( 1 ) long-term debt includes discount and premiums aggregating $ 0.4 million and capital leases . long-term debt excludes deferred financing fees which are a direct deduction from the carrying value of the related debt liability in the consolidated balance sheets . ( 2 ) operating leases are primarily for offices , motor vehicles and office equipment . ( 3 ) ship construction contracts are for our newbuild ships based on the euro/u.s . dollar exchange rate as of december 31 , 2018