Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2013

Assumptions for Determining the Fair Value of Derivatives Using a Monte Carlo Simulation

The fair value of the warrants was determined using a Monte Carlo simulation based on the following assumptions:



	June 24, 2013		December 31, 2012
Strike Price (NOK)	11.50		11.50
Target Price (NOK)	23.00		23.00
Stock Value (NOK)	15.00		13.00
Expected Volatility (%)	40.0	%	50.0	%
Risk-Free Interest Rate (%)	1.42	%	1.44	%
Expected Life of Warrants (5 years at inception)	2.6		3.1
Number of Warrants	5,000,000		5,000,000

Assets Measured at Fair Value on a Recurring Basis

The following table represents the Company’s derivative asset measured at fair value on a recurring basis as of December 31, 2012:



	Total Fair Value Measurement		Quoted Prices in Active Markets for Identical Asset or Liability (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
Warrants - as of December 31, 2012	$	3,964	$	—	$	3,964	$	—

Assets Measured at Fair Value on a Non-Recurring Basis

The following table represents the Company’s assets measured at fair value on a non-recurring basis for which an impairment measurement was made during the nine months ended September 30, 2012:



	Total Fair Value Measurement		Quoted Prices in Active Markets for Identical Asset or Liability (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Gain (Loss)
	(in thousands)
Property and Equipment, Net (1)	$	9,340	$	—	$	7,840	$	1,500	$	(60,693	)
Property and Equipment, Net (2)	$	1,500	$	—	$	—	$	1,500	$	(42,916	)

_____________________

(1) This represents a non-recurring fair value measurement made at September 30, 2012 for Hercules 252 and Hercules 258.

(2) This represents a non-recurring fair value measurement made at June 30, 2012 for Hercules 185.

The following table represents the Company’s assets measured at fair value on a non-recurring basis for which an impairment measurement was made during the nine months ended September 30, 2013:



	Total Fair Value Measurement		Quoted Prices in Active Markets for Identical Asset or Liability (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Gain (Loss)
	(in thousands)
Property and Equipment, Net (1)	$	98,802	$	—	$	98,802	$	—	$	(44,370	)

_____________________

(1) This represents a non-recurring fair value measurement made at June 30, 2013 for various assets that were part of the discontinued operations of the Inland and Domestic Liftboats segments.

Carrying Value and Fair Value of the Company's Long-Term Debt Instruments

The following table provides the carrying value and fair value of the Company’s long-term debt instruments:



	September 30, 2013				December 31, 2012
	Carrying Value		Fair Value		Carrying Value		Fair Value
	(in millions)
8.75% Senior Notes, due July 2021	$	400.0	$	427.0	$	—	$	—
7.125% Senior Secured Notes, due April 2017	300.0		320.1		300.0		317.1
10.5% Senior Notes, due October 2017	295.2		317.6		294.5		326.6
10.25% Senior Notes, due April 2019	200.0		224.8		200.0		219.6
3.375% Convertible Senior Notes, due June 2038	7.1		7.1		67.1		68.5
7.375% Senior Notes, due April 2018	3.5		3.5		3.5		3.3