The Company manufactures, markets and sells its products globally. During the three months ended June 27, 2026 and June 28, 2025, 24.0% and 24.6%, respectively, of the Company’s sales were generated outside the U.S. in local currencies. The Company also incurs certain manufacturing, marketing and selling costs in international markets in local currency.

Accordingly, earnings and cash flows are exposed to market risk from changes in foreign currency exchange rates relative to the U.S. Dollar, the Company’s reporting currency. The Company has a program in place that is designed to mitigate the exposure to changes in foreign currency exchange rates. That program includes the use of derivative financial instruments to minimize, for a period of time, the impact on its financial results from changes in foreign exchange rates. The Company utilizes foreign currency forward contracts to hedge the anticipated cash flows from transactions denominated in foreign currencies, primarily Japanese Yen and Euro, and to a lesser extent Swiss Franc, Mexican Peso, Chinese Yuan, and Canadian Dollar. This does not eliminate the impact of the volatility of foreign exchange rates. However, because the Company generally enters into forward contracts one year out, rates are fixed for a one-year period, thereby facilitating financial planning and resource allocation.

All of the Company’s designated foreign currency hedge contracts as of June 27, 2026 and March 28, 2026 were cash flow hedges under FASB ASC Topic 815, Derivatives and Hedging (“ASC 815”). The Company records the effective portion of any change in the fair value of designated foreign currency hedge contracts in other comprehensive income until the related third-party transaction occurs. Once the related third-party transaction occurs, the Company reclassifies the effective portion of any related gain or loss on the designated foreign currency hedge contracts to earnings. In the event the hedged forecasted transaction does not occur, or it becomes probable that it will not occur, the Company will reclassify the amount of any gain or loss on the related cash flow hedge to earnings at that time. The Company had designated foreign currency hedge contracts outstanding in the contract amount of $19.5 million as of June 27, 2026 and $30.1 million as of March 28, 2026. As of June 27, 2026, a gain of $0.1 million, net of tax, will be reclassified to earnings within the next eighteen months. Substantially all currency cash flow hedges outstanding as of June 27, 2026 mature within eighteen months.

The Company manages its exposure to changes in foreign currency on a consolidated basis to take advantage of offsetting transactions and balances. It uses foreign currency forward contracts as a part of its strategy to manage exposure related to foreign currency denominated monetary assets and liabilities. These foreign currency forward contracts are entered into for periods consistent with currency transaction exposures, generally one month. They are not designated as cash flow or fair value hedges under ASC 815. These forward contracts are marked-to-market with changes in fair value recorded to earnings. The Company had non-designated foreign currency hedge contracts under ASC 815 outstanding in the contract amount of $56.3 million as of June 27, 2026 and $75.3 million as of March 28, 2026.

Part of the Company’s interest rate risk management strategy includes the use of interest rate swaps to mitigate its exposure to changes in variable interest rates. The Company’s objective in using interest rate swaps is to add stability to interest expense and to manage and reduce the risk inherent in interest rate fluctuations.

Loans under the 2024 Revised Credit Facilities bear interest at an annual rate equal to the 1-month USD Term SOFR, plus an applicable rate ranging from 1.125% to 1.750% based on the Company’s consolidated net leverage ratio. As a result of the amendment and extension in September 2024, the two modified interest rate swaps have an average blended fixed interest rate of 3.31% plus the applicable rate on approximately 80% of the notional value of the unsecured term loan, until their maturity in April 2029. The Company has determined both of these interest rate swaps are effective and qualify for hedge accounting treatment.


Hedged Item	Original Notional Amount		Notional Amount as of June 27, 2026		Designation Date	Effective Date	Termination Date	Fixed Interest Rate	Estimated Asset Fair Value

	(Dollars in Thousands)




1-month USD Term SOFR	$	109,900	$	99,666	9/27/2024	9/30/2024	4/30/2029	3.3%	$	1,293
1-month USD Term SOFR	109,900		98,319		9/27/2024	9/30/2024	4/30/2029	3.3%	1,332
Total	$	219,800	$	197,985					$	2,625

For the three months ended June 27, 2026, the Company recognized a gain on the interest rate swaps to recognize the effective portion of the fair value of the swaps that qualify as cash flow hedges of $0.7 million, net of tax, in accumulated other comprehensive loss (“AOCL”) within the condensed consolidated balance sheets.

In the ordinary course of business, the Company grants trade credit to its customers on normal credit terms. In an effort to reduce its credit risk, the Company (i) establishes credit limits for all customers; (ii) performs ongoing credit evaluations of customers’ financial condition; (iii) monitors the payment history and aging of customers’ receivables; and (iv) monitors open orders against an individual customer’s outstanding receivable balance.

The Company’s allowance for credit losses is maintained for trade accounts receivable based on the expected collectability, the historical collection experience, the length of time an account is outstanding, the financial position of the customer and information provided by credit rating services. The Company has not experienced significant customer payment defaults or identified other significant collectability concerns.

Fair value is defined as the exit price that would be received from the sale of an asset or paid to transfer a liability, using assumptions that market participants would use in pricing an asset or liability. The fair value guidance establishes the following three-level hierarchy used for measuring fair value:


Derivative Instruments	Amount of Gain Recognized in AOCL		Amount of (Loss) Gain Reclassified from AOCL into Earnings		Classification in Earnings	Amount of Gain (Loss) Excluded from Effectiveness Testing		Classification in Earnings

	(Dollars in Thousands)
Designated foreign currency hedge contracts, net of tax	$	133	$	116	Net revenues, COGS and SG&A	$	315	Interest and other expense, net
Non-designated foreign currency hedge contracts	$	—	$	—		$	(21)	Interest and other expense, net
Designated interest rate swaps, net of tax	$	664	$	(11)	Interest and other expense, net	$	—

ASC 815 requires all derivative instruments to be recognized at their fair values as either assets or liabilities on the balance sheet. The Company determines the fair value of its derivative instruments using the framework prescribed by FASB ASC Topic 820, Fair Value Measurements and Disclosures, by considering the estimated amount it would receive or pay to sell or transfer these instruments at the reporting date and by taking into account current interest rates, currency exchange rates, current interest rate curves, interest rate volatilities, the creditworthiness of the counterparty for assets, and its creditworthiness for liabilities. In certain instances, the Company may utilize financial models to measure fair value. Generally, the Company uses inputs that include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; other observable inputs for the asset or liability; and inputs derived principally from, or corroborated by, observable market data by correlation or other means. As of June 27, 2026, the Company has classified its derivative assets and liabilities within Level 2 of the fair value hierarchy prescribed by ASC 815, as discussed below, because these observable inputs are available for substantially the full term of its derivative instruments.


	Classification	June 27, 2026		March 28, 2026

		(Dollars in Thousands)
Derivative Assets:
Designated foreign currency hedge contracts	Prepaid expenses and other current assets	$	1,248	$	1,245
Non-designated foreign currency hedge contracts	Prepaid expenses and other current assets	28		330
Designated interest rate swaps	Prepaid expenses and other current assets	1,133		823
Designated interest rate swaps	Other long-term assets	1,492		947
Total		$	3,901	$	3,345

Derivative Liabilities:
Designated foreign currency hedge contracts	Other current liabilities	$	97	$	50
Non-designated foreign currency hedge contracts	Other current liabilities	35		63


Total		$	132	$	113


	June 27, 2026
	Level 1		Level 2		Level 3		Total

	(Dollars in Thousands)
Assets
Money market funds	$	36,670	$	—	$	—	$	36,670
Designated foreign currency hedge contracts	—		1,248		—		1,248
Non-designated foreign currency hedge contracts	—		28		—		28
Designated interest rate swaps	—		2,625		—		2,625
Total	$	36,670	$	3,901	$	—	$	40,571

Liabilities
Designated foreign currency hedge contracts	$	—	$	97	$	—	$	97
Non-designated foreign currency hedge contracts	—		35		—		35

Contingent consideration	—				21,016		21,016
Total	$	—	$	132	$	21,016	$	21,148


	March 28, 2026
	Level 1		Level 2		Level 3		Total

	(Dollars in Thousands)
Assets
Money market funds	$	90,716	$	—	$	—	$	90,716
Designated foreign currency hedge contracts	—		1,245		—		1,245
Non-designated foreign currency hedge contracts	—		330		—		330
Designated interest rate swaps	—		1,770		—		1,770
Total	$	90,716	$	3,345	$	—	$	94,061

Liabilities
Designated foreign currency hedge contracts	$	—	$	50	$	—	$	50
Non-designated foreign currency hedge contracts	—		63		—		63

Contingent consideration	—		—		21,063		21,063
Total	$	—	$	113	$	21,063	$	21,176

Foreign currency hedge contracts - The fair value of foreign currency hedge contracts was measured using significant other observable inputs and valued by reference to over-the-counter quoted market prices for similar instruments. The Company does not believe that the fair value of these derivative instruments differs significantly from the amount that could be realized upon settlement or maturity, or that the changes in fair value will have a significant effect on its results of operations, financial condition or cash flows.

Interest rate swaps - The fair values of interest rate swaps are measured using the present value of expected future cash flows using market-based observable inputs, including credit risk and interest rate yield curves. The Company does not believe that the fair values of these derivative instruments differ significantly from the amounts that could be realized upon settlement or maturity, or that the changes in fair value will have a significant effect on its results of operations, financial condition or cash flows.

Contingent consideration - The fair value of contingent consideration liabilities is based on significant unobservable inputs, including management estimates and assumptions, and is measured based on the probability-weighted present value of the payments expected to be made. Accordingly, the fair value of contingent consideration has been classified as level 3 within the fair value hierarchy.


	Fair Value as of
	June 27, 2026		Valuation Technique	Unobservable Input	Range

	(Dollars in Thousands)
Revenue-based payments	$	3,066	Monte Carlo Simulation Model	Discount rate	3.4%
				Projected fiscal year of payments	2028 - 2030



Event-based payment	$	296	Monte Carlo Simulation Model	Discount rate	5.8%
				Projected fiscal year of payment	2027 - 2028
	$	17,654	Monte Carlo Simulation Model	Discount rate	3.0%
				Projected fiscal year of payment	2027


	Fair Value as of
	March 28, 2026		Valuation Technique	Unobservable Input	Range

	(Dollars in Thousands)
Revenue-based payments	$	3,076	Monte Carlo Simulation Model	Discount rate	3.4%
				Projected fiscal year of payments	2028 - 2030



Event-based payment	$	390	Monte Carlo Simulation Model	Discount rate	5.8%
				Projected fiscal year of payment	2027 - 2028
	$	17,597	Monte Carlo Simulation Model	Discount rate	3.0%
				Projected fiscal year of payment	2027

The fair value of contingent consideration associated with acquisitions was $21.0 million and $21.1 million as of June 27, 2026 and March 28, 2026, respectively. As of June 27, 2026, $17.9 million was included in other current liabilities and $3.1 million was included in other long-term liabilities. As of March 28, 2026, $17.6 million was included in other current liabilities and $3.4 million was included in other long-term liabilities.

The fair value of the 2029 Notes was $714.7 million and $662.4 million as of June 27, 2026 and March 28, 2026, respectively, which were determined by using the market price on the last trading day of the reporting period and are considered as level 2 in the fair value hierarchy.