Risk Management Transactions

12 Months Ended

Dec. 31, 2011

Risk Management Transactions

11. Risk Management Transactions

As part of its financing strategy, the Company may use interest rate swap transactions to manage its exposure to interest rate fluctuations on assets not yet financed with long-term fixed rate debt. During the years ended December 31, 2011, December 31, 2010, and December 31, 2009, the Company had no open interest rate swap positions.

As of December 31, 2011, the Company had $1,304 of net realized losses on derivatives deferred on the Company’s Consolidated Balance Sheet as a component of Accumulated Other Comprehensive Income (Loss) related to prior interest rate swaps for certain of the Company’s long-term debt issuances. During the year ended December 31, 2011, $2,333 of net realized losses on derivatives were charged off in connection with the sale of the Company’s CDO, and have been included as a component of “Gain (loss) on extinguishment of debt” on the Company’s Consolidated Statement of Operations. Within the next twelve months, the Company estimates that $72 of realized losses on derivatives will be reclassified to the Company's Consolidated Statements of Operations as additional interest expense.

The Company classifies the cash flows from derivatives as a financing activity on the Consolidated Statements of Cash Flows.