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Interest Rate Swap Agreements
 9 Months Ended
Dec. 31, 2014
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 floating rate debt to a fixed rate, more closely matching the interest rate characteristics of finance receivables.

As of the nine months ended December 31, 2014 and 2013 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 interest rate swap 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 interest rate swap 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 (gains) losses in income are as follows:

 

     Three months ended
December 31,		      Nine months ended
December 31,		  
     2014      2013      2014      2013  

Periodic change in fair value of interest rate swap agreements

    $ 144,999       $ (98,346 )     $ 105,878       $ (681,989 ) 

Periodic settlement differentials included in interest expense

      98,517         95,641         297,355         284,680   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

 $  243,516    $ (2,705 )  $  403,233    $ (397,309 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net realized gains and losses 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 swap agreements.

 

     Three months ended
December 31,		     Nine months ended
December 31,		  
     2014     2013     2014     2013  

Variable rate received

      0.16 %      0.17 %      0.15 %      0.18 % 

Fixed rate paid

      0.94 %      0.94 %      0.94 %      0.94 %