We are exposed to market risks that arise during the normal course of business from changes in interest rates and foreign currency exchange rates. Interest Rates. We currently have variable rate debt outstanding under the Term Loan and the Revolving Credit Facility. We regularly evaluate the impact of interest rate changes on our net income and cash flow and take action to limit our exposure when appropriate. Foreign Currency Exchange Rates. Our operations in the following countries utilize the following currencies as their functional currency: ● Australia – Australian dollar ● India – rupee ● Canada – Canadian dollar ● Mexico – peso ● China – Chinese yuan ● Poland – zloty ● France and Germany – euro ● Switzerland – Swiss franc ● England – British pound As a result, we are exposed to risk associated with fluctuating currency exchange rates between the U.S. dollar and these currencies. Foreign currency transaction gains and losses are included in earnings. Approximately 10% of our net sales were impacted by foreign currency fluctuations for the three-month period ended June 27, 2026 compared to 11% for the three-month period ended June 28, 2025. For those countries outside the U.S. where we have sales, a strengthening in the U.S. dollar or devaluation in the local currency would reduce the value of our local inventory as presented in our consolidated financial statements. In addition, a stronger U.S. dollar or a weaker local currency would result in reduced net sales, operating profit and shareholders’ equity due to the impact of foreign exchange translation on our consolidated financial statements. Fluctuations in foreign currency exchange rates may make our products more expensive for others to purchase or increase our operating costs, affecting our competitiveness and our profitability. Changes in exchange rates between the U.S. dollar and other currencies and volatile economic, political and market conditions in emerging market countries have in the past adversely affected our financial performance and may in the future adversely affect the value of our assets located outside the United States, our gross profit and our results of operations.