Item 3. Quantitative and Qualitative Disclosures About Market Risk

Other than changes to our interest rate risk as a result of the disposal of our variable-rate debt, there have been no material changes to our market risk exposure during the nine months ended April 3, 2026 from those disclosed in Part II, Item 7A, Quantitative and Qualitative Disclosures About Market Risk in our 2025 Annual Report on Form 10-K.

Foreign Currency Risk

We performed sensitivity analyses as of April 3, 2026, using a modeling technique that measures the change in the fair values arising from a hypothetical 10% adverse movement in the levels of foreign currency exchange rates relative to the U.S. dollar, with all other variables held constant. The analyses cover all of our foreign currency derivative contracts used to offset the underlying exposures. The foreign currency exchange rates used in performing the sensitivity analyses were based on market rates in effect at April 3, 2026. The sensitivity analyses indicated that a hypothetical 10% adverse movement in foreign currency exchange rates relative to the U.S. dollar would result in a foreign exchange fair value loss of $72 million at April 3, 2026.

Interest Rate Risk

While we have historically held a balance of fixed and variable rate debt, as of April 3, 2026, our only outstanding debt was $1.60 billion principal amount of our fixed-rate 3.00% convertible notes due 2028.