CAMPBELL'S Co 10-Q

Item 1. Financial Statements THE CAMPBELL'S COMPANY Consolidated Statements of Earnings (unaudited) (millions, except per share amounts) Three Months Ended November 2, 2025 October 27, 2024 Net sales $ 2,677 $ 2,772 Costs and expenses Cost of products sold 1,885 1,905 Marketing and selling expenses 253 250 Administrative expenses 167 175 Research and development expenses 24 26 Other expenses / (income) 9 43 Restructuring charges 3 6 Total costs and expenses 2,341 2,405 Earnings before interest and taxes 336 367 Interest expense 81 87 Interest income 1 4 Earnings before taxes 256 284 Taxes on earnings 62 66 Net earnings 194 218 Less: Net earnings (loss) attributable to noncontrolling interests — — Net earnings attributable to The Campbell's Company $ 194 $ 218 Per Share — Basic Net earnings attributable to The Campbell's Company $ .65 $ .73 Weighted average shares outstanding — basic 298 298 Per Share — Assuming Dilution Net earnings attributable to The Campbell's Company $ .65 $ .72 Weighted average shares outstanding — assuming dilution 299 301 See accompanying Notes to Consolidated Financial Statements. 3 THE CAMPBELL'S COMPANY Consolidated Statements of Comprehensive Income (unaudited) (millions) Three Months Ended November 2, 2025 October 27, 2024 Pre-tax amount Tax benefit (expense) After-tax amount Pre-tax amount Tax benefit (expense) After-tax amount Net earnings (loss) $ 194 $ 218 Other comprehensive income (loss): Foreign currency translation: Foreign currency translation adjustments $ ( 2 ) $ — ( 2 ) $ ( 2 ) $ — ( 2 ) Cash-flow hedges: Unrealized gains (losses) arising during the period 3 ( 1 ) 2 — — — Reclassification adjustment for losses (gains) included in net earnings 1 — 1 1 — 1 Pension and other postretirement benefits: Prior service credit arising during the period — — — 7 ( 2 ) 5 Reclassification of prior service credit included in net earnings — — — — — — Other comprehensive income (loss) $ 2 $ ( 1 ) 1 $ 6 $ ( 2 ) 4 Total comprehensive income (loss) $ 195 $ 222 Total comprehensive income (loss) attributable to noncontrolling interests — — Total comprehensive income (loss) attributable to The Campbell's Company $ 195 $ 222 See accompanying Notes to Consolidated Financial Statements. 4 THE CAMPBELL'S COMPANY Consolidated Balance Sheets (unaudited) (millions, except per share amounts) November 2, 2025 August 3, 2025 Current assets Cash and cash equivalents $ 168 $ 132 Accounts receivable, net 768 583 Inventories 1,505 1,424 Other current assets 122 93 Total current assets 2,563 2,232 Plant assets, net of depreciation 2,744 2,767 Goodwill 4,990 4,991 Other intangible assets, net of amortization 4,345 4,356 Other assets 537 550 Total assets $ 15,179 $ 14,896 Current liabilities Short-term borrowings $ 874 $ 762 Accounts payable 1,468 1,332 Accrued liabilities 651 688 Dividends payable 118 120 Accrued income taxes 19 4 Total current liabilities 3,130 2,906 Long-term debt 6,098 6,095 Deferred taxes 1,380 1,353 Other liabilities 612 638 Total liabilities 11,220 10,992 Commitments and contingencies (Note 15) The Campbell's Company shareholders' equity Preferred stock; authorized 40 shares; none issued — — Capital stock, $ .0375 par value; authorized 560 shares; issued 323 shares 12 12 Additional paid-in capital 379 418 Earnings retained in the business 4,769 4,694 Capital stock in treasury, at cost ( 1,189 ) ( 1,207 ) Accumulated other comprehensive income (loss) ( 14 ) ( 15 ) Total The Campbell's Company shareholders' equity 3,957 3,902 Noncontrolling interests 2 2 Total equity 3,959 3,904 Total liabilities and equity $ 15,179 $ 14,896 See accompanying Notes to Consolidated Financial Statements. 5 THE CAMPBELL'S COMPANY Consolidated Statements of Cash Flows (unaudited) (millions) Three Months Ended November 2, 2025 October 27, 2024 Cash flows from operating activities: Net earnings $ 194 $ 218 Adjustments to reconcile net earnings to operating cash flow Restructuring charges 3 6 Stock-based compensation 13 19 Pension and postretirement benefit expense (income) ( 1 ) 2 Depreciation and amortization 99 109 Deferred income taxes 27 ( 3 ) Loss on sale of business — 25 Other 32 35 Changes in working capital, net of divestitures Accounts receivable ( 191 ) ( 211 ) Inventories ( 83 ) ( 62 ) Other current assets ( 11 ) ( 10 ) Accounts payable and accrued liabilities 145 106 Other ( 3 ) ( 9 ) Net cash provided by operating activities 224 225 Cash flows from investing activities: Purchases of plant assets ( 127 ) ( 110 ) Purchases of routes ( 56 ) ( 31 ) Sales of routes 41 29 Sales of businesses 5 70 Other — ( 5 ) Net cash used in investing activities ( 137 ) ( 47 ) Cash flows from financing activities: Short-term borrowings, including commercial paper 788 668 Short-term repayments, including commercial paper ( 684 ) ( 883 ) Long-term borrowings — 1,144 Long-term repayments — ( 200 ) Dividends paid ( 120 ) ( 116 ) Treasury stock purchases ( 24 ) ( 54 ) Payments related to tax withholding for stock-based compensation ( 11 ) ( 27 ) Payments of debt issuance costs — ( 9 ) Net cash provided by (used in) financing activities ( 51 ) 523 Effect of exchange rate changes on cash — ( 1 ) Net change in cash and cash equivalents 36 700 Cash and cash equivalents — beginning of period 132 108 Cash and cash equivalents — end of period $ 168 $ 808 See accompanying Notes to Consolidated Financial Statements. 6 THE CAMPBELL'S COMPANY Consolidated Statements of Equity (unaudited) (millions, except per share amounts) The Campbell's Company Shareholders’ Equity Capital Stock Additional Paid-in Capital Earnings Retained in the Business Accumulated Other Comprehensive Income (Loss) Noncontrolling Interests Issued In Treasury Total Equity Shares Amount Shares Amount Balance at July 28, 2024 323 $ 12 ( 25 ) $ ( 1,207 ) $ 437 $ 4,569 $ ( 17 ) $ 2 $ 3,796 Net earnings (loss) 218 — 218 Other comprehensive income (loss) 4 — 4 Dividends ($ .37 per share) ( 111 ) ( 111 ) Treasury stock purchased ( 1 ) ( 54 ) ( 54 ) Treasury stock issued under stock-based compensation plans 1 51 ( 44 ) ( 16 ) ( 9 ) Balance at October 27, 2024 323 $ 12 ( 25 ) $ ( 1,210 ) $ 393 $ 4,660 $ ( 13 ) $ 2 $ 3,844 Balance at August 3, 2025 323 $ 12 ( 25 ) $ ( 1,207 ) $ 418 $ 4,694 $ ( 15 ) $ 2 $ 3,904 Net earnings (loss) 194 — 194 Other comprehensive income (loss) 1 — 1 Dividends ($ .39 per share) ( 118 ) ( 118 ) Treasury stock purchased ( 1 ) ( 24 ) ( 24 ) Treasury stock issued under stock-based compensation plans 1 42 ( 39 ) ( 1 ) 2 Balance at November 2, 2025 323 $ 12 ( 25 ) $ ( 1,189 ) $ 379 $ 4,769 $ ( 14 ) $ 2 $ 3,959 See accompanying Notes to Consolidated Financial Statements. 7 Notes to Consolidated Financial Statements (unaudited) 1. Basis of Presentation and Significant Accounting Policies In this Form 10-Q, unless otherwise stated, the terms "we," "us," "our" and the "company" refer to The Campbell's Company and its consolidated subsidiaries. The financial statements reflect all adjustments which are, in our opinion, necessary for a fair statement of the results of operations, financial position and cash flows for the indicated periods. The accounting policies we used in preparing these financial statements are substantially consistent with those we applied in our Annual Report on Form 10-K for the year ended August 3, 2025. Certain reclassifications to our previously reported financial information were made to conform to the current-period presentation. The results for the period are not necessarily indicative of the results to be expected for other interim periods or the full year. Our fiscal year ends on the Sunday nearest July 31, which is August 2, 2026. There will be 52 weeks in 2026. There were 53 weeks in 2025. 2. Recent Accounting Pronouncements In December 2023, the Financial Accounting Standards Board (FASB) issued guidance to improve income tax disclosures by requiring disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. The guidance is effective for annual periods beginning after December 15, 2024. The guidance should be applied on a prospective basis with the option to apply the standard retrospectively. Early adoption is permitted. We are currently evaluating the impact that the new guidance will have on our consolidated financial statements. In November 2024, the FASB issued guidance to improve disclosures by requiring additional details about specific types of expenses (purchases of inventory, employee compensation, depreciation and intangible asset amortization) included in certain expense captions. The guidance requires disclosure of the total amount of selling expenses and, on an annual basis, disclosure of the definition of selling expenses. The guidance is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The guidance should be applied on a prospective basis with the option to apply the standard retrospectively. We are currently evaluating the impact that the new guidance will have on our consolidated financial statements. In September 2025, the FASB issued guidance to clarify and modernize the accounting for costs related to internal-use software. The guidance eliminates references to various stages of a software development project and clarifies the threshold to apply to begin capitalizing costs. The guidance is effective for fiscal years beginning after December 15, 2027, and interim periods within those fiscal years. The guidance should be applied on a prospective basis with the option to apply the standard retrospectively or using a modified transition approach. Early adoption is permitted. We are currently evaluating the impact that the new guidance will have on our consolidated financial statements. In November 2025, the FASB issued guidance to clarify and improve hedge accounting guidance. The guidance, which is intended to more closely align hedge accounting with the economics of an entity’s risk management activities, is effective for fiscal years beginning after December 15, 2026, and interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the impact that the new guidance will have on our consolidated financial statements. In December 2025, the FASB issued authoritative guidance on the accounting for government grants received by business entities. The guidance defines government grants and establishes recognition, presentation and disclosure requirements. The guidance is effective for fiscal years beginning after December 15, 2028, and interim periods within those fiscal years. The guidance may be applied on a modified transition approach or retrospectively. Early adoption is permitted. We are currently evaluating the impact that the new guidance will have on our consolidated financial statements. 8 3. Divestitures On August 26, 2024, we completed the sale of our Pop Secret popcorn business for $ 70 million. We recognized a pre-tax loss on the sale of $ 25 million, or $ 19 million after tax. In connection with the sale, we provided certain transition services to support the business. The business had net sales of $ 9 million through August 26, 2024. Earnings were not material. The results of the business were reflected within the Snacks reportable segment. We entered into an agreement to sell our noosa yoghurt business in November 2024. The noosa yoghurt business was purchased as part of the Sovos Brands, Inc. (Sovos Brands) acquisition. In the second quarter of 2025, we recorded $ 15 million of tax expense related to the sale of the business. We completed the sale on February 24, 2025, for $ 188 million, subject to certain customary purchase price adjustments, which resulted in $ 5 million of additional proceeds in the first quarter of 2026. The after-tax loss recorded on the sale in 2025 was $ 15 million. In connection with the sale, we provided certain transition services to support the business. Net sales of the business were $ 44 million for the three-month period ended October 27, 2024 and $ 99 million through February 24, 2025. Earnings were not material in the periods. The results of the business were reflected within the Meals & Beverages segment. 4. Accumulated Other Comprehensive Income (Loss) The components of Accumulated other comprehensive income (loss) consisted of the following: (Millions) Foreign Currency Translation Adjustments (1) Cash-Flow Hedges (2) Pension and Postretirement Benefit Plan Adjustments (3) Total Accumulated Comprehensive Income (Loss) Balance at July 28, 2024 $ ( 10 ) $ ( 9 ) $ 2 $ ( 17 ) Other comprehensive income (loss) before reclassifications ( 2 ) — 5 3 Losses (gains) reclassified from accumulated other comprehensive income (loss) — 1 — 1 Net current-period other comprehensive income (loss) ( 2 ) 1 5 4 Balance at October 27, 2024 $ ( 12 ) $ ( 8 ) $ 7 $ ( 13 ) Balance at August 3, 2025 $ ( 11 ) $ ( 11 ) $ 7 $ ( 15 ) Other comprehensive income (loss) before reclassifications ( 2 ) 2 — — Losses (gains) reclassified from accumulated other comprehensive income (loss) — 1 — 1 Net current-period other comprehensive income (loss) ( 2 ) 3 — 1 Balance at November 2, 2025 $ ( 13 ) $ ( 8 ) $ 7 $ ( 14 ) _____________________________________ (1) Included no tax as of November 2, 2025, August 3, 2025, October 27, 2024 and July 28, 2024. (2) Included a tax benefit of $ 2 million as of November 2, 2025, $ 3 million as of August 3, 2025, and $ 2 million as of October 27, 2024 and July 28, 2024. (3) Included tax expense of $ 2 million as of November 2, 2025 and August 3, 2025, $ 3 million as of October 27, 2024 and $ 1 million as of July 28, 2024. Amounts related to noncontrolling interests were not material. The amounts reclassified from Accumulated other comprehensive income (loss) consisted of the following: Three Months Ended (Millions) November 2, 2025 October 27, 2024 Location of Loss (Gain) Recognized in Earnings Losses (gains) on cash-flow hedges: Foreign exchange contracts $ 1 $ — Cost of products sold Forward starting interest rate swaps — 1 Interest expense Total before tax $ 1 $ 1 Tax expense (benefit) — — Loss (gain), net of tax $ 1 $ 1 9 5. Goodwill and Intangible Assets Goodwill The following table shows the changes in the carrying amount of goodwill: (Millions) Meals & Beverages Snacks Total Net balance at August 3, 2025 $ 2,037 $ 2,954 $ 4,991 Foreign currency translation adjustment ( 1 ) — ( 1 ) Net balance at November 2, 2025 $ 2,036 $ 2,954 $ 4,990 Intangible Assets The following table summarizes balance sheet information for intangible assets, excluding goodwill: November 2, 2025 August 3, 2025 (Millions) Cost Accumulated Amortization Net Cost Accumulated Amortization Net Amortizable intangible assets Customer relationships $ 1,042 $ ( 377 ) $ 665 $ 1,042 $ ( 366 ) $ 676 Definite-lived trademarks 2 — 2 2 — 2 Total amortizable intangible assets $ 1,044 $ ( 377 ) $ 667 $ 1,044 $ ( 366 ) $ 678 Indefinite-lived trademarks Rao's $ 1,470 $ 1,470 Snyder's of Hanover 470 470 Lance 350 350 Kettle Brand 318 318 Pace 292 292 Pacific Foods 280 280 Cape Cod 187 187 Various other Snacks (1) 311 311 Total indefinite-lived trademarks $ 3,678 $ 3,678 Total net intangible assets $ 4,345 $ 4,356 ____________________________________ (1) Includes the Late July and Allied brands trademarks. Amortization expense was $ 11 million for the three-month period ended November 2, 2025, and $ 20 million for the three-month period ended October 27, 2024. Amortization expense for the three-month period ended October 27, 2024 included accelerated amortization expense of $ 7 million on customer relationships, which began in the fourth quarter of 2023 due to the loss of certain contract manufacturing customers. As of November 2, 2025, amortizable intangible assets had a weighted-average remaining useful life of 18 years. Amortization expense is estimated to be approximately $ 40 million per year for each of the next five fiscal years. As of the 2025 annual impairment testing, indefinite-lived trademarks with approximately 10% or less of excess coverage of fair value over carrying value had an aggregate carrying value of $ 2.587 billion and included the Rao's , Snyder's of Hanover , Pace , Pacific Foods , Late July and Allied brands trademarks. The estimates of future cash flows used in determining the fair value of goodwill and intangible assets involve significant management judgment and are based upon assumptions about expected future operating performance, assumed royalty rates, economic conditions, market conditions and cost of capital. Inherent in estimating the future cash flows are uncertainties beyond our control, such as changes in capital markets. The actual cash flows could differ materially from management’s estimates due to changes in business conditions, operating performance and economic conditions, including the potential impact of tariffs. 10 6. Segment Information Our operating segments, which are also our reportable segments, are as follows: • Meals & Beverages, which consists of soup, simple meals and beverages products in retail and foodservice in the U.S. and Canada. The segment includes the following products: Campbell’s condensed and ready-to-serve soups; Swanson broth and stocks; Pacific Foods broth, soups and non-dairy beverages; Prego pasta sauces; Pace Mexican sauces; SpaghettiOs pasta; Campbell’s gravies, beans and dinner sauces; Swanson canned poultry; V8 juices and beverages; Campbell's tomato juice; and as of March 12, 2024, Rao's pasta sauces, dry pasta, frozen entrées, frozen pizza and soups; Michael Angelo’s frozen entrées and pasta sauces; and noosa yogurts. The noosa yoghurt business was sold on February 24, 2025. The segment also includes snacking products in foodservice and Canada, and beginning in 2026, the snacking and meals and beverages retail business in Latin America; and • Snacks, which consists of Pepperidge Farm cookies, crackers, fresh bakery and frozen products, including Goldfish crackers, Snyder’s of Hanover pretzels, Lance sandwich crackers, Cape Cod potato chips, Kettle Brand potato chips, Late July snacks, Snack Factory pretzel crisps, and other snacking products in retail in the U.S. The segment also included the results of our Pop Secret popcorn business, which was sold on August 26, 2024. Through the fourth quarter of 2025, the snacking and meals and beverages retail business in Latin America was managed under our Snacks segment. Beginning in 2026, the business is managed under our Meals & Beverages segment. Segment results have been adjusted retrospectively to reflect this change. We refer to the following products as our "leadership brands": Campbell's condensed and ready-to-serve soups; Chunky soups; Swanson broth, stocks and canned poultry; Pacific Foods broth, soups and non-dairy beverages; Prego pasta sauces; Pace Mexican sauces; V8 juices and beverages; Rao's pasta sauces, dry pasta, frozen entrées, frozen pizza and soups; Pepperidge Farm cookies, crackers and fresh bakery; Goldfish crackers; Snyder's of Hanover pretzels; Lance sandwich crackers; Cape Cod potato chips; Kettle Brand potato chips; Late July snacks; and Snack Factory pretzel crisps. Our chief operating decision maker (CODM) is our President and Chief Executive Officer. Our CODM uses segment operating earnings as the profit measure in evaluating segment performance during the annual plan and forecasting process and in monitoring actual performance versus plan. Segment operating earnings are comprised of earnings before interest, taxes and costs associated with restructuring activities, cost savings and optimization initiatives, impairment charges, accelerated amortization and corporate expenses. Unrealized gains and losses on outstanding undesignated commodity hedging activities are excluded from segment operating earnings and are recorded in Corporate as these open positions represent hedges of future purchases. Upon closing of the contracts, the realized gain or loss is transferred to segment operating earnings, which allows the segments to reflect the economic effects of the hedge without exposure to quarterly volatility of unrealized gains and losses. Only the service cost component of pension and postretirement expense is allocated to segments. All other components of expense, including interest cost, expected return on assets, amortization of prior service credits and recognized actuarial gains and losses are reflected in Corporate and not included in segment operating results. Asset information by segment is not discretely maintained for internal reporting or used in evaluating performance by the CODM. Three Months Ended November 2, 2025 October 27, 2024 (Millions) Meals & Beverages Snacks Total Meals & Beverages Snacks Total Net sales $ 1,665 $ 1,012 $ 2,677 $ 1,739 $ 1,033 $ 2,772 Cost of products sold 1,153 721 1,175 725 Other segment items (1) 215 168 221 172 Segment operating earnings $ 297 $ 123 $ 420 $ 343 $ 136 $ 479 Corporate expense (income) (2) 81 106 Restructuring charges (3) 3 6 Earnings before interest and taxes $ 336 $ 367 Interest expense 81 87 Interest income 1 4 Earnings before taxes $ 256 $ 284 11 Three Months Ended (Millions) November 2, 2025 October 27, 2024 Depreciation and amortization Meals & Beverages $ 40 $ 46 Snacks 53 58 Corporate (4) 6 5 Total $ 99 $ 109 Three Months Ended (Millions) November 2, 2025 October 27, 2024 Capital expenditures Meals & Beverages $ 71 $ 34 Snacks 43 46 Corporate (4) 13 30 Total $ 127 $ 110 _______________________________________ (1) Other segment items for each of the reportable segments include marketing and selling expenses, administrative expenses, research and development expenses and expense for amortization of intangible assets. (2) Represents unallocated items. Costs related to cost savings and optimization initiatives were $ 31 million and $ 29 million in the three-month periods ended November 2, 2025 and October 27, 2024, respectively. Unrealized mark-to-market adjustments on outstanding undesignated commodity hedges were losses of $ 2 million in the three-month period ended November 2, 2025, and gains of $ 4 million in the three-month period ended October 27, 2024. Litigation expenses related to the Plum baby food and snacks business, which was divested on May 3, 2021, and certain other litigation matters were $ 10 million in the three-month period ended November 2, 2025, and $ 1 million in the three-month period ended October 27, 2024. Insurance recoveries of $ 1 million related to a cybersecurity incident were included in the three-month periods ended November 2, 2025 and October 27, 2024. Costs associated with a pending acquisition were $ 2 million in the three-month period ended November 2, 2025. A loss on the sale of our Pop Secret popcorn business of $ 25 million was included in the three-month period ended October 27, 2024. Accelerated amortization expense related to customer relationship intangible assets was $ 7 million in the three-month period ended October 27, 2024. A postretirement actuarial loss of $ 2 million was included in the three-month period ended October 27, 2024. (3) See Note 7 for additional information. (4) Represents primarily corporate offices and enterprise-wide information technology systems. Our net sales based on product categories are as follows: Three Months Ended (Millions) November 2, 2025 October 27, 2024 Net sales Soup $ 835 $ 852 Snacks 1,106 1,128 Other simple meals 562 613 Beverages 174 179 Total $ 2,677 $ 2,772 Soup includes various soup, broths and stock products. Snacks include cookies, pretzels, crackers, popcorn, potato chips, tortilla chips and other salty snacks and baked products. Other simple meals include sauces, yogurts, pasta, frozen entrées, canned poultry, frozen pizza, gravies and beans. Beverages include V8 juices and beverages, Campbell’s tomato juice and Pacific Foods non-dairy beverages. 12 7. Restructuring Charges, Cost Savings Initiatives and Other Optimization Initiatives 2025 Cost Savings Initiatives On September 10, 2024, we announced plans to implement cost savings initiatives beginning in 2025, including initiatives to further optimize our supply chain and manufacturing network, optimization of our information technology infrastructure and targeted cost management. We also identified additional opportunities for cost synergies as we integrated Sovos Brands. As of July 28, 2024, we substantially completed our previous multi-year cost savings initiatives and Snyder's-Lance, Inc. cost transformation program and integration and had identified initial opportunities for cost synergies as we integrated Sovos Brands. Certain initiatives from those programs have been incorporated into our 2025 cost savings initiatives. Cost estimates for the 2025 initiatives, as well as timing for certain activities, are continuing to be developed. A summary of the pre-tax charges recorded in the Consolidated Statements of Earnings related to these initiatives is as follows: Three Months Ended (Millions) November 2, 2025 October 27, 2024 Recognized as of November 2, 2025 Restructuring charges $ 3 $ 6 $ 27 Administrative expenses 8 11 49 Cost of products sold 7 8 39 Marketing and selling expenses — 1 4 Research and development expenses — 1 3 Total pre-tax charges $ 18 $ 27 $ 122 A summary of the pre-tax costs associated with the initiatives is as follows: (Millions) Recognized as of November 2, 2025 Severance pay and benefits $ 27 Asset impairment/accelerated depreciation 36 Implementation costs and other related costs 59 Total $ 122 The total estimated pre-tax costs for actions that have been identified to date are approximately $ 230 million, and we expect to incur substantially all of the costs through 2028. These estimates will be updated as the detailed plans are developed. We expect the costs for the actions that have been identified to date to consist of the following: approximately $ 35 million in severance pay and benefits; approximately $ 50 million in asset impairment and accelerated depreciation; and approximately $ 145 million in implementation costs and other related costs. We expect these pre-tax costs to be associated with our segments as follows: Meals & Beverages - approximately 61 %; Snacks - approximately 19 % and Corporate - approximately 20 %. Of the aggregate $ 230 million of pre-tax costs identified to date, we expect approximately $ 175 million will be cash expenditures. In addition, we expect to invest approximately $ 205 million in capital expenditures, of which we invested $ 164 million as of November 2, 2025. The capital expenditures primarily relate to optimization of production within our manufacturing network, optimization of information technology infrastructure and applications and implementation of our existing SAP enterprise-resource planning system for Sovos Brands. A summary of the restructuring activity and related reserves is as follows: (Millions) Severance Pay and Benefits Implementation Costs and Other Related Costs (3) Asset Impairment/Accelerated Depreciation Total Charges Accrued balance at August 3, 2025 (1) $ 33 2026 charges 3 10 5 $ 18 2026 cash payments ( 7 ) Accrued balance at November 2, 2025 (2) $ 29 __________________________________ (1) Includes $ 14 million of severance pay and benefits recorded in Other liabilities in the Consolidated Balance Sheet. (2) Includes $ 5 million of severance pay and benefits recorded in Other liabilities in the Consolidated Balance Sheet. 13 (3) Includes other costs recognized as incurred that are not reflected in the restructuring reserve in the Consolidated Balance Sheet. The costs are included in Administrative expenses and Cost of products sold in the Consolidated Statements of Earnings. Segment operating results do not include restructuring charges, implementation costs and other related costs because we evaluate segment performance excluding such charges. A summary of the pre-tax costs associated with segments is as follows: November 2, 2025 (Millions) Three Months Ended Costs Incurred to Date Meals & Beverages $ 10 $ 84 Snacks 6 20 Corporate 2 18 Total $ 18 $ 122 Other Optimization Initiatives In the second quarter of 2024, we began implementation of an initiative to improve the effectiveness of our Snacks direct-store-delivery route-to-market network. Pursuant to this initiative we will purchase certain Pepperidge Farm and Snyder's-Lance routes where there are opportunities to unlock greater scale in select markets, combine them and sell the combined routes to independent contractor distributors. We expect to execute this program in a staggered rollout and to incur expenses of up to approximately $ 115 million through 2029. In the three-month period ended November 2, 2025, we incurred $ 16 million in Marketing and selling expenses related to this initiative. In the three-month period ended October 27, 2024, we incurred $ 8 million in Marketing and selling expenses related to this initiative. As of November 2, 2025, we have incurred $ 41 million in Marketing and selling expenses and $ 1 million in Administrative expenses related to this initiative. 8. Earnings per Share (EPS) For the periods presented in the Consolidated Statements of Earnings, the calculations of basic EPS and EPS assuming dilution vary in that the weighted average shares outstanding assuming dilution include the incremental effect of stock options and other share-based payment awards, except when such effect would be antidilutive. The earnings per share calculation for the three-month period ended November 2, 2025 excludes approximately 1 million stock options that would have been antidilutive. The earnings per share calculation for the three-month period ended October 27, 2024 excludes less than 1 million stock options that would have been antidilutive. 9. Pension and Postretirement Benefits Components of net periodic benefit expense (income) were as follows: Three Months Ended Pension Postretirement (Millions) November 2, 2025 October 27, 2024 November 2, 2025 October 27, 2024 Service cost $ 3 $ 3 $ — $ — Interest cost 14 15 1 2 Expected return on plan assets ( 19 ) ( 20 ) — — Actuarial losses (gains) — — — 2 Net periodic benefit expense (income) $ ( 2 ) $ ( 2 ) $ 1 $ 4 The actuarial loss for the three-month period ended October 27, 2024 was due to the remeasurement of our postretirement plan due to a plan amendment. The actuarial loss was primarily due to a decrease in the discount rate used to determine the benefit obligation. 14 10. Leases The components of lease costs were as follows: Three Months Ended (Millions) November 2, 2025 October 27, 2024 Operating lease cost $ 29 $ 29 Finance lease - amortization of right-of-use (ROU) assets 8 6 Finance lease - interest on lease liabilities 1 1 Short-term lease cost 17 15 Variable lease cost 73 65 Total $ 128 $ 116 The following tables summarize the lease amounts recorded in the Consolidated Balance Sheets: Operating Leases (Millions) Balance Sheet Classification November 2, 2025 August 3, 2025 ROU assets, net Other assets $ 307 $ 326 Lease liabilities (current) Accrued liabilities $ 95 $ 96 Lease liabilities (noncurrent) Other liabilities $ 240 $ 259 Finance Leases (Millions) Balance Sheet Classification November 2, 2025 August 3, 2025 ROU assets, net Plant assets, net of depreciation $ 65 $ 66 Lease liabilities (current) Short-term borrowings $ 30 $ 32 Lease liabilities (noncurrent) Long-term debt $ 39 $ 38 The following table summarizes cash flow and other information related to leases: Three Months Ended (Millions) November 2, 2025 October 27, 2024 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 29 $ 27 Operating cash flows from finance leases $ 1 $ 1 Financing cash flows from finance leases $ 8 $ 6 ROU assets obtained in exchange for lease obligations: Operating leases $ 6 $ 25 Finance leases $ 7 $ 19 11. Financial Instruments The principal market risks to which we are exposed are changes in foreign currency exchange rates, interest rates and commodity prices. In addition, we are exposed to price changes related to certain deferred compensation obligations. In order to manage these exposures, we follow established risk management policies and procedures, including the use of derivative contracts such as swaps, rate locks, options, forwards and commodity futures. We enter into these derivative contracts for periods consistent with the related underlying exposures, and the contracts do not constitute positions independent of those exposures. We do not enter into derivative contracts for speculative purposes and do not use leveraged instruments. Our derivative programs include instruments that qualify for hedge accounting treatment and instruments that are not designated as accounting hedges. 15 Concentration of Credit Risk We are exposed to the risk that counterparties to derivative contracts will fail to meet their contractual obligations. To mitigate counterparty credit risk, we enter into contracts only with carefully selected, leading, credit-worthy financial institutions, and distribute contracts among several financial institutions to reduce the concentration of credit risk. We did not have credit risk-related contingent features in our derivative instruments as of November 2, 2025, or August 3, 2025. We are also exposed to credit risk from our customers. During 2025, our largest customer accounted for approximately 21 % of our consolidated net sales. Our five largest customers accounted for approximately 47 % of our consolidated net sales in 2025. We closely monitor credit risk associated with counterpartie s and customers. Foreign Currency Exchange Risk We are exposed to foreign currency exchange risk, primarily the Canadian dollar and Euro, related to intercompany transactions and third-party transactions. We utilize foreign exchange forward and option contracts to hedge these exposures. The contracts are either designated as cash-flow hedging instruments or are undesignated. We hedge portions of our forecasted foreign currency transaction exposure with foreign exchange forward contracts for periods typically up to 18 months. The notional amount of foreign exchange forward contracts accounted for as cash-flow hedges was $ 156 million as of November 2, 2025, and $ 183 million as of August 3, 2025. Changes in the fair value on the portion of the derivative included in the assessment of hedge effectiveness of cash-flow hedges are recorded in other comprehensive income (loss), until earnings are affected by the variability of cash flows. For derivatives that are designated and qualify as hedging instruments, the initial fair value of hedge components excluded from the assessment of effectiveness is recognized in earnings under a systematic and rational method over the life of the hedging instrument and is presented in the same statement of earnings line item as the earnings effect of the hedged item. Any difference between the change in the fair value of the hedge components excluded from the assessment of effectiveness and the amounts recognized in earnings is recorded as a component of other comprehensive income (loss). The notional amount of foreign exchange forward and option contracts that are not designated as accounting hedges was $ 338 million as of November 2, 2025, and $ 413 million as of August 3, 2025. Interest Rate Risk We manage our exposure to changes in interest rates by optimizin g the use of variable-rate and fixed-rate debt. From time to time, we may use interest rate swaps in order to maintain our variable-to-total debt ratio within targeted guidelines. We manage our exposure to interest volatility on future debt issuances by entering into forward starting interest rate swaps or treasury lock contracts to hedge the rate on the interest payments related to the anticipated debt issuance. The forward starting interest rate swaps or treasury lock contracts are either designated as cash-flow hedging instruments or are undesignated. Changes in the fair value on the portion of the derivative included in the assessment of hedge effectiveness of cash-flow hedges are recorded in other comprehensive income (loss), and reclassified into Interest expense over the life of the debt issued. The change in fair value on undesignated instruments is recorded in Interest expense. In conjunction with the issuance of senior unsecured notes on October 2, 2024, due on March 23, 2035, we settled forward starting interest rate swaps with a notional value of $ 700 million at a gain of less than $ 1 million. The gain on these instruments was recorded in other comprehensive income (loss) and will be recognized in Interest expense over the life of the debt. There were no forward starting interest rate swaps or treasury lock contracts outstanding as of November 2, 2025 and August 3, 2025. Commodity Price Risk We principally use a combination of purchase orders and various short- and long-term supply arrangements in connection with the purchase of raw materials, including certain commodities and agricultural products. We also enter into commodity futures, options and swap contracts to reduce the volatility of price fluctuations of wheat, diesel fuel, natural gas, soybean oil, cocoa, aluminum, soybean meal and corn. Commodity futures, options and swap contracts are either designated as cash-flow hedging instruments or are undesignated. We hedge a portion of commodity requirements for periods typically up to 18 months. There were no commodity contracts designated as cash-flow hedges as of November 2, 2025, or August 3, 2025. The notional amount of commodity contracts not designated as accounting hedges was $ 185 million as of November 2, 2025, and $ 184 million as of August 3, 2025. The change in fair value on undesignated instruments is recorded in Cost of products sold. We have a supply contract under which prices for certain raw materials are established based on anticipated volume requirements over a twelve-month period. Certain prices under the contract are based in part on certain component parts of the raw materials that are in excess of our needs or not required for our operations, thereby creating an embedded derivative requiring bifurcation. We net settle amounts due under the contract with our counterparty. The notional amount was $ 15 million as of November 2, 2025, and $ 49 million as of August 3, 2025. The change in fair value on the embedded derivative is recorded in Cost of products sold. 16 Deferred Compensation Obligation Price Risk We enter into swap contracts which hedge a portion of exposures relating to the total return of certain deferred compensation obligations. These contracts are not designated as hedges for accounting purposes. Unrealized gains (losses) and settlements are included in Administrative expenses in the Consolidated Statements of Earnings. We enter into these contracts for periods typically not exceeding 12 months. The notional amounts of the contracts were $ 79 million as of November 2, 2025, and $ 76 million as of August 3, 2025. The following tables summarize the fair value of derivative instruments on a gross basis as recorded in the Consolidated Balance Sheets: (Millions) Balance Sheet Classification November 2, 2025 August 3, 2025 Asset Derivatives Derivatives designated as hedges: Foreign exchange contracts Other current assets $ 2 $ — Total derivatives designated as hedges $ 2 $ — Derivatives not designated as hedges: Commodity contracts Other current assets $ 10 $ 12 Deferred compensation contracts Other current assets 1 1 Foreign exchange contracts Other current assets 1 2 Total derivatives not designated as hedges $ 12 $ 15 Total asset derivatives $ 14 $ 15 (Millions) Balance Sheet Classification November 2, 2025 August 3, 2025 Liability Derivatives Derivatives designated as hedges: Foreign exchange contracts Accrued liabilities $ — $ 3 Total derivatives designated as hedges $ — $ 3 Derivatives not designated as hedges: Commodity contracts Accrued liabilities $ 11 $ 11 Total derivatives not designated as hedges $ 11 $ 11 Total liability derivatives $ 11 $ 14 We do not offset the fair values of derivative assets and liabilities executed with the same counterparty that are generally subject to enforceable netting agreements. However, if we were to offset and record the asset and liability balances of derivatives on a net basis, the amounts presented in the Consolidated Balance Sheets as of November 2, 2025, and August 3, 2025, would be adjusted as detailed in the following table: November 2, 2025 August 3, 2025 (Millions) Gross Amounts Presented in the Consolidated Balance Sheet Gross Amounts Not Offset in the Consolidated Balance Sheet Subject to Netting Agreements Net Amount Gross Amounts Presented in the Consolidated Balance Sheet Gross Amounts Not Offset in the Consolidated Balance Sheet Subject to Netting Agreements Net Amount Total asset derivatives $ 14 $ ( 2 ) $ 12 $ 15 $ ( 5 ) $ 10 Total liability derivatives $ 11 $ ( 2 ) $ 9 $ 14 $ ( 5 ) $ 9 We are required to maintain cash margin accounts in connection with funding the settlement of open positions for exchange-traded commodity derivative instruments. A cash margin asset balance of $ 3 million at November 2, 2025, and a liability balance of less than $ 1 million at August 3, 2025, were included in Other current assets and Accrued liabilities, respectively, in the Consolidated Balance Sheets. 17 The following table shows the effect of our derivative instruments designated as cash-flow hedges in other comprehensive income (loss) (OCI) and the Consolidated Statements of Earnings: Total Cash-Flow Hedge OCI Activity (Millions) November 2, 2025 October 27, 2024 Three Months Ended OCI derivative gain (loss) at beginning of quarter $ ( 14 ) $ ( 11 ) Effective portion of changes in fair value recognized in OCI: Foreign exchange contracts 3 — Amount of loss (gain) reclassified from OCI to earnings: Location in Earnings Foreign exchange contracts Cost of products sold 1 — Forward starting interest rate swaps Interest expense — 1 OCI derivative gain (loss) at end of quarter $ ( 10 ) $ ( 10 ) Based on current valuations, the amount expected to be reclassified from OCI into earnings within the next 12 months is a loss of $ 2 million. The following table shows the total amounts of line items presented in the Consolidated Statements of Earnings in which the effects of derivative instruments designated as cash-flow hedges are recorded and the total effect of hedge activity on these line items: Three Months Ended November 2, 2025 October 27, 2024 (Millions) Cost of products sold Interest expense Cost of products sold Interest expense Consolidated Statements of Earnings $ 1,885 $ 81 $ 1,905 $ 87 Loss (gain) on cash-flow hedges: Amount of loss (gain) reclassified from OCI to earnings $ 1 $ — $ — $ 1 The amount excluded from effectiveness testing recognized in each line item of earnings using an amortization approach was not material in all periods presented. The following table shows the effects of our derivative instruments not designated as hedges in the Consolidated Statements of Earnings: Location of Loss (Gain) Recognized in Earnings Three Months Ended (Millions) November 2, 2025 October 27, 2024 Foreign exchange contracts Cost of products sold $ — $ — Commodity contracts Cost of products sold 4 ( 4 ) Deferred compensation contracts Administrative expenses ( 6 ) ( 3 ) Total $ ( 2 ) $ ( 7 ) 12. Fair Value Measurements We categorize financial assets and liabilities based on the following fair value hierarchy: • Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability through corroboration with observable market data. • Level 3: Unobservable inputs, which are valued based on our estimates of assumptions that market participants would use in pricing the asset or liability. Fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. When available, we use unadjusted quoted market prices to measure the fair value and classify such items as Level 1. If quoted market prices are not available, we base fair value upon internally developed models that use current market-based or independently sourced market parameters such as 18 interest rates and currency rates. Included in the fair value of derivative instruments is an adjustment for credit and nonperformance risk. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following tables present our financial assets and liabilities that are measured at fair value on a recurring basis consistent with the fair value hierarchy: Fair Value as of November 2, 2025 Fair Value Measurements at November 2, 2025 Using Fair Value Hierarchy Fair Value as of August 3, 2025 Fair Value Measurements at August 3, 2025 Using Fair Value Hierarchy (Millions) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets Foreign exchange contracts (1) $ 3 $ — $ 3 $ — $ 2 $ — $ 2 $ — Commodity derivative contracts (2) 10 — 7 3 12 1 8 3 Deferred compensation derivative contracts (3) 1 — 1 — 1 — 1 — Deferred compensation investments (4) 1 1 — — 1 1 — — Total assets at fair value $ 15 $ 1 $ 11 $ 3 $ 16 $ 2 $ 11 $ 3 Fair Value as of November 2, 2025 Fair Value Measurements at November 2, 2025 Using Fair Value Hierarchy Fair Value as of August 3, 2025 Fair Value Measurements at August 3, 2025 Using Fair Value Hierarchy (Millions) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Liabilities Foreign exchange contracts (1) $ — $ — $ — $ — $ 3 $ — $ 3 $ — Commodity derivative contracts (2) 11 2 5 4 11 — 7 4 Deferred compensation obligation (4) 111 111 — — 102 102 — — Total liabilities at fair value $ 122 $ 113 $ 5 $ 4 $ 116 $ 102 $ 10 $ 4 ___________________________________ (1) Based on observable market transactions of spot currency rates and forward rates. (2) Level 1 and 2 are based on quoted futures exchanges and on observable prices of futures and options transactions in the marketplace. Level 3 is based on unobservable inputs in which there is little or no market data, which requires management’s own assumptions within an internally developed model. (3) Based on equity and fixed income index swap rates. (4) Based on the fair value of the participants’ investments. 19 The following table summarizes the changes in fair value of Level 3 assets and liabilities: Three Months Ended (Millions) November 2, 2025 October 27, 2024 Fair value at beginning of year $ ( 1 ) $ 5 Gains (losses) ( 3 ) ( 1 ) Settlements 3 ( 2 ) Fair value at end of quarter $ ( 1 ) $ 2 Fair Value of Financial Instruments The carrying values of cash and cash equivalents, accounts receivable and accounts payable approximate fair value. Cash equivalents represent fair value as these highly liquid investments have an original maturity of three months or less. There were no cash equivalents with fair value based on level 2 inputs at November 2, 2025 and August 3, 2025. The fair value of short- and long-term debt was $ 6.71 billion at November 2, 2025, and $ 6.545 billion at August 3, 2025. The carrying value was $ 6.972 billion at November 2, 2025, and $ 6.857 billion at August 3, 2025. The fair value of long-term debt is principally estimated using Level 2 inputs based on quoted market prices or pricing models using current market rates. 13. Share Repurchases In September 2021, the Board approved a strategic share repurchase program of up to $ 500 million (September 2021 program). The September 2021 program has no expiration date, but it may be suspended or discontinued at any time. Repurchases under the September 2021 program may be made in open-market or privately negotiated transactions. In September 2024, the Board authorized an anti-dilutive share repurchase program of up to $ 250 million (September 2024 program) to offset the impact of dilution from shares issued under our stock compensation programs. The September 2024 program has no expiration date, but it may be suspended or discontinued at any time. Repurchases under the September 2024 program may be made in open-market or privately negotiated transactions. The September 2024 program replaced an anti-dilutive share repurchase program of up to $ 250 million that was approved by the Board in June 2021 and has been terminated. During the three-month periods ended November 2, 2025 and October 27, 2024, we repurchased 748 thousand shares at a cost of $ 24 million and 1.098 million shares at a cost of $ 54 million, respectively, pursuant to our anti-dilutive share repurchase programs. As of November 2, 2025, approximately $ 174 million remained available under the September 2024 program and approximately $ 301 million remained available under the September 2021 program. 14. Stock-based Compensation We provide compensation benefits by issuing stock options, unrestricted stock, and restricted stock units (including time-lapse restricted stock units, performance restricted stock units subject to a relative total shareholder return (TSR) modifier, performance restricted stock units and TSR performance restricted stock units. In 2026, we issued time-lapse restricted stock units, unrestricted stock, and performance restricted stock units subject to a TSR modifier. We last issued TSR performance restricted stock units and performance restricted stock units in 2025 and stock options in 2019. In connection with the Sovos Brands acquisition, in the third quarter of 2024, we issued time-lapse restricted stock units (Replacement units) in exchange for certain Sovos Brands restricted stock units and performance restricted stock units. The Replacement units were subject to the same terms and conditions of the original Sovos Brands restricted stock units and performance restricted stock units. Certain Replacement units were subject to accelerated vesting. In determining stock-based compensation expense, we estimate forfeitures expected to occur. Total pre-tax stock-based compensation expense and tax-related benefits recognized in the Consolidated Statements of Earnings were as follows: Three Months Ended (Millions) November 2, 2025 October 27, 2024 Total pre-tax stock-based compensation expense $ 13 $ 19 Tax-related benefits (expense) $ ( 1 ) $ 6 20 The following table summarizes stock option activity: Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life Aggregate Intrinsic Value (In thousands) (In years) (Millions) Outstanding at August 3, 2025 779 $ 45.33 Granted — $ — Exercised — $ — Terminated ( 71 ) $ 50.21 Outstanding at November 2, 2025 708 $ 44.84 2.1 $ — Exercisable at November 2, 2025 708 $ 44.84 2.1 $ — No options were exercised during the three-month period ended October 27, 2024. We measured the fair value of stock options using the Black-Scholes option pricing model. We expensed stock options on a straight-line basis over the vesting period, except for awards issued to retirement eligible participants, which we expensed on an accelerated basis. As of January 2022, compensation related to stock options was fully expensed. The following table summarizes time-lapse restricted stock units and performance restricted stock units activity: Units Weighted-Average Grant-Date Fair Value (In thousands) Nonvested at August 3, 2025 2,935 $ 44.98 Granted 1,805 $ 31.89 Vested ( 1,011 ) $ 45.26 Forfeited ( 213 ) $ 46.47 Nonvested at November 2, 2025 3,516 $ 38.08 We determine the fair value of time-lapse restricted stock units based on the quoted price of our stock at the date of grant. We expense time-lapse restricted stock units on a straight-line basis over the vesting period, except for awards issued to retirement-eligible participants and certain Replacement units, which we expense on an accelerated basis. In 2022 through 2025, we granted performance restricted stock units that will be earned upon the achievement of our EPS compound annual growth rate goal, measured over a three-year period. The actual number of the performance restricted stock units issued at the vesting date could range from 0 % to 200 % of the initial grant depending on performance achieved. The fair value of the performance restricted stock units was based upon the quoted price of our stock at the date of grant. We expense performance restricted stock units on a straight-line basis over the service period, except for awards issued to retirement-eligible participants, which we expense on an accelerated basis. We estimate expense based on the number of awards expected to vest. In the first quarter of 2026, recipients of the performance restricted stock units earned 48 % of the initial grants based upon performance achieved during a three-year period ended August 3, 2025. In the first quarter of 2025, recipients of the performance restricted stock units earned 100 % of the initial grants based upon performance achieved during a three-year period ended July 28, 2024. There were 549 thousand of the performance target grants outstanding at November 2, 2025, with a weighted-average grant-date fair value of $ 44.35 . As of November 2, 2025, total remaining unearned compensation related to nonvested time-lapse restricted stock units and performance restricted stock units was $ 75 million, which will be amortized over the weighted-average remaining service period of 2.1 years. The fair value of time-lapse and performance restricted stock units vested during the three-month periods ended November 2, 2025, and October 27, 2024, was $ 31 million and $ 59 million, respectively. The weighted-average grant-date fair value of the time-lapse and performance restricted stock units granted during the three-month period ended October 27, 2024 was $ 48.36 . 21 The following table summarizes performance restricted stock units subject to a TSR modifier and TSR performance restricted stock units activity: Units Weighted-Average Grant-Date Fair Value (In thousands) Nonvested at August 3, 2025 809 $ 47.20 Granted 1,096 $ 34.12 Vested ( 117 ) $ 53.74 Forfeited ( 145 ) $ 52.08 Nonvested at November 2, 2025 1,643 $ 37.57 We estimated the fair value of performance restricted stock units subject to a TSR modifier and TSR performance restricted stock units at the grant date using a Monte Carlo simulation. Weighted-average assumptions used in the Monte Carlo simulation for grants were as follows: Three Months Ended November 2, 2025 October 27, 2024 Risk-free interest rate 3.68 % 3.52 % Expected dividend yield 4.77 % 3.01 % Expected volatility 23.70 % 22.46 % Expected term 3 years 3 years In 2026, we granted performance restricted stock units that will be earned upon the achievement of our annual EPS and organic net sales growth rate goals during a three-year period subject to a relative TSR modifier. The number of units earned based upon the achievement of each growth rate goal may be further increased or reduced based upon our TSR ranking during a three-year period compared to the respective TSR of companies in a performance peer group. The actual number of performance restricted stock units subject to a TSR modifier ultimately issued at the vesting date could range from 0 % to 250 % of the initial grant depending on performance achieved. We expense performance restricted stock units subject to a TSR modifier and TSR performance restricted stock units on a straight-line basis over the service period, except for awards issued to retirement eligible participants, which we expense on an accelerated basis. As of November 2, 2025, total remaining unearned compensation related to performance restricted stock units subject to a TSR modifier and TSR performance restricted stock units was $ 36 million, which will be amortized over the weighted-average remaining service period of 2.1 years. In the first quarter of 2026, recipients of TSR performance restricted stock units earned 50 % of the initial grants based upon our TSR ranking in a performance peer group during a three-year period ended August 1, 2025. In the first quarter of 2025, recipients of TSR performance restricted stock units earned 175 % of the initial grants based upon our TSR ranking in a performance peer group during a three-year period ended July 26, 2024. As a result, approximately 199 thousand additional shares were awarded. The fair value of TSR performance restricted stock units vested during the three-month periods ended November 2, 2025, and October 27, 2024, was $ 4 million and $ 23 million, respectively. The grant-date fair value of the TSR performance restricted stock units granted during the three-month period ended October 27, 2024, was $ 47.33 . 15. Commitments and Contingencies Regulatory and Litigation Matters We are involved in various pending or threatened legal or regulatory proceedings, including purported class actions, arising from the conduct of business both in the ordinary course and otherwise. Modern pleading practice in the U.S. permits considerable variation in the assertion of monetary damages or other relief. Jurisdictions may permit claimants not to specify the monetary damages sought or may permit claimants to state only that the amount sought is sufficient to invoke the jurisdiction of the trial court. In addition, jurisdictions may permit plaintiffs to allege monetary damages in amounts well exceeding reasonably possible verdicts in the jurisdiction for similar matters. This variability in pleadings, together with our actual experiences in litigating or resolving through settlement numerous claims over an extended period of time, demonstrates to us that the monetary relief which may be specified in a lawsuit or claim bears little relevance to its merits or disposition value. Due to the unpredictable nature of litigation, the outcome of a litigation matter and the amount or range of potential loss at particular points in time is normally difficult to ascertain. Uncertainties can include how fact finders will evaluate documentary 22 evidence and the credibility and effectiveness of witness testimony, and how trial and appellate courts will apply the law in the context of the pleadings or evidence presented, whether by motion practice, or at trial or on appeal. Disposition valuations are also subject to the uncertainty of how opposing parties and their counsel will themselves view the relevant evidence and applicable law. On March 20, 2024, the United States Department of Justice (DOJ), on behalf of the U.S. Environmental Protection Agency, and National Education Law Center, on behalf of Environment America and Lake Erie Waterkeeper, filed lawsuits in the United States District Court for the Northern District of Ohio – Western Division concerning alleged violations of the Clean Water Act relating to alleged contaminant discharges from our Napoleon, Ohio wastewater treatment facility in excess of the facility’s Clean Water Act permit limits. We have and are continuing to take actions to remediate the exceedances and are in settlement discussions with the DOJ and the private environmental groups while litigation proceedings are ongoing. While we cannot predict with certainty the amount of any civil penalty or the timing of the resolution of this matter, we do not expect that the ultimate costs to resolve this matter will have a material adverse effect on our financial condition, results of operations, or cash flows. We establish liabilities for litigation and regulatory loss contingencies when information related to the loss contingencies shows both that it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. It is possible that some matters could require us to pay damages or make other expenditures or establish accruals in amounts that could not be reasonably estimated as of November 2, 2025. While the potential future charges could be material in a particular quarter or annual period, based on information currently known by us, we do not believe any such charges are likely to have a material adverse effect on our consolidated results of operations or financial condition. Other Contingencies We have provided certain indemnifications in connection with divestitures, contracts and other transactions. Certain indemnifications have finite expiration dates. Liabilities recognized based on known exposures related to such matters were not material at November 2, 2025. 16. Supplier Finance Program Obligations To manage our cash flow and related liquidity, we work with our suppliers to optimize our terms and conditions, including the extension of payment terms. Our current payment terms with our suppliers, which we deem to be commercially reasonable, generally range from 0 to 120 days. We also maintain agreements with third-party administrators that allow participating suppliers to track payment obligations from us, and, at the sole discretion of the supplier, sell those payment obligations to participating financial institutions. Our obligations to our suppliers, including amounts due and scheduled payment terms, are not impacted. Supplier participation in these agreements is voluntary. We have no economic interest in a supplier’s decision to enter into these agreements and no direct financial relationship with the financial institutions regarding these transactions. We have not pledged assets as security or provided any guarantees in connection with these arrangements. The payment of these obligations is included in cash provided by operating activities in the Consolidated Statements of Cash Flows. Our outstanding obligations confirmed as valid under these programs, which are included in Accounts payable on the Consolidated Balance Sheets, were $ 264 million at November 2, 2025 and $ 240 million at August 3, 2025. 23 17. Supplemental Financial Statement Data (Millions) November 2, 2025 August 3, 2025 Balance Sheets Inventories Raw materials, containers and supplies $ 496 $ 407 Finished products 1,009 1,017 $ 1,505 $ 1,424 Three Months Ended (Millions) November 2, 2025 October 27, 2024 Statements of Earnings Other expenses / (income) Amortization of intangible assets (1) $ 11 $ 20 Net periodic benefit expense (income) other than the service cost ( 4 ) ( 1 ) Costs associated with acquisition (2) 2 — Loss on sale of business (3) — 25 Transition services fees — ( 1 ) $ 9 $ 43 _______________________________________ (1) Includes accelerated amortization expense related to customer relationship intangible assets of $ 7 million in the three-month period ended October 27, 2024. (2) See Note 18 for additional information. (3) See Note 3 for additional information. 18. Subsequent Event On December 8, 2025 , we entered into purchase agreements to acquire 49% of the issued and outstanding equity interests of La Regina di San Marzano di Antonio Romano S.p.A. (La Regina SPA) and La Regina Atlantica, LLC (La Regina Atlantica, and together with La Regina SPA, La Regina). The aggregate consideration for the transaction is $ 286 million to be paid in two tranches: (i) $ 146 million, payable in cash at the closing, and (ii) $ 140 million payable at our sole discretion in either cash or unregistered shares of our capital stock (not to exceed 19.9% of our outstanding capital stock and voting power prior to issuance) on the first anniversary of the closing. The remaining 51% of the outstanding equity interests of La Regina are subject to a call option granted to us and a put option granted to La Regina. The call option may be exercised from the first anniversary of the closing until the later of the tenth anniversary of the closing and the date of cessation of the material commercial agreements between the parties. The put option may be exercised from three years after the first anniversary of the closing until the tenth anniversary of the closing. The transaction is subject to certain customary conditions, including, among other things (a) the accuracy of the representations and warranties of La Regina as of the closing of the transaction, (b) compliance in all material respects with pre-closing obligations and covenants under each of the purchase agreements, and (c) the absence of a material adverse change. Each purchase agreement provides for an outside closing date of June 8, 2026, which we may extend once by up to thirty (30) business days upon prior notice. If the closing conditions have not been satisfied or waived by the outside closing date, each purchase agreement will automatically terminate, subject to certain specified provisions that survive termination. 24