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Derivative Financial Instruments
6 Months Ended
Dec. 31, 2011
Derivative Financial Instruments [Abstract]  
Derivative Financial Instruments
5.   Derivative Financial Instruments
    All derivative financial instruments are recognized at fair value and are recorded in the “Other current assets” or “Accrued expenses” line items in the Consolidated Condensed Balance Sheets. The accounting for changes in the fair value of a derivative financial instrument depends on whether it has been designated and qualifies as a hedging relationship and on the type of the hedging relationship. For those derivative financial instruments that are designated and qualify as hedging instruments, we designate the hedging instrument (based on the exposure being hedged) as cash flow hedges. We do not have any derivative financial instruments that have been designated as either a fair value hedge or a hedge of a net investment in a foreign operation. Cash flows associated with derivative financial instruments are classified in the same category as the cash flows hedged in the Consolidated Condensed Statements of Cash Flows.
    In the ordinary course of business, we are exposed to market risks. We utilize derivative financial instruments to manage interest rate risk, and periodically energy cost price risk and foreign exchange risk. Interest rate swap contracts are entered into to manage interest rate risk associated with our variable rate debt. Futures contracts on energy commodities are periodically entered into to manage the price risk associated with forecasted purchases of gasoline and diesel fuel used in our rental operations. We designate interest rate swap contracts as cash flow hedges of the interest expense on our variable rate debt.
    For derivative financial instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative financial instrument is reported as a component of “Accumulated other comprehensive income” and reclassified into the Consolidated Condensed Statements of Operations in the same line item associated with the forecasted transaction and in the same period as the expenses from the cash flows of the hedged items are recognized. We perform an assessment at the inception of the hedge and on a quarterly basis thereafter, to determine whether our derivatives are highly effective in offsetting changes in the value of the hedged items. Any change in the fair value resulting from hedge ineffectiveness is immediately recognized as income or expense.
    We use interest rate swap contracts to limit exposure to changes in interest rates and to manage the total debt that is subject to variable and fixed interest rates. The interest rate swap contracts we utilize modify our exposure to interest rate risk by converting variable rate debt to a fixed rate without an exchange of the underlying principal amount. Approximately 46% of our outstanding variable rate debt had its interest payments modified using interest rate swap contracts as of December 31, 2011.
    As of December 31, 2011, none of our anticipated gasoline and diesel fuel purchases were hedged.
    We do not engage in speculative transactions or fair value hedging nor do we hold or issue financial instruments for trading purposes.
    The following table summarizes the classification and fair value of the interest rate swap agreements, which have been designated as cash flow hedging instruments:
                     
        Liability Derivatives Fair Value  
        December 31,     July 2,  
Relationship:   Balance Sheet Classification:   2011     2011  
Interest rate swap contracts
  Accrued expenses   $ 1.4     $ 2.1  
 
               
Total derivatives designated as cash flow hedging instruments   $ 1.4     $ 2.1  
 
               
    As of December 31, 2011 and July 2, 2011, all derivative financial instruments were designated as hedging instruments.
    For our interest rate swap contracts that qualify for cash flow hedge designation, the related gains or losses on the contracts are deferred as a component of accumulated other comprehensive income or loss (net of related income taxes) until the interest expense on the related debt is recognized. As the interest expense on the hedged debt is recognized, the other comprehensive income or loss is reclassified to the “Interest expense” line item in our Consolidated Condensed Statements of Operations. Of the $1.0 million net loss deferred in accumulated other comprehensive income as of December 31, 2011, a $0.6 million loss is expected to be reclassified to interest expense in the next twelve months.
    As of December 31, 2011, we had interest rate swap contracts to pay fixed rates of interest and to receive variable rates of interest based on the three-month London Interbank Offered Rate (“LIBOR”) on $115.0 million notional amount, $75.0 million of which are forward starting interest rate swap contracts. Of the $115.0 million notional amount, $25.0 million matures in 12 months, $15.0 million matures in 13-24 months and $75.0 million matures in 37-48 months. The average rate on the $115.0 million of interest rate swap contracts was 2.2% as of December 31, 2011. These interest rate swap contracts are highly effective cash flow hedges and accordingly, gains or losses on any ineffectiveness were not material to any period.
    The following tables summarize the amount of gain or loss recognized in accumulated other comprehensive income or loss and the classification and amount of gains or losses reclassified from accumulated other comprehensive income or loss into the Consolidated Condensed Statements of Operations for the three and six months ended December 31, 2011 and January 1, 2011 related to derivative financial instruments used in cash flow hedging relationships:
                                 
    Amount of Loss Recognized in Accumulated Other  
    Comprehensive Income/(Loss)  
    Three Months Ended     Six Months Ended  
    December 31,     January 1,     December 31,     January 1,  
Relationship:   2011     2011     2011     2011  
Interest rate swap contracts
  $ (0.1 )   $     $ (0.1 )   $ (0.5 )
 
                       
Total derivatives designated as cash flow hedging instruments
  $ (0.1 )   $     $ (0.1 )   $ (0.5 )
 
                       
                                         
            Amount of Loss Reclassified From Accumulated Other  
            Comprehensive Income/(Loss) to Consolidated  
            Statements of Operations  
               
          Three Months Ended     Six Months Ended  
    Statements of Operations     December 31,     January 1,     December 31,     January 1,  
Relationship:   Classification:     2011     2011     2011     2011  
Interest rate swap contracts
  Interest expense   $ (0.2 )   $ (0.7 )   $ (0.6 )   $ (1.4 )
Fuel commodity futures contracts
  Cost of rental operations                       (0.1 )
 
                               
Total derivatives designated as cash flow hedging instruments
          $ (0.2 )   $ (0.7 )   $ (0.6 )   $ (1.5 )