What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2025-11-04 compared with 2025-08-05 · 138 added, 120 removed, 468 unchanged (36% of the section changed)

4 unchanged sentences

(in thousands, except par values)

JUNE 29, 2025 DECEMBER 29, 2024

SEPTEMBER 28, 2025 DECEMBER 29, 2024

Current assets

7 unchanged sentences

Deferred tax assets 25,316 24,624

25,414 24,624

Goodwill and intangible assets, net 162,102 148,160

17 unchanged sentences

5,000 shares authorized;

none issued or outstanding at June 29, 2025 and December 29, 2024

none issued or outstanding at September 28, 2025 and December 29, 2024

Common stock, par value $ 0.10 per share;

120,000 shares authorized;

58,393 and 58,304 shares issued and outstanding at June 29, 2025 and December 29, 2024, respectively

58,391 and 58,304 shares issued and outstanding at September 28, 2025 and December 29, 2024, respectively

Additional paid-in capital 258,049 261,028

9 unchanged sentences

(in thousands, except per share data)

THREE MONTHS ENDED SIX MONTHS ENDED

JUNE 29, 2025 JUNE 30, 2024 JUNE 29, 2025 JUNE 30, 2024

THREE MONTHS ENDED NINE MONTHS ENDED

SEPTEMBER 28, 2025 SEPTEMBER 29, 2024 SEPTEMBER 28, 2025 SEPTEMBER 29, 2024

Net sales $ 364,526 $ 344,270 $ 1,037,461 $ 980,648

4 unchanged sentences

Interest expense 4,211 5,721 13,069 18,317

Other expense (income), net 3,411 832 5,114 ( 144 )

Other expense, net

659 381 5,773 237

Income before income tax expense 48,490 36,073 109,792 86,218

10 unchanged sentences

(in thousands)

THREE MONTHS ENDED SIX MONTHS ENDED

JUNE 29, 2025 JUNE 30, 2024 JUNE 29, 2025 JUNE 30, 2024

THREE MONTHS ENDED NINE MONTHS ENDED

SEPTEMBER 28, 2025 SEPTEMBER 29, 2024 SEPTEMBER 28, 2025 SEPTEMBER 29, 2024

Net income $ 46,146 $ 28,443 $ 91,709 $ 65,180

Other comprehensive income (loss), after tax:

Other comprehensive (loss) income, after tax:

Foreign currency translation adjustment ( 2,356 ) 21,131 46,923 8,017

Pension liability adjustment 1,015 ( 1,210 ) ( 1,462 ) ( 218 )

Other comprehensive income (loss)

Other comprehensive (loss) income

( 1,341 ) 19,921 45,461 7,799

5 unchanged sentences

(in thousands)

SIX MONTHS ENDED

JUNE 29, 2025 JUNE 30, 2024

NINE MONTHS ENDED

SEPTEMBER 28, 2025 SEPTEMBER 29, 2024

OPERATING ACTIVITIES:

4 unchanged sentences

Deferred income taxes ( 10,321 ) ( 1,160 )

254 ( 1,039 )

1,111 ( 3,766 )

Other ( 1,509 ) ( 2,179 )

Amortization of acquired intangible assets 3,073 3,895

18 unchanged sentences

Cash used in financing activities ( 13,995 ) ( 89,545 )

Net cash provided by / (used in) operating, investing and financing activities

13,306 ( 14,369 )

Net cash provided by operating, investing and financing activities

Effect of exchange rate changes on cash 9,005 955

CASH AND CASH EQUIVALENTS:

Net increase / (decrease)

22,475 ( 16,311 )

Balance, beginning of period 99,226 110,498

14 unchanged sentences

The December 29, 2024, consolidated condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States (“GAAP”).

The six-month periods ended June 29, 2025 and June 30, 2024 both include 26 weeks.

The three-month periods ended June 29, 2025 and June 30, 2024 both include 13 weeks.

The nine-month periods ended September 28, 2025 and September 29, 2024 both include 39 weeks.

The three-month periods ended September 28, 2025 and September 29, 2024 both include 13 weeks.

Risks and Uncertainties

Global economic challenges including but not limited to the potential impacts of government-imposed tariffs and retaliatory tariffs, inflation, supply chain disruptions, the Russia-Ukraine war and the conflicts in the Middle East, and slow market conditions in certain parts of the globe could cause economic uncertainty and volatility.

Global economic challenges including but not limited to the impacts of government-imposed tariffs and retaliatory tariffs, inflation, supply chain disruptions, the Russia-Ukraine war and the conflicts in the Middle East, and slow market conditions in certain parts of the globe could cause economic uncertainty and volatility.

The Company considered these impacts and subsequent general uncertainties and volatility in the global economy on the assumptions and estimates used herein.

These uncertainties could result in a future material adverse effect to the amounts reported within the Company’s consolidated condensed financial statements if actual results differ from these estimates.

Reclassifications

Certain reclassifications to prior year information have been made in the consolidated condensed statements of cash flows to conform to the current period presentation.

The previously reported line item “deferred income taxes and other” was separated into two line items in the current period presentation of the consolidated condensed statements of cash flows to provide additional information.

These reclassifications had no effect on cash provided by operating activities as previously reported.

Recently Issued Accounting Pronouncements – Not Yet Adopted

In November 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2024-03, “Income Statement Reporting - Comprehensive Income - Expense Disaggregation (Topic 220-40)”.

In September 2025, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2025-06 - “ Intangibles - Goodwill and Other Internal Use Software (Topic 350-40)”.

This ASU amends the accounting for internal-use software costs by removing reference to prescriptive and sequential software development stages used to evaluate capitalizable costs.

The ASU requires entities to consider whether significant uncertainties associated with development activities have been resolved prior to capitalization of software costs and aligns disclosure requirements with ASC 360, “ Property, Plant, and Equipment”.

The new guidance in ASU 2025-06 is effective for annual periods beginning after December 15, 2027, and interim periods within those annual reporting periods, and may be applied prospectively, retrospectively, or using a modified retrospective approach.

Early adoption is permitted.

The Company is currently evaluating the impact of this ASU to its consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, “Income Statement Reporting - Comprehensive Income - Expense Disaggregation (Topic 220-40)”.

This ASU requires public entities to provide additional footnote disclosures to disaggregate the cost and expense line items presented in the income statement into specific categories including (a) purchases of inventory;

13 unchanged sentences

The amendments in this ASU should be applied on a prospective basis, however retrospective application is permitted.

We are currently assessing the updated guidance;

however, it is not expected to have a material impact to our consolidated financial statements.

The Company is currently assessing the updated guidance;

however, it is not expected to have a material impact to its consolidated financial statements.

NOTE 2 – REVENUE RECOGNITION

The Company generates revenue from sales of modular carpet, resilient flooring, rubber flooring, and other flooring-related material, and from the installation of carpet and other flooring-related material.

For the three and six months ended June 29, 2025 and June 30, 2024 revenue from sales of flooring material was 98 % of total revenue.

The remaining 2 % of revenue was generated from the installation of flooring material for both three month and six month periods ended June 29, 2025 and June 30, 2024.

A summary of these revenue streams, as a percentage of net sales, for the three and nine months ended September 28, 2025 and September 29, 2024 is as follows:

Three Months Ended Nine Months Ended

September 28, 2025 September 29, 2024 September 28, 2025 September 29, 2024

Revenue from the sale of flooring material 97 % 96 % 98 % 97 %

Revenue from installation of flooring material 3 4 2 3

Disaggregation of Revenue

For the three and six months ended June 29, 2025 and June 30, 2024, revenue from the Company’s customers is broken down by geography as follows:

Three Months Ended Six Months Ended

Geography June 29, 2025 June 30, 2024 June 29, 2025 June 30, 2024

For the three and nine months ended September 28, 2025 and September 29, 2024, revenue from the Company’s customers is broken down by geography as follows:

Three Months Ended Nine Months Ended

Geography September 28, 2025 September 29, 2024 September 28, 2025 September 29, 2024

Americas 60.0 % 61.0 % 61.5 % 60.7 %

5 unchanged sentences

Inventories are summarized as follows:

June 29, 2025 December 29, 2024

September 28, 2025 December 29, 2024

(in thousands)

11 unchanged sentences

The following table shows the computation of basic and diluted EPS:

Three Months Ended Six Months Ended

June 29, 2025 June 30, 2024 June 29, 2025 June 30, 2024

Three Months Ended Nine Months Ended

September 28, 2025 September 29, 2024 September 28, 2025 September 29, 2024

(in thousands, except per share data)

8 unchanged sentences

Diluted EPS $ 0.78 $ 0.48 $ 1.55 $ 1.11

(1) Income attributable to participating securities for the three months ended June 29, 2025, was no t material.

Includes income attributable to participating securities of $ 0.1 million for the six months ended June 29, 2025 and $ 0.1 million and $ 0.3 million respectively, for the three and six months ended June 30, 2024.

For the three and six months ended June 29, 2025 and June 30, 2024, there were no securities excluded from the computation of diluted EPS that would have been antidilutive.

(1) Income attributable to participating securities for the three and nine month periods ended September 28, 2025 and September 29, 2024, was no t material.

For the three and nine months ended September 28, 2025 and September 29, 2024, there were no securities excluded from the computation of diluted EPS that would have been antidilutive.

NOTE 5 – LONG-TERM DEBT

Long-term debt consisted of the following:

June 29, 2025 December 29, 2024

September 28, 2025 December 29, 2024

Outstanding Principal Interest Rate (1)

14 unchanged sentences

(1) Represents the weighted average rate of interest for borrowings under the Syndicated Credit Facility and the stated rate of interest for the 5.50 % Senior Notes due 2028, without the effect of debt issuance costs.

(2) The Syndicated Credit Facility also includes a multicurrency revolving loan facility up to $ 300.0 million as discussed below.

Syndicated Credit Facility

3 unchanged sentences

Interest on secured overnight financing rate (“SOFR”) based and alternative currency loans is charged at varying rates computed by applying a margin over the applicable SOFR rate or alternative currency rate, depending on the Company’s consolidated net leverage ratio as of the most recently completed fiscal quarter.

In addition, the Company pays a commitment fee per annum (depending on the Company’s consolidated net leverage ratio as of the most recently completed fiscal quarter) on the unused portion of the Facility.

In addition, the Company calculates a commitment fee per annum on the unused portion of the Facility (depending on the Company’s consolidated net leverage ratio as of the most recently completed fiscal quarter), which is paid quarterly.

Fees for commercial letters of credit are computed as a percentage of the amount available to be drawn under such letters of credit.

Fees for standby letters of credit are charged at varying rates computed by applying a margin of the amount available to be drawn under such standby letters of credit, depending on the Company’s consolidated net leverage ratio as of the most recently completed fiscal quarter.

As of both June 29, 2025 and December 29, 2024, the Company had $ 0.5 million and $ 0.7 million, respectively, in letters of credit outstanding under the Facility.

Under the Facility, the Company is required to make quarterly amortization payments of the term loan borrowings, which are due on the last day of the calendar quarter.

As of September 28, 2025 and December 29, 2024, the Company had $ 0.6 million and $ 0.7 million, respectively, in letters of credit outstanding under the Facility.

Under the Facility, the Company is required to make quarterly payments on the term loan borrowings, which are due on the last day of the calendar quarter.

The Company is in compliance with all covenants under the Facility and anticipates that it will remain in compliance with the covenants for the foreseeable future.

5 unchanged sentences

NOTE 6 – SHAREHOLDERS’ EQUITY

The following tables depict the activity in the accounts which make up shareholders’ equity for the three and six months ended June 29, 2025 and June 30, 2024:

The following tables depict the activity in the accounts which make up shareholders’ equity for the three and nine months ended September 28, 2025 and September 29, 2024:

SHARES COMMON STOCK ADDITIONAL PAID-IN CAPITAL RETAINED

20 unchanged sentences

Balance, at June 29, 2025 58,393 $ 5,839 $ 255,758 $ 449,777 $ ( 94,038 ) $ ( 42,311 ) $ 575,025

Net income — — — 46,146 — — 46,146

Issuances of stock related to restricted share units and performance shares 54 5 ( 5 ) — — — —

Cash dividends declared, $ 0.02 per common share

— — — ( 1,170 ) — — ( 1,170 )

Compensation expense related to share-based plans, net of forfeitures and shares received for tax withholdings ( 24 ) ( 2 ) 2,991 — — — 2,989

Share repurchases

( 32 ) ( 3 ) ( 695 ) — — — ( 698 )

Foreign currency translation adjustment — — — — ( 2,356 ) — ( 2,356 )

Pension liability adjustment — — — — — 1,015 1,015

Balance, at September 28, 2025 58,391 $ 5,839 $ 258,049 $ 494,753 $ ( 96,394 ) $ ( 41,296 ) $ 620,951

SHARES COMMON STOCK ADDITIONAL PAID-IN CAPITAL RETAINED

3 unchanged sentences

— — — 14,179 — — 14,179

Issuances of stock related to performance shares 472 47 ( 47 ) — — — —

Issuances of stock related to restricted share units and performance shares 472 47 ( 47 ) — — — —

Cash dividends declared, $ 0.01 per common share

14 unchanged sentences

Balance, at June 30, 2024 58,303 $ 5,830 $ 254,666 $ 356,397 $ ( 132,704 ) $ ( 33,024 ) $ 451,165

Net income — — — 28,443 — — 28,443

Issuances of stock related to restricted share units 3 — — — — — —

Cash dividends declared, $ 0.01 per common share

— — — ( 582 ) — — ( 582 )

Compensation expense related to share-based plans, net of forfeitures and shares received for tax withholdings ( 2 ) — 2,616 — — — 2,616

Foreign currency translation adjustment — — — — 21,131 — 21,131

Pension liability adjustment — — — — — ( 1,210 ) ( 1,210 )

Balance, at September 29, 2024 58,304 $ 5,830 $ 257,282 $ 384,258 $ ( 111,573 ) $ ( 34,234 ) $ 501,563

Repurchase of Common Stock

1 unchanged sentence

The program has no specific expiration date.

During the six months ended June 29, 2025, the Company repurchased 217,500 shares of common stock at a weighted average price of $ 20.44 per share pursuant to this program.

During the nine months ended September 28, 2025, the Company repurchased 250,000 shares of common stock at a weighted average price of $ 20.57 per share pursuant to this program.

Stock Incentive Plan

1 unchanged sentence

Restricted Stock Awards

Compensation expense related to restricted stock grants was $ 0.4 million and $ 1.4 million for the six months ended June 29, 2025 and June 30, 2024, respectively.

Compensation expense related to restricted stock grants was $ 0.4 million and $ 1.9 million for the nine months ended September 28, 2025 and September 29, 2024, respectively.

The Company has reduced its expense for any restricted stock forfeited during the period.

All restricted stock awards outstanding as of December 29, 2024 have fully vested and there is no unrecognized compensation expense as of June 29, 2025.

All restricted stock awards outstanding as of December 29, 2024 have fully vested and there is no unrecognized compensation expense as of September 28, 2025.

Restricted Share Unit Awards

Compensation expense related to the restricted share units was $ 3.1 million and $ 1.8 million for the six months ended June 29, 2025 and June 30, 2024, respectively.

Compensation expense related to the restricted share units was $ 4.6 million and $ 2.6 million for the nine months ended September 28, 2025 and September 29, 2024, respectively.

The Company has reduced its expense for any restricted share units forfeited during the period.

The following table summarizes restricted share units outstanding as of June 29, 2025, as well as activity during the six months then ended:

The following table summarizes restricted share units outstanding as of September 28, 2025, as well as activity during the nine months then ended:

Restricted Share Units Weighted Average

3 unchanged sentences

Forfeited or canceled ( 25,200 ) 16.97

Outstanding at June 29, 2025 836,600 $ 15.16

As of June 29, 2025, the unrecognized total compensation cost related to unvested restricted share units was $ 9.3 million.

Outstanding at September 28, 2025 781,000 $ 15.61

As of September 28, 2025, the unrecognized total compensation cost related to unvested restricted share units was $ 8.0 million.

That cost is expected to be recognized by the first quarter of 2028.

Performance Share Awards

The following table summarizes the performance shares outstanding as of June 29, 2025, as well as the activity during the six months then ended:

The following table summarizes the performance shares outstanding as of September 28, 2025, as well as the activity during the nine months then ended:

Performance Shares Weighted Average

3 unchanged sentences

Forfeited or canceled ( 19,300 ) 17.87

Outstanding at June 29, 2025 1,089,600 $ 14.10

Compensation expense related to the performance shares was $ 3.4 million and $ 3.3 million for the six months ended June 29, 2025 and June 30, 2024, respectively.

Outstanding at September 28, 2025 1,080,100 $ 14.03

Compensation expense related to the performance shares was $ 5.5 million and $ 4.7 million for the nine months ended September 28, 2025 and September 29, 2024, respectively.

The Company has reduced its expense for any performance shares forfeited during the period.

Unrecognized compensation expense related to these performance shares was approximately $ 9.9 million as of June 29, 2025.

Unrecognized compensation expense related to these performance shares was approximately $ 8.9 million as of September 28, 2025.

The amount and timing of future compensation expense will depend on the performance of the Company.

The compensation expense related to these outstanding performance shares is expected to be recognized by the first quarter of 2028.

The tax benefit recognized with respect to restricted stock, restricted share units and performance shares was approximately $ 0.7 million for the six months ended June 29, 2025.

The tax benefit recognized with respect to restricted stock, restricted share units and performance shares was approximately $ 1.0 million for the nine months ended September 28, 2025.

NOTE 7 – LEASES

The table below represents a summary of the balances recorded in the consolidated condensed balance sheets related to the Company’s leases as of June 29, 2025 and December 29, 2024:

June 29, 2025 December 29, 2024

The table below represents a summary of the balances recorded in the consolidated condensed balance sheets related to the Company’s leases as of September 28, 2025 and December 29, 2024:

September 28, 2025 December 29, 2024

Balance Sheet Location Operating Leases Finance Leases Operating Leases Finance Leases

8 unchanged sentences

Total finance lease liabilities $ 8,252 $ 8,454

As of June 29, 2025, there were no significant leases that had not commenced.

Three Months Ended Six Months Ended

June 29, 2025 June 30, 2024 June 29, 2025 June 30, 2024

As of September 28, 2025, there were no significant leases that had not commenced.

Three Months Ended Nine Months Ended

September 28, 2025 September 29, 2024 September 28, 2025 September 29, 2024

(in thousands)

7 unchanged sentences

Other Supplemental Information

Three Months Ended Six Months Ended

June 29, 2025 June 30, 2024 June 29, 2025 June 30, 2024

Three Months Ended Nine Months Ended

September 28, 2025 September 29, 2024 September 28, 2025 September 29, 2024

(in thousands)

6 unchanged sentences

Lease Term and Discount Rate

The table below presents the weighted average remaining lease terms and discount rates for finance and operating leases as of June 29, 2025 and December 29, 2024:

June 29, 2025 December 29, 2024

The table below presents the weighted average remaining lease terms and discount rates for finance and operating leases as of September 28, 2025 and December 29, 2024:

September 28, 2025 December 29, 2024

Weighted-average remaining lease term – finance leases (in years) 3.39 3.61

6 unchanged sentences

(in thousands)

2025 (excluding the six months ended June 29, 2025)

2025 (excluding the nine months ended September 28, 2025)

$ 4,715 $ 836

9 unchanged sentences

The Company has defined benefit and multi-employer pension plans, which are described more fully in Note 19 to the consolidated financial statements included in Item 8 of the Annual Report on Form 10-K for the fiscal year ended December 29, 2024 .

During the three and six months ended June 29, 2025, the Company recorded multi-employer pension expense related to multi-employer contributions of $ 0.6 million and $ 1.3 million, respectively.

During the three and six months ended June 30, 2024, the Company recorded multi-employer pension expense related to multi-employer contributions of $ 0.6 million and $ 1.3 million, respectively.

The following tables provide the components of net periodic benefit cost for the three and six months ended June 29, 2025 and June 30, 2024:

Three Months Ended Six Months Ended

During the three and nine month periods ended September 28, 2025 and September 29, 2024, the Company recorded multi-employer pension expense related to multi-employer contributions of $ 0.8 million and $ 2.1 million, respectively.

The following tables provide the components of net periodic benefit cost for the three and nine months ended September 28, 2025 and September 29, 2024:

Three Months Ended Nine Months Ended

Defined Benefit Retirement Plans (Europe)

June 29, 2025 June 30, 2024 June 29, 2025 June 30, 2024

September 28, 2025 September 29, 2024 September 28, 2025 September 29, 2024

(in thousands)

4 unchanged sentences

Net periodic benefit cost $ 320 $ 57 $ 927 $ 173

Three Months Ended Six Months Ended

Salary Continuation Plan June 29, 2025 June 30, 2024 June 29, 2025 June 30, 2024

Three Months Ended Nine Months Ended

Salary Continuation Plan September 28, 2025 September 29, 2024 September 28, 2025 September 29, 2024

(in thousands)

2 unchanged sentences

Net periodic benefit cost $ 321 $ 326 $ 965 $ 978

Three Months Ended Six Months Ended

Three Months Ended Nine Months Ended

nora Defined Benefit Plan

June 29, 2025 June 30, 2024 June 29, 2025 June 30, 2024

September 28, 2025 September 29, 2024 September 28, 2025 September 29, 2024

(in thousands)

3 unchanged sentences

Net periodic benefit cost $ 305 $ 394 $ 872 $ 1,170

The service cost component of net periodic benefit costs is presented within operating income in the consolidated condensed statements of operations, while all other components of net periodic benefit costs are presented within other expense (income), net, in the consolidated condensed statements of operations.

The service cost component of net periodic benefit costs is presented within operating income in the consolidated condensed statements of operations, while all other components of net periodic benefit costs are presented within other expense, net, in the consolidated condensed statements of operations.

NOTE 9 – GOODWILL AND OTHER INTANGIBLE ASSETS

The ending balance and the change in the carrying amount of goodwill for the six months ended June 29, 2025 is as follows:

The ending balance and the change in the carrying amount of goodwill for the nine months ended September 28, 2025 is as follows:

(in thousands)

1 unchanged sentence

Foreign currency translation (2)

Balance, at June 29, 2025 $ 111,636

Balance, at September 28, 2025 $ 111,499

(1) The goodwill balance is allocated entirely to the AMS reportable segment.

(2) A portion of the goodwill balance is comprised of goodwill denominated in foreign currency attributable to the nora acquisition.

The net carrying value of intangible assets other than goodwill was $ 51.1 million and $ 48.3 million at June 29, 2025 and December 29, 2024, respectively.

The net carrying value of intangible assets other than goodwill was $ 50.6 million and $ 48.3 million at September 28, 2025 and December 29, 2024, respectively.

NOTE 10 – SEGMENT INFORMATION

9 unchanged sentences

restructuring, asset impairment, severance, and other, net, and the impact of a cyber event.

Intersegment revenues for the three and six months ended June 29, 2025, were $ 35.8 million and $ 63.8 million, respectively, and intersegment revenues for the three and six months ended June 30, 2024, were $ 24.5 million and $ 41.3 million, respectively.

Intersegment revenues for the three and nine months ended September 28, 2025, were $ 28.6 million and $ 92.4 million, respectively, and intersegment revenues for the three and nine months ended September 29, 2024, were $ 19.1 million and $ 60.4 million, respectively.

Intersegment revenues are eliminated from net sales presented below since these amounts are not included in the information provided to the CODM.

1 unchanged sentence

The following table outlines information by reportable segment including net sales, significant segment expenses, and AOI.

The table also includes a reconciliation to income before taxes for the three and six months ended June 29, 2025 and June 30, 2024.

The table also includes a reconciliation to income before taxes for the three and nine months ended September 28, 2025 and September 29, 2024.

Three Months Ended

June 29, 2025 June 30, 2024

September 28, 2025 September 29, 2024

AMS EAAA TOTAL AMS EAAA TOTAL

10 unchanged sentences

Purchase accounting amortization

Cyber event impact — 35

Interest expense 4,211 5,721

Other expense (income), net 3,411 832

Other expense, net

Income before taxes $ 48,490 $ 36,073

3 unchanged sentences

(2) Adjusted cost of sales excludes purchase accounting amortization.

(3) Adjusted selling, general, and administrative expenses exclude restructuring, asset impairment, severance, and other, net, and the impact of a cyber event.

Six Months Ended

June 29, 2025 June 30, 2024

(3) Adjusted selling, general, and administrative expenses exclude restructuring, asset impairment, severance, and other, net.

Nine Months Ended

September 28, 2025 September 29, 2024

AMS EAAA TOTAL AMS EAAA TOTAL

12 unchanged sentences

Interest expense 13,069 18,317

Other expense (income), net 5,114 ( 144 )

Other expense, net

Income before taxes $ 109,792 $ 86,218

4 unchanged sentences

(3) Adjusted selling, general, and administrative expenses exclude restructuring, asset impairment, severance, and other, net, and the impact of a cyber event.

Segment depreciation and amortization for the three and six months ended June 29, 2025 and June 30, 2024 is presented as follows:

Three Months Ended Six Months Ended

June 29, 2025 June 30, 2024 June 29, 2025 June 30, 2024

Segment depreciation and amortization for the three and nine months ended September 28, 2025 and September 29, 2024 is presented as follows:

Three Months Ended Nine Months Ended

September 28, 2025 September 29, 2024 September 28, 2025 September 29, 2024

(in thousands) (in thousands)

4 unchanged sentences

A reconciliation of the Company’s total operating segment assets to the corresponding consolidated amounts is presented as follows:

June 29, 2025 December 29, 2024

September 28, 2025 December 29, 2024

(in thousands)

6 unchanged sentences

NOTE 11 – SUPPLEMENTAL CASH FLOW INFORMATION

Supplemental cash flow information for the six months ended June 29, 2025 and June 30, 2024 is presented in the following table:

Six Months Ended

June 29, 2025 June 30, 2024

Supplemental cash flow information for the nine months ended September 28, 2025 and September 29, 2024 is presented in the following table:

Nine Months Ended

September 28, 2025 September 29, 2024

(in thousands)

4 unchanged sentences

The Company determines its provision for income taxes for interim periods using an estimate of its annual effective tax rate (“AETR”) and records any changes affecting the estimated AETR in the interim period in which the change occurs, including discrete tax items.

During the six months ended June 29, 2025, the Company recorded a total income tax provision of $ 15.7 million on pre-tax income of $ 61.3 million resulting in an effective tax rate of 25.6 %, as compared to a total income tax provision of $ 13.4 million on pre-tax income of $ 50.1 million resulting in an effective tax rate of 26.7 % during the six months ended June 30, 2024.

The decrease in the effective tax rate for the six months ended June 29, 2025 as compared to the six months ended June 30, 2024, was primarily due to favorable changes in the geographic mix of earnings and an increase in tax benefits related to share-based compensation.

During the nine months ended September 28, 2025, the Company recorded a total income tax provision of $ 18.1 million on pre-tax income of $ 109.8 million resulting in an effective tax rate of 16.5 %, as compared to a total income tax provision of $ 21.0 million on pre-tax income of $ 86.2 million resulting in an effective tax rate of 24.4 % during the nine months ended September 29, 2024.

The decrease in the effective tax rate for the nine months ended September 28, 2025 as compared to the nine months ended September 29, 2024, was primarily due to the remeasurement and adjustment of deferred taxes as discussed below and a favorable mix of geographic earnings.

In July 2025, Germany enacted tax legislation to gradually reduce the corporate income tax rate.

The current income tax rate of 15 % is set to decrease by 1% annually beginning in 2028 reaching 10 % by 2032.

As a result of this change to tax rates, deferred assets and liabilities were remeasured using the new rates applicable to the periods in which the underlying temporary differences are expected to reverse.

The remeasurement of the Company’s German deferred tax positions and other deferred tax adjustments resulted in a favorable deferred income tax benefit of $ 10.4 million in the quarter ended September 28, 2025.

On July 4, 2025, the U.S.

1 unchanged sentence

The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions.

We are currently assessing its impact on our consolidated financial statements.

We do not expect the OBBBA to have a material impact on our estimated annual effective tax rate in 2025.

The OBBBA did not have a material impact on our estimated annual effective tax rate in 2025.

As we continue to analyze the impact of the OBBBA, we expect it to reduce our cash taxes owed in the current year.

On December 20, 2021, the Organization for Economic Co-operation and Development (“OECD”) published Pillar Two Model Rules defining the global minimum tax, which calls for the taxation of large corporations at a minimum rate of 15 %.

2 unchanged sentences

tax jurisdictions have enacted legislation to adopt the Pillar Two Model Rules beginning in 2024 (including the European Union Member States) or announced plans to enact legislation in future years.

For fiscal year 2025, we expect to meet the Transitional Country-by-Country (CbCR) Safe Harbor rules for most if not all jurisdictions and do not expect these provisions to have a material impact on the Company’s financial statements.

For fiscal year 2025, we do not expect these provisions to have a material impact on the Company’s financial statements.

We will continue to closely monitor ongoing developments and evaluate any potential impact on future periods.

In the first six months of 2025, the Company increased its liability for unrecognized tax benefits by $ 0.2 million.

As of June 29, 2025, the Company had accrued approximately $ 5.0 million for unrecognized tax benefits.

The Company’s deferred tax asset as of June 29, 2025, reflects a reduction of $ 2.5 million of these unrecognized tax benefits.

In the first nine months of 2025, the Company increased its liability for unrecognized tax benefits by $ 0.3 million.

As of September 28, 2025, the Company had accrued approximately $ 5.1 million for unrecognized tax benefits.

The Company’s deferred tax asset as of September 28, 2025, reflects a reduction of $ 2.5 million of these unrecognized tax benefits.

Unrecognized tax benefits are reviewed on an ongoing basis and are adjusted for changing facts and circumstances, including the progress of tax audits and the closing of statutes of limitations.

1 unchanged sentence

NOTE 13 – ITEMS RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE LOSS

Amounts reclassified out of accumulated other comprehensive loss (“AOCL”), before tax, to the consolidated condensed statements of operations during the three and six months ended June 29, 2025 and June 30, 2024 are reflected in the tables below:

Three Months Ended

Statement of Operations Location June 29, 2025 June 30, 2024

(in thousands)

Amortization of benefit plan net actuarial losses and prior service cost Other expense (income), net $ ( 403 ) $ ( 371 )

Total loss reclassified from AOCL $ ( 403 ) $ ( 371 )

Six Months Ended

Statement of Operations Location June 29, 2025 June 30, 2024

(in thousands)

Amortization of benefit plan net actuarial losses and prior service cost Other expense (income), net $ ( 787 ) $ ( 745 )

Amounts reclassified out of accumulated other comprehensive loss (“AOCL”), before tax, to the consolidated condensed statements of operations during the three and nine months ended September 28, 2025 and September 29, 2024 are reflected in the tables below:

Three Months Ended Nine Months Ended

Statement of Operations Location September 28, 2025 September 29, 2024 September 28, 2025 September 29, 2024

(in thousands) (in thousands)

Amortization of benefit plan net actuarial losses and prior service cost Other expense, net

$ ( 409 ) $ ( 379 ) $ ( 1,196 ) $ ( 1,124 )

Total loss reclassified from AOCL $ ( 409 ) $ ( 379 ) $ ( 1,196 ) $ ( 1,124 )

9 unchanged sentences

Subsequently, a motion was filed to transfer the case to the Multi-District Litigation (MDL) concerning Aqueous Film-Forming Foams (AFFF) Products Liability Litigation, and the plaintiff filed a motion to remand the case to the Circuit Court of Lee County, Alabama.

The federal Alabama district court for the Opelika case has issued an order staying all deadlines in the case, pending further directives.

On October 9, 2025, the United States Judicial Panel on Multidistrict Litigation issued a Transfer Order directing that the case be transferred to the District of South Carolina for inclusion in MDL No.

The nature of this litigation involves complex scientific, legal and factual issues.

2 unchanged sentences

See disclosure under the heading “Lawsuit by Former CEO in Connection with Termination” set forth in Note 18 to the consolidated financial statements included in Item 8 of the Annual Report on Form 10-K for the fiscal year ended December 2 9, 2024.

There have been no material changes since December 29, 2024.

On October 2, 2025, the U.S.

Court of Appeals for 11 th Circuit issued its opinion affirming the District Court's summary judgment in favor of the Company.

NOTE 15 – FAIR VALUE OF FINANCIAL INSTRUMENTS

11 unchanged sentences

The following table presents the carrying values and estimated fair values, including the level within the fair value hierarchy, of certain financial instruments:

June 29, 2025 December 29, 2024

September 28, 2025 December 29, 2024

Carrying Value Fair Value (Level 1) Fair Value (Level 2) Carrying Value Fair Value (Level 1) Fair Value (Level 2)

8 unchanged sentences

( 1) Carrying values are presented gross, excluding the impact of unamortized debt issuance costs and including amounts presented as current liabilities on the consolidated condensed balance sheets.

(2) Unamortized debt issuance costs associated with the revolving loan borrowings under the Facility were $ 0.9 million and $ 1.1 million as of June 29, 2025 and December 29, 2024, respectively, and are recorded as other assets in the consolidated condensed balance sheets.

(2) Unamortized debt issuance costs associated with the revolving loan borrowings under the Facility were $ 0.8 million and $ 1.1 million as of September 28, 2025 and December 29, 2024, respectively, and are recorded as other assets in the consolidated condensed balance sheets.

The carrying value of borrowings under the Facility approximates fair value as the Facility bears variable interest rates that are similar to existing market rates.

The fair value of borrowings under the Facility is estimated using observable market rates.

(3) Unamortized debt issuance costs associated with the Senior Notes, recorded as a reduction of long-term debt in the consolidated condensed balance sheets, were $ 2.4 million and $ 2.8 million as of June 29, 2025 and December 29, 2024, respectively.

(3) Unamortized debt issuance costs associated with the Senior Notes, recorded as a reduction of long-term debt in the consolidated condensed balance sheets, were $ 2.3 million and $ 2.8 million as of September 28, 2025 and December 29, 2024, respectively.

Fair value of the Senior Notes is derived using quoted prices for similar instruments.

4 unchanged sentences

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-Q

Item 1. Financial Statements