chobani Transactions
During the third quarter of 2026, we completed a series of transactions with Chobani, including the sale of our equity interests in Chobani, as well as the sale of certain facilities, including our leasehold interests, to Chobani. The pre-tax impacts of these transactions on the unaudited Condensed Consolidated Statements of Income during the third quarter of 2026 were as follows:
(in millions)Income Statement LocationTotal
Sale of equity interests
Gain on sale of equity interestsGain on sale of equity method investment$(400)
Sale of Allentown facilities
Loss on sale of owned assetsOther operating expense (income), net65 
Gain on termination of leases upon assignmentOther operating expense (income), net(14)
Lease guarantees
Impact of guarantee of assigned leasesOther expense (income), net9 
Impact of expected credit loss liabilityOther expense (income), net10 
Total$(330)
SALE OF EQUITY INTERESTS
During the third quarter of 2026, we sold our equity interests in Chobani for aggregate consideration of $800 million, consisting of $400 million in cash received during the third quarter of 2026 and a $400 million promissory note, which matures on December 26, 2026. This sale resulted in a gain of $400 million during the period.
SALE OF ALLENTOWN FACILITIES
During the third quarter of 2026, we also sold our manufacturing facility and warehouse in Allentown, Pennsylvania, including the leasehold interests and equipment, to Chobani for proceeds of $125 million. We recognized a loss of $65 million on the sale of owned assets and a gain of $14 million on the termination of leases upon their assignment to Chobani.
LEASE GUARANTEES
In connection with the assignment of our manufacturing facility and warehouse leases to Chobani as discussed above, we remain a guarantor of certain lease obligations under the assigned lease agreements. The leases have varying terms through 2040, with renewal options through 2060. We would be required to make payments under the guarantees only in the event of nonpayment or nonperformance by Chobani. As part of the Allentown asset purchase agreement, Chobani is required to indemnify and hold us harmless from losses, liabilities, claims, demands for payment, fees, and expenses incurred in connection with the lease guarantee or Chobani's failure to perform its obligations under the lease.
As of September 30, 2026, the maximum potential future undiscounted payments we could be required to make under these guarantees was approximately $213 million.
We monitor the payment and performance risk associated with these guarantees through periodic evaluation of Chobani's financial condition and other relevant indicators. Based on the information available as of September 30, 2026, we believe the likelihood of having to make payments under the guarantees is remote. The liabilities recorded for these lease guarantees as of September 30, 2026 and the corresponding impact on the unaudited Condensed Consolidated Statements of Income during the third quarter of 2026 were insignificant. Refer to the table above for further details.
Guarantees
LEASE GUARANTEES
In connection with the assignment of our manufacturing facility and warehouse leases to Chobani as discussed above, we remain a guarantor of certain lease obligations under the assigned lease agreements. The leases have varying terms through 2040, with renewal options through 2060. We would be required to make payments under the guarantees only in the event of nonpayment or nonperformance by Chobani. As part of the Allentown asset purchase agreement, Chobani is required to indemnify and hold us harmless from losses, liabilities, claims, demands for payment, fees, and expenses incurred in connection with the lease guarantee or Chobani's failure to perform its obligations under the lease.
As of September 30, 2026, the maximum potential future undiscounted payments we could be required to make under these guarantees was approximately $213 million.
We monitor the payment and performance risk associated with these guarantees through periodic evaluation of Chobani's financial condition and other relevant indicators. Based on the information available as of September 30, 2026, we believe the likelihood of having to make payments under the guarantees is remote. The liabilities recorded for these lease guarantees as of September 30, 2026 and the corresponding impact on the unaudited Condensed Consolidated Statements of Income during the third quarter of 2026 were insignificant. Refer to the table above for further details.