SUPPLY CHAIN FINANCE PROGRAM

6 Months Ended

Jul. 31, 2025

SUPPLY CHAIN FINANCE PROGRAM

SUPPLY CHAIN FINANCE PROGRAM

NOTE 8 – SUPPLY CHAIN FINANCE PROGRAM

The Company has a voluntary supply chain finance program (the “SCF Program”) administered through a third-party platform. The Company’s payment obligations confirmed under the SCF Program are due to a financial intermediary that will remit payment to the Company’s suppliers. The SCF Program also provides participating suppliers with the option to sell their receivables due from the Company, at their sole discretion, to a third-party financial institution at terms negotiated between the supplier and the financial institution. The Company is not a party to the agreements between the suppliers and the financial institution. The Company’s payment obligations to its suppliers, including the amounts due and payment terms, which generally do not exceed 75 days, are not impacted by a suppliers’ participation in the SCF Program. There are no assets pledged as security or other forms of guarantees provided specifically under the SCF Program, however the obligations under the SCF Program benefit from guarantees and collateral provided under our revolving credit facility to which the financial institutions involved in the SCF Program are a party to.

The Company’s outstanding payment obligations under its SCF Program are recorded within accounts payable in the Company’s condensed consolidated balance sheets and the corresponding payments are reflected in cash flows from operating activities within the Company’s condensed consolidated statements of cash flows. As of July 31, 2025, the Company had $205.3 million of payment obligations outstanding under the SCF Program. During the three and six months ended July 31, 2025, the Company settled obligations of $89.8 million and $131.6 million through the SCF Program, respectively.

The following supply chain finance program activity is presented for the six-month period indicated below:

	July 31, 2025
	(In thousands)
Confirmed obligations outstanding at beginning of period	$	—
Invoices confirmed during the period		336,967
Confirmed invoices paid during the period		(131,627)
Confirmed obligations outstanding at end of period	$	205,340