Financial Analysis

DEBT Long-term debt consists of the following: December 28, 2025 December 29, 2024 (in millions) 4.25% senior unsecured notes, due February 2027, net of unamortized debt issuance costs and discounts totaling $1 million and $1 million as of December 28, 2025 and December 29, 2024, respectively $ 599 $ 599 5.20% senior unsecured notes, due April 2029, net of unamortized debt issuance costs and discounts totaling $2 million and $3 million as of December 28, 2025 and December 29, 2024, respectively 398 397 3.00% senior unsecured notes, due October 2030, net of unamortized debt issuance costs and discounts totaling $5 million and $7 million as of December 28, 2025 and December 29, 2024, respectively 495 493 2.625% senior unsecured notes, due September 2031, net of unamortized debt issuance costs and discounts totaling $6 million and $7 million as of December 28, 2025 and December 29, 2024, respectively 494 493 Total long-term debt $ 1,986 $ 1,983 Scheduled principal payments on debt for the next five years are as follows: Year (in millions) 2026 $ 2027 600 2028 2029 400 2030 500 Interest paid on our outstanding debts and other obligations for fiscal years 2025, 2024 and 2023 totaled $80 million, $79 million and $81 million, respectively. Credit Facilities December 28, 2025 Facility Capacity Borrowing Base Adjustment Outstanding Borrowings Commercial Paper Borrowings Outstanding Letters of Credit Amount Available (in millions) Senior Revolving Credit Facility $ 2,100 $ $ $ $ $ 2,10 …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following tables disaggregate our sales to customers by reportable segment and by major distribution channel. Fiscal Year 2025 Retail (1) Foodservice (2) Exports (3) Industrial (4) Other / Unallocated (5) Total External Sales (6) Intersegment Consolidated (7) (in millions) Packaged Meats $ 5,517 $ 2,684 $ 107 $ 432 $ 17 $ 8,756 $ $ 8,757 Fresh Pork 2,020 273 1,647 1,071 7 5,017 3,327 8,344 Hog Production 1,229 1,229 2,164 3,393 Other (8) 528 528 1 528 Intersegment (5,492) (5,492) Total $ 7,537 $ 2,957 $ 1,753 $ 1,504 $ 1,780 $ 15,531 $ $ 15,531 Fiscal Year 2024 Retail (1) Foodservice (2) Exports (3) Industrial (4) Other / Unallocated (5) Total External Sales (6) Intersegment Consolidated (7) (in millions) Packaged Meats $ 5,349 $ 2,447 $ 104 $ 403 $ 16 $ 8,319 $ $ 8,319 Fresh Pork 1,946 232 1,666 1,035 5 4,883 2,990 7,873 Hog Production 469 469 2,533 3,002 Other (8) 470 470 1 471 Intersegment (5,524) (5,524) Total $ 7,295 $ 2,679 $ 1,769 $ 1,438 $ 960 $ 14,142 $ $ 14,142 Fiscal Year 2023 Retail (1) Foodservice (2) Exports (3) Industrial (4) Other / Unallocated (5) Total External Sales (6) Intersegment Consolidated (7) (in millions) Packaged Meats $ 5,265 $ 2,420 $ 126 $ 449 $ 20 $ 8,280 $ $ 8,280 Fresh Pork 2,007 246 1,731 1,142 12 5,138 2,694 7,832 Hog Production 671 671 2,646 3,317 Other (8) 552 552 7 559 Intersegment (5,348) (5,348) Total $ 7,272 $ 2,667 $ 1,857 $ 1,591 $ 1,254 $ 14,640 $ $ 14,640 ________________ (1) Includes national and regional retailers in the U.S …

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FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We are required to consider and reflect the assumptions of market participants in fair value calculations. These factors include nonperformance risk (the risk that an obligation will not be fulfilled) and credit risk, both of the reporting entity (for liabilities) and of the counterparty (for assets). We use, as appropriate, a market approach (generally, data from market transactions), an income approach (generally, present value techniques), and/or a cost approach (generally, replacement cost) to measure the fair value of an asset or liability. These valuation approaches incorporate inputs, such as observable, independent market data, that we believe are predicated on the assumptions market participants would use to price an asset or liability. These inputs may incorporate, as applicable, certain risks such as nonperformance risk, which includes credit risk. The FASB has established a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. The fair value hierarchy gives the highest priority to quoted market prices (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of inputs used to measure fair value are as follows: Level 1 Quoted prices in active markets for identical assets or liabilities accessible b …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

INCOME TAXES Income (loss) from continuing operations before income taxes consists of the following: Fiscal Year 2025 2024 2023 (in millions) U.S. $ 1,219 $ 1,008 $ (134) Foreign 51 53 5 Total income (loss) from continuing operations before income taxes $ 1,270 $ 1,061 $ (129) Income Tax Expense Income tax expense (benefit) from continuing operations consists of the following: Fiscal Year 2025 2024 2023 (in millions) Current income tax expense: Federal $ 142 $ 161 $ 55 State 31 19 33 Foreign 16 189 180 89 Deferred income tax expense (benefit): Federal 93 72 (120) State 8 (6) Foreign 1 11 (4) 94 91 (130) Total income tax expense (benefit) $ 283 $ 271 $ (41) Effective Tax Rate Reconciliation The following tables reconcile the federal statutory income tax rate to our effective tax rate: Fiscal Year 2025 Amount Percent (in millions) U.S. federal statutory tax rate 267 21.0 % State and local income taxes, net of federal income tax benefit (1) 23 1.8 % Foreign tax effects: Statutory tax rate difference in Mexico 5 0.4 % Other 2 0.2 % Cross-border tax laws (6) (0.5) % Tax credits: (2) Research and development tax credits (10) (0.8) % Other (3) (0.2) % Nontaxable or nondeductible items (3) 6 0.5 % Change in unrecognized tax benefits 1 0.1 % Other (1) (0.1) % Effective tax rate $ 283 22.3 % Fiscal Year 2024 2023 Federal income taxes at statutory rate 21.0 % 21.0 % Unrecognized tax benefits 3.5 (13.0) State income taxes, net of federal tax benefit 1.7 (3.5) Impact of foreign operations …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

LEASE OBLIGATIONS, COMMITMENTS AND GUARANTEES Lease Obligations We lease real estate, vehicles, machinery and other equipment. Additionally, we have contracts with independent farmers to raise our hogs that include a lease component for the use of the farmers facilities. Our leases may include options to extend or terminate the lease, variable lease payments based on usage of the underlying assets and residual value guarantees. The following table presents the maturities of our lease obligations as of December 28, 2025: Operating Leases Finance Leases Total (in millions) 2026 $ 89 $ 3 $ 92 2027 78 2 80 2028 66 2 68 2029 40 2 41 2030 27 2 28 After 2030 189 7 197 Total lease payments $ 489 $ 17 $ 506 Present value discount (96) (96) Present value of lease obligations $ 393 $ 17 $ 410 The following table presents the weighted-average lease term and discount rate for our leases: December 28, 2025 December 29, 2024 Weighted-average remaining lease term (years): Finance leases 8.7 9.4 Operating leases 9.1 10.8 Weighted-average discount rate: Finance leases 0.7 % 0.8 % Operating leases 5.0 % 4.8 % The components of total lease cost included in the consolidated statements of income are presented in the following table: Fiscal Year 2025 2024 2023 (in millions) Operating lease cost $ 89 $ 83 $ 90 Finance lease cost: Amortization of leased assets 3 3 23 Interest on lease obligations 1 Short-term lease cost (1) 62 95 96 Variable lease cost (2) 29 23 23 Total lease cost $ 183 $ 204 $ 234 …

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Recently Issued Accounting Pronouncements New Accounting Pronouncements Recently Adopted In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures . The standard requires enhanced rate reconciliation disclosures, including disclosure of specific categories and additional information for reconciling items that meet a quantitative threshold. The standard also requires companies to disaggregate income taxes paid by federal, state and foreign jurisdictions. The update was adopted and applied in this Annual Report on Form 10-K on a prospective basis. The standard does not impact our financial position, results of operations or cash flows. New Accounting Pronouncements Not Yet Adopted In November 2024, the FASB issued ASU 2024-03 Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses . The new guidance is intended to provide investors with more disaggregated information about certain line items presented in the consolidated statement of income. The update is effective for our annual report on Form 10-K for fiscal year 2027, with early adoption permitted. The new disclosures are required to be applied prospectively with an option for retrospective application. The standard will not impact our financial position, results of operations or cash flows. In May 2025, the FASB issue …

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PENSION AND OTHER RETIREMENT PLANS Company Sponsored Defined Benefit Pension Plans We sponsor several qualified and non-qualified defined benefit pension plans. Benefits under the qualified plans were frozen in 2021 for all non-union participants. The following table presents a reconciliation of the pension benefit obligation, plan assets and the funded status of our pension plans: December 28, 2025 December 29, 2024 (in millions) Change in benefit obligation: Benefit obligation at beginning of year $ 1,799 $ 1,829 Service cost 12 12 Interest cost 100 99 Benefits paid (121) (116) Actuarial (gain) loss 26 (24) Benefit obligation at end of year 1,817 1,799 Change in plan assets: (1) Fair value of plan assets at beginning of year 1,498 1,551 Actual return on plan assets 174 6 Employer contributions 72 56 Benefits paid (121) (116) Fair value of plan assets at end of year 1,623 1,498 Funded status $ 194 $ 302 Amounts recognized in the consolidated balance sheets: Net long-term pension obligation 207 279 Accrued expenses and other current liabilities 17 23 Other assets 30 Net amount recognized at end of year $ 194 $ 302 ________________ (1) Excludes the assets and related activity of our non-qualified defined benefit pension plans. The fair value of assets related to our non-qualified plans was $172 million and $141 million as of December 28, 2025 and December 29, 2024, respectively. These assets, which are held in a rabbi trust and remain subject to the claims of our general credi …

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RELATED PARTY TRANSACTIONS The following tables present balances due from and to related parties and amounts of related party transactions: December 28, 2025 December 29, 2024 (in millions) Due from related parties: Accounts receivable, net (1) $ 235 $ 61 Prepaid expenses and other current assets (2) 56 12 Other assets (2) 26 $ 34 Total $ 316 $ 106 Due to related parties (3) $ 10 $ 7 ________________ (1) Primarily represents amounts due from Murphy Family Farms and VisionAg as of December 28, 2025 for the sale of livestock feed as well as amounts due from subsidiaries of WH Group as of December 28, 2025 and December 29, 2024 primarily for the sale of fresh pork offal products. (2) Primarily represents notes receivable from Murphy Family Farms and VisionAg related to the sale of breeding stock and related assets. (3) Primarily represents amounts due to Murphy Family Farms, VisionAg, Morliny Foods and other equity method investees for the purchase of raw materials and inventories, which are classified in accounts payable. Fiscal Year 2025 2024 2023 (in millions) Receipts from related parties: Sales to Murphy Family Farms and VisionAg (1) $ 810 $ 39 $ Sales to subsidiaries of WH Group (2) 318 388 487 Other (3) 6 20 14 Total $ 1,134 $ 447 $ 501 Payments to related parties: Purchases from Murphy Family Farms and VisionAg (4) $ 728 $ $ Payments of dividends (5) 359 494 350 Purchases from other equity method investees (6) 146 146 0 176 Purchases from subsidiaries of WH Group (7) 45 …

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RESTRUCTURING West Coast Exit and Hog Production Reform West Coast Exit In May 2022, we announced a decision to close our Vernon, California processing facility, exit farm operations in Arizona and California and reduce our sow herd in Utah. The decision to permanently close our Vernon facility was based on increasingly difficult business conditions in California, where high taxes, high utility costs and a challenging regulatory environment negatively impact our ability to operate efficiently and profitably. In December 2023, we made a decision to terminate a number of third-party hog grower contracts and close several company-owned nursery farms in Utah as a result of the Vernon facility closure in early fiscal year 2023. As a result of the West Coast Exit, we recognized gains on the sale of certain properties as follows: In the second quarter of fiscal year 2023, we sold our Vernon, California facility for $205 million and recognized a gain of $86 million in operating gains in the consolidated statement of income. On December 17, 2024, we sold our hog production assets in Utah, excluding the live animals, for $58 million. The transaction resulted in a gain of $32 million, which was recognized in operating gains in the consolidated statement of income in the fourth quarter of fiscal year 2024. As part of the agreement, we leased back certain farm and feed properties that we continue to operate. The lease can be cancelled during each annual term and is therefore considered sh …

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REPORTABLE SEGMENTS Our reportable segments are determined on the basis of our organizational structure and information that is regularly reviewed by our Chief Operating Decision Maker (CODM) for the purpose of assessing the performance of the operating segments of our business and making operating and resource allocation decisions. Our CODM is our Chief Executive Officer. Our CODM reviews assets at a consolidated level; not by reportable segment. Therefore, we do not disclose assets by reportable segment. Additionally, while segments are managed separately, our manufacturing and warehousing activities are often integrated to optimize cost efficiencies, resulting in jointly utilized assets, including fixed assets, that are are not tracked at the segment level. Depreciation and amortization associated with these shared assets are generally allocated to reportable segments. The measure of segment profit reviewed by our CODM is operating profit. Our CODM uses operating profit to assess segment performance, compensate employees and allocate capital, personnel and other resources to each segment. Following the carve-out and distribution of our European operations (see Note 3: Discontinued Operations), we conduct our operations through three reportable segments: Packaged Meats, Fresh Pork and Hog Production. Packaged Meats The Packaged Meats segment consists of our U.S. operations that process fresh meat into a wide variety of packaged meats products, including bacon, sausage, hot …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization Smithfield Foods, Inc., together with its subsidiaries (Smithfield, the Company, we, us or our) produces a wide variety of fresh pork and packaged meats products primarily in the United States (U.S.) and markets them both domestically and internationally. We operate in a cyclical industry and our results are significantly affected by fluctuations in commodity prices for meat, livestock (primarily hogs) and grains. We are an indirect, majority-owned subsidiary of Hong Kong-based WH Group Limited (WH Group). Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. (GAAP), which require us to make estimates and use assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. It is possible that actual results could differ materially from those estimates. The information reflects all normal recurring adjustments which we believe are necessary to present fairly the financial position and results of operations for all periods included. Totals and percentages may be affected by rounding. Certain prior period amounts have been reclassified to conform to the current period presentation. Our elected fiscal year is the 52-week or 53-week period which ends on the Sunday nearest to December 31. Fiscal years 2025, 2024 and 2023 each consisted of 52 weeks. Principles of Consolidatio …

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EQUITY Stock Split On January 17, 2025, the Companys board of directors and shareholder approved a 380,069.232-for-one stock split of its issued and outstanding shares of common stock, resulting in issued and outstanding shares of common stock of 380,069,232, which was effected through filing of an amendment to the Companys articles of incorporation on January 17, 2025. As part of the amendment, the number of authorized shares of common stock was revised to 5,000,000,000, the par value of which was not adjusted, and 100,000,000 shares of preferred stock were authorized. All share and per share amounts for all periods presented in the accompanying financial statements have been adjusted retroactively to reflect this stock split. Initial Public Offering On January 29, 2025, we completed our IPO of 26,086,958 shares of common stock, representing 7% of the total outstanding shares, at a price of $20.00 per share. 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 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 that option and purchased 2,506,936 additional shares of common stock from WH Group. We received net procee …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

The following tables disaggregate our sales to customers by reportable segment and by major distribution channel. Three Months Ended March 29, 2026 Retail (1) Foodservice (2) Exports (3) Industrial (4) Other / Unallocated (5) Total External Sales (6) Intersegment Consolidated (in millions) Packaged Meats $ 1,390 $ 618 $ 30 $ 111 $ (1) $ 2,149 $ $ 2,149 Fresh Pork 498 75 399 255 1,228 784 2,012 Hog Production 250 250 519 769 Other (7) 174 174 174 Intersegment (1,303) (1,303) Total $ 1,889 $ 693 $ 429 $ 366 $ 423 $ 3,800 $ $ 3,800 Three Months Ended March 30, 2025 Retail (1) Foodservice (2) Exports (3) Industrial (4) Other / Unallocated (5) Total External Sales (6) Intersegment Consolidated (in millions) Packaged Meats $ 1,284 $ 597 $ 31 $ 110 $ 2 $ 2,024 $ $ 2,024 Fresh Pork 483 59 435 266 3 1,246 787 2,033 Hog Production 397 397 535 932 Other (7) 104 104 104 Intersegment (1,322) (1,322) Total $ 1,767 $ 657 $ 466 $ 376 $ 505 $ 3,771 $ $ 3,771 ________________ (1) Includes national and regional retailers in the U.S. such as grocery supermarket chains, independent grocers and club stores. (2) Includes foodservice distributors, fast food and other restaurant operators, hotel chains and other institutional customers in the U.S. (3) Includes exports from the U.S. to international retailers and wholesale distributors primarily in North America, Asia, Latin America and other emerging markets. (4) Includes sales to industrial customers who use our raw materials in their finished goods …

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FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We are required to consider and reflect the assumptions of market participants in fair value calculations. These factors include nonperformance risk (the risk that an obligation will not be fulfilled) and credit risk, both of the reporting entity (for liabilities) and of the counterparty (for assets). We use, as appropriate, a market approach (generally, data from market transactions), an income approach (generally, present value techniques), and/or a cost approach (generally, replacement cost) to measure the fair value of an asset or liability. These valuation approaches incorporate inputs, such as observable, independent market data, that we believe are predicated on the assumptions market participants would use to price an asset or liability. These inputs may incorporate, as applicable, certain risks such as nonperformance risk, which includes credit risk. The FASB has established a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. The fair value hierarchy gives the highest priority to quoted market prices (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of inputs used to measure fair value are as follows: Level 1 Quoted prices in active markets for identical assets or liabilities accessible b …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Recently Issued Accounting Pronouncements New Accounting Pronouncements Recently Adopted In July 2025, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2025-05 Financial InstrumentsCredit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets , which simplifies the estimation of credit losses on current accounts receivable and contract assets arising from transactions accounted for under ASC 606. The update was adopted and applied to assets within its scope in this Quarterly Report on Form 10-Q on a prospective basis. The standard did not impact our financial position, results of operations or cash flows. New Accounting Pronouncements Not Yet Adopted In November 2024, the FASB issued ASU 2024-03 Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses . The new guidance is intended to provide investors with more disaggregated information about certain line items presented in the consolidated statement of income. The update is effective for our annual report on Form 10-K for fiscal year 2027, with early adoption permitted. The new disclosures are required to be applied prospectively with an option for retrospective application. The standard will not impact our financial position, results of operations or cash flows. In May 2025, the FASB issued ASU 2025-03 Business Combinations (Topic 805) and Consolidation (Topic …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

PENSION AND OTHER RETIREMENT PLANS The following table presents the components of the net periodic pension cost for the periods indicated. Three Months Ended March 29, 2026 March 30, 2025 (in millions) Interest cost $ 25 $ 25 Amortization 5 5 Service cost 3 3 Expected return on plan assets (29) (26) Net periodic pension cost $ 3 $ 7 The components of net periodic pension cost other than service cost, which is included in operating profit, are included in non-operating losses in the condensed consolidated statements of income.

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RESTRUCTURING AND OPTIMIZATION Springfield, Massachusetts Facility On February 6, 2026, we announced our decision to exit our leased Springfield, Massachusetts dry sausage production facility by the end of August 2026 and consolidate production across our network, including at our recently acquired Nashville, Tennessee facility. The decision to close the Springfield facility is part of the Companys ongoing efforts to optimize its manufacturing footprint and improve operational and cost efficiencies. In the first quarter of 2026, we recognized $2 million in accelerated depreciation and employee termination benefits in cost of sales in the condensed consolidated statement of income. We expect to recognize additional charges associated with the exit of the facility totaling approximately $8 million over the second and third quarters of fiscal year 2026. Administrative Process Optimization In the fourth quarter of 2025, we commenced an initiative to modernize and optimize certain of our administrative and transactional processes. As part of this initiative, we will employ new and advanced technologies, including artificial intelligence and robotic process automation, that will allow us to drive significant improvements in operational efficiency and productivity. As a result of this initiative, we recognized $1 million in restructuring costs in selling, general and administrative expenses (SG&A) in the condensed consolidated statement of income in the first quarter of fiscal y …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

REPORTABLE SEGMENTS Our reportable segments are determined on the basis of our organizational structure and information that is regularly reviewed by our Chief Operating Decision Maker (CODM) for the purpose of assessing the performance of the operating segments of our business and making operating and resource allocation decisions. Our CODM is our Chief Executive Officer. Our CODM reviews assets at a consolidated level; not by reportable segment. Therefore, we do not disclose assets by reportable segment. Additionally, while segments are managed separately, our manufacturing and distribution activities are often integrated to optimize cost efficiencies, resulting in jointly utilized assets, including fixed assets, that are not tracked at the segment level. Depreciation and amortization associated with these shared assets are generally allocated to reportable segments. The measure of segment profit reviewed by our CODM is operating profit. Our CODM uses operating profit to assess segment performance, compensate employees and allocate capital, personnel and other resources to each segment. We conduct our operations through three reportable segments: Packaged Meats, Fresh Pork and Hog Production. We also conduct operations through two other operating segments, Mexico and Bioscience, which are aggregated and reported as Other. Packaged Meats The Packaged Meats segment consists of our U.S. operations that process fresh meat into a wide variety of packaged meats products, includin …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Smithfield Foods, Inc., together with its subsidiaries (Smithfield, the Company, we, us or our) produces a wide variety of fresh pork and packaged meats products primarily in the United States (U.S.) and markets them both domestically and internationally. We operate in a cyclical industry and our results are significantly affected by fluctuations in commodity prices for meat, livestock (primarily hogs) and grains. We are an indirect, majority-owned subsidiary of Hong Kong-based WH Group Limited (WH Group). These statements and notes should be read in conjunction with the audited consolidated financial statements and related notes included in our Annual Report on Form 10-K filed for the fiscal year ended December 28, 2025, which include a comprehensive description of our significant accounting policies and other information that is not included herein. Seasonality Sales, profitability and cash flow generation and use are impacted on a quarterly basis by the seasonal nature of our business. Our sales and profitability are generally higher in the fourth quarter due to the Thanksgiving and Christmas holidays. In addition, the timing of the Easter holiday can affect the comparability of our first and second quarters on both a quarter-to-quarter and year-over-year basis. We typically build inventories of certain products in anticipation of seasonal demand fluctuations, as periods of higher sales for hams occur during major holidays, while …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

EQUITY Initial Public Offering On January 29, 2025, we completed our initial public offering (IPO) of 26,086,958 shares of common stock, representing 7% of the total outstanding shares at the time, at a price of $20.00 per share. We issued 13,043,479 shares of common stock. 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. We received net proceeds from the IPO of $236 million after deducting underwriting discounts, commissions and fees. Stock-Based Compensation In connection with our IPO, we adopted the Smithfield Foods, Inc. Omnibus Incentive Plan, under which we may grant equity-based incentives to eligible employees, non-employees and consultants. As of March 29, 2026, there were 6,114,892 shares available for grant under this plan. In the first quarter of 2025, we granted to certain of our directors and employees and certain directors and employees of WH Group options to purchase 9,822,467 shares of common stock at $20.00 per share and 1,527,000 restricted stock units (RSUs). The stock options and substantially all RSUs vest over a five-year period, with 20% vesting each year. In the first quarter of 2026, we granted options to certain of our employees to purchase 2,128,291 shares of our common stock at $24.25 per share and 799,212 RSUs. The stock options and RSUs vest over a three-year period, with one third vesting immediately on the gr …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing