Item 7A. Quantitative and Qualitative Disclosures About Market Risk
Item 7A. Quantitative and Qualitative Disclosures About Market Risk
We are exposed to market risks in the ordinary course of our business. Our primary exposure to market risk is interest rate sensitivity.
As of November 30, 2021, we had cash, cash equivalents and investments of $432.9 million. We have invested primarily in money market funds, U.S. treasury securities, corporate debt securities, U.S. government agency securities, commercial papers and municipal securities. To reduce the volatility relating to these exposures, we have put investment and risk management policies and procedures in place. The securities in our investment portfolio are not leveraged and are classified as available-for-sale. We currently do not engage in hedging activities. As of November 30, 2021 and 2020, we have estimated that a hypothetical 100 basis point increase in interest rates would decrease the fair market value of our investment portfolio by $2.9 million and $1.8 million, respectively. Such losses would only be realized if we sold the investments prior to maturity.
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