Envista Holdings Corp
For the period ended Oct 2, 2026. Filed Nov 4, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Oct 2, 2026 · Filed Nov 4, 2026
NVST$25.17+0.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-07-03; filed 2026-08-05.
0001757073-26-000066
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-10-02; filed 2026-11-04.
0001757073-26-000087
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 107 previous paragraphs and 107 current paragraphs.
70 unchanged; 21 reworded; 16 added; 16 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 11 previous and 11 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (16)
Current report
COST OF SALES
Current report
OPERATING EXPENSES (INCOME)
Current report
SG&A expenses for the three months ended October 2, 2026 decreased slightly as compared to the comparable period in 2025. The slight decrease is primarily due to lower intangible asset amortization of $4.1 million, partially offset by a $2.6 million increase in investments related to our commercial growth initiatives and $0.7 million of higher restructuring-related costs.
Current report
Realized cumulative foreign currency translation gain represents the reclassification of cumulative foreign currency translation adjustments from Accumulated Other Comprehensive Income (Loss) to earnings following the dissolution of certain legal entities during the three and nine months ended October 2, 2026. The gain was recognized within realized cumulative foreign currency translation gain in the Condensed Consolidated Statements of Operations.
Current report
OTHER (EXPENSE) INCOME, NET
Current report
INTEREST EXPENSE, NET
Current report
Sales and core sales growth for the three months ended October 2, 2026 increased 2.8% and 2.0%, respectively, compared to the comparable period in 2025, driven primarily by an increase in sales price of 1.5% on a period-over-period basis, coupled with an increase in sales volume of 0.5%. Geographically, core sales in developed markets increased by 3.7% due to growth in North America and Western Europe, while core sales in emerging markets decreased by 2.0%, driven by a decrease in sales in China.
Current report
Sales and core sales growth for the nine months ended October 2, 2026 increased 7.5% and 4.4%, respectively, compared to the comparable period in 2025, driven primarily by a 3.1% increase in sales volume on a period-over-period basis, coupled with an increase in sales price of 1.3%. Geographically, core sales in developed markets increased by 6.1% due to strong growth in Western Europe and North America, while core sales in emerging markets decreased by 1.0%, driven by a decrease in sales in China.
Current report
Operating profit margin was 12.2% for the three months ended October 2, 2026, as compared to an operating profit margin of 11.1% for the comparable period of 2025. The 110 basis point increase in operating profit margin was primarily due to an approximate 130 basis points improvement from tariff refunds, 90 basis point improvement resulting from higher sales as discussed above, partially offset by an 80 basis point reduction related to investments in our commercial growth initiatives.
Current report
Operating profit margin was 11.7% for the nine months ended October 2, 2026, as compared to an operating profit margin of 10.3% for the comparable period of 2025. The 140 basis point increase in operating profit margin was primarily due to an approximately 150 basis point improvement resulting from higher sales as discussed above, 140 basis point improvement from tariff refunds, partially offset by 150 basis point reduction related to investments in our commercial growth initiatives.
Current report
Sales and core sales growth for the three months ended October 2, 2026 increased 3.9%, and 4.1%, respectively, compared to the comparable period in 2025, driven primarily by an increase in sales price of 2.4% on a period-over-period basis, coupled with an increase in sales volume of 1.7%. Geographically, core sales in developed markets increased by 3.2% due to growth in North America and Western Europe, while core sales in emerging markets increased 8.6%.
Current report
Sales and core sales growth for the nine months ended October 2, 2026 increased 9.1%, and 7.9%, respectively, compared to the comparable period in 2025, driven primarily by an increase in sales volume of 5.3% on a period-over-period basis, coupled with an increase in sales price of 2.6%. Geographically, core sales in developed markets increased by 8.1% due to strong growth in North America and Western Europe, while core sales in emerging markets increased 6.3%.
Current report
Operating profit margin was 25.1% for the three months ended October 2, 2026, as compared to an operating profit margin of 17.4% for the comparable period of 2025. The 770 basis point increase in operating profit margin was primarily due to an approximately 415 basis point improvement from tariff refunds, 290 basis point improvement resulting from higher sales as discussed above, and 140 basis point improvement due to lower intangible asset amortization, partially offset by 70 basis point reduction related to investments in our commercial growth initiatives.
Current report
Operating profit margin was 20.5% for the nine months ended October 2, 2026, as compared to an operating profit margin of 15.8% for the comparable period of 2025. The 470 basis point increase in operating profit margin was primarily due to an approximately 320 basis point improvement resulting from higher sales as discussed above, approximately 200 basis points improvement due to favorable foreign exchange rates, and approximately 150 basis point improvement from tariff refunds, partially offset by 155 basis point reduction related to investments in commercial growth initiatives.
Current report
New Real Estate Lease Agreement
Current report
On September 2, 2026, we entered into an agreement to lease building space in Irvine, California for our new corporate headquarters. The lease is expected to commence in early 2028, when we begin our regular business activities at the premises following completion of leasehold improvements. Aggregate future fixed lease payments are expected to total approximately $34.2 million, before the effects of contractual rent abatement and other lease provisions. Lease payments are expected to begin on October 1, 2028
Removed paragraphs (16)
Previous report
While the IEEPA tariffs were invalidated by the Supreme Court, the U.S. Administration initiated new tariffs on all imports, subject to certain exceptions, and may impose additional tariffs. As a result, it remains difficult to predict what further trade-related actions governments may take, which may include trade restrictions and additional or increased tariffs and export controls imposed on short notice. While we expect to largely offset the impact of the existing tariffs with mitigating actions including supply chain adjustments, pricing strategies, and cost management, we have already experienced an increase in cost of sales due to higher tariffs. To the extent that we are unable to offset the tariffs or if the tariffs or our countermeasures negatively impact demand, our business, financial condition, results of operations or cash flows will continue to be adversely affected. Any future tariffs and trade restrictions may also adversely affect our business, financial condition, results of operations or cash flows.
Previous report
COST OF SALES AND GROSS PROFIT MARGIN
Previous report
OPERATING EXPENSES
Previous report
SG&A expenses for the three months ended July 3, 2026 increased by $1.0 million as compared to the comparable period in 2025. The increase was primarily due to a $7.2 million increase in investments related to our commercial growth initiatives, partially offset by a $3.2 million gain from the sale of a property and $1.6 million in lower intangible assets amortization.
Previous report
OTHER INCOME (EXPENSE), NET
Previous report
INTEREST COSTS AND FINANCING
Previous report
The decrease in interest expense for the six months ended July 3, 2026 when compared to the comparable period in 2025 was primarily due to lower interest rates.
Previous report
Sales and core sales growth for the three months ended July 3, 2026 increased 5.8% and 3.1%, respectively, compared to the comparable period in 2025, driven primarily by an increase in sales volume of 2.0% on a period-over-period basis, coupled with an increase in sales price of 1.1%. Geographically, core sales in developed markets increased by 2.4% due to strong growth in Western Europe and North America, while core sales in emerging markets increased 4.5%.
Previous report
Sales and core sales growth for the six months ended July 3, 2026 increased 9.9% and 5.6%, respectively, compared to the comparable period in 2025, driven primarily by a 4.4% increase in sales volume, while sales price increased by 1.2%. Geographically, core sales in developed markets increased by 7.2% due to strong growth in Western Europe and North America, while core sales in emerging markets decreased by (0.5)%.
Previous report
Operating profit margin was 12.8% for the three months ended July 3, 2026, as compared to an operating profit margin of 10.2% for the comparable period of 2025. The 260 basis point increase in operating profit margin was primarily due to an approximately 260 basis point improvement related to lower tariff costs due to receipt of tariff refunds, a 100 basis point improvement due to higher sales as discussed above, partially offset by a 100 basis point reduction due to investments related to our commercial growth initiatives.
Previous report
Operating profit margin was 11.5% for the six months ended July 3, 2026, as compared to an operating profit margin of 9.8% for the comparable period of 2025. The 170 basis point increase in operating profit margin was primarily due to an approximately 260 basis point improvement resulting from higher sales as discussed above, 60 basis point improvement related to lower tariff costs due to receipt of tariff refunds, partially offset by 190 basis point reduction related to investments in our commercial growth initiatives.
Previous report
Sales and core sales growth for the three months ended July 3, 2026 increased 9.5%, and 8.5%, respectively, compared to the comparable period in 2025, driven primarily by an increase in sales volume of 5.5% on a period-over-period basis, coupled with an increase in sales price of 3.0%. Geographically, core sales in developed markets increased by 8.9% due to strong growth in Western Europe and North America, while core sales in emerging markets increased 5.6%.
Previous report
Sales and core sales growth for the six months ended July 3, 2026 increased 11.8%, and 9.9%, respectively, compared to the comparable period in 2025, driven primarily by an increase in sales volume of 7.2% on a period-over-period basis, coupled with an increase in sales price of 2.7%. Geographically, core sales in developed markets increased by 10.6% due to strong growth in Western Europe and North America, while core sales in emerging markets increased 5.1%.
Previous report
Operating profit margin was 17.7% for the three months ended July 3, 2026, as compared to an operating profit margin of 15.2% for the comparable period of 2025. The 250 basis point increase in operating profit margin was primarily due to an approximately 530 basis point improvement resulting from higher sales as discussed above, partially offset by 180 basis point reduction related to investments in commercial growth initiatives and 120 basis point reduction due to higher restructuring costs.
Previous report
Operating profit margin was 18.3% for the six months ended July 3, 2026, as compared to an operating profit margin of 15.0% for the comparable period of 2025.The 330 basis point increase in operating profit margin was primarily due to an approximately 540 basis point improvement resulting from higher sales as discussed above, partially offset by 200 basis point reduction related to investments in commercial growth initiatives.
Previous report
There were no material changes to our contractual obligations during the three months ended July 3, 2026.
Reworded paragraphs (21)
Previous wording
For the three and six months ended July 3, 2026, sales derived from customers outside of the United States were 54.5% and 53.7%, respectively, compared to 53.6% and 52.6% for the three and six months ended June 27, 2025, respectively. As a global provider of dental products, equipment, and services, our operations are affected by worldwide, regional and industry-specific economic and political factors. Given the wide range of dental products, software and services provided and geographies served, we do not use any indices other than general economic trends to predict our overall outlook. Our individual businesses monitor key competitors and customers, including to the extent possible their sales, to gauge relative performance and the outlook for the future.
Current wording
For the three and nine months ended October 2, 2026, sales derived from customers outside of the United States were 51.9% and 53.1%, respectively, compared to 51.9% and 52.3% for the three and nine months ended September 26, 2025, respectively. As a global provider of dental products, equipment, and services, our operations are affected by worldwide, regional and industry-specific economic and political factors. Given the wide range of dental products, software and services provided and geographies served, we do not use any indices other than general economic trends to predict our overall outlook. Our individual businesses monitor key competitors and customers including, to the extent possible their sales, to gauge relative performance and the outlook for the future.
Previous wording
Increasing protectionism and economic nationalism may lead to further changes in trade policies and regulations, domestic sourcing initiatives, or other formal and informal measures that could make it more difficult to sell our products in, or restrict our access to, certain markets. During 2025 and continuing into 2026, the U.S. introduced trade policy actions that led to increased import tariffs across a wide range of countries at various rates, including imports from almost all countries and individualized higher tariffs on certain other countries, such as China. In February 2026, the U.S. Supreme Court invalidated broad-based tariffs predicated on the International Emergency Economic Powers Act (IEEPA). On April 20, 2026, Customs and Border Protection launched Phase 1 of an administrative IEEPA tariff refund process. Overall, we paid approximately $30 million in IEEPA related tariffs. We have claimed a refund of approximately $15 million in Phase 1 of the IEEPA tariff refund process. The remaining tariff amounts are covered by, or are expected to be covered by, subsequent phases of the IEEPA tariff refund process. To date, we have identified additional refund amounts eligible under Phase 2 of the IEEPA tariff refund process and will pursue those refunds consistent with any articulated procedures or otherwise by legal process. Given the nature of these refunds and the uncertainty with respect to the timing and availability, we record such benefits upon receiving the funds. In the second quarter of 2026, we received and recorded $12.6 million in tariff refunds as a component of cost of sales in the accompanying Condensed Consolidated Statements of Operations related to our Phase 1 submission. As to recoverability associated with any remaining refunds, they continue to be subject to uncertainty and further legal, regulatory, and administrative developments.
Current wording
Changes in trade policies and regulations, domestic sourcing initiatives, or other formal and informal measures, could make it more difficult to sell our products in, or restrict our access to, certain markets. During 2025 and continuing into 2026, the U.S. introduced trade policy actions that led to increased import tariffs across a wide range of countries at various rates, including imports from almost all countries and individualized higher tariffs on certain other countries, such as China. In February 2026, the U.S. Supreme Court invalidated broad-based tariffs predicated on the International Emergency Economic Powers Act (IEEPA). We paid approximately $30 million in IEEPA-related tariffs. As of October 2, 2026, we received and recorded approximately $28.2 million of tariff refunds as a component of cost of sales in the accompanying Condensed Consolidated Statements of Operations. Given the uncertainty with respect to the timing and availability of refunds, we do not record refunds until receipt. As to recoverability associated with any remaining refunds, they continue to be subject to uncertainty and further legal, regulatory, and administrative developments.
Previous wording
On a period-over-period basis, currency exchange rates positively impacted reported sales by 1.6% and 2.8% for the three and six months ended July 3, 2026 compared to the comparable periods of 2025, primarily due to the weakening U.S. dollar against most major currencies. Any future weakening of the U.S. dollar against major currencies would positively impact our sales and results of operations for the remainder of the year, and any strengthening of the U.S. dollar against major currencies would adversely impact our sales and results of operations for the remainder of the year.
Current wording
On a period-over-period basis, currency exchange rates did not have an impact on reported sales for the three months ended October 2, 2026 and positively impacted reported sales by 2.0% for the nine months ended October 2, 2026 compared to the comparable periods of 2025, primarily due to the weakening U.S. dollar against most major currencies. A weakening of the U.S. dollar against major currencies would positively impact our sales and results of operations for the remainder of the year, and a strengthening of the U.S. dollar against major currencies would adversely impact our sales and results of operations for the remainder of the year.
Previous wording
We also hold certain receivables and payables denominated in a currency other than the U.S dollar. Movement in the related foreign currency rates in relation to the U.S. dollar may also impact our results of operations.
Current wording
We also hold certain receivables and payables denominated in currencies other than the U.S dollar. Movement in the related foreign currency rates in relation to the U.S. dollar may also impact our results of operations.
Previous wording
All comparisons, variances, increases or decreases discussed below are for the three and six months ended July 3, 2026, compared to the three and six months ended June 27, 2025.
Current wording
All comparisons, variances, increases or decreases discussed below are for the three and nine months ended October 2, 2026, compared to the three and nine months ended September 26, 2025.
Previous wording
Sales for the three months ended July 3, 2026 increased 7.1% while core sales growth increased by 5.0% as compared to the comparable period in 2025. An increase in sales volume of 3.2% positively impacted sales on a period-over-period basis, coupled with an increase in sales price of 1.8%. Geographically, core sales in developed markets increased by 4.9% due primarily to strong growth in Western Europe and North America, while core sales in emerging markets increased by 4.7%.
Current wording
Sales for the three months ended October 2, 2026 increased 3.2% while core sales growth increased by 2.7% as compared to the comparable period in 2025. An increase in sales price of 1.8% positively impacted sales on a period-over-period basis, coupled with an increase in sales volume of 0.9%. Geographically, core sales in developed markets increased by 3.5% due primarily to growth in North America and Western Europe, while core sales in emerging markets increased by 0.4%, despite a decrease in sales in China.
Previous wording
Sales for the six months ended July 3, 2026 increased 10.5% while core sales growth increased by 7.1% as compared to the comparable period in 2025. An increase in sales volume of 5.3% positively impacted sales on a period-over-period basis, coupled with an increase in sales price of 1.8%. Geographically, core sales in developed markets increased by 8.5% due to strong growth in Western Europe and North America, while core sales in emerging markets increased 0.8%.
Current wording
Sales for the nine months ended October 2, 2026 increased 8.1% while core sales growth increased by 5.6% as compared to the comparable period in 2025. An increase in sales volume of 3.8% positively impacted sales on a period-over-period basis, coupled with an increase in sales price of 1.8%. Geographically, core sales in developed markets increased by 6.8% due to strong growth in North America and Western Europe, while core sales in emerging markets increased 0.7%, despite a decrease in sales in China.
Previous wording
Cost of sales for the three months ended July 3, 2026, increased by $11.3 million as compared to the comparable period in 2025, and was driven primarily by higher sales resulting in an additional $13.5 million in costs of products sold.
Current wording
Cost of sales for the three months ended October 2, 2026, decreased by $8.8 million as compared to the comparable period in 2025, primarily driven by the receipt of $15.6 million in tariff refunds, partially offset by higher sales resulting in an additional $5.8 million in costs of products sold.
Previous wording
Cost of sales for the six months ended July 3, 2026, increased $45.8 million as compared to the comparable period in 2025, and was driven primarily by higher sales resulting in an additional $35.5 million in costs of products sold, and an $8.2 million increase in restructuring costs.
Current wording
Cost of sales for the nine months ended October 2, 2026, increased $37.0 million as compared to the comparable period in 2025, primarily driven by higher sales resulting in an additional $57.0 million in costs of products sold and by $7.2 million of higher restructuring-related costs, partially offset by the receipt of $28.2 million in tariff refunds.
Previous wording
SG&A expenses for the six months ended July 3, 2026, increased $26.9 million as compared to the comparable period in 2025. The increase was primarily due to a $20.3 million increase in investments related to our commercial growth initiatives, $14.8 million increase in costs due to unfavorable foreign exchange rates, partially offset by $8.0 million in lower costs related to restructuring activities and by a $3.2 million gain from sale of a property.
Current wording
SG&A expenses for the nine months ended October 2, 2026, increased $26.7 million as compared to the comparable period in 2025. The increase was primarily due to a $22.9 million increase in investments related to our commercial growth initiatives and a $15.2 million increase in costs due to unfavorable foreign exchange rates, partially offset by $7.2 million in lower restructuring-related costs and $5.7 million of lower intangible asset amortization.
Previous wording
R&D expenses for the three and six months ended July 3, 2026 increased by $2.1 million and $6.8 million, respectively, as compared to the comparable periods in 2025. The increase was primarily due to higher investment in new product innovation to support future growth.
Current wording
R&D expenses for the three and nine months ended October 2, 2026 increased by $1.0 million and $7.8 million, respectively, as compared to the comparable periods in 2025. The increase was primarily due to higher investment in new product innovation to support future growth.
Previous wording
Other income (expense), net for the three months ended July 3, 2026 and June 27, 2025, and for the six months ended June 27, 2025 primarily consists of net gains on investments held in a rabbi trust. Other expense, net for the six months ended July 3, 2026 consists of losses on equity investments, partially offset by gains on investments held in a rabbi trust.
Current wording
Other (expense) income, net for the three and nine months ended October 2, 2026, primarily consisted of losses on equity investments of $7.6 million and $9.6 million, respectively, partially offset by gains on investments held in a rabbi trust, while Other (expense) income, net for the three and nine months ended September 26, 2025, primarily consisted of net gains on investments held in a rabbi trust.
Previous wording
The increase in interest expense for the three months ended July 3, 2026 when compared to the comparable period in 2025 was primarily the result of a higher interest rate on the revolving credit facility borrowings used to pay the outstanding balance of the convertible senior notes due in 2025.
Current wording
Interest expense for the three and nine months ended October 2, 2026 decreased compared to the comparable periods in 2025, primarily due to a lower interest rate on the 2028 Term Loan, partially offset by higher interest rates on the 2028 Euro Term Loan and revolving credit facility borrowings.
Previous wording
Our effective tax rate for the three and six months ended July 3, 2026 of 27.8% and 27.0%, respectively, differed from the comparable periods in 2025 primarily due to our geographical mix of earnings and the impact of a valuation allowance against certain U.S. interest carryforwards.
Current wording
Our effective tax rate for the three and nine months ended October 2, 2026 of (1.6)% and 4.2%, respectively, differed from the comparable periods in 2025 primarily due to our geographical mix of earnings, the impact of a valuation allowance against certain U.S. interest carryforwards, the effects of the dissolution of certain legal entities resulting in a nontaxable foreign currency translation gain, and a tax benefit from the reclassification of tax effects from accumulated other comprehensive loss in 2026 and tax expense from a related change in the indefinite reinvestment assertion in 2025.
Previous wording
We assess our liquidity in terms of our ability to generate cash to fund our operating and investing activities. We continue to generate substantial cash from operating activities and believe that our operating cash flow and other sources of liquidity are sufficient to allow us to manage our capital structure on a short-term and long-term basis and continue investing in existing businesses and consummating strategic acquisitions.
Current wording
We assess our liquidity in terms of our ability to generate cash to fund our operating and investing activities. We continue to generate cash from operating activities and believe that our operating cash flow and other sources of liquidity are sufficient to allow us to manage our capital structure on a short-term and long-term basis and continue investing in existing businesses and consummating strategic acquisitions.
Previous wording
Net cash provided by operating activities was $115.9 million during the six months ended July 3, 2026, as compared to net cash provided by operating activities of $89.0 million for the comparable period of 2025. The increase was primarily due to higher net income and timing of cash collections and vendor payments, partially offset by higher incentive compensation payments.
Current wording
Net cash provided by operating activities was $193.8 million during the nine months ended October 2, 2026, as compared to net cash provided by operating activities of $167.7 million for the comparable period of 2025. The increase was primarily due to the timing of cash collections and vendor payments, partially offset by higher incentive compensation payments.
Previous wording
Net cash used in investing activities was $83.2 million for the six months ended July 3, 2026, as compared to net cash used in investing activities of $25.9 million for the comparable period in 2025. The increase in net cash used was primarily due to the acquisition of Versah combined with higher net payments for purchases of property, plant and equipment.
Current wording
Net cash used in investing activities was $96.3 million for the nine months ended October 2, 2026, as compared to net cash used in investing activities of $35.6 million for the comparable period in 2025. The increase in net cash used was primarily due to the acquisition of Versah combined with higher net payments for purchases of property, plant and equipment.
Previous wording
Net cash used in financing activities was $106.3 million for the six months ended July 3, 2026 compared to net cash used in financing activities of $104.0 million for the comparable period of 2025. The slight year-over-year increase was primarily driven by stock repurchases.
Current wording
Net cash used in financing activities was $115.9 million for the nine months ended October 2, 2026 compared to net cash used in financing activities of $145.7 million for the comparable period of 2025. The decrease in net cash used was primarily driven by lower stock repurchases.
Previous wording
As of July 3, 2026, we held $1,125.6 million of cash and cash equivalents that were held on deposit with financial institutions. Of this amount, $271.3 million was held within the United States and $854.3 million was held outside of the United States. We will continue to have cash requirements to support working capital needs, capital expenditures and acquisitions, pay interest and service debt, pay taxes and any related interest or penalties, fund our restructuring activities as required and support other business needs. We generally intend to use available cash, internally generated funds and our revolving credit facility to meet these cash requirements, but in the event that additional liquidity is required, particularly in connection with acquisitions, we may need to enter into new credit facilities or access the capital markets. We may also access the capital markets from time to time to take advantage of favorable interest rate environments or other market conditions. However, there is no guarantee that we will be able to obtain alternative sources of financing on commercially reasonable terms or at all. See “Item 1A. Risk Factors—Risks Related to Our Business” in our 2025 10-K.
Current wording
As of October 2, 2026, we held $1,158.8 million of cash and cash equivalents that were held on deposit with financial institutions. Of this amount, $282.0 million was held within the United States and $876.8 million was held outside of the United States. We will continue to have cash requirements to support working capital needs, capital expenditures and acquisitions, pay interest and service debt, pay taxes and any related interest or penalties, fund our restructuring activities as required and support other business needs. We generally intend to use available cash, internally generated funds and our revolving credit facility to meet these cash requirements, but in the event that additional liquidity is required, particularly in connection with acquisitions, we may need to enter into new credit facilities or access the capital markets. We may also access the capital markets from time to time to take advantage of favorable interest rate environments or other market conditions. However, there is no guarantee that we will be able to obtain alternative sources of financing on commercially reasonable terms or at all. See “Item 1A. Risk Factors—Risks Related to Our Business” in our 2025 10-K.
Previous wording
While repatriation of some cash held outside the United States may be restricted by local laws, most of our foreign cash could be repatriated to the United States. Under the Tax Cut and Jobs Act of 2017 (“TCJA”) and the associated transition tax, in general, repatriation of cash to the United States can be completed with no incremental U.S. tax; however, repatriation of cash could subject us to non-U.S. jurisdictional taxes on distributions. We continue to indefinitely reinvest all other outside basis differences to the extent reversal would incur a significant tax liability.
Current wording
While repatriation of some cash held outside the United States may be restricted by local laws, most of our foreign cash could be repatriated to the United States. Under the Tax Cut and Jobs Act of 2017 and the associated transition tax, in general, repatriation of cash to the United States can be completed with no incremental U.S. tax; however, repatriation of cash could subject us to non-U.S. jurisdictional taxes on distributions. We continue to indefinitely reinvest all other outside basis differences to the extent reversal would incur a significant tax liability.
Previous wording
On February 5, 2025, our Board of Directors authorized a stock repurchase program pursuant to which we may repurchase up to $250.0 million of our outstanding common stock through December 31, 2026. On May 5, 2026, our Board of Directors authorized a new stock repurchase program pursuant to which we may repurchase up to an additional $300.0 million of our outstanding common stock through December 31, 2029 (together with the February 5, 2025 stock repurchase program, the “Repurchase Programs”). Stock repurchases made in connection with the Repurchase Programs totaled approximately $267.1 million or 13.2 million shares to date, with approximately $58.6 million or 2.4 million shares and $101.2 million or 4.0 million shares repurchased during the three and six months ended July 3, 2026, respectively. Refer to Part II, Item 2 “Unregistered Sales of Equity Securities and Use of Proceeds” in this Quarterly Report on Form 10-Q for more details. The cash outflows associated with the Company’s stock repurchases are classified in financing activities in the accompanying Condensed Consolidated Statements of Cash Flows.
Current wording
On February 5, 2025, our Board of Directors authorized a stock repurchase program pursuant to which we may repurchase up to $250.0 million of our outstanding common stock through December 31, 2026. On May 5, 2026, our Board of Directors authorized a new stock repurchase program pursuant to which we may repurchase up to an additional $300.0 million of our outstanding common stock through December 31, 2029 (together with the February 5, 2025 stock repurchase program, the “Repurchase Programs”). Stock repurchases made in connection with the Repurchase Programs totaled approximately $277.1 million or 13.6 million shares to date, with approximately $10.0 million or 0.4 million shares and $111.2 million or 4.4 million shares repurchased during the three and nine months ended October 2, 2026, respectively. Refer to Part II, Item 2 “Unregistered Sales of Equity Securities and Use of Proceeds” in this Quarterly Report on Form 10-Q for more details. The cash outflows associated with the Company’s stock repurchases are classified in financing activities in the accompanying Condensed Consolidated Statements of Cash Flows.