Derivatives And Hedging

9 Months Ended

Sep. 30, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives And Hedging

Derivatives and Hedging

The fair value of all our interest rate contracts is reported as follows (in thousands):

	Assets			Liabilities
	Balance Sheet Location	Amount		Balance Sheet Location	Amount
Designated Hedges:
September 30, 2013	Other Assets, net	$	12,844	Other Liabilities, net	$	537
December 31, 2012	Other Assets, net	9,926		Other Liabilities, net	768

The gross presentation, the effects of offsetting under master netting agreements and the net presentation of our interest rate contracts is as follows (in thousands):

							Gross Amounts Not Offset in Balance Sheet
	Gross Amounts Recognized		Gross Amounts Offset in Balance Sheet		Net Amounts Presented in Balance Sheet		Financial Instruments		Cash Collateral Received		Net Amount
September 30, 2013
Assets	$	12,844	$	—	$	12,844	$	—	$	—	$	12,844
Liabilities	537		—		537		—		—		537
December 31, 2012
Assets	9,926		—		9,926		—		—		9,926
Liabilities	768		—		768		—		—		768

Cash Flow Hedges:

As of September 30, 2013 and December 31, 2012, we had three active interest rate contracts designated as cash flow hedges with an aggregate notional amount of $26.0 million and $26.5 million, respectively. These contracts have maturities through September 2017 and either fix or cap interest rates ranging from 2.3% to 5.0%. We have determined that these contracts are highly effective in offsetting future variable interest cash flows.

Also, at September 30, 2013, we had three forward-starting contracts with an aggregate notional amount of $150.0 million hedging future fixed-rate debt issuances. These contracts are effective in January 2014, mature in January 2024 and fix the 10-year swap rates at 2.4%. Subsequent to September 30, 2013, we settled these forward-starting contracts. See Note 20 for additional information.

As of September 30, 2013 and December 31, 2012, the balance in accumulated other comprehensive gain (loss) relating to cash flow interest rate contracts was $1.0 million and $(7.5) million, respectively, and will be reclassified to net interest expense as interest payments are made on our fixed-rate debt. Within the next 12 months, a loss of approximately $2.0 million in accumulated other comprehensive loss is expected to be amortized to net interest expense related to settled interest rate contracts.

A summary of cash flow interest rate contract hedging activity is as follows (in thousands):

Derivatives Hedging Relationships	Amount of (Gain) Loss  Recognized in Other Comprehensive Income on Derivative  (Effective Portion)			Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income	Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion)			Location of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount  Excluded from Effectiveness Testing)	Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
Three Months Ended September 30, 2013	$	293		Interest expense, net	$	(669	)	Interest expense, net	$	189
Nine Months Ended September 30, 2013	(6,735		)	Interest expense, net	(1,991		)	Interest expense, net	189
Three Months Ended September 30, 2012	49			Interest expense, net	(664		)	Interest expense, net	—
Nine Months Ended September 30, 2012	181			Interest expense, net	(1,985		)	Interest expense, net	—

Fair Value Hedges:

As of September 30, 2013 and December 31, 2012, we had four interest rate contracts, maturing through October 2017, with an aggregate notional amount of $117.1 million and $118.1 million, respectively, that were designated as fair value hedges and convert fixed interest payments at rates from 4.2% to 7.5% to variable interest payments ranging from .3% to 4.3%. We have determined that our fair value hedges are highly effective in limiting our risk of changes in the fair value of fixed-rate notes attributable to changes in interest rates.

A summary of the impact on net income for our interest rate contracts is as follows (in thousands):

	Gain (Loss)  on Contracts			Gain (Loss)  on Borrowings			Net Settlements and Accruals on Contracts		Amount of Gain  (Loss) Recognized in Income (1)
Three Months Ended September 30, 2013
Interest expense, net	$	(482	)	$	482		$	1,015	$	1,015
Nine Months Ended September 30, 2013
Interest expense, net	(3,586		)	3,586			3,065		3,065
Three Months Ended September 30, 2012
Interest expense, net	3			(3		)	1,001		1,001
Nine Months Ended September 30, 2012
Interest expense, net	64			(64		)	3,001		3,001

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(1) No ineffectiveness was recognized during the respective period.