Derivative Instruments (Tables)

6 Months Ended

Jun. 30, 2012

Notional and fair value of derivative instruments

The notional and fair value amounts of our derivative instruments as of June 30, 2012 were as follows:

(Amounts in thousands)			Asset Derivatives				Liability Derivatives

	Current Notional		Balance Sheet		Fair Value		Balance Sheet		Fair Value
	Amount		Location				Location
Interest Rate Swaps - S/T	$	12,145		N/A		-	Current Liabilities			(247	)
Interest Rate Swaps - L/T*	$	109,162		N/A		N/A	Other Liabilities		$	(7,826	)
Foreign Exchange Contracts	$	900	Other Current Assets		$	42		N/A		N/A
Foreign Exchange Contracts	$	3,800		N/A			Current Liabilities		$	(116	)
Total Derivatives Designated as Hedging Instruments	$	126,007		-	$	42		-	$	(8,190	)

*We have outstanding a variable-to-fixed interest rate swap with respect to a Yen-based facility for the financing of a PCTC delivered in March 2010. The notional amount under this contract is $69,506,745 (based on a Yen to USD exchange rate of 79.81 as of June 30, 2012). With the bank exercising its option to reduce the underlying Yen loan from 80% to 65% funding of the vessel's delivery cost, the 15% reduction represents the ineffective portion of this swap, which consists of the portion of the derivative instrument that is no longer supported by underlying borrowings. The change in fair value related to the ineffective portion of this swap was a $117,000 loss for the quarter ended June 30, 2012 and this amount was included in earnings.

Schedule of derivative instruments, effect on other comprehensive income (loss)

The effect of derivative instruments designated as cash flow hedges on our condensed consolidated statement of operations for the six months ended June 30, 2012 was as follows:

(Amounts in thousands)	Net Gain / (Loss) Recognized in Other Comprehensive Income			Location of Gain (Loss) Reclassified from AOCI to Income		(Loss) Reclassified from AOCI to Income			Gain Recognized in Income from Ineffective portion
	2012					2012			2012
Interest Rate Swaps	$	1,236		Interest Expense		$	(1,723	)	$	32
Foreign Exchange contracts	$	(180	)	Voyage Expenses		$	(111	)		-
Total	$	1,056			-	$	(1,834	)	$	32

Schedule of interest rate derivatives

As of June 30, 2012, we had the following swap contracts outstanding:

Effective Date	Termination Date	Current Notional Amount		Swap Rate			Type
11/30/05	11/30/12		12,145,000		5.17	%	Fixed
3/31/08	9/30/13	$	8,551,667		3.46	%	Fixed
9/30/10	9/30/13	$	8,551,667		2.69	%	Fixed
9/30/10	9/30/13	$	8,551,667		2.45	%	Fixed
9/26/05	9/28/15	$	7,000,000		4.41	%	Fixed
9/26/05	9/28/15	$	7,000,000		4.41	%	Fixed
3/15/09	9/15/20	$	*69,506,745		2.065	%	Fixed
Total:		$	121,306,746

*Notional amount converted from Yen at June 30, 2012 at a Yen to USD exchange rate of 79.81

Schedule of notional amount of foreign exchange contracts

The following table summarizes the notional value of these contracts:

(Amounts in Thousands)
Transaction Date	Type of Currency	Transaction Amount in Dollars		Fair Value of Contracts - Asset (Liability)			Effective Date	Expiration Date
August 2011	Peso	$	450,000	$	27,245		September 2011	December 2012
September 2011	Peso	$	450,000		14,442		July 2012	December 2012
September 2011	Peso	$	300,000		(16,006	)	October 2011	December 2012
May 2012	Peso	$	750,000		(6,512	)	January 2013	May 2013
May 2012	Peso	$	250,000		(11,600	)	January 2013	May 2013
May 2012	Peso	$	700,000		(35,979	)	June 2013	December 2013
May 2012	Rupiah	$	1,800,000		(46,312	)	July 2012	December 2012
		$	4,700,000	$	(74,722	)