Derivative Instruments and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The fair value of our derivative instruments measured as outlined above as of December 31, 2013 was as follows:

($ amounts in thousands)



	December 31,			Quoted Prices		Significant Other Observable Inputs			Significant Other Unobservable Inputs
Description	2013			Level 1		Level 2			Level 3

ASSETS

Current Assets
Derivatives	$	—		$	—	$	—		$	—
	$	—		$	—	$	—		$	—

LIABILITIES

Current Liabilities
Derivatives	$	(1,189	)	$	—	$	(1,189	)	$	—
	$	(1,189	)	$	—	$	(1,189	)	$	—

The following table summarizes the fair value and presentation in our consolidated balance sheets for derivative instruments as of December 31, 2013 and 2012:

($ amounts in thousands)



	Asset Derivatives			Liability Derivatives
		December 31, 2013	December 31, 2012		December 31, 2013			December 31, 2012
	Balance Sheet Location	Fair Value	Fair Value	Balance Sheet Location	Fair Value			Fair Value

Derivatives designated as hedging instruments under ASC 815
Interest rate cap contracts		—	—	Accrued expenses and other current liabilities	$	(4,002	)	—
Interest rate cap contracts		—	—	Other Assets	2,813			—

Total derivatives designated as hedging instruments under ASC 815		—	—		$	(1,189	)	—
Total derivatives		—	—		$	(1,189	)	—

Offsetting Liabilities

The following tables summarize our five interest cap agreements with a single counterparty and that each agreement represented a net liability for us and none of our interest cap agreements represented a net asset as of December 31, 2013:

($ amounts in thousands)



Offsetting of Derivative Liabilities
					As of December 31, 2013
											Gross Amounts Not Offset in the Statement of Financial Position
Description		Gross Amounts of Recognized Liabilities			Gross Amounts Offset in the Statement of Financial Position			Net Amounts of Liabilities Presented in the Statement of Financial Position			Financial Instruments		Cash Collateral Pledged		Net Amount
Derivatives by counterparty
	Counterparty 1	$	(1,189	)	$	(2,813	)	$	(4,002	)	$	2,813	$	—	$	(1,189	)

Total		$	(1,189	)	$	(2,813	)	$	(4,002	)	$	2,813	$	—	$	(1,189	)

Offsetting Assets

($ amounts in thousands)



Offsetting of Derivative Assets
				As of December 31, 2013
								Gross Amounts Not Offset in the Statement of Financial Position
Description		Gross Amounts of Recognized Assets		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Assets Presented in the Statement of Financial Position		Financial Instruments			Cash Collateral Pledged		Net Amount
Derivatives by counterparty
	Counterparty 1	$	—	$	2,813	$	2,813	$	(2,813	)	$	—	$	—

Total		$	—	$	2,813	$	2,813	$	(2,813	)	$	—	$	—

Schedule of Accumulated Other Comprehensive Income (Loss)

The following table summarizes information about the fair values of our derivative instruments on the consolidated statements of other comprehensive income (loss) for the year ended December 31, 2013:



Other Comprehensive Income (Loss) Rollforward:	Amount ($ thousands)
Beginning Balance Gain/(Loss) as of December 31, 2012	$	—
Amount Recognized in Other Comprehensive Income (Loss) on Derivative (Pre-tax)	(2,203		)
Amount Reclassified from Other Comprehensive Income (Loss) into Income (Loss)	1,014
Ending Balance Gain/(Loss) (Pre-tax) as of December 31, 2013	$	(1,189	)

Derivative Instruments, Gain (Loss)

The following table summarizes the effect and presentation of derivative instruments, including the effective portion or ineffective portion of our cash flow hedges, on the consolidated statements of operations for the periods ending December 31, 2013 and 2012:

($ amounts in thousands)



The Effect of Derivative Instruments on the Statement of Financial Performance
For the Year Ended December 31, 2013

Derivatives in ASC 815 Cash Flow Hedging Relationships	Amount of Gain or (Loss) Recognized in Other Comprehensive Income (Loss) on Derivative (Effective Portion)				Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion)	Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Loss) (Effective Portion)				Location of Gain or (Loss) Recognized in Income (Loss) on Derivative (Ineffective Portion )	Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion )
	2013			2012		2013			2012		2013		2012
Interest rate cap contracts	$	(2,203	)	—	Interest Expense	$	(1,014	)	—	Interest Expense	$	—	—

Total	$	(2,203	)	—		$	(1,014	)	—		$	—	—

PAR PHARMACEUTICAL COMPANIES, INC. 10-K