What changed in this filing

/stocks — the workspaceLOADING

Item 8. Financial Statements and Supplementary Data

2026-05-13 compared with 2025-05-14 · 377 added, 276 removed, 614 unchanged (52% of the section changed)

2 unchanged sentences

Report of Independent Registered Public Accounting Firm (PCAOB ID:

Consolidated Balance Sheets

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Report of Independent Registered Public Accounting Firm

Board of Directors and Shareholders

Hawkins, Inc.

To the shareholders and the Board of Directors of Hawkins, Inc.

Opinion on Internal Control over Financial Reporting

We have audited the internal control over financial reporting of Hawkins, Inc.

(a Minnesota corporation) and subsidiaries (the “Company”) as of March 30, 2025, based on criteria established in the 2013 Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”).

In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of March 30, 2025, based on criteria established in the 2013 Internal Control—Integrated Framework issued by COSO.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the consolidated financial statements of the Company as of and for the year ended March 30, 2025, and our report dated May 14, 2025 expressed an unqualified opinion on those financial statements.

and subsidiaries (the “Company”) as of March 29, 2026, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of March 29, 2026, based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements as of and for the year ended March 29, 2026, of the Company and our report, dated May 13, 2026, expressed an unqualified opinion on those financial statements.

As described in Management’s Report on Internal Control Over Financial Reporting, management excluded from its assessment the internal control over financial reporting at WaterSurplus, which was acquired on April 25, 2025, and whose financial statements constitute approximately 2.9% of total assets, excluding goodwill and intangible assets, and 3.2% of net sales of the consolidated financial statement amounts as of and for the year ended March 29, 2026.

Accordingly, our audit did not include the internal control over financial reporting at WaterSurplus.

Basis for Opinion

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We believe that our audit provides a reasonable basis for our opinion.

Our audit of, and opinion on, the Company’s internal control over financial reporting does not include the internal control over financial reporting of Amerochem or Waterguard, wholly-owned subsidiaries, whose financial statements reflect total assets and revenues constituting less than 10 and less than 2 percent, respectively, of the related consolidated financial statement amounts as of and for the year ended March 30, 2025.

As indicated in Management’s Report, Amerochem and Waterguard were acquired during fiscal 2025.

Management’s assertion on the effectiveness of the Company’s internal control over financial reporting excluded internal control over financial reporting of Amerochem and Waterguard.

Definition and Limitations of Internal Control over Financial Reporting

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Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ GRANT THORNTON LLP

/s/ Deloitte & Touche LLP

Minneapolis, Minnesota

Report of Independent Registered Public Accounting Firm

To the shareholders and the Board of Directors of Hawkins, Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheet of Hawkins, Inc.

and subsidiaries (the “Company”) as of March 29, 2026, the related consolidated statements of income, comprehensive income, shareholders’ equity, and cash flows, for the year ended March 29, 2026, and the related notes and the schedule listed in the Index at Item 15 (collectively referred to as the “financial statements”).

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of March 29, 2026, and the results of its operations and its cash flows for the year ended March 29, 2026, in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of March 29, 2026, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report, dated May 13, 2026, expressed an unqualified opinion on the Company’s internal control over financial reporting.

Basis for Opinion

These financial statements are the responsibility of the Company’s management.

Our responsibility is to express an opinion on the Company’s financial statements based on our audit.

We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S.

federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB.

Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks.

Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that our audit provides a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments.

The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Acquisition – WaterSurplus Customer Relationships – Refer to Note 2 to the financial statements

Critical Audit Matter Description

During the first quarter of fiscal year 2026, the Company acquired Surplus Management, Inc.

(d/b/a WaterSurplus) for $149.9 million.

The Company allocated the purchase price to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date, which resulted in WaterSurplus customer relationships being recorded at $76 million.

The Company estimated the fair value of the WaterSurplus customer relationships in accordance with generally accepted valuation techniques.

This approach required management to make significant estimates and assumptions.

Changes in these estimates and assumptions could have a significant impact on the fair value of the WaterSurplus customer relationships.

We identified the projected revenue growth rates, earnings before interest, taxes, depreciation, and amortization (“EBITDA”) margins, and discount rate used in the valuation of the WaterSurplus customer relationships as a critical audit matter due to the subjectivity inherent in these estimates and assumptions.

This required a high degree of auditor judgment and an increased extent of effort, including the need to involve fair value specialists, when performing audit procedures to evaluate the reasonableness of management’s estimates and assumptions.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the projected revenue growth rates, EBITDA margins, and discount rate included the following, among others:

• We tested the effectiveness of internal controls over management’s valuation analysis related to projected revenue growth rates, EBITDA margins, and discount rate.

• We assessed the reasonableness of management’s projections of the revenue growth rates and EBITDA margins by comparing the projections to historical results and certain peer companies.

• We evaluated whether the projections of the revenue growth rates and EBITDA margins were consistent with evidence obtained in other areas of the audit.

• With the assistance of our fair value specialists, we evaluated the reasonableness of the discount rate by:

– Testing the mathematical accuracy of the components of the discount rate.

– Comparing the selected discount rate to market data.

– Evaluating the valuation methodology used.

– Comparing our fair value specialists’ independent range of the discount rate estimate to the discount rate used by management.

– Comparing the estimated weighted average return on assets, internal rate of return, and the discount rate used in the valuation model and evaluating whether they were consistent with each other.

/s/ Deloitte & Touche LLP

Minneapolis, Minnesota

We have served as the Company’s auditor since 2025.

Report of Independent Registered Public Accounting Firm

Board of Directors and Shareholders

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Opinion on the financial statements

We have audited the accompanying consolidated balance sheets of Hawkins, Inc.

(a Minnesota corporation) and subsidiaries (the “Company”) as of March 30, 2025 and March 31, 2024, and the related consolidated statements of income, comprehensive income, shareholders’ equity, and cash flows for each of the three years in the period ended March 30, 2025, and the related notes and financial statement schedule included under Item 15(a) (collectively referred to as the “consolidated financial statements”).

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of March 30, 2025 and March 31, 2024, and the results of its operations and its cash flows for each of the three years in the period ended March 30, 2025, in conformity with accounting principles generally accepted in the United States of America.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the Company’s internal control over financial reporting as of March 30, 2025, based on criteria established in the 2013 Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”), and our report dated May 14, 2025 expressed an unqualified opinion.

We have audited the accompanying consolidated balance sheet of Hawkins, Inc.

(a Minnesota corporation) and subsidiaries (the “Company”) as of March 30, 2025, and the related consolidated statements of income, comprehensive income, shareholders’ equity, and cash flows for the years ended March 30, 2025 and March 31, 2024, and the related notes and financial statement schedule included under Item 15(a) (collectively referred to as the “consolidated financial statements”).

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of March 30, 2025, and the results of its operations and its cash flows for the years ended March 30, 2025 and March 31, 2024, in conformity with accounting principles generally accepted in the United States of America.

Basis for opinion

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We believe that our audits provide a reasonable basis for our opinion.

Critical audit matters

Critical audit matters are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that:

(1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments.

We determined that there are no critical audit matters.

/s/ GRANT THORNTON LLP

We have served as the Company’s auditor since 2020.

We have served as the Company’s auditor from 2020 to 2025.

Minneapolis, Minnesota

May 14, 2025 (except for Notes 3, 7, 15, 16 and 17, as to which the date is May 13, 2026)

HAWKINS, INC.

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Intangible assets, net 232,887 150,121

Deferred compensation plan asset 11,185 9,584

Other 3,726 4,912

Deferred compensation plan assets 12,812 11,185

Other assets 2,988 3,907

Total other assets 488,569 314,071

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Accrued payroll and employee benefits 20,092 19,659

Current portion of long-term debt 9,913 9,913

Income tax payable — 1,943

Short-term lease liabilities 3,000 2,900

Contract liability 1,580 —

Accrued real estate taxes 1,224 1,030

Current portion of deferred compensation liability 1,334 538

Container deposits 1,383 1,914

Current portion of earnout liability 4,529 —

Environmental remediation 7,700 7,700

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Total current liabilities 104,844 97,222

March 29, 2026 March 30, 2025

LONG-TERM LIABILITIES:

Long-term debt, less current portion 138,906 88,818

Long-term lease liability 10,920 9,530

Long-term debt 244,000 149,000

Long-term lease liabilities 14,457 10,920

Pension withdrawal liability 2,763 3,155

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Fiscal Year Ended

March 30, 2025 March 31, 2024 April 02, 2023

March 29, 2026 March 30, 2025 March 31, 2024

Sales $ 1,083,696 $ 974,431 $ 919,162

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Interest expense, net ( 13,507 ) ( 5,432 ) ( 4,282 )

Other income (expense) 641 1,391 ( 334 )

Other income 1,554 641 1,391

Income before income taxes 109,340 114,383 101,145

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Fiscal Year Ended

March 30, 2025 March 31, 2024 April 2, 2023

March 29, 2026 March 30, 2025 March 31, 2024

Net income $ 81,548 $ 84,345 $ 75,363

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Net income — — — 75,363 — 75,363

BALANCE — April 2, 2023 20,850,454 $ 209 $ 44,443 $ 302,424 $ 2,940 $ 350,016

BALANCE — March 31, 2024 20,790,261 $ 208 $ 38,154 $ 364,549 $ 3,115 $ 406,026

Cash dividends declared and paid — — — ( 14,635 ) — ( 14,635 )

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ESPP shares issued 27,554 — 3,040 — — 3,040

Shares repurchased ( 205,943 ) ( 2 ) ( 20,674 ) — — ( 20,676 )

Other comprehensive loss, net of tax — — — — ( 751 ) ( 751 )

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Fiscal Year Ended

March 30, 2025 March 31, 2024 April 2, 2023

March 29, 2026 March 30, 2025 March 31, 2024

CASH FLOWS FROM OPERATING ACTIVITIES:

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Operating leases 3,982 3,475 2,708

(Gain) loss on deferred compensation assets ( 641 ) ( 1,391 ) 334

Gain on deferred compensation assets ( 1,554 ) ( 641 ) ( 1,391 )

Deferred income taxes 3,053 461 ( 1,459 )

Stock compensation expense 8,573 6,498 4,880

(Gain) loss from asset disposals ( 61 ) ( 85 ) ( 2,950 )

Other 87 87 87

Gain from asset disposals ( 202 ) ( 61 ) ( 85 )

Other, net 179 87 87

Changes in operating accounts (using) providing cash, net of acquisitions:

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Income taxes 2,071 ( 4,807 ) ( 1,390 )

Other ( 1,229 ) ( 112 ) ( 443 )

Other, net 147 ( 1,229 ) ( 112 )

Net cash provided by operating activities 144,327 111,096 159,499

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Cash dividends paid ( 15,665 ) ( 14,635 ) ( 13,238 )

New shares issued 2,658 2,242 2,008

ESPP shares issued 3,040 2,658 2,242

Shares surrendered for payroll taxes ( 3,028 ) ( 2,541 ) ( 2,140 )

Shares repurchased — ( 20,676 ) ( 11,272 )

Payments for debt issuance costs ( 764 ) — —

Payments on senior secured revolving loan ( 75,000 ) ( 60,000 ) ( 98,000 )

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Net cash provided by (used in) financing activities 78,583 14,806 ( 37,408 )

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS ( 2,050 ) ( 413 ) 4,070

NET DECREASE IN CASH AND CASH EQUIVALENTS ( 1,189 ) ( 2,050 ) ( 413 )

CASH AND CASH EQUIVALENTS - beginning of year 5,103 7,153 7,566

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SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION-

Cash paid during the year for income taxes $ 34,386 $ 28,631 $ 19,485

Cash paid during the year for income taxes, net of refunds $ 22,685 $ 34,386 $ 28,631

Cash paid for interest 13,650 5,785 4,654

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Note 1 — Nature of Business and Significant Accounting Policies

Nature of Business - We have three reportable segments:

Water Treatment, Industrial, and Health and Nutrition.

The Water Treatment Group specializes in providing chemicals, products, equipment, services and solutions for potable water, municipal and industrial wastewater, industrial process water, non-residential swimming pool water and agricultural water.

Nature of Business - Effective beginning with the first quarter of fiscal 2026, we realigned our reporting segments to reflect how we manage our operations and allocate resources.

We believe this realignment better reflects the value our company provides to our customers and our evolution from a bulk commodity distributor into a specialty ingredients company.

We now organize and manage our business by the following three segments, each of which meets the definition of reportable segments under ASC 280-10, Segment Reporting :

Water Treatment, Food & Health Sciences, and Industrial Solutions.

These segments are defined primarily by product and type of customer.

Information presented in this annual report has been recast to align with the new segments.

• Water Treatment Segment.

Our Water Treatment Group specializes in providing chemicals, filtration media and systems, equipment, services and solutions for potable water, municipal and industrial wastewater, industrial process water, mainly non-residential swimming pool water and agricultural water.

This group has the resources and flexibility to treat systems ranging in size from a single small well to a multi-million-gallon-per-day facility.

The Industrial Group specializes in providing industrial chemicals, products and services to industries such as agriculture, chemical processing, electronics, energy, food, pharmaceutical and plating.

This group also manufactures and sells certain food-grade products, including liquid phosphates, lactates and other blended products.

Our Health and Nutrition Group specializes in providing ingredient distribution, processing and formulation solutions to manufacturers of nutraceutical, functional food and beverage, personal care, dietary supplement and other nutritional food, health and wellness products.

This group offers a diverse product portfolio including minerals, vitamins and amino acids, excipients, joint products, botanicals and herbs, sweeteners and enzymes.

• Food and Health Sciences Segment.

Our Food and Health Sciences Group specializes in processing and formulation solutions as well as ingredient distribution to manufacturers in the nutrition, food, pharmaceutical, and agricultural markets.

This group offers a diverse product portfolio including base chemistry, acid based reactions, minerals, vitamins and amino acids, excipients, botanicals and herbs, sweeteners and enzymes, fertilizers, and food-grade and pharmaceutical salts and ingredients.

• Industrial Solutions Segment.

Our Industrial Solutions Group specializes in providing industrial chemicals, products and services to industries such as industrial manufacturing, chemical processing, electronics, energy, plating, and surface finishing.

This group’s principal products are acids and alkalis.

This segment receives, stores and distributes various chemicals in bulk quantities, including liquid caustic soda, sulfuric acid, hydrochloric acid, urea, phosphoric acid, aqua ammonia and potassium hydroxide.

They perform customer blending of chemicals according to customer formulas and specifications and repackage bulk industrial chemicals to sell in smaller quantities to our customers.

The Industrial Solutions group relies on a specially trained sales staff that works directly with customer on their specific needs.

This group conducts its business primarily through manufacturing locations and terminal operations.

Fiscal Year - Our fiscal year is a 52 or 53-week year ending on the Sunday closest to March 31.

Our fiscal 2025 was 52 weeks, fiscal 2024 was 52 weeks, and fiscal 2023 was 52 weeks.

Fiscal 2026 will be 52 weeks.

Our fiscal 2024, 2025, and 2026 are each 52 weeks.

Principles of Consolidation - The consolidated financial statements include the accounts of Hawkins, Inc.

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Estimates - The preparation of financial statements in conformity with U.S.

generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, particularly receivables, inventories, property, plant and equipment, right-of-use assets, goodwill, intangibles, accrued expenses, short-term and long-term lease liabilities, income taxes and related accounts and the reported amounts of revenues and expenses during the reporting period.

generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, particularly receivables, inventories, property, plant and equipment, right-of-use assets, goodwill, intangibles, deferred compensation plan assets, accrued expenses, environmental remediation, short-term and long-term lease liabilities, pension withdrawal liability, deferred compensation liability, earnout liability, income taxes and related accounts and the reported amounts of revenues and expenses during the reporting period.

Actual results could differ from those estimates.

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The majority of our contracts have a single performance obligation and are short term in nature.

Less than 5 % of our Water Treatment Group revenue relates to construction and engineering contracts that involve the design, engineering, and construction of long-lived assets.

These contracts generally have a single performance obligation that is satisfied over time.

Revenue is recognized over time using cost-to-cost input method based on costs incurred relative to total estimated costs.

Costs and estimated earnings in excess of amounts billed are recorded as contract assets, while billings in excess of costs incurred and estimated earnings are recorded as contract liabilities.

Contract assets are reclassified to accounts receivable when our right to payment becomes unconditional.

We had no contract assets as of March 29, 2026.

Contract liabilities were $ 1.6 million as of March 29, 2026.

HAWKINS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

There were no contract assets or contract liabilities as of March 30, 2025.

Sales taxes that are collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from net sales.

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Costs incurred related to the shipping and the handling of products are included in cost of sales.

HAWKINS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Fair Value Measurements - The financial assets and liabilities that are re-measured and reported at fair value for each reporting period are an interest rate swap, marketable securities held in a deferred compensation retirement plan, and the earnout liability recorded in conjunction with the acquisition of Water Solutions.

There are no fair value measurements with respect to nonfinancial assets or liabilities that are recognized or disclosed at fair value in our consolidated financial statements on a recurring basis.

Fair Value Measurements - The financial assets and liabilities that are re-measured and reported at fair value for each reporting period are an interest rate swap, marketable securities held in a deferred compensation retirement plan, and earnout liabilities recorded in connection with the acquisitions of Water Solutions Unlimited, Inc.

("Water Solutions") and WaterSurplus, which are based on the achievement of certain targets.

We do not have any nonfinancial assets or liabilities that are recognized or disclosed at fair value on a recurring basis in our consolidated financial statements.

Assets and liabilities measured at fair value are classified using the following hierarchy, which is based upon the transparency of inputs to the valuation as of the measurement date:

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The cash balances, maintained at large commercial banking institutions with strong credit ratings, typically exceed federally insured limits.

Trade Receivables and Concentrations of Credit Risk - Financial instruments, which potentially subject us to a concentration of credit risk, principally consist of trade receivables.

At the beginning of fiscal 2024, our trade receivables were $129.3 million.

We sell our principal products to a large number of customers in many different industries.

Trade Receivables and Concentrations of Credit Risk - Financial instruments that potentially subject us to a concentration of credit risk consist principally of trade receivables.

We sell our principal products to a large number of customers across a variety industries.

As of March 29, 2026, no single customer represented more than 10 % of our total trade receivables.

As of March 30, 2025, we had a significant concentration of credit risk, with a single customer representing approximately 11% of our total trade receivables.

There are no other concentrations of credit risk with other single customers from a particular service or geographic area that would significantly impact us in the near term.

We do not believe there are other significant concentrations of credit risk related to customers operating in a particular industry or geographic area that would materially impact us in the near term.

To reduce credit risk, we routinely assess the financial strength of our customers.

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Cost for the other 27 % of our total inventory is determined using the first-in, first-out (“FIFO”) method.

HAWKINS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Leases - We determine if an arrangement is a lease at inception.

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For non-real estate leases, we account for the lease and non-lease components as a single lease component.

HAWKINS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Property, Plant and Equipment - Property is stated at cost and depreciated or amortized over the lives of the assets, using the straight-line method.

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Our annual test for impairment is as of the first day of our fourth fiscal quarter.

As of December 30, 2024, we performed an analysis of qualitative factors for our Water Treatment, Industrial, and Health and Nutrition reporting units to determine whether it is more likely than not that the fair value of either of these reporting units was less than its carrying amount as a basis for determining whether it is necessary to perform a quantitative goodwill impairment test.

As of December 29, 2025, we performed an analysis of qualitative factors for our Water Treatment, Food and Health Sciences, and Industrial Solutions reporting units to determine whether it is more likely than not that the fair value of any of these reporting units was less than its carrying amount as a basis for determining whether it is necessary to perform a quantitative goodwill impairment test.

Based on management’s analysis of qualitative factors, we determined that it was not necessary to perform a quantitative goodwill impairment test for any of these reporting units.

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Based on management’s analysis of qualitative factors, we determined that it was not necessary to perform an annual quantitative impairment test for fiscal 2026, 2025 or 2024.

HAWKINS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Business Combinations - We record business combinations using the acquisition method of accounting.

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Measurement period adjustments are reflected in the period in which they occur.

HAWKINS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Income Taxes - Deferred taxes are provided for differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse.

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Basic and diluted EPS were calculated using the following:

March 30, 2025 March 31, 2024 April 2, 2023

March 29, 2026 March 30, 2025 March 31, 2024

Weighted average common shares outstanding — basic 20,736,815 20,803,872 20,864,348

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To the extent that the hedge is ineffective, changes in the fair value are recognized in the Consolidated Statements of Income.

Selling, General and Administrative Expenses - Our selling, general and administrative expenses consist of expenses related to selling products, including personnel and related expenses, amortization of intangibles, marketing and promotion expenses, and travel expenses;

and administrative expenses, primarily personnel costs, related to certain executive officers, information technology, accounting and human resources;

and the fair value accretion of any earnout liabilities.

Recently Issued Accounting Pronouncements

Income Taxes (Topic 740):

Improvements to Income Tax Disclosures (ASU No.2023-09)

In December 2023, the Financial Accounting Standards Board ("FASB") issued accounting standards update No.

2023-09 to enhance the transparency and decision-usefulness of income tax disclosures and to provide information to better assess how an entity's operations and related tax risks and tax planning and operational opportunities affect its tax rate and prospects for future cash flows.

For public business entities, the amendments in this update are effective for annual periods beginning after December 15, 2024.

The adoption of ASU No.

2023-09 is not expected to have a material impact on the Company's consolidated financial statements but will require disclosure at a lower level of detail when adopted in the Company's Form 10-K for the year ended March 29, 2026 and in periodic reports thereafter.

Recently Adopted Accounting Pronouncements

Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures (ASU No.

In November 2023, the FASB issued accounting standards update No.

2023-07 to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses.

The update requires public entities to disclose, on an annual and interim basis, significant segment expenses that are regularly provided to the chief operating decision maker ("CODM"), the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources.

We adopted this guidance for our annual period ending fiscal 2025.

Our adoption of this ASU impacted the level of detail disclosed in our Segment Information footnote and did not have an impact on the Company's consolidated financial position, results of operations or cash flow.

The Financial Accounting Standards Board ("FASB") periodically issues Accounting Standards Updates ("ASUs") that amend the Financial Accounting Standards Codification ("ASC").

We evaluate the impact of the newly issued accounting guidance to determine the effect, if any, on our consolidated financial statements and related disclosures.

In December 2025, the FASB issued ASU No.

2025-11, Interim Reporting (Topic 270):

Narrow-Scope Improvements , which clarified interim reporting requirements, improves the organization of interim disclosure guidance, and introduces a disclosure principle for material events occurring since the end of the last annual reporting period.

The guidance is effective for interim periods in fiscal years beginning after December 15, 2027, our fiscal 2029.

We do not expect the adoption of this ASU to have a material impact on our consolidated financial statements or interim disclosures in our first quarter, fiscal 2029 10-Q and periodic reports thereafter.

HAWKINS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

In September 2025, the FASB issued ASU 2025-06, Intangibles, Goodwill, and Other Internal-Use Software (Subtopic 350-40):

Targeted Improvements , which modernizes the recognition guidance requiring entities to begin capitalizing software costs when both of the following occur:

(1) Management has authorized and committed funding to the software project and (2) It is probable that the project will be completed and the software will be used to perform the function intended.

ASU 2025-06 is effective for annual periods beginning after December 15, 2027, our fiscal 2029, and interim periods within those annual reporting periods, with early adoption permitted.

We are currently evaluating the impact of the adoption of this standard on our consolidated financial statement disclosures in our first quarter, fiscal 2029 10-Q and periodic reports thereafter.

In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses , which requires public entities to disclose, within the footnotes to the financial statements, disaggregated information about certain income statement expense captions, including disclosure of amounts for purchases of inventory, employee compensation, depreciation and intangible asset amortization, included in each relevant expense caption.

ASU 2024-03 is effective for annual periods beginning after December 15, 2026, our fiscal 2028, and interim periods within fiscal years beginning after December 15, 2027, our fiscal 2029, on a prospective basis, with early adoption and retrospective application permitted.

We are currently evaluating the impact of the adoption of this standard on our consolidated financial statement disclosures in our Form 10-K for fiscal 2028 and periodic reports thereafter.

Recently Adopted Accounting Pronouncements

In December 2023, the FASB issued ASU 2023-09 , Income Tax Disclosures , which enhances the transparency and decision-usefulness of income tax disclosures, including information to better assess how an entity's operations, tax risks, and tax planning strategies affect it effective tax rate and future cash flows.

We adopted ASU 2023-09 on a prospective basis effective for our fiscal year ended March 29, 2026.

The adoption did not impact our consolidated financial statements, but resulted in incremental disclosures within the footnotes of our consolidated financial statements.

Refer to Note 13, Income Taxes for the additional disclosures required by this standard.

Note 2 — Acquisitions

Acquisition of Amerochem Corporation:

On January 31, 2025, we acquired substantially all the assets of Amerochem Corporation ("Amerochem") for $ 44.0 million under the terms of a purchase agreement with Amerochem and its shareholders.

Amerochem distributed water treatment chemicals and equipment to its customers primarily throughout North Carolina.

The $ 44.0 million purchase price was allocated as follows:

$ 22.5 million to customer relationships, to be amortized over 18 years;

$ 0.6 million to trade names, to be amortized over two years;

$ 0.1 million to non-compete agreements, to be amortized over two years;

$ 18.7 million to goodwill;

$ 0.2 million to property, plant and equipment;

and the remaining amount to net working capital.

The goodwill recognized as a result of this acquisition is primarily attributable to strategic and synergistic benefits, as well as the assembled workforce.

Such goodwill is expected to be deductible for tax purposes.

The purchase price allocation is not yet complete due to the timing of the acquisition.

The results of operations since the acquisition date and the assets are included in our Water Treatment segment.

Costs associated with this transaction were not material and were expensed as incurred.

Acquisition of Waterguard, Inc.:

On October 30, 2024, we acquired substantially all the assets of Waterguard, Inc.

("Water Guard") for $ 18.0 million under the terms of a purchase agreement with Water Guard and its shareholders.

Water Guard distributed water treatment chemicals and equipment to its customers primarily throughout North Carolina.

The $ 18.0 million purchase price was allocated as follows:

$ 9.3 million to customer relationships, to be amortized over 15 years;

$ 0.5 million to trade names, to be amortized over two years;

$ 5.1 million to goodwill;

$ 1.2 million to property, plant and equipment;

and the remaining amount to net working capital.

The goodwill recognized as a result of this acquisition is primarily attributable to strategic and synergistic benefits, as well as the assembled workforce.

Such goodwill is expected to be deductible for tax purposes.

The results of operations since the acquisition date and the assets are included in our Water Treatment segment.

Costs associated with this transaction were not material and were expensed as incurred.

Acquisition of Wofford Water Service, Inc.:

On June 28, 2024, we acquired substantially all the assets of Wofford Water Service, Inc.

("Wofford") for $ 3.4 million under the terms of a purchase agreement with Wofford and its shareholders.

Wofford distributed water treatment chemicals and equipment to customers mainly in Mississippi.

The $ 3.4 million purchase price was allocated at follows:

$ 2.2 million to customer relationships, to be amortized over 10 years;

$ 1.0 million to goodwill;

and the remaining amount was allocated to net working capital.

The goodwill recognized as a result of this acquisition is primarily attributable to strategic and synergistic benefits, as well as the assembled workforce.

Such goodwill is expected to be deductible for tax purposes.

The results of operations since the acquisition date and the assets are included in our Water Treatment segment.

Costs associated with this transaction were not material and were expensed as incurred.

Acquisition of Intercoastal Trading, Inc.:

On June 3, 2024, we acquired substantially all the assets of Intercoastal Trading, Inc.

and certain related entities ("Intercoastal") for $ 22.0 million under the terms of a purchase agreement with Intercoastal and its shareholders.

Intercoastal distributes water treatment chemicals and equipment to its customers in Maryland, Delaware and Virginia.

The $ 22.0 million purchase price was allocated as follows:

$ 10.7 million to customer relationships, to be amortized over 15 years;

$ 0.3 million to trade names, to be amortized over two years;

$ 0.1 million to non-compete agreements, to be amortized over one year;

$ 7.2 million to goodwill;

$ 2.4 million to property, plant and equipment;

and the remaining amount to net working capital.

The goodwill recognized as a result of this acquisition is primarily attributable to strategic and synergistic benefits, as well as the assembled workforce.

Such goodwill is expected to be deductible for tax purposes.

We generally pursue business combinations to strengthen our position in existing markets, increase our market share and product offerings and expand into new markets.

Acquisitions are accounted for under the acquisition method of accounting.

For each acquisition, the excess of the purchase consideration over the fair value of the net assets acquired and liabilities assumed is recorded as goodwill, which generally represents the combined value of our existing resources with the organizational talent of the acquired companies’ respective management teams to maximize efficiencies, market share growth and overall financial performance.

For each acquisition, we complete our allocation of purchase price to the fair values of acquired assets and liabilities within a one-year measurement period.

For each acquisition completed in fiscal 2024, fiscal 2025 and fiscal 2026, the results of operations since the acquisition date and the assets are included in our Water Treatment segment, with the exception of one immaterial acquisition in the second quarter of fiscal 2026 that was in our Food and Health Sciences segment.

Costs associated with each acquisition were not material and were expensed as incurred.

Fiscal 2026 Material Acquisitions

Acquisition of WaterSurplus, Inc.:

On April 25, 2025, we acquired substantially all of the assets and assumed certain liabilities of Surplus Management, Inc.

d/b/a WaterSurplus (“WaterSurplus”) for an initial purchase price of approximately $149.9 million under the terms of an asset purchase agreement by and among WaterSurplus and related entities and their shareholders, Panther Acquisition Corporation, and Hawkins, Inc., as well as a related real estate purchase agreement.

In addition, we may be obligated to pay an additional earnout amount based on a target of accumulated gross profit for the first five years after the acquisition.

The maximum earnout liability of $ 53.7 million was discounted and recorded at the estimated present value of $ 43.0 million at the acquisition date.

The recognition of the earnout liability represented a noncash investing activity, as no cash was paid at inception.

WaterSurplus is based in Rockford, IL and delivers sustainable water treatment solutions to customers throughout the United States.

HAWKINS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The following table summarizes the purchase consideration and fair values of assets acquired and liabilities assumed as of the date of acquisition:

(In thousands)

Cash paid $ 149,876

Present value of earnout liability 43,000

Total purchase consideration $ 192,876

Trade accounts receivable $ 3,030

Inventories 4,325

Other current assets 933

Property, plant, and equipment 12,887

Intangible assets

Customer relationships 76,000

Trade names 6,200

Technology 12,000

Accounts payable — trade ( 2,169 )

Other current liabilities ( 2,934 )

Total fair value of assets acquired and liabilities assumed $ 110,272

Goodwill $ 82,604

The expected useful lives of the acquired intangible assets are 15 years for customer relationships, 15 years for trade names and 10 years for technology.

The goodwill recognized as a result of this acquisition is expected to be deductible for tax purposes.

We have completed the purchase price allocation.

The results of operations since the acquisition date and the assets are included in our Water Treatment segment.

Costs associated with this transaction were not material and were expensed as incurred.

Acquisition of Industrial Research Corporation:

In the fourth quarter of fiscal 2024, we acquired substantially all the assets of Industrial Research Corporation ("Industrial Research") for $ 4.6 million under the terms of a purchase agreement with Industrial Research and its shareholders.

Industrial Research distributed water treatment chemicals and equipment to customers primarily in central to northern Louisiana, eastern Texas and southern Arkansas.

The results of operations since the acquisition date and the assets are included in our Water Treatment segment.

Acquisition of The Miami Products & Chemical Company:

In the third quarter of fiscal 2024, we acquired substantially all the assets of The Miami Products & Chemical Company ("Miami Products") for $ 15.5 million under the terms of a purchase agreement with Miami Products and its shareholders.

Miami Products was a bleach manufacturer and distributor serving customers primarily throughout Ohio and the surrounding region.

The results of operations since the acquisition date and the assets are included in our Water Treatment segment.

The following pro forma information has been prepared as if the WaterSurplus acquisition and the borrowing that financed the acquisition had occurred as of the beginning of the earliest fiscal period presented.

The unaudited pro forma information is not necessarily indicative of what our consolidated results of operations actually would have been had the acquisition occurred at the beginning of each fiscal year, nor is it indicative of our future operational results.

Fiscal year ended

(In thousands, except per share data) March 29, 2026 March 30, 2025

Pro forma sales $ 1,085,851 $ 1,007,482

Pro forma net income $ 82,434 $ 75,947

Pro forma basic earnings per share $ 3.98 $ 3.65

Pro forma diluted earnings per share $ 3.95 $ 3.63

The unaudited pro forma financial information above includes non-recurring adjustments directly attributable to the acquisition.

These adjustments include (a) a non-recurring increase to costs of goods sold of approximately $ 1.1 million related to the fair value step-up of acquired inventory, which is not expected to continue beyond the sell-through of the inventory, and (b) acquisition-related costs of approximately $ 1.0 million, primarily consisting of professional fees, which are one-time in nature and not expected to recur.

Sales of WaterSurplus of $ 34.6 million for the Fiscal 2026 were included in our consolidated statements of income.

Operating loss of WaterSurplus of $ 3.9 million for Fiscal 2026 was also included in our condensed consolidated statements of income.

Inclusive of five additional immaterial acquisitions not discussed above, total cash consideration for the acquisitions completed in the twelve months ended March 29, 2026 was $ 167.1 million.

HAWKINS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Acquisition of Water Solutions Unlimited, Inc.:

In the third quarter of fiscal 2024, we acquired substantially all the assets of Water Solutions Unlimited, Inc.

("Water Solutions") under the terms of a purchase agreement with Water Solutions and its shareholders.

We paid $ 60 million at closing and may be obligated to pay an additional amount based on achieving a certain earnings target three years after the acquisition.

Water Solutions is a manufacturer and distributor of water treatment chemicals serving customers primarily throughout Indiana, Illinois and Michigan.

The results of operations since the acquisition date and the assets are included in our Water Treatment segment.

Acquisition of EcoTech Enterprises, Inc.:

In the second quarter of fiscal 2024, we acquired substantially all the assets of EcoTech Enterprises, Inc.

("EcoTech") for $ 3.4 million, under the terms of a purchase agreement with EcoTech and its shareholders.

EcoTech was a water treatment chemical distribution company operating primarily in Arkansas.

The results of operations since the acquisition date and the assets are included in our Water Treatment segment.

Fiscal 2025 Material Acquisitions

We completed four acquisitions in fiscal 2025, including the previously announced acquisitions shown below.

Amerochem Corporation ("Amerochem") was acquired on January 31, 2025 for $ 44.0 million.

Located in North Carolina, Amerochem distributed water treatment chemicals and equipment to its customers located primarily in North Carolina.

Waterguard, Inc.

("Waterguard") was acquired on October 30, 2024 for $ 18.0 million.

Located in North Carolina, Waterguard distributed water treatment chemicals and equipment to its customers located primarily in North Carolina.

Intercoastal Trading, Inc.

("Intercoastal") was acquired on June 3, 2024 for $ 22.0 million.

Located in Maryland, Intercoastal distributed water treatment chemicals and equipment to its customers in Maryland, Delaware, and Virginia.

Inclusive of one immaterial acquisition not discussed above, total cash consideration for the fiscal 2025 acquisitions was $ 87.4 million.

Note 3 — Revenue

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(In thousands) Water

Treatment Industrial Health and

Nutrition Total

Treatment Food and Health Sciences Industrial Solutions Total

Manufactured, blended or repackaged products (1)

$ 488,620 $ — $ 167,710 $ 656,330

Distributed specialty products (2)

— — 113,527 113,527

Bulk products (2)

49,575 — 46,579 96,154

Nutrition — 137,986 — 137,986

Food — 99,278 — 99,278

Pharmaceutical — 27,871 — 27,871

Agricultural — 52,565 — 52,565

Other 5,108 3,000 5,404 13,512

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(In thousands) Water

Treatment Industrial Health and

Nutrition Total

Treatment Food and Health Sciences Industrial Solutions Total

Manufactured, blended or repackaged products (1)

$ 400,849 $ — $ 152,087 $ 552,936

Distributed specialty products (2)

— — 108,789 108,789

Bulk products (2)

39,977 — 47,885 87,862

Nutrition — 144,434 — 144,434

Food — 103,403 — 103,403

Pharmaceutical — 25,864 — 25,864

Agricultural — 45,727 — 45,727

Other 5,663 3,132 5,410 14,205

Total external customer sales $ 446,489 $ 322,560 $ 205,382 $ 974,431

Fiscal Year Ended April 2, 2023:

HAWKINS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Fiscal Year Ended March 31, 2024:

(In thousands) Water

Treatment Industrial Health and

Nutrition Total

Treatment Food and Health Sciences Industrial Solutions Total

Manufactured, blended or repackaged products (1)

$ 327,188 $ — $ 163,655 $ 490,843

Distributed specialty products (2)

— — 109,468 109,468

Bulk products (2)

32,349 — 50,732 83,081

Nutrition — 145,460 — 145,460

Food — 114,516 — 114,516

Pharmaceutical — 20,546 — 20,546

Agricultural — 51,456 — 51,456

Other 3,752 2,582 6,926 13,260

Total external customer sales $ 363,289 $ 334,560 $ 221,313 $ 919,162

(1) For our Water Treatment and Industrial segments, this line includes our non-bulk specialty products that we either manufacture, blend, repackage, resell in their original form, or direct ship to our customers in smaller quantities, and services we provide for our customers.

For our Health and Nutrition segment, this line includes products manufactured, processed or repackaged in our facility and/or with our equipment.

(2) This line includes non-manufactured distributed specialty products in our Health and Nutrition segment, which may be sold out of one of our facilities or direct shipped to our customers.

(3) This line includes bulk products in our Water Treatment and Industrial segments that we do not modify in any way, but receive, store, and ship from our facilities, or direct ship to our customers in large quantities.

HAWKINS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(1) This line includes our non-bulk specialty products in our Water Treatment and Industrial Solutions segments that we either manufacture, blend, repackage, resell in their original form, or direct ship to our customers in smaller quantities, and equipment and services we provide for our customers.

(2) This line includes bulk products in our Water Treatment and Industrial Solutions segments that we do not modify in any way, but receive, store, and ship from our facilities, or direct ship to our customers in large quantities.

Note 4 — Derivative Instruments

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For so long as the hedge is effective, changes in fair value of the cash flow hedge are recorded in other comprehensive income or loss (net of tax) until income or loss from the cash flows of the hedged item is realized.

For fiscal 2025, we recorded $ 1.4 million in other comprehensive income related to unrealized losses (net of tax) on the cash flow hedge.

For fiscal 2024 and 2023, we recorded $ 0.2 million and $ 1.6 million, respectively, in other comprehensive income related to unrealized gains (net of tax) on the cash flow hedge.

Included in other long-term assets on our consolidated balance sheet was $ 2.4 million as of March 30, 2025 and $ 4.3 million as of March 31, 2024.

For fiscal 2026 and 2025, we recorded $ 0.8 million and $ 1.4 million, respectively, in other comprehensive income related to unrealized losses, net of tax, on our cash flow hedge.

For fiscal 2024, we recorded $ 0.2 million in other comprehensive income related to unrealized gains, net of tax, on our cash flow hedge.

The carrying value of our cash flow hedge included in other long-term assets on our consolidated balance sheets was $ 1.3 million as of March 29, 2026 and $ 2.4 million as of March 30, 2025.

By their nature, derivative instruments are subject to market risk.

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The carrying values of cash equivalents, accounts receivable, accounts payable, and accrued expenses approximate fair value because of the short-term nature of these instruments.

Because of the variable-rate nature of our debt under our credit facility, our debt also approximates fair value.

Because of the variable-rate nature of our debt under our credit facility, the carrying value of our debt also approximates fair value.

Assets and Liabilities Measured at Fair Value on a Recurring Basis.

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Our assessment of the significance of a particular item to the fair value measurement in its entirety requires judgment, including the consideration of inputs specific to the asset or liability.

Our financial assets that are re-measured and reported at fair value for each reporting period are an interest rate swap, marketable securities held in a deferred compensation retirement plan, and the earnout liability recorded in conjunction with the acquisition of Water Solutions.

The interest rate swap and assets held in a deferred compensation retirement plan are classified as other long-term assets on our balance sheet, with the portion of the deferred compensation retirement plan assets expected to be paid within twelve months classified as current assets.

The earnout liability is classified as a long-term liability on our balance sheet.

Our financial assets that are re-measured and reported at fair value for each reporting period are an interest rate swap, marketable securities held in a deferred compensation retirement plan, and the earnout liabilities recorded in conjunction with the acquisitions of Water Solutions and WaterSurplus.

The interest rate swap and assets held in a deferred compensation retirement plan are classified as other long-term assets on our balance sheets, with the portion of the deferred compensation retirement plan assets expected to be paid within twelve months classified as current assets.

The Water Solutions earnout liability is classified as other current liabilities on our balance sheets.

The WaterSurplus earnout liability is classified as a long-term liability on our balance sheets.

The fair value of the interest rate swap is determined by the respective counterparties based on interest rate changes.

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The fair value of the deferred compensation is based on the quoted market prices for the mutual funds at the end of the period.

The earnout liability recorded in conjunction with the Water Solutions acquisition is based upon achieving certain targets.

The earnout is based on a target of adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) in year three of the acquisition.

The earnout liabilities recorded in conjunction with the acquisitions of Water Solutions and WaterSurplus are based upon achieving certain targets.

The Water Solutions earnout is based on a target of adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) in year three of the acquisition.

The earnout liability was valued based upon a risk-neutral pricing analysis within a Monte Carlo simulation framework, which is a Level 3 input.

The Monte Carlo simulation assumptions used to estimate the fair value of the earnout included forecasted EBITDA, an estimated EBITDA-specific required rate of return, term period, risk-free rate, and an estimated EBITDA-specific volatility.

Other key inputs included an estimate of our credit-adjusted discount rate and an appropriate risk-free rate over the term of the simulation period.

The earnout liability is adjusted to fair value at each reporting date until settled.

Changes in fair value are included in selling, general and administrative expenses in our Consolidated Statements of Income.

HAWKINS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The following table summarizes the balances of assets measured at fair value on a recurring basis as of March 30, 2025 and March 31, 2024.

The WaterSurplus earnout liability is based on a target of accumulated gross profit for the first five years of the acquisition.

The earnout liability was discounted and recorded at the present value of the anticipated maximum payout amount, which is a Level 3 input.

The earnout liabilities are adjusted to fair value at each reporting date until settled.

Changes in fair value are included in selling, general and administrative expenses in our Condensed Consolidated Statements of Income.

The following table summarizes the balances of assets and liabilities measured at fair value on a recurring basis as of March 29, 2026 and March 30, 2025:

(In thousands) 2026 2025

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Interest rate swap Level 2 1,323 2,373

Earnout liability Level 3 12,604 11,235

Changes in the earnout liability measured at fair value using Level 3 inputs were as follows:

WaterSurplus earnout liability Level 3 44,898 —

Water Solutions earnout liability Level 3 4,529 12,604

The changes in the earnout liability measured at fair value using Level 3 inputs were as follows:

(In thousands)

Earnout liability at March 30, 2025

Fair value adjustments 1,369

Addition for acquisition of WaterSurplus Level 3 43,000

Fair value adjustments to WaterSurplus earnout liability Level 3 1,898

Fair value adjustments to Water Solutions earnout liability Level 3 ( 8,075 )

Earnout liability at March 29, 2026

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Net inventory $ 78,199 $ 83,512

The FIFO value of inventories accounted for under the LIFO method was $ 75.9 million at March 30, 2025 and $ 76.2 million at March 31, 2024.

The remainder of the inventory was valued and accounted for under the FIFO method.

We use the last in, first out (“LIFO”) method of valuing the majority of our inventory, which causes the most recent product costs to be recognized in our consolidated statements of income.

Note 7 — Goodwill and Other Identifiable Intangible Assets

In connection with the segment realignment, goodwill was reallocated to our new reporting units based on their relative fair values as of the realignment date.

Prior period amounts have been recast to reflect our current segment reporting structure, which now reflects the reallocation of $1.2 million from the Industrial Solutions segment to the Food and Health Sciences segment.

The reallocation related to the segment realignment had no impact on consolidated total goodwill.

We performed a quantitative goodwill impairment test for each reporting unit affected by the realignment.

The fair value of each reporting unit exceeded its respective carrying amount, and therefore, no goodwill impairment was recorded.

The carrying amounts of goodwill for each of our three reportable segments were as follows:

(In thousands) Water Treatment Industrial Health and Nutrition Total

Balance as of April 2, 2023

(In thousands) Water Treatment Food and Health Sciences Industrial Solutions Total

Balance as of March 31, 2024

$ 51,959 $ 46,149 $ 5,291 $ 103,399

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$ 170,880 $ 46,871 $ 5,291 $ 223,042

HAWKINS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

As of March 31, 2024 the Company's goodwill balance included accumulated impairment losses of $ 39.1 million related to its Food and Health Sciences segment.

No goodwill impairment charges were recognized during fiscal 2026 or fiscal 2025.

The following is a summary of our identifiable intangible assets as of March 29, 2026 and March 30, 2025:

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Indefinite-life intangible assets 1,227 — 1,227

Total intangible assets, net $ 218,971 $ ( 68,850 ) $ 150,121

Total intangible assets $ 323,029 $ ( 90,142 ) $ 232,887

Gross Amount Accumulated

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Indefinite-life intangible assets 1,227 — 1,227

Total intangible assets, net $ 172,712 $ ( 56,086 ) $ 116,626

Total intangible assets $ 218,971 $ ( 68,850 ) $ 150,121

Intangible asset amortization expense was $ 21.3 million during fiscal 2026, $ 12.8 million during fiscal 2025, and $ 8.5 million during fiscal 2024.

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Note 8 – Debt

As of March 30, 2025, we had in place a second amended and restated credit agreement, as amended (the "Existing Credit Agreement") with U.S.

Bank National Association and other lenders which provided us with secured revolving credit facilities (the "Existing Revolving Loan Facility”) totaling $ 250 million.

The Existing Revolving Loan Facility included a $ 10 million letter of credit subfacility and a $ 25 million swingline subfacility.

The Existing Revolving Loan Facility was scheduled to mature on April 30, 2027.

The Existing Revolving Loan Facility was secured by substantially all of our personal property assets and those of our subsidiaries.

We are party to a second amended and restated credit agreement with U.S.

Bank National Association (“U.S.

Bank”) as administrative agent, sole lead arranger and sole book runner, and the other lenders from time to time party thereto (collectively, the “Lenders”), dated as of March 31, 2022 (and as amended, restated or modified from time to time, the “Credit Agreement”).

A Joinder, Consent and Second Amendment dated April 25, 2025 increased the revolving commitment under the Credit Agreement to provide us with senior secured revolving credit facilities (the “Revolving Loan Facility”) totaling $ 400.0 million.

A Third Amendment dated October 15, 2025, modified terms related to qualified receivables transactions, as defined in the Credit Agreement.

The Revolving Loan Facility includes a $ 10.0 million letter of credit subfacility and $ 25.0 million swingline subfacility.

The Revolving Loan Facility is secured by substantially all of our personal property assets and those of our subsidiaries.

In April, 2026, we drew approximately $ 150 million of additional proceeds to acquire substantially all of the assets of WaterSurplus as discussed in Note 2.

We may use other proceeds from the Revolving Loan Facility for working capital, capital expenditures, restricted payments and other acquisitions permitted under the Credit Agreement, and other general corporate purposes.

We paid fees of approximately $1.0 million in fiscal 2026 associated with the April 2025 refinancing.

The Revolving Loan Facility is scheduled to mature on April 25, 2030.

Borrowings under the Revolving Loan Facility bear interest at a variable rate based on term SOFR plus a margin.

We have an interest rate swap in place to manage the risk associated with a portion of our variable-rate debt.

The notional amount of the swap agreement is $ 60 million.

At March 29, 2026, the effective interest rate on our borrowings was 4.4 %.

In addition to paying interest on the outstanding principal under the Revolving Loan Facility, we were required to pay a commitment fee on the unutilized commitments thereunder.

In addition to paying interest on the outstanding principal under the Revolving Loan Facility, we are required to pay a commitment fee on the unutilized portion of the facility.

The commitment fee was between 0.15 % and 0.25 %, depending on our leverage ratio.

Unamortized debt issuance costs of $ 0.3 million paid in connection with the Existing Credit Facility are reflected as a reduction of debt and are amortized as interest expense over the term of the Existing Revolving Loan Facility.

HAWKINS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The Existing Credit Agreement required us to maintain (a) a minimum fixed charge coverage ratio of 1.15 to 1.00 and (b) a maximum total cash flow leverage ratio of 3.0 to 1.0 .

The Credit Agreement also contained other customary affirmative and negative covenants, including covenants that restricted our ability to incur additional indebtedness, dispose of significant assets, make certain investments, including any acquisitions other than permitted acquisitions, make certain payments, enter into sale and leaseback transactions, grant liens on our assets or enter into rate management transactions, subject to certain limitations.

We were permitted to make distributions, pay dividends and repurchase shares so long as no default or event of default existed or would exist as a result thereof.

The Credit Agreement requires us to maintain (a) a minimum fixed charge coverage ratio of 1.15 to 1.00 and (b) a maximum total cash flow leverage ratio of 3.0 to 1.0 .

The Credit Agreement also contains other customary affirmative and negative covenants, including covenants that restrict our ability to incur additional indebtedness, dispose of significant assets, make certain investments, including any acquisitions other than permitted acquisitions, make certain payments, enter into sale and leaseback transactions, grant liens on our assets or enter into rate management transactions, subject to certain limitations.

We are permitted to make distributions, pay dividends and repurchase shares so long as no default or event of default existed or would exist as a result thereof.

As of March 29, 2026, we were in compliance with all required covenants.

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(In thousands) 2026 2025

Senior secured revolving loan $ 149,000 $ 99,000

unamortized debt issuance costs ( 181 ) ( 269 )

Total debt, net of debt issuance costs 148,819 98,731

current portion of long-term debt, net of current unamortized debt issuance costs ( 9,913 ) ( 9,913 )

Total long-term debt $ 138,906 $ 88,818

The Existing Credit Agreement was further amended after the end of the fiscal year.

See Note 16 to our consolidated financial statements for further information.

Revolving Loan Facility $ 244,000 $ 149,000

Annual maturities of debt are as follows:

(In thousands) 2027 2028 2029 2030 2031 Thereafter

Maturities $ — $ — $ — $ — $ 244,000 $ —

Note 9 — Share-Based Compensation

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Our Board of Directors has approved a performance-based equity compensation arrangement for our executive officers.

This performance-based arrangement provides for the grant of performance-based restricted stock units that represent a possible future issuance of restricted shares of our common shares based on our pre-tax income target for the applicable fiscal year.

This performance-based arrangement provides for the grant of performance-based restricted stock units under our 2019 Equity Incentive Plan (the "2019 Plan") that represent a possible future issuance of restricted shares of our common shares based on our pre-tax income target for the applicable fiscal year.

The actual number of restricted shares to be issued to each executive officer will be determined when our final financial information becomes available after the applicable fiscal year and will be between zero shares and 58,353 shares in the aggregate for fiscal 2026.

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Vested ( 105,600 ) 31.74

Forfeited ( 10,884 ) 34.68

Outstanding at end of fiscal 2024

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The total fair value of performance-based restricted stock units vested was $ 2.7 million in fiscal 2026, $ 3.2 million in fiscal 2025 and $ 3.4 million in fiscal 2024.

HAWKINS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Until the performance-based restricted stock units result in the issuance of restricted stock, the amount of expense recorded each period is dependent upon our estimate of the number of shares that will ultimately be issued and our then-current common share price.

Upon issuance of restricted stock, we record compensation expense over the remaining vesting period using the award date closing price.

Unrecognized compensation expense related to non-vested restricted stock and non-vested restricted share units as of March 30, 2025 was $ 6.4 million and is expected to be recognized over a weighted average period of 1.3 years.

Unrecognized compensation expense related to non-vested restricted stock and non-vested restricted share units as of March 29, 2026 was $ 6.4 million and is expected to be recognized over a weighted average period of 1.0 year.

Restricted Stock Awards.

As part of their retainer, our directors, other than the Chief Executive Officer, receive restricted stock for their Board services.

The restricted stock awards are expensed over a one-year vesting period, based on the market value on the date of grant.

The following table represents the Board’s restricted stock activity for fiscal 2023, 2024, and 2025:

The restricted stock awards are under our 2019 Plan and are expensed over a one-year vesting period, based on the market value on the date of grant.

During the twelve months ended March 29, 2026, certain employees from the WaterSurplus acquisition received restricted stock awards under the 2019 Plan, primarily to incentivize their continued service.

The restricted stock awards will be expensed over a three-year vesting period, based on the market value on the date of grant.

The following table represents the restricted stock activity for fiscal 2024, 2025, and 2026:

Shares Weighted-

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Upon repurchase of the shares, we reduce our common shares for the par value of the shares, with the excess applied against additional paid-in capital.

We repurchased 205,943 common shares at an aggregate purchase price of $ 20.7 million during fiscal 2025.

No shares were repurchased during fiscal 2026.

We repurchased 205,943 common shares at an aggregate purchase price of $ 20.7 million during fiscal 2025.

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In addition to the employer contributions described above, both the profit-sharing plan and the retirement plan include a 401(k) plan that allows employees to contribute pre-tax earnings up to the maximum amount allowed under the IRC, with an employer match of up to 5 % of the employee’s eligible compensation.

HAWKINS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

We have two employee stock ownership plans (“ESOPs”), one covering the majority of our non-bargaining unit employees and the other covering our collective bargaining unit employees.

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Total contribution expense $ 14,144 $ 11,072 $ 11,645

In 2013, we withdrew from a collectively bargained multiemployer pension plan and recorded a liability for our share of the unfunded vested benefits.

In 2013, we withdrew from a collectively bargained multi-employer pension plan and recorded a liability for our share of the unfunded vested benefits.

Payments of approximately $ 0.5 million per year are being made through 2034.

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Environmental Remediation.

In the fourth quarter of fiscal 2024, we recorded a liability of $ 7.7 million related to estimated remediation expenses associated with perchlorinated biphenyls ("PCBs") discovered in the soil at our Rosemount, MN facility during our expansion project.

This expense was recorded as an operating expense within cost of sales in our Consolidated Statements of Income.

In fiscal 2024, we recorded a liability of $ 7.7 million related to estimated remediation expenses associated with perchlorinated biphenyls ("PCBs") discovered in the soil at our Rosemount, Minnesota facility during an expansion project.

This charge was recorded as an operating expense within cost of sales in our Consolidated Statements of Income.

We acquired the property, which had prior heavy industrial use, in fiscal 2012.

While the source of the PCBs is unknown, we have never brought PCBs onto the property or used PCBs on the site.

The liability is not discounted as management expects to incur these expenses within the next twelve months.

Given the many uncertainties involved in assessing environmental claims, our reserves may prove to be insufficient.

While additional expense related to the remediation may be incurred in future periods if currently unknown issues arise, we are unable to estimate the extent of any further financial impact.

The remediation liability is not discounted as management expects to incur these expenses within the next twelve months.

Given the many uncertainties involved in assessing environmental matters, actual remediation costs could differ from our estimates.

While additional remediation expenses are reasonably possible to be incurred in future periods if new information or conditions are identified, we are unable to reasonably estimate the amount or range of any such additional costs at this time.

No expenses were charged against this liability during fiscal 2026 and fiscal 2025.

Asset Retirement Obligations.

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We will continue to monitor the factors surrounding the requirement to record an asset retirement obligation and will recognize the fair value of a liability in the period in which it is incurred and a reasonable estimate can be made.

HAWKINS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Note 13 — Income Taxes

The income tax information presented reflects the prospective adoption of ASU 2023-07.

The adoption affected the disclosure requirement only and did not result in any changes to income tax balances or amounts for periods prior to adoption.

Foreign operations are not material, and therefore our income tax provision consists primarily of U.S.

federal and state income taxes.

The provisions for income taxes for fiscal 2026, 2025 and 2024 were as follows:

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Reconciliations of the provisions for income taxes to the applicable federal statutory income tax rate for fiscal 2026, 2025 and 2024 are listed below:

2025 2024 2023

(In thousands, except percentages) Amount Percentage

Statutory federal income tax $ 22,961 21.0 %

State income taxes, net of federal deduction (1) 5,140 4.7 %

Nontaxable or nondeductible items 827 0.8 %

Other — net ( 1,136 ) ( 1.1 ) %

Total $ 27,792 25.4 %

(1) The states that, in the aggregate, accounted for over 50 percent of the effect of the state and local income taxes shown above were Illinois, Minnesota, Wisconsin

Statutory federal income tax 21.0 % 21.0 %

State income taxes, net of federal deduction 5.0 % 5.4 %

Other — net 0.3 % ( 0.9 ) %

Total 26.3 % 25.5 %

Cash paid for income taxes (net of refunds) consisted of the following:

(In thousands) 2026

Federal $ 16,600

Minnesota $ 1,575

Other States 4,510

Total $ 22,685

The tax effects of items comprising our net deferred tax liability as of March 29, 2026 and March 30, 2025 are as follows:

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As of March 29, 2026, the Company has determined that it is more likely than not that the deferred tax assets at March 29, 2026 will be realized either through future taxable income or reversals of taxable temporary differences.

On July 4, 2025, the One Big Beautiful Bill Act (the “OBBBA”) was enacted into law, introducing significant amendments to U.S.

tax legislation with varying effective dates.

Key provision that impacts us is the expansion of bonus depreciation.

We have incorporated these amendments into our fiscal 2026 tax provision, as applicable, and there was no material impact to our income tax expense or effective tax rate.

We continue to evaluate the legislation.

We are subject to U.S.

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The tax years prior to our fiscal year ended April 2, 2023 are closed to examination by the Internal Revenue Service, and with few exceptions, state and local income tax jurisdictions.

HAWKINS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Note 14 – Leases

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Our leases have remaining lease terms of 1 year to 19 years, some of which include options to extend the lease for up to 10 years .

As of March 30, 2025 and March 31, 2024, our operating lease components with initial or remaining terms in excess of one year were classified on the consolidated balance sheet within right-of-use assets, short-term lease liability and long-term lease liability.

Total lease expense was $ 4.6 million for the twelve months ended March 30, 2025 and $ 4.0 million for the twelve months ended March 31, 2024, and includes leases less than 12 months in duration.

As of March 29, 2026 and March 30, 2025, our operating lease components with initial or remaining terms in excess of one year were classified on the consolidated balance sheet within right-of-use assets, short-term lease liabilities and long-term lease liabilities.

Cash paid for leases was $ 3.8 million for the twelve months ended March 29, 2026 .

Total lease expense was $ 5.2 million for the twelve months ended March 29, 2026, $ 4.6 million for the twelve months ended March 30, 2025, and $4.0 million for the twelve months ended March 31, 2024, and includes leases less than 12 months in duration.

Operating lease right-of-use assets of $ 6.9 million were recognized during the twelve months ended March 29, 2026, in exchange for lease liabilities.

These non‑cash transactions are excluded from the statements of cash flows.

Other information related to our operating leases was as follows:

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Note 15 — Segment Information

Effective beginning with the first fiscal quarter of fiscal 2026, we realigned our reporting segments to reflect organizational changes made and to reflect the way we manage our operations and allocate resources.

We believe this realignment better reflects the value our company provides to our customers and our evolution from a bulk commodity distributor into a specialty ingredients company.

Segment information for fiscal 2025 and fiscal 2024 has been recast to reflect the Company's current reportable segments after realignment.

We organize and manage our business by the following three segments, which meet the definition of reportable segments under ASC 280-10, Segment Reporting:

Water Treatment, Industrial and Health and Nutrition.

Water Treatment, Food and Health Sciences, and Industrial Solutions.

These segments are defined primarily by product and type of customer.

• Water Treatment Segment.

This group has the resources and flexibility to treat systems ranging in size from a single small well to a multi-million-gallon-per-day facility.

• Food and Health Sciences Segment.

• Industrial Solutions Segment.

This group’s principal products are acids and alkalis.

They perform customer blending of chemicals according to customer formulas and specifications and repackage bulk industrial chemicals to sell in smaller quantities to our customers.

The Industrial Solutions group relies on a specially trained sales staff that works directly with customer on their specific needs.

This segment conducts its business primarily through manufacturing locations and terminal operations.

Our chief operating decision-maker (CODM), who is our President and Chief Executive Officer, regularly reviews the consolidated financial statements in their entirety and financial information at the reportable segment level.

The CODM uses operating income and considers budget-to-actual variances on a quarterly basis when making decisions about the allocation of operating and capital resources to each segment.

The CODM uses segment operating income and considers budget-to-actual variances on a quarterly basis when making decisions about the allocation of operating and capital resources to each segment.

The CODM also uses segment operating income for evaluating pricing strategy, to assess the performance of each segment by comparing the results of each segment with one another, and in determining the compensation of certain employees.

The CODM has ultimate responsibility for enterprise decisions and making resource allocation decisions for the Company and the segments.

• Our Water Treatment segment specializes in providing chemicals, products, equipment, services and solutions for potable water, municipal and industrial wastewater, industrial process water, non-residential swimming pool water and agricultural water.

This segment has the resources and flexibility to treat systems ranging in size from a single small well to a multi-million-gallon-per-day facility.

• Our Industrial segment specializes in providing industrial chemicals, products and services to industries such as agriculture, chemical processing, electronics, energy, food, pharmaceutical and plating.

This segment's principal products are acids, alkalis and food-grade and pharmaceutical salts and ingredients.

HAWKINS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

• Our Health and Nutrition segment specializes in providing ingredient distribution, processing and formulation solutions to manufacturers of nutraceutical, functional food and beverage, personal care, dietary supplement and other nutritional food, health and wellness products.

This segment offers a diverse product portfolio including minerals, vitamins and amino acids, excipients, joint products, botanicals and herbs, sweeteners and enzymes.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies.

Product costs and expenses for each segment are based on actual costs incurred along with cost allocations of shared and centralized functions.

Segments are responsible for the sales, marketing and development of their products and services.

Other than our Health and Nutrition segment, the segments do not have separate customer service or purchasing functions.

There are no intersegment sales, and no operating segments have been aggregated.

Raw materials are transferred between segments at material cost, capitalized freight, and capitalized internal production and warehousing costs, with the offset settled in a balance sheet clearing account.

Capitalized freight and capitalized internal production and warehousing costs are calculated and applied to inventory on an item level basis using per unit estimates that are based on historical costs or a time and effort measures as appropriate.

We do not record intersegment sales, and no operating segments have been aggregated.

In fiscal 2026, 2025 and 2024, none of our customers accounted for 10% or more of our total sales.

Summarized financial information for the Company’s reportable segments is presented and reconciled to consolidated financial information in the following tables:

Substantially all of the Company's revenue is derived from customers located in the United States and all of the Company's long-lived assets are located within the United States.

Summarized financial information for the Company’s reportable segments is presented and reconciled to consolidated financial statements in the following tables:

Reportable Segments Water

Treatment Industrial Health and Nutrition Total

Treatment Food and Health Sciences Industrial Solutions Total

(In thousands)

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Cost of sales - operational overhead ( 70,529 ) ( 19,408 ) ( 12,508 )

Gross profit 121,609 72,601 31,328 225,538

Selling, general, and administrative expenses ( 76,865 ) ( 32,981 ) ( 13,916 )

Operating income $ 68,088 $ 34,351 $ 18,854 $ 121,293

Interest expense, net ( 13,507 )

Other income 1,554

Income tax expense ( 27,792 )

Net income $ 81,548

Identifiable assets* $ 561,554 $ 258,186 $ 137,280 $ 957,020

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Cost of sales - operational overhead ( 64,934 ) ( 19,021 ) ( 13,396 )

Gross profit 98,498 67,545 27,593 193,636

Selling, general, and administrative expenses ( 62,287 ) ( 30,720 ) ( 13,357 )

Operating income $ 59,546 $ 41,198 $ 18,430 $ 119,174

Interest expense, net ( 5,432 )

Other income 641

Income tax expense ( 30,038 )

Net income $ 84,345

Identifiable assets* $ 356,994 $ 252,088 $ 130,490 $ 739,572

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Depreciation and amortization $ 18,953 $ 12,510 $ 8,485 $ 39,948

Fiscal Year Ended April 2, 2023:

Reportable Segments Water

Treatment Food and Health Sciences Industrial Solutions Total

Fiscal Year Ended March 31, 2024:

Sales $ 363,289 $ 334,560 $ 221,313 $ 919,162

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Cost of sales - operational overhead ( 50,218 ) ( 21,471 ) ( 18,283 )

Gross profit 67,208 68,115 29,796 165,119

Selling, general, and administrative expenses ( 46,165 ) ( 29,230 ) ( 14,205 )

Operating income $ 52,886 $ 38,652 $ 12,498 $ 104,036

Interest expense, net ( 4,282 )

Other income 1,391

Income tax expense ( 25,782 )

Net income $ 75,363

Identifiable assets* $ 257,898 $ 237,097 $ 134,694 $ 629,689

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Depreciation and amortization $ 12,385 $ 11,473 $ 7,945 $ 31,803

* Unallocated assets not included, consisting primarily of cash and cash equivalents, prepaid expenses, and non-qualified deferred compensation plan assets of $ 27.4 million at March 30, 2025, $ 28.2 million at March 31, 2024 and $ 26.0 million at April 2, 2023

HAWKINS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Note 16 — Subsequent Events

On April 25, 2025, we entered into a second amendment that further amended the Existing Credit Agreement (as amended, the “Credit Agreement”).

The second amendment increased the revolving commitment under the Existing Credit Agreement to provide us with senior secured revolving credit facilities (the “Revolving Loan Facility”) totaling $ 400.0 million.

The Revolving Loan Facility includes a $ 10.0 million letter of credit subfacility and $ 25.0 million swingline subfacility.

Bank, JP Morgan Chase Bank, N.A., Wells Fargo Bank, N.A., and Associated Bank, N.A.

were lenders under the Credit Agreement as of the date of the second amendment.

We drew approximately $ 150 million of the proceeds from the Revolving Loan Facility to acquire substantially all of the assets of WaterSurplus.

We paid fees of approximately $ 1.0 million associated with this refinancing.

The Revolving Loan Facility is scheduled to mature on April 25, 2030.

Also on April 25, 2025, we acquired substantially all of the assets of WaterSurplus for approximately $ 150 million and may be obligated to pay up to an additional $ 53.7 million based on achieving certain earnings targets five years after the closing of the acquisition.

WaterSurplus delivers sustainable water treatment solutions throughout the United States focused on membrane separation systems, engineering and design services, media filtration systems, new equipment and rental unit manufacturing and sales, along with rapid-response PFAS removal solutions for “forever chemicals”.

WaterSurplus serves municipal water customers as well as customers in the food and beverage industry, offering patented products within its filtration business that reduce the frequency of membrane cleaning, resulting in lower energy costs, downtime, and lower overall operational costs.

In April 2025, we realigned our reporting segments to reflect organizational changes made and to reflect the way we manage our operations and allocate resources.

In fiscal 2026, we will have the following reporting segments:

Water Treatment, Health and Food Sciences, and Industrial Solutions.

We believe this realignment better reflects the value our company provides to our customers and our evolution from a bulk commodity distributor into a specialty ingredients company.

* Unallocated assets not included, consisting primarily of cash and cash equivalents, prepaid expenses, and non-qualified deferred compensation plan assets of $ 29.3 million at March 29, 2026, $ 30.3 million at March 30, 2025 and $ 28.2 million at March 31, 2024

Note 16 — Revision of Previously Issued Financial Statements

During the preparation of our consolidated financial statements for the year ended March 29, 2026, we identified an immaterial error related to the classification of a portion of the Company's long-term debt in the prior period.

Based upon evaluation of both quantitative and qualitative factors, we concluded the error to be immaterial to previously reported financial statements, however we revised the previously issued consolidated balance sheet to correct these errors.

Certain amounts previously classified as current maturities of long-term debt were reclassified to long-term debt and an immaterial amount of debt issuance costs were reclassified to noncurrent assets in the accompanying consolidated balance sheet.

The following table summarizes the impact of the reclassification on our consolidated balance sheet:

(In thousands) As Previously Reported Adjustment As Revised

March 30, 2025

Other Assets - Other $ 3,726 $ 181 $ 3,907

Current portion of long-term debt $ 9,913 $ ( 9,913 ) $ —

Long-term debt $ 138,906 $ 10,094 $ 149,000

Note 17 — Reclassifications

In the consolidated balance sheet as of March 30, 2025, other current liabilities of $ 8.7 million were further disaggregated to conform to current year presentation.

These reclassifications had no impact on previously reported net income, total assets, total liabilities, or shareholders' equity, nor on net cash provided by (used in) operating, investing, or financing activities.

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 8. Financial Statements and Supplementary Data