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, 2021

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	2021		2020		2021		2020
Derivative Contracts Designated as Hedging Instruments

Fuel contracts
	Prepaid expenses and other assets	$	165	$	—	$	242	$	—
	Other long-term assets		1,286		—		463		—
	Accrued expenses and other liabilities		192		—		528		35,973
	Other long-term liabilities		1,976		—		3,867		28,947
Foreign currency contracts
	Prepaid expenses and other assets		1,394		5,779		—		—
	Other long-term assets		21,331		43,250		—		—
	Accrued expenses and other liabilities		—		—		18,431		14,778
	Other long-term liabilities		1,808		6,821		104,333		44,938
Interest rate contracts
	Accrued expenses and other liabilities		—		—		4,621		6,776
	Other long-term liabilities		—		—		—		452
Total derivatives designated as hedging instruments		$	28,152	$	55,850	$	132,485	$	131,864

Derivative Contracts Not Designated as Hedging Instruments

Fuel contracts
	Prepaid expenses and other assets	$	599	$	—	$	—	$	—
	Other long-term assets		240				390
	Accrued expenses and other liabilities		4,550		546		16,968		6,732
	Other long-term liabilities		35		—		15		3,534

Total derivatives not designated as hedging instruments		$	5,424	$	546	$	17,373	$	10,266
Total derivatives		$	33,576	$	56,396	$	149,858	$	142,130

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 Income
Derivatives	Comprehensive Loss				Income (Expense)	(Loss) into Income (Expense)
	Three Months		Three Months			Three Months		Three Months
	Ended		Ended			Ended		Ended
	March 31, 2021		March 31, 2020			March 31, 2021		March 31, 2020
Fuel contracts	$	24,050	$	(198,477)	Fuel	$	(8,171)	$	(6,217)
Fuel contracts		—		—	Other income (expense), net		(10,190)		(14,320)
Foreign currency contracts		(97,441)		(97,887)	Depreciation and amortization		(1,267)		(1,129)
Interest rate contracts		354		(9,496)	Interest expense, net		(2,210)		(333)
Total gain (loss) recognized in other comprehensive loss	$	(73,037)	$	(305,860)		$	(21,838)	$	(21,999)

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


	Three Months Ended March 31, 2021								Three Months Ended March 31, 2020
			Depreciation								Depreciation
			and		Interest		Other Income				and		Interest		Other Income
	Fuel		Amortization		Expense, net		(Expense), net		Fuel		Amortization		Expense, net		(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	$	42,603	$	170,316	$	824,441	$	27,243	$	125,024	$	198,197	$	68,907	$	5,823

Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into income (expense)
Fuel contracts		(8,171)		—		—		—		(6,217)		—		—		—
Foreign currency contracts		—		(1,267)		—		—		—		(1,129)		—		—
Interest rate contracts		—		—		(2,210)		—		—		—		(333)		—

Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into income (expense) as a result that a forecasted transaction is no longer probable of occurring
Fuel contracts		—		—		—		(10,190)		—		—		—		(14,320)

The effects of derivatives not designated as hedging instruments on the consolidated statements of operations include the following (in thousands):



		Three Months Ended
		March 31,
	Location of Gain (Loss)	2021		2020
Derivatives not designated as hedging instruments
Fuel contracts	Other income (expense), net	$	32,172	$	—