Annual report pursuant to Section 13 and 15(d)

Fair Value Measurements and Derivatives (Tables)

v2.4.0.8
Fair Value Measurements and Derivatives (Tables)
12 Months Ended
Dec. 31, 2013
Derivatives Measured at Fair Value and Disclosed by Balance Sheet Location

The following table sets forth our derivatives measured at fair value and discloses the balance sheet location (in thousands):

 

    

Balance Sheet location

   Asset      Liability  
      December 31,
2013
     December 31,
2012
     December 31,
2013
     December 31,
2012
 

Fuel swaps designated as hedging instruments

              
  

Prepaid expenses and other assets

   $ 5,024       $ 5,955       $ 666       $ 876   
  

Other long-term assets

     6,869         3,969         9        388   
  

Accrued expenses and other liabilities

     —           188         —           204   
  

Other long-term liabilities

     —           391         —           42   

Fuel collars designated as hedging instruments

              
  

Prepaid expenses and other assets

     452         1,615         195         530   
  

Accrued expenses and other liabilities

     —           51         —           69   
  

Other long-term liabilities

     —           1,908         —           1,230   

Fuel options not designated as hedging instruments

              
  

Prepaid expenses and other assets

     —           —           195         304   
  

Other long-term liabilities

     —           —           —           1,231   

Foreign currency options designated as hedging instruments

              
  

Accrued expenses and other liabilities

     —           —           9,815         20,267   
  

Other long-term liabilities

     —           —           —           16,443   

Foreign currency forward contracts designated as hedging instruments

              
  

Prepaid expenses and other assets

     2,624         11,685         —           —     
  

Accrued expenses and other liabilities

     —           —           6,582         —     

Foreign currency collar designated as a hedging instrument

              
  

Prepaid expenses and other assets

     12,502         —           —           —     
  

Other long-term assets

     —           9,765         —           1,613   

Interest rate swaps designated as hedging instruments

              
  

Accrued expenses and other liabilities

     —           —           1,707         —     
  

Other long-term liabilities

     —           —           1,374        —     
Amounts Recognized Within Assets and Liabilities

The following table discloses the amounts recognized within assets and liabilities (in thousands):

 

December 31, 2013

   Gross Amounts      Gross
Amounts
Offset
    Total Net
Amounts
     Gross
Amounts Not
Offset
    Net Amounts  

Assets

   $ 27,471       $ (1,065   $ 26,406       $ (15,126 )   $ 11,280   

Liabilities

     19,478         —          19,478         (19,478     —     

December 31, 2012

   Gross Amounts      Gross
Amounts
Offset
    Total Net
Amounts
     Gross
Amounts Not
Offset
    Net Amounts  

Assets

   $ 32,989       $ (3,711   $ 29,278       $ (11,685   $ 17,593   

Liabilities

     39,486         (2,538     36,948         (36,710     238   
Fuel Swaps
 
Effects of Derivatives Designated as Cash Flow Hedges

The effects on the consolidated financial statements of the fuel swaps which were designated as cash flow hedges were as follows (in thousands):

 

     Year Ended December 31,  
     2013     2012     2011  

Gain recognized in other comprehensive income (loss) – effective portion

   $ 8,532      $ 18,906      $ 29,928   

Gain (loss) recognized in other income (expense) – ineffective portion

     (345     (509     457   

Amount reclassified from accumulated other comprehensive income (loss) into fuel expense

     (6,250     (14,448     (36,686
Fuel Options
 
Effects of Derivatives Not Designated as Cash flow Hedges

The effects of the fuel options on the consolidated financial statements which were not designated as hedging instruments were as follows (in thousands):

 

     Year Ended December 31,  
     2013      2012      2011  

Gain recognized in other income (expense)

   $ 1,340       $ 3,218       $ 2,422   
Foreign Exchange Forward
 
Effects of Derivatives Designated as Cash Flow Hedges

The effects on the consolidated financial statements of the foreign currency forward contracts which were designated as cash flow hedges were as follows (in thousands):

 

     Year Ended December 31,  
     2013     2012      2011  

Gain (loss) recognized in other comprehensive income (loss) – effective portion

   $ (2,983   $ 11,685       $ —     

Loss recognized in other income (expense) – ineffective portion

     67       —           —     

Amount reclassified from accumulated comprehensive income (loss) into depreciation and amortization expense

     (84     —           —     
Effects of Derivatives Not Designated as Cash flow Hedges

As of December 31, 2013, the effects on the consolidated financial statements of the foreign currency forward contracts which were not designated as hedging instruments were as follows (in thousands):

 

     Year Ended December 31,  
     2013      2012      2011  

Gain recognized in other income (expense)

   $ 20       $ —         $ —     
Fuel Collars
 
Effects of Derivatives Designated as Cash Flow Hedges

The effects on the consolidated financial statements of the fuel collars which were designated as cash flow hedges were as follows (in thousands):

 

     Year Ended December 31,  
     2013     2012     2011  

Gain (loss) recognized in other comprehensive income (loss) – effective portion

   $ (1,152   $ 592      $ (147

Gain (loss) recognized in other income (expense) – ineffective portion

     (26     165        (302

Amount reclassified from accumulated other comprehensive income (loss) into fuel expense

     1,547        (1,954     —     
Foreign Exchange Option
 
Effects of Derivatives Designated as Cash Flow Hedges

The effects on the consolidated financial statements of the foreign currency options which were designated as cash flow hedges were as follows (in thousands):

 

     Year Ended December 31,  
     2013     2012     2011  

Loss recognized in other comprehensive loss – effective portion

   $ (3,304   $ (19,428   $ (14,583

Loss recognized in other income (expense) – ineffective portion

     (97     (864     (239

Amount reclassified from accumulated comprehensive income (loss) into depreciation and amortization expense

     470        —          —     
Foreign Currency Collar
 
Effects of Derivatives Designated as Cash Flow Hedges

The effects on the consolidated financial statements of the foreign currency collar which was designated as a cash flow hedge was as follows (in thousands):

 

     Year Ended December 31,  
     2013      2012      2011  

Gain recognized in other comprehensive income (loss) – effective portion

   $ 4,350       $ 8,152       $ —     
Interest Rate Swap
 
Effects of Derivatives Designated as Cash Flow Hedges

The effects on the consolidated financial statements of the interest rates swaps which were designated as cash flow hedges were as follows (in thousands):

 

     Year Ended December 31,  
     2013     2012      2011  

Loss recognized in other comprehensive income (loss) – effective portion

   $ (3,196   $ —         $ —     

Amount reclassified from other comprehensive income (loss) into interest expense, net

     189        —           —