Derivative Instruments And Hedging Activities

12 Months Ended

Dec. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments And Hedging Activities

Note 21 — Derivative Instruments and Hedging Activities

In June 2015, we entered into interest rate swap contracts to fix the interest rate on $187.5 million of the Nordea Q5000 Loan (Note 8). These swap contracts expired in April 2020. Our interest rate swap contracts qualified for cash flow hedge accounting treatment.

In February 2013, we entered into foreign currency exchange contracts to hedge our foreign currency exposure associated with the Grand Canyon II and Grand Canyon III charter payments denominated in the Norwegian kroner through July 2019 and February 2020, respectively. A portion of our foreign currency exchange contracts qualified for hedge accounting treatment.

We had no derivative instruments as of December 31, 2021 and 2020. The following tables present the impact that derivative instruments designated as hedging instruments had on our accumulated OCI (net of tax) and our consolidated statements of operations for the years ended December 31, 2020 and 2019 (in thousands):

	Unrealized Loss Recognized in OCI
	Year Ended December 31,
	2020		2019
Foreign exchange contracts	$	(54)	$	(315)
Interest rate swaps		(41)		(365)
	$	(95)	$	(680)

	Location of Gain (Loss)	Gain (Loss) Reclassified from
	Reclassified from	Accumulated OCI into Earnings
	Accumulated OCI into	Year Ended December 31,
	Earnings	2020		2019
Foreign exchange contracts	Cost of sales	$	(455)	$	(6,125)
Interest rate swaps	Net interest expense		3		655
		$	(452)	$	(5,470)

The following table presents the impact that derivative instruments not designated as hedging instruments had on our consolidated statements of operations for the years ended December 31, 2020 and 2019 (in thousands):

		Loss Recognized in Earnings
	Location of Loss	Year Ended December 31,
	Recognized in Earnings	2020		2019
Foreign exchange contracts	Other income (expense), net	$	(81)	$	(378)
		$	(81)	$	(378)