Newell Brands Inc.

Company Overview

Business Model: Newell Brands Inc. is a leading global consumer goods company that designs, manufactures, sources, markets, and distributes a diverse portfolio of well-known brands. The Company focuses on delighting consumers by lighting up everyday moments. Its primary revenue generation mechanisms involve selling products directly to mass merchants, warehouse clubs, home centers, department stores, drug/grocery stores, office superstores, specialty retailers, commercial products distributors, and e-commerce retailers, as well as direct to consumers online and through its Yankee Candle retail stores.

Market Position: Newell Brands Inc. operates in a highly competitive global consumer goods market. The Company maintains a strong portfolio of leading brands, including Rubbermaid, Sharpie, Graco, Coleman, Rubbermaid Commercial Products, Yankee Candle, Paper Mate, FoodSaver, Dymo, EXPO, Elmer’s, Oster, NUK, Spontex, and Campingaz. It competes by creating and maintaining leading brands and differentiated products that deliver superior value and performance, providing superior customer service and consistent on-time delivery, and producing and procuring products at a competitive cost. The Company's largest customer in 2025 was Amazon.com Inc., accounting for approximately 17% of net sales, followed by Walmart Inc. and subsidiaries at approximately 13%.

Recent Strategic Developments: Newell Brands Inc. is in the execution phase of a multi-year transformation, actively advancing strategic priorities identified in 2023 to improve top-line performance, expand margins, and enhance cash flows. Key initiatives include:

• Organizational Realignment Plan (2024): Designed to strengthen front-end commercial capabilities, improve accountability, unlock operational efficiencies, and reduce complexity. Actions under this plan were implemented by the end of fiscal year 2025, involving changes to brand management, finance, go-to-market organizations, and centralization of various functions.
• Global Productivity Plan (December 2025): Aims to further simplify processes, streamline overhead, and reallocate resources. This plan includes a reduction of over 900 global professional and clerical employees (with limited impact on manufacturing/supply chain) and the closure of approximately 20 Yankee Candle stores in the U.S. and Canada in January 2026 to optimize retail footprint.
• Mitigation Strategy: In response to global challenges such as shifting consumer preferences, competitive environments, evolving retail landscapes, macroeconomic/geopolitical volatility, inflationary pressures, and new tariffs imposed in 2025, the Company is deploying a comprehensive mitigation strategy through pricing optimization, productivity enhancements, and strategic manufacturing relocations.

Geographic Footprint: Newell Brands Inc. sells its products in over 150 countries and has operations in more than 45 countries, excluding third-party distributors.

• Primary Operational Regions: North America, Europe, Middle East and Africa, Latin America, and Asia Pacific.
• Revenue Distribution (2025):
  • United States: 61.2% of total revenue
  • Canada: 4.3% of total revenue
  • Europe, Middle East and Africa: 16.6% of total revenue
  • Latin America: 11.2% of total revenue
  • Asia Pacific: 6.8% of total revenue
• Facilities (as of December 31, 2025): Approximately 40 manufacturing facilities (15 in the U.S.), 60 regional distribution centers and warehouses (30 in the U.S.), 95 offices (25 in the U.S.), and 235 retail stores (220 Yankee Candle in the U.S.). Approximately 90% of global properties are leased.

Financial Performance

Revenue Analysis

Profitability Metrics:

• Gross Margin: 33.8% (2025) vs. 33.6% (2024)
• Operating Margin: 0.5% (2025) vs. 0.9% (2024)
• Net Margin: -4.0% (2025) vs. -2.9% (2024)

Investment in Growth:

• R&D Expenditure: $0.11 billion (1.6% of revenue)
• Capital Expenditures: $0.25 billion
• Strategic Investments: The Company continues to invest in strengthening its product design, research and development capabilities, and has consolidated its design and innovation capabilities and consumer marketing and insight capabilities into a global center of excellence.

Business Segment Analysis

Home and Commercial Solutions

Financial Performance:

• Revenue: $3.77 billion (-7.4% YoY)
• Operating Margin: -3.7% (Operating loss of $138 million)
• Key Growth Drivers: Launches of product innovations, mainly in the Kitchen and Home Fragrance businesses, partially offset soft demand across all businesses, net distribution losses, and product line exits, primarily in Kitchen and Commercial businesses. Product Portfolio:
• Commercial cleaning and maintenance solutions: Rubbermaid, Rubbermaid Commercial Products, Mapa, Spontex
• Kitchen appliances: Crockpot, Mr. Coffee, Oster, Sunbeam (also Breville in Europe under license)
• Food storage: FoodSaver, Rubbermaid, Sistema, Ball (under license from Ball Corporation)
• Gourmet cookware, bakeware, cutlery: Calphalon
• Home fragrance: Chesapeake Bay, WoodWick, Yankee Candle Market Dynamics:
• Products are marketed directly to mass merchants, warehouse clubs, home centers, department stores, drug/grocery stores, specialty retailers, discount stores, e-commerce retailers, commercial products distributors, select contract customers, other professional customers, and direct to consumers online and in Yankee Candle retail stores.

Learning and Development

Financial Performance:

• Revenue: $2.69 billion (-1.0% YoY)
• Operating Margin: 17.2% (Operating income of $464 million)
• Key Growth Drivers: Contributions from launches of product innovations in both the Baby and Writing businesses, partially offsetting soft demand primarily in the Writing business. Product Portfolio:
• Writing instruments, art products, activity-based products, labeling solutions: Dymo, Elmer’s, EXPO, Paper Mate, Parker, Sharpie
• Baby gear and infant care products: Graco, NUK Market Dynamics:
• Products are marketed directly to mass merchants, warehouse clubs, department stores, drug/grocery stores, office superstores, office supply stores, contract stationers, distributors, e-commerce retailers, and direct to consumers online. The Baby business unit has a single source of supply for products comprising a majority of its sales, which also owns the intellectual property for many of those products.

Outdoor and Recreation

Financial Performance:

• Revenue: $0.74 billion (-6.7% YoY)
• Operating Margin: -3.4% (Operating loss of $25 million)
• Key Growth Drivers: Contribution from launches of product innovation and pricing, partially offsetting net distribution losses, soft demand, and business exits. Product Portfolio:
• Active lifestyle products for outdoor and outdoor-related activities, technical apparel, on-the-go beverageware: Bubba, Campingaz, Coleman, Contigo, Marmot Market Dynamics:
• Products are marketed directly to warehouse clubs, department stores, grocery stores, mass merchants, sporting goods and specialty retailers, distributors, e-commerce retailers, and direct to consumers online.

Capital Allocation Strategy

Shareholder Returns:

• Share Repurchases: 22,791 shares purchased for $0.00008 million (to satisfy employee tax withholding obligations related to restricted stock unit vesting). This is not a general share repurchase program.
• Dividend Payments: $0.12 billion
• Dividend Yield: Not explicitly disclosed or calculable from provided data.
• Future Capital Return Commitments: The Company continues to prioritize paying dividends, and the Board of Directors currently intends to declare and pay dividends based on the financial condition and results of operations of the Company.

Balance Sheet Position:

• Cash and Equivalents: $0.20 billion
• Total Debt: $4.67 billion
• Net Cash Position: -$4.47 billion (Net Debt)
• Credit Rating: Downgraded by Moody’s Corporation and S&P Global Inc. in 2025 and 2024. Moody’s further downgraded the Company’s senior unsecured debt rating to “B2” in Q4 2025, reaching the maximum provision on affected bonds.
• Debt Maturity Profile (as of December 31, 2025, in millions):
  • 2026: $130
  • 2027: $500
  • 2028: $1,252
  • 2029: $500
  • 2030: $750
  • Thereafter: $1,586
  • Total: $4,718

Cash Flow Generation:

• Operating Cash Flow: $0.26 billion
• Free Cash Flow: $0.02 billion (Operating Cash Flow of $264 million - Capital Expenditures of $247 million)
• Cash Conversion Metrics: The Company historically generates the majority of its operating cash flow in the third and fourth quarters due to seasonal variations, timing of compensation payments, customer program payments, working capital requirements, and credit terms. The change in net cash provided by operating activities in 2025 was primarily driven by lower cash generated from accounts receivable (due to lower net sales and timing of collections), cash impact of additional tariffs, and higher cash incentive compensation payments, partially offset by improved inventory levels and timing of vendor payments.

Operational Excellence

Production & Service Model: Newell Brands Inc. maintains a significant U.S. manufacturing presence with 15 production facilities and two facilities in Mexico, producing over half of the Company’s U.S. revenues not subject to recently announced U.S. tariffs. The Company's operational philosophy focuses on creating and leveraging scale to unlock the full potential of its brand portfolio, supported by a new operating model, talent upgrades, and culture redesign. Initiatives include complexity reduction, technology standardization, Enterprise Resource Planning System (ERP) consolidation, stock-keeping unit (SKU) optimization, and supply chain optimization.

Supply Chain Architecture: Key Suppliers & Partners: The Company has multiple foreign and domestic sources of supply for substantially all material requirements. It relies on third-party manufacturers for finished goods, with some product lines having single or limited sources (e.g., the Baby business unit in the Learning and Development segment).

• Raw Materials: Resin (polyethylene, polypropylene, copolyester), corrugate, glass, plastic, expanded polystyrene, nylon, paper, sawdust, tin plate, wax, wood, natural rubber, electrical components, glass fiber, magnesium, adhesives, various paper-related packaging materials, and metals (steel, stainless steel, aluminum, copper).
• Third-Party Manufacturers: Provide finished goods, with some single-source relationships. Facility Network:
• Manufacturing: Approximately 40 facilities globally, with 15 in the U.S.
• Research & Development: R&D efforts focus on developing new, differentiated, and innovative products based on consumer insights. Capabilities are consolidated into a global center of excellence.
• Distribution: Approximately 60 regional distribution centers and warehouses globally, with 30 in the U.S. The Company undertook a Network Optimization Project (substantially implemented by end of 2024) to simplify and streamline its North American distribution network, reducing distribution centers and optimizing locations.

Operational Metrics: Not explicitly disclosed in a quantitative format (e.g., capacity utilization, efficiency measures, quality indicators).

Market Access & Customer Relationships

Go-to-Market Strategy: Distribution Channels:

• Direct Sales: Enterprise sales force, direct customer relationships with mass merchants, warehouse clubs, home centers, department stores, drug/grocery stores, office superstores, specialty retailers, and commercial distributors.
• Digital Platforms: E-commerce retailers and direct-to-consumer online sales.
• Retail Stores: Yankee Candle retail stores.

Customer Portfolio: Enterprise Customers:

• Tier 1 Clients: Amazon.com Inc. (17% of net sales in 2025), Walmart Inc. and subsidiaries (13% of net sales in 2025).
• Strategic Partnerships: The Company develops strong relationships with large, high-volume purchasers.
• Customer Concentration: The top-ten customers in 2025 included Amazon.com Inc., Costco Wholesale Corporation, Grainger Inc., Office Depot Inc., Staples Inc., Target Corporation, The Home Depot Inc., The Kroger Co., Uline Inc., and Walmart Inc. and subsidiaries. Geographic Revenue Distribution:
• United States: 61.2% of total revenue
• Canada: 4.3% of total revenue
• Europe, Middle East and Africa: 16.6% of total revenue
• Latin America: 11.2% of total revenue
• Asia Pacific: 6.8% of total revenue
• Growth Markets: The Company has international operations in over 45 countries, with non-U.S. businesses accounting for approximately 39% of net sales in 2025.

Competitive Intelligence

Market Structure & Dynamics

Industry Characteristics: The Company operates in a highly competitive global consumer goods market characterized by shifting consumer preferences, a rapidly changing retail and consumer landscape (including evolving retailer inventory, sourcing, and promotional patterns), increased adoption of digital and AI-enabled tools, macroeconomic and geopolitical volatility, and significant cumulative inflationary pressures. The market is dominated by large omni-channel and e-commerce retailers with strong negotiating power. Competitive Positioning Matrix:

Direct Competitors

Primary Competitors: Newell Brands Inc. competes with numerous manufacturers and distributors of consumer products, many of which are large and well-established. Specific competitors are not named in the filing beyond general statements. Yankee Candle retail stores compete primarily with specialty candle and personal care retailers, department stores, gift stores, and national specialty retailers that sell candles. Emerging Competitive Threats: Proliferation of digitally native brands, retailers importing generic products directly from foreign sources, and retailers sourcing and selling products under their own private label brands. Competitive Response Strategy: The Company's approach includes creating and maintaining leading brands and differentiated products, delivering superior customer service and consistent on-time delivery, producing and procuring products at a competitive cost, and investing in consumer insights to develop innovative products. It also focuses on developing strong relationships with large, high-volume purchasers and expanding its e-commerce business.

Risk Assessment Framework

Strategic & Market Risks

Market Dynamics:

• Intense Competition: Marketplace dominated by large omni-channel and e-commerce retailers, leading to downward pricing pressures, demands for innovative products, reduced lead times, and potential for retailers to import generic or private label products.
• Customer Consolidation & Dependence: Sales are highly dependent on a few large customers (Amazon.com Inc., Walmart Inc. and subsidiaries), with no long-term binding contracts. Consolidation could lead to reduced purchases, harmonized pricing, and supply chain rationalization.
• Innovation Failure: Inability to continuously innovate and commercialize new products could adversely impact competitiveness and financial results.
• Brand Erosion: Failure to develop and maintain leading brands or realize anticipated benefits from advertising and promotion could harm operating results.
• E-commerce Expansion Failure: Inadequate or ineffective e-commerce investments could adversely affect market position, net sales, and financial performance.
• Global Macroeconomic Environment: Operations and financial condition can be adversely impacted by global economic conditions, geopolitical volatility, and specific events (e.g., war, terrorism, public health issues, natural disasters).
• Foreign Operations Risks: Exposure to protectionist policies, new market restrictions, inflation/hyperinflation, currency fluctuations, changes in laws/regulations, social/political instability, reduced IP protection, and restrictions on fund transfers in international markets.
• Inventory Valuation Risk: Unfavorable shifts in industry-wide demand could lead to excess or obsolete inventory, requiring write-downs. Technology Disruption: The rapid growth of e-commerce and the emergence of alternative retail channels (e.g., subscription services) can disrupt traditional retail relationships. Customer Concentration: High dependence on Amazon.com Inc. (17% of net sales) and Walmart Inc. and subsidiaries (13% of net sales) creates concentration risk.

Operational & Execution Risks

Supply Chain Vulnerabilities:

• Supplier Dependency: Reliance on third-party vendors and suppliers for a significant portion of parts and products, including single-source or limited-source relationships (e.g., Baby business unit). Failure to perform adequately could disrupt operations.
• Raw Material & Cost Volatility: Exposure to inflation and changes in cost or availability of raw materials (resin, metals, etc.), labor, energy, and transportation. Inability to offset cost increases through pricing or productivity could impact profitability.
• Geographic Concentration: Supply chain disruptions from geopolitical conflicts, unavailability of shipping containers, or significant weather/health conditions affecting manufacturers/shippers. Capacity Constraints: Not explicitly detailed, but general supply chain risks are mentioned. Turnaround Plan Execution: Risks that the Company's turnaround plan, including the Productivity Plan and other restructuring initiatives, may not be substantially completed in the expected timeframe, may be more costly, or may not fully achieve anticipated cost savings. AI Use Risks: Use of AI tools in operations and systems poses risks of deficiencies, inaccurate output, inoperability, cybersecurity/data privacy breaches, intellectual property infringement, and compliance with evolving regulatory landscapes.

Financial & Regulatory Risks

Market & Financial Risks:

• Substantial Indebtedness: $4.67 billion in outstanding debt at December 31, 2025, leading to significant cash flow dedication to debt payments, limited business flexibility, potential credit rating impacts, and increased borrowing costs.
• Credit Rating Downgrades: Downgrades by Moody’s Corporation and S&P Global Inc. in 2025 and 2024 resulted in coupon step-ups on certain senior notes, increasing interest expense. Further downgrades could impact borrowing costs and access to capital.
• Covenant Compliance: Failure to comply with financial covenants (Collateral Coverage Ratio and Total Net Leverage Ratio) under the $1.00 billion Credit Revolver could impair borrowing ability and trigger cross-default/acceleration provisions.
• Interest Rate Fluctuations: Variable rate debt (approximately $1.13 billion) exposes the Company to increased borrowing costs from interest rate increases.
• Foreign Exchange: Exposure to foreign currency translation and transaction risks, which can materially affect operating results, financial condition, and liquidity.
• Impairment Charges: Continued declines in future expected cash flows or changes to underlying assumptions could result in additional impairment charges for goodwill and indefinite-lived intangible assets. The Commercial reporting unit and certain tradenames have fair values within 10% of carrying values, indicating sensitivity to future changes.
• Divestiture Risks: Difficulties in separating operations, retention of liabilities, business disruption, loss of key employees, and disputes with buyers associated with divestitures or brand/product line exits. Regulatory & Compliance Risks:
• Governmental Investigations/Actions: Subject to various federal, state, and foreign laws and regulations, including potential for third-party litigation, regulatory examinations, and investigations (e.g., SEC settlement in 2023).
• Environmental Remediation: Obligations to investigate and/or clean up contaminated properties, with estimated costs of $35 million at December 31, 2025. The Lower Passaic River matter poses a potential for material liability, though not currently expected.
• Product Recalls/Liability: Exposure to product recalls (e.g., Oster French Door Countertop Ovens recall in 2025), product liability claims, and class action lawsuits, which can result in significant costs, fines, and reputational harm.
• Intellectual Property: Risk of failing to adequately protect IP rights (patents, trademarks) or infringing on others' IP, which could affect market share, competitiveness, and incur legal costs.
• Data Protection & Privacy: Subject to global privacy laws (e.g., GDPR, CCPA, EU AI Act), increasing compliance complexity, costs, and potential for significant regulatory investigations, fines, and litigation.
• Tax Contingencies: Subject to income tax in multiple jurisdictions, with significant estimation and judgment required. Resolution of tax audits and litigation could result in additional tax liabilities (e.g., potential $180-$220 million income tax expense related to 2017 U.S. Tax Reform Regulations).
• Climate Change & ESG: Increased focus on sustainability issues by governments, regulators, investors, and customers could lead to new legislation, regulations, increased operating/capital costs, and reputational harm if targets are not met or accurately reported.

Geopolitical & External Risks

Geopolitical Exposure:

• Geographic Dependencies: Operations and sales in countries with potential for economic, social, and/or political instability or hyperinflation.
• Trade Relations: Impact of new tariffs imposed by the U.S. and retaliatory tariffs by other countries (e.g., $174 million incremental cash tariff cost in 2025), increasing costs and impacting trade levels.
• Sanctions & Export Controls: Compliance requirements and business limitations due to trade restrictions.

Innovation & Technology Leadership

Research & Development Focus: Core Technology Areas: The Company's R&D efforts are focused on developing new, differentiated, and innovative products to meet consumer needs, starting with consumer insights. Innovation Pipeline: The Company continues to invest to strengthen its product design, research and development capabilities, and has consolidated its design and innovation capabilities and consumer marketing and insight capabilities into a global center of excellence. Intellectual Property Portfolio:

• Patent Strategy: Holds numerous design and utility patents covering a wide variety of products.
• Licensing Programs: Sells certain home canning and food storage products under the Ball brand, pursuant to a license from Ball Corporation. Also has rights to sell various small appliances in substantially all of Europe under the Breville brand name.
• IP Litigation: The Company faces exposure to claims of infringing intellectual property rights of others. Technology Partnerships: Not explicitly detailed beyond general statements about leveraging AI.

Leadership & Governance

Executive Leadership Team

Leadership Continuity: The Company believes its management team has the experience necessary to effectively execute its strategy and advance its product and technology leadership. The CEO and executive leadership team have deep industry experience and partner with an experienced and talented management team. Board Composition: The Board of Directors provides oversight of risks from cybersecurity threats through its Audit Committee. The Audit Committee incorporates this information into its regular reporting to the Board of Directors.

Human Capital Strategy

Workforce Composition:

• Total Employees: Approximately 21,900 worldwide at December 31, 2025.
• Geographic Distribution: Approximately 9,850 in North America, 4,500 in Latin America, 4,200 in Europe, Middle East and Africa, and 3,350 in the Asia-Pacific region.
• Skill Mix: Approximately 13,250 employees were in manufacturing and supply chain roles. The Company is focused on attracting, engaging, and retaining a multi-cultural, multi-generational workforce that reflects the array of consumers it serves.

Talent Management: Acquisition & Retention: The Company deploys a talent and workforce planning strategy focused on attracting, engaging, and retaining required talent pools and capabilities. It guards against unfair talent practices and makes decisions based on merit. Diversity & Development: Newell Brands Inc. is focused on providing career experience opportunities that encourage employee development, offering resources and experiences to expand skill sets, including AI proficiency. Employees have opportunities for coaching, mentoring, and lateral or upward movement within the Company. The Company tracks and reports internally on key talent metrics, including talent pipeline, succession data, and organization health engagement indices. Culture & Engagement: The Company is committed to creating a workplace that fosters innovation, high performance, and inclusion, guided by values of Integrity, Teamwork, Passion for Winning, Ownership, and Leadership. It works to create a culture where employees feel their voice is heard.

Environmental & Social Impact

Environmental Commitments: Climate Strategy: Not explicitly detailed with specific emissions targets or carbon neutrality commitments. However, the Company acknowledges that legislative or regulatory actions related to climate change could increase energy costs, reduce fuel efficiency, and result in additional capital expenditures and operating costs. Supply Chain Sustainability: The Company is exposed to increased focus on sustainability issues, including those related to climate change, which may result in new legislation, regulations, and customer requirements. Social Impact Initiatives: The Company's values guide its relationships with consumers, customers, suppliers, and employees, emphasizing a mission-first philosophy to deliver results, drive long-term sustainability, and promote a winning culture.

Business Cyclicality & Seasonality

Demand Patterns:

• Seasonal Trends: Sales, operating income, and operating cash flow in the first quarter are generally lower than other quarters, driven by reduced volume and product mix. The majority of operating cash flow is generated in the third and fourth quarters due to seasonal variations, timing of compensation payments, customer program payments, working capital requirements, and credit terms.
• Economic Sensitivity: The Company's business depends on the strength of the retail, commercial, and industrial sectors, which are affected by consumer demand and general economic conditions, including global economic instability, inflation, and geopolitical events.
• Industry Cycles: The Company is impacted by evolving retailer inventory, sourcing, and promotional patterns, and a soft macro backdrop. Planning & Forecasting: The Company monitors and responds to these demand patterns through its strategic initiatives, including pricing optimization, productivity enhancements, and supply chain management.

Regulatory Environment & Compliance

Regulatory Framework: Industry-Specific Regulations: Subject to various federal, state, and foreign laws and regulations, including environmental, data privacy, competition, and product-related laws (e.g., U.S. Consumer Products Safety Act of 1972, as amended). International Compliance: Subject to tax regulations in multiple foreign jurisdictions, and changes in international tax laws (e.g., OECD Pillar Two framework) could impact financial results. Trade & Export Controls: Subject to new tariffs imposed by the U.S. and retaliatory tariffs by other countries, as well as export restrictions and sanctions compliance. Legal Proceedings: Involved in various claims and lawsuits in the ordinary course of business, including contractual disputes, employment and environmental matters, product and general liability claims, intellectual property infringement claims, and consumer/employment class actions. Material litigation includes the Lower Passaic River matter, where the Company has been identified as a Potentially Responsible Party. The Company also settled an SEC investigation in 2023 related to sales practices and accounting matters, paying a civil penalty of approximately $13 million.

Tax Strategy & Considerations

Tax Profile:

• Effective Tax Rate: 5.3% in 2025, compared to 16.9% in 2024. The decrease in the tax benefit rate was primarily driven by a decrease in discrete benefits and lower pretax book income for 2025.
• Geographic Tax Planning: The Company has accumulated unremitted earnings of approximately $4.40 billion from foreign subsidiaries. Deferred taxes of approximately $9 million are recognized for a portion of these earnings not indefinitely reinvested.
• Tax Reform Impact: The Company is subject to the OECD Pillar Two framework in many countries where it operates. The Company is disputing a proposed IRS assessment of $80 million in additional taxes plus $34 million in penalties related to transfer pricing for tax years 2011-2015. The Company believes it has strong arguments against the validity of certain IRC Section 245A regulations, which, if not sustained, could result in an income tax expense of approximately $180 million to $220 million related to a 2018 tax benefit.

Insurance & Risk Transfer

Risk Management Framework: The Company uses derivative transactions to hedge exposures to interest rate, foreign currency rate, and commodity price fluctuations, not for trading purposes. It maintains product liability insurance, subject to significant self-insured retentions, and does not maintain product recall insurance.

• Insurance Coverage: Product liability insurance, workers’ compensation, general and product liability, and auto liability.
• Risk Transfer Mechanisms: Interest rate swaps to manage fixed/floating debt mix, cross-currency swaps to hedge foreign currency risk on financing arrangements, and forward foreign currency contracts to mitigate exchange rate exposure on forecasted inventory purchases and sales.
• Standby Letters of Credit: Approximately $49 million in standby letters of credit at December 31, 2025, primarily related to self-insurance programs.