Financial Derivative Instruments

6 Months Ended

Jun. 30, 2012

Financial Derivative Instruments [Abstract]

Financial Derivative Instruments

Note 7.  Financial Derivative Instruments

We utilize interest-rate swap agreements that qualify as cash-flow hedges to manage our exposure to interest rate fluctuations on a portion of our variable-interest rate debt. Our interest-rate swaps increase or decrease the amount of cash paid for interest depending on the increase or decrease of interest required on the variable rate debt. We account for derivative instruments on the balance sheet at fair value.

The fair value of our interest rate swap agreements were determined based on Level 2 inputs. Listed below are the interest-rate swap agreements which lock in our interest rates on existing variable-interest rate debt.

Interest-Rate Swap Agreement Effective Dates	Coverage Amount		Rate
September 2011 - September 2014	$	24,000,000		1.66	%
September 2011 - March 2015	$	24,000,000		1.91	%
September 2011 - September 2015	$	24,000,000		2.14	%

The fair value of our derivatives at June 30, 2012 and December 31, 2011 are recorded as financial derivative instruments under the long-term liabilities section of our balance sheet. The fair value of our derivatives at June 30, 2012 and December 31, 2011 is a net liability of $2,633,000 and $2,469,000, respectively. The cumulative gain or (loss) on the market value of financial derivative instruments is reported as a component of accumulated other comprehensive income (loss) in shareholders' equity, net of tax. If we were to terminate our interest rate swap positions, the cumulative change in fair value at the date of termination would be reclassified from accumulated other comprehensive income (loss), which is classified in shareholders' equity, into earnings in the Consolidated Statements of Operations. The table below illustrates the effect of derivative instruments on consolidated operations for the periods ended June 30, 2012 and 2011, respectively.

(Dollars in thousands)	Gain (Loss) Reported in		Location of Gain/Proceeds Reclassified	Amount of Gain/Proceeds
Derivative Instruments	Accumulated Other Comprehensive Loss		from Accumulated Other	Recognized in Income on Derivative
Cash Flow Hedging Relationships	2012	2011	Comprehensive Income into Income	2012	2011
Interest Rate Contracts	$(99)	$(141)	Interest Expense	$-	$-