Interest Rate Swap Agreements

9 Months Ended

Dec. 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 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, 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 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 had 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 had 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,
	2015			2014		2015			2014
Periodic change in fair value of interest rate swap agreements	$	(250,798	)	$	144,999	$	(128,170	)	$	105,878
Periodic settlement differentials included in interest expense		89,360			98,517		278,838			297,355
Total	$	(161,438	)	$	243,516	$	150,668		$	403,233

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,
	2015			2014			2015			2014
Variable rate received		0.24	%		0.16	%		0.21	%		0.15	%
Fixed rate paid		0.94	%		0.94	%		0.94	%		0.94	%