Derivative Financial Instruments And Hedging Activities

3 Months Ended

Mar. 31, 2013

General Discussion of Derivative Instruments and Hedging Activities [Abstract]

Derivative Financial Instruments And Hedging Activities

consist of the following (in thousands):

	March 31, 2013				December 31, 2012
	Notional		Fair Value(b)		Notional		Fair Value(b)
Assets
Interest rate swaps(a)					$	24,126	$	133
Interest rate caps(a)	$	1,654,098	$	784	750,983		386
Foreign exchange swaps(a)(c)	1,500,000		2,221
Total assets	$	3,154,098	$	3,005	$	775,109	$	519
Liabilities
Interest rate swaps					$	24,126	$	133
Interest rate caps	$	1,654,098	$	795	750,983		394
Foreign exchange swaps(c)	1,500,000		2,257
Total liabilities	$	3,154,098	$	3,052	$	775,109	$	527

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(a) Included in other assets on the consolidated balance sheets.

(b) See Note 8 - "Fair Values of Assets and Liabilities" for further discussion of fair value disclosure related to the derivatives.

(c) Notional balances of 750 million Euro (€), 331 million Pound (£) and 229 million Swedish krona (SEK) have been translated to USD.

Generally, we purchase interest rate cap agreements to limit floating rate exposures on securities issued in our credit facilities. We utilize interest rate swap agreements to convert floating rate exposures on securities issued in securitization transactions to fixed rates, thereby hedging the variability in interest expense paid.

Under the terms of our derivative financial instruments, we are required to pledge certain funds to be held in restricted cash accounts as collateral for the outstanding derivative transactions. As of March 31, 2013 and December 31, 2012, these restricted cash accounts totaled $3.9 million and $4.2 million, and are included in other assets on the consolidated balance sheets.

In connection with the closing of the acquisition of certain international operations from Ally Financial Inc. ("Ally Financial"), we provided a loan denominated in foreign currencies (Euro, British Pound and Swedish Krona) to an acquired entity for the equivalent of $1.5 billion. In March 2013, we entered into foreign exchange swaps to hedge against any valuation change in the loan due to changes in foreign exchange rates. Refer to Note 14 - "Subsequent Events" to our condensed consolidated financial statements for additional information on the acquisition.