What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2025-10-28 compared with 2025-08-12 · 200 added, 172 removed, 568 unchanged (40% of the section changed)

4 unchanged sentences

Certain prior period amounts have been reclassified to conform to the current period presentation.

Smithfield Foods, Inc., together with its subsidiaries (“Smithfield,” “the Company,” “we,” “us” or “our”) is an American food company that employs approximately 32,000 people in the United States (“U.S”).

and 2,500 people in Mexico.

We boast a portfolio of high-quality, iconic brands, such as Smithfield®, Eckrich® and Nathan’s Famous®, among many others.

22 unchanged sentences

The Hog Production segment also sells grains and feed to external customers.

In fiscal year 2024 and through the second quarter of 2025, approximately 60% of the Hog Production segment’s cost of goods sold was from animal feed, which is derived primarily from corn and soybean meal.

In fiscal year 2024 and through the third quarter of 2025, approximately 60% of the Hog Production segment’s cost of goods sold was from animal feed, which is derived primarily from corn and soybean meal.

Our elected fiscal year is the 52-week or 53-week period which ends on the Sunday nearest to December 31.

Unless otherwise noted, all references to the second quarter of 2025 and the three months ended June 29, 2025 are to the 13-week period ended June 29, 2025.

All references to the second quarter of 2024 and the three months ended June 30, 2024 are to the 13-week period ended June 30, 2024.

Each of the six months ended June 29, 2025 and June 30, 2024 consisted of 26-weeks.

Unless otherwise noted, all references to the third quarter of 2025 and the three months ended September 28, 2025 are to the 13-week period ended September 28, 2025.

All references to the third quarter of 2024 and the three months ended September 29, 2024 are to the 13-week period ended September 29, 2024.

Each of the nine months ended September 28, 2025 and September 29, 2024 consisted of 39-weeks.

Growth Strategies

31 unchanged sentences

We have reduced the size of our internal hog production from a peak of 17.6 million head in 2019 to 14.6 million head in 2024, and we continue to explore opportunities for reduced internal production.

We expect to produce approximately 11.5 million head in 2025, which would represent approximately 40% of the hogs processed by our Fresh Pork segment.

We expect to produce under 11.5 million head in 2025, which would represent approximately 40% of the hogs processed by our Fresh Pork segment.

We are pursuing best-in-class manufacturing principles in our plants by employing automation to redeploy labor to higher value tasks, increasing yields and driving efficiency by reducing complexity.

3 unchanged sentences

Those exports primarily consist of fresh pork products.

For the first six months of 2025, our export sales into China accounted for approximately 2% of our total sales.

As of June 29, 2025, products we export to China faced tariffs that ranged from 25% to 57%, with most products subject to 57% tariff rates.

For the first nine months of 2025, our export sales into China accounted for approximately 2% of our total sales.

As of September 28, 2025, products we export to China faced tariffs that ranged from 25% to 57%, with most products subject to 57% tariff rates.

Trade relations between the U.S.

11 unchanged sentences

In addition, individuals may initiate litigation against us.

As of June 29, 2025 and December 29, 2024, we had contingent liabilities totaling $194 million and $141 million, respectively, in accrued expenses and other current liabilities on the condensed consolidated balance sheets related to litigation matters.

We recorded charges of $80 million in the three and six months ended June 29, 2025 for litigation matters in SG&A in the condensed consolidated statements of income.

We did not record any significant charges for litigation matters in the three and six months ended June 30, 2024.

As of September 28, 2025 and December 29, 2024, we had contingent liabilities totaling $153 million and $141 million, respectively, in accrued expenses and other current liabilities on the condensed consolidated balance sheets related to litigation matters.

Charges totaling $80 million were recorded in the nine months ended September 28, 2025 and are included in SG&A in the condensed consolidated statements of income.

None of these charges were recorded in the third quarter of 2025.

We did not record any significant charges for litigation matters in the three and nine months ended September 29, 2024.

These matters will not affect our profits or losses in future periods unless our accruals prove to be insufficient or excessive.

It is reasonably possible

that a change in our estimates may occur in the near term and that our accruals could be insufficient.

It is reasonably possible that a change in our estimates may occur

in the near term and that our accruals could be insufficient.

We are unable to estimate the amount of possible loss in excess of our accruals, which could be material.

5 unchanged sentences

One Big Beautiful Bill

On July 4, 2025, the Tax Relief for American Families and Workers Act of 2025 (commonly referred to as the “One Big Beautiful Bill,” or “OBBB”) was signed into law.

On July 4, 2025, the Tax Relief for American Families and Workers Act of 2025 (commonly known as the “One Big Beautiful Bill” or “OBBB”) was signed into law.

This comprehensive legislation made several significant changes to federal tax law, including:

2 unchanged sentences

• Permanently restoring certain earnings before interest, taxes, depreciation and amortization (“EBITDA”)-based limitations for interest deduction under the IRS Tax Code.

We are in the process of evaluating the impact of the OBBB on our consolidated financial statements and will account for its effects in the third quarter of fiscal year 2025 — the period in which the OBBB was enacted.

In the third quarter of 2025, following the enactment of the OBBB, the Company reclassified approximately $77 million of deferred tax assets related to R&D capitalization to current taxes receivable.

Employee Retention Tax Credits

17 unchanged sentences

We issued 13,043,479 shares of common stock bringing the total number of outstanding shares to 393,112,711.

The remaining 13,043,479 shares of common stock were sold by our existing shareholder.

Our existing shareholder granted the underwriters a 30-day option to purchase up to 3,913,042 additional shares of our common stock.

On February 20, 2025, the underwriters partially exercised such option and purchased 2,506,936 additional shares of common stock from our existing shareholder.

The remaining 13,043,479 shares of common stock were sold by WH Group, through its indirect wholly owned subsidiary SFDS UK Holdings Limited (“SFDS UK”), our only shareholder at the time.

WH Group granted the underwriters a 30-day option to purchase up to 3,913,042 additional shares of our common stock.

On February 20, 2025, the underwriters partially exercised such option and purchased 2,506,936 additional shares of common stock from WH Group.

We received net proceeds from the IPO of $236 million after deducting underwriting discounts, commissions and fees.

3 unchanged sentences

The options and substantially all RSUs vest over a five year period, with 20% vesting each year.

We recognized compensation expense totaling $2 million and $4 million associated with these equity instruments during the three and six months ended June 29, 2025.

Unrecognized compensation expense totaled $42 million as of June 29, 2025, which is expected to be recognized on a straight-line basis over the remaining vesting period of 4.6 years.

We recognized compensation expense totaling $2 million and $6 million associated with these equity instruments during the three and nine months ended September 28, 2025.

Unrecognized compensation expense totaled $39 million as of September 28, 2025, which is expected to be recognized on a straight-line basis over the remaining vesting period of 4.3 years.

Secondary Offering

In the third quarter of 2025, WH Group, through its indirect wholly owned subsidiary SFDS UK, sold another 22,461,452 shares of our common stock in a secondary offering.

The sale did not affect the number of shares outstanding, nor did we receive any proceeds from the sale of stock by WH Group.

Following this offering, WH Group owns approximately 87.0% of our shares of common stock.

Altoona, Iowa Facility Closure

10 unchanged sentences

On July 30, 2024, we acquired a dry sausage production facility located in Nashville, Tennessee from Cargill Meat Solutions Corporation for $38 million.

The acquisition is part of our strategy to grow our value-added packaged meats business and serve the growing demand for high-quality pepperoni, salami, charcuterie and other dry sausage products.

The acquisition is part of our strategy to grow our value-added packaged

meats business and serve the growing demand for high-quality pepperoni, salami, charcuterie and other dry sausage products.

Hog Production Reform

1 unchanged sentence

In the fourth quarter of fiscal year 2024, we became a member of a North Carolina-based company, Murphy Family Farms LLC (“Murphy Family Farms”), by contributing $3 million in cash in exchange for a 25% minority interest.

We additionally sold approximately 150,000 sows and related inventories located on Company-owned and contract

farms in North Carolina to Murphy Family Farms.

We additionally sold approximately 150,000 sows and related inventories located on Company-owned and contract farms in North Carolina to Murphy Family Farms.

Subsequent to the end of fiscal year 2024, on December 30, 2024, we sold the commercial hog inventories associated with such sows to Murphy Family Farms.

5 unchanged sentences

In addition, we supply animal feed and provide certain support services to VisionAg.

In the six months ended June 30, 2024, we recognized charges totaling $10 million associated with Hog Production Reform in cost of sales in the condensed consolidated statements of income.

In the nine months ended September 29, 2024, we recognized charges totaling $13 million associated with Hog Production Reform in cost of sales in the condensed consolidated statements of income.

Amounts recognized for all other periods presented were not material.

1 unchanged sentence

Consolidated Results of Continuing Operations

Three Months Ended Six Months Ended

2025 June 30,

2024 $ Change % Change June 29,

2025 June 30,

2024 $ Change % Change

Three Months Ended Nine Months Ended

September 28, 2025 September 29, 2024 $ Change % Change September 28, 2025 September 29, 2024 $ Change % Change

(in millions) (in millions)

3 unchanged sentences

Selling, general and administrative expenses 178 200 (22) (11.1) % 643 594 50 8.4 %

Operating gains (30) (2) (28) NM (39) (3) (36) NM

Operating gains (9) (10) — (5.1) % (48) (12) (36) 293.4 %

Operating profit 310 285 25 8.9 % 892 783 109 13.9 %

Interest expense, net 11 17 (6) (35.9) % 33 52 (19) (36.7) %

Non-operating (gains) losses (4) (2) (3) 169.4 % 2 (6) 8 NM

Non-operating gains (19) (7) (11) 154.5 % (17) (13) (3) 25.4 %

Income from continuing operations before income taxes 318 276 43 15.5 % 876 745 131 17.7 %

Income tax expense 71 69 2 2.6 % 205 165 39 23.8 %

Loss from equity method investments 3 — 3 NM 8 1 7 NM

Loss (income) from equity method investments (4) (3) (2) 69.9 % 4 (1) 6 NM

Net income from continuing operations 252 209 43 20.5 % 667 581 87 14.9 %

Net income from continuing operations attributable to noncontrolling interests — 3 (3) NM 4 2 2 109.0 %

Net income from continuing operations attributable to noncontrolling interests 4 7 (3) (44.2) % 7 9 (1) (14.7) %

Net income from continuing operations attributable to Smithfield $ 248 $ 202 $ 46 22.7 % $ 660 $ 572 $ 88 15.4 %

Operating Profit by Segment

Three Months Ended Six Months Ended

2025 June 30,

2024 $ Change % Change June 29,

2025 June 30,

2024 $ Change % Change

Three Months Ended Nine Months Ended

September 28, 2025 September 29, 2024 $ Change % Change September 28, 2025 September 29, 2024 $ Change % Change

(in millions) (in millions)

3 unchanged sentences

Hog Production

22 (2) 24 NM 23 (176) 199 NM

89 40 48 119.8 % 112 (136) 248 NM

10 20 (10) (49.6) % 32 18 13 72.2 %

Corporate expenses (24) (28) 4 15.2 % (79) (92) 13 14.1 %

2 unchanged sentences

Results of Operations Analysis

The following discussion provides an analysis of our results of operations for the second quarter of 2025 compared to the second quarter of 2024 and for the first six months of 2025 compared to the first six months of 2024.

Three Months Ended Six Months Ended

June 29, 2025 June 30, 2024 $ Change % Change June 29, 2025 June 30, 2024 $ Change % Change

The following discussion provides an analysis of our results of operations for the third quarter of 2025 compared to the third quarter of 2024 and for the first nine months of 2025 compared to the first nine months of 2024.

Three Months Ended Nine Months Ended

September 28, 2025 September 29, 2024 $ Change % Change September 28, 2025 September 29, 2024 $ Change % Change

(in millions) (in millions)

9 unchanged sentences

(562) (632) 70 (11.1) % (1,621) (1,874) 254 (13.5) %

— — — NM (1) — — 26.9 %

Total inter-segment sales eliminations (1,473) (1,389) (84) 6.0 % (4,129) (4,111) (18) 0.4 %

Consolidated sales $ 3,747 $ 3,334 $ 412 12.4 % $ 11,304 $ 10,190 $ 1,114 10.9 %

Second Quarter—2025 vs.

Third Quarter—2025 vs.

Packaged Meats.

Segment sales increased by $134 million, or 6.9%, as a result of a 4.5% increase in sales volume and a 2.3% increase in average sales price.

The increase in volume was primarily attributable to higher holiday ham sales due to the timing of Easter, which occurred later in 2025 as compared to 2024.

The increase in average sales price was primarily due to higher raw material costs, which translated into higher sales prices of our packaged meats products, partially offset by an unfavorable shift in product mix attributable to the timing of the Easter holiday year-over-year.

Segment sales increased by $99 million, or 5.0%, primarily attributable to a 3.3% increase in our average sales price and a 1.7% increase in sales volume.

The increase in the average sales price is consistent with a 3.3% increase in the cut-out values reported by the USDA, which averaged $1.03 per pound in the second quarter of 2025, primarily due to an increased demand for pork.

Segment sales increased by $174 million, or 9.1%, primarily attributable to a 9.2% increase in our average sales price.

The increase in average sales price was primarily due to higher raw material costs, which translated into higher sales prices of our packaged meats products.

Sales volume remained consistent year-over-year.

Segment sales increased by $234 million, or 12.0%, primarily attributable to a 12.0% increase in our average sales price.

The increase in the average sales price was driven by lower U.S.

pork production coupled with continued strong demand for pork.

Fresh pork cut-out values reported by the USDA averaged $1.14 per pound in the third quarter of 2025, up 16.9% from the same period a year ago.

Lower prices for certain pork by-products, which are not included in the USDA cut-out values, driven by reduced exports to China, resulted in a smaller increase in our average sales price relative to the USDA.

Sales volume remained consistent year-over-year.

Hog Production.

Segment sales increased by $65 million, or 8.4%, primarily due to the following factors, which more than offset an approximately 850,000, or 24%, decrease in the number of market hogs sold due to our strategic initiative to optimize the size of our hog production operations and reduce the number of hogs we produce.

Segment sales increased by $75 million, or 10.1%, primarily due to the following factors, which more than offset an approximately 850,000, or 25%, decrease in the number of market hogs sold due to our Hog Production Reform initiative:

• A $120 million increase in grain and feed sales primarily attributable to our feed supply agreements with Murphy Family Farms and VisionAg.

• Other sales to Murphy Family Farms and VisionAg totaling $69 million in the second quarter of 2025, consisting primarily of the sale of commercial hog inventories and transportation services.

Our average market hog sales price remained consistent year-over-year, inclusive of the effects of hedging as compared to a 4.1% increase in the lean hog price index published by the Chicago Mercantile Exchange (“CME”).

• A 7.7% increase in our average market hog sales price, inclusive of the effects of hedging, driven by a higher lean hog price index published by the Chicago Mercantile Exchange (“CME”).

Segment sales increased by $14 million, or 12.1%, due to a 12.9% increase in average sales price and a 9.2% increase in volume in our Mexico operations.

These increases reflect the implementation of a new strategy, under which our Mexico operations began importing ham and other fresh pork products primarily from our Fresh Pork segment for resale to customers in Mexico, which supports growth in Mexico’s fresh pork sales.

The increase was partially offset by lower sales in our Bioscience operations.

Inter-segment Eliminations

3 unchanged sentences

The decrease in inter-segment sales by our Hog Production segment was attributable to our strategic initiative to optimize our hog production operations, which reduced the number of hogs produced by our Hog Production segment.

First Six Months—2025 vs.

First Nine Months—2025 vs.

Packaged Meats.

3 unchanged sentences

Segment sales increased by $428 million, or 7.3%, primarily attributable to a 6.7% increase in our average sales price and a 0.6% increase in sales volume.

The increase in the average sales price is reflective of a 4.5% increase in the cut-out values reported by the USDA, which averaged $0.99 per pound in the first half of 2025, primarily due to an increased demand for pork.

The increase in the average sales price is directionally aligned with the 8.7% increase in the cut-out values reported by the USDA, which averaged $1.04 per pound in the first nine months of 2025, primarily due to lower U.S.

pork production coupled with continued strong demand for pork.

Hog Production.

Segment sales increased by $291 million, or 19.6%, primarily due to the following factors, which more than offset an approximately 1.6 million, or 22%, decrease in the number of market hogs sold due to our strategic initiative to optimize the size of our hog production operations and reduce the number of hogs we produce.

• Sales of commercial hog inventories, transportation services and other ancillary goods and services to Murphy Family Farms and VisionAg totaled $271 million in the first six months of 2025.

Segment sales increased by $365 million, or 16.5%, primarily due to the following factors, which more than offset an approximately 2.5 million, or 23%, decrease in the number of market hogs sold due to our Hog Production Reform initiative:

• Sales of commercial hog inventories, transportation services and other ancillary goods and services to Murphy Family Farms and VisionAg totaling $340 million in the first nine months of 2025.

• A $309 million increase in grain and feed sales primarily attributable to our feed supply agreements with Murphy Family Farms and VisionAg.

• An increase in our average market hog sales price year-over-year, inclusive of the effects of hedging, of 8.2% primarily attributable to an 8.7% increase in the lean hog price index published by the CME.

• A 7.9% increase in our average market hog sales price, inclusive of the effects of hedging, driven by an increase in the lean hog price index published by the CME.

Inter-segment Eliminations

4 unchanged sentences

Cost of Sales

Three Months Ended Six Months Ended

June 29, 2025 June 30, 2024 $ Change % Change June 29, 2025 June 30, 2024 $ Change % Change

Three Months Ended Nine Months Ended

September 28, 2025 September 29, 2024 $ Change % Change September 28, 2025 September 29, 2024 $ Change % Change

(in millions) (in millions)

8 unchanged sentences

Cost of sales $ 3,268 $ 2,859 $ 409 14.3 % $ 9,817 $ 8,826 $ 991 11.2 %

Second Quarter—2025 vs.

Third Quarter—2025 vs.

Packaged Meats.

Cost of sales in our Packaged Meats segment increased by $173 million, or 11.4%, driven primarily by the following factors:

• A $146 million increase in raw material costs attributable to the effects of higher fresh pork market prices and higher sales volume.

• A $32 million decrease in employee retention tax credits.

Cost of sales in our Fresh Pork segment increased by $127 million, or 6.8%, driven primarily by the following factors, which more than offset manufacturing and distribution cost savings:

• A $108 million increase in raw material costs attributable to higher market prices for hogs and higher sales volume.

• A $35 million decrease in employee retention tax credits.

Cost of sales in our Packaged Meats segment increased by $193 million, or 12.2%, driven primarily by a $203 million increase in raw material costs attributable to the effect of higher fresh pork market prices, which more than offset lower manufacturing, freight and cold storage costs.

Cost of sales in our Fresh Pork segment increased by $257 million, or 13.7%, driven primarily by a $262 million increase in raw material costs attributable to higher market prices for hogs, which more than offset lower freight costs.

Hog Production.

Cost of sales in our Hog Production segment increased by $29 million, or 4.2%, due to:

• A $115 increase in the cost of grain and feed sales primarily attributable to our feed supply agreements with Murphy Family Farms and VisionAg.

• Costs associated with sales of other goods and services to Murphy Family Farms and VisionAg totaling $108 million in the second quarter of 2025, consisting primarily of commercial hog inventories and transportation services.

• An $8 million decrease in employee retention tax credits.

• A $121 million increase in the cost of grain and feed sales primarily attributable to our feed supply agreements with Murphy Family Farms and VisionAg.

• Costs associated with sales of other goods and services to Murphy Family Farms and VisionAg totaling $46 million in the third quarter of 2025, consisting primarily of hog inventories and transportation services.

These increases were partially offset by a $93 million decrease in raw material costs, a $27 million decrease in operating costs and a $19 million decrease in the cost of breeding stock sales, largely attributable to the reduction in the size of our hog production operations.

First Six Months—2025 vs.

Cost of sales in our Other segments increased by $24 million, or 26.2%, driven primarily by the following factors:

• A $21 million increase in raw material costs in our Mexico operations reflects the implementation of a new strategy, under which our Mexico operations began importing ham and other fresh pork products primarily from our Fresh Pork segment for resale to customers in Mexico, which supports growth in Mexico’s fresh pork sales.

• A $5 million charge recognized in the third quarter of 2025 to write down inventories in our Bioscience operations to their estimated net realizable values.

First Nine Months—2025 vs.

Packaged Meats.

Cost of sales in our Packaged Meats segment increased by $217 million, or 6.9%, driven primarily by the following factors, which more than offset manufacturing and distribution cost savings:

Cost of sales in our Packaged Meats segment increased by $410 million, or 8.7%, driven primarily by the following factors, which more than offset lower freight and cold storage costs:

• A $404 million increase in raw material costs attributable to the effect of higher fresh pork market prices.

• A $32 million decrease in employee retention tax credits.

Cost of sales in our Fresh Pork segment increased by $252 million, or 6.9%, driven primarily by the following factors, which more than offset manufacturing and distribution cost savings:

Cost of sales in our Fresh Pork segment increased by $509 million, or 9.2%, driven primarily by the following factors, which more than offset lower freight and cold storage costs:

• A $530 million increase in raw material costs attributable to higher market prices for hogs and higher sales volume.

2 unchanged sentences

Cost of sales in our Hog Production segment increased by $122 million, or 5.3%, due to:

• The sale of commercial hog inventories, transportation services and other ancillary goods and services to Murphy Family Farms and VisionAg, which increased cost of sales by $260 million in the first six months of 2025.

• A $187 increase in the cost of grain and feed sales primarily attributable to our feed supply agreements with Murphy Family Farms and VisionAg.

• A $308 million increase in the cost of grain and feed sales primarily attributable to our feed supply agreements with Murphy Family Farms and VisionAg.

• The sale of commercial hog inventories, transportation services and other ancillary goods and services to Murphy Family Farms and VisionAg, which increased cost of sales by $306 million in the first nine months of 2025.

• An $8 million decrease in employee retention tax credits.

These increases were partially offset by a $319 million decrease in raw material costs, a $132 million decrease in operating costs and a $48 million decrease in the cost of breeding stock sales, largely attributable to the reduction in the size of our hog production operations.

Cost of sales in our Other segments decreased by $32 million, or 14.2%, driven primarily by the following factors:

• A $13 million decrease in raw material costs in our Bioscience operations due primarily to lower sales volume.

• A $13 million decrease in manufacturing and distribution costs in our Mexico operations due in part to lower sales volume.

• A $4 million decrease in raw material costs in our Mexico operations primarily attributable to lower sales volume partially offset by higher market prices for feed ingredients.

Selling, General and Administrative Expenses

Three Months Ended Six Months Ended

June 29, 2025 June 30, 2024 $ Change % Change June 29, 2025 June 30, 2024 $ Change % Change

Three Months Ended Nine Months Ended

September 28, 2025 September 29, 2024 $ Change % Change September 28, 2025 September 29, 2024 $ Change % Change

(in millions) (in millions)

5 unchanged sentences

5 5 — 0.3 % 17 17 — 0.5 %

Unallocated 98 4 94 NM 111 13 98 NM

Corporate expenses

24 28 (4) (15.2) % 79 92 (13) (14.0) %

Unallocated 5 9 (4) (45.3) % 116 22 94 NM

Selling, general and administrative expenses $ 178 $ 200 $ (22) (11.1) % $ 643 $ 594 $ 50 8.4 %

SG&A increased by $74 million, or 38.1%, and $72 million, or 18.3%, for the second quarter and first six months of 2025, respectively, primarily due to the following factors, which more than offset various expense savings, including those attributable to our workforce reduction initiative:

• An increase in the accrual for litigation charges totaling $80 million.

These charges were not allocated to our operating segments.

• Accruals for employee termination benefits totaling $10 million for the first six months of 2025 resulting from our reduction in workforce initiative and decision to close our corporate offices in Lisle, Illinois and Kansas City, Missouri.

Third Quarter—2025 vs.

SG&A decreased by $22 million, or 11.1%, primarily due to various broad-based expense saving measures, including our workforce reduction initiative.

First Nine Months—2025 vs.

SG&A increased by $50 million, or 8.4%, primarily due to the following factors, which more than offset various broad-based expense savings, including those attributable to our workforce reduction initiative:

• An $80 million increase in litigation charges for the first nine months of 2025, which were not allocated to our operating segments.

• Accruals for employee termination benefits totaling $11 million for the first nine months of 2025 related to our workforce reduction initiative and the decision to close our satellite offices in Lisle, Illinois and Kansas City, Missouri.

These charges were not allocated to our operating segments.

Operating Gains

Operating gains consists of the following items:

Three Months Ended Six Months Ended

June 29, 2025 June 30, 2024 June 29, 2025 June 30, 2024

The following table provides details of operating gains.

Three Months Ended Nine Months Ended

September 28, 2025 September 29, 2024 September 28, 2025 September 29, 2024

(in millions)

3 unchanged sentences

Other operating gains (2)

(6) (2) (7) (3)

Operating gains $ (9) $ (10) $ (48) $ (12)

________________

(1) Consists of a gain recognized in the second quarter of 2025 related to the settlement of a claim against an insurance carrier for losses incurred in connection with past litigation and a gain recognized in the first quarter of 2025 in connection with a 2021 fire at our Tar Heel, North Carolina rendering facility.

(1) Consists of gains recognized in connection with settlements of insurance claims associated with property damage.

Also includes settlements of insurance claims in the second quarter of 2025 and the second and third quarters of 2024 for losses incurred in connection with past litigation.

(2) Includes a $6 million gain recognized in the third quarter of 2025 related to the settlement of a commercial dispute.

Interest Expense, Net

Interest expense, net decreased by $9 million, or 45.0%, and $13 million, or 37.1%, for the second quarter and first six months of 2025, respectively, due to higher levels of cash and cash equivalents earning interest in the current year.

Non-operating (Gains) Losses

Non-operating (gains) losses consisted of the following items:

Three Months Ended Six Months Ended

June 29, 2025 June 30, 2024 June 29, 2025 June 30, 2024

Interest expense, net decreased by $6 million, or 35.9%, and $19 million, or 36.7%, for the third quarter and first nine months of 2025, respectively, due to higher levels of cash and cash equivalents earning interest in the current year.

Non-Operating Gains

The following table provides details of non-operating gains.

Three Months Ended Nine Months Ended

September 28, 2025 September 29, 2024 September 28, 2025 September 29, 2024

(in millions)

Gain on nonqualified retirement plan assets (1)

$ (23) $ (9) $ (29) $ (18)

Net pension and postretirement benefits cost (2)

Non operating (gains) losses $ (4) $ (2) $ 2 $ (6)

Other non-operating gains — — — (1)

Non-operating gains $ (19) $ (7) $ (17) $ (13)

________________

(1) Includes a $17 million gain recognized in the third quarter of 2025 for a one-time benefit on company-owned life insurance policies.

(2) Includes the components of net pension and postretirement benefits cost other than service cost, which is included in operating profit.

1 unchanged sentence

Income Tax Expense

Income tax expense increased year-over-year by $5 million, or 8.4%, for the second quarter and $38 million, or 39.1%, for the first six months primarily due to higher earnings year-over-year.

Our effective tax rate attributable to continuing operations increased to 24.6% from 18.2% for the second quarters of 2025 and 2024, respectively, and to 24.0% from 20.5% for the first six months of 2025 and 2024, respectively, due to the combined impact of increased profitability in the current year, a settlement with state tax authorities and the disallowance of certain officers’ compensation..

Loss from Equity Method Investments

Loss from equity method investments increased by $3 million and $7 million for the second quarter and first six months of 2025, respectively, primarily due to losses incurred by Murphy Family Farms.

Income tax expense increased year-over-year by $2 million, or 2.6%, for the third quarter and $39 million, or 23.8%, for the first nine months primarily due to higher earnings year-over-year.

Our effective tax rate attributable to continuing operations decreased to 22.2% for the third quarter of 2025 compared to 25.0% for the third quarter of 2024.

The decrease was primarily driven by a non-taxable gain recognized in the third quarter of 2025 for the death

benefit on company-owned life insurance policies.

Our effective tax rate attributable to continuing operations increased to 23.4% for the first nine months of 2025 compared to 22.2% for the first nine months of 2024.

The increase was primarily attributable to the deductibility of certain officer compensation.

Loss (Income) from Equity Method Investments

For the first nine months of 2025, results from our equity method investments declined to a loss of $4 million, compared to income of $1 million in the prior-year period primarily due to losses incurred by Murphy Family Farms.

Liquidity and Capital Resources

Our sources of liquidity include cash and cash equivalents on hand together with availability under our committed revolving credit facilities.

As of June 29, 2025, we had $3,225 million of available liquidity consisting of $928 million in cash and cash equivalents and $2,297 million of availability under our committed credit facilities.

As of September 28, 2025, we had $3,069 million of available liquidity consisting of $773 million in cash and cash equivalents and $2,297 million of availability under our committed credit facilities.

Availability under our committed credit facilities is reduced by the principal amount of any outstanding commercial paper.

1 unchanged sentence

Credit Facilities

June 29, 2025

September 28, 2025

Facility Capacity Borrowing

20 unchanged sentences

The SPV is included in our condensed consolidated financial statements and therefore the accounts receivable owned by it are included in our condensed consolidated balance sheets.

However, the accounts receivable owned by the SPV are separate and distinct from our other assets and are not available to our other creditors should we become

As of June 29, 2025, the SPV held $410 million of accounts receivable.

However, the accounts receivable owned by the SPV are separate and distinct from our other assets and are not available to our other creditors should we become insolvent.

As of September 28, 2025, the SPV held $632 million of accounts receivable.

We must maintain certain ratios related to the collection of our receivables as a condition of the Securitization Facility agreement.

As of June 29, 2025, we had $28 million in letters of credit issued under the Securitization Facility.

As of September 28, 2025, we had $28 million in letters of credit issued under the Securitization Facility.

None of the letters of credit were drawn upon.

6 unchanged sentences

On behalf of the purchasing banks, we serviced all receivables sold under the Monetization Facility.

As of June 29, 2025, the uncollected balance of receivables that had been sold to purchasing banks was $232 million.

We had no servicing asset or liability outstanding as of June 29, 2025.

In the first quarter of 2023, we sold $227 million of accounts receivable at a discount and received proceeds totaling $225 million.

We reinvested $803 million and $774 million of cash collections from customers in the revolving sale of accounts receivable to purchasing banks in the three months ended June 29, 2025 and June 30, 2024, respectively and $1,829 million and $1,814 million in the six months ended June 29, 2025 and June 30, 2024, respectively.

We recognized charges totaling $3 million and $4 million in the second quarters of 2025 and 2024, respectively, and $6 million and $7 million in the first six months of 2025 and 2024, respectively, attributable to the discount on the sale of accounts receivable in SG&A in the condensed consolidated statement of income.

On July 22, 2025, we terminated the Monetization Facility.

The Monetization Facility originally was established to provide us with additional liquidity and working capital flexibility.

We reinvested $24 million and $793 million of cash collections from customers in the revolving sale of accounts receivable to purchasing banks in the third quarter of 2025 and 2024, respectively, and $2,085 million and $2,836 million in the first nine months of 2025 and 2024, respectively.

We recognized charges totaling $3 million in the third quarter of 2024 and $5 million and $10 million in the first nine months of 2025 and 2024, respectively, attributable to the discount on the sale of accounts receivable in SG&A in the condensed consolidated statements of income.

The charges for the third quarter of 2025 were not material.

On July 22, 2025, we terminated the Monetization Facility and paid $232 million to participating banks to reacquire the outstanding balance of accounts receivable previously sold under the facility.

The Monetization Facility was originally established to provide us with additional liquidity and working capital flexibility.

In light of our liquidity position and internal capital resources as of July 22, 2025, we determined that the Monetization Facility was no longer cost-effective or necessary.

1 unchanged sentence

Cash Flows From Operating Activities of Continuing Operations

Six Months Ended

June 29, 2025 June 30, 2024

Nine Months Ended

September 28, 2025 September 29, 2024

(in millions)

10 unchanged sentences

Change in accrued expenses and other current liabilities (62) (279)

Other (27) 46

Net cash flows from (used in) operating activities of continuing operations $ 108 (9)

The increase in net cash flows from operating activities of continuing operations year-over-year was primarily driven by changes in working capital, deferred taxes and accumulated other comprehensive income associated with hedging activity, as well as higher earnings.

Net cash flows from operating activities of continuing operations $ 121 $ 233

The decrease in net cash flows from operating activities of continuing operations year-over-year was primarily driven by changes in working capital, partially offset by higher earnings.

The following describes the significant changes in working capital:

• Accounts receivable.

Accounts receivable increased in the first six months of 2025 primarily due to the sale of commercial hog inventories and feed to Murphy Family Farms and VisionAg.

Accounts receivable increased in the first nine months of 2025 primarily driven by the termination of our Monetization Facility in July 2025 and the sale of commercial hog inventories and feed to Murphy Family Farms and VisionAg.

• Inventories.

Inventories decreased in both periods due to lower inventory volumes attributable to Hog Production Reform with a larger impact in the first six months of 2025 due to the sale of commercial hog inventories to Murphy Family Farms and VisionAg.

Additionally, feed inventories decreased in both periods primarily due to the routine consumption of grain purchased during the prior-year harvest.

The decreases in both periods were partially offset by increases in meat inventories largely due to the normal seasonal build-up for the summer and holidays.

Inventories increased in both periods driven by increases in meat inventories largely due to a seasonal build-up in preparation for the holiday season.

These increases were partially offset by lower hog inventory volumes, reflecting the impact of the Hog Production Reform.

The effect was more pronounced in 2025 due to the sale of commercial hog inventories to Murphy Family Farms and VisionAg.

Additionally, feed inventories declined in both periods as a result of the routine consumption of grain purchased during the prior-year harvest.

However, exceptionally strong harvest yields in 2025 moderated the rate of decline compared to the same period in the prior year.

• Accounts payable .

2 unchanged sentences

• Accrued expenses and other current liabilities.

Accrued expenses and other current liabilities decrease seasonally in the first quarter each year due to payout of variable compensation earned in the prior year.

The fluctuation year-over-year was primarily attributable to changes in our accruals for litigation matters and amounts due to participating banks in connection with the monetization facility.

Additionally, the decrease in accrued expenses and other current liabilities in the first six months of 2024 reflects the payout of contract termination and other exit costs attributable to our Hog Production Reform activities.

Accrued expenses and other current liabilities typically decline in the first quarter of each year due to the payment of variable compensation earned in the prior year.

The year-over-year variance was mainly attributable to changes in accruals related to litigation matters, open hedging positions, and obligations to banks participating in the Monetization Facility.

Additionally, the decrease in accrued expenses and other current liabilities in the first nine months of 2024 reflects the payout of contract termination and other exit costs attributable to our Hog Production Reform activities.

Cash Flows From Investing Activities of Continuing Operations

Six Months Ended

June 29, 2025 June 30, 2024

Nine Months Ended

September 28, 2025 September 29, 2024

(in millions)

1 unchanged sentence

Capital expenditures $ (246) $ (268)

Investments in partnerships and other assets (10) (5)

Net expenditures from breeding stock transactions (9) (42)

Proceeds from sale of property, plant and equipment and other assets 6 8

Insurance proceeds 7 2

Cash receipts on notes receivable 14 —

Net cash flows used in investing activities of continuing operations $ (239) $ (305)

2 unchanged sentences

Capital expenditures for both periods consisted primarily of various plant automation and improvement projects.

• Investments in partnerships and other assets.

Investments in partnerships and other assets includes capital contributions totaling $7 million and $5 million to a biogas joint venture in the first nine months of 2025 and 2024, respectively.

• Cash receipts on notes receivable .

Cash receipts on notes receivable consists of cash received primarily related to sales of assets to Murphy Family Farms and VisionAg.

Cash Flows From Financing Activities of Continuing Operations

Six Months Ended

June 29, 2025 June 30, 2024

Nine Months Ended

September 28, 2025 September 29, 2024

(in millions)

Cash flows from financing activities:

Net proceeds from issuance of common stock $ 236 $ —

Payment of dividends $ (297) $ (270)

Principal payments on long-term debt and finance lease obligations (1) (20)

Repayments to Securitization Facility — (14)

Proceeds from Securitization Facility — 14

Principal payments on long-term debt and finance lease obligations (1) (19)

Net repayments to revolving credit facilities — (1)

Net proceeds from issuance of common stock 236 —

Net cash flows used in financing activities of continuing operations $ (64) $ (290)

The following items explain the significant financing activities:

• Payment of dividends.

Net cash flows from (used in) financing activities of continuing operations $ 38 $ (202)

In both periods, $1 million of dividends was paid to the noncontrolling interest holder of our consolidated subsidiary, Granjas Carroll de Mexico, S.

de C.V., (commonly known as “Altosano”), and the remainder was paid to our shareholders.

• Net proceeds from issuance of common stock .

In the first quarter of 2025, we received net proceeds from our IPO of $236 million after deducting underwriting discounts, commissions and fees.

Other Anticipated or Potential Cash Requirements

2 unchanged sentences

We plan to continue to support the business in 2025 through capital expenditures in the range of $350 million to $400 million, inclusive of profit improvement projects, such as packaged meats capacity expansion and automation, as well as repairs and maintenance.

On April 22, 2025 and May 29, 2025, we paid dividends of $0.25 per share to shareholders.

On July 31, 2025, we announced a quarterly dividend of $0.25 per share to be paid to shareholders on August 28, 2025.

We anticipate the remaining quarterly dividend for fiscal 2025 will be $0.25 per share, resulting in an annual dividend rate for fiscal 2025 of $1.00 per share.

On April 22, 2025, May 29, 2025 and August 28, 2025, we paid dividends of $0.25 per share to our shareholders.

We anticipate remaining quarterly dividends for fiscal year 2025 will be $0.25 per share, resulting in an annual dividend rate for fiscal year 2025 of $1.00 per share.

The declaration of dividends is subject to the discretion of our Board and depends on various factors, including our net income, financial condition, cash requirements, business prospects, and other factors that our Board deems relevant to its analysis and decision making.

Monarch Sale Notice

On January 16, 2025, TPG Rise Climate (“TPG”), one of the other two equal joint venture partners in Monarch Bio Energy, LLC (“Monarch”), delivered a sale notice under the joint venture agreement, pursuant to which Monarch

must pursue a sale of the joint venture.

In the event that a sale of Monarch is not consummated before January 17, 2026, TPG may require that Monarch purchase TPG’s ownership interests in Monarch.

Altosano Redeemable Noncontrolling Interest

The noncontrolling interest (“NCI”) holders in Granjas Carroll de Mexico, S.

de C.V., (“Altosano”) currently have the right to exercise a put option that would obligate us to redeem 40% of their interest.

The noncontrolling interest (“NCI”) holders in Altosano currently have the right to exercise a put option that would obligate us to redeem 40% of their interest.

After December 31, 2027 the NCI holders in Altosano have the right to exercise a put option for the remainder of their interest.

The redemption value for the NCI is fair value.

As of June 29, 2025, the value of the NCI on our condensed consolidated balance sheet was $245 million.

As of September 28, 2025, the value of the NCI on our condensed consolidated balance sheet was $257 million.

Contingent Losses

10 unchanged sentences

Conversely, when the value of our open derivative contracts increases, our brokers may be required to deliver margin deposits to us for a portion of the increase.

Over the past two fiscal years, the maximum amount of margin deposits held by our brokers and counterparties at any given time was $121 million.

Over the past twelve quarters, the maximum amount of margin deposits held by our brokers and counterparties at any given time was $121 million.

The effects, positive or negative, on liquidity resulting from our risk management activities historically have tended to be mitigated by offsetting changes in cash prices in our core business.

For example, in a period of rising grain prices, gains resulting from long grain derivative positions would generally be offset by higher cash prices paid to farmers and other suppliers in spot markets.

For example, in a period of rising grain prices, gains resulting from long grain derivative positions would generally be offset by higher cash prices paid to

farmers and other suppliers in spot markets.

These offsetting changes do not always occur, however, in the same amounts or in the same period, with lag times of as much as twelve months.

13 unchanged sentences

As such, adjusted net income from continuing operations attributable to Smithfield and adjusted net income from continuing operations per common share attributable to Smithfield are not intended to be alternatives to net income from continuing operations, net income from continuing operations per common share or any other performance measures derived in accordance with GAAP and should not be used by investors or other users of our financial statements in isolation for formulating decisions as they exclude a number of important cash and non-cash charges.

Three Months Ended Six Months Ended Affected income statement

June 29, 2025 June 30, 2024 June 29, 2025 June 30, 2024

Three Months Ended Nine Months Ended Affected income statement

September 28, 2025 September 29, 2024 September 28, 2025 September 29, 2024

(in millions, except per share data)

16 unchanged sentences

(2) (3) (36) (4) Operating gains

Company-owned life insurance gain (6)

(17) — (17) — Non-operating gains

Income tax effect of non-GAAP adjustments (7)

7 unchanged sentences

(2) Consists of severance costs associated with the planned closure of our satellite offices in Lisle, Illinois and Kansas City, Missouri.

(3) Consists of contract termination costs, employee termination benefits and accelerated depreciation charges associated with our Hog Production Reform initiative.

(3) Consists of contract termination costs, loss on asset disposals, employee termination benefits, accelerated depreciation charges and other exit costs associated with our Hog Production Reform initiative.

(4) Represents the recognition of employee retention tax credits received under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act.

(5) Consists of gains recognized in connection with settlements of insurance claims, including:

(1) a gain recognized in the second quarter of 2025 related to a claim against an insurance carrier for losses incurred in connection with past litigation and (2) a gain recognized in the first quarter of 2025 in connection with a 2021 fire at our Tar Heel, North Carolina rendering facility.

(5) Consists of gains recognized in connection with settlements of insurance claims associated with property damage.

Also includes settlements of insurance claims in the second quarter of 2025 and the second and third quarters of 2024 for losses incurred in connection with past litigation.

(6) Consists of a gain recognized in the third quarter of 2025 for a one-time benefit on company-owned life insurance policies.

(7) Represents the tax effects of the non-GAAP adjustments based on a statutory tax rate of 25.7%.

3 unchanged sentences

We believe EBITDA from continuing operations is a useful measure to our stakeholders because it excludes the effects of financing and investing activities by eliminating interest and depreciation costs to provide a comparable year-over-year analysis.

We believe adjusted EBITDA from continuing operations is a useful measure as it excludes the effect of discontinued operations, non-operating gains and losses, and other items that are unusual in nature, infrequent in occurrence or otherwise stem from strategic decisions to restructure our operations.

We believe adjusted EBITDA from continuing operations is a useful measure as it excludes the effect of discontinued operations, non-operating gains and losses, and other items that are unusual

in nature, infrequent in occurrence or otherwise stem from strategic decisions to restructure our operations.

We believe adjusted EBITDA margin from continuing operations is a useful measure as it evaluates overall operating performance, ability to pursue and service possible debt opportunities and possible future investment opportunities.

2 unchanged sentences

As such, EBITDA from continuing operations, adjusted EBITDA from continuing operations and adjusted EBITDA margin from continuing operations are not intended to be alternatives to net income from continuing operations or any other performance measures derived in accordance with GAAP and should not be used by investors or other users of our financial statements in isolation for formulating decisions as they exclude a number of important cash and non-cash charges.

Three Months Ended Six Months Ended Twelve Months Ended Affected Income Statement Account

June 29, 2025 June 30, 2024 June 29, 2025 June 30, 2024 June 29, 2025 December 29, 2024

Three Months Ended Nine Months Ended Twelve Months Ended Affected Income Statement Account

September 28, 2025 September 29, 2024 September 28, 2025 September 29, 2024 September 28, 2025 December 29, 2024

(in millions, except percentages)

25 unchanged sentences

(2) (3) (36) (4) (36) (4) Operating gains

Company-owned life insurance gain (8)

(17) — (17) — (17) — Non-operating gains

Adjusted EBITDA from continuing operations $ 398 $ 383 $ 1,175 $ 976 $ 1,577 $ 1,379

5 unchanged sentences

(2) Consists of severance costs associated with the planned closure of our satellite offices in Lisle, Illinois and Kansas City, Missouri.

(3) Excludes accelerated depreciation charges in the amount of $1 million recognized in the first six months of 2025 as such charges are included in the depreciation and amortization line in this table.

(4) Consists of contract termination costs and employee termination benefits charges associated with our Hog Production Reform initiative.

Excludes accelerated depreciation charges of $1 million and $2 million recognized in the first quarter of 2025 and the last six months of 2024, respectively, as such charges are included in the depreciation and amortization line in this table.

(3) Excludes accelerated depreciation charges as such amounts are included in the depreciation and amortization line in this table.

(4) Consists of contract termination costs, loss on asset disposals, employee termination benefits and other exit costs associated with our Hog Production Reform initiative.

Excludes accelerated depreciation charges as such amounts are included in the depreciation and amortization line in this table.

(5) Includes a $32 million gain on the sale of our Utah hog farms and a $6 million gain on the sale of breeding stock to Murphy Family Farms in the fourth quarter of 2024.

(6) Represents the recognition of employee retention tax credits received under the CARES Act.

(7) Consists of gains recognized in connection with settlements of insurance claims, including:

(7) Consists of gains recognized in connection with settlements of insurance claims associated with property damage.

Also includes settlements of insurance claims in the second quarter of 2025 and the second and third quarters of 2024 for losses incurred in connection with past litigation.

(8) Consists of a gain recognized in the third quarter of 2025 for a one-time benefit on company-owned life insurance policies.

Net Debt and Ratio of Net Debt to Adjusted EBITDA from Continuing Operations

8 unchanged sentences

Twelve Months Ended

September 28,

2025 December 29, 2024

13 unchanged sentences

We believe these non-GAAP measures are useful to investors because they provide a better understanding of underlying operating results and trends of established, ongoing operations of our segments, excluding the impact of items that are unusual in nature, infrequent in occurrence or otherwise stem from strategic decisions to restructure our operations.

These non-GAAP measures are not intended to be alternatives to operating profit, operating profit margin or any other performance measures derived in accordance with GAAP and should not be used by investors or other users of our financial statements in isolation for formulating decisions as they exclude a number of important cash and non-cash charges.

These non-GAAP measures are not intended to be alternatives to operating profit, operating profit margin or any other performance measures

derived in accordance with GAAP and should not be used by investors or other users of our financial statements in isolation for formulating decisions as they exclude a number of important cash and non-cash charges.

Three Months Ended

June 29, 2025 Packaged Meats Fresh Pork Hog Production Other (1)

September 28, 2025 Packaged Meats Fresh Pork Hog Production Other (1)

Corporate (2)

2 unchanged sentences

Operating profit (loss) $ 226 $ 10 $ 89 $ 10 $ (24) $ (1) $ 310

Litigation charges — — — — — 73 73

Office closures (4)

— — — — — 4 4

Employee retention tax credits (5)

(5) (5) — — — — (10)

Hog Production Reform — — — — — 1 1

Insurance recoveries — — — — — (2) (2)

— — — — — (29) (29)

Adjusted operating profit (loss) $ 226 $ 10 $ 89 $ 10 $ (24) $ (1) $ 310

2 unchanged sentences

Three Months Ended

June 30, 2024 Packaged Meats Fresh Pork Hog Production Other (1)

September 29, 2024 Packaged Meats Fresh Pork Hog Production Other (1)

Corporate (2)

2 unchanged sentences

Operating profit (loss) $ 239 $ 28 $ 40 $ 20 $ (28) $ (15) $ 285

Incremental costs from destruction of property — — — — — 2 2

Hog Production Reform (4)

— — — — — 3 3

Insurance recoveries (5)

Employee retention tax credits (5)

— — — — — (3) (3)

6 unchanged sentences

(3) Includes certain costs of sales, SG&A and operating gains that we do not allocate to our segments.

(4) Consists of severance costs associated with the planned closure of our satellite offices in Lisle, Illinois and Kansas City, Missouri.

(5) Represents the recognition of employee retention tax credits received under the CARES Act.

(6) Consists of a gain recognized in the second quarter of 2025 for the settlement of a claim with an insurance carrier to recover losses incurred in connection with past litigation.

Six Months Ended

June 29, 2025 Packaged Meats Fresh Pork Hog Production Other (1)

(4) Consists of loss on asset disposals, accelerated depreciation charges and other exit costs associated with our Hog Production Reform initiative.

(5) Consists of a gain recognized in the third quarter of 2024 for the settlement of a claim with an insurance carrier to recover losses incurred in connection with past litigation.

Nine Months Ended September 28, 2025 Packaged Meats Fresh Pork Hog Production Other (1)

Corporate (2)

16 unchanged sentences

Adjusted operating profit (loss) margin 12.7 % 1.9 % 4.3 % 8.9 % NM NM 8.3 %

Six Months Ended

June 30, 2024 Packaged Meats Fresh Pork Hog Production Other (1)

Nine Months Ended September 29, 2024 Packaged Meats Fresh Pork Hog Production Other (1)

Corporate (2)

6 unchanged sentences

Insurance recoveries (7)

— — — — — (4) (4)

Employee retention tax credits (6)

10 unchanged sentences

(6) Represents the recognition of employee retention tax credits received under the CARES Act.

(7) Consists of gains recognized in connection with settlements of insurance claims, including:

(8) Consists of contract termination costs, employee termination benefits and accelerated depreciation charges associated with our Hog Production Reform initiative.

(7) Consists of gains recognized in connection with settlements of insurance claims associated with property damage.

Also includes settlements of insurance claims in the second quarter of 2025 and the second and third quarters of 2024 for losses incurred in connection with past litigation.

(8) Consists of contract termination costs, loss on asset disposals, employee termination benefits, accelerated depreciation charges and other exit costs associated with our Hog Production Reform initiative.

Critical Accounting Estimates

46 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis