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Derivative Financial Instruments
12 Months Ended
Dec. 31, 2012
Derivative Financial Instruments  
Derivative Financial Instruments

15.   Derivative Financial Instruments

        From time to time, the Company seeks to offset its exposure to changing interest rates under its debt financing arrangements by entering into interest rate hedging contracts.

        In 2010, the Company entered into interest rate swap agreements as summarized in the table below:

 
  Notional
Amount
  Paying   Receiving   Start Date   Expiration Date

Counterparty A

  $ 25.0     1.67 % 3-Month LIBOR   October 2010   October 2015

Counterparty A

  $ 25.0     1.65 % 3-Month LIBOR   October 2010   October 2015

Counterparty B

  $ 25.0     1.59 % 3-Month LIBOR   October 2010   October 2015

Counterparty B

  $ 25.0     2.14 % 3-Month LIBOR   October 2010   October 2017

        The Company's derivative contracts contain provisions that may require the Company or the counterparties to post collateral based upon the current fair value of the derivative contracts. As of December 31, 2012, the Company had posted collateral of $5.3 million related to its interest rate swap contracts.

        The following summarizes the amount of derivative instrument gains and losses (before taxes) reported in the Consolidated Statements of Comprehensive Income:

 
  For the Years Ended December 31,  
Cash Flow Hedges
  2010   2011   2012  

Interest rate swaps

  $ 2.5   $ (5.4 ) $ (1.1 )

Treasury rate locks

    3.4     (4.3 )    
               

Total

  $ 5.9   $ (9.7 ) $ (1.1 )
               

        Hedge ineffectiveness was not material in any periods presented.

        The following summarizes the location and fair values of derivative instruments on the Consolidated Balance Sheets:

 
  December 31,
 
Cash Flow Hedges
  2011   2012  

Interest rate swaps(1)

  $ (2.9 ) $ (4.0 )
           

(1)
Presented within Other long-term liabilities.

        The Company does not generally hold or issue derivative financial instruments for trading purposes. Interest rate swaps and treasury rate locks are intended to enable the Company to achieve a level of variable-rate and fixed-rate debt that is acceptable to management and to limit interest rate exposure.

        During the fourth quarter of 2012, the Company entered into Standard & Poor's 500 Index puts to limit the effect of a possible market downturn on its 2012 earnings. The Company recognized an expense of $1.2 million for these positions, which had a notional value of $150.0 million; the contracts expired on December 31, 2012, and no gain was recognized.