XML 23 R21.htm IDEA: XBRL DOCUMENT
v3.19.3

Fair value measurements and Hedging | 6 Months Ended
--- | ---
Jun. 30, 2019
Fair Value Disclosures [Abstract] |
Fair value measurements and Hedging: | 14. Fair value measurements and Hedging: Fair value measurements The Company recognizes all derivative instruments as either assets or liabilities at fair value on its consolidated balance sheets in accordance with ASC Topic 815, “Derivatives and Hedging”. I. Fair value on a recurring basis: Interest rate swaps During the year ended December 31, 2018, all of the Company’s previous interest rates swaps matured or were repaid prior to their maturity through the refinancing of the corresponding debt. Therefore as of December 31, 2018 and June 30, 2019 the Company has not had any open positions on interest rate swaps. Forward Freight Agreements (“FFAs”) and Bunker Swaps During the year ended December 31, 2018 and the six-month period ended June 30, 2019, the Company entered into a certain number of FFAs on the Capesize, Panamax and Supramax indexes. The results of the Company’s FFAs for the six-month periods ended June 30, 2018 and 2019 and the valuation of the Company’s open positions as at December 31, 2018 and June 30, 2019 are presented in the tables below. During the year ended December 31, 2018 and the six-month period ended June 30, 2019, the Company also entered into a certain number of bunker swaps. The results of the Company’s bunker swaps for the six-month periods ended June 30, 2018 and 2019 and the valuation of the Company’s open positions as at December 31, 2018 and June 30, 2019 are presented in the tables below. The amounts of Gain / (Loss) on derivative financial instruments, forward freight agreements and bunker swaps recognized in the unaudited interim condensed consolidated statements of operations, are analyzed as follows:
|  | Six months ended June 30,
|  | 2018 |  |  | 2019
Consolidated Statement of Operations |  |  |  |  |
Gain/(loss) on derivative financial instruments, net |  |  |  |  |
Unrealized gain/(loss) from the Goldman Sachs Swaps after de-designation of accounting hedging relationship (April 1, 2015) | $ | 140 |  | $ | -
Realized gain/(loss) from the Goldman Sachs Swaps after de-designation of accounting hedging relationship (April 1, 2015) |  | (141) |  |  | -
Total Gain/(loss) on derivative financial instruments, net | $ | (1) |  | $ | -
Interest and finance costs |  |  |  |  |
Reclassification adjustments of interest rate swap loss/(gain) transferred to Interest and finance costs from Other comprehensive income/(loss) |  | (73) |  |  | -
Total Gain/(loss) recognized | $ | (73) |  | $ | -
Gain/(loss) on forward freight agreements and bunker swaps |  |  |  |  |
Realized gain/(loss) on forward freight agreements |  | 1,580 |  |  | 8,337
Realized gain/(loss) on bunker swaps |  | 71 |  |  | 33
Unrealized gain/(loss) on forward freight agreements |  | (1,097) |  |  | (2,290)
Unrealized gain/(loss) on bunker swaps |  | 1,446 |  |  | 1,303
Total Gain/(loss) recognized | $ | 2,000 |  | $ | 7,383
The guidance for fair value measurements applies to all assets and liabilities that are being measured and reported on a fair value basis. This guidance enables the reader of the financial statements to assess the inputs used to develop those measurements by establishing a hierarchy for ranking the quality and reliability of the information used to determine fair values. The statement requires that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data Level 3: Unobservable inputs that are not corroborated by market data The following table summarizes the valuation of the Company’s financial instruments as of December 31, 2018 and June 30, 2019 based on Level 2 observable inputs of the fair value hierarchy such as interest rate curves.
|  | Significant Other Observable Inputs (Level 2)
|  | December 31, 2018 | June 30, 2019
|  | (not designated as cash flow hedges) | (designated as cash flow hedges) | (not designated as cash flow hedges) | (designated as cash flow hedges)
ASSETS |  |  |  |  |
Forward freight agreements - asset position |  | $ 537 | - |  | -
Total |  | $ 537 | - | $ - | -
LIABILITIES |  |  |  |  |
Forward freight agreements - liability position |  | $ - | - | 1,902 | -
Bunker swaps - liability position |  | 1,799 | - | 496 | -
Total |  | $ 1,799 | - | 2,398 | -
The carrying values of temporary cash investments, restricted cash, accounts receivable, other current assets, accrued liabilities, due from/to related parties, due from/to managers and accounts payable approximate their fair value due to the short-term nature of these financial instruments. Temporary cash investments and restricted cash are considered Level 1 items as they represent liquid assets with short-term maturities. The fair value of long-term bank loans and bareboat leases (Level 2), bearing interest at variable interest rates, approximates their recorded values as of June 30, 2019. The 2022 Notes have a fixed rate, and their estimated fair value, determined through Level 1 inputs of the fair value hierarchy (quoted price on NASDAQ under the ticker symbol SBLKZ), is approximately $51,100 as of June 30, 2019. II. Fair value on a non-recurring basis: As further disclosed in Note 5, during the six months period ended June 30, 2019 the Company recognized an impairment loss of $3,411 related to the sale of the vessels Star Anna and Star Gamma which were delivered to their new owners during the third quarter of 2019. The carrying value of the sold vessels was written down to their fair value as determined by reference to their agreed sale prices (Level 2) as per their sale agreements dated June 21, 2019 and July 8, 2019, respectively. The following table summarizes the valuation of these assets measured at fair value on a non-recurring basis as of June 30, 2019:
Long-lived assets held and used |  | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | Impairment loss
| (Level 1) | (Level 2) | (Level 3)
Vessels, net | $ | - | 24,475 | - | 3,411
TOTAL | $ | - | 24,475 | - | 3,411
The Company’s impairment analysis as of June 30, 2019, indicated that the carrying amount of the Company’s vessels, was recoverable, and therefore, the Company concluded that no impairment charge, was necessary.

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration