Annual report pursuant to Section 13 and 15(d)

Derivative Financial Instruments

Derivative Financial Instruments
12 Months Ended
Dec. 31, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments


At December 31, 2013, we had one interest rate swap with a notional amount of approximately $1.5 million, entered into on February 6, 2006, related to the Company’s Series 1999 New York Industrial Revenue Bond, which effectively fixed the rate at 3.99% plus a spread based on the Company’s leverage ratio on this obligation through February 1, 2016. In November 2014, the Company terminated the interest rate swap in connection with the redemption of the underlying Series 1999 New York Industrial Revenue Bonds (See Note 6 - Long-term Debt and Notes Payable).

An interest rate swap entered into on March 19, 2009 related to the Company’s term note issued January 30, 2009, was terminated in the third quarter of 2013 with no significant impact to the results of our operations.

At December 31, 2013, the fair value of the interest rate swap was a liability of $0.1 million, which is included in other liabilities at such date (See Note 14 - Fair Value).

Activity in AOCI related to these derivatives is summarized below:


(In thousands)    2014      2013      2012  

Derivative Balance at the Beginning of the Year in AOCI

   $ (69    $ (142    $ (256










Net Deferral in AOCI of Derivatives:

Net Decrease (Increase) in Fair Value of Derivatives

  4      2      (34

Tax Effect

  (2   —        14   









  2      2      (20










Net Reclassification from AOCI into Earnings:

Reclassification from AOCI into Earnings – Interest Expense

  103      109      209   

Tax Effect

  (36   (38   (75









  67      71      134   










Net Change in Derivatives for the Year

  69      73      114   










Derivative Balance at the End of the Year in AOCI

$ —      $ (69 $ (142










To the extent the interest rate swaps are not perfectly effective in offsetting the change in the value of the payments being hedged; the ineffective portion of these contracts is recognized in earnings immediately as interest expense. Ineffectiveness, if any, was not significant for the years ended December 31, 2014, 2013 and 2012. The Company classifies the cash flows from hedging transactions in the same category as the cash flows from the respective hedged items.