Derivatives And Hedging

12 Months Ended

Dec. 31, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives And Hedging

Derivatives and Hedging

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

	Assets			Liabilities
	Balance Sheet Location	Amount		Balance Sheet Location	Amount
Designated Hedges:
December 31, 2013	Other Assets, net	$	5,282	Other Liabilities, net	$	476
December 31, 2012	Other Assets, net	9,926		Other Liabilities, net	768

The gross presentation, the effects of offsetting for derivatives with a right to offset 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
December 31, 2013
Assets	$	5,282	$	—	$	5,282	$	—	$	—	$	5,282
Liabilities	476		—		476		—		—		476
December 31, 2012
Assets	9,926		—		9,926		—		—		9,926
Liabilities	768		—		768		—		—		768

Cash Flow Hedges:

As of December 31, 2013 and 2012, we had three active interest rate contracts designated as cash flow hedges with an aggregate notional amount of $25.8 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.

During 2013, we settled three forward-starting contracts with an aggregate notional amount of $150.0 million hedging future fixed-rate debt issuances. These contracts fixed the 10-year swap rates at 2.4%. In connection with the October 2013 issuance of unsecured senior notes, we received $6.1 million associated with the settlement of these contracts resulting in a $5.9 million gain in accumulated other comprehensive loss.

As of December 31, 2013 and 2012, accumulated other comprehensive loss included a net gain (loss) balance for cash flow interest rate contracts of $1.2 million and $(7.5) million, respectively, and these amounts 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 $1.9 million in accumulated other comprehensive loss is expected to be amortized to net interest expense related to settled interest rate contracts.

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)
Year Ended December 31, 2013	$	(6,423	)	Interest expense, net	$	(2,537	)	Interest expense, net	$	238
Year Ended December 31, 2012	$	123		Interest expense, net	$	(2,650	)	Interest expense, net	$	—
Year Ended December 31, 2011	$	866		Interest expense, net	$	(2,551	)	Interest expense, net	$	(12	)

Fair Value Hedges:

As of December 31, 2013 and 2012, we had four interest rate contracts, maturing through October 2017, with an aggregate notional amount of $116.7 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 .2% to 4.3%, and .3% to 4.3%, respectively. 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 (1)		Amount of Gain  (Loss) Recognized in Income (2)
Year Ended December 31, 2013
Interest expense, net	$	(4,643	)	$	4,643		$	4,082	$	4,082
Year Ended December 31, 2012
Interest expense, net	(860		)	860			6,749		6,749
Year Ended December 31, 2011
Interest expense, net	3,676			(3,676		)	7,077		7,077

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(1) Amounts in this caption include gain (loss) recognized in income on derivatives and net cash settlements.

(2) No ineffectiveness was recognized during the respective periods.