{"url_path":"/sec/rbc/10-k/2026/item-8","section_key":"item-8","section_title":"Item 8 FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA**","topic":"sec","document":{"doc_type":"10-K","doc_date":"2026-05-15","source_url":"https://www.sec.gov/Archives/edgar/data/1324948/0001213900-26-057626-index.html","accession_number":"0001213900-26-057626","cik":"0001324948","ticker":"RBC","issuer_name":"RBC Bearings INC","edgar_url":"https://www.sec.gov/Archives/edgar/data/1324948/0001213900-26-057626-index.html","primary_entity_key":"0001324948","primary_entity_name":"RBC Bearings INC"},"word_count":18050,"has_tables":true,"body_markdown":"** **\n\n**ITEM\n8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA**\n\n** **\n\n**Report\nof Independent Registered Public Accounting Firm**\n\n \n\nTo\nthe Stockholders and the Board of Directors of RBC Bearings Incorporated\n\n** **\n\n**Opinion\non the Financial Statements**\n\n \n\nWe\nhave audited the accompanying consolidated balance sheets of RBC Bearings Incorporated (the Company) as of March 28, 2026 and March 29,\n2025, the related consolidated statements of operations, comprehensive income, stockholders’ equity and cash flows for each of\nthe three years in the period ended March 28, 2026, and the related notes (collectively referred to as the “consolidated financial\nstatements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position\nof the Company at March 28, 2026 and March 29, 2025, and the results of its operations and its cash flows for each of the three years\nin the period ended March 28, 2026, in conformity with U.S. generally accepted accounting principles.\n\n \n\nWe\nalso have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s\ninternal control over financial reporting as of March 28, 2026, based on criteria established in Internal Control—Integrated\nFramework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated May 15,\n2026 expressed an unqualified opinion thereon.\n\n** **\n\n**Basis\nfor Opinion**\n\n \n\nThese\nfinancial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s\nfinancial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent\nwith respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities\nand Exchange Commission and the PCAOB.\n\n \n\nWe\nconducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain\nreasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits\nincluded performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud,\nand performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts\nand disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates\nmade by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a\nreasonable basis for our opinion.\n\n** **\n\n**Critical\nAudit Matters**\n\n \n\nThe\ncritical audit matters communicated below are matters arising from the current period audit of the financial\nstatements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures\nthat are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication\nof critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are\nnot, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts\nor disclosures to which they relate.\n\n \n\n32\n\n \n\n \n\n \n \n**Business\nCombination**\n\n \n \n \n\n*Description\nof the Matter*\n \n\nAs\ndescribed in Notes 2 and 21 to the consolidated financial statements, the Company completed the acquisition of VACCO Industries in July 2025 for consideration of $276.7 million. This acquisition has been accounted for as a business combination.\n\n \n\nAuditing\nthe Company’s accounting for the acquisition was complex due to the judgmental nature and effect of\nthe discount rate used in the determination of the estimated fair value of the customer relationship intangible assets.\n\n \n \n \n\n*How\nWe Addressed the Matter in Our Audit*\n \n\nWe\nobtained an understanding, evaluated the design and tested the operating effectiveness of the controls over the Company’s\naccounting for business combinations, including the control over management’s development and review of the discount rate.\n\n \n\nTo\ntest the estimated fair value of the customer relationship intangible assets, we performed audit procedures,\nwith the assistance of internal valuation specialists, that included, among others, assessing methodologies and testing the discount\nrate. We performed a sensitivity analysis of the discount rate to evaluate the changes in the fair value of the customer relationship\nintangible assets that would result from changes in the assumption. We also evaluated the reasonableness of the selected guideline\ncompanies used in the determination of the discount rate.\n\n \n\n \n \n**Revenue\nRecognition**\n\n \n \n \n\n*Description of the Matter*\n \n\nThe\nCompany’s revenue was $1,870.9 million for the year ended March 28, 2026. As explained in Notes 2 and 3 to the consolidated\nfinancial statements, revenue is recognized in an amount that reflects the consideration the Company expects to be entitled to in\nexchange for transferred goods or services. The majority of revenue is recognized at a point in time.\n\n \n\nThe principal consideration for determining our procedures related\nto revenue recognition is a critical audit matter is the extensive audit effort in planning and performing procedures related to the Company’s\nrevenue due to the disaggregated nature of the Company’s operations.\n\n \n \n \n\n*How We Addressed the Matter\nin Our Audit*\n \n\nWe\nobtained an understanding, evaluated the design and tested the operating effectiveness of controls over the revenue process. For\nexample, we tested management’s controls relating to the timing of revenue recognition.\n\n \n\nWe\napplied auditor judgment to determine the nature and extent of procedures to be performed over revenue recognition, including determining\nwhere we would perform procedures. Our procedures included, among others, (i) assessing the completeness, accuracy, and existence\nof revenue recognized by testing the correlation of revenue to accounts receivable and cash, (ii) testing revenue recognized for\na sample of revenue transactions during the year as well as before and after period end by obtaining and inspecting source documents,\nsuch as purchase orders, invoices and proof of shipment or delivery and (iii) confirming a sample of outstanding customer invoice\nbalances, and for confirmations not returned, obtaining and inspecting source documents, including invoices, proof of shipment, and\nsubsequent cash receipts, where applicable.\n\n \n\n/s/\nErnst & Young LLP\n\n \n\nWe\nhave served as the Company’s auditor since 2002.\n\n \n\nHartford,\nConnecticut\n\nMay\n15, 2026\n\n \n\n33\n\n \n\n \n\n**RBC\nBearings Incorporated**\n\n**Consolidated\nBalance Sheets**\n\n**(amounts\nin millions, except share and per share data)**\n\n \n\n  \nMarch\n28,\n\n2026  \nMarch\n29,\n\n2025 \n\nASSETS \n   \n  \n\nCurrent assets: \n   \n  \n\nCash \n$57.3  \n$36.8 \n\nAccounts receivable, net of allowance for credit losses of $6.3 at March 28, 2026 and $5.4 at March 29, 2025 \n 340.6  \n 307.6 \n\nInventory, net \n 762.8  \n 654.5 \n\nPrepaid expenses\nand other current assets \n 29.1  \n 28.4 \n\nTotal current assets \n 1,189.8  \n 1,027.3 \n\nProperty, plant and\nequipment, net \n 419.0  \n 359.0 \n\nOperating lease assets \n 68.7  \n 58.6 \n\nGoodwill \n 2,003.4  \n 1,872.2 \n\nIntangible assets, net \n 1,378.2  \n 1,325.1 \n\nOther noncurrent\nassets \n 63.6  \n 43.0 \n\nTotal\nassets \n$5,122.7  \n$4,685.2 \n\nLIABILITIES AND STOCKHOLDERS’\nEQUITY \n    \n   \n\nCurrent liabilities: \n    \n   \n\nAccounts payable \n$147.0  \n$138.4 \n\nAccrued expenses\nand other current liabilities \n 214.7  \n 166.0 \n\nCurrent operating\nlease liabilities \n 10.7  \n 9.2 \n\nCurrent\nportion of long-term debt \n 173.8  \n 1.7 \n\nTotal current liabilities \n 546.2  \n 315.3 \n\nLong-term debt, less\ncurrent portion \n 701.7  \n 918.4 \n\nNoncurrent operating\nlease liabilities \n 59.0  \n 50.3 \n\nDeferred income taxes \n 267.3  \n 257.8 \n\nOther noncurrent\nliabilities \n 187.5  \n 112.0 \n\nTotal liabilities \n 1,761.7  \n 1,653.8 \n\nCommitments and contingencies (Note 17) \n \n \n  \n \n \n \n\nStockholders’ equity: \n    \n   \n\nPreferred stock, $.01 par value per share; authorized shares: 10,000,000 as of March 28, 2026 and March 29, 2025; issued shares: 0 as of March 28, 2026 and March 29, 2025 \n —  \n — \n\nCommon stock, $.01 par value per share; authorized shares: 60,000,000 at March 28, 2026 and March 29, 2025; issued shares: 32,720,037 and 32,522,189 at March 28, 2026 and March 29, 2025, respectively \n 0.3  \n 0.3 \n\nAdditional paid-in\ncapital \n 1,735.4  \n 1,682.5 \n\nAccumulated other\ncomprehensive income/(loss) \n 2.1  \n (1.4)\n\nRetained earnings \n 1,738.2  \n 1,450.6 \n\nTreasury stock, at cost, 1,084,772 shares and 1,046,569 shares at March 28, 2026 and March 29, 2025, respectively \n (115.0) \n (100.6)\n\nTotal\nstockholders’ equity \n 3,361.0  \n 3,031.4 \n\nTotal\nliabilities and stockholders’ equity \n$5,122.7  \n$4,685.2 \n\n \n\nSee\naccompanying notes.\n\n \n\n34\n\n \n\n \n\n**RBC\nBearings Incorporated**\n\n**Consolidated\nStatements of Operations**\n\n**(amounts\nin millions, except share and per share data)**\n\n \n\n  \nFiscal\nYear Ended \n\n  \nMarch\n28, 2026  \nMarch\n29, 2025  \nMarch\n30, 2024 \n\nNet sales \n$1,870.9  \n$1,636.3  \n$1,560.3 \n\nCost of sales \n 1,040.7  \n 910.2  \n 889.8 \n\nGross margin \n 830.2  \n 726.1  \n 670.5 \n\nOperating expenses: \n    \n    \n   \n\nSelling, general and\nadministrative \n 316.1  \n 279.3  \n 253.5 \n\nOther,\nnet \n 93.1  \n 76.9  \n 74.8 \n\nTotal\noperating expenses \n 409.2  \n 356.2  \n 328.3 \n\nOperating income \n 421.0  \n 369.9  \n 342.2 \n\nInterest expense, net \n 49.8  \n 59.8  \n 78.7 \n\nOther non-operating\nexpense/(income) \n 1.9  \n (1.8) \n 1.7 \n\nIncome before income\ntaxes \n 369.3  \n 311.9  \n 261.8 \n\nProvision for income\ntaxes \n 81.7  \n 65.7  \n 51.9 \n\nNet income \n$287.6  \n$246.2  \n$209.9 \n\nPreferred stock dividends \n —  \n 12.4  \n 23.0 \n\nNet\nincome attributable to common stockholders \n$287.6  \n$233.8  \n$186.9 \n\n  \n    \n    \n   \n\nNet income per common share attributable\nto common stockholders: \n    \n    \n   \n\nBasic \n$9.14  \n$7.76  \n$6.47 \n\nDiluted \n$9.09  \n$7.70  \n$6.41 \n\nWeighted average common shares: \n    \n    \n   \n\nBasic \n 31,481,360  \n 30,136,501  \n 28,917,008 \n\nDiluted \n 31,634,888  \n 30,354,470  \n 29,189,056 \n\n \n\nSee\naccompanying notes.\n\n \n\n35\n\n \n\n \n\n**RBC\nBearings Incorporated**\n\n**Consolidated\nStatements of Comprehensive Income**\n\n**(amounts\nin millions)**\n\n \n\n  \nFiscal Year Ended \n\n  \nMarch 28, 2026  \nMarch 29, 2025  \nMarch 30, 2024 \n\nNet income \n$287.6  \n$246.2  \n$209.9 \n\nPension and postretirement liability adjustments(1) \n (1.3) \n 2.4  \n 0.4 \n\nChange in fair value of Interest Rate Swap(2) \n 0.2  \n (1.4) \n 3.4 \n\nChange in fair value of Cross Currency Swap(3) \n (5.8) \n (0.2) \n — \n\nForeign currency\ntranslation adjustments \n 10.4  \n (2.9) \n 1.0 \n\nTotal comprehensive\nincome \n$291.1  \n$244.1  \n$214.7 \n\n** **\n\n(1)These adjustments were net of tax benefit of $0.4, tax expense of $0.6 and tax expense of $0.4 in fiscal 2026, 2025 and 2024, respectively.\n\n \n\n(2)Net of tax expense of $0.0, tax benefit of $0.4 and tax expense of $1.0 in fiscal 2026, 2025 and 2024, respectively.\n\n \n\n(3)Net of tax benefit of $1.7 and net of tax benefit of $0.0 for fiscal 2026 and 2025, respectively.\n\n** **\n\nSee\naccompanying notes.\n\n \n\n36\n\n \n\n \n\n**RBC\nBearings Incorporated**\n\n**Consolidated\nStatements of Stockholders’ Equity**\n\n**(amounts\nin millions, except share data)**\n\n \n\n  \nCommon\nStock  \nPreferred\nStock  \nAdditional\n\nPaid-in  \nAccumulated\n\nOther\nComprehensive  \nRetained  \nTreasury\nStock  \nTotal\n\nStockholders’ \n\n  \nShares  \nAmount  \nShares  \nAmount  \nCapital  \nIncome/(Loss)  \nEarnings  \nShares  \nAmount  \nEquity \n\nBalance\nat April 1, 2023 \n 29,989,948  \n$0.3  \n 4,600,000  \n$0.0  \n$1,589.9  \n$(4.1) \n$1,029.9  \n (966,398) \n$(80.1) \n$2,535.9 \n\nNet\nincome \n —  \n —  \n —  \n —  \n —  \n —  \n 209.9  \n —  \n —  \n 209.9 \n\nStock-based\ncompensation \n —  \n —  \n —  \n —  \n 14.9  \n —  \n —  \n —  \n —  \n 14.9 \n\nPreferred\nstock dividends \n —  \n —  \n —  \n —  \n —  \n —  \n (23.0) \n —  \n —  \n (23.0)\n\nTax\nwithholding for common stock issued under equity incentive plans \n —  \n —  \n —  \n —  \n —  \n —  \n —  \n (48,655) \n (11.0) \n (11.0)\n\nExercise\nof equity awards \n 168,321  \n 0.0  \n —  \n —  \n 20.4  \n —  \n —  \n —  \n —  \n 20.4 \n\nChange in pension and post-retirement plan benefit adjustments, net of tax expense of $0.4 \n —  \n —  \n —  \n —  \n —  \n 0.4  \n —  \n —  \n —  \n 0.4 \n\nIssuance\nof restricted stock, net of forfeitures \n 69,175  \n —  \n —  \n —  \n —  \n —  \n —  \n —  \n —  \n — \n\nChange in fair value of Interest Rate Swap, net of tax expense of $1.0 \n —  \n —  \n —  \n —  \n —  \n 3.4  \n —  \n —  \n —  \n 3.4 \n\nCurrency\ntranslation adjustments \n —  \n —  \n —  \n —  \n —  \n 1.0  \n —  \n —  \n —  \n 1.0 \n\nBalance\nat March 30, 2024 \n 30,227,444  \n$0.3  \n 4,600,000  \n$0.0  \n$1,625.2  \n$0.7  \n$1,216.8  \n (1,015,053) \n$(91.1) \n$2,751.9 \n\nNet\nincome \n —  \n —  \n —  \n —  \n —  \n —  \n 246.2  \n —  \n —  \n 246.2 \n\nStock-based\ncompensation \n —  \n —  \n —  \n —  \n 22.0  \n —  \n —  \n —  \n —  \n 22.0 \n\nPreferred\nstock dividends \n —  \n —  \n —  \n —  \n —  \n —  \n (12.4) \n —  \n —  \n (12.4)\n\nTax\nwithholding for common stock issued under equity incentive plans \n —  \n —  \n —  \n —  \n —  \n —  \n —  \n (31,516) \n (9.5) \n (9.5)\n\nConversion\nof mandatory convertible preferred stock to common stock \n 2,029,955  \n —  \n (4,600,000) \n (0.0) \n —  \n —  \n —  \n —  \n —  \n (0.0)\n\nExercise\nof equity awards \n 223,693  \n 0.0  \n —  \n —  \n 34.9  \n —  \n —  \n —  \n —  \n 34.9 \n\nChange in pension and post-retirement plan benefit adjustments, net of tax expense of $0.6 \n —  \n —  \n —  \n —  \n —  \n 2.4  \n —  \n —  \n —  \n 2.4 \n\nIssuance\nof restricted stock, net of forfeitures \n 41,097  \n —  \n —  \n —  \n 0.4  \n —  \n —  \n —  \n —  \n 0.4 \n\nChange in fair value of Interest Rate Swap, net of tax benefit of $0.4 \n —  \n —  \n —  \n —  \n —  \n (1.4) \n —  \n —  \n —  \n (1.4)\n\nChange in fair value of Cross Currency Swap, net of tax benefit of $0.0 \n —  \n —  \n —  \n —  \n —  \n (0.2) \n —  \n —  \n —  \n (0.2)\n\nCurrency\ntranslation adjustments \n —  \n —  \n —  \n —  \n —  \n (2.9) \n —  \n —  \n —  \n (2.9)\n\nBalance\nat March 29, 2025 \n 32,522,189  \n$0.3  \n —  \n —  \n$1,682.5  \n$(1.4) \n$1,450.6  \n (1,046,569) \n$(100.6) \n$3,031.4 \n\nNet\nincome \n —  \n —  \n —  \n —  \n —  \n —  \n 287.6  \n —  \n —  \n 287.6 \n\nStock-based\ncompensation \n —  \n —  \n —  \n —  \n 23.7  \n —  \n —  \n —  \n —  \n 23.7 \n\nTax\nwithholding for common stock issued under equity incentive plans \n —  \n —  \n —  \n —  \n —  \n —  \n —  \n (38,203) \n (14.4) \n (14.4)\n\nExercise\nof equity awards \n 143,994  \n 0.0  \n —  \n —  \n 24.2  \n —  \n —  \n —  \n —  \n 24.2 \n\nChange in pension and post-retirement plan benefit adjustments, net of tax benefit of $0.4 \n —  \n —  \n —  \n —  \n —  \n (1.3) \n —  \n —  \n —  \n (1.3)\n\nIssuance\nof restricted stock, net of forfeitures \n 20,515  \n —  \n —  \n —  \n —  \n —  \n —  \n —  \n —  \n — \n\nIssuance\nof awards previously classified as liability awards \n \n33,339\n  \n —  \n —  \n —  \n 5.0  \n —  \n —  \n —  \n —  \n 5.0 \n\nChange in fair value of Interest Rate Swap, net of tax expense of $0.0 \n —  \n —  \n —  \n —  \n —  \n 0.2  \n —  \n —  \n —  \n 0.2 \n\nChange in fair value of Cross Currency Swap, net of tax benefit of $1.7 \n —  \n —  \n —  \n —  \n —  \n (5.8) \n —  \n —  \n —  \n (5.8)\n\nCurrency\ntranslation adjustments \n —  \n —  \n —  \n —  \n —  \n 10.4  \n —  \n —  \n —  \n 10.4 \n\nBalance\nat March 28, 2026 \n 32,720,037  \n$0.3  \n —  \n —  \n$1,735.4  \n$2.1  \n$1,738.2  \n (1,084,772) \n$(115.0) \n$3,361.0 \n\n \n\nSee\naccompanying notes.\n\n \n\n37\n\n \n\n \n\n**RBC\nBearings Incorporated**\n\n**Consolidated\nStatements of Cash Flows**\n\n**(amounts\nin millions)**\n\n \n\n  \nFiscal\nYear Ended \n\n  \nMarch 28,\n2026  \nMarch 29,\n2025  \nMarch 30,\n2024 \n\nCash flows from operating\nactivities: \n   \n   \n  \n\nNet income \n$287.6  \n$246.2  \n$209.9 \n\nAdjustments to reconcile net income to net\ncash provided by operating activities: \n    \n    \n   \n\nDepreciation and\namortization \n 128.8  \n 120.0  \n 119.3 \n\nDeferred income taxes \n 10.9  \n (26.8) \n (12.3)\n\nAmortization of deferred\nfinancing costs \n 3.0  \n 2.4  \n 3.0 \n\nStock-based compensation \n 34.5  \n 28.4  \n 17.4 \n\nNoncash operating\nlease expense \n 7.2  \n 6.3  \n 6.8 \n\nLoss on disposition\nof assets \n 0.6  \n 0.4  \n 0.6 \n\nRestructuring and\nother noncash charges \n 3.0  \n 0.5  \n 2.6 \n\nChanges in operating\nassets and liabilities, net of acquisitions: \n    \n    \n   \n\nAccounts receivable \n (19.4) \n (53.3) \n (13.4)\n\nInventory \n (43.7) \n (32.3) \n (31.6)\n\nPrepaid expenses and\nother current assets \n 10.5  \n (3.9) \n (2.4)\n\nOther noncurrent assets \n (16.7) \n 0.5  \n (3.0)\n\nAccounts payable \n 1.4  \n 22.2  \n (30.7)\n\nAccrued expenses and\nother current liabilities \n (16.4) \n (2.3) \n 9.0 \n\nOther\nnoncurrent liabilities \n 24.4 \n (14.7) \n (0.5)\n\nNet cash provided\nby operating activities \n 415.7  \n 293.6  \n 274.7 \n\nCash flows from investing\nactivities: \n    \n    \n   \n\nCapital expenditures \n (73.1) \n (49.8) \n (33.2)\n\nProceeds from sale of assets \n 0.1  \n 0.0  \n 0.3 \n\nAcquisition of businesses \n (276.7) \n —  \n (19.3)\n\nNet cash used in\ninvesting activities \n (349.7) \n (49.8) \n (52.2)\n\nCash flows from financing\nactivities: \n    \n    \n   \n\nProceeds received from revolving credit\nfacilities \n 200.0  \n 67.0  \n 20.3 \n\nRepayments of revolving credit facilities \n (5.0) \n (82.4) \n — \n\nRepayments of term loans \n (240.0) \n (262.0) \n (225.0)\n\nRepayments of notes payable \n (1.7) \n (1.6) \n (1.6)\n\nFinance fees paid in connection with credit\nfacilities \n (1.8) \n —  \n — \n\nProceeds from mortgage \n —  \n 4.5  \n — \n\nPrincipal payments on finance lease obligations \n (4.6) \n (4.1) \n (3.6)\n\nPreferred stock dividends paid \n —  \n (17.2) \n (23.0)\n\nExercise of equity awards \n 24.2  \n 34.9  \n 20.4 \n\nTax withholding for\ncommon stock issued under equity incentive plans \n (14.4) \n (9.5) \n (11.0)\n\nNet cash used in\nfinancing activities \n (43.3) \n (270.4) \n (223.5)\n\n  \n    \n    \n   \n\nEffect of exchange\nrate changes on cash \n (2.2) \n (0.1) \n (0.9)\n\nCash: \n    \n    \n   \n\nIncrease/(decrease) during the year \n 20.5  \n (26.7) \n (1.9)\n\nCash, at beginning\nof year \n 36.8  \n 63.5  \n 65.4 \n\nCash, at end of year \n$57.3  \n$36.8  \n$63.5 \n\n  \n    \n    \n   \n\nSupplemental disclosures\nof cash flow information: \n    \n    \n   \n\nCash paid for: \n    \n    \n   \n\nIncome taxes \n$71.6  \n$101.3  \n$56.4 \n\nInterest \n 48.4  \n 55.4  \n 75.7 \n\n \n\nSee\naccompanying notes.\n\n \n\n38\n\n \n\n \n\n**RBC\nBearings Incorporated**\n\n**Notes\nto Consolidated Financial Statements**\n\n**(amounts\nin millions, except share and per share data)**\n\n \n\n**1.\nOrganization and Business**\n\n** **\n\nRBC\nBearings Incorporated, together with its subsidiaries, is an international manufacturer and marketer of highly engineered precision bearings,\ncomponents and essential systems for the Industrial and Aerospace & Defense markets, which are integral to the manufacture and operation\nof most machines, aircraft and mechanical systems, to reduce wear to moving parts, facilitate proper power transmission, reduce damage\nand energy loss caused by friction and control pressure and flow. The terms “we,” “us,” “our,” “RBC”\nand the “Company” mean RBC Bearings Incorporated and its subsidiaries, unless the context indicates another meaning. While\nwe manufacture products in all major categories, we focus primarily on highly technical or regulated bearing products and engineered\nproducts for specialized markets that require sophisticated design, testing and manufacturing capabilities. We believe our unique expertise\nhas enabled us to garner leading positions in many of the product markets in which we primarily compete. Over the past 21 years, we have\nbroadened our end markets, products, customer base and geographic reach. We currently have 65 facilities in 11 countries, of which 44\nare manufacturing facilities.\n\n \n\nThe\nCompany operates in two reportable business segments— Industrial and Aerospace & Defense —in which it manufactures highly engineered precision bearings, components and essential systems. The Company sells to a wide\nvariety of original equipment manufacturers (“OEMs”) and distributors who are widely dispersed geographically. No one customer\naccounted for more than 13% of the Company’s net sales in fiscal 2026, 18% of net sales in fiscal 2025 and 17% of net sales in\nfiscal 2024. The Company’s segments are further discussed in Note 19.\n\n \n\n**2.\nSummary of Significant Accounting Policies**\n\n \n\n**Basis\nof Presentation**\n\n** **\n\nThe\nconsolidated financial statements include the accounts of RBC Bearings Incorporated and its wholly-owned subsidiaries. All intercompany\nbalances and transactions have been eliminated in consolidation.\n\n \n\nThe\nCompany has a fiscal year consisting of 52 or 53 weeks, ending on the Saturday closest to March 31. Based on this policy, fiscal\nyear 2026 contained 52 weeks, fiscal year 2025 contained 52 weeks and fiscal year 2024 contained 52 weeks.\n\n \n\nEnd\nmarket and channel sales within our segments are based on internal definitions and metrics considered by management and are periodically\nreviewed and updated prospectively. Certain amounts reported in previous years have been reclassified to conform to the fiscal year 2026\npresentation.\n\n \n\n**Use\nof Estimates**\n\n** **\n\nThe\npreparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates\nand assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, at the\ndate of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could\ndiffer from those estimates. Estimates are used for, but not limited to, the accounting for the allowance for credit losses, valuation\nof inventories, goodwill and intangible assets, depreciation and amortization, income taxes and tax reserves, purchase price allocation\nfor acquired assets and liabilities, and the valuation of options.\n\n** **\n\n**Revenue\nRecognition**\n\n \n\nA\ncontract with a customer exists when there is commitment and approval from both parties involved, the rights of the parties are identified,\npayment terms are defined, the contract has commercial substance, and collectability of consideration is probable. The Company has determined\nthat the contract with the customer is established when the customer purchase order is accepted or acknowledged. LTAs are used by the\nCompany and certain of its customers to reduce their supply uncertainty for a period of time, typically multiple years. While these LTAs\ndefine commercial terms including pricing, termination rights and other contractual requirements, they do not represent the contract\nwith the customer for revenue recognition purposes.\n\n \n\nWhen\nthe Company accepts or acknowledges a customer purchase order, the type of good or service is defined on a line-by-line basis. The majority\nof the Company’s revenue relates to the sale of goods and contains a single performance obligation for each distinct good. The\nremainder of the Company’s revenue from customers is generated from services performed. These services include repair and refurbishment\nwork performed on customer-controlled assets as well as design and test work.\n\n \n\n39\n\n \n\n \n\nTransaction\nprice reflects the amount of consideration that the Company expects to be entitled to in exchange for transferred goods or services.\nA contract’s transaction price is allocated to each distinct performance obligation and revenue is recognized as the performance\nobligation is satisfied. The Company generally sells products and services with observable standalone selling prices.\n\n \n\nThe\nperformance obligations for the majority of RBC’s product sales are satisfied at the point in time in which the products are shipped.\nThe Company has determined that the customer obtains control upon shipment of the product based on the shipping terms (i.e. when it ships\nfrom RBC’s dock or when the product arrives at the customer’s dock) and recognizes revenue when control has transferred to\nthe customer. Once a customer has obtained control, the customer is able to direct the use of, and obtain substantially all of the remaining\nbenefits from, the asset.\n\n \n\nThe\nCompany has determined performance obligations are satisfied over time for customer contracts where RBC provides services to customers\nand also for a limited number of product sales. RBC has determined revenue recognition over time is appropriate for our service revenue\ncontracts as they create or enhance an asset that the customer controls throughout the duration of the contract. Revenue recognition\nover time is appropriate for customer contracts with product sales in which the product sold has no alternative use to RBC without significant\neconomic loss and an enforceable right to payment exists, including a normal profit margin from the customer, in the event of contract\ntermination. For both of these types of contracts, revenue is recognized over time based on the extent of progress\ntowards completion of the performance obligation. The Company utilizes the cost-to-cost measure of progress for over-time revenue recognition\ncontracts as the Company believes this measure best depicts the transfer of control to the customer, which occurs as the Company incurs\ncosts on contracts. Revenues, including profits, are recorded proportionally as costs are incurred. Costs to fulfill include labor, materials,\nsubcontractors’ costs, and other direct and indirect costs.\n\n \n\nContract\ncosts are the incremental costs of obtaining and fulfilling a contract (i.e., costs that would not have been incurred if the contract\nhad not been obtained) to provide goods and services to customers. Contract costs largely consist of design and development costs for\nmolds, dies and other tools that RBC will own and that will be used in producing the products under the supply arrangements. These contract\ncosts are amortized to expense on a systematic and rational basis over a period consistent with the transfer to the customer of the goods\nor services to which the asset relates and are recorded in cost of sales. Costs incurred to obtain a contract are primarily related to\nsales commissions and are expensed as incurred. These costs are included within selling, general and administrative costs on the consolidated\nstatements of operations.\n\n \n\nIn\ncertain contracts, the Company facilitates shipping and handling activities after control has transferred to the customer. The Company\nhas elected to record all shipping and handling activities as costs to fulfill a contract. In situations where the shipping and handling\ncosts have not been incurred at the time revenue is recognized, the estimated shipping and handling costs are accrued.\n\n \n\n**Cash**\n\n** **\n\nThe\nCompany maintains its cash accounts with various global institutions and has not experienced any losses in such accounts. The Company\nperforms periodic evaluations of the relative credit standing of its financial institutions and monitors the amount of exposure.\n\n** **\n\n**Accounts\nReceivable, Net and Concentration of Credit Risk**\n\n** **\n\nAccounts\nreceivable include amounts billed and currently due from customers. The amounts due are stated at their estimated net realizable value.\nThe Company maintains an allowance for credit losses for estimated losses resulting from the inability of its customers to make required\npayments. The Company uses an expected credit loss model to estimate the credit losses expected over the life of an exposure (or pool\nof exposures). The estimate of expected credit losses considers historical information, current information and reasonable and supportable\nforecasts, including estimates of prepayments. Financial instruments with similar risk characteristics are grouped together when estimating\nexpected credit losses. The Company will write off accounts receivable after reasonable collection efforts have been made and the accounts\nare deemed uncollectible.\n\n \n\nThe\nCompany sells to a large number of OEMs and distributors who service the aftermarket. The Company’s credit risk associated\nwith accounts receivable is minimized due to its customer base and wide geographic dispersion. The Company performs ongoing credit evaluations\nof its customers’ financial condition and generally does not require collateral or charge interest on outstanding amounts. The\nCompany had concentrations of credit risk with no individual customer greater than 10% as of March 28, 2026 or March 29, 2025 with the\nexception of Motion Industries and Boeing. Approximately 23% and 22% of accounts receivable at March 28, 2026 and March 29, 2025, respectively,\nwere attributable to Motion Industries and Boeing.\n\n \n\n40\n\n \n\n** **\n\n**Inventory**\n\n** **\n\nInventory\nis stated at the lower of cost or net realizable value. Cost is determined by the first-in, first-out method. The Company accounts for\ninventory under a full absorption method, and records adjustments to the value of inventory based upon past sales history and forecasted\nplans to sell our inventories. The physical condition, including age and quality, of the inventories is also considered in establishing\nits valuation. These adjustments are estimates, which could vary significantly, either favorably or unfavorably, from actual requirements\nif future economic conditions, customer inventory levels or competitive conditions differ from our expectations.\n\n** **\n\n**Contract\nAssets**\n\n** **\n\nPursuant\nto the over-time revenue recognition model, revenue may be recognized prior to the customer being invoiced. An unbilled amount is recorded\nto reflect revenue that is recognized when (1) the cost-to-cost method is applied and (2) such revenue exceeds the amount invoiced to\nthe customer. Such amounts are recoverable from our customers based upon various measures of performance, including achievement of certain\nmilestones, shipment of specified units, or completion of a contract. Contract assets are included within prepaid expenses and other\ncurrent assets or other noncurrent assets on the consolidated balance sheets.\n\n \n\n**Property,\nPlant and Equipment**\n\n** **\n\nProperty,\nplant and equipment are recorded at cost. Depreciation and amortization of property, plant and equipment, is recorded using the straight-line\nmethod over the estimated useful lives of the respective assets. Depreciation of assets is reported within depreciation and amortization.\nExpenditures for normal maintenance and repairs are charged to expense as incurred.\n\n \n\nThe\nestimated useful lives of the Company’s property, plant and equipment are as follows:\n\n \n\nBuildings and improvements  20-30 years\n\nMachinery and equipment  3-15 years\n\nLeasehold improvements  Shorter of the term of lease or estimated useful life\n\n** **\n\n**Cloud\nComputing Arrangements**\n\n \n\nCloud\ncomputing arrangements are recorded in prepaids and other current assets and are amortized over the life of the service agreement, inclusive of renewal periods that are reasonably certain to be exercised. The\nrelated amortization expense is recorded within selling, general and administrative expenses on the consolidated statements of operations.\nImplementation costs associated with these cloud computing arrangements are capitalized dependent on the nature of the costs and the\nproject stage which they are incurred. Preliminary project phase costs are expensed, costs in the application development stage are capitalized\nand costs associated with the post-implementation phase are expensed as incurred.\n\n** **\n\n**Leases**\n\n** **\n\nThe\nCompany determines if an arrangement is a lease at contract inception. For leases where the Company is the lessee, it recognizes lease\nassets and related lease liabilities at the lease commencement date based on the present value of lease payments over the lease term.\nThe lease term is the noncancellable period for which a lessee has the right to use an underlying asset, including periods covered by\nan option to extend the lease if the lessee is reasonably certain to exercise that option and periods covered by an option to terminate\nthe lease if the lessee is reasonably certain not to exercise that option. For renewal options, the Company performs an assessment at\ncommencement if it is reasonably likely to exercise the option. The assessment is based on the Company’s intentions, past practices,\nestimates and factors that create an economic incentive for the Company. While some of the Company’s leases include options allowing\nearly termination of the lease, the Company historically has not terminated its lease agreements early unless there is an economic, financial\nor business reason to do so; therefore, the Company does not typically consider the termination option in its lease term at commencement.\n\n \n\nMost\nof the Company’s leases do not provide an implicit interest rate. As a result, the Company uses its incremental borrowing rate\nbased on the information available at the commencement date in determining the present value of lease payments.\n\n \n\n41\n\n \n\n \n\nSubsequent\nto the initial measurement, the lease liability continues to be measured at the present value of unpaid lease payments throughout the\nlease term. The lease liability is remeasured if the lease is modified and the modification is not accounted for as a separate contract,\nthere is a change in the assessment of the lease term, the assessment of a purchase option exercise or the amount probable of being owed\nunder a residual value guarantee, or a contingency is resolved resulting in some or all of the variable lease payments becoming fixed\npayments. Subsequent to the initial measurement, the right-of-use asset for a finance lease is equivalent to the initial measurement\nless accumulated amortization and any accumulated impairment losses. Generally, amortization of finance leases is recorded to cost of\nsales or SG&A on a straight-line basis over the lease term. Subsequent to initial measurement, the right-of-use asset for an operating\nlease is equivalent to initial measurement less accumulated amortization.\n\n** **\n\n**Goodwill\nand Indefinite-Lived Intangible Assets**\n\n \n\nGoodwill\n(representing the excess of the amount paid to acquire a company over the estimated fair value of the net assets acquired) and indefinite-lived\nintangible assets are not amortized but instead are tested for impairment annually, or when events or circumstances indicate that the\ncarrying value of such asset may not be recoverable. Separate tests are performed for goodwill and indefinite lived intangible assets.\nThe Company performs the annual impairment testing during the fourth quarter of each fiscal year. We completed a quantitative test of\nimpairment on the indefinite lived intangible assets with no impairment noted in fiscal year 2026. The determination of any goodwill\nimpairment is made at the reporting unit level. The Company determines the fair value of a reporting unit and compares it to its carrying\namount. If the carrying amount of the reporting unit exceeds its fair value, an impairment loss is recognized for the amount by which\nthe carrying amount exceeds the reporting unit’s fair value. The Company applies the income approach (discounted cash flow method)\nin testing goodwill for impairment. The key assumptions used in the discounted cash flow method used to estimate fair value are gross\nmargin, discount rate, and long-term growth rate, which is affected by expectations about future market or economic conditions. The fair\nvalue of the reporting units exceeds the carrying value by a minimum of 38.8% at each of the two reporting units. Assuming no growth\nin gross margin within the model would not result in impairment of goodwill for any of our reporting units. An increase of 1.0% in our discount rate would not result in impairment\nof goodwill for any of our reporting units. A decrease of 1.0% in our terminal growth rate would not result in impairment of goodwill\nfor any of our reporting units. Although no changes are expected,\nif the actual results of the Company are less favorable than the assumptions the Company makes regarding estimated cash flows, the Company\nmay be required to record an impairment charge in the future.\n\n \n\n**Contract\nLiabilities**\n\n** **\n\nContract\nliabilities can arise from a customer advance or deposit prior to revenue being recognized. Since the performance obligations related\nto such advances may not have been satisfied, a contract liability is established. In addition, contract liabilities can arise from our\nover-time revenue contracts when amounts invoiced to our customers exceed revenues recognized under the cost-to-cost measure of progress.\nContract liabilities are included within accrued expenses and other current liabilities or other noncurrent liabilities on the consolidated\nbalance sheets until the respective revenue is recognized. Advance payments are not considered a significant financing component as the\ntiming of the transfer of the related goods or services is at the discretion of the customer.\n\n** **\n\n**Income\nTaxes**\n\n** **\n\nThe\nCompany accounts for income taxes using the liability method, which requires it to recognize a current tax liability or asset for current\ntaxes payable or refundable and a deferred tax liability or asset for the estimated future tax effects of temporary differences between\nthe financial statement and tax reporting bases of assets and liabilities to the extent that they are realizable. Deferred tax expense\n(benefit) results from the net change in deferred tax assets and liabilities during the year. A valuation allowance is recorded to reduce\ndeferred tax assets to the amount that is more likely than not to be realized. The Company is exposed to certain tax contingencies in\nthe ordinary course of business and records those tax liabilities in accordance with the guidance for accounting for uncertain tax positions.\n\n \n\nTemporary\ndifferences relate primarily to the timing of deductions for depreciation, stock-based compensation, goodwill amortization relating to\nthe acquisition of operating divisions, amortization of intangible assets, basis differences arising from acquisition accounting, pension\nand retirement benefits, and various accrued and prepaid expenses. Deferred tax assets and liabilities are recorded at the rates expected\nto be in effect when the temporary differences are expected to reverse.\n\n** **\n\n42\n\n \n\n \n\n*Global\nMinimum Tax*\n\n \n\nIn\nOctober 2021, the OECD announced an Inclusive Framework on Base Erosion and Profit Shifting including Pillar Two Model Rules defining\nthe global minimum tax, which calls for the taxation of large multinational corporations at a minimum rate of 15%. Subsequently multiple\nsets of administrative guidance have been issued. Many non-US tax jurisdictions have either recently enacted legislation to adopt certain\ncomponents of the Pillar Two Model Rules beginning in 2024 with the adoption of additional components in later years or announced their\nplans to enact legislation in future years. The Company has performed an assessment of the potential impact to its income taxes as a\nresult of Pillar Two. Based on the results of the assessment, the Company believes that it can avail itself of the transitional safe\nharbor rules in all jurisdictions in which the Company operates. We will continue to monitor both the U.S. and international legislative\ndevelopments related to Pillar Two to assess for any potential impacts. We are continuing to evaluate the impacts of enacted legislation\nand pending legislation to enact Pillar Two Model Rules in the non-US tax jurisdictions in which we operate.\n\n** **\n\n**Net\nIncome Per Share Attributable to Common Stockholders**\n\n** **\n\nBasic\nnet income per share attributable to common stockholders is computed by dividing net income attributable to common stockholders by the\nweighted-average number of common shares outstanding.\n\n \n\nDiluted\nnet income per share attributable to common stockholders is computed by dividing net income attributable to common stockholders by the\nsum of the weighted-average number of common shares and dilutive common share equivalents then outstanding using the treasury stock method.\nCommon share equivalents consist of the incremental common shares issuable upon the exercise of stock options, the vesting of restricted\nshares, contingently issuable shares related to performance-based awards and the conversion of MCPS (*i.e.*, our outstanding preferred\nstock) to common shares. We exclude outstanding stock options, stock awards, contingently issuable shares related to performance-based\nawards and the MCPS from the calculations if the effect would be anti-dilutive.\n\n \n\nThe\nCompany issued 2,029,955 shares of common stock upon the conversion of the MCPS, in October 2024.\n\n \n\nBecause\nthe MCPS is no longer outstanding, the Company no longer pays dividends on the MCPS.\n\n \n\nFor\nthe fiscal years ended March 29, 2025 and March 30, 2024, the effect of assuming the conversion of the 4,600,000 shares of MCPS into\nshares of common stock was anti-dilutive, and therefore excluded from the calculation of diluted earnings per share attributable to common\nstockholders. Accordingly, net income was reduced by cumulative MCPS dividends, as presented in our consolidated statements of operations,\nfor purposes of calculating net income attributable to common stockholders.\n\n \n\nFor\nthe fiscal year ended March 28, 2026, 45,117 employee stock options and 8,990 restricted shares were excluded from the calculation of\ndiluted earnings per share attributable to common stockholders. For the fiscal year ended March 29, 2025, 55,449 employee stock options\nand 130 restricted shares were excluded from the calculation of diluted earnings per share attributable to common stockholders. At March\n30, 2024, 120,954 employee stock options and 250 restricted shares were excluded from the calculation of diluted earnings per share attributable\nto common stockholders. The inclusion of these employee stock options and restricted shares would have been anti-dilutive.\n\n \n\n43\n\n \n\n \n\nThe\ntable below reflects the calculation of weighted-average shares outstanding for each period presented as well as the computation of basic\nand diluted net income per share attributable to common stockholders.\n\n \n\n  \nFiscal\nYear Ended \n\n  \nMarch\n28, 2026  \nMarch\n29, 2025  \nMarch\n30, 2024 \n\nNet\nincome \n$287.6  \n$246.2  \n$209.9 \n\nPreferred\nstock dividends \n —  \n 12.4  \n 23.0 \n\nNet\nincome attributable to common stockholders \n$287.6  \n$233.8  \n$186.9 \n\nDenominator: \n    \n    \n   \n\nDenominator\nfor basic net income per share attributable to common stockholders — weighted-average shares outstanding \n 31,481,360  \n 30,136,501  \n 28,917,008 \n\nEffect\nof dilution due to contingently issuable shares related to performance-based awards \n 12,755  \n 11,564  \n — \n\nEffect\nof dilution due to employee stock awards \n 140,773  \n 206,405  \n 272,048 \n\nDenominator\nfor diluted net income per share attributable to common stockholders — weighted-average shares outstanding \n 31,634,888  \n 30,354,470  \n 29,189,056 \n\nBasic\nnet income per share attributable to common stockholders \n$9.14  \n$7.76  \n$6.47 \n\nDiluted\nnet income per share attributable to common stockholders \n$9.09  \n$7.70  \n$6.41 \n\n** **\n\n**Impairment\nof Long-Lived Assets**\n\n** **\n\nThe\nCompany assesses the net realizable value of its long-lived assets and evaluates such assets for impairment whenever indicators of impairment\nare present. For amortizable long-lived assets to be held and used, if indicators of impairment are present, management determines whether\nthe sum of the estimated undiscounted future cash flows is less than the carrying amount. The amount of asset impairment, if any, is\nbased on the excess of the carrying amount over its fair value, which is estimated based on projected discounted future operating cash\nflows using a discount rate reflecting the Company’s average cost of funds.\n\n \n\nDuring\neach of fiscal 2026, 2025 and 2024, the Company ceased use of certain assets and recorded impairment charges. In fiscal 2026 the\nCompany recorded impairment charges of $0.1 for machinery and equipment in our Industrial segment, $0.2 for machinery and equipment\nat Corporate, and $0.1 for patents and trademarks at Corporate. In fiscal 2025, the Company recorded an impairment charge of $0.5\nfor patent and trademarks at Corporate. In fiscal 2024, the Company recorded impairment charges of $0.6 for machinery and equipment\nin our Aerospace & Defense segment and $1.9 for patents and trademarks at Corporate.\n\n \n\nThese\nimpairment charges were recorded in other, net on the Company’s consolidated statements of operations.\n\n \n\nLong-lived\nassets to be disposed of by sale or other means are reported at the lower of carrying amount or fair value, less costs to sell.\n\n** **\n\n**Foreign\nCurrency Translation and Transactions**\n\n** **\n\nAssets\nand liabilities of the Company’s foreign operations are translated into U.S. dollars using the exchange rate in effect at the balance\nsheet date. Results of operations are translated using the average exchange rate prevailing throughout the period. The effects of exchange\nrate fluctuations on translating foreign currency assets and liabilities from their functional currencies to the reporting currency are\nincluded in accumulated other comprehensive income/(loss), while gains and losses resulting from foreign currency transactions are included\nin other non-operating expense (income).\n\n \n\n**Research\nand Development**\n\n \n\nCosts\nare incurred in connection with efforts aimed at discovering and implementing new knowledge that is critical to developing new products,\nprocesses or services, significantly improving existing products or services, and developing new applications for existing products and\nservices. Research and development costs for the creation of new and improved products, processes and services were approximately $34.4,\n$33.0 and $33.0, for fiscal years 2026, 2025 and 2024, respectively.\n\n \n\n44\n\n \n\n \n\n**Derivative\nInstruments**\n\n** **\n\nThe\nCompany recognizes all derivates on the Consolidated Balance Sheet at fair value. Derivative instruments that are not designated as hedges\nare adjusted to fair value through earnings. Currently the Company does not hold any instruments that are not designated as hedges. If\nthe derivative is designated and qualifies as a hedge, depending on the nature of the hedge, changes in fair value will offset the change\nin fair value of the hedged assets or liabilities through earnings or recognized in accumulated other comprehensive income/(loss). As\nof March 28, 2026, the only instrument held by the Company is the Cross Currency Swap (CCS). This instrument is designated as a net investment\nhedge on an after-tax basis. The Company previously had an interest rate swap that ended in December 2025.\n\n \n\nThe\nobjective of the Cross Currency Swap is to economically hedge the Company’s net investment in its lower-tier European subsidiary,\nSchaublin, against adverse changes in the Swiss franc/U.S. dollar exchange rate. The Cross Currency Swap is based upon a net investment\nof CHF 69.4 ($80.0 USD) notional amount with a three-year maturity date. RBC receives a fixed U.S. dollar amount on a month-to-month\nbasis based upon a fixed annual rate of 2.77% of the notional amount. At maturity, RBC will net-settle the principal of the Cross Currency\nSwap in cash with the counterparty. As the instrument is designated as a net investment hedge, the fair value of the instrument was included\nin the consolidated balance sheet within other noncurrent liabilities. Changes in the fair value are recognized through accumulated other\ncomprehensive income/(loss).\n\n \n\n**Accumulated\nOther Comprehensive Income/(Loss)**\n\n** **\n\nThe\ncomponents of comprehensive income/(loss) that relate to the Company are net income, foreign currency translation adjustments, changes\nin the fair value of derivatives and pension plan and postretirement benefits, all of which are presented in the consolidated statements\nof stockholders’ equity and comprehensive income/(loss).\n\n \n\nThe\nfollowing summarizes the activity within each component of accumulated other comprehensive income/(loss), net of taxes:\n\n \n\n  \nCurrency\n\nTranslation  \nChange\nin\nFair Value\nof Interest\nRate Swap  \nChange\nin\nFair Value of\nCross\nCurrency\nSwap  \nPension\nand\nPostretirement\nLiability  \nTotal \n\nBalance\nat March 29, 2025 \n$(6.5) \n$(0.2) \n$(0.2) \n$5.5  \n$(1.4)\n\nReclassification\nto net income \n —  \n (0.2) \n —  \n —  \n (0.2)\n\nChange\nin pension and postretirement liability \n —  \n —  \n —  \n (1.3) \n (1.3)\n\nNet\ngain on foreign currency translation \n 10.4  \n —  \n —  \n —  \n 10.4 \n\nGain\non Interest Rate Swap, net of taxes \n —  \n 0.4  \n —  \n —  \n 0.4 \n\nLoss\non Cross Currency Swap, net of taxes \n —  \n —  \n (5.8) \n —  \n (5.8)\n\nNet\ncurrent period other comprehensive income \n 10.4  \n 0.2  \n (5.8) \n (1.3) \n 3.5 \n\nBalance\nat March 28, 2026 \n$3.9  \n$0.0  \n$(6.0) \n$4.2  \n$2.1 \n\n** **\n\n45\n\n \n\n** **\n\n**Stock-Based\nCompensation**\n\n \n\nThe\nCompany recognizes stock-based compensation cost relating to all stock-based payment transactions in the financial statements based upon\nthe grant-date fair value of the instruments issued over the requisite service period. The fair value of each option grant was estimated\non the date of grant using the Black-Scholes pricing model. The Company estimates expected forfeitures at the grant date and recognizes\nstock-based compensation costs, accordingly. The Company also recognizes stock-based compensation cost relating to restricted stock awards\nthat are earned by employees prior to being granted as liability awards.\n\n \n\n**Recent\nAccounting Pronouncements**\n\n \n\nIn\nDecember 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in ASU 2023-09\naddress investor requests for more transparency about income tax information through improvements to income tax disclosures primarily\nrelated to the rate reconciliation and income taxes paid information. ASU 2023-09 is effective for annual reporting periods beginning\nafter December 15, 2024. As of March 28, 2026, the Company has updated our disclosure to comply with the updated requirements. Refer\nto “Note 15: Income Taxes” for additional information.\n\n \n\nIn\nNovember 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses (DISE). The new standard requires disclosure\nof specific types of expenses included in the expense captions presented on the face of the income statement as well as disclosures about\nselling expenses. ASU 2024-03 is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods\nbeginning after December 15, 2027. As of March 28, 2026, the Company is evaluating the impact the standard will have on its consolidated\nfinancial statements.\n\n \n\nIn\nSeptember 2025, the FASB issued ASU 2025-06, Targeted Improvements to the Accounting for Internal Use Software. The new standard amends\nthe existing standard that refers to various stages of a software development project to align better with current software development\nmethods, such as agile programming. ASU 2025-06 is effective for annual reporting periods beginning after December 15, 2027, and interim\nreporting periods within those annual reporting periods. As of March 28, 2026, the Company is evaluating the impact the standard will\nhave on its consolidated financial statements.\n\n \n\nOther\nnew pronouncements issued but not effective until after March 28, 2026 are not expected to have a material impact on our financial position,\nresults of operations or liquidity.\n\n** **\n\n**3.\nRevenue from Contracts with Customers**\n\n \n\n**Disaggregation\nof Revenue**\n\n \n\nThe\nfollowing table disaggregates total revenue by end market which is how we view our reportable segments (see Note 19):\n\n \n\n \n \nFiscal\nYear Ended\n \n\n \n \nMarch\n28,\n2026\n \n \nMarch\n29,\n2025\n \n \nMarch\n30,\n2024\n \n\nAerospace & Defense\n \n$\n788.0\n \n \n$\n592.8\n \n \n$\n519.4\n \n\nIndustrial\n \n \n1,082.9\n \n \n \n1,043.5\n \n \n \n1,040.9\n \n\n \n \n$\n1,870.9\n \n \n$\n1,636.3\n \n \n$\n1,560.3\n \n\n \n\nThe\nfollowing table disaggregates total revenue by geographic origin:\n\n* *\n\n  \nFiscal\nYear Ended \n\n  \nMarch\n28,\n\n2026  \nMarch\n29,\n\n2025  \nMarch\n30,\n\n2024 \n\nUnited States \n$1,668.1  \n$1,449.7  \n$1,375.4 \n\nInternational \n 202.8  \n 186.6  \n 184.9 \n\n  \n$1,870.9  \n$1,636.3  \n$1,560.3 \n\n \n\n46\n\n \n\n \n\nThe\nfollowing table illustrates the approximate percentage of revenue recognized for performance obligations satisfied over time versus the\namount of revenue recognized for performance obligations satisfied at a point in time:\n\n* *\n\n  \nFiscal\nYear Ended \n\n  \nMarch\n28,\n2026  \nMarch\n29,\n2025  \nMarch\n30,\n2024 \n\nPoint-in-time \n 95% \n 98% \n 98%\n\nOver time \n 5% \n 2% \n 2%\n\n  \n 100% \n 100% \n 100%\n\n* *\n\n*Remaining\nPerformance Obligations*\n\n \n\nRemaining\nperformance obligations represent the transaction price of orders meeting the definition of a contract in ASC Topic 606 for\nwhich work has not been performed or has been partially performed and excludes unexercised contract options. The duration of the majority\nof our contracts, as defined by ASC Topic 606, is less than one year. The Company has elected to apply the practical expedient, which\nallows companies to exclude remaining performance obligations with an original expected duration of one year or less. The aggregate amount\nof the transaction price allocated to remaining performance obligations for such contracts with a duration of more than one year was\napproximately $1,267.2 at March 28, 2026. The Company expects to recognize revenue on approximately 42% of the remaining performance\nobligations over the next 12 months with the remainder recognized thereafter.\n\n** **\n\n*Contract\nBalances*\n\n \n\nThe\ntiming of revenue recognition, invoicing and cash collections affect accounts receivable, unbilled receivables (contract assets) and\ncustomer advances and deposits (contract liabilities) on the consolidated balance sheets. These assets and liabilities are reported on\nthe consolidated balance sheets on an individual contract basis at the end of each reporting period.\n\n \n\n*Contract\nAssets* - Pursuant to the over-time revenue recognition model, revenue may be recognized prior to the customer being invoiced. An\nunbilled amount is recorded to reflect revenue that is recognized when (1) the cost-to-cost method is applied\nand (2) such revenue exceeds the amount invoiced to the customer. Such amounts are recoverable from our customers based upon various\nmeasures of performance, including achievement of certain milestones, shipment of specified units, or completion of a contract. Contract\nassets are included within prepaid expenses and other current assets or other noncurrent assets on the consolidated balance sheets.\n\n \n\nAs\nof March 28, 2026 and March 29, 2025, current contract assets were $9.3 and $6.6, respectively, and included within prepaid expenses\nand other current assets on the consolidated balance sheets. The increase in current contract assets was primarily due to current contract\nassets acquired as part of the VACCO acquisition and the recognition of revenue related to the satisfaction or partial satisfaction of\nperformance obligations prior to billing, partially offset by amounts billed to customers during the period. As of March 28, 2026 and\nMarch 29, 2025, the Company had noncurrent contract assets of $10.8 and $0.0, respectively, which were included within other noncurrent\nassets on the consolidated balance sheets. The increase in noncurrent contract assets was primarily due to the acquisition of VACCO.\n\n \n\n*Contract\nLiabilities -*Contract liabilities can arise from a customer advance or deposit prior to revenue being recognized. Since the performance\nobligations related to such advances may not have been satisfied, a contract liability is established. In addition, contract liabilities\ncan arise from our over-time revenue contracts when amounts invoiced to our customers exceed revenues recognized under the cost-to-cost\nmeasure of progress. Contract liabilities are included within accrued expenses and other current liabilities or other noncurrent liabilities\non the consolidated balance sheets until the respective revenue is recognized. Advance payments are not considered a significant financing\ncomponent as the timing of the transfer of the related goods or services is at the discretion of the customer.\n\n \n\nAs\nof March 28, 2026 and March 29, 2025, current contract liabilities were $59.3 and $32.7, respectively, and included within accrued expenses\nand other current liabilities on the consolidated balance sheets. The increase in current contract liabilities was primarily due to current\ncontract liabilities acquired as part of the VACCO acquisition and advance payments received, partially offset by revenue recognized\non customer contracts. For the year ended March 28, 2026, the Company recognized revenues of $24.4 that were included in the contract\nliability balance as of March 29, 2025. For the year ended March 29, 2025, the Company recognized revenues of $18.1 that were included\nin the contract liability balance at March 30, 2024.\n\n \n\nAs\nof March 28, 2026 and March 29, 2025, noncurrent contract liabilities were $79.5 and $12.1, respectively, and included within other noncurrent\nliabilities on the consolidated balance sheets. The increase in noncurrent contract liabilities was primarily due to the acquisition\nof VACCO and advance payments received.\n\n \n\n47\n\n \n\n \n\n*Variable\nConsideration*\n\n \n\nThe\namount of consideration to which the Company expects to be entitled in exchange for the goods and services is not generally subject to\nsignificant variations. However, the Company does offer certain customers rebates, prompt payment discounts, end-user discounts, the\nright to return eligible products, and/or other forms of variable consideration. The Company estimates this variable consideration using\nthe expected value amount, which is based on historical experience. The Company includes estimated amounts in the transaction price to\nthe extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated\nwith the variable consideration is resolved. The Company adjusts the estimate of revenue at the earlier of when the amount of consideration\nthe Company expects to receive changes or when the consideration becomes fixed. Accrued customer rebates were $40.7 and $40.0 at March\n28, 2026 and March 29, 2025, respectively, and were included within accrued expenses and other current liabilities on the consolidated\nbalance sheets.\n\n \n\n**4.\nFair Value**\n\n \n\nFair\nvalue is defined as the price that would be expected to be received to sell an asset or paid to transfer a liability in an orderly transaction\nbetween market participants at the measurement date (exit price). The FASB provides accounting rules that classify the inputs used to\nmeasure fair value into the following hierarchy:\n\n \n\nLevel\n1 – Unadjusted quoted prices in active markets for identical assets or liabilities.\n\n \n\nLevel\n2 – Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or\nsimilar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or\nliability.\n\n \n\nLevel\n3 – Unobservable inputs for the asset or liability.\n\n \n\nFinancial\nassets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.\n\n \n\nAs\na result of the occurrence of triggering events such as purchase accounting for acquisitions, the Company measures certain assets and\nliabilities based on Level 3 inputs.\n\n \n\n*Financial\nInstruments*\n\n \n\nThe\nCompany’s financial instruments consist primarily of cash, accounts receivable, trade accounts payable, short-term borrowings,\nlong-term debt, and derivatives in the form of a cross-currency swap.\n\n \n\nDue\nto their short-term nature, the carrying value of cash, accounts receivable, trade accounts payable, accrued expenses and short-term\nborrowings are a reasonable estimate of their fair value. Long-term assets held on our balance sheets related to benefit plan obligations\nare measured at fair value.\n\n \n\nThe\nfair value of the Company’s long-term fixed-rate debt, based on quoted market prices, was $484.3 and $470.5 at March 28, 2026 and\nMarch 29, 2025, respectively. The carrying value of this debt was $496.1 at March 28, 2026 and $495.1 at March 29, 2025. The fair value\nof long-term fixed-rate debt was measured using Level 1 inputs. Due to the nature of fair value calculations for variable-rate debt,\nthe carrying value of the Company’s long-term variable-rate debt is a reasonable estimate of its fair value.\n\n \n\nThe\nfair value of the Cross Currency Swap was a liability of $7.7 and $0.2 at March 28, 2026 and March 29, 2025, respectively, and was measured\nusing Level 2 inputs. This amount is included in other noncurrent liabilities on the Company’s consolidated balance sheets. The\nCross Currency Swap had accumulated other comprehensive loss of $6.0 and $0.2, net of taxes, as of March 28, 2026 and March 29, 2025,\nrespectively, and was included in accumulated other comprehensive income/(loss) on the Company’s consolidated balance sheets, and\nin the Company’s consolidated statements of comprehensive income/(loss). The decrease in the fair value of the Cross Currency Swap\nis primarily due to the weakening of the USD compared to the CHF during the nine month period ended March 28, 2026.\n\n \n\nThe\nCompany does not believe it has significant concentrations of risk associated with the counterparties to its financial instruments.\n\n \n\n**5.\nAllowance for Credit Losses**\n\n** **\n\nThe\nactivity in the allowance for credit losses consists of the following:\n\n \n\nFiscal\nYear Ended \nBalance\nat\nBeginning of\nYear  \nAdditions  \nOther*  \nWrite-offs  \nBalance\nat\nEnd of Year \n\nMarch 28, 2026 \n$5.4  \n$1.1  \n$0.4  \n$(0.6) \n$6.3 \n\nMarch 29, 2025 \n$4.4  \n$1.2  \n$(0.1) \n$(0.1) \n$5.4 \n\nMarch 30, 2024 \n$3.7  \n$0.2  \n$0.5  \n$—  \n$4.4 \n\n \n\n*Foreign currency, price discrepancies, customer returns, disposition and acquisition transactions.\n\n** **\n\n48\n\n \n\n \n\n**6.\nInventory, Net**\n\n** **\n\nThe\nmajor classes of inventories are summarized below:\n\n \n\n  \n**March 28,**\n**2026**\n  \n**March 29,**\n**2025**\n \n\nRaw materials  \n$59.7  \n$47.2 \n\nWork in process  \n 473.5  \n 374.9 \n\nFinished goods  \n 331.9  \n 320.3 \n\n  \n 865.1  \n 742.4 \n\nLess: inventory reserves  \n (102.3) \n (87.9)\n\n  \n$762.8  \n$654.5 \n\n** **\n\n**7.\nProperty, Plant and Equipment, Net**\n\n** **\n\nProperty,\nplant and equipment, net consist of the following:\n\n \n\n  \nMarch\n28,\n\n2026  \nMarch\n29,\n\n2025 \n\nLand \n$39.4  \n$27.4 \n\nBuildings and improvements \n 219.0  \n 187.4 \n\nMachinery and equipment \n 586.0  \n 523.3 \n\n  \n 844.4  \n 738.1 \n\nLess: accumulated\ndepreciation \n (425.4) \n (379.1)\n\n  \n$419.0  \n$359.0 \n\n** **\n\nDepreciation\nexpense was $47.8, $48.2 and $48.9 for the fiscal years ended March 28, 2026, March 29, 2025, and March 30, 2024, respectively. Of these\namounts, $6.5, $6.8 and $6.3 were included within selling, general and administrative expenses on the consolidated statements of operations\nfor the fiscal years ended March 28, 2026, March 29, 2025, and March 30, 2024, respectively. The remainder was included within cost of\nsales on the consolidated statements of operations.\n\n \n\n**8.\nLeases**\n\n** **\n\nThe\nCompany enters into leases for manufacturing facilities, warehouses, sales offices, information technology equipment, plant equipment,\nvehicles and certain other equipment with varying end dates from April 2026 to March 2043, including renewal options.\n\n \n\nThe\nfollowing table represents the impact of leasing on the consolidated balance sheets:\n\n \n\nAssets:    Balance Sheet Classification  March 28,\n2026   March 29,\n2025 \n\nOperating lease assets    Operating lease assets  $68.7   $58.6 \n\nFinance lease right of use assets, net    Property, plant and equipment, net   41.4    45.3 \n\nTotal leased assets, net       $110.1   $103.9 \n\n                \n\nLiabilities:               \n\nCurrent operating lease liabilities    Current operating lease liabilities  $10.7   $9.2 \n\nCurrent finance lease liabilities    Accrued expenses and other current liabilities   5.6    5.9 \n\nNoncurrent operating lease liabilities    Noncurrent operating lease liabilities   59.0    50.3 \n\nNoncurrent finance lease liabilities    Other noncurrent liabilities   40.6    43.4 \n\nTotal lease liabilities       $115.9   $108.8 \n\n \n\n49\n\n \n\n \n\nFor\nthe year ended March 28, 2026, $51.9 of assets included in buildings and improvements and $9.6 of assets included in machinery and equipment\nwere accounted for as finance leases. For the year ended March 29, 2025, $51.8 of assets included in buildings and improvements and $8.8\nof assets included in machinery and equipment were accounted for as finance leases. At March 28, 2026 and March 29, 2025, the Company\nhad accumulated amortization of $20.1 and $15.3 associated with these assets, respectively. Amortization expense associated with these\nfinance leases was $5.4, $5.2 and $4.9 for the years ended March 28, 2026, March 29, 2025 and March 30, 2024, respectively, and is included\nwithin depreciation expense within costs of goods sold on the consolidated statements of operations.\n\n \n\nCash\npaid associated with operating lease liabilities was $10.0 and $9.0 for the fiscal years ended March 28, 2026 and March 29, 2025, respectively,\nall of which were included within the operating cash flow section of the consolidated statements of cash flows. Lease assets obtained\nin exchange for new operating lease liabilities were $15.9 and $24.4 for the fiscal years ended March 28, 2026 and March 29, 2025, respectively.\nLease modifications which resulted in newly obtained lease assets in exchange for new operating lease liabilities were $1.5 and $0.8\nfor the fiscal years ended March 28, 2026 and March 29, 2025, respectively.\n\n \n\nCash\npaid associated with finance lease liabilities was $6.2 and $6.0 for the fiscal years ended March 28, 2026 and March 29, 2025, respectively.\nOf these amounts, $4.6 and $4.1 were included within the financing cash flow section of the consolidated statements of cash flows for\nthe fiscal years ended March 28, 2026 and March 29, 2025, respectively. $1.6 and $1.7 of these cash payments were included within the\noperating cash flow section of the consolidated statements of cash flows for the fiscal years ended March 28, 2026 and March 29, 2025,\nrespectively. Lease assets obtained in exchange for new finance lease liabilities were $1.5 and $1.3 for the fiscal years ended March\n28, 2026 and March 29, 2025, respectively. Lease modifications which resulted in reductions of lease assets in exchange for reductions\nof finance lease liabilities were $0.0 and $0.0 for the fiscal years ended March 28, 2026 and March 29, 2025, respectively.\n\n \n\nTotal operating lease expense was $11.1, $10.4 and $10.1 for the fiscal\nyears ended March 28, 2026, March 29, 2025 and March 30, 2024, respectively. Operating lease expense included within cost of sales totaled\n$8.5, $8.0, and $7.8 for the fiscal years ended March 28, 2026, March 29, 2025 and March 30, 2024, respectively. The remaining operating\nlease expense was included within selling, general and administrative expenses on the consolidated statement of operations. Short-term\nand variable lease expenses were immaterial.\n\n \n\nTotal finance lease expense was $7.0 for the fiscal\nyear ended March 28, 2026, of which, $5.4 was related to amortization expense of finance lease assets. Of the total $5.4 lease amortization\nexpense $2.2 was included within cost of sales and $3.2 was included within selling, general and administrative expenses for the fiscal\nyear ended March 28, 2026. The remaining $1.6 was related to interest expense for the fiscal year ended March 28, 2026. Total finance\nlease expense was $7.0 for the fiscal year ended March 29, 2025, of which, $5.3 was related to amortization expense of finance lease assets.\nOf the total $5.3 lease amortization expense $2.2 was included within cost of sales and $3.1 was included within selling, general and\nadministrative expenses for the fiscal year ended March 29, 2025. The remaining $1.7 was related to interest expense. Total finance lease\nexpense was $6.7 for the fiscal year ended March 30, 2024, of which, $5.0 was related to amortization expense of finance lease assets.\nOf the total $5.0 lease amortization expense $2.2 was included within cost of sales and $2.8 was included within selling, general and\nadministrative expenses for the fiscal year ended March 30, 2024. The remaining $1.7 was related to interest expense. Variable lease expense\nwas immaterial for each of the last three fiscal years.\n\n \n\nFuture\nundiscounted lease payments for the remaining lease terms as of March 28, 2026, including renewal options reasonably certain of being\nexercised, are as follows:\n\n \n\n  \nOperating\n\nLeases  \nFinance\n\nLeases \n\nWithin one year \n$11.7  \n$5.9 \n\nOne to two years \n 10.4  \n 5.1 \n\nTwo to three years \n 8.7  \n 4.4 \n\nThree to four years \n 8.4  \n 4.3 \n\nFour to five years \n 7.9  \n 4.2 \n\nThereafter \n 44.4  \n 33.3 \n\nTotal future undiscounted lease payments \n 91.5  \n 57.2 \n\nLess:\nimputed interest \n (21.8) \n (11.0)\n\nTotal lease liabilities \n$69.7  \n$46.2 \n\n \n\n50\n\n \n\n \n\nThe\nweighted-average remaining lease term on March 28, 2026 for our operating leases is 10.4 years. The weighted-average discount rate on\nMarch 28, 2026 for our operating leases is 5.7%.\n\n \n\nThe\nweighted-average remaining lease term on March 28, 2026 for our finance leases is 12.8 years. The weighted-average discount rate on March\n28, 2026 for our finance leases is 3.5%.\n\n** **\n\n**9.\nGoodwill and Intangible Assets**\n\n** **\n\n**Goodwill**\n\n \n\nGoodwill\nbalances, by segment, consist of the following:\n\n \n\n  \nAerospace\n& Defense  \nIndustrial  \nTotal \n\nMarch 30, 2024 \n$199.2  \n$1,675.7  \n$1,874.9 \n\nTranslation adjustments \n —  \n (2.7) \n (2.7)\n\nMarch 29, 2025 \n$199.2  \n$1,673.0  \n$1,872.2 \n\nAcquisition (1) \n 127.9  \n —  \n 127.9 \n\nTranslation adjustments \n —  \n 3.3  \n 3.3 \n\nMarch 28, 2026 \n$327.1  \n$1,676.3  \n$2,003.4 \n\n \n\n(1)Goodwill associated with the acquisition of VACCO.\n\n** **\n\n**Intangible\nAssets**\n\n* *\n\nThe\ntable below summarizes the net book value and weighted average useful lives of our intangible assets.\n\n \n\n   **Weighted**   March 28, 2026   March 29, 2025 \n\n   Average\nUseful Lives\n(Years)   Gross\nCarrying\nAmount   Accumulated\nAmortization   Gross\nCarrying\nAmount   Accumulated\nAmortization \n\nProduct approvals   24   $50.7   $24.1   $50.7   $22.2 \n\nCustomer relationships and lists(1)   24    1,378.9    272.8    1,301.0    215.1 \n\nTrade names(1)   24    224.7    50.0    217.2    41.8 \n\nPatents and trademarks   15    10.3    6.9    10.0    6.5 \n\nDomain names   10    0.4    0.4    0.4    0.4 \n\nInternal-use software(1)   3    25.3    12.8    21.7    14.5 \n\nOther(1)   4    38.3    7.7    1.6    1.3 \n\n         1,728.6    374.7    1,602.6    301.8 \n\nNon-amortizable repair station certifications   n/a    24.3    —    24.3    — \n\nTotal   23   $1,752.9   $374.7   $1,626.9   $301.8 \n\n \n\n(1)Includes $76.4 of customer relationships, $7.5 of trade names, $3.1 of internal-use software and $36.8 of funded backlog resulting from the VACCO acquisition.\n\n \n\nAmortization\nexpense for definite-lived intangible assets during fiscal years 2026, 2025 and 2024 was $81.0, $71.8 and $70.4, respectively. Estimated\namortization expense for the five succeeding fiscal years and thereafter is as follows:\n\n \n\n2027 \n$86.2 \n\n2028 \n 81.1 \n\n2029 \n 79.0 \n\n2030 \n 72.6 \n\n2031 \n 69.1 \n\n2032 and thereafter \n 965.9 \n\n** **\n\n51\n\n \n\n** **\n\n**10.\nAccrued Expenses and Other Current Liabilities**\n\n** **\n\nThe\nsignificant components of accrued expenses and other current liabilities are as follows:\n\n \n\n  \nMarch\n28,\n2026  \nMarch\n29,\n2025 \n\nEmployee compensation and related\nbenefits \n$62.6  \n$45.2 \n\nTaxes \n 9.3  \n 11.1 \n\nContract liabilities \n 59.3  \n 32.7 \n\nAccrued rebates \n 40.7  \n 40.0 \n\nWorkers compensation and insurance \n 0.9  \n 0.5 \n\nCurrent finance lease liabilities \n 5.6  \n 5.9 \n\nInterest \n 10.3  \n 12.2 \n\nLegal \n 3.8  \n 2.1 \n\nReturns and warranties \n 9.6  \n 9.4 \n\nOther \n 12.6  \n 6.9 \n\n  \n$214.7  \n$166.0 \n\n** **\n\n**11.\nDebt**\n\n** **\n\n**Domestic\nCredit Facility**\n\n \n\nThe\nCredit Agreement, which was entered into in fiscal 2022 and amended in fiscal 2023 and again on October 28, 2025, provides the Company\nwith (a) the $1,300.0 Term Loan, which was used to fund a portion of the purchase price for the acquisition of Dodge and to pay related\nfees and expenses, and (b) the $500.0 Revolving Credit Facility.\n\n \n\nAmounts\noutstanding under the Facilities generally bear interest at either, at the Company’s option, (a) a base rate determined by reference\nto the higher of (i) Wells Fargo’s prime lending rate, (ii) the federal funds effective rate plus 0.50% and (iii) Term SOFR plus\n1.00% or (b) Term SOFR plus a credit spread adjustment of 0.10% plus a margin ranging from 0.75% to a cap of 1.75% in the case of loans\nunder the Revolving Credit Facility and 2.00% in the case of the Term Loan, depending on the Company’s consolidated ratio of total\nnet debt to consolidated EBITDA. The Facilities are subject to a SOFR floor of 0.00%. As of March 28, 2026, the Company’s margin\nwas 1.00% for SOFR loans, the commitment fee rate was 0.175%, and the letter of credit fee rate was 0.75%.\n\n \n\nThe\nTerm Loan matures in November 2026 and amortizes in quarterly installments with the balance payable on the maturity date. The Company\ncan elect to prepay some or all of the outstanding balance from time to time without penalty, which will offset future quarterly amortization\ninstallments. Due to prepayments previously made, the required future principal payments on the Term Loan are $173.0 for fiscal 2027.\n\n \n\nOriginally\nthe Revolving Credit Facility was to expire in November 2026 but on October 28, 2025, the Credit Agreement was amended to, among other\nthings, (i) extend the expiration date of the Revolving Credit Facility to October 2030, (ii) eliminate the minimum interest coverage\nratio covenant from the Credit Agreement, and (iii) reduce the margin cap within the pricing grid on Term SOFR-based loans under the\nRevolving Credit Facility from 2.00% to 1.75%. All amounts outstanding under the Revolving Credit Facility will be payable on its expiration\ndate.\n\n \n\nIn\nconnection with the amendment, new debt issuance costs totaled $1.8. Additionally, $0.6 of previously unamortized debt issuance costs\nassociated with the Revolving Credit Facility will now be associated with the new arrangement. The total of $2.4 debt issuance costs\nwill be amortized through the new term of October 2030. The remaining portion of original debt issuance costs associated with the Term\nLoan of $1.6 will continue to be amortized through the end of the Term Loan in November 2026.\n\n \n\nThe\nCredit Agreement requires the Company to comply with various covenants, including a maximum Total Net Leverage Ratio (as defined in the\nCredit Agreement) of 4.50:1.00 (provided that, such maximum ratio may be increased by the Company to 0.50:1.00 for a period of 12 months\nafter the consummation of a material acquisition (provided that there may be only one such increase in effect at any one time)). As of\nMarch 28, 2026 the Company was in compliance with all debt covenants.\n\n \n\nThe\nCredit Agreement allows the Company to, among other things, make distributions to stockholders, repurchase its stock, incur other debt\nor liens, or acquire or dispose of assets provided that the Company complies with certain requirements and limitations of the Credit\nAgreement.\n\n \n\nThe\nCompany’s domestic subsidiaries have guaranteed the Company’s obligations under the Credit Agreement, and the Company’s\nobligations and the domestic subsidiaries’ guaranty are secured by a pledge of substantially all of the assets of the Company and\nits domestic subsidiaries.\n\n \n\n52\n\n \n\n \n\nAs\nof March 28, 2026, $173.0 was outstanding under the Term Loan, $200.0 was outstanding under the Revolving Credit Facility (used to fund\na portion of the purchase price for VACCO), and $3.7 of the Revolving Credit Facility was being utilized to provide letters of credit\nto secure the Company’s obligations relating to certain insurance programs. The Company had the ability to borrow an additional\n$296.3 under the Revolving Credit Facility as of March 28, 2026.\n\n \n\n**Senior\nNotes**\n\n \n\nIn\nfiscal 2022, RBCA issued $500.0 aggregate principal amount of the Senior Notes. The net proceeds from the issuance of the Senior Notes\nwere approximately $492.0, after deducting initial purchasers’ discounts and commissions and offering expenses and were used to\nfund a portion of the cash purchase price for the acquisition of Dodge.\n\n \n\nThe\nSenior Notes were issued pursuant to an indenture with Wilmington Trust, National Association, as trustee. This indenture contains covenants\nlimiting the ability of the Company to (i) incur additional indebtedness or guarantee indebtedness, (ii) declare or pay dividends, redeem\nstock or make other distributions to stockholders, (iii) make investments, (iv) create liens or use assets as security in other transactions,\n(v) merge or consolidate, or sell, transfer, lease or dispose of substantially all of its assets, (vi) enter into transactions with affiliates,\nand (vii) sell or transfer certain assets. These covenants contain various exceptions, limitations and qualifications. At any time that\nthe Senior Notes are rated investment grade, certain of these covenants will be suspended.\n\n \n\nThe\nSenior Notes are guaranteed jointly and severally on a senior unsecured basis by RBC Bearings and certain of RBCA’s existing and\nfuture wholly-owned domestic subsidiaries that also guarantee the Credit Agreement.\n\n \n\nInterest\non the Senior Notes accrues at a rate of 4.375% and is payable semi–annually in cash in arrears on April 15 and October 15 of each\nyear.\n\n \n\nThe\nSenior Notes will mature on October 15, 2029. The Company may redeem some or all of the Senior Notes at any time at the redemption prices\nset forth in the Indenture, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. If the Company sells certain\nof its assets or experiences specific kinds of changes in control, the Company must offer to repurchase the Senior Notes.\n\n \n\n**Foreign\nBorrowing Arrangements**\n\n \n\nOne\nof our foreign subsidiaries, Schaublin SA, has a CHF 5.0 (approximately $6.1 USD) credit line with Credit Suisse (Switzerland) Ltd. to\nprovide future working capital, if necessary. As of March 28, 2026, $0.1 was being utilized to provide a bank guarantee. Fees associated\nwith this credit line are nominal.\n\n \n\nIn\nJuly 2024, Swiss Tool Systems, one of our foreign subsidiaries, purchased the building where it operates for CHF 7.1 (approximately $8.4\nUSD) and took out a 10-year, 2.9% fixed-rate mortgage on the building for CHF 4.0 (approximately $4.5 USD).\n\n \n\nThe\nbalances payable under all borrowing facilities are as follows:\n\n \n\n  \nMarch\n28,\n\n2026  \nMarch\n29,\n\n2025 \n\nRevolver and term loan facilities \n$373.0  \n$418.0 \n\nSenior notes \n 500.0  \n 500.0 \n\nDebt issuance cost \n (7.0) \n (8.3)\n\nOther \n 9.5  \n 10.4 \n\nTotal debt \n 875.5  \n 920.1 \n\nLess: current portion \n 173.8  \n 1.7 \n\nLong-term debt \n$701.7  \n$918.4 \n\n** **\n\nContractual\nmaturities of debt, as of March 28, 2026 are as follows:\n\n \n\n2027 \n$174.8 \n\n2028 \n 0.8 \n\n2029 \n 0.8 \n\n2030 \n 500.8 \n\n2031 \n 200.8 \n\n2032\nand thereafter \n 4.5 \n\n** **\n\n**12.\nDerivative Financial Instruments**\n\n \n\nThe\nCompany is exposed to certain risks relating to its ongoing business operations, including market risks relating to fluctuations in interest\nrates and foreign exchange rates. Derivative financial instruments are recognized on the consolidated balance sheets as either assets\nor liabilities and are measured at fair value. Changes in the fair values of derivatives are recorded each period in earnings or accumulated\nother comprehensive income/(loss), depending on whether a derivative is effective as part of a hedged transaction. Gains and losses on\nderivative instruments reported in accumulated other comprehensive income/(loss) are subsequently included in earnings in the periods\nin which earnings are affected by the hedged item. The Company does not use derivative instruments for speculative purposes.\n\n \n\n53\n\n \n\n \n\nOn\nAugust 12, 2024, the Company entered into a three-year pay Swiss franc fixed/receive U.S. dollar fixed, Cross Currency Swap with a\nthird-party financial counterparty. The objective of the Cross Currency Swap is to economically hedge the Company’s net\ninvestment in its lower-tier European subsidiary, Schaublin, against adverse changes in the Swiss franc/U.S. dollar exchange rate.\nThe Cross Currency Swap is based upon a net investment of CHF 69.4 ($80.0 USD) notional amount with a three-year\nmaturity date. RBC receives a fixed U.S. dollar amount on a month-to-month basis based upon a fixed annual rate of 2.77% of the\nnotional amount. At maturity, RBC will net-settle the principal of the Cross Currency Swap in cash with the counterparty. The fair\nvalue of the Cross Currency Swap has been disclosed in Note 4. The accumulated other comprehensive income derivative component\nbalance, net of taxes, was a $6.0 loss and $0.2 loss at March 28, 2026 and March 29, 2025, respectively. As the instrument is\ndesignated as a net investment hedge, the fair value of the instrument was included in the consolidated balance sheet within other\nnoncurrent liabilities. Changes in the fair value are recognized through accumulated other comprehensive income/(loss). As of March\n28, 2026, the Company has no other derivative instruments.\n\n** **\n\n**13.\nOther Noncurrent Liabilities**\n\n** **\n\nThe\nsignificant components of other noncurrent liabilities consist of:\n\n* *\n\n  \nMarch\n28,\n\n2026  \nMarch\n29,\n\n2025 \n\nOther postretirement benefits \n$8.6  \n$8.1 \n\nNoncurrent income tax liability \n 16.9  \n 16.2 \n\nDeferred compensation \n 30.1  \n 27.4 \n\nContract liabilities \n 79.5  \n 12.1 \n\nNoncurrent finance lease liabilities \n 40.6  \n 43.4 \n\nOther \n 11.8  \n 4.8 \n\n  \n$187.5  \n$112.0 \n\n** **\n\n**14.\nEmployee Benefit Plans**\n\n** **\n\n*Noncontributory\nDefined Benefit Pension Plan*\n\n \n\nAt\nMarch 28, 2026, the Company had one consolidated noncontributory defined benefit pension plan (the “Plan”) covering current\nand former union employees in its Heim division plant in Fairfield, Connecticut, its Precision Products subsidiary plant in Plymouth,\nIndiana and former union employees of the Tyson subsidiary in Glasgow, Kentucky and the Nice subsidiary in Kulpsville, Pennsylvania.\n\n \n\nThe\ndiscount rates used in determining the funded status of the Plan as of March 28, 2026 and March 29, 2025 were 5.40% and 5.30%, respectively.\n\n \n\nThe\nfunded status of the Plan and the amount recognized in the balance sheet at March 28, 2026 and March 29, 2025 were $5.8 and $5.7, respectively.\nThese overfunded amounts are included within noncurrent assets on the consolidated balance sheets.\n\n \n\n54\n\n \n\n \n\n*Foreign\nPension Plans*\n\n \n\nTwo\nof the Company’s foreign operations, Schaublin and Swiss Tool, sponsor pension plans for their approximately 160 and 29 employees,\nrespectively, in conformance with Swiss pension law. The Schaublin plan is funded with an independent semi-autonomous collective provident\nfoundation whereas the Swiss Tool plan is funded with a reputable Swiss insurer. The unfunded liabilities of these plans at March 28,\n2026 and March 29, 2025 were $1.1 and $0.1, respectively, and recorded within other noncurrent liabilities on the consolidated balance\nsheets. For fiscal 2026, 2025 and 2024, net periodic benefit cost for these plans was $2.2, $2.3 and $2.0, respectively.\n\n* *\n\n*401(k)\nPlans*\n\n \n\nThe\nCompany has defined contribution plans under Section 401(k) of the Internal Revenue Code for all of its employees not covered by\na collective bargaining agreement. Employer contributions under this plan, ranging from 10% - 100% of eligible amounts contributed by\nemployees, amounted to $10.5, $9.9 and $9.6 in fiscal 2026, 2025 and 2024, respectively.\n\n \n\n*Supplemental\nExecutive Retirement Plan*\n\n \n\nThe\nCompany maintains a non-qualified Supplemental Executive Retirement Plan (“SERP”) for a select group of senior management\nemployees. The SERP is a deferred compensation plan which allows eligible employees to elect to defer up to 75% of their current salary\nand up to 100% of bonus compensation. As of March 28, 2026 and March 29, 2025, the SERP assets were $39.8 and $34.9, respectively, of\nwhich, $1.6 and $2.0 were classified as other current assets on the consolidated balance sheets, respectively, while the remainder was\nrecorded in other noncurrent assets on the consolidated balance sheets. As of March 28, 2026 and March 29, 2025, the SERP liabilities\nwere $31.7 and $29.4, respectively, of which, $1.6 and $2.0 were recorded in accrued expenses on the consolidated balance sheets, respectively,\nwhile the remainder was included within other noncurrent liabilities on the consolidated balance sheets.\n\n \n\n*Defined\nBenefit Health Care Plans*\n\n \n\nThe\nCompany, for the benefit of current and former union employees at its Heim, West Trenton, Plymouth and PIC facilities and former union\nemployees of its Tyson and Nice subsidiaries, sponsors contributory defined benefit health care plans that provide postretirement medical\nand life insurance benefits to union employees who have attained certain age and/or service requirements while employed by the Company.\nThe plans are unfunded and costs are paid as incurred. Postretirement benefit obligations were $1.9 and $2.0 at March 28, 2026 and March\n29, 2025, respectively. Of these amounts, $0.2 is considered current and is included within accrued expenses and other current liabilities\non the consolidated balance sheets as of both March 28, 2026 and March 29, 2025. The remainder of the balances are included in other\nnoncurrent liabilities in the consolidated balance sheets. The Company also maintains a frozen defined benefit heath care plan for Dodge\nemployees with postretirement benefit obligations of $4.9 and $5.4 at March 28, 2026 and March 29, 2025, respectively. Of these amounts,\n$0.6 and $0.7 were considered current at March 28, 2026 and March 29, 2025. The amounts are included within the same balance sheet line\nitems as other postretirement health care plans maintained by the Company.\n\n** **\n\n**15.\nIncome Taxes**\n\n \n\nIncome\nbefore income taxes for the Company’s domestic and foreign operations is as follows:\n\n \n\n  \nFiscal\nYear Ended \n\n  \nMarch\n28,\n\n2026  \nMarch\n29,\n\n2025  \nMarch\n30,\n\n2024 \n\nDomestic \n$353.7  \n$292.5  \n$240.8 \n\nForeign \n 15.6  \n 19.4  \n 21.0 \n\nTotal income before\nincome taxes \n$369.3  \n$311.9  \n$261.8 \n\n \n\nThe\nprovision for income taxes consists of the following:\n\n \n\n  \nFiscal\nYear Ended \n\n  \nMarch\n28,\n\n2026  \nMarch\n29,\n\n2025  \nMarch\n30,\n\n2024 \n\nCurrent tax expense: \n   \n   \n  \n\nFederal \n$54.1  \n$78.5  \n$53.1 \n\nState \n 11.7  \n 9.5  \n 5.9 \n\nForeign \n 5.0  \n 4.5  \n 5.2 \n\n  \n 70.8  \n 92.5  \n 64.2 \n\nDeferred tax expense: \n    \n    \n   \n\nFederal \n 12.2  \n (21.0) \n (9.3)\n\nState \n (0.7) \n (4.6) \n (4.3)\n\nForeign \n (0.6) \n (1.2) \n 1.3 \n\n  \n 10.9  \n (26.8) \n (12.3)\n\nTotal income taxes \n$81.7  \n$65.7  \n$51.9 \n\n \n\n55\n\n \n\n \n\nAn\nanalysis of the difference between the provision for income taxes and the amount computed by applying the U.S. statutory income tax rate\nto pre-tax income follows:\n\n \n\n  \n**Fiscal\nYear Ended (1)** \n\n  \nMarch\n28, 2026 \n\n  \nAmount  \nPercent \n\nIncome taxes using U.S. federal\nstatutory rate \n$77.5  \n 21.0%\n\nState and local income taxes, net of federal\nbenefit (2) \n 8.4  \n 2.3 \n\nForeign tax effects \n 1.1  \n 0.3 \n\nEffect of tax law changes in period \n 0.0  \n 0.0 \n\nEffect of cross-border tax laws \n    \n   \n\nForeign derived intangible\nincome (FDII) \n (4.4) \n (1.2)\n\nOther \n (1.0) \n (0.3)\n\nTax credits \n (1.7) \n (0.5)\n\nChanges in valuation allowance \n 0.0  \n 0.0 \n\nNontaxable or nondeductible items \n    \n   \n\nStock-based compensation \n (7.3) \n (2.0)\n\n162m limitation on\nexecutive compensation \n 8.5  \n 2.3 \n\nChanges in unrecognized tax benefits \n 0.6  \n 0.2 \n\n  \n$81.7  \n 22.1%\n\n \n\n(1)The effective tax rate has been disaggregated in accordance with ASU 2023-09, which was adopted prospectively in fiscal 2026.\n\n \n\n(2)For fiscal 2026, the majority (greater than 50%) in the State and local income taxes category consisted of state taxes in California, Indiana, Florida, Texas and Georgia.\n\n \n\n  \n**Fiscal\nYear Ended (1)** \n\n  \nMarch\n29,\n2025  \nMarch\n30,\n2024 \n\nIncome taxes using U.S. federal\nstatutory rate \n$65.5  \n$55.0 \n\nState income taxes, net of federal benefit \n 4.2  \n 0.8 \n\nStock-based compensation \n 0.2  \n (0.9)\n\nForeign rate differential \n 0.3  \n 2.0 \n\nResearch and development credits \n (2.4) \n (2.5)\n\nCompany-owned life insurance \n (0.2) \n (0.8)\n\nForeign derived intangible income (FDII) \n (3.7) \n (3.3)\n\nU.S. unrecognized tax positions \n 1.2  \n 1.5 \n\nValuation allowance \n (1.1) \n (1.7)\n\nOther - net \n 1.7  \n 1.8 \n\n  \n$65.7  \n$51.9 \n\n \n\n(1)As presented prior to adoption of ASU 2023-09, which was adopted prospectively in fiscal 2026.\n\n \n\n56\n\n \n\n \n\nNet\ndeferred tax assets (liabilities) are comprised of the following:\n\n \n\n  \nMarch\n28,\n2026  \nMarch\n29,\n2025 \n\nDeferred tax assets: \n   \n  \n\nPension\nand postretirement benefits \n$0.8  \n$1.3 \n\nEmployee compensation\naccruals \n 13.1  \n 10.8 \n\nInventory reserves \n 25.3  \n 19.9 \n\nOperating lease liabilities \n 12.8  \n 10.5 \n\nFinance lease liabilities \n 1.1  \n 0.9 \n\nStock compensation \n 4.0  \n 4.1 \n\nTax loss and credit\ncarryforwards \n 12.2  \n 12.3 \n\nState tax \n 2.0  \n 2.0 \n\nOther accrued liabilities \n 10.7  \n 9.6 \n\nCapitalized research\nand development costs \n 1.8  \n 21.5 \n\nOther \n 3.8  \n 0.9 \n\nTotal gross deferred\ntax assets \n 87.6  \n 93.8 \n\nValuation\nallowance \n (6.7) \n (5.7)\n\nTotal deferred tax\nassets \n$80.9  \n$88.1 \n\nDeferred tax liabilities: \n    \n   \n\nProperty, plant and\nequipment \n$(35.6) \n$(31.1)\n\nOperating lease assets \n (12.5) \n (10.3)\n\nOther \n (4.7) \n (4.2)\n\nIntangible\nassets \n (294.2) \n (299.3)\n\nTotal\ndeferred tax liabilities \n$(347.0) \n$(344.9)\n\n  \n    \n   \n\nTotal\nnet deferred liabilities \n$(266.1) \n$(256.8)\n\n \n\nThe Company evaluates deferred tax assets to ensure that the estimated\nfuture taxable income will be sufficient in character (i.e. capital versus ordinary income treatment), amount and timing to result in\ntheir recovery. After considering the positive and negative evidence, a valuation allowance has been recorded on foreign tax credits and\non certain state and foreign credits and net operating losses as it is more likely than not (*i.e*., greater than a 50% likelihood)\nthat these items will not be utilized. For the Company’s fiscal year ended March 28, 2026 the valuation allowance increased by $1.0,\nwhich primarily related to the valuation allowance established on Dodge China’s deferred tax assets. For the fiscal year ended March\n29, 2025 the valuation allowance decreased by $1.3. These valuation allowances are required because management has determined, based on\nfinancial projections and available tax strategies, that it is unlikely the net operating losses and credits will be utilized before they\nexpire. If events or circumstances change, valuation allowances are adjusted at that time resulting in an income tax benefit or charge.\n\n \n\nAt\nMarch 28, 2026, the Company had State net operating loss carryovers in different jurisdictions at varying amounts up to $4.7, which expire\nat various dates through 2036. At March 28, 2026, the Company had foreign net operating loss carryovers in different jurisdictions at\nvarying amounts totaling $7.0, which will expire at various dates through fiscal 2032. At March 28, 2026, the Company had U.S. federal\nand state credits in different jurisdictions at varying amounts up to $12.3 which principally expire at various dates through 2040.\n\n \n\nUnder\naccounting standards (ASC 740) a deferred tax liability is not recorded for the excess of the tax basis over the financial reporting\n(book) basis of an investment in a foreign subsidiary if the indefinite reinvestment criteria is met. The Tax Cuts and Jobs Act (TCJA)\nrequired a mandatory deemed repatriation of certain undistributed earnings of the Company’s foreign subsidiaries as of December\n31, 2017, and income taxes were accrued accordingly. If these deemed repatriated earnings were distributed in the form of cash dividends,\nthe Company would not be subject to additional U.S. income taxes, other than tax arising from the movement of foreign exchange rates\non previously taxed earnings, but could be subject to foreign income and withholding taxes. A provision had not been made for additional\nU.S. and foreign taxes at March 28, 2026 on approximately $103.9 of undistributed earnings of foreign subsidiaries or for any additional\ntax on the deemed repatriated earnings because the Company intends to reinvest these funds indefinitely to support foreign growth opportunities\nand foreign operations. Due to the inherent complexity of the multinational tax environment in which the Company operates, it is not\npracticable to estimate the unrecognized deferred tax liability on these undistributed earnings. These earnings could become subject\nto additional tax under certain circumstances including, but not limited to, loans to the Company, or upon sale or pledging of the foreign\nsubsidiary’s stock.\n\n \n\n57\n\n \n\n \n\n*Uncertain\nTax Positions*\n\n \n\nUnrecognized\nincome tax benefits represent income tax positions taken on income tax returns but not yet recognized in the consolidated financial statements.\nIf recognized, substantially all of the unrecognized tax benefits for the Company’s fiscal years ended March 28, 2026 and March\n29, 2025 would affect the effective income tax rate.\n\n \n\nA\nreconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:\n\n \n\n  \nMarch\n28,\n2026  \nMarch\n29,\n2025  \nMarch\n30,\n2024 \n\nBalance, beginning of year \n$19.8  \n$15.2  \n$13.1 \n\nGross increases (decreases) – tax\npositions taken during a prior period \n (0.7) \n 1.5  \n 2.0 \n\nGross increases – tax positions taken\nduring the current period \n 3.7  \n 4.5  \n 1.7 \n\nReductions due to\nlapse of the applicable statute of limitations \n (2.1) \n (1.4) \n (1.6)\n\nBalance, end of year \n$20.7  \n$19.8  \n$15.2 \n\n \n\nThe\nCompany recognizes the interest and penalties accrued related to unrecognized tax benefits in income tax expense. The Company recognized\nan expense of $0.5 for the fiscal year ended March 28, 2026 and an expense of $0.3 and benefit of $0.3 related to interest and penalties\non its statement of operations for the fiscal years ended March 29, 2025 and March 30, 2024, respectively. The Company had approximately\n$2.0 and $1.6 of accrued interest and penalties at March 28, 2026 and March 29, 2025, respectively.\n\n \n\nThe\nCompany believes it is reasonably possible that some of its unrecognized tax positions may be effectively settled by the end of the Company’s\nfiscal year ending March 28, 2026, due to the closing of audits and the statute of limitations expiring in various jurisdictions. The\ndecrease, pertaining primarily to federal and state credits and state tax, is estimated to be $2.1.\n\n \n\nThe\nCompany files income tax returns in numerous U.S. and foreign jurisdictions, with returns subject to examination for varying periods,\nbut generally back to and including the fiscal year ending April 1, 2023, although certain tax credits generated in earlier years are\nopen under statute from March 29, 2008. The Company is no longer subject to U.S. federal tax examination by the Internal Revenue Service\nfor years ending before April 1, 2023.\n\n \n\n*Disclosure\nOf Income Taxes Paid*\n\n** **\n\n  \nFiscal\nYear Ended \n\n  \nMarch\n28,\n2026 \n\nFederal \n$55.3 \n\nState \n 11.8 \n\nForeign \n 4.5 \n\nTotal cash paid for\nincome taxes, net of refunds \n$71.6 \n\n** **\n\nThe\ncompany paid $71.6 in cash (net of refunds) in income taxes for the year ended March 28, 2026. No single foreign jurisdiction or U.S.\nstate comprised greater than 5% of the total.\n\n \n\n**16.\nStockholders’ Equity**\n\n \n\n*Preferred\nStock*\n\n \n\nWe\nare authorized to issue 10,000,000 shares of preferred stock, $0.01 par value per share, in one or more series and to fix the powers,\ndesignations, preferences and relative participating, option or other rights thereof, including dividend rights, conversion rights, voting\nrights, redemption terms, liquidation preferences and the number of shares constituting any series, without any further vote or action\nby our stockholders.\n\n \n\nIn\nfiscal 2022, we completed an offering of 4,600,000 shares of MCPS to fund a portion of the purchase price for the acquisition of Dodge.\n\n \n\n58\n\n \n\n \n\nHolders\nof MCPS received cash dividends at the annual rate of 5.00% of the liquidation preference of $100 per share. The Company made dividend\npayments of $5.7 on April 12, 2024, $5.8 on July 12, 2024, and $5.7 on October 15, 2024.\n\n \n\nOn\nOctober 15, 2024, each then-outstanding share of the MCPS converted into 0.4413 shares of the Company’s common stock.\nThe conversion rate was based on a value for the common stock equal to the lower of (i) the average of the daily VWAPs in the 20-trading-day\nperiod through October 14, 2024 (the daily VWAP is the per share volume-weighted average price of the Common Stock on the New York Stock\nExchange for a given trading day as reported by Bloomberg) or (ii) $226.63. Because the VWAP average for the 20 trading days\nthrough October 14 was $292.55, the $226.63 common stock value was utilized to produce the conversion rate of 0.4413 shares\nof common stock for each share of MCPS. This is known as the “Minimum Conversion Rate” in the Certificate of Designations\ndefining the terms of the MCPS.\n\n \n\nThe\ndividend on the MCPS that accrued through the conversion date was paid on the conversion date to holders of record on October 1, 2024\nand therefore was not factored into the conversion rate.\n\n \n\nThe\nCompany issued 2,029,955 shares of common stock upon the conversion of the MCPS.\n\n \n\n*Common\nStock*\n\n \n\nWe\nare authorized to issue 60,000,000 shares of common stock, $0.01 par value per share. Holders of common stock are entitled to one vote\nper share. Holders of common stock are entitled to receive dividends, if and when declared by our Board of Directors, and to share ratably\nin our assets legally available for distribution to our stockholders in the event of liquidation after giving effect to any liquidation\npreference for the benefit of any preferred stock then outstanding. Holders of common stock have no preemptive, subscription, redemption,\nor conversion rights. The holders of common stock do not have cumulative voting rights. The holders of a majority of the shares of common\nstock can elect all of the directors and can control our management and affairs.\n\n \n\n*Long-Term\nEquity Incentive Plans*\n\n \n\nThe\nCompany’s long-term equity incentive plans (the “Equity Plans”) provide for grants of stock options, stock appreciation\nrights, restricted stock and performance awards to directors, officers and other employees and persons who engage in services for the\nCompany. The purpose of the Equity Plans is to provide these individuals with incentives to maximize stockholder value and otherwise\ncontribute to the Company’s success and to enable the Company to attract, retain and reward the best available persons for positions\nof responsibility. 1,500,000 shares of common stock were authorized for issuance under each Equity Plan when it was adopted, subject\nto adjustment in the event of a reorganization, stock split, merger or similar change in the Company’s corporate structure or in\nthe outstanding shares of common stock. The Company’s Compensation Committee administers the Equity Plans, although the Company’s\nBoard of Directors also has the authority to administer the Equity Plans and to take all actions that the Compensation Committee is otherwise\nauthorized to take under the Equity Plans. The terms and conditions of each award made under an Equity Plan, including vesting requirements,\nare set forth in a written agreement with the recipient that is consistent with the terms of the relevant Equity Plan. As of March 28,\n2026 the Company’s long-term equity incentive plans were the 2017 Equity Plan, which expires in 2027, and the 2021 Equity Plan,\nwhich expires in 2031. As of March 28, 2026 there were 78,573 and 1,500,000 shares available for future awards under the 2017 and 2021\nEquity Plans, respectively.\n\n \n\n*Stock\nOptions.* Under the Equity Plans, the Compensation Committee or the Board may approve the award of non-qualified stock options. The\nCompensation Committee may not, however, approve an award to any one person (other than Dr. Michael J. Hartnett) in any calendar year\nfor options to purchase common stock equal to more than 10% of the total number of shares authorized under the relevant Equity Plan.\nThe Compensation Committee will approve the exercise price and term of any option in its discretion; however, the exercise price may\nnot be less than 100% of the fair market value of a share of common stock on the date of grant. The Equity Plans also authorize the Compensation\nCommittee to award incentive stock options conforming to the requirements of Section 422 of the Internal Revenue Code, but to date no\nsuch options have been awarded. As of March 28, 2026, there were 210,439 outstanding options under the 2017 Equity Plan, 58,646 of which\nwere exercisable, and no outstanding options under the 2021 Equity Plan.\n\n \n\n*Restricted\nStock.* Under the Equity Plans, the Compensation Committee may approve the award of restricted stock subject to the conditions and\nrestrictions, and for the duration that it determines in its discretion. Under each of the 2017 and 2021 Equity Plans, the number of\nshares that may be used for restricted stock awards may not exceed 50% of the total authorized number of shares under that Equity Plan.\nAs of March 28, 2026, there were 91,226 and zero shares of restricted stock outstanding under the 2017 and 2021 Equity Plans, respectively.\n\n \n\n59\n\n \n\n \n\n*Performance\nAwards.* The Compensation Committee may approve performance awards contingent upon achievement by the recipient, or by the Company,\nof set goals and objectives regarding specified performance criteria, over a specified performance cycle. Awards may include specific\ndollar-value target awards, performance units the value of which is established at the time of grant, and/or performance shares the value\nof which is equal to the fair market value of a share of common stock on the date of grant. The value of a performance award may be fixed\nor fluctuate on the basis of specified performance criteria. A performance award may be paid out in cash and/or shares of common stock\nor other securities. Certain senior executive officers receive performance awards in the form of stock options, restricted stock and/or\nunrestricted stock.\n\n \n\n*Stock\nAppreciation Rights.* The Compensation Committee may approve the grant of stock appreciation rights, or SARs, subject to the terms\nand conditions contained in the Equity Plans. The exercise price of an SAR must equal the fair market value of a share of the Company’s\ncommon stock on the date the SAR is granted. Upon exercise of an SAR, the grantee will receive an amount in shares of our common stock\nequal to the difference between the fair market value of a share of common stock on the date of exercise and the exercise price of the\nSAR, multiplied by the number of shares as to which the SAR is exercised. There were no SARs issued or outstanding under the Plans as\nof March 28, 2026.\n\n \n\n*Amendment\nand Termination of the Equity Plans.* Except as otherwise provided in an award agreement, the Board of Directors, without approval\nof the stockholders, may amend or terminate any Equity Plan, except that no amendment will become effective without prior approval of\nthe stockholders of the Company if stockholder approval would be required by applicable law or regulations, including if required (i)\nunder the provisions of Section 409A or any successor thereto, (ii) under the provisions of Section 422 of the Code or any successor\nthereto, or (iii) by any listing requirement of the principal stock exchange on which the common stock is then listed. Subject to the\nprovisions of an award agreement, which may be more restrictive, no termination of an Equity Plan may materially and adversely affect\nany of the rights or obligations of any award recipient, without his or her written consent, under any award of options or other incentives\nprevious granted under the relevant Equity Plan.\n\n \n\nA\nsummary of the status of the Company’s stock options outstanding as of March 28, 2026 and changes during the year then ended is\npresented below. All cashless exercises of options are handled through an independent broker.\n\n \n\n   Number Of\nCommon\nStock\nOptions   Weighted\nAverage\nExercise Price\nPer Share   Weighted\nAverage\nContractual\nLife (Years)   Intrinsic\nValue \n\nOutstanding, March 29, 2025   314,019   $199.24    3.7   $39.7 \n\nAwarded   46,079    438.51           \n\nExercised   (143,994)   168.20           \n\nForfeitures   (5,541)   268.70           \n\nExpirations   (124)   144.04           \n\nOutstanding, March 28, 2026   210,439   $271.07    4.3   $55.0 \n\n                     \n\nExercisable, March 28, 2026   58,646   $206.41    3.2   $19.1 \n\n \n\nThe\nfair value for the Company’s options was estimated at the date of grant using the Black-Scholes option pricing model with the following\nweighted-average assumptions, which are updated to reflect current expectations of the dividend yield, expected life, risk-free interest\nrate and using historical volatility to project expected volatility:\n\n \n\n   Fiscal Year Ended \n\n   March 28,\n2026   March 29,\n2025   March 30,\n2024 \n\nDividend yield   0.00%   0.00%   0.00%\n\nExpected weighted-average life (yrs.)   5.0    5.0    5.0 \n\nRisk-free interest rate   3.90%   3.87%   4.20%\n\nExpected volatility   32.61%   45.95%   46.71%\n\n \n\n60\n\n \n\n \n\nThe\nweighted average fair value per share of options granted was $155.35 in fiscal 2026, $134.48 in fiscal 2025 and $99.92 in fiscal 2024.\n\n \n\nThe\nCompany recorded $3.2 (net of taxes of $1.0) in compensation expense in fiscal 2026 related to option awards. As of March 28, 2026, there\nwas $13.7 of unrecognized compensation costs related to options, which is expected to be recognized over a weighted average period of\n3.6 years. The total intrinsic value of options exercised in fiscal 2026, 2025 and 2024 was $34.1, $33.2 and $22.9, respectively.\n\n \n\nOf\nthe total options outstanding at March 28, 2026, 207,852 were either fully vested or are expected to vest. These have a weighted average\nexercise price of $270.06, an intrinsic value of $54.5 and a weighted average contractual term of 4.3 years.\n\n \n\nA\nsummary of the status of the Company’s restricted stock outstanding as of March 28, 2026 and the changes during the year then ended\nis presented below.\n\n \n\n  \nNumber\nOf\nRestricted\n\nStock\nShares  \nWeighted-\n\nAverage\n\nGrant Date\n\nFair Value \n\nNon-vested, March 29, 2025 \n 132,812  \n$234.18 \n\nGranted \n 23,705  \n 413.89 \n\nVested \n (62,101) \n 218.32 \n\nForfeitures \n (3,190) \n 274.85 \n\nNon-vested, March\n28, 2026 \n 91,226  \n$290.25 \n\n \n\nThe\nweighted average fair value per share of restricted stock granted was $413.89 in fiscal 2026, $294.66 in fiscal 2025 and $205.50 in fiscal\n2024.\n\n \n\nThe\nCompany recorded $8.4 (net of taxes of $2.5) in compensation expense in fiscal 2026 related to restricted stock awards. These awards\nwere valued at the fair market value of the Company’s common stock on the date of issuance and are being amortized as expense over\nthe applicable vesting period. The total fair value of restricted stock awards that vested during fiscal 2026, 2025, and 2024 was $24.3,\n$24.5 and $19.2, respectively. Unrecognized expense for restricted stock was $17.8 at March 28, 2026. This cost is expected to be recognized\nover a weighted average period of approximately 3.0 years. The Company recorded $8.6 in compensation expense in fiscal 2026 related\nto performance-based unrestricted awards.\n\n \n\nA\nsummary of the status of the Company’s liability classified awards outstanding as of March 28, 2026 and the changes during the\nyear then ended is presented below.\n\n \n\n  \nIntrinsic\n\nValue \n\nOutstanding, March 29, 2025 \n$13.3 \n\nGranted \n 7.7 \n\nIssued \n (5.4)\n\nCancelled \n — \n\nChange in fair value \n 6.9 \n\nOutstanding, March\n28, 2026 \n$22.5 \n\n  \n   \n\nEstimated liability\nas of  March 28, 2026 \n$14.3 \n\n \n\nThe\nCompany recorded $10.8 in stock-based compensation expense in fiscal 2026 related to liability awards. As of March 28, 2026 and March\n29, 2025, $11.6 and $5.0, respectively were included in other current liabilities. As of March 28, 2026 and March 29, 2025, $2.7 and\n$3.4, respectively were included in other noncurrent liabilities. As of March 28, 2026, there was $10.9 of unrecognized compensation costs\nrelated to liability awards, which is expected to be recognized over a weighted average period of 1.6 years. The total intrinsic value\nof liability classified awards vested in fiscal 2026, 2025 and 2024 was $14.3, $5.8 and $0.0, respectively.\n\n \n\n61\n\n \n\n** **\n\n**17.\nCommitments and Contingencies**\n\n** **\n\nAs\nof March 28, 2026, approximately 4% of the Company’s hourly employees in the U.S. and abroad were represented by labor unions.\n\n \n\nThe\nCompany enters into U.S. government contracts and subcontracts that are subject to audit by the U.S. government. In the opinion of the\nCompany’s management, the results of such audits, if any, are not expected to have a material impact on the cash flows, financial\ncondition or results of operations of the Company.\n\n \n\nFor\nfiscal 2026, 2025 and 2024, there were no audits by the U.S. government, the results of which, in the opinion of the Company’s\nmanagement, had a material impact on the cash flows, financial condition or results of operations of the Company.\n\n \n\nThe\nCompany is subject to federal, state and local environmental laws and regulations, including those governing discharges of pollutants\ninto the air and water, the storage, handling and disposal of wastes and the health and safety of employees. The Company also may be\nliable under the Comprehensive Environmental Response, Compensation, and Liability Act or similar state laws for the costs of investigation\nand cleanup of contamination at facilities currently or formerly owned or operated by the Company, or at other facilities at which the\nCompany may have disposed of hazardous substances. In connection with such contamination, the Company may also be liable for natural\nresource damages, U.S. government penalties and claims by third parties for personal injury and property damage. Agencies responsible\nfor enforcing these laws have authority to impose significant civil or criminal penalties for non-compliance. The Company believes it\nis currently in compliance with all applicable requirements of environmental laws. The Company does not anticipate material capital expenditures\nfor environmental compliance in fiscal years 2027 or 2028.\n\n \n\nMonitoring\nof contamination is ongoing at some of the Company’s sites. In particular, state agencies have been overseeing groundwater monitoring\nactivities at the Company’s facility in Hartsville, South Carolina. At Hartsville, the Company is monitoring low levels of contaminants\nin the groundwater caused by former operations. Plans are currently underway to conclude monitoring activities. In connection with the\npurchase of the Fairfield, Connecticut facility in 1996, the Company agreed to assume responsibility for completing clean-up efforts\npreviously initiated by the prior owner. The Company submitted data to the state that the Company believes demonstrates that no further\nremedial action is necessary, although the state may require additional clean-up or monitoring. The Company does not believe any further\nremedial action is necessary, therefore, no reserves have been recorded as of March 28, 2026.\n\n \n\nIn\n2022 and 2023, the Company received civil investigative demands from the United States Department of Justice pursuant to the False Claims\nAct. The investigation concerns allegations that the Company submitted false claims in connection with (i) certifying that the Company’s\nemployees were eligible for unemployment insurance benefits and pandemic relief and worked reduced hours and (ii) received grant proceeds\nin violation of the FCA. The Company is cooperating with the investigation. The investigation is ongoing and we currently do not expect the investigation\nto have a material adverse effect on the Company.\n\n \n\nFrom\ntime to time we are involved in litigation that arises in the ordinary course of business, but we do not believe that any such litigation\nin which we are currently involved, either individually or in the aggregate, is likely to have a material adverse effect on our business,\nfinancial condition, operating results, cash flow or prospects.\n\n \n\nThe\nCompany has $3.7 of outstanding standby letters of credit, all of which are under the Revolving Credit Facility.\n\n \n\n62\n\n \n\n \n\n**18.\nOther, Net**\n\n** **\n\nOther,\nnet is comprised of the following:\n\n \n\n  \nFiscal\nYear Ended \n\n  \nMarch\n28,\n\n2026  \nMarch\n29,\n\n2025  \nMarch\n30,\n\n2024 \n\nPlant consolidation and restructuring\ncosts \n$4.1  \n$1.5  \n$2.7 \n\nAcquisition costs and transition services \n 1.6  \n —  \n 0.3 \n\nProvision for credit losses \n 1.1  \n 1.2  \n 0.2 \n\nAmortization of intangibles \n 81.0  \n 71.8  \n 70.4 \n\nOther expense \n 5.3  \n 2.4  \n 1.2 \n\n  \n$93.1  \n$76.9  \n$74.8 \n\n** **\n\nThe Company incurs costs associated with restructuring initiatives\nintended to improve operating performance, profitability and working capital levels. Actions associated with these initiatives may include\nworkforce reductions and to a lesser degree facility exit. Restructuring expenses incurred during fiscal year 2026, 2025, and 2024 were\nprimarily the result of restructuring programs initiated related to severance and facility exit costs. During fiscal year 2026, the Company\nincurred costs of $4.1 for employee severance payment and $2.1 for write-off of inventory, recorded in other, net and cost of sales on\nthe Company’s consolidated statements of operations, associated with the closure of our Dodge China facility within the Industrial\nsegment. Restructuring accruals in fiscal year 2026 included in accrued expenses and other current liabilities on the Company’s\nconsolidated balance sheets, totaled $1.4 to be utilized in fiscal year 2027 for retention costs, employee severance payment and lease\ntermination penalty payment.\n\n** **\n\n**19.\nReportable Segments**\n\n** **\n\nThe\nCompany operates through two operating segments and reports its financial results based on how its chief operating decision maker makes\noperating decisions, assesses the performance of the business, and allocates resources. Our operating segments are our reportable segments.\nThese reportable segments are Aerospace & Defense and Industrial and are described below.\n\n \n\n**Aerospace\n& Defense.** This segment represents the end markets for the Company’s highly engineered bearings and precision components\nused in commercial aerospace, defense aerospace, defense marine, defense ground vehicles, missiles and guided munitions, and space and\nsatellite applications. We supply precision products for many of the commercial aircraft currently operating worldwide and are the primary\nbearing supplier for many of the aircraft OEMs’ product lines. Commercial and defense aerospace customers generally require precision\nproducts, often constructed of special materials and made to unique designs and specifications. Many of our aerospace bearings and engineered\ncomponent products are designed and certified during the original development of the aircraft being served, which often makes us the\nprimary bearing supplier for the life of that aircraft.\n\n \n\n**Industrial.**\nThis segment represents the end markets for the Company’s highly engineered bearings and precision components used in various industrial\napplications including: construction, mining, forestry, energy, agricultural and other machinery; aggregate and cement handling; food\nand beverage manufacturing; grain, and agricultural product handling; metals and mining material handling; chemicals, oil and gas production;\nwarehousing and logistics; manufacturing automation and semiconductor equipment; power generation; waste and water management; rail and\ntransportation.. Our products target market applications in which our engineering and manufacturing capabilities provide us with a competitive\nadvantage in the marketplace.\n\n** **\n\nThe\nCompany’s Chief Operating Decision Maker (CODM) is the President and Chief Executive Officer. The CODM uses segment gross margin\nas the primary measurement of profitability. Throughout the year, the CODM considers budget-to-actual variances and historical trends\nfor gross margin when making decisions about allocating capital to segments.\n\n \n\n63\n\n \n\n \n\nThe\naccounting policies of the reportable segments are the same as those described in Note 2. Segment performance is evaluated based\non segment net sales and gross margin. Where not separately disclosed, corporate costs are allocated to each segment. Identifiable assets\nby reportable segment consist of those directly identified with the segment’s operations.\n\n \n\n \n \nFiscal\nYear Ended\n \n\n \n \nMarch\n28,\n2026\n \n \nMarch\n29,\n2025\n \n \nMarch\n30,\n2024\n \n\nNet External Sales:\n \n \n \n \n \n \n \n \n \n\nAerospace\n& Defense\n \n$\n788.0\n \n \n$\n592.8\n \n \n$\n519.4\n \n\nIndustrial\n \n \n1,082.9\n \n \n \n1,043.5\n \n \n \n1,040.9\n \n\n \n \n$\n1,870.9\n \n \n$\n1,636.3\n \n \n$\n1,560.3\n \n\nCost of Sales:\n \n \n \n \n \n \n \n \n \n \n \n \n\nAerospace\n& Defense\n \n$\n467.3\n \n \n$\n349.7\n \n \n$\n310.6\n \n\nIndustrial\n \n \n573.4\n \n \n \n560.5\n \n \n \n579.2\n \n\n \n \n$\n1,040.7\n \n \n$\n910.2\n \n \n$\n889.8\n \n\nGross Margin:\n \n \n \n \n \n \n \n \n \n \n \n \n\nAerospace\n& Defense\n \n$\n320.7\n \n \n$\n243.1\n \n \n$\n208.8\n \n\nIndustrial\n \n \n509.5\n \n \n \n483.0\n \n \n \n461.7\n \n\n \n \n$\n830.2\n \n \n$\n726.1\n \n \n$\n670.5\n \n\nReconciliation\nof gross margin to income before income taxes:\n \n \n \n \n \n \n \n \n \n \n \n \n\nSelling,\ngeneral and administrative\n \n$\n(316.1\n)\n \n$\n(279.3\n)\n \n$\n(253.5\n)\n\nOther, net\n \n \n(93.1\n)\n \n \n(76.9\n)\n \n \n(74.8\n)\n\nInterest expense,\nnet\n \n \n(49.8\n)\n \n \n(59.8\n)\n \n \n(78.7\n)\n\nOther\nnon-operating (expense)/income\n \n \n(1.9\n)\n \n \n1.8\n \n \n \n(1.7\n)\n\nIncome\nbefore income taxes\n \n$\n369.3\n \n \n$\n311.9\n \n \n$\n261.8\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n**Total Assets:**\n \n \n \n \n \n \n \n \n \n \n \n \n\nAerospace\n& Defense\n \n$\n1,470.7\n \n \n$\n1,010.8\n \n \n$\n798.6\n \n\nIndustrial\n \n \n3,558.3\n \n \n \n3,594.0\n \n \n \n3,779.6\n \n\nCorporate\n \n \n93.7\n \n \n \n80.4\n \n \n \n100.4\n \n\n \n \n$\n5,122.7\n \n \n$\n4,685.2\n \n \n$\n4,678.6\n \n\nCapital Expenditures:\n \n \n \n \n \n \n \n \n \n \n \n \n\nAerospace & Defense\n \n$\n38.0\n \n \n$\n17.5\n \n \n$\n10.6\n \n\nIndustrial\n \n \n19.9\n \n \n \n27.0\n \n \n \n20.4\n \n\nCorporate\n \n \n15.2\n \n \n \n5.3\n \n \n \n2.2\n \n\n \n \n$\n73.1\n \n \n$\n49.8\n \n \n$\n33.2\n \n\nDepreciation & Amortization:\n \n \n \n \n \n \n \n \n \n \n \n \n\nAerospace & Defense\n \n$\n33.3\n \n \n$\n23.3\n \n \n$\n19.6\n \n\nIndustrial\n \n \n88.5\n \n \n \n92.1\n \n \n \n96.3\n \n\nCorporate\n \n \n7.0\n \n \n \n4.6\n \n \n \n3.4\n \n\n \n \n$\n128.8\n \n \n$\n120.0\n \n \n$\n119.3\n \n\nGeographic External Sales:\n \n \n \n \n \n \n \n \n \n \n \n \n\nDomestic\n \n$\n1,668.1\n \n \n$\n1,449.7\n \n \n$\n1,375.4\n \n\nForeign(1)\n \n \n202.8\n \n \n \n186.6\n \n \n \n184.9\n \n\n \n \n$\n1,870.9\n \n \n$\n1,636.3\n \n \n$\n1,560.3\n \n\nGeographic Long-Lived\nAssets:\n \n \n \n \n \n \n \n \n \n \n \n \n\nDomestic\n \n$\n402.3\n \n \n$\n347.0\n \n \n$\n341.5\n \n\nForeign(2)\n \n \n85.4\n \n \n \n70.6\n \n \n \n60.9\n \n\n \n \n$\n487.7\n \n \n$\n417.6\n \n \n$\n402.4\n \n\n \n\n(1)Primarily attributable to Switzerland and Canada.\n\n(2)Primarily attributable to Switzerland and Mexico.\n\n \n\n64\n\n \n\n \n\n**20.\nRelated Party Transactions**\n\n \n\n*Equity\nMethod Investee*\n\n \n\nThe\nCompany has a 20% joint venture interest in CoLinx, which provides logistics and e-business services to its members. The e-business service\nfocuses on information and business services for authorized distributors in the Industrial segment. Total expenses for services provided\nby CoLinx for the fiscal years ended March 28, 2026, March 29, 2025 and March 30, 2024 were $19.4, $18.0 and $18.5, respectively, and\nwere included within cost of sales on the consolidated statements of operations. Amounts outstanding to CoLinx were payables of $2.6\nand $0.9 as of March 28, 2026 and March 29, 2025, respectively, and were included within accounts payable on the consolidated balance\nsheets. No dividends were received from CoLinx during the periods presented. The Company does not have any other equity method investees.\nThe Company does not have any other significant related-party transactions.\n\n \n\n**21.\nVACCO Acquisition**\n\n** **\n\nOn\nJuly 18, 2025, the Company acquired the issued and outstanding capital stock of VACCO from ESCO Technologies Inc. for $276.7. The purchase\nprice was paid with cash, $200.0 of which was drawn from the Revolving Credit Facility, and the remaining $76.7 was paid from cash on\nhand. VACCO, which is based in South El Monte, California, is a manufacturer of valves, manifolds, regulators, filters and other precision\ncomponents and subsystems for space and naval defense applications. This acquisition further broadened our extensive design, engineering\nand manufacturing capabilities, expanded our product portfolio, and added to our strong customer relationships. For federal income tax\npurposes, the Company made a Section 338(h)(10) election that will result in certain tax benefits in the future.\n\n \n\nAcquisition\ncosts incurred in fiscal 2026 were $1.6 and were recorded as period expenses and included within other, net within the consolidated statements\nof operations. The Company accounted for the transaction as a business combination for accounting purposes and VACCO is included within\nthe Aerospace & Defense segment of the business. The purchase price allocation was finalized as of March 28, 2026. The assets acquired\nand liabilities assumed were recorded based on their fair values at the date of acquisition as follows:\n\n \n\n  \nJuly\n18,\n\n2025 \n\nAccounts receivable  \n$11.2 \n\nCurrent contract assets  \n 8.7 \n\nInventory  \n 61.4 \n\nPrepaid expenses  \n 2.0 \n\nProperty, plant and equipment  \n 40.6 \n\nNoncurrent contract assets  \n 2.5 \n\nGoodwill  \n 127.9 \n\nOther intangible assets  \n 123.8 \n\nOther noncurrent assets  \n 0.8 \n\nAccounts payable  \n (6.9)\n\nCurrent contract liabilities  \n (39.0)\n\nAccrued expenses  \n (21.5)\n\nNon-current contract\nliabilities  \n (34.8)\n\nNet assets acquired  \n$276.7 \n\n \n\nThe\ngoodwill associated with this acquisition is the result of expected synergies from combining operations of the acquired business with\nthe Company’s operations and intangible assets that do not qualify for separate recognition, such as an assembled workforce.\n\n \n\nThe\nfair value of the identifiable intangible assets of $123.8 was determined using the income approach and consists primarily of customer\nrelationships, funded backlog, and a trade name. Specifically, a multi-period, excess earnings method was utilized for the customer relationships\nand funded backlog, and the relief-from-royalty method was utilized for the trade name. The fair value of these intangible assets is\nbeing amortized on a straight-line basis between four and 22 years.\n\n \n\n**22.\nSubsequent Events**\n\n \n\nSince\nMarch 28, 2026, the Company paid down $27.0 on the Term Loan, reducing the outstanding balance to $146.0.\n\n \n\nOn\nApril 17, 2026, the Company’s subsidiary, Schaublin SA, entered into a secured credit line agreement with UBS Switzerland AG for\napproximately CHF 9.8. On April 27, 2026, Schaublin SA borrowed CHF 6.7 to finance the expansion of a facility in Poland. The loan matures\non April 25, 2036, and has an annual fixed interest rate of 2.00%.\n\n \n\n65"}