American Home Shield 2011 Annual Report Download - page 69

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(2.50 percent as of December 31, 2011). The changes in interest rate swap agreements in effect for the years ended December 31, 2011, 2010 and 2009, as
well as the cumulative interest rate swaps outstanding as of December 31, 2011 and 2010 are as follows:
(In thousands)
Notional
Amount
Weighted
Average Fixed
Rate(1)
Interest rate swap agreements in effect as of December 31, 2008 $ 1,430,000 3.89%
Entered into effect —
Expired —
Interest rate swap agreements in effect as of December 31, 2009 1,430,000 3.89%
Entered into effect 530,000
Expired (530,000)
Interest rate swap agreements in effect as of December 31, 2010 1,430,000 3.68%
Entered into effect 450,000
Expired (450,000)
Interest rate swap agreements in effect as of December 31, 2011 $ 1,430,000 2.84%
Before the application of the incremental borrowing margin (2.50 percent as of December 31, 2011).(1)
Interest rate swap agreements in effect as of December 31, 2011 are as follows:
Trade Date Effective Date Expiration Date
Notional
Amount
Weighted
Average
Fixed Rate(1) Floating Rate
February 15, 2008 March 3, 2008 March 3, 2012 $ 250,000 3.48% Three month LIBOR
September 15, 2008 October 1, 2008 October 1, 2012 200,000 3.53% One month LIBOR
April 20, 2009 September 1, 2011(2) August 1, 2013 530,000 1.51% One month LIBOR
June 10, 2010 March, 3, 2011 March 1 ,2013 100,000 1.77% One month LIBOR
June 10, 2010 September 1, 2011 September 1, 2013 50,000 2.25% One month LIBOR
June 15, 2010 March 3, 2011 March 1, 2013 150,000 1.66% One month LIBOR
June 15, 2010 September 1, 2011 September 1, 2013 150,000 2.21% One month LIBOR
Before the application of the incremental borrowing margin (2.50 percent as of December 31, 2011).
In August 2011, the Company amended the terms of a $530.0 million interest rate swap agreement entered into in April 2009. In
connection with the amendment, which became effective as of September 1, 2011, the expiration date of the agreement was
extended from August 2012 to August 2013 and the fixed rate on the agreement was lowered from 2.55 percent to 1.51 percent.
(1)
(2)
In accordance with accounting standards for derivative instruments and hedging activities, these interest rate swap agreements are classified as cash flow
hedges, and, as such, the hedging instruments are recorded on the Consolidated Statements of Financial Position as either an asset or liability at fair value,
with the effective portion of the changes in fair value attributable to the hedged risks recorded in other comprehensive loss.
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