Financial Analysis

Commitments and Contingencies Legal Proceedings The Company is party to certain lawsuits in the ordinary course of business. The Company does not believe that these proceedings, individually or in the aggregate, will have a material adverse effect on the Companys financial position, results of operations or cash flows. …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Notes Payable and Long-Term Debt Notes payable and long-term debt outstanding as of May 31, 2026, and August 31, 2025, are summarized below (in millions): Maturity Date May 31, 2026 August 31, 2025 3.950% Senior Notes Jan 12, 2028 $ 499 $ 499 3.600% Senior Notes Jan 15, 2030 498 498 3.000% Senior Notes Jan 15, 2031 595 595 1.700% Senior Notes (1) Apr 15, 2026 499 4.250% Senior Notes May 15, 2027 499 497 5.450% Senior Notes Feb 1, 2029 298 297 4.200% Senior Notes (1) Feb 1, 2029 497 4.750% Senior Notes (1) Feb 1, 2033 492 Borrowings under credit facilities and other (2) Jun 18, 2030 Total notes payable and long-term debt 3,378 2,885 Less current installments of notes payable and long-term debt 499 499 Notes payable and long-term debt, less current installments $ 2,879 $ 2,386 (1) On January 23, 2026, the Company issued $500 million aggregate principal amount of 4.200% Senior Notes due 2029 (the 4.200% Senior Notes) and $500 million aggregate principal amount of 4.750% Senior Notes due 2033 (the 4.750% Senior Notes) in an underwritten public offering. The Company used the net proceeds for general corporate purposes, including the repayment of the $500 million aggregate principal amount of 1.700% Senior Notes due in April 2026. (2) As of May 31, 2026, the Company had $4.4 billion in available unused borrowing capacity under its revolving credit facilities and receivables financing facility, of which $3.2 billion was available under the senior unsecured credit agreement dated Jun …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Stockholders Equity The Company recognized stock-based compensation expense within selling, general and administrative expense as follows (in millions): Three months ended Nine months ended May 31, 2026 May 31, 2025 May 31, 2026 May 31, 2025 Restricted stock units $ 20 $ 14 $ 97 $ 69 Employee stock purchase plan 5 5 18 15 Total $ 25 $ 19 $ 115 $ 84 As of May 31, 2026 , the shares available to be issued under t he 2021 Equity Incentive Plan were 6,575,785. Restricted Stock Units Certain key employees have been granted time-based, performance-based and market-based restricted stock unit awards (restricted stock units). The time-based restricted stock units generally vest on a graded vesting schedule over three years. The performance-based restricted stock units generally vest on a cliff vesting schedule over three years and up to a maximum of 200%, depending on the specified performance condition and the level of achievement obtained. The performance-based restricted stock units have a vesting condition that is based upon the Companys cumulative adjusted core earnings per share during the performance period. The market-based restricted stock units generally vest on a cliff vesting schedule over three years and up to a maximum of 200%, depending on the specified performance condition and the level of achievement obtained. The market-based restricted stock units have a vesting condition that is tied to the Companys total shareholder return based on the Companys stock performance …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Fair Value Measurements Fair Value Measurements on a Recurring Basis The carrying amounts of cash and cash equivalents, trade accounts receivable, prepaid expenses, and other current assets, accounts payable and accrued expenses approximate fair value because of the short-term nature of these financial instruments. Cash equivalents consist of investments that are readily convertible to cash with original maturities of 90 days or less and are classified within Level 1 of the fair value hierarchy. As of May 31, 2026 and August 31, 2025, there were $341 million and $392 million of cash equivalents, respectively. The fair value of forward foreign exchange contracts were not material to the Companys Condensed Consolidated Balance Sheets as of May 31, 2026 and August 31, 2025. Fair Value of Financial Instruments The carrying amounts of borrowings under credit facilities and under loans approximate fair value as interest rates on these instruments approximate current market rates. Notes payable and long-term debt is carried at amortized cost; however, the Company estimates the fair values of notes payable and long-term debt for disclosure purposes. The following table presents the carrying amounts and fair values of the Company's notes payable and long-term debt, by hierarchy level as of the periods indicated (in millions): May 31, 2026 August 31, 2025 Fair Value Hierarchy Carrying Amount Fair Value Carrying Amount Fair Value Notes payable and long-term debt: (Note 6) 3.950% Senior …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Goodwill and Other Intangible Assets The following table presents the changes in goodwill allocated to the Companys reportable segments during the nine months ended May 31, 2026 (in millions): Regulated Industries Intelligent Infrastructure Connected Living and Digital Commerce Total Balance as of August 31, 2025 $ 673 $ 76 $ 92 $ 841 Acquisitions and adjustments (1) 384 384 Change in foreign currency exchange rates 4 (1) 3 Balance as of May 31, 2026 $ 677 $ 459 $ 92 $ 1,228 (1) In connection with the acquisitions of Hanley Energy Group (Hanley) and Rebound Technologies Group Holdings Limited (Rebound Technologies) during the fiscal year 2026. See Note 15 Business Acquisitions and Divestitures for additional information. The following table is a summary of the Companys gross goodwill balances and accumulated impairments as of the periods indicated (in millions): May 31, 2026 August 31, 2025 Gross Carrying Amount Accumulated Impairment Gross Carrying Amount Accumulated Impairment Goodwill $ 2,248 $ 1,020 $ 1,861 $ 1,020 The following table presents the Companys total purchased intangible assets as of the periods indicated (in millions): Weighted Average Amortization Period (in years) May 31, 2026 (1) August 31, 2025 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Contractual agreements and customer relationships 11 $ 752 $ (325) $ 427 $ 494 $ (292) $ 202 Intellectual property 7 347 (198) 149 …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Income Taxes Effective Income Tax Rate The U.S. federal statutory income tax rate and the Company's effective income tax rate are as follows: Three months ended Nine months ended May 31, 2026 May 31, 2025 May 31, 2026 May 31, 2025 U.S. federal statutory income tax rate 21.0 % 21.0 % 21.0 % 21.0 % Effective income tax rate 24.7 % 23.7 % 27.4 % 28.5 % The effective income tax rate differed for the three months and nine months ended May 31, 2026, compared to the three months and nine months ended May 31, 2025, primarily due to: (i) a change in the jurisdictional mix of earnings, driven in part by strengthened performance in tax jurisdictions with existing valuation allowances for the three and nine months ended May 31, 2026, (ii) an $18 million income tax benefit for the reversal of an unrecognized tax benefit due to a lapse of statute for the nine months ended May 31, 2025, and (iii) the post-closing gain adjustments from the divestiture of the Mobility Business recorded during the three months ended May 31, 2025. The effective income tax rate differed from the U.S. federal statutory income tax rate of 21.0% during the three months and nine months ended May 31, 2026 and 2025, primarily due to: (i) the jurisdictional mix of earnings, (ii) losses in tax jurisdictions with existing valuation allowances, (iii) tax incentives granted to sites in Malaysia, Singapore, and Vietnam, (iv) an $18 million income tax benefit for the reversal of an unrecognized tax benefit due to a lapse of …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Leases During fiscal year 2026, the Company entered into new operating and finance leases. The future minimum lease payments under these new leases as of May 31, 2026, were as follows (in millions): Payments due by period Total Less than 1 year 1-3 years 3-5 years After 5 years Operating lease obligations (1)(2) $ 106 $ 17 $ 33 $ 27 $ 29 Finance lease obligations (1)(2) $ 51 $ 8 $ 37 $ 6 $ (1) Excludes $80 million of residual value guarantees that could potentially come due in future periods. The Company does not believe it is probable that any amounts will be owed under these guarantees. Therefore, no amounts related to the residual value guarantees are included in the lease payments used to measure the right-of-use assets and lease liabilities. (2) Excludes $181 million of payments related to leases signed but not yet commenced. Additionally, certain leases signed but not yet commenced contain residual value guarantees and purchase options not deemed probable. …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

New accounting guidance adopted during the period did not have a material impact to the Company. Recently issued accounting guidance is not applicable or did not have, or is not expected to have, a material impact to the Company.

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Restructuring, Severance, and Related Charges The following is a summary of the Companys restructuring, severance, and related charges (in millions): Three months ended Nine months ended May 31, 2026 (1) May 31, 2025 (2) May 31, 2026 (1) May 31, 2025 (2) Employee severance and benefit costs $ 5 $ 5 $ 38 $ 50 Lease costs 3 2 3 6 Asset write-off costs 2 7 34 34 Other costs (3) 2 13 54 Total restructuring, severance and related charges (3) $ 7 $ 16 $ 88 $ 144 (1) Primarily related to targeted restructuring activities to optimize our cost structure and improve operational efficiencies. (2) Primarily related to the 2025 Restructuring Plan. (3) Except for asset write-off costs, all restructuring, severance and related charges are cash costs. The following table presents the Companys restructuring, severance, and related charges disaggregated by segment (in millions): Three months ended Nine months ended May 31, 2026 May 31, 2025 May 31, 2026 May 31, 2025 Total restructuring, severance and related charges: Regulated Industries $ 9 $ 7 $ 55 $ 49 Intelligent Infrastructure 2 8 8 32 Connected Living and Digital Commerce 28 20 Non-allocated charges (4) 1 (3) 43 Total $ 7 $ 16 $ 88 $ 144 The table below summarizes the Companys liability activity during the nine months ended May 31, 2026 (in millions): Employee Severance and Benefit Costs Lease Costs Asset Write-off Costs Other Related Costs Total Balance as of August 31, 2025 $ 16 $ $ $ 17 $ 33 Restructuring related charges 38 3 34 13 88 …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

Concentration of Risk and Segment Data Concentration of Risk Sales of the Companys products are concentrated among specific customers. During the nine months ended May 31, 2026, the Companys five largest customers accounted for approximately 36% of its net revenue and 78 customers accounted for approximately 90% of its net revenue. Sales to these customers were reported in the Regulated Industries, Intelligent Infrastructure, and Connected Living and Digital Commerce operating segments. The Company procures components from a broad group of suppliers. Some of the products manufactured by the Company require one or more components that are available from only a single source. Segment Data Operating segments are defined as components of an enterprise that engage in business activities from which they may earn revenues and incur expenses; for which separate financial information is available; and whose operating results are regularly reviewed by the chief operating decision maker (CODM), our Chief Executive Officer. The CODM regularly reviews net revenue by segment, segment income, and segment income margin, including prior period comparison and forecasted segment results, to assess the performance of the individual segments and make decisions about resources to be allocated to the segments. The Company derives its revenue from providing comprehensive electronics design, production, and product management services. The Companys operating segments consist of three segments Regulat …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing