Dollar Rent A Car 2011 Annual Report Download - page 71

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The fair value of derivatives outstanding for the years ended December 31, 2011 and 2010 are as follows (in thousands):
Fair Values of Derivative Instruments
Asset Derivatives Liability Derivatives
December 31, December 31, December 31, December 31,
2011 2010 2011 2010
Balance
Sheet
Location
Fair
Value
Balance
Sheet
Location
Fair
Value
Balance
Sheet
Location
Fair
Value
Balance
Sheet
Location
Fair
Value
Derivatives designated as
hedging instruments
Interest rate contracts
Prepaid
expenses
and
other assets $ -
Prepaid
expenses
and
other assets $ 861
Accrued
liabilities $ -
Accrued
liabilities $ 31,254
Derivatives not designated
as hedging instruments
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
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):
Amount of (Gain) or Loss
Recognized in Income on
Derivative
Location of (Gain) or Loss
Recognized in Income on
Derivative
Years Ended
December 31,
Derivatives Not Designated as Hedging
Instruments 2011 2010
Interest rate contracts $ (3,244) $ (28,694)
Net (increase) decrease in fair
value of derivatives
Total $ (3,244) $ (28,694)
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.
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