MOHAWK INDUSTRIES INC

Previous wording

Over the last several quarters, the Company has, to some extent, offset the impact of lower volume from reduced demand, pricing pressures in competitive markets and higher input costs through productivity gains and benefits from restructuring initiatives. During 2022 and 2023, the Company implemented a number of restructuring actions, productivity initiatives and manufacturing enhancements focused on reducing costs to enhance future performance, including certain facility, asset and product rationalizations and workforce reductions. The Company anticipates that when completed these projects will deliver annual savings of approximately $150 million, with an estimated cost of approximately $215 million. In 2024, the Company announced further restructuring actions, including additional facility, assets and product rationalizations and workforce reductions to further reduce costs and improve the business for the future. The Company anticipates that when completed, these projects will deliver annual savings of approximately $140 million, with an estimated cost of approximately $145 million. In 2025, the Company announced additional restructuring actions, including assets and product rationalizations and workforce reductions to further reduce costs and streamline the business for the future. The Company anticipates that when completed, these projects will deliver annual savings of approximately $10 million, with an estimated cost of approximately $20 million. Execution timelines will vary by project, with some initiatives extending into 2026.

Current wording

Over the last several quarters, the Company has, to some extent, offset the impact of lower volume from reduced demand, pricing pressures in competitive markets and higher input costs through productivity gains and benefits from restructuring initiatives. During 2022 and 2023, the Company implemented a number of restructuring actions, productivity initiatives and manufacturing enhancements focused on reducing costs to enhance future performance, including certain facility, asset and product rationalizations and workforce reductions. The Company anticipates that when completed these projects will deliver annual savings of approximately $150 million, with an estimated cost of approximately $215 million. In 2024, the Company announced further restructuring actions, including additional facility, assets and product rationalizations and workforce reductions to further reduce costs and improve the business for the future. The Company anticipates that when completed, these projects will deliver annual savings of approximately $140 million, with an estimated cost of approximately $145 million. In 2025, the Company announced additional restructuring actions, including assets and product rationalizations and workforce reductions to further reduce costs and streamline the business for the future. The Company anticipates that when completed, these projects will deliver annual savings of approximately $50 million, with an estimated cost of approximately $30 million. Execution timelines will vary by project, with some initiatives extending into 2026.

Previous wording

The Company continues to actively monitor trade policy and tariff announcements, including various executive orders issued by the current U.S. presidential administration. Due to its global footprint and manufacturing operations across 19 countries, the Company is generally able to provide its customers with regional supply. In addition, certain products the Company manufactures in Mexico are exempt from recent tariffs announced against Mexico, as such products are compliant with the United States-Mexico-Canada trading agreement. However, certain of the Company’s sourcing and upstream and downstream supply chain processes occur outside the U.S. or with vendors, suppliers, or customers located outside the U.S. The Company has begun to take steps to mitigate the implemented tariffs through managing inventory of sourced products, adjusting prices and optimizing its supply chain. At a 10% baseline tariff rate, the Company expects to incur an annualized cost of approximately $50 million related to such tariffs. On July 7, 2025, the U.S. government issued an executive order establishing a deadline of August 1, 2025, for finalizing tariffs on individual trading partners either through negotiations or by decree at amounts that may or may not be aligned with those announced on April 2, 2025 while also announcing specific tariffs on key trading partners such as the EU, Canada and a number of countries in Asia. The Company continues to monitor changing tariff levels and adjust its strategies to mitigate their impact as trade policy evolves. However, the duration, magnitude and scope of any additional tariffs, trade restrictions, retaliatory or other measures are difficult to predict, including any related impacts to consumer demand, along with the extent (if any) to which the Company will be able to offset the impacts of such actions through mitigation efforts. These tariff actions, retaliatory measures, or other trade restrictions, could materially and adversely impact the Company’s business, financial condition, results of operations, and prospects.

Current wording

The Company continues to actively monitor trade policy and tariff announcements, including various executive orders issued by the current U.S. presidential administration. Due to its global footprint and manufacturing operations across 19 countries, the Company is generally able to provide its customers with regional supply. However, the current tariff policies have impacted certain of the Company’s sourcing and upstream and downstream supply chain processes occurring outside the U.S. and certain vendors, suppliers, and customers located outside the U.S. Based on recent changes, engineered wood and laminate imports will now be subject to reciprocal tariffs like other flooring categories, which should benefit domestically produced products. The Company has begun to take steps to mitigate the implemented tariffs through managing inventory of sourced products, adjusting prices as the tariff trade policy evolves and optimizing its supply chain. At a 10% baseline tariff rate, the Company expects to incur an annualized cost of approximately $50 million related to such tariffs. The Company continues to monitor changing tariff levels and adjust its strategies to mitigate their impact as trade policy evolves. However, the duration, magnitude and scope of any additional tariffs, trade restrictions, retaliatory or other measures are difficult to predict, including any related impacts to consumer demand, along with the extent (if any) to which the Company will be able to offset the impacts of such actions through mitigation efforts. These tariff actions, retaliatory measures, or other trade restrictions, could materially and adversely impact the Company’s business, financial condition, results of operations, and prospects.

Previous wording

In 2025, the Company plans to invest approximately $500 million focused on completing capacity expansion projects and targeted initiatives that will drive cost reduction while improving operational performance.

Current wording

In 2025, the Company plans to invest approximately $480 million focused on completing capacity expansion projects and targeted initiatives that will drive cost reduction while improving operational performance.

Previous wording

For the three months ended June 28, 2025, the net earnings attributable to the Company were $146.5 million compared to the net earnings attributable to the Company of $157.4 million for the three months ended June 29, 2024. The change was primarily attributable to higher input costs; lower sales volume; the unfavorable impact of temporary plant shutdowns, partially offset by productivity gains; lower restructuring, acquisition and integration-related, and other costs and lower income tax expenses.

Current wording

For the three months ended September 27, 2025, the net earnings attributable to the Company were $108.8 million compared to the net earnings attributable to the Company of $162.0 million for the three months ended September 28, 2024. The change was primarily attributable to higher input costs, higher legal settlements, reserves and fees, higher restructuring, acquisition and integration-related, and other costs, the unfavorable net impact of price and product mix and the unfavorable impact of temporary plant shutdowns, partially offset by productivity gains and lower income tax expenses.

Previous wording

For the six months ended June 28, 2025, the net earnings attributable to the Company was $219.0 million compared to the net earnings attributable to the Company of $262.4 million for the six months ended June 29, 2024. The change was primarily attributable to higher input costs; the unfavorable impact of temporary plant shutdowns, lower sales volume and order management system conversion, partially offset by productivity gains and lower income tax expenses. The Company believes that a number of circumstances may influence trends in 2025, including the impact of inflation and material availability due to disruptions in the global supply chain, but the extent and duration of such impact cannot be predicted.

Current wording

For the nine months ended September 27, 2025, the net earnings attributable to the Company was $327.9 million compared to the net earnings attributable to the Company of $424.5 million for the nine months ended September 28, 2024. The change was primarily attributable to higher input costs, the unfavorable impact of temporary plant shutdowns, lower sales volume, order management system conversion, higher restructuring, acquisition and integration-related, and other costs and the unfavorable net impact of price and product mix, partially offset by productivity gains and lower income tax expenses. The Company believes that a number of circumstances may influence trends in 2025, including the impact of inflation and material availability due to disruptions in the global supply chain, but the extent and duration of such impact cannot be predicted.

Previous wording

For the six months ended June 28, 2025, the Company generated $210.0 million of cash from operating activities. As of June 28, 2025, the Company had cash and cash equivalents of $546.7 million of which $295.4 million was in the U.S. and $251.3 million was in foreign countries.

Current wording

For the nine months ended September 27, 2025, the Company generated $596.6 million of cash from operating activities. As of September 27, 2025, the Company had cash and cash equivalents of $516.2 million of which $285.6 million was in the U.S. and $230.6 million was in foreign countries.

Previous wording

Global Ceramic—Net sales for the three months ended June 28, 2025, were $1,120.9 million compared to net sales of $1,115.6 million for the three months ended June 29, 2024. The change was primarily attributable to the favorable net impact of price and product mix of approximately $42 million and the favorable net impact of foreign exchange rates of approximately $5 million, partially offset by lower sales volume of approximately $30 million and fewer shipping days for the quarter ended June 28, 2025 of approximately $12 million.

Current wording

Net sales for the three months ended September 27, 2025, were $2,757.9 million compared to net sales of $2,719.0 million for the three months ended September 28, 2024. The change was primarily attributable to the favorable net impact of foreign exchange rates of approximately $61 million, partially offset by lower sales volume of approximately $13 million and fewer shipping days for the quarter ended September 27, 2025, of approximately $11 million.

Previous wording

Global Ceramic—Net sales for the six months ended June 28, 2025, were $2,114.7 million compared to net sales of $2,160.4 million for the six months ended June 29, 2024. The change was primarily attributable to lower sales volume of approximately $41 million; the impact of fewer shipping days for the six months ended June 28, 2025 of approximately $40 million and the unfavorable net impact of foreign exchange rates of approximately $30 million, partially offset by the favorable net impact of price and product mix of approximately $65 million.

Current wording

Global Ceramic—Net sales for the three months ended September 27, 2025, were $1,104.7 million compared to net sales of $1,058.0 million for the three months ended September 28, 2024. The change was primarily attributable to the favorable net impact of foreign exchange rates of approximately $28 million and the favorable net impact of price and product mix of approximately $26 million.

Previous wording

Flooring NA—Net sales for the three months ended June 28, 2025, were $946.8 million compared to net sales of $958.5 million for the three months ended June 29, 2024. The change was primarily attributable to lower sales volume of approximately $25 million, partially offset by the favorable net impact of price and product mix of approximately $14 million.

Current wording

Flooring NA—Net sales for the three months ended September 27, 2025, were $936.8 million compared to net sales of $974.0 million for the three months ended September 28, 2024. The change was primarily attributable to lower sales volume of approximately $34 million.

Previous wording

Gross profit for the three months ended June 28, 2025, was $714.4 million compared to gross profit of $723.8 million for the three months ended June 29, 2024. The change was primarily attributable to higher input costs of approximately $44 million; lower sales volume of approximately $22 million and the unfavorable impact of temporary plant shutdowns of approximately $18 million, partially offset by productivity gains of approximately $47 million; the favorable net impact of foreign exchange rates of approximately $15 million and lower restructuring, acquisition and integration-related, and other costs of approximately $9 million.

Current wording

Gross profit for the three months ended September 27, 2025, was $654.9 million compared to gross profit of $692.6 million for the three months ended September 28, 2024. The change was primarily attributable to higher input costs of approximately $39 million; higher restructuring, acquisition and integration-related, and other costs of approximately $25 million; the unfavorable net impact of price and product mix of approximately $20 million and the unfavorable impact of temporary plant shutdowns of approximately $14 million, partially offset by productivity gains of approximately $57 million.

Previous wording

Global Ceramic—Operating income was $88.2 million for the three months ended June 28, 2025, compared to operating income of $83.1 million for the three months ended June 29, 2024. The change was primarily attributable to the favorable net impact of price and product mix of approximately $27 million; productivity gains of approximately $17 million and lower restructuring, acquisition and integration-related, and other costs of approximately $10 million, partially offset by higher input costs of approximately $36 million; lower sales volume of approximately $16 million.

Current wording

Global Ceramic—Operating income was $71.6 million for the three months ended September 27, 2025, compared to operating income of $83.4 million for the three months ended September 28, 2024. The change was primarily attributable to higher input costs of approximately $31 million; higher restructuring, acquisition and integration-related, and other costs of approximately $11 million, partially offset by productivity gains of approximately $24 million.

Previous wording

Flooring NA—Operating income was $52.5 million for the three months ended June 28, 2025, compared to operating income of $78.3 million for the three months ended June 29, 2024. The change was primarily attributable to higher input costs of approximately $23 million; higher restructuring, acquisition and integration-related, and other costs of approximately $13 million; the unfavorable impact of temporary plant shutdowns of approximately $10 million and the unfavorable net impact of price and product mix of approximately $9 million, partially offset by productivity gains of approximately $32 million.

Current wording

Flooring NA—Operating income was $54.4 million for the three months ended September 27, 2025, compared to operating income of $73.0 million for the three months ended September 28, 2024. The change was primarily attributable to higher input costs of approximately $22 million; the unfavorable impact of temporary plant shutdowns of approximately $13 million and the unfavorable net impact of price and product mix of approximately $10 million, partially offset by productivity gains of approximately $29 million.

Previous wording

Flooring ROW—Operating income was $124.5 million for the six months ended June 28, 2025 compared to operating income of $136.5 million for the six months ended June 29, 2024. The change was primarily attributable to the unfavorable net impact of price and product mix of approximately $27 million, partially offset by lower restructuring, acquisition and integration-related, and other costs of approximately $16 million.

Current wording

Flooring ROW—Operating income was $43.8 million for the three months ended September 27, 2025, compared to operating income of $67.8 million for the three months ended September 28, 2024. The change was primarily attributable to the unfavorable net impact of price and product mix of approximately $18 million; higher restructuring, acquisition and integration-related, and other costs of approximately $11 million.

Previous wording

Interest expense was $5.2 million for the three months ended June 28, 2025, compared to interest expense of $12.6 million for the three months ended June 29, 2024. The change was primarily attributable to strong cash flow, resulting in lower debt.

Current wording

Interest expense was $5.0 million for the three months ended September 27, 2025, compared to interest expense of $11.2 million for the three months ended September 28, 2024. The change was primarily attributable to strong cash flow, resulting in lower debt.

Previous wording

Other income and expense, net was expense of $3.0 million for the three months ended June 28, 2025, compared to other expense of $1.6 million for the three months ended June 29, 2024. Other income and expense, net did not significantly change for the three months ended June 28, 2025, from the three months ended June 29, 2024.

Current wording

Other income and expense, net was income of $0.4 million for the three months ended September 27, 2025, compared to other income of $0.7 million for the three months ended September 28, 2024. Other income and expense, net did not significantly change for the three months ended September 27, 2025, from the three months ended September 28, 2024.

Previous wording

For the three months ended June 28, 2025, the Company recorded income tax expense of $34.0 million on earnings before income taxes of $180.5 million, for an effective tax rate of 18.8%. For the three months ended June 29, 2024, the Company recorded income tax expense of $42.3 million on earnings before income taxes of $199.8 million, for an effective tax rate of 21.2%. The decrease in the effective tax rate was primarily driven by the Company’s geographic dispersion of profits and losses for the respective periods and a prior period Italian tax benefit granted during the three months ended June 28, 2025, partially offset by a larger increase in unrecognized tax benefits during the three months ended June 28, 2025.

Current wording

For the three months ended September 27, 2025, the Company recorded income tax expense of $23.3 million on earnings before income taxes of $132.1 million, for an effective tax rate of 17.6%. For the three months ended September 28, 2024, the Company recorded income tax expense of $39.8 million on earnings before income taxes of $201.8 million, for an effective tax rate of 19.7%. The decrease in the effective tax rate was primarily driven by the Company’s geographic dispersion of profits and losses for the respective periods and prior period tax expenses recognized during the three months ended September 28, 2024, partially offset by an increase in unrecognized tax benefits during the three months ended September 27, 2025.

Previous wording

Six Months Ended June 28, 2025, as compared with Six Months Ended June 29, 2024

Current wording

Nine Months Ended September 27, 2025, as compared with Nine Months Ended September 28, 2024

Previous wording

Flooring NA—Net sales for the six months ended June 28, 2025, were $1,809.2 million compared to net sales of $1,858.7 million for the six months ended June 29, 2024. The change was primarily attributable to the impact of the order management system conversion of approximately $50 million; the impact of fewer shipping days for the six months ended June 28, 2025 of approximately $28 million, partially offset by the favorable net impact of price and product mix of approximately $30 million.

Current wording

Flooring NA—Net sales for the nine months ended September 27, 2025, were $2,746.0 million compared to net sales of $2,832.7 million for the nine months ended September 28, 2024. The change was primarily attributable to the impact of the order management system conversion of approximately $50 million; lower sales volume of approximately $34 million and fewer shipping days for the nine months ending September 27, 2025, of approximately $28 million, partially offset by the favorable net impact of price and product mix of approximately $27 million.

Previous wording

Flooring ROW—Net sales for the three months ended June 28, 2025, were $734.4 million compared to net sales of $727.2 million for the three months ended June 29, 2024. The change was primarily attributable to the favorable net impact of foreign exchange rates of approximately $29 million, partially offset by the unfavorable net impact of price and product mix of approximately $20 million.

Current wording

Flooring ROW—Net sales for the nine months ended September 27, 2025, were $2,120.4 million compared to net sales of $2,148.6 million for the nine months ended September 28, 2024. The change was primarily attributable to the unfavorable net impact of price and product mix of approximately $49 million and fewer shipping days for the nine months ending September 27, 2025, of approximately $33 million, partially offset by the favorable net impact of foreign exchange rates of approximately $42 million.

Previous wording

Gross profit for the six months ended June 28, 2025, was $1,297.7 million compared to gross profit of $1,373.3 million for the six months ended June 29, 2024. The change was primarily attributable to higher input costs of approximately $73 million; lower sales volume of approximately $34 million; the unfavorable impact of temporary plant shutdowns of approximately $31 million and order management system conversion of approximately $26 million, partially offset by productivity gains of approximately $89 million.

Current wording

Gross profit for the nine months ended September 27, 2025, was $1,952.5 million compared to gross profit of $2,065.9 million for the nine months ended September 28, 2024. The change was primarily attributable to higher input costs of approximately $113 million; the unfavorable impact of temporary plant shutdowns of approximately $45 million; lower sales volume of approximately $44 million; higher restructuring, acquisition and integration-related, and other costs of approximately $36 million and order management system conversion of approximately $26 million, partially offset by productivity gains of approximately $146 million.

Previous wording

Selling, general and administrative expenses for the three months ended June 28, 2025, were $525.7 million compared to $509.8 million for the three months ended June 29, 2024. Selling, general and administrative expenses did not significantly change as a percentage of net sales for the three months ended June 28, 2025, compared to the three months ended June 29, 2024.

Current wording

Selling, general and administrative expenses for the nine months ended September 27, 2025, were $1,531.0 million compared to $1,493.0 million for the nine months ended September 28, 2024. Selling, general and administrative expenses did not significantly change as a percentage of net sales for the nine months ended September 27, 2025, compared to the nine months ended September 28, 2024.

Previous wording

Flooring NA—Operating income was $61.8 million for the six months ended June 28, 2025, compared to operating income of $123.3 million for the six months ended June 29, 2024. The change was primarily attributable to higher input costs of approximately $42 million; order management system conversion of approximately $30 million and higher restructuring, acquisition and integration-related, and other costs of approximately $28 million and the unfavorable impact of temporary plant shutdowns of approximately $16 million, partially offset by productivity gains of approximately $58 million.

Current wording

Operating income for the nine months ended September 27, 2025, was $421.5 million compared to operating income of $572.9 million for the nine months ended September 28, 2024. The change was primarily attributable to higher input costs of approximately $156 million; the unfavorable impact of temporary plant shutdowns of approximately $45 million; higher legal settlements, reserves and fees, and restructuring, acquisition and integration-related, and other costs of approximately $42 million; lower sales volume of approximately $40 million; order management system conversion of approximately $30 million and the unfavorable net impact of price and product mix of approximately $24 million, partially offset by productivity gains of approximately $170 million.

Previous wording

Flooring ROW—Operating income was $65.8 million for the three months ended June 28, 2025, compared to operating income of $65.6 million for the three months ended June 29, 2024. The change was primarily attributable to lower restructuring, acquisition and integration-related, and other costs of approximately $15 million and productivity gains of approximately $8 million, partially offset by the unfavorable net impact of price and product mix of approximately $19 million.

Current wording

Flooring ROW—Operating income was $168.3 million for the nine months ended September 27, 2025, compared to operating income of $204.3 million for the nine months ended September 28, 2024. The change was primarily attributable to the unfavorable net impact of price and product mix of approximately $45 million and lower sales volume of approximately $11 million, partially offset by productivity gains of approximately $19 million.

Previous wording

Interest expense was $11.6 million for the six months ended June 28, 2025, compared to interest expense of $27.5 million for the six months ended June 29, 2024. The change was primarily attributable to strong cash flow and prepayments of the U.S. and European portions of the Term Loan Facility during the six months ended June 29, 2024, resulting lower debt.

Current wording

Interest expense was $16.6 million for the nine months ended September 27, 2025, compared to interest expense of $38.6 million for the nine months ended September 28, 2024. The change was primarily attributable to strong cash flow and prepayments of the U.S. and European portions of the Term Loan Facility during the nine months ended September 28, 2024, resulting in lower debt.

Previous wording

Other income and expense, net was an expense of $2.7 million for the six months ended June 28, 2025, compared to other expense of $0.5 million for the six months ended June 29, 2024. Other income and expense, net did not significantly change for the six months ended June 28, 2025, from the six months ended June 29, 2024.

Current wording

Other income and expense, net was an expense of $2.2 million for the nine months ended September 27, 2025, compared to other income of $0.2 million for the nine months ended September 28, 2024. Other income and expense, net did not significantly change for the nine months ended September 27, 2025, from the nine months ended September 28, 2024.

Previous wording

For the six months ended June 28, 2025, the Company recorded income tax expense of $51.5 million on earnings before income taxes of $270.5 million, for an effective tax rate of 19.0%. For the six months ended June 29, 2024, the Company recorded income tax expense of $70.1 million on earnings before income taxes of $332.6 million, for an effective tax rate of 21.1%. The decrease in the effective tax rate was primarily driven by the Company’s geographic dispersion of profits and losses for the respective periods and a tax benefit related to a prior period adjustment to deferred taxes during the six months ended June 28, 2025, partially offset by a larger increase in unrecognized tax benefits during the six months ended June 28, 2025.

Current wording

For the nine months ended September 27, 2025, the Company recorded income tax expense of $74.8 million on earnings before income taxes of $402.7 million, for an effective tax rate of 18.6%. For the nine months ended September 28, 2024, the Company recorded income tax expense of $109.9 million on earnings before income taxes of $534.5 million, for an effective tax rate of 20.6%. The decrease in the effective tax rate was primarily driven by the Company’s geographic dispersion of profits and losses for the respective periods and a tax benefit related to a prior period adjustment to deferred taxes during the nine months ended September 27, 2025, partially offset by an increase in unrecognized tax benefits during the nine months ended September 27, 2025.

Previous wording

Net cash provided by operating activities in the first six months of 2025 was $210.0 million, compared to net cash provided by operating activities of $417.3 million in the first six months of 2024. The change was primarily attributable to the change in accounts receivable; lower net earnings and change in accounts payable.

Current wording

Net cash provided by operating activities in the first nine months of 2025 was $596.6 million, compared to net cash provided by operating activities of $736.9 million in the first nine months of 2024. The change was primarily attributable to the change in accounts receivable; lower net earnings; change in accounts payable and change in inventories.

Previous wording

Net cash used in investing activities in the first six months of 2025 was $169.3 million compared to net cash used in investing activities of $178.2 million in the first six months of 2024. The amount of net cash used in investing activities did not significantly change for the six months ended June 28, 2025, from the six months ended June 29, 2024.

Current wording

Net cash used in investing activities in the first nine months of 2025 was $245.6 million compared to net cash used in investing activities of $293.6 million in the first nine months of 2024. The change was primarily attributable to the decrease in capital expenditures of $48 million for the nine months ended September 27, 2025, compared to the nine months ended September 28, 2024.

Previous wording

Net cash used in financing activities in the first six months of 2025 was $205.1 million compared to net cash used in financing activities of $381.5 million in the first six months of 2024. The change was primarily attributable to prior year payments of term loan facility of $912.3 million; higher net proceeds from the Senior Credit Facility of $92.4 million and lower share repurchase of $19.7 million, partially offset by the lower net proceeds from commercial paper of $847.3 million (year to date net repayment of $144.5 million in 2025 as compared to net proceeds of $702.8 million in 2024, year to date).

Current wording

Net cash used in financing activities in the first nine months of 2025 was $532.4 million compared to net cash used in financing activities of $651.6 million in the first nine months of 2024. The change was primarily attributable to prior year payments of term loan facility of $912.3 million; higher net proceeds from the Senior Credit Facility of $61.2 million, partially offset by the lower net proceeds from commercial paper of $831.1 million (year to date net repayment of $415.4 million in 2025 as compared to net proceeds of $415.7 million in 2024, year to date) and higher share repurchase of $20.8 million.

Previous wording

As of June 28, 2025, the Company had cash of $546.7 million, of which $295.4 million was in the United States and $251.3 million was in foreign countries. The Company plans to permanently reinvest the cash held outside the United States. The Company believes that its cash and cash equivalents on hand, cash generated from operations and availability under its existing credit facilities will be sufficient to meet its capital expenditure, working capital and debt servicing requirements over at least the next twelve months. The Company continually evaluates its projected needs and may conduct additional debt financings, subject to market conditions, to increase its liquidity and to take advantage of attractive financing opportunities.

Current wording

As of September 27, 2025, the Company had cash of $516.2 million, of which $285.6 million was in the United States and $230.6 million was in foreign countries. The Company plans to permanently reinvest the cash held outside the United States. The Company believes that its cash and cash equivalents on hand, cash generated from operations and availability under its existing credit facilities will be sufficient to meet its capital expenditure, working capital and debt servicing requirements over at least the next twelve months. The Company continually evaluates its projected needs and may conduct additional debt financings, subject to market conditions, to increase its liquidity and to take advantage of attractive financing opportunities.

Previous wording

On July 24, 2025, the Company’s Board of Directors approved a new share repurchase program, authorizing the Company to repurchase up to $500 million of its common stock (the “2025 Share Repurchase Program”). For the three months ended June 28, 2025, the Company purchased $42.1 million of its common stock under its existing share repurchase program announced in February 2022 (the “2022 Share Repurchase Program”). As of June 28, 2025, there remained $0.2 million authorized under the 2022 Share Repurchase Program.

Current wording

On July 24, 2025, the Company’s Board of Directors approved a new share repurchase program, authorizing the Company to repurchase up to $500 million of its common stock (the “2025 Share Repurchase Program”). On February 10, 2022, the Company’s Board of Directors approved a share repurchases authorization in the amount of $500 million (the “2022 Share Repurchase Program,” and together with the 2025 Share Repurchase Program, the “Share Repurchase Programs”). For the three months ended September 27, 2025, the Company purchased $40.2 million of its common stock under the Share Repurchase Programs. As of September 27, 2025, there remained $459.9 million authorized under the 2025 Share Repurchase Program. The 2022 Share Repurchase Program was completed in the quarter ended September 27, 2025.