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Interest Rate Swap Agreements
 12 Months Ended
Mar. 31, 2015
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 interest rate risk. The interest rate swap agreements convert a portion of the Company’s floating rate debt to a fixed rate, more closely matching the interest rate characteristics of the Company’s finance receivables. As of the twelve months ended March 31, 2015 and 2014, no new contracts were initiated and no contracts matured.

The Company currently has two interest rate swap agreements. A June 4, 2012 interest rate swap agreement provides for a five-year term in which the Company pays a fixed rate of 1% and receives payments from the counterparty on the 1-month LIBOR rate. This interest rate swap agreement has an effective date of June 13, 2012 and a notional amount of $25,000,000. A July 30, 2012 agreement provides for a five-year term in which the Company pays a fixed rate of 0.87% and receives payments from the counterparty on the 1-month LIBOR rate. This interest rate swap agreement has an effective date of August 13, 2012 and a notional amount of $25,000,000.

The locations and amounts of (losses) gains recognized in income are detailed as follows for the fiscal years ended March 31:

     2015      2014  

Periodic change in fair value of interest rate swap agreements

    $ (364,378 )     $ 688,455   

Periodic settlement differentials included in interest expense

      (392,797 )       (383,028 ) 
  

 

 

     

 

 

  

(Loss) gain recognized in income

 $ (757,175 )  $ 305,427   
  

 

 

     

 

 

  

 

Net realized losses and gains from the interest rate swap agreements were recorded in the interest expense line item of the consolidated statements of income.

The following table summarizes the average variable rates received and average fixed rates paid under the interest rate swap agreements as of March 31:

     2015     2014  

Average variable rate received

      0.16 %      0.18 % 

Average fixed rate paid

      0.94 %      0.94 %