Interest Rate Derivatives

12 Months Ended

Apr. 26, 2015

Interest Rate Derivatives

Interest Rate Derivatives

15. Interest Rate Derivatives

        We previously had interest rate derivative agreements in order to manage market risk on variable rate loans outstanding. We had an interest rate swap agreement with an aggregate notional value of $50,000 that matured in September 2013. The fair value of our interest rate swap contract as of April 28, 2013 was $794 and was included in accrued interest. We had entered into interest rate cap contracts, which matured in fiscal 2013.

        During fiscal 2010, our interest rate swaps no longer met the criteria for hedge effectiveness and changes in the fair value of the swaps since that date were recorded in derivative income in the consolidated statements of operations. The cumulative loss recorded in other comprehensive income (loss), through the date of ineffectiveness, was amortized into derivative expense over the remaining term of the individual interest rate swap agreements.

        The loss recorded in accumulated other comprehensive income (loss) of our interest rate swap contracts is recorded net of deferred income tax benefits of $149 and $357, as of April 27, 2014 and April 28, 2013, respectively.

        Derivative income related to the change in fair value of interest rate swap contracts is as follows:

	Fiscal Year Ended
	April 27, 2014		April 28, 2013
Derivative income	$	794	$	1,699

        Derivative expense realized associated with the amortization of cumulative loss recorded in other comprehensive income (loss) for the interest rate swaps through the date of ineffectiveness is as follows:

	Fiscal Year Ended
	April 27, 2014			April 28, 2013
Accumulated OCI amortization	$	247		$	594
Change in deferred taxes		149			357
Derivative expense		(396	)		(951	)