AUTOZONE INC 10-Q

Item 3. Quantitative and Qualitative Disclosures about Market Risk At November 20, 2021, the only material change to our instruments and positions that are sensitive to market risk since the disclosures in our Annual Report on Form 10-K for the year ended August 28, 2021 was our Revolving Credit Agreement, which was amended and restated on November 15, 2021, and increased our borrowing capacity from $2.0 billion to $2.25 billion. The fair value of our debt was estimated at $5.6 billion as of November 20, 2021, and $5.7 billion as of August 28, 2021, based on the quoted market prices for the same or similar debt issues or on the current rates available to us for debt having the same remaining maturities. Such fair value was greater than the carrying value of debt by $306.0 million and $413.1 million at November 20, 2021 and August 28, 2021, respectively. We did not have any variable rate debt outstanding at November 20, 2021. The carrying value of debt reflects its face amount adjusted for any unamortized debt issuance costs and discounts. We had outstanding fixed rate debt of $5.3 billion, net of unamortized debt issuance costs of $28.7 million at November 20, 2021 and $5.3 billion, net of unamortized debt issuance costs of $30.2 million at August 28, 2021. A one percentage point increase in interest rates would have reduced the fair value of our fixed rate debt by $239.1 million at November 20, 2021.