Item 3. Quantitative and Qualitative Disclosures about Market Risk

Our market risks consist of interest rate risk, foreign currency exchange rate risk, fuel price risk and investment risk.

For a discussion on our exposure to market risk, see Part II, Item 7A, “Quantitative and Qualitative Disclosures about Market

Risks” in our fiscal 2025 Form 10-K. There have been no significant changes to our market risks since June 28, 2025, except

for the addition of interest rate risk as a result of the Proposed Transaction. See Note 15 “Subsequent Events” for more

information on the terms of the Proposed Transaction. We have executed cash-settled deal contingent rate lock transactions to

mitigate interest rate risk on $6.3 billion of future permanent debt that could potentially be issued to finance the purchase of

JRD. As these interest rate lock transactions are contingent upon whether the transaction is successfully consummated, we have

not elected to apply hedge accounting at this time and any unrealized gains or losses will be recognized in Other income and

expense within our statement of consolidated results of operations.