Derivative Financial Instruments

12 Months Ended

Dec. 31, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Derivative Financial Instruments

The following table lists the derivative financial instrument assets and (liabilities) held by us as of December 31, 2013 (in thousands):

Notional Amount			Index	Rate		Fair Value			Instrument	Maturity
$	200,000		LIBOR	1.23	%	$	(2,078	)	Swap	3/29/2017
100,000			LIBOR	0.86		(729		)	Swap	6/15/2016
50,000			LIBOR	1.39		1,350			Swap	7/17/2019
105,000			LIBOR	1.24		3,723			Swap	7/17/2019
27,618		(a)	LIBOR	4.98		(2,246		)	Swap	5/1/2020

The following table lists the derivative financial instrument assets and (liabilities) held by us as of December 31, 2012 (in thousands):

Notional Amount			Index	Rate		Fair Value			Instrument	Maturity
$	17,304	(b)	LIBOR	3.79	%	$	(459	)	Swap	9/28/2013
75,000		(b)	LIBOR	1.07		(659		)	Swap	12/31/2013
200,000			LIBOR	1.23		(5,180		)	Swap	3/29/2017
100,000			LIBOR	0.86		(1,310		)	Swap	6/15/2016
50,000			LIBOR	1.39		(909		)	Swap	7/17/2019
105,000			LIBOR	1.24		(853		)	Swap	7/17/2019

(a) We assumed the interest rate swap in December 2013 as part of an acquisition, see Note 3.

(b) We terminated the interest rate swaps in March 2013.

As of December 31, 2013 and 2012, the gross fair value of our derivative financial instruments was as follows (in thousands):

	Asset Derivatives					Liability Derivatives
	December 31, 2013			December 31, 2012		December 31, 2013			December 31, 2012
Derivatives Not Designated as Hedging Instruments:	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Interest rate swaps	Receivables and other assets	$	5,073	n/a	n/a	Derivative financial instruments	$	5,053	Derivative financial instruments	$	9,370

There were no derivatives offset in our accompanying consolidated balance sheets as of December 31, 2013 and 2012. As of December 31, 2013 and 2012, we had derivatives subject to enforceable master netting arrangements which allow for net cash settlement with the respective counterparties (in thousands):

	December 31, 2013							December 31, 2012
	Gross Amounts		Amounts Subject to Enforceable Master Netting Arrangements			Net Amounts		Gross Amounts		Amounts Subject to Enforceable Master Netting Arrangements		Net Amounts
Asset derivatives	$	5,073	$	(2,078	)	$	2,995	$	—	$	—	$	—
Liability derivatives	5,053		(2,078		)	2,975		9,370		—		9,370

For the years ended December 31, 2013, 2012 and 2011, the derivative financial instruments had the following effect on our accompanying consolidated statements of operations (in thousands):

Derivatives Not Designated as Hedging Instruments:	Location of Gain (Loss) Recognized	Year Ended December 31,
		2013		2012			2011
Interest rate swaps	Net gain (loss) on change in the fair value of derivative financial instruments	$	10,796	$	(7,578	)	$	(562	)
Interest rate cap	Net gain (loss) on change in the fair value of derivative financial instruments	—		(89		)	(294		)

We have agreements with each of our interest rate swap derivative counterparties that contain a provision whereby if we default on certain of our unsecured indebtedness, then our counterparties could declare us in default on our interest rate swap derivative obligations resulting in an acceleration of the indebtedness. In addition, we are exposed to credit risk in the event of non-performance by our derivative counterparties. We believe we mitigate the credit risk by entering into agreements with credit-worthy counterparties. We record counterparty credit risk valuation adjustments on interest rate swap derivative assets in order to properly reflect the credit quality of the counterparty. In addition, our fair value of interest rate swap derivative liabilities is adjusted to reflect the impact of our credit quality. As of December 31, 2013, there have been no termination events or events of default related to our interest rate swaps, except for our voluntary terminations as discussed above.