Derivatives and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2013

Schedule of Outstanding Interest Rate Swaps and Other Derivatives Instruments

As of March 31, 2013, the Company had the following outstanding interest rate swaps and other derivatives instruments (in thousands):

	Fair Value(1)				Current Notional Amount		Strike Rate		Expiration Date
Type of Derivative Instrument	March 31, 2013		December 31, 2012
Interest rate swaps(2)	$	459	$	620	$	55,800		1.34% to 1.48%	December 2013
Other derivative instrument(3)		—		274					March 2013
Total derivative instruments	$	459	$	894

⁽¹⁾  Fair value of derivative instruments does not include any related accrued interest payable to the counterparty.

⁽²⁾ The interest rate swaps are classified within accounts payable and other liabilities on the accompanying condensed consolidated balance sheets.

⁽³⁾ The Company’s purchase agreement executed in connection with the acquisition of the Edwards Theatres property in March 2011 contained a provision determined to be an embedded derivative instrument. The embedded derivative provided a guaranteed fair value for the OP units provided to the sellers of the property if redeemed for shares of the Company’s common stock or cash, at the Company’s election, prior to its expiration in March 2013. The fair value of the embedded derivative at each period was calculated through the use of a Monte Carlo valuation model based on the historical volatility and closing price of the Company’s common stock and a risk-free interest rate (see Note 17 for discussion of changes in the fair value of this derivative). The embedded derivative was classified within accounts payable and other liabilities in the accompanying condensed consolidated balance sheets.

Effect of Company's Derivative Financial Instruments on Consolidated Statements of Operations

The tables below present the effect of the Company’s derivative financial instruments on the condensed consolidated statements of operations for the three months ended March 31, 2013 and 2012 (in thousands):

	Three Months Ended
	March 31, 2013			March 31, 2012
Amount of unrealized gain (loss) recognized in OCI (effective portion):
Interest rate swaps	$	(1	)	$	(173	)
Other derivatives		—			—
Total	$	(1	)	$	(173	)
Amount of gain (loss) reclassified from accumulated OCI into income (effective portion):
Interest rate swaps (interest expense)	$	(162	)	$	(157	)
Other derivatives		—			—
Total	$	(162	)	$	(157	)
Amount of gain (loss) recognized in income (ineffective portion and amount excluded from effectiveness testing):
Interest rate swaps (other income/expense)	$	—		$	—
Other derivatives (changes in fair value of financial instruments and gain on OP unit redemption)		230			462
Total	$	230		$	462