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Interest Rate Swap Agreements
 9 Months Ended
Dec. 31, 2013
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 interest rate swap agreements convert 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 swap agreements:

 

     Nine months ended December 31,  
     2013      2012  

Notional amounts at April 1

    $ 50,000,000       $ —     

New contracts

      —           50,000,000   

Matured contracts

      —           —     
  

 

 

     

 

 

  

Notional amounts at December 31

    $ 50,000,000       $ 50,000,000   
  

 

 

     

 

 

  

Interest rate swap agreements effective as of December 31, 2013 and during the three and nine months ended December 31, 2013 and 2012 are detailed as follows:

 

Date Entered

   

Effective Date

    Notional Amount      Fixed Rate
Of Interest		    

Maturity Date

June 1, 2012

    June 13, 2012    $ 25,000,000         1.00 %    June 13, 2017

July 30, 2012

    August 13, 2012    $ 25,000,000         0.87 %    August 14, 2017

The interest rate swap agreements are not designated as hedges. 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 swap agreements for speculative purposes. Such instruments continue to be intended for use as ecomonic hedges.

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

 

     Three months ended
December 31,		     Nine months ended
December 31,		  
     2013     2012     2013     2012  

Periodic change in fair value of interest rate swap agreements

    $ (98,346 )    $ (37,348 )    $ (681,989 )    $ 645,772   

Periodic settlement differentials included in interest expense

      95,641        91,468        284,680        184,892   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total

    $ (2,705 )    $ 54,120      $ (397,309 )    $ 830,664   
  

 

 

    

 

 

    

 

 

    

 

 

  

The Company recorded 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 received and fixed rate paid under the swap agreements.

 

     Three months ended
December 31,		     Nine months ended
December 31,		  
     2013     2012     2013     2012  

Variable rate received

      0.17 %      0.21 %      0.18 %      0.24 % 

Fixed rate paid

      0.94 %      0.94 %      0.94 %      0.95 %