Quarterly report pursuant to Section 13 or 15(d)

Derivative Financial Instruments

Derivative Financial Instruments
3 Months Ended
Mar. 29, 2014
Derivative Instruments And Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments

17) Derivative Financial Instruments

At March 29, 2014, we had an 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 fixes the rate at 3.99% plus a spread based on the Company’s leverage ratio on this obligation through February 1, 2016.

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 March 29, 2014 and December 31, 2013, the fair value of the interest rate swap was a liability of $0.1 million which is included in other liabilities (See Note 14 - Fair Value). Amounts expected to be reclassified to earnings in the next twelve months are not expected to be significant.

Activity in AOCI related to these derivatives is summarized below:


    Three Months Ended  
(In thousands)   March 29,
    March 30,

Derivative balance at the beginning of the period in AOCI

  $ (69   $ (142

Net deferral in AOCI of derivatives:


Net increase in fair value of derivatives

    14        (14

Tax effect

    (4     5   






    10        (9







Net reclassification from AOCI into earnings:


Reclassification from AOCI into earnings – interest expense

    15        37   

Tax effect

    (5     (13






    10        24   







Net change in derivatives for the period

    20        15   







Derivative balance at the end of the period in AOCI

  $ (49   $ (127