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, 2014

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	March 31, 2014		December 31, 2013		March 31, 2014		December 31, 2013
Fuel swaps designated as hedging instruments
	Prepaid expenses and other assets	$	1,695	$	5,024	$	27	$	666

	Other long-term assets		252		6,869		98		9

	Accrued expenses and other liabilities		1,110		—		1,646		—

	Other long-term liabilities		809		—		1,353		—
Fuel collars designated as hedging instruments
	Prepaid expenses and other assets		—		452		—		195

	Accrued expenses and other liabilities		152		—		110		—

Fuel options not designated as hedging instruments
	Prepaid expenses and other assets		—		—		—		195
	Accrued expenses and other liabilities		—		—		110		—
Foreign currency options designated as hedging instruments
	Accrued expenses and other liabilities		—		—		—		9,815
Foreign currency forward contracts designated as hedging instruments
	Prepaid expenses and other assets		—		2,624		—		—

	Accrued expenses and other liabilities		—		—		—		6,582
Foreign currency collar designated as a hedging instrument
	Prepaid expenses and other assets		—		12,502		—		—
Interest rate swaps designated as hedging instruments
	Accrued expenses and other liabilities		—		—		2,590		1,707
	Other long-term liabilities		—		—		1,724		1,374

Amounts Recognized Within Assets and Liabilities

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


March 31, 2014	Gross Amounts		Gross Amounts Offset			Total Net Amounts		Gross Amounts Not Offset			Net Amounts
Assets	$	1,947	$	(125	)	$	1,822	$	—		$	1,822
Liabilities		7,533		(2,071	)		5,462		(4,314	)		1,148

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	)		—

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 March 31,
	2014			2013
Gain (loss) recognized in other comprehensive loss – effective portion	$	(9,771	)	$	4,706
Gain (loss) recognized in other income – ineffective portion		(416	)		221
Amount reclassified from accumulated other comprehensive income (loss) into fuel expense		(705	)		(2,263	)

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 March 31,
	2014			2013
Loss recognized in other comprehensive loss – effective portion	$	(324	)	$	(35	)
Gain recognized in other income – ineffective portion		108			8
Amount reclassified from accumulated other comprehensive income (loss) into fuel expense		370			427

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 March 31,
	2014		2013
Gain recognized in other income	$	85	$	856

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 March 31,
	2014			2013
Loss recognized in other comprehensive loss – effective portion	$	(1,076	)	$	(16,633	)
Gain (loss) recognized in other income – ineffective portion		(1	)		68
Amount reclassified from accumulated other comprehensive income (loss) into depreciation and amortization expense		(53	)		—

Effects of Derivatives Not Designated as Cash flow Hedges

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 March 31,
	2014		2013
Gain recognized in other income	$	—	$	20

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 March 31,
	2014			2013
Loss recognized in other comprehensive loss – effective portion	$	(1,157	)	$	(4,012	)
Loss recognized in other income – ineffective portion		(241	)		(298	)
Amount reclassified from accumulated other comprehensive income (loss) into depreciation and amortization expense		279			—

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 March 31,
	2014			2013
Loss recognized in other comprehensive income – effective portion	$	(1,588	)	$	(3,722	)
Amount reclassified from accumulated other comprehensive income (loss) into depreciation and amortization expense		(60	)		—

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 March 31,
	2014			2013
Loss recognized in other comprehensive loss – effective portion	$	(1,440	)	$	—
Amount reclassified from accumulated other comprehensive income (loss) into interest expense, net		322			—