{"url_path":"/sec/midd/10-q/2026/item-3","section_key":"item-3","section_title":"Item 3 Quantitative and Qualitative Disclosures About Market Risk","topic":"sec","document":{"doc_type":"10-Q","doc_date":"2026-05-14","source_url":"https://www.sec.gov/Archives/edgar/data/769520/0000769520-26-000032-index.html","accession_number":"0000769520-26-000032","cik":"0000769520","ticker":"MIDD","issuer_name":"MIDDLEBY Corp","edgar_url":"https://www.sec.gov/Archives/edgar/data/769520/0000769520-26-000032-index.html","primary_entity_key":"0000769520","primary_entity_name":"MIDDLEBY Corp"},"word_count":389,"has_tables":true,"body_markdown":"Item 3.      Quantitative and Qualitative Disclosures About Market Risk\n\nInterest Rate Risk\n\nThe company is exposed to market risk related to changes in interest rates. The following table summarizes the maturity of the company’s variable rate debt obligations (in thousands):\n\n2026$44,154 \n\n202743,996 \n\n20281,765,946 \n\n20293,962 \n\n2030 and thereafter15,962 \n\n $1,874,020 \n\nThe company is exposed to interest rate risk on its floating-rate debt. The company has entered into interest rate swaps to fix the interest rate applicable to certain of its variable-rate debt. The company has designated these swaps as cash flow hedges and all changes in fair value of the swaps are recognized in accumulated other comprehensive income. As of April 4, 2026, the fair value of these instruments was an asset of $10.3 million. The change in fair value of these swap agreements in the first three months of 2026 was a loss of $0.7 million, net of taxes. The potential net loss on fair value for such instruments from a hypothetical 10% adverse change in quoted interest rates would not have a material impact on the company's financial position, results of operations and cash flows.\n\nForeign Exchange Derivative Financial Instruments\n\nThe company uses derivative financial instruments, principally foreign currency forward purchase and sale contracts with terms of less than one year, to hedge its exposure to changes in foreign currency exchange rates. The company’s primary hedging activities are to mitigate its exposure to changes in exchange rates on intercompany and third-party trade receivables and payables. The company does not currently enter into derivative financial instruments for speculative purposes. In managing its foreign currency exposures, the company identifies and aggregates naturally occurring offsetting positions and then hedges residual balance sheet exposures. The potential net loss on fair value for such instruments from a hypothetical 10% adverse change in quoted foreign exchange rates would not have a material impact on the company's financial position, results of operations and cash flows. The fair value of the forward contracts was a loss of $0.2 million at the end of the first quarter of 2026.\n\nDerivative financial instruments are recognized in the Condensed Consolidated Balance Sheets as either an asset or a liability measured at fair value. Changes in the market value and the related foreign exchange gains and losses are recorded in the Condensed Consolidated Statements of Comprehensive Income.\n\n25\n\n[Table of Contents](#ia52fc172ca544d0fb7dc09c7e2a05681_7)"}