Quantitative and Qualitative Disclosures About Market Risk
−Removed: Currency Exchange Rate Risk
−Removed: Our operations are primarily located in the U.S., but we operate in approximately 80 countries globally.
−Removed: A significant portion of our sales are from EMEA, where fluctuations in the rate of exchange between the U.S.
−Removed: dollar and the local currency could adversely affect our financial results, including income and losses as well as assets and liabilities.
−Removed: During the three and nine months ended January 23, 2026, the Company’s net sales in international markets were approximately 69% and 70%, respectively, of the total Company net sales, as compared to 66% for both the three and nine months ended January 24, 2025.
−Removed: Due to the global nature of our operations, we are exposed to currency exchange rate changes, which may cause fluctuations in earnings and cash flows.
−Removed: For example, a 10% strengthening or weakening of the major non-U.S.
−Removed: currencies against the U.S.
−Removed: dollar in the three and nine months ended January 23, 2026 would have resulted in an increase/decrease to net sales by approximately $55 million and $160 million, respectively, as compared to $45 million and $130 million for the three and nine months ended January 24, 2025, respectively.
+Added: Due to the global nature of our operations, we are exposed to currency exchange rate changes, which may cause fluctuations in earnings, cash flows, assets and liabilities.
+Added: At times, we use foreign currency forward contracts intended to economically hedge certain exposures to reduce the impacts from changes in foreign currency exchange rates.
+Added: These derivative instruments are not designated as hedging instruments for accounting purposes under ASC 815.
+Added: As of July 31, 2026, the aggregate gross notional amount of outstanding foreign currency forward contracts was approximately $ 499 million.
+Added: Additional information regarding these derivative instruments is included in Note 6.
+Added: “Financial Instruments,” to the condensed consolidated financial statements included in this Quarterly Report on Form 10-Q.
+Added: A sensitivity analysis of changes in the fair value of outstanding foreign currency forward contracts at July 31, 2026 indicated that, if the U.S.
+Added: dollar uniformly strengthened or weakened by 10% against the currencies underlying these contracts, the fair value of the contracts would change by approximately $50 million.
+Added: Gains and losses on the derivative instruments would generally be offset by corresponding gains and losses on the underlying foreign currency denominated monetary assets and liabilities being hedged.
+Added: Accordingly, the sensitivity analysis presented above does not reflect the offsetting impacts of the underlying exposures.
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.