Dorman Products, Inc. 10-Q

ITEM 3. Quantitative and Qualitative Disclosures About Market Risk Our market risk is the potential loss arising from adverse changes in interest rates. All our available accounts receivable sales programs and credit incur factoring costs (sales programs) or bear interest (borrowings) at rates tied to LIBOR or alternative discount rates. Under the terms of our customer-sponsored programs to sell accounts receivable, a change in either LIBOR or the discount rates would affect the amount of factoring costs we incur, and the amount of cash we receive upon the sales of accounts receivable under these programs. A one-percentage-point increase in LIBOR or the discount rates on the accounts receivable sales programs would have increased our factoring costs for the three and six months ended June 25, 2022 by approximately $2.0 million and $4.1 million, respectively. Under the terms of the New Facility, a change in either the lender’s base rate or LIBOR would affect the rate at which we could borrow funds thereunder. A one-percentage-point increase in LIBOR or base rate would have increased our interest expense on our variable rate debt under the New Facility by approximately $0.6 million and $1.2 million for the three and six months ended June 25, 2022, respectively. Historically we have not used derivative financial instruments for trading or to speculate on changes in interest rates or commodity prices. We are not exposed to any significant market risks, foreign currency exchange risks, or interest rate risks from the use of derivative instruments, as we did not hold any derivative instruments at June 25, 2022.