Item 3. Quantitative and Qualitative Disclosures About Market Risk
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We are exposed to market risk in that the interest payable under our credit facility is based on variable interest rates and therefore is affected by changes in market rates. We do not use interest rate derivative instruments to manage exposure to changes in market interest rates. For the first nine months of fiscal 2020, the weighted average borrowings outstanding were approximately $341,000. Based upon our average borrowing rates under the credit facility during the first nine months of fiscal 2020, an increase of 100 basis points (one percentage point) in such rates would have increased interest expense by approximately $3,000.
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