Derivative Financial Instruments

12 Months Ended

Dec. 31, 2012

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Derivative Financial Instruments

The following table summarizes the terms and fair values of the Company's derivative financial instruments, as well as their classification on the Consolidated Balance Sheets, at December 31, 2012 and 2011 (in thousands):

								Fair Value
	Effective Date	Maturity Date		Notional Amount	Bank Pays Variable Rate of	Regency Pays Fixed Rate of		2012	2011
Assets:
	April 15, 2014	April 15, 2024	$	75,000	3 Month LIBOR	2.087	%	1,022	—
	April 15, 2014	April 15, 2024	$	50,000	3 Month LIBOR	2.088	%	672	—
	August 1, 2015	August 1, 2025	$	75,000	3 Month LIBOR	2.479	%	1,131	—
	August 1, 2015	August 1, 2025	$	50,000	3 Month LIBOR	2.479	%	729	—
	August 1, 2015	August 1, 2025	$	50,000	3 Month LIBOR	2.479	%	753	—
Other Assets								4,307	—
Liabilities:
	October 1, 2011	September 1, 2014	$	9,000	1 Month LIBOR	0.76	%	76	37
Accounts payable and other liabilities								76	37

These derivative financial instruments are comprised of interest rate swaps, which are designated and qualify as cash flow hedges. The Company does not use derivatives for trading or speculative purposes and currently does not have any derivatives that are not designated as hedges.

The effective portion of changes in the fair value of derivatives designated and qualifying as cash flow hedges is recorded in accumulated other comprehensive income (loss) and subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings as a gain or loss on derivative instruments.

The following table represents the effect of the derivative financial instruments on the accompanying consolidated financial statements for the years ended December 31, 2012, 2011, and 2010 (in thousands):

Derivatives in FASB ASC Topic 815 Cash Flow Hedging Relationships:	Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion)					Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)							Location of Gain or (Loss) Recognized in Income on  Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
	December 31,						December 31,								December 31,
	2012		2011	2010			2012			2011		2010			2012		2011		2010
Interest rate swaps	$	4,245	18	(36,556	)	Interest expense	$	(9,491	)	(9,467	)	(5,575	)	Other expenses	$	—	(54	)	1,419

The unamortized balance of the settled interest rate swaps at December 31, 2012 and 2011 was $62.6 million and $72.0 million, respectively. As of December 31, 2012, the Company expects $9.5 million of deferred losses (gains) on derivative instruments accumulated in other comprehensive income to be reclassified into earnings during the next 12 months.

On October 7, 2010, the Company paid $36.7 million to settle the remaining $140.7 million of interest rate swaps then outstanding. On October 7, 2010, the Company closed on $250.0 million of 4.80% ten-year senior unsecured notes. The Company began amortizing the $36.7 million loss realized from the swap settlement in October 2010 over a ten year period; therefore, the effective interest rate on these notes was 6.26%.

On June 1, 2010, the Company paid $26.8 million to settle and partially settle $150.0 million of its interest rate swaps then outstanding of $290.7 million. On June 2, 2010 the Company also closed on $150.0 million of ten-year senior unsecured notes with an interest rate of 6.00%. The Company began amortizing the $26.8 million loss realized from the swap settlement in June 2010 over a ten year period; therefore, the effective interest rate on these notes was 7.67%.

Realized gains and losses associated with the settled interest rate swaps have been included in accumulated other comprehensive loss in the accompanying Consolidated Statements of Equity of the Parent Company and the accompanying Consolidated Statements of Capital of the Operating Partnership and are amortized as the corresponding hedged interest payments are made in future periods.