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

Fair Value Measurements and Derivatives (Tables)

3 Months Ended

Mar. 31, 2020

The derivatives measured at fair value and the respective location in the consolidated balance sheets include the following (in thousands):


		Assets				Liabilities
		March 31,		December 31,		March 31,		December 31,
	Balance Sheet Location	2020		2019		2020		2019
Derivative Contracts Designated as Hedging Instruments

Fuel contracts
	Other long-term assets	$	—	$	277	$	—	$	—
	Accrued expenses and other liabilities		—		2,300		93,109		18,257
	Other long-term liabilities		—		683		110,085		17,763
Foreign currency contracts
	Other long-term assets		1,411		—		—		—
	Accrued expenses and other liabilities		—		—		15,581		33,475
	Other long-term liabilities		—		169		206,917		118,500
Interest rate contracts
	Accrued expenses and other liabilities		—		—		7,790		2,178
	Other long-term liabilities		—		—		4,690		1,861
Total derivatives designated as hedging instruments		$	1,411	$	3,429	$	438,172	$	192,034

Derivative Contracts Not Designated as Hedging Instruments

Fuel contracts	Accrued expenses and other liabilities	$	—	$	—	$	13,619	$	—

Total derivatives not designated as hedging instruments		$	—	$	—	$	13,619	$	—
Total derivatives		$	1,411	$	3,429	$	451,791	$	192,034

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

The effects of cash flow hedge accounting on accumulated other comprehensive income (loss) were as follows (in thousands):


					Location of Gain
					(Loss) Reclassified
					from Accumulated	Amount of Gain (Loss) Reclassified
	Amount of Gain (Loss)				Other Comprehensive	from Accumulated Other
	Recognized in Other				Income (Loss) into	Comprehensive
Derivatives	Comprehensive Income				Income	Income (Loss) into Income
	Three Months		Three Months			Three Months		Three Months
	Ended		Ended			Ended		Ended
	March 31, 2020		March 31, 2019			March 31, 2020		March 31, 2019
Fuel contracts	$	(198,477)	$	96,508	Fuel	$	(6,217)	$	7,518
Fuel contracts		—		—	Other income (expense), net		(14,320)		—
Foreign currency contracts		(97,887)		(80,278)	Depreciation and amortization		(1,129)		(703)
Interest rate contracts		(9,496)		(1,078)	Interest expense, net		(333)		185
Total gain (loss) recognized in other comprehensive income	$	(305,860)	$	15,152		$	(21,999)	$	7,000

The effects of cash flow hedge accounting on the consolidated statements of operations include the following (in thousands):


	Three Months Ended March 31, 2020								Three Months Ended March 31, 2019
			Depreciation								Depreciation
			and		Interest		Other Income				and		Interest
	Fuel		Amortization		Expense, net		(Expense), net		Fuel		Amortization		Expense, net
Total amounts of income and expense line items presented in the consolidated statements of operations in which the effects of cash flow hedges are recorded	$	125,024	$	198,197	$	68,907	$	5,823	$	98,253	$	169,741	$	73,503

Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into income
Fuel contracts		(6,217)		—		—		—		7,518		—		—
Foreign currency contracts		—		(1,129)		—		—		—		(703)		—
Interest rate contracts		—		—		(333)		—		—		—		185

Amount of loss reclassified from accumulated other comprehensive income (loss) into income as a result that a forecasted transaction is no longer probable of occurring
Fuel contracts		—		—		—		(14,320)		—		—		—