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Hedging (Tables)
 6 Months Ended
Jun. 30, 2013
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments, Cash Flow Hedge Accounting Discontinued
Activity related to these transferred positions is as follows:
 
Six months ended June 30, 2013
 
 
(In thousands)
Realized Losses Recorded in "Net sales"
 
Unrealized Gains (Losses) Recorded in "Net sales"
 
Losses Deferred in AOCI at June 30, 2013
€25 million purchased euro put option settled in Q1 2013
$
—

 
$
—

 
$
—

€25 million sold euro call option settled in Q1 2013
(620
)
 
—

 
—

€19 million purchased euro put option settled in Q2 2013
—

 
—

 
—

€19 million sold euro call option settled in Q2 2013
(507
)
 
—

 
—

€27 million purchased euro put options to settle in Q3 2013
—

 
(73
)
 
(1,447
)
€27 million sold euro call options to settle in Q3 2013
—

 
1,750

 
(1,083
)
 
$
(1,127
)
 
$
1,677

 
$
(2,530
)
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location
  
Quarter ended June 30,
 
Six months ended June 30,
(In thousands)
2013
 
2012
 
2013
 
2012
Gains (losses) on 30-day euro forward contracts
$
(1,678
)
 
$
3,955

 
$
264

 
$
818

Gains (losses) from fluctuations in the value of the net monetary assets exposed to euro exchange rates
(830
)
 
(11,633
)
 
(5,052
)
 
(7,467
)
Schedule of Notional Amounts of Outstanding Derivative Positions
At June 30, 2013, the company's hedge portfolio was comprised of the following outstanding positions:

 
Notional
Amount
Contract Average
Rate/Price
Settlement
Period
Derivatives designated as hedging instruments:
 
 
 
      Currency derivatives:
 
 
 
              Purchased euro put options
€68 million
$1.20/€
2013
              Sold euro call options
€68 million
$1.28/€
2013
              Average rate forward contracts
€65 million
$1.24/€
2013
              Purchased euro put options
€59 million
$1.30/€
20142
              Sold euro call options
€59 million
$1.38/€
20142
              Average rate forward contracts
€59 million
$1.33/€
20142
 
 
 
 
       Fuel derivatives:
 
 
 
  3.5% Rotterdam Barge/Singapore 180 fuel derivatives:
 
 
 
Bunker fuel forward contracts1
38,349 mt
$521/mt
2013
Bunker fuel forward contracts1
108,416 mt
$587/mt
2014
Bunker fuel forward contracts
74,640 mt
$564/mt
2015
 
 
 
 
Derivatives not designated as hedging instruments:
 
 
 
30-day euro forward contracts
€52 million
$1.31/€
July 2013
Purchased euro put options
€27 million
$1.20/€
Q3 2013
Sold euro call options
€27 million
$1.28/€
Q3 2013
1 
As described in Note 11 of the 2012 Annual Report on Form 10-K, new cash flow hedge relationships were established for certain bunker fuel forward contracts in 2011. These changes resulted in hedge rates for accounting purposes that are different from those in the hedge contract terms.
2 
Settlement periods are through July 2014.
Schedule of Change in Fair Value of Derivative Assets and Liabilities Designated as Hedging Instruments
Activity related to the company's derivative assets and liabilities designated as hedging instruments is as follows:
 
2013
 
2012
(In thousands)
Currency
Hedge
Portfolio
 
Bunker Fuel
Forward
Contracts
 
Currency
Hedge
Portfolio
 
Bunker Fuel
Forward
Contracts
Balance at beginning of year
$
(23,215
)
 
$
8,572

 
$
5,232

 
$
14,754

Realized (gains) losses included in net income
5,601

 
(2,839
)
 
(4,381
)
 
(5,514
)
Transfers1
7,638

 
—

 
—

 
—

Purchases, net2
541

 
—

 
—

 
—

Changes in fair value
6,310

 
1,888

 
(851
)
 
19,471

Balance at March 31
$
(3,125
)
 
$
7,621


$
—


$
28,711

Realized (gains) losses included in net income
4,766

 
(2,151
)
 
(53
)
 
(4,139
)
Purchases, net 2
62

 
—

 
850

 
—

Changes in fair value
(5,142
)
 
(7,673
)
 
(3,324
)
 
(20,250
)
Balance at June 30
$
(3,439
)
 
$
(2,203
)
 
$
(2,527
)
 
$
4,322

1 
Represents the fair value at the transfer date of positions where hedge accounting was terminated. See discussion above.
2 
Purchases represent the cash premiums paid upon the purchase of euro put options or received upon the sale of euro call options. Bunker fuel and currency forward contracts require no up-front cash payment and have an initial fair value of zero; settlements on the forward contracts (swaps) occur upon their maturity.
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)
Deferred net gains (losses) in "Accumulated other comprehensive income (loss)" at June 30, 2013 are expected to be reclassified into income as follows (in thousands):
Expected Period of Recognition
 
Currency
Hedge
Portfolio
 
Bunker
Fuel
Forward
Contracts
 
Total
2013
 
$
(9,088
)
 
$
1,410

 
$
(7,678
)
2014
 
2,510

 
(2,452
)
 
58

2015
 
—

 
(838
)
 
(838
)
 
 
$
(6,578
)
 
$
(1,880
)
 
$
(8,458
)
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss)
The following tables summarize the effect of the company's derivatives designated as cash flow hedging instruments on OCI and earnings:
 
Quarter ended June 30, 2013
 
Quarter ended June 30, 2012
(In thousands)
Currency
Hedge
Portfolio
 
Bunker Fuel
Forward
Contracts
 
Total
 
Currency
Hedge
Portfolio
 
Bunker Fuel
Forward
Contracts
 
Total
Gain (loss) recognized in OCI on derivative (effective portion)
$
(4,881
)
 
$
(6,306
)
 
$
(11,187
)
 
$
(3,324
)
 
$
(18,866
)
 
$
(22,190
)
Gain (loss) reclassified from accumulated OCI into income (effective portion)1
(6,582
)
 
2,151

 
(4,431
)
 
—

 
4,139

 
4,139

Gain (loss) recognized in income on derivative (ineffective portion)1
$
—

 
$
(1,367
)
 
$
(1,367
)
 
$
—

 
$
(1,384
)
 
$
(1,384
)
 
Six months ended June 30, 2013
 
Six months ended June 30, 2012
(In thousands)
Currency
Hedge
Portfolio
 
Bunker Fuel
Forward
Contracts
 
Total
 
Currency
Hedge
Portfolio
 
Bunker Fuel
Forward
Contracts
 
Total
Gain (loss) recognized in OCI on derivative (effective portion)
$
1,683

 
$
(3,808
)
 
$
(2,125
)
 
$
(4,175
)
 
$
(226
)
 
$
(4,401
)
Gain (loss) reclassified from accumulated OCI into income (effective portion)1
(15,214
)
 
4,990

 
(10,224
)
 
4,381

 
9,653

 
14,034

Gain (loss) recognized in income on derivative (ineffective portion)1
$
—

 
$
(1,977
)
 
$
(1,977
)
 
$
—

 
$
(554
)
 
$
(554
)
1 
Both the gain (loss) reclassified from accumulated OCI into income (effective portion) and the gain (loss) recognized in income on derivative (ineffective portion, if any) are included in "Net sales" for the currency hedge portfolio and "Cost of sales" for bunker fuel forward contracts.