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Derivative Instruments And Hedging Activities | 12 Months Ended
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Dec. 31, 2013
Derivative Instruments And Hedging Activities [Abstract] |
Derivative Instruments And Hedging Activities | Note 16 — Derivative Instruments and Hedging Activities Derivatives designated as hedging instruments are as follows (in thousands):
|  | As of December 31, 2013 |  | As of December 31, 2012 |
|  | Balance Sheet |  | Fair |  | Balance Sheet |  | Fair |
|  | Location |  | Value |  | Location |  | Value |
Asset Derivatives: |  |  |  |  |  |  |  |  |
Interest rate swaps |  | Other assets, net | $ | 446 |  | Other assets, net | $ | - |
|  |  | $ | 446 |  |  | $ | - |
Liability Derivatives: |  |  |  |  |  |  |  |  |
Foreign exchange contracts |  | Accrued liabilities | $ | 1,905 |  | Accrued liabilities | $ | - |
Interest rate swaps |  | Accrued liabilities |  | 746 |  | Accrued liabilities |  | - |
Foreign exchange contracts |  | Other non-current liabilities |  | 13,166 |  | Other non-current liabilities |  | - |
|  |  | $ | 15,817 |  |  | $ | - |
Derivatives that were not designated as hedging instruments are as follows (in thousands):
|  | As of December 31, 2013 |  | As of December 31, 2012 |
|  | Balance Sheet |  | Fair |  | Balance Sheet |  | Fair |
|  | Location |  | Value |  | Location |  | Value |
Asset Derivatives: |  |  |  |  |  |  |  |  |
Oil contracts |  | Other current assets | $ | - |  | Other current assets | $ | 5,800 |
Foreign exchange contracts |  | Other current assets |  | 69 |  | Other current assets |  | 146 |
|  |  | $ | 69 |  |  | $ | 5,946 |
Liability Derivatives: |  |  |  |  |  |  |  |  |
Oil contracts |  | Accrued liabilities | $ | - |  | Accrued liabilities | $ | 15,777 |
Interest rate swaps |  | Accrued liabilities |  | - |  | Accrued liabilities |  | 489 |
Interest rate swaps |  | Other non-current liabilities |  | - |  | Other non-current liabilities |  | 32 |
|  |  | $ | - |  |  | $ | 16,298 |
As a result of the announcement in December 2012 of the sale of ERT, we de-designated all of our remaining oil and natural gas derivative contracts as hedging instruments. In addition, under the terms of our former credit agreement (Note 7), we were required to use a portion of the proceeds from the sales of ERT, the Caesar and the Express to make payments to reduce our indebtedness. Because of the probability that the former term loan debt would be totally repaid before the expiration of our then existing interest rate swaps, we also concluded that those swaps no longer qualified as cash flow hedges. At December 31, 2012, we recorded the mark-to-market adjustments for these derivatives to reflect the changes in their fair values and to recognize amounts previously recorded in accumulated other comprehensive income (loss) and related deferred taxes into earnings. The mark-to-market adjustments related to our commodity derivative contracts and interest rate swaps are reflected in “Loss on commodity derivative contracts” and “Other income (expense), net”, respectively, in the accompanying consolidated statements of operations. In February 2013, we settled all of our remaining commodity derivative contracts and then existing interest rate swap contracts for payments of approx imately $22.5 million and $0.6 millio n, respectively. In January 2013, we entered into foreign currency exchange contracts to hedge through September 2017 the foreign currency exposure associated with the Grand Canyon charter payments ($104.6 million) denominated in Norwegian kroner (NOK591.3 mil lion). In February 2013, we entered into similar foreign currency exchange contracts for the Grand Canyon II and Grand Canyon III charter payments ($100.4 million and $98.8 million, respectively) denominated in Norwegian kroner (NOK594.7 million and NOK595.0 million, respectively), through July 2019 and February 2020, respectively. These contracts currently qualify for hedge accounting treatment. All of our remaining foreign exchange contracts are not accounted for as hedge contracts and changes in their fair value are marked-to-market in earnings in each reporting period. In September 2013, we entered into interest rate swap contracts to fix the interest rate on $148.1 million of our Term Loan debt. These monthly contracts beg a n in October 2013 and extend throug h October 2016. These contracts are accounted for under hedge accounting. The following tables present the impact that derivative instruments designated as cash flow hedges had on our accumulated comprehensive income (loss) and our consolidated statements of operations for the years ended December 31, 2013, 2012 a nd 2011 (in thousands). The amount of any ineffectiveness associated with our cash flow hedges was immaterial for the years ended December 31, 2013, 2012 and 2011.
|  | Gain (Loss) Recognized in OCI |
|  | on Derivatives, Net of Tax |
|  | (Effective Portion) |
|  | Year Ended December 31, |
|  | 2013 |  |  | 2012 |  |  | 2011 |
Foreign exchange contracts | $ | (9,796) |  | $ | - |  | $ | - |
Oil and natural gas commodity contracts |  | - |  |  | (12,860) |  |  | 28,749 |
Interest rate swaps |  | (195) |  |  | (81) |  |  | 1,294 |
| $ | (9,991) |  | $ | (12,941) |  | $ | 30,043 |
|  |  |  |  | Gain (Loss) Reclassified from |
|  | Location of Gain (Loss) |  |  | Accumulated OCI into Income |
|  | Reclassified from |  |  | (Effective Portion) |
|  | Accumulated OCI into Income |  |  | Year Ended December 31, |
|  | (Effective Portion) |  |  | 2013 |  |  | 2012 |  |  | 2011 |
Oil and natural gas commodity contracts |  | Income from discontinued operations, net of tax |  | $ | - |  | $ | 3,184 |  | $ | (21,659) |
Interest rate swaps |  | Net interest expense |  |  | (152) |  |  | (523) |  |  | (2,010) |
Foreign exchange contracts |  | Cost of sales |  |  | (1,324) |  |  | - |  |  | - |
|  |  |  | $ | (1,476) |  | $ | 2,661 |  | $ | (23,669) |
The following table presents the impact that derivative instruments not designated as hedges had on our consolidated statement of operations for the years ended December 31, 2013, 2012 and 2011 (in thousands):
|  |  |  |  | Gain (Loss) Recognized |
|  | Location of Gain (Loss) |  |  | in Income on Derivatives |
|  | Recognized in Income |  |  | Year Ended December 31, |
|  | on Derivatives |  |  | 2013 |  |  | 2012 |  |  | 2011 |
Oil and natural gas commodity contracts |  | Income from discontinued operations, net of tax |  | $ | - |  | $ | 5,550 |  | $ | - |
Oil and natural gas commodity contracts |  | Loss on commodity derivative contracts |  |  | (14,113) |  |  | (10,507) |  |  | - |
Interest rate swaps |  | Other expense, net |  |  | (86) |  |  | (567) |  |  | - |
Foreign exchange contracts |  | Other expense, net |  |  | (630) |  |  | 411 |  |  | 249 |
|  |  |  | $ | (14,829) |  | $ | (5,113) |  | $ | 249 |

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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4K -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5708775-113959 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624163-113959 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(n)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4J -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5708773-113959 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 25 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6886632&loc=d3e76258-113986 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41635-113959 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4H -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624258-113959 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5618551-113959 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 30 -Section 45 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6441202&loc=d3e80720-113993 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=7668309&loc=d3e80748-113994 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4E -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624181-113959 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=7668309&loc=d3e80784-113994 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41620-113959 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4D -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624177-113959 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1A -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5579245-113959 Reference 16: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1B -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5580258-113959 Reference 17: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5579240-113959 Reference 18: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41641-113959 Reference 19: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41638-113959 Reference 20: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624171-113959 + Details
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