Derivative Instruments (Tables)

3 Months Ended

Mar. 31, 2013

Notional and Fair Value of Derivative Instruments

The notional and fair value amounts of our derivative instruments as of March 31, 2013 were as follows (in thousands):

		Asset Derivatives		Liability Derivatives
		2013		2013
	Current Notional	Balance Sheet	Fair Value	Balance Sheet	Fair Value
As of March 31, 2013	Amount	Location		Location
Interest Rate Swaps - L/T*	$67,544			Other Liabilities	($6,143)
Foreign Exchange Contracts	$3,800	Other Assets	$177
Foreign Exchange Contracts	$3,000			Current Liabilities	($281)
Total Derivatives designated as hedging instruments	$74,344		$177		($6,424)

*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 $55,543,763 (based on a Yen to USD exchange rate of 94.22 as of March 31, 2013). 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 $77,000 gain for the quarter ended March 31, 2013 and this amount was reflected in earnings.

Derivative Instruments, Effect on Other Comprehensive Income (Loss)

The effect of derivative instruments designated as cash flow hedges on our condensed consolidated statement of income for the three months ended March 31, 2013 was as follows:

	Gain(Loss) Recognized in OCI	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
Year Ended March 31, 2013	2013		2013	2013
Interest Rate Swaps	$542	Interest Expense	($478)	$77
Foreign Exchange contracts	$5	Other Revenues	$29	$0
Total	$547	-	($449)	$77

Interest Rate Derivatives

As of March 31, 2013, we had the following swap contracts outstanding:

Effective Date	Termination Date	Current Notional Amount	Swap Rate	Type
9/26/05	9/28/15	$ 6,000,000	4.41%	Variable-to-Fixed
9/26/05	9/28/15	$ 6,000,000	4.41%	Variable-to-Fixed
3/15/09	9/15/20	*$ 55,543,763	2.065%	Variable-to-Fixed
Total:		$ 67,543,763

*Notional amount converted from Yen at March 31, 2013 at a Yen to USD exchange rate of 94.22

Notional Amount of Foreign Exchange Contracts

The following table summarizes the notional current values as of March 31, 2013, of these contracts:

(Amounts in Thousands)
Transaction Date	Type of Currency	Amount Available in Dollars	Effective Date	Expiration Date
May 2012	Peso	$300	January 2013	May 2013
May 2012	Peso	$100	January 2013	May 2013
May 2012	Peso	$700	June 2013	December 2013
December 2012	Yen	$1,500	December 2012	September 2013
December 2012	Yen	$1,500	December 2012	December 2013
January 2013	Rupiah	$2,700	January 2013	December 2013
		$6,800