Item 7A. Quantitative and Qualitative Disclosures About Market Risk
Item 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We enter into debt obligations primarily to support general corporate purposes, including the operations of our subsidiaries. We are subject to interest rate risk on our senior notes. For fixed rate debt, changes in interest rates generally affect the fair value of the debt instrument, but not our earnings or cash flows. We generally have no obligation to prepay our debt before maturity, and, as a result, interest rate risk and changes in fair market value should not have a significant impact on our fixed rate debt until we are required or elect to refinance or repurchase such debt. Under our current policies, we do not use interest rate derivative instruments to manage our exposure to changes in interest rates.
The following tables present principal cash flows by scheduled maturity, weighted average effective interest rates and the estimated fair value of our long-term fixed rate debt obligations as of November 30, 2021 and 2020 (dollars in thousands):
As of November 30, 2021 and for the Years Ending November 30, Fair Value at
November 30,
2021
2022 2023 2024 2025 2026 Thereafter Total
Long-term debt
Fixed Rate $ 350,000 $ 350,000 $ — $ — $ — $ 990,000 $ 1,690,000 $ 1,796,500
Weighted Average Effective Interest Rate 7.7 % 7.5 % — % — % — % 5.3 % 6.2 %
As of November 30, 2020 and for the Years Ending November 30, Fair Value at
November 30,
2020
2021 2022 2023 2024 2025 Thereafter Total
Long-term debt
Fixed Rate $ — $ 800,000 $ 350,000 $ — $ — $ 600,000 $ 1,750,000 $ 1,924,250
Weighted Average Effective Interest Rate — % 7.4 % 7.5 % — % — % 6.0 % 7.0 %
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