Fortune Brands Innovations, Inc.

Previous wording

This discussion contains forward-looking statements that are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements include all statements that are not historical statements of fact and those regarding our intent, belief or expectations for our business, operations, financial performance or financial condition, in addition to statements regarding our strategies and investments to enhance execution and realign our business, our expectations for the markets in which we operate, expected impacts from recently-announced organizational and leadership changes, the market potential of our brands, trends in the housing market, the potential impact of costs, including material and labor costs, the potential impact of inflation, expected capital spending, expected pension contributions, the expected effects of acquisitions, dispositions and other strategic transactions including the expected benefits and costs of the spin-off of MasterBrand, Inc. and the tax-free nature of the spin-off transaction, the anticipated effects of recently issued accounting standards on our financial statements, the anticipated impact of future tariff refunds and other matters that are not historical in nature. Statements that include the words “believes,” “expects,” “anticipates,” “intends,” “projects,” “estimates,” “plans,” “outlook,” “positioned”, “confident,” “opportunity”, “focus” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” “may”, and “could” are generally forward-looking in nature and not historical facts. Where, in any forward-looking statement, we express an expectation or belief as to future results or events, such expectation or belief is based on current expectations, plans, estimates, assumptions and projections of our management about our industry, business and future financial results available at the time this report is filed with the SEC. Although we believe that these statements are based on reasonable assumptions, they are subject to numerous factors, risks and uncertainties that could cause actual outcomes and results to be materially different from those indicated in such statements, including but not limited to: (i) our reliance on the North American and Chinese home improvement, repair and remodel and new home construction activity levels, (ii) the housing market, downward changes in the general economy, unfavorable interest rates or other business conditions, (iii) the competitive nature of consumer and trade brand businesses, (iv) our ability to execute on our strategic plans and the effectiveness of our strategies in the face of business competition, (v) our reliance on key customers and suppliers, including wholesale distributors and dealers and retailers, (vi) risks associated with our recent leadership changes and our searc…

Excerpt shortened here; the source contains the full paragraph.

Current wording

This discussion contains forward-looking statements that are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements include all statements that are not historical statements of fact and those regarding our intent, belief or expectations for our business, operations, financial performance or financial condition, in addition to statements regarding our strategies and investments to enhance execution and realign our business, our expectations for the markets in which we operate, expected impacts from recently-announced organizational and leadership changes, the market potential of our brands, trends in the housing market, the potential impact of costs, including material and labor costs, the potential impact of inflation, expected capital spending, expected pension contributions, the expected effects of acquisitions, dispositions and other strategic transactions including the expected benefits and costs of the spin-off of MasterBrand, Inc. and the tax-free nature of the spin-off transaction, the anticipated effects of recently issued accounting standards on our financial statements, the anticipated impact of future tariffs and tariff refunds and other matters that are not historical in nature. Statements that include the words “believes,” “expects,” “anticipates,” “intends,” “projects,” “estimates,” “plans,” “outlook,” “positioned”, “confident,” “opportunity”, “focus” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” “may”, and “could” are generally forward-looking in nature and not historical facts. Where, in any forward-looking statement, we express an expectation or belief as to future results or events, such expectation or belief is based on current expectations, plans, estimates, assumptions and projections of our management about our industry, business and future financial results available at the time this report is filed with the SEC. Although we believe that these statements are based on reasonable assumptions, they are subject to numerous factors, risks and uncertainties that could cause actual outcomes and results to be materially different from those indicated in such statements, including but not limited to: (i) our reliance on the North American and Chinese home improvement, repair and remodel and new home construction activity levels, (ii) the housing market, downward changes in the general economy, unfavorable interest rates or other business conditions, (iii) the competitive nature of consumer and trade brand businesses, (iv) our ability to execute on our strategic plans and the effectiveness of our strategies in the face of business competition, (v) our reliance on key customers and suppliers, including wholesale distributors and dealers and retailers, (vi) risks associated with our recent leadership changes, …

Excerpt shortened here; the source contains the full paragraph.

Previous wording

On February 20, 2026, the U.S. Supreme Court ruled that the U.S. tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”) on goods imported into the U.S. were unauthorized. In March 2026, the Court of International Trade (“CIT”) issued refund orders and the administrative system the government created to process refunds began accepting refund claims on April 20, 2026. During the second quarter of 2026, management determined that recovery of IEEPA tariff refund claims of $122.1 million were probable and estimable and recorded a refund receivable of $122.1 million and a related reduction to cost of products sold and inventory of $104.2 million and $17.9 million, respectively. As of June 27, 2026, the Company received $8.9 million of the submitted refund claims. The estimate reflects Company’s judgment regarding the portion of previously recognized IEEPA tariffs expected to be recoverable through the refund process, and it may be subject to change based on the ultimate resolution of refund claims. The ultimate amount of recoveries may differ from the Company’s estimates, based on additional guidance, the resolution of specific entry-level claims or other administrative developments. To the extent there are changes in amounts that become recoverable, including any associated interest, such amounts will be recognized in the period in which information about the probable and reasonably estimable amounts becomes known to the Company. We will continue to monitor changes to import and export policies of the U.S. and other countries that could impact our financial position, results of operations and cash flows.

Current wording

On February 20, 2026, the U.S. Supreme Court ruled that the U.S. tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”) on goods imported into the U.S. were unauthorized. In March 2026, the Court of International Trade (“CIT”) issued refund orders and the administrative system the government created to process refunds began accepting refund claims on April 20, 2026. During the thirty-nine weeks ended September 26, 2026, management determined that recoveries of IEEPA tariff refund claims of $146.6 million were probable and estimable and recorded a reduction to Cost of products sold in the Condensed Consolidated Statements of Comprehensive Income of $145.5 million, less $11.5 million of tariff refunds no longer deemed probable of recovery. In addition, $1.1 million remains as a reduction in Inventory on the Condensed Consolidated Balance Sheet as of September 26, 2026. As of September 26, 2026, the Company had received $121.5 million of the submitted refund claims and $4.3 million of interest income related to those claims and had a refund receivable of $13.6 million in the Condensed Consolidated Balance Sheet. The Company does not anticipate any additional IEEPA tariff refund recoveries other than the recoveries that have been recorded through the end of the third quarter of 2026.

Previous wording

Fortune Brands delivered net income of $1.7 million, or $0.01 per diluted common share for the twenty-six weeks ended June 27, 2026 compared to net income of $151.6 million, or $1.24 per diluted common share in the prior year. Net income for the twenty-six weeks ended June 27, 2026 was negatively impacted by asset impairment charges of $229.3 million and lower sales unit volume, partially offset by tariff refunds of $104.2 million. We delivered cash provided by operating activities of $83.6 million of the twenty-six weeks ended June 27, 2026, compared to $66.0 million in the same prior year period.

Current wording

Fortune Brands delivered net income of $51.6 million, or $0.43 per diluted common share for the thirty-nine weeks ended September 26, 2026 compared to net income of $222.4 million, or $1.83 per diluted common share in the prior year. Net income for the thirty-nine weeks ended September 26, 2026 was negatively impacted by asset impairment charges of $303.1 million and lower sales unit volume, partially offset by tariff refunds of $146.6 million. We delivered cash provided by operating activities of $430.6 million for the thirty-nine weeks ended September 26, 2026, compared to $270.4 million in the same prior year period.

Previous wording

The following discussion of consolidated results of operations and segment results refers to the twenty-six weeks ended June 27, 2026 compared to the twenty-six weeks ended June 28, 2025. Consolidated results of operations should be read in conjunction with segment results of operations.

Current wording

The following discussion of consolidated results of operations and segment results refers to the thirty-nine weeks ended September 26, 2026 compared to the thirty-nine weeks ended September 27, 2025. Consolidated results of operations should be read in conjunction with segment results of operations.

Previous wording

Net sales decreased by $71.3 million, or 3.2%, primarily due to lower sales volume across all operating segments, primarily driven by market softness, service level challenges and discrete share losses in certain product categories. Volume declines were offset by year over year price increases, including those intended to mitigate cost increases, and by the favorable impact of foreign exchange of $15.2 million.

Current wording

Net sales decreased by $106.8 million, or 3.2%, primarily due to lower sales volume across all operating segments, primarily driven by market softness, service level challenges and discrete share losses in certain product categories. Volume declines were partially offset by year over year price increases, including those intended to mitigate cost increases, and by the favorable impact of foreign exchange of $17.2 million.

Previous wording

Cost of products sold decreased by $99.9 million, or 8.1%, primarily due to the recognition of the IEEPA tariff refunds in the current year and lower sales volumes, partially offset by higher landed product cost.

Current wording

Cost of products sold decreased by $122.0 million, or 6.5%, primarily due to the recognition of IEEPA tariff refunds of $145.5 million in the current year and lower sales volumes, partially offset by higher landed product cost due to direct material cost inflation.

Previous wording

Selling, general and administrative expenses increased by $42.8 million, or 6.5%, primarily due to costs associated with governance advisory services and leadership changes of $43.6 million and increased variable incentive compensation costs of $14.3 million, partially offset by lower restructuring-related charges of $14.2 million.

Current wording

Selling, general and administrative expenses increased by $68.9 million, or 7.1%, primarily due to costs associated with governance advisory services and leadership changes of $44.2 million and increased variable incentive compensation costs of $40.6 million, partially offset by lower restructuring-related charges of $15.7 million.

Previous wording

Asset impairment charges increased by $229.3 million primarily due to the impairment of property, plant and equipment, net, customer and contractual relationships, and an indefinite-lived tradename within our Outdoors segment.

Current wording

Asset impairment charges increased by $253.0 million primarily due to the impairment of property, plant and equipment, net, customer and contractual relationships, and tradenames during the thirty-nine weeks ended September 26, 2026 within our Water and Outdoors segments of $70.1 million and $233.0 million, respectively, compared to the impairment of property, plant and equipment, net within our Outdoors segment of $50.1 million during the thirty-nine weeks ended September 27, 2025.

Previous wording

Restructuring charges of $8.1 million were primarily attributable to costs associated with the decision to consolidate our U.S. regional offices into one campus headquarters and organizational changes for cost optimization.

Current wording

Restructuring charges of $28.9 million were primarily attributable to costs related to organizational and personnel changes, the decision to exit our Moen commercial business in Asia, and the decision to consolidate our U.S. regional offices into one campus headquarters.

Previous wording

Interest expense decreased by $5.9 million, or 9.9%, to $53.9 million primarily due to lower commercial paper borrowings net of repayments and lower interest rates on commercial paper during the twenty-six weeks ended June 27, 2026 of $5.0 million, as compared to the twenty-six weeks ended June 28, 2025 of $640.0 million.

Current wording

Interest expense decreased by $10.1 million, or 11.4%, to $78.3 million primarily due to average lower commercial paper borrowings net of repayments and lower interest rates on commercial paper during the thirty-nine weeks ended September 26, 2026, as compared to the thirty-nine weeks ended September 27, 2025.

Previous wording

Other income, net, was $(0.5) million in the twenty-six weeks ended June 27, 2026, compared to $8.2 million in the twenty-six weeks ended June 28, 2025. The decrease in other income, net was primarily due to a decrease in interest income of $2.5 million, and increases in foreign currency transaction expense of $5.9 million.

Current wording

Other (income) expense, net, was $(3.9) million in the thirty-nine weeks ended September 26, 2026, compared to $(5.8) million in the thirty-nine weeks ended September 27, 2025. The decrease in other income, net was primarily due to increases in foreign currency transaction expense of $3.9 million, partially offset by an increase in interest income related to IEEPA tariff refund payments of $4.3 million.

Previous wording

The effective income tax rates for the twenty-six weeks ended June 27, 2026 and twenty-six weeks ended June 28, 2025 were 153.1% and 30.1%, respectively.

Current wording

The effective income tax rates for the thirty-nine weeks ended September 26, 2026 and thirty-nine weeks ended September 27, 2025 were (38.3%) and 28.7%, respectively.

Previous wording

The difference between the Company’s effective income tax rate for the thirteen weeks ended June 28, 2025, and the U.S. statutory rate of 21% primarily relates to state income taxes, including the state income tax impacts of legal entity restructuring, foreign income taxed at higher rates, and dividend withholding tax, partially offset by decreases in uncertain tax positions.

Current wording

The difference between the Company’s effective income tax rate for the thirty-nine weeks ended September 27, 2025, and the U.S. statutory income tax rate of 21% primarily relates to state income taxes, including the state income tax impacts of legal entity restructuring, foreign income taxed at higher rates, and dividend withholding tax, partially offset by decreases in uncertain tax positions.

Previous wording

Net sales decreased by $43.7 million, or 3.6%, primarily due to lower sales unit volume from the carryover of discrete share losses from the first half of 2025, service level challenges, and market softness among the production builders. Volume declines were offset by price actions to mitigate cost inflation, continued growth in the eCommerce channel, and the favorable impact of foreign exchange of $12.0 million.

Current wording

Net sales decreased by $77.7 million, or 4.2%, primarily due to lower sales unit volume from the carryover of discrete share losses from the first half of 2025, service level challenges, softer customer demand in retail and slow down in wholesale new construction demand. Volume declines were partially offset by price actions, growth in the eCommerce channel, and the favorable impact of foreign exchange of $14.5 million.

Previous wording

Operating income increased by $19.4 million, or 7.5%, primarily due to tariff refunds recognized of $73.9 million, lower restructuring and restructuring-related charges of $14.2 million, partially offset by the impact of lower net sales, higher landed product cost, and higher variable incentive compensation cost of $7.1 million.

Current wording

Operating income decreased by $113.1 million, or 27.9%, primarily due to asset impairment charges of $70.1 million, as well as the impact of lower net sales, higher landed product cost, and higher costs to serve our customers, partially offset by tariff refunds recognized of $97.3 million.

Previous wording

Net sales decreased by $24.7 million, or 3.6%, primarily due to lower sales unit volume from softer new construction related demand in the wholesale channel, partially offset by price actions to mitigate cost inflation.

Current wording

Net sales decreased by $21.7 million, or 2.1%, primarily due to lower sales unit volume from softer new construction related demand in the wholesale channel, partially offset by price actions and favorable year-over-year channel inventory levels.

Previous wording

Net sales decreased by $2.9 million, or 0.9%, primarily due to lower sales unit volume, partially offset by pricing actions to mitigate cost inflation and the favorable impact of foreign exchange of $3.2 million.

Current wording

Net sales decreased by $7.4 million, or 1.4%, primarily due to declines in retail and eCommerce, partially offset by growth in commercial, pricing actions to mitigate cost inflation and the favorable impact of foreign exchange of $2.8 million.

Previous wording

Corporate expenses increased by $44.2 million, or 47.0%, primarily due to costs associated with governance advisory services and leadership changes of $43.6 million, increased compensation costs of $9.5 million, partially offset by lower restructuring and restructuring-related charges of $10.9 million.

Current wording

Corporate expenses increased by $44.9 million, or 32.8%, primarily due to costs associated with governance advisory services and leadership changes of $44.2 million, and increased compensation costs of $26.3 million, partially offset by lower restructuring and restructuring-related charges of $15.9 million.

Previous wording

Net sales decreased by $49.4 million, or 4.1%, primarily due to lower sales at our Water and Outdoors segments. The decline was offset by year over year price increases, including those intended to mitigate cost increases, higher sales in the Security segment, and a favorable foreign exchange of $5.1 million.

Current wording

Net sales decreased by $35.5 million, or 3.1%, primarily due to lower sales at our Water and Security segments. The decline was partially offset by year over year price increases, including those intended to mitigate cost increases, higher sales in the Outdoors segment, and a favorable foreign exchange impact of $2.0 million.

Previous wording

Cost of products sold decreased by $96.9 million, or 14.7%, primarily due to recognition of the IEEPA tariff refunds in the current year and lower sales volume, partially offset by higher landed product cost.

Current wording

Cost of products sold decreased by $22.1 million, or 3.5%, primarily due to recognition of net tariff refunds of $29.8 million in the current year and lower sales volume, partially offset by higher landed product cost.

Previous wording

Selling, general and administrative expenses increased by $5.0 million, or 1.5%, primarily due to increased compensation costs of $16.2 million, partially offset by lower restructuring-related charges of $10.5 million.

Current wording

Selling, general and administrative expenses increased by $26.3 million, or 8.4%, primarily due to increased variable incentive compensation costs of $23.1 million, partially offset by lower restructuring-related charges of $3.7 million.

Previous wording

Asset impairment charges increased by $229.3 million primarily due to the impairment of property, plant and equipment, net, customer and contractual relationships, and an indefinite-lived tradename within our Outdoors segment.

Current wording

Asset impairment charges were $73.8 million for the thirteen weeks ended September 26, 2026 due to the impairment of property, plant and equipment, net, customer and contractual relationships, and tradenames within our Water and Outdoors segments of $69.5 million and $4.3 million, respectively, compared to the impairment of property, plant and equipment, net within our Outdoors segment of $50.1 million during the thirteen weeks ended September 27, 2025.

Previous wording

Interest expense decreased by $3.8 million, or 12.2%, primarily due to lower commercial paper borrowings net of repayments during the thirteen weeks ended June 27, 2026 of ($163.3 million) and lower interest rates on commercial paper, as compared to the thirteen weeks ended June 28, 2025 of $358.0 million.

Current wording

Interest expense decreased by $4.2 million, or 14.7%, primarily due to average lower commercial paper borrowings net of repayments during the thirteen weeks ended September 26, 2026 and lower interest rates on commercial paper, as compared to the thirteen weeks ended September 27, 2025.

Previous wording

Other income, net, was $(0.6) million in the thirteen weeks ended June 27, 2026, compared to $7.3 million in the thirteen weeks ended June 28, 2025. The decrease in other income, net was primarily due to a decrease in interest income of $2.0 million, and increases in foreign currency transaction expense of $5.7 million.

Current wording

Other (income) expense, net, was $(4.5) million in the thirteen weeks ended September 26, 2026, compared to $2.6 million in the thirteen weeks ended September 27, 2025. The increase in other income, net was primarily due to an increase in interest income related to IEEPA tariff refund payments of $4.3 million, and decreases in foreign currency transaction expense of $2.0 million.

Previous wording

The effective income tax rates for the thirteen weeks ended June 27, 2026 and thirteen weeks ended June 28, 2025 were 39.2% and 32.1%, respectively.

Current wording

The effective income tax rates for the thirteen weeks ended September 26, 2026 and thirteen weeks ended September 27, 2025 were (23.2%) and 25.3%, respectively.

Previous wording

Net sales decreased by $14.3 million, or 3.8%, primarily due to lower sales unit volume from softer new construction demand in the wholesale channel, partially offset by price actions to mitigate cost increases.

Current wording

Net sales increased by $2.9 million, or 0.8%, primarily due to favorable year-over-year channel inventory levels and price actions, partially offset by lower sales unit volume from softer new construction demand in the wholesale channel.

Previous wording

Corporate expenses increased by $6.5 million, or 13.2%, primarily due to increased compensation costs of $8.4 million, partially offset by lower restructuring and restructuring-related charges of $1.3 million.

Current wording

Corporate expenses increased by $0.9 million, or 2.1%, primarily due to increased compensation costs of $16.8 million, partially offset by lower restructuring and restructuring-related charges of $7.1 million, and lower professional fees and other discretionary costs.

Previous wording

The Company operates a commercial paper program (the “Commercial Paper Program”) pursuant to which the Company may issue unsecured commercial paper notes. The Company's Revolving Credit Agreement is the liquidity backstop for the repayment of any notes issued under the Commercial Paper Program, and as such borrowings under the Commercial Paper Program are included in Long-term debt in the Condensed Consolidated Balance Sheets. Amounts available under the Commercial Paper Program may be borrowed, repaid and re-borrowed, with the aggregate principal amount outstanding at any time, including borrowings under the Revolving Credit Agreement, not to exceed $1.25 billion. The Company expects to use any issuances under the Commercial Paper Program for general corporate purposes. Outstanding borrowings under the Commercial Paper Program as of June 27, 2026 and December 27, 2025 were $374.2 million and $368.8 million, respectively.

Current wording

The Company operates a commercial paper program (the “Commercial Paper Program”) pursuant to which the Company may issue unsecured commercial paper notes. The Company's Revolving Credit Agreement is the liquidity backstop for the repayment of any notes issued under the Commercial Paper Program, and as such borrowings under the Commercial Paper Program are included in Long-term debt in the Condensed Consolidated Balance Sheets. Amounts available under the Commercial Paper Program may be borrowed, repaid and re-borrowed, with the aggregate principal amount outstanding at any time, including borrowings under the Revolving Credit Agreement, not to exceed $1.25 billion. The Company expects to use any issuances under the Commercial Paper Program for general corporate purposes. Outstanding borrowings under the Commercial Paper Program as of September 26, 2026 and December 27, 2025 were $118.7 million and $368.8 million, respectively.

Previous wording

On June 27, 2026, we had non-restricted cash and cash equivalents of $209.7 million, of which $190.3 million was held at non-U.S. subsidiaries. We manage our global cash requirements considering (i) available funds among the subsidiaries through which we conduct business, (ii) the geographic location of our liquidity needs, and (iii) the cost to access international cash balances. The repatriation of non-U.S. cash balances from certain subsidiaries could have adverse tax consequences as we may be required to pay and record tax expense on those funds that are repatriated.

Current wording

On September 26, 2026, we had non-restricted cash and cash equivalents of $230.9 million, of which $211.6 million was held at non-U.S. subsidiaries. We manage our global cash requirements considering (i) available funds among the subsidiaries through which we conduct business, (ii) the geographic location of our liquidity needs, and (iii) the cost to access international cash balances.

Previous wording

In the twenty-six weeks ended June 27, 2026, we repurchased 1.0 million shares of our outstanding common stock under the Company’s share repurchase program for $45.2 million. As of June 27, 2026, the Company’s total remaining share repurchase authorization under its share repurchase program was approximately $782.1 million. The share repurchase program does not obligate the Company to repurchase any specific dollar amount or number of shares and may be suspended or discontinued at any time.

Current wording

In the thirty-nine weeks ended September 26, 2026, we repurchased 1.9 million shares of our outstanding common stock under the Company’s share repurchase program for $85.2 million. As of September 26, 2026, the Company’s total remaining share repurchase authorization under its share repurchase program was approximately $742.1 million. The share repurchase program does not obligate the Company to repurchase any specific dollar amount or number of shares and may be suspended or discontinued at any time.

Previous wording

In the twenty-six weeks ended June 27, 2026, we paid dividends in the amount of $62.2 million to the Company’s stockholders. Our Board of Directors will continue to evaluate dividend payment opportunities on a quarterly basis. There can be no assurance as to when and if future dividends will be paid, and at what level, because the payment of dividends is dependent on our financial condition, results of operations, cash flows, capital requirements and other factors deemed relevant by our Board of Directors. Our subsidiaries are not limited by long-term debt or other agreements in their abilities to pay cash dividends or to make other distributions with respect to their capital stock or other payments to the Company.

Current wording

In the thirty-nine weeks ended September 26, 2026, we paid dividends in the amount of $93.2 million to the Company’s stockholders. Our Board of Directors will continue to evaluate dividend payment opportunities on a quarterly basis. There can be no assurance as to when and if future dividends will be paid, and at what level, because the payment of dividends is dependent on our financial condition, results of operations, cash flows, capital requirements and other factors deemed relevant by our Board of Directors. Our subsidiaries are not limited by long-term debt or other agreements in their abilities to pay cash dividends or to make other distributions with respect to their capital stock or other payments to the Company.

Previous wording

Below is a summary of cash flows for the twenty-six weeks ended June 27, 2026 and June 28, 2025.

Current wording

Below is a summary of cash flows for the thirty-nine weeks ended September 26, 2026 and September 27, 2025.

Previous wording

Net cash provided by operating activities was $83.6 million in the twenty-six weeks ended June 27, 2026, compared to net cash provided by operating activities of $66.0 million in the twenty-six weeks ended June 28, 2025. The increase in cash provided of $17.6 million was primarily due to changes in other assets, inventories, accrued expenses and accrued taxes.

Current wording

Net cash provided by operating activities was $430.6 million in the thirty-nine weeks ended September 26, 2026, compared to $270.4 million in the thirty-nine weeks ended September 27, 2025. The increase in cash provided of $160.2 million was primarily due to favorable changes in working capital, including inventories, accrued expenses and other liabilities, which contributed $83.9 million and $77.0 million, respectively. Net cash provided by operating activities in the thirty-nine weeks ended September 26, 2026 also included $121.5 million of IEEPA tariff refunds received.

Previous wording

Net cash used in investing activities was $34.0 million in the twenty-six weeks ended June 27, 2026, compared to net cash used in investing activities of $57.0 million in the twenty-six weeks ended June 28, 2025. The decrease in cash used of $23 million was primarily due to a decrease in capital expenditures, as well as proceeds generated from the disposition of assets.

Current wording

Net cash used in investing activities was $36.4 million in the thirty-nine weeks ended September 26, 2026, compared to net cash used in investing activities of $84.4 million in the thirty-nine weeks ended September 27, 2025. The decrease in cash used of $48.0 million was primarily due to a decrease in capital expenditures, as well as proceeds generated from the disposition of assets.

Previous wording

Net cash used in financing activities was $102.5 million in the twenty-six weeks ended June 27, 2026, compared to net cash used in financing activities of $165.3 million in the twenty-six weeks ended June 28, 2025. The decrease in cash used of $62.8 million was primarily due to lower treasury stock purchases offset by lower net debt proceeds.

Current wording

Net cash used in financing activities was $427.3 million in the thirty-nine weeks ended September 26, 2026, compared to net cash used in financing activities of $352.6 million in the thirty-nine weeks ended September 27, 2025. The increase in cash used of $74.7 million was primarily due to lower net debt proceeds offset by lower treasury stock purchases.

Previous wording

Subsidiaries of Fortune Brands sponsor their respective defined benefit pension plans that are funded by a portfolio of investments maintained within our benefit plan trust. As of December 27, 2025, the fair value of our total pension plan assets was $188.3 million, representing funding of approximately 95% of the accumulated qualified benefit obligation liability. During the twenty-six weeks ended June 27, 2026, we made no pension contributions. For the foreseeable future, we believe that we have sufficient liquidity to meet the minimum funding that may be required by the Pension Protection Act of 2006.

Current wording

Subsidiaries of Fortune Brands sponsor their respective defined benefit pension plans that are funded by a portfolio of investments maintained within our benefit plan trust. As of December 27, 2025, the fair value of our total pension plan assets was $188.3 million, representing funding of approximately 95% of the accumulated qualified benefit obligation liability. During the thirty-nine weeks ended September 26, 2026, we made no pension contributions. For the foreseeable future, we believe that we have sufficient liquidity to meet the minimum funding that may be required by the Pension Protection Act of 2006.