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 31, 2018:



Type	Notional Amount			Effective Date	Fixed Rate	Variable Rate
Interest rate swap	$	25,000		September 1, 2016 through September 1, 2021	3.105%	1 Month LIBOR
Interest rate swap	$	25,000		September 1, 2015 through September 1, 2021	3.304%	1 Month LIBOR
Interest rate swap	$	6,942	(1)	November 7, 2014 through November 7, 2024	4.500%	1 Month LIBOR
Interest rate swap	$	5,294	(2)	January 7, 2017 through January 7, 2025	4.300%	1 Month LIBOR

(1) Interest rate swap notional amount amortizes by $35 monthly to maturity.

(2) Interest rate swap notional amount amortizes by $26 monthly to maturity.

The following table summarizes the fair values of derivative instruments included in the Company's financial statements:



	Location on Consolidated Balance Sheets	Fair Value
	Location on Consolidated Balance Sheets	March 31, 2018		December 30, 2017
Asset Derivatives:
Derivatives designated as hedging instruments:
Interest rate swaps	Other Assets	$	120	$	—
Total Asset Derivatives		$	120	$	—

Liability Derivatives:
Derivatives designated as hedging instruments:
Interest rate swaps, current portion	Accrued Expenses	$	606	$	842
Interest rate swaps, long-term portion	Other Long-Term Liabilities	698		1,387
Total Liability Derivatives		$	1,304	$	2,229

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 31, 2018			April 1, 2017
Derivatives designated as hedging instruments:
Cash flow hedges - interest rate swaps	$	804		$	57

	Amount of Gain or (Loss) Reclassified from AOCIL on the effective portion into Income (1)(2)
	Three Months Ended
	March 31, 2018			April 1, 2017
Derivatives designated as hedging instruments:
Cash flow hedges - interest rate swaps	$	(228	)	$	(359	)


(1)	The amount of gain (loss) reclassified from AOCIL is included in interest expense on the Company's financial statements.


(2)	The amount of loss expected to be reclassified from AOCIL into earnings during the next 12 months subsequent to March 31, 2018 is $606.

The amount of gain (loss) recognized in income on the ineffective portion of interest rate swaps, if any, is included in other expense, net on the Company's Consolidated Condensed Statements of Operations. There was no ineffective portion for the periods presented.