Harris Teeter 2007 Annual Report Download - page 29

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25
Item 7A. Quantitative and Qualitative Disclosures about Market Risk
The Company is subject to interest rate risk on its fixed interest rate debt obligations. Generally, the fair
value of debt with a fixed interest rate will increase as interest rates fall, and the fair value will decrease as
interest rates rise. As of September 30, 2007, the Company had no significant foreign exchange exposure and no
significant outstanding derivative transactions.
The table below presents principal cash flows and related weighted average interest rates by expected
maturity dates for the Company’s significant fixed interest rate debt obligations ($128.6 million of Senior Notes
due at various dates through 2017):
2008 2009 2010 2011 2012 Thereafter Total Fair Value
Fixed rate debt obligations . . . . $7,143 $7,143 $7,143 $7,142 $ — $ 100,000 $128,571 $146,136
Weighted average interest rate . 6.48 % 6.48 % 6.48 % 6.48 % — 7.64 % 7.38 %
For a more detail description of fair value, refer to the Note entitled “Financial Instruments” of the Notes
to Consolidated Financial Statements in Item 8 hereof.