Fair Value Of Financial Instruments, Derivatives And Marketable Securities (Tables)

12 Months Ended

Dec. 31, 2014

Notional And Fair Value Of Derivative Instruments



			Asset Derivatives			Liability Derivatives
			2014			2014
		Current Notional	Balance Sheet		Fair Value	Balance Sheet		Fair Value
(All Amounts in Thousands)		Amount	Location			Location
Interest Rate Swaps - L/T*	$	37,593		$	-	Other Liabilities	$	(3,021)
Foreign Exchange Contracts		3,232			-	Current Liabilities	$	(298)
Foreign Exchange Contracts		28,219			-	Other Liabilities		(4,029)
Total Derivatives designated as hedging instruments	$	69,044		$	-		$	($7,348)

*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 $37.6 million (based on a Yen to USD exchange rate of 119.72 as of December 31, 2014). 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 $132,000 gain for the year ended December 31, 2014 and this amount was included in earnings. The fair value balance as of December 31, 2014, includes a negative $412,000 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, 2013 were as follows:



			Asset Derivatives			Liability Derivatives
			2013			2013
		Current Notional	Balance Sheet		Fair Value	Balance Sheet		Fair Value
(All Amounts in Thousands)		Amount	Location			Location
Interest Rate Swaps - L/T*	$	46,713		$	-	Other Liabilities	$	(3,724)
Foreign Exchange Contracts		1,800	Current Assets		39			-
Foreign Exchange Contracts		33,164			-	Other Liabilities		(748)
Total Derivatives designated as hedging instruments	$	81,677		$	39		$	(4,472)

*We had 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, included a negative $659,000 balance related to an interest rate swap from our 25% investment in Oslo Bulk AS.

Derivative Instruments, Effect On Other Comprehensive Income (Loss)



		Gain(Loss) Recognized in OCI*	Location of Gain(Loss) Reclassified from AOCL** to Income		Amount of Gain(Loss) Reclassified from AOCL to Income		Gain/(Loss) Recognized in Income from Ineffective portion
(All Amounts in Thousands)		2014			2014		2014
Interest Rate Swaps	$	818	Interest Expense	$	1,351	$	132
Foreign Exchange Contracts		(204)	Other Revenues		196		-
Total	$	614		$	1,547	$	132

* Other Comprehensive (Loss) Income
**Accumulated Other Comprehensive Loss

The effect of derivative instruments designated as cash flow hedges on our consolidated statement of income for the year ended December 31, 2013 were as follows:



(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	$	(1,655)	$	(438)
Foreign Exchange Contracts		135	Other Revenues		(134)		-
Total	$	3,073		$	(1,789)	$	(438)

Interest Rate Derivatives


(All Amounts in Thousands)
Effective	Termination		Current
Date	Date		Notional Amount*	Swap Rate		Type

3/15/2009	9/15/2020	$	37,593	2.065	%	Variable-to-Fixed

*Notional Amount converted from Yen at December 31, 2014 at a Yen to USD exchange rate of 119.72.

Notional Amount Of Foreign Exchange Contracts


(All Amounts in Thousands)
Transaction Date	Type of Currency		Amount Available in Dollars	Effective Date	Expiration Date
May-14	Yen	$	832	May-14	Mar-15
May-14	Yen		28,219	Jan-15	Dec-15
Sep-14	Peso		900	Jan-15	Dec-15
Oct-14	Peso		900	Jan-15	Dec-15
Dec-14	Peso		600	Jan-15	Dec-15
		$	31,451