FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2017

FINANCIAL INSTRUMENTS

Schedule of derivative instruments

At September 30, 2017, the Company was a party to the following interest rate swaps, which are designated as cash flow hedges that effectively fix the interest rates for a portion of the Refinancing Facility, the Korean Export Credit Facility and the Sinosure Credit Facility (dollars in thousands): 

	September 30, 2017
	Notional		Effective		Maturity		Fair Value		Fixed		Floating
Hedged Credit Facility	Amount		Date		Date		Hierarchy		Interest Rate		Interest Rate
Refinancing Facility	$	88,041		4/10/2017		9/3/2020		Level 2		1.6600%	1 mo. LIBOR
Refinancing Facility		22,010		4/18/2017		9/3/2020		Level 2		1.6480%	1 mo. LIBOR
Korean Export Credit Facility (1)		462,400		4/10/2017		9/30/2020		Level 2		1.8380%	3 mo. LIBOR
Korean Export Credit Facility (1)		86,700		4/10/2017		9/30/2020		Level 2		1.8645%	3 mo. LIBOR
Korean Export Credit Facility (1)		28,900		4/18/2017		9/30/2020		Level 2		1.8180%	3 mo. LIBOR
Sinosure Credit Facility		322,758		4/10/2017		3/21/2022		Level 2		2.0470%	3 mo. LIBOR

(1) The initial aggregate notional amount of $599.7 million under the three interest rate swaps increased up to the maximum aggregate notional amount of $610.0 million in October 2017 in order to effectively fix the interest rate on the target percentage of expected borrowings. The swap notional will amortize down hereafter.

Schedule of quantitative information about the impact of derivatives on the Company’s balance sheet and statement of operations

The tables below provide quantitative information about the impact of derivatives on the Company’s condensed consolidated balance sheet and statement of operations (dollars in thousands):

		September 30, 2017				December 31, 2016
	Balance Sheet	Fair Value of Derivatives				Fair Value of Derivatives
	Location	Asset		Liability		Asset		Liability
Derivatives designated as hedging instruments
Interest rate swap contracts - current	Current assets	$	—	$	—	$	—	$	—
Interest rate swap contracts - non-current	Non-current assets		234		1,025		19,585		—
Interest rate swap contracts - current	Current liabilities		(203)		(3,280)		(1,552)		—
Interest rate swap contracts - non-current	Non-current liabilities		—		(166)		—		—
Total derivatives designated as hedging instruments		$	31	$	(2,421)	$	18,033	$	—

Schedule of offsetting derivative assets and liabilities

	Offsetting of Derivative Assets
	September 30, 2017
							Gross Amounts Not Offset
	Gross		Gross		Net Amounts		in the Balance Sheet
	Amounts of		Amounts		of Assets				Cash
	Recognized		Offset in the		presented in the		Financial		Collateral
	Assets		Balance Sheet		Balance Sheet		Instruments		Pledged		Net Amount
Counterparty 1	$	—	$	22	$	22	$	(22)	$	—	$	—
Counterparty 2		—		9		9		(9)		—		—
Counterparty 3		—		—		—		—		—		—
Total	$	—	$	31	$	31	$	(31)	$	—	$	—
	Offsetting of Derivative Assets
	December 31, 2016
							Gross Amounts Not Offset
	Gross		Gross		Net Amounts		in the Balance Sheet
	Amounts of		Amounts		of Assets				Cash
	Recognized		Offset in the		presented in the		Financial		Collateral
	Assets		Balance Sheet		Balance Sheet		Instruments		Pledged		Net Amount
Counterparty 1	$	15,577	$	1,314	$	16,891	$	(1,314)	$	—	$	15,577
Counterparty 2		975		80		1,055		(80)		—		975
Counterparty 3		1,481		158		1,639		(158)		—		1,481
Total	$	18,033	$	1,552	$	19,585	$	(1,552)	$	—	$	18,033
	Offsetting of Derivative Liabilities
	September 30, 2017
							Gross Amounts Not Offset
	Gross		Gross		Net Amounts		in the Balance Sheet
	Amounts of		Amounts		of Liabilities				Cash
	Recognized		Offset in the		presented in the		Financial		Collateral
	Liabilities		Balance Sheet		Balance Sheet		Instruments		Pledged		Net Amount
Counterparty 1	$	(2,226)	$	(22)	$	(2,248)	$	22	$	—	$	(2,226)
Counterparty 2		(8)		(9)		(17)		9		—		(8)
Counterparty 3		(157)		—		(157)		—		—		(157)
Total	$	(2,391)	$	(31)	$	(2,422)	$	31	$	—	$	(2,391)
	Offsetting of Derivative Liabilities
	December 31, 2016
							Gross Amounts Not Offset
	Gross		Gross		Net Amounts		in the Balance Sheet
	Amounts of		Amounts		of Liabilities				Cash
	Recognized		Offset in the		presented in the		Financial		Collateral
	Liabilities		Balance Sheet		Balance Sheet		Instruments		Pledged		Net Amount
Counterparty 1	$	—	$	(1,314)	$	(1,314)	$	1,314	$	—	$	—
Counterparty 2		—		(80)		(80)		80		—		—
Counterparty 3		—		(158)		(158)		158		—		—
Total	$	—	$	(1,552)	$	(1,552)	$	1,552	$	—	$	—

Schedule of fair value and cash flow hedge accounting on the statements of operations

The following table provides the effect of fair value and cash flow hedge accounting on the condensed consolidated statements of operations (dollars in thousands):

	For the nine months ended September 30,
	2017		2016
Interest expense, net (where the effects of fair value or cash flow hedges are recorded)	$	(63,040)	$	(31,355)
The effects of fair value and cash flow hedging
Gain / (loss) on cash flow hedging relationships in Subtopic 815-20:
Interest rate contracts:
Amount reclassified from AOCI to net (loss) income on derivative	$	(1,228)	$	1,502
Amount reclassified from AOCI to net (loss) income as a result that a forecasted transaction is no longer probable of occurring		—		—

Schedule of effect of derivatives on the statements of operations

The following table provides the effect of derivatives on the condensed consolidated statements of operations (dollars in thousands):

	Location of Gain or
	(Loss) Reclassified	Three Months Ended				Nine Months Ended
Derivatives in Cash Flow	from AOCI to	September 30,				September 30,
Hedging Relationships	Income	2017		2016		2017		2016
Interest rate swap contracts (Effective Portion)
Amount recognized in other comprehensive income (loss) on derivative	Interest Expense, net	$	(2,003)	$	(5,207)	$	(6,359)	$	8,901
Amount reclassified from AOCI to net (loss) income on derivative	Interest Expense, net		(319)		1,342		(1,228)		1,502