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Item 3 — Quantitative and Qualitative Disclosures About Market Risk
Sanmina Corporation · 10-Q · Q3 FY2026 · Period ended Jun 27, 2026
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Except as described below with respect to interest rate risk, there were no material changes in our primary risk exposures or management of market risks from those disclosed in our Annual Report on Form 10-K for the fiscal year ended September 27, 2025.
Our exposure to interest rate risk increased during the nine months ended June 27, 2026 in connection with the financing of the ZT Acquisition. As of June 27, 2026, we had $2.2 billion of borrowings outstanding under the New Credit Facility, which bear interest at variable rates based on SOFR or a base rate, plus an applicable margin. To partially mitigate this exposure, we have entered into interest rate swap agreements, designated as cash flow hedges, with an aggregate notional amount of $1.45 billion as of June 27, 2026, which effectively convert a portion of our variable rate obligations to fixed rate obligations at an aggregate effective interest rate of approximately 4.9%. A hypothetical 10 percent change in interest rates would not have a significant impact on our results of operations. See Note 4, “Financial Instruments” and Note 5, “Debt” of the notes to the Condensed Consolidated Financial Statements contained in this report for details.
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