Derivative Instruments

6 Months Ended

Jun. 30, 2013

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 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 and terminated the interest rate swap and repaid the obligation.

As of June 30, 2013 and December 31, 2012, the fair value carrying amount of the Company's interest rate swaps are recorded as follows:

		Asset / (Liability) Derivatives
	Balance Sheet Caption	June 30, 2013			December 31, 2012
		(dollars in thousands)
Derivatives designated as hedging instruments
Interest rate swap	Long-term asset	$	6,670		$	—
Interest rate swap	Accrued liabilities	(560		)	(530		)
Interest rate swap	Other long-term liabilities	—			(690		)
Total derivatives designated as hedging instruments		$	6,110		$	(1,220	)

The following tables summarize the income (loss) recognized in accumulated other comprehensive income ("AOCI"), the amounts reclassified from AOCI into earnings and the amounts recognized directly into earnings for the three and six months ended June 30, 2013 and 2012:

	Amount of Income (Loss) Recognized in AOCI on Derivative (Effective Portion, net of tax)						Amount of Loss Reclassified from AOCI into Earnings
							Three months ended June 30,						Six months ended June 30,
	As of June 30, 2013		As of December 31, 2012			Location of Loss Reclassified from AOCI into Earnings (Effective Portion)	2013			2012			2013			2012
	(dollars in thousands)						(dollars in thousands)
Derivatives designated as hedging instruments
Interest rate swaps	$	3,780	$	(760	)	Interest expense	$	(310	)	$	(110	)	$	(320	)	$	(110	)

Over the next 12 months, the Company expects to reclassify approximately $0.6 million of pre-tax deferred losses from AOCI to interest expense as the related interest payments for the designated interest rate swaps are funded.

		Amount of Loss Recognized in Earnings on Derivatives
	Location of Loss Recognized in Earnings on Derivatives	Three months ended June 30,					Six months ended June 30,
		2013			2012		2013			2012
		(dollars in thousands)
Derivatives not designated as hedging instruments
Interest rate swaps	Interest expense	$	(140	)	$	—	$	(270	)	$	—

Valuations of the interest rate swap were based on the income approach, which uses observable inputs such as interest rate yield curves and forward currency exchange rates. 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 June 30, 2013 and December 31, 2012 are shown below.  

	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)
June 30, 2013	Interest rate swaps	Recurring	$	6,110		$	—	$	6,110		$	—
December 31, 2012	Interest rate swaps	Recurring	$	(1,220	)	$	—	$	(1,220	)	$	—