{"url_path":"/sec/qvcaq/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":"2026-05-15","source_url":"https://www.sec.gov/Archives/edgar/data/1355096/0001355096-26-000019-index.html","accession_number":"0001355096-26-000019","cik":"0001355096","ticker":"QVCAQ","issuer_name":"Old QVC Group, Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1355096/0001355096-26-000019-index.html","primary_entity_key":"0001355096","primary_entity_name":"QVC Group, Inc."},"word_count":679,"has_tables":true,"body_markdown":"Item 3.   Quantitative and Qualitative Disclosures about Market Risk\n\nWe are exposed to market risk in the normal course of business due to our ongoing investing and financial activities and the conduct of operations by our subsidiaries in different foreign countries. Market risk refers to the risk of loss arising from adverse changes in stock prices, interest rates and foreign currency exchange rates. The risk of loss can be assessed from the perspective of adverse changes in fair values, cash flows and future earnings. We have established policies, procedures and internal processes governing our management of market risks and the use of financial instruments to manage our exposure to such risks.\n\nWe are exposed to changes in interest rates primarily as a result of our borrowing and investment activities, which include investments in fixed and floating rate debt instruments and borrowings used to maintain liquidity and to fund business operations. The nature and amount of our long-term and short-term debt are expected to vary as a result of future requirements, market conditions and other factors. We manage our exposure to interest rates by maintaining what we believe is an appropriate mix of fixed and variable rate debt. We believe this best protects us from interest rate risk. We have achieved this mix by (i) issuing fixed rate debt that we believe has a low stated interest rate and significant term to\n\nI-39\n\n[Table of Contents](#i02ffaddca05f4bca939b0feb2368d8e0_7)\n\nmaturity, (ii) issuing variable rate debt with appropriate maturities and interest rates and (iii) entering into interest rate swap arrangements when we deem appropriate.\n\nAs discussed above, the QVC Notes have been classified as a current liability in the condensed consolidated Balance Sheet, as of March 31, 2026. The table below reflects the contractual maturities of the QVC Notes.\n\nAs of March 31, 2026, our debt is comprised of the following amounts:\n\n(in millions, except percentages)Remainder of 20262027202820292030ThereafterTotalFair Value\n\nFixed rate debt (1)$— 44 72 1,172 918 1,425 3,631 995 \n\nWeighted average interest rate on fixed rate debt— %4.8 %4.4 %6.6 %6.2 %6.0 %6.2 %N/A\n\nVariable rate debt (1)$2,900 — — — — — 2,900 2,900 \n\nWeighted average interest rate on variable rate debt5.4 %— %— %— %— %— %5.4 %N/A\n\n(1) Amounts are reflected in the table at the outstanding principal amount, assuming the debt instruments will remain outstanding until the stated maturity date, and may differ from the amounts stated in our consolidated balance sheet to the extent debt instruments (i) were issued at a discount or premium or (ii) have elements which are reported at fair value in our consolidated balance sheets. Amounts do not assume additional borrowings or refinancings of existing debt.\n\nQVC Group is exposed to foreign exchange rate fluctuations related primarily to the monetary assets and liabilities and the financial results of QVC's foreign subsidiaries. Assets and liabilities of foreign subsidiaries for which the functional currency is the local currency are translated into U.S. Dollars at period-end exchange rates, and the statements of operations are generally translated at the average exchange rate for the period. Exchange rate fluctuations on translating foreign currency financial statements into U.S. Dollars that result in unrealized gains or losses are referred to as translation adjustments. Cumulative translation adjustments are recorded in accumulated other comprehensive earnings (loss) as a separate component of stockholders' equity. Transactions denominated in currencies other than the functional currency are recorded based on exchange rates at the time such transactions arise. Subsequent changes in exchange rates result in transaction gains and losses, which are reflected in income as unrealized (based on period-end translations) or realized upon settlement of the transactions. Cash flows from our operations in foreign countries are translated at the average rate for the period. Accordingly, QVC Group may experience economic loss and a negative impact on earnings and equity with respect to our holdings solely as a result of foreign currency exchange rate fluctuations. QVC's reported Adjusted OIBDA would have been impacted by $1 million for the three months ended March 31, 2026, for every 1% change in foreign currency exchange rates relative to the U.S. Dollar."}