2.2.0.7 false DERIVATIVE FINANCIAL INSTRUMENTS 10301 - Disclosure - DERIVATIVE FINANCIAL INSTRUMENTS true false false false 1 USD false false Unit12 Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 Unit13 Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 $ 2 DERIVATIVE FINANCIAL INSTRUMENTS 0 us-gaap_DerivativeInstrumentDetailAbstract us-gaap true na duration No definition available. false false false false false true false false false false false false 1 false false false false 0 0 false false false xbrli:stringItemType string No definition available. false 3 DERIVATIVE FINANCIAL INSTRUMENTS 1 us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock us-gaap true na duration No definition available. false false false false false false false false false false false terselabel false 1 false false false false 0 0 <div> <table style="border-collapse: collapse;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr><td valign="top" width="4%" align="left">3.</td> <td valign="top" align="left">DERIVATIVE FINANCIAL INSTRUMENTS </td></tr></table> Periodically, we enter into interest rate swap agreements to reduce our exposure to market risk from changing interest rates under our revolving credit agreements. Under the terms of the swap agreements, we agree to exchange, at specified intervals, the difference between fixed and variable interest amounts calculated by reference to the notional principal amount. Any differences paid or received on our interest rate swap agreements are recognized as adjustments to interest expense over the life of each swap, thereby adjusting the effective interest rate on the underlying obligation. Financial instruments are not held or issued for trading purposes. In order to obtain hedge accounting treatment, any derivatives used for hedging purposes must be designated as, and effective as, a hedge of an identified risk exposure at the inception of the contract. Changes in the fair value of the derivative contract must be highly correlated with changes in the fair value of the underlying hedged item at inception of the hedge and over the life of the hedge contract. Accordingly, we record all derivative instruments as either assets or liabilities in the condensed consolidated balance sheets at their respective fair values. We record the change in the fair value of a derivative instrument designated as a cash flow hedge in other comprehensive income to the extent the derivative is effective, and recognize the change in the condensed consolidated statements of income when the hedged item affects earnings. Our interest rate hedge described below is designated as a cash flow hedge. At both September 30, 2010 and December 31, 2009, we had one interest rate swap agreement in effect with a notional value of $10,000, maturing in October 2011. The swap agreement exchanges the variable rate of 30-day LIBOR to a fixed interest rate of 5.07%. For the quarters and nine months ended September 30, 2010 and 2009, the hedging relationship was determined to be highly effective in achieving offsetting changes in cash flows. We were party to an interest rate swap agreement with a notional amount of $10,000, which matured on October 31, 2009, that was designated as a cash flow hedge and effectively exchanged the variable rate of 30-day LIBOR to a fixed interest rate of 5.04%. For the quarter and nine months ended September 30, 2009, the hedging relationship was determined to be highly effective in achieving offsetting changes in cash flows. The negative fair value of the derivative financial instrument was $519 and $710 at September 30, 2010 and December 31, 2009, respectively, and is included, net of accrued interest, in deferred income taxes and other liabilities in the condensed consolidated balance sheets. See Note 4, "Fair Value Measurements." At September 30, 2010 and December 31, 2009, $312, net of deferred tax benefits of $191 and $432, net of deferred tax benefits of $262, respectively, was included in accumulated other comprehensive loss ("OCL") associated with cash flow hedge. The net change in OCL for the quarters and nine months ended September 30, 2010 and 2009, reflected the reclassification of $76, net of income tax benefit of $46, $152, net of income tax benefit of $92, $225, net of income tax benefit of $138 and $441, net of income tax benefit of $268, respectively, of unrealized losses from accumulated OCL to current period earnings (recorded in interest expense, net in the condensed consolidated unaudited statements of income). The net unrealized loss recorded in accumulated OCL will be reclassified to earnings on a monthly basis as interest payments occur. We estimate that approximately $500 in unrealized losses on the derivative instrument accumulated in OCL are expected to be reclassified to earnings during the next twelve months using a current 30-day LIBOR-based average receive rate (0.33% at September 30, 2010). See Note 5, "Comprehensive Income." </div> 3. 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