DERIVATIVES

The Company's earnings, cash flows and financial position are exposed to market risks relating to interest rates. It is the Company's policy to minimize its exposure to adverse changes in interest rates and manage interest rate risks inherent in funding the Company with debt. The Company addresses this risk by maintaining a mix of fixed and floating rate debt and entering into interest rate swaps for a portion of its variable rate debt to minimize interest rate volatility.

The following is a summary of the Company's interest rate swaps as of March 30, 2013:



Type	Notional Amount			Effective Date	Fixed Rate	Variable Rate
Interest rate swap	$	5,018	*	April 1, 2003 through April 1, 2013	4.54%	1 Month LIBOR
Interest rate swap	$	25,000		July 11, 2010 through May 11, 2013	1.42%	1 Month LIBOR
Interest rate swap	$	10,000		October 3, 2011 through September 1, 2016	1.33%	1 Month LIBOR
Interest rate swap	$	10,000		March 1, 2013 through September 1, 2016	1.62%	1 Month LIBOR
Interest rate swap	$	5,000		June 1, 2013 through September 1, 2016	1.70%	1 Month LIBOR

* Interest rate swap has an amortizing notional amount.

The following table summarizes the fair values of derivative instruments included in the Company's Consolidated Condensed Balance Sheets:



	Location on Consolidated Condensed Balance Sheets	Fair Value
	Location on Consolidated Condensed Balance Sheets	March 30, 2013		December 29, 2012
Asset Derivatives:
Derivatives not designated as hedging instruments:
Interest rate swaptions	Other Assets	$	—	$	—
Total Asset Derivatives		$	—	$	—

Liability Derivatives:
Derivatives designated as hedging instruments:
Interest rate swaps, current portion	Accrued Expenses	$	362	$	439
Interest rate swaps, long term portion	Other Long-Term Liabilities	572		647
Total Liability Derivatives		$	934	$	1,086

The following tables summarize the pre-tax impact of derivative instruments on the Company's financial statements:



	Amount of Gain or (Loss) Recognized in AOCIL on the effective portion of the Derivative
	Three Months Ended
	March 30, 2013			March 31, 2012
Derivatives designated as hedging instruments:
Cash flow hedges - interest rate swaps	$	20		$	(130	)

	Amount of Gain or (Loss) Reclassified from AOCIL on the effective portion into Income (1)(2)
	Three Months Ended
	March 30, 2013			March 31, 2012
Derivatives designated as hedging instruments:
Cash flow hedges - interest rate swaps	$	(145	)	$	(156	)

	Amount of Gain or (Loss) Recognized on the ineffective portion in Income on Derivative (3)
	Three Months Ended
	March 30, 2013			March 31, 2012
Derivatives designated as hedging instruments:
Cash flow hedges - interest rate swaps	$	—		$	—



	Amount of Gain or (Loss) Recognized in Income on Derivative (4)
	Three Months Ended
	March 30, 2013		March 31, 2012
Derivatives not designated as hedging instruments:
Interest rate swaptions	$	—	$	(14	)


(1)	The amount of gain (loss) reclassified from AOCIL is included in interest expense on the Company's Consolidated Condensed Statements of Operations.


(2)	The amount of loss expected to be reclassified from AOCIL into earnings during the next 12 months subsequent to March 30, 2013 is $362.


(3)	The amount of gain (loss) recognized in income on the ineffective portion of interest rate swaps, if any, is included in other (income) expense, net on the Company's Consolidated Condensed Statements of Operations.


(4)	The amount of gain (loss) recognized in income for derivatives not designated as hedging instruments is included in other (income) expense, net on the Company's Consolidated Condensed Statements of Operations.