Supplier Finance Program

The Company has a voluntary Supplier Finance Program (SFP) administered through a third-party platform that

provides the Company’s independent manufacturers that supply its inventory (inventory suppliers) the opportunity to

sell their receivables due from the Company to participating financial institutions in advance of the invoice due date,

at the sole discretion of both inventory suppliers and the financial institutions The Company is not party to the

agreements between these third parties and has no economic interest in an inventory suppliers’ decision to sell a

The Company’s payment obligations, including the amounts due and payment terms, which generally do not exceed

90 days, are not impacted by the inventory suppliers’ election to participate in the SFP, and the Company provides

no guarantees to any third parties under the SFP. Accordingly, amounts due to inventory suppliers that elect to

participate in the SFP are recorded in trade accounts payable in the consolidated balance sheets.

Activity for the Company’s SFP program is as follows:

Payments made in connection with the SFP are reported as cash used in operating activities in the trade accounts

payable line item of the consolidated statements of cash flows.