Derivative And Hedging Instruments

9 Months Ended

Sep. 30, 2012

Derivative And Hedging Instruments [Abstract]

Derivative And Hedging Instruments

6.           DERIVATIVE AND HEDGING INSTRUMENTS

Interest Rate Caps.  We utilize interest rate cap agreements to manage the interest rate risk on our Warehouse facilities.  The following tables provide the terms of our interestrate cap agreements that were in effect as of September 30, 2012 and December 31, 2011:

As of September 30, 2012

Facility (in millions)		Facility Name	Purpose	Start	End	Notional (in millions)			Cap Interest Rate (1)
$	325.0	Warehouse Facility II	Cap Floating Rate	07/2011	06/2013	$	325.0		6.75	%
	75.0	Warehouse Facility III	Cap Floating Rate	09/2010	09/2013		37.5		6.75	%
	75.0	Warehouse Facility III	Cap Floating Rate	06/2012	07/2015		18.8	(2)	5.00	%
	75.0	Warehouse Facility IV	Cap Floating Rate	08/2011	03/2014		75.0		5.50	%

As of December 31, 2011

Facility (in millions)		Facility Name	Purpose	Start	End	Notional (in millions)		Cap Interest Rate (1)
$	325.0	Warehouse Facility II	Cap Floating Rate	09/2010	06/2013	$	325.0	6.75	%
	75.0	Warehouse Facility III	Cap Floating Rate	09/2010	09/2013		37.5	6.75	%
	75.0	Warehouse Facility IV	Cap Floating Rate	08/2011	03/2014		75.0	5.50	%

(1) Rate excludes the spread over the LIBOR rate or the commercial paper rate, as applicable.

(2) The notional amount increases to $56.3 million in September 2013 when the original Warehouse Facility III interest rate cap for $37.5 million ends.

The interest rate caps have not been designated as hedging instruments.

Information related to the fair values of derivative instruments in our consolidated balance sheets as of September 30, 2012 and December 31, 2011 is as follows:

(In thousands)		Fair Value as of
	Balance Sheet location	September 30, 2012		December 31, 2011
Derivatives not designated as hedging instruments
Asset Derivatives
Interest rate caps	Other assets	$	18	$	16

Information related to the effect of derivative instruments designated as hedging instruments in our consolidated financial statements for the three and nine months ended September 30, 2012 and 2011 is as follows:

(In thousands)
Derivatives in Cash Flow Hedging Relationships	(Loss) / Gain Recognized in OCI on Derivative (Effective Portion)					(Loss) / Gain Reclassified from Accumulated OCI into Income (Effective Portion)
	For the Three Months Ended September 30,						For the Three Months Ended September 30,
	2012		2011			Location	2012		2011
Interest rate swap	$	0	$	0		Interest expense	$	0	$	(49	)
(In thousands)
Derivatives in Cash Flow Hedging Relationships	(Loss) / Gain Recognized in OCI on Derivative (Effective Portion)					(Loss) / Gain Reclassified from Accumulated OCI into Income (Effective Portion)
	For the Nine Months Ended September 30,						For the Nine Months Ended September 30,
		2012		2011		Location		2012		2011
Interest rate swap	$	0	$	(16	)	Interest expense	$	0	$	(192	)

Information related to the effect of derivative instruments not designated as hedging instruments on our consolidated statements of income for the three and nine months ended September 30, 2012 and 2011 is as follows:

(In thousands)
		Amount of (Loss) / Gain Recognized in Income on Derivatives							Amount of (Loss) / Gain Recognized in Income on Derivatives
		For the Three Months Ended September 30,							For the Nine Months Ended September 30,
Derivatives Not Designated as Hedging Instruments	Location	2012			2011				2012				2011
Interest rate caps	Interest expense	$	(7	)		$	(61	)		$	(66	)		$	(202	)