Risk Factors Update Summary

• Geopolitical conflicts, including the Russia-Ukraine war, have caused increased costs and supply shortages. This may lead to significant operational disruptions and increased expenses.
• As of May 26, 2024, total debt is approximately $8.44 billion, including $7.02 billion in senior notes. This high debt level may limit cash flow for operations and investments.
• Increased cyber incidents may impact the availability and cost of cyber insurance globally, affecting coverage. This change might result in higher insurance costs and reduced coverage options.
• Supply chain disruptions have negatively impacted operations, resulting in $4.4 million in charges due to a vendor's cybersecurity incident. Future disruptions could further harm profitability.
• The company's total remaining share repurchase authorization as of May 26, 2024, was $916.6 million. This change indicates potential future stock repurchases impacting shareholder value.
• Increased competition from powerful retailers like Walmart, accounting for 28% of sales, may pressure pricing and profitability. Loss of significant customers could materially affect financial results.
• We could experience shortages of employees with specialized skills, particularly in artificial intelligence and data analytics. This change highlights potential operational challenges in a competitive labor market.
• Changes in consumer preferences, including health concerns over packaging materials, could impact product demand. Failure to adapt may adversely affect sales and financial performance.
• Goodwill was $10 billion and other intangibles were $2.71 billion as of May 2024. Changes in these values could negatively impact our net worth due to competitive pressures.
• We are subject to various privacy and data protection laws, including the European Union General Data Protection Regulation. This change emphasizes compliance risks in multiple jurisdictions.