Royal Caribbean Cruise Lines 2010 Annual Report Download - page 85
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2010 ANNUAL REPORT 82
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
The fair value and line item caption of non-derivative instruments recorded was as follows:
Carrying Value
Non-derivative instruments designated as hedging
instruments under Subtopic 815-20 Balance Sheet Location
As of December 31,
2010
As of December 31,
2009
In thousands
Foreign currency debt Long-term debt
The effect of derivative instruments qualifying and designated as hedging instruments and the related hedged
items in fair value hedges on the consolidated statement of operations was as follows:
Derivatives and related Hedged Location of Gain (Loss)
Amount of Gain (Loss) Recognized
in Income on Derivative
Amount of Gain (Loss) Recognized
in Income on Hedged Item
Items under Subtopic 815-20
Fair Value Hedging Relationships
Recognized in Income on
Derivative and Hedged Item
Year Ended
December 31, 2010
Year Ended
December 31, 2009
Year Ended
December 31, 2010
Year Ended
December 31, 2009
In thousands
Interest rate swaps
Interest expense, net of
interest capitalized —
Cross currency swaps
Interest expense, net of
interest capitalized — —
Interest rate swaps Other income (expense) () ()
Cross currency swaps
Other income (expense) () (10,170)
Foreign currency
forward contracts Other income (expense) () ()
() ()
The effect of derivative instruments qualifying and designated as hedging instruments in cash flow hedges on the
consolidated financial statements was as follows:
Derivatives under Subtopic
815-20 Cash Flow Hedging
Relationships
Year Ended
December 31,
2010
Year Ended
December 31,
2009
Location of Gain
(Loss) Reclassified
from Accumulated
OCI into Income
(Effective Portion)
Year Ended
December 31,
2010
Year Ended
December 31,
2009
Location of Gain
(Loss) Recognized
in Income on
Derivative
(Ineffective Portion
and Amount
Excluded from
Effectiveness
Testing)
Year Ended
December 31,
2010
Year Ended
December 31,
2009
In thousands
Interest rate swaps — —
Interest
Expense, net
of interest
capitalized — ()
Other income
(expense) — —
Cross currency
swaps —
Other income
(expense)
Other income
(expense) — —
Foreign currency
forward contracts ()
Depreciation
and amortiza-
tion expenses
Other income
(expense)
Foreign currency
forward contracts — —
Passenger
ticket
revenues —
Other income
(expense) — —
Foreign currency
forward contracts ()
Other income
(expense)
Other income
(expense) —
Fuel swaps Fuel ()
Other income
(expense)
() ()
At December 31, 2010, we have hedged the variability in future cash flows for certain forecasted transactions
occurring through 2013.
Amount of Gain (Loss)
Recognized in OCI on
Derivative (Effective Portion)
Amount of Gain (Loss) Reclassified
from Accumulated OCI into
Income
(Effective Portion)
Amount of Gain (Loss)
Recognized in Income on
Derivative (Ineffective Portion
and Amount Excluded from
Effectiveness testing)