(Dollars and shares in millions, unless otherwise noted, except per share data)

•Drive Commercial Excellence | Deliver best-in-class go-to-market execution and commercial delivery;

•Streamline our Cost Infrastructure | Focus on profitability and cost discipline;

•Reshape our Portfolio | Optimize our portfolio to meet the evolving needs of consumers; and

•Unleash our Organization to Win | Inspire, enable, and empower our employees while improving diversity at every level.

The spread of COVID-19 throughout the United States and the international community has had, and will continue to have, an impact on financial markets, economic conditions, and portions of our business and industry.

Net income per common share - assuming dilution $ 5.83 $ 7.79

(A)We use non-GAAP financial measures to evaluate our performance. Refer to "Non-GAAP Financial Measures" in this discussion and analysis for a reconciliation to the comparable generally accepted accounting principles ("GAAP") financial measure.

Net sales excluding divestitures and foreign currency exchange (A)

Amounts may not add due to rounding.

Amounts may not add due to rounding.

Gross profit decreased $438.0, or 14 percent, in 2022, reflecting higher costs, primarily driven by increased commodity and ingredient, transportation, packaging, and manufacturing costs, the noncomparable impact related to divestitures, the unfavorable impact of unsaleable inventory and estimated customer returns related to the Jif peanut butter recall, and unfavorable volume/mix, partially offset by higher net pricing.

Excluding the impact of derivative gains and losses, our overall commodity costs in 2022 were higher than in 2021, primarily due to higher costs for green coffee, protein meals, oils and fats, and grains.

U.S. Retail Pet Foods

U.S. Retail Consumer Foods

International and Away From Home

The following table presents selected cash flow information.

Net cash provided by (used for) operating activities $ 1,136.3 $ 1,565.0 Additions to property, plant, and equipment

(A)Free cash flow is a non-GAAP financial measure used by management to evaluate the amount of cash available for debt repayment, dividend distribution, acquisition opportunities, share repurchases, and other corporate purposes.

Current portion of long-term debt $ - $ 1,152.9 Short-term borrowings

(A)Long-term debt obligations, including current portion, excludes the impact of offering discounts, make-whole payments, and debt issuance costs.

(B)Interest payments consists of the interest payments for our fixed-rate Senior Notes.

The following table reconciles certain non-GAAP financial measures to the comparable GAAP financial measure. See page 28 for a reconciliation of net sales adjusted for certain noncomparable items to the comparable GAAP financial measure.

(A) Special project costs include certain divestiture, acquisition, integration, and restructuring costs, which are recognized in cost of products sold and other special project costs. For more information, see Note 2: Integration and Restructuring Costs and Note 4: Reportable Segments.

CRITICAL ACCOUNTING ESTIMATES AND POLICIES

To test for goodwill impairment, we estimate the fair value of each of our reporting units using both a discounted cash flow valuation technique and a market-based approach. The impairment test incorporates estimates of future cash flows; allocations of certain assets, liabilities, and cash flows among reporting units; future growth rates; terminal value amounts;

•the impact of the COVID-19 pandemic on our business, industry, suppliers, customers, consumers, employees, and communities;

•risks related to the availability of, and cost inflation in, supply chain inputs, including labor, raw materials, commodities, packaging, and transportation;

•the impact of food security concerns involving either our products or our competitors' products, including product recalls;

•risks associated with derivative and purchasing strategies we employ to manage commodity pricing and interest rate risks;

•the availability of reliable transportation on acceptable terms, including any impact of the COVID-19 pandemic;

•our ability to achieve cost savings related to our restructuring and cost management programs in the amounts and within the time frames currently anticipated;

•our ability to generate sufficient cash flow to continue operating under our capital deployment model, including capital expenditures, debt repayment, dividend payments, and share repurchases;

•our ability to implement and realize the full benefit of price changes, and the impact of the timing of the price changes to profits and cash flow in a particular period;

•the success and cost of marketing and sales programs and strategies intended to promote growth in our businesses, including product innovation;

•general competitive activity in the market, including competitors' pricing practices and promotional spending levels;

•our ability to attract and retain key talent;

•the concentration of certain of our businesses with key customers and suppliers, including single-source suppliers of certain key raw materials and finished goods, and our ability to manage and maintain key relationships;

•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 or other long-lived assets;

•the impact of new or changes to existing governmental laws and regulations and their application;

•the outcome of tax examinations, changes in tax laws, and other tax matters;

•a disruption, failure, or security breach of our or our suppliers' information technology systems, including ransomware attacks;

•foreign currency exchange rate and interest rate fluctuations; and

•risks related to other factors described under "Risk Factors" in other reports and statements we have filed with the SEC.

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