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Risk Management and Derivatives | 9 Months Ended
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Sep. 30, 2013
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Risk Management and Derivatives | Risk Management and Derivatives The Company's use of derivative financial instruments is primarily limited to the utilization of interest rate hedges and foreign exchange hedges. The principal objective of such hedges is to minimize the risks and/or costs associated with the Company's operating and financial structure and to manage its exposure to foreign exchange rates. Derivatives not designated as hedges are not speculative and are used to manage the Company's exposure to interest rate movements, foreign exchange rate movements, and other identified risks, but may not meet the strict hedge accounting requirements. The table below presents the fair value of the Company's derivative financial instruments as well as their classification on the Consolidated Balance Sheets as of September 30, 2013 and December 31, 2012 ($ in thousands):
| Derivative Assets as of |  | Derivative Liabilities as of
| September 30, 2013 |  | December 31, 2012 |  | September 30, 2013 |  | December 31, 2012
Derivative | Balance Sheet Location |  | Fair Value |  | Balance Sheet Location |  | Fair Value |  | Balance Sheet Location |  | Fair Value |  | Balance Sheet Location |  | Fair Value
Foreign exchange contracts | Other Assets |  | $ | 690 |  |  | N/A |  | $ | — |  |  | Other Liabilities |  | $ | 8,164 |  |  | Other Liabilities |  | $ | 2,855 |
Cash flow interest rate swap | Other Assets |  | 368 |  |  | N/A |  | — |  |  | N/A |  | — |  |  | Other Liabilities |  | 580 |
Cash flow interest rate cap | Other Assets |  | 9,033 |  |  | N/A |  | — |  |  | N/A |  | — |  |  | N/A |  | — |
Total |  |  | $ | 10,091 |  |  |  |  | $ | — |  |  |  |  | $ | 8,164 |  |  |  |  | $ | 3,435 |
The tables below present the effect of the Company's derivative financial instruments on the Consolidated Statements of Operations for the three and nine months ended September 30, 2013 and 2012 ($ in thousands):
Derivatives Designated in Hedging Relationships |  | Location of Gain (Loss) Recognized in Income |  | Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Effective Portion) |  | Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Earnings (Effective Portion) |  | Amount of Gain (Loss) Recognized in Earnings (Ineffective Portion)
For the Three Months Ended September 30, 2013 |  |  |  |  |  |  |  |  |  |
Cash flow interest rate cap |  | Interest Expense |  | $ | (1,590 | ) |  | $ | — |  |  | N/A
Cash flow interest rate swap |  | Interest Expense |  | $ | (204 | ) |  | $ | 80 |  |  | N/A
Foreign exchange contracts |  | Other Expense |  | $ | 347 |  |  | $ | — |  |  | N/A
For the Three Months Ended September 30, 2012 |  |  |  |  |  |  |  |  |  |
Cash flow interest rate swap |  | Interest Expense |  | $ | — |  |  | $ | (26 | ) |  | N/A
For the Nine Months Ended September 30, 2013 |  |  |  |  |  |  |  |
Cash flow interest rate cap |  | Interest Expense |  | $ | (1,590 | ) |  | $ | — |  |  | N/A
Cash flow interest rate swap |  | Interest Expense |  | $ | 678 |  |  | $ | 231 |  |  | N/A
Foreign exchange contracts |  | Other Expense |  | $ | 691 |  |  | $ | — |  |  | N/A
For the Nine Months Ended September 30, 2012 |  |  |  |  |  |  |  |
Cash flow interest rate swap |  | Interest Expense |  | $ | (124 | ) |  | $ | (265 | ) |  | N/A
Foreign exchange contracts—The Company is exposed to fluctuations in foreign exchange rates on investments it holds in foreign entities. The Company uses currency forward agreements to hedge its exposure to changes in foreign exchange rates on its foreign investments. Currency forward agreements involve fixing the USD to the respective foreign currency exchange rate for delivery of a specified amount of foreign currency on a specified date. The currency forward agreements are typically cash settled in US dollars for their fair value at or close to their settlement date. For derivatives designated as net investment hedges, the effective portion of changes in the fair value of the derivatives are reported in Accumulated Other Comprehensive Income as part of the cumulative translation adjustment. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. Amounts are reclassified out of Accumulated Other Comprehensive Income into earnings when the hedged net investment is either sold or substantially liquidated. In June 2013, the Company entered into a foreign exchange contract to hedge its exposure in a subsidiary whose functional currency is INR. As of September 30, 2013, the Company had the following outstanding foreign currency derivatives that were used to hedge its net investments in foreign operations that were designated:
Derivative Type |  | Notional Amount |  | Notional (USD Equivalent) |  | Maturity
Sells INR/Buys USD Forward |  | ₨ | 456,000 |  |  | $ | 7,291 |  |  | January 2014
For derivatives not designated as net investment hedges, the changes in the fair value of the derivatives are reported in the Consolidated Statements of Operations within other expense. As of September 30, 2013, the Company had the following outstanding foreign currency derivatives that were used to hedge its net investments in foreign operations that were not designated:
Derivative Type |  | Notional Amount |  | Notional (USD Equivalent) |  | Maturity
Sells EUR/Buys USD Forward |  | € | 84,400 |  |  | $ | 114,155 |  |  | October 2013
Sells GBP/Buys USD Forward |  | £ | 27,500 |  |  | $ | 44,512 |  |  | October 2013
Sells CAD/Buys USD Forward |  | C$ | 43,100 |  |  | $ | 41,832 |  |  | October 2013
|  |  |  | Amount of Gain or (Loss) Recognized in Income
|  | Location of Gain or (Loss) Recognized in Income |  | For the Three Months Ended September 30, |  | For the Nine Months Ended September 30,
Derivatives not Designated in Hedging Relationships |  | 2013 |  | 2012 | 2013 |  | 2012
Foreign Exchange Contracts |  | Other Expense |  | $ | (7,992 | ) |  | $ | (6,658 | ) |  | $ | 1,750 |  |  | $ | (5,326 | )
The Company marks its foreign investments to market each quarter based on current exchange rates and records the gain or loss through “Other expense” on its Consolidated Statements of Operations for loan investments or “Accumulated other comprehensive income (loss),” on its Consolidated Balance Sheets for net investments in foreign subsidiaries. The Company recorded net losses related to foreign investments of $1.1 million and $0.5 million during the three months ended September 30, 2013 and 2012, respectively, and $1.5 million and $0.8 million during the nine months ended September 30, 2013 and 2012, respectively, in its Consolidated Statements of Operations. Qualifying cash flow hedges—In August 2013, the Company entered into an interest rate cap agreement to reduce exposure to variability in expected future interest payments associated with variable interest rate debt. In October 2012, the Company entered into an interest rate swap to convert its variable rate debt to fixed rate on a $28.0 million secured term loan maturing in 2019. The following table presents the Company's interest rate cap and swap outstanding as of September 30, 2013 ($ in thousands).
Derivative Type |  | Notional Amount |  | Variable Rate |  | Fixed Rate |  | Effective Date |  | Maturity
Interest Rate Cap |  | $ | 500,000 |  |  | LIBOR |  | 1.00% |  | July 2014 |  | July 2017
Interest Rate Swap |  | $ | 28,000 |  |  | LIBOR + 2.00% |  | 3.47% |  | October 2012 |  | November 2019
Over the next 12 months, the Company expects that $0.4 million will be reclassified to interest expense from cash flow hedges and $0.2 million will be reclassified to income related to terminated cash flow hedges from "Accumulated other comprehensive income (loss)" into earnings. Credit risk-related contingent features—The Company has agreements with each of its derivative counterparties that contain a provision where if the Company either defaults or is capable of being declared in default on any of its indebtedness, then the Company could also be declared in default on its derivative obligations. In connection with its foreign currency derivatives, as of September 30, 2013 and December 31, 2012, the Company has posted collateral of $10.2 million and $9.6 million, respectively, which is included in "Restricted cash" on the Company's Consolidated Balance Sheets.

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- Definition The entire disclosure for the entity's entire derivative instruments and hedging activities. Describes an entity's risk management strategies, derivatives in hedging activities and non-hedging derivative instruments, the assets, obligations, liabilities, revenues and expenses arising therefrom, and the amounts of and methodologies and assumptions used in determining the amounts of such items. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=7668309&loc=d3e80748-113994 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41638-113959 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4E -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624181-113959 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41635-113959 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 30 -Section 45 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6441202&loc=d3e80720-113993 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4J -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5708773-113959 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4H -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624258-113959 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(n)) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5618551-113959 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624163-113959 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 44 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. 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