FTNTFortinet

Customers the company names as a large share of revenue or receivables (it must name any worth 10% of revenue).

“Additionally, a small number of distributors represents a large percentage of our revenue and accounts receivable, and one distributor accounted for 32% of our total net accounts receivable as of December 31, 2025.”

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“Six distributor customers who purchase directly from us accounted for 67% and 69% of our total net accounts receivable in the aggregate as of December 31, 2025 and 2024, respectively.”

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“Segment Information in Part II, Item 8 of this Annual Report on Form 10-K for distributor customers accounted for 10% or more of our revenue or net accounts receivable.”

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“Segment Information for distributor customers accounted for 10% or more of our revenue or net accounts receivable.”

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Parts or manufacturing that depend on one or a few suppliers.

“Moreover, the implementation of these compliance measures could adversely affect the sourcing, availability and pricing of materials used in the manufacture of our products to the extent that there may be only a limited number of suppliers that are able to meet our sourcing requirements, which would make it more difficult to obtain such materials in sufficient quantities or at competitive prices.”

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“Our reliance on a limited number of suppliers involves several additional risks, including:”

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“We rely on a small number of manufacturing partners, with the majority of manufacturing in Taiwan and U.S., to manufacture our products, and some of the chips and other components of our products used by the contract manufacturers are available from limited or sole sources of supply.”

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Pending cases, settlements and what the company has set aside for them.

“We accrue for a loss contingency if a loss is probable and the amount of the loss can be reasonably estimated.”

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New “We record accruals for litigation contingencies when a loss is probable and reasonably estimable, based on management’s assessment of the expected outcome and currently available information.”

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New “As of December 31, 2025 and 2024, litigation loss contingency accruals associated with outstanding matters were not material.”

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New “On September 22, 2025, a securities class action was filed against us, our chief executive officer, our chief technology officer, our current chief financial officer and our former chief financial officer in the United States District Court, Northern District of California, captioned Oklahoma Firefighters Pension and Retirement System v.”

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New “On October 16, 2025, a securities class action was filed against us, our chief executive Officer, our current chief financial officer and our former chief financial officer in the same court, captioned State of Rhode Island Office of the General Treasurer v.”

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Promises to pay someone else's debts or losses if they cannot.

“In some contracts, our exposure under these indemnification provisions is limited by the terms of the contracts to certain defined limits, such as the total amount paid by our customer under the agreement.”

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Conditions in loan agreements that, if broken, can make debt due early.

“As of December 31, 2025 and 2024, we accrued interest payable of $4.7 million, and there are no financial covenants with which we must comply.”

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Contracts the company must pay for later: purchase obligations, take-or-pay deals.

New “These inventory purchase commitments as of December 31, 2025 totaled $810.6 million, an increase of $219.5 million compared to $591.1 million as of December 31, 2024, as we continued to work with contract manufacturers and suppliers to optimize our inventory and purchase commitments position based on growth trends in customer demand.”

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New “As of December 31, 2025 and 2024, the liability for these inventory purchase commitments was $26.7 million and $54.0 million, respectively, and was recorded in accrued liabilities on our consolidated balance sheets.”

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“As of December 31, 2025, we had $810.6 million of non-cancelable inventory purchase commitments with our independent contract manufacturers.”

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New “As of December 31, 2025 and December 31, 2024, the liability for these inventory purchase commitments was $26.7 million and $54.0 million, respectively, and was recorded in accrued liabilities on our consolidated balance sheets.”

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“The expense related to such accrued liability for inventory purchase commitments were not material for the year ended December 31, 2025 and 2024, respectively, and $85.9 million for the year ended December 31, 2023, and was recorded in cost of product revenue on the consolidated statements of income.”

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