CENTRAL GARDEN & PET CO

Previous wording

•Gross profit increased $26 million from the prior year quarter, while gross margin increased 30 basis points to 33.1%.

Current wording

•Gross profit decreased $15 million from the prior year quarter, while gross margin increased 130 basis points to 35.9%.

Previous wording

•Selling, general and administrative expense increased $6 million from the prior year quarter to $186 million and decreased as a percentage of net sales to 20.5%.

Current wording

•Selling, general and administrative expense decreased $6 million from the prior year quarter to $191 million and increased as a percentage of net sales to 21.7%. On a non-GAAP basis, selling, general and administrative expense decreased $11 million and increased as a percentage of net sales to 20.6%.

Previous wording

•Net income in the second quarter of fiscal 2026 was $79 million, or $1.28 per diluted share, compared to $64 million, or $0.98 per diluted share, or $68 million, or $1.04 per diluted share on a non-GAAP basis.

Current wording

•Net income in the third quarter of fiscal 2026 was $90 million, or $1.45 per diluted share, compared to $95 million, or $1.52 per diluted share. On a non-GAAP basis, net income in the third quarter of fiscal 2026 was $96 million, or $1.54 per diluted share, compared to $98 million, or $1.56 per diluted share in the third quarter of fiscal 2025.

Previous wording

On April 13, 2026, we entered into a strategic partnership with Phillips Pet Food & Supplies, a leading national distributor of pet products, to form a new pet distribution business.

Current wording

On April 13, 2026, we entered into a strategic partnership with Phillips Pet Food & Supplies ("Phillips"), a leading national distributor of pet products, to form a new pet distribution business. The new business will operate under the Phillips brand as an independent entity focused on scaling a differentiated, high-performance nationwide distribution platform.

Previous wording

Selling, general and administrative expenses increased $5.9 million, or 3.3%, to $185.6 million for the three months ended March 28, 2026. As a percentage of net sales, selling, general and administrative expenses decreased to 20.5% for the three months ended March 28, 2026, compared to 21.6% in the comparable prior year quarter. Selling, general and administrative expenses increased in both corporate and Garden, while Pet was relatively flat as compared to the prior year quarter.

Current wording

Selling, general and administrative expenses decreased $5.8 million, or 3.0%, to $191.1 million for the three months ended June 27, 2026. As a percentage of net sales, selling, general and administrative expenses increased to 21.7% for the three months ended June 27, 2026, compared to 20.5% in the comparable prior year quarter. Selling, general and administrative expenses decreased in the Pet segment partially offset by an increase at corporate. Excluding the facility closure costs and business exit costs in both quarters, non-GAAP selling, general and administrative expense decreased $11.1 million, and selling, general and administrative expense as a percentage of net sales was 20.6% as compared to 20.1% in the prior year quarter.

Previous wording

Warehouse and administrative expense increased $0.3 million, to $98.4 million for the three months ended March 28, 2026 from $98.1 million for the three months ended March 29, 2025. Increased corporate expense was partially offset by a decrease in Pet warehouse and administrative expense. Corporate expenses increased $3.8 million due primarily to higher third-party provider expense, driven by M&A activity expenditures. Corporate expenses are included within administrative expense and relate to the costs of unallocated executive, administrative, finance, legal, human resources, and information technology functions.

Current wording

Warehouse and administrative expense decreased $3.4 million, to $99.5 million for the three months ended June 27, 2026 from $102.9 million for the three months ended June 28, 2025. Both Pet and Garden had lower warehouse and administrative expense partially offset by an increase in corporate expense. Pet warehouse and administrative expense decreased due to the divestiture of the pet distribution business while Garden had lower expense due primarily to lower facility closure charges in the current year quarter and lower variable compensation amounts. Corporate expenses increased $7.0 million due primarily to higher third-party provider expense, driven by M&A activity expenditures and higher payroll costs related to our investment in data improvement and AI readiness. Corporate expenses are included within administrative expense and relate to the costs of unallocated executive, administrative, finance, legal, human resources, and information technology functions.

Previous wording

Corporate operating expense increased $3.8 million, or 14.7%, to $29.9 million for the three months ended March 28, 2026, due primarily to higher third party provider expenditures.

Current wording

Corporate operating expense increased $7.0 million, or 28.9%, to $31.0 million for the three months ended June 27, 2026, due primarily to higher third-party provider expenses, driven by M&A activity, expenditures, and higher payroll costs related to our investment in data improvement and AI readiness.

Previous wording

Net interest expense decreased $0.3 million, or 2.9%, from $9.4 million for the quarter ended March 29, 2025, to $9.1 million for the quarter ended March 28, 2026. The decrease was due to lower interest expense partially offset by a minor decrease in interest income. Debt outstanding on March 28, 2026 and March 29, 2025 was $1.2 billion.

Current wording

Net interest expense decreased $1.0 million, or 12.2%, from $8.8 million for the quarter ended June 28, 2025, to $7.8 million for the quarter ended June 27, 2026. The decrease was due primarily to higher interest income as a result of higher cash balances during the quarter. Debt outstanding on June 27, 2026 and June 28, 2025 was $1.2 billion.

Previous wording

Other income is comprised of income or losses from investments accounted for under the equity method of accounting and foreign currency exchange gains and losses. Other income (expense) decreased $1.1 million to an expense of $0.4 million for the quarter ended March 28, 2026 as compared to income of $0.7 million in the prior quarter. The decrease in other income (expense) was due primarily to foreign currency losses in the current year quarter as compared to foreign currency gains in the prior year quarter.

Current wording

Other income is comprised of income or losses from investments accounted for under the equity method of accounting and foreign currency exchange gains and losses. Other income increased $0.4 million to income of $1.5 million for the quarter ended June 27, 2026 as compared to income of $1.1 million in the prior quarter. The increase in other income was due primarily to the gain in the current quarter from the disposition of the pet distribution business partially offset by the earnings loss from the newly formed partnership.

Previous wording

Net income in the second quarter of fiscal 2026 was $79.4 million, or $1.28 per diluted share, compared to $63.6 million, or $0.98 per diluted share, in the second quarter of fiscal 2025. On a non-GAAP basis, which excludes the impact of charges related to facility closures, net income in the second quarter of fiscal 2026 was $79.6 million, or $1.29 per diluted share, compared to $67.7 million, or $1.04 per diluted share, in the second quarter of fiscal 2025.

Current wording

Net income in the third quarter of fiscal 2026 was $89.9 million, or $1.45 per diluted share, compared to $95.0 million, or $1.52 per diluted share, in the third quarter of fiscal 2025. On a non-GAAP basis, which excludes the impact of charges related to facility closures, business exits and tariff refunds received, net income in the third quarter of fiscal 2026 was $95.6 million, or $1.54 per diluted share, compared to $97.9 million, or $1.56 per diluted share, in the third quarter of fiscal 2025.

Previous wording

Pet net sales increased $11.4 million, or 1.3%, to $892.6 million for the six months ended March 28, 2026. The increase in Pet net sales was due primarily to higher sales in our Dog & Cat and Animal Health businesses, partially offset by lower sales of other manufacturers products and the sales in the prior year period from our operations in the United Kingdom that we closed in fiscal 2025. Pet branded sales increased $19.9 million, and sales of other manufacturers' products decreased $8.5 million.

Current wording

Pet net sales decreased $80.6 million, or 5.9%, to $1,293.1 million for the nine months ended June 27, 2026. The decrease in Pet net sales was due to our divestiture of our pet distribution business in April 2026. Pet organic net sales for the nine months ended June 27, 2026, increased 3.3% from the prior year nine months ended June 28, 2025. The increase in Pet organic net sales was due primarily to increased sales in our Dog & Cat and wild bird feed businesses. Pet branded sales increased $16.9 million, and sales of other manufacturers' products decreased $97.5 million.

Previous wording

Garden net sales increased $22.1 million, or 3.6%, to $630.9 million for the six months ended March 28, 2026. The increase in Garden net sales was due primarily to increased sales in our controls and grass seed businesses benefitting from new private label business and new listings. These increases were partially offset by lower sales in our live plants and packet seed businesses. Garden branded sales increased $25.6 million, and sales of other manufacturers’ products decreased $3.5 million.

Current wording

Garden net sales increased $35.6 million, or 3.3%, to $1,112.8 million for the nine months ended June 27, 2026. The increase in Garden net sales was due primarily to increased sales in our controls, wild bird feed and grass seed businesses benefitting from new private label business and new retailer listings. These increases were partially offset by lower sales of garden third-party products and live plants. Garden branded sales increased $47.9 million, and sales of other manufacturers’ products decreased $12.3 million.

Previous wording

Selling, general and administrative expenses increased $12.2 million, or 3.5%, to $359.7 million for the six months ended March 28, 2026 from $347.5 million for the six months ended March 29, 2025. The increase in selling, general and administrative expenses was due to higher expenses in both Garden and corporate. As a percentage of net sales, selling, general and administrative expenses increased to 23.6% for the six months ended March 28, 2026 from 23.3% for the prior year period.

Current wording

Selling, general and administrative expenses increased $6.4 million, or 1.2%, to $550.8 million for the nine months ended June 27, 2026 from $544.4 million for the nine months ended June 28, 2025. The increase in selling, general and administrative expenses was due to higher expenses in both Garden and corporate partially offset by lower expenses in Pet. As a percentage of net sales, selling, general and administrative expenses increased to 22.9% for the nine months ended June 27, 2026 from 22.2% for the prior year period. Excluding the facility closure costs and business exit costs in both nine-month periods, non-GAAP selling, general and administrative expense decreased $6.4 million and selling, general and administrative expense as a percentage of net sales was 22.2% as compared to 22.0% in the prior year nine-month period.

Previous wording

Selling and delivery expense increased $6.7 million, or 4.3%, to $161.1 million for the six months ended March 28, 2026 from $154.4 million for the six months ended March 29, 2025. The increase in selling and delivery expense was due to higher marketing and advertising spend in both Pet and Garden.

Current wording

Selling and delivery expense increased $4.3 million, or 1.7%, to $252.7 million for the nine months ended June 27, 2026 from $248.4 million for the nine months ended June 28, 2025. The increase in selling and delivery expense was due to higher marketing and advertising spend in both Pet and Garden partially offset by lower delivery expenses in Pet due to the pet distribution business divestiture.

Previous wording

Warehouse and administrative expense increased $5.5 million, or 2.8%, to $198.6 million for the six months ended March 28, 2026 from $193.1 million for the six months ended March 29, 2025. Increased expense in both Garden and corporate was partially offset by a decrease in Pet. The increase in Garden was due primarily to $7.8 million in facility closure costs incurred in the first quarter of fiscal 2026, while the decrease in Pet was due primarily to the benefits obtained from prior year facility closures. Corporate expenses increased $1.7 million due primarily to higher third-party provider expense driven by M&A activity expenditures. Corporate expenses are included within administrative expense and relate to the costs of unallocated executive, administrative, finance, legal, human resources, and information technology functions.

Current wording

Warehouse and administrative expense increased $2.1 million, or 0.7%, to $298.1 million for the nine months ended June 27, 2026 from $296.0 million for the nine months ended June 28, 2025. Increased expense in both Garden and corporate was partially offset by a decrease in Pet. The increase in Garden was due primarily to higher facility closure costs incurred in the nine months of fiscal 2026 as compared to the nine months in fiscal 2025, while the decrease in Pet was due primarily to the divestiture of the pet distribution business. Corporate expenses increased $8.7 million due primarily to higher third-party provider expense driven by M&A activity expenditures and payroll related costs, including variable compensation and our investment in data improvement and AI readiness. Corporate expenses are included within administrative expense and relate to the costs of unallocated executive, administrative, finance, legal, human resources, and information technology functions.

Previous wording

Garden operating income decreased $4.9 million to $56.3 million for the six months ended March 28, 2026 from $61.2 million for the six months ended March 29, 2025. Garden operating income decreased due to increased selling, general and administrative expenses partially offset by increased net sales and a relatively flat gross margin as compared to the prior year six-month period. On a non-GAAP basis, which excludes the facility charges incurred in the first quarter of fiscal 2026, Garden operating income increased $2.4 million.

Current wording

Garden operating income increased $2.2 million to $146.3 million for the nine months ended June 27, 2026 from $144.1 million for the nine months ended June 28, 2025. Garden operating income increased due to increased net sales and an improved gross margin partially offset by increased selling, general and administrative expense. Garden non-GAAP operating income increased $8.0 million to $154.4 million for the nine months ended June 27, 2026 from $146.4 million for the nine months ended June 28, 2025.

Previous wording

Corporate operating expense increased $1.7 million to $53.4 million in the current six months ended from $51.7 million in the comparable fiscal 2025 period due primarily to higher third-party provider expense driven by M&A activity expenditures.

Current wording

Corporate operating expense increased $8.7 million to $84.5 million in the current nine months ended from $75.8 million in the comparable fiscal 2025 period due primarily to higher third-party provider expense driven by M&A activity expenditures and payroll costs, including variable compensation and our investment in date improvement and AI readiness..

Previous wording

Net interest expense for the six months ended March 28, 2026 decreased $0.2 million, or 1.4%, to $16.9 million from $17.1 million for the six months ended March 29, 2025. The decrease in net interest expense was due to lower interest expense partially offset by a minor decrease in interest income. Debt outstanding on March 28, 2026 and March 29, 2025 was $1.2 billion.

Current wording

Net interest expense for the nine months ended June 27, 2026 decreased $1.3 million, or 5.1%, to $24.6 million from $25.9 million for the nine months ended June 28, 2025. The decrease in net interest expense was due primarily to higher interest income as a result of higher cash balances. Debt outstanding on June 27, 2026 and June 28, 2025 was $1.2 billion.

Previous wording

Our net income for the six months ended March 28, 2026 was $86.3 million, or $1.39 per diluted share, compared to $77.6 million, or $1.19 per diluted share, for the six months ended March 29, 2025.

Current wording

Our net income for the nine months ended June 27, 2026 was $176.1 million, or $2.84 per diluted share, compared to $172.6 million, or $2.69 per diluted share, for the nine months ended June 28, 2025.

Previous wording

On a non-GAAP basis, net income for the six-month period ended March 28, 2026 was $92.4 million or $1.49 per diluted share, compared to $81.7 million, or $1.25 per diluted share, for the six-month period ended March 29, 2025.

Current wording

On a non-GAAP basis, net income for the nine-month period ended June 27, 2026 was $188.0 million or $3.04 per diluted share, compared to $179.6 million, or $2.79 per diluted share, for the nine-month period ended June 28, 2025.

Previous wording

We report our financial results in accordance with GAAP. However, to supplement the financial results prepared in accordance with GAAP, we use non-GAAP financial measures including non-GAAP net income and diluted net income per share, non-GAAP operating income, and adjusted EBITDA. Management uses these non-GAAP financial measures that exclude the impact of specific items (described below) in making financial, operating and planning decisions and in evaluating our performance. Also, management believes that these non-GAAP financial measures may be useful to investors in their assessment of our ongoing operating performance and provide additional meaningful comparisons between current results and results in prior operating periods. While management believes that non-GAAP measures are useful supplemental information, such adjusted results are not intended to replace our GAAP financial results and should be read in conjunction with those GAAP results.

Current wording

We report our financial results in accordance with GAAP. However, to supplement the financial results prepared in accordance with GAAP, we use non-GAAP financial measures including non-GAAP net income and diluted net income per share, non-GAAP operating income, organic net sales and adjusted EBITDA. Management uses these non-GAAP financial measures that exclude the impact of specific items (described below) in making financial, operating and planning decisions and in evaluating our performance. Also, management believes that these non-GAAP financial measures may be useful to investors in their assessment of our ongoing operating performance and provide additional meaningful comparisons between current results and results in prior operating periods. While management believes that non-GAAP measures are useful supplemental information, such adjusted results are not intended to replace our GAAP financial results and should be read in conjunction with those GAAP results.

Previous wording

•Facility closures and business exit: we have excluded charges related to the closure of distribution and manufacturing facilities and our decisions to exit businesses as they represent infrequent transactions that impact the comparability between operating periods. We believe these exclusions supplement the GAAP information with a measure that may be useful to investors in assessing the sustainability of our operating performance.

Current wording

•Facility closures and business exit: we have excluded charges related to the closure of distribution and manufacturing facilities and our decisions to exit businesses as they represent infrequent transactions that impact the comparability between operating periods.

Previous wording

During the first quarter of fiscal 2026, we recognized incremental expense of $7.7 million in the consolidated statement of operations, of which $7.2 million in our Garden segment related to the closure of three distribution centers in fiscal 2025 and 2024. During the first and second quarters of fiscal 2026, we recognized incremental expense of $0.5 million and $0.2 million, respectively, in our Pet segment related to the closure of a sales and logistics facility in Pennsylvania.

Current wording

During the first six months of fiscal 2026, we recognized incremental expense of $8.0 million in the condensed consolidated statement of operations, of which $7.3 million in our Garden segment related to the closure of three distribution centers in fiscal 2025 and 2024 and $0.7 million in our Pet segment related to the closure of a sales and logistics facility in Pennsylvania.

Previous wording

During the second quarter of fiscal 2025, we recognized incremental expense of $5.3 million in the consolidated statement of operations, related to the decision to wind-down our operations in the U.K. and the related facility there as we move to a direct-export model.

Current wording

During the second quarter of fiscal 2025, we recognized incremental expense of $5.3 million in the condensed consolidated statement of operations, related to the decision to wind-down our operations in the U.K. and the related facility there as we move to a direct-export model.

Previous wording

Net cash used by operating activities increased by $4.2 million, from $115.7 million for the six months ended March 29, 2025, to $119.9 million for the six months ended March 28, 2026. The increase in cash used by operating activities was due primarily to changes in our working capital accounts for the six-month period ended March 28, 2026, primarily an increase in accounts receivable, partially offset by a decrease in prepaid expenses and other assets and the net of changes in other working capital accounts.

Current wording

Net cash provided by operating activities increased by $57.8 million, from $149.8 million for the nine months ended June 28, 2025, to $207.6 million for the nine months ended June 27, 2026. The increase in cash provided by operating activities was due primarily to changes in our working capital accounts for the nine-month period ended June 27, 2026, primarily increases in accounts receivable, accounts payable, and other assets, partially offset by a decrease in inventory.

Previous wording

Net cash used in investing activities increased $58.1 million, from $20.2 million for the six months ended March 29, 2025 to $78.3 million during the six months ended March 28, 2026. The increase in cash used in investing activities was due primarily to more significant acquisition activity in the current year as compared to the prior year.

Current wording

Net cash used in investing activities increased $26.9 million, from $34.0 million for the nine months ended June 28, 2025 to $61.0 million during the nine months ended June 27, 2026. The increase in cash used in investing activities was due primarily to more significant acquisition activity in the current year as compared to the prior year, partially offset by proceeds relating to the divestiture of the pet distribution business.

Previous wording

Net cash used in financing activities decreased $68.3 million, from $99.7 million for the six months ended March 29, 2025, to $31.4 million for the six months ended March 28, 2026. The decrease in cash used in financing activities during the current year was due primarily to decreased open market purchases of our common stock as compared to the prior year. During the six months ended March 28, 2026, we repurchased approximately 0.8 million shares of our non-voting Class A common stock (CENTA) on the open market at an aggregate cost of approximately $21.9 million, or approximately $28.45 per share. During the six months ended March 29, 2025, we repurchased approximately 2.1 million shares of our non-voting Class A common stock (CENTA) on the open market at an aggregate cost of approximately $63.2 million, or approximately $30.75 per share, and approximately 0.9 million shares of our voting common stock (CENT) on the open market at an aggregate cost of approximately $30.2 million, or approximately $35.28 per share. .

Current wording

Net cash used in financing activities decreased $123.9 million, from $156.3 million for the nine months ended June 28, 2025, to $32.3 million for the nine months ended June 27, 2026. The decrease in cash used in financing activities during the current year was due primarily to decreased open market purchases of our common stock as compared to the prior year. During the nine months ended June 27, 2026, we repurchased approximately 0.8 million shares of our non-voting Class A common stock (CENTA) on the open market at an aggregate cost of approximately $22.7 million, or approximately $28.55 per share. During the nine months ended June 28, 2025, we repurchased approximately 3.2 million shares of our non-voting Class A common stock (CENTA) on the open market at an aggregate cost of approximately $98.2 million, or approximately $30.82 per share, and approximately 1.4 million shares of our voting common stock (CENT) on the open market at an aggregate cost of approximately $50.2 million, or approximately $35.23 per share.

Previous wording

We believe that cash flows from operating activities, funds available under our Credit Facility, and arrangements with suppliers will be adequate to fund our presently anticipated working capital and capital expenditure requirements for the foreseeable future. We anticipate that our capital expenditures, which are related primarily to replacements and expansion of and upgrades to plant and equipment and also investment in our continued implementation of a scalable enterprise-wide information technology platform, will be approximately $50 million in fiscal 2026, of which we have invested approximately $21 million through March 28, 2026.

Current wording

We believe that cash flows from operating activities, funds available under our Credit Facility, and arrangements with suppliers will be adequate to fund our presently anticipated working capital and capital expenditure requirements for the foreseeable future. We anticipate that our capital expenditures, which are related primarily to replacements and expansion of and upgrades to plant and equipment and also investment in our continued implementation of a scalable enterprise-wide information technology platform, will be approximately $50 million in fiscal 2026, of which we have invested approximately $34 million through June 27, 2026.

Previous wording

At March 28, 2026, our total debt outstanding was $1,192.6 million, as compared with $1,190.8 million at March 29, 2025.

Current wording

At June 27, 2026, our total debt outstanding was $1,193.1 million, as compared with $1,191.3 million at June 28, 2025.

Previous wording

The Credit Facility is subject to a borrowing base that is calculated using a formula based upon eligible receivables and inventory, and at our election, eligible real property, minus certain reserves. Proceeds of the Credit Facility may be used for general corporate purposes. Net availability under the Credit Facility was approximately $600 million as of March 28, 2026. The Credit Facility includes a $50 million sublimit for the issuance of standby and commercial letters of credit and a $75 million sublimit for swing loan borrowings. As of March 28, 2026, there were no borrowings outstanding and no letters of credit outstanding under the Credit Facility. Outside of the Credit Facility, there were other standby and commercial letters of credit of $2.9 million outstanding as of March 28, 2026.

Current wording

The Credit Facility is subject to a borrowing base that is calculated using a formula based upon eligible receivables and inventory, and at our election, eligible real property, minus certain reserves. Proceeds of the Credit Facility may be used for general corporate purposes. Net availability under the Credit Facility was approximately $465 million as of June 27, 2026. The Credit Facility includes a $50 million sublimit for the issuance of standby and commercial letters of credit and a $75 million sublimit for swing loan borrowings. As of June 27, 2026, there were no borrowings outstanding and no letters of credit outstanding under the Credit Facility. Outside of the Credit Facility, there were other standby and commercial letters of credit of $2.9 million outstanding as of June 27, 2026.

Previous wording

Borrowings under the Credit Facility will bear interest at an index based on SOFR (which will not be less than 0.00%) or, at the Company's option, the Base Rate, plus, in either case, an applicable margin based on the average availability level under the Credit Facility. Base Rate is defined as the highest of (a) the Truist prime rate, (b) the Federal Funds Rate plus 0.50%, (c) one-month SOFR plus 1.00% and (d) 0.00%. The applicable margin for SOFR-based borrowings fluctuates between 1.00%-1.50%, and was 1.00% as of March 28, 2026, and the applicable margin for Base Rate borrowings fluctuates between 0.00%-0.50% and was 0.00% as of March 28, 2026. An unused line fee shall be payable quarterly in respect of the total amount of the unutilized commitments under the Credit Facility, and a letter of credit plus a facing fee to the issuing bank. We are also required to pay certain fees to the administrative agent under the Credit Facility. As of March 28, 2026, the interest rate applicable to Base Rate borrowings was 6.8%, and the interest rate applicable to one-month SOFR-based borrowings was 4.7%.

Current wording

Borrowings under the Credit Facility will bear interest at an index based on SOFR (which will not be less than 0.00%) or, at the Company's option, the Base Rate, plus, in either case, an applicable margin based on the average availability level under the Credit Facility. Base Rate is defined as the highest of (a) the Truist prime rate, (b) the Federal Funds Rate plus 0.50%, (c) one-month SOFR plus 1.00% and (d) 0.00%. The applicable margin for SOFR-based borrowings fluctuates between 1.00%-1.50%, and was 1.00% as of June 27, 2026, and the applicable margin for Base Rate borrowings fluctuates between 0.00%-0.50% and was 0.00% as of June 27, 2026. An unused line fee shall be payable quarterly in respect of the total amount of the unutilized commitments under the Credit Facility, and a letter of credit plus a facing fee to the issuing bank. We are also required to pay certain fees to the administrative agent under the Credit Facility. As of June 27, 2026, the interest rate applicable to Base Rate borrowings was 6.8%, and the interest rate applicable to one-month SOFR-based borrowings was 4.6%.