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Hedging (Tables)
 12 Months Ended
Dec. 31, 2013
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of foreign currency derivatives not designated as hedges
These 30-day euro forward contracts are not designated as hedging instruments, and gains and losses on these forward contracts are recognized currently in "Cost of sales" as follows:
  
Year ended December 31,
(In thousands)
2013
 
2012
 
2011
Gains (losses) on 30-day euro forward contracts
$
(4,367
)
 
$
(2,812
)
 
$
4,267

Gains (losses) from fluctuations in the value of the net monetary assets exposed to euro exchange rates
2,783

 
(2,187
)
 
(13,115
)
Outstanding positions in the company's hedge portfolio
At December 31, 2013, the company's hedge portfolio was comprised of the following outstanding positions:
 
Notional
Amount
Contract Average
Rate/Price
Settlement
Period
Derivatives designated as hedging instruments:
 
 
 
Currency derivatives:
 
 
 
Purchased euro put options
€133 million
$1.32/€
2014
Sold euro call options
€133 million
$1.39/€
2014
Average rate forward contracts
€94 million
$1.34/€
2014
Purchased euro put options
€50 million
$1.35/€
20152
Sold euro call options
€50 million
$1.39/€
20152
 
 
 
 
3.5% Rotterdam Barge fuel derivatives:
 
 
 
Bunker fuel forward contracts1
90,504 mt
$581/mt
2014
Bunker fuel forward contracts
59,800 mt
$556/mt
20152
 
 
 
 
Derivatives not designated as hedging instruments:
 
 
 
30-day euro forward contracts
€52 million
$1.38/€
January 2014
1 
As described in the paragraph above, new cash flow hedge relationships were established for certain bunker fuel forward contracts in 2011. These changes result in hedge rates for accounting purposes that are different from those in the hedge contract terms.
2 
Settlement periods for bunker fuel forward contracts and currency derivatives are through September 2015 and March 2015, respectively.
Activity related to the company's derivative assets and liabilities designated as hedging instruments
Activity related to the company's derivative assets and liabilities designated as hedging instruments is as follows:
(In thousands)
Currency
Hedge
Portfolio
 
Bunker Fuel
Forward
Contracts
Balance at December 31, 2011
$
5,232

 
$
14,754

Realized (gains) losses included in net income
(651
)
 
(16,053
)
Purchases (sales), net2
850

 
—

Changes in fair value
(28,646
)
 
9,871

Balance at December 31, 2012
$
(23,215
)
 
$
8,572

Realized (gains) losses included in net income
22,476

 
(7,470
)
Transfers1
7,638

 
193

Purchases (sales), net2
1,167

 
—

Changes in fair value
(13,080
)
 
(307
)
Balance at December 31, 2013
$
(5,014
)
 
$
988

1 
Represents the fair value at the transfer date of positions where hedge accounting was terminated. See discussions above.
2 
Purchases (sales) represent the cash premiums paid upon the purchase of euro put options or received upon the sale of euro call options. Bunker fuel and currency forward contracts require no up-front cash payment and have an initial fair value of zero; settlements on the forward contracts (swaps) occur upon their maturity.
Schedule of cash flow hedges included in accumulated other comprehensive income (loss)
Deferred net gains (losses) in "Accumulated other comprehensive income (loss)" at December 31, 2013 are expected to be reclassified into income as follows in thousands:
Expected Period of Recognition
 
Currency
Hedge
Portfolio
 
Bunker
Fuel
Forward
Contracts
 
Total
2014
 
$
(5,708
)
 
$
(111
)
 
$
(5,819
)
2015
 
(473
)
 
638

 
165

 
 
$
(6,181
)
 
$
527

 
$
(5,654
)
Effect of the company's derivatives designated as cash flow hedging instruments on OCI and earnings
The following table summarizes the effect of the company's derivatives designated as cash flow hedging instruments on OCI and earnings:
 
Year Ended December 31, 2013
 
Year Ended December 31, 2012
(In thousands)
Currency
Hedge
Portfolio
 
Bunker
Fuel
Forward
Contracts
 
Total
 
Currency
Hedge
Portfolio
 
Bunker
Fuel
Forward
Contracts
 
Total
Gain (loss) recognized in OCI on derivative (effective portion)
$
(12,559
)
 
$
1,448

 
$
(11,111
)
 
$
(27,467
)
 
$
10,539

 
$
(16,928
)
Gain (loss) reclassified from AOCI into income (effective portion)1
(29,858
)
 
7,470

 
(22,388
)
 
1,240

 
16,053

 
17,293

Gain (loss) recognized in income on derivative (ineffective portion)1
—

 
(1,562
)
 
(1,562
)
 
—

 
(668
)
 
(668
)
1 
Both the gain (loss) reclassified from accumulated OCI into income (effective portion) and the gain (loss) recognized in income on derivative (ineffective portion), if any, are included in "Net sales" for the currency hedge portfolio and "Cost of sales" for bunker fuel forward contracts.