Norwegian Cruise Line Holdings Ltd. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements and Derivatives (Tables)

Fair Value Measurements and Derivatives (Tables)

9 Months Ended

Sep. 30, 2013

Derivatives Measured at Fair Value and Disclosed by Balance Sheet Location

The following table sets forth the fair value of our derivatives including the balance sheet location (in thousands):


		Asset				Liability
	Balance Sheet location	September 30, 2013		December 31, 2012		September 30, 2013		December 31, 2012
Fuel swaps designated as hedging instruments
	Prepaid expenses and other assets	$	4,421	$	5,955	$	484	$	876
	Other long-term assets		2,201		3,969		1,890		388
	Accrued expenses and other liabilities		669		188		938		204
	Other long-term liabilities		189		391		180		42

Fuel collars designated as hedging instruments
	Prepaid expenses and other assets		614		1,615		322		530
	Accrued expenses and other liabilities		—		51		—		69
	Other long-term liabilities		207		1,908		202		1,230

Fuel options not designated as hedging instruments
	Prepaid expenses and other assets		—		—		322		304
	Other long-term liabilities		—		—		202		1,231

Foreign currency options designated as hedging instruments
	Accrued expenses and other liabilities		—		—		18,756		20,267
	Other long-term liabilities		—		—		—		16,443

Foreign currency forward contracts designated as hedging instruments
	Prepaid expenses and other assets		—		11,685		—		—

Foreign currency collar designated as a hedging instrument
	Prepaid expenses and other assets		10,425		—		30		—
	Other long-term assets		—		9,765		—		1,613

Interest rate swaps designated as hedging instruments
	Accrued expenses and other liabilities		—		—		898		—
	Other long-term liabilities		—		—		2,233		—

Amounts Recognized Within Assets and Liabilities

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


September 30, 2013	Gross Amounts		Gross Amounts Offset			Total Net Amounts		Gross Amounts Not Offset			Net Amounts
Assets	$	17,661	$	(3,048	)	$	14,613	$	—		$	14,613
Liabilities		23,409		(1,065	)		22,344		(21,887	)		457

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):


	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Gain recognized in other comprehensive loss – effective portion	$	13,500		$	30,848		$	132		$	23,029
Gain (loss) recognized in other income (expense) – ineffective portion		(83	)		157			(182	)		(473	)
Amount reclassified from accumulated comprehensive income (loss) into fuel expense		(2,081	)		(1,600	)		(5,080	)		(13,932	)

Fuel Options

Effects of Derivatives Not Designated as Cash flow Hedges

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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
Gain recognized in other income (expense)	$	430	$	1,143	$	1,011	$	2,858

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):


	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Gain (loss) recognized in other comprehensive loss – effective portion	$	427		$	5,060		$	(1,108	)	$	2,441
Gain (loss) recognized in other income (expense) – ineffective portion		(51	)		479			(29	)		142
Amount reclassified from other comprehensive income (loss) into fuel expense		332			(1,107	)		1,150			(5,377	)

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):


	Three Months Ended September 30,					Nine Months Ended September 30,
	2013		2012			2013			2012
Gain (loss) recognized in other comprehensive loss – effective portion	$	1,179	$	(2,813	)	$	(3,174	)	$	(19,848	)
Gain (loss) recognized in other income (expense) – ineffective portion		13		(134	)		(307	)		(484	)
Amount reclassified from accumulated comprehensive income (loss) into depreciation and amortization expense		177		—			294			—

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):


	Three Months Ended September 30,					Nine Months Ended September 30,
	2013			2012		2013			2012
Gain (loss) recognized in other comprehensive loss – effective portion	$	—		$	2,609	$	(7,886	)	$	4,332
Gain recognized in other income (expense) – ineffective portion		—			—		66			—
Amount reclassified from accumulated comprehensive income (loss) into depreciation and amortization expense		(32	)		—		(52	)		—

Effects of Derivatives Not Designated as Cash flow Hedges

As of September 30, 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):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
Gain recognized in other income (expense)	$	—	$	—	$	20	$	—

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):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
Gain recognized in other comprehensive income – effective portion	$	4,518	$	5,156	$	2,243	$	5,156

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):


	Three Months Ended September 30,					Nine Months Ended September 30,
	2013			2012		2013			2012
Loss recognized in other comprehensive loss – effective portion	$	(2,826	)	$	—	$	(2,826	)	$	—
Loss recognized in other income (expense) – ineffective portion		(334	)		—		(334	)		—
Amount reclassified from other comprehensive income (loss) into interest expense, net		65			—		65			—