All of our market sensitive instruments are entered into for purposes other than trading. Our market risks consist primarily of interest rate risk and fuel price risk. Interest Rate Risk We are exposed to interest rate risk related to changes in interest rates for borrowings under our ABL Facility. Although we hedge a portion of our interest rate risk through interest rate swaps, any borrowings under our ABL Facility in excess of the notional amount of the swaps will be subject to variable interest rates. As of June 27, 2026, our subsidiary, Performance Food Group, Inc., had two interest rate swaps with a combined notional value of $150.0 million that were designated as cash flow hedges of interest rate risk. See Note 9. Derivatives and Hedging Activities within the Notes to Consolidated Financial Statements included in Item 8 for further discussion of these interest rate swaps. The changes in the fair value of derivatives designated and that qualify as cash flow hedges are recorded in accumulated other comprehensive income and are subsequently reclassified into earnings in the period that the hedged forecasted transaction impacts earnings. Amounts reported in accumulated other comprehensive income on the consolidated statements of comprehensive income related to derivatives will be reclassified to interest expense on the consolidated statements of operations as hedged interest payments are made on our debt. During the next twelve months, we estimate that gains of approximately $0.9 million will be reclassified as a decrease to interest expense. Based on the fair values of these interest rate swaps as of June 27, 2026, a hypothetical 100 bps decrease in SOFR would result in a loss of $2.0 million and a hypothetical 100 bps increase in SOFR would result in a gain of $2.0 million within accumulated other comprehensive income. Assuming an average daily balance on our ABL Facility of approximately $2.0 billion, approximately $150.0 million of our outstanding long-term debt is fixed through interest rate swap agreements over the next twelve months and approximately $1.8 billion 33 represents variable-rate debt. A hypothetical 100 bps increase in SOFR on our variable-rate debt would lead to an increase of approximately $18.2 million in annual interest expense. Fuel Price Risk We seek to minimize the effect of higher diesel fuel costs both by reducing fuel usage and by taking action to offset higher fuel prices. We reduce usage by designing more efficient truck routes and by increasing miles per gallon through on-board computers that monitor and adjust idling time and maximum speeds and through other technologies. We seek to manage fuel prices through diesel fuel surcharges to our customers (which are generally recognized on a one-month lag behind changes in fuel prices) and through the use of costless collars or swaps. As of June 27, 2026, we had collars in place for approximately 5% of the gallons we expect to use over the twelve months following June 27, 2026. Any changes in fair value are recorded in the period of the change as gains or losses on fuel hedging instruments within other, net on the consolidated statements of operations. A hypothetical 10% increase or decrease in expected diesel fuel prices would result in an immaterial gain or loss for these derivative instruments. As a result of the significant increase in fuel prices during fiscal year 2026, the Company recognized a gain of $9.5 million related to changes in the fair value of fuel collars. Subsequent to June 27, 2026, the Company entered into a swap for an additional 15% of the gallons we expect to use over the twelve months following June 27, 2026. Our fuel purchases are subject to fluctuations in market prices. Using published market price projections for diesel and estimates of fuel consumption expected over the next twelve months, a 10% hypothetical increase in diesel prices from the market price would result in a potential increase of approximately $43.9 million in annual fuel costs within operating expenses, which would be partially offset by fuel surcharges passed through to our customers, generally on a one-month lag, and gains on our fuel collar and swap derivative instruments. 34