Derivative Instruments And Hedging Strategies

6 Months Ended

Jun. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments And Hedging Strategies

DERIVATIVE INSTRUMENTS AND HEDGING STRATEGIES

Cash Flow Hedges. SeaJon, one of the Company’s 50% or less owned companies, had an interest rate swap agreement designated as a cash flow hedge that matured in April 2017. This interest rate swap called for SeaJon to pay a fixed interest rate of 2.79% on the amortized notional value and receive a variable interest rate based on LIBOR on the amortized notional value. By entering into this interest rate swap agreement, SeaJon converted the variable LIBOR component of certain of its outstanding borrowings to a fixed interest rate.

Other Derivative Instruments. The Company recognized gains (losses) on derivative instruments not designated as hedging instruments for the six months ended June 30 as follows (in thousands):

	2017		2016
Exchange option liability on subsidiary convertible senior notes	$	19,436	$	(2,560	)
Forward currency exchange, option and future contracts	291		(107		)
Exchange traded commodity swap, option and future contracts	—		2
	$	19,727	$	(2,665	)

The exchange option liability on subsidiary convertible senior notes terminated as a consequence of the Spin-off.

The Company enters and settles forward currency exchange, option and future contracts with respect to various foreign currencies. These contracts enable the Company to buy currencies in the future at fixed exchange rates, which could offset possible consequences of changes in currency exchange rates with respect to the Company’s business conducted outside of the United States. As of June 30, 2017, there were no outstanding forward currency exchange contracts.

Recognized Gains (Losses) On Derivative Instruments Not Designated As Hedging Instruments

The Company recognized gains (losses) on derivative instruments not designated as hedging instruments for the six months ended June 30 as follows (in thousands):

	2017		2016
Exchange option liability on subsidiary convertible senior notes	$	19,436	$	(2,560	)
Forward currency exchange, option and future contracts	291		(107		)
Exchange traded commodity swap, option and future contracts	—		2
	$	19,727	$	(2,665	)