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

Fair Value Measurements and Derivatives (Tables)

6 Months Ended

Jun. 30, 2024

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


		Assets				Liabilities
		June 30,		December 31,		June 30,		December 31,
	Balance Sheet Location	2024		2023		2024		2023
Derivative Contracts Designated as Hedging Instruments

Fuel contracts
	Prepaid expenses and other assets	$	17,081	$	—	$	609	$	—
	Other long-term assets		4,454		—		550		—
	Accrued expenses and other liabilities		—		4,309		—		11,247
	Other long-term liabilities		—		137		15		8,932
Foreign currency contracts
	Prepaid expenses and other assets		122		—		—		—
Total derivatives designated as hedging instruments		$	21,657	$	4,446	$	1,174	$	20,179

Derivative Contracts Not Designated as Hedging Instruments

Fuel contracts
	Prepaid expenses and other assets	$	19	$	—	$	61	$	—
	Accrued expenses and other liabilities		—		141		—		1,031
	Other long-term liabilities		—		—		—		280

Total derivatives not designated as hedging instruments		$	19	$	141	$	61	$	1,311
Total derivatives		$	21,676	$	4,587	$	1,235	$	21,490

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
	June 30, 2024		June 30, 2023			June 30, 2024		June 30, 2023
Fuel contracts	$	1,035	$	(12,055)	Fuel	$	6,838	$	572
Fuel contracts		—		—	Other income (expense), net		432		(306)
Foreign currency contracts		122		7,478	Depreciation and amortization		(4,120)		(2,813)
Total gain (loss) recognized in other comprehensive loss	$	1,157	$	(4,577)		$	3,150	$	(2,547)


					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)
	Six Months		Six Months			Six Months		Six Months
	Ended		Ended			Ended		Ended
	June 30, 2024		June 30, 2023			June 30, 2024		June 30, 2023
Fuel contracts	$	48,288	$	(41,070)	Fuel	$	13,415	$	13,169
Fuel contracts		—		—	Other income (expense), net		1,307		(343)
Foreign currency contracts		122		18,018	Depreciation and amortization		(8,239)		(5,499)
Total gain (loss) recognized in other comprehensive loss	$	48,410	$	(23,052)		$	6,483	$	7,327

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


	Three Months Ended June 30, 2024						Three Months Ended June 30, 2023
			Depreciation						Depreciation
			and		Other Income				and		Other Income
	Fuel		Amortization		(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	$	174,964	$	222,405	$	1,896	$	164,242	$	197,115	$	(8,043)

Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into income (expense)
Fuel contracts		6,838		—		—		572		—		—
Foreign currency contracts		—		(4,120)		—		—		(2,813)		—

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		—		—		432		—		—		(306)


	Six Months Ended June 30, 2024						Six Months Ended June 30, 2023
			Depreciation						Depreciation
			and		Other Income				and		Other Income
	Fuel		Amortization		(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	$	372,698	$	445,334	$	20,033	$	359,110	$	391,905	$	(16,998)

Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into income (expense)
Fuel contracts		13,415		—		—		13,169		—		—
Foreign currency contracts		—		(8,239)		—		—		(5,499)		—

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		—		—		1,307		—		—		(343)

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

Three Months Ended

Six Months Ended

June 30,

Location of Gain (Loss)

2024

2023

2024

2023

Derivatives not designated as hedging instruments

Fuel contracts

Other income (expense), net

(13)

(251)

2,186

(847)