Derivative Financial Instrument (Tables)

3 Months Ended

Mar. 31, 2013

Derivative Financial Instrument [Abstract]

Derivatives Recognized in the Condensed Consolidated Balance Sheet

The Company has interest rate risk with respect to interest expense on variable rate debt. At March 31, 2013, the Company had $243,673 variable rate debt outstanding. On March 28, 2013, in compliance with its credit agreement, the Company entered into purchased option and swap derivative contracts to hedge against the potential impact on earnings from an increase in market interest rates associated with the interest payments on its variable rate term credit facility. The objective of the hedge transactions is to reduce the variability of cash flows due to changes in the designated benchmark interest rate on $112,500 of the term debt. The purchased options have a strike price of 1.25%, based on 30-day LIBOR with maturity dates each month from April 28, 2013 through December 31, 2014 with payment dates coinciding directly with the term debt. The interest rate swap is effective from December 31, 2014 through December 31, 2015. This derivative is an interest rate swap that effectively swaps a notional amount of $112,500 from the floating interest rate for a floating LIBOR rate with a floor of 1.25% for a 1.63% fixed interest rate. The derivatives were recognized in the Condensed Consolidated Balance Sheets at fair value as current liabilities, at March 31, 2013 as follows:

Derivative Liabilities	Location in Condensed Consolidated Balance Sheet	March 31, 2013
Derivatives designated as hedging instruments:
Interest rate derivatives at fair value	Accrued Expenses	$	255

Derivatives Recognized in the AOCI and Earnings

The following amounts are included in AOCI and earnings for the three months ended March 31, 2013:

	Net of Tax
Derivatives in Cash Flow Hedging Relationship	Effective portion of Loss Recognized in AOCI on Derivatives		Effective Portion of Loss Reclassified from AOCI into Earnings(1)
Three Months Ended March 31, 2013
Interest rate derivatives	$	161	$	-

(1)

No amounts related to the interest rate derivatives were reclassified from AOCI to interest expense during the period.

- Definition

Tabular disclosure of the location and amount of gains and losses reported in the statement of financial performance, or when applicable, the statement of financial position. For example, (a) gains and losses recognized in the income statement on derivative instruments designated and qualifying as hedging instruments in fair value hedges and related hedged items designated and qualifying in fair value hedges and (b) gains and losses initially recognized in other comprehensive income on derivative instruments designated and qualifying as cash flow hedges.

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- Definition

Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position.

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