Derivatives And Hedging

9 Months Ended

Sep. 30, 2012

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives And Hedging

Derivatives and Hedging

The fair value of all our interest rate contracts is reported as follows (in thousands):

	Assets			Liabilities
	Balance Sheet Location	Amount		Balance Sheet Location	Amount
Designated Hedges:
September 30, 2012	Other Assets, net	$	10,852	Other Liabilities, net	$	827
December 31, 2011	Other Assets, net	10,816		Other Liabilities, net	674

Cash Flow Hedges:

As of September 30, 2012 and December 31, 2011, we had three active interest rate contracts designated as cash flow hedges with an aggregate notional amount of $26.6 million and $27.1 million, respectively. These contracts have maturities through September 2017 and either fix or cap interest rates ranging from 2.3% to 5.0%. We have determined that these contracts are highly effective in offsetting future variable interest cash flows.

As of September 30, 2012 and December 31, 2011, the balance in accumulated other comprehensive loss relating to cash flow interest rate contracts was $8.2 million and $10.0 million, respectively, and will be reclassified to net interest expense as interest payments are made on our fixed-rate debt. Within the next 12 months, approximately $2.9 million of the balance in accumulated other comprehensive loss is expected to be amortized to net interest expense related to settled interest rate contracts.

A summary of cash flow interest rate contract hedging activity is as follows (in thousands):

Derivatives Hedging Relationships	Amount of Gain (Loss)  Recognized in Other Comprehensive Income on Derivative  (Effective Portion)		Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income	Amount of Gain (Loss)  Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion)			Location of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount  Excluded from Effectiveness Testing)	Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
Three Months Ended September 30, 2012	$	49	Interest expense, net	$	(664	)	Interest expense, net	$	—
Nine Months Ended September 30, 2012	181		Interest expense, net	(1,985		)	Interest expense, net	—
Three Months Ended September 30, 2011	542		Interest expense, net	(654		)	Interest expense, net	—
Nine Months Ended September 30, 2011	844		Interest expense, net	(1,892		)	Interest expense, net	(12		)

Fair Value Hedges:

As of September 30, 2012 and December 31, 2011, we had four interest rate contracts, maturing through October 2017, with an aggregate notional amount of $118.4 million and $119.3 million, respectively, that were designated as fair value hedges and convert fixed interest payments at rates from 4.2% to 7.5% to variable interest payments ranging from 0.4% to 4.3% and 0.5% to 4.4%, respectively. We have determined that our fair value hedges are highly effective in limiting our risk of changes in the fair value of fixed-rate notes attributable to changes in interest rates.

A summary of the changes in fair value of our interest rate contracts is as follows (in thousands):

	Gain (Loss)  on Contracts		Gain (Loss)  on Borrowings			Gain (Loss) Recognized  in Income
Three Months Ended September 30, 2012
Interest expense, net	$	3	$	(3	)	$	—
Nine Months Ended September 30, 2012
Interest expense, net	64		(64		)	—
Three Months Ended September 30, 2011
Interest expense, net	3,562		(3,562		)	—
Nine Months Ended September 30, 2011
Interest expense, net	4,056		(4,056		)	—

A summary of our fair value interest rate contract hedges impact on net income is as follows (in thousands):

Derivatives Hedging Relationships	Location of Gain (Loss) Recognized in Income on Derivative	Amount of Gain  (Loss) Recognized in Income on Derivative		Location of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount  Excluded from Effectiveness Testing)	Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
Three Months Ended September 30, 2012	Interest expense, net	$	1,004	Interest expense, net	$	—
Nine Months Ended September 30, 2012	Interest expense, net	3,065		Interest expense, net	—
Three Months Ended September 30, 2011	Interest expense, net	4,577		Interest expense, net	—
Nine Months Ended September 30, 2011	Interest expense, net	7,149		Interest expense, net	—