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

Fair Value Measurements and Derivatives (Tables)

12 Months Ended

Dec. 31, 2023

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


		Assets				Liabilities
		December 31,		December 31,		December 31,		December 31,
	Balance Sheet Location	2023		2022		2023		2022
Derivative Contracts Designated as Hedging Instruments

Fuel contracts
	Prepaid expenses and other assets	$	—	$	53,224	$	—	$	7,137
	Other long-term assets		—		3,869		—		655
	Accrued expenses and other liabilities		4,309		—		11,247		—
	Other long-term liabilities		137		—		8,932		—
Foreign currency contracts
	Prepaid expenses and other assets		—		3,617		—		—
	Accrued expenses and other liabilities		—		4,386		—		177,746
Total derivatives designated as hedging instruments		$	4,446	$	65,096	$	20,179	$	185,538

Derivative Contracts Not Designated as Hedging Instruments

Fuel contracts	Prepaid expenses and other assets	$	—	$	84	$	—	$	348
	Other long-term assets		—		—		—		191
	Accrued expenses and other liabilities		141		—		1,031		—
	Other long-term liabilities		—		—		280		—

Total derivatives not designated as hedging instruments		$	141	$	84	$	1,311	$	539
Total derivatives		$	4,587	$	65,180	$	21,490	$	186,077

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

Gross

Amounts

Total Net

Amounts

December 31, 2023

Amounts

Offset

Amounts

Not Offset

Net Amounts

Liabilities

21,490

(4,587)

16,903

—

16,903

The effects of cash flow hedge accounting on accumulated other comprehensive income (loss) include the following (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
	Year Ended December 31,							Year Ended December 31,
	2023		2022		2021			2023		2022		2021
Fuel contracts	$	(15,144)	$	106,994	$	74,434	Fuel	$	39,138	$	104,250	$	(41,080)
Fuel contracts		—		—		—	Other income (expense), net		(146)		(293)		(12,002)
Foreign currency contracts		13,371		(211,011)		(185,067)	Depreciation and amortization		(12,819)		(7,052)		(5,067)
Interest rate contracts		—		—		254	Interest expense, net		—		(40)		(6,868)
Total gain (loss) recognized in other comprehensive income	$	(1,773)	$	(104,017)	$	(110,379)		$	26,173	$	96,865	$	(65,017)

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


	Year Ended December 31, 2023
			Depreciation
			and		Interest		Other Income
	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	$	716,833	$	808,568	$	727,531	$	(40,204)

Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into income
Fuel contracts		39,138		—		—		—
Foreign currency contracts		—		(12,819)		—		—
Interest rate contracts		—		—		—		—

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		—		—		—		(146)

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


	Year Ended December 31, 2022
			Depreciation
			and		Interest		Other Income
	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	$	686,825	$	749,326	$	801,512	$	76,566

Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into income
Fuel contracts		104,250		—		—		—
Foreign currency contracts		—		(7,052)		—		—
Interest rate contracts		—		—		(40)		—

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		—		—		—		(293)

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


	Year Ended December 31, 2021
			Depreciation
			and		Interest		Other Income
	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	$	301,852	$	700,845	$	2,072,925	$	123,953

Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into income
Fuel contracts		(41,080)		—		—		—
Foreign currency contracts		—		(5,067)		—		—
Interest rate contracts		—		—		(6,868)		—

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		—		—		—		(12,002)

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


		Amount of Gain (Loss) Recognized in Income
		Year Ended December 31,
	Location of Gain (Loss)	2023		2022		2021
Derivatives not designated as hedging instruments
Fuel contracts	Other income (expense), net	$	(1,663)	$	33,850	$	65,507
Foreign exchange contracts	Other income (expense), net		(1,554)		(15,055)		(77)