Norwegian Cruise Line Holdings Ltd. - 8-K filing on 2020-07-08

Fair Value Measurements and Derivatives (Tables)

12 Months Ended

Dec. 31, 2019

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	2019		2018		2019		2018
Derivative Contracts Designated as Hedging Instruments

Fuel contracts
	Prepaid expenses and other assets	$	—	$	2,583	$	—	$	1
	Other long-term assets		277		197		—		29
	Accrued expenses and other liabilities		2,300		1,173		18,257		19,547
	Other long-term liabilities		683		933		17,763		51,184
Foreign currency contracts
	Prepaid expenses and other assets		—		5,285		—		1,497
	Other long-term assets		—		3,514		—		—
	Accrued expenses and other liabilities		—		112		33,475		5,145
	Other long-term liabilities		169		2,874		118,500		40,476
Interest rate contracts
	Prepaid expenses and other assets		—		519		—		—
	Other long-term assets		—		27		—		—
	Accrued expenses and other liabilities		—		—		2,178		—
	Other long-term liabilities		—		—		1,861		—
Total derivatives designated as hedging instruments		$	3,429	$	17,217	$	192,034	$	117,879

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

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,
	2019		2018		2017			2019		2018		2017
Fuel contracts	$	46,154	$	(52,949)	$	50,263	Fuel	$	14,093	$	34,410	$	(29,721)
Foreign currency contracts		(163,197)		(108,911)		254,070	Depreciation and amortization		(3,062)		(3,463)		(4,077)
Interest rate contracts		(5,972)		646		351	Interest expense, net		(2,133)		(851)		(2,997)
Total gain (loss) recognized in other comprehensive income	$	(123,015)	$	(161,214)	$	304,684		$	8,898	$	30,096	$	(36,795)

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


	Year Ended December 31, 2019						Year Ended December 31, 2018
			Depreciation						Depreciation
			and		Interest				and		Interest
	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	$	409,602	$	646,188	$	272,867	$	392,685	$	561,060	$	270,404

Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into income
Fuel contracts		14,093		—		—		34,410		—		—
Foreign currency contracts		—		(3,062)		—		—		(3,463)		—
Interest rate contracts		—		—		(2,133)		—		—		(851)

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


	Year Ended December 31, 2017
			Depreciation
			and		Interest
	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	$	361,032	$	509,957	$	267,804

Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into income
Fuel contracts		(29,721)		—		—
Foreign currency contracts		—		(4,077)		—
Interest rate contracts		—		—		(2,997)