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)

3 Months Ended

Mar. 31, 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	March 31, 2013		December 31, 2012		March 31, 2013		December 31, 2012
Fuel swaps designated as hedging instruments
	Prepaid expenses and other assets	$	8,128	$	5,955	$	301	$	876

	Other long-term assets		3,832		3,969		281		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		1,117		1,615		134		530

	Other long-term assets		997		—		545		—

	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		—		—		134		304

	Other long-term assets		—		—		545		—

	Other long-term liabilities		—		—		—		1,231
Foreign currency options designated as hedging instruments
	Accrued expenses and other liabilities		—		—		19,585		20,267

	Other long-term liabilities		—		—		—		16,443
Foreign currency forward contracts designated as hedging instruments
	Prepaid expenses and other assets		3,464		11,685		—		—

	Accrued expenses and other liabilities		574		—		30,353		—
Foreign currency forward contracts not designated as hedging instruments

	Accrued expenses and other liabilities		354		—		334		—
Foreign currency collar designated as a hedging instrument
	Prepaid expenses and other assets		6,361		—		1,931		—

	Other long-term assets		—		9,765		—		1,613

Amounts Recognized Within Assets and Liabilities

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


March 31, 2013	Gross Amounts		Gross Amounts Offset			Total Net Amounts		Gross Amounts Not Offset			Net Amounts
Assets	$	23,899	$	(3,871	)	$	20,028	$	(3,464	)	$	16,564
Liabilities		50,272		(928	)		49,344		(46,403	)		2,941

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


	Three Months Ended March 31,
	2013			2012
Gain recognized in other comprehensive income (loss) – effective portion	$	4,706		$	26,464
Gain recognized in other income (expense) – ineffective portion		221			1,244
Amount reclassified from accumulated other comprehensive income (loss) into fuel expense		(2,263	)		(9,239	)

Foreign Exchange Option

Effects of Derivatives Designated as Cash Flow Hedges

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


	Three Months Ended March 31,
	2013			2012
Loss recognized in other comprehensive income (loss) – effective portion	$	(4,012	)	$	(4,842	)
Loss recognized in other income (expense) – ineffective portion		(298	)		(269	)

Foreign Exchange Forward

Effects of Derivatives Designated as Cash Flow Hedges

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


	Three Months Ended March 31,
	2013			2012
Loss recognized in other comprehensive income (loss) – effective portion	$	(16,633	)	$	—
Gain recognized in other income (expense) – ineffective portion		68			—

Fuel Collars

Effects of Derivatives Designated as Cash Flow Hedges

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


	Three Months Ended March 31,
	2013			2012
Gain (loss) recognized in other comprehensive income (loss) – effective portion	$	(35	)	$	9,055
Gain recognized in other income (expense) – ineffective portion		8			682
Amount reclassified from accumulated other comprehensive income (loss) into fuel expense		427			(2,854	)

Fuel Options

Effects of Derivatives 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):


	Three Months Ended March 31,
	2013		2012
Gain recognized in other income (expense)	$	856	$	2,081

Foreign Currency Collar

Effects of Derivatives Designated as Cash Flow Hedges

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


	Three Months Ended March 31,
	2013			2012
Loss recognized in other comprehensive income (loss) – effective portion	$	(3,722	)	$	—

Not Designated as Hedging Instrument | Foreign Exchange Forward

Effects of Derivatives Designated as Cash Flow Hedges

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


	Three Months Ended March 31,
	2013		2012
Gain recognized in other income (expense)	$	20	$	—

- Definition

Tabular disclosure of the location and amount of gains and losses reported in the statement of financial performance, or when applicable, the statement of financial position. For example, (a) gains and losses recognized in the income statement on derivative instruments designated and qualifying as hedging instruments in fair value hedges and related hedged items designated and qualifying in fair value hedges and (b) gains and losses initially recognized in other comprehensive income on derivative instruments designated and qualifying as cash flow hedges.

+ References + Details

- Definition

Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position.

+ References + Details