XML 63 R25.htm IDEA: XBRL DOCUMENT

Fair value of financial instruments

12 Months Ended

Dec. 31, 2023

Fair Value Disclosures [Abstract]

Fair value of financial instruments

NOTE 12 – FAIR VALUE OF FINANCIAL INSTRUMENTS Fair value of financial instruments

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

Fair value of financial instruments

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

Cash and cash equivalents: The carrying amounts reported in the Consolidated Balance Sheets for interest bearing deposits approximate their fair value because of the short maturity of these deposits.

Restricted cash: The carrying amounts reported in the Consolidated Balance Sheets for interest bearing deposits approximate their fair value because of the short maturity of these deposits.

Other investments: The carrying amounts reported in the Consolidated Balance Sheets for interest bearing deposits approximate their fair value.

Amounts due from related parties, long-term: The carrying amount of due from related parties long-term reported in the Consolidated Balance Sheets approximates its fair value.

Amounts due to related parties, short-term: The carrying amount of due to related parties, short-term reported in the Consolidated Balance Sheets approximates its fair value due to the short-term nature of these payables.

Credit facilities and financial liabilities, including current portion, net: The book value has been adjusted to reflect the net presentation of deferred finance costs. The outstanding balance of the floating rate credit facilities and financial liabilities continues to approximate its fair value, excluding the effect of any deferred finance costs.

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

Fair Value of Financial Instruments

		December 31, 2023						December 31, 2022
		Book Value			Fair Value			Book Value			Fair Value
Cash and cash equivalents	$	240,378		$	240,378		$	157,814		$	157,814
Restricted cash	$	8,797		$	8,797		$	17,284		$	17,284
Other investments	$	47,000		$	47,000		$	—		$	—
Amounts due from related parties, long-term	$	39,570		$	39,570		$	41,403		$	41,403
Amounts due to related parties, short-term	$	(32,026)		$	(32,026)		$	(104,751)		$	(104,751)
Credit facilities and financial liabilities, including current portion, net	$	(1,393,049)		$	(1,410,563)		$	(1,556,440)		$	(1,569,972)

Fair Value Measurements

The estimated fair value of the Company’s 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 the Company has 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 III inputs as of December 31, 2022.

		Fair Value Measurements as at December 31, 2023
		Total			Level I			Level II			Level III
Cash and cash equivalents	$	240,378		$	240,378		$	—		$	—
Restricted cash	$	8,797		$	8,797		$	—		$	—
Other investments	$	47,000		$	47,000		$	—		$	—
Amounts due from related parties, long-term	$	39,570		$	—		$	39,570		$	—
Amounts due to related parties, short-term	$	(32,026)		$	—		$	(32,026)		$	—
Credit facilities and financial liabilities, including current portion, net ⁽¹⁾	$	(1,410,563)		$	—		$	(1,410,563)		$	—

		Fair Value Measurements as at December 31, 2022
		Total			Level I			Level II			Level III
Cash and cash equivalents	$	157,814		$	157,814		$	—		$	—
Restricted cash	$	17,284		$	17,284		$	—		$	—
Amounts due from related parties, long-term	$	41,403		$	—		$	41,403		$	—
Amounts due to related parties, short-term	$	(104,751)		$	—		$	(104,751)		$	—
Credit facilities and financial liabilities, including current portion, net ⁽¹⁾	$	(1,569,972)		$	—		$	(1,569,972)		$	—

(1) The fair value of the Company’s credit facilities and financial liabilities is estimated based on currently available credit facilities, financial liabilities, interest rate and remaining maturities as well as taking into account the Company’s creditworthiness.

The estimated fair value of the Company’s right-of-use asset measured at fair value on a non-recurring basis (See Note 20 - Leases), is based on what a market participant would pay for the right-of-use asset for its highest and best use calculated using discounted cash flow, which comprises various assumptions, including the Company’s discount factor of 11.0% and is categorized based upon the fair value hierarchy as follows:

		Fair Value Measurements as at December 31, 2023
		Total			Level I			Level II			Level III
Operating leases	$	3,595		$	—		$	—		$	3,595

The estimated fair value of the Company’s vessels measured at fair value on a non-recurring basis, is based on the concluded sales price and is categorized based upon the fair value hierarchy as follows:

		Fair Value Measurements as at December 31, 2022
		Total			Level I			Level II			Level III
Vessels, net	$	57,402		$	—		$	57,402		$	—

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