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Note 8 - Derivative Financial Instrument
 9 Months Ended
Sep. 30, 2015
Notes to Financial Statements  
Derivative Instruments and Hedging Activities Disclosure [Text Block]
Note 8. Derivative Financial Instrument
From time to time, we enter into interest rate swaps to fix a portion of our interest expense. We do not enter into derivative instruments for any purpose other than to manage interest rate exposure to fluctuations in the one-month LIBOR benchmark. That is, we do not engage in interest rate speculation using derivative instruments.
 
As of September 30, 2015, we had a $25 million interest rate swap outstanding with U.S. Bank Dealer Commercial Services. This interest rate swap matures on June 15, 2016 and has a fixed rate of 5.587% per annum. The variable rate on the interest rate swap is the one-month LIBOR rate. At September 30, 2015, the one-month LIBOR rate was 0.20% per annum, as reported in the Wall Street Journal.
 
Typically, we designate all interest rate swaps as cash flow hedges and, accordingly, we record the change in fair value for the effective portion of these interest rate swaps in comprehensive income rather than net income until the underlying hedged transaction affects net income. If a swap is no longer designated as a cash flow hedge and the forecasted transaction remains probable or reasonably possible of occurring, the gain or loss recorded in accumulated other comprehensive loss is recognized in income as the forecasted transaction occurs. If the forecasted transaction is probable of not occurring, the gain or loss recorded in accumulated other comprehensive loss is recognized in income immediately. See Note 7.
 
The estimated amount that we expect to reclassify from accumulated other comprehensive loss to net income within the next twelve months is $0.8 million at September 30, 2015.
 
The fair value of our derivative instruments was included in our Consolidated Balance Sheets as follows (in thousands):
 
Balance Sheet Information
  
Fair Value of Liability Derivatives
 
Derivatives Designated as
Hedging Instruments
  
Location in Balance Sheet
 
September 30,
2015
 
Interest Rate Swap Contract
  
Accrued liabilities
   $ 877  
   
Other long-term liabilities
     -  
        $ 877  
 
Balance Sheet Information
 
Fair Value of Liability Derivatives
 
Derivatives Designated as
Hedging Instruments
  
Location in Balance Sheet
 
December 31,
201
4
 
Interest Rate Swap Contract
  
Accrued liabilities
   $ 1,194  
   
Other long-term liabilities
     556  
        $ 1,750  
 
The effect of derivative instruments on our Consolidated Statements of Operations was as follows (in thousands):
Derivatives in Cash Flow Hedging Relationships
 
Amount of Gain Recognized in Accumulated OCI (Effective Portion)
 
Location of Loss Reclassified from Accumulated OCI into Income
(Effective Portion)
 
Amount of Loss Reclassified from Accumulated OCI into Income
(Effective Portion)
 
Location of Loss Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
 
Amount of Loss Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
 
                             
Three Months Ended
September 30, 2015
        
Floor plan
       
Floor plan
       
Interest Rate Swap Contract
   $ 160  
interest expense
   $ (104 )
interest expense
   $ (195 )
                             
Three Months Ended
September 30, 2014
        
Floor plan
       
Floor plan
       
Interest Rate Swap Contract
   $ 179  
interest expense
   $ (119 )
interest expense
   $ (184 )
 
Derivatives in Cash Flow Hedging Relationships
 
Amount of Gain Recognized in Accumulated OCI (Effective Portion)
 
Location of Loss Reclassified from Accumulated OCI into Income
(Effective Portion)
 
Amount of Loss Reclassified from Accumulated OCI into Income
(Effective Portion)
 
Location of Loss Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
 
Amount of Loss Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
 
                             
Nine Months Ended
September 30, 2015
        
Floor plan
       
Floor plan
       
Interest Rate Swap Contract
   $ 412  
interest expense
   $ (336 )
interest expense
   $ (563 )
                             
Nine Months Ended
September 30, 2014
        
Floor plan
       
Floor plan
       
Interest Rate Swap Contract
   $ 381  
interest expense
   $ (370 )
interest expense
   $ (543 )
 
See also Note 7
.