FARMERS SUPPLY ASSOCIATION

f the Plan, participants may direct the Company to defer a portion of their compensation to the Plan, subject to the Internal Revenue Code limitations. The Company provides for an employer matching contribution equal to 50 % of each dollar contributed by the participants up to 6 % of their eligible compensation. The following table outlines the total expense recorded for the matching under the Plan, which is reflected in Selling, general and administrative expenses on the consolidated statements of income: Year Ended December 28, 2025 December 29, 2024 December 31, 2023 $ 10,742 $ 9,570 $ 8,496 16. Income Taxes Income Tax Provision The income tax provision consists of the following: Year Ended December 28, 2025 December 29, 2024 December 31, 2023 U.S. Federal—current $ 118,558 $ 87,601 $ 6

e Company’s board of directors cliff vest in one year . The options expire seven years from grant date. The PSAs are described below. Stock Options Outstanding options only become immediately vested in the event of a change in control (as defined in the applicable team member award agreement) if the grants are not continued or assumed by the acquirer on a substantially equivalent basis. If the options and awards continue or are assumed on a substantially equivalent basis, but employment is terminated by the Company or an acquirer without cause or by the team member for good reason (as such terms are defined in the applicable team member award agreement) within 24 months following the change in control, such options or awards will become immediately vested upon such termination. Under all o

ected by the relative mix of products sold, pricing and promotional strategies, inventory shrinkage and leverage of fixed costs of sales. 37 Table of Contents Selling, general and administrative expenses Selling, general and administrative expenses primarily consist of salaries, wages and benefits costs, share-based compensation, store occupancy costs (including rent, property taxes, utilities, common area maintenance and insurance), advertising costs, buying costs, pre-opening and other administrative costs. Depreciation and Amortization Depreciation and amortization (exclusive of depreciation included in cost of sales) primarily consists of depreciation and amortization for buildings, store leasehold improvements, and equipment. Store closure and other costs, net Store closure and other

a defined contribution benefit plan, the Tractor Supply Company 401(k) Retirement Savings Plan (the “401(k) Plan”), which provides retirement benefits for eligible employees. The Company matches (in cash) 100 % of the employee’s elective contributions up to 3 % of eligible compensation plus 50 % of the employee’s elective contributions from 3 % to 6 % of eligible compensation. In no event shall the total Company match made on behalf of the employee exceed 4.5 % of the employee’s eligible compensation. All current contributions are immediately vested. Company contributions to the 401(k) Plan were approximately $ 22.1 million, $ 20.1 million, and $ 18.8 million during fiscal 2025, 2024, and 2023, respectively. Note 12 – Commitments and Contingencies Contractual Commitments At December 27, 2

pected term will increase compensation expense. Forfeiture Rate — This is the estimated percentage of options granted that are expected to be forfeited or canceled before becoming fully vested. This estimate is based on historical experience. An increase in the forfeiture rate will decrease compensation expense. Dividend Yield — This is the estimated dividend yield for the weighted average expected term of the option granted. An increase in the dividend yield will decrease compensation expense. 58 Table of Contents The Company issues shares for options when exercised. A summary of stock option activity is as follows: Stock Option Activity Options Weighted Average Exercise Price Weighted Average Fair Value Weighted Average Remaining Contractual Term Aggregate Intrinsic Value ( in thousands)

e expressed as a percent of net sales. Fiscal Year 2025 2024 Net sales 100.00 % 100.00 % Cost of merchandise sold (a) 63.58 63.74 Gross margin (a) 36.42 36.26 Selling, general and administrative expenses (a) 23.79 23.39 Depreciation and amortization 3.18 3.00 Operating income 9.45 9.86 Interest expense, net 0.45 0.37 Income before income taxes 9.01 9.49 Income tax expense 1.95 2.09 Net income 7.06 % 7.40 % (a) Our gross margin amounts may not be comparable to those of other retailers since some retailers include all of the costs related to their distribution facility network in cost of merchandise sold and others (like our Company) exclude a portion of these distribution facility network costs from gross margin and instead include them in Selling, general, and administrative expenses; refe