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. 22 Under the terms of our customer-sponsored programs to sell accounts receivable, a change in LIBOR, Term SOFR, or other reference rates could affect the discount rate and 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 the discount rates on the accounts receivable sales programs would have increased our factoring costs for the three and nine months ended September 24, 2022 by approximately $2.1 million and $6.2 million, respectively. Under the terms of the New Facility, a change in either the 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 $1.8 million for the three and nine months ended September 24, 2022, respectively.