Item 7A. QUANTITATIVE

AND QUALITATIVE

DISCLOSURES ABOUT MARKET RISK

We

are

exposed

to

market

risk

stemming

from

changes

in

interest

and

foreign

exchange

rates

and

commodity

and

equity

prices.

Changes

in

these

factors

could

cause

fluctuations

in

our

earnings

and

cash

flows.

In

the

normal

course

of

business,

we

actively

manage

our

exposure

to

these market

risks

by entering

into various

hedging

transactions,

authorized

under

established

policies

that

place controls

on these

activities. The

counterparties

in these

transactions are

generally

highly rated

institutions. We

establish

credit

limits for

each counterparty.

Our hedging

transactions include

but are

not limited

to a variety

of derivative

financial instruments.

For

information

on

interest

rate,

foreign

exchange,

commodity

price,

and

equity

instrument

risk,

please

see

Note

to

the

Consolidated

Financial Statements in Item 8 of this report.

VALUE

AT RISK

The

estimates

in

the

table below

are

intended

to measure

the

maximum

potential

fair value

we

could

lose

in one

day

from

adverse

changes

in

market

interest

rates,

foreign

exchange

rates,

commodity

prices,

and

equity

prices

under

normal

market

conditions.

A

Monte Carlo

value-at-risk (VAR)

methodology was

used to

quantify the

market risk

for our

exposures. The

models assumed

normal

market conditions and used a 95 percent confidence level.

The

VAR

calculation

used

historical

interest

and

foreign

exchange

rates,

and

commodity

and

equity

prices

from

the

past

year

to

estimate the

potential volatility

and correlation

of these

rates in

the future.

The market

data were

drawn from

the RiskMetrics™

data

set.

The

calculations

are

not

intended

to

represent

actual

losses

in

fair

value

that

we

expect

to

incur.

Further,

since

the

hedging

instrument (the derivative) inversely correlates

with the underlying exposure, we would

expect that any loss or gain in the fair

value of

our

derivatives

would

be

generally

offset

by

an

increase

or

decrease

in

the

fair

value

of

the

underlying

exposure.

The

positions

included

in the

calculations were:

debt; investments;

interest rate

swaps; foreign

exchange forwards;

commodity swaps,

futures, and

options; and

equity instruments.

The calculations

do not

include the

underlying foreign

exchange and

commodities or

equity-related

positions that are offset by these market-risk-sensitive instruments.

The table below

presents the estimated maximum

potential VAR

arising from a

one-day loss in

fair value for

our interest rate, foreign

currency, commodity,

and equity market-risk-sensitive instruments outstanding as of May 25,

In Millions

May 25, 2025

Average During

Fiscal 2025

May 26, 2024

Analysis of Change

Interest rate instruments

$

$

$

Decrease in interest rates

Foreign currency instruments

Increase in rate volatility

Commodity instruments

Immaterial

Equity instruments

Immaterial

CAUTIONARY STATEMENT

RELEVANT

TO FORWARD

-LOOKING INFORMATION

FOR THE PURPOSE OF “SAFE

HARBOR” PROVISIONS OF THE PRIVATE

SECURITIES LITIGATION

REFORM ACT OF 1995

This report

contains or

incorporates by

reference

forward-looking

statements within

the meaning

of the

Private Securities

Litigation

Reform Act

of 1995

that are

based on

our current

expectations and

assumptions. We

also may

make written

or oral

forward-looking

statements, including statements contained in our filings with the

SEC and in our reports to stockholders.

The words or

phrases “will likely

result,” “are expected

to,” “may continue,”

“is anticipated,” “estimate,”

“plan,” “project,” or

similar

expressions identify

“forward-looking statements”

within the

meaning of

the Private

Securities Litigation

Reform Act

of 1995.

Such

statements are

subject to

certain risks

and uncertainties

that could

cause actual

results to

differ

materially from

historical results

and

those currently anticipated or projected. We

caution you not to place undue reliance on any such forward-looking statements.

In connection

with the “safe

harbor” provisions

of the Private

Securities Litigation

Reform Act of

1995, we are

identifying important

factors

that could

affect

our financial

performance

and could

cause our

actual results

in future

periods

to differ

materially

from any

current opinions or statements.

Our future results could

be affected by a

variety of factors, such

as: imposed and threatened

tariffs by the United

States and its trading

partners; disruptions

or inefficiencies

in the

supply chain;

competitive

dynamics in

the consumer

foods industry

and the

markets for

our

products,

including

new

product

introductions,

advertising

activities,

pricing

actions,

and

promotional

activities

of

our

competitors;

economic

conditions,

including

changes

in

inflation

rates,

interest

rates,

tax

rates,

tariffs,

or

the

availability

of

capital;

product development

and innovation;

consumer acceptance

of new products

and product improvements;

consumer reaction

to pricing

actions and

changes in

promotion levels;

acquisitions or

dispositions of

businesses or

assets; changes

in capital

structure; changes

in

the legal and

regulatory environment, including

tax legislation, labeling

and advertising regulations,

and litigation; impairments

in the

carrying value

of goodwill, other

intangible assets,

or other long

-lived assets, or

changes in the

useful lives of

other intangible assets;

changes

in accounting

standards

and

the impact

of critical

accounting

estimates; product

quality

and

safety issues,

including

recalls

and

product

liability;

changes

in

consumer

demand

for

our

products;

effectiveness

of

advertising,

marketing,

and

promotional

programs; changes in

consumer behavior,

trends, and preferences, including

weight loss trends; consumer

perception of health-related

issues, including obesity; consolidation

in the retail environment; changes

in purchasing and inventory

levels of significant customers;

fluctuations

in

the

cost

and

availability

of

supply

chain

resources,

including

raw

materials,

packaging,

energy,

and

transportation;

effectiveness of

restructuring,

transformation, and

cost saving

initiatives; volatility

in the

market value

of derivatives

used to

manage

price risk for certain

commodities; benefit plan expenses

due to changes in plan

asset values and discount

rates used to determine plan

liabilities; failure or

breach of our

information technology systems;

foreign economic

conditions, including

currency rate fluctuations;

and political unrest in foreign markets and economic uncertainty

due to terrorism or war.

You

should also consider the risk factors that we identify in Item 1A of this report, which could also

affect our future results.

We undertake

no obligation to publicly revise any forward-looking

statements to reflect events or circumstances

after the date of those

statements or to reflect the occurrence of anticipated or unanticipated events.