Ingram Micro Holding Corp

Previous wording

•Advanced Solutions. We offer enterprise-grade hardware and software products aimed at corporate and enterprise users and generally characterized by specific projects, which generally account for lower volumes than Client and Endpoint Solutions but higher margins individually and collectively in the form of solutions and related services. And while Advanced Solutions offerings often require higher operational expenditures, primarily in the form of technical capabilities to serve the market, the operating margin delivered by this business is also generally stronger than Client and Endpoint Solutions. Within this product category, we offer servers, storage, networking, hybrid and software-defined solutions, cybersecurity, and power and cooling solutions. This category also includes training, professional services and financing solutions related to these product sets. We also offer customers graphics processing units (“GPU”) and artificial intelligence (“AI”) infrastructure-related products and offerings, as well as data capture-point of sale (“DC / POS”), physical security, audio visual & digital signage, Unified Communications and Collaboration (“UCC”), and Internet-of-Things (smart office/home automation) products.

Current wording

•Advanced Solutions. We offer enterprise-grade hardware and software products aimed at corporate and enterprise users and generally characterized by specific projects, which generally account for lower volumes than Client and Endpoint Solutions but higher margins individually and collectively in the form of solutions and related services. While Advanced Solutions offerings often require higher operational expenditures, primarily in the form of technical capabilities to serve the market, the operating margin delivered by this business is also generally stronger than Client and Endpoint Solutions. Within this product category, we offer servers, storage, networking, hybrid and software-defined solutions, cybersecurity, and power and cooling solutions. This category also includes training, professional services and financing solutions related to these product sets. We also offer customers graphics processing units (“GPU”) and artificial intelligence (“AI”) infrastructure-related products and offerings, as well as data capture-point of sale (“DC / POS”), physical security, audio visual & digital signage, Unified Communications and Collaboration (“UCC”), and Internet-of-Things (smart office/home automation) products.

Previous wording

We are one of the largest distributors of technology hardware, software and services worldwide, including a leading global presence in cloud, based on revenues. We offer a broad range of IT products and services to help generate demand and create efficiencies for our customers and suppliers around the world. We serve as an integral link in the global technology value chain, driving sales and profitability for the world’s leading technology companies, resellers, mobile network operators and other customers. Our results of operations have been, and will continue to be, directly affected by the conditions in the economy in general.

Current wording

We are one of the largest distributors, based on revenues, of technology hardware, software and services worldwide, including a leading global presence in cloud. We offer a broad range of IT products and services to help generate demand and create efficiencies for our customers and suppliers around the world. We serve as an integral link in the global technology value chain, driving sales and profitability for the world’s leading technology companies, resellers, mobile network operators and other customers. Our results of operations have been, and will continue to be, directly affected by the conditions in the economy in general.

Previous wording

The technology distribution industry in which we operate is characterized by narrow gross profit as a percentage of net sales, or gross margin. Historically, our margins have also been impacted by pressures from price competition and declining average selling prices, as well as changes in vendor terms and conditions, including, but not limited to, variations in vendor rebates and incentives, our ability to return inventory to vendors and time periods qualifying for price protection. Tariffs, customs/duties and other similar charges on products are typically passed through in our pricing upon sale. We expect competitive pricing pressures and restrictive vendor terms and conditions to continue in the foresee able future. In addition, our margins have been and may continue to be impacted by our inventory levels which are based on projections of future demand, product availability, product acceptance and marketability and market conditions. Any sudden decline in demand and/or rapid technological changes in products could cause us to have a charge for excess and/or obsolete inventory. Likewise, in times of heavy demand or when supply constraints become significant, prices for certain technology products will tend to increase. To manage our profitability, we have implemented changes to and continue to refine our pricing strategies, inventory management processes and vendor engagement programs. In addition, we continuously monitor and work to change, as appropriate, certain terms, conditions and credit offered to our customers to reflect those being imposed by our vendors, to recover costs and/or to facilitate sales opportunities. We have also strived to improve our profitability through diversification of product offerings, including our presence in adjacent product categories, such as enterprise computing, data center and automatic identification and DC / POS. Additionally, we continue to expand our capabilities in what we believe are faster growing and higher margin service-oriented businesses, including cloud and hybrid cloud/on-premise solutions.

Current wording

The technology distribution industry in which we operate is characterized by narrow gross profit as a percentage of net sales, or gross margin. Historically, our margins have also been impacted by pressures from price competition and fluctuations in average selling prices, as well as changes in vendor terms and conditions, including, but not limited to, variations in vendor rebates and incentives, our ability to return inventory to vendors and time periods qualifying for price protection. Tariffs, customs/duties and other similar charges on products are typically passed through in our pricing upon sale. We expect competitive pricing pressures and restrictive vendor terms and conditions to continue in the foresee able future. In addition, our margins have been and may continue to be impacted by our inventory levels which are based on projections of future demand, product availability, product acceptance and marketability and market conditions. Any sudden decline in demand and/or rapid technological changes in products could cause us to have a charge for excess and/or obsolete inventory. Likewise, in times of heavy demand or when supply constraints become significant, prices for certain technology products will tend to increase. To manage our profitability, we have implemented changes to and continue to refine our pricing strategies, inventory management processes and vendor engagement programs. In addition, we continuously monitor and work to change, as appropriate, certain terms, conditions and credit offered to our customers to reflect those being imposed by our vendors, to recover costs and/or to facilitate sales opportunities. We have also strived to improve our profitability through diversification of product offerings, including our presence in adjacent product categories, such as enterprise computing, data center and automatic identification and DC / POS. Additionally, we continue to expand our capabilities in what we believe are faster-growing and higher-margin service-oriented businesses, including cloud and hybrid cloud/on-premise solutions.

Previous wording

Another key area for our overall profitability management is the monitoring and control of our level of SG&A expenses. On an ongoing basis, we regularly look to optimize and drive efficiencies throughout our operations, which includes the use of temporary workforce to address staffing needs particularly in our warehouse operations where demand levels are more impactful on workloads. SG&A expenses also include the cost of investment in certain initiatives to accelerate growth and profitability and optimize our operations. We continue to increase our presence in cloud which generally has higher gross margins but also requires higher automation and investment in technology. We are likewise investing in the development and deployment of our Ingram Micro Xvantage TM platform, to address our market opportunities and partner experience in a more automated and efficient manner. These costs are expected to be completed within the next four to six quarters and are not expected to recur.

Current wording

Another key area for our overall profitability management is the monitoring and control of our level of SG&A expenses. On an ongoing basis, we regularly look to optimize and drive efficiencies throughout our operations, which includes the use of a temporary workforce to address staffing needs, particularly in our warehouse operations where demand levels are more impactful on workloads. SG&A expenses also include the cost of investment in certain initiatives to accelerate growth and profitability and optimize our operations. We continue to increase our presence in cloud which generally has higher gross margins but also requires higher automation and investment in technology. We are likewise investing in the development and deployment of our Ingram Micro Xvantage TM platform to address our market opportunities and partner experience in a more automated and efficient manner. These investments include both ongoing servicing, maintenance, and incremental enhancement activities, as well as certain discrete development, implementation, and integration initiatives with defined scopes and implementation timelines. These costs are expected to be completed by the end of fiscal year 2027 and are not expected to recur.

Previous wording

The financial statements of our foreign subsidiaries for which the functional currency is the local currency are translated into U.S. dollars using (i) the exchange rate at each balance sheet date for assets and liabilities and (ii) an average exchange rate for each period for statement of income items. Translation adjustments are recorded in accumulated other comprehensive income, a component of stockholders’ equity. For foreign currency remeasurement from each local currency into the appropriate functional currency, the monetary assets and liabilities of these subsidiaries are remeasured to the functional currencies at the exchange rate in effect at the applicable balance sheet date. Revenues, expenses, gains or losses are remeasured at the average exchange rate for the period, and nonmonetary assets and liabilities are remeasured at historical rates. The resultant remeasurement gains and losses of these operations as well as gains and losses from foreign currency transactions are included in the Condensed Consolidated Statements of Income.

Current wording

The financial statements of our foreign subsidiaries for which the functional currency is the local currency are translated into U.S. dollars using (i) the exchange rate at each balance sheet date for assets and liabilities and (ii) an average exchange rate for each period for statement of income items. Translation adjustments are recorded in accumulated other comprehensive income, a component of stockholders’ equity. For foreign currency remeasurement from each local currency into the appropriate functional currency, the monetary assets and liabilities of these subsidiaries are remeasured to the functional currencies at the exchange rate in effect at the applicable balance sheet date. Revenues, expenses, gains or losses are remeasured at the average exchange rate for the period, and non-monetary assets and liabilities are remeasured at historical rates. The resultant remeasurement gains and losses of these operations as well as gains and losses from foreign currency transactions are included in the Condensed Consolidated Statements of Income.

Previous wording

Consolidated net sales were $13,962,981 for the Thirteen Weeks Ended March 28, 2026, compared to $12,280,843 for the Thirteen Weeks Ended March 29, 2025. The 13.7% increase was the result of year-over-year increases in net sales across each of our geographic segments. Globally, Client and Endpoint Solutions increased by 12%, Advanced Solutions offerings increased by 18% and Cloud-based Solutions increased by 31%. This growth was partially offset by a 5% decline in Other services. The divestiture of CloudBlue in the third quarter of 2025 had a negative 9% impact on the year-over-year comparison of net sales of Cloud-based Solutions. The translation impact of foreign currencies relative to the U.S. dollar positively impacted the comparison of our global net sales year-over-year by 4%. On a constant currency basis, net sales of Client and Endpoint Solutions increased by 8%, Advanced Solutions increased by 14%, Cloud-based Solutions increased by 25%, and Other services declined by 9%.

Current wording

Consolidated net sales were $14,531,069 for the Thirteen Weeks Ended June 27, 2026, compared to $12,793,956 for the Thirteen Weeks Ended June 28, 2025. The 13.6% increase was the result of year-over-year increases in net sales across each of our geographic segments. Globally, Client and Endpoint Solutions increased by 13%, Advanced Solutions offerings increased by 14% and Cloud-based Solutions increased by 47%. This growth was partially offset by an 8% decline in Other services. The divestiture of CloudBlue in the third quarter of 2025 had a negative 11% impact on the year-over-year comparison of net sales of Cloud-based Solutions. The translation impact of foreign currencies relative to the U.S. dollar positively impacted the comparison of our global net sales year-over-year by 1%. On a constant currency basis, net sales of Client and Endpoint Solutions increased by 12%, Advanced Solutions increased by 13%, Cloud-based Solutions increased by 44%, and Other services declined by 8%.

Previous wording

The $563,827, or 12.7%, increase in North American net sales for the Thirteen Weeks Ended March 28, 2026 compared to the Thirteen Weeks Ended March 29, 2025, was primarily driven by a 31% increase in net sales of Advanced Solutions offerings driven by growth in networking and server net sales in the United States, which includes strong growth in lower margin, lower cost-to-serve GPU and AI-infrastructure product sets. Cloud-based Solutions net sales increased by 30%. Excluding the impact of our CloudBlue divestiture, net sales of Cloud-based Solutions were up by 45% year-over-year. This growth was partially offset by a 1% decrease in net sales of Client and Endpoint Solutions driven by declines in mobility distribution, particularly smartphones, as well as declines in desktops in the United States. Other services net sales also decreased by 1% due to declines in our Reverse Logistics and Repair business in the region.

Current wording

The $297,928, or 6.0%, increase in North American net sales for the Thirteen Weeks Ended June 27, 2026 compared to the Thirteen Weeks Ended June 28, 2025, was primarily driven by an 8% increase in net sales of Client and Endpoint Solutions driven by growth in notebooks and desktops in the United States and Canada. Net sales of Advanced Solutions offerings increased by 3% driven by growth in net sales of storage, cybersecurity and infrastructure software in the United States. Cloud-based Solutions net sales increased by 35%. Excluding the impact of our CloudBlue divestiture, net sales of Cloud-based Solutions were up by 54% year-over-year. Net sales of Other services were flat year-over-year.

Previous wording

The $487,695, or 13.5%, increase in Asia-Pacific net sales for the Thirteen Weeks Ended March 28, 2026 compared to the Thirteen Weeks Ended March 29, 2025 was driven by a 19% increase in net sales of Client and Endpoint Solutions, due to growth in components in China, notebooks in India, Australia and China, as well as growth in desktops in China. Net sales of Cloud-based Solutions increased by 21% driven by growth in Australia, Hong Kong, and India. Net sales of Other services also grew by 3% in the region. These results were partially offset by a 6% decrease in net sales of Advanced Solutions offerings driven by declines in China. The translation impact of foreign currencies relative to the U.S. dollar had a positive impact of 1% on the year-over-year comparison of the region’s net sales. On a constant currency basis, net sales of Client and Endpoint Solutions increased by 18%, Cloud-based Solutions increased by 17% and Other services increased by 2%, while Advanced Solutions offerings decreased by 8%.

Current wording

The $942,015, or 27.1%, increase in Asia-Pacific net sales for the Thirteen Weeks Ended June 27, 2026 compared to the Thirteen Weeks Ended June 28, 2025 was driven by a 19% increase in net sales of Client and Endpoint Solutions, due to growth in mobility distribution, particularly smartphones, in India. Additionally, the region saw growth in components and desktops in China. Net sales of Advanced Solutions offerings increase by 51% driven by GPU and AI-infrastructure product sets in China. Net sales of Cloud-based Solutions increased by 87% driven by growth in India, Australia and Singapore. Net sales of Other services decreased by 9% in the region. The translation impact of foreign currencies relative to the U.S. dollar had a negative impact of 1% on the year-over-year comparison of the region’s net sales. On a constant currency basis, net sales of Client and Endpoint Solutions increased by 20%, Cloud-based Solutions increased by 85% and Advanced Solutions offerings increased by 50%, while Other services decreased by 7%.

Previous wording

The $149,099, or 18.6%, increase in Latin American net sales for the Thirteen Weeks Ended March 28, 2026 compared to the Thirteen Weeks Ended March 29, 2025 was primarily driven by a 19% increase in net sales of Client and Endpoint Solutions, due to growth in notebooks in Mexico, Miami Export, Colombia, and Peru, growth in components in Miami Export, and growth in desktops in Peru and Mexico. Additionally, net sales of Advanced Solutions offerings increased by 15%, driven by growth in cyber security in Brazil, as well as growth in server sales in Brazil and Colombia. Net sales of Cloud-based Solutions increased by 48% year-over-year driven by growth in Brazil, while net sales of Other services were flat compared to the prior year period. The translation impact of foreign currencies relative to the U.S. dollar had a positive impact of 8% on the year-over-year comparison of the region’s net sales. On a constant currency basis, net sales of Client and Endpoint Solutions increased by 11%, Advanced Solutions increased by 5%, Cloud-based Solutions increased by 33%, while Other services decreased by 10%.

Current wording

The $230,265, or 27.0%, increase in Latin American net sales for the Thirteen Weeks Ended June 27, 2026 compared to the Thirteen Weeks Ended June 28, 2025 was primarily driven by a 32% increase in net sales of Client and Endpoint Solutions, due to growth in notebooks in Miami Export, Peru and Chile, as well as growth in desktops in Mexico, Peru and Colombia. Net sales of Advanced Solutions offerings increased by 9%, led by growth in DC/POS in Brazil and networking in Peru. Net sales of Cloud-based Solutions increased by 71% year-over-year driven by growth in Brazil, while net sales of Other services increased by 57% year-over-year. The translation impact of foreign currencies relative to the U.S. dollar had a positive impact of 8% on the year-over-year comparison of the region’s net sales. On a constant currency basis, net sales of Client and Endpoint Solutions increased by 25%, Cloud-based Solutions increased by 54% and Other services increased by 40%, while net sales of Advanced Solutions were flat.

Previous wording

During the Thirteen Weeks Ended March 28, 2026, we recognized $9,460 of restructuring costs, or 7 basis points of net sales, which primarily relates to restructuring actions taken that impacted certain back office and operational functions as well as certain operational facilities. See Note 8 “Restructuring Costs” for further information regarding the restructuring activities.

Current wording

During the Thirteen Weeks Ended June 27, 2026, we incurred $8,290, or 6 basis points of net sales, of restructuring costs that primarily related to restructuring actions taken that impacted certain back office and operational functions as well as certain operational facilities primarily in our EMEA and North America regions. See Note 8 “Restructuring Costs” to our unaudited condensed consolidated financial statements for further information regarding the restructuring activities.

Previous wording

Our EMEA income from operations margin decreased 8 basis points in the Thirteen Weeks Ended March 28, 2026 compared to the Thirteen Weeks Ended March 29, 2025. This decrease was driven by a 13 basis point decline in gross margin, which was partially driven by lower gross margins on larger enterprise customer deals in our Advanced Solutions offerings categories during the Thirteen Weeks Ended March 28, 2026. This impact was partially mitigated by a reduction in SG&A expenses as a percentage of net sales in the region, including a 2 basis point reduction in rental and occupancy costs and a 2 basis point reduction in depreciation expense. The translation impact of foreign currencies relative to the U.S. dollar had a negative impact of 1 basis point on the year-over-year comparison of the region’s income from operations margin.

Current wording

Our EMEA income from operations margin decreased 14 basis points in the Thirteen Weeks Ended June 27, 2026 compared to the Thirteen Weeks Ended June 28, 2025. This decrease was driven by an increase in expenses as a percentage of net sales in the region, including a 16 basis point increase in restructuring costs and a 7 basis point increase in bad debt expense. These were partially offset by a 3 basis point reduction in depreciation expense and a 2 basis point reduction in repair and maintenance expenses. The translation impact of foreign currencies relative to the U.S. dollar had a negative impact of 1 basis point on the year-over-year comparison of the region’s income from operations margin.

Previous wording

Our Latin American income from operations margin increased 71 basis points in the Thirteen Weeks Ended March 28, 2026 compared to the Thirteen Weeks Ended March 29, 2025, primarily as a result of an increase in gross margin due to higher achievement on Client and Endpoint Solutions and Cloud-based Solutions net sales as well as the favorable impact of a decline in inventory write-offs, which contributed to a combined positive impact of 69 basis points on the region’s income from operations margin. The region also benefited from a reduction in SG&A expenses as a percentage of net sales due to improved leverage on operating expenses as net sales increased from the prior year. The translation impact of foreign currencies relative to the U.S. dollar had a positive impact of 10 basis points on the year-over-year comparison of the region’s income from operations margin.

Current wording

Our Latin American income from operations margin increased 80 basis points in the Thirteen Weeks Ended June 27, 2026 compared to the Thirteen Weeks Ended June 28, 2025, primarily as a result of an increase in gross margin across all product categories, with particular income from operations margin impact coming from our higher-margin Cloud-based Solutions as a result of the increase in net sales within this category as described above. These factors combined to yield a net positive impact of 76 basis points on the region’s income from operations margin. The region also benefited from a reduction in SG&A expenses as a percentage of net sales due to improved leverage on operating expenses as net sales increased from the prior year including a 29 basis point reduction in rental and occupancy costs as well as a 13 basis point reduction in compensation and headcount expenses. These factors were partially offset by an 18 basis point increase in bad debt expense. The translation impact of foreign currencies relative to the U.S. dollar had a positive impact of 9 basis points on the year-over-year comparison of the region’s income from operations margin.

Previous wording

Cash-based compensation expense decreased by $4,324 in the Thirteen Weeks Ended March 28, 2026 compared to the Thirteen Weeks Ended March 29, 2025 due to lower achievement of expected performance targets in the current quarter as well as the transition to stock-based compensation for certain employees subsequent to our initial public offering in October 2024 (the “IPO”).

Current wording

Cash-based compensation expense decreased by $2,846 in the Thirteen Weeks Ended June 27, 2026 compared to the Thirteen Weeks Ended June 28, 2025 due to the transition to stock-based compensation for certain employees subsequent to our initial public offering in October 2024 (the “IPO”).

Previous wording

Stock-based compensation expense increased by $10,438 in the Thirteen Weeks Ended March 28, 2026 compared to the Thirteen Weeks Ended March 29, 2025, primarily due to the acceleration of expense for awards granted to certain employees that are retirement eligible in the Thirteen Weeks Ended March 28, 2026 (see Note 3, “Employee Awards,” to our unaudited condensed consolidated financial statements).

Current wording

Stock-based compensation expense increased by $4,684 in the Thirteen Weeks Ended June 27, 2026 compared to the Thirteen Weeks Ended June 28, 2025, primarily due to the transition from cash-based awards to equity-based awards following the Company’s IPO, resulting in a greater amount of equity awards outstanding during the Thirteen Weeks Ended June 27, 2026 (see Note 3, “Employee Awards,” to our unaudited condensed consolidated financial statements).

Previous wording

Total other (income) expense consists primarily of interest income, interest expense, foreign currency exchange gains and losses, and other non-operating gains and losses. We incurred total other (income) expense of $82,306 in the Thirteen Weeks Ended March 28, 2026 compared to $100,461 in the Thirteen Weeks Ended March 29, 2025. The year-over-year variance was largely driven by a change from a foreign exchange gain, driven primarily by the favorable movement of the U.S. dollar, particularly against our Euro-denominated payables, of $302 in the Thirteen Weeks Ended March 28, 2026, compared to a net foreign currency exchange loss of $23,717 in the Thirteen Weeks Ended March 29, 2025. Additionally, interest expense decreased by $4,353, primarily as a result of lower average debt outstanding in the current quarter due in particular to voluntary principal payments on our senior term loan credit facility (the “Term Loan Credit Facility”), including an incremental voluntary repayment of $200,000 on our Term Loan Credit Facility in February 2026.

Current wording

Total other (income) expense consists primarily of interest income, interest expense, foreign currency exchange gains and losses, and other non-operating gains and losses. We incurred total other (income) expense of $78,427 in the Thirteen Weeks Ended June 27, 2026 compared to $82,931 in the Thirteen Weeks Ended June 28, 2025. The year-over-year variance was largely a result of a variance in net foreign exchange loss, which was $11,716 in the Thirteen Weeks Ended June 27, 2026 compared to a loss of $20,611 in the Thirteen Weeks Ended June 28, 2025, driven primarily by the relatively favorable movement of the U.S. dollar, particularly against the euro and Mexican peso. Additionally, interest income increased by $4,832. These factors were partially offset by a lower equity fair value gain of $5,175, recorded in other expense (income), in the Thirteen Weeks Ended June 27, 2026 compared to the Thirteen Weeks Ended June 28, 2025.

Previous wording

We recorded an income tax provision of $41,739, or an effective tax rate of 29.7%, in the Thirteen Weeks Ended March 28, 2026, compared to $31,214, or an effective tax rate of 31.1% in the Thirteen Weeks Ended March 29, 2025. The tax provision for the Thirteen Weeks Ended March 28, 2026, included $5,118 of tax expense, or 3.6 percentage points of the effective tax rate, which is associated with withholding tax expense from our business operations in the Latin America region, primarily from our Miami Export business, while in the Thirteen Weeks Ended March 29, 2025, this same withholding tax impact was $3,098 of tax expense, or 3.1 percentage points of the effective tax rate.

Current wording

We recorded an income tax provision of $46,677, or an effective tax rate of 29.6%, in the Thirteen Weeks Ended June 27, 2026, compared to $22,059, or an effective tax rate of 36.8% in the Thirteen Weeks Ended June 28, 2025. The tax provision for the Thirteen Weeks Ended June 27, 2026, included $5,731 of tax expense, or 3.6 percentage points of the effective tax rate, which is associated with withholding tax expense from our business operations in the Latin America region, primarily from our Miami Export business, while in the Thirteen Weeks Ended June 28, 2025, this same withholding tax impact was $4,721 of tax expense, or 7.9 percentage points of the effective tax rate.

Previous wording

The $481,517, or 14.1%, increase in EMEA net sales for the Thirteen Weeks Ended March 28, 2026 compared to the Thirteen Weeks Ended March 29, 2025, was primarily driven by a 15% increase in net sales of Client and Endpoint Solutions driven by growth in notebooks in Germany, France, and the United Kingdom, as well as growth in desktops in France and Poland. Net sales of Advanced Solutions offerings increased by 14% driven by growth in networking in Saudi Arabia, Poland and France, as well as growth in server net sales in Germany, the United Kingdom and France. Additionally, net sales of Cloud-based Solutions increased by 30%, led by growth in the United Kingdom and Germany. These results were partially offset by an 8% decrease in net sales of Other services. The translation impact of foreign currencies relative to the U.S. dollar had a positive impact of 10% on the year-over-year comparison of the region’s net sales. On a constant currency basis, net sales of Client and Endpoint Solutions increased by 4%, Advanced Solutions offerings increased by 5% and Cloud-based Solutions increased by 20%, while Other services decreased by 15%.

Current wording

The $748,422, or 10.8%, increase in EMEA net sales for the Twenty-Six Weeks Ended June 27, 2026 compared to the Twenty-Six Weeks Ended June 28, 2025, was primarily driven by an 11% increase in net sales of Client and Endpoint Solutions driven by growth in notebooks in Germany, France and the United Kingdom, as well as growth in desktops in Turkey, France and Poland. Net sales of Advanced Solutions offerings increased by 12% driven by growth in networking in Turkey, Saudi Arabia, the United Kingdom and Poland, as well as growth in server net sales in Germany, Poland, France and Spain. Additionally, net sales of Cloud-based Solutions increased by 37%, led by growth in the United Kingdom, Germany and Spain. These results were partially offset by an 11% decrease in net sales of Other services. The translation impact of foreign currencies relative to the U.S. dollar had a positive impact of 6% on the year-over-year comparison of the region’s net sales. On a constant currency basis, net sales of Client and Endpoint Solutions increased by 4%, Advanced Solutions offerings increased by 6% and Cloud-based Solutions increased by 30%, while Other services decreased by 15%.

Previous wording

Gross profit was $926,016 for the Thirteen Weeks Ended March 28, 2026, compared to $828,762 for the Thirteen Weeks Ended March 29, 2025. Gross margin decreased by 12 basis points in the Thirteen Weeks Ended March 28, 2026 compared to the Thirteen Weeks Ended March 29, 2025. The increase in gross profit dollars was primarily attributable to the previously described increase in our net sales. The decrease in gross margin was driven by our Advanced Solutions offerings category due to a mix shift towards lower-margin GPU and AI-infrastructure products during the Thirteen Weeks Ended March 28, 2026 compared to the Thirteen Weeks Ended March 29, 2025. The translation impact of foreign currencies relative to the U.S. dollar had a positive impact of 4 basis points on the year-over-year comparison of gross margin.

Current wording

Gross profit was $1,884,695 for the Twenty-Six Weeks Ended June 27, 2026, compared to $1,667,921 for the Twenty-Six Weeks Ended June 28, 2025. Gross margin decreased by 4 basis points in the Twenty-Six Weeks Ended June 27, 2026 compared to the Twenty-Six Weeks Ended June 28, 2025. The increase in gross profit dollars was primarily attributable to the previously described increase in our net sales. The decrease in gross margin was driven by our Advanced Solutions offerings category due to a mix shift towards lower-margin GPU and AI-infrastructure products during the Twenty-Six Weeks Ended June 27, 2026 compared to the Twenty-Six Weeks Ended June 28, 2025. The comparison benefited from the impact in the prior year period of a write-down of $10,480 recorded in cost of sales, or 4 basis points of net sales, in connection with the held-for-sale accounting for the sale of a group of assets related to non-core operations in the North America region. The translation impact of foreign currencies relative to the U.S. dollar had a positive impact of 4 basis points on the year-over-year comparison of gross margin.

Previous wording

Total SG&A expenses increased $67,676, but decreased by 12 basis points of net sales in the Thirteen Weeks Ended March 28, 2026 compared to the Thirteen Weeks Ended March 29, 2025. The increase in SG&A dollars was driven by an increase in bad debt expense of $16,241, an increase in professional and outside service costs of $11,996, an increase in compensation and headcount expenses of $10,882 and an increase in stock-based compensation of $10,438. The decrease in SG&A expense as a percentage of net sales is a function of the improved leverage on operating expenses across the year-over-year sales increase, resulting from cost reductions taken over the past year and operating efficiencies from automation under our Xvantage TM platform. The translation impact of foreign currencies relative to the U.S. dollar had a negative impact of 19 basis points on the year-over-year comparison of SG&A expenses as a percentage of net sales.

Current wording

Total SG&A expenses increased $85,773, but decreased by 33 basis points of net sales in the Twenty-Six Weeks Ended June 27, 2026 compared to the Twenty-Six Weeks Ended June 28, 2025. The increase in SG&A dollars was driven by an increase in bad debt expense of $26,498, an increase in compensation and headcount expenses of $21,903, an increase in professional and outside service costs of $18,408 and an increase in stock-based compensation of $15,122. The decrease in SG&A expense as a percentage of net sales is a function of the improved leverage on operating expenses across the year-over-year sales increase, resulting from cost reductions taken over the past year and operating efficiencies from automation under our Xvantage TM platform. The translation impact of foreign currencies relative to the U.S. dollar had a negative impact of 14 basis points on the year-over-year comparison of SG&A expenses as a percentage of net sales.

Previous wording

Income from operations was $222,915, or 1.60% of net sales, in the Thirteen Weeks Ended March 28, 2026, compared to $200,864, or 1.64% of net sales, in the Thirteen Weeks Ended March 29, 2025. Income from operations margin was negatively impacted by the decrease in gross margin, as well as the impact of $9,460, or 7 basis points as a percentage of net sales, of restructuring costs incurred in the Thirteen Weeks Ended March 28, 2026, as described above. These results were partially offset by the reduction in SG&A expenses as a percentage of net sales, as described above. The translation impact of foreign currencies relative to the U.S. dollar had a positive impact of 3 basis points on the year-over-year comparison of our consolidated income from operations margin.

Current wording

Income from operations was $458,885, or 1.61% of net sales, in the Twenty-Six Weeks Ended June 27, 2026, compared to $343,680, or 1.37% of net sales, in the Twenty-Six Weeks Ended June 28, 2025. The comparison of income from operations margin was favorably impacted by the prior year write-downs related to held-for-sale accounting for the sale of our CloudBlue operations and another non-core business in our North America region, which reduced income from operations margin by $43,237, or 17 basis points in the Twenty-Six Weeks Ended June 28, 2025. Additionally, income from operations margin was positively impacted by the reduction in SG&A expenses as a percentage of net sales, as described above. The translation impact of foreign currencies relative to the U.S. dollar had a positive impact of 1 basis point on the year-over-year comparison of our consolidated income from operations margin.

Previous wording

Our North American income from operations margin decreased 25 basis points in the Thirteen Weeks Ended March 28, 2026 compared to the Thirteen Weeks Ended March 29, 2025. The decrease was largely driven by a 52 basis point decline in gross margin. This gross margin decline was partially driven by a mix shift within our Advanced Solutions offerings category toward lower-margin GPU and AI-infrastructure products during the Thirteen Weeks Ended March 28, 2026. This impact was partially mitigated by a reduction in SG&A expenses as a percentage of net sales in the region, driven by an 84 basis point reduction in compensation and headcount expenses largely as a result of the restructuring initiatives taken in the prior year. This benefit was partially offset by increases of 16 basis points in professional and outside services costs, 16 basis points in bad debt expense and 9 basis points in restructuring costs.

Current wording

Our North American income from operations margin increased 28 basis points in the Twenty-Six Weeks Ended June 27, 2026 compared to the Twenty-Six Weeks Ended June 28, 2025. The comparison benefited from the impact in the prior year period of write-downs relating to held-for-sale accounting of our CloudBlue operations and another non-core business described above, which had a negative impact of 46 basis points to the region’s income from operations in the Twenty-Six Weeks Ended June 28, 2025. The region also saw a 65 basis point reduction in compensation and headcount expenses largely as a result of the restructuring initiatives taken in the current and prior year. This benefit was partially offset by an 8 basis point increase in bad debt expense as well as a decline in gross margin driven by a mix shift within our Advanced Solutions offerings category toward lower-margin GPU and AI-infrastructure products during the Twenty-Six Weeks Ended June 27, 2026.

Previous wording

Our Asia-Pacific income from operations margin increased 31 basis points in the Thirteen Weeks Ended March 28, 2026 compared to the Thirteen Weeks Ended March 29, 2025, primarily as a result of an increase in gross margin due to higher achievement on Client and Endpoint Solutions and Cloud-based Solutions net sales as well as the favorable impact of a decline in inventory write-offs, offset partially by growth in lower margin, lower cost-to-serve GPU and AI-infrastructure sales. These factors combined to yield a net positive impact of 18 basis points on the region’s income from operations margin. The region’s income from operations margin also benefited from lower SG&A expenses as a percentage of net sales in the region. Most notably, compensation and headcount expenses decreased by 9 basis points and professional and outside services costs decreased by 7 basis points. The translation impact of foreign currencies relative to the U.S. dollar had a negative impact of 2 basis points on the year-over-year comparison of the region’s income from operations margin.

Current wording

Our Asia-Pacific income from operations margin increased 60 basis points in the Twenty-Six Weeks Ended June 27, 2026 compared to the Twenty-Six Weeks Ended June 28, 2025, primarily as a result of lower SG&A expenses as a percentage of net sales in the region. Most notably, compensation and headcount expenses decreased by 15 basis points, legal claims and settlement expenses decreased by 10 basis points and professional and outside service costs decreased by 7 basis points. The region also saw a net positive impact of 24 basis points from higher gross margin achievement across all product categories, driven particularly by growth in our higher-margin Cloud-based Solutions as described above. These factors were partially offset by an 8 basis point increase in bad debt expense. The translation impact of foreign currencies relative to the U.S. dollar had a negative impact of 3 basis points on the year-over-year comparison of the region’s income from operations margin.

Previous wording

In the Thirteen Weeks Ended March 28, 2026, Corporate costs included $2,188 of costs associated with the write-off of an asset, $2,182 related to investments in certain initiatives to accelerate our growth and profitability and optimize our operations and $2,044 of costs incurred for external services and other expenses in response to the July 2025 ransomware incident. In the Thirteen Weeks Ended March 29, 2025, Corporate costs included $1,287 of stranded costs resulting from the termination of certain operations and IT services under the transition services agreement with CMA CGM Group following the CLS Sale in 2022, as well as $1,241 related to investments in certain initiatives to accelerate our growth and profitability and optimize operations.

Current wording

In the Twenty-Six Weeks Ended June 27, 2026, Corporate costs included $13,815 of costs primarily related to the write-off of assets following the discontinuation of a project, $3,165 of costs incurred for external services and other expenses relating to the July 2025 ransomware incident and $2,322 related to investments in certain initiatives to accelerate our growth and profitability and optimize our operations. In the Twenty-Six Weeks Ended June 28, 2025, Corporate costs included $2,580 of stranded costs resulting from the termination of certain operations and IT services under the transition services agreement with CMA CGM Group following the CLS Sale in 2022, as well as $1,462 related to investments in certain initiatives to accelerate our growth and profitability and optimize operations.

Previous wording

Our cash and cash equivalents totaled $915,987 and $1,864,724 at March 28, 2026 and December 27, 2025, respectively. We finance our working capital needs and investments in the business largely through net income before noncash items, available cash, trade and supplier credit and various financing facilities. As a distributor, our business requires significant investment in working capital, particularly trade accounts receivable and inventory, which is partially financed by vendor trade accounts payable. As a general rule, when sales volumes are increasing, our net investment in working capital dollars typically increases, which generally results in decreased cash flow generated from operating activities. Conversely, when sales volume decreases, our net investment in working capital typically decreases, which generally results in increases in cash flows generated from operating activities. Working capital dollars are calculated at any point in time by adding the trade accounts receivable and inventory less the trade accounts payable balance at that point in time. Our working capital dollars were $4,419,471 at March 28, 2026 and $3,553,339 at December 27, 2025.

Current wording

Our cash and cash equivalents totaled $808,973 and $1,864,724 at June 27, 2026 and December 27, 2025, respectively. We finance our working capital needs and investments in the business largely through net income before non-cash items, available cash, trade and supplier credit and various financing facilities. As a distributor, our business requires significant investment in working capital, particularly trade accounts receivable and inventory, which is partially financed by vendor trade accounts payable. As a general rule, when sales volumes are increasing, our net investment in working capital dollars typically increases, which generally results in decreased cash flow generated from operating activities. Conversely, when sales volume decreases, our net investment in working capital typically decreases, which generally results in increases in cash flows generated from operating activities. Working capital dollars are calculated at any point in time by adding the trade accounts receivable and inventory less the trade accounts payable balance at that point in time. Our working capital dollars were $4,902,107 at June 27, 2026 and $3,553,339 at December 27, 2025.

Previous wording

Investing activities provided net cash of $24,238 and $58,291 during the Thirteen Weeks Ended March 28, 2026 and Thirteen Weeks Ended March 29, 2025, respectively. The net cash provided during the Thirteen Weeks Ended March 28, 2026 was primarily driven by proceeds from the deferred purchase price of factored receivables of $51,834 and proceeds from notes receivable of $10,179, partially offset by capital expenditures of $36,303 and issuance of notes receivable to certain customers of $12,375. The net cash provided during the Thirteen Weeks Ended March 29, 2025 was primarily driven by proceeds from the deferred purchase price of factored receivables of $71,031, partially offset by capital expenditures of $29,737.

Current wording

Investing activities provided net cash of $34,916 and $116,718 during the Twenty-Six Weeks Ended June 27, 2026 and Twenty-Six Weeks Ended June 28, 2025, respectively. The net cash provided during the Twenty-Six Weeks Ended June 27, 2026 was primarily driven by proceeds from the deferred purchase price of factored receivables of $90,629 and proceeds from notes receivable of $15,134, partially offset by capital expenditures of $69,223 and issuance of notes receivable to certain customers of $12,375. The net cash provided during the Twenty-Six Weeks Ended June 28, 2025 was primarily driven by proceeds from the deferred purchase price of factored receivables of $141,445, proceeds from sale of equity investments of $20,805, and proceeds from notes receivable of $20,510, partially offset by capital expenditures of $64,961 and issuance of notes receivable to certain customers of $12,501.

Previous wording

Financing activities provided net cash of $42,458 and $96,759 during the Thirteen Weeks Ended March 28, 2026 and Thirteen Weeks Ended March 29, 2025, respectively. The net cash provided during the Thirteen Weeks Ended March 28, 2026 was primarily driven by net proceeds from revolving and other credit facility of $338,696 and gross proceeds from other debt of $20,885, partially offset by the voluntary repayment of our term loan of $200,000, repurchase of Common Stock of $75,000, dividends paid to stockholders of $18,995, and gross repayments of other debt of $15,233. The net cash provided during the Thirteen Weeks Ended March 29, 2025 was primarily driven by net proceeds from revolving and other credit facilities of $235,374 and gross proceeds from other debt of $17,228, partially offset by the voluntary repayment of our term loan of $125,000, dividends paid to stockholders of $17,377 and gross repayments of other debt of $15,854.

Current wording

Financing activities provided net cash of $447,559 and $272,973 during the Twenty-Six Weeks Ended June 27, 2026 and Twenty-Six Weeks Ended June 28, 2025, respectively. The net cash provided during the Twenty-Six Weeks Ended June 27, 2026 was primarily driven by net proceeds from revolving and other credit facility of $812,823 and gross proceeds from other debt of $32,671, partially offset by the voluntary repayment of our term loan of $200,000, repurchase of Common Stock of $105,000, gross repayments of other debt of $41,210, and dividends paid to stockholders of $38,352. The net cash provided during the Twenty-Six Weeks Ended June 28, 2025 was primarily driven by net proceeds from revolving and other credit facilities of $452,161 and gross proceeds from other debt of $29,820, partially offset by the voluntary repayment of our term loan of $125,000, dividends paid to stockholders of $40,828 and gross repayments of other debt of $32,574.

Previous wording

We have a range of financing facilities which are diversified by type, maturity and geographic region with various financial institutions worldwide with a total capacity of approximately $7,364,330, of which $3,338,169 was outstanding, at March 28, 2026. These facilities have staggered maturities through 2031. Our cash and cash equivalents totaled $915,987 and $1,864,724 at March 28, 2026 and December 27, 2025, respectively, of which $849,990 and $1,074,301, respectively, resided in operations outside of the United States. Cash and cash equivalents located in China were approximately 10% of our total cash and cash equivalents at March 28, 2026 and December 27, 2025, along with additional balances held in Luxembourg, India, Brazil, Malaysia, Canada, and Mexico. Cash held by foreign subsidiaries, including China, can generally be used to finance local operations and cannot, under the current legal and regulatory environment, be transferred to finance other foreign subsidiaries’ operations. Additionally, our ability to repatriate these funds to the United States in an economical manner may be limited. Our cash balances are deposited and/or invested with various financial institutions globally that we endeavor to monitor regularly for credit quality. However, we are exposed to risk of loss on funds deposited with the various financial institutions and money market mutual funds, and we may experience significant disruptions in our liquidity needs if one or more of these financial institutions were to suffer bankruptcy or similar restructuring. As of March 28, 2026 and December 27, 2025, we had book overdrafts of $404,386 and $416,799, respectively, representing checks issued on disbursement bank accounts but not yet paid by such banks. These amounts are classified as accounts payable in our Condensed Consolidated Balance Sheets and are typically paid by the banks in a relatively short period of time.

Current wording

We have a range of financing facilities which are diversified by type, maturity and geographic region with various financial institutions worldwide with a total capacity of approximately $7,368,145, of which $3,794,458 was outstanding, at June 27, 2026. These facilities have staggered maturities through 2031. Our cash and cash equivalents totaled $808,973 and $1,864,724 at June 27, 2026 and December 27, 2025, respectively, of which $754,757 and $1,074,301, respectively, resided in operations outside of the United States. Cash and cash equivalents located in China were approximately 10% of our total cash and cash equivalents at June 27, 2026 and December 27, 2025, along with additional balances held in Luxembourg, India, Brazil, Malaysia, Canada, and Mexico. Cash held by foreign subsidiaries, including China, can generally be used to finance local operations and cannot, under the current legal and regulatory environment, be transferred to finance other foreign subsidiaries’ operations. Additionally, our ability to repatriate these funds to the United States in an economical manner may be limited. Our cash balances are deposited and/or invested with various financial institutions globally that we endeavor to monitor regularly for credit quality. However, we are exposed to risk of loss on funds deposited with the various financial institutions and money market mutual funds, and we may experience significant disruptions in our liquidity needs if one or more of these financial institutions were to suffer bankruptcy or similar restructuring. As of June 27, 2026 and December 27, 2025, we had book overdrafts of $281,732 and $416,799, respectively, representing checks issued on disbursement bank accounts but not yet paid by such banks. These amounts are classified as accounts payable in our Condensed Consolidated Balance Sheets and are typically paid by the banks in a relatively short period of time.

Previous wording

On July 2, 2021, we entered into the Term Loan Credit Facility for $2,000,000, the proceeds of which were also used to, among other things, finance a portion of the acquisition of Ingram Micro by Platinum and repay certain of our existing indebtedness. We recognized $1,920,761, net of debt issuance costs and discount of $59,239 and $20,000, respectively, related to this facility. The Term Loan Credit Facility had an original maturity of July 2, 2028 and amortized in equal quarterly installments aggregating to 1.00% per annum. In June 2023, we voluntarily prepaid $500,000 on our Term Loan Credit Facility over and above normal quarterly installments, which, as a result of this prepayment, are no longer mandatory. In September 2023, we refinanced our Term Loan Credit Facility, reducing the interest rate spread over Secured Overnight Financing Rate (“SOFR”) by 50 basis points. In September 2024, we refinanced our Term Loan Credit Facility, reducing the interest rate spread over SOFR by 25 basis points, eliminating the credit-spread adjustments and extending the maturity date to September 19, 2031. In June 2025, we again amended the Term Loan Credit Facility to reduce the interest rate by 50 basis points. Borrowings under the Term Loan Credit Facility now bear interest at a rate per annum equal to, at our option, either (1) the base rate (which is the highest of (a) the then-current federal funds rate set by the Federal Reserve Bank of New York, plus 0.50%, (b) the prime rate on such day and (c) the one-month SOFR rate published on such date plus 1.00% and is subject to a 1.50% floor) plus a margin of 1.25% or (2) one-, three- or six-month SOFR (subject to a 0.50% floor) plus a margin of 2.25%. In connection with these refinancings, we repaid an incremental $50,000 and $100,000 in September 2023 and September 2024, respectively, of our Term Loan Credit Facility and in June 2024 we voluntarily repaid an incremental $150,000. Upon the closing of the IPO, we used the net proceeds from the offering to repay $233,100 of debt outstanding under our Term Loan Credit Facility and in March 2025 and February 2026, we voluntarily repaid an incremental $125,000 and $200,000, respectively. As of March 28, 2026 and December 27, 2025, $566,119 and $764,849 respectively, remained outstanding under the Term Loan Credit Facility.

Current wording

On July 2, 2021, we entered into the Term Loan Credit Facility for $2,000,000, the proceeds of which were also used to, among other things, finance a portion of the acquisition of Ingram Micro by Platinum and repay certain of our existing indebtedness. We recognized $1,920,761, net of debt issuance costs and discount of $59,239 and $20,000, respectively, related to this facility. The Term Loan Credit Facility had an original maturity of July 2, 2028 and amortized in equal quarterly installments aggregating to 1.00% per annum. In June 2023, we voluntarily prepaid $500,000 on our Term Loan Credit Facility over and above normal quarterly installments, which, as a result of this prepayment, are no longer mandatory. In September 2023, we refinanced our Term Loan Credit Facility, reducing the interest rate spread over Secured Overnight Financing Rate (“SOFR”) by 50 basis points. In September 2024, we refinanced our Term Loan Credit Facility, reducing the interest rate spread over SOFR by 25 basis points, eliminating the credit-spread adjustments and extending the maturity date to September 19, 2031. In June 2025, we again amended the Term Loan Credit Facility to reduce the interest rate by 50 basis points. Borrowings under the Term Loan Credit Facility now bear interest at a rate per annum equal to, at our option, either (1) the base rate (which is the highest of (a) the then-current federal funds rate set by the Federal Reserve Bank of New York, plus 0.50%, (b) the prime rate on such day and (c) the one-month SOFR rate published on such date plus 1.00% and is subject to a 1.50% floor) plus a margin of 1.25% or (2) one-, three- or six-month SOFR (subject to a 0.50% floor) plus a margin of 2.25%. In connection with these refinancings, we repaid an incremental $50,000 and $100,000 in September 2023 and September 2024, respectively, of our Term Loan Credit Facility and in June 2024 we voluntarily repaid an incremental $150,000. Upon the closing of the IPO, we used the net proceeds from the offering to repay $233,100 of debt outstanding under our Term Loan Credit Facility and in March 2025 and February 2026, we voluntarily repaid an incremental $125,000 and $200,000, respectively. As of June 27, 2026 and December 27, 2025, $567,423 and $764,849 respectively, remained outstanding under the Term Loan Credit Facility.

Previous wording

On July 2, 2021, we entered into new ABL Credit Facilities (as defined below) providing for senior secured asset-based, multi-currency revolving loans and letter of credit availability in an aggregate amount of up to $3,500,000 (the “ABL Revolving Credit Facility”) and a senior secured asset-based term loan facility of $500,000 (the “ABL Term Loan Facility”), together with the ABL Revolving Credit Facility, the (“ABL Credit Facilities”), both of which had contractual maturity dates in July 2026. The ABL Term Loan Facility was repaid fully in April 2022. We may borrow under the ABL Revolving Credit Facility only up to our available borrowing base capacity. Borrowings under the ABL Revolving Credit Facility bear interest at a rate per annum equal to, at our option, either (1) the base rate plus a margin ranging (based on the availability under the ABL Revolving Credit Facility) from 0.25% to 0.75% or (2) SOFR (subject to a 0% floor) plus a margin ranging (based on the availability under the ABL Revolving Credit Facility) from 1.25% to 1.75%. In September 2024, we amended the ABL Revolving Credit Facility to, among other things, extend the maturity date to September 20, 2029. As of March 28, 2026 and December 27, 2025, we had borrowings of $80,000 and $0, respectively, under this facility. The weighted-average interest rate on the outstanding borrowings under this facility, as amended, was 5.5% and 6.2% per annum at March 28, 2026 and December 27, 2025, respectively.

Current wording

On July 2, 2021, we entered into new ABL Credit Facilities (as defined below) providing for senior secured asset-based, multi-currency revolving loans and letter of credit availability in an aggregate amount of up to $3,500,000 (the “ABL Revolving Credit Facility”) and a senior secured asset-based term loan facility of $500,000 (the “ABL Term Loan Facility”, and together with the ABL Revolving Credit Facility, the “ABL Credit Facilities”), both of which had contractual maturity dates in July 2026. The ABL Term Loan Facility was repaid fully in April 2022. We may borrow under the ABL Revolving Credit Facility only up to our available borrowing base capacity. Borrowings under the ABL Revolving Credit Facility bear interest at a rate per annum equal to, at our option, either (1) the base rate plus a margin ranging (based on the availability under the ABL Revolving Credit Facility) from 0.25% to 0.75% or (2) SOFR (subject to a 0% floor) plus a margin ranging (based on the availability under the ABL Revolving Credit Facility) from 1.25% to 1.75%. In September 2024, we amended the ABL Revolving Credit Facility to, among other things, extend the maturity date to September 20, 2029. As of June 27, 2026 and December 27, 2025, we had borrowings of $550,000 and $0, respectively, under this facility. The weighted-average interest rate on the outstanding borrowings under this facility, as amended, was 5.4% and 6.2% per annum at June 27, 2026 and December 27, 2025, respectively.

Previous wording

Additionally, our European ABS Facility provides for a borrowing capacity of up to €375,000, or approximately $431,738 at March 28, 2026 exchange rates. This program, which matures in October 2026, requires certain commitment fees and borrowings incur financing costs based on the local short-term bank indicator rate for the currency in which the drawing is made plus a predetermined margin. At March 28, 2026 and December 27, 2025, we had borrowings of $296,896 and $353,100 under this financing program in Europe. The weighted-average interest rate on the outstanding borrowings under this facility, as amended, was 3.2% and 3.5% per annum at March 28, 2026 and December 27, 2025, respectively.

Current wording

Additionally, our European ABS Facility provides for a borrowing capacity of up to €375,000, or approximately $427,125 at June 27, 2026 exchange rates. The facility, which had an original maturity date of October 2026, was amended in July 2026 to extend the maturity date to July 2031. This program requires certain commitment fees and borrowings which incur financing costs based on the local short-term bank indicator rate for the currency in which the drawing is made plus a predetermined margin. At June 27, 2026 and December 27, 2025, we had borrowings of $279,437 and $353,100 under this financing program in Europe. The weighted-average interest rate on the outstanding borrowings under this facility was 3.3% and 3.5% per annum at June 27, 2026 and December 27, 2025, respectively.

Previous wording

At March 28, 2026, our actual aggregate capacity under our ABL Revolving Credit Facility and other receivable-backed programs was approximately $3,930,897, of which $376,896 was used. Even if we do not borrow or choose not to borrow to the full available capacity of certain programs, most of our trade accounts receivable-backed financing programs are subject to certain restrictions outlined in our ABL Credit Facilities. These restrictions generally prohibit us from assigning or transferring the underlying eligible receivables as collateral for other financing programs, unless the underlying eligible receivables are sold in conjunction with a dedicated, non-recourse facility.

Current wording

At June 27, 2026, our actual aggregate capacity under our ABL Revolving Credit Facility and other receivable-backed programs was approximately $3,926,276, of which $829,437 was used. Even if we do not borrow or choose not to borrow to the full available capacity of certain programs, most of our trade accounts receivable-backed financing programs are subject to certain restrictions outlined in our ABL Credit Facilities. These restrictions generally prohibit us from assigning or transferring the underlying eligible receivables as collateral for other financing programs, unless the underlying eligible receivables are sold in conjunction with a dedicated, non-recourse facility.

Previous wording

We also have additional lines of credit, short-term overdraft facilities and other credit facilities with various financial institutions worldwide, which provide for borrowing capacity aggregating to $888,774 at March 28, 2026. Most of these arrangements are on an uncommitted basis and are reviewed periodically for renewal. At March 28, 2026 and December 27, 2025, respectively, we had $416,613 and $102,836 outstanding under these facilities. The weighted-average interest rate on the outstanding borrowings under these facilities, which may fluctuate depending on geographic mix, was 5.6% and 7.3% per annum at March 28, 2026 and December 27, 2025, respectively. At March 28, 2026 and December 27, 2025, letters of credit totaling $177,422 and $168,254, respectively, were issued to various customs agencies and landlords to support our subsidiaries. The issuance of these letters of credit reduces our available capacity under the corresponding agreements by the same amount.

Current wording

We also have additional lines of credit, short-term overdraft facilities and other credit facilities with various financial institutions worldwide, which provide for borrowing capacity aggregating to $894,150 at June 27, 2026. Most of these arrangements are on an uncommitted basis and are reviewed periodically for renewal. At June 27, 2026 and December 27, 2025, respectively, we had $417,302 and $102,836 outstanding under these facilities. The weighted-average interest rate on the outstanding borrowings under these facilities, which may fluctuate depending on geographic mix, was 5.7% and 7.3% per annum at June 27, 2026 and December 27, 2025, respectively. At June 27, 2026 and December 27, 2025, letters of credit totaling $146,669 and $168,254, respectively, were issued to various customs agencies and landlords to support our subsidiaries. The issuance of these letters of credit reduces our available capacity under the corresponding agreements by the same amount.

Previous wording

We are subject to certain customary affirmative covenants, including reporting and cash management requirements, and certain customary negative covenants that limit our and our subsidiaries’ ability to incur additional indebtedness or liens, to dispose of assets, to make certain fundamental changes, to enter into restrictive agreements, to make certain investments, loans, advances, guarantees and acquisitions, to prepay certain indebtedness, to pay dividends or other distributions in respect of our and our subsidiaries’ equity interests and to engage in transactions with affili ates. At March 28, 2026 and December 27, 2025, we were in compliance with all covenants or other requirements in all of our debt arrangements.

Current wording

We are subject to certain customary affirmative covenants, including reporting and cash management requirements, and certain customary negative covenants that limit our and our subsidiaries’ ability to incur additional indebtedness or liens, to dispose of assets, to make certain fundamental changes, to enter into restrictive agreements, to make certain investments, loans, advances, guarantees and acquisitions, to prepay certain indebtedness, to pay dividends or other distributions in respect of our and our subsidiaries’ equity interests and to engage in transactions with affili ates. At June 27, 2026 and December 27, 2025, we were in compliance with the covenants or other requirements in our debt arrangements.

Previous wording

We have several uncommitted factoring programs under which trade accounts receivable of several customers may be sold, without recourse, to financial institutions. Available capacity under these programs is dependent on the level of our trade accounts receivable eligible to be sold into these programs and the financial institutions’ willingness to purchase such receivables. At March 28, 2026 and December 27, 2025, we had a total of $853,863 and $936,934, respectively, of trade accounts receivable sold to and held by the financial institutions under these programs.

Current wording

We have several uncommitted factoring programs under which trade accounts receivable of several customers may be sold, without recourse, to financial institutions. Available capacity under these programs is dependent on the level of our trade accounts receivable eligible to be sold into these programs and the financial institutions’ willingness to purchase such receivables. At June 27, 2026 and December 27, 2025, we had a total of $947,400 and $936,934, respectively, of trade accounts receivable sold to and held by the financial institutions under these programs.

Previous wording

We have guarantees to third parties that provide financing to a limited number of our customers. Net sales under these arrangements accounted for less than one percent of our consolidated net sales for each of the periods presented. The guarantees require us to reimburse the third party for defaults by these customers up to an aggregate of$1,171. The fair value of these guarantees has been recognized as cost of sales on the Consolidated Statements of Income to these customers and is included in accrued expenses and other on the Condensed Consolidated Balance Sheets.

Current wording

We have guarantees to third parties that provide financing to a limited number of our customers. Net sales under these arrangements accounted for less than one percent of our consolidated net sales for each of the periods presented. The guarantees require us to reimburse the third party for defaults by these customers up to an aggregate of$402. The fair value of these guarantees has been recognized as cost of sales on the Consolidated Statements of Income to these customers and is included in accrued expenses and other on the Condensed Consolidated Balance Sheets.

Previous wording

See Note 2,“Summary of Significant Accounting Policies,” to the condensed consolidated financial statements included in Part I, Item 1, of this Quarterly Report on Form 10-Q.

Current wording

See Note 2,“Summary of Significant Accounting Policies,” to the unaudited condensed consolidated financial statements included in Part I, Item 1, of this Quarterly Report on Form 10-Q.