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    SEC Form 10-Q filed by Smithfield Foods Inc.

    4/29/25 8:08:16 AM ET
    $SFD
    Meat/Poultry/Fish
    Consumer Staples
    Get the next $SFD alert in real time by email
    smf-20250330
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    UNITED STATES
    SECURITIES AND EXCHANGE COMMISSION
    WASHINGTON, DC 20549
    FORM 10-Q
    (Mark One)
    ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
    For the quarterly period ended March 30, 2025
    OR
    ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
    For the transition period from __________________ to __________________
    Commission file number: 001-15321
    image (34).jpg
    SMITHFIELD FOODS, INC.
    (Exact name of registrant as specified in its charter)
    Virginia52-0845861
    (State or other jurisdiction of incorporation or organization)(IRS Employer Identification No.)
    200 Commerce Street
    Smithfield, Virginia 23430
    (Address of principal executive offices, including zip code)
    Registrant’s telephone number, including area code: (757) 365-3000
    Securities registered pursuant to Section 12(b) of the Act
    Title of each classTrading Symbol(s)Name of each exchange on which registered
    Common stock, no par valueSFDThe Nasdaq Global Select Market
    Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
    Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
    Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b‑2 of the Exchange Act.
    Large accelerated filer☐Accelerated filer☐
    Non-accelerated filer☒Smaller reporting company☐
    Emerging growth company☐
    If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
    Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b‑2 of the Exchange Act). Yes ☐ No ☒
    As of April 28, 2025, the registrant had 393,112,711 shares of common stock, no par value, outstanding.




    TABLE OF CONTENTS
    Page
    Part I
    Item 1Financial Statements and Supplementary Data
    2
    Item 2Management’s Discussion and Analysis of Financial Condition and Results of Operations
    28
    Item 3Quantitative and Qualitative Disclosures About Market Risk
    47
    Item 4Controls and Procedures
    48
    Part II
    Item 1Legal Proceedings
    49
    Item 1ARisk Factors
    49
    Item 2Unregistered Sales of Equity Securities and Use of Proceeds
    49
    Item 3Defaults Upon Senior Securities
    49
    Item 4Mine Safety Disclosures
    49
    Item 5Other Information
    49
    Item 6Exhibits
    49
    1


    PART I. FINANCIAL INFORMATION
    ITEM 1. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
    SMITHFIELD FOODS, INC. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED STATEMENTS OF INCOME
    (in millions, except for share and per share data, and unaudited)
    Three Months Ended
    March 30,
    2025
    March 31,
    2024
    Sales$3,771 $3,444 
    Cost of sales3,262 3,083 
    Gross profit510 362 
    Selling, general and administrative expenses197 199 
    Operating gains(9)(1)
    Operating profit321 163 
    Interest expense, net11 16 
    Non-operating (gains) losses6 (4)
    Income from continuing operations before income taxes304 152 
    Income tax expense72 39 
    Loss from equity method investments5 1 
    Net income from continuing operations227 112 
    Net income (loss) from continuing operations attributable to noncontrolling interests 4 (2)
    Net income from continuing operations attributable to Smithfield224 114 
    Income from discontinued operations before income taxes— 54 
    Income tax expense from discontinued operations— 12 
    Net income from discontinued operations— 42 
    Net income from discontinued operations attributable to noncontrolling interests — — 
    Net income from discontinued operations attributable to Smithfield— 42 
    Net income227 154 
    Net income (loss) attributable to noncontrolling interests4 (1)
    Net income attributable to Smithfield$224 $156 
    Net income per common share attributable to Smithfield:
    Basic and diluted:
    Continuing operations$0.57 $0.30 
    Discontinued operations— 0.11 
    Total$0.57 $0.41 
    Weighted-average shares outstanding:
    Basic388,812,663 380,069,232 
    Diluted389,064,212 380,069,232 
    See Notes to Condensed Consolidated Financial Statements
    2


    SMITHFIELD FOODS, INC. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
    (in millions and unaudited)
    Three Months Ended
    March 30,
    2025
    March 31,
    2024
    Net income$227 $154 
    Other comprehensive income (loss), net of tax:
    Foreign currency translation(1)(5)
    Pension accounting3 3 
    Hedge accounting41 (43)
    Total other comprehensive income (loss)43 (45)
    Comprehensive income270 109 
    Comprehensive income attributable to noncontrolling interests3 4 
    Comprehensive income attributable to Smithfield$267 $105 
    See Notes to Condensed Consolidated Financial Statements
    3


    SMITHFIELD FOODS, INC. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (in millions, except share data, and unaudited)
    March 30,
    2025
    December 29,
    2024
    ASSETS
    Current assets:
    Cash and cash equivalents$928 $943 
    Accounts receivable, net759 558 
    Inventories, net2,385 2,412 
    Prepaid expenses and other current assets262 290 
    Total current assets4,334 4,202 
    Property, plant and equipment, net3,153 3,176 
    Goodwill1,613 1,613 
    Intangible assets, net1,264 1,266 
    Operating lease assets327 335 
    Equity method investments197 202 
    Other assets258 260 
    Total assets$11,146 $11,054 
    LIABILITIES AND EQUITY
    Current liabilities:
    Accounts payable447 777 
    Current portion of long-term debt and finance lease obligations3 3 
    Current portion of operating lease obligations55 56 
    Accrued expenses and other current liabilities889 871 
    Total current liabilities1,393 1,706 
    Long-term debt and finance lease obligations2,000 1,999 
    Long-term operating lease obligations277 286 
    Deferred income taxes, net523 518 
    Net long-term pension obligation277 279 
    Other liabilities207 208 
    Redeemable noncontrolling interests243 225 
    Commitments and contingencies (Note 18)
    Equity:
    Shareholders’ equity:
    Preferred stock, no par value; 100,000,000 shares authorized; no shares issued and outstanding
    — — 
    Common stock, no par value; 5,000,000,000 shares authorized; 393,112,711 shares issued and outstanding as of March 30, 2025 and 380,069,232 shares issued and outstanding as of December 29, 2024 
    — — 
    Additional paid-in capital3,325 3,102 
    Retained earnings3,308 3,184 
    Accumulated other comprehensive loss(408)(452)
    Total shareholders’ equity6,225 5,834 
    Total liabilities and equity$11,146 $11,054 
    See Notes to Condensed Consolidated Financial Statements
    4


    SMITHFIELD FOODS, INC. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (in millions and unaudited)
    Three Months Ended
    March 30,
    2025
    March 31,
    2024
    Cash flows from operating activities:
    Net income$227 $154 
    Less: Net income from discontinued operations— (42)
    Net income from continuing operations$227 $112 
    Adjustments to reconcile net income from continuing operations to net cash flows used in operating activities of continuing operations:
    Depreciation and amortization83 82 
    Changes in operating and other assets and liabilities, net(541)(360)
    Other64 (54)
    Net cash flows used in operating activities of continuing operations(166)(219)
    Cash flows from investing activities:
    Capital expenditures(79)(92)
    Net expenditures from breeding stock transactions(7)(25)
    Other1 (3)
    Net cash flows used in investing activities of continuing operations(85)(119)
    Cash flows from financing activities:  
    Net proceeds from issuance of common stock236 — 
    Principal payments on long-term debt and finance lease obligations— (19)
    Payment of dividends— (88)
    Other— (2)
    Net cash flows from (used in) financing activities of continuing operations236 (109)
    Effect of foreign exchange rate changes on cash from continuing operations— 2 
    Cash flows from discontinued operations
    Net cash flows from operating activities of discontinued operations— 43 
    Net cash flows used in investing activities of discontinued operations— (111)
    Net cash flows used in financing activities of discontinued operations— (4)
    Effect of foreign exchange rate changes on cash from discontinued operations(4)
    Net change in cash and cash equivalents of discontinued operations— (77)
    Net change in cash, cash equivalents and restricted cash(15)(522)
    Cash, cash equivalents and restricted cash at beginning of period (including discontinued operations)943 751 
    Cash, cash equivalents and restricted cash at end of period (including discontinued operations)928 229 
    Less: Cash, cash equivalents and restricted cash attributable to discontinued operations at end of period— (25)
    Cash, cash equivalents and restricted cash at end of period$928 $204 
        
    See Notes to Condensed Consolidated Financial Statements
    5


    SMITHFIELD FOODS, INC. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDER’S EQUITY
    (in millions and unaudited)
    Three Months Ended March 30, 2025
    Additional
    Paid-in
    Capital
    Retained
    Earnings
    Accumulated
    Other
    Comprehensive
    Loss
    Total
    Shareholders’
    Equity
    Balance, December 29, 2024$3,102 $3,184 $(452)$5,834 
    Dividend— (99)— (99)
    Net proceeds from issuance of common stock236 — — 236 
    Adjustment to redeemable noncontrolling interests(15)— — (15)
    Stock compensation expense2 — — 2 
    Comprehensive income:
    Net income attributable to Smithfield— 224 — 224 
    Other comprehensive income, net of tax— — 43 43 
    Balance, March 30, 2025$3,325 $3,308 0$(408)$6,225 

    Three Months Ended March 31, 2024
    Additional
    Paid-in
    Capital
    Retained
    Earnings
    Accumulated
    Other
    Comprehensive
    Loss
    Total
    Shareholders’
    Equity
    Balance, December 31, 2023$4,152 $3,588 $(500)$7,241 
    Dividend— (88)— (88)
    Adjustment to redeemable noncontrolling interests(11)— — (11)
    Other(1)— — (1)
    Comprehensive income:
    Net income attributable to Smithfield— 156 — 156 
    Other comprehensive loss, net of tax— — (51)(51)
    Balance, March 31, 2024$4,140 $3,656 0$(550)$7,246 
    See Notes to Condensed Consolidated Financial Statements
    6


    SMITHFIELD FOODS, INC. AND SUBSIDIARIES
    NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
    (unaudited)
    NOTE 1: 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 unaudited condensed 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 condensed 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.
    These statements and notes should be read in conjunction with the audited consolidated financial statements and related notes for the year ended December 29, 2024, which include a comprehensive description of our significant accounting policies and other information that is not included in our interim condensed consolidated financial statements.
    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 first quarter of 2025 and the three months ended March 30, 2025 are to the 13-week period ended March 30, 2025. All references to the first quarter of 2024 and the three months ended March 31, 2024 are to the 13-week period ended March 31, 2024.
    Principles of Consolidation
    The condensed consolidated financial statements include the accounts of all wholly owned subsidiaries, as well as majority-owned subsidiaries and other entities for which we have a controlling financial interest. We evaluate contractual, equity and other variable interests in entities that may be deemed variable interest entities (“VIE”). We consolidate a VIE if we determine that we are the VIE’s primary beneficiary. A VIE’s primary beneficiary has both (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (2) the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. All intercompany transactions and accounts have been eliminated.
    Stock-Based Compensation
    In connection with our initial public offering (“IPO”), we adopted an incentive plan, under which eligible individuals may be granted equity-based incentive awards, including stock options and restricted stock units (“RSUs”), among others. We estimate the fair value of stock options on the grant date using the Black-Scholes option pricing model. RSUs are measured at fair value as if they were vested and issued on the grant date. We recognize stock-based compensation expense for stock options and RSUs granted to our employees using the straight-line method over the requisite service period. We recognize forfeitures as they occur. Stock-based compensation expense is included in selling, general and administrative expenses (“SG&A”) in the condensed consolidated statements of income.
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    Seasonality
    Sales and profitability as well as cash flow generation and use are impacted on a quarterly basis by the seasonal nature of our business. Generally, our sales and profitability are higher in the fourth quarter due to the Thanksgiving and Christmas holidays. In addition, the timing of the Easter holiday can impact the comparability of our first and second quarters both on a quarter-to-quarter and year-over-year basis. Our cash use is highest in the first quarter due to working capital needs related to payments to certain suppliers that are typically deferred in the fourth quarter.
    Recently Issued Accounting Pronouncements
    New Accounting Pronouncements Not Yet Adopted
    In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 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 taxes. The update is effective for our annual report on Form 10-K for fiscal year 2025, with early adoption permitted. The standard will not impact our financial position, results of operations or cash flows.
    In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. The new guidance is intended to provide investors more disaggregated information about certain line items presented in the consolidated statement of income. The update is effective for fiscal year 2027, with early adoption permitted. The new disclosures are required to be applied prospectively with the option for retrospective application. The standard will not impact our financial position, results of operations or cash flows but may have an impact on the presentation of certain items.
    NOTE 2: 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 making operating and resource allocation decisions and assessing the performance of the operating segments of our business. 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.
    The measure of segment profit reviewed by our CODM is operating profit, which represents the operating results of our operating segments with the exception of certain gains, losses and other expenses which are not allocated to our segments. Our CODM uses operating profit to assess segment performance, compensate employees and allocate capital, personnel and other resources to each segment. We recently removed income from equity method investments from the measure of segment profit reviewed by our CODM. Accordingly, the historical segment results presented herein have been retrospectively adjusted to remove income from equity method investments.
    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 dogs, deli and lunch meats, dry sausage products (such as pepperoni and genoa salami), ham products, ready-to-eat products and prepared foods (such as pre-cooked entrees, bacon and sausage). Approximately 80% of the Packaged Meats segment’s raw materials are sourced from our Fresh Pork segment. We market our domestic packaged meats products under a strategic set of core brands, which include: Smithfield, Eckrich, Nathan’s Famous, Farmland, Armour, Farmer John, Kretschmar, Krakus, John Morrell, Cook’s, Gwaltney, Carando, Margherita, Curly’s and Smithfield Culinary. We also sell a sizeable portion of our packaged
    8


    meats products as private label products. The majority of the Packaged Meats segment’s products are sold to retail and foodservice customers in the U.S.
    Fresh Pork
    The Fresh Pork segment consists of our U.S. operations that process live hogs into a wide variety of primal, sub-primal and offal products, such as bellies, butts, hams, loins, picnics and ribs. In the first quarter of 2025, the Fresh Pork segment sourced approximately 40% of its raw materials from our Hog Production segment, compared to approximately 50% in the first quarter of 2024, with the remainder from third-party farmers with whom we partner across the U.S. Approximately one-third of our fresh pork products, including the majority of hams, bellies and trimmings, is transferred to our Packaged Meats segment. Externally, we sell our fresh pork products to domestic retail, foodservice and industrial customers, as well as to export markets, including, among others, China, Mexico, Japan, South Korea and Canada.
    Hog Production
    The Hog Production segment consists of our hog production operations in the U.S., which produce and raise our hogs on numerous company-owned farms and farms that are owned and operated by third-party contract farmers. Nearly all of the hogs produced by this segment are processed by our Fresh Pork segment. The Hog Production segment also sells grains and feed to external customers.
    The following table provides certain financial information by reportable segment with a reconciliation to the consolidated totals.
    Three Months Ended March 30, 2025
    Packaged MeatsFresh PorkHog Production
    Other (1)
    Corporate (2)
    Unallocated (3)
    Intersegment Consolidated
    (in millions)
    Sales2,024 2,033 932 104 — — (1,322)$3,771 
    Cost of sales1,665 1,906 919 84 — 9 (1,322)3,262 
    Selling, general and administrative expenses93 46 12 6 29 12 — 197 
    Operating gains— — — — — (9)— (9)
    Operating profit (loss)266 82 1 14 (29)(12)— 321 
    Interest expense, net11 11 
    Non-operating losses6 6 
    Income from continuing operations before income taxes304 
    Other segment data:
    Depreciation and amortization32 27 15 6 — 2 — 83 
    Capital expenditures40 24 11 2 3 — — 79 
    9




    Three Months Ended March 31, 2024
    Packaged MeatsFresh PorkHog Production
    Other (1)
    Corporate (2)
    Unallocated (3)
    Intersegment Consolidated
    (in millions)
    Sales $1,999 $1,938 $706 $114 $— $— $(1,314)$3,444 
    Cost of sales1,621 1,782 868 116 — 10 (1,314)3,083 
    Selling, general and administrative expenses92 47 12 7 32 9 — 199 
    Operating gains— — — — — (1)— (1)
    Operating profit (loss)286 110 (174)(8)(32)(18)— 163 
    Interest expense, net16 16 
    Non-operating gains (4)(4)
    Income from continuing operations before income taxes 152 
    Other segment data:
    Depreciation and amortization 30 28 16 8 — — — 82 
    Capital expenditures 41 29 11 3 8 — — 92 
    ________________
    (1)Includes our Mexico and Bioscience operations. Our Mexico operations include the raising of hogs and production of pork products that are sold primarily to customers in Mexico. Our Bioscience operations use raw materials from hogs that we harvest to manufacture heparin products, including an active pharmaceutical ingredient that mitigates the risk of blood clots.
    (2)Represents general corporate expenses for management and administration of the business.
    (3)Includes certain items that we do not allocate to our segments.

    The following table disaggregates our sales to customers by reportable segment and by major distribution channel.
    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 Pork483 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 
    Three Months Ended March 31, 2024
    Retail (1)
    Foodservice (2)
    Exports (3)
    Industrial (4)
    Other / Unallocated (5)
    Total External Sales (6)
    IntersegmentConsolidated
    (in millions)
    Packaged Meats$1,318 $553 $31 $95 $2 $1,999 $— $1,999 
    Fresh Pork471 53 423 255 2 1,203 735 1,938 
    Hog Production— — — — 128 128 578 706 
    Other (7)
    — — — — 114 114 — 114 
    Intersegment— — — — — — (1,314)(1,314)
    Total$1,789 $606 $454 $350 $245 $3,444 $— $3,444 
    ________________
    (1)Includes national and regional retailers in the U.S. such as grocery supermarket chains, independent grocers and club stores.
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    (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 production, including prepared meals, pharmaceutical production and pet food.
    (5)Includes sales of grain, oilseeds, feed, breeding stock and market hogs, among others, in addition to external sales from our Mexico and Bioscience operations.
    (6)Includes external sales from our Mexico operations of $99 million and $106 million in the three months ended March 30, 2025 and March 31, 2024, respectively. All other external sales are sourced from our U.S. operations.
    (7)Includes our Mexico and Bioscience operations.
    NOTE 3: DISCONTINUED OPERATIONS
    On August 26, 2024, we completed a carve-out and distribution of our European operations to WH Group. The European carve-out represents a strategic shift in our geographical footprint. Accordingly, where applicable, the historical results of operations, assets and liabilities, and cash flows of the European operations have been condensed into separate line items and presented in the condensed consolidated statements of income, the condensed consolidated balance sheets and the condensed consolidated statements of cash flows as discontinued operations.
    The following table presents the major components of net income from discontinued operations included in the condensed consolidated statements of income.
    Three Months Ended
    March 30,
    2025
    March 31,
    2024
    (in millions)
    Sales$— $810 
    Cost of sales— 713 
    Gross profit — 97 
    Selling, general and administrative expenses— 50 
    Operating gains
    — (9)
    Operating profit— 55 
    Non-operating losses— 1 
    Income from discontinued operations before income taxes — 54 
    Income tax on discontinued operations— 12 
    Net income from discontinued operations$— $42 
    Acquisition within our Discontinued Operations
    Prior to the carve-out and distribution of our European operations, we completed the following acquisition, which is included in discontinued operations.
    Argal
    On March 28, 2024, our former European operations purchased a 50.1% stake in Argal Alimentacíon, S.A. (“Argal”), a Spanish producer of packaged meats products with approximately 1,480 employees, for €91 million ($98 million), subject to post-closing adjustments. The amount paid at closing was €82 million ($88 million) with the remaining balance due upon finalization of the purchase price. In August 2024, an additional €8 million ($9 million) was paid, which resulted in a final purchase price of €90 million ($97 million).


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    NOTE 4: ACQUISITION AND DISPOSITION
    Acquisition
    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, deli, charcuterie and other dry sausage products. The total cost of the asset acquisition was allocated based on the relative fair value of the assets acquired. The allocated fair values of the assets acquired are as follows: equipment valued at $17 million, buildings valued at $11 million, inventory valued at $5 million and land valued at $5 million.
    Disposition
    On August 30, 2024, we closed our Altoona, Iowa ham boning facility and consolidated production volume into other locations to improve manufacturing efficiencies. Costs associated with closing the plant primarily include operating lease assets and equipment that we disposed of prior to the expiration of the lease term or end of the asset’s useful life. The charges associated with the closing were not material. Altoona was accounted for in the Fresh Pork segment.
    NOTE 5: OPERATING GAINS AND NON-OPERATING (GAINS) LOSSES
    The following table provides details of operating gains and non-operating (gains) losses.
    Three Months Ended
    March 30, 2025March 31, 2024
    (in millions)
    Operating gains:
    Insurance recoveries (1)
    $(6)$— 
    Gain on disposal of assets(2)— 
    Other operating gains(1)(1)
    Total operating gains
    $(9)$(1)
    Non-operating (gains) losses:
    Net pension and postretirement benefits cost (2)
    $4 $2 
    (Gain) loss on nonqualified retirement plan assets2 (6)
    Total non-operating (gains) losses
    $6 $(4)
    ________________
    (1)Represents a gain from an insurance recovery in connection with a fire at our Tar Heel, North Carolina rendering facility that occurred in 2021.
    (2)Includes the components of net pension and postretirement benefits cost other than service cost, which is included in operating profit. These components consist of interest cost, expected return on plan assets, amortization of actuarial gains/losses and prior service costs/credits, and curtailment gains.
    NOTE 6: RESTRUCTURING
    Hog Production Reform
    Beginning in 2023, we undertook a number of actions to optimize the size of our Hog Production segment’s operations and improve its cost structure, including ceasing certain farm operations, terminating certain agreements with underperforming contract farmers and reducing the size of our hog production business (“Hog Production Reform”).
    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
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    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. Murphy Family Farms is now a hog supplier to us and will supply approximately 3.2 million hogs annually. We will supply animal feed and other supplies and provide certain support services to Murphy Family Farms.
    On February 24, 2025, we became a member of a North Carolina-based company, VisionAg Hog Production, LLC (“VisionAg”), by contributing $450,000 in cash in exchange for a 9% minority interest. We additionally sold approximately 28,000 sows and the associated commercial hog inventories located on certain company-owned and contract farms in North Carolina to VisionAg. VisionAg is now a hog supplier to us and will supply approximately 600,000 hogs annually. In addition, we will supply animal feed and provide certain support services to VisionAg.
    In the first quarters of 2025 and 2024, we recognized charges totaling $1 million and $10 million, respectively, associated with Hog Production Reform in cost of sales in the condensed consolidated statements of income. The following table details the charges by major type of cost.
    Three Months EndedCumulative
    March 30, 2025March 31, 2024March 30, 2025
    (in millions)
    Accelerated depreciation$1 $— $172 
    Contract termination costs— 8 57 
    Employee termination benefits— 2 32 
    Loss on asset disposals— — 9 
    Other exit costs— — 110 
    Total $1 $10 $379 
    Workforce Reduction
    In the first quarter of 2025, we implemented a reduction in workforce initiative to streamline our operations and reduce operating expenses. We eliminated certain corporate and plant positions and recognized employee termination benefit costs totaling $9 million in the condensed consolidated statement of income in the first quarter of 2025 with $6 million classified in SG&A and $2 million classified in cost of sales.
    NOTE 7: ACCOUNTS RECEIVABLE
    Accounts receivable, net is comprised of both receivables from contracts with customers and other receivables. Our receivables from contracts with customers were $680 million and $494 million as of March 30, 2025 and December 29, 2024, respectively.
    We monitor the credit risk associated with our accounts receivable and establish an allowance for credit losses expected to be incurred over the life of the receivable, which is recorded net of this allowance. We calculate this allowance based on our history of write-offs, future economic conditions, level of past due accounts, the financial health of our customers and historical experience. Our allowance for credit losses was not material for the periods presented.

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    NOTE 8: INVENTORIES
    Inventories, net consist of the following:
    March 30,
    2025
    December 29,
    2024
    (in millions)
    Fresh and packaged meats$1,164 $1,006 
    Livestock787 949 
    Grains182 208 
    Maintenance parts117 115 
    Manufacturing supplies113 115 
    Other21 19 
    Inventories, net
    $2,385 $2,412 
    NOTE 9: DERIVATIVE FINANCIAL INSTRUMENTS 
    Our pork production operations use various raw materials, primarily live hogs, corn, soybean meal and wheat, which are actively traded on commodity exchanges. We also use fuel and other energy commodities in our operations. We hedge these commodities when we determine conditions are appropriate to mitigate price risk. While this hedging may limit our ability to participate in gains from favorable commodity fluctuations, it also reduces the risk of loss from adverse changes in raw material prices. We attempt to closely match the commodity contract terms with the hedged item. We also periodically enter into interest rate swaps to hedge exposure to changes in interest rates on certain financial instruments and foreign exchange forward contracts to hedge certain exposures to fluctuating foreign currency rates.
    Changes in commodity prices could have a significant impact on cash deposit requirements under our broker and counterparty agreements. Additionally, certain of our derivative contracts contain credit risk-related contingent features, which would require us to post additional cash collateral to cover net losses on open derivative instruments if our credit rating were sufficiently downgraded. As of March 30, 2025, the net liability position of our open derivative instruments that are subject to credit risk-related contingent features was not material.
    The size and mix of our derivative portfolio vary from time to time based upon our analysis of current and future market conditions. The following table presents the fair values of our open derivative financial instruments on a gross basis.
    AssetsLiabilities
    March 30,
    2025
    December 29,
    2024
    March 30,
    2025
    December 29,
    2024
    (in millions)
    Derivatives using the “hedge accounting” method:
    Commodity contracts$34 $13 $7 $37 
    Derivatives using the “mark-to-market” method:
    Commodity contracts13 2 4 7 
    Total fair value of derivative instruments$47 $15 $11 $44 
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    The following tables reconcile the gross amounts of derivative assets and liabilities to the net amounts presented in our consolidated balance sheets and the related effects of cash collateral under netting arrangements that provide a legal right of offset of assets and liabilities.
    March 30, 2025
    Gross Amount of Derivative Assets/ LiabilitiesNetting of Derivative Assets/ LiabilitiesNet Derivative Assets/LiabilitiesNetting of Derivative and Cash Collateral
    Net Amount Presented in the Consolidated Balance Sheet (1)
    (in millions)
    Assets:
    Commodities$47 $(9)$38 $(1)$37 
    Liabilities:
    Commodities11 (9)3 — 3 
    ________________
    (1)Net derivative assets are recorded in prepaid expenses and other current assets. Net derivative liabilities are recorded in accrued expenses and other current liabilities. Cash collateral balances were not material.

    December 29, 2024
    Gross Amount of Derivative Assets/ LiabilitiesNetting of Derivative Assets/ LiabilitiesNet Derivative Assets/LiabilitiesNetting of Derivative and Cash Collateral
    Net Amount Presented in the Consolidated Balance Sheet (1)
    (in millions)
    Assets:
    Commodities$15 $(13)$2 $37 $39 
    Liabilities:
    Commodities44 (13)31 (23)8 
    ________________
    (1)Net derivative assets are recorded in prepaid expenses and other current assets. Net derivative liabilities are recorded in accrued expenses and other current liabilities. These balances include $60 million of cash collateral paid to and held by one of our brokers, $37 million of which represents the initial margin and exceeded the related open derivative liability position.
    Hedge Accounting Method 
    Cash Flow Hedges 
    We enter into derivative instruments, such as futures, swaps and options contracts, to manage our exposure to the variability in expected future cash flows attributable to commodity price risk associated with the forecasted sale of fresh pork and the forecasted purchase of grains, hogs, and energy. In addition, we enter into interest rate swaps to manage our exposure to changes in interest rates associated with our variable interest rate debt and the forecasted issuance of fixed rate debt. Lastly, we enter into foreign exchange contracts to manage our exposure to the variability in expected future cash flows attributable to changes in foreign exchange rates associated with the forecasted purchase or sale of assets denominated in foreign currencies. As of March 30, 2025, substantially all of our commodity-related cash flow hedges were for transactions forecasted through December 2025. 
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    As of March 30, 2025, the notional volumes associated with open derivative instruments designated in cash flow hedging relationships were as follows:
    VolumeMetric
    Lean hogs722,379,000 Pounds
    Corn37,180,000 Bushels
    Soybean meal615,000 Tons
    Natural Gas
    4,880,000 Million BTU
         Diesel 6,804,000 Gallons

    The following table presents the effects on our condensed consolidated financial statements of pre-tax gains and losses on derivative instruments designated in cash flow hedging relationships for the periods indicated:
    Gains (Losses) Recognized in Other Comprehensive Income (Loss) on DerivativeGains (Losses) Reclassified from Accumulated Other Comprehensive Loss into Earnings
    Three Months EndedThree Months Ended
    March 30,
    2025
    March 31,
    2024
    March 30,
    2025
    March 31,
    2024
    (in millions)
    Commodity contracts$45 $(61)$(10)$(3)

    The amounts associated with option contracts as of and for the three months ended March 30, 2025 were not material. In the three months ended March 31, 2024, we recognized $15 million in expenses for option premiums, which are excluded from the assessment of hedge effectiveness. As of March 31, 2024, accumulated other comprehensive income included $12 million of net gains associated with options for which the underlying hedged transactions had not yet impacted earnings. This amount represents the difference between the change in the fair value of the options and the amount of option premiums amortized through earnings.
    Deferred losses on closed derivative contracts included in accumulated other comprehensive loss as of March 30, 2025 were not material. We are unable to estimate the amount of deferred gains or losses related to open derivative contracts to be reclassified into earnings within the next twelve months as their values are subject to change. 
    Fair Value Hedges 
    We enter into derivative instruments (primarily futures contracts) that are designed to hedge changes in the fair value of firm commitments to buy grains and hogs. As of March 30, 2025, the notional volumes associated with open derivative instruments designated in fair value hedging relationships were as follows:
    VolumeMetric
    Lean hogs30,640,000 Pounds
    Corn3,635,000 Bushels
    Soybeans420,000 Bushels
    The carrying values of hedged firm commitments designated in fair value hedge relationships as of March 30, 2025 and December 29, 2024 were not material. When the underlying inventories are acquired, the hedge relationship is discontinued and the fair value hedge adjustment is reclassified to inventories. The amount of fair value hedge gains remaining in inventories for which hedge accounting has been discontinued was $1 million and $3 million as of March 30, 2025 and December 29, 2024, respectively.
    Mark-to-Market Method 
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    As of March 30, 2025, the notional volumes associated with open derivative instruments using the “mark-to-market” method were as follows:
    VolumeMetric
    Commodities:
    Lean hogs8,746,000 Pounds
    Corn19,322,000 Bushels
    Soybean meal70,000 Tons
    Soybeans2,995,000 Bushels
    Natural gas106,000 Million BTU
    Diesel756,000 Gallons
    Derivative Impact on the Consolidated Statements of Income
    The following table presents the effect of derivatives on the condensed consolidated statements of income for the periods indicated.
    Three Months Ended
    March 30,
    2025
    March 31,
    2024
    (in millions)
    Sales
    Cash flow hedging - commodity contracts$(9)$1 
    Mark to market - commodity contracts7 (13)
    Total derivative loss recognized sales(2)(12)
    Cost of Sales
    Cash flow hedging - commodity contracts(2)(4)
    Fair value hedging - commodity contracts
    Change in fair value of open derivatives2 (1)
    Change in fair value of related hedged items(1)1 
    Gain on closed derivatives (1)
    1 4 
    Mark to market - commodity contracts4 (5)
    Total derivative gain (loss) recognized in cost of sales4 (5)
    Selling, general and administrative expenses
    Mark to market - foreign exchange contracts
    — 1 
    Total derivative gain (loss)$2 $(16)
    ________________
    (1)Represents the amount of fair value hedge adjustment applied to the carrying amount of hedged assets that is recognized in cost of sales as the underlying hedged assets are relieved from inventories and charged to cost of sales.







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    NOTE 10: EQUITY METHOD INVESTMENTS
    Murphy Family Farms and VisionAg
    On December 27, 2024, we became a member of a North Carolina-based company, Murphy Family Farms, by contributing $3 million in cash in exchange for a 25% minority interest. We account for Murphy Family Farms under the equity method of accounting.
    On February 24, 2025, we became a member of a North Carolina-based company, VisionAg, by contributing $450,000 in cash in exchange for a 9% minority interest. We account for VisionAg under the equity method of accounting as we have the ability to exercise significant influence over operating and financial policies through our representation on its board of directors.
    See “Note 6: Restructuring” for more information on Murphy Family Farms and VisionAg.
    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.
    NOTE 11: DEBT
    Senior Unsecured Revolving Credit Facility
    In February 2025, we refinanced our $2,100 million senior unsecured revolving credit facility (“Senior Revolving Credit Facility”) extending the maturity date from May 21, 2027 to February 12, 2030, with the option to extend the maturity date for up to two one-year periods, subject to obtaining the lenders’ consent and satisfaction of certain other conditions. The Senior Revolving Credit Facility capacity remains at $2,100 million. As part of the new agreement, there are no longer any subsidiary guarantors under the Senior Revolving Credit Facility which also released the subsidiary guarantors from our Senior Unsecured Notes. The Senior Revolving Credit Facility bears interest at the Secured Overnight Financing Rate plus a margin ranging from 0.875% to 1.50% per annum, or, at our election, at a base rate plus a margin ranging from 0.00% to 0.50% per annum, in each case depending on our senior unsecured debt ratings. The Senior Revolving Credit Facility also contains financial maintenance covenants requiring us to maintain a maximum total consolidated leverage ratio (ratio of consolidated funded debt to consolidated capitalization, each as defined in the Senior Revolving Credit Facility) of 0.50 to 1.00 (which we may elect to increase to 0.55 to 1.00 with respect to any fiscal quarter in which a material acquisition is consummated and the immediately following three consecutive fiscal quarters, subject to certain restrictions) and a minimum interest coverage ratio (“ratio of earnings before interest, taxes, depreciation and amortization (“EBITDA”) to consolidated interest expense, each as defined in the Senior Revolving Credit Facility”) of 3.50 to 1.00.
    Our Senior Revolving Credit Facility contains customary covenants, including, but not limited to, restrictions on our ability and that of our subsidiaries to merge and consolidate with other companies, incur indebtedness, grant liens or security interests on assets subject to their security interest, make acquisitions, loans, advances or investments, pay dividends, sell or otherwise transfer assets, optionally prepay or modify terms of any junior indebtedness or enter into transactions with affiliates, each subject to certain exceptions as set forth therein. We are currently in compliance with the covenants under our Senior Revolving Credit Facility.
    Accounts Receivable Securitization Facility
    We maintain a $225 million accounts receivable securitization facility (“Securitization Facility”), which matures in November 2027. As part of the Securitization Facility, certain accounts receivable of our major domestic meat processing subsidiaries are sold to a wholly owned “bankruptcy remote” special purpose vehicle (“SPV”). The SPV pledges all such accounts receivable not otherwise sold pursuant to the Monetization Facility (as defined below) as security for loans made, and letters of credit issued, by participating lenders under the Securitization Facility. The SPV is included in our condensed consolidated financial statements and therefore the accounts receivable owned by
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    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 insolvent. As of March 30, 2025, the SPV held $432 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 March 30, 2025, we had $22 million in letters of credit issued under the Securitization Facility. None of the letters of credit were drawn upon.
    Monetization Facility
    In addition to the Securitization Facility, we maintain an uncommitted $250 million accounts receivable monetization facility (“Monetization Facility”). At Smithfield’s election and subject to the purchasing banks’ approval, certain accounts receivable may be sold by the SPV to purchasing banks, so long as the uncollected outstanding amount of accounts receivable sold pursuant to the Monetization Facility does not exceed $250 million in the aggregate at any time, among other limitations. In the event of a sale, the purchasing banks assume all credit risk related to the receivables while we maintain risk associated with customer disputes. We account for the sale of receivables to a purchasing bank by derecognizing the receivables from our condensed consolidated balance sheet upon transfer of control to the purchasing bank, and recognizing a discount on the sale in SG&A in the condensed consolidated statement of income. The proceeds from the sale of receivables are included in net cash flows from operating activities in the condensed consolidated statement of cash flows. On behalf of the purchasing banks, we continue to service all receivables sold under the Monetization Facility. As of March 30, 2025, the uncollected balance of receivables that had been sold to purchasing banks was $240 million. We had no servicing asset or liability outstanding as of March 30, 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 $785 million and $821 million of cash collections from customers in the revolving sale of accounts receivable to purchasing banks in the three months ended March 30, 2025 and March 31, 2024, respectively. We recognized charges totaling $3 million and $3 million in the first quarters 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.
    NOTE 12: GUARANTEES
    Smithfield and certain other joint venture partners in Monarch joint and severally guarantee Monarch’s debt, interest and fees. As of March 30, 2025, the maximum amount of loans that could be outstanding under Monarch’s debt agreements was $61 million and the loans mature in June 2025. Monarch’s outstanding debt was $56 million as of March 30, 2025.
    The guarantee involves elements of performance and credit risk and is not included in the condensed consolidated balance sheets. We could become liable in connection with Monarch’s obligation depending on the ability of Monarch to perform on its obligation. If we consider it probable that we will become responsible for the obligation, we would record the liability on our condensed consolidated balance sheet.
    NOTE 13: 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 30, 2025March 31, 2024
    (in millions)
    Interest cost$25 $25 
    Amortization5 5 
    Service cost3 3 
    Expected return on plan assets(26)(28)
    Net periodic pension cost$7 $5 

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    The components of net periodic pension cost other than service cost, which is included in operating profit, are included in non-operating (gains) losses in the condensed consolidated statements of income.
    NOTE 14: REDEEMABLE NONCONTROLLING INTERESTS 
    Certain noncontrolling interest holders have the right to exercise a put option that would obligate us to redeem a portion or all of their interest. These noncontrolling interests are classified as redeemable noncontrolling interests outside of equity on our condensed consolidated balance sheets. At the end of each period we adjust the value of redeemable noncontrolling interests, if necessary, to the redemption value (as defined in the subsidiary’s operating agreement) through additional paid-in capital. The following table presents the changes in redeemable noncontrolling interests for our continuing operations for the periods presented.
    Three Months Ended
    March 30, 2025March 31, 2024
    (in millions)
    Beginning balance$225 $246 
    Attribution of net income (loss)4 (2)
    Attribution of comprehensive income (loss)(1)5 
    Adjustment to redemption value (1)
    15 11 
    Ending balance$243 $260 
    _______________
    (1)See “Note 17: Fair Value Measurements” for a discussion of the assessment of redemption value.

    NOTE 15: EQUITY 
    Stock Split
    On January 17, 2025, the Company’s 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 Company’s 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 initial public offering (“IPO”) of 26,086,958 shares of common stock, which represents 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 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 that option and purchased 2,506,936 additional shares of common stock from our existing shareholder. We received net proceeds from the IPO of $236 million after deducting underwriting discounts, commissions and fees.
    Stock-Based Compensation
    In connection with the IPO, we granted to certain of our directors and employees and certain directors and employees of WH Group: (1) options to purchase 9,822,467 shares with an exercise price equal to the IPO price of $20.00 per share option and (2) 1,527,000 RSUs. The options and substantially all RSUs vest over a five year period, with 20% vesting each year. We recognized compensation expense totaling $2 million associated with these equity instruments in the first quarter of 2025. Unrecognized compensation expense totaled $45 million as of March 30, 2025, which is expected to be recognized on a straight-line basis over the remaining vesting period of 4.8
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    years. No compensation expense was recognized for stock options and RSUs granted to directors and employees of WH Group. Such awards will be accounted for as a dividend upon issuance of the shares based on the grant-date fair value.
    Accumulated Other Comprehensive Loss
    The following tables present the beginning and ending balances of accumulated other comprehensive gain (loss) by component.
    Three Months Ended March 30, 2025
    Foreign Currency TranslationPension AccountingHedge AccountingAccumulated Other Comprehensive Loss
    (in millions)
    Balance, December 30, 2024$(8)$(418)$(26)$(452)
    Other comprehensive loss, net of tax(1)3 41 43 
    Balance, March 30, 2025$(9)$(414)$15 $(408)
    Three Months Ended March 31, 2024
    Foreign Currency TranslationPension AccountingHedge AccountingAccumulated Other Comprehensive Loss
    (in millions)
    Balance, December 31, 2023$(134)$(373)$8 $(500)
    Other comprehensive loss, net of tax(11)3 (43)(51)
    Balance, March 31, 2024$(144)$(370)$(36)$(550)
    Other Comprehensive Income (Loss)
    The following table presents the details of other comprehensive income (loss).
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    Three Months Ended
    March 30, 2025March 31, 2024
    Before TaxTaxAfter TaxBefore TaxTaxAfter Tax
    (in millions)
    Continuing operations:
    Foreign currency translation:
    Translation gains (losses) (1)
    $(1)$— $(1)$15 $— $15 
    Retirement benefits:
    Amortization of actuarial losses and prior service credits reclassified to non-operating (gains) losses
    4 (1)3 4 (1)3 
    Derivatives:
    Gains (losses) arising during the period45 (11)33 (61)16 (45)
    (Gains) losses reclassified to sales9 (2)6 (1)— (1)
    Losses reclassified to cost of sales2 — 1 4 (1)3 
    Total other comprehensive income (loss) from continuing operations$58 $(15)$43 $(38)$14 $(24)
    Discontinued operations:
    Foreign currency translation:
    Translation losses (1)
    — — — (21)— (21)
    Total other comprehensive loss from discontinued operations$— $— $— $(21)$— $(21)
    Total other comprehensive income (loss)
    $58 $(15)$43 $(59)$14 $(45)
    Other comprehensive income attributable to noncontrolling interest— — — 5 — 5 
    Other comprehensive income (loss) attributable to Smithfield$59 $(15)$43 $(64)$14 $(51)
    ________________
    (1)We consider the earnings in our non-U.S. subsidiaries to be indefinitely reinvested, and accordingly, record no deferred income taxes on such amounts. The three months ended March 31, 2024 included $5 million of translation gains attributable to noncontrolling interests, which are included in redeemable noncontrolling interests on the condensed consolidated balance sheet.

    NOTE 16: EARNINGS PER SHARE
    The computation of basic earnings per share (“EPS”) is based on the weighted-average shares of common stock outstanding during the period. Diluted EPS adjusts basic EPS for the dilutive effect of stock options and RSUs. The incremental shares from stock options and RSUs are computed using the treasury stock method. There were no adjustments to the numerator in the computations of earnings per share for the periods presented. The following table provides the weighted-average shares used in the denominator for those computations.
    Three Months Ended
    March 30, 2025March 31, 2024
    Basic weighted-average shares outstanding388,812,663 380,069,232 
    Add: Dilutive effect of stock options and RSUs251,549 — 
    Diluted weighted-average shares outstanding (1)
    389,064,212 380,069,232 
    __________________
    (1)Approximately 5.3 million stock options were excluded from the computation of diluted weighted-average shares outstanding for the three months ended March 30, 2025 because their effect would have been anti-dilutive.
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    NOTE 17: 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 by the reporting entity.
    •Level 2—Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.
    •Level 3—Unobservable for an asset or liability. Unobservable inputs should only be used to the extent observable inputs are not available.
    We have classified assets and liabilities measured at fair value based on the lowest level of input that is significant to the fair value measurement. For the periods presented, we had no transfers of assets or liabilities between levels within the fair value hierarchy. The timing of any such transfers would be determined at the end of each reporting period.
    Assets and Liabilities Measured at Fair Value on a Recurring Basis 
    The following tables set forth, by level within the fair value hierarchy, our financial assets and liabilities, including assets held in a rabbi trust used to fund our non-qualified defined benefit plan, that were measured at fair value on a recurring basis.
    March 30, 2025December 29, 2024
    Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
    (in millions)
    Assets:
    Derivatives:
    Commodity contracts$38 $9 $— $47 $9 $6 $— $15 
    Mutual funds (1)
    69 — — 80 74 — — 84 
    Insurance contracts— 105 — 105 — 104 — 104 
    Total$108 $114 $— $232 $83 $110 $— $202 
    Liabilities:
    Derivatives:
    Commodity contracts5 6 — 11 32 12 — 44 
    Total$5 $6 $— $11 $32 $12 $— $44 
    __________________
    (1)Institutional funds that are not publicly traded are estimated at fair value using the net asset value (“NAV”) per share of the investment as a practical expedient and are not categorized in the fair value hierarchy. Therefore, the sum of the values categorized in the fair value hierarchy above do not agree to the total.
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    The following are descriptions of the valuation methodologies and key inputs used to measure financial assets and liabilities recorded at fair value on a recurring basis:
    •Derivatives—Derivatives classified within Level 1 are valued using quoted market prices. In some cases where quoted market prices are not available, we value the derivatives using market-based pricing models that utilize the net present value of estimated future cash flows to calculate fair value, in which case the measurements are classified within Level 2. These valuation models make use of market-based observable inputs, including exchange traded prices and rates, yield curves, credit curves and measures of volatility. Level 3 derivatives are valued based on diesel fuel prices and use both observable and unobservable inputs. There is a lack of price transparency with respect to forward prices for diesel fuel. Such unobservable inputs are significant to the diesel fuel derivative contract valuation methodology.
    •Mutual funds—Mutual funds consist of publicly traded funds and other institutional funds that are not publicly traded. Publicly traded mutual funds are measured at fair value using quoted market prices and are categorized in Level 1 within the fair value hierarchy.
    •Insurance contracts—Insurance contracts are valued at their cash surrender value using the daily asset unit value which is based on the quoted market price of the underlying securities and classified within Level 2.
    Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis 
    Certain assets and liabilities are measured at fair value on a nonrecurring basis after initial recognition; that is, the assets and liabilities are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances, for example, when there is evidence of impairment. For the three months ended March 30, 2025 and March 31, 2024, respectively, we had no significant assets or liabilities that were measured and recorded at fair value on a nonrecurring basis after initial recognition.
    Redeemable Noncontrolling Interest
    The redemption value for the noncontrolling interest in Granjas Carroll de Mexico, S. de R.L. de C.V., (“Altosano”) is fair value. We estimate the redemption value of Altosano using an income and a market approach. Under the income approach, fair value is determined by using the projected discounted cash flows. Under the market approach, the fair value is determined by reference to guideline companies that are reasonably comparable; the fair value is estimated based on the valuation multiples of EBITDA. The significant unobservable inputs used in the determination of the fair value have an inherent measurement uncertainty that if changed could result in higher or lower fair value measurements as of the reporting date. The following table provides the significant unobservable level 3 inputs used in the valuation.
    Unobservable InputsMarch 30, 2025December 29, 2024
    Weighted-average cost of capital9 %9 %
    Growth rate3 %3 %
    EBITDA multiple9.5x10x
    Control premium25 %25 %
    Other Financial Instruments
    We determine the fair value of fixed-rate debt using Level 2 inputs based on quoted market prices. The carrying amount of all other debt approximates fair value as those instruments are based on variable interest rates. The following table presents the fair value and carrying value of total debt.
    March 30, 2025December 29, 2024
    Fair ValueCarrying ValueFair ValueCarrying Value
    (in millions)
    Debt$1,856 $1,983 $1,821 $1,983 
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    The carrying amounts of cash and cash equivalents, accounts receivable, notes payable and accounts payable approximate their fair values because of the relatively short-term maturity of these instruments.
    Concentrations of Credit Risk
    Our financial instruments exposed to concentrations of credit risk consist primarily of cash and cash equivalents, accounts and notes receivable and derivatives. We may be exposed to losses in the event of nonperformance by our banks, customers, brokers or other counterparties.
    We have significant concentrations of credit risk associated with our cash and cash equivalents. However, our cash and cash equivalents are held by numerous major financial institutions that maintain certain minimum investment grade credit ratings.
    Concentrations of credit risk with respect to accounts and notes receivable are limited due to our large number of customers. We perform periodic credit evaluations of our customers’ financial condition and generally do not require collateral. As of March 30, 2025, we had accounts and notes receivable from Murphy Family Farms totaling $195 million. This balance is secured by the breeding stock and inventories owned by Murphy Family Farms. We have an agreement to purchase 3.2 million market hogs annually from Murphy Family Farms, which further mitigates our exposure to potential credit risk.
    Our derivative counterparties primarily consist of financial institutions that are investment grade. A portion of our financial instruments are exchange traded derivative contracts held with brokers and counterparties with whom we maintain margin accounts that are settled on a daily basis, thereby limiting our credit exposure to non-exchange traded derivatives. Determination of the credit quality of our counterparties is based upon a number of factors, including credit ratings and our evaluation of their financial condition. As of March 30, 2025, we had gross credit exposure of $6 million on non-exchange traded derivative contracts. After taking into account the effect of netting arrangements, we had $2 million of credit exposure on non-exchange traded derivative contracts.
    NOTE 18: REGULATION AND CONTINGENCIES
    Like other participants in our industry, we are subject to various laws and regulations administered by federal, state and other government entities, including the U.S. Environmental Protection Agency and corresponding state agencies, as well as the U.S. Department of Agriculture, the Grain Inspection, Packers and Stockyard Administration, the U.S. Food and Drug Administration, the U.S. Occupational Safety and Health Administration, the Commodity and Futures Trading Commission and similar agencies in foreign countries.
    We, from time-to-time, receive notices and inquiries from regulatory authorities and others asserting that we are not in compliance with such laws and regulations. In some instances, litigation ensues. In addition, individuals may initiate litigation against us.
    As of March 30, 2025 and December 29, 2024, we had contingent liabilities totaling $141 million in accrued expenses and other current liabilities on the condensed consolidated balance sheets related to litigation matters, including those described below. We did not record any significant charges for litigation matters in the three months ended March 30, 2025 and March 31, 2024, respectively. 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. We are unable to estimate the amount of possible loss in excess of our accruals, which could be material. Additionally, legal expenses incurred in our and our subsidiaries’ defense of these claims and any payments made to plaintiffs through unfavorable verdicts or otherwise could negatively impact our cash flows and our liquidity position.
    Antitrust Price-Fixing Litigation
    The Company has been named as one of 16 defendants in a series of class actions filed in 2018 in the U.S. District Court for the District of Minnesota alleging antitrust violations in the pork industry. The class cases were filed by three different groups of plaintiffs. In all of these cases, the plaintiffs alleged that starting in 2009 and continuing through at least June of 2018, the defendant pork producers agreed to reduce the supply of hogs in the U.S. in order
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    to raise the price of hogs and all pork products. The plaintiffs in all of these cases also challenged the defendant pork producers’ use of benchmarking reports from defendant Agri Stats, Inc., alleging that the reports allowed the pork producers to share proprietary information and monitor each producer’s compliance with the supposed agreement to reduce supply. Payments in the aggregate amount of $194 million were made by us to settle all class claims.
    In addition to the class actions, the Company has been named as a defendant in similar antitrust lawsuits and related claims brought by a number of individual parties who opted out of the classes. The plaintiffs in the non-class cases assert the same or similar antitrust claims as the plaintiffs in the class actions. The Company has entered into negotiations with many of these claimants and has settled certain of these cases. Currently, 22 of these cases are pending against the Company.
    The Attorneys General for the states of New Mexico and Alaska and the Commonwealth of Puerto Rico have filed similar complaints on behalf of their respective states, territories, agencies and citizens. The Company has settled all of these cases. The Company intends to vigorously defend against the remaining claims.
    Antitrust Wage-Fixing Litigation
    On November 11, 2022, Smithfield Foods, Inc. and our wholly owned subsidiary, Smithfield Packaged Meats Corp., were named as two of the numerous defendants in a purported class action complaint filed in the U.S. District Court for the District of Colorado alleging wage-fixing violations in the red meat industry. The plaintiffs allege that the defendants, most of whom operate beef or pork processing plants, conspired to suppress wages paid to plant workers in the U.S. in violation of the antitrust laws. The plaintiffs sought damages on behalf of all employees of defendants and their subsidiaries from January 1, 2014, to the present. The plaintiffs also sought treble damages and attorneys’ fees. The defendants filed motions to dismiss the complaint, which were largely denied by the court on September 27, 2023. The plaintiffs subsequently amended their complaint adding additional defendants, including our wholly owned subsidiary, Murphy-Brown of Missouri, LLC (which has been dismissed voluntarily), and expanding the class period back to 2000.
    Since the case was filed, several defendants have settled. On April 5, 2024, the remaining defendants moved to dismiss the amended complaint. On March 26, 2025, the court granted in part defendants’ motion to dismiss the amended complaint and held that certain of plaintiffs’ new allegations are barred by the statute of limitations, Defendants’ answers to the remaining claims are due on May 9, 2025. We intend to vigorously defend against these claims.
    Maxwell Foods Litigation
    On August 13, 2020, Maxwell Foods, LLC (“Maxwell”) filed a complaint against Smithfield Foods, Inc. in the General Court of Justice, Superior Court Division for Wayne County, North Carolina. The complaint alleged that Smithfield breached the Production Sales Agreement (“PSA”) between the parties (as well as the duty of good faith and fair dealing): (1) by failing to provide Maxwell with the same pricing as other major hog suppliers in violation of a purported “Most-Favored-Nation Provision” found in a December 6, 1994 letter to Maxwell, (2) by failing to comply with an implicit duty to negotiate the PSA to provide alternative pricing to Maxwell when the Iowa-Southern Minnesota market allegedly ceased to be viable; and (3) by failing to purchase Maxwell’s entire output of hogs since April 2020.
    Smithfield filed a notice of removal to the U.S. District Court of the Eastern District of North Carolina. Smithfield also filed a motion to dismiss several of Maxwell’s claims. On February 22, 2021, the U.S. District Court granted Maxwell’s motion to remand the case to the Superior Court of Wayne County and left Smithfield’s partial motion to dismiss the complaint for consideration by the state court in Wayne County.
    On March 1, 2021, Maxwell filed an amended complaint, which added a claim under the North Carolina Unfair and Deceptive Trade Practices Act (“UDTPA”). Smithfield filed a notice of designation seeking assignment of the case to the North Carolina Business Court. Maxwell objected to such designation, and on April 13, 2021 the Business Court overruled Maxwell’s objection.
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    The Business Court also dismissed two of Maxwell’s claims: the implied duty to negotiate claim and the UDTPA claim. Maxwell subsequently filed another amended complaint adding a fraudulent concealment claim and a new breach of contract claim, as well as a request for punitive damages. The court dismissed the fraudulent concealment claim and the request for punitive damages. The three remaining claims, all for breach of contract, are: (1) the claim under the “Most-Favored-Nation Provision,” (2) the claim that Smithfield failed to purchase Maxwell’s entire output of hogs since April 2020, and (3) the claim that from time to time, Smithfield would calculate Maxwell’s payment for a delivery of hogs using an average of the preceding week’s weight rather than the actual weights of the hogs being delivered.
    The parties filed cross-motions for summary judgment and related motions to exclude expert testimony, which were fully briefed on November 17, 2023. The parties filed cross-motions for summary judgment, and on December 30, 2024, the Business Court entered an order and opinion on the parties’ motions for summary judgment. The Business Court held that: (1) Maxwell’s claim for breach of a “Most-Favored-Nation Provision” was dismissed except as it relates to pricing given to one particular supplier; (2) Smithfield is liable for breaching an output provision in the parties’ contract, with damages to be determined at trial; and (3) Maxwell’s claim that Smithfield breached the pricing term of the parties’ contract by using live-weight pricing shall proceed to trial based on the allegation that Smithfield did not pay the correct live- weight price for certain deliveries, but not based on the allegation that use of live-weight pricing itself breaches the contract. The Business Court has set a trial date of June 9, 2025. We intend to vigorously defend against the remaining claims.
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    ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
    The following discussion and analysis should be read in conjunction with the condensed consolidated financial statements and accompanying notes included in Part I, Item 1 of this Quarterly Report on Form 10-Q and the Annual Report on Form 10-K filed for the fiscal year ended December 29, 2024. 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.
    Overview
    Smithfield Foods, Inc., together with its subsidiaries (“Smithfield,” “the Company,” “we,” “us” or “our”) is an American food company that employs approximately 34,000 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. We are an indirect, majority owned subsidiary of Hong Kong-based WH Group Limited (“WH Group”).
    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 Segment
    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 dogs, deli and lunch meats, dry sausage products (such as pepperoni and genoa salami), ham products, ready-to-eat products and prepared foods (such as pre-cooked entrees, bacon and sausage). Approximately 80% of the Packaged Meats segment’s raw materials are sourced from our Fresh Pork segment. We market our domestic packaged meats products under a strategic set of core brands, which include: Smithfield, Eckrich, Nathan’s Famous, Farmland, Armour, Farmer John, Kretschmar, Krakus, John Morrell, Cook’s, Gwaltney, Carando, Margherita, Curly’s and Smithfield Culinary. We also sell a sizeable portion of our packaged meats products as private label products. The majority of the Packaged Meats segment’s products are sold to retail and foodservice customers in the U.S.
    Fresh Pork Segment
    The Fresh Pork segment consists of our U.S. operations that process live hogs into a wide variety of primal, sub-primal and offal products, such as bellies, butts, hams, loins, picnics and ribs. In fiscal year 2024, the Fresh Pork segment sourced approximately half of its raw materials from our Hog Production segment and half from third-party farmers with whom we partner across the U.S. In fiscal year 2025, we expect that approximately 40% of the hogs processed by the Fresh Pork segment will be sourced from the Hog Production segment as a result of our new partnerships in Murphy Family Farms and VisionAg, which are described under “Recent Developments—Hog Production Reform” below. Approximately one-third of our fresh pork products, including the majority of hams, bellies and trimmings, is transferred to our Packaged Meats segment. Externally, we sell our fresh pork products to domestic retail, foodservice and industrial customers, as well as to export markets, including, among others, China, Mexico, Japan, South Korea and Canada.
    Hog Production Segment
    The Hog Production segment consists of our hog production operations in the U.S., which produce and raise our hogs on numerous company-owned farms and farms that are owned and operated by third-party contract farmers. Nearly all of the hogs produced by this segment are processed by our Fresh Pork segment. The Hog Production segment also sells grains and feed to external customers. In fiscal year 2024 and the first quarter of fiscal year 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.
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    Our 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 first quarter of 2025 and the three months ended March 30, 2025 are to the 13-week period ended March 30, 2025. All references to the first quarter of 2024 and the three months ended March 31, 2024 are to the 13-week period ended March 31, 2024.
    Growth Strategies
    The strategic initiatives we are executing across our segments are complemented and enabled by our strong balance sheet and ongoing operational investments, positioning us for future growth. We have several strategic initiatives to grow our business, reduce costs and enhance our profitability and margins. These include:
    •driving growth in our Packaged Meats segment;
    •further enhancing the profitability of our Fresh Pork segment;
    •continuing to invest in innovation;
    •optimizing operational and supply chain efficiencies; and
    •executing synergistic and complementary mergers and acquisitions.
    Key Factors Affecting Our Results of Operations and Financial Condition
    The following are key factors that have influenced our results of operations in the past and may influence our results in the future.
    Sales Drivers
    We are focused on driving profitable growth through our Packaged Meats segment. Within the Packaged Meats segment, the primary factors impacting sales of our brands are household penetration, consumption levels, price point and product offerings. As a result, we have pursued strategies that we believe best align our products with consumer trends and behavior. We have shifted our portfolio towards a higher mix of value-added and margin accretive products while leveraging the breadth of our offerings to further penetrate across dayparts. We look to increase brand awareness and encourage consumer adoption of our products through product and packaging innovation and effective and appealing marketing strategies while maintaining our promise to consumers to offer high-quality products for every budget. We have also expanded to new categories and grown distribution of under-indexed brands in under-penetrated locations. In addition to the prior initiatives, we also seek to increase sales in packaged meats products by driving volumes of our private label and foodservice products, by expanding our customer relationships and by offering quality selections across the value chain.
    The U.S. packaged meats market is supported by long-term secular tailwinds, including consumer demand for high-protein diets, high-quality nutrition, product versatility and convenience. We expect these tailwinds to continue to drive increases in overall meat consumption. Nevertheless, changes in market trends and consumer preferences could adversely affect our results of operations.
    In our Fresh Pork segment, the primary drivers of external sales are the consistent level of global pork consumption, our ability to maximize the value of each hog and our ability to leverage our different end markets including retail, foodservice, industrial and export channels. Through ongoing product innovation, we seek to appeal to ever-changing consumer preferences, including demand for convenience and smaller portion sizes as well as expanded interests in new and varied flavors. We also seek to capitalize on export markets as an outlet for increasing the value of raw materials through whole-hog utilization and by appealing to differentiated, global tastes and preferences.
    Cost Factors
    Our cost as a percentage of sales varies based on fluctuations of raw materials prices, as well as manufacturing, distribution and marketing costs. Raw materials are the largest component of our total cost of goods sold, with feed ingredients and hogs accounting for the majority share. The prices of feed ingredients, hogs and pork fluctuate based
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    on market dynamics which can affect our margins. We enter into hedging transactions for these commodities when we determine conditions are appropriate to mitigate the inherent price risks. While this hedging may limit our ability to participate in gains from favorable commodity fluctuations, it also reduces the risk of loss from adverse changes in raw material prices.
    We continue to optimize the size of our hog production operations and procure a greater mix of hogs from independent suppliers with market-based supply agreements in order to supply our Fresh Pork segment. 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 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. In our logistics and distribution network, we have reduced transportation and warehousing costs by improving transportation carrier mix, maximizing utilization of our cold storage and trucking assets, improving supply and demand planning and optimizing inventory levels.
    Our results of operations will continue to depend on our ability to (1) manage raw material cost movements through optimizing our hog production operations, hedging, forward purchasing, strategic sourcing negotiations and passing inflationary cost increases to customers, (2) operate our manufacturing and logistics footprint efficiently and competitively and (3) continue to attract and retain customers and consumers through effective sales and marketing spend.
    Tariffs
    We export our products to over 30 countries, including China. Those exports primarily consist of fresh pork products. For the quarter ended March 30, 2025, our export sales into China accounted for approximately 3% of our total sales. As of April 29, 2025, products we export to China face tariffs that range from 140% to 172%, with most products subject to 172% tariff rates. Trade relations between the U.S. and China are fluid, and it is impossible for us to predict whether tariff rates imposed on our products by China will increase, decrease or stay the same, or whether China will ban imports from the U.S. altogether. Current tariff rates imposed on our products by China could cause us to reduce or even cease selling our products into China.
    On April 10, 2025, the U.S. indicated that tariff rates would be increased on countries other than China that fail to enter into bilateral trade deals with the U.S. We are unable to predict whether the U.S. will enter into bilateral trade agreements with any other country, whether the U.S. will impose additional tariffs on other countries or whether those other countries will retaliate with tariffs that apply to the products we export.
    Recent Developments
    The following events and transactions have had, and/or will have, an impact on our results of operations and/or financial condition:
    Workforce Reduction
    In the first quarter of 2025, we implemented a reduction in workforce initiative to streamline our operations and reduce operating expenses. We eliminated certain corporate and plant positions and recognized employee termination benefit costs totaling $9 million in the condensed consolidated statement of income in the first quarter of 2025 with $6 million classified in SG&A and $2 million classified in cost of sales.
    Initial Public Offering
    On January 29, 2025, we completed our initial public offering (“IPO”) of 26,086,958 shares of common stock, which represents 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 our existing shareholder. Our existing shareholder granted the underwriters a 30-day
    30


    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. We received net proceeds from the IPO of $236 million after deducting underwriting discounts, commissions and fees. As a result of the IPO, our common stock is listed on the Nasdaq Global Select Market under the ticker “SFD.”
    In connection with the IPO, we granted to our directors and certain of our employees and certain directors and employees of WH Group: (1) options to purchase 9,822,467 shares with an exercise price equal to the IPO price and an aggregate grant date fair value of $30 million and (2) 1,527,000 restricted stock units (“RSUs”) with an aggregate grant date fair value of $31 million. The options and substantially all RSUs vest over a five year period, with 20% vesting each year. We recognized compensation expense totaling $2 million associated with these equity instruments in the first quarter of 2025. Unrecognized compensation expense totaled $45 million as of March 30, 2025, which is expected to be recognized on a straight-line basis over the remaining vesting period of 4.8 years.
    Altoona, Iowa Facility Closure
    On August 30, 2024, we closed our Altoona, Iowa ham boning facility and consolidated production volume into other locations to improve manufacturing efficiencies. Costs associated with closing the plant primarily include operating lease assets and equipment that we disposed of prior to the expiration of the lease term or end of the asset’s useful life. The charges associated with the closing were not material. Altoona was accounted for in the Fresh Pork segment.
    European Carve-Out
    On August 26, 2024, we completed a carve-out and transfer of our European operations to WH Group. As a result, we derecognized the assets and liabilities of our former European operations through equity. No gain or loss was recognized on the transaction. The historical results of operations, assets and liabilities, and cash flows of the European operations have been condensed and reported as discontinued operations in the consolidated financial statements for all periods presented.
    Dry Sausage Facility Acquisition
    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.

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    Hog Production Reform
    Beginning in 2023, we have taken a number of actions to optimize the size of our Hog Production segment’s operations and improve its cost structure, including ceasing certain farm operations, terminating certain agreements with underperforming contract farmers and reducing the size of our hog production business (“Hog Production Reform”).
    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. 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. Murphy Family Farms is now a hog supplier to us and will supply approximately 3.2 million hogs annually. We will supply animal feed and other supplies and provide certain support services to Murphy Family Farms.
    On February 24, 2025, we became a member of a North Carolina-based company, VisionAg Hog Production, LLC (“VisionAg”), by contributing $450,000 in cash in exchange for a 9% minority interest. We additionally sold approximately 28,000 sows and the associated commercial hog inventories located on certain company-owned and contract farms in North Carolina to VisionAg. VisionAg is now a hog supplier to us and will supply approximately 600,000 hogs annually. In addition, we will supply animal feed and provide certain support services to VisionAg.
    In the first quarters of 2025 and 2024, we recognized charges totaling $1 million and $10 million, respectively, associated with Hog Production Reform in cost of sales in the condensed consolidated statements of income.
    Results of Operations
    Consolidated Results of Continuing Operations
    Three Months Ended
    March 30, 2025March 31, 2024$ Change% Change
    (in millions)
    Sales$3,771 $3,444 $327 9.5 %
    Cost of sales3,262 3,083 179 5.8 %
    Gross profit510 362 148 40.9 %
    Selling, general and administrative expenses197 199 (2)(0.9)%
    Operating gains
    (9)(1)(8)NM
    Operating profit321 163 158 96.7 %
    Interest expense, net11 16 (4)(27.2)%
    Non-operating (gains) losses6 (4)11 NM
    Income from continuing operations before income taxes304 152 151 99.5 %
    Income tax expense72 39 33 84.6 %
    Loss from equity method investments5 1 4 NM
    Net income from continuing operations227 112 115 101.8 %
    Net income (loss) from continuing operations attributable to noncontrolling interests4 (2)5 NM
    Net income from continuing operations attributable to Smithfield$224 $114 $110 96.1 %



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    Operating Profit by Segment
    Three Months Ended
    March 30, 2025March 31, 2024$ Change% Change
    (in millions)
    Packaged Meats
    $266 $286 $(20)(7.0)%
    Fresh Pork
    82 110 (28)(25.7)%
    Hog Production
    1 (174)175 NM
    Other
    14 (8)23 NM
    Corporate expenses(29)(32)3 9.3 %
    Unallocated(12)(18)6 32.7 %
    Operating profit$321 $163 $158 96.7 %
    We recently removed income from equity method investments from the measure of segment profit reviewed by our Chief Operating Decision Maker. Accordingly, the historical segment results presented herein have been retrospectively adjusted to remove income from equity method investments.
    Results of Operations Analysis
    The following discussion provides an analysis of our results of operations for the first quarter of 2025 compared to the first quarter of 2024.
    Sales
    Three Months Ended
    March 30, 2025March 31, 2024$ Change% Change
    (in millions)
    Sales by segment:
    Packaged Meats$2,024 $1,999 $24 1.2 %
    Fresh Pork2,033 1,938 95 4.9 %
    Hog Production932 706 226 32.0 %
    Other 104 114 (10)(8.6)%
    Total segment sales5,093 4,758 335 7.1 %
    Inter-segment sales eliminations:
    Fresh Pork
    (787)(735)(52)7.1 %
    Hog Production
    (535)(578)43 (7.5)%
    Total inter-segment sales eliminations(1,322)(1,314)(9)0.7 %
    Consolidated sales$3,771 $3,444 $327 9.5 %
    Packaged Meats. Segment sales increased by $24 million, or 1.2%, as a 5.7% increase in average sales price more than offset a 4.2% decrease in sales volume. 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, and a favorable shift in product mix. The decrease in volume was primarily attributable to lower holiday ham sales due to the timing of Easter, which occurred later in 2025 as compared to 2024.
    Fresh Pork. Segment sales increased by $95 million, or 4.9%, primarily attributable to a 4.8% increase in our average sales price. The increase in average sales price is reflective of lower pork supply and steady demand. In the
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    first quarter of 2025, fresh pork cut-out values reported by the U.S. Department of Agriculture (“USDA”) averaged $0.95 per pound, up 5.9% from the same period last year. Sales volume was consistent year-over-year.
    Hog Production. Segment sales increased by $226 million, or 32.0%, primarily due to the following factors, which more than offset an approximately 800,000, or 21%, 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.
    •The sale of commercial hog inventories to Murphy Family Farms and VisionAg, which accounted for approximately $155 million in sales in the first quarter of 2025.
    •An increase in our average market hog sales price primarily attributable to a 14.1% increase in the lean hog price index published by the Chicago Mercantile Exchange.
    •A $73 million increase in grain and feed sales primarily attributable to our feed supply agreements in connection with our investments in Murphy Family Farms and VisionAg.
    Other. Segment sales decreased by $10 million, or 8.6%, primarily attributable to our Mexico operations, which experienced a 14.1% decline in volume partially offset by an 8.6% increase in average sales price.
    Inter-segment Eliminations
    •Fresh Pork. The increase in inter-segment sales by our Fresh Pork segment was primarily attributable to higher market values for fresh pork components sold to our Packaged Meats segment.
    •Hog Production. The decrease in inter-segment sales by our Hog Production segment was attributable to our strategic initiative to optimize our hog production operations, which reduced the number of hogs produced by our Hog Production segment, partially offset by an increase in the average sales price.
    Cost of Sales
    Three Months Ended
    March 30, 2025March 31, 2024$ Change% Change
    (in millions)
    Packaged Meats
    $1,665 $1,621 $44 2.7 %
    Fresh Pork
    1,906 1,782 125 7.0 %
    Hog Production
    919 868 52 6.0 %
    Other
    84 116 (32)(27.4)%
    Unallocated
    9 10 (1)(12.6)%
    Inter-segment eliminations(1,322)(1,314)(9)0.7 %
    Cost of sales$3,262 $3,083 $179 5.8 %
    Packaged Meats. Cost of sales in our Packaged Meats segment increased by $44 million, or 2.7%, driven primarily by an increase in raw material costs attributable to the net effect of higher fresh pork market prices and lower sales volume.
    Fresh Pork. Cost of sales in our Fresh Pork segment increased by $125 million, or 7.0%, driven primarily by a $160 million increase in raw material attributable to higher market prices for hogs. Manufacturing and distribution costs decreased by $36 million due to lower freight rates and cost improvement initiatives, including the closure of our Altoona, IA facility.
    Hog Production. Cost of sales in our Hog Production segment increased by $52 million, or 6.0%, primarily due to $147 million in costs attributable to the commercial hog inventories sold to Murphy Family Farms and VisionAg, which were partially offset by the following factors:
    •A $52 million decrease in raw material costs primarily attributable to lower prices for feed ingredients, including the effects of hedging.
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    •A $31 million decrease in operating costs largely attributable to our strategic initiative to optimize the size of our Hog Production operations.
    Other. Cost of sales in our Other segments decreased by $32 million, or 27.4%, driven primarily by the following factors:
    •A $15 million decrease in raw material costs in our Mexico operations primarily attributable to lower sales volume and lower market prices for feed ingredients.
    •A $9 million decrease in manufacturing and distribution costs in our Mexico operations due in part to lower sales volume.
    •A $6 million decrease in raw material costs in our Bioscience operations due primarily to lower sales volume.
    Selling, General and Administrative Expenses
    Three Months Ended
    March 30, 2025March 31, 2024$ Change% Change
    (in millions)
    Packaged Meats
    $93 $92 $— 0.3 %
    Fresh Pork
    46 47 (1)(2.7)%
    Hog Production
    12 12 (1)(6.1)%
    Other
    6 7 (1)(11.6)%
    Unallocated12 9 4 41.5 %
    Corporate expenses
    29 32 (3)(9.3)%
    Selling, general and administrative expenses$197 $199 $(2)(0.9)%
    Selling, general and administrative expenses (“SG&A”) decreased by $2 million, or 0.9%, primarily as a result of cost savings initiatives, which were partially offset by a $6 million increase in accruals for employee termination benefits.
    Operating Gains
    Operating gains consists of the following items:
    Three Months Ended
    March 30, 2025March 31, 2024
    (in millions)
    Insurance recoveries (1)
    $(6)$— 
    Gain on disposal of assets(2)— 
    Other operating gains(1)(1)
    Total operating gains$(9)$(1)
    ________________
    (1)Represents a gain from an insurance recovery in connection with a fire at our Tar Heel, North Carolina rendering facility that occurred in 2021.
    Interest Expense, Net
    Interest expense, net decreased by $4 million, or 27.2%, due to higher levels of cash and cash equivalents earning interest in the first quarter of 2025 as compared to the same period a year ago, while interest rates on borrowings were largely fixed.

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    Non-operating Gains
    Non-operating gains consisted of the following items:
    Three Months Ended
    March 30, 2025March 31, 2024
    (in millions)
    Net pension and postretirement benefits cost (1)
    $4 $2 
    (Gain) loss on nonqualified retirement plan assets2 (6)
    Non operating (gains) losses$6 $(4)
    ________________
    (1)Includes the components of net pension and postretirement benefits cost other than service cost, which is included in operating profit. These components consist of interest cost, expected return on plan assets, amortization of actuarial gains/losses and prior service costs/credits, and curtailment gains.
    Income Tax Expense
    Income tax expense increased by $33 million, or 84.6%, primarily due to higher year-over-year earnings. Our effective tax rate attributable to continuing operations for the three months ended March 30, 2025 was 23.6%, compared to 25.5%, for the corresponding period a year ago.
    Loss from Equity Method Investments
    Loss from equity method investments increased to $5 million in the first quarter of 2025 from $1 million in the corresponding period a year ago. The increase in loss was primarily attributable to our biogas joint ventures.
    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 March 30, 2025, we had $3,230 million of available liquidity consisting of $928 million in cash and cash equivalents and $2,303 million of availability under our committed credit facilities. Availability under our committed credit facilities is reduced by the principal amount of our outstanding commercial paper. We believe that our current liquidity position is strong and that our cash flows from operations and availability under our credit facilities will be sufficient to meet our working capital needs and financial obligations and commitments for at least the next twelve months.
    Credit Facilities
    March 30, 2025
    FacilityCapacityBorrowing
    Base
    Adjustment
    Outstanding
    Borrowings
    Commercial
    Paper
    Borrowings
    Outstanding
    Letters of
    Credit
    Amount
    Available
    (in millions)
    Senior Revolving Credit Facility$2,100 $— $— $— $— — $2,100 
    Securitization Facility225 — — — (22)203 
    Total credit facilities$2,325 $— $— $— $(22)$2,303 
    Senior Unsecured Revolving Credit Facility
    In February 2025, we refinanced our $2,100 million senior unsecured revolving credit facility (“Senior Revolving Credit Facility”) extending the maturity date from May 21, 2027 to February 12, 2030, with the option to extend the maturity date for up to two one-year periods, subject to obtaining the lenders’ consent and satisfaction of certain other conditions. The Senior Revolving Credit Facility capacity remains at $2,100 million. As part of the new agreement, there are no longer any subsidiary guarantors under the Senior Revolving Credit Facility which also released the subsidiary guarantors from our Senior Unsecured Notes. The Senior Revolving Credit Facility bears
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    interest at the Secured Overnight Financing Rate plus a margin ranging from 0.875% to 1.50% per annum, or, at our election, at a base rate plus a margin ranging from 0.00% to 0.50% per annum, in each case depending on our senior unsecured debt ratings. The Senior Revolving Credit Facility also contains financial maintenance covenants requiring us to maintain a maximum total consolidated leverage ratio (ratio of consolidated funded debt to consolidated capitalization, each as defined in the Senior Revolving Credit Facility) of 0.50 to 1.00 (which we may elect to increase to 0.55 to 1.00 with respect to any fiscal quarter in which a material acquisition is consummated and the immediately following three consecutive fiscal quarters, subject to certain restrictions) and a minimum interest coverage ratio (“ratio of earnings before interest, taxes, depreciation and amortization (“EBITDA”) to consolidated interest expense, each as defined in the Senior Revolving Credit Facility”) of 3.50 to 1.00.
    Our Senior Revolving Credit Facility contains customary covenants, including, but not limited to, restrictions on our ability and that of our subsidiaries to merge and consolidate with other companies, incur indebtedness, grant liens or security interests on assets subject to their security interest, make acquisitions, loans, advances or investments, pay dividends, sell or otherwise transfer assets, optionally prepay or modify terms of any junior indebtedness or enter into transactions with affiliates, each subject to certain exceptions as set forth therein. We are currently in compliance with the covenants under our Senior Revolving Credit Facility.
    Securitization Facility
    We maintain a $225 million accounts receivable securitization facility (“Securitization Facility”), which matures in November 2027. As part of the Securitization Facility, certain accounts receivable of our major domestic meat processing subsidiaries are sold to a wholly owned “bankruptcy remote” special purpose vehicle (“SPV”). The SPV pledges all such accounts receivable not otherwise sold pursuant to the Monetization Facility (as defined below) as security for loans made, and letters of credit issued, by participating lenders under the Securitization Facility. 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 insolvent. As of March 30, 2025, the SPV held $432 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 March 30, 2025, we had $22 million in letters of credit issued under the Securitization Facility. None of the letters of credit were drawn upon.
    Monetization Facility
    In addition to the Securitization Facility, we maintain an uncommitted $250 million accounts receivable monetization facility (“Monetization Facility”). At Smithfield’s election and subject to the purchasing banks’ approval, certain accounts receivable may be sold by the SPV to purchasing banks, so long as the uncollected outstanding amount of accounts receivable sold pursuant to the Monetization Facility does not exceed $250 million in the aggregate at any time, among other limitations. In the event of a sale, the purchasing banks assume all credit risk related to the receivables while we maintain risk associated with customer disputes. We account for the sale of receivables to a purchasing bank by derecognizing the receivables from our condensed consolidated balance sheet upon transfer of control to the purchasing bank, and recognizing a discount on the sale in SG&A in the condensed consolidated statement of income. The proceeds from the sale of receivables are included in net cash flows from operating activities in the condensed consolidated statement of cash flows. On behalf of the purchasing banks, we continue to service all receivables sold under the Monetization Facility. As of March 30, 2025, the uncollected balance of receivables that had been sold to purchasing banks was $240 million. We had no servicing asset or liability outstanding as of March 30, 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 $785 million and $821 million of cash collections from customers in the revolving sale of accounts receivable to purchasing banks in the three months ended March 30, 2025 and March 31, 2024, respectively. We recognized charges totaling $3 million and $3 million in first quarters 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.
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    Cash Flows From Operating Activities of Continuing Operations
    Three Months Ended
    March 30, 2025March 31, 2024
    (in millions)
    Cash flows from operating activities:
    Net income$227 $154 
    Less: Net income from discontinued operations— (42)
    Net income from continuing operations$227 $112 
    Adjustments to reconcile net income from continuing operations to net cash flows used in operating activities of continuing operations:
    Depreciation and amortization83 82 
    Change in accounts receivable(204)7 
    Change in inventories33 116 
    Change in prepaid expenses and other current assets28 25 
    Change in accounts payable(318)(387)
    Change in accrued expenses and other current liabilities(80)(120)
    Other64 (54)
    Net cash flows used in operating activities of continuing operations$(166)$(219)
    The decrease in net cash flows used in operating activities of continuing operations year-over-year was primarily driven by higher earnings, partially offset by adverse changes in working capital. The following describes the significant changes in working capital:
    •Accounts receivable. Accounts receivable increased in the first quarter of 2025 primarily due to the sale of commercial hog inventories and feed to Murphy Family Farms and VisionAg.
    •Inventories. Inventories decreased in both periods primarily due to lower inventory volumes attributable to Hog Production Reform. The decrease in the first quarter of 2025 was partially offset by increases in meat inventories largely due to the timing of the Easter holiday in 2025 relative to 2024.
    •Accounts payable. Accounts payable decreased in both periods mainly due to the seasonal deferral of payments for hog and grain purchases made in the fourth quarter each year. Payments to certain farmers for these purchases are deferred until the first quarter each year.
    •Accrued expenses and other current liabilities. Accrued expenses and other current liabilities decrease seasonally in the first quarter each year due to payout of variable compensation earned in prior years. The decrease in both years was partially offset by increases in current income taxes payable. Additionally, the decrease in accrued expenses and other current liabilities in the first quarter of 2024 reflects the payout of contract termination and other exit costs attributable to our Hog Production Reform activities.
    Cash Flows From Investing Activities of Continuing Operations
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    Three Months Ended
    March 30, 2025March 31, 2024
    (in millions)
    Cash flows from investing activities:
    Capital expenditures$(79)$(92)
    Net expenditures from breeding stock transactions(7)(25)
    Other1 (3)
    Net cash flows used in investing activities of continuing operations$(85)$(119)
    The following items explain the significant investing activities:
    •Capital expenditures. Capital expenditures for both periods consisted primarily of various plant expansion, automation and improvement projects.
    Cash Flows From Financing Activities of Continuing Operations
    Three Months Ended
    March 30, 2025March 31, 2024
    (in millions)
    Cash flows from financing activities:  
    Net proceeds from issuance of common stock$236 $— 
    Payment of dividends— (88)
    Principal payments on long-term debt and finance lease obligations— (19)
    Other— (2)
    Net cash flows from (used in) financing activities of continuing operations$236 $(109)
    The following items explain certain significant financing activities:
    •Net proceeds from the issuance of common stock. In the first quarter of 2025, we received net proceeds from the issuance of common stock of $236 million after deducting underwriting discounts, commissions and fees.
    Other Anticipated or Potential Cash Requirements
    Capital Expenditures
    The Company remains in a strong financial position due to its robust cash flows, liquidity, and solid balance sheet. We plan to continue to support the business in 2025 through capital expenditures in the range of $400 million to $500 million, inclusive of profit improvement projects, such as packaged meats capacity expansion and automation, as well as repairs and maintenance.
    Dividends
    Returning cash to shareholders in the form of dividends is a top priority for the Company. On March 24, 2025, our Board declared a quarterly cash dividend of $0.25 per share of common stock, which was paid on April 22, 2025, to shareholders of record on April 10, 2025. 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
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    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 R.L. de C.V., (“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 March 30, 2025, the value of the NCI on our condensed consolidated balance sheet was $243 million.
    Contingent Losses
    Like other participants in our industry, we are subject to various laws and regulations administered by federal, state and other government entities, including the U.S. Environmental Protection Agency and corresponding state agencies, as well as the Grain Inspection, Packers and Stockyard Administration, the USDA, the U.S. Occupational Safety and Health Administration, the Commodity Futures Trading Commission and similar agencies in foreign countries. We, from time to time, receive notices and inquiries from regulatory authorities and others asserting that we are not in compliance with such laws and regulations. In some instances, litigation ensues. In addition, individuals may initiate litigation against us.
    The condensed consolidated financial statements reflect accruals for contingent losses associated with various claims. 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. We are unable to estimate the amount of possible loss in excess of our accruals, which could be material. Additionally, legal expenses incurred in our and our subsidiaries’ defense of these claims and any payments made to plaintiffs through unfavorable verdicts or otherwise could negatively impact our cash flows and our liquidity position. For more information on contingencies, refer to “Note 18: Regulation and Contingencies” to the condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.
    Risk Management Activities
    We are exposed to market risks primarily from changes in commodity prices, and to a lesser degree, interest rates and foreign exchange rates. To mitigate these risks, we utilize derivative instruments to hedge our exposure to changing prices and rates, as more fully described in “Quantitative and Qualitative Disclosures About Market Risk” and “Note 9: Derivative Financial Instruments” to the condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.
    Our liquidity position may be positively or negatively affected by changes in the value of our derivative portfolio. When the value of our open derivative contracts decreases, we may be required to post margin deposits with our brokers and counterparties to cover a portion of the decrease. 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 $97 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. 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.
    Guarantees
    We and certain other joint venture partners in Monarch joint and severally guarantee Monarch’s debt, interest and fees, as more fully described in “Note 12: Guarantees” to the condensed consolidated financial statements included
    40


    in Part I, Item 1 of this Quarterly Report on Form 10-Q. As of March 30, 2025, the maximum amount of loans that could be outstanding under Monarch’s debt agreements was $61 million and the loans mature in June 2025. Monarch’s outstanding debt was $56 million as of March 30, 2025
    The guarantee involves elements of performance and credit risk and is not included in the condensed consolidated balance sheets. We could become liable in connection with Monarch’s obligation depending on the ability of Monarch to perform on its obligation. If we consider it probable that we will become responsible for the obligation, we would record the liability on our condensed consolidated balance sheet.
    Non-GAAP Measures
    In arriving at our presentation of non-GAAP financial measures, we exclude items that have an impact on our income statement that, in the judgment of our management, are items that, either as a result of their nature or size, could, were they not identified, potentially cause investors to extrapolate future performance from an improper base. While not all inclusive, examples of these items include:
    •loss contingencies, due to the difficulty in predicting future events, their timing and size;
    •transactions or events that are not part of our core business activities or are unusual in their nature (whether gains or losses); and
    •the tax effects of the foregoing items.
    Adjusted Net Income from Continuing Operations Attributable to Smithfield and Adjusted Net Income from Continuing Operations per Common Share Attributable to Smithfield
    The following table provides a reconciliation of net income from continuing operations attributable to Smithfield to adjusted net income from continuing operations attributable to Smithfield. Adjusted net income from continuing operations attributable to Smithfield and adjusted net income from continuing operations per common share attributable to Smithfield are non-GAAP measures. We believe these non-GAAP measures are useful for investors because they exclude the effects of items that are unusual in nature, infrequent in occurrence or otherwise stem from strategic decisions to restructure our operations. Although we believe these non-GAAP measures provide a better comparison of our year-over-year performance and are frequently used by investors and securities analysts in their evaluations of companies, they have limitations as analytical tools. 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.
    41


    Three Months Ended
    March 30, 2025March 31, 2024
    Affected income statement
    account
    (in millions, except per share data)
    Net income from continuing operations attributable to Smithfield
    224 114 
    Reduction in workforce (1)
    6 — SG&A
    Reduction in workforce (1)
    2 — Cost of sales
    Hog Production Reform (2)
    2 10 
    Cost of sales
    Hog Production Reform(1)— Operating gains
    Plant closure1 — Cost of sales
    Insurance recoveries (3)
    (6)— Operating gains
    Incremental costs from the destruction of property— 3 
    Cost of sales
    Income tax effect of non-GAAP adjustments (4)
    (1)(3)Income tax expense
    Adjusted net income from continuing operations attributable to Smithfield$227 $123 
    Net income from continuing operations attributable to Smithfield per diluted common share$0.57$0.30
    Adjusted net income from continuing operations attributable to Smithfield per diluted common share$0.58$0.32
    ________________
    (1)Consists of severance costs associated with a workforce reduction initiative. Total severance costs round up to $9 million.
    (2)Consists of contract termination costs and accelerated depreciation charges associated with certain farm closures in connection with our Hog Production Reform initiative.
    (3)Represents a gain from an insurance recovery in connection with a fire at our Tar Heel, North Carolina rendering facility that occurred in 2021.
    (4)Represents the tax effects of the non-GAAP adjustments based on a statutory tax rate of 25.7%.
    EBITDA from Continuing Operations, Adjusted EBITDA from Continuing Operations and Adjusted EBITDA Margin from Continuing Operations
    The following table provides a reconciliation of net income from continuing operations to EBITDA from continuing operations and adjusted EBITDA from continuing operations. EBITDA from continuing operations, adjusted EBITDA from continuing operations and adjusted EBITDA margin from continuing operations are non-GAAP measures. 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 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. We believe these non-GAAP measures provide a more comparable year-over-year analysis. Although these non-GAAP measures are frequently used by investors and securities analysts in their evaluations of companies, they have limitations as analytical tools. 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.
    42


    Three Months EndedTwelve Months Ended
    March 30, 2025March 31, 2024December 29, 2024March 30, 2025Affected Income Statement Account
    (in millions, except percentages)
    Net income from continuing operations$227 $112 $798 $912 
    Interest expense, net11 16 66 61 
    Income tax expense72 39 271 303 
    Depreciation and amortization
    83 82 339 340 
    EBITDA from continuing operations$393 $249 $1,474 $1,618 
    Reduction in workforce6 — — 6 SG&A
    Reduction in workforce2 — — 2 Cost of sales
    Plant closure1 — — 1 Cost of sales
    Hog Production Reform (1) (2)
    1 10 29 20 
    Cost of sales
    Hog Production Reform (3)
    (1)— (38)(39)Operating gains
    Insurance recoveries(6)— (4)(10)Operating gains
    Incremental costs from destruction of property— 3 4 2 
    Cost of sales
    Employee retention tax credits (4)
    — — (86)(86)Cost of sales
    Employee retention tax credits (4)
    — — (1)(1)SG&A
    Adjusted EBITDA from continuing operations$396 $261 $1,379 $1,514 
    Net income margin from continuing operations6.0 %3.3 %5.6 %6.3 %
    Adjusted EBITDA margin from continuing operations10.5 %7.6 %9.7 %10.5 %
    ________________
    (1)The twelve months ended December 29, 2024 consisted primarily of contract termination and other farm closure costs and other costs and losses associated with our Hog Production Reform initiative.
    (2)Excludes accelerated depreciation charges of $1 million and $2 million for the three months ended March 30, 2025 and the twelve months ended December 29, 2024, respectively, as such charges are included in the depreciation and amortization line in this table.
    (3)Fiscal year 2024 included 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.
    (4)Represents the recognition of employee retention tax credits received under the Coronavirus Aid, Relief, and Economic Security Act.
    Net Debt and Ratio of Net Debt to Adjusted EBITDA from Continuing Operations
    The following table provides a reconciliation of total debt and finance lease obligations to net debt, the ratio of total debt and finance lease obligations to net income from continuing operations, and the ratio of net debt to adjusted EBITDA from continuing operations. Net debt and the ratio of net debt to adjusted EBITDA from continuing operations are non-GAAP measures. We believe net debt is a useful measure as it helps to give investors a clear understanding of our financial position. Net debt is also used to calculate certain leverage ratios. We believe the ratio of net debt to adjusted EBITDA from continuing operations is a useful measure as it monitors the sustainability of our debt levels and our ability to take on additional debt against adjusted EBITDA from continuing operations, which is used as an operating performance measure. We believe these non-GAAP measures provide a more comparable year-over-year analysis. Although net debt and the ratio of net debt to adjusted EBITDA from continuing operations are frequently used by investors and securities analysts in their evaluations of companies, these non-GAAP measures have limitations as analytical tools. As such, net debt and the ratio of net debt to adjusted EBITDA from continuing operations are not intended to be alternatives to total debt and finance lease obligations and the ratio of total debt and finance lease obligations 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
    43


    financial statements in isolation for formulating decisions as they exclude a number of important cash and non-cash charges.
    Twelve Months Ended
    March 30, 2025December 29, 2024
    (in millions, except ratios)
    Current portion of long-term debt and capital lease$3 $3 
    Long-term debt and finance lease obligations2,000 1,999 
    Total debt and finance lease obligations2,003 2,002 
    Cash and cash equivalents(928)(943)
    Net debt$1,075 $1,059 
    Net income from continuing operations$912 $798 
    Adjusted EBITDA from continuing operations1,514 1,379 
    Ratio of total debt and finance lease obligations to net income from continuing operations2.2x2.5x
    Ratio of net debt to adjusted EBITDA from continuing operations0.7x0.8x
    Adjusted Operating Profit and Adjusted Operating Profit Margin
    The following table provides a reconciliation of operating profit to adjusted operating profit. Adjusted operating profit and adjusted operating profit margin are non-GAAP measures. 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.
    Three Months Ended
    March 30, 2025
    Packaged MeatsFresh PorkHog Production
    Other (1)
    Corporate (2)
    Unallocated (3)
    Consolidated
    (in millions, except percentages)
    Operating profit (loss)$266 $82 $1 $14 $(29)$(12)$321 
    Reduction in workforce— — — — — 9 9 
    Plant closure— — — — — 1 1 
    Hog Production Reform— — — — — 1 1 
    Insurance recoveries— — — — — (6)(6)
    Adjusted operating profit (loss)$266 $82 $1 $14 $(29)$(8)$326 
    Operating profit (loss) margin13.1 %4.0 %0.1 %13.7 %NMNM8.5 %
    Adjusted operating profit (loss) margin13.1 %4.0 %0.1 %13.7 %NMNM8.6 %

    44


    Three Months Ended
    March 31, 2024
    Packaged MeatsFresh PorkHog Production
    Other (1)
    Corporate (2)
    Unallocated (3)
    Consolidated
    (in millions, except percentages)
    Operating profit (loss)$286 $110 $(174)$(8)$(32)$(18)$163 
    Hog Production Reform— — — — — 10 10 
    Incremental costs from destruction of property— — — — — 3 3 
    Adjusted operating profit (loss)$286 $110 $(174)$(8)$(32)$(6)$176 
    Operating profit (loss) margin14.3 %5.7 %(24.6)%(7.3)%NMNM4.7 %
    Adjusted operating profit (loss) margin14.3 %5.7 %(24.6)%(7.3)%NMNM5.1 %
    ________________
    (1)Includes our Mexico and Bioscience operations.
    (2)Represents general corporate expenses for management and administration of the business.
    (3)Includes certain costs of sales, SG&A and operating gains that we do not allocate to our segments.
    Critical Accounting Estimates
    The preparation of condensed consolidated financial statements requires us to make estimates and assumptions. These estimates and assumptions are based on our judgment, experience and understanding of the current facts and circumstances. Actual results could differ from those estimates. Certain of our accounting estimates are considered critical as they are both important to the representation of our financial condition and results of operations and require significant or complex judgment on the part of management.
    A summary of certain accounting policies and estimates that we consider to be critical are described in Part II, Item 7: Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the fiscal year ended December 29, 2024. There have been no material changes to our critical accounting estimates disclosed in our Annual Report on Form 10-K for the fiscal year ended December 29, 2024.
    Recently Issued Accounting Pronouncements
    For a description of recently issues accounting pronouncements, refer to “Note 1: Summary of Significant Accounting Policies” to the condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.
    CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING STATEMENTS
    This Quarterly Report on Form 10-Q and our other publicly available documents contain forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 about us and our industry that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this Quarterly Report on Form 10-Q, including statements regarding our strategy, future financial condition, future operations, projected costs, prospects, plans, objectives of management, and expected market growth, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words, such as “may,” “might,” “will,” “shall,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” “goal,” “objective,” “seeks,” “likely” or “continue” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans, or intentions.
    Forward-looking statements contained in this Quarterly Report on Form 10-Q include, but are not limited to, statements about:
    •our ability to capture synergies between our Packaged Meats and Fresh Pork segments;
    45


    •our ability to execute on our strategy to optimize the size of our hog production operations;
    •our ability to anticipate and meet consumer trends and interests through product innovation;
    •the size of our addressable markets, market share and market trends, including our ability to drive organic growth in our business through our Packaged Meats and Fresh Pork segments;
    •anticipated trends, developments and challenges in our industry, business and the highly competitive markets in which we operate;
    •our ability to mitigate higher input costs through productivity improvements in our operations (including analytics and task automation), various procurement strategies and the use of derivative instruments;
    •our dependence on third-party suppliers and our ability to mitigate any disruption or inefficiency in our supply chain and/or operations;
    •our expectations regarding our hog production transformation strategy and our ability to achieve segment production targets;
    •fluctuations in our quarterly results of operations due to the seasonal nature of our business;
    •our ability to attract and retain employees and maintain our corporate culture;
    •our ability to prevent cyberattacks, other cyber-incidents, security breaches or other disruptions of our information technology systems;
    •our ability to defend litigation brought against us successfully and the sufficiency of our accruals for related contingent losses;
    •compliance with laws and regulations, including environmental, cybersecurity and tax laws and regulations, that currently apply or may become applicable to our business both in the United States and Mexico and our expectations regarding various laws and restrictions that relate to our business;
    •our ability to capitalize on export markets;
    •our ability to execute on acquisitions, joint ventures and divestitures;
    •legal, regulatory, or market measures to address climate change and our ability to achieve our climate-related goals and strategies;
    •future investments in our business, our anticipated capital expenditures and our estimates regarding our capital requirements;
    •the sufficiency of our cash and cash equivalents and the availability of our committed credit facilities to meet our liquidity needs;
    •our ability to achieve our financial and operational targets;
    •our ability to maintain our investment grade ratings;
    •our expectations regarding expenses, such as stock-based compensation expenses;
    •fluctuations in the values of our open derivative contracts and pension obligations and related assets;
    •impairment in the carrying value of our goodwill or intangible assets;
    •our ability to achieve or maintain our targeted Ratio of Net Debt to Adjusted EBITDA and minimum liquidity levels; and
    46


    •our dividend policy and our ability to pay dividends.
    We cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or occur at all. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors, including those described in the section titled “Risk Factors” and elsewhere in this Quarterly Report on Form 10-Q. Moreover, new risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this Quarterly Report on Form 10-Q.
    The forward-looking statements made in this Quarterly Report on Form 10-Q relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this Quarterly Report on Form 10-Q to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q or to reflect new information or the occurrence of unanticipated events, except as required by law.
    ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
    We are exposed to market risks from changes in commodity prices, interest rates and foreign exchange rates, as well as risks from concentrations of credit. To mitigate these risks, we utilize derivative instruments to hedge our exposure to changing prices and rates.
    When available, we use quoted market prices or rates to determine the fair value of our derivative instruments. This may include prices or rates quoted on an exchange, such as the Chicago Mercantile Exchange, quotes obtained from brokers, or independent valuations from external sources, such as banks. In some cases where market prices are not available, we make use of observable market-based inputs to calculate fair value.
    The size and mix of our derivative portfolio vary from time to time based on our analysis of current and future market conditions. The following table presents the fair values of our open derivative financial instruments in the condensed consolidated balance sheets.
    March 30, 2025December 29, 2024
    (in millions)
    Livestock (1)
    $32 $(30)
    Grains3 6 
    Energy (1)
    1 (5)
    ________________
    (1)Negative amount represents net liabilities.
    See “Note 9: Derivative Financial Instruments” to the condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for the effects of derivative instruments on our condensed consolidated statements of income.
    Commodities Risk
    Our meat processing and hog production operations use various raw materials, primarily live hogs, corn, soybean meal and wheat, which are actively traded on commodity exchanges. These commodities are subject to significant price fluctuations. We enter into hedging transactions for these commodities when we determine conditions are appropriate to mitigate the inherent price risks. While this hedging may limit our ability to participate in gains from favorable commodity fluctuations, it also reduces the risk of loss from adverse changes in raw material prices.
    We attempt to closely match the hedging instrument terms with the hedged item’s terms. Gains and losses resulting from our commodity derivative contracts are recorded in cost of sales except for lean hog contracts that are designated in cash flow hedging relationships, which are recorded in sales, and are generally offset by increases and decreases in cash prices for the underlying commodity (with such increases and decreases reflected in the same income statement line items). 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
    47


    markets. However, under the “mark-to-market” method described above, these offsetting changes do not always occur in the same period, which could result in volatility in our results of operations.
    The following table presents the sensitivity of the fair value of our open commodity derivative contracts to a hypothetical 10% change in market prices.
    March 30, 2025December 29, 2024
    (in millions)
    Livestock$91 $64 
    Grains4 11 
    Energy4 4 
    Interest Rate Risk
    The following table presents the fair values and carrying values of our fixed-rate debt.
    March 30, 2025December 29, 2024
    Fair ValueCarrying ValueFair ValueCarrying Value
    (in millions)
    Debt$1,856 $1,983 $1,821 $1,983 
    We determine the fair value of fixed-rate debt using Level 2 inputs based on quoted market prices. The carrying amount of all other debt approximates fair value as those instruments are based on variable interest rates.
    Changes in interest rates impact the fair value of our fixed-rate debt. A hypothetical 10% change in interest rates would impact the fair value of our fixed-rate debt by $38 million and $43 million as of March 30, 2025 and December 29, 2024, respectively.
    We periodically enter into interest rate swaps to hedge our exposure to changes in interest rates on certain financial instruments and to manage the overall mix of fixed rate and floating rate debt instruments. The fair values of interest rate swaps as of March 30, 2025 and December 29, 2024 were not material.
    Foreign Currency Exchange Risk
    Our revenues are primarily generated from transactions denominated in U.S. dollars. However, we also generate revenues from transactions denominated in Japanese yen, Canadian dollars and Australian dollars, among others. We employ foreign currency exchange forward contracts to manage the exposure to foreign currency exchange risk. The fair values of foreign currency exchange forward contracts as of March 30, 2025 and December 29, 2024 were not material.
    ITEM 4. CONTROLS AND PROCEDURES
    Evaluation of Disclosure Controls and Procedures
    At the end of the period covered by this Quarterly Report on Form 10-Q, we evaluated, under the supervision and with the participation of management, including our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “1934 Act”)). Our disclosure controls and procedures are designed to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act, is: (1) recorded, processed, summarized, and reported, within the time periods specified in the SEC’s rules and forms; and (2) accumulated and communicated to our management, including the CEO and CFO, to allow for timely decisions regarding required disclosure. Based on our evaluation, our CEO and CFO concluded that, as of the end of the period covered by this Quarterly Report on Form 10-Q, our disclosure controls and procedures were effective.

    48


    Changes in Internal Control Over Financial Reporting
    During the three months ended March 30, 2025, there were no changes in our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
    PART II. OTHER INFORMATION
    ITEM 1. LEGAL PROCEEDINGS
    Information required by this Item 1 is included in “Note 18: Regulation and Contingencies” to the condensed consolidated financial statements included in Part 1, Item 1 of this Quarterly Report on Form 10-Q.
    ITEM 1A. RISK FACTORS
    Our business is subject to a variety of risks and uncertainties. Our risk factors are described in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 29, 2024. There have been no material changes to our risk factors disclosed in our Annual Report on Form 10-K for the fiscal year ended December 29, 2024.
    ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
    None.
    ITEM 3. DEFAULTS UPON SENIOR SECURITIES
    None.
    ITEM 4. MINE SAFETY DISCLOSURES
    Not applicable.
    ITEM 5. OTHER INFORMATION
    (1) Disclosure in Lieu of Reporting on a Current Report on Form 8-K.
    None.
    (2) Insider Trading Arrangements and Policies.
    During the three months ended March 30, 2025, no director or officer of the Company adopted, modified, or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement," as the terms are defined in Item 408(a) of Regulation S-K.
    ITEM 6. EXHIBITS, FINANCIAL STATEMENT SCHEDULES
    The following documents are filed as a part of this report:
    Exhibit Number
    Description of Exhibit
    3.1
    Amended and Restated Articles of Incorporation of the Registrant, dated as of January 29, 2025 (filed as Exhibit 3.1 to the Current Report on Form 8-K filed by the Registrant with the SEC on January 29, 2025 and incorporated herein by reference).
    3.2
    Amended and Restated Bylaws of the Registrant, dated as of January 29, 2025 (filed as Exhibit 3.2 to the Current Report on Form 8-K filed by the Registrant with the SEC on January 29, 2025 and incorporated herein by reference).
    49


    4.1
    Registration Rights Agreement, dated as of January 21, 2025, by and between the Registrant and SFDS UK Holdings Limited (filed as Exhibit 4.5 to Amendment No. 1 to the Registration Statement on Form S-1 filed by the Registrant with the SEC on January 21, 2025 and incorporated herein by reference).
    4.2
    Shareholders Agreement, dated as of January 21, 2025, by and between the Registrant and WH Group Limited (filed as Exhibit 4.6 to Amendment No. 1 to the Registration Statement on Form S-1 filed by the Registrant with the SEC on January 21, 2025 and incorporated herein by reference).
    10.1
    Form of Indemnification Agreement among the Registrant and its directors and executive officers (filed as Exhibit 10.8 to Amendment No. 1 to the Registration Statement on Form S-1 filed by the Registrant with the SEC on January 21, 2025 and incorporated herein by reference).
    10.2†
    Smithfield Foods, Inc. Omnibus Incentive Plan (filed as Exhibit 10.1 to the Current Report on Form 8-K filed by the Registrant with the SEC on January 29, 2025 and incorporated herein by reference).
    10.3†
    Smithfield Foods, Inc. Employee Stock Purchase Plan (filed as Exhibit 10.2 to the Current Report on Form 8-K filed by the Registrant with the SEC on January 29, 2025 and incorporated herein by reference).
    10.4†
    Form of Smithfield Foods, Inc. Omnibus Incentive Plan Stock Option Award Notice and Agreement (filed as Exhibit 10.11 to Amendment No. 1 to the Registration Statement on Form S-1 filed by the Registrant with the SEC on January 21, 2025 and incorporated herein by reference).
    10.5†
    Form of Smithfield Foods, Inc. Omnibus Incentive Plan Restricted Stock Unit Award Notice and Agreement (filed as Exhibit 10.12 to Amendment No. 1 to the Registration Statement on Form S-1 filed by the Registrant with the SEC on January 21, 2025 and incorporated herein by reference).
    10.6†
    Form of Smithfield Foods, Inc. Omnibus Incentive Plan Stock Option Award Notice and Agreement for IPO awards (filed as Exhibit 10.13 to Amendment No. 1 to the Registration Statement on Form S-1 filed by the Registrant with the SEC on January 21, 2025 and incorporated herein by reference).
    10.7†
    Form of Smithfield Foods, Inc. Omnibus Incentive Plan Restricted Stock Unit Award Notice and Agreement for IPO awards (filed as Exhibit 10.14 to Amendment No. 1 to the Registration Statement on Form S-1 filed by the Registrant with the SEC on January 21, 2025 and incorporated herein by reference).
    10.8†
    Form of Smithfield Foods, Inc. Omnibus Incentive Plan Restricted Stock Unit Award Notice and Agreement for Non-Employee Directors (filed as Exhibit 10.15 to Amendment No. 1 to the Registration Statement on Form S-1 filed by the Registrant with the SEC on January 21, 2025 and incorporated herein by reference).
    10.9†
    Smithfield Foods, Inc. Executive Nonqualified Excess Plan (filed as Exhibit 10.16 to Amendment No. 1 to the Registration Statement on Form S-1 filed by the Registrant with the SEC on January 21, 2025 and incorporated herein by reference).
    10.10†
    Smithfield Foods, Inc. Executive Severance Plan (filed as Exhibit 10.18 to Amendment No. 1 to the Registration Statement on Form S-1 filed by the Registrant with the SEC on January 21, 2025 and incorporated herein by reference).
    10.11
    Credit Agreement, dated as of February 12, 2025, among Smithfield Foods, Inc. and certain subsidiaries, as Borrowers, Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer, the other lenders party hereto, and the arrangers, bookrunners and other agents party thereto (incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K filed February 12, 2025).
    31.1*
    Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
    31.2*
    Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
    32.1**
    Certification of the Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
    32.2**
    Certification of the Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
    50


    101
    The following information from our Quarterly Report on Form 10-Q for the quarter ended March 30, 2025, formatted in iXBRL (inline eXtensible Business Reporting Language): (i) Condensed Consolidated Statements of Income, (ii) Condensed Consolidated Statements of Comprehensive Income, (iii) Condensed Consolidated Balance Sheets, (iv) Condensed Consolidated Statements of Shareholders' Equity, (v) Condensed Condensed Statements of Cash Flows, and (vi) the Notes to Condensed Consolidated Financial Statements.
    101.INSInline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
    101.SCHInline XBRL Taxonomy Extension Schema Document.
    101.CALInline XBRL Taxonomy Extension Calculation Linkbase Document.
    101.DEFInline XBRL Taxonomy Extension Definition Document.
    101.LABInline XBRL Taxonomy Extension Label Linkbase Document.
    101.PREInline XBRL Taxonomy Extension Presentation Linkbase Document.
    104*Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).
    * Filed herewith.
    ** Furnished herewith.
    † Compensatory arrangements for director(s) and/or executive officer(s).


    51


    SIGNATURES
    Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
    SMITHFIELD FOODS, INC.
    /s/ C. Shane Smith         April 29, 2025
    C. Shane Smith
    Chief Executive Officer and Director

    Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
    SIGNATURE
    TITLE
    DATE
    /s/ C. Shane Smith
    Chief Executive Officer and Director
    April 29, 2025
    C. Shane Smith
    (Principal Executive Officer)
    /s/ Mark L. Hall
    Chief Financial Officer
    April 29, 2025
    Mark L. Hall
    (Principal Financial Officer)
    /s/ R. Allen Brobst
    Principal Accounting Officer
    April 29, 2025
    R. Allen Brobst, Jr.
    /s/ Long Wan
    Chairman
    April 29, 2025
    Long Wan
    /s/ Marie T. Gallagher
    Director
    April 29, 2025
    Marie T. Gallagher
    /s/ Lijun Guo
    Director
    April 29, 2025
    Lijun Guo
    /s/ Hank Shenghua He
    Director
    April 29, 2025
    Hank Shenghua He
    /s/ John A. Quelch
    Director
    April 29, 2025
    John A. Quelch
    /s/ Raymond A. Starling
    Director
    April 29, 2025
    Raymond A. Starling
    /s/ Hongwei Wan
    Director
    April 29, 2025
    Hongwei Wan
    /s/ Xiaoming Zhou
    Director
    April 29, 2025
    Xiaoming Zhou

    52
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