{"url_path":"/sec/qrvo/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":"2026-05-08","source_url":"https://www.sec.gov/Archives/edgar/data/1604778/0001628280-26-032873-index.html","accession_number":"0001628280-26-032873","cik":"0001604778","ticker":"QRVO","issuer_name":"Qorvo, Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1604778/0001628280-26-032873-index.html","primary_entity_key":"0001604778","primary_entity_name":"Qorvo, Inc."},"word_count":616,"has_tables":true,"body_markdown":"ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.\n\nFinancial Risk Management\n\nThe primary objective of our financial risk management activities is to reduce the negative financial impact resulting from changes in interest rates, foreign currency exchange rates and commodity prices (the \"Underlying Exposures\"). We manage these Underlying Exposures through operational means and balance sheet management, as well as through the use of various financial instruments when deemed appropriate. The method and extent to which we are able to reduce the financial impact related to the Underlying Exposures may vary over time. Similarly, there can be no assurance that our financial risk management activities will be successful in mitigating the financial impact resulting from movements in the Underlying Exposures.\n\nInterest Rate Risk\n\nWe may be exposed to interest rate risk via the terms of the Revolving Facility. If the Revolving Facility were to be drawn, it would bear interest at a variable rate. Refer to Note 9 of the Notes to Consolidated Financial Statements for further information. As of March 28, 2026, we did not have any outstanding borrowings under the Revolving Facility.\n\nForeign Currency Exchange Rate Risk\n\nAs a global company, our results are affected by movements in currency exchange rates. Our exposure may increase or decrease over time as our foreign business levels fluctuate in the countries where we have operations, and these changes could have a material impact on our financial results. The functional currency for most of our international operations is the U.S. dollar.  We have foreign operations in Asia and Europe, and a significant portion of our\n\n52\n\n[Table of Contents](#i20702a1530574cc7a4597a4ae0a64f2c_7)\n\nrevenue is derived from sales to customers outside the U.S. Our international revenue is primarily denominated in U.S. dollars. Operating expenses and certain working capital items related to our foreign-based operations are, in some instances, denominated in the local foreign currencies and therefore are affected by changes in the U.S. dollar exchange rate in relation to foreign currencies, such as the Euro, Renminbi and Singapore Dollar. If the U.S. dollar weakens compared to these and other currencies, our operating expenses for foreign operations will be higher when remeasured back into U.S. dollars. We seek to manage our foreign currency exchange risk in part through operational means.\n\nFor fiscal 2026, we incurred a foreign currency gain of $1.0 million as compared to a loss of $0.3 million in fiscal 2025, which is recorded in \"Other income, net\" in the Consolidated Statements of Operations.\n\nOur financial instrument holdings, including foreign receivables, cash and payables at March 28, 2026, were analyzed to determine their sensitivity to foreign exchange rate changes. In this sensitivity analysis, we assumed that the change in one currency's rate relative to the U.S. dollar would not have an effect on other currencies' rates relative to the U.S. dollar. All other factors were held constant. If the U.S. dollar declined in value 10% in relation to the re-measured foreign currency instruments, our net income would have decreased by approximately $2.7 million in fiscal 2026. If the U.S. dollar increased in value 10% in relation to the re-measured foreign currency instruments, our net income would have increased by approximately $2.2 million in fiscal 2026.\n\nCommodity Price Risk\n\nWe routinely use precious metals in the manufacture of our products. Supplies for such commodities may from time to time become restricted, or general market factors and conditions may affect the pricing of such commodities. We also have an active reclamation process to capture any unused gold. While we attempt to mitigate the risk of increases in commodity-related costs, there can be no assurance that we will be able to successfully safeguard against potential short-term and long-term commodity price fluctuations.\n\n53\n\n[Table of Contents](#i20702a1530574cc7a4597a4ae0a64f2c_7)"}