Group 1: Financial Statements Overview - Financial statements are essential tools for evaluating a company's performance and financial health [1] - The income statement, also known as the Profit & Loss (P&L) statement, details a company's revenues, expenses, and net income over a specific period [2] - The balance sheet provides a snapshot of a company's financial position, showing assets, liabilities, and equity [3] - The cash flow statement tracks the movement of cash in and out of a company, categorized into operating, investing, and financing activities [4] Group 2: Key Components of Financial Statements - Revenue represents the total income generated from the company's core business activities [6] - Expenses encompass all costs incurred in running the business, including wages, rent, and utilities [6] - Net income indicates the profit or loss after all expenses have been deducted from revenue [6] - Assets include everything the company owns, such as cash, buildings, and inventory [6] - Liabilities reflect what the company owes, including loans and unpaid bills [6] - Equity represents the residual interest in the assets of the company after deducting liabilities [6] Group 3: Cash Flow Statement Breakdown - Operating activities involve cash generated from the company's core business operations [6] - Investing activities account for cash used in significant purchases like equipment or property [6] - Financing activities relate to cash transactions for raising or returning funds, including borrowing and repaying debt [6]

Non-GAAP Measures Definition - Non-GAAP financial measures exclude or include amounts not normally included or excluded in US GAAP measures[3] - These measures provide analysts, investors, and management with useful information regarding underlying operating performance[4, 8] Operating Income - Non-GAAP operating income for the three months ended September 30, 2025, was $530.6 million, representing 9.2% of net sales[10] - Non-GAAP operating income for the nine months ended September 30, 2025, reached $1,494.3 million, or 8.8% of net sales[10] - Reported operating income for the three months ended September 30, 2025, was $443.3 million, 7.7% of net sales, compared to $481.6 million, 8.7% of net sales in 2024[10] - Reported operating income for the nine months ended September 30, 2025, was $1,224.9 million, 7.2% of net sales, compared to $1,242.7 million, 7.9% of net sales in 2024[10] Net Income - Non-GAAP net income for the three months ended September 30, 2025, was $357.2 million with an effective tax rate of 25.1%[12] - Non-GAAP net income for the nine months ended September 30, 2025, was $987.4 million with an effective tax rate of 25.6%[14] - US GAAP net income for the three months ended September 30, 2025, was $291.0 million with an effective tax rate of 25.3%[12] - US GAAP net income for the nine months ended September 30, 2025, was $787.1 million with an effective tax rate of 25.6%[14] Sales and Expenses - Net sales for the three months ended September 30, 2025, were $5,737.4 million, a 4.0% increase compared to 2024[17] - Net sales for the nine months ended September 30, 2025, were $16,913.1 million, a 7.0% increase compared to 2024[17] - Non-GAAP selling and administrative expenses for the three months ended September 30, 2025, were $724.9 million, an 8.7% increase[20] - Non-GAAP selling and administrative expenses for the nine months ended September 30, 2025, were $2,124.7 million, a 6.3% increase[20] Cash Flow - Free cash flow for the nine months ended September 30, 2025, was $692.2 million[22] - Adjusted free cash flow for the nine months ended September 30, 2025, was $668.0 million[22]