INGLES MARKETS INC 10-K

Item 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS The Company is exposed to changes in interest rates primarily as a result of its borrowing activities, which include borrowings under the Line, real estate and equipment financing, and the Bonds. The Line, along with cash flow from operations, is used to maintain liquidity and fund business operations. The Notes bear a fixed rate of interest and do not expose us to interest rate risk. The nature and amount of the Company’s debt may vary as a result of future business requirements, market conditions and other factors. The definitive extent of the Company’s interest rate risk is not quantifiable or predictable because of the variability of future interest rates and business financing requirements, but the Company does not believe such risk is material. 24 The table below presents principal amounts and related weighted average interest rates by year of maturity for the Company’s debt obligations at September 28, 2024 and September 30, 2023, respectively (in thousands): September 28, 2024 2025 2026 2027 2028 2029 Thereafter Total Fair ‎ Value Line of credit $ — $ — $ — $ — $ — $ — $ — $ — Average variable interest rate — % — % — % — % — % — % — % Long-term debt, variable interest rate (1)(2) $ 13,750 $ 13,750 $ 13,750 $ 8,237 $ 7,750 $ 80,083 $ 137,320 $ 137,320 Average interest rate 6.93 % 6.93 % 6.93 % 6.82 % 6.80 % 6.80 % 6.84 % Recovery Zone Bonds, variable interest rate $ 4,530 $ 4,530 $ 4,530 $ 4,530 $ 4,530 $ 27,260 $ 49,910 $ 49,910 Average year-end interest rate 5.10 % 5.10 % 5.10 % 5.10 % 5.10 % 5.10 % 5.10 % Senior Notes, fixed interest rate $ — $ — $ — $ — $ — $ 350,000 $ 350,000 $ 317,625 Average interest rate — % — % — % — % — % 4.00 % 4.00 % September 30, 2023 2024 2025 2026 2027 2028 Thereafter Total Fair ‎ Value Line of credit $ — $ — $ — $ — $ — $ — $ — $ — Average variable interest rate — % — % — % — % — % — % — % Long-term debt, variable interest rate (1)(2) $ 13,750 $ 13,750 $ 13,750 $ 13,750 $ 8,237 $ 87,833 $ 151,070 $ 151,070 Average year-end interest rate (1)(2) 6.99 % 6.99 % 6.99 % 6.99 % 6.94 % 6.93 % 6.95 % Recovery Zone Bonds, variable interest rate $ 4,530 $ 4,530 $ 4,530 $ 4,530 $ 4,530 $ 31,790 $ 54,440 $ 54,440 Average year-end interest rate 5.20 % 5.20 % 5.20 % 5.20 % 5.20 % 5.20 % 5.20 % Senior Notes, fixed interest rate $ — $ — $ — $ — $ — $ 350,000 $ 350,000 $ 287,875 Average interest rate — % — % — % — % — % 4.00 % 4.00 % (1) Excludes interest rate swap that fixes at 3.962% the interest rate on $18.5 million of variable interest rate debt. (2) Excludes interest rate swap that fixes at 2.998% the interest rate on $116.9 million of variable interest rate debt. The Company will occasionally utilize financial or derivative instruments for interest rate risk management but has typically not utilized highly leveraged financial instruments. On the basis of the fair value of the Company’s market sensitive instruments at September 28, 2024, the Company does not anticipate that near-term changes in interest and exchange rates will result in material near-term losses in future earnings, fair values or cash flows. Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA The Company’s financial statements required by this item are set forth as a separate section of this Annual Report on Form 10-K and incorporated by reference in this Item 8. See Part IV, Item 15 of this Annual Report on Form 10-K. Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE. None.