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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 14. FAIR VALUE MEASUREMENTS AND DERIVATIVE INSTRUMENTS
FAIR VALUE MEASUREMENTS
The estimated fair value of our financial instruments that are not measured at fair value, categorized based upon
the fair value hierarchy, are as follows (in thousands):
FairValueMeasurementsatDecemberUsing FairValueMeasurementsatDecemberUsing
Description
Total
Carrying
Amount
Total
FairValue Level() Level() Level()
Total
Carrying
Amount
Total
FairValue Level() Level() Level()
Assets:
Cash and cash equivalent(4) — — — —
Total Assets — — — —
Liabilities:
Long-term debt (including current
portion of long-term debt)(5) — —
Total Liabilities — —
() Inputs based on quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access. Valuation of these
items does not entail a significant amount of judgment.
() Inputs other than quoted prices included within Level 1 that are observable for the liability, either directly or indirectly. For unsecured revolving
credit facilities and unsecured term loans, fair value is determined utilizing the income valuation approach. This valuation model takes into account
the contract terms of our debt such as the debt maturity and the interest rate on the debt. The valuation model also takes into account our credit-
worthiness based on publicly available credit default swap rates.
() Inputs that are unobservable. The Company did not use any Level 3 inputs as of December 31, 2013 and December 31, 2012.
() Consists of cash and marketable securities with original maturities of less than 90 days.
() Consists of unsecured revolving credit facilities, unsecured senior notes, senior debentures and unsecured term loans. Does not include our capital
lease obligations.
Other Financial Instruments
The carrying amounts of accounts receivable, accounts payable, accrued interest and accrued expenses approxi-
mate fair value at December 31, 2013 and December 31, 2012.
Assets and liabilities that are recorded at fair value have been categorized based upon the fair value hierarchy.
The following table presents information about the Company’s financial instruments recorded at fair value on a
recurring basis (in thousands):
FairValueMeasurementsat
DecemberUsing
FairValueMeasurementsat
DecemberUsing
Description
Total
Fair
Value Level() Level() Level()
Total
Fair
Value
Level
() Level() Level()
Assets:
Derivative financial instruments(4) — — — —
Investments(5) — — — —
Total Assets — —
Liabilities:
Derivative financial instruments(6) — — — —
Total Liabilities — — — —
() Inputs based on quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access. Valuation of these
items does not entail a significant amount of judgment.
() Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. For foreign cur-
rency forward contracts, interest rate swaps, cross currency swaps and fuel swaps, fair value is derived using valuation models that utilize the
income valuation approach. These valuation models take into account the contract terms, such as maturity as well as other inputs, such as foreign
exchange rates and curves, fuel types, fuel curves and interest rate yield curves. For fuel call options, fair value is determined by using the prevail-
ing market price for the instruments consisting of published price quotes for similar assets based on recent transactions in an active market. Fair
value for foreign currency collar options is determined by using standard option pricing models with inputs based on the options’ contract terms,
such as exercise price and maturity, and readily available public market data, such as foreign exchange curves, foreign exchange volatility levels
and discount rates. All derivative instrument fair values take into account the creditworthiness of the counterparty and the Company.
() Inputs that are unobservable. The Company did not use any Level 3 inputs as of December 31, 2013 and December 31, 2012.
() Consists of foreign currency forward contracts, foreign currency collar options, interest rate swaps, fuel swaps and purchased fuel call options.
Please refer to the “Fair Value of Derivative Instruments” table for breakdown by instrument type.
() Consists of exchange-traded equity securities and mutual funds.
() Consists of interest rate swaps, fuel swaps, foreign currency forward contracts, foreign currency collar options and sold fuel call options. Please
refer to the “Fair Value of Derivative Instruments” table for breakdown by instrument type.