The following table summarizes our interest rate swap agreements (dollars in thousands): Effective Notional Effective at Interest Termination Fair Transaction Dates Dates Amounts December 31, 2003 Pay Rates Dates Values Hedges for Unsecured Line of Credit: March 2002 December 31, 2002 $ 50,000 $ 50,000 5.364% December 31, 2004 $ (2,004) July 2002 January 1, 2003 25,000 25,000 3.855% June 30, 2005 (805) July 2002 January 1, 2003 25,000 25,000 3.865% June 30, 2005 (809) December 2002 January 2, 2003 25,000 25,000 3.285% June 30, 2006 (567) December 2002 January 2, 2003 25,000 25,000 3.285% June 30, 2006 (567) November 2002 June 1, 2003 25,000 25,000 3.115% December 31, 2005 (523) November 2002 June 1, 2003 25,000 25,000 3.155% December 31, 2005 (543) $ 200,000 Hedges for Unsecured Term Loan: December 2003 December 31, 2003 $ 50,000 $ 50,000 1.53% December 31, 2004 (74) December 2003 December 31, 2004 50,000 - 3.00% December 30, 2005 (119) December 2003 December 30, 2005 50,000 - 4.15% December 29, 2006 (121) December 2003 December 29, 2006 50,000 - 5.09% October 31, 2008 (167) $ 50,000 $ (6,299) Total Interest Rate Swap Agreements in Effect at December 31, 2003 $ 250,000 Effective January 1, 2001, we adopted Statement of Financial Accounting Standards No. 133 (“SFAS 133”), “Accounting for Derivative Instruments and Hedging Activities,” as amended by Statement of Financial Accounting Standards No. 138, “Accounting for Certain Derivative Instruments and Certain Hedging Activities.” SFAS 133, as amended, establishes accounting and reporting standards for derivative financial instruments such as our interest rate swap agreements. Specifically, SFAS 133 requires us to reflect our interest rate swap agreements on the balance sheet at their estimated fair values. We use a variety of methods and assumptions based on market conditions and risks existing at each balance sheet date to determine the fair values of our interest rate swap agreements. These methods of assessing fair value result in a general approximation of value, and such value may never be realized. All of our interest rate swap agreements meet the criteria to be deemed “highly effective” under SFAS 133 in reducing our expo- sure to variable interest rates. Accordingly, we have categorized these instruments as cash flow hedges. While we intend to continue to meet the conditions for such hedge accounting, if hedges did not qualify as “highly effective”, the changes in the fair value of the derivatives used as hedges would be reflected in earnings. We do not believe we are exposed to more than a nominal amount of credit risk in our interest rate swap agreements as our counterparties are established, well-capitalized financial institutions. As of December 31, 2003 and 2002, our interest rate swap agreements have been reported in the accompanying balance sheets at their fair value as other liabilities of approximately $6.3 million and $9.0 million, respectively. The offsetting adjustments were reflected as deferred losses in accumulated other comprehensive income of $6.3 million and $9.0 million, respectively. Balances in accumulated other comprehensive income are recognized in earnings as swap payments are made. 45