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FINANCIAL INSTRUMENTS (Tables)
 6 Months Ended
Jun. 30, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Fair values of derivative instruments designated and not designated as cash flow hedges
The following table presents the fair values of the Company’s derivative instruments that were designated as cash flow hedges and qualified as part of a hedging relationship, and those that were not designated:
 
(in thousands of $)
June 30, 2014

 
December 31, 2013

Designated derivative instruments - Assets:
 
 
 
Interest rate swaps
646

 
6,565

Cross currency interest rate swaps
—

 
—

Non-designated derivative instruments - Assets:
 
 
 
Interest rate swaps
6,674

 
10,068

Cross currency interest rate swaps
—

 
—

Total derivative instruments - non-current assets
7,320

 
16,633

 
 
 
 
(in thousands of $)
June 30, 2014

 
December 31, 2013

Designated derivative instruments -short-term liabilities:

 
 
 
Interest rate swaps
1,987

 
2,279

Cross currency interest rate swaps
—

 
3,358

Non-designated derivative instruments -short-term liabilities:
 
 
 
Interest rate swaps
581

 
—

Cross currency interest rate swaps
—

 
68

Total derivative instruments - short-term liabilities
2,568

 
5,705

(in thousands of $)
June 30, 2014

 
December 31, 2013

Designated derivative instruments - long-term liabilities:
 
 
 
Interest rate swaps
42,691

 
44,006

Cross currency interest rate swaps
14,974

 
8,915

Non-designated derivative instruments - long-term liabilities:
 
 
 
Interest rate swaps
1,782

 
3,183

Cross currency interest rate swaps
533

 
386

Total derivative instruments - long-term liabilities
59,980

 
56,490
Schedule of interest rate swap transactions designated as hedges against specific loans
The summary includes all swap transactions, most of which are hedges against specific loans.
 
(in thousands of $)
 
 
 
 
 
 
Notional Principal as at June 30, 2014
Inception date
 
Maturity date
 
Fixed interest rate
 
 
 
 
 
 
 
 
$167,895 (reducing to $122,632)
March 2010
 
March 2015
 
1.96% - 2.22%
 
$69,713 (reducing to $69,713)
September 2012
 
September 2014
 
4.85%
 
$35,686 (reducing to $24,794)
March 2008
 
August 2018
 
4.05% - 4.15%
 
$40,002 (reducing to $23,394)
April 2011
 
December 2018
 
2.13% - 2.80%
 
$59,591 (reducing to $34,044)
May 2011
 
January 2019
 
0.80% - 2.58%
 
$100,000 (remaining at $100,000)
August 2011
 
August 2021
 
2.50% - 2.93%
 
$173,142 (reducing to $153,804)
April 2012
 
May 2019
 
3.67% - 3.77%
 
$176,333 (reducing to $79,733)
May 2012
 
August 2022
 
1.76% - 1.85%
 
$105,436 (equivalent to NOK600 million)
October 2012
 
October 2017
 
5.92% - 6.23%
*
$46,550 (reducing to $32,142)
February 2013
 
December 2017
 
0.81% - 0.82%
 
$100,000 (remaining at $100,000)
March 2013
 
April 2023
 
1.85% - 1.97%
 
$151,008 (equivalent to NOK900 million)
March 2014
 
March 2019
 
6.03%
*
Schedule of currency swap transactions
The Company has entered into currency swap transactions, involving the payment of U.S. dollars in exchange for Norwegian kroner, which are designated as hedges against the NOK600 million senior unsecured bonds due 2017 and NOK900 million senior unsecured bonds due 2019.
 
Principal Receivable
Principal Payable

 
Inception date
 
Maturity date
NOK600 million
$
105.4
 million
 
October 2012
 
October 2017
NOK900 million
$
151.0
 million
 
March 2014
 
March 2019
Schedule of carrying value and estimated fair value of financial assets and liabilities
The carrying value and estimated fair value of the Company’s financial assets and liabilities at June 30, 2014 and December 31, 2013 are as follows:
 
 
June 30, 2014

 
June 30, 2014

 
December 31, 2013

 
December 31, 2013

(in thousands of $)
Carrying value

 
Fair value

 
Carrying value

 
Fair value

Non-derivatives:
 
 
 
 
 
 
 
Available for sale securities
61,889

 
61,889

 
76,925

 
76,925

Floating rate NOK bonds due 2014
—

 
—

 
71,854

 
72,032

Floating rate NOK bonds due 2017
93,231

 
97,152

 
92,483

 
93,752

Floating rate NOK bonds due 2019
145,388

 
145,387

 
—

 
—

3.75% unsecured convertible bonds due 2016
125,000

 
135,516

 
125,000

 
130,589

3.25% unsecured convertible bonds due 2018
350,000

 
398,598

 
350,000

 
359,307

Derivatives:
 
 
 
 
 
 
 
Interest rate/ currency swap contracts - short-term and long-term receivables
7,320

 
7,320

 
16,633

 
16,633

Interest rate/ currency swap contracts - short-term payables
2,568

 
2,568

 
5,705

 
5,705

Interest rate/ currency swap contracts - long-term payables
59,980

 
59,980

 
56,490

 
56,490
Schedule of financial assets and liabilities measured at fair value on a recurring basis
The above fair values of financial assets and liabilities as at June 30, 2014, were measured as follows:
 
 
 
 
Fair value measurements using
(in thousands of $)
June 30, 2014

 
Quoted Prices in
Active Markets for
Identical Assets/Liabilities
(Level  1)

 
Significant Other
Observable Inputs
(Level 2)

 
Significant
Unobservable
Inputs
(Level 3)

Assets:
 
 
 
 
 
 
 
Available for sale securities
61,889

 
39,811

 
 
 
22,078

Interest rate/ currency swap contracts - long-term receivables
7,320

 


 
7,320

 
 
Total assets
69,209

 
39,811

 
7,320

 
22,078

Liabilities:
 
 
 
 
 
 
 
Floating rate NOK bonds due 2017
97,152

 
97,152

 
 
 
 
Floating rate NOK bonds due 2019
145,387

 
145,387

 
 
 
 
3.75% unsecured convertible bonds due 2016
135,516

 
135,516

 
 
 
 
3.25% unsecured convertible bonds due 2018
398,598

 
398,598

 
 
 
 
Interest rate/ currency swap contracts – short-term payables
2,568

 
 
 
2,568

 
 
Interest rate/ currency swap contracts – long-term payables
59,980

 


 
59,980

 
 
Total liabilities
839,201

 
776,653

 
62,548

 
—