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Interest Rate Swap Agreements
 3 Months Ended
Jun. 30, 2012
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Interest Rate Swap Agreements

6. Interest Rate Swap Agreements

The Company utilizes interest rate swaps agreements to manage exposure to variability in expected cash flows attributable to interst rate risk. 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. As of March 31, 2012, the Company did not have any outstanding interest rate swap agreements. The following table summarizes the activity in the notional amounts of interest rate swaps:

Three months ended June 30,
20122011

Notional amounts at April 1

$— $—

New contracts

25,000,000—

Matured contracts

— —

Notional amounts at June 30

$25,000,000$—

On June 1, 2012, the Company entered into an interst rate swap agreement with an effective date of June 13, 2012, a notional amount of $25.0 million, a fixed rate of interest of 1.00% and a maturity date of June 13, 2017. The changes in the fair value of interest of interest rate swaps (unrealized gains and losses) are recorded in earnings. The Company does not use interst rate swaps for speculative purposes. Such instruments continue to be intended for use as ecomonic hedges.

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

Three months ended June 30,
20122011

Periodic change in fair value of interest rate swaps

$209,101$—

Periodic settlement differentials included in interest expense

15,818—

Pre-tax loss recognized in income

$224,919$—

The Company recorded realized losses from the swap agreement in the interest expense line item of the consolidated statement of income. The following table summarizes the variable rate received and fixed rate paid under the swap agreement.

Three months ended June 30,
20122011

Variable rate received

0.24% —

Fixed rate paid

1.00% —