Quarterly report pursuant to Section 13 or 15(d)

Derivative Financial Instruments

v2.4.0.8
Derivative Financial Instruments
 9 Months Ended
Sep. 27, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments

17) Derivative Financial Instruments

At September 27, 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 September 27, 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). On September 18, 2014, the Company gave notice of its intention to terminate the interest rate swap in the fourth quarter of 2014 in connection with the redemption of the underlying Series 1999 New York Industrial Revenue bonds (See Note 6 – Long-term Debt and Notes Payable).

Activity in AOCI related to these derivatives is summarized below:

 

     Nine Months Ended     Three Months Ended  
(In thousands)    Sept. 27,
2014		     Sept. 28,
2013		     Sept. 27,
2014		     Sept. 28,
2013		  

Derivative balance at the beginning of the period in AOCI

    $ (69 )    $ (142 )    $ (77 )    $ (104 ) 

Net deferral in AOCI of derivatives:

         

Net (decrease) increase in fair value of derivatives

      (15 )      11        31        22   

Tax effect

      4        (4 )      (12 )      (8 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  
     (11 )      7        19        14   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net reclassification from AOCI into earnings:

         

Reclassification from AOCI into earnings – interest expense

      45        90        11        20   

Tax effect

      (15 )      (32 )      (3 )      (7 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  
     30        58        8        13   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net change in derivatives for the period

      19        65        27        27   
  

 

 

    

 

 

    

 

 

    

 

 

  

Derivative balance at the end of the period in AOCI

    $ (50 )    $ (77 )    $ (50 )    $ (77 )