Financial Performance - Net loss for fiscal 2025 was $46.4 million, or $0.54 per share, compared to a net loss of approximately $43.0 million, or $0.52 per share for fiscal 2024[350]. - Cash and cash equivalents decreased to $102.6 million at September 30, 2025, down from $132.2 million at September 30, 2024[351]. - Cash flows used in operating activities increased by $8.2 million to $(39.0) million in fiscal 2025, primarily due to a decrease in accounts payable[354]. - Net other income for fiscal 2025 was $5.0 million, down from $9.9 million in fiscal 2024, primarily due to a $2.6 million decrease in interest income[348]. Operating Expenses - Operating expenses for fiscal 2025 decreased to $51.4 million, down from $52.9 million in fiscal 2024, primarily due to reduced research and development expenses[345]. - General and administrative expenses rose to $13.8 million in fiscal 2025, compared to $11.0 million in fiscal 2024, largely due to a $1.7 million increase in legal fees[347]. - The company recorded $0.6 million in research and development incentive income for fiscal 2025, a decrease from $2.3 million in fiscal 2024[349]. Research and Development - Total research and development costs for fiscal 2025 were $37.6 million, a decrease of approximately 10.7% from $41.8 million in fiscal 2024[345]. - Research and development expenses include costs for preclinical studies, clinical trials, manufacturing, and employee compensation, with milestone payments expensed upon achievement[373]. - Significant judgments and estimates are made in determining accrued balances and expenses related to clinical trials and external research organizations[374]. Financing and Agreements - The company entered into a Sales Agreement allowing for the sale of up to $150 million in common stock, with $140.4 million remaining unused as of September 30, 2025[361]. - The company has a $150 million Purchase Agreement with Lincoln Park, with $110.8 million remaining unused as of September 30, 2025[368]. Investments and Assets - The average amount invested in interest-bearing securities for the year ended September 30, 2025, was $109.3 million, with a return rate of 4.28%[381]. - At September 30, 2025, the company held net assets of $1.9 million (AUD $2.9 million) in Australian dollars, with a hypothetical 10% change in exchange rates affecting reported net assets by +/- $0.19 million[384]. - A hypothetical 100 basis point change in interest rates would impact net loss by approximately $1.1 million, with no principal loss experienced on investments to date[381]. Foreign Exchange and Inflation - The company does not utilize forward exchange contracts for foreign transactions, settling on a spot exchange basis[382]. - A hypothetical 10% change in foreign exchange rates would not have a material impact on the consolidated financial statements for the year ended September 30, 2025[383]. - Inflation has not had a material impact on the company's results of operations during the periods presented[385]. Other Expenses - The company incurs expenses related to the acquisition of intellectual property, which are expensed due to uncertainties in commercialization[375]. - Share-based compensation expenses are recognized based on the fair value method, with adjustments for actual forfeitures of unvested awards[376][377].

Economic Conditions and Risks - Global economic conditions, including inflation and supply chain disruptions, may negatively impact business operations and financial results[31] - Customers may delay, decrease, or cancel purchases, affecting cash flow and financial condition[32] - Raw material and energy inflation or shortages could harm financial condition and results of operations[34] - Weather-related events may adversely impact business operations and customer demand[35] - International operations expose the company to foreign exchange rate risks that may negatively affect financial performance[47] - Changes in tax laws or geographic mix of earnings could materially impact financial condition and results of operations[51] - Cybersecurity threats are evolving risks that the company addresses through comprehensive risk management strategies[56] - The company has not identified any known cybersecurity threats that have materially affected its business strategy or financial condition[58] Financial Performance - Net sales for fiscal 2025 increased to $3,204 million, a 47% increase from $2,187 million in fiscal 2024[66] - Operating income improved to $5 million in fiscal 2025, compared to a loss of $141 million in fiscal 2024, marking a 104% increase[66] - Projected cash from operations for fiscal 2026 is estimated to be between $170 million and $190 million, with free cash flow projected between $90 million and $110 million[64] - The Americas segment reported net sales of $1,833 million in fiscal 2025, up 23% from $1,493 million in fiscal 2024[71] - The Rest of World segment saw net sales rise to $1,371 million, a 98% increase from $694 million in fiscal 2024[73] - Comprehensive loss for fiscal 2025 was $186 million, a 23% increase from a loss of $151 million in fiscal 2024, primarily due to unfavorable currency translation[70] - Free cash flow for fiscal 2025 was reported at $126 million, with cash flow from operating activities at $103 million[79] - Interest expense increased significantly to $141 million in fiscal 2025, up from $3 million in fiscal 2024, reflecting higher borrowings[69] - At the end of fiscal 2025, the company had a cash balance of $305 million, with 86% located outside the U.S.[81] - The company reported a net loss of $159 million for the fiscal year 2025, compared to a net loss of $154 million in 2024[107] - Cash and cash equivalents rose to $305 million in 2025, compared to $230 million in 2024, indicating a 32.6% increase[112] - The company identified material weaknesses in internal controls related to the merger with Glatfelter and IT systems, which could affect financial reporting reliability[98] - The company's long-term debt stood at $1,952 million as of September 27, 2025, reflecting a significant increase from previous periods[112] - Comprehensive loss for the fiscal year 2025 was $186 million, compared to a comprehensive loss of $151 million in 2024[109] - Cash flows from operating activities generated $103 million, a decrease from $192 million in the prior year[114] - The company reported a consolidated net loss of $159 million for fiscal 2025, compared to a net loss of $154 million in fiscal 2024[187] - Basic and diluted net income per share for fiscal 2025 was $(4.47), an improvement from $(4.84) in fiscal 2024[187] Assets and Liabilities - Total assets increased to $3,989 million in 2025, up from $2,807 million in 2024, reflecting a growth of 42.1%[112] - Goodwill as of September 27, 2025, was reported at $663 million, with no impairment charge recognized during the annual quantitative goodwill impairment test[95] - Inventories increased to $474 million in fiscal 2025 from $259 million in fiscal 2024[132] - Property, plant, and equipment rose to $1,476 million in fiscal 2025, up from $949 million in fiscal 2024[133] - Long-term debt totals $1,952 million, including a $785 million Term Loan and $800 million in 7.25% First Priority Senior Secured Notes, both maturing in 2031[149] - The book value of marketable long-term indebtedness exceeded fair value by $108 million as of September 27, 2025[155] - The Company has a net deferred tax asset of $30 million as of fiscal year 2025, compared to a liability of $21 million in 2024[166] - The Company reported a total current income tax expense of $20 million for fiscal 2025, down from $28 million in 2024[164] Acquisitions and Restructuring - The company may pursue acquisitions or mergers, which could involve risks and affect financial performance[37] - The company completed the acquisition of GLT, which contributed $37 million in cash acquired[114] - The GLT acquisition resulted in a $27 million increase in goodwill, with total consideration for the acquisition at $74 million[147] - For the year ended September 27, 2025, unaudited pro forma net sales from GLT were $3,316 million, contributing $1,145 million to total net sales[148] - The restructuring plan, Project CORE, is expected to yield operational savings over the next two years, with a total restructuring cost of $89 million recognized in fiscal 2025[175] - The company incurred a total of $89 million in restructuring and other activities in fiscal 2025, significantly higher than the $30 million in 2024[176] - Cumulative costs attributed to restructuring programs since 2023 totaled $63 million[177] Shareholder and Compensation Information - The company recognized total share-based compensation expense of $19 million in fiscal 2025, up from $7 million in both fiscal 2024 and 2023[129] - The company had unrecognized compensation expense of $16 million on equity incentive awards as of the fiscal year end[178] - The company had equity incentive shares available for grant of 5 million as of September 27, 2025[179] Tax and Regulatory Matters - The effective tax rate is influenced by various factors, including enacted tax laws and the ability to utilize foreign tax credits[140] - The Company recognized a net loss of $84 million on net investment hedges for the year ended September 27, 2025[154] - The Company has recorded unrecognized tax benefits of $45 million as of fiscal year 2025, an increase from $12 million in 2024[169] Operational Insights - The company has 22 manufacturing facilities in the Americas and 23 in the rest of the world, with 2 and 4 leased facilities respectively[59] - The top customer represented approximately 14% of net sales, while the top ten customers accounted for about 42% of net sales[127] - Total segment operating expenses for fiscal 2025 were $2,850 million, up from $1,905 million in fiscal 2024, indicating a 49.6% increase[181] Future Projections - Future amortization expense for definite lived intangibles is projected at $45 million for fiscal 2026, decreasing to $26 million by fiscal 2030[137] - The Company expects to pay future pension benefits totaling $2 million annually from 2026 to 2030, with an additional $9 million expected from 2031 to 2035[173] - The weighted-average remaining lease term for operating leases decreased from 6.5 years in 2024 to 5.6 years in 2025[160] Documentation and Agreements - The financial statements are incorporated by reference to Item 8 of the report[208] - The company has filed various agreements related to the RMT Transaction, including a Transaction Agreement and a Separation and Distribution Agreement, both dated February 6, 2024[212] - The company has entered into a Term Loan Credit Agreement and an Asset-Based Revolving Credit Agreement, both dated November 4, 2024[212] - The company has established a Deferred Compensation Plan and an Executive Severance Plan, both filed on November 5, 2024[213] - The company has made amendments to the Tax Matters Agreement, with the latest amendment dated October 21, 2024[213] - The company has a 2024 Omnibus Incentive Plan in place, which was incorporated by reference in the report[212] - The company has signed various employment agreements and compensation plans for executives, with the latest dated December 20, 2024[213] - The company has filed a letter from Deloitte & Touche LLP, dated November 4, 2024, as part of the report[213] - The company has a list of subsidiaries and subsidiary guarantors filed as part of the report[213] - The company has certifications from the Chief Executive Officer and Chief Financial Officer included in the report[213]

Government Contracts and Regulations - The U.S. federal government accounted for 81% of the company's revenues for the fiscal year 2025[100] - The company faces risks from potential decreases in U.S. federal government contracts, which could materially affect its financial condition and results[100] - The company is subject to regular audits by U.S. federal government agencies, which can lead to payment delays and financial penalties[107] - A delay in the federal government's budget process could adversely impact the company's revenue and operating results[109] - The company’s contracts are subject to specific procurement regulations, which may impose additional costs and risks compared to private sector contracts[103] - The uncertainty surrounding U.S. federal government spending levels could adversely affect funding for individual programs and delay purchasing decisions by customers[111] - The procurement process for U.S. federal government contracts may change, leading to potential delays and increased costs[114] - Changes in U.S. federal government contracting rules could impair the company's ability to obtain new contracts or renew existing ones[177] - Compliance with U.S. federal government procurement regulations increases performance and compliance costs, which are regularly evolving[166] Financial Risks and Indebtedness - The company has significant indebtedness, which could limit its operational flexibility and increase financial risk[98] - The company is required to test goodwill for possible impairment annually, which could significantly impact financial results if impairment is recorded[161] - The company may incur significant costs for engineering and materials before receiving payment, impacting liquidity and potentially leading to penalties for missed deadlines[126] - The company has a significant amount of indebtedness, including a $1,000 million offering of 7.250% senior notes due August 1, 2032[183] - The credit facility consists of a term facility maturing on September 27, 2031, and a revolving facility maturing on September 27, 2029[183] - A breach of covenants in the credit facility could result in an event of default, adversely affecting the company's financial condition[188] - The company may face substantial indemnification obligations under tax matters agreements, which could adversely affect its financial condition[203] Competition and Market Environment - The company operates in a highly competitive environment, which may lead to loss of market share if it cannot compete effectively[94] - The company faces intense competition in providing engineering and technology solutions, which may pressure contract prices and profit margins[113] - Revenues derived from fixed-price contracts represented 24% of total revenues for fiscal year 2025, exposing the company to risks of cost overruns[123] - 63% of the company's revenues for fiscal year 2025 were generated from cost-plus-fee type contracts, which generally have lower profitability than fixed-price contracts[119] Cybersecurity and Data Privacy - The company is exposed to cybersecurity risks that could result in financial losses and reputational harm[98] - Cybersecurity risks are heightened due to remote work arrangements, which could lead to significant financial losses and reputational harm[138] - The company faces risks related to data privacy and security compliance, which could lead to investigations or penalties[178] - The company must comply with specific cybersecurity requirements under the CMMC program, which could impact its ability to bid on government contracts[179] - The company faces risks related to compliance with data privacy and security laws, which could result in regulatory actions and financial penalties[180] Operational and Environmental Risks - Climate change-related issues could adversely affect the company's equipment and infrastructure, impacting financial performance[102] - Climate change-related events could adversely affect the company's operations, leading to financial losses and increased costs due to natural disasters[230][231] - Regulatory responses to climate change may increase operational costs or potentially reduce demand for the company's services, impacting financial performance[232][233] - The company operates in high-risk locations, which may result in significant security costs and potential harm to employees[153] - The company faces potential adverse impacts from extraordinary events, such as natural disasters or pandemics, which could disrupt operations and increase costs[249] Employee and Labor Relations - The company has approximately 50,000 employees globally, which exposes it to various labor and employment claims, including harassment and discrimination allegations[133] - The expiration of collective bargaining agreements may lead to increased operating costs or labor disruptions, impacting financial results[251] - Employee benefit plan expenses may fluctuate due to inflation and interest rate changes, potentially affecting cash flows[252] - Rising healthcare costs could materially impact the company's financial condition if trends continue[253] - The company participates in Multi-Employer Pension Plans, which could impose liabilities if underfunded[254] Strategic Growth and Acquisitions - The company’s growth strategy includes acquisitions and strategic investments, which carry risks such as assumption of unknown liabilities and difficulties in integration[162] - Significant transaction costs are associated with business combinations and strategic investments, which could affect financial performance[167] - The realization of anticipated benefits from recent transactions depends on successful integration and may be offset by integration costs[192] Governance and Shareholder Matters - Amentum Equityholder holds a significant percentage of Amentum's common stock, influencing shareholder decisions and potentially limiting other shareholders' influence[214] - Amentum's governance documents include anti-takeover provisions that may impede or discourage a change of control[211] - Amentum Equityholder has the right to nominate directors based on its ownership percentage, which could lead to conflicts of interest[216] - Amentum's financial reporting systems may not meet public company requirements, posing risks to future operations and stock price[204] - Amentum's internal control deficiencies could result in restatements of financial statements, impacting investor confidence[206] Intellectual Property and Compliance - The company faces risks related to the protection of its intellectual property, which could impact its competitive advantage if not adequately safeguarded[237][240] - Indemnity provisions in agreements may expose the company to substantial liability for intellectual property infringement or other violations, affecting business relationships and financial conditions[244] - The company is subject to impairment testing for long-lived assets, which could lead to significant charges if cash flow levels are insufficient[245] Economic and Market Conditions - Continuing elevated inflation and rising interest rates could reduce demand for services and decrease profits on existing fixed-price contracts[119] - Economic downturns and political uncertainties may negatively affect customer spending and project funding, leading to reduced demand for the company's services[234][235] - The company's stock price may experience volatility influenced by various factors, including government spending patterns and economic conditions[223][224] - The company anticipates potential dilution of ownership due to equity awards granted to directors, officers, and employees, as well as possible equity issuance for acquisitions[220]

Acquisitions and Mergers - BD completed the acquisition of Edwards Lifesciences' Critical Care product group for a fair value of $3.914 billion, now reported as BD Advanced Patient Monitoring[18]. - BD entered into a definitive agreement to combine its Biosciences and Diagnostic Solutions business with Waters Corporation, expecting to receive approximately $4 billion in cash distribution prior to completion[19]. - BD's shareholders are expected to own approximately 39.2% of the combined company post-transaction with Waters Corporation[19]. - The proposed combination with Waters is expected to result in shareholders owning approximately 39.2% of the combined company, pending regulatory approvals[127]. - The transaction with Waters is anticipated to close around the end of Q1 2026, but completion is not guaranteed[127]. - The spin-off of Embecta Corp. was completed on April 1, 2022, and is intended to be tax-free; however, any failure to meet conditions could result in tax liabilities[130][131]. Financial Performance - Worldwide revenues in 2025 reached $21.840 billion, an increase of 8.2% from the prior year, driven by a 4.8% contribution from the acquisition of Advanced Patient Monitoring[182]. - Cash flows from continuing operating activities were $3.430 billion in 2025, with $859 million in cash and equivalents at the end of the fiscal year[182]. - The Medical segment reported total revenues of $11.456 billion in 2025, reflecting a 13.7% increase compared to 2024[186]. - The Advanced Patient Monitoring unit, acquired in September 2024, generated $1.082 billion in revenue in 2025, significantly contributing to the Medical segment's growth[186]. - The Medication Management Solutions unit experienced a revenue increase of 5.4% in 2025, driven by strong sales of infusion systems[186]. - Medical segment operating income for 2025 was $4,140 million, representing a 15.5% increase from $3,583 million in 2024, with an operating income margin of 36.1%[190]. - Life Sciences segment revenues totaled $5,167 million in 2025, a slight decline of 0.5% compared to $5,191 million in 2024, with a segment operating income of $1,641 million, or 31.8% of revenues[191][193]. - Interventional segment revenues increased by 4.8% to $5,217 million in 2025, with operating income rising to $2,253 million, reflecting a margin of 43.2%[196][198]. - U.S. revenues reached $12,790 million in 2025, a 9.7% increase from $11,663 million in 2024, largely driven by the Advanced Patient Monitoring unit's sales[199]. - International revenues grew by 6.3% to $9,049 million in 2025, supported by strong sales across all Interventional segment units[201]. - Emerging market revenues increased by 2.6% to $3,133 million in 2025, with strong sales in Greater Asia and Latin America, despite declines in China[205]. Regulatory and Compliance Issues - BD's operations are subject to increasing regulatory scrutiny from agencies like the FDA, affecting product development and market availability[34]. - The FDA issued a non-compliance letter to CareFusion 303, Inc. regarding quality system issues, requiring a comprehensive corrective action plan[40]. - Increased regulation on ethylene oxide emissions may impact BD's sterilization operations and lead to additional costs[48]. - The company is facing potential penalties of $15,000 per day for violations of the Consent Decree, with a maximum of $15 million per year[42]. - The company has business continuity plans to mitigate potential disruptions in sterilization operations, although these may not fully offset impacts[50]. - The FDA has issued warning letters affecting the BD Alaris™ infusion pump business, necessitating compliance and remediation efforts[114]. - The company received FDA 510(k) clearance for the updated BD Alaris™ Infusion System, with remediation expected to be substantially complete over the next calendar year[115]. - The European Union's Medical Device Regulation (EU MDR) and In Vitro Diagnostic Regulation (EU IVDR) impose stricter requirements, with compliance costs expected to be significant[116]. - The EU MDR is fully applicable since May 2021, with extended application until 2027 for higher-risk devices and 2028 for others[116]. - Increased regulation may necessitate temporary suspensions of sterilization operations, impacting production capacity and potentially leading to civil litigation[102]. - The company faces extensive regulatory scrutiny, which may increase compliance costs and impact financial performance[110]. Research and Development - BD's R&D activities are primarily conducted in North America, with significant presences in Greater Asia and Europe, collaborating with universities and medical centers[27]. - Research and development expenses as a percentage of revenues increased in 2025, primarily due to costs associated with the Advanced Patient Monitoring unit[192]. - The company’s future growth relies on successful new product development, which requires substantial investment in R&D and regulatory approvals[83]. Market and Competitive Landscape - The company faces increased pricing pressures due to the entry of low-cost manufacturers in the medical technology market[29]. - The medical technology industry is highly competitive, with significant competition from both established companies and new entrants, including technology firms[76]. - Changing customer preferences and regulatory demands require BD to adapt its product offerings and market strategies to remain competitive[77]. - Rapid technological changes in the industry necessitate continuous innovation to prevent product obsolescence[78]. - The medical technology industry is experiencing significant consolidation, increasing competition and downward pricing pressure for medical device suppliers[79]. - Changes in reimbursement practices and healthcare funding could adversely affect demand and pricing for the company's products[80]. - The proposed expansion of the Competitive Bidding Program by the Center for Medicaid Services could significantly influence the cost structure of certain medical devices in the U.S.[81]. - A reduction in government funding for research and development has been observed, impacting customer spending and potentially affecting the company's sales[82]. Operational Challenges - The company faces risks from global economic conditions, including inflation and supply chain disruptions, which could impact demand for products[68]. - Supply chain disruptions and reliance on sole suppliers for certain raw materials could negatively impact manufacturing and sales[96]. - The company is integrating AI into its products and operations, which presents various regulatory and operational challenges[94]. - The competitive labor market poses challenges in attracting and retaining skilled employees, potentially increasing operational costs[86]. - The company has manufacturing operations worldwide, but interruptions due to various factors could adversely affect product manufacturing and lead to lost revenues[98]. - Many products require sterilization, and limited capacity at qualified facilities could impact the ability to sterilize products, affecting operating results and financial condition[99]. - Cost volatility in raw materials, particularly resin, could negatively impact future operating results, despite cost containment measures[103]. - Climate change and related regulations may increase operational costs and affect supply chain availability, impacting business operations[104]. Employee Engagement and Corporate Culture - BD employs approximately 72,000 associates across 61 countries as of September 30, 2025[52]. - The company has reintroduced performance ratings and calibration in 2025 to enhance performance differentiation and align rewards with individual contributions[53]. - BD University provides all associates access to internal learning resources aimed at developing core and management capabilities[55]. - The total rewards program includes market-competitive pay, stock grants, bonuses, healthcare benefits, and flexible work schedules to support associate well-being[56]. - BD was recognized as one of America's Most Innovative Companies by Fortune and received the "Best Employers: Excellence in Health & Well-being Award" from the Business Group on Health in 2025[61]. Cybersecurity - BD achieved ISO/IEC 27001:2022 certification in 2022, demonstrating compliance with internationally recognized cybersecurity standards[140]. - The company has a comprehensive cybersecurity risk management program guided by the NIST Cybersecurity Framework 2.0, focusing on protecting BD products and data[138]. - BD's Chief Information Security Officer (CISO) leads the cybersecurity risk management program, supported by a team with over 20 years of experience in information security[145]. - The company has engaged third-party auditors for annual surveillance audits to ensure compliance with cybersecurity standards, with the latest audit confirming ongoing adherence[140]. - BD's cybersecurity program includes mandatory quarterly training for associates and contractors, along with monthly phishing simulations to enhance awareness[139]. - The company actively monitors third-party cybersecurity risks throughout the procurement lifecycle, including assessments and remediation measures[142].

Financial Performance - In fiscal 2025, Aramark generated total revenue of $18.5 billion, with an operating income of $791.8 million and a net income attributable to stockholders of $326.4 million[21]. - Revenue for fiscal 2025 increased by 6.4% to $18,506.3 million compared to $17,400.7 million in fiscal 2024, driven by base business growth and the estimated impact of the fifty-third week[185][186]. - Operating income increased by $85.3 million to $791.8 million, reflecting improved revenue and cost management[185][190]. - Net income from continuing operations grew by 24.8% to $326.9 million, up from $261.9 million in the prior year[185]. - Interest expense, net decreased by 6.8% to $341.9 million, attributed to prior year payments and refinancing activities[192]. - The effective tax rate for fiscal 2025 was 24.1%, down from 28.2% in fiscal 2024, due to favorable tax effects from foreign subsidiaries[193]. Revenue Segmentation - The FSS United States segment contributed $13,211.9 million, accounting for 71% of total revenue, while the FSS International segment generated $5,294.4 million, representing 29% of total revenue[20][27]. - Approximately two-thirds of Aramark's revenue in fiscal 2025 was derived from profit and loss contracts, while one-third came from client interest contracts[44][45]. - Revenue from the FSS United States segment rose by 5.1% to $13,211.9 million, with notable growth in Business & Industry and Sports, Leisure & Corrections sectors[196]. - FSS International segment revenue increased by approximately 9.8% to $5,294.4 million in fiscal 2025 from $4,824.0 million in fiscal 2024[200]. Employee and Workforce - The company has a workforce of approximately 278,390 employees serving millions of customers globally[18]. - As of October 3, 2025, Aramark employed approximately 278,390 individuals, with 144,240 in FSS United States and 133,690 in FSS International[52]. - In fiscal 2025, Aramark hired approximately 90,000 new employees, a slight decrease from approximately 93,000 in fiscal 2024, with 94% being hourly employees[54]. - Approximately 39,000 employees in the United States and Canadian operations were covered by collective bargaining agreements as of October 3, 2025[52]. - The company has approximately 39,000 employees in the United States and Canada represented by unions, which could increase overall costs and affect operational flexibility[95]. Sustainability and Social Responsibility - Aramark's sustainability platform, "Be Well. Do Well.", focuses on achieving science-based greenhouse gas reduction targets validated by the Science Based Targets Initiative[49]. - In fiscal 2025, nearly 8,000 employees participated in 380 service projects benefiting community members in 200 cities across 13 countries[55]. - As of October 3, 2025, 36% of Aramark's Board of Directors and 57% of the CEO's direct reports were female, reflecting the company's commitment to diversity and inclusion[53]. - The company’s employee resource groups consist of over 5,000 employees across 15 countries, promoting a culture of inclusion and support for frontline associates[53]. Competition and Market Environment - Aramark's competitive landscape includes major competitors such as Compass Group plc, Sodexo SA, and regional service providers[46]. - The company faces significant competition in the food and support services sector, with many competitors willing to underbid or accept lower profit margins[78]. - The company may face challenges in retaining clients and renewing contracts on favorable terms due to increased competition and economic pressures[74]. Operational Challenges - Economic downturns and external factors such as inflation and supply chain disruptions have adversely affected demand for the company's services[69]. - The company has experienced increased operating costs due to rising food prices, wages, and other labor-related expenses, impacting profitability[79]. - The company faces challenges in sourcing raw materials and finished products due to global supply chain disruptions, which may lead to delivery delays and increased costs[86]. - Natural disasters and extreme weather events have previously resulted in business disruptions and may continue to impact revenue[71]. Regulatory and Compliance Issues - Aramark's operations are subject to various federal, state, and local regulations, including environmental, labor, and food safety laws, which may impact operational costs[57]. - The company is subject to risks related to compliance with various international regulations, including anti-corruption laws and labor laws[82]. - The company is subject to numerous complex laws and regulations related to food safety, which could result in significant liability and reputational harm[98]. - Compliance with employment laws and regulations is increasingly challenging, potentially impacting the company's ability to attract and retain talent[90]. Debt and Financial Obligations - As of October 3, 2025, the company's outstanding indebtedness was $5,405.9 million, with additional availability of $1,161.7 million under revolving credit facilities and $625.0 million under the Receivables Facility[116]. - The company is highly leveraged, which could limit its ability to react to economic changes and expose it to interest rate risks[116]. - The variable rate indebtedness may significantly increase debt service obligations if interest rates rise, negatively impacting net income and operating cash flows[118]. - The company currently believes it has adequate cash flows to service its indebtedness, but rising interest rates could impact its ability to maintain sufficient cash flows for debt service obligations[120]. Cybersecurity and Data Protection - The company maintains a global cybersecurity program to manage evolving cyber risks, although it has experienced cyber-based attacks without material adverse effects to date[109]. - The company has implemented a layered cybersecurity program to protect sensitive data, which includes ongoing risk assessments and compliance with industry standards[136]. - The cybersecurity team conducts regular assessments and has engaged third-party firms to enhance monitoring and incident response capabilities[143]. - The Audit Committee oversees cybersecurity programs and receives regular updates on risks and mitigation strategies from the Chief Information Security Officer (CISO)[145].

Financial Performance - Net income for the three months ended October 24, 2025, was $1,381 million, an increase of 8.1% compared to $1,278 million for the same period in 2024[12] - Comprehensive income attributable to Medtronic for the six months ended October 24, 2025, was $2,423 million, up from $2,381 million in the prior year, reflecting a growth of 1.8%[12] - For the three months ended October 24, 2025, total net sales were $8,961 million, an increase of 6.6% compared to $8,403 million for the same period in 2024[29] - Total net sales for the six months ended October 24, 2025, reached $17,539 million, up 7.5% from $16,318 million in the prior year[29] - Segment operating profit for the three months ended October 24, 2025, was $2,201 million, compared to $2,065 million for the same period last year, reflecting an increase of 6.6%[119][120] - The reportable segment operating profit for the six months ended October 24, 2025, was $4,253 million, compared to $4,015 million for the same period last year, marking an increase of 5.9%[123][124] Assets and Liabilities - Total current assets as of October 24, 2025, were $23,996 million, slightly up from $23,814 million as of April 25, 2025[14] - Total liabilities decreased to $42,489 million from $43,424 million, a reduction of 2.2%[14] - Total assets as of October 24, 2025, were $91,346 million, slightly down from $91,680 million as of April 25, 2025[127] - The company’s retained earnings increased to $32,070 million as of October 24, 2025, from $31,476 million as of April 25, 2025[14] - The total shareholders' equity as of October 24, 2025, was $48,652 million, up from $48,024 million as of April 25, 2025[14] Cash Flow and Operating Activities - Net cash provided by operating activities for the six months ended October 24, 2025, was $2,013 million, compared to $1,944 million for the same period in 2024, representing a growth of 3.5%[17] - Cash and cash equivalents decreased to $1,282 million from $2,218 million, indicating a reduction of 42.2%[14] - The company experienced a net cash provided by operating activities of $2,013 million for the six months ended October 24, 2025, compared to $1,944 million for the same period in 2024[17] Debt and Financing - Long-term debt increased to $27,680 million from $25,642 million, reflecting an increase of 7.9%[14] - The Company has $1.4 billion of commercial paper outstanding as of October 24, 2025, with a weighted average interest rate of 4.36%[49] - The Company maintains a $3.5 billion unsecured revolving credit facility, with no amounts outstanding as of October 24, 2025[50] - Total long-term debt amounts to $27.68 billion as of October 24, 2025, compared to $25.64 billion as of April 25, 2025[53] Revenue Segments - The Cardiovascular segment reported net sales of $3,436 million for the three months ended October 24, 2025, up 10.8% from $3,102 million in the prior year[29] - Neuroscience segment net sales reached $2,562 million for the three months ended October 24, 2025, compared to $2,451 million for the same period in 2024, reflecting a growth of 4.5%[29] - The Diabetes segment generated $757 million in net sales for the three months ended October 24, 2025, a 10.3% increase from $686 million in the same period last year[29] - Cardiac Rhythm & Heart Failure segment reported sales of $3,538 million for the six months ended October 24, 2025, a 13.6% increase from $3,114 million in the same period last year[29] Expenses - Selling, general, and administrative expenses for the three months ended October 24, 2025, were $2,923 million, compared to $2,729 million for the same period last year, representing an increase of 7.1%[119][120] - Research and development expenses for the three months ended October 24, 2025, totaled $754 million, up from $693 million in the same period last year, indicating an increase of 8.8%[119][120] - The cost of products sold for the three months ended October 24, 2025, was $3,053 million, compared to $2,896 million for the same period last year, reflecting an increase of 5.4%[119][120] Taxation - The effective tax rate for the three months ended October 24, 2025, was 13.5%, down from 18.0% for the same period in 2024, primarily due to a tax benefit recognized related to uncertain tax positions[83] - The gross unrecognized tax benefits remained at $2.9 billion as of October 24, 2025, with a potential impact of approximately $2.7 billion on the effective tax rate if recognized[84] Stock-Based Compensation - The company reported a stock-based compensation expense of $268 million for the six months ended October 24, 2025, compared to $242 million in the same period last year, an increase of 10.7%[17] - Total stock-based compensation expense for the three months ended October 24, 2025, was $182 million, compared to $159 million for the same period in 2024, reflecting an increase of 14.5%[88] Investments and Acquisitions - The acquisition date fair value of net assets acquired during fiscal year 2025 was $128 million, including $159 million of assets and $31 million of liabilities[35] - The Company completed the sale of half of its Renal Care Solutions business to DaVita, retaining a 50% non-controlling equity interest in Mozarc valued at $307 million[46] - The Company recognized a loss of $90 million on the Mozarc investment during the six months ended October 24, 2025, primarily due to historical financial results and future cash flow projections[47] Litigation and Compliance - The Company is involved in lawsuits filed on behalf of approximately 10,000 individual plaintiffs related to hernia mesh products, with 7,400 cases pending in Massachusetts state court[97] - The Company has ongoing interactions with governmental agencies regarding anti-corruption compliance, with potential fines and penalties if non-compliance is determined[103] Other Comprehensive Income - The accumulated other comprehensive loss (AOCI) as of October 24, 2025, was $4.275 billion, slightly improved from $4.284 billion as of April 25, 2025[90] - The Company recognized $40 million in after-tax unrealized gains related to net investment hedges during the three months ended October 24, 2025[64]

Financial Performance - Fiscal 2025 net revenue was $55.3 billion, an increase of 3.2% year-over-year[5] - Fiscal 2025 GAAP diluted net EPS was $2.65, down 5.7% from the prior year[5] - Fourth quarter net revenue reached $14.6 billion, up 4.2% year-over-year[5] - Free cash flow for fiscal 2025 was $2.9 billion, a decrease of 12% from the previous year[5] - Total net revenue for the three months ended October 31, 2025, was $14,639 million, an increase from $13,932 million in the previous quarter and $14,055 million in the same quarter last year[30] - Net earnings for the three months ended October 31, 2025, were $795 million, compared to $763 million in the previous quarter and $906 million in the same quarter last year[30] - The gross profit for the twelve months ended October 31, 2025, was $11,392 million, a decrease from $11,818 million for the twelve months ended October 31, 2024[32] - GAAP net earnings for the twelve months ended October 31, 2025, were $2,529 million, down from $2,775 million for the same period in 2024, representing a decrease of 8.9%[36] - Non-GAAP net earnings for the twelve months ended October 31, 2025, were $2,972 million, compared to $3,388 million in 2024, reflecting a decline of 12.3%[36] - Total net revenue for the twelve months ended October 31, 2025, was $55.295 billion, representing a 3% increase from $53.559 billion in the previous year[48] Segment Performance - Personal Systems segment net revenue was $10.4 billion in Q4, up 8% year-over-year[16] - Printing segment net revenue was $4.3 billion in Q4, down 4% year-over-year[16] - Personal Systems segment revenue for the three months ended October 31, 2025, was $10,353 million, an increase of 8% compared to $9,591 million in the same period last year[45] - Personal Systems segment revenue increased by 6% year-over-year, reaching $38.532 billion, while Supplies segment revenue decreased by 3% to $10.916 billion[48] - Corporate Investments segment reported a net revenue of $62 million, significantly up from $25 million in the previous year[48] Cost Management and Restructuring - HP returned $1.9 billion to shareholders in fiscal 2025 through dividends and share repurchases[5] - The company announced a cost-saving initiative expected to yield approximately $1 billion by the end of fiscal 2028[20] - HP plans to reduce global headcount by approximately 4,000-6,000 employees as part of its restructuring efforts[20] - The company expects to achieve structural cost savings through operational efficiency and digital transformation, with gross reductions in costs anticipated from restructuring plans[26] - The operating margin for GAAP was 5.7% for the twelve months ended October 31, 2025, down from 7.1% in 2024[36] - Total operating expenses for the three months ended October 31, 2025, were $2,003 million, down from $2,135 million in the previous quarter and slightly up from $2,010 million in the same quarter last year[30] Future Outlook - For fiscal 2026, HP estimates GAAP diluted net EPS to be in the range of $2.47 to $2.77[18] - HP's fiscal 2023 plan includes investments to drive growth and improve product mix, while the fiscal 2026 plan focuses on customer satisfaction and product innovation through artificial intelligence[26] - Key Growth Areas identified by the company include Hybrid Systems, Advanced Compute Solutions, AI PCs, Workforce Solutions, and Consumer Subscriptions[62][65] - The company plans to continue focusing on market expansion and new product development in its identified growth areas[62] Financial Metrics and Adjustments - The diluted net earnings per share for the three months ended October 31, 2025, were $0.84, compared to $0.80 in the previous quarter and $0.93 in the same quarter last year[30] - Non-GAAP diluted net earnings per share for the twelve months ended October 31, 2025, was $3.12, down from $3.43 in the previous year[56] - The total segment operating margin for the twelve months ended October 31, 2025, was 9.1%, a decrease of 1.0 percentage points from 10.1% in the previous year[51] - Items like amortization of intangible assets are excluded from non-GAAP operating margin and net earnings, potentially misrepresenting economic effects[69] - Restructuring charges and acquisition costs are also excluded from non-GAAP measures, which can significantly impact GAAP earnings[69] - HP emphasizes the importance of GAAP results while using non-GAAP financial measures as supplemental information[67] - Non-GAAP financial measures provide investors with insights into HP's operational performance and financial condition[68] - HP's gross cash may not fully represent liquidity due to limitations in liquidating certain investments[69]

Store Operations - As of November 1, 2025, the company operates 1,211 stores across 46 states, Washington D.C., and Puerto Rico, having opened 129 new stores during the nine-month period[101] - The company plans to average about 100 net new store openings per year, targeting a total of 500 new stores from Fiscal 2024 through Fiscal 2028[106] - As of November 1, 2025, the company opened 129 new stores, bringing the total store count to 1,211[184] Financial Performance - Net income for the three months ended November 1, 2025, was $104.8 million, up from $90.6 million for the same period in 2024, representing a 15.0% increase[114] - For the nine months ended November 1, 2025, net income increased to $299.8 million from $242.9 million in the prior year, reflecting a 23.4% growth[114] - Adjusted Net Income for the three months ended November 1, 2025, rose to $107.5 million, an increase of $7.6 million compared to the same period last year[121] - Net income for Q3 Fiscal 2025 was $104.8 million, compared to $90.6 million in Q3 Fiscal 2024, primarily due to higher sales and increased gross margin rate[152] - Net sales increased by $562.4 million, or 7.7%, to $7,907.1 million for the nine-month period ended November 1, 2025, driven by 108 net new stores and a 2% increase in comparable store sales[153] Profitability Metrics - Adjusted EBIT increased by $14.6 million to $155.9 million for the three months ended November 1, 2025, and by $67.2 million to $453.1 million for the nine months ended November 1, 2025, compared to the prior year[126] - Adjusted EBITDA rose by $26.4 million to $255.2 million for the three months ended November 1, 2025, and by $97.0 million to $739.0 million for the nine months ended November 1, 2025, driven by higher sales and increased gross margin[126] - Comparable store sales increased by 1% for the three months ended November 1, 2025, and remained stable at 2% for the nine months ended[130] - Gross margin as a percentage of net sales improved to 44.2% during the three months ended November 1, 2025, compared to 43.9% for the same period in 2024[132] Inventory and Cash Flow - Inventory increased to $1,658.4 million as of November 1, 2025, from $1,440.7 million a year earlier, primarily due to an increase in reserve inventory and the opening of 108 new stores[134] - Cash and cash equivalents decreased by $410.6 million during the nine months ended November 1, 2025, compared to a decrease of $67.6 million during the same period in 2024[137] Expenses and Costs - Selling, general and administrative expenses as a percentage of net sales decreased to 35.0% during the three months ended November 1, 2025, from 35.4% in the prior year[142] - Cost of sales as a percentage of net sales decreased to 55.8% during the three months ended November 1, 2025, compared to 56.1% in the same period of 2024[141] - The company incurred $10.9 million in pre-opening costs related to leases acquired through bankruptcy proceedings during the third quarter of Fiscal 2025[143] - Depreciation and amortization expense increased to $99.3 million in Q3 Fiscal 2025 from $87.5 million in Q3 Fiscal 2024, driven by new and non-comparable stores[144] - Impairment charges on long-lived assets were $3.8 million in Q3 Fiscal 2025, up from $3.0 million in Q3 Fiscal 2024, primarily related to one store expected to sell below net carrying value[145] Debt and Financing - The company's total debt obligations include $1,723.3 million under the Term Loan Facility and $297.1 million of 2027 Convertible Notes as of November 1, 2025[185] - The average borrowings during the nine-month period ended November 1, 2025, amounted to $26.9 million at an average interest rate of 5.5%[191] - The company has $947.9 million available under the ABL Line of Credit as of November 1, 2025[191] - The 2027 Convertible Notes bear an interest rate of 1.25% per year and will mature on December 15, 2027[195] - The company entered into a $200.0 million interest rate swap agreement with a fixed interest rate of 3.76% during the second quarter of Fiscal 2025[199] - The company refinanced $933.0 million principal amount of Term B-6 Loans with Term B-7 Loans totaling $1,250.0 million[187] - The company has interest rate swaps hedging $1,100.0 million of variable rate exposure under its Term Loan Facility[200] Risks and Challenges - The company anticipates that ongoing economic uncertainties, including inflation and consumer spending habits, may impact revenues and income[105] - The company faces various risks including general economic conditions, competitive factors, and seasonal fluctuations that could impact net sales and operating income[205] - The company acknowledges potential disruptions in its distribution network and the need to protect information systems against cyber-related attacks[205] - The company emphasizes the importance of adapting to changing consumer preferences and demand to sustain growth plans[205] - The company is subject to various regulatory requirements and must comply with increasingly rigorous privacy and data security regulations[205] - The company notes that past financial performance should not be relied upon as an indication of future performance due to unpredictable factors[206] - The company has not reported any material changes to its market risk disclosures since the last fiscal report[208] - Recent accounting pronouncements have been discussed in the condensed consolidated financial statements, indicating ongoing compliance efforts[207]

Financial Performance - Total net revenue for Q3 FY2026 increased 7% to $791 million from $738.5 million in the same prior-year quarter, with a 5% increase in constant currency[8]. - GAAP net earnings for Q3 FY2026 were $25.6 million, compared to a GAAP net loss of $23.4 million for the same prior-year quarter[5]. - Adjusted net earnings for Q3 FY2026 were $19.0 million, an 8% increase from $17.7 million for the same prior-year quarter, with adjusted diluted EPS increasing 3% to $0.35[7]. - For the nine months ended November 1, 2025, total net revenue increased 7% to $2.21 billion from $2.06 billion in the same prior-year period[16]. - Net revenue for the nine months ended November 1, 2025, was $2.21 billion, up 7.2% from $2.06 billion in the prior year[38]. - Total net revenue for the three months ended November 1, 2025, was $791,427, a 7% increase from $738,518 in the same period last year[47]. Margins and Expenses - GAAP operating margin for Q3 FY2026 decreased to 2.9%, down from 5.7% in the same prior-year quarter, primarily due to higher expenses[9]. - Adjusted operating margin for the nine months ended November 1, 2025 decreased to 1.8%, down from 3.5% in the same prior-year period[20]. - Selling, general and administrative expenses increased to $904.15 million, representing 40.8% of net revenue for the nine months ended November 1, 2025[38]. - Total selling, general and administrative expenses for the three months ended November 1, 2025, were $309,026, an increase of 10.6% from $279,389 in the same period last year[42]. - Corporate overhead increased by 39% to $(50,946) for the three months ended November 1, 2025[47]. Acquisitions and Transactions - The proposed take-private transaction with Authentic Brands Group involves Authentic acquiring 51% of the company's intellectual property, with shareholders receiving $16.75 per share in cash[2]. - The proposed transaction is expected to close in Q4 FY2026, pending regulatory approvals[3]. - The Company completed the acquisition of rag & bone on April 2, 2024, acquiring all operating assets and assuming related liabilities, with a joint venture for intellectual property[24]. - The company incurred $5,607 in proposed transaction costs for the three months ended Nov 1, 2025, compared to no costs in the same period last year[42]. - The company has incurred transaction costs related to the acquisition of rag & bone, which are excluded from adjusted results[60]. Cash Flow and Assets - Free cash flows are calculated as cash flows from operating activities minus purchases of property and equipment, providing insight into cash generation for discretionary items[30]. - Cash and cash equivalents at the end of the period were $155,056, compared to $142,322 at the end of the previous year[53]. - The total assets of the company as of November 1, 2025, amounted to $3,006,496, up from $2,794,661 a year earlier[51]. - Free cash flow for the nine months ended November 1, 2025, was $(103,308), an improvement from $(130,391) in the previous year[55]. Store Operations - As of November 1, 2025, the Company operated 1,058 retail stores directly and an additional 507 stores through partners and distributors across approximately 100 countries[31]. - As of November 1, 2025, the total number of stores operated by the company is 1,565, with 1,058 directly operated and 507 partner-operated stores[57]. - The Americas region has a total of 430 stores, with 414 directly operated and 16 partner-operated[57]. - In Europe and the Middle East, there are 781 total stores, with 587 directly operated and 194 partner-operated[57]. - The Asia and Pacific region has 354 total stores, with 57 directly operated and 297 partner-operated[57]. - The company is undergoing restructuring, including planned exits of certain retail stores in North America and Greater China[60]. Risks and Forward-Looking Statements - Forward-looking statements regarding the Proposed Transaction highlight potential risks, including regulatory approvals and business relationship impacts[32][33]. - The Company is subject to various risks, including changes in tax policy, economic conditions, and cybersecurity threats, which may affect future performance[34]. Earnings and Tax Rates - The effective income tax rate for the three months ended November 1, 2025, was 23.4%, compared to an effective tax rate of (128.9%) in the same period last year[38]. - Adjusted effective income tax rate for the nine months ended November 1, 2025, was 49.3%, compared to 35.7% in the prior year[42]. Other Financial Metrics - Other income for Q3 FY2026 was $21.2 million, compared to other expense of $45.8 million for the same prior-year quarter, primarily due to a net unrealized gain of $17.9 million[13]. - Product sales for the three months ended November 1, 2025, reached $760.32 million, a 7.8% increase from $705.51 million in the same period last year[38]. - Gross profit margin decreased to 41.7% for the nine months ended November 1, 2025, compared to 43.1% in the same period last year[38]. - Earnings from operations decreased by 45% to $23,183 compared to $42,276 in the prior year[47]. - The Americas Wholesale segment experienced a significant growth of 28% in net revenue, reaching $126,147[47]. - The Americas Retail segment reported a 2% decrease in net revenue, totaling $170,037[47].

Financial Performance - Net sales for the three months ended October 31, 2025, were $2,330.1 million, a 3% increase from $2,271.2 million in 2024[117] - Net income for the three months ended October 31, 2025, was $241.3 million, compared to a net loss of $24.5 million in 2024[117] - Adjusted earnings per share for the six months ended October 31, 2025, was $4.00, down from $5.19 in the same period of 2024[173] - The company reported a net income of $241.3 million for the three months ended October 31, 2025, compared to a net loss of $24.5 million in the same period of 2024[173] Cost and Profitability - Gross profit decreased by $16.2 million, or 2%, in the second quarter of 2026, primarily due to higher commodity costs and unfavorable volume/mix[124] - Adjusted gross profit decreased by $89.8 million, or 10%, compared to the prior year second quarter[126] - Operating income increased by $248.8 million, or 147%, in the second quarter of 2026, driven by lapping the $260.8 million pre-tax loss on the Voortman business disposal in the prior year[125] Taxation - The effective income tax rate for the three months ended October 31, 2025, was 24.2%, compared to 136.7% in 2024[131] - The company anticipates a full-year effective income tax rate for 2026 to be approximately 24.2%[131] Sales Performance by Segment - U.S. Retail Coffee segment net sales increased by $144.9 million in the second quarter of 2026, driven by a 27% increase in net price realization[140] - U.S. Retail Frozen Handheld and Spreads segment net sales decreased by $24.1 million in the second quarter of 2026, with volume/mix decreasing net sales by 8 percentage points[142] - U.S. Retail Pet Foods segment net sales decreased by $32.2 million in the second quarter of 2026, with volume/mix decreasing net sales by 8 percentage points[144] - Sweet Baked Snacks segment net sales decreased by $59.4 million in the second quarter of 2026, with a 3% decrease excluding the impact of divestitures[146] - International and Away From Home segment net sales increased by $29.7 million in the second quarter of 2026, with a 10% increase excluding unfavorable foreign currency exchange[148] Cash and Debt Management - Total cash and cash equivalents decreased to $62.8 million at October 31, 2025, compared to $69.9 million at April 30, 2025[150] - As of October 31, 2025, total debt was $7.788 billion, an increase from $7.678 billion as of April 30, 2025[161] - The company has a $2.0 billion unsecured revolving credit facility maturing in March 2030, and as of October 31, 2025, had $748.5 million in short-term borrowings outstanding[161] - Cash used for financing activities in the first six months of 2026 was $231.2 million for dividend payments, compared to $226.5 million in the same period of 2025[154] - Dividend declared per share increased to $2.20 in the first six months of 2026 from $2.16 in the same period of 2025[163] Legal and Regulatory Matters - The company is currently involved in various legal proceedings, including class action lawsuits related to false advertising claims, but does not expect a material adverse effect on its financial position[157] Economic and Market Risks - The company continues to face input cost inflation and anticipates price increases across its business due to broader inflationary pressures[114] - A hypothetical 100 basis-point decrease in interest rates would increase the fair value of the company's long-term debt by $556.1 million as of October 31, 2025[178] - Revenues from customers outside the U.S. represented 4 percent of net sales during the six months ended October 31, 2025, indicating exposure to foreign currency fluctuations[184] - The company does not qualify commodity derivatives for hedge accounting treatment, resulting in immediate recognition of gains and losses in cost of products sold[179] - A hypothetical 10 percent change in market prices related to commodities could result in a potential loss (gain) of fair value, with estimated highs and lows of $113.5 million and $(30.0) million respectively[181] - The foreign currency balance sheet exposures as of October 31, 2025, are not expected to significantly impact future earnings or cash flows[182] - The company utilizes foreign currency derivatives to manage exchange rate fluctuations, with contracts generally having maturities of less than one year[183] Integration and Restructuring Costs - Total divestiture costs related to the Sahale Snacks and Canada condiment businesses amounted to $6.4 million, with $4.3 million in employee-related costs and $2.1 million in other transition and termination costs[132] - The company anticipates incurring approximately $12.0 million in costs to address distribution inefficiencies, with total cumulative costs recognized to date at $8.4 million[133] - Integration costs from the acquisition of Hostess Brands are expected to total approximately $190.0 million, with cumulative costs recognized so far at $186.0 million[134] - The company plans to incur approximately $75.0 million in restructuring costs related to the closure of the Indianapolis manufacturing facility, with cumulative costs recognized at $47.9 million[135] Operational Risks - The company faces risks related to the integration of Hostess Brands' operations, which may affect financial forecasts and market price of common shares[188] - The company is exposed to supply chain risks, including cost inflation in raw materials and labor, which could impact operational efficiency[188] - The company anticipates challenges in achieving cost savings related to restructuring and cost management programs within expected time frames[188] - The company has a concentration risk with key customers and suppliers, which may affect its ability to maintain essential business relationships[188]