Derivative Instruments and Hedging Activities
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9 Months Ended |
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Nov. 30, 2011
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Derivative Instruments and Hedging Activities [Abstract] | |
Derivative Instruments and Hedging Activities |
6. Derivative Instruments and Hedging Activities The Company used derivative financial instruments to manage its exposure to interest rate fluctuations on its floating rate $150.0 million revolving credit facility maturing August 18, 2012. On July 7, 2008, the Company entered into a three-year Interest Rate Swap Agreement (“Swap”) for a notional amount of $40.0 million which expired on July 22, 2011. The Swap effectively fixed the LIBOR rate at 3.79%. The Swap was designated as a cash flow hedge, and the fair value at February 28, 2011 was $(586,000), $(372,000), net of deferred taxes. The Swap was reported on the Consolidated Balance Sheet as of February 28, 2011 as current installments of long-term debt with a related deferred charge recorded as a component of other comprehensive income (loss). During the three and nine months ended November 30, 2011, the Company incurred an additional $0 and $571,000, respectively, in interest expense related to the Swap. |