Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2019

Schedule of financial instruments measured at fair value on a recurring basis

Our financial instruments include cash and cash equivalents, receivables, accounts payable, long-term debt and derivative instruments. The carrying amount of cash and cash equivalents, trade and other current receivables as well as accounts payable approximates fair value due to the short-term nature of these instruments. The fair value of our derivative instruments (Note 17) reflects our best estimate and is based upon exchange or over-the-counter quotations whenever they are available. Quoted valuations may not be available due to location differences or terms that extend beyond the period for which quotations are available. Where quotes are not available, we utilize other valuation techniques or models to estimate market values. These modeling techniques require us to make estimations of future prices, price correlation, volatility and liquidity based on market data. Our actual results may differ from our estimates, and these differences could be positive or negative. The following tables provide additional information relating to those financial instruments measured at fair value on a recurring basis (in thousands):



	Fair Value at September 30, 2019
	Level 1		Level 2		Level 3		Total		Valuation Approach
Assets:
Interest rate swaps	$	—	$	108	$	—	$	108	(c)

Liabilities:
Foreign exchange contracts — hedging instruments	—		1,089		—		1,089		(c)
Foreign exchange contracts — non-hedging instruments	—		1,634		—		1,634		(c)
Total net liability	$	—	$	2,615	$	—	$	2,615



	Fair Value at December 31, 2018
	Level 1		Level 2		Level 3		Total		Valuation Approach
Assets:
Interest rate swaps	$	—	$	1,064	$	—	$	1,064	(c)

Liabilities:
Foreign exchange contracts — hedging instruments	—		6,211		—		6,211		(c)
Foreign exchange contracts — non-hedging instruments	—		3,984		—		3,984		(c)
Total net liability	$	—	$	9,131	$	—	$	9,131

Schedule of principal amount and estimated fair value of long-term debt

The principal amount and estimated fair value of our long-term debt are as follows (in thousands):



	September 30, 2019				December 31, 2018
	Principal Amount ⁽¹⁾		Fair Value ^{(2) (3)}		Principal Amount ⁽¹⁾		Fair Value ^{(2) (3)}

Term Loan (previously scheduled to mature June 2020)	$	—	$	—	$	33,693	$	33,314
Term Loan (matures December 2021)	34,125		33,698		—		—
Nordea Q5000 Loan (matures April 2020)	98,214		98,214		125,000		122,500
MARAD Debt (matures February 2027)	63,610		68,972		70,468		74,406
2022 Notes (mature May 2022)	125,000		126,094		125,000		114,298
2023 Notes (mature September 2023)	125,000		146,719		125,000		114,688
Total debt	$	445,949	$	473,697	$	479,161	$	459,206


(1)	Principal amount includes current maturities and excludes the related unamortized debt discount and debt issuance costs. See Note 6 for additional disclosures on our long-term debt.

(2)

The estimated fair value of the 2022 Notes and the 2023 Notes was determined using Level 1 fair value inputs under the market approach. The fair value of the term loans, the Nordea Q5000 Loan and the MARAD Debt was estimated using Level 2 fair value inputs under the market approach, which was determined using a third-party evaluation of the remaining average life and outstanding principal balance of the indebtedness as compared to other obligations in the marketplace with similar terms.

(3)

The principal amount and estimated fair value of the 2022 Notes and the 2023 Notes are for the entire instrument inclusive of the conversion feature reported in shareholders’ equity.