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Interest Rate Swap Agreements
 9 Months Ended
Dec. 31, 2011
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
6. Interest Rate Swap Agreements

6. Interest Rate Swap Agreements

As of December 31, 2011 and March 31, 2011, the Company did not have any outstanding interest rate swap agreements. Based on market conditions, the Company may or may not enter into new interest rate swap agreements during the current fiscal year. The swap agreements, in effect, converted a portion of the floating rate debt to a fixed rate, more closely matching the interest rate characteristics of finance receivables.

The following table summarizes the activity in the notional amounts of interest rate swaps:

Nine months ended December 31,
2011 2010

Notional amounts at April 1

 $ — $ 50,000,000

New contracts

 — —

Matured contracts

 — (40,000,000 )

Notional amounts at December 31

 $ — $ 10,000,000

These interest rate swaps were previously designated as cash flow hedges. Based on credit market events that transpired in October 2008, the Company made an economic decision to elect a prime rate pricing option available under the Line for the month of October 2008. As a result, the critical terms of the interest rate swaps and hedged interest payments were no longer identical and the Company undesignated its interest rate swaps as cash flow hedges. Consequently, beginning in October 2008 changes in the fair value of interest rate swaps (unrealized gains and losses) were recorded in earnings. Unrealized losses previously recorded in accumulated other comprehensive loss were reclassified into earnings as interest payments on the Line affected earnings over the remaining term of the respective swap agreements. The Company did not use interest rate swaps for speculative purposes.

The locations and amounts of losses recognized in income are as follows:

Three months ended
December 31,		 Nine months ended
December 31,
2011 2010 2011 2010

Periodic change in fair value of interest rate swaps

 $ — $ 138,007 $ — $ 759,524

Losses reclassified from accumulated other comprehensive loss

 — (42,251 ) — (281,575 )

— 95,756 — 477,949

Periodic settlement differentials included in interest expense

 — (138,775 ) — (776,886 )

Pre-tax loss recognized in income

 $ — $ (43,019 ) $ — $ (298,937 )

The Company recorded net realized gains and losses from the swap agreements in the interest expense line item of the consolidated statement of income. The following table summarizes the average variable rates received and average fixed rates paid under the swap agreements.

Three months ended
December 31,		 Nine months ended
December 31,
2011 2010 2011 2010

Average variable rate received

 — 0.26 % — 0.29 %

Average fixed rate paid

 — 3.58 % — 3.89 %


 

The following table reconciles net income with comprehensive income:

Three months ended
December 31,		 Nine months ended
December 31,
2011 2010 2011 2010

Net income

 $ 5,362,721 $ 4,474,820 $ 16,185,618 $ 12,033,002

Reclassification adjustment for loss included in net income, net of tax benefit of $34,640 and $91,620, respectively.

 — 26,079 — 173,783

Comprehensive income

 $ 5,362,721 $ 4,500,899 $ 16,185,618 $ 12,206,785