Thrifty Car Rental 2011 Annual Report Download - page 72

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The fair value of derivatives outstanding for the years ended December 31, 2011 and 2010 are
as follows (in thousands):
Balance Balance Balance Balance
Sheet Fair Sheet Fair Sheet Fair Sheet Fair
Location
V
alue Location
V
alue Location
V
alue Location
V
alue
Interest rate contracts
Prepaid
expenses and
other assets -$
Prepaid
expenses and
other assets 861$
Accrued
liabilities -$
Accrued
liabilities 31,254$
Interest rate contracts
Prepaid
expenses and
other assets 548$
Prepaid
expenses and
other assets 494$
Accrued
liabilities -$
Accrued
liabilities 5,634$
Total derivatives 548$ 1,355$ -$ 36,888$
Fair Values of Derivative Instruments
Asset Derivatives Liability Derivatives
December 31, December 31, December 31, December 31,
2011 2010
Derivatives designated as
hedging instruments
Derivatives not designated as
hedging instruments
2011 2010
The interest rate swap agreements related to the Series 2006-1 notes and the interest rate cap
agreements related to the Series 2010-1 VFN, the Series 2010-2 VFN and the Series 2010-3
VFN do not qualify for hedge accounting treatment. The (gain) loss recognized in income on
derivatives not designated as hedging instruments for the years ended December 31, 2011 and
2010 are as follows (in thousands):
2011 2010
Interest rate contracts (3,244)$ (28,694)$
Total (3,244)$ (28,694)$
Net (increase) decrease in fair
value of derivatives
Derivatives Not Designated as
Hedging Instruments
Location of (Gain) or Loss
Recognized in Income on
Derivative
Years Ended
December 31,
Amount of (Gain) or Loss
Recognized in Income on
Derivative
The interest rate swap agreement entered into in May 2007 related to the Series 2007-1 notes
(“2007 Swap”) constituted a cash flow hedge and satisfied the criteria for hedge accounting
under the “long-haul” method.