| Schedule of key terms and fair values of interest rate swap derivatives |
The following table sets forth the key terms and fair values of our interest rate swap derivatives (dollars in thousands):
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Fair Value at |
Notional Amount |
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Fixed Rate |
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Floating Rate Index |
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Effective Date |
|
Expiration Date |
|
June 30,
2012 |
|
December 31,
2011 |
$ |
100,000 |
|
|
0.6123 |
% |
|
One-Month LIBOR |
|
1/3/2012 |
|
9/1/2014 |
|
$ |
(490 |
) |
|
$ |
55 |
|
100,000 |
|
|
0.6100 |
% |
|
One-Month LIBOR |
|
1/3/2012 |
|
9/1/2014 |
|
(486 |
) |
|
56 |
|
100,000 |
|
|
0.8320 |
% |
|
One-Month LIBOR |
|
1/3/2012 |
|
9/1/2015 |
|
(1,062 |
) |
|
(66 |
) |
100,000 |
|
|
0.8320 |
% |
|
One-Month LIBOR |
|
1/3/2012 |
|
9/1/2015 |
|
(1,058 |
) |
|
(49 |
) |
38,844 |
|
(1) |
3.8300 |
% |
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One-Month LIBOR |
|
11/2/2010 |
|
11/2/2015 |
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(1,304 |
) |
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(1,054 |
) |
50,000 |
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|
0.5025 |
% |
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One-Month LIBOR |
|
1/3/2011 |
|
1/3/2012 |
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— |
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(1 |
) |
50,000 |
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0.5025 |
% |
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One-Month LIBOR |
|
1/3/2011 |
|
1/3/2012 |
|
— |
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(1 |
) |
120,000 |
|
|
1.7600 |
% |
|
One-Month LIBOR |
|
1/2/2009 |
|
5/1/2012 |
|
— |
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|
(552 |
) |
100,000 |
|
|
1.9750 |
% |
|
One-Month LIBOR |
|
1/1/2010 |
|
5/1/2012 |
|
— |
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|
(532 |
) |
100,000 |
|
(2) |
3.8415 |
% |
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Three-Month LIBOR |
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9/30/2011 |
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9/30/2021 |
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— |
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(16,333 |
) |
75,000 |
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(2) |
3.8450 |
% |
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Three-Month LIBOR |
|
9/30/2011 |
|
9/30/2021 |
|
— |
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(12,275 |
) |
100,000 |
|
(2) |
2.0525 |
% |
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Three-Month LIBOR-Reverse |
|
12/30/2011 |
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9/30/2021 |
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— |
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|
345 |
|
75,000 |
|
(2) |
2.0525 |
% |
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Three-Month LIBOR-Reverse |
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12/30/2011 |
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9/30/2021 |
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— |
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260 |
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$ |
(4,400 |
) |
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$ |
(30,147 |
) |
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(1) |
The notional amount of this instrument is scheduled to amortize to $36.2 million.
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(2) |
As described further in our 2011 Annual Report on Form 10-K, on January 5, 2012, we cash settled these instruments, along with interest accrued thereon, for an aggregate of $29.7 million. Our policy is to present payments to terminate interest rate swaps entered into in order to hedge forecasted interest payments as operating activities on our consolidated statement of cash flows. Accordingly, the payments to cash settle these instruments were included in net cash provided by operating activities on our consolidated statement of cash flows.
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On July 23, 2012, we entered into the following interest rate swap derivatives that were each designated as a cash flow hedge of interest rate risk (dollars in thousands):
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Notional Amount |
|
Fixed Rate |
|
Floating Rate Index |
|
Effective Date |
|
Expiration Date |
$ |
100,000 |
|
|
0.8055 |
% |
|
One-Month LIBOR |
|
9/2/2014 |
|
9/1/2016 |
100,000 |
|
|
0.8100 |
% |
|
One-Month LIBOR |
|
9/2/2014 |
|
9/1/2016 |
100,000 |
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|
1.6730 |
% |
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One-Month LIBOR |
|
9/1/2015 |
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8/1/2019 |
100,000 |
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1.7300 |
% |
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One-Month LIBOR |
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9/1/2015 |
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8/1/2019 |
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| Schedule of fair value and balance sheet classification of interest rate derivatives |
The table below sets forth the fair value of our interest rate derivatives as well as their classification on our consolidated balance sheet (in thousands):
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June 30, 2012 |
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December 31, 2011 |
Derivatives |
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Balance Sheet Location |
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Fair Value |
|
Balance Sheet Location |
|
Fair Value |
Interest rate swaps designated as cash flow hedges |
|
Prepaid expenses and other assets |
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$ |
— |
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|
Prepaid expenses and other assets |
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$ |
111 |
|
Interest rate swaps not designated as hedges |
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N/A |
|
— |
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|
Prepaid expenses and other assets |
|
605 |
|
Interest rate swaps designated as cash flow hedges |
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Interest rate derivatives |
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(4,400 |
) |
|
Interest rate derivatives |
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(2,255 |
) |
Interest rate swaps not designated as hedges |
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N/A |
|
— |
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|
Interest rate derivatives |
|
(28,608 |
) |
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| Schedule of effect of interest rate derivatives on consolidated statements of operations and comprehensive income |
The table below presents the effect of our interest rate derivatives on our consolidated statements of operations and comprehensive income (in thousands):
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For the Three Months Ended June 30, |
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For the Six Months Ended June 30, |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
Amount of loss recognized in accumulated other comprehensive loss (“AOCL”) (effective portion) |
$ |
(2,639 |
) |
|
$ |
(8,458 |
) |
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$ |
(4,626 |
) |
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$ |
(8,594 |
) |
Amount of loss reclassified from AOCL into interest expense (effective portion) |
(928 |
) |
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(1,163 |
) |
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(2,402 |
) |
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(2,267 |
) |
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