DERIVATIVES AND HEDGING ACTIVITIES

9 Months Ended

Mar. 30, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVES AND HEDGING ACTIVITIES

NOTE H - DERIVATIVES AND HEDGING ACTIVITIES

Pay Fixed, Receive-Variable Interest Rate Swaps

Objective of the swaps: QMT entered into two separate pay-fixed, receive-variable interest rate swaps with the objective of eliminating the variability in the Company’s interest expense on 50% of its $3,612 thousand Term Loan (the “Term Loan A”) and of its $5,470 thousand Term Loan (the “Term Loan B”) attributable to changes in one month LIBOR*. The Term Loans were made pursuant to the Loan and Security Agreement (the “Agreement”) dated August 8, 2012 between QMT and TD Bank.

The terms of the outstanding swaps as March 30, 2014 were as follows:

Associated Debt	Notional Amount   (thousands)		Effective Date	Fixed Rate Paid			Variable Rate Received	Fair Value   (thousands)		Swap Termination Date
Term Loan A	$	1,234	8-Aug-2012		0.85	%	LIBOR*	$	4	8-Aug-2017
Term Loan B	$	2,562	8-Aug-2012		1.10	%	LIBOR*	$	2	8-Aug-2017

*One month London Interbank Offered Rate

The Company estimated the fair value of these instruments based on a market position at close of business March 30, 2014 and on such basis determined the fair value to be $6 thousand.

Termination of Swap prior to maturity will be settled at market value and may result in a payment to or from borrower determined at the time of termination.

Subsequent to March 30, 2014 the interest rate swaps were terminated, see Note P.