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DERIVATIVES AND HEDGING ACTIVITIES (Block)
 3 Months Ended
Mar. 31, 2012
Derivative Instruments And Hedging Activities Disclosure Abstract  
Derivative Instruments And Hedging Activities Disclosure Text Block

5. DERIVATIVES AND HEDGING ACTIVITIES

 

The Company from time to time enters into derivative financial instruments, including interest rate exchange agreements (“Swaps”) and interest rate collar agreements (“Collars”), to manage its exposure to fluctuations in interest rates.

 

       The following table provides the details of the interest rate transaction outstanding as of March 31, 2012:

Type      Fixed  
Of Notional Effective LIBOR Expiration
Hedge Amount Date Rate Date
  (amounts      
  (in millions)      
          
Swap $ 100.0 May 28, 2008 3.62% May 28, 2012

Hedge Accounting Treatment

 

All of the Company's interest rate transactions entered into in 2008 received hedge accounting treatment, which treatment continued throughout their terms for all hedges other than the hedge with an expiration date of May 28, 2012. In connection with the refinancing on November 23, 2011, this hedge, which was not terminated, no longer received hedge accounting treatment as the hedge was not effective due to the refinancing. As a result, the Company reclassified as of November 23, 2011 all amounts remaining in accumulated other comprehensive income to the statement of operations.

Non-Hedge Accounting Treatment

 

       For the interest rate transaction with an expiration date of May 28, 2012, the Company recognized non-hedge accounting treatment for the period from November 23, 2011 through March 31, 2012.

The following is a listing of derivatives that expired as indicated:

The following is a listing of derivatives that expired as indicated:

Expired Derivatives
Year Ended December 31, 2011
Type        Fixed  
Of Notional Effective   LIBOR Expiration
Hedge Amount Date Collar Rate Date
  (amounts        
  (in millions)        
            
Swap $ 150.0 January 28, 2008 n/a 3.03% January 28, 2011
Collar   100.0 February 28, 2008[Cap 4.00%]February 28, 2011
   Floor 2.14%
Swap 0 125.0 March 28, 2008 n/a 2.91% September 28, 2011
    375.0        

The following is a summary of the gains (losses) related to the Company's cash flow hedges for the periods indicated:

 

  Three Months Ended
  March 31,
Description 2012 2011
  (amounts in thousands)
       
Type Of Derivative Designated As A Cash Flow Hedge  Interest Rate Interest Rate
Amount Of Gain (Loss) Recognized In OCI $ - $ 1,989
Location Of Gain (Loss) Reclassified From      
Accumulated OCI To Statement Of Operations Interest Expense Interest Expense
Amount Of Gain (Loss) Reclassified From       
Accumulated OCI To Statement Of Operations $ - $0
Location Of Gain (Loss) In Statement Of Operations Interest Expense Interest Expense
Amount Of Gain (Loss) In Statement Of Operations      
Due To Ineffectiveness $ 788 $0

The gains and losses were recorded to the statement of comprehensive income (loss) as these derivatives qualified for hedge accounting treatment (except as disclosed above under Non-Hedge Accounting Treatment). The fair value of these derivatives was determined using observable market-based inputs (a Level 2 measurement) and the impact of the credit risk on a derivative's fair value (the creditworthiness of the transaction's counterparty for assets and the creditworthiness of the Company for liabilities).

 

As of November 23, 2011 the remaining amount in accumulated other comprehensive income related to these derivatives was reclassified to the statement of operations for the reasons described above.

       The following table presents the accumulated derivative gain (loss) recorded in the statements of other comprehensive income (loss) as of the periods indicated:

 

 Fair Value Of Accumulated
 Derivatives Outstanding
 March 31, December 31,
 2012 2011
 Assets (Liabilities)
      
 (amounts in thousands)
      
Beginning balance as of January 1$0 $(7,277)
Net unrealized gain (loss) on derivatives,     
net of taxes (benefit) 0  7,277
Ending balance$0 $0
      

The following is a summary of the fair value of the derivatives outstanding as of the periods indicated:

   Fair Value
   March 31, December 31,
 Balance Sheet 2012 2011
 Location Asset (Liability)
   (amounts in thousands)
Designated Derivatives       
Interest rate hedge transactionsCurrent liabilities $ (558) $ (1,346)