Derivatives (Tables)

9 Months Ended

Sep. 30, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

We held the following interest rate derivatives as of September 30, 2013:



	Derivative Liabilities
Hedged Item	Current Notional Amount		Effective Date	Maturity Date	Future Maximum Notional Amount		Floating Rate	Fixed Rate	Balance Sheet Location	Fair Value
Interest rate derivatives designated as cash flow hedges:
Securitization No. 1	$	222,487	Jun-06	Jun-16	$	222,487	1M LIBOR + 0.27%	5.78%	Fair value of derivative liabilities	$	27,122
Securitization No. 2	499,338		Jun-12	Jun-17	499,338		1M LIBOR	1.26% to 1.28%	Fair value of derivative liabilities	6,510
Total interest rate derivatives designated as cash flow hedges	$	721,825			$	721,825				$	33,632

Interest rate derivatives not designated as cash flow hedges:
Securitization No. 1	87,575		Jun-06	Jun-16	87,575		1M LIBOR + 0.27%	5.78%	Fair value of derivative liabilities	10,675
Total interest rate derivatives not designated as cash flow hedges	87,575				87,575					10,675

Total interest rate derivative liabilities	$	809,400			$	809,400				$	44,307

Consolidated statement of income related to interest rate derivative contracts

Following is the effect of interest rate derivatives on the statement of financial performance for the nine months ended September 30, 2013:



Effective Portion				Ineffective Portion
Derivatives in ASC 815 Cash Flow Hedging Relationships	Amount of Gain or (Loss) Recognized in OCI on Derivative (a)	Location of Gain or (Loss) Reclassified from Accumulated OCI into Income	Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (b)	Location of Gain or (Loss) Recognized in Income on Derivative	Amount of Gain or (Loss) Recognized in Income on Derivative (c)
Interest rate derivatives	$403	Interest expense	$(38,633)	Interest expense	$(203)


(a)	This represents the change in fair market value of our interest rate derivatives since year end, net of taxes, offset by the amount of actual cash paid related to the net settlements of the interest rate derivatives for the nine months ended September 30, 2013.


(b)	This represents the amount of actual cash paid, net of taxes, related to the net settlements of the interest rate derivatives for the nine months ended September 30, 2013 plus any effective amortization of net deferred interest rate derivative losses.


(c)	This represents both realized and unrealized ineffectiveness incurred during the nine months ended September 30, 2013.

The following table summarizes amounts charged directly to the consolidated statement of income for the three and nine months ended September 30, 2012 and 2013, respectively, related to our interest rate derivatives:



	Three Months Ended September 30,					Nine Months Ended September 30,
	2012		2013			2012		2013
Interest expense:
Hedge ineffectiveness losses	$	1,474	$	93		$	1,840	$	197
Amortization:
Accelerated amortization of deferred losses⁽¹⁾	—		(2		)	—		2,025
Amortization of loss of designated interest rate derivative	—		423			—		1,168
Amortization of deferred losses	8,966		6,879			21,903		22,092
Total Amortization	8,966		7,300			21,903		25,285
Total charged to interest expense	$	10,440	$	7,393		$	23,743	$	25,482

Other income:
Mark to market gains on undesignated interest rate derivatives	$	—	$	855		$	599	$	3,727
Total charged to other income	$	—	$	855		$	599	$	3,727

__________

(1) For the nine months ended September 30, 2013, represents accelerated amortization of deferred hedge losses related to two aircraft sold in June 2013.

Derivatives Not Designated as Hedging Instruments under ASC 815

Location of Gain
or (Loss)
Recognized in Income
On Derivative

Amount of Gain
or (Loss)
Recognized in Income on
Derivative

Interest rate derivatives

Other income (expense)