O'Reilly Auto Parts 2013 Annual Report Download - page 47

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FORM 10-K
41
Item 7A. Quantitative and Qualitative Disclosures about Market Risk
We are subject to interest rate risk to the extent we borrow against our unsecured revolving credit facility (the “Revolving Credit Facility”)
with variable interest rates based on either a Base Rate or Eurodollar Rate, as defined in the credit agreement governing the Revolving
Credit Facility. Historically, we had entered into interest rate swap contracts to mitigate our exposure to interest rate risks associated
with borrowings against our previous credit facility with variable interest rates; however, as of December 31, 2013, we did not have any
interest rate swap contracts and had no outstanding borrowings under our Revolving Credit Facility.
We had outstanding fixed rate debt of $1.40 billion and $1.10 billion as of December 31, 2013 and 2012, respectively. The fair value of
our fixed rate debt was estimated at $1.41 billion and $1.20 billion as of December 31, 2013 and 2012, respectively, which was determined
by reference to quoted market prices.
We invest certain of our excess cash balances in short-term, highly-liquid instruments with maturities of 90 days or less. We do not
expect any material losses from our invested cash balances and we believe that our interest rate exposure is minimal. As of December
31, 2013, our cash and cash equivalents totaled $231 million.