| Financial Instruments |
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a) |
Fair Value Measurements |
For a description of how the Company estimates fair value and for a
description of the fair value hierarchy levels, see Note 12 to the
Company’s audited consolidated financial statements filed
with its Annual Report on the Form 20-F for the year ended
December 31, 2012. The following table includes the estimated
fair value and carrying value of those assets and liabilities that
are measured at fair value on a recurring and non-recurring basis
as well as the estimated fair value of the Company’s
financial instruments that are not accounted for at the fair value
on a recurring basis.
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June 30,
2013 |
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December 31,
2012 |
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Fair
Value
Hierarchy
Level |
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Carrying
Amount
Asset /
(Liability) |
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Fair
Value
Asset /
(Liability) |
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Carrying
Amount
Asset /
(Liability) |
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Fair
Value
Asset /
(Liability) |
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$ |
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$ |
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$ |
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$ |
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Recurring:
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Cash and cash equivalents
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Level 1 |
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37,708 |
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37,708 |
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26,341 |
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26,341 |
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Derivative instruments
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Interest rate swap agreements
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Level 2 |
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(26,724 |
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(26,724 |
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(33,631 |
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(33,631 |
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Non-Recurring:
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Vessels and equipment
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Level 2 |
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— |
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— |
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252,068 |
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252,068 |
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Vessel held for sale (note 9)
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Level 2 |
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— |
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— |
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9,114 |
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9,114 |
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Other:
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Investment in term loans and interest receivable
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Level 3 |
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122,841 |
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119,929 |
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119,385 |
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117,784 |
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Loan to joint venture
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Note (1) |
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9,830 |
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Note (1) |
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9,830 |
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Note (1) |
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Long-term debt, including current portion
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Level 2 |
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(730,214 |
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(654,674 |
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(735,701 |
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(648,724 |
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| (1) |
The Company’s loan to the joint
venture, together with the Company’s equity investment in the
joint venture form the aggregate carrying value of the
Company’s interest in an entity accounted for by the equity
method in these consolidated financial statements. The fair value
of the individual components of such aggregate interest as at
June 30, 2013 and December 31, 2012 was not
determinable. |
The following table contains a summary of the Company’s
financing receivables by type and the method by which the Company
monitors the credit quality of its financing receivables on a
quarterly basis.
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June 30,
2013 |
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December 31,
2012 |
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| Class of Financing Receivable |
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Credit Quality
Indicator |
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Grade |
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$ |
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$ |
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Investment in term loans (see Note 2)
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Collateral |
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Non-Performing |
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122,841 |
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119,385 |
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Loan to joint venture
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Other internal metrics |
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Performing |
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9,830 |
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9,830 |
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132,671 |
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129,215 |
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