{"url_path":"/sec/aci/10-k/2026/item-7a","section_key":"item-7a","section_title":"Item 7A Quantitative and Qualitative Disclosures About Market Risk","topic":"sec","document":{"doc_type":"10-K","doc_date":"2026-04-27","source_url":"https://www.sec.gov/Archives/edgar/data/1646972/0001646972-26-000032-index.html","accession_number":"0001646972-26-000032","cik":"0001646972","ticker":"ACI","issuer_name":"Albertsons Companies, Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1646972/0001646972-26-000032-index.html","primary_entity_key":"0001646972","primary_entity_name":"Albertsons Companies, Inc."},"word_count":420,"has_tables":true,"body_markdown":"Item 7A - Quantitative and Qualitative Disclosures About Market Risk\n\nWe are exposed to market risk from a variety of sources, including changes in interest rates and energy prices. We have from time to time selectively used derivative financial instruments to reduce these market risks. Our market risk exposures related to interest rates and energy prices are discussed below.\n\nInterest Rate Risk and Long-Term Debt\n\nWe are exposed to market risk from fluctuations in interest rates. From time to time, we manage our exposure to interest rate fluctuations through the use of interest rate swaps. At the time of entering into interest rate swap contracts, our risk management objective and strategy is to utilize them to protect us against adverse fluctuations in interest rates by reducing our exposure to variability in cash flows relating to interest payments on a portion of our outstanding debt. All of our interest rate swaps expired in March 2023. Our exposure to changes in Term SOFR primarily relates to our ABL Facility which had a $425.0 million outstanding balance as of February 28, 2026. Therefore, we estimate that a 100 basis point increase on our variable interest rates would increase our interest expense by approximately $4 million per year.\n\nThe table below provides information about debt instruments that are sensitive to changes in interest rates, and presents principal amounts due and related weighted average interest rates by expected maturity dates (dollars in millions):\n\nFiscal 2026Fiscal 2027Fiscal 2028Fiscal 2029Fiscal 2030ThereafterTotalFair Value\n\nLong-Term Debt\n\nFixed Rate - Principal payments\n$60.1 $906.6 $44.0 $2,477.9 $397.0 $4,316.2 $8,201.8 $8,224.9 \n\nWeighted average interest rate (1)\n7.76%6.64%6.60%4.26%7.74%5.80%5.54%\n\nVariable Rate - Principal payments$425.0 $— $— $— $— $— $425.0 $425.0 \n\nWeighted average interest rate (1)4.92%0%0%0%0%0%4.92%\n\n(1) Excludes debt discounts and deferred financing costs.\n\nEnergy Price Risk\n\nWe have entered into fixed price contracts to purchase electricity and natural gas for a portion of our energy needs. We expect to take delivery of these commitments in the normal course of business, and, as a result, these commitments qualify as normal purchases. We also manage our exposure to changes in diesel prices utilized in our distribution process through the use of short-term heating oil derivative contracts. These contracts are economic\n\n47\n\n[Table of Contents](#i04215854cf2748c6bf450001f66c5329_7)\n\nhedges of price risk and are not designated or accounted for as hedging instruments for accounting purposes. Changes in the fair value of these instruments are recognized in earnings. We do not believe that these energy swaps would cause a material change to our financial position.\n\n48\n\n[Table of Contents](#i04215854cf2748c6bf450001f66c5329_7)"}