Note 7 - Derivative Financial Instruments

9 Months Ended

Sep. 30, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities Disclosure [Text Block]

NOTE 7. DERIVATIVE FINANCIAL INSTRUMENTS

The Company’s interest rate swap agreement had an initial notional amount of $40.0 million and was used to manage exposure to interest rate changes on the senior term loan.  The swap effectively converted a portion of the Company’s variable rate debt under the senior term loan to a fixed rate for a period of two years and without exchanging the notional principal amounts. On September 30, 2013, the interest rate swap agreement matured and was not renewed.

Under this agreement, the Company received a floating rate based on the 90-day LIBOR rate and paid a fixed rate of 4.68%, which included the applicable margin of 4.00%, on the outstanding notional amount. The swap fixed rate was structured to mirror the payment terms of the senior term loan for the period hedged.  The fair value of the swap at inception was zero.

The fair value effect on the financial statements from the interest rate swap designated as a cash flow hedge was as follows:

	September 30, 2013		December 31, 2012
Other long-term liabilities	$	-	$	60

	Three Months Ended September 30,					Nine Months Ended September 30,
	2013		2012			2013		2012
Gain (loss) recognized in other comprehensive income, net of tax	$	12	$	(14	)	$	36	$	(51	)