Derivative and Hedging Activity

12 Months Ended

Dec. 31, 2013

Derivative and Hedging Activity

(4) Derivative and Hedging Activity

At December 31, 2013 and 2012, our derivative financial instrument comprised of the following (in thousands):

Agreement	Fixed interest rate			Expiration date		2013 Notional amounts		2012 Notional amounts		2013 Fair value		2012 Fair value
Interest rate swap		6.31	%		January 2017	$	5,533		5,840		682		816

On January 4, 2007, we entered into a ten-year interest rate swap agreement for the original notional principal amount of $7.7 million whereby we will pay a fixed interest rate of 6.31%, as compared to interest at a floating rate equal to one-month LIBOR plus 125 basis points. The interest rate swap amortization schedule is identical to the promissory note amortization schedule, which has an effective date of January 4, 2007, monthly notional reductions and an expiration date of January 4, 2017 (see note 9).

For each of the years ended December 31, 2013 and 2012, we reclassified from other comprehensive income to interest expense $0.3 million.  During the years ended December 31, 2013 and 2012, we recognized in other comprehensive income (loss), net of taxes- an unrealized gain (loss) on derivative instrument of $0.2 million and $(0.1) million, respectively.