Derivative Instruments

12 Months Ended

Dec. 31, 2012

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

Derivative Instruments

In December 2012, the Company entered into interest rate swap agreements to fix the LIBOR-based variable portion of the interest rates on its term loan facilities. The term loan A swap agreement fixes the LIBOR-based variable portion of the interest rate, beginning February 2013, on a total of $175.0 million notional amount at 0.74% and expires on October 11, 2017. The term loan B swap agreement fixes the LIBOR-based variable portion of the interest rate, beginning February 2015, on a total of $150.0 million notional amount at 2.05% and expires on October 11, 2019. The Company has designated both swap agreements as cash flow hedges.

In March 2012, the Company entered into an interest rate swap agreement to fix the LIBOR-based variable portion of the interest rate on a total of $100.0 million notional amount of its previous term loan B facility. The swap agreement fixed the LIBOR-based variable portion of the interest rate at 1.80% through June 23, 2016. At inception, the Company formally designated this swap agreement as a cash flow hedge. However, upon the Company's amendment and restatement of its credit agreement during the fourth quarter of 2012, the Company determined that the interest rate swap was no longer expected to be an effective economic hedge. The Company terminated the interest rate swap and repaid the obligation upon completion of the ARCA. Up to the date of the ARCA, the Company utilized hedge accounting, which allows for the effective portion of the interest rate swap to be recorded in accumulated other comprehensive income in the accompanying consolidated balance sheet. At the date of the ARCA, the Company de-designated this swap, which had $1.0 million (net of tax of $0.6 million) of unrealized loss remaining in accumulated other comprehensive income, which will be amortized into earnings during the period in which the originally hedged transactions would have affected earnings.

In addition, the Company was party to a $125.0 million notional amount interest rate swap which expired in the second quarter of 2011 and a second interest rate swap with a notional amount of $75.0 million which expired in the first quarter of 2011. Both of these swaps were associated with the Company's previous term loan facility (in effect until June 21, 2011), but during 2011 neither was designated as a hedging instrument.

As of December 31, 2012 and 2011, the fair value carrying amounts of the Company's derivative instruments are recorded as follows:

		Asset Derivatives				Liability Derivatives
	Balance Sheet Caption	December 31, 2012		December 31, 2011		December 31, 2012		December 31, 2011
		(dollars in thousands)
Derivatives designated as hedging instruments
Interest rate swaps	Accrued liabilities	$	—	$	—	$	530	$	—
Interest rate swaps	Other long-term liabilities	—		—		690		—
Total derivatives designated as hedging instruments		$	—	$	—	$	1,220	$	—

The following tables summarize the losses, net of tax, recognized in accumulated other comprehensive income ("AOCI"), the amounts reclassified from AOCI into earnings and the amounts recognized directly into earnings for the years ended December 31, 2012, 2011 and 2010:

	Amount of Loss Recognized in AOCI on Derivative (Effective Portion, net of tax)					Location of Loss Reclassified from AOCI into Earnings (Effective Portion)	Amount of Loss Reclassified from AOCI into Earnings
	As of December 31,						Year ended December 31,
	2012			2011			2012			2011			2010
	(dollars in thousands)						(dollars in thousands)
Derivatives designated as hedging instruments
Interest rate swaps	$	(760	)	$	—	Interest expense	$	(250	)	$	(360	)	$	(2,350	)

Over the next 12 months, the Company expects to reclassify approximately $0.5 million of pre-tax deferred losses from accumulated other comprehensive income to interest expense as the related interest payments for the designated swaps are recognized.

	Amount of Loss Recognized in Earnings on Derivatives
	Year ended December 31,									Location of Loss Recognized in Earnings on Derivatives
	2012			2011			2010
	(dollars in thousands)
Derivatives not designated as hedging instruments
Interest rate swaps	$	(80	)	$	(10	)	$	(1,610	)	Interest expense

Valuations of the interest rate swaps were based on the income approach which uses observable inputs such as interest rate yield curves. Fair value measurements and the fair value hierarchy level for the Company's assets and liabilities measured at fair value on a recurring basis as of December 31, 2012 are shown below. There were no derivative instruments outstanding as of December 31, 2011.

		December 31, 2012
Description	Frequency	Asset / (Liability)			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
		(dollars in thousands)
Interest rate swaps	Recurring	$	(1,220	)	$	—	$	(1,220	)	$	—