Norwegian Cruise Line Holdings Ltd. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Fair Value Measurements and Derivatives (Tables)

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
	Balance Sheet location	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			—		—