Derivative And Hedging Instruments

12 Months Ended

Dec. 31, 2012

Derivative And Hedging Instruments [Abstract]

Derivative And Hedging Instruments

9. 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 December 31, 2012 and 2011:

As of December 31, 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	09/2015		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.  As of December 31, 2012 and 2011, the interest rate caps had a fair value of less than $0.1 million as the capped rates were significantly above market rates.

Information related to the effect of derivative instruments designated as hedging instruments on our consolidated financial statements for the years ended December 31, 2012, 2011 and 2010 is as follows:

(In millions)
	(Loss) / Gain						(Loss) / Gain
	Recognized in OCI on Derivative						Reclassified from Accumulated
Derivatives in Cash	(Effective Portion)						OCI into Income (Effective Portion)
Flow Hedging	For the Years Ended December 31,							For the Years Ended December 31,
Relationships	2012		2011		2010		Location	2012		2011			2010
Interest rate swap	$	-	$	-	$	0.5	Interest expense	$	-	$	(0.2	)	$	(0.7	)

Information related to the effect of derivative instruments not designated as hedging instruments on our consolidated statements of income for the years ended December 31, 2012, 2011 and 2010 is as follows:

(In millions)
		Amount of (Loss)/ Gain Recognized in Income
		on Derivatives
Derivatives Not Designated as		For the Years Ended December 31,
Hedging Instruments	Location	2012			2011			2010
Interest rate caps	Interest expense	$	(0.1	)	$	(0.2	)	$	(0.2	)
Interest rate swap	Interest expense		-			-			(0.6	)
Total		$	(0.1	)	$	(0.2	)	$	(0.8	)