Interest Rate Swap Agreements

6 Months Ended

Sep. 30, 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 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.

The following table summarizes the activity in the notional amounts of interest rate swap agreements:

	Six months ended September 30,
	2013		2012
Notional amounts at April 1	$	50,000,000	$	—
New contracts		—		50,000,000
Matured contracts		—		—
Notional amounts at September 30	$	50,000,000	$	50,000,000

Interest rate swap agreements effective as of September 30, 2013 and during the three and six months ended September 30, 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 interest 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 September 30,				Six months ended September 30,
	2013		2012		2013			2012
Periodic change in fair value of interest rate swap agreements	$	249,616	$	474,019	$	(583,643	)	$	683,120
Periodic settlement differentials included in interest expense		95,725		77,606		189,039			93,424
Total	$	345,341	$	551,625	$	(394,604	)	$	776,544

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 September 30,						Six months ended September 30,
	2013			2012			2013			2012
Variable rate received		0.19	%		0.24	%		0.19	%		0.24	%
Fixed rate paid		0.94	%		0.95	%		0.94	%		0.96	%