Derivatives

6 Months Ended

Jun. 30, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVES

DERIVATIVES

As of June 30, 2013, we have interest rate swaps outstanding which are designated as fair value hedges whereby we receive fixed interest rate payments in exchange for making variable interest rate payments. The differential to be paid or received is accrued and recognized as interest expense. The following table provides a detail of the swaps outstanding and the related hedged items as of June 30, 2013:

	Maturity date	Face value of medium-term notes	Aggregate  notional amount of interest rate swaps	Fixed interest  rate	Weighted-average variable interest rate on hedged debt as of June 30,
Issuance date					2013	2012
		(Dollars in thousands)
May 2011	June 2017	$350,000	$150,000	3.50%	1.51%	1.83%
February 2011	March 2015	$350,000	$150,000	3.15%	1.41%	1.70%

Changes in the fair value of our interest rate swaps are offset by changes in the fair value of the debt instrument. Accordingly, there is no ineffectiveness related to the interest rate swaps. The location and amount of gains (losses) on interest rate swap agreements designated as fair value hedges and related hedged items reported in the Consolidated Condensed Statements of Earnings were as follows:

Fair Value Hedging Relationship	Location of  Gain (Loss) Recognized in Income	Three months ended June 30,					Six months ended June 30,
		2013			2012		2013			2012
		(In thousands)
Derivatives: Interest rate swaps	Interest expense	$	(3,586	)	218		$	(6,367	)	(1,952	)
Hedged items: Fixed-rate debt	Interest expense	3,586			(218	)	6,367			1,952
Total		$	—		—		$	—		—

Refer to Note (N), “Fair Value Measurements,” for disclosures of the fair value and line item caption of derivative instruments recorded on the Consolidated Condensed Balance Sheets.