Derivative Instruments and Hedging Activities

12 Months Ended

Feb. 28, 2013

Derivative Instruments and Hedging Activities [Abstract]

Derivative Instruments and Hedging Activities

(7) Derivative Instruments and Hedging Activities

The Company uses, at times, derivative financial instruments to manage its exposure to interest rate fluctuations on its floating rate debt. On July 7, 2008, the Company entered into a three-year Interest Rate Swap Agreement (the “SWAP”) for a notional amount of $40.0 million which expired on July 22, 2011. The SWAP effectively fixed the LIBOR rate for the Company’s floating rate debt at 3.79%.

The Company accounts for its derivatives as cash flow hedges and records them as either assets or liabilities in the balance sheet, measures those instruments at fair value and recognizes changes in the fair value of derivatives in earnings in the period of change, unless the derivative qualifies as an effective hedge that offsets certain exposures, at which time the changes in fair value would be recorded in Accumulated Other Comprehensive Income. During fiscal year 2012, the Company incurred an additional $0.6 million in interest expense related to the SWAP.