Note 11 - Derivative Financial Instrument

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Derivative Instruments and Hedging Activities Disclosure [Text Block]

(11)

  

     

Derivative Financial Instruments

From time to time, we have entered into interest rate swaps to fix a portion of our interest expense. We do not enter into derivative instruments for any purpose other than to manage interest rate exposure to fluctuations in the

one

-month LIBOR benchmark. That is, we do not engage in interest rate speculation using derivative instruments. Typically, we designate all interest rate swaps as cash flow hedges and, accordingly, we record the change in fair value for the effective portion of these interest rate swaps in comprehensive income rather than net income until the underlying hedged transaction affects net income. If a swap is no longer designated as a cash flow hedge and the forecasted transaction remains probable or reasonably possible of occurring, the gain or loss recorded in accumulated other comprehensive loss is recognized in income as the forecasted transaction occurs. If the forecasted transaction is probable of not occurring, the gain or loss recorded in accumulated other comprehensive loss is recognized in income immediately.

We did not have any amounts associated with derivative contracts recorded on the balance sheet as of

December

31,

2016.

As of

December

31,

2015,

we had

$0.5

million recorded associated with the fair value of our derivative instruments, included as a component of accrued liabilities in our Consolidated Balance Sheets.

The effect of derivative instruments in our Consolidated Statements of Operations was as follows (in thousands):

Derivatives in Cash Flow Hedging Relationships	Amount of gain recognized in Accumulated OCI (effective portion)		Location of loss reclassified from Accumulated OCI into Income (effective portion)	Amount of loss  reclassified from Accumulated OCI into Income (effective portion)			Location of loss recognized in Income on derivative (ineffective portion and amount excluded from effectiveness testing)	Amount of loss recognized in Income on derivative (ineffective portion and amount excluded from effectiveness testing)
For the Year Ended December 31, 2016
Interest rate swap contract	$	233	Floor plan  interest expense	$	(219	)	Floor plan interest expense	$	(352	)
For the Year Ended December 31, 2015
Interest rate swap contract	$	599	Floor plan interest expense	$	(449	)	Floor plan interest expense	$	(758	)
For the Year Ended  December 31, 2014
Interest rate swap contract	$	505	Floor plan interest expense	$	(488	)	Floor plan interest expense	$	(732	)