Annual report pursuant to Section 13 and 15(d)

Financial Instruments Financial Instruments (Tables)

v2.4.0.8
Financial Instruments Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2013
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
December 31, 2013 and 2012, which are classified as other current assets, other current liabilities and other non-current liabilities in our Consolidated Balance Sheets.
 
Fair Value Measurements as of
 
December 31, 2013
 
December 31, 2012
 
Quoted Prices in Active Markets
(Level 1)
 
Significant Other Observable Inputs (Level 2)
 
Significant Unobservable Inputs (Level 3)
 
Total
 
Quoted Prices in Active Markets
(Level 1)
 
Significant Other Observable Inputs (Level 2)
 
Significant Unobservable Inputs (Level 3)
 
Total
LNG Inventory Derivatives asset (liability)
$
—

 
$
(161
)
 
$
—

 
$
(161
)
 
$
—

 
$
232

 
$
—

 
$
232

Fuel Derivatives asset (liability)
—

 
27

 
—

 
27

 
—

 
(98
)
 
—

 
(98
)
Interest Rate Derivatives asset (liability)
—

 
84,639

 
—

 
84,639

 
—

 
(26,424
)
 
—

 
(26,424
)
Fair Value, by Balance Sheet Grouping




Fair Value Measurements as of

Balance Sheet Location

December 31, 2013
 
December 31, 2012
LNG Inventory Derivatives asset (liability)
Prepaid expenses and other

$
(161
)
 
$
232

Fuel Derivatives asset
Prepaid expenses and other
 
27

 
—

Fuel Derivatives liability
Other current liabilities
 
—

 
98

Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block]
years ended December 31, 2013, 2012 and 2011:
 
Year Ended December 31,
 
2013
 
2012
 
2011
Interest Rate Derivatives - Not Designated
$
88,596

 
$
679

 
$
—

The following table (in thousands) shows the changes in the fair value and settlements of our Fuel Derivatives and LNG Inventory Derivatives recorded in derivative gain (loss) on our Consolidated Statements of Operations during the years ended December 31, 2013, 2012 and 2011:
 
Year Ended December 31,
 
2013
 
2012
 
2011
LNG Inventory Derivatives gain
$
476

 
$
—

 
$
—

Fuel Derivatives gain (loss)(1)
181

 
(622
)
 
(2,251
)

The following table (in thousands) shows the changes in the fair value and settlements of our LNG Inventory Derivatives recorded in revenues (losses) on our Consolidated Statements of Operations during the years ended December 31, 2013, 2012 and 2011:
 
Year Ended December 31,
 
2013
 
2012
 
2011
LNG Inventory Derivatives gain (loss)
$
(463
)
 
$
1,036

 
$
2,300

Schedule of Notional Amounts of Outstanding Derivative Positions
At December 31, 2013, Sabine Pass Liquefaction had the following Interest Rate Derivatives outstanding:
 
 
Initial Notional Amount
 
Maximum Notional Amount
 
Effective Date
 
Maturity Date
 
Weighted Average Fixed Interest Rate Paid
 
Variable Interest Rate Received
Interest Rate Derivatives - Not Designated
 
$20.0 million
 
$2.9 billion
 
August 14, 2012
 
July 31, 2019
 
1.98%
 
One-month LIBOR
Interest Rate Derivatives - Not Designated
 
—
 
$671.0 million
 
June 5, 2013
 
May 28, 2020
 
2.05%
 
One-month LIBOR
Schedule of Interest Rate Derivatives
 
 
 
 
Fair Value Measurements as of
 
 
Balance Sheet Location
 
December 31, 2013
 
December 31, 2012
Interest Rate Derivatives - Not Designated
 
Non-current derivative assets
 
$
98,123

 
$
—

Interest Rate Derivatives - Not Designated
 
Other current liabilities
 
13,484

 
—

Interest Rate Derivatives - Designated
 
Non-current derivative liabilities
 
—

 
21,290

Interest Rate Derivatives - Not Designated
 
Non-current derivative liabilities
 
—

 
5,134

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)
year ended December 31, 2013:
 
Gain (Loss) in Other Comprehensive Income
 
Gain (Loss) Reclassified from Accumulated OCI into Interest Expense (Effective Portion)
 
Losses Reclassified into Earnings as a Result of Discontinuance of Cash Flow Hedge Accounting
 
2013
 
2012
 
2013
 
2012
 
2013
 
2012
Interest Rate Derivatives - Designated
$
21,297

 
$
(21,290
)
 
$
—

 
$
—

 
$
—

 
$
—

Interest Rate Derivatives - De-designated
—

 
(5,814
)
 
—

 
—

 
$
5,807

 
—

Interest Rate Derivatives - Settlements
(30
)
 
(136
)
 
—

 
—

 
166

 
—

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value
commodity and interest rate derivatives are presented on a net basis on our Consolidated Balance Sheets as described above. The following table (in thousands) shows the fair value of our derivatives outstanding on a gross and net basis:
 
 
Gross Amounts Recognized
 
Gross Amounts Offset in our Consolidated Balance Sheets
 
Net Amounts Presented in our Consolidated Balance Sheets
 
Gross Amounts not Offset in our Consolidated Balance Sheets
 
 
Offsetting Derivative Assets (Liabilities)
 
 
 
 
Derivative Instrument
 
Cash Collateral Received (Paid)
 
Net Amount
As of December 31, 2013:
 
 
 
 
 
 
 
 
 
 
 
 
Fuel Derivatives
 
$
27

 
$
—

 
$
27

 
$
—

 
$
—

 
$
27

LNG Inventory Derivatives
 
(161
)
 
(161
)
 
—

 
—

 
—

 
—

Interest Rate Derivatives - Not Designated
 
98,123

 
—

 
98,123

 
—

 
—

 
98,123

Interest Rate Derivatives - Not Designated
 
(13,484
)
 
—

 
(13,484
)
 
—

 
—

 
(13,484
)
As of December 31, 2012:
 
 
 
 
 
 
 
 
 
 
 
 
Fuel Derivatives
 
(98
)
 
(98
)
 
—

 
—

 
—

 
—

LNG Inventory Derivatives
 
232

 
—

 
232

 
—

 
—

 
232

Interest Rate Derivatives - Designated
 
(21,290
)
 
—

 
(21,290
)
 
—

 
—

 
(21,290
)
Interest Rate Derivatives - Not Designated
 
(5,134
)
 
—

 
(5,134
)
 
—

 
—

 
(5,134
)
Fair Value Disclosures [Text Block]
Other Financial Instruments (in thousands):
 
 
December 31, 2013
 
December 31, 2012
 
 
Carrying
Amount
 
Estimated
Fair Value
 
Carrying
Amount
 
Estimated
Fair Value
2016 Notes, net of discount (1)
 
$
1,651,807

 
$
1,868,607

 
$
1,647,113

 
$
1,824,177

2020 Notes (1)
 
420,000

 
432,600

 
420,000

 
437,850

2021 Sabine Pass Liquefaction Senior Notes (1)
 
2,011,562

 
1,961,273

 
—

 
—

2022 Sabine Pass Liquefaction Senior Notes (1)
 
1,000,000

 
982,500

 
—

 
—

2023 Sabine Pass Liquefaction Senior Notes (1)
 
1,000,000

 
935,000

 
—

 
—

2012 Liquefaction Credit Facility (2)
 
—

 
—

 
100,000

 
100,000

2013 Liquefaction Credit Facilities (2)
 
100,000

 
100,000

 
—

 
—

CTPL Credit Facility (3)
 
392,904

 
400,000

 
—

 
—

 
(1)
The Level 2 estimated fair value was based on quotations obtained from broker-dealers who make markets in these and similar instruments based on the closing trading prices on December 31, 2013 and 2012, as applicable.
(2)
The Level 3 estimated fair value approximates the carrying amount because the interest rates are variable and reflective of market rates and Sabine Pass Liquefaction has the ability to call this debt at anytime without penalty. 
(3)
The Level 3 estimated fair value approximates the principal amount because the interest rates are variable and reflective of market rates and CTPL has the ability to call this debt at anytime without penalty.