As of December 31, 2017 | As of December 31, 2016 | |||||||||||||
Amounts in thousands of U.S. dollars | Fair value | Carrying Value | Fair value | Carrying Value | ||||||||||
Financial assets | ||||||||||||||
Cash and cash equivalents (1) | $ | 186,462 | $ | 186,462 | $ | 99,887 | $ | 99,887 | ||||||
Restricted cash (2) | 11,387 | 11,387 | — | — | ||||||||||
Loans and receivables (3) | 65,458 | 65,458 | 42,329 | 42,329 | ||||||||||
Derivatives at fair value through profit or loss (4) | — | — | 116 | 116 | ||||||||||
Financial liabilities | ||||||||||||||
Accounts payable (5) | $ | 13,044 | $ | 13,044 | $ | 9,282 | $ | 9,282 | ||||||
Accrued expenses (5) | 32,838 | 32,838 | 23,024 | 23,024 | ||||||||||
Secured bank loans (6) | 1,615,248 | 1,615,248 | 1,466,940 | 1,466,940 | ||||||||||
Finance lease liability (7) | 717,139 | 717,139 | — | — | ||||||||||
Unsecured Senior Notes Due 2020 (8) | 53,449 | 53,750 | 48,252 | 53,750 | ||||||||||
Unsecured Senior Notes Due 2017 (8) | — | — | 52,330 | 51,750 | ||||||||||
Unsecured Senior Notes Due 2019 (8) | 58,466 | 57,500 | — | — | ||||||||||
Convertible Notes (9) | 316,184 | 348,500 | 286,321 | 348,500 | ||||||||||
(1) | Cash and cash equivalents are considered Level 1 items as they represent liquid assets with short-term maturities. |
(2) | Restricted cash are considered Level 1 items due to the liquid nature of these assets. |
(3) | We consider that the carrying amount of accounts receivable approximate their fair value due to the relative short maturity of these instruments. |
(4) | The derivative financial instrument at December 31, 2016 consists of the profit or loss agreement relating to Densa Crocodile whereby the profits or losses above or below the daily time charter rate were shared with a third party who neither owned nor operated the vessel. This instrument was recorded at the present value of estimated future cash flows which were derived from observable time charter rates and discounted based on the applicable yield curves to determine the fair value. As such, we classified this liability as a Level 2 fair value measurement. This agreement expired in January 2017. |
(5) | We consider that the carrying amounts of accounts payable and accrued expenses approximate the fair value due to the relative short maturity of these instruments. |
(6) | The carrying value of our secured bank loans are measured at amortized cost using the effective interest method. We consider that their carrying value approximates fair value because the interest rates on these instruments change with, or approximate, market interest rates. Accordingly, we consider their fair value to be a Level 2 measurement. These amounts are shown net of $29.9 million and $31.1 million of unamortized deferred financing fees as of December 31, 2017 and 2016, respectively. |
(7) | The carrying value of our obligations due under finance lease arrangements are measured at amortized cost using the effective interest method. We consider that their carrying value approximates fair value because the interest rates on these instruments change with, or approximate, market interest rates. These amounts are shown net of $1.2 million of unamortized deferred financing fees as of December 31, 2017. |
(8) | The carrying value of our Unsecured Senior Notes Due 2020 and 2019 are measured at amortized cost using the effective interest method. The carrying values shown in the table are the face value of the notes. These notes are shown net of $0.8 million and $1.5 million of unamortized deferred financing fees, respectively, on our consolidated balance sheet as of December 31, 2017. Our Senior Notes Due 2020 and 2019 are quoted on the New York Stock Exchange under the symbols 'SBNA' and 'SBBC', respectively. We consider their fair values to be Level 1 measurements due to their quotation on an active exchange. |
(9) | The carrying value of our Convertible Notes shown in the table above is its face value. The liability component of the Convertible Notes has been recorded within Long-term debt on the consolidated balance sheet as of December 31, 2017, net of $2.8 million of unamortized deferred financing fees. The equity component of the Convertible Notes has been recorded within Additional paid-in capital on the consolidated balance sheet, net of $1.9 million of deferred financing fees. We consider its fair value to be a Level 2 measurement. |