Risk Factors Update Summary

• Competitive pressure has resulted in material increases in our average revenue share obligations, from 14% to 15% of consolidated net revenues in fiscal year 2024.
• Climate change regulations may impose new compliance burdens and costs, including California's Climate Corporate Data Accountability Act. This could significantly increase operational expenses.
• We may face significant legal and regulatory risks associated with the integration of artificial intelligence technologies, which could increase operational costs and liabilities.
• The SEC's new climate change disclosure rules could raise compliance costs and complexity, impacting financial performance.
• The company expects to target a cumulative total of approximately 75% of gross administrative fees associated with GPO member agreements for renewal by fiscal year 2025.
• The American Privacy Rights Act may impose new compliance obligations regarding sensitive data, affecting operational costs and regulatory risks.
• New gross receipts taxes could materially affect profitability, especially if imposed on previously exempt services, leading to significant tax liabilities.
• We have experienced impairment charges of $140.1 million in fiscal year 2024, which could adversely affect our financial condition and results of operations.
• The share repurchase authorization of up to $1.0 billion may influence stock price volatility and liquidity, impacting shareholder value.
• Geopolitical tensions, including conflicts in Ukraine and the Middle East, may disrupt operations and increase transportation costs, impacting our financial performance.