XML 81 R17.htm IDEA: XBRL DOCUMENT v2.4.0.8
Derivative instruments
 12 Months Ended
Dec. 31, 2013
Derivative Instruments And Hedging Activities Disclosure [Abstract]  
Derivative instruments

10. Derivative instruments

The tables below disclose the types of derivative instruments the Company owns, the classifications and fair values of these instruments within the balance sheet, and the amount of gain (loss) recognized in other comprehensive income (loss) (“OCI”) or net income (loss).

 

(U.S. Dollars in thousands)

    Fair value: favorable
(unfavorable)		     Balance sheet location
As of December 31, 2013     

Cross-currency swap

    $ (1,036 )    Other long-term liabilities
As of December 31, 2012     

Cross-currency swap

    $ 305      Other long-term assets

 

     For the year ended
December 31,		  

(U.S. Dollars in thousands)

    2013     2012      2011  

Cross-currency swap gain (loss) recorded in other comprehensive income (loss), net of taxes

    $ (278 )    $ 263       $ (437 ) 

Cross-currency swap

On September 30, 2010, the Company entered into a cross-currency swap agreement (the “replacement swap agreement”) with JPMorgan Chase Bank and Royal Bank of Scotland PLC (the “counterparties”) to manage its cash flows related to foreign currency exposure for a portion of the Company’s intercompany receivable of a U.S. dollar functional currency subsidiary that is denominated in Euro.

Under the terms of the swap agreement, the Company pays Euros based on a €28.7 million notional value and a fixed rate of 5.00% and receives U.S. dollars based on a notional value of $39 million and a fixed rate of 4.635%. The expiration date is December 30, 2016, the date upon which the underlying intercompany debt, to which the swap agreement applies, matures. The swap agreement is designated as a cash flow hedge and therefore the Company recognized an unrealized gain (loss) on the change in fair value, net of tax, within other comprehensive income.