{"url_path":"/sec/qvcdq/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/1254699/0001254699-26-000011-index.html","accession_number":"0001254699-26-000011","cik":"0001254699","ticker":"QVCDQ","issuer_name":"QVC Group, Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1254699/0001254699-26-000011-index.html","primary_entity_key":"0001254699","primary_entity_name":"QVC INC"},"word_count":562,"has_tables":true,"body_markdown":"Item 3. Quantitative and Qualitative Disclosures about Market Risk\n\nQVC is exposed to market risk in the normal course of business due to ongoing investing and financial activities and the conduct of operations by 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. QVC has established procedures and internal processes governing the management of market risks and the use of financial instruments to manage exposure to such risks.\n\nInterest rate risk\n\nQVC is exposed to changes in interest rates primarily as a result of borrowing activities. Over the long-term, QVC manages the exposure to interest rates by maintaining what QVC believes is an appropriate mix of fixed and variable rate debt.\n\nThe table below summarizes the Company’s debt obligations, related interest rates and fair value of debt at March 31, 2026. As 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\n(in millions, except percentages)Remainder of 20262027202820292030ThereafterTotalFair Value\n\nFixed rate debt (1)$— 44 72 605 — 1,425 2,146 928 \n\nWeighted average interest rate on fixed rate debt— %4.8 %4.4 %6.9 %— %6.0 %6.2 %N/A\n\nVariable rate debt$2,900 — — — — — 2,900 2,900 \n\nAverage interest rate on variable rate debt5.4 %— %— %— %— %— %5.4 %N/A\n\n(1) Amounts exclude the issue discounts on the 5.45% Senior Secured Notes due 2034 and 5.95% Senior Secured Notes due 2043.\n\nN/A - Not applicable.\n\nForeign currency exchange rate risk\n\nQVC is exposed to foreign exchange rate fluctuations related to the monetary assets and liabilities and the financial results of its 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 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 other comprehensive income as a separate component of stockholder's 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 transactions) or realized upon settlement of the transactions. Cash flows from operations in foreign countries are translated at the average rate for the period. Accordingly, QVC may experience economic loss and a negative impact on earnings and equity with respect to its holdings solely as a result of foreign currency exchange rate fluctuations. QVC's reported Adjusted OIBDA for the three months ended March 31, 2026 would have been impacted by approximately $1 million for every 1% change in foreign currency exchange rates relative to the U.S. Dollar.\n\nThe Credit Agreement historically provided QVC with the ability to borrow in multiple currencies to somewhat mitigate foreign currency exchange rate risks. As of March 31, 2026, no borrowings in foreign currencies were outstanding.\n\nI-30\n\n[Table of Contents](#id5ae62bfbf7a4dcb9af63275483b44a5_7)"}