FAIR VALUE OF FINANCIAL INSTRUMENTS, DERIVATIVES AND MARKETABLE SECURITIES (Tables)

12 Months Ended

Dec. 31, 2012

FAIR VALUE OF FINANCIAL INSTRUMENTS, DERIVATIVES AND MARKETABLE SECURITIES [Abstract]

Notional and Fair Value of Derivative Instruments

The notional and fair value amounts of our derivative instruments as of December 31, 2012 were as follows:

(Amounts in thousands)			Asset Derivatives 2012				Liability Derivatives 2012
	Current Notional		Balance Sheet		Fair		Balance Sheet		Fair Value
As of December 31, 2012	Amount		Location		Value		Location
Interest Rate Swaps-S/T		-		-		-	Current Liabilities			-
Interest Rate Swaps-L/T*	$	74,207		-		-	Other Liabilities		$	(7,683	)
Foreign Exchange Contracts	$	1,700	Current Assets		$	147		-		-
Foreign Exchange Contracts	$	6,000					Current Liabilities		$	(257	)
Total derivatives designated as hedging instruments	$	81,907		-	$	147		-	$	(7,940	)

*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 $61,540,235 (based on a Yen to USD exchange rate of 86.74 as of December 31, 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 $87,000 gain for the year ended December 31, 2012 and this amount was included in earnings. We paid down this facility in January 2012 in an amount of Yen 686,318,979 to bring our Asset Maintenance Loan to Value Facility requirement in line. The fair value balance as of December 31, 2012, includes a negative $1,003,619 balance related to an interest rate swap from our 25% investment in Oslo Bulk AS. Also included in earnings is a $571,000 loss, related to the early pay-off of loans relating to two of our Pure Car Truck Carriers that were part of our recent Sale Leasebacks.

The notional and fair value amounts of our derivative instruments as of December 31, 2011 were as follows:

(Amounts in thousands)			Asset Derivatives 2011				Liability Derivatives 2011
	Current Notional		Balance Sheet		Fair		Balance Sheet		Fair Value
As of December 31, 2011	Amount		Location		Value		Location
Interest Rate Swaps-S/T	$	12,845		-		-	Current Liabilities		$	(545	)
Interest Rate Swaps-L/T*	$	140,455		-		-	Other Liabilities		$	(8,901	)
Foreign Exchange Contracts	$	2,400	Other Assets		$	202		-		-
Total derivatives designated as hedging instruments	$	155,700		-	$	202		-	$	(9,446	)

Derivative Instruments, Effect on Other Comprehensive Income (Loss)

The effect of derivative instruments designated as cash flow hedges on our consolidated statement of income for the year ended December 31, 2012 is as follows:

(Amounts in thousands) Year Ended December 31, 2012	Gain/(Loss) Recognized in Other Comprehensive Income			Location of Gain (Loss) Reclassified from AOCI to Income		Amount of Gain(Loss) Reclassified from AOCI to Income			Gain (Loss) Recognized in Income from Ineffective portion
Interest Rate Swaps	$	1,486		Interest Expense		$	(3,106	)	$	(485	)
Foreign Exchange Contracts	$	(243	)	Other Revenues		$	(180	)		-
Total Derivatives designated as hedging instruments	$	1,243			-	$	(3,286	)	$	(485	)

The effect of derivative instruments designated as cash flow hedges on our consolidated statement of income for the year ended December 31, 2011 is as follows:

(Amounts in thousands) Year Ended December 31, 2011	Gain Recognized in Other Comprehensive Income		Location of Gain(Loss) Reclassified from AOCI to Income		Amount of Gain(Loss) Reclassified from AOCI to Income			Gain (Loss) Recognized in Income from Ineffective portion
Interest Rate Swaps	$	72	Interest Expense		$	(3,982	)	$	(101	)
Foreign Exchange Contracts	$	29	Other Revenues		$	434			-
Total Derivatives designated as hedging instruments	$	101		-	$	(3,548	)	$	(101	)

Interest Rate Derivatives

We enter into interest rate swap agreements to manage well-defined interest rate risks. The Company records the fair value of the interest rate swaps as an asset or liability on its balance sheet. The Company's interest rate swaps are accounted for as effective cash flow hedges with the exception of a small portion of one contract. Accordingly, the effective portion of the change in fair value of the swap is recorded in Other Comprehensive Income (Loss) while the ineffective portion is recorded to the earnings in the period of change in fair value. As of December 31, 2012, the Company has the following swap contracts outstanding:

Effective Date	Termination Date	Current Notional Amount		Swap Rate			Type
9/26/05	9/28/15	$	6,333,333		4.41	%	Fixed
9/26/05	9/28/15	$	6,333,333		4.41	%	Fixed
3/15/09	9/15/20	$	*61,540,235		2.065	%	Fixed
Total:		$	74,206,901

*Notional Amount converted from Yen at December 31, 2012 at a Yen to USD exchange rate of 86.74

Notional Amount of Foreign Exchange Contracts

The following table summarizes these contracts:

(Amounts in Thousands)
Transaction Date	Type of Currency	Transaction Amount in Dollars	Effective Date	Expiration Date
May-12	Peso	750	January-13	May-13
May-12	Peso	250	January-13	May-13
May-12	Peso	700	June-13	December-13
November-12	Yen	1,500	November-12	March-13
November-12	Yen	1,500	November-12	March-13
December-12	Yen	1,500	December-12	December-13
December-12	Yen	1,500	December-12	December-13
		7,700

Cost and Valuation Information on Investment Securities

The following table includes cost and valuation information on our marketable securities:

(Amounts in thousands)	December 31, 2011
Security Type	Cost Basis		AOCI Unrealized Holding Gains		Estimated Fair Value
Corporate Bonds	$	8,553	$	70	$	8,623
Mutual Funds		4,146		58		4,204
	$	12,699	$	128	$	12,827