{"url_path":"/sec/rbc/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":"2026-05-15","source_url":"https://www.sec.gov/Archives/edgar/data/1324948/0001213900-26-057626-index.html","accession_number":"0001213900-26-057626","cik":"0001324948","ticker":"RBC","issuer_name":"RBC Bearings INC","edgar_url":"https://www.sec.gov/Archives/edgar/data/1324948/0001213900-26-057626-index.html","primary_entity_key":"0001324948","primary_entity_name":"RBC Bearings INC"},"word_count":452,"has_tables":true,"body_markdown":"** **\n\n**ITEM\n7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**\n\n** **\n\nWe\nare exposed to market risks which arise during the normal course of business from changes in interest rates and foreign currency exchange\nrates.\n\n \n\n*Interest\nRates.* We currently have variable rate debt outstanding under the Term Loan and the Revolving Credit Facility. We regularly evaluate\nthe impact of interest rate changes on our net income and cash flow and take action to limit our exposure when appropriate. During the\nthree-year period prior to December 30, 2025, we utilized the Interest Rate Swap to fix a portion of the variable rate interest expense\nassociated with the Term Loan, but the Company does not have an interest rate swap in place as of the date of this Annual Report.\n\n* *\n\n*Foreign\nCurrency Exchange Rates.*As an international company, our operations transact in the following foreign currencies:\n\n \n\n \n●\nAustralia – Australian\nDollar\n \n●\nIndia – Rupee\n\n \n●\nCanada – Canadian Dollar\n \n●\nMexico – Peso\n\n \n●\nChina – Chinese Yuan\n \n●\nPoland – Zloty\n\n \n●\nFrance and Germany – Euro\n \n●\nSwitzerland – Swiss Franc\n\n \n●\nEngland – British Pound\n \n \n\n \n\nAs\na result, we are exposed to risk associated with fluctuating currency exchange rates between the U.S. dollar and these currencies. Foreign\ncurrency transaction gains and losses are included in earnings. Approximately 11% of our net sales were impacted by foreign currency\nfluctuations in fiscal 2026 and fiscal 2025. For those countries outside the U.S. where we\nhave sales, a strengthening in the U.S. dollar or devaluation in the local currency would reduce the value of our local inventory as\npresented in our consolidated financial statements. In addition, a stronger U.S. dollar or a weaker local currency would result in reduced\nnet sales, operating profit and shareholders’ equity due to the impact of foreign exchange translation on our consolidated financial\nstatements. The opposite would be true if the U.S. dollar were to get comparatively weaker to those foreign currencies. Fluctuations\nin foreign currency exchange rates may make our products more expensive or increase our operating costs, affecting our competitiveness\nand our profitability.\n\n \n\nChanges\nin exchange rates between the U.S. dollar and other currencies and volatile economic, political and market conditions in emerging market\ncountries have in the past adversely affected our financial performance and may in the future adversely affect the value of our assets\nlocated outside the United States and our results of operations.\n\n \n\nWe\nperiodically enter into derivative financial instruments to reduce the effect of fluctuations in exchange rates on transactions and account\nbalances denominated in non-functional currencies. As of March 28, 2026, the Company had the Cross Currency Swap, which is discussed\nin “Liquidity and Capital Resources” in Item 7 of this Annual Report.\n\n** **\n\n31"}