Derivative Financial Instruments

12 Months Ended

Dec. 31, 2012

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE FINANCIAL INSTRUMENTS

DERIVATIVE FINANCIAL INSTRUMENTS

The Company entered into an interest rate swap contract (the “Swap”) in 2009 to partially offset its exposure to the effects of changes in interest rates on its variable-rate financing obligations. The Swap was considered a cash flow hedge. The Company does not hold derivative financial instruments for trading or speculative purposes. The Swap matured in April 2011 and was not renewed.

For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. The Company reports cash flows from derivative instruments in cash flows from operating activities. All derivatives are recorded at fair value in either prepaid and other current assets or other accrued liabilities.

The Company did not have any outstanding derivatives in 2012. The effect of derivative instruments on the Statement of Operations for the years ended December 31, 2011 and 2010 was not material.