XML 22 R15.htm IDEA: XBRL DOCUMENT

Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2016

Fair Value of Financial Instruments [Abstract]

NOTE 8 - FAIR VALUE OF FINANCIAL INSTRUMENTS

The carrying value amounts of many of Navios Partners' financial instruments, including cash and cash equivalents, restricted cash, accounts receivable and accounts payable and amounts due to related parties approximate their fair value due primarily to the short-term maturity of the related instruments.

The following methods and assumptions were used to estimate the fair value of each class of financial instrument:

Cash and cash equivalents and restricted cash: The carrying amounts reported in the consolidated balance sheets for interest bearing deposits and money market funds approximate their fair value because of the short maturity of these investments.

Other long-term debt: The book value has been adjusted to reflect the net presentation of deferred finance fees. The outstanding balance of floating rate loans continues to approximate its fair value, excluding the effect of any deferred finance fees.

Term Loan B facility: The fair value of the Company's debt is estimated based on currently available debt with similar contract terms, interest rate and remaining maturities, as well as taking into account our creditworthiness. The book value has been adjusted to reflect the net presentation of deferred finance fees.

The estimated fair values of the Navios Partners' financial instruments are as follows:


	June 30, 2016						December 31, 2015
	Book Value			Fair Value			Book Value			Fair Value
Cash and cash equivalents	$	25,327		$	25,327		$	26,750		$	26,750
Restricted cash	$	1,572		$	1,572		$	7,789		$	7,789
Loans receivable from affiliates	$	1,971		$	1,971		$	1,521		$	1,521
Amounts due to related parties	$	(7,352	)	$	(7,352	)	$	(8,680	)	$	(8,680	)
Term Loan B facility, net	$	(381,417	)	$	(339,215	)	$	(404,977	)	$	(406,410	)
Other long-term debt, net	$	(173,590	)	$	(174,953	)	$	(193,102	)	$	(194,569	)

Fair Value Measurements

The estimated fair value of our financial instruments that are not measured at fair value on a recurring basis, categorized based upon the fair value hierarchy, are as follows:

Level I: Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets that we have the ability to access. Valuation of these items does not entail a significant amount of judgment.

Level II: Inputs other than quoted prices included in Level I that are observable for the asset or liability through corroboration with market data at the measurement date.

Level III: Inputs that are unobservable. The Company did not use any Level 3 inputs as of June 30, 2016 and December 31, 2015.


	Fair Value Measurements at June 30, 2016
	Total			Level I		Level II			Level III
Cash and cash equivalents	$	25,327		$	25,327	$	—		$	—
Restricted cash	$	1,572		$	1,572	$	—		$	—
Loans receivable from affiliates	$	1,971		$	—	$	1,971		$	—
Term Loan B facility, net ⁽¹⁾	$	(339,215	)	$	—	$	(339,215	)	$	—
Other long-term debt, net⁽¹⁾	$	(174,953	)	$	—	$	(174,953	)	$	—

The estimated fair value of our financial instruments that are measured at fair value on a non-recurring basis, categorized based upon the fair value hierarchy, are as follows:


	Fair Value Measurements at June 30, 2016
	Total		Level I		Level II		Level III
Vessel held for sale	$	125,000	$	—	$	125,000	$	—


	Fair Value Measurements at December 31, 2015
	Total			Level I		Level II			Level III
Cash and cash equivalents	$	26,750		$	26,750	$	—		$	—
Restricted cash	$	7,789		$	7,789	$	—		$	—
Loans receivable from affiliates	$	1,521		$	—	$	1,521		$	—
Term Loan B facility, net ⁽¹⁾	$	(406,410	)	$	—	$	(406,410	)	$	—
Other long-term debt, net⁽¹⁾	$	(194,569	)	$	—	$	(194,569	)	$	—

(1	)The fair value of the Company's debt is estimated based currently available debt with similar contract terms, interest rate and remaining maturities as well as taking into account our creditworthiness.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details