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Fair Value Of Financial Instruments, Derivatives And Marketable Securities (Tables)
 12 Months Ended
Dec. 31, 2013
Fair Value Of Financial Instruments, Derivatives And Marketable Securites [Abstract]  
Notional And Fair Value Of Derivative Instruments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Derivatives

 

Liability Derivatives

(All Amounts in Thousands)

 

 

2013

 

2013

 

 

 

Current Notional

 

Balance Sheet

 

 

Fair Value

 

Balance Sheet

 

 

Fair Value

As of December 31, 2013

 

 

Amount

 

Location

 

 

 

 

Location

 

 

 

Interest Rate Swaps - L/T*

 

$
46,713 

 

 

 

$

 -

 

Other Liabilities

 

$
(3,724)

Foreign Exchange Contracts

 

 
1,800 

 

Current Assets

 

 
39 

 

Current Liabilities

 

 
(748)

Total Derivatives designated as hedging instruments

 

$
48,513 

 

 

 

$
39 

 

 

 

$
(4,472)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*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 approximately $46.7 million (based on a Yen to USD exchange rate of 105.31 as of December 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 $362,000 gain for the year ended December 31, 2013 and this amount was included in earnings. The fair value balance as of December 31, 2013, includes a negative $659,000 balance related to an interest rate swap from our 25% investment in Oslo Bulk AS. 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Derivatives

 

Liability Derivatives

(All Amounts in Thousands)

 

 

2012

 

2012

 

 

 

Current Notional

 

Balance Sheet

 

 

Fair Value

 

Balance Sheet

 

 

Fair Value

As of December 31, 2012

 

 

Amount

 

Location

 

 

 

 

Location

 

 

 

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 approximately $61.5 million (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 $1.0 million 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.

Derivative Instruments, Effect On Other Comprehensive Income (Loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(All Amounts in Thousands)

 

 

Gain Recognized in OCI

 

Location of Gain(Loss) Reclassified from AOCI to Income

 

 

Amount of (Loss) Reclassified from AOCI to Income

 

 

(Loss) Recognized in Income from Ineffective portion

 

 

 

2013

 

 

 

 

2013

 

 

2013

Interest Rate Swaps

 

$
2,938 

 

Interest Expense

 

$
(1,656)

 

$
(438)

Foreign Exchange Contracts

 

 
135 

 

Other Revenues

 

 
(134)

 

 

 -

Total

 

$
3,073 

 

 

 

$
(1,789)

 

$
(438)

 

 

 

 

 

 

 

 

 

 

 

 

 

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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(All Amounts in Thousands)

 

Gain(Loss) Recognized in OCI

 

Location of Gain(Loss) Reclassified from AOCI to Income

 

 

Amount of (Loss) Reclassified from AOCI to Income

 

 

(Loss) Recognized in Income from Ineffective portion

 

 

 

2012

 

 

 

 

2012

 

 

2012

Interest Rate Swaps

 

$
1,486 

 

Interest Expense

 

$
(3,106)

 

$
(485)

Foreign Exchange Contracts

 

 
(243)

 

Other Revenues

 

 
(180)

 

 

 -

Total

 

$
1,243 

 

 

 

$
(3,286)

 

$
(485)

 

Interest Rate Derivatives

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effective

Termination

 

Current

 

 

 

 

Date

Date

 

Notional Amount

Swap Rate

 

 

Type

 

 

 

 

 

 

 

 

3/15/2009

9/15/2020

 

$         46,712,880
2.065 

%

 

Variable-to-Fixed

 

 

 

 

 

 

 

 

 

*Notional Amount converted from Yen at December 31, 2013 at a Yen to USD exchange rate of 105.31.

Notional Amount Of Foreign Exchange Contracts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transaction Date

 

Type of Currency

 

 

Amount Available in Dollars

 

Effective Date

 

Expiration Date

Aug-13

 

Peso

 

$
1,200 

 

Jan-14

 

Dec-14

Nov-13

 

Peso

 

 
600 

 

Jan-14

 

Dec-14

Dec-13

 

Yen

 

 
1,268 

 

Mar-14

 

Mar-14

Dec-13

 

Yen

 

 
1,269 

 

Jun-14

 

Jun-14

Dec-13

 

Yen

 

 
30,628 

 

Jul-14

 

Jul-14

 

 

 

 

$
34,965