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FAIR VALUE OF FINANCIAL INSTRUMENTS, DERIVATIVES AND FAIR VALUE DISCLOSURES (Tables)

9 Months Ended

Sep. 30, 2024

FAIR VALUE OF FINANCIAL INSTRUMENTS, DERIVATIVES AND FAIR VALUE DISCLOSURES [Abstract]

Fair Value, by Balance Sheet Grouping

The estimated fair values of the Company’s financial instruments, other than derivatives that are not measured at fair value on a recurring basis, categorized based upon the fair value hierarchy, are as follows:


(Dollars in thousands)		September 30, 2024			December 31, 2023			Fair Value Level
Cash and cash equivalents		$	103,309		$	126,760			Level 1
Short-term investments ⁽¹⁾			50,000			60,000			Level 1
$500 Million Revolving Credit Facility⁽²⁾			(94,581)			(113,598)			Level 2
ING Credit Facility ⁽²⁾			—			(20,833)			Level 2
Ocean Yield Lease Financing ⁽²⁾			(289,987)			(311,907)			Level 2
BoComm Lease Financing ⁽³⁾			(192,343)			(210,186)			Level 2
Toshin Lease Financing ⁽³⁾			(12,149)			(13,566)			Level 2
Hyuga Lease Financing ⁽³⁾			(12,127)			(13,643)			Level 2
Kaiyo Lease Financing ⁽³⁾			(11,062)			(12,419)			Level 2
Kaisha Lease Financing ⁽³⁾			(11,047)			(12,519)			Level 2

(1)	Short-term investments consist of time deposits with original maturities of between 91 and 180 days.

(2)	Floating rate debt – the fair value of floating rate debt has been determined using level 2 inputs and is considered to be equal to the carrying value since it bears a variable interest rate, which is reset every three months.

(3)	Fixed rate debt – the fair value of fixed rate debt has been determined using level 2 inputs by discounting the expected cash flows of the outstanding debt.

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value


(Dollars in thousands)		Current portion of derivative asset			Long-term derivative assets			Other receivables
September 30, 2024:
Derivatives designated as hedging instruments:
Interest rate swaps		$	2,087		$	214		$	710
Total		$	2,087		$	214		$	710

December 31, 2023:
Derivatives designated as hedging instruments:
Interest rate swaps		$	5,081		$	1,153		$	961
Total		$	5,081		$	1,153		$	961

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Loss

The effect of cash flow hedging relationships recognized in other comprehensive income excluding amounts reclassified from accumulated other comprehensive income for the three and nine months ended September 30, 2024 and 2023 follows:


		Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands)			2024			2023			2024			2023
Derivatives designated as hedging instruments:
Interest rate swaps		$	(2,383)		$	1,897		$	1,766		$	6,291
Total other comprehensive (loss)/income		$	(2,383)		$	1,897		$	1,766		$	6,291

The effect of the Company’s cash flow hedging relationships on the condensed consolidated statement of operations for the three and nine months ended September 30, 2024 and 2023 follows:


		Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands)			2024			2023			2024			2023
Derivatives designated as hedging instruments:
Interest rate swaps		$	(1,734)		$	(2,343)		$	(5,699)		$	(6,328)

Discontinued hedging instruments:
Interest rate swap			(160)			(522)			(769)			(1,688)

Total interest expense		$	(1,894)		$	(2,865)		$	(6,468)		$	(8,016)

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following table presents the fair values, which are pre-tax, for assets and liabilities measured on a recurring basis:


(Dollars in thousands)		September 30, 2024			December 31, 2023			Fair Value Level
Derivative Assets (interest rate swaps)		$	3,011		$	7,195			Level 2⁽¹⁾

(1)

For the interest rate swaps, fair values are derived using valuation models that utilize the income valuation approach. These valuation models take into account contract terms such as maturity, as well as other inputs such as interest rate yield curves and creditworthiness of the counterparty and the Company.