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Interest Rate Swap Agreements
 9 Months Ended
Dec. 31, 2012
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Interest Rate Swap Agreements

6. Interest Rate Swap Agreements

The Company utilizes interest rate swap agreements to manage exposure to variability in expected cash flows attributable to interst rate risk. The swap agreements, in effect, convert a portion of the LIBOR priced Line 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 swap agreements:

 

     Nine months ended December 31,  
     2012      2011  

Notional amounts at April 1

    $ —         $ —     

New contracts

      50,000,000         —     

Matured contracts

      —           —     
  

 

 

     

 

 

  

Notional amounts at December 31

    $ 50,000,000       $ —     
  

 

 

     

 

 

  

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. On July 30, 2012, the Company entered into an interest rate swap agreement with an effective date of August 13, 2012 a notional amount of $25.0 million, a fixed rate of interest of 0.87% and a maturity date of August 14, 2017. The changes in the fair value of interest of interest rate swap agreements (unrealized gains and losses) are recorded in earnings. The Company does not use interest rate swap agreements 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
December 31,		      Nine months ended
December 31,		  
     2012     2011      2012      2011  

Periodic change in fair value of interest rate swap agreements

    $ (37,348 )    $  —         $ 645,772       $ —     

Periodic settlement differentials included in interest expense

      91,468        —           184,892       $  —     

Total

    $ 54,120      $ —         $ 830,664       $ —     

The Company records realized losses from the swap agreements in the interest expense line item of the consolidated statement of income. The following table summarizes the variable rate (LIBOR) received and fixed rate paid under the swap agreements.

 

     Three months  ended
December 31,		      Nine months  ended
December 31,		  
     2012     2011      2012     2011  

Variable rate received

      0.21 %      —           0.24 %      —     

Fixed rate paid

      0.94 %      —           0.95 %      —