Cash and cash equivalents are deposited with major banks throughout the world. We invest excess cash and cash equivalents in short-term securities, primarily money market funds, which carry a fixed rate of return. We have not incurred any credit risk losses related to deposits of our cash and cash equivalents. Foreign Currency Risk. Because of the global nature of our business, we are exposed to market risk associated with changes in foreign currency exchange rates. We have historically attempted to limit exposure to foreign currency fluctuations through provisions requiring the client to pay us in currencies corresponding to the currency in which cost is incurred. In addition to this natural hedge, we may use foreign exchange forward contracts and options to hedge material exposures when forecasted foreign currency revenues and costs are not denominated in the same currency and when efficient markets exist. These derivatives are generally designated as cash flow hedges and are carried at fair value. We use derivative instruments, such as foreign exchange forward contracts, to hedge foreign currency risk related to non-functional currency assets and liabilities on our condensed consolidated balance sheets and to mitigate certain operational exposures. We do not enter into derivative financial instruments for trading purposes or make speculative investments in foreign currencies. Each period, these hedges are marked to market through earnings and the change in their fair value is largely offset by remeasurement of the underlying assets and liabilities. We recorded a net loss of $5 million during the six months ended July 4, 2025 in other non-operating expense on our condensed consolidated statements of operations. The fair value of these derivatives was not material to our condensed consolidated balance sheets as of July 3, 2026. Information relating to fair value measurements is described in Note 15. "Fair Value of Financial Instruments and Risk Management" to our condensed consolidated financial statements, which is incorporated by reference into this Item 3. Interest Rate Risk. We are exposed to market risk for changes in interest rates for the Revolver and term loan borrowings under the Senior Credit Facility. We had $375 million of borrowings issued under the Revolver as of July 3, 2026. Additionally, we had $1,945 million outstanding under the term loan portions of the Senior Credit Facility as of July 3, 2026. Borrowings under the Senior Credit Facility bear interest at variable rates as described in Note 8. "Debt and Other Credit Facilities" to our condensed consolidated financial statements. 45 We use interest rate swaps to reduce interest rate risk and to manage net interest expense by converting our variable rate debt under our Senior Credit Facility into fixed-rate debt. Our portfolio of interest rate swaps consists of the following: Dollars in millions Notional Amount at July 3, 2026* Pay Fixed Rate (Weighted Average) Receive Variable Rate Settlement and Termination March 2020 Interest Rate Swaps $ 400 0.89 % Term SOFR Monthly through January 2027 September 2022 Interest Rate Swaps $ 350 3.43 % Term SOFR Monthly through January 2027 March 2023 Interest Rate Swaps $ 205 3.61 % Term SOFR Monthly through January 2027 March 2023 Amortizing Interest Rate Swaps £ 101 3.81 % Term SONIA Monthly through November 2026 September 2024 Interest Rate Swaps $ 200 3.27 % Term SOFR Monthly through August 2027 April 2025 Interest Rate Swaps $ 270 3.39 % Term SOFR Monthly through August 2027 April 2025 Forward Interest Rate Swaps $ 150 3.38 % Term SOFR Monthly from August 2027 through December 2030 *Includes the April 2025 Forward Interest Rate Swaps that become effective August 14, 2027. The swap agreements were designated as cash flow hedges at inception in accordance with ASC Topic 815, Derivative and Hedging. The fair value of the interest rate swaps at July 3, 2026 was a $14 million asset, of which $11 million is included in other current assets and $3 million is included in other assets. Information relating to our portfolio of interest rate swaps is described in Note 15. "Fair Value of Financial Instruments and Risk Management" to our condensed consolidated financial statements, which is incorporated by reference into this Item 3. At July 3, 2026, we had fixed rate debt aggregating $1,811 million and variable rate debt aggregating $759 million, after taking into account the effects of the interest rate swaps that were effective at July 3, 2026. Our weighted average interest rate net of the impact from our swap agreements for the six months ended July 3, 2026 was 4.93%. If interest rates were to increase by 50 basis points, pre-tax interest expense would increase by approximately $6 million in the next twelve months net of the impact from our swap agreements, based on outstanding borrowings as of July 3, 2026. 46