TARIFF REFUND RECEIVABLE	3 Months Ended
Apr. 30, 2026
TARIFF REFUND RECEIVABLE
TARIFF REFUND RECEIVABLE	NOTE 12 – TARIFF REFUND RECEIVABLE In February 2026, the Supreme Court of the United States ruled against the current administration’s use of the International Emergency Economic Powers Act (“IEEPA”) to impose certain tariffs levied since February 2025. Pursuant to a court order on March 4, 2026 from the U.S. Court of International Trade (“CIT”) directing the refund of such tariffs, including applicable interest, on April 20, 2026, U.S. Customs and Border Protection (“CBP”) launched the Consolidated Administration and Processing of Entries (“CAPE”) system to facilitate refund claims, to which the Company successfully submitted its refund claim. Based on the Supreme Court ruling, the CIT order and actions taken by CBP regarding the refund process and other available information, including offers from third-party financial institutions to acquire the Company’s tariff refund claim, the Company assessed that the recovery of previously paid IEEPA tariffs is probable and reasonably estimable in accordance with the cost recovery accounting guidance. As of April 30, 2026, the Company recorded a receivable of approximately $139.5 million related to IEEPA tariffs paid by the Company between February 2025 and February 2026, which is included within prepaid expenses and other current assets on the Company’s condensed consolidated balance sheets. The accounting for the IEEPA tariff refund reflects the original treatment of the underlying tariff costs. During the three months ended April 30, 2026, the Company recognized a $119.7 million reduction in cost of goods sold in the Company’s condensed consolidated statements of income, representing the expense for IEEPA tariffs on inventory sold to customers since the tariffs were enacted in February 2025. Additionally, the Company recognized a $19.8 million reduction in the carrying value of inventories on hand on the Company’s condensed consolidated balance sheet as of April 30, 2026 for tariffs previously capitalized as cost of inventory. Interest associated with refunded IEEPA tariffs will be recognized in the Company’s condensed consolidated statements of income in the period it is received. Although the Company has assessed that the recovery of previously paid IEEPA tariffs is probable based on currently available information, the timing of cash receipts remains dependent upon the processing of refund claims by CBP and the U.S. Department of Treasury.

TARIFF REFUND RECEIVABLE

3 Months Ended

Apr. 30, 2026

NOTE 12 – TARIFF REFUND RECEIVABLE

In February 2026, the Supreme Court of the United States ruled against the current administration’s use of the International Emergency Economic Powers Act (“IEEPA”) to impose certain tariffs levied since February 2025. Pursuant to a court order on March 4, 2026 from the U.S. Court of International Trade (“CIT”) directing the refund of such tariffs, including applicable interest, on April 20, 2026, U.S. Customs and Border Protection (“CBP”) launched the Consolidated Administration and Processing of Entries (“CAPE”) system to facilitate refund claims, to which the Company successfully submitted its refund claim.

Based on the Supreme Court ruling, the CIT order and actions taken by CBP regarding the refund process and other available information, including offers from third-party financial institutions to acquire the Company’s tariff refund claim, the Company assessed that the recovery of previously paid IEEPA tariffs is probable and reasonably estimable in accordance with the cost recovery accounting guidance. As of April 30, 2026, the Company recorded a receivable of approximately $139.5 million related to IEEPA tariffs paid by the Company between February 2025 and February 2026, which is included within prepaid expenses and other current assets on the Company’s condensed consolidated balance sheets.

The accounting for the IEEPA tariff refund reflects the original treatment of the underlying tariff costs. During the three months ended April 30, 2026, the Company recognized a $119.7 million reduction in cost of goods sold in the Company’s condensed consolidated statements of income, representing the expense for IEEPA tariffs on inventory sold to customers since the tariffs were enacted in February 2025. Additionally, the Company recognized a $19.8 million reduction in the carrying value of inventories on hand on the Company’s condensed consolidated balance sheet as of April 30, 2026 for tariffs previously capitalized as cost of inventory. Interest associated with refunded IEEPA tariffs will be recognized in the Company’s condensed consolidated statements of income in the period it is received.

Although the Company has assessed that the recovery of previously paid IEEPA tariffs is probable based on currently available information, the timing of cash receipts remains dependent upon the processing of refund claims by CBP and the U.S. Department of Treasury.