Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 31, 2018 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | NCL CORP Ltd. | |
Entity Central Index Key | 1,318,742 | |
Trading Symbol | nclc | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock Shares Outstanding | 31,164,004 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | false | |
Entity Emerging Growth Company | false |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenue | ||||
Total revenue | $ 1,858,356 | $ 1,651,738 | $ 4,673,933 | $ 4,146,622 |
Cruise operating expense | ||||
Commissions, transportation and other | 301,349 | 266,173 | 769,564 | 683,628 |
Payroll and related | 227,707 | 206,142 | 656,868 | 593,502 |
Fuel | 99,643 | 91,231 | 288,286 | 266,780 |
Total cruise operating expense | 928,944 | 838,165 | 2,559,818 | 2,310,205 |
Other operating expense | ||||
Marketing, general and administrative | 234,459 | 201,588 | 685,882 | 586,099 |
Depreciation and amortization | 143,700 | 134,532 | 415,648 | 376,878 |
Total other operating expense | 378,159 | 336,120 | 1,101,530 | 962,977 |
Operating income | 551,253 | 477,453 | 1,012,585 | 873,440 |
Non-operating (expense) income | ||||
Interest expense, net | (69,540) | (66,339) | (202,226) | (183,497) |
Other income (expense), net | 98 | (3,262) | 11,354 | (11,686) |
Total non-operating expense | (69,442) | (69,601) | (190,872) | (195,183) |
Net income before income taxes | 481,811 | 407,852 | 821,713 | 678,257 |
Income tax expense | (6,399) | (11,625) | (11,378) | (17,451) |
Net income | 475,412 | 396,227 | 810,335 | 660,806 |
Passenger ticket | ||||
Revenue | ||||
Total revenue | 1,334,460 | 1,192,023 | 3,301,372 | 2,916,731 |
Onboard and other | ||||
Revenue | ||||
Total revenue | 523,896 | 459,715 | 1,372,561 | 1,229,891 |
Cruise operating expense | ||||
Total cruise operating expense | 117,747 | 98,476 | 281,232 | 250,254 |
Food | ||||
Cruise operating expense | ||||
Total cruise operating expense | 56,038 | 53,883 | 160,785 | 147,401 |
Other | ||||
Cruise operating expense | ||||
Total cruise operating expense | $ 126,460 | $ 122,260 | $ 403,083 | $ 368,640 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 475,412 | $ 396,227 | $ 810,335 | $ 660,806 |
Other comprehensive income: | ||||
Shipboard Retirement Plan | 107 | 104 | 319 | 313 |
Cash flow hedges: | ||||
Net unrealized gain | 15,365 | 97,276 | 48,047 | 221,512 |
Amount realized and reclassified into earnings | (10,706) | 11,644 | (19,214) | 31,593 |
Total other comprehensive income | 4,766 | 109,024 | 29,152 | 253,418 |
Total comprehensive income | $ 480,178 | $ 505,251 | $ 839,487 | $ 914,224 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 278,546 | $ 170,757 |
Accounts receivable, net | 45,997 | 43,961 |
Inventories | 95,950 | 82,121 |
Prepaid expenses and other assets | 298,263 | 216,111 |
Total current assets | 718,756 | 512,950 |
Property and equipment, net | 12,029,140 | 11,040,488 |
Goodwill | 1,388,931 | 1,388,931 |
Tradenames | 817,525 | 817,525 |
Other long-term assets | 353,119 | 310,445 |
Total assets | 15,307,471 | 14,070,339 |
Current liabilities: | ||
Current portion of long-term debt | 679,908 | 619,373 |
Accounts payable | 59,423 | 53,317 |
Accrued expenses and other liabilities | 659,837 | 512,504 |
Due to NCLH | 53,042 | 61,732 |
Advance ticket sales | 1,648,742 | 1,303,498 |
Total current liabilities | 3,100,952 | 2,550,424 |
Long-term debt | 5,875,252 | 5,688,392 |
Other long-term liabilities | 186,707 | 162,919 |
Total liabilities | 9,162,911 | 8,401,735 |
Commitments and contingencies (Note 10) | ||
Shareholders' equity: | ||
Ordinary shares, $.0012 par value; 40,000,000 shares authorized; 31,164,004 shares issued and outstanding at September 30, 2018 and December 31, 2017 | 37 | 37 |
Additional paid-in capital | 3,956,543 | 3,874,586 |
Accumulated other comprehensive income | 54,405 | 25,253 |
Retained earnings | 2,133,575 | 1,768,728 |
Total shareholders' equity | 6,144,560 | 5,668,604 |
Total liabilities and shareholders' equity | $ 15,307,471 | $ 14,070,339 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Sep. 30, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Ordinary shares, par value (in dollars per share) | $ 0.0012 | $ 0.0012 |
Ordinary shares, authorized | 40,000,000 | 40,000,000 |
Ordinary shares, issued | 31,164,004 | 31,164,004 |
Ordinary shares, outstanding | 31,164,004 | 31,164,004 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities | ||
Net income | $ 810,335 | $ 660,806 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 420,154 | 385,957 |
Gain on derivatives | (71) | |
Deferred income taxes, net | 3,875 | 14,969 |
Loss on extinguishment of debt | 6,346 | |
Provision for bad debts and inventory | 3,420 | 1,592 |
Share-based compensation expense | 88,797 | 63,664 |
Net foreign currency adjustments | (4,494) | |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (5,084) | 656 |
Inventories | (14,237) | (13,923) |
Prepaid expenses and other assets | (34,451) | (14,626) |
Accounts payable | 3,119 | 3,909 |
Accrued expenses and other liabilities | 133,898 | 76,571 |
Advance ticket sales | 316,268 | 187,131 |
Net cash provided by operating activities | 1,727,946 | 1,366,635 |
Cash flows from investing activities | ||
Additions to property and equipment, net | (1,361,678) | (1,129,514) |
Promissory note receipts | 755 | |
Settlement of derivatives | 64,796 | (35,255) |
Net cash used in investing activities | (1,296,127) | (1,164,769) |
Cash flows from financing activities | ||
Repayments of long-term debt | (1,233,499) | (1,006,620) |
Proceeds from long-term debt | 1,491,352 | 1,217,060 |
Due to NCLH, net | (8,690) | 20,543 |
Dividends | (445,500) | |
Contribution from NCLH | 7,000 | |
Net share settlement of restricted share units | (13,840) | (6,342) |
Early redemption premium | (5,154) | |
Deferred financing fees | (115,699) | (32,473) |
Net cash (used in) provided by financing activities | (324,030) | 192,168 |
Net increase in cash and cash equivalents | 107,789 | 394,034 |
Cash and cash equivalents at beginning of period | 170,757 | 126,041 |
Cash and cash equivalents at end of period | $ 278,546 | $ 520,075 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Ordinary Shares | Additional Paid-in Capital | Accumulated Other Comprehensive (Loss) Income | Retained Earnings | Total |
Balance at Dec. 31, 2016 | $ 37 | $ 3,796,042 | $ (316,186) | $ 1,007,780 | $ 4,487,673 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Share-based compensation | 63,664 | 63,664 | |||
Net share settlement of restricted share units | (6,342) | (6,342) | |||
Other comprehensive income, net | 253,418 | 253,418 | |||
Net income | 660,806 | 660,806 | |||
Balance at Sep. 30, 2017 | 37 | 3,851,211 | (62,768) | 1,670,739 | 5,459,219 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative change in accounting policy | (2,153) | 2,153 | |||
Balance at Dec. 31, 2017 | 37 | 3,874,586 | 25,253 | 1,768,728 | 5,668,604 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Share-based compensation | 88,797 | 88,797 | |||
Net share settlement of restricted share units | (13,840) | (13,840) | |||
Contribution from NCLH | 7,000 | 7,000 | |||
Other comprehensive income, net | 29,164 | 29,164 | |||
Dividends | (445,500) | (445,500) | |||
Net income | 810,335 | 810,335 | |||
Balance at Sep. 30, 2018 | $ 37 | $ 3,956,543 | 54,405 | 2,133,575 | $ 6,144,560 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative change in accounting policy | $ (12) | $ 12 |
Description of Business and Org
Description of Business and Organization | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Description of Business and Organization | 1. Description of Business and Organization We are a leading global cruise company which operates the Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises brands. As of September 30, 2018, we had 26 ships with approximately 54,400 Berths. We plan to introduce eight additional ships through 2027, subject to certain conditions. Norwegian Encore is on order for delivery in the fall of 2019. We also have an Explorer Class Ship, Seven Seas Splendor, on order for delivery in the winter of 2020. Project Leonardo will introduce an additional six ships with expected delivery dates from 2022 through 2027. These additions to our fleet will increase our total Berths to approximately 78,900. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements are unaudited and, in our opinion, contain all normal recurring adjustments necessary for a fair statement of the results for the periods presented. Our operations are seasonal and results for interim periods are not necessarily indicative of the results for the entire fiscal year. Historically, demand for cruises has been strongest during the Northern Hemisphere’s summer months. The interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2017, which are included in our most recent Annual Report on Form 10-K filed for the year ended December 31, 2017 (“Annual Report”), with the SEC. Revenue and Expense Recognition On January 1, 2018, we adopted the Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, (Topic 606) Nature of Goods and Services We offer our guests a multitude of cruise fare options when booking a cruise. Our cruise ticket prices generally include cruise fare and a wide variety of onboard activities and amenities, as well as meals and entertainment. In some instances, cruise ticket prices include round-trip airfare to and from the port of embarkation, complimentary beverages, unlimited shore excursions, free internet, pre-cruise hotel packages, and on some of the exotic itineraries, pre- or post-land packages. Prices vary depending on the particular cruise itinerary, stateroom category selected and the time of year that the voyage takes place. Passenger ticket revenue also includes full ship charters as well as port fees and taxes. During the voyage, we generate onboard and other revenue for additional products and services which are not included in the cruise fare, including casino operations, certain food and beverage, gift shop purchases, spa services, photo services and other similar items. Food and beverage, casino operations and shore excursions are generally managed directly by us while retail shops, spa services, art auctions and internet services may be managed through contracts with third-party concessionaires. These contracts generally entitle us to a fixed percentage of the gross sales derived from these concessions, which is recognized on a net basis. While some onboard goods and services may be prepaid prior to the voyage, we utilize point-of-sale systems for discrete purchases made onboard. Certain of our product offerings are bundled and we allocate the value of the bundled goods and services between passenger ticket revenue and onboard and other revenue based upon the relative standalone selling prices of those goods and services. Timing of Satisfaction of Performance Obligations and Significant Payment Terms The payment terms and cancellation policies vary by brand, stateroom category, length of voyage, and country of purchase. A deposit for a future booking is required at or soon after the time of booking. Final payment is generally due between 120 days and 180 days before the voyage. Deposits on advance ticket sales are deferred when received, and include amounts that are refundable. Deferred amounts are subsequently recognized as revenue ratably during the voyage sailing days as services are rendered over time on the ship. Deposits are generally cancellable and refundable prior to sailing, but may be subject to penalties, depending on the timing of cancellation. The inception of substantive cancellation penalties generally coincides with the dates that final payment is due, and penalties generally increase as the voyage sail date approaches. Cancellation fees are recognized in passenger ticket revenue in the month of the cancellation. Goods and services associated with onboard revenue are generally provided at a point in time and revenue is recognized when the performance obligation is satisfied. Onboard goods and services rendered may be paid at disembarkation. A receivable is recognized for onboard goods and services rendered when the voyage is not completed before the end of the period. Cruises that are reserved under full ship charter agreements are subject to the payment terms of the specific agreement and may be either cancelable or non-cancelable. Deposits received on charter voyages are deferred when received and included in advance ticket sales. Deferred amounts are subsequently recognized as revenue ratably over the voyage sailing dates. Segment Reporting We have concluded that our business has a single reportable segment. Each brand, Norwegian, Oceania Cruises and Regent, constitutes a business for which discrete financial information is available and management regularly reviews the brand level operating results and, therefore, each brand is considered an operating segment. Our operating segments have similar economic and qualitative characteristics, including similar long-term margins and similar products and services; therefore, we aggregate all of the operating segments into one reportable segment. Although we sell cruises on an international basis, our passenger ticket revenue is primarily attributed to U.S.-sourced guests who make reservations in the U.S. Revenue attributable to U.S.-sourced guests has historically approximated 75-80%. No other individual country’s revenues exceed 10% in any given period. Disaggregation of Revenue Revenue and cash flows are affected by economic factors in various geographical regions. Revenues by destination consisted of the following (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 North America $ 997,550 $ 873,062 $ 2,724,298 $ 2,493,101 Europe 763,680 679,168 1,227,046 1,125,274 Asia-Pacific 77,986 79,439 499,377 268,383 Other 19,140 20,069 223,212 259,864 Total revenue $ 1,858,356 $ 1,651,738 $ 4,673,933 $ 4,146,622 Contract Balances Receivables from customers are included within accounts receivables, net. As of September 30, 2018 and January 1, 2018, our receivables from customers were $19.7 million and $13.8 million, respectively. Contract liabilities represent the Company’s obligation to transfer goods and services to a customer. A customer deposit held for a future cruise is generally considered a contract liability only when final payment is both due and paid by the customer and is usually recognized in earnings within 180 days of becoming a contract. Other deposits held and included within advance ticket sales or other long-term liabilities are not considered contract liabilities as they are largely cancelable and refundable. Our contract liabilities are included within advance ticket sales. As of September 30, 2018 and January 1, 2018, our contract liabilities were $1.3 billion and $1.0 billion, respectively. Of the amounts included within contract liabilities, approximately 50% were refundable in accordance with our cancellation policies. Approximately $1.0 billion of the January 1, 2018 contract liability balance has been recognized in revenue for the nine months ended September 30, 2018. Our revenue is seasonal and based on the demand for cruises. Historically, the seasonality of the North American cruise industry generally results in the greatest demand for cruises during the Northern Hemisphere’s summer months. This predictable seasonality in demand has resulted in fluctuations by quarter in our revenue and results of operations. The seasonality of our results is increased due to ships being taken out of service for regularly scheduled Dry-docks, which we typically schedule during non-peak demand periods. This seasonality will result in higher contract liability balances as a result of an increased number of reservations preceding these peak demand periods. The addition of new ships also increases the contract liability balances prior to a new ship’s delivery, as staterooms are usually made available for reservation prior to the inaugural cruise. Norwegian Bliss, with approximately 4,000 Berths, was delivered on April 19, 2018 and added 8% capacity to our fleet. Practical Expedients and Exemptions We do not disclose information about remaining performance obligations that have original expected durations of one year or less. We recognize revenue in an amount that corresponds directly with the value to the customer of our performance completed to date. Variable consideration, which will be determined based on a future rate and passenger count, is excluded from the disclosure and these amounts are not material. These variable non-disclosed contractual amounts relate to our non-cancelable charter agreements and a leasing arrangement with a certain port, both of which are long-term in nature. Amounts that are fixed in nature due to the application of minimum guarantees are also not material and are not disclosed. Contract Costs Management expects that incremental commissions and credit card fees paid as a result of obtaining ticket contracts are recoverable; therefore, we recognize these amounts as assets when they are paid prior to the voyage. Costs of air tickets and port taxes and fees that fulfill future performance obligations are also considered recoverable and are recorded as assets. As of September 30, 2018, $118.4 million of costs incurred to obtain customers and $25.6 million of costs to fulfill contracts with customers are recognized as assets within prepaid expenses and other assets. Incremental commissions, credit card fees, air ticket costs, and port taxes and fees are recognized ratably over the voyage sailing dates, concurrent with associated revenue, and are primarily in commissions, transportation and other expense. Financial Statement Presentation As of January 1, 2018, in connection with the adoption of Topic 606, we reclassified $51.6 million of deferred costs associated with obtaining customer contracts to prepaid expenses and other assets from advance ticket sales. Impacts on Financial Statements The adoption of Topic 606 does not change the timing, classification or amount of revenue recognized from customers in our consolidated financial statements nor does it change the timing, classification or amount of incremental costs to obtain and fulfill those contracts with customers. Therefore, the adoption had no impact on our consolidated statement of operations or consolidated statement of comprehensive income. The following table summarizes the impact of the adoption of Topic 606 on our consolidated balance sheet which has been adjusted for deferred contract costs that would have been included, net, in advance ticket sales as of September 30, 2018 (in thousands): As Reported Adjustments Balances Without Prepaid expenses and other assets $ 298,263 $ (59,881 ) $ 238,382 Total assets $ 15,307,471 $ (59,881 ) $ 15,247,590 Advance ticket sales $ 1,648,742 $ (59,881 ) $ 1,588,861 Total liabilities and shareholders’ equity $ 15,307,471 $ (59,881 ) $ 15,247,590 The following table summarizes the impact of the adoption of Topic 606 on our consolidated statement of cash flows for the nine months ended September 30, 2018 (in thousands): As Reported Adjustments Balances Without Changes in operating assets and liabilities: Prepaid expenses and other assets $ (34,451 ) $ 8,282 $ (26,169 ) Advance ticket sales $ 316,268 $ (8,282 ) $ 307,986 Net cash provided by operating activities $ 1,727,946 $ — $ 1,727,946 Foreign Currency The majority of our transactions are settled in U.S. dollars. We translate assets and liabilities of our foreign subsidiaries at exchange rates in effect at the balance sheet date. We recognized a loss of $0.2 million and $4.0 million for the three months ended September 30, 2018 and 2017, respectively, and a gain of $10.7 million and a loss of $14.8 million for the nine months ended September 30, 2018 and 2017, respectively, related to transactions denominated in other currencies. Depreciation and Amortization The amortization of deferred financing fees is included in depreciation and amortization in the consolidated statements of cash flows; however, for purposes of the consolidated statements of operations the amortization of deferred financing fees is included in interest expense, net. Recently Issued and Adopted Accounting Guidance In August 2018, the FASB issued ASU No. 2018-15, Intangibles —Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract (a consensus of the FAS Emerging Issues Task Force), On January 1, 2018, the Company adopted ASU No. 2017-12, Derivatives and Hedging (Topic 815) — Targeted Improvements to Accounting for Hedging Activities On January 1, 2018, the Company adopted ASU No. 2016-16, Income Taxes (Topic 740) — Intra-Entity Transfers of Assets Other Than Inventory, In December 2017, the Tax Cuts and Jobs Act (“the Act”) was enacted. Among other provisions, the Act reduced the corporate income tax rate from 35% to 21%. Also in December 2017, the SEC staff issued Staff Accounting Bulletin No. 118, which addresses the recognition of provisional amounts when a company does not have the necessary information available, prepared or analyzed (including computations) in reasonable detail to complete its accounting for the effect of the changes required by the Act. The measurement period ends when a company has obtained, prepared and analyzed the information necessary to finalize its accounting, but cannot extend beyond one year. As of September 30, 2018, the Company has not completed the accounting for the tax effects of enactment of the Act; however, as described below, the Company has made reasonable provisional best estimates, which are subject to change. The most significant impact of the Act for the Company was a $4.5 million reduction of the value of net deferred tax liabilities (which represent future tax expenses) recorded in 2017 as a discrete tax benefit resulting from the corporate tax rate reduction from 35% to 21%. Any adjustments to the provisional amount through the end of 2018 will be recorded as adjustments to income tax expense in income from operations. The provisional amounts incorporate assumptions made based upon the Company’s current interpretation of the Act and may change as the Company receives additional clarification and implementation guidance. Other aspects of the Act are either not applicable or not expected to have a material impact on the Company’s consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350) — Simplifying the Test for Goodwill Impairment, In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), to increase transparency and comparability among organizations by ing and disclosing key information about leasing arrangements |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 3. Intangible Assets The carrying amounts of intangible assets subject to amortization are included in other long-term assets in the consolidated balance sheets. Intangible assets consisted of the following (in thousands, except amortization period): September 30, 2018 Gross Carrying Accumulated Net Carrying Weighted- (in years) Customer relationships $ 120,000 $ (85,533 ) $ 34,467 6.0 Licenses 3,368 (2,544 ) 824 5.6 Total intangible assets subject to amortization $ 123,368 $ (88,077 ) $ 35,291 December 31, 2017 Gross Carrying Accumulated Net Carrying Weighted- (in years) Customer relationships $ 120,000 $ (66,866 ) $ 53,134 6.0 Licenses 3,368 (1,601 ) 1,767 5.6 Non-compete agreements 660 (660 ) — 1.0 Total intangible assets subject to amortization $ 124,028 $ (69,127 ) $ 54,901 The following table sets forth the aggregate amortization of intangible assets for the periods presented (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Amortization expense $ 6,553 $ 7,780 $ 19,610 $ 23,445 The following table sets forth the estimated annual aggregate amortization of intangible assets for the periods presented (in thousands): Year Ended December 31, Amortization Expense 2019 $ 18,489 2020 9,906 2021 75 2022 75 2023 75 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | 4. Accumulated Other Comprehensive Income Accumulated other comprehensive income (loss) consisted of the following for the periods presented (in thousands): Nine Months Ended September 30, 2018 Accumulated Other Comprehensive Income (Loss) Change Related to Cash Flow Hedges Change Related to Shipboard Retirement Plan Accumulated other comprehensive income (loss) at beginning of period $ 25,253 $ 33,214 $ (7,961 ) Current period other comprehensive income before reclassifications 48,047 48,047 — Amounts reclassified into earnings (18,895 ) (19,214 ) (1) 319 (2) Accumulated other comprehensive income (loss) at end of period $ 54,405 $ 62,047 (3) $ (7,642 ) Nine Months Ended September 30, 2017 Accumulated Other Comprehensive (Loss) Income Change Related to Cash Flow Hedges Change Related to Shipboard Retirement Plan Accumulated other comprehensive loss at beginning of period $ (316,186) $ (308,265 ) $ (7,921 ) Current period other comprehensive income before reclassifications 221,512 221,512 — Amounts reclassified into earnings 31,906 31,593 (1) 313 (4) Accumulated other comprehensive loss at end of period $ (62,768 ) $ (55,160 ) $ (7,608 ) (1) We refer you to Note 8— “Fair Value Measurements and Derivatives” in these notes to consolidated financial statements for the affected line items in the consolidated statements of operations. (2) Amortization of prior-service cost and actuarial loss reclassified to other income (expense), net. (3) Includes $55.0 million of gain expected to be reclassified into earnings in the next 12 months. (4) Amortization of prior-service cost and actuarial loss reclassified to payroll and related expense. |
Property and Equipment, net
Property and Equipment, net | 9 Months Ended |
Sep. 30, 2018 | |
Property, Plant and Equipment, Net [Abstract] | |
Property and Equipment, net | 5. Property and Equipment, net Property and equipment, net increased $1.0 billion for the nine months ended September 30, 2018 primarily due to the delivery of Norwegian Bliss and ship improvement projects. |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2018 | |
Long-term Debt, Unclassified [Abstract] | |
Long-Term Debt | 6. Long-Term Debt On April 19, 2018, we took delivery of Norwegian Bliss. To finance the payment due upon delivery, we had export financing in place for 80% of the contract price. The associated $850.0 million term loan bears interest at a fixed rate of 3.92% with a maturity date of April 19, 2030. Principal and interest payments are payable semiannually. On April 4, 2018, we redeemed $135.0 million principal amount of the $700.0 million aggregate principal amount of outstanding 4.750% Senior Notes due 2021 (the “Notes”) at a price equal to 100% of the principal amount of the Notes being redeemed and paid the premium of $5.1 million and accrued interest of $1.9 million. The redemption also resulted in a write off of $1.2 million of certain fees. Following the partial redemption, $565.0 million aggregate principal amount of Notes remained outstanding. |
Related Party Disclosures
Related Party Disclosures | 9 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Disclosures | 7. Related Party Disclosures In March 2018, as part of a public equity offering of NCLH’s ordinary shares owned by the Apollo Holders and Genting HK, NCLH repurchased 4,722,312 of its ordinary shares sold in the offering for approximately $263.5 million pursuant to its then existing share repurchase program. As of September 30, 2018, the ownership of NCLH’s ordinary shares consisted of the following: Shareholder Number of Percentage Apollo Holders 15,728,782 7.1 % Genting HK 3,148,307 1.4 % |
Fair Value Measurements and Der
Fair Value Measurements and Derivatives | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Derivatives | 8. Fair Value Measurements and Derivatives Fair value is defined as the price at which an orderly transaction to sell an asset or to transfer a liability would take place between market participants at the measurement date under current market conditions (that is, an exit price at the measurement date from the perspective of a market participant that holds the asset or owes the liability). Fair Value Hierarchy The following hierarchy for inputs used in measuring fair value should maximize the use of observable inputs and minimize the use of unobservable inputs by requiring that the most observable inputs be used when available: Level 1 — Quoted prices in active markets for identical assets or liabilities that are accessible at the measurement dates. Level 2 — Significant other observable inputs that are used by market participants in pricing the asset or liability based on market data obtained from independent sources. Level 3 — Significant unobservable inputs we believe market participants would use in pricing the asset or liability based on the best information available. Derivatives We are exposed to market risk attributable to changes in interest rates, foreign currency exchange rates and fuel prices. We attempt to minimize these risks through a combination of our normal operating and financing activities and through the use of derivatives. We assess whether derivatives used in hedging transactions are “highly effective” in offsetting changes in the cash flow of our hedged forecasted transactions. We use regression analysis for this hedge relationship and high effectiveness is achieved when a statistically valid relationship reflects a high degree of offset and correlation between the fair values of the derivative and the hedged forecasted transaction. There are no amounts excluded from the assessment of hedge effectiveness and there are no credit-risk-related contingent features in our derivative agreements. We monitor concentrations of credit risk associated with financial and other institutions with which we conduct significant business. Credit risk, including but not limited to counterparty non-performance under derivatives, is not considered significant, as we primarily conduct business with large, well-established financial institutions with which we have established relationships, and which have credit risks acceptable to us, or the credit risk is spread out among many creditors. We do not anticipate non-performance by any of our significant counterparties. As of September 30, 2018, we had fuel swaps, which are used to mitigate the financial impact of volatility of fuel prices pertaining to approximately 0.9 million metric tons of our projected fuel purchases, maturing through December 31, 2020. As of September 30, 2018, we had foreign currency forward contracts, matured foreign currency options and matured foreign currency collars which are used to mitigate the financial impact of volatility in foreign currency exchange rates related to our ship construction contracts denominated in euros. The notional amount of our foreign currency forward contracts was €2.0 billion, or $2.3 billion based on the euro/U.S. dollar exchange rate as of September 30, 2018. As of September 30, 2018, we had interest rate swap agreements which are used to hedge our exposure to interest rate movements and to manage our interest expense. The notional amount of our outstanding debt associated with the interest rate swap agreements was $1.0 billion as of September 30, 2018. The derivatives measured at fair value and the respective location in the consolidated balance sheets include the following (in thousands): Assets Liabilities Derivative Contracts Designated as Hedging Instruments Balance Sheet Location September 30, December 31, September 30, December 31, Fuel contracts Prepaid expenses and other assets $ 52,471 $ 19,220 $ — $ 2,406 Other long-term assets 32,357 19,854 281 3,469 Accrued expenses and other liabilities — — — 3,348 Other long-term liabilities — 576 — 2,148 Foreign currency contracts Prepaid expenses and other assets 2,229 52,300 — 730 Other long-term assets 33,337 85,081 2,976 — Accrued expenses and other liabilities — — 118 — Other long-term liabilities 4,747 — 9,312 — Interest rate contracts Prepaid expenses and other assets 1,984 — — — Other long-term assets 1,177 — — — Accrued expenses and other liabilities — — — 1,020 Total derivative contracts designated as hedging instruments $ 128,302 $ 177,031 $ 12,687 $ 13,121 The fair values of swap and forward contracts are determined based on inputs that are readily available in public markets or can be derived from information available in publicly quoted markets. The Company determines the value of options and collars utilizing an option pricing model based on inputs that are either readily available in public markets or can be derived from information available in publicly quoted markets. The option pricing model used by the Company is an industry standard model for valuing options and is used by the broker/dealer community. The inputs to this option pricing model are the option strike price, underlying price, risk-free rate of interest, time to expiration, and volatility. The fair value of option contracts considers both the intrinsic value and any remaining time value associated with those derivatives that have not yet settled. The Company also considers counterparty credit risk and its own credit risk in its determination of all estimated fair values. Our derivatives and financial instruments were categorized as Level 2 in the fair value hierarchy, and we had no derivatives or financial instruments categorized as Level 1 or Level 3. Our derivative contracts include rights of offset with our counterparties. We have elected to net certain assets and liabilities within counterparties when the rights of offset exist. We are not required to post cash collateral related to our derivative instruments. The gross and net amounts recognized within assets and liabilities include the following (in thousands): September 30, 2018 Gross Amounts Gross Total Net Gross Not Offset Net Amounts Assets $ 123,555 $ (3,257 ) $ 120,298 $ (34,549 ) $ 85,749 Liabilities 9,430 (4,747 ) 4,683 (3,716 ) 967 December 31, 2017 Gross Amounts Gross Total Net Gross Not Offset Net Amounts Assets $ 176,455 $ (6,605 ) $ 169,850 $ (127,924 ) $ 41,926 Liabilities 6,516 (576 ) 5,940 (1,020 ) 4,920 The effects of cash flow hedge accounting on accumulated other comprehensive income (loss) include the following (in thousands): Derivatives Amount of Gain (Loss) Recognized in Other Comprehensive Income Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 Fuel contracts $ 24,439 $ 30,452 Fuel $ 11,595 $ (9,796 ) Foreign currency contracts (10,062 ) 66,849 Depreciation and amortization (703 ) (1,157 ) Interest rate contracts 988 (25 ) Interest expense, net (186 ) (691 ) Total gain (loss) recognized in other comprehensive income $ 15,365 $ 97,276 $ 10,706 $ (11,644 ) The effects of cash flow hedge accounting on the consolidated statements of operations include the following (in thousands): Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 Fuel Depreciation Interest Fuel Depreciation Interest 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 $ 99,643 $ 143,700 $ 69,540 $ 91,231 $ 134,532 $ 66,339 Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into income Fuel contracts 11,595 — — (9,796 ) — — Foreign currency contracts — (703 ) — — (1,157 ) — Interest rate contracts — — (186 ) — — (691 ) The effects of cash flow hedge accounting on accumulated other comprehensive income (loss) include the following (in thousands): Derivatives Amount of Gain (Loss) Recognized in Other Comprehensive Income Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income Nine Months Ended September 30, 2018 Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2018 Nine Months Ended September 30, 2017 Fuel contracts $ 88,935 $ (635 ) Fuel $ 23,024 $ (26,383 ) Foreign currency contracts (43,951 ) 221,913 Depreciation and amortization (2,761 ) (2,909 ) Interest rate contracts 3,063 234 Interest expense, net (1,049 ) (2,301 ) Total gain (loss) recognized in other comprehensive income $ 48,047 $ 221,512 $ 19,214 $ (31,593 ) The effects of cash flow hedge accounting on the consolidated statements of operations include the following (in thousands): Nine Months Ended September 30, 2018 Nine Months Ended September 30, 2017 Fuel Depreciation Interest Fuel Depreciation Interest 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 $ 288,286 $ 415,648 $ 202,226 $ 266,780 $ 376,878 $ 183,497 Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into income Fuel contracts 23,024 — — (26,383 ) — — Foreign currency contracts — (2,761 ) — — (2,909 ) — Interest rate contracts — — (1,049 ) — — (2,301 ) Long-Term Debt As of September 30, 2018 and December 31, 2017, the fair value of our long-term debt, including the current portion, was $6,693.9 million and $6,448.6 million, respectively, which was $13.9 million and $23.5 million higher, respectively, than the carrying values. The difference between the fair value and carrying value of our long-term debt is due to our fixed and variable rate debt obligations carrying interest rates that are above or below market rates at the measurement dates. The fair value of our long-term debt was calculated based on estimated rates for the same or similar instruments with similar terms and remaining maturities resulting in Level 2 inputs in the fair value hierarchy. Market risk associated with our long-term variable rate debt is the potential increase in interest expense from an increase in interest rates. The calculation of the fair value of our long-term debt is considered a Level 2 input. Other The carrying amounts reported in the consolidated balance sheets of all other financial assets and liabilities approximate fair value. |
Employee Benefits and Compensat
Employee Benefits and Compensation Plans | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee Benefits and Compensation Plans | 9. Employee Benefits and Compensation Plans Share Option Awards The following table sets forth a summary of option activity under NCLH’s Amended and Restated 2013 Performance Incentive Plan, including 208,335 previously awarded performance-based share option awards, for which a grant date was established in 2018, for the period presented: Number of Share Option Awards Weighted-Average Exercise Price Weighted- Average Contractual Term Aggregate Time- Performance- Market- Time- Performance- Market- (in years) (in thousands) Outstanding as of January 1, 2018 6,580,898 373,969 208,333 $ 49.18 $ 31.39 $ 59.43 6.99 $ 50,021 Granted — 208,335 — $ — $ 59.43 $ — — $ — Exercised (625,611 ) (109,285 ) — $ 34.44 $ 19.00 $ — — $ — Forfeited and cancelled (192,333 ) (52,084 ) — $ 54.70 $ 59.43 $ — — $ — Outstanding as of September 30, 2018 5,762,954 420,935 208,333 $ 50.60 $ 45.01 $ 59.43 6.46 $ 47,269 Restricted Ordinary Share Awards The following is a summary of NCLH’s restricted ordinary share activity for the period presented: Number of Weighted- Average Grant Non-vested as of January 1, 2018 858 $ 58.33 Vested (429 ) $ 58.25 Non-vested as of September 30, 2018 429 $ 58.41 Restricted Share Unit Awards On March 1, 2018, NCLH granted to certain employees 1.6 million time-based restricted share unit awards which vest equally over three years. Also on March 1, 2018, NCLH also granted to certain members of our management team 0.5 million performance-based restricted share units, which vest upon the achievement of certain pre-established performance targets and which amount assumes the maximum level of achievement. The following table sets forth a summary of restricted share unit activity and includes 0.3 million previously awarded performance-based restricted share awards for which the grant date was established in 2018 (the number reported assumes the maximum level of achievement), for the period presented: Number of Weighted- Number of Weighted- Number of Weighted- Non-vested as of January 1, 2018 2,555,477 $ 50.86 — $ — 50,000 $ 59.43 Granted 1,613,077 $ 56.73 843,998 $ 56.58 — $ — Vested (1,032,760 ) $ 50.66 — $ — — $ — Forfeited or expired (142,227 ) $ 53.31 (18,384 ) $ 56.43 — $ — Non-vested as of September 30, 2018 2,993,567 $ 53.98 825,614 $ 56.58 50,000 $ 59.43 Share-based compensation expense for the three and nine months ended September 30, 2018 was $29.0 million and $88.8 million, respectively, of which $24.9 million and $77.0 million, respectively, was recorded in marketing, general and administrative expense and $4.1 million and $11.8 million, respectively, was recorded in payroll and related expense, in the consolidated statements of operations. Share-based compensation expense for the three and nine months ended September 30, 2017 was $21.5 million and $63.7 million, respectively, of which $18.6 million and $57.1 million, respectively, was recorded in marketing, general and administrative expense and $2.9 million and $6.6 million, respectively, was recorded in payroll and related expense in the consolidated statements of operations. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 10. Commitments and Contingencies Ship Construction Contracts Project Leonardo will introduce an additional six ships, each approximately 140,000 Gross Tons with 3,300 Berths, with expected delivery dates from 2022 through 2027, subject to certain conditions. The effectiveness of the confirmed orders to construct two of the ships, expected to be delivered in 2026 and 2027, is contingent, among other things, upon the Company’s entry into committed financing arrangements. We have a Breakaway Plus Class Ship, Norwegian Encore, with approximately 168,000 Gross Tons with 4,000 Berths, on order for delivery in the fall of 2019, and an Explorer Class Ship, Seven Seas Splendor, with approximately 55,000 Gross Tons with 750 Berths, on order for delivery in the winter of 2020. The combined contract price of the aforementioned eight ships is approximately €7.1 billion, or $8.4 billion based on the euro/U.S. dollar exchange rate as of September 30, 2018. For six of the ships, we have obtained export credit financing, which is expected to fund approximately 80% of the contract price of each ship expected to be delivered through 2025, subject to certain conditions. We do not anticipate any contractual breach or cancellation of the contracts to build these ships; however, if any were to occur, it could result in, among other things, the forfeiture of prior deposits or payments made by us, subject to certain refund guarantees, and potential claims and impairment losses which may materially impact our business, financial condition and results of operations. Litigation In the normal course of our business, various claims and lawsuits have been filed or are pending against us. Most of these claims and lawsuits are covered by insurance and, accordingly, the maximum amount of our liability is typically limited to our deductible amount. Nonetheless, the ultimate outcome of these claims and lawsuits that are not covered by insurance cannot be determined at this time. We have evaluated our overall exposure with respect to all of our threatened and pending litigation and, to the extent required, we have accrued amounts for all estimable probable losses associated with our deemed exposure. We are currently unable to estimate any other potential contingent losses beyond those accrued, as discovery is not complete nor is adequate information available to estimate such range of loss or potential recovery. However, based on our current knowledge, we do not believe that the aggregate amount or range of reasonably possible losses with respect to these matters will be material to our consolidated results of operations, financial condition or cash flows. We intend to vigorously defend our legal position on all claims and, to the extent necessary, seek recovery. |
Other Income (Expense), Net
Other Income (Expense), Net | 9 Months Ended |
Sep. 30, 2018 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense), Net | 11. Other Income (Expense), Net For the three and nine months ended September 30, 2018, other income (expense), net was income of $0.1 million and $11.4 million, respectively, primarily due to foreign currency exchange gains. For the three months ended September 30, 2017, other income (expense), net was expense of $3.3 million, due to foreign currency exchange losses. For the nine months ended September 30, 2017, other income (expense), net was expense of $11.7 million, due to foreign currency exchange losses, partially offset by a gain from an insurance claim. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 9 Months Ended |
Sep. 30, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | 12. Supplemental Cash Flow Information For the nine months ended September 30, 2018, we had non-cash investing activities related to property and equipment of $17.8 million and net foreign currency adjustments of $4.5 million related to euro-denominated debt related to the financing of two of our Project Leonardo ships. For the nine months ended September 30, 2017, we had non-cash investing activities related to property and equipment of $15.2 million and non-cash investing activities related to capital leases of $13.3 million. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements are unaudited and, in our opinion, contain all normal recurring adjustments necessary for a fair statement of the results for the periods presented. Our operations are seasonal and results for interim periods are not necessarily indicative of the results for the entire fiscal year. Historically, demand for cruises has been strongest during the Northern Hemisphere’s summer months. The interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2017, which are included in our most recent Annual Report on Form 10-K filed for the year ended December 31, 2017 (“Annual Report”), with the SEC. |
Revenue and Expense Recognition | Revenue and Expense Recognition On January 1, 2018, we adopted the Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, (Topic 606) Nature of Goods and Services We offer our guests a multitude of cruise fare options when booking a cruise. Our cruise ticket prices generally include cruise fare and a wide variety of onboard activities and amenities, as well as meals and entertainment. In some instances, cruise ticket prices include round-trip airfare to and from the port of embarkation, complimentary beverages, unlimited shore excursions, free internet, pre-cruise hotel packages, and on some of the exotic itineraries, pre- or post-land packages. Prices vary depending on the particular cruise itinerary, stateroom category selected and the time of year that the voyage takes place. Passenger ticket revenue also includes full ship charters as well as port fees and taxes. During the voyage, we generate onboard and other revenue for additional products and services which are not included in the cruise fare, including casino operations, certain food and beverage, gift shop purchases, spa services, photo services and other similar items. Food and beverage, casino operations and shore excursions are generally managed directly by us while retail shops, spa services, art auctions and internet services may be managed through contracts with third-party concessionaires. These contracts generally entitle us to a fixed percentage of the gross sales derived from these concessions, which is recognized on a net basis. While some onboard goods and services may be prepaid prior to the voyage, we utilize point-of-sale systems for discrete purchases made onboard. Certain of our product offerings are bundled and we allocate the value of the bundled goods and services between passenger ticket revenue and onboard and other revenue based upon the relative standalone selling prices of those goods and services. Timing of Satisfaction of Performance Obligations and Significant Payment Terms The payment terms and cancellation policies vary by brand, stateroom category, length of voyage, and country of purchase. A deposit for a future booking is required at or soon after the time of booking. Final payment is generally due between 120 days and 180 days before the voyage. Deposits on advance ticket sales are deferred when received, and include amounts that are refundable. Deferred amounts are subsequently recognized as revenue ratably during the voyage sailing days as services are rendered over time on the ship. Deposits are generally cancellable and refundable prior to sailing, but may be subject to penalties, depending on the timing of cancellation. The inception of substantive cancellation penalties generally coincides with the dates that final payment is due, and penalties generally increase as the voyage sail date approaches. Cancellation fees are recognized in passenger ticket revenue in the month of the cancellation. Goods and services associated with onboard revenue are generally provided at a point in time and revenue is recognized when the performance obligation is satisfied. Onboard goods and services rendered may be paid at disembarkation. A receivable is recognized for onboard goods and services rendered when the voyage is not completed before the end of the period. Cruises that are reserved under full ship charter agreements are subject to the payment terms of the specific agreement and may be either cancelable or non-cancelable. Deposits received on charter voyages are deferred when received and included in advance ticket sales. Deferred amounts are subsequently recognized as revenue ratably over the voyage sailing dates. Segment Reporting We have concluded that our business has a single reportable segment. Each brand, Norwegian, Oceania Cruises and Regent, constitutes a business for which discrete financial information is available and management regularly reviews the brand level operating results and, therefore, each brand is considered an operating segment. Our operating segments have similar economic and qualitative characteristics, including similar long-term margins and similar products and services; therefore, we aggregate all of the operating segments into one reportable segment. Although we sell cruises on an international basis, our passenger ticket revenue is primarily attributed to U.S.-sourced guests who make reservations in the U.S. Revenue attributable to U.S.-sourced guests has historically approximated 75-80%. No other individual country’s revenues exceed 10% in any given period. Disaggregation of Revenue Revenue and cash flows are affected by economic factors in various geographical regions. Revenues by destination consisted of the following (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 North America $ 997,550 $ 873,062 $ 2,724,298 $ 2,493,101 Europe 763,680 679,168 1,227,046 1,125,274 Asia-Pacific 77,986 79,439 499,377 268,383 Other 19,140 20,069 223,212 259,864 Total revenue $ 1,858,356 $ 1,651,738 $ 4,673,933 $ 4,146,622 Contract Balances Receivables from customers are included within accounts receivables, net. As of September 30, 2018 and January 1, 2018, our receivables from customers were $19.7 million and $13.8 million, respectively. Contract liabilities represent the Company’s obligation to transfer goods and services to a customer. A customer deposit held for a future cruise is generally considered a contract liability only when final payment is both due and paid by the customer and is usually recognized in earnings within 180 days of becoming a contract. Other deposits held and included within advance ticket sales or other long-term liabilities are not considered contract liabilities as they are largely cancelable and refundable. Our contract liabilities are included within advance ticket sales. As of September 30, 2018 and January 1, 2018, our contract liabilities were $1.3 billion and $1.0 billion, respectively. Of the amounts included within contract liabilities, approximately 50% were refundable in accordance with our cancellation policies. Approximately $1.0 billion of the January 1, 2018 contract liability balance has been recognized in revenue for the nine months ended September 30, 2018. Our revenue is seasonal and based on the demand for cruises. Historically, the seasonality of the North American cruise industry generally results in the greatest demand for cruises during the Northern Hemisphere’s summer months. This predictable seasonality in demand has resulted in fluctuations by quarter in our revenue and results of operations. The seasonality of our results is increased due to ships being taken out of service for regularly scheduled Dry-docks, which we typically schedule during non-peak demand periods. This seasonality will result in higher contract liability balances as a result of an increased number of reservations preceding these peak demand periods. The addition of new ships also increases the contract liability balances prior to a new ship’s delivery, as staterooms are usually made available for reservation prior to the inaugural cruise. Norwegian Bliss, with approximately 4,000 Berths, was delivered on April 19, 2018 and added 8% capacity to our fleet. Practical Expedients and Exemptions We do not disclose information about remaining performance obligations that have original expected durations of one year or less. We recognize revenue in an amount that corresponds directly with the value to the customer of our performance completed to date. Variable consideration, which will be determined based on a future rate and passenger count, is excluded from the disclosure and these amounts are not material. These variable non-disclosed contractual amounts relate to our non-cancelable charter agreements and a leasing arrangement with a certain port, both of which are long-term in nature. Amounts that are fixed in nature due to the application of minimum guarantees are also not material and are not disclosed. Contract Costs Management expects that incremental commissions and credit card fees paid as a result of obtaining ticket contracts are recoverable; therefore, we recognize these amounts as assets when they are paid prior to the voyage. Costs of air tickets and port taxes and fees that fulfill future performance obligations are also considered recoverable and are recorded as assets. As of September 30, 2018, $118.4 million of costs incurred to obtain customers and $25.6 million of costs to fulfill contracts with customers are recognized as assets within prepaid expenses and other assets. Incremental commissions, credit card fees, air ticket costs, and port taxes and fees are recognized ratably over the voyage sailing dates, concurrent with associated revenue, and are primarily in commissions, transportation and other expense. Financial Statement Presentation As of January 1, 2018, in connection with the adoption of Topic 606, we reclassified $51.6 million of deferred costs associated with obtaining customer contracts to prepaid expenses and other assets from advance ticket sales. Impacts on Financial Statements The adoption of Topic 606 does not change the timing, classification or amount of revenue recognized from customers in our consolidated financial statements nor does it change the timing, classification or amount of incremental costs to obtain and fulfill those contracts with customers. Therefore, the adoption had no impact on our consolidated statement of operations or consolidated statement of comprehensive income. The following table summarizes the impact of the adoption of Topic 606 on our consolidated balance sheet which has been adjusted for deferred contract costs that would have been included, net, in advance ticket sales as of September 30, 2018 (in thousands): As Reported Adjustments Balances Without Prepaid expenses and other assets $ 298,263 $ (59,881 ) $ 238,382 Total assets $ 15,307,471 $ (59,881 ) $ 15,247,590 Advance ticket sales $ 1,648,742 $ (59,881 ) $ 1,588,861 Total liabilities and shareholders’ equity $ 15,307,471 $ (59,881 ) $ 15,247,590 The following table summarizes the impact of the adoption of Topic 606 on our consolidated statement of cash flows for the nine months ended September 30, 2018 (in thousands): As Reported Adjustments Balances Without Changes in operating assets and liabilities: Prepaid expenses and other assets $ (34,451 ) $ 8,282 $ (26,169 ) Advance ticket sales $ 316,268 $ (8,282 ) $ 307,986 Net cash provided by operating activities $ 1,727,946 $ — $ 1,727,946 |
Foreign Currency | Foreign Currency The majority of our transactions are settled in U.S. dollars. We translate assets and liabilities of our foreign subsidiaries at exchange rates in effect at the balance sheet date. We recognized a loss of $0.2 million and $4.0 million for the three months ended September 30, 2018 and 2017, respectively, and a gain of $10.7 million and a loss of $14.8 million for the nine months ended September 30, 2018 and 2017, respectively, related to transactions denominated in other currencies. |
Depreciation and Amortization | Depreciation and Amortization The amortization of deferred financing fees is included in depreciation and amortization in the consolidated statements of cash flows; however, for purposes of the consolidated statements of operations the amortization of deferred financing fees is included in interest expense, net. |
Recently Issued and Adopted Accounting Guidance | Recently Issued and Adopted Accounting Guidance In August 2018, the FASB issued ASU No. 2018-15, Intangibles —Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract (a consensus of the FAS Emerging Issues Task Force), On January 1, 2018, the Company adopted ASU No. 2017-12, Derivatives and Hedging (Topic 815) — Targeted Improvements to Accounting for Hedging Activities On January 1, 2018, the Company adopted ASU No. 2016-16, Income Taxes (Topic 740) — Intra-Entity Transfers of Assets Other Than Inventory, In December 2017, the Tax Cuts and Jobs Act (“the Act”) was enacted. Among other provisions, the Act reduced the corporate income tax rate from 35% to 21%. Also in December 2017, the SEC staff issued Staff Accounting Bulletin No. 118, which addresses the recognition of provisional amounts when a company does not have the necessary information available, prepared or analyzed (including computations) in reasonable detail to complete its accounting for the effect of the changes required by the Act. The measurement period ends when a company has obtained, prepared and analyzed the information necessary to finalize its accounting, but cannot extend beyond one year. As of September 30, 2018, the Company has not completed the accounting for the tax effects of enactment of the Act; however, as described below, the Company has made reasonable provisional best estimates, which are subject to change. The most significant impact of the Act for the Company was a $4.5 million reduction of the value of net deferred tax liabilities (which represent future tax expenses) recorded in 2017 as a discrete tax benefit resulting from the corporate tax rate reduction from 35% to 21%. Any adjustments to the provisional amount through the end of 2018 will be recorded as adjustments to income tax expense in income from operations. The provisional amounts incorporate assumptions made based upon the Company’s current interpretation of the Act and may change as the Company receives additional clarification and implementation guidance. Other aspects of the Act are either not applicable or not expected to have a material impact on the Company’s consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350) — Simplifying the Test for Goodwill Impairment, In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), to increase transparency and comparability among organizations by ing and disclosing key information about leasing arrangements |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Schedule of revenues by destination | Three Months Ended Nine Months Ended 2018 2017 2018 2017 North America $ 997,550 $ 873,062 $ 2,724,298 $ 2,493,101 Europe 763,680 679,168 1,227,046 1,125,274 Asia-Pacific 77,986 79,439 499,377 268,383 Other 19,140 20,069 223,212 259,864 Total revenue $ 1,858,356 $ 1,651,738 $ 4,673,933 $ 4,146,622 |
Schedule of impacts of Topic 606 adoption on consolidated balance sheet | As Reported Adjustments Balances Without Prepaid expenses and other assets $ 298,263 $ (59,881 ) $ 238,382 Total assets $ 15,307,471 $ (59,881 ) $ 15,247,590 Advance ticket sales $ 1,648,742 $ (59,881 ) $ 1,588,861 Total liabilities and shareholders’ equity $ 15,307,471 $ (59,881 ) $ 15,247,590 |
Schedule of impacts of adoption of Topic 606 on consolidated statement of cash flows | As Reported Adjustments Balances Without Changes in operating assets and liabilities: Prepaid expenses and other assets $ (34,451 ) $ 8,282 $ (26,169 ) Advance ticket sales $ 316,268 $ (8,282 ) $ 307,986 Net cash provided by operating activities $ 1,727,946 $ — $ 1,727,946 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible assets and goodwill | September 30, 2018 Gross Carrying Accumulated Net Carrying Weighted- (in years) Customer relationships $ 120,000 $ (85,533 ) $ 34,467 6.0 Licenses 3,368 (2,544 ) 824 5.6 Total intangible assets subject to amortization $ 123,368 $ (88,077 ) $ 35,291 December 31, 2017 Gross Carrying Accumulated Net Carrying Weighted- (in years) Customer relationships $ 120,000 $ (66,866 ) $ 53,134 6.0 Licenses 3,368 (1,601 ) 1,767 5.6 Non-compete agreements 660 (660 ) — 1.0 Total intangible assets subject to amortization $ 124,028 $ (69,127 ) $ 54,901 |
Schedule of aggregate amortization expense | Three Months Ended Nine Months Ended 2018 2017 2018 2017 Amortization expense $ 6,553 $ 7,780 $ 19,610 $ 23,445 |
Schedule of estimated aggregate amortization expense | Year Ended December 31, Amortization Expense 2019 $ 18,489 2020 9,906 2021 75 2022 75 2023 75 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Schedule of accumulated other comprehensive income (loss) | Nine Months Ended September 30, 2018 Accumulated Other Comprehensive Income (Loss) Change Related to Cash Flow Hedges Change Related to Shipboard Retirement Plan Accumulated other comprehensive income (loss) at beginning of period $ 25,253 $ 33,214 $ (7,961 ) Current period other comprehensive income before reclassifications 48,047 48,047 — Amounts reclassified into earnings (18,895 ) (19,214 ) (1) 319 (2) Accumulated other comprehensive income (loss) at end of period $ 54,405 $ 62,047 (3) $ (7,642 ) Nine Months Ended September 30, 2017 Accumulated Other Comprehensive (Loss) Income Change Related to Cash Flow Hedges Change Related to Shipboard Retirement Plan Accumulated other comprehensive loss at beginning of period $ (316,186) $ (308,265 ) $ (7,921 ) Current period other comprehensive income before reclassifications 221,512 221,512 — Amounts reclassified into earnings 31,906 31,593 (1) 313 (4) Accumulated other comprehensive loss at end of period $ (62,768 ) $ (55,160 ) $ (7,608 ) (1) We refer you to Note 8— “Fair Value Measurements and Derivatives” in these notes to consolidated financial statements for the affected line items in the consolidated statements of operations. (2) Amortization of prior-service cost and actuarial loss reclassified to other income (expense), net. (3) Includes $55.0 million of gain expected to be reclassified into earnings in the next 12 months. (4) Amortization of prior-service cost and actuarial loss reclassified to payroll and related expense. |
Related Party Disclosures (Tabl
Related Party Disclosures (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of transactions with Genting HK, the Apollo Funds and the TPG Viking Funds | Shareholder Number of Percentage Apollo Holders 15,728,782 7.1 % Genting HK 3,148,307 1.4 % |
Fair Value Measurements and D_2
Fair Value Measurements and Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of derivatives measured at fair value and discloses the balance sheet location | Assets Liabilities Derivative Contracts Designated as Hedging Instruments Balance Sheet Location September 30, December 31, September 30, December 31, Fuel contracts Prepaid expenses and other assets $ 52,471 $ 19,220 $ — $ 2,406 Other long-term assets 32,357 19,854 281 3,469 Accrued expenses and other liabilities — — — 3,348 Other long-term liabilities — 576 — 2,148 Foreign currency contracts Prepaid expenses and other assets 2,229 52,300 — 730 Other long-term assets 33,337 85,081 2,976 — Accrued expenses and other liabilities — — 118 — Other long-term liabilities 4,747 — 9,312 — Interest rate contracts Prepaid expenses and other assets 1,984 — — — Other long-term assets 1,177 — — — Accrued expenses and other liabilities — — — 1,020 Total derivative contracts designated as hedging instruments $ 128,302 $ 177,031 $ 12,687 $ 13,121 |
Schedule of discloses the gross and net amounts recognized within assets and liabilities | September 30, 2018 Gross Amounts Gross Total Net Gross Not Offset Net Amounts Assets $ 123,555 $ (3,257 ) $ 120,298 $ (34,549 ) $ 85,749 Liabilities 9,430 (4,747 ) 4,683 (3,716 ) 967 December 31, 2017 Gross Amounts Gross Total Net Gross Not Offset Net Amounts Assets $ 176,455 $ (6,605 ) $ 169,850 $ (127,924 ) $ 41,926 Liabilities 6,516 (576 ) 5,940 (1,020 ) 4,920 |
Schedule of cash flow hedge accounting on accumulated other comprehensive income | Derivatives Amount of Gain (Loss) Recognized in Other Comprehensive Income Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 Fuel contracts $ 24,439 $ 30,452 Fuel $ 11,595 $ (9,796 ) Foreign currency contracts (10,062 ) 66,849 Depreciation and amortization (703 ) (1,157 ) Interest rate contracts 988 (25 ) Interest expense, net (186 ) (691 ) Total gain (loss) recognized in other comprehensive income $ 15,365 $ 97,276 $ 10,706 $ (11,644 ) Derivatives Amount of Gain (Loss) Recognized in Other Comprehensive Income Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income Nine Months Ended September 30, 2018 Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2018 Nine Months Ended September 30, 2017 Fuel contracts $ 88,935 $ (635 ) Fuel $ 23,024 $ (26,383 ) Foreign currency contracts (43,951 ) 221,913 Depreciation and amortization (2,761 ) (2,909 ) Interest rate contracts 3,063 234 Interest expense, net (1,049 ) (2,301 ) Total gain (loss) recognized in other comprehensive income $ 48,047 $ 221,512 $ 19,214 $ (31,593 ) |
Schedule of cash flow hedge accounting on the consolidated financial statements of operations | Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 Fuel Depreciation Interest Fuel Depreciation Interest 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 $ 99,643 $ 143,700 $ 69,540 $ 91,231 $ 134,532 $ 66,339 Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into income Fuel contracts 11,595 — — (9,796 ) — — Foreign currency contracts — (703 ) — — (1,157 ) — Interest rate contracts — — (186 ) — — (691 ) Nine Months Ended September 30, 2018 Nine Months Ended September 30, 2017 Fuel Depreciation Interest Fuel Depreciation Interest 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 $ 288,286 $ 415,648 $ 202,226 $ 266,780 $ 376,878 $ 183,497 Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into income Fuel contracts 23,024 — — (26,383 ) — — Foreign currency contracts — (2,761 ) — — (2,909 ) — Interest rate contracts — — (1,049 ) — — (2,301 ) |
Employee Benefits and Compens_2
Employee Benefits and Compensation Plans (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of summary of option activity under NCLH's share option plan | Number of Share Option Awards Weighted-Average Exercise Price Weighted- Average Contractual Term Aggregate Time- Performance- Market- Time- Performance- Market- (in years) (in thousands) Outstanding as of January 1, 2018 6,580,898 373,969 208,333 $ 49.18 $ 31.39 $ 59.43 6.99 $ 50,021 Granted — 208,335 — $ — $ 59.43 $ — — $ — Exercised (625,611 ) (109,285 ) — $ 34.44 $ 19.00 $ — — $ — Forfeited and cancelled (192,333 ) (52,084 ) — $ 54.70 $ 59.43 $ — — $ — Outstanding as of September 30, 2018 5,762,954 420,935 208,333 $ 50.60 $ 45.01 $ 59.43 6.46 $ 47,269 |
Schedule of summary of restricted ordinary share activity | Number of Weighted- Average Grant Non-vested as of January 1, 2018 858 $ 58.33 Vested (429 ) $ 58.25 Non-vested as of September 30, 2018 429 $ 58.41 |
Schedule of summary of restricted share unit activity | Number of Weighted- Number of Weighted- Number of Weighted- Non-vested as of January 1, 2018 2,555,477 $ 50.86 — $ — 50,000 $ 59.43 Granted 1,613,077 $ 56.73 843,998 $ 56.58 — $ — Vested (1,032,760 ) $ 50.66 — $ — — $ — Forfeited or expired (142,227 ) $ 53.31 (18,384 ) $ 56.43 — $ — Non-vested as of September 30, 2018 2,993,567 $ 53.98 825,614 $ 56.58 50,000 $ 59.43 |
Description of Business and O_2
Description of Business and Organization (Detail Textuals) | 9 Months Ended |
Sep. 30, 2018CruiseShipBerthAdditionalships | |
Description Of Business And Organization [Line Items] | |
Number of cruises ships | 26 |
Capacity of ship, berths | Berth | 54,400 |
Project Leonardo | |
Description Of Business And Organization [Line Items] | |
Number of cruises ships | 2 |
Increased number of berths | Berth | 78,900 |
Ships launching period through 2025 | |
Description Of Business And Organization [Line Items] | |
Number of additional ships | Additionalships | 6 |
Ships launching period through 2027 | |
Description Of Business And Organization [Line Items] | |
Number of additional ships | 8 |
Ships launching period in 2022 through 2027 | Project Leonardo | |
Description Of Business And Organization [Line Items] | |
Number of additional ships | 6 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 1,858,356 | $ 1,651,738 | $ 4,673,933 | $ 4,146,622 |
North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 997,550 | 873,062 | 2,724,298 | 2,493,101 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 763,680 | 679,168 | 1,227,046 | 1,125,274 |
Asia-Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 77,986 | 79,439 | 499,377 | 268,383 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 19,140 | $ 20,069 | $ 223,212 | $ 259,864 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details 1) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Prepaid expenses and other assets | $ 298,263 | $ 216,111 |
Total assets | 15,307,471 | 14,070,339 |
Advance ticket sales | 1,648,742 | 1,303,498 |
Total liabilities and shareholders' equity | 15,307,471 | $ 14,070,339 |
Adjustments | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Prepaid expenses and other assets, Adjustments | (59,881) | |
Total assets, Adjustments | (59,881) | |
Advance ticket sales, Adjustments | (59,881) | |
Total liabilities and shareholders' equity, Adjustments | (59,881) | |
Balances without adoption of Topic 606 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Prepaid expenses and other assets | 238,382 | |
Total assets | 15,247,590 | |
Advance ticket sales | 1,588,861 | |
Total liabilities and shareholders' equity | $ 15,247,590 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details 2) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other assets | $ (34,451) | $ (14,626) |
Advance ticket sales | 316,268 | 187,131 |
Net cash provided by operating activities | 1,727,946 | $ 1,366,635 |
Adjustments | ||
Changes in operating assets and liabilities: | ||
Prepaid expenses and other assets | 8,282 | |
Advance ticket sales | (8,282) | |
Net cash provided by operating activities | 0 | |
Balances without adoption of Topic 606 | ||
Changes in operating assets and liabilities: | ||
Prepaid expenses and other assets | (26,169) | |
Advance ticket sales | 307,986 | |
Net cash provided by operating activities | $ 1,727,946 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Detail Textuals) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Apr. 19, 2018Berth | Sep. 30, 2018USD ($)Berth | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)Berth | Sep. 30, 2017USD ($) | Jan. 01, 2018USD ($) | |
Schedule Of Significant Accounting Policies [Line Items] | ||||||
Deferred costs | $ 51.6 | |||||
Foreign currency transaction gain | $ 10.7 | |||||
Foreign currency transaction loss | $ 0.2 | $ 4 | $ 14.8 | |||
Income tax expense due to reduction of deferred tax liabilities | $ 4.5 | |||||
Capacity of ship, berths | Berth | 54,400 | 54,400 | ||||
Receivables from customers included in accounts receivable, net | $ 19.7 | $ 19.7 | 13.8 | |||
Contract with customer liability | 1,300 | $ 1,300 | $ 1,000 | |||
Percentage refundable on cancellation | 50.00% | |||||
Revenue recognized included in contract liability | $ 1,000 | |||||
Tax Year 2017 | ||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||
U.S. corporate income tax rate | 35.00% | |||||
Tax Year 2018 | ||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||
U.S. corporate income tax rate | 21.00% | |||||
Costs incurred to obtain customers | ||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||
Capitalized contract cost | 118.4 | $ 118.4 | ||||
Costs to fulfill contracts with customers | ||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||
Capitalized contract cost | $ 25.6 | $ 25.6 | ||||
Norwegian Bliss | ||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||
Capacity of ship, berths | Berth | 4,000 | |||||
Percentage of capacity to fleet | 8.00% | |||||
Minimum | ||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||
Final payment period before voyage | 120 days | |||||
Maximum | ||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||
Final payment period before voyage | 180 days | |||||
Revenue | ||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||
Concentration risk, benchmark | No other individual country's revenues exceed 10% in any given period | |||||
Revenue | Minimum | ||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||
Percentage of revenue attributable to U.S.- sourced passengers | 75.00% | |||||
Revenue | Maximum | ||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||
Percentage of revenue attributable to U.S.- sourced passengers | 80.00% |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets subject to amortization, Gross Carrying Amount | $ 123,368 | $ 124,028 |
Intangible assets subject to amortization, Accumulated Amortization | (88,077) | (69,127) |
Intangible assets subject to amortization, Net Carrying Amount | 35,291 | 54,901 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets subject to amortization, Gross Carrying Amount | 120,000 | 120,000 |
Intangible assets subject to amortization, Accumulated Amortization | (85,533) | (66,866) |
Intangible assets subject to amortization, Net Carrying Amount | $ 34,467 | $ 53,134 |
Weighted - Average Amortization Period (Years) | 6 years | 6 years |
Licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets subject to amortization, Gross Carrying Amount | $ 3,368 | $ 3,368 |
Intangible assets subject to amortization, Accumulated Amortization | (2,544) | (1,601) |
Intangible assets subject to amortization, Net Carrying Amount | $ 824 | $ 1,767 |
Weighted - Average Amortization Period (Years) | 5 years 6 months 7 days | 5 years 6 months 7 days |
Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets subject to amortization, Gross Carrying Amount | $ 660 | |
Intangible assets subject to amortization, Accumulated Amortization | (660) | |
Intangible assets subject to amortization, Net Carrying Amount | $ 0 | |
Weighted - Average Amortization Period (Years) | 1 year |
Intangible Assets (Details 1)
Intangible Assets (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 6,553 | $ 7,780 | $ 19,610 | $ 23,445 |
Intangible Assets (Details 2)
Intangible Assets (Details 2) $ in Thousands | Sep. 30, 2018USD ($) |
Amortization Expense | |
2,019 | $ 18,489 |
2,020 | 9,906 |
2,021 | 75 |
2,022 | 75 |
2,023 | $ 75 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Accumulated other comprehensive loss at beginning of period | $ 25,253 | ||||
Accumulated other comprehensive loss at end of period | 54,405 | ||||
Accumulated Other Comprehensive Income (Loss) | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Accumulated other comprehensive loss at beginning of period | 25,253 | $ (316,186) | |||
Current period other comprehensive income before reclassifications | 48,047 | 221,512 | |||
Amounts reclassified into earnings | (18,895) | 31,906 | |||
Accumulated other comprehensive loss at end of period | 54,405 | (62,768) | |||
Change Related to Cash Flow Hedges | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Accumulated other comprehensive loss at beginning of period | 33,214 | (308,265) | |||
Current period other comprehensive income before reclassifications | 48,047 | 221,512 | |||
Amounts reclassified into earnings | [1] | (19,214) | 31,593 | ||
Accumulated other comprehensive loss at end of period | 62,047 | [2] | (55,160) | ||
Change Related to Shipboard Retirement Plan | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Accumulated other comprehensive loss at beginning of period | (7,961) | (7,921) | |||
Current period other comprehensive income before reclassifications | 0 | 0 | |||
Amounts reclassified into earnings | 319 | [3] | 313 | [4] | |
Accumulated other comprehensive loss at end of period | $ (7,642) | $ (7,608) | |||
[1] | We refer you to Note 8- "Fair Value Measurements and Derivatives" in these notes to consolidated financial statements for the affected line items in the consolidated statements of operations. | ||||
[2] | Includes $55.0 million of gain expected to be reclassified into earnings in the next 12 months. | ||||
[3] | Amortization of prior-service cost and actuarial loss reclassified to other income (expense), net. | ||||
[4] | Amortization of prior-service cost and actuarial loss reclassified to payroll and related expense. |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Parentheticals) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Equity [Abstract] | |
Amount expected to be reclassified into earnings | $ 55 |
Property and Equipment, net (De
Property and Equipment, net (Detail Textuals) $ in Billions | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Property, Plant and Equipment [Abstract] | |
Property plant and equipment net increase due to ship improvement projects and ships under construction | $ 1 |
Long-Term Debt (Detail Textuals
Long-Term Debt (Detail Textuals) - USD ($) $ in Thousands | Apr. 04, 2018 | Apr. 19, 2018 | Sep. 30, 2018 |
Debt Instrument [Line Items] | |||
Debt premium amount | $ 5,154 | ||
Norwegian Bliss | |||
Debt Instrument [Line Items] | |||
Contract price percentage | 80.00% | ||
Term loan amount | $ 850,000 | ||
Interest rate | 3.92% | ||
Maturity date | Apr. 19, 2030 | ||
Senior Notes due 2021 (the "Notes") | |||
Debt Instrument [Line Items] | |||
Term loan amount | $ 700,000 | ||
Interest rate | 4.75% | ||
Redemption amount | $ 135,000 | ||
Percentage of principal amount of redeemed | 100.00% | ||
Debt premium amount | $ 5,100 | ||
Debt accrued interest | 1,900 | ||
Write-off deferred financing fees | 1,200 | ||
Outstanding amount-after partial redemption | $ 565,000 |
Related Party Disclosures (Deta
Related Party Disclosures (Details) - shares | Sep. 30, 2018 | Dec. 31, 2017 |
Related Party Transaction [Line Items] | ||
Number of Shares | 31,164,004 | 31,164,004 |
Apollo Holders | ||
Related Party Transaction [Line Items] | ||
Number of Shares | 15,728,782 | |
Percentage Ownership | 7.10% | |
Genting HK | ||
Related Party Transaction [Line Items] | ||
Number of Shares | 3,148,307 | |
Percentage Ownership | 1.40% |
Related Party Disclosures (De_2
Related Party Disclosures (Detail Textuals) $ in Millions | Sep. 30, 2018USD ($)shares |
Related Party Transactions [Abstract] | |
Number of ordinary shares repurchased | shares | 4,722,312 |
Value of shares to be issued under repurchase program | $ | $ 263.5 |
Fair Value Measurements and D_3
Fair Value Measurements and Derivatives - Derivatives measured at fair value and discloses balance sheet location (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | $ 123,555 | $ 176,455 |
Derivative liabilities, fair value | 9,430 | 6,516 |
Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 128,302 | 177,031 |
Derivative liabilities, fair value | 12,687 | 13,121 |
Fuel contracts | Designated as Hedging Instrument | Prepaid expenses and other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 52,471 | 19,220 |
Derivative liabilities, fair value | 0 | 2,406 |
Fuel contracts | Designated as Hedging Instrument | Other long-term assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 32,357 | 19,854 |
Derivative liabilities, fair value | 281 | 3,469 |
Fuel contracts | Designated as Hedging Instrument | Accrued expenses and other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 0 | 0 |
Derivative liabilities, fair value | 0 | 3,348 |
Fuel contracts | Designated as Hedging Instrument | Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 0 | 576 |
Derivative liabilities, fair value | 0 | 2,148 |
Foreign currency contracts | Designated as Hedging Instrument | Prepaid expenses and other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 2,229 | 52,300 |
Derivative liabilities, fair value | 0 | 730 |
Foreign currency contracts | Designated as Hedging Instrument | Other long-term assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 33,337 | 85,081 |
Derivative liabilities, fair value | 2,976 | 0 |
Foreign currency contracts | Designated as Hedging Instrument | Accrued expenses and other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 0 | 0 |
Derivative liabilities, fair value | 118 | 0 |
Foreign currency contracts | Designated as Hedging Instrument | Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 4,747 | 0 |
Derivative liabilities, fair value | 9,312 | 0 |
Interest rate contracts | Designated as Hedging Instrument | Prepaid expenses and other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 1,984 | 0 |
Derivative liabilities, fair value | 0 | 0 |
Interest rate contracts | Designated as Hedging Instrument | Other long-term assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 1,177 | 0 |
Derivative liabilities, fair value | 0 | 0 |
Interest rate contracts | Designated as Hedging Instrument | Accrued expenses and other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 0 | 0 |
Derivative liabilities, fair value | $ 0 | $ 1,020 |
Fair Value Measurements and D_4
Fair Value Measurements and Derivatives - Amounts Recognized Within Assets and Liabilities Based on Right of Offset (Details 1) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value Disclosures [Abstract] | ||
Gross Amounts, Assets | $ 123,555 | $ 176,455 |
Gross Amounts Offset, Assets | (3,257) | (6,605) |
Total Net Amounts, Assets | 120,298 | 169,850 |
Gross Amounts Not Offset, Assets | (34,549) | (127,924) |
Net Amounts, Assets | 85,749 | 41,926 |
Gross Amounts, Liabilities | 9,430 | 6,516 |
Gross Amounts Offset, Liabilities | (4,747) | (576) |
Total Net Amounts, Liabilities | 4,683 | 5,940 |
Gross Amount Not Offset, Liabilities | (3,716) | (1,020) |
Net Amounts, Liabilities | $ 967 | $ 4,920 |
Fair Value Measurements and D_5
Fair Value Measurements and Derivatives - Effects of Derivatives Designated as Cash flow Hedges (Details 2) - Cash Flow Hedging - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in other comprehensive income | $ 15,365 | $ 97,276 | $ 48,047 | $ 221,512 |
Amount reclassified from accumulated other comprehensive income (loss) into fuel expense | 10,706 | (11,644) | 19,214 | (31,593) |
Fuel swaps | Fuel | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in other comprehensive income | 24,439 | 30,452 | 88,935 | (635) |
Amount reclassified from accumulated other comprehensive income (loss) into fuel expense | 11,595 | (9,796) | 23,024 | (26,383) |
Foreign currency contracts | Depreciation and amortization expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in other comprehensive income | (10,062) | 66,849 | (43,951) | 221,913 |
Amount reclassified from accumulated other comprehensive income (loss) into fuel expense | (703) | (1,157) | (2,761) | (2,909) |
Interest rate swaps | Interest expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in other comprehensive income | 988 | (25) | 3,063 | 234 |
Amount reclassified from accumulated other comprehensive income (loss) into fuel expense | $ (186) | $ (691) | $ (1,049) | $ (2,301) |
Fair Value Measurements and D_6
Fair Value Measurements and Derivatives (Effects of cash flow hedge accounting on accumulated other comprehensive income (loss) (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Derivatives Fair Value [Line Items] | ||||
Fuel | $ 99,643 | $ 91,231 | $ 288,286 | $ 266,780 |
Depreciation and Amortization | 143,700 | 134,532 | 415,648 | 376,878 |
Interest expense, net | 69,540 | 66,339 | 202,226 | 183,497 |
Cash Flow Hedging | ||||
Derivatives Fair Value [Line Items] | ||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income (loss) into income | 10,706 | (11,644) | 19,214 | (31,593) |
Fuel | 99,643 | 91,231 | 288,286 | 266,780 |
Depreciation and Amortization | 143,700 | 134,532 | 415,648 | 376,878 |
Interest expense, net | 69,540 | 66,339 | 202,226 | 183,497 |
Cash Flow Hedging | Fuel contracts | Fuel | ||||
Derivatives Fair Value [Line Items] | ||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income (loss) into income | 11,595 | (9,796) | 23,024 | (26,383) |
Cash Flow Hedging | Foreign currency contracts | Depreciation and amortization expense | ||||
Derivatives Fair Value [Line Items] | ||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income (loss) into income | (703) | (1,157) | (2,761) | (2,909) |
Cash Flow Hedging | Interest rate contracts | Interest expense, net | ||||
Derivatives Fair Value [Line Items] | ||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income (loss) into income | $ (186) | $ (691) | $ (1,049) | $ (2,301) |
Fair Value Measurements and D_7
Fair Value Measurements and Derivatives (Detail Textuals) $ in Millions, € in Billions | 9 Months Ended | ||
Sep. 30, 2018USD ($)Metric_Ton | Sep. 30, 2018EUR (€)Metric_Ton | Dec. 31, 2017USD ($) | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value of long-term debt | $ 6,693.9 | $ 6,448.6 | |
Fair value of long-term debt in excess of carrying value | $ 13.9 | $ 23.5 | |
Fuel swaps | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative maturing date | Dec. 31, 2020 | ||
Projected fuel purchases | Metric_Ton | 0.9 | 0.9 | |
Foreign currency forward contracts | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notional amount of derivatives | $ 2,300 | € 2 | |
Interest rate swaps | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notional amount of derivatives | $ 1,000 |
Employee Benefits and Compens_3
Employee Benefits and Compensation Plans - Summary of Option activity (Details) - Norwegian Cruise Line Holdings Ltd. - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | ||
Options Outstanding, Weighted- Average Contractual Term | 6 years 5 months 16 days | 6 years 11 months 27 days |
Options Outstanding, Aggregate Intrinsic Value | $ 47,269 | $ 50,021 |
Time Based Awards | ||
Number of Share Option Awards | ||
Outstanding as of January 1, 2018 | 6,580,898 | |
Exercised | (625,611) | |
Forfeited and cancelled | (192,333) | |
Outstanding as on September 30, 2018 | 5,762,954 | |
Weighted-Average Exercise Price | ||
Outstanding as of January 1, 2018 | $ 49.18 | |
Exercised | 34.44 | |
Forfeited and cancelled | 54.7 | |
Outstanding as of September 30, 2018 | $ 50.6 | |
Performance-Based Awards | ||
Number of Share Option Awards | ||
Outstanding as of January 1, 2018 | 373,969 | |
Performance-based awards | 208,335 | |
Exercised | (109,285) | |
Forfeited and cancelled | (52,084) | |
Outstanding as on September 30, 2018 | 420,935 | |
Weighted-Average Exercise Price | ||
Outstanding as of January 1, 2018 | $ 31.39 | |
Granted | 59.43 | |
Exercised | 19 | |
Forfeited and cancelled | 59.43 | |
Outstanding as of September 30, 2018 | $ 45.01 | |
Market-Based Awards | ||
Number of Share Option Awards | ||
Outstanding as of January 1, 2018 | 208,333 | |
Outstanding as on September 30, 2018 | 208,333 | |
Weighted-Average Exercise Price | ||
Outstanding as of January 1, 2018 | $ 59.43 | |
Outstanding as of September 30, 2018 | $ 59.43 |
Employee Benefits and Compens_4
Employee Benefits and Compensation Plans - Summary of Restricted Share Awards (Details 1) - Time-Based Awards - Restricted Stock - Norwegian Cruise Line Holdings Ltd. | 9 Months Ended |
Sep. 30, 2018$ / sharesshares | |
Number of Restricted Share | |
Non-vested as of January 1, 2018 | shares | 858 |
Vested | shares | (429) |
Non-vested and expected to vest as of September 30, 2018 | shares | 429 |
Weighted-Average Grant-Date Fair Value | |
Non-vested as of January 1, 2018 | $ / shares | $ 58.33 |
Vested | $ / shares | 58.25 |
Non-vested and expected to vest as of September 30, 2018 | $ / shares | $ 58.41 |
Employee Benefits and Compens_5
Employee Benefits and Compensation Plans - Summary of Restricted Share Unit (Details 2) | 9 Months Ended |
Sep. 30, 2018$ / sharesshares | |
Performance-Based Awards | |
Number of Restricted Share | |
Granted | 300,000 |
Norwegian Cruise Line Holdings Ltd. | Restricted Share Unit | Time-Based Awards | |
Number of Restricted Share | |
Non-vested as of January 1, 2018 | 2,555,477 |
Granted | 1,613,077 |
Vested | (1,032,760) |
Forfeited or expired | (142,227) |
Non-vested and expected to vest as of September 30, 2018 | 2,993,567 |
Weighted-Average Grant-Date Fair Value | |
Non-vested as of January 1, 2018 | $ / shares | $ 50.86 |
Granted | $ / shares | 56.73 |
Vested | $ / shares | 50.66 |
Forfeited or expired | $ / shares | 53.31 |
Non-vested and expected to vest as of September 30, 2018 | $ / shares | $ 53.98 |
Norwegian Cruise Line Holdings Ltd. | Restricted Share Unit | Performance-Based Awards | |
Number of Restricted Share | |
Granted | 843,998 |
Forfeited or expired | (18,384) |
Non-vested and expected to vest as of September 30, 2018 | 825,614 |
Weighted-Average Grant-Date Fair Value | |
Granted | $ / shares | $ 56.58 |
Forfeited or expired | $ / shares | 56.43 |
Non-vested and expected to vest as of September 30, 2018 | $ / shares | $ 56.58 |
Norwegian Cruise Line Holdings Ltd. | Restricted Share Unit | Market-Based Awards | |
Number of Restricted Share | |
Non-vested as of January 1, 2018 | 50,000 |
Non-vested and expected to vest as of September 30, 2018 | 50,000 |
Weighted-Average Grant-Date Fair Value | |
Non-vested as of January 1, 2018 | $ / shares | $ 59.43 |
Non-vested and expected to vest as of September 30, 2018 | $ / shares | $ 59.43 |
Employee Benefits and Compens_6
Employee Benefits and Compensation Plans (Detail Textuals) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 29,000 | $ 21,500 | $ 88,797 | $ 63,664 |
Time-Based Awards | Awarded on March 1, 2018 | Employee | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted share unit awards granted | 1,600,000 | |||
Vested period of stock-based awards | 3 years | |||
Performance-Based Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted share unit awards granted | 300,000 | |||
Performance-Based Awards | Norwegian Cruise Line Holdings Ltd. | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance-based awards | 208,335 | |||
Performance-Based Awards | Awarded on March 1, 2018 | Members of management team | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted share unit awards granted | 500,000 | |||
Marketing, general and administrative expense | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 24,900 | 18,600 | $ 77,000 | 57,100 |
Payroll and related expense | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 4,100 | $ 2,900 | $ 11,800 | $ 6,600 |
Commitments and Contingencies (
Commitments and Contingencies (Detail Textuals) - 9 months ended Sep. 30, 2018 € in Billions, $ in Billions | USD ($)CruiseShipBerthAdditionalships | EUR (€)CruiseShipBerth |
Commitments and Contingencies Disclosure [Line Items] | ||
Number of cruises ships | 26 | 26 |
Capacity of ship, berths | Berth | 54,400 | 54,400 |
Project Leonardo | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Number of cruises ships | 2 | 2 |
Ships launching period from 2022 through 2027 | Project Leonardo | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Capacity of ship, tons | 140,000 | 140,000 |
Capacity of ship, berths | Berth | 3,300 | 3,300 |
Ships launching period through 2025 | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Number of additional ships | Additionalships | 6 | |
Ship Construction Contracts | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Number of cruises ships | 8 | 8 |
Aggregate contract price of new ships based on the euro/U.S. dollar exchange rate | $ 8.4 | € 7.1 |
Export credit facility financing as percentage of contract price | 80.00% | 80.00% |
Ship Construction Contracts | Breakaway Plus Class Ships | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Capacity of ship, tons | 168,000 | 168,000 |
Capacity of ship, berths | Berth | 4,000 | 4,000 |
Ship Construction Contracts | Ships launching period in 2026 and 2027 | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Number of cruises ships | 2 | 2 |
Ship Construction Contracts | Ship order delivery in winter 2020 | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Capacity of ship, tons | 55,000 | 55,000 |
Capacity of ship, berths | Berth | 750 | 750 |
Other Income (Expense), Net (De
Other Income (Expense), Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Other Income and Expenses [Abstract] | ||||
Other income (expense), net | $ 98 | $ (3,262) | $ 11,354 | $ (11,686) |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Detail Textuals) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018USD ($)CruiseShip | Sep. 30, 2017USD ($) | |
Supplemental Cash Flow Information [Line Items] | ||
Number of cruises ships | CruiseShip | 26 | |
Net foreign currency adjustments | $ (4,494) | |
Project Leonardo | ||
Supplemental Cash Flow Information [Line Items] | ||
Non-cash investing activity in connection with property and equipment | $ 17,800 | $ 15,200 |
Non-cash investing activities in connection with capital leases | $ 13,300 | |
Number of cruises ships | CruiseShip | 2 | |
Net foreign currency adjustments | $ (4,500) |