Financial Analysis

Business Combination On May 18, 2025, the Company entered into the Equity Purchase Agreement to acquire ZT Systems from AMD Design, LLC, a wholly owned subsidiary of Advanced Micro Devices, Inc., pursuant to which the Company will purchase all of the outstanding equity interests of ZT Systems, a provider of AI and general purpose computer infrastructure for hyperscale computing companies. Under the Equity Purchase Agreement, the Company will acquire ZT Systems data center infrastructure manufacturing business, excluding certain research and development functions. The consideration is subject to certain adjustments based on ZT Systems closing cash, closing net working capital relative to a target amount, closing indebtedness and closing expenses. In connection with the execution of the Equity Purchase Agreement, the Company obtained the Bridge Loan Facility in an aggregate principal amount of up to $2.5 billion to fund a portion of the purchase consideration in the ZT Acquisition and to pay related fees and expenses. The commitment was intended to be drawn only to the extent that permanent financing was not obtained prior to closing the ZT Acquisition. On July 29, 2025, the Company entered into the New Credit Agreement that provides for $3.5 billion in Credit Facilities, consisting of a $1.5 billion revolving credit facility and a $2.0 billion term loan A facility. On July 30, 2025, the Bridge Loan Facility was reduced from $2.5 billion to $800 million, upon the Company enteri …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

Contingencies From time to time, the Company is a party to litigation, claims and other contingencies, including environmental, regulatory and employee matters and examinations and investigations by governmental agencies, which arise in the ordinary course of business. The Company records a contingent liability when it is probable that a loss has been incurred and the amount of loss is reasonably estimable in accordance with ASC Topic 450, Contingencies, or other applicable accounting standards. As of September 27, 2025 and September 28, 2024, the Company had reserves of $39 million for environmental matters, warranty, litigation and other contingencies (excluding reserves for uncertain tax positions), which the Company believes are adequate. However, there can be no assurance that the Companys reserves will be sufficient to settle these contingencies. Such reserves are included in accrued liabilities and other long-term liabilities on the consolidated balance sheets. Legal Proceedings Environmental Matters The Company is subject to various federal, state, local and foreign laws and regulations and administrative orders concerning environmental protection, including those addressing the discharge of pollutants into the environment, the management and disposal of hazardous substances, the cleanup of contaminated sites, the materials used in products, and the recycling, treatment and disposal of hazardous waste. In June 2008, the Company was named by the Orange County Water Dis …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Debt Long-term debt consisted of the following: As of September 27, 2025 September 28, 2024 (In thousands) Term Loan Due 2027, net of issuance costs $ 300,474 $ 317,323 Less: Current portion of Term Loan Due 2027 17,500 17,500 Long-term debt $ 282,974 $ 299,823 Term Loan Due 2027 maturities by fiscal year are as follows: As of September 27, 2025 (In thousands) 2026 21,875 2027 280,000 $ 301,875 Credit Facilities Existing Credit Agreement On September 27, 2022, the Company entered into a Fifth Amended and Restated Credit Agreement (the Existing Credit Agreement) that provides for a $800 million revolving credit facility and a $350 million secured term loan (the Term Loan Due 2027). Subject to the satisfaction of certain conditions, including obtaining additional commitments from existing and/or new lenders, the Company may increase the revolving commitment up to an additional $200 million. Costs incurred in connection with Existing Credit Agreement of $3 million are classified as long-term debt and are being amortized to interest expense over the life of the Term Loan Due 2027 using the effective interest method. Loans under the Existing Credit Agreement bear interest, at the Companys option, at either the SOFR or a base rate, in each case plus a spread determined based on the Companys credit rating. Interest on the loans is payable quarterly in arrears with respect to base rate loans and at the end of an interest period (and at three month intervals if the interest period exc …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Year Ended September 27, 2025 September 28, 2024 September 30, 2023 (In thousands) Segments: Reportable segment - IMS $ 6,512,891 $ 6,033,867 $ 7,289,037 Other segments - CPS $ 1,615,491 $ 1,534,461 $ 1,646,011 Total $ 8,128,382 $ 7,568,328 $ 8,935,048 End Markets: Industrial, Medical, Defense and Aerospace, and Automotive $ 5,022,934 $ 4,915,880 $ 5,388,877 Communications Networks and Cloud Infrastructure $ 3,105,448 $ 2,652,448 $ 3,546,171 Total $ 8,128,382 $ 7,568,328 $ 8,935,048 Geography: Americas (1) $ 4,650,934 $ 3,962,652 $ 4,426,690 APAC (2) $ 2,611,053 $ 2,558,073 $ 3,187,017 EMEA $ 866,395 $ 1,047,603 $ 1,321,341 Total $ 8,128,382 $ 7,568,328 $ 8,935,048 Percentage of net sales represented by ten largest customers 52% 47% 48% Percentage of net sales from each significant customer (3) 10.1% 10.1% 13.2% (1) Mexico represents 67%, 63% and 65% of Americas revenue for the years ended September 27, 2025, September 28, 2024 and September 30, 2023, respectively. The U.S. represents 30%, 35% and 32% of Americas revenue for the years ended September 27, 2025, September 28, 2024 and September 30, 2023, respectively. (2) Malaysia represents 24%, 30% and 26% of APAC revenue for the years ended September 27, 2025, September 28, 2024 and September 30, 2023, respectively. (3) Primarily from IMS business.

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Stock-based Compensation Stock-based compensation expense was recognized as follows: Year Ended September 27, 2025 September 28, 2024 September 30, 2023 (In thousands) Cost of sales $ 20,135 $ 17,493 $ 16,763 Selling, general and administrative 41,975 38,867 32,781 Research and development 1,286 1,047 858 Total $ 63,396 $ 57,407 $ 50,402 The Company grants restricted stock units (RSUs) and restricted stock units with performance conditions (PSUs) primarily to executive officers, directors and certain employees. These units vest over periods ranging from one year to four years and/or upon achievement of specified performance criteria, with associated compensation expense recognized ratably over the vesting period. Generally, the Companys PSUs vest contingent on achievement of cumulative non-GAAP earnings per share measured over three fiscal years. If a minimum threshold is not achieved during the measurement period, the PSUs will be cancelled. If a minimum threshold is achieved or exceeded, the number of shares of common stock that will be issued will range from 70% to 130% of the number of PSUs granted, depending on the extent of performance. Additionally, for certain grants, the number of shares that vest may be adjusted up or down by up to 15% based on the Companys total shareholder return relative to that of its peer group over this same period. Activity with respect to the Companys RSUs and PSUs was as follows: Number of Shares Weighted Average Grant-Date Fair Value ($) W …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Income Taxes Domestic and foreign components of income before income taxes were as follows: Year Ended September 27, 2025 September 28, 2024 September 30, 2023 (In thousands) Domestic $ 131,662 $ 131,930 $ 157,548 Foreign 207,766 185,605 255,259 Total $ 339,428 $ 317,535 $ 412,807 The provision for income taxes consists of the following: Year Ended September 27, 2025 September 28, 2024 September 30, 2023 (In thousands) Federal: Current $ 7,378 $ 1,814 $ 362 Deferred 15,717 23,581 36,431 State: Current 4,791 2,888 3,188 Deferred (1,323) 3,048 3,329 Foreign: Current 64,724 44,816 53,346 Deferred (18,119) 3,637 (11,362) Total provision for income taxes $ 73,168 $ 79,784 $ 85,294 The Companys provision for income taxes for 2025, 2024 and 2023 was $73 million (22% of income before taxes), $80 million (25% of income before taxes) and $85 million (21% of income before taxes), respectively. The effective tax rate for 2025 and 2024 was higher than the expected U.S. statutory rate of 21% primarily due to foreign earnings taxed at rates higher than the U.S. statutory rate, state taxes, and unfavorable permanent differences. The effective tax rate for 2023 was lower than the expected U.S. statutory rate of 21% primarily due to a $12 million tax benefit resulting from the release of certain foreign tax reserves due to lapse of time and expiration of statutes of limitations. The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabiliti …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Leases ROU assets and lease liabilities recorded in the consolidated balance sheets are as follows: As of September 27, 2025 September 28, 2024 (In thousands) Other assets $ 67,808 $ 77,612 Accrued liabilities $ 21,725 $ 22,270 Other long-term liabilities 36,022 44,513 Total lease liabilities $ 57,747 $ 66,783 Weighted average remaining lease term (in years) 11.94 13.93 Weighted average discount rate 4.2 % 4.2 % Lease expense and supplemental cash flow information related to operating leases are as follows: Year Ended September 27, 2025 September 28, 2024 September 30, 2023 (In thousands) Operating lease expense (1) $ 31,925 $ 30,803 $ 35,347 Cash paid for operating lease liabilities $ 25,643 $ 26,180 $ 24,388 Right-of-use assets obtained in exchange for lease liabilities $ 1,939 $ 1,215 $ 21,180 (1) Includes immaterial amounts of short term leases, variable lease costs and sublease income. Future fixed lease payments under non-cancelable operating leases as of September 27, 2025, by fiscal year, are as follows: Operating Leases (In thousands) 2026 $ 23,246 2027 19,585 2028 8,742 2029 2,079 2030 763 Thereafter 7,741 Total lease payments 62,156 Less: imputed interest 4,409 Total $ 57,747

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Recently Issued Accounting Pronouncement Adopted In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires the Company to disclose information about its reportable segments significant expenses and other segment items on an interim and annual basis. The Company adopted ASU 2023-07 in the fourth quarter of 2025 and incremental disclosure was included in Note 13 Business Segment and Geographic Information of the notes to the Consolidated Financial Statements contained in this report. Recently Issued Accounting Pronouncements Not Yet Adopted In July 2025, the FASB issued ASU 2025-05, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets, which provides a practical expedient for estimating expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under ASC 606. The ASU is effective for the Company for annual reporting and interim periods within the fiscal year 2027, with early adoption permitted, and will be applied prospectively. The Company is currently evaluating the impact ASU 2025-05 will have on its financial statement disclosures. In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosure, which will require additional d …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Revenue Net sales by geographic segment is determined based on the country in which a product is manufactured. The following table presents revenue disaggregated by segment, market sector and geography. Year Ended September 27, 2025 September 28, 2024 September 30, 2023 (In thousands) Segments: Reportable segment - IMS $ 6,512,891 $ 6,033,867 $ 7,289,037 Other segments - CPS $ 1,615,491 $ 1,534,461 $ 1,646,011 Total $ 8,128,382 $ 7,568,328 $ 8,935,048 End Markets: Industrial, Medical, Defense and Aerospace, and Automotive $ 5,022,934 $ 4,915,880 $ 5,388,877 Communications Networks and Cloud Infrastructure $ 3,105,448 $ 2,652,448 $ 3,546,171 Total $ 8,128,382 $ 7,568,328 $ 8,935,048 Geography: Americas (1) $ 4,650,934 $ 3,962,652 $ 4,426,690 APAC (2) $ 2,611,053 $ 2,558,073 $ 3,187,017 EMEA $ 866,395 $ 1,047,603 $ 1,321,341 Total $ 8,128,382 $ 7,568,328 $ 8,935,048 Percentage of net sales represented by ten largest customers 52% 47% 48% Percentage of net sales from each significant customer (3) 10.1% 10.1% 13.2% (1) Mexico represents 67%, 63% and 65% of Americas revenue for the years ended September 27, 2025, September 28, 2024 and September 30, 2023, respectively. The U.S. represents 30%, 35% and 32% of Americas revenue for the years ended September 27, 2025, September 28, 2024 and September 30, 2023, respectively. (2) Malaysia represents 24%, 30% and 26% of APAC revenue for the years ended September 27, 2025, September 28, 2024 and September 30, 2023, respectively. (3) Prima …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Business Segment and Geographic Information The Companys chief operating decision maker (CODM) is the Chief Executive Officer who allocates resources and assesses performance of operating segments based on sales and a measure of segment gross profit that excludes items not directly related to the Companys ongoing business operations. This assessment is predominantly performed during the Companys annual budgeting and quarterly forecasting process where segment resourcing decisions, such as employee and capital, are made. Segment revenue is attributable to the segment for which the products are manufactured or services are performed. Intersegment sales consist primarily of sales of components from CPS to IMS. Segment income, which is the segment gross profit, generally does not include stock-based compensation expense, litigation settlements, charges resulting from distressed customers and are either non-recurring or non-cash in nature. Segment information is as follows: Year Ended September 27, 2025 September 28, 2024 September 30, 2023 (In thousands) Sales: Reportable segment - IMS $ 6,556,736 $ 6,072,053 $ 7,328,651 Other segments - CPS 1,697,438 1,598,397 1,747,854 Intersegment sales elimination (125,792) (102,122) (141,457) Net sales $ 8,128,382 $ 7,568,328 $ 8,935,048 Reportable segment expenses - IMS: Cost of sales 6,005,539 5,577,256 6,727,871 Total expenses $ 6,005,539 $ 5,577,256 $ 6,727,871 Gross Profit: Reportable segment gross profit - IMS $ 507,352 $ 456,610 $ 561 …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Summary of Significant Accounting Policies Management Estimates and Uncertainties. The preparation of consolidated financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. The Company has considered information available to it as of the date of issuance of these financial statements and is not aware of any specific events or circumstances that would require an update to its estimates or judgments, or a revision to the carrying value of its assets or liabilities. Significant estimates made in preparing the consolidated financial statements relate to provisions for excess and obsolete inventories, environmental matters, and legal exposures; determining liabilities for uncertain tax positions; determining the realizability of deferred tax assets; determining fair values of tangible and intangible assets for purposes of impairment tests; and estimating costs expected to be incurred to satisfy performance obligations under long-term contracts and variable consideration related to such contracts. These estimates may change as new events occur and additional information becomes available. Actual results could differ materially from these estimates …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

Stockholders Equity On March 11, 2019, the Companys stockholders approved the Companys 2019 Equity Incentive Plan (2019 Plan) and the reservation of 4 million shares of common stock for issuance thereunder, including any shares subject to stock options or similar awards granted under the 2009 Stock Plan that expired or otherwise terminated without having been exercised in full and shares issued pursuant to awards granted that are forfeited by the Company. As of September 27, 2025, an aggregate of 5 million shares were authorized for future issuance under the Companys stock plans, of which 3 million of such shares were for issuance upon vesting of restricted stock units and 2 million shares of common stock were available for future grant. Awards other than stock options reduce common stock available for grant by 1.36 shares for every share of common stock subject to such an award. Awards under the 2019 Plan and 2009 Plan that expire or are cancelled without delivery of shares generally become available for issuance under the 2019 Plan. The 2019 Plan will expire as to future grants in December 2028. Stock Repurchase Program During 2025, 2024 and 2023, the Company repurchased 1.4 million shares, 4.0 million shares and 1.6 million shares of its common stock for $114 million, $227 million and $84 million (including commissions), respectively, under stock repurchase programs authorized by the Companys Board of Directors. During the second quarter of 2025, the Companys Board of Dire …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

Commitments and Contingencies From time to time, the Company is a party to litigation, claims and other contingencies, including environmental, regulatory and employee matters and examinations and investigations by governmental agencies, which arise in the ordinary course of business. The Company records a contingent liability when it is probable that a loss has been incurred and the amount of loss is reasonably estimable in accordance with ASC Topic 450, Contingencies, or other applicable accounting standards. As of June 27, 2026 and September 27, 2025, the Company had estimated liabilities of $48 million and $39 million, respectively, for environmental matters, warranty, litigation and other contingencies (excluding reserves for uncertain tax positions), which the Company believes are adequate. These reserves are included in accrued liabilities and other liabilities on the condensed consolidated balance sheets. Additionally, the Company recognized a $183 million contingent cash consideration liability arising from the ZT Systems acquisition which is classified as other liabilities in the condensed consolidated balance sheets. See Note 13, Business Combination of the notes to the Condensed Consolidated Financial Statements contained in this report for details. There can be no assurance that the Companys reserves will be sufficient to settle these contingencies. Legal Proceedings Environmental Matters The Company is subject to various federal, state, local and foreign laws an …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Debt Long-term debt consisted of the following: As of June 27, 2026 September 27, 2025 (In thousands) Term Loan Due 2027, net of issuance costs $ $ 300,474 Term Loan A, net of issuance costs 1,382,295 Term Loan B, net of issuance costs 790,015 Total long-term debt 2,172,310 300,474 Less: Current portion Term Loan Due 2027 17,500 Term Loan A 175,000 $ Term Loan B 40,000 $ Long-term portion $ 1,957,310 $ 282,974 Term Loan maturities by fiscal year are as follows: As of June 27, 2026 (In thousands) Remainder of 2026 $ 86,000 2027 172,000 2028 312,000 2029 312,000 2030 444,000 2031 242,000 2032 and thereafter 632,000 $ 2,200,000 On October 27, 2025, the Term Loan Due 2027 was fully repaid and the bridge loan facility that was secured to temporarily finance the acquisition was terminated in its entirety. On July 29, 2025, the Company entered into a credit agreement (the New Credit Facility) that provided for senior secured credit facilities in an aggregate of $3.5 billion, consisting of a $1.5 billion revolving credit facility and a $2.0 billion senior secured term loan A facility (Term Loan A). The New Credit Facility provides that loans under the Revolving Credit Facility and Term Loan A will bear interest at the Companys option, at either the SOFR or a base rate, in each case plus a spread determined based on the Companys total net leverage ratio with applicable margins ranging from 1.375% to 2% for term SOFR loans and from 0.375% to 1% for base rate loans. Interest on loans is …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Three Months Ended Nine Months Ended June 27, 2026 June 28, 2025 June 27, 2026 June 28, 2025 (In thousands) Segments: Reportable segment - IMS $ 2,947,574 $ 1,639,258 $ 9,299,140 $ 4,842,513 Other segments - Components, Products and Services (CPS) $ 516,442 $ 402,304 $ 1,367,840 $ 1,189,477 Total $ 3,464,016 $ 2,041,562 $ 10,666,980 $ 6,031,990 End Markets: Industrial and Energy, Medical, Defense and Aerospace, and Automotive and Transportation $ 1,315,603 $ 1,255,297 $ 3,783,853 $ 3,775,853 Communications Networks and Cloud and AI Infrastructure $ 2,148,413 $ 786,265 $ 6,883,127 $ 2,256,137 Total $ 3,464,016 $ 2,041,562 $ 10,666,980 $ 6,031,990 Geography: Americas (1) $ 2,392,129 $ 1,210,923 $ 7,766,089 $ 3,445,419 APAC $ 725,206 $ 612,363 $ 2,010,915 $ 1,928,712 EMEA $ 346,681 $ 218,276 $ 889,976 $ 657,859 Total $ 3,464,016 $ 2,041,562 $ 10,666,980 $ 6,031,990 Percentage of net sales represented by ten largest customers 62 % 53 % 67 % 51 % Number of customers representing 10% or more of net sales and primarily related to IMS 1 2 (1) The U.S. represents approximately 59% and 29% of Americas net sales for the three months ended June 27, 2026 and June 28, 2025, respectively and Mexico represents approximately 40% and 68% of Americas net sales for the three months ended June 27, 2026 and June 28, 2025, respectively. The U.S. represents approximately 64% and 30% of Americas net sales for the nine months ended June 27, 2026 and June 28, 2025, respectively and Mexico represents ap …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

"Income Tax The Company estimates its annual effective income tax rate at the end of each quarterly period. The estimate takes into account the geographic mix of expected pre-tax income (loss), expected total annual pre-tax income (loss), enacted changes in tax laws, implementation of tax planning strategies and possible outcomes of audits and other uncertain tax positions. To the extent there are fluctuations in any of these variables during a period, the provision for income taxes may vary. The Companys provision for income taxes for the three months ended June 27, 2026 and June 28, 2025 was $66 million (35% of income before taxes) and $19 million (20% of income before taxes), respectively. Provision for income taxes for the nine months ended June 27, 2026 and June 28, 2025 was $110 million (29% of income before taxes) and $52 million (19% of income before taxes), respectively. The effective tax rates were higher for the three and nine months ended June 27, 2026 primarily due to non-deductible acquisition related charges and the closure and settlement of the fiscal 2008 through 2010 Internal Revenue Service (IRS) audit. In the quarter ended June 27, 2026, the Company settled and closed its IRS audit for fiscal 2008 through 2010. The resolution of this matter did not have a material impact on the Company's condensed consolidated financial statements. The Organization for Economic Co-operation and Development, an international association of 38 countries, including the United …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Leases The Companys leases consist primarily of operating leases for buildings and land and have initial lease terms of up to 44 years. Certain of these leases contain an option to extend the lease term for additional periods or to terminate the lease after an initial non-cancelable term. Renewal options are considered in the measurement of the Companys initial lease liability and corresponding right-of-use (ROU) assets only if it is reasonably certain that the Company will exercise such options. Leases with lease terms of twelve months or less are not recorded on the Companys balance sheet. ROU assets and lease liabilities recorded in the condensed consolidated balance sheets are as follows: As of June 27, 2026 September 27, 2025 (In thousands) Other assets $ 248,877 $ 67,808 Accrued liabilities $ 47,787 $ 21,725 Other long-term liabilities 212,806 36,022 Total lease liabilities $ 260,593 $ 57,747 Weighted average remaining lease term (in years) 6.75 11.94 Weighted average discount rate 4.9 % 4.2 % Lease expense and supplemental cash flow information related to operating leases are as follows: Three Months Ended Nine Months Ended June 27, 2026 June 28, 2025 June 27, 2026 June 28, 2025 (In thousands) Operating lease expense (1) $ 20,583 $ 7,898 $ 44,791 $ 23,486 Nine Months Ended June 27, 2026 June 28, 2025 (In thousands) Cash paid for operating lease liabilities $ 35,217 $ 19,180 Right-of-use assets obtained in exchange for lease liabilities $ 146,591 $ 1,493 (1) Includes im …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Recently Issued Accounting Pronouncements Not Yet Adopted In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements, which provides clarification and guidance on what disclosures should be provided in interim reporting periods. It clarifies the form and content requirements, creates a comprehensive list of all required interim disclosures drawn from across the various codification topics into Topic 270, and establishes a disclosure principle mandating the disclosure of all events or changes since the last annual reporting period that have a material impact on the entity. The ASU is effective for the Company for annual reporting and interim periods within the fiscal year 2029, with early adoption permitted. In July 2025, the FASB issued ASU 2025-05, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets, which provides a practical expedient for estimating expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under Accounting Standards Codification (ASC) 606: Revenue from Contracts with Customers. The ASU is effective for the Company for annual reporting and interim periods within the fiscal year 2027, with early adoption permitted, and will be applied prospectively. The Company is currently evaluating the impact ASU 2025-05 will have on its financial statement disclosures. In November 2024, the FAS …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Revenue Recognition The Company derives revenue principally from sales of integrated manufacturing solutions, components and Company-proprietary products. Other sources of revenue include warranty services, logistics and repair services; design, development and engineering services; defense and aerospace programs and sales of raw materials to customers whose requirements change after the Company has procured inventory to fulfill the customers forecasted demand. The Company recognizes revenue based on assessment of whether control of the products or services under the contract transfers to the customer over time or at a point in time. For some customer contracts, the Company recognizes revenue on an over time basis due to the fact that the Company does not have an alternative use for the end products it manufactures for its customers and has an enforceable right to payment, including a reasonable profit, for work-in-progress and finished goods upon a customers cancellation of a contract for convenience. In other circumstances, the Company recognizes revenue over time because its customer simultaneously receives and consumes the benefits provided by the Companys services or the Companys customer controls the end product as the Company performs manufacturing services (continuous transfer of control). For these contracts, revenue is recognized on an over time basis using the cost-to-cost method (ratio of costs incurred to date to total estimated costs at completion) which the Com …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Business Segment The Companys operations are managed as two businesses: IMS and CPS. IMS is a single operating segment consisting of printed circuit board (PCB) assembly and test, high-level assembly and test and direct order fulfillment. CPS consists of multiple operating segments which do not individually meet the quantitative thresholds for being presented as reportable segments. Therefore, financial information for these operating segments is presented in a single category entitled CPS and the Company has only one reportable segment - IMS. During the first quarter of 2026, the Company completed the acquisition of ZT Systems and the results of this acquisition are included within the IMS segment. The Companys chief operating decision maker is the Chief Executive Officer who allocates resources and assesses performance of operating segments based on sales and a measure of gross profit that excludes items not directly related to the Companys ongoing business operations. This assessment is predominantly performed during the Companys annual budgeting and quarterly forecasting process where segment resourcing decisions, such as employee and capital, are made. Intersegment sales consist primarily of sales of components from CPS to IMS. Segment income, which is the segment gross profit, generally does not include stock-based compensation expense, litigation settlements, charges resulting from distressed customer charges and are either non-recurring or non-cash in nature. Segment …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Stockholders Equity During the second quarter of 2026, the Companys stockholders approved an amendment of the Companys 2019 Equity Incentive Plan and the reservation of an additional 1.2 million shares of common stock for future issuance under the Companys amended 2019 Equity Incentive Plan. Accumulated Other Comprehensive Income Accumulated other comprehensive income, net of tax as applicable, consisted of the following: As of June 27, 2026 September 27, 2025 (In thousands) Foreign currency translation adjustments $ 74,009 $ 77,714 Unrealized holding gains on derivative financial instruments 20,393 490 Unrecognized net actuarial losses and transition costs for benefit plans (8,201) (8,584) Total $ 86,201 $ 69,620 Stock Repurchase Programs During the nine months ended June 27, 2026 and June 28, 2025, the Company repurchased 1.6 million and 1.4 million shares of its common stock for $239 million and $114 million, respectively, under stock repurchase programs authorized by the Companys Board of Directors. During the three months ended June 27, 2026, the Companys Board of Directors authorized the repurchase of up to $600 million of the Companys common stock in the open market or in negotiated private transactions. The Companys repurchase programs have no expiration dates and the timing of repurchases will depend upon capital needs to support the growth of the Companys business, market conditions and other factors. Although stock repurchases are intended to increase stockholder v …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing