Quarterly report pursuant to Section 13 or 15(d)

Derivative Financial Instruments

v2.4.0.8
Derivative Financial Instruments
 6 Months Ended
Jun. 28, 2014
Derivative Instruments And Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments

17) Derivative Financial Instruments

At June 28, 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 June 28, 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 16 - 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:

 

     Six Months Ended     Three Months Ended  
(In thousands)    June 28,
2014		     June 29,
2013		     June 28,
2014		     June 29,
2013		  

Derivative balance at the beginning of the period in AOCI

    $ (69 )    $ (142 )    $ (49 )    $ (127 ) 

Net deferral in AOCI of derivatives:

         

Net increase in fair value of derivatives

      (45 )      (11 )      (59 )      3   

Tax effect

      15        4        19        (1 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  
     (30 )      (7 )      (40 )      2   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net reclassification from AOCI into earnings:

         

Reclassification from AOCI into earnings – interest expense

      34        70        17        33   

Tax effect

      (12 )      (25 )      (5 )      (12 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  
     22        45        12        21   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net change in derivatives for the period

      (8 )      38        (28 )      23   
  

 

 

    

 

 

    

 

 

    

 

 

  

Derivative balance at the end of the period in AOCI

    $ (77 )    $ (104 )    $ (77 )    $ (104 )