Investment in Global

12 Months Ended

Dec. 31, 2014

Investments, Debt and Equity Securities [Abstract]

Investment in Global

(4) INVESTMENT IN GLOBAL

Our non-current available-for-sale investment consists of our ownership of approximately 35% of Global’s outstanding ordinary shares at December 31, 2014.

During 2014, we purchased an additional 343 thousand shares of Global for $422 thousand, increasing our ownership from 34.51% to 35.46%. During 2013, we purchased an additional 105 thousand shares of Global for $171 thousand. At December 31, 2014 and 2013, our investment in Global was equal to the market value of Global’s ordinary shares as follows (in thousands, except share amounts):

	December 31, 2014		December 31, 2013
Shares of Global Stock Held by HKN		12,805		12,462
Closing Price of Global Stock	£	0.50	£	0.94
Foreign Currency Exchange Rate		1.5586		1.6574
Market Value of Investment in Global	$	9,979	$	19,312

The foreign currency translation adjustment of approximately $548 thousand, the unrealized loss on investment of $9.2 million for the changes in market value between the two periods, and an other than temporary impairment loss of $937 thousand were recorded to other comprehensive income in stockholders’ equity during the year ended December 31, 2014.

The decrease in Global’s market value below our costs was previously determined to be temporary as of September 30, 2014 due to the recent nature of the decline and the increase in share price subsequent to the reporting date. However, as of December 31, 2014, we continued to have a cumulative unrealized loss position on our investment in Global. Therefore, we assessed the decline in market value again to determine whether it was considered a temporary or other than temporary impairment. Although we intend to hold the investment, after reviewing Global’s published operational updates and plans, the severity and duration of the decline and analyzing the historical price volatility and decreases in share price subsequent to this reporting date, we determined the impairment to be other than temporary as of December 31, 2014. As a result, we recognized an impairment loss of $937 thousand within the HKN operating segment of our consolidated statements of operations. No unrealized loss position existed at December 31, 2013 and no impairment was recognized on the investment in Global during 2013.