Annual report pursuant to Section 13 and 15(d)

Derivative Financial Instruments

v3.3.1.900
Derivative Financial Instruments
 12 Months Ended
Dec. 31, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments
DERIVATIVE FINANCIAL INSTRUMENTS
At December 31, 2013, the Company had one interest rate swap with a notional amount of approximately $1.5 million related to certain industrial revenue bonds. The interest rate swap effectively fixed the interest rate on these obligations through February, 2016. In November 2014, the Company terminated the interest rate swap in connection with the redemption of the underlying bonds.
An interest rate swap related to a 2009 term note was terminated in the third quarter of 2013 with no significant impact to the results of our operations.
Activity in AOCI related to these derivatives is summarized below:
(In thousands)
2014
 
2013
Derivative Balance at the Beginning of the Year in AOCI
$
(69
)
 
$
(142
)
Net Deferral in AOCI of Derivatives:
 
 
 
Net Decrease (Increase) in Fair Value of Derivatives
4

 
2

Tax Effect
(2
)
 
—

 
2

 
2

Net Reclassification from AOCI into Earnings:
 
 
 
Reclassification from AOCI into Earnings – Interest Expense
103

 
109

Tax Effect
(36
)
 
(38
)
 
67

 
71

Net Change in Derivatives for the Year
69

 
73

Derivative Balance at the End of the Year in AOCI
$
—

 
$
(69
)

To the extent the interest rate swaps were not perfectly effective in offsetting the change in the value of the payments being hedged; the ineffective portion of these contracts was recognized in earnings immediately as interest expense. Ineffectiveness, if any, was not significant for the years ended December 31, 2014 and 2013. The Company classified the cash flows from hedging transactions in the same category as the cash flows from the respective hedged items.