MiniMed Group, Inc. 10-Q

Item 3. Quantitative and Qualitative Disclosures About Market Risk Due to the global nature of our operations, we are exposed to currency exchange rate changes, which may cause fluctuations in earnings, cash flows, assets and liabilities. At times, we use foreign currency forward contracts intended to economically hedge certain exposures to reduce the impacts from changes in foreign currency exchange rates. These derivative instruments are not designated as hedging instruments for accounting purposes under ASC 815. As of July 31, 2026, the aggregate gross notional amount of outstanding foreign currency forward contracts was approximately $ 499 million. Additional information regarding these derivative instruments is included in Note 6. “Financial Instruments,” to the condensed consolidated financial statements included in this Quarterly Report on Form 10-Q. A sensitivity analysis of changes in the fair value of outstanding foreign currency forward contracts at July 31, 2026 indicated that, if the U.S. dollar uniformly strengthened or weakened by 10% against the currencies underlying these contracts, the fair value of the contracts would change by approximately $50 million. Gains and losses on the derivative instruments would generally be offset by corresponding gains and losses on the underlying foreign currency denominated monetary assets and liabilities being hedged. Accordingly, the sensitivity analysis presented above does not reflect the offsetting impacts of the underlying exposures.