Quarterly report pursuant to Section 13 or 15(d)

Derivative Financial Instruments

v2.3.0.15
Derivative Financial Instruments
 9 Months Ended
Sep. 30, 2011
Derivative Financial Instruments [Abstract]  
Derivative Financial Instruments
7.   Derivative Financial Instruments
 
    The Company entered into two variable-to-fixed interest rate swap agreements as a strategy to manage the floating rate risk on the Term Loan borrowings under the Credit Agreement. The two agreements fix the interest rate on a notional amount of $73.0 million of borrowings at 3.878% for the period beginning June 27, 2011 and terminating May 14, 2013. The notional amount of the swap agreements will decrease correspondingly with amortization of the Term Loan. We will not apply hedge accounting to the agreements and, accordingly, the Company will report the mark-to-market change in the fair value of the interest rate swaps in earnings. For the quarter ended September 30, 2011, the Company recognized in earnings an immaterial $0.05 million loss. For the nine months ended September 30, 2011, the Company recognized in earnings a $0.2 million loss on interest rate swaps.