Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 31, 2021 | |
Document And Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 333-128780 | |
Entity Registrant Name | NCL CORPORATION LTD. | |
Entity Incorporation, State or Country Code | D0 | |
Entity Tax Identification Number | 20-0470163 | |
Entity Address, Address Line One | 7665 Corporate Center Drive | |
Entity Address, City or Town | Miami | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 33126 | |
City Area Code | 305 | |
Local Phone Number | 436-4000 | |
Entity Current Reporting Status | No | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock Shares Outstanding | 31,164,004 | |
Entity Central Index Key | 0001318742 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue | ||||
Total revenue | $ 4,368 | $ 16,929 | $ 7,468 | $ 1,263,811 |
Cruise operating expense | ||||
Payroll and related | 86,647 | 128,744 | 168,785 | 375,891 |
Fuel | 54,090 | 48,992 | 96,693 | 174,016 |
Total cruise operating expense | 249,727 | 301,652 | 450,582 | 1,295,912 |
Other operating expense | ||||
Marketing, general and administrative | 184,901 | 130,562 | 387,967 | 400,469 |
Depreciation and amortization | 174,262 | 179,252 | 344,578 | 377,449 |
Impairment loss | 1,607,797 | |||
Total other operating expense | 359,163 | 309,814 | 732,545 | 2,385,715 |
Operating loss | (604,522) | (594,537) | (1,175,659) | (2,417,816) |
Non-operating income (expense) | ||||
Interest expense, net | (179,448) | (120,585) | (639,780) | (189,492) |
Other income (expense), net | (82,627) | (242,230) | (371,892) | (236,407) |
Total non-operating income (expense) | (262,075) | (362,815) | (1,011,672) | (425,899) |
Net loss before income taxes | (866,597) | (957,352) | (2,187,331) | (2,843,715) |
Income tax benefit (expense) | (927) | 6,287 | (2,655) | 10,384 |
Net loss | (867,524) | (951,065) | (2,189,986) | (2,833,331) |
Commissions transportation and other | ||||
Cruise operating expense | ||||
Total cruise operating expense | 6,564 | 34,601 | 15,597 | 366,969 |
Passenger ticket | ||||
Revenue | ||||
Total revenue | 1,584 | 13,835 | 1,750 | 854,626 |
Onboard and other | ||||
Revenue | ||||
Total revenue | 2,784 | 3,094 | 5,718 | 409,185 |
Cruise operating expense | ||||
Total cruise operating expense | 1,276 | 3,188 | 2,535 | 78,161 |
Food | ||||
Cruise operating expense | ||||
Total cruise operating expense | 4,334 | 6,997 | 10,642 | 56,213 |
Other | ||||
Cruise operating expense | ||||
Total cruise operating expense | $ 96,816 | $ 79,130 | $ 156,330 | $ 244,662 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net loss | $ (867,524) | $ (951,065) | $ (2,189,986) | $ (2,833,331) |
Other comprehensive income (loss): | ||||
Shipboard Retirement Plan | 99 | 102 | 197 | 204 |
Cash flow hedges: | ||||
Net unrealized (gain) loss | 44,674 | 54,478 | (28,363) | (251,382) |
Amount realized and reclassified into earnings | 13,542 | 28,782 | 35,380 | 50,781 |
Total other comprehensive income (loss) | 58,315 | 83,362 | 7,214 | (200,397) |
Total comprehensive loss | $ (809,209) | $ (867,703) | $ (2,182,772) | $ (3,033,728) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 2,749,233 | $ 3,299,340 |
Accounts receivable, net | 422,598 | 20,578 |
Inventories | 92,041 | 82,381 |
Prepaid expenses and other assets | 194,124 | 147,556 |
Total current assets | 3,457,996 | 3,549,855 |
Property and equipment, net | 13,431,884 | 13,411,226 |
Goodwill | 98,134 | 98,134 |
Trade names | 500,525 | 500,525 |
Other long-term assets | 1,030,586 | 831,888 |
Total assets | 18,519,125 | 18,391,628 |
Current liabilities: | ||
Current portion of long-term debt | 361,233 | 124,885 |
Accounts payable | 110,628 | 83,136 |
Accrued expenses and other liabilities | 631,634 | 596,717 |
Due to NCLH | 39,114 | 37,790 |
Advance ticket sales | 1,076,826 | 1,109,826 |
Total current liabilities | 2,219,435 | 1,952,354 |
Long-term debt | 10,645,941 | 10,128,754 |
Exchangeable notes | 2,374,684 | 2,691,720 |
Other long-term liabilities | 699,544 | 447,492 |
Total liabilities | 15,939,604 | 15,220,320 |
Commitments and contingencies (Note 9) | ||
Shareholders' equity: | ||
Preference shares (Series A-1: $1,000 par value; 2,000,000 shares authorized; 0 shares issued and outstanding at June 30, 2021 and December 31, 2020; Series A-2: $1,000 par value; 2,000,000 shares authorized; 0 shares issued and outstanding at June 30, 2021 and December 31, 2020; and Series A-3: $1,000 par value; 1,000,000 shares authorized; 0 shares issued and outstanding at June 30, 2021 and December 31, 2020) | ||
Ordinary shares, ($0.0012 par value; 40,000,000 shares authorized; 31,164,004 shares issued and outstanding at June 30, 2021 and December 31, 2020) | 37 | 37 |
Additional paid-in capital | 7,312,710 | 5,721,725 |
Accumulated other comprehensive income (loss) | (234,616) | (241,830) |
Retained earnings (deficit) | (4,498,610) | (2,308,624) |
Total shareholders' equity | 2,579,521 | 3,171,308 |
Total liabilities and shareholders' equity | $ 18,519,125 | $ 18,391,628 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
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 |
Series A-1 | ||
Preferred shares, par value (per share) | $ 1,000 | $ 1,000 |
Preferred shares, authorized | 2,000,000 | 2,000,000 |
Preferred shares, issued | 0 | 0 |
Preferred shares, outstanding | 0 | 0 |
Series A-2 | ||
Preferred shares, par value (per share) | $ 1,000 | $ 1,000 |
Preferred shares, authorized | 2,000,000 | 2,000,000 |
Preferred shares, issued | 0 | 0 |
Preferred shares, outstanding | 0 | 0 |
Series A-3 | ||
Preferred shares, par value (per share) | $ 1,000 | $ 1,000 |
Preferred shares, authorized | 1,000,000 | 1,000,000 |
Preferred shares, issued | 0 | 0 |
Preferred shares, outstanding | 0 | 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities | ||
Net loss | $ (2,189,986) | $ (2,833,331) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization expense | 415,000 | 397,608 |
Impairment loss | 1,607,797 | |
Deferred income taxes, net | 12 | (13,099) |
Loss on derivatives | 402,102 | 223,919 |
Loss on extinguishment of debt | 237,065 | 5,014 |
Provision for bad debts and inventory obsolescence | 7,211 | 10,359 |
Gain on involuntary conversion of assets | (1,817) | (1,403) |
Share-based compensation expense | 49,052 | 55,147 |
Net foreign currency adjustments | (3,767) | 160 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (408,120) | (2,108) |
Inventories | (9,956) | 11,996 |
Prepaid expenses and other assets | (242,642) | (111,454) |
Accounts payable | 26,205 | 369,519 |
Accrued expenses and other liabilities | 45,783 | (202,647) |
Advance ticket sales | 191,609 | (844,244) |
Net cash used in operating activities | (1,482,249) | (1,326,767) |
Cash flows from investing activities | ||
Additions to property and equipment, net | (309,481) | (725,477) |
Cash paid on settlement of derivatives | (8,559) | (28,606) |
Other | 2,825 | 2,519 |
Net cash used in investing activities | (315,215) | (751,564) |
Cash flows from financing activities | ||
Repayments of long-term debt | (879,679) | (207,863) |
Proceeds from long-term debt | 1,223,110 | 3,962,655 |
Due to NCLH, net | 1,323 | 185 |
Contribution from NCLH | 1,558,957 | 464,499 |
Net share settlement of restricted share units | (16,658) | (15,318) |
Early redemption premium | (611,164) | |
Deferred financing fees and other | (28,532) | (94,559) |
Net cash provided by financing activities | 1,247,357 | 4,109,599 |
Effect of exchange rates on cash and cash equivalents | (3,933) | |
Net increase (decrease) in cash and cash equivalents | (550,107) | 2,027,335 |
Cash and cash equivalents at beginning of period | 3,299,340 | 231,239 |
Cash and cash equivalents at end of period | $ 2,749,233 | $ 2,258,574 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Ordinary Shares | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings (Deficit)Cumulative Effect, Period of Adoption, Adjustment [Member] | Retained Earnings (Deficit) | Cumulative Effect, Period of Adoption, Adjustment [Member] | Total |
Balance at Dec. 31, 2019 | $ 37 | $ 4,061,330 | $ (297,203) | $ 2,697,636 | $ 6,461,800 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Share-based compensation | 55,147 | 55,147 | |||||
Net share settlement of restricted share units | (15,318) | (15,318) | |||||
Contribution from NCLH | 464,499 | 464,499 | |||||
Accounting Standards Update [Extensible Enumeration] | us-gaap:AccountingStandardsUpdate201613Member | ||||||
Other comprehensive income (loss), net | (200,397) | (200,397) | |||||
Net loss | (2,833,331) | (2,833,331) | |||||
Balance at Jun. 30, 2020 | 37 | 4,565,658 | (497,600) | (133,772) | 3,934,323 | ||
Balance at Mar. 31, 2020 | 37 | 4,101,613 | (580,962) | 817,293 | 4,337,981 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Share-based compensation | 22,389 | 22,389 | |||||
Net share settlement of restricted share units | (343) | (343) | |||||
Contribution from NCLH | 441,999 | 441,999 | |||||
Other comprehensive income (loss), net | 83,362 | 83,362 | |||||
Net loss | (951,065) | (951,065) | |||||
Balance at Jun. 30, 2020 | 37 | 4,565,658 | (497,600) | (133,772) | 3,934,323 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative change in accounting policy | $ 1,923 | $ 1,923 | |||||
Cumulative change in accounting policy | (2,308,624) | ||||||
Balance at Dec. 31, 2020 | 37 | 5,721,725 | (241,830) | (2,308,624) | 3,171,308 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Share-based compensation | 49,052 | 49,052 | |||||
Net share settlement of restricted share units | (16,658) | (16,658) | |||||
Contribution from NCLH | 1,558,957 | 1,558,957 | |||||
Other | (366) | (366) | |||||
Other comprehensive income (loss), net | 7,214 | 7,214 | |||||
Net loss | (2,189,986) | (2,189,986) | |||||
Balance at Jun. 30, 2021 | 37 | 7,312,710 | (234,616) | (4,498,610) | 2,579,521 | ||
Balance at Mar. 31, 2021 | 37 | 7,291,240 | (292,931) | (3,631,086) | 3,367,260 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Share-based compensation | 22,451 | 22,451 | |||||
Net share settlement of restricted share units | (615) | (615) | |||||
Other | (366) | (366) | |||||
Other comprehensive income (loss), net | 58,315 | 58,315 | |||||
Net loss | (867,524) | (867,524) | |||||
Balance at Jun. 30, 2021 | $ 37 | $ 7,312,710 | $ (234,616) | $ (4,498,610) | 2,579,521 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative change in accounting policy | $ (4,498,610) |
Description of Business and Org
Description of Business and Organization | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [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 June 30, 2021, we had 28 ships with approximately 59,150 Berths and had orders for nine additional ships to be delivered through 2027. Due to the novel coronavirus (“COVID-19”), we temporarily suspended all global cruise voyages from March 2020 through June 2021 and began resuming cruise voyages in July 2021 on a limited basis. We refer you to Note 2 – “Summary of Significant Accounting Policies” for further information. We have one Explorer Class Ship on order for delivery in 2023. We have two Allura Class Ships on order for delivery in 2023 and 2025. 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 83,000, which includes additional Berths we plan to add to our Project Leonardo ships, subject to certain conditions. The impacts of COVID-19 on the shipyards where our ships are under construction (or will be constructed) have resulted in some delays in expected ship deliveries, and the impacts of COVID-19 could result in additional delays in ship deliveries in the future, which may be prolonged. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Liquidity and Management’s Plan Due to the impact of COVID-19, ongoing travel restrictions and limited access to ports around the world, in March 2020, the Company implemented a voluntary suspension of all cruise voyages across its three brands. As of June 30, 2021, none of our ships were operating with guests on board; however, all of our brands have announced resumption of cruise voyages by September 30, 2021 as part of our phased return to service and two ships have currently commenced voyages. Significant events affecting travel, including COVID-19, typically have an impact on demand for cruise vacations, with the full extent of the impact generally determined by the length of time the event influences travel decisions. We believe the ongoing effects of COVID-19 on our operations and global bookings have had, and will continue to have, a significant impact on our financial results and liquidity, and such negative impact may continue well beyond the containment of the pandemic. In January 2021, we amended our Senior Secured Credit Facility to further defer certain amortization payments due prior to June 30, 2022 and to waive certain financial and other covenants through December 31, 2022. In February 2021, we amended certain of our export-credit backed facilities to further defer amortization payments through March 31, 2022, and we amended all of our export-credit backed facilities to suspend certain financial covenants through December 31, 2022. In connection with such amendments of our Senior Secured Credit Facility and our export-credit backed facilities, our minimum liquidity requirement was increased to $200 million and such requirement applies through December 31, 2022. In March 2021, the Company received additional financing through various debt financings and an equity offering, collectively totaling approximately $2.7 billion in gross proceeds. From the proceeds, approximately $1.5 billion was used to extinguish debt. Refer to Note 6 – “Long-Term Debt” for further details of the above transactions. In the second quarter of 2021, we announced a phased relaunch of certain cruise voyages beginning in July 2021 with our ships initially operating at reduced occupancy levels. The Company has announced its phased relaunch plans for all 28 ships across its three brands which began with Norwegian Jade on July 25, 2021 and continues through April 1, 2022. The first cruise to commence in the U.S. was on August 7, 2021 with Norwegian Encore sailing to Alaska from Seattle. The Company expects to have approximately 40% of capacity operating by September 30, 2021 and approximately 75% by December 31, 2021 with the full fleet expected to be back in operation by April 1, 2022. The timing for bringing our ships back to service and the percentage of our fleet in service will depend on a number of factors including, but not limited to, the duration and extent of the COVID-19 pandemic, further resurgences and new more contagious and/or vaccine-resistant variants of COVID-19, the availability, distribution, rate of public acceptance and efficacy of vaccines and therapeutics for COVID-19, our ability to comply with governmental regulations, port availability, travel restrictions, bans and advisories, and our ability to re-staff our ships and implement new health and safety protocols. The estimation of our future cash flow projections includes numerous assumptions that are subject to various risks and uncertainties. Upon the relaunch of cruise voyages, our principal assumptions for future cash flow projections include: ● Expected gradual phased relaunch at reduced occupancy levels, increasing over time until we reach historical occupancy levels; ● Forecasted cash collections primarily upon completion of future voyages and the payment of cash refunds for any further cancellations, in accordance with the terms of our credit card processing agreements (see Note 9 - “Commitments and Contingencies”); and ● Expected incremental expenses for resumption of cruise voyages, including the maintenance of and compliance with additional health and safety protocols. We cannot make assurances that our assumptions used to estimate our liquidity requirements will not change due to the unique and unpredictable nature of the pandemic, including its magnitude and duration. Accordingly, the full effect of the COVID-19 pandemic on our financial performance and financial condition cannot be quantified at this time. We have made reasonable estimates and judgments of the impact of COVID-19 within our financial statements and there may be material changes to those estimates in future periods. We will report a net loss for the three months ending September 30, 2021 and expect to report a net loss until we are able to resume regular voyages, including for the year ending December 31, 2021. We have taken actions to improve our liquidity, including completing various capital market transactions and making capital expenditure and operating expense reductions, and we expect to continue to pursue other opportunities to improve our liquidity and to refinance our debt to reduce interest expense and extend maturities. Based on these actions and assumptions regarding the impact of COVID-19, and considering our available liquidity including cash and cash equivalents of $2.7 billion as of June 30, 2021, we have concluded that we have sufficient liquidity to satisfy our obligations for at least the next twelve months . 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; however, our cruise voyages were completely suspended from March 2020 until July 2021 due to the COVID-19 pandemic. The interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2020, which are included in our most recent Annual Report on Form 10-K filed with the SEC on February 26, 2021. Foreign Currency The majority of our transactions are settled in U.S. dollars. We remeasure assets and liabilities denominated in foreign currencies at exchange rates in effect at the balance sheet date. Gains or losses resulting from transactions denominated in other currencies are recognized in our consolidated statements of operations within other income (expense), net. We recognized a gain of $0.2 million and a loss of $10.2 million for the three months ended June 30, 2021 and 2020, respectively, and gains of $5.0 million and $9.7 million for the six months ended June 30, 2021 and 2020, respectively, related to transactions denominated in other currencies. Depreciation and Amortization Expense The amortization of deferred financing fees and debt discounts are included in depreciation and amortization expense in the consolidated statements of cash flows; however, for purposes of the consolidated statements of operations they are included in interest expense, net. Accounts Receivable, Net Accounts receivable, net includes $400.7 million due from credit card processors as of June 30, 2021, which is expected to be collected within the next 12 months. Prior to the resumption of cruise operations, these amounts were classified in other long-term assets as a result of the uncertainty surrounding the timing of their collection. Recently Issued Accounting Guidance In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting reference rate expected to be discontinued due to reference rate reform. Adoption of the provisions of ASU 2020-04 are optional and are effective from March 12, 2020 through December 31, 2022. As of June 30, 2021, we have not adopted any expedients and exceptions under ASU 2020-04. We will continue to evaluate the impact of ASU 2020-04 on our consolidated financial statements. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | 3. Revenue Recognition Disaggregation of Revenue Revenue and cash flows are affected by economic factors in various geographical regions. Revenues by destination were as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2020 2020 North America $ 3,366 $ 954,422 Europe 9,701 23,036 Asia-Pacific — 150,921 South America — 76,306 Other 3,862 59,126 Total revenue $ 16,929 $ 1,263,811 Amounts for the three and six months ended June 30, 2021 were excluded as the information was not meaningful. North America includes the U.S., the Caribbean, Canada and Mexico. Europe includes the Baltic region, Canary Islands and Mediterranean. Asia-Pacific includes Australia, New Zealand and Asia. Other includes all other international territories. 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 75-85% of total revenue. No other individual country’s revenues exceed 10% in any given period. Contract Balances Receivables from customers are included within accounts receivable, net. As of June 30, 2021 and December 31, 2020, our receivables from customers were $0.9 million and $1.0 million, respectively. Beginning in March 2020, our brands launched new cancellation policies to permit our guests to cancel cruises which are not part of the Company’s temporary suspension of voyages up to 15 days prior to departure. These programs are currently in place for cruises booked through specific time periods specified by brand, and for cruises scheduled to embark through October 31, 2021. Certain cruises booked for certain periods, will be permitted a 60-day cancellation window for refunds. Future cruise credits that have been issued are valid for any sailing through December 31, 2022, and we may extend this offer. The future cruise credits are not contracts, and therefore, guests who elected this option are excluded from our contract liability balance; however, the credit for the original amount paid is included in advance ticket sales or other long-term liabilities as applicable. Our contract liabilities are included within advance ticket sales. As of June 30, 2021 and December 31, 2020, our contract liabilities were $50.5 million and $23.1 million, respectively. Of the amounts included within advance ticket sales, the vast majority of deposits held are refundable in accordance with our cancellation policies and it is uncertain to what extent guests may request refunds. Refunds payable to guests are included in accounts payable. For the six months ended June 30, 2021, no revenue recognized was included in the contract liability balance at the beginning of the period. The revenue recognized in the six months ended June 30, 2020 that was included in contract liabilities as of the beginning of the period was $0.9 billion. For cruise vacations that had been cancelled by us due to COVID-19, during the three months ended June 30, 2021 and 2020, approximately $11.2 million and $38.6 million, respectively, and during the six months ended June 30, 2021 and 2020, approximately $26.0 million and $130.6 million, respectively, in costs to obtain these contracts, consisting of protected commissions, including those paid to employees, and credit card fees, were recognized in earnings. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Leases | 4. Leases In April 2020, the FASB issued interpretive guidance relating to the accounting for lease concessions provided as a result of COVID-19. In this guidance, entities can elect not to apply lease modification accounting with respect to such lease concessions and instead, treat the concession as if it was a part of the existing contract. The Company has elected to not evaluate leases under the lease modification accounting framework for concessions that result from effects of the COVID-19 pandemic. In relation to our rights to use port facilities, we have elected the approach consistent with resolving a contingency, which allows us to remeasure the lease liability and recognize the amount of change in the lease liability as an adjustment to the carrying amount of the associated right-of-use asset. As the full amount of the concession will not be determinable until the force majeure period under the related arrangements have ended, periodic remeasurements will be required. During the contingency period, we are recognizing lease expense for these port facilities as incurred. Lease balances were as follows (in thousands): Balance Sheet location June 30, 2021 December 31, 2020 Operating leases Right-of-use assets Other long-term assets $ 202,569 $ 209,037 Current operating lease liabilities Accrued expenses and other liabilities 22,450 17,700 Non-current operating lease liabilities Other long-term liabilities 173,845 185,414 Finance leases Right-of-use assets Property and equipment, net 10,960 11,948 Current finance lease liabilities Current portion of long-term debt 5,267 5,143 Non-current finance lease liabilities Long-term debt 2,718 4,648 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2021 | |
Statement Of Income And Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 5. Accumulated Other Comprehensive Income (Loss) Accumulated other comprehensive income (loss) for the six months ended June 30, 2021 was as follows (in thousands): Six Months Ended June 30, 2021 Change Accumulated Change Related to Other Related to Shipboard Comprehensive Cash Flow Retirement Income (Loss) Hedges Plan Accumulated other comprehensive income (loss) at beginning of period $ (241,830) $ (234,981) $ (6,849) Current period other comprehensive loss before reclassifications (28,363) (28,363) — Amounts reclassified into earnings 35,577 35,380 (1) 197 (2) Accumulated other comprehensive income (loss) at end of period $ (234,616) $ (227,964) (3) $ (6,652) Accumulated other comprehensive income (loss) for the six months ended June 30, 2020 was as follows (in thousands): Six Months Ended June 30, 2020 Change Accumulated Change Related to Other Related to Shipboard Comprehensive Cash Flow Retirement Income (Loss) Hedges Plan Accumulated other comprehensive income (loss) at beginning of period $ (297,203) $ (290,009) $ (7,194) Current period other comprehensive loss before reclassifications (251,382) (251,382) — Amounts reclassified into earnings 50,985 50,781 (1) 204 (2) Accumulated other comprehensive income (loss) at end of period $ (497,600) $ (490,610) $ (6,990) (1) We refer you to Note 7— “Fair Value Measurements and Derivatives” 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 $25.7 million of loss expected to be reclassified into earnings in the next 12 months. |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2021 | |
Long-term Debt, Unclassified [Abstract] | |
Long-Term Debt | 6. Long-Term Debt Credit Facilities In January 2021, NCLC entered into an amendment agreement (the “First Amendment”), which amends the Amended and Restated Credit Agreement, dated as of May 8, 2020 (the “Fifth ARCA” and, as amended by the First Amendment, the “Senior Secured Credit Facility”). The First Amendment provides that, among other things, (a) amortization payments due between the First Amendment effective date and prior to June 30, 2022 (the “First Amendment Deferral Period”) on the Legacy Term Loan A and Term Loan A-1 held by lenders that have consented to such deferral (the “First Amendment Deferring Lenders”) are deferred and such deferred principal amount constitutes a separate tranche of loans (the “Deferred Term Loan A-1”) and (b) the tranche of loans held by certain lenders (the “Fifth ARCA Deferring Lenders”) on which amortization payments due within the first year after effectiveness of the Fifth ARCA were deferred (the “Deferred Term Loan A”) of First Amendment Deferring Lenders were converted into Deferred Term Loan A-1 loans. The class of loans constituting the Term Loan A Facility (other than the Deferred Term Loan A) held by the Fifth ARCA Deferring Lenders (the “Term Loan A-1”) and the class of loans constituting the portion of the Term Loan A Facility that is held by lenders other than the Fifth ARCA Deferring Lenders (the “Legacy Term Loan A”) that were held by the First Amendment Deferring Lenders (other than amounts converted into the Deferred Term Loan A-1) constitute a separate tranche of loans (the “Term Loan A-2”), with the same terms as the Legacy Term Loan A and Term Loan A-1 under the Fifth ARCA, except that amortization payments on the Term Loan A-2 shall be deferred during the First Amendment Deferral Period and thereafter such Term Loan A-2 will amortize in an aggregate principal amount equal to approximately 5.88 % per annum and the interest rate for Term Loan A-2 shall be modified as described below. The Deferred Term Loan A-1 will accrue interest (x) in the case of Eurocurrency loans, at a per annum rate based on LIBOR plus a margin of 2.50% or (y) in the case of base rate loans, at a per annum rate based on the base rate plus a margin of 1.50%. After the end of the First Amendment Deferral Period, the Deferred Term Loan A-1 will amortize in an aggregate principal amount equal to 25% per annum of the Deferred Term Loan A-1 outstanding immediately after the consummation of the First Amendment, in quarterly installments, and in the case of such payment due on the maturity date, an amount equal to the then unpaid principal amount of the Deferred Term Loan A-1 outstanding. The Legacy Term Loan A, Term Loan A-1 and Deferred Term Loan A that were held by lenders other than the First Amendment Deferring Lenders constitute separate classes of loans and were unchanged. The First Amendment resulted in deferred amortization payments aggregating approximately $70 million prior to June 30, 2022. The First Amendment provides that, (a) from the First Amendment effective date to and including December 31, 2022 (the “Covenant Relief Period”) the testing of the loan to value, debt to capitalization and EBITDA to debt service covenants under the Senior Secured Credit Facility will be suspended and the free liquidity test will be replaced by a covenant to maintain at least $200 million in free liquidity, certified on a monthly basis. During the Covenant Relief Period the interest rate for Term Loan A-2 and revolving loans held by Lenders that consented to the First Amendment will be LIBOR plus 2.00% (or base rate plus 1.00%) with decreases subject to a leverage-based pricing grid. The First Amendment also makes certain other changes to the Senior Secured Credit Facility, including tightening certain of the baskets applicable to our ability to make certain asset dispositions, investments and restricted payments. Additionally, in February 2021, NCLC amended all of its export-credit backed facilities to defer amortization payments aggregating approximately $680 million through March 31, 2022 and/or make certain changes in respect of covenants and undertakings contained therein. The facilities that finance Norwegian Breakaway, Norwegian Getaway, Norwegian Escape, Norwegian Joy, Norwegian Bliss, Norwegian Encore, Seven Seas Explorer, Seven Seas Splendor, Riviera and Marina were amended to provide that, among other things, (a) amortization payments due from April 1, 2021 to March 31, 2022 (the “Second Deferral Period”) on the loans will be deferred and (b) the principal amounts so deferred will constitute separate tranches of loans under the facilities. The separate tranches of loans will accrue interest at a floating rate per annum based on six-month LIBOR plus a margin as follows: Margin €529.8 million Breakaway one loan (Norwegian Breakaway) 1.10 % €529.8 million Breakaway two loan (Norwegian Getaway) 1.40 % €590.5 million Breakaway three loan (Norwegian Escape) 1.50 % €729.9 million Breakaway four loan (Norwegian Joy) 1.50 % €710.8 million Seahawk 1 term loan (Norwegian Bliss) 1.20 % €748.7 million Seahawk 2 term loan (Norwegian Encore) 1.20 % Explorer newbuild loan 3.00 % Splendor newbuild loan 1.95 % Marina newbuild loan 0.75 % Riviera newbuild loan 0.75 % After the end of the Second Deferral Period, the deferred loans will amortize in an aggregate principal amount equal to 20% per annum of the deferred loans, in semiannual installments. In addition, all of NCLC’s export-credit backed facilities were amended to provide that, from the effective date of the amendments to and including December 31, 2022, certain of the financial covenants under such facilities will be suspended and the free liquidity test will be replaced by a covenant to maintain at least $200 million in free liquidity. The amendments also made certain other changes to the facilities, including imposing further restrictions on NCLC’s ability to incur debt, create security, issue equity and make dividends and other distributions. In April 2021, an agreement was executed to defer certain newbuild related debt amortization to July 2022. The aggregate amount of debt amortization that was deferred was €31.2 million, or $37.0 million based on the euro/U.S. dollar exchange rate as of June 30, 2021. The interest rate on the newbuild related debt was increased to 4.5 % per annum. The amendments of the agreements described above resulted in aggregate modification expenses of $52.1 million for the six months ended June 30, 2021, which is recognized in interest expense, net. In May 2021, NCLC entered into a €28.8 million loan facility for newbuild related payments. The facility bears interest at a rate of 4.5% per annum. As of June 30, 2021, €9.6 million, or $11.4 million based on the euro/U.S. dollar exchange rate as of June 30, 2021, was drawn under this facility, which matures on July 1, 2022. Unsecured Notes In December 2020, NCLC conducted a private offering of $850.0 million aggregate principal amount of 5.875% senior unsecured notes due March 15, 2026 (the “2026 Senior Unsecured Notes”). In March 2021, NCLC completed an add-on offering of $575.0 million aggregate principal amount of additional 2026 Senior Unsecured Notes. The 2026 Senior Unsecured Notes pay interest at 5.875% per annum, semiannually on March 15 and September 15 of each year, to holders of record at the close of business on the immediately preceding March 1 and September 1, respectively. NCLC may redeem the 2026 Senior Unsecured Notes, in whole or part, at any time prior to December 15, 2025, at a price equal to 100% of the principal amount of the notes redeemed plus accrued and unpaid interest to, but excluding, the redemption date and a “make-whole premium.” NCLC may redeem the 2026 Senior Unsecured Notes, in whole or in part, on or after December 15, 2025, at a price equal to 100% of the principal amount of the notes plus accrued and unpaid interest to, but excluding, the redemption date. At any time and from time to time prior to December 15, 2022, NCLC may choose to redeem up to 40% of the aggregate principal amount of the 2026 Senior Unsecured Notes with the net proceeds of certain equity offerings, subject to certain restrictions, at a redemption price equal to 105.875% of the principal amount of the 2026 Senior Unsecured Notes redeemed plus accrued and unpaid interest to, but excluding, the redemption date, so long as at least 60% of the aggregate principal amount of the 2026 Senior Unsecured Notes issued remains outstanding following such redemption. The proceeds from the March 2021 issuance were used to repay the $230.0 million Pride of America Credit Facility and the remaining $222.6 million of the Jewel Credit Facility. The repayment of these debt agreements resulted in losses on extinguishment of debt of $1.1 million for the six months ended June 30, 2021, which is recognized in interest expense, net. In March 2021, NCL Finance, Ltd., an indirect, wholly-owned subsidiary of NCLH and NCLC, additionally conducted a private offering of $525.0 million aggregate principal amount of 6.125% senior unsecured notes due March 15, 2028 (the “2028 Senior Unsecured Notes”). The 2028 Senior Unsecured Notes pay interest at 6.125% per annum, semiannually on March 15 and September 15 of each year, commencing on September 15, 2021, to holders of record at the close of business on the immediately preceding March 1 and September 1, respectively. NCL Finance may redeem the 2028 Senior Unsecured Notes, in whole or part, at any time prior to December 15, 2027, at a price equal to 100% of the principal amount of the notes redeemed plus accrued and unpaid interest to, but excluding, the redemption date and a “make-whole premium.” NCL Finance may redeem the 2028 Senior Unsecured Notes, in whole or in part, on or after December 15, 2027, at a price equal to 100% of the principal amount of the notes plus accrued and unpaid interest to, but excluding, the redemption date. At any time and from time to time prior to March 15, 2024, NCL Finance may choose to redeem up to 40% of the aggregate principal amount of the 2028 Senior Unsecured Notes with the net proceeds of certain equity offerings, subject to certain restrictions, at a redemption price equal to 106.125% of the principal amount of the 2028 Senior Unsecured Notes redeemed plus accrued and unpaid interest to, but excluding, the redemption date, so long as at least 60% of the aggregate principal amount of the 2028 Senior Unsecured Notes issued remains outstanding following such redemption. The indentures governing the 2026 Senior Unsecured Notes and 2028 Senior Unsecured Notes include requirements that, among other things and subject to a number of qualifications and exceptions, restrict the ability of NCLC and its restricted subsidiaries, as applicable, to (i) incur or guarantee additional indebtedness; (ii) pay dividends or distributions on, or redeem or repurchase, equity interests and make other restricted payments; (iii) make investments; (iv) consummate certain asset sales; (v) engage in certain transactions with affiliates; (vi) grant or assume certain liens; and (vii) consolidate, merge or transfer all or substantially all of their assets. Exchangeable Notes In August 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40) Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity NCLC has outstanding $862.5 million aggregate principal amount of 6.00% exchangeable senior notes due May 15, 2024 (the “2024 Exchangeable Notes”). The 2024 Exchangeable Notes are guaranteed by NCLH on a senior basis. Holders may exchange their 2024 Exchangeable Notes at their option into redeemable preference shares of NCLC. Upon exchange, the preference shares will be immediately and automatically exchanged, for each $1,000 principal amount of exchanged 2024 Exchangeable Notes, into a number of NCLH’s ordinary shares based on the exchange rate. The exchange rate will initially be 72.7273 ordinary shares per $1,000 principal amount of 2024 Exchangeable Notes (equivalent to an initial exchange price of approximately $13.75 per ordinary share). The maximum exchange rate is 89.4454 and reflects potential adjustments to the initial exchange rate, which would only be made in the event of certain make-whole fundamental changes or tax redemption events. The exchange rate referred to above is also subject to adjustment for any stock split, stock dividend or similar transaction. The 2024 Exchangeable Notes pay interest at 6.00% per annum, semiannually on May 15 and November 15 of each year, to holders of record at the close of business on the immediately preceding May 1 and November 1, respectively. NCLC also has outstanding $450.0 million aggregate principal amount of 5.375% exchangeable senior notes due August 1, 2025 (the “2025 Exchangeable Notes”). The 2025 Exchangeable Notes are guaranteed by NCLH on a senior basis. Holders may exchange their 2025 Exchangeable Notes at their option into redeemable preference shares of NCLC. Upon exchange, the preference shares will be immediately and automatically exchanged, for each $1,000 principal amount of exchanged 2025 Exchangeable Notes, into a number of NCLH’s ordinary shares based on the exchange rate. The exchange rate will initially be 53.3333 ordinary shares per $1,000 principal amount of 2025 Exchangeable Notes (equivalent to an initial exchange price of approximately $18.75 per ordinary share). The maximum exchange rate is 66.6666 and reflects potential adjustments to the initial exchange rate, which would only be made in the event of certain make-whole fundamental changes or tax redemption events. The exchange rate referred to above is also subject to adjustment for any stock split, stock dividend or similar transaction. The 2025 Exchangeable Notes pay interest at 5.375% per annum, semiannually on February 1 and August 1 of each year, to holders of record at the close of business on the immediately preceding January 15 and July 15, respectively. As of December 31, 2020, NCLC also had outstanding $414.3 million aggregate principal amount of exchangeable senior notes due June 1, 2026 (the “Private Exchangeable Notes”), which amount included interest that had accreted to the principal amount, which were held by an affiliate of L Catterton (the “Private Investor”). The Private Exchangeable Notes accrued interest at a rate of 7.0% per annum for the first year post-issuance (which accreted to the principal amount). Holders were able to exchange their Private Exchangeable Notes at their option into redeemable preference shares of NCLC. Upon exchange, the preference shares would be immediately and automatically exchanged, for each $1,000 principal amount of exchanged Private Exchangeable Notes, into a number of NCLH’s ordinary shares based on the exchange rate. The exchange rate was initially approximately 82.6446 ordinary shares per $1,000 principal amount of Private Exchangeable Notes (equivalent to an initial exchange price of $12.10 per ordinary share). The maximum exchange rate was 90.9090 and reflected potential adjustments to the initial exchange rate, which would only be made in the event of certain make-whole fundamental changes or tax redemption events. In March 2021, NCLH completed an equity offering that resulted in 52,577,947 ordinary shares being issued for gross proceeds of $1.6 billion. Approximately $1.0 billion of the cash proceeds from the offering were used to repurchase the Private Exchangeable Notes and extinguish the debt. The resulting loss on extinguishment was $236.0 million for the six months ended June 30, 2021, which is recognized in interest expense, net. The following is a summary of NCLC’s convertible debt instruments as of June 30, 2021 (in thousands): Unamortized Debt Discount, Principal including Deferred Net Carrying Fair Value Amount Financing Fees Amount Amount Leveling 2024 Exchangeable Notes $ 862,500 $ (303,628) $ 558,872 $ 2,016,560 Level 2 2025 Exchangeable Notes 450,000 (141,639) 308,361 844,295 Level 2 The remaining period over which the unamortized debt discount will be recognized as non-cash interest expense is 2.9 years and 4.1 years for the 2024 Exchangeable Notes and 2025 Exchangeable Notes, respectively. The following is a summary of NCLC’s convertible debt instruments as of December 31, 2020 (in thousands): Unamortized Debt Discount, Principal including Deferred Net Carrying Fair Value Amount Financing Fees Amount Amount Leveling 2024 Exchangeable Notes $ 862,500 $ (338,571) $ 523,929 $ 1,812,975 Level 2 2025 Exchangeable Notes 450,000 (153,299) 296,701 772,412 Level 2 Private Exchangeable Notes 414,311 (399,366) 14,945 1,098,082 Level 2 In addition, we recognize debt conversion options within exchangeable notes. Refer to Note 7— “Fair Value Measurements and Derivatives.” The following provides a summary of the interest expense of NCLC’s convertible debt instruments (in thousands): Three Months Six Months Ended June 30, 2021 Ended June 30, 2021 Coupon interest 18,985 43,125 Amortization of discount and deferred financing fees 24,150 47,763 Total $ 43,135 $ 90,888 Interest expense, including amortization of debt discounts and coupon interest, recognized related to the 2024 Exchangeable Notes and Private Exchangeable Notes was $18.6 million for the three and six months ended June 30, 2020. The effective interest rate is 22.78% and 15.89% for the 2024 Exchangeable Notes and 2025 Exchangeable Notes, respectively. Debt Repayments The following are scheduled principal repayments on our long-term debt including finance lease obligations as of June 30, 2021 for each of the following periods (in thousands): Year Amount Remainder of 2021 $ 18,271 2022 856,689 2023 924,216 2024 5,060,206 2025 1,054,008 Thereafter 4,579,284 Total $ 12,492,674 Debt Covenants We have received certain financial and other debt covenant waivers through December 31, 2022 and added new free liquidity requirements. At June 30, 2021, taking into account such waivers, we were in compliance with all of our debt covenants. If we do not continue to remain in compliance with our covenants, including following the expiration of any current waivers, we would have to seek additional amendments to our covenants. However, no assurances can be made that such amendments would be approved by our lenders. Generally, if an event of default under any debt agreement occurs, then pursuant to cross default and/or cross acceleration clauses, substantially all of our outstanding debt and derivative contract payables could become due, and all debt and derivative contracts could be terminated, which would have a material adverse impact on our operations and liquidity. |
Fair Value Measurements and Der
Fair Value Measurements and Derivatives | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Derivatives | 7. 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. Cash flows from the derivatives are classified in the same category as the cash flows from the underlying hedged transaction. If it is determined that the hedged forecasted transaction is no longer probable of occurring, then the amount recognized in accumulated other comprehensive income (loss) is released to earnings. 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 June 30, 2021, we had fuel swaps, which are used to mitigate the financial impact of volatility of fuel prices pertaining to approximately 366 thousand metric tons of our projected fuel purchases, maturing through December 31, 2023 . On January 1, 2021, our fuel swaps designated as hedges for marine gas oil maturing through December 31, 2021 were dedesignated as cash flow hedges. As of June 30, 2021, we had, in aggregate with previously dedesignated fuel swaps, approximately 206 thousand metric tons which were not designated as cash flow hedges maturing through December 31, 2022. As of June 30, 2021, 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 €1.8 billion, or $2.1 billion based on the euro/U.S. dollar exchange rate as of June 30, 2021. As of June 30, 2021, we had interest rate swaps and collars, which are used to hedge our exposure to interest rate movements and manage our interest expense. The notional amount of our outstanding debt associated with the interest rate swaps and collars was $0.6 billion as of June 30, 2021. As of June 30, 2021, we had conversion options embedded in our exchangeable notes. The notional amounts of our outstanding options as of June 30, 2021 were 62.7 million and 24.0 million NCLH shares for the 2024 Exchangeable Notes and 2025 Exchangeable Notes, respectively. The derivatives measured at fair value and the respective location in the consolidated balance sheets include the following (in thousands): Assets Liabilities June 30, December 31, June 30, December 31, Balance Sheet Location 2021 2020 2021 2020 Derivative Contracts Designated as Hedging Instruments Fuel contracts Prepaid expenses and other assets $ 6,921 $ — $ — $ — Other long-term assets 17,054 — — — Accrued expenses and other liabilities — — — 35,973 Other long-term liabilities — — — 28,947 Foreign currency contracts Prepaid expenses and other assets 1,702 5,779 — — Other long-term assets 25,389 43,250 — — Accrued expenses and other liabilities — — 74,084 14,778 Other long-term liabilities 2,466 6,821 30,563 44,938 Interest rate contracts Accrued expenses and other liabilities — — 2,919 6,776 Other long-term liabilities — — — 452 Total derivatives designated as hedging instruments $ 53,532 $ 55,850 $ 107,566 $ 131,864 Derivative Contracts Not Designated as Hedging Instruments Fuel contracts Prepaid expenses and other assets $ 6,206 $ — $ 1,284 $ — Other long-term assets 2,452 — — — Accrued expenses and other liabilities — 546 — 6,732 Other long-term liabilities — — — 3,534 Debt conversion options Exchangeable notes — — 1,507,451 1,856,145 Total derivatives not designated as hedging instruments $ 8,658 $ 546 $ 1,508,735 $ 1,866,411 Total derivatives $ 62,190 $ 56,396 $ 1,616,301 $ 1,998,275 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 option pricing models 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 models used by the Company are industry standard models for valuing options and are used by the broker/dealer community. The inputs to the option pricing models are the option strike prices, underlying prices, risk-free rates of interest, time to expiration, and both historical and implied volatilities. The fair values of option contracts consider 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 following table discloses the gross and net amounts recognized within assets and liabilities (in thousands): Gross Gross Gross Amounts Total Net Amounts June 30, 2021 Amounts Offset Amounts Not Offset Net Amounts Assets $ 59,724 $ (1,284) $ 58,440 $ (27,091) $ 31,349 Liabilities 1,615,017 (2,466) 1,612,551 (1,602,232) 10,319 Gross Gross Gross Amounts Total Net Amounts December 31, 2020 Amounts Offset Amounts Not Offset Net Amounts Assets $ 49,029 $ — $ 49,029 $ (49,029) $ — Liabilities 1,998,275 (7,367) 1,990,908 (1,913,496) 77,412 The effects of cash flow hedge accounting on accumulated other comprehensive income (loss) were as follows (in thousands): Location of Gain (Loss) Reclassified from Accumulated Amount of Gain (Loss) Reclassified Amount of Gain (Loss) Other Comprehensive from Accumulated Other Recognized in Other Income (Loss) into Comprehensive Income Derivatives Comprehensive Loss Income (Expense) (Loss) into Income (Expense) Three Months Three Months Three Months Three Months Ended Ended Ended Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Fuel contracts $ 25,456 $ 27,769 Fuel $ (8,652) $ (13,878) Fuel contracts — — Other income (expense), net (1,538) (11,964) Foreign currency contracts 19,281 27,694 Depreciation and amortization (1,266) (1,266) Interest rate contracts (63) (985) Interest expense, net (2,086) (1,674) Total gain (loss) recognized in other comprehensive loss $ 44,674 $ 54,478 $ (13,542) $ (28,782) Location of Gain (Loss) Reclassified from Accumulated Amount of Gain (Loss) Reclassified Amount of Gain (Loss) Other Comprehensive from Accumulated Other Recognized in Other Income (Loss) into Comprehensive Income Derivatives Comprehensive Loss Income (Expense) (Loss) into Income (Expense) Six Months Six Months Six Months Six Months Ended Ended Ended Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Fuel contracts $ 49,506 $ (170,708) Fuel $ (16,823) $ (20,095) Fuel contracts — — Other income (expense), net (11,728) (26,284) Foreign currency contracts (78,160) (70,193) Depreciation and amortization (2,533) (2,395) Interest rate contracts 291 (10,481) Interest expense, net (4,296) (2,007) Total gain (loss) recognized in other comprehensive loss $ (28,363) $ (251,382) $ (35,380) $ (50,781) The effects of cash flow hedge accounting on the consolidated statements of operations include the following (in thousands): Three Months Ended June 30, 2021 Three Months Ended June 30, 2020 Depreciation Depreciation and Interest Other Income and Interest Other Income Fuel Amortization Expense, net (Expense), net Fuel Amortization Expense, net (Expense), net Total amounts of income and expense line items presented in the consolidated statements of operations in which the effects of cash flow hedges are recorded $ 54,090 $ 174,262 $ 179,448 $ (82,627) $ 48,992 $ 179,252 $ 120,585 $ (242,230) Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into income (expense) Fuel contracts (8,652) — — — (13,878) — — — Foreign currency contracts — (1,266) — — — (1,266) — — Interest rate contracts — — (2,086) — — — (1,674) — Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into income (expense) as a result that a forecasted transaction is no longer probable of occurring Fuel contracts — — — (1,538) — — — (11,964) Six Months Ended June 30, 2021 Six Months Ended June 30, 2020 Depreciation Depreciation and Interest Other Income and Interest Other Income Fuel Amortization Expense, net (Expense), net Fuel Amortization Expense, net (Expense), net Total amounts of income and expense line items presented in the consolidated statements of operations in which the effects of cash flow hedges are recorded $ 96,693 $ 344,578 $ 639,780 $ (371,892) $ 174,016 $ 377,449 $ 189,492 $ (236,407) Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into income (expense) Fuel contracts (16,823) — — — (20,095) — — — Foreign currency contracts — (2,533) — — — (2,395) — — Interest rate contracts — — (4,296) — — — (2,007) — Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into income (expense) as a result that a forecasted transaction is no longer probable of occurring Fuel contracts — — — (11,728) — — — (26,284) The effects of derivatives not designated as hedging instruments on the consolidated statements of operations include the following (in thousands): Amount of Gain (Loss) Recognized in Income Three Months Ended Six Months Ended June 30, June 30, Location of Gain (Loss) 2021 2020 2021 2020 Derivatives not designated as hedging instruments Fuel contracts Other income (expense), net $ 17,935 $ 3,646 $ 50,107 $ 3,646 Debt conversion options Other income (expense), net (108,127) (215,625) (424,636) (215,625) Long-Term Debt As of June 30, 2021 and December 31, 2020, the fair value of our long-term debt, including the current portion, was $14.2 billion, which was $0.7 billion higher and $1.0 billion higher, respectively, than the carrying values, excluding deferred financing costs. 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 revolving and term loan facilities was calculated based on estimated rates for the same or similar instruments with similar terms and remaining maturities. The fair value of our exchangeable notes considers observable risk-free rates; credit spreads of the same or similar instruments; and share prices, tenors, and historical and implied volatilities which are sourced from observable market data. The inputs are considered to be Level 2 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 or from an increase in share values. 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 | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee Benefits and Compensation Plans | 8. Employee Benefits and Compensation Plans In January 2013, NCLH adopted the 2013 Performance Incentive Plan, which provided for the issuance of up to 15,035,106 of NCLH’s ordinary shares pursuant to awards granted under the plan. In May 2016, the plan was amended and restated (“Restated 2013 Plan”) pursuant to approval from NCLH’s Board of Directors and NCLH’s shareholders. Among other things, under the Restated 2013 Plan, the number of NCLH’s ordinary shares that may be delivered pursuant to all awards granted under the plan was increased by an additional 12,430,000 shares to a new maximum aggregate limit of 27,465,106 shares. In May 2021, the Restated 2013 Plan was further amended and restated to increase the number of NCLH ordinary shares that may be delivered by 4,910,000 shares to 32,375,106 shares. Share Option Awards The following is a summary of option activity under NCLH’s Restated 2013 Plan for the six months ended June 30, 2021: Weighted- Number of Share Option Awards Weighted-Average Exercise Price Average Aggregate Time- Performance- Market- Time- Performance- Market- Contractual Intrinsic Based Based Based Based Based Based Term Value Awards Awards Awards Awards Awards Awards (years) (in thousands) Outstanding as of January 1, 2021 4,525,207 114,583 208,333 $ 51.96 $ 59.43 $ 59.43 4.42 $ — Forfeited and cancelled (26,833) — — 53.62 — — Outstanding as of June 30, 2021 4,498,374 114,583 208,333 51.95 59.43 59.43 3.93 — Restricted Share Unit Awards In June 2021, NCLH granted 3.1 million time-based restricted share unit awards to our employees, which primarily vest in substantially equal installments each March 1 over three years . Additionally, in June 2021, NCLH granted 0.7 million performance-based restricted share units to certain members of our management team, which vest upon the achievement of certain pre-established performance targets established through 2023 and the satisfaction of an additional time-based vesting requirement that generally requires continued employment through March 1, 2024. The following is a summary of NCLH restricted share unit activity for the six months ended June 30, 2021: Number of Weighted- Number of Weighted- Number of Weighted- Time-Based Average Grant Performance- Average Grant Market- Average Grant Awards Date Fair Value Based Awards Date Fair Value Based Awards Date Fair Value Non-vested as of January 1, 2021 6,663,925 $ 30.54 1,565,184 $ 39.42 50,000 $ 59.43 Granted 3,124,241 30.92 736,898 40.89 — — Vested (1,743,479) 47.01 (460,969) 56.73 — — Forfeited or expired (131,969) 26.48 — — — — Non-vested as of June 30, 2021 7,912,718 27.13 1,841,113 35.68 50,000 59.43 The compensation expense recognized for share-based compensation for the periods presented include the following (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Payroll and related expense $ 4,735 $ 5,029 $ 9,700 $ 9,731 Marketing, general and administrative expense 17,716 17,360 39,352 45,416 Total share-based compensation expense $ 22,451 $ 22,389 $ 49,052 $ 55,147 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies Ship Construction Contracts Project Leonardo will introduce an additional six ships, each ranging from approximately 140,000 to 156,300 Gross Tons with approximately 3,215 to 3,550 Berths, with expected delivery dates from 2022 through 2027. For the Regent brand, we have an order for one Explorer Class Ship to be delivered in 2023, which will be approximately 55,000 Gross Tons and 750 Berths. For the Oceania Cruises brand, we have orders for two Allura Class Ships to be delivered in 2023 and 2025. Each of the Allura Class Ships will be approximately 67,000 Gross Tons and 1,200 Berths. The impacts of COVID-19 on the shipyards where our ships are under construction (or will be constructed) have resulted in some delays in expected ship deliveries, and the impacts of COVID-19 could result in additional delays in ship deliveries in the future, which may be prolonged. The combined contract prices of the nine ships on order for delivery as of June 30, 2021 was approximately €7.6 billion, or $9.0 billion based on the euro/U.S. dollar exchange rate as of June 30, 2021. We have obtained export credit financing which is expected to fund approximately 80% of the contract price of each ship, subject to certain conditions. We do not anticipate any contractual breaches or cancellations to occur. However, if any such events were to occur, it could result in, among other things, the forfeiture of prior deposits or payments made by us and potential claims and impairment losses which may materially impact our business, financial condition and results of operations. In July 2021, we amended nine credit facilities for our newbuild agreements and increased the combined commitments under such credit facilities by approximately $770 million to cover owner’s supply (generally consists of provisions for the ship), modifications and financing premiums. Litigation Class Actions On March 12, 2020, a class action complaint, Eric Douglas v. Norwegian Cruise Lines, Frank J. Del Rio and Mark A. Kempa, Case No. 1:20-CV-21107, was filed in the United States District Court for the Southern District of Florida, naming the Company, Frank J. Del Rio, the Company’s President and Chief Executive Officer, and Mark A. Kempa, the Company’s Executive Vice President and Chief Financial Officer, as defendants. Subsequently, similar class action complaints were also filed in the United States District Court for the Southern District of Florida naming the same defendants. On July 31, 2020, a consolidated amended class action complaint was filed by lead plaintiff’s counsel. The complaint asserted claims, purportedly brought on behalf of a class of shareholders, under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, and alleged that the Company made false and misleading statements to the market and customers about COVID-19. The complaint sought unspecified damages and an award of costs and expenses, including reasonable attorneys’ fees, on behalf of a purported class of purchasers of our ordinary shares between February 20, 2020 and March 10, 2020. On April 10, 2021, the case was dismissed and closed, and the plaintiffs no longer have the right to appeal. In addition, in March 2020 the Florida Attorney General announced an investigation related to the Company’s marketing during the COVID-19 pandemic. Following the announcement of the investigation by the Florida Attorney General, we received notifications from other attorneys general and governmental agencies that they are conducting similar investigations. The Company is cooperating with these ongoing investigations, the outcomes of which cannot be predicted at this time. Helms-Burton Act On August 27, 2019, two lawsuits were filed against NCLH in the United States District Court for the Southern District of Florida under Title III of the Cuban Liberty and Solidarity (Libertad) Act of 1996, also known as the Helms-Burton Act. The complaint filed by Havana Docks Corporation alleges it holds an interest in the Havana Cruise Port Terminal and the complaint filed by Javier Garcia-Bengochea alleges that he holds an interest in the Port of Santiago, Cuba, both of which were expropriated by the Cuban Government. The complaints further allege that the Company “trafficked” in those properties by embarking and disembarking passengers at these facilities. The plaintiffs seek all available statutory remedies, including the value of the expropriated property, plus interest, treble damages, attorneys’ fees and costs. On January 7, 2020, the United States District Court for the Southern District of Florida dismissed the claim by Havana Docks Corporation. On April 14, 2020, the district court granted Havana Docks Corporation’s motion to reconsider and vacated its order dismissing the claim, allowing Havana Docks Corporation to file an amended complaint on April 16, 2020. On April 24, 2020, we filed a motion seeking permission to appeal the district court’s order which was subsequently denied. On September 1, 2020, the Court entered an order staying all case deadlines and administratively closed the Garcia-Bengochea matter pending the outcome of the appeal in a related case brought by the same plaintiff. We believe we have meritorious defenses to the claims and intend to vigorously defend these matters. As of June 30, 2021, we are unable to reasonably estimate any potential contingent loss from these matters due to a lack of legal precedent. Other In the normal course of our business, various other 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 Contingencies The Company also has agreements with its credit card processors that govern approximately $1.2 billion at June 30, 2021 in advance ticket sales that have been received by the Company relating to future voyages. These agreements allow the credit card processors to require under certain circumstances, including the existence of a material adverse change, excessive chargebacks and other triggering events, that the Company maintain a reserve which would be satisfied by posting collateral. Although the agreements vary, these requirements may generally be satisfied either through a percentage of customer payments withheld or providing cash funds directly to the card processor. Any cash reserve or collateral requested could be increased or decreased. As of June 30, 2021, we had a reserve of approximately $800 million with a credit card processor recognized in accounts receivable, net or other long-term assets. Additionally, we are required to fund all refunds until further notice and 100% of incoming advance ticket sales deposits with this credit card processor will be withheld and are not expected to be released until the credit card processor’s exposure is fully collateralized. As of June 30, 2021, the exposure was approximately $940 million. The reserve shortfall of approximately $140 million will decrease as refunds are funded, cruises are provided and amounts withheld by the credit card processor are allocated to the reserve rather than remitted to the Company. We may be required to pledge additional collateral and/or post cash reserves or take other actions that may further reduce our liquidity. |
Other Income (Expense), Net
Other Income (Expense), Net | 6 Months Ended |
Jun. 30, 2021 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense), Net | 10. Other Income (Expense), Net For the three months ended June 30, 2021 and 2020, other income (expense), net was of an expense of $82.6 million and $242.2 million, respectively, and for the six months ended June 30, 2021 and 2020, was of an expense of $371.9 million and $236.4 million, respectively, primarily due to losses from conversion options on our exchangeable notes. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 6 Months Ended |
Jun. 30, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | 11. Supplemental Cash Flow Information For the six months ended June 30, 2021 and 2020, we had non-cash investing activities consisting of changes in accruals related to property and equipment of $49.1 million and $7.2 million, respectively. |
Related Party Disclosures
Related Party Disclosures | 6 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Disclosures | 12. Related Party Disclosures NCLC, as issuer, NCLH, as guarantor, and U.S. Bank National Association, as trustee were all parties to an indenture, dated May 28, 2020 (the “Indenture”) related to the Private Exchangeable Notes, which were held by the Private Investor. The terms of the Private Exchangeable Notes are more fully described under Note 6 — “Long-Term Debt”. Based on the initial exchange rate for the Private Exchangeable Notes, the Private Investor beneficially owned approximately 10% of NCLH’s outstanding ordinary shares as of December 31, 2020. The initial exchange rate for the Private Exchangeable Notes could have been adjusted in the event of certain make-whole fundamental changes or tax redemption events (each, as described in the Indenture), but the maximum number of NCLH ordinary shares issuable upon an exchange in the event of such an adjustment would not have exceeded 46,577,947 . The Private Exchangeable Notes also contained certain anti-dilution provisions that could have subjected the exchange rate to additional adjustment if certain events had occurred. NCLH, NCLC and the Private Investor also entered into an investor rights agreement dated May 28, 2020 (the “Investor Rights Agreement”), which provided that, among other things, the Private Investor was entitled to nominate one person for appointment to the board of directors of NCLH until the first date on which the Private Investor no longer beneficially owned in the aggregate at least 50% of the number of NCLH’s ordinary shares issuable upon exchange of the Private Exchangeable Notes beneficially owned by the Private Investor in the aggregate as of May 28, 2020 (subject to certain adjustments). The Investor Rights Agreement also provided for customary registration rights for the Private Investor and its affiliates, including demand and piggyback registration rights, contained customary transfer restrictions and provided that the Private Investor and its affiliates were subject to a voting agreement with respect to certain matters during a specified period of time. In a privately negotiated transaction among NCLH, NCLC and the Private Investor, NCLC agreed to repurchase all of the outstanding Private Exchangeable Notes for an aggregate repurchase price of approximately $1.0 billion (the “Repurchase”). On March 9, 2021, in connection with the settlement of the Repurchase, the trustee cancelled the aggregate principal amount outstanding under the Private Exchangeable Notes and confirmed that NCLC had satisfied and discharged its obligations under the Indenture. In connection with the Repurchase, we and the Private Investor agreed to terminate the Investor Rights Agreement effective upon the consummation of the Repurchase. Notwithstanding the termination, we and the Private Investor agreed that certain provisions related to indemnification and expense reimbursement would survive in accordance with their terms. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Liquidity and Management’s Plan Due to the impact of COVID-19, ongoing travel restrictions and limited access to ports around the world, in March 2020, the Company implemented a voluntary suspension of all cruise voyages across its three brands. As of June 30, 2021, none of our ships were operating with guests on board; however, all of our brands have announced resumption of cruise voyages by September 30, 2021 as part of our phased return to service and two ships have currently commenced voyages. Significant events affecting travel, including COVID-19, typically have an impact on demand for cruise vacations, with the full extent of the impact generally determined by the length of time the event influences travel decisions. We believe the ongoing effects of COVID-19 on our operations and global bookings have had, and will continue to have, a significant impact on our financial results and liquidity, and such negative impact may continue well beyond the containment of the pandemic. In January 2021, we amended our Senior Secured Credit Facility to further defer certain amortization payments due prior to June 30, 2022 and to waive certain financial and other covenants through December 31, 2022. In February 2021, we amended certain of our export-credit backed facilities to further defer amortization payments through March 31, 2022, and we amended all of our export-credit backed facilities to suspend certain financial covenants through December 31, 2022. In connection with such amendments of our Senior Secured Credit Facility and our export-credit backed facilities, our minimum liquidity requirement was increased to $200 million and such requirement applies through December 31, 2022. In March 2021, the Company received additional financing through various debt financings and an equity offering, collectively totaling approximately $2.7 billion in gross proceeds. From the proceeds, approximately $1.5 billion was used to extinguish debt. Refer to Note 6 – “Long-Term Debt” for further details of the above transactions. In the second quarter of 2021, we announced a phased relaunch of certain cruise voyages beginning in July 2021 with our ships initially operating at reduced occupancy levels. The Company has announced its phased relaunch plans for all 28 ships across its three brands which began with Norwegian Jade on July 25, 2021 and continues through April 1, 2022. The first cruise to commence in the U.S. was on August 7, 2021 with Norwegian Encore sailing to Alaska from Seattle. The Company expects to have approximately 40% of capacity operating by September 30, 2021 and approximately 75% by December 31, 2021 with the full fleet expected to be back in operation by April 1, 2022. The timing for bringing our ships back to service and the percentage of our fleet in service will depend on a number of factors including, but not limited to, the duration and extent of the COVID-19 pandemic, further resurgences and new more contagious and/or vaccine-resistant variants of COVID-19, the availability, distribution, rate of public acceptance and efficacy of vaccines and therapeutics for COVID-19, our ability to comply with governmental regulations, port availability, travel restrictions, bans and advisories, and our ability to re-staff our ships and implement new health and safety protocols. The estimation of our future cash flow projections includes numerous assumptions that are subject to various risks and uncertainties. Upon the relaunch of cruise voyages, our principal assumptions for future cash flow projections include: ● Expected gradual phased relaunch at reduced occupancy levels, increasing over time until we reach historical occupancy levels; ● Forecasted cash collections primarily upon completion of future voyages and the payment of cash refunds for any further cancellations, in accordance with the terms of our credit card processing agreements (see Note 9 - “Commitments and Contingencies”); and ● Expected incremental expenses for resumption of cruise voyages, including the maintenance of and compliance with additional health and safety protocols. We cannot make assurances that our assumptions used to estimate our liquidity requirements will not change due to the unique and unpredictable nature of the pandemic, including its magnitude and duration. Accordingly, the full effect of the COVID-19 pandemic on our financial performance and financial condition cannot be quantified at this time. We have made reasonable estimates and judgments of the impact of COVID-19 within our financial statements and there may be material changes to those estimates in future periods. We will report a net loss for the three months ending September 30, 2021 and expect to report a net loss until we are able to resume regular voyages, including for the year ending December 31, 2021. We have taken actions to improve our liquidity, including completing various capital market transactions and making capital expenditure and operating expense reductions, and we expect to continue to pursue other opportunities to improve our liquidity and to refinance our debt to reduce interest expense and extend maturities. Based on these actions and assumptions regarding the impact of COVID-19, and considering our available liquidity including cash and cash equivalents of $2.7 billion as of June 30, 2021, we have concluded that we have sufficient liquidity to satisfy our obligations for at least the next twelve months . 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; however, our cruise voyages were completely suspended from March 2020 until July 2021 due to the COVID-19 pandemic. The interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2020, which are included in our most recent Annual Report on Form 10-K filed with the SEC on February 26, 2021. |
Foreign Currency | Foreign Currency The majority of our transactions are settled in U.S. dollars. We remeasure assets and liabilities denominated in foreign currencies at exchange rates in effect at the balance sheet date. Gains or losses resulting from transactions denominated in other currencies are recognized in our consolidated statements of operations within other income (expense), net. We recognized a gain of $0.2 million and a loss of $10.2 million for the three months ended June 30, 2021 and 2020, respectively, and gains of $5.0 million and $9.7 million for the six months ended June 30, 2021 and 2020, respectively, related to transactions denominated in other currencies. |
Depreciation and Amortization Expense | Depreciation and Amortization Expense The amortization of deferred financing fees and debt discounts are included in depreciation and amortization expense in the consolidated statements of cash flows; however, for purposes of the consolidated statements of operations they are included in interest expense, net. |
Accounts Receivable, Net | Accounts Receivable, Net Accounts receivable, net includes $400.7 million due from credit card processors as of June 30, 2021, which is expected to be collected within the next 12 months. Prior to the resumption of cruise operations, these amounts were classified in other long-term assets as a result of the uncertainty surrounding the timing of their collection. |
Recently Issued Accounting Guidance | Recently Issued Accounting Guidance In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting reference rate expected to be discontinued due to reference rate reform. Adoption of the provisions of ASU 2020-04 are optional and are effective from March 12, 2020 through December 31, 2022. As of June 30, 2021, we have not adopted any expedients and exceptions under ASU 2020-04. We will continue to evaluate the impact of ASU 2020-04 on our consolidated financial statements. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of revenues by destination | Three Months Ended Six Months Ended June 30, June 30, 2020 2020 North America $ 3,366 $ 954,422 Europe 9,701 23,036 Asia-Pacific — 150,921 South America — 76,306 Other 3,862 59,126 Total revenue $ 16,929 $ 1,263,811 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Schedule of lease balances | Balance Sheet location June 30, 2021 December 31, 2020 Operating leases Right-of-use assets Other long-term assets $ 202,569 $ 209,037 Current operating lease liabilities Accrued expenses and other liabilities 22,450 17,700 Non-current operating lease liabilities Other long-term liabilities 173,845 185,414 Finance leases Right-of-use assets Property and equipment, net 10,960 11,948 Current finance lease liabilities Current portion of long-term debt 5,267 5,143 Non-current finance lease liabilities Long-term debt 2,718 4,648 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Statement Of Income And Comprehensive Income [Abstract] | |
Schedule of accumulated other comprehensive income (loss) | Six Months Ended June 30, 2021 Change Accumulated Change Related to Other Related to Shipboard Comprehensive Cash Flow Retirement Income (Loss) Hedges Plan Accumulated other comprehensive income (loss) at beginning of period $ (241,830) $ (234,981) $ (6,849) Current period other comprehensive loss before reclassifications (28,363) (28,363) — Amounts reclassified into earnings 35,577 35,380 (1) 197 (2) Accumulated other comprehensive income (loss) at end of period $ (234,616) $ (227,964) (3) $ (6,652) Six Months Ended June 30, 2020 Change Accumulated Change Related to Other Related to Shipboard Comprehensive Cash Flow Retirement Income (Loss) Hedges Plan Accumulated other comprehensive income (loss) at beginning of period $ (297,203) $ (290,009) $ (7,194) Current period other comprehensive loss before reclassifications (251,382) (251,382) — Amounts reclassified into earnings 50,985 50,781 (1) 204 (2) Accumulated other comprehensive income (loss) at end of period $ (497,600) $ (490,610) $ (6,990) |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of debt instrument interest rate | Margin €529.8 million Breakaway one loan (Norwegian Breakaway) 1.10 % €529.8 million Breakaway two loan (Norwegian Getaway) 1.40 % €590.5 million Breakaway three loan (Norwegian Escape) 1.50 % €729.9 million Breakaway four loan (Norwegian Joy) 1.50 % €710.8 million Seahawk 1 term loan (Norwegian Bliss) 1.20 % €748.7 million Seahawk 2 term loan (Norwegian Encore) 1.20 % Explorer newbuild loan 3.00 % Splendor newbuild loan 1.95 % Marina newbuild loan 0.75 % Riviera newbuild loan 0.75 % |
Schedule of convertible debt instruments | The following is a summary of NCLC’s convertible debt instruments as of June 30, 2021 (in thousands): Unamortized Debt Discount, Principal including Deferred Net Carrying Fair Value Amount Financing Fees Amount Amount Leveling 2024 Exchangeable Notes $ 862,500 $ (303,628) $ 558,872 $ 2,016,560 Level 2 2025 Exchangeable Notes 450,000 (141,639) 308,361 844,295 Level 2 The following is a summary of NCLC’s convertible debt instruments as of December 31, 2020 (in thousands): Unamortized Debt Discount, Principal including Deferred Net Carrying Fair Value Amount Financing Fees Amount Amount Leveling 2024 Exchangeable Notes $ 862,500 $ (338,571) $ 523,929 $ 1,812,975 Level 2 2025 Exchangeable Notes 450,000 (153,299) 296,701 772,412 Level 2 Private Exchangeable Notes 414,311 (399,366) 14,945 1,098,082 Level 2 |
Schedule of interest expense of convertible debt instruments | The following provides a summary of the interest expense of NCLC’s convertible debt instruments (in thousands): Three Months Six Months Ended June 30, 2021 Ended June 30, 2021 Coupon interest 18,985 43,125 Amortization of discount and deferred financing fees 24,150 47,763 Total $ 43,135 $ 90,888 |
Schedule of principal repayments on long-term debt including finance lease obligations | The following are scheduled principal repayments on our long-term debt including finance lease obligations as of June 30, 2021 for each of the following periods (in thousands): Year Amount Remainder of 2021 $ 18,271 2022 856,689 2023 924,216 2024 5,060,206 2025 1,054,008 Thereafter 4,579,284 Total $ 12,492,674 |
Fair Value Measurements and D_2
Fair Value Measurements and Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of derivatives measured at fair value and disclosed by balance sheet location | Assets Liabilities June 30, December 31, June 30, December 31, Balance Sheet Location 2021 2020 2021 2020 Derivative Contracts Designated as Hedging Instruments Fuel contracts Prepaid expenses and other assets $ 6,921 $ — $ — $ — Other long-term assets 17,054 — — — Accrued expenses and other liabilities — — — 35,973 Other long-term liabilities — — — 28,947 Foreign currency contracts Prepaid expenses and other assets 1,702 5,779 — — Other long-term assets 25,389 43,250 — — Accrued expenses and other liabilities — — 74,084 14,778 Other long-term liabilities 2,466 6,821 30,563 44,938 Interest rate contracts Accrued expenses and other liabilities — — 2,919 6,776 Other long-term liabilities — — — 452 Total derivatives designated as hedging instruments $ 53,532 $ 55,850 $ 107,566 $ 131,864 Derivative Contracts Not Designated as Hedging Instruments Fuel contracts Prepaid expenses and other assets $ 6,206 $ — $ 1,284 $ — Other long-term assets 2,452 — — — Accrued expenses and other liabilities — 546 — 6,732 Other long-term liabilities — — — 3,534 Debt conversion options Exchangeable notes — — 1,507,451 1,856,145 Total derivatives not designated as hedging instruments $ 8,658 $ 546 $ 1,508,735 $ 1,866,411 Total derivatives $ 62,190 $ 56,396 $ 1,616,301 $ 1,998,275 |
Schedule of gross and net amounts recognized within assets and liabilities | Gross Gross Gross Amounts Total Net Amounts June 30, 2021 Amounts Offset Amounts Not Offset Net Amounts Assets $ 59,724 $ (1,284) $ 58,440 $ (27,091) $ 31,349 Liabilities 1,615,017 (2,466) 1,612,551 (1,602,232) 10,319 Gross Gross Gross Amounts Total Net Amounts December 31, 2020 Amounts Offset Amounts Not Offset Net Amounts Assets $ 49,029 $ — $ 49,029 $ (49,029) $ — Liabilities 1,998,275 (7,367) 1,990,908 (1,913,496) 77,412 |
Schedule of cash flow hedges included in accumulated other comprehensive income | Location of Gain (Loss) Reclassified from Accumulated Amount of Gain (Loss) Reclassified Amount of Gain (Loss) Other Comprehensive from Accumulated Other Recognized in Other Income (Loss) into Comprehensive Income Derivatives Comprehensive Loss Income (Expense) (Loss) into Income (Expense) Three Months Three Months Three Months Three Months Ended Ended Ended Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Fuel contracts $ 25,456 $ 27,769 Fuel $ (8,652) $ (13,878) Fuel contracts — — Other income (expense), net (1,538) (11,964) Foreign currency contracts 19,281 27,694 Depreciation and amortization (1,266) (1,266) Interest rate contracts (63) (985) Interest expense, net (2,086) (1,674) Total gain (loss) recognized in other comprehensive loss $ 44,674 $ 54,478 $ (13,542) $ (28,782) Location of Gain (Loss) Reclassified from Accumulated Amount of Gain (Loss) Reclassified Amount of Gain (Loss) Other Comprehensive from Accumulated Other Recognized in Other Income (Loss) into Comprehensive Income Derivatives Comprehensive Loss Income (Expense) (Loss) into Income (Expense) Six Months Six Months Six Months Six Months Ended Ended Ended Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Fuel contracts $ 49,506 $ (170,708) Fuel $ (16,823) $ (20,095) Fuel contracts — — Other income (expense), net (11,728) (26,284) Foreign currency contracts (78,160) (70,193) Depreciation and amortization (2,533) (2,395) Interest rate contracts 291 (10,481) Interest expense, net (4,296) (2,007) Total gain (loss) recognized in other comprehensive loss $ (28,363) $ (251,382) $ (35,380) $ (50,781) |
Schedule of effects of derivatives designated as cash flow hedges | Three Months Ended June 30, 2021 Three Months Ended June 30, 2020 Depreciation Depreciation and Interest Other Income and Interest Other Income Fuel Amortization Expense, net (Expense), net Fuel Amortization Expense, net (Expense), net Total amounts of income and expense line items presented in the consolidated statements of operations in which the effects of cash flow hedges are recorded $ 54,090 $ 174,262 $ 179,448 $ (82,627) $ 48,992 $ 179,252 $ 120,585 $ (242,230) Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into income (expense) Fuel contracts (8,652) — — — (13,878) — — — Foreign currency contracts — (1,266) — — — (1,266) — — Interest rate contracts — — (2,086) — — — (1,674) — Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into income (expense) as a result that a forecasted transaction is no longer probable of occurring Fuel contracts — — — (1,538) — — — (11,964) Six Months Ended June 30, 2021 Six Months Ended June 30, 2020 Depreciation Depreciation and Interest Other Income and Interest Other Income Fuel Amortization Expense, net (Expense), net Fuel Amortization Expense, net (Expense), net Total amounts of income and expense line items presented in the consolidated statements of operations in which the effects of cash flow hedges are recorded $ 96,693 $ 344,578 $ 639,780 $ (371,892) $ 174,016 $ 377,449 $ 189,492 $ (236,407) Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into income (expense) Fuel contracts (16,823) — — — (20,095) — — — Foreign currency contracts — (2,533) — — — (2,395) — — Interest rate contracts — — (4,296) — — — (2,007) — Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into income (expense) as a result that a forecasted transaction is no longer probable of occurring Fuel contracts — — — (11,728) — — — (26,284) |
Schedule of effects of derivatives not designated as cash flow hedges | Amount of Gain (Loss) Recognized in Income Three Months Ended Six Months Ended June 30, June 30, Location of Gain (Loss) 2021 2020 2021 2020 Derivatives not designated as hedging instruments Fuel contracts Other income (expense), net $ 17,935 $ 3,646 $ 50,107 $ 3,646 Debt conversion options Other income (expense), net (108,127) (215,625) (424,636) (215,625) |
Employee Benefits and Share-Bas
Employee Benefits and Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of summary of option activity | Weighted- Number of Share Option Awards Weighted-Average Exercise Price Average Aggregate Time- Performance- Market- Time- Performance- Market- Contractual Intrinsic Based Based Based Based Based Based Term Value Awards Awards Awards Awards Awards Awards (years) (in thousands) Outstanding as of January 1, 2021 4,525,207 114,583 208,333 $ 51.96 $ 59.43 $ 59.43 4.42 $ — Forfeited and cancelled (26,833) — — 53.62 — — Outstanding as of June 30, 2021 4,498,374 114,583 208,333 51.95 59.43 59.43 3.93 — |
Schedule of summary of restricted share unit activity | Number of Weighted- Number of Weighted- Number of Weighted- Time-Based Average Grant Performance- Average Grant Market- Average Grant Awards Date Fair Value Based Awards Date Fair Value Based Awards Date Fair Value Non-vested as of January 1, 2021 6,663,925 $ 30.54 1,565,184 $ 39.42 50,000 $ 59.43 Granted 3,124,241 30.92 736,898 40.89 — — Vested (1,743,479) 47.01 (460,969) 56.73 — — Forfeited or expired (131,969) 26.48 — — — — Non-vested as of June 30, 2021 7,912,718 27.13 1,841,113 35.68 50,000 59.43 |
Schedule of compensation expense recognized for share-based compensation | The compensation expense recognized for share-based compensation for the periods presented include the following (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Payroll and related expense $ 4,735 $ 5,029 $ 9,700 $ 9,731 Marketing, general and administrative expense 17,716 17,360 39,352 45,416 Total share-based compensation expense $ 22,451 $ 22,389 $ 49,052 $ 55,147 |
Description of Business and O_2
Description of Business and Organization (Details) | Jun. 30, 2021item |
Description Of Business And Organization [Line Items] | |
Number of cruise ships | 28 |
Capacity of ship, berths | 59,150 |
Number of additional ships | 9 |
Increased number of berths | 83,000 |
Ship order delivery in winter 2020 | |
Description Of Business And Organization [Line Items] | |
Capacity of ship, berths | 750 |
Number of additional ships | 1 |
Ships launching period in 2022 through 2027 | |
Description Of Business And Organization [Line Items] | |
Number of additional ships | 6 |
Ships launching period in 2022 through 2027 | Project Leonardo | |
Description Of Business And Organization [Line Items] | |
Number of additional ships | 6 |
Ships launching period in 2023 and 2025 | |
Description Of Business And Organization [Line Items] | |
Capacity of ship, berths | 1,200 |
Number of additional ships | 2 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Liquidity and Management's Plan (Details) $ in Thousands | 1 Months Ended | 6 Months Ended | ||||||
Mar. 31, 2021USD ($)shares | Mar. 31, 2020item | Jun. 30, 2021USD ($) | Jul. 31, 2021USD ($) | Jan. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) | |
Accounting Policies [Abstract] | ||||||||
Number of reporting units | item | 3 | |||||||
Covenant, minimum liquidity | $ 200,000 | |||||||
Proceeds from debt and equity financing | $ 2,700,000 | |||||||
Repayment and extinguishment of debt, amount | $ 1,500,000 | |||||||
Amount outstanding | $ 770,000 | |||||||
Equity offering shares | shares | 52,577,947 | |||||||
Cash and cash equivalents | $ 2,749,233 | $ 3,299,340 | $ 2,258,574 | $ 231,239 | ||||
Substantial Doubt about Going Concern, within One Year [true false] | false |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2020item | Jun. 30, 2021USD ($)item | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)segmentitem | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Schedule Of Significant Accounting Policies [Line Items] | ||||||
Number of reporting units | item | 3 | |||||
Goodwill | $ 98,134 | $ 98,134 | $ 98,134 | |||
Trade names | $ 500,525 | $ 500,525 | 500,525 | |||
Number of reportable segments | segment | 1 | |||||
Number of cruise ships | item | 28 | 28 | ||||
Ship, carrying value | $ 13,431,884 | $ 13,431,884 | 13,411,226 | |||
Foreign currency transaction gain | 200 | 5,000 | $ 9,700 | |||
Foreign currency transaction loss | $ 10,200 | |||||
Accounts receivable, net | 422,598 | 422,598 | $ 20,578 | |||
Credit Card Processors | ||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||
Accounts receivable, net | $ 400,700 | $ 400,700 | ||||
Revenue | Geographic Concentration Risk | ||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||
Concentration risk, benchmark | No other individual country’s revenues exceed 10% in any given period. |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 4,368 | $ 16,929 | $ 7,468 | $ 1,263,811 |
North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 3,366 | 954,422 | ||
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 9,701 | 23,036 | ||
Asia-Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 150,921 | |||
South America | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 76,306 | |||
Other Country | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 3,862 | $ 59,126 |
Revenue Recognition (Details)
Revenue Recognition (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Jun. 30, 2021USD ($)segment | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Disaggregation of Revenue [Line Items] | ||||||
Number of reportable segments | segment | 1 | |||||
Receivables from customers included in accounts receivable, net | $ 0.9 | $ 0.9 | $ 1 | |||
Contract liabilities included within advance ticket sales | 50,500 | 50,500 | $ 23,100 | |||
Contract liability balance recognized in revenue | $ 900 | |||||
Cost to obtain the contract | $ 11.2 | $ 38.6 | $ 26 | $ 130.6 | ||
Revenue | Geographic Concentration Risk | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Concentration risk, benchmark | No other individual country’s revenues exceed 10% in any given period. | |||||
Revenue | Geographic Concentration Risk | Minimum | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Percentage of revenue attributable to U.S.- sourced passengers | 75.00% | |||||
Revenue | Geographic Concentration Risk | Maximum | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Percentage of revenue attributable to U.S.- sourced passengers | 85.00% |
Leases - Lease Balances (Detail
Leases - Lease Balances (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Operating leases | ||
Right-of-use assets | $ 202,569 | $ 209,037 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets Noncurrent | |
Current operating lease liabilities | $ 22,450 | 17,700 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued Liabilities And Other Liabilities Current | |
Non-current operating lease liabilities | $ 173,845 | 185,414 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other Liabilities Noncurrent | |
Finance leases | ||
Right-of-use assets | $ 10,960 | 11,948 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, Plant and Equipment, Net | |
Current finance lease liabilities | $ 5,267 | 5,143 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Long-term Debt and Capital Lease Obligations, Current | |
Non-current finance lease liabilities | $ 2,718 | $ 4,648 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Total long-term debt |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income (loss) at beginning of period | $ (241,830) | |
Accumulated other comprehensive income (loss) at end of period | (234,616) | |
Amount of loss expected to be reclassified into earnings | (25,700) | |
Accumulated Other Comprehensive Income (Loss) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income (loss) at beginning of period | (241,830) | $ (297,203) |
Current period other comprehensive income (loss) before reclassifications | (28,363) | (251,382) |
Amounts reclassified into earnings | 35,577 | 50,985 |
Accumulated other comprehensive income (loss) at end of period | (234,616) | (497,600) |
Change Related to Cash Flow Hedges | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income (loss) at beginning of period | (234,981) | (290,009) |
Current period other comprehensive income (loss) before reclassifications | (28,363) | (251,382) |
Amounts reclassified into earnings | 35,380 | 50,781 |
Accumulated other comprehensive income (loss) at end of period | (227,964) | (490,610) |
Change Related to Shipboard Retirement Plan | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income (loss) at beginning of period | (6,849) | (7,194) |
Amounts reclassified into earnings | 197 | 204 |
Accumulated other comprehensive income (loss) at end of period | $ (6,652) | $ (6,990) |
Long-Term Debt (Details)
Long-Term Debt (Details) $ / shares in Units, € in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2021USD ($)shares | Feb. 28, 2021USD ($) | Jan. 31, 2021USD ($) | Dec. 31, 2020USD ($)$ / shares | Jun. 30, 2021USD ($)$ / shares | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)$ / shares | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)$ / shares | Jul. 31, 2021USD ($) | Jun. 30, 2021EUR (€) | May 31, 2021EUR (€) | Feb. 28, 2021EUR (€) | |
Debt Instrument [Line Items] | |||||||||||||
Revolving Loan Facility | $ 770,000,000 | ||||||||||||
Loss on extinguishment of debt | $ 237,065,000 | $ 5,014,000 | |||||||||||
Repayment and extinguishment of debt, amount | $ 1,500,000,000 | ||||||||||||
Equity offering shares | shares | 52,577,947 | ||||||||||||
Proceeds from issuance of common stock | $ 1,600,000,000 | ||||||||||||
Export credit facility financing as percentage of contract price | 80.00% | 80.00% | 80.00% | ||||||||||
Interest expense, including amortization of debt discounts and coupon interest | $ 43,135,000 | $ 90,888,000 | |||||||||||
Covenant, minimum liquidity | $ 200,000,000 | ||||||||||||
Interest expense, net | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt modification cost | 52,100,000 | ||||||||||||
Second Deferral Period [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Annual debt repayment rate | 20 | ||||||||||||
529.8 million Breakaway one loan | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Principal amount | $ 529,800,000 | ||||||||||||
529.8 million Breakaway one loan | Six months LIBOR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate | 1.10% | ||||||||||||
529.8 million Breakaway two loan | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Principal amount | € | € 529.8 | ||||||||||||
529.8 million Breakaway two loan | Six months LIBOR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate | 1.40% | ||||||||||||
590.5 million Breakaway three loan | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Principal amount | € | 590.5 | ||||||||||||
590.5 million Breakaway three loan | Six months LIBOR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate | 1.50% | ||||||||||||
729.9 million Breakaway four loan | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Principal amount | € | 729.9 | ||||||||||||
729.9 million Breakaway four loan | Six months LIBOR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate | 1.50% | ||||||||||||
EUR 710.8 Million Seahawk 1 Term Loan | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Principal amount | € | 710.8 | ||||||||||||
EUR 710.8 Million Seahawk 1 Term Loan | Six months LIBOR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate | 1.20% | ||||||||||||
EUR 748.7 Million Seahawk 2 Term Loan | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Principal amount | € | € 748.7 | ||||||||||||
EUR 748.7 Million Seahawk 2 Term Loan | Six months LIBOR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate | 1.20% | ||||||||||||
$230 Million Pride of America Term Loan | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Repayment of credit facility | 230,000,000 | ||||||||||||
Norwegian Jewel Term Loan | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Repayment of credit facility | 222,600,000 | ||||||||||||
Pride of American and Jewel Term Loans | Interest expense, net | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Loss on extinguishment of debt | 1,100,000 | ||||||||||||
Senior Unsecured Notes Due 2026 | Unsecured Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Principal amount | 575,000,000 | $ 850,000,000 | $ 850,000,000 | ||||||||||
Percentage of threshold, after percentage | 60.00% | ||||||||||||
Percentage of principal amount of debt redeemed | 40.00% | ||||||||||||
Interest rate | 5.875% | 5.875% | |||||||||||
Senior Unsecured Notes Due 2026 | Debt Redemption Prior To December 15, 2025 | Unsecured Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Redemption price as a percentage of face amount | 100.00% | ||||||||||||
Senior Unsecured Notes Due 2026 | Debt Redemption On Or After December 15, 2025 | Unsecured Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Redemption price as a percentage of face amount | 100.00% | ||||||||||||
Senior Unsecured Notes Due 2026 | Debt Redemption Prior To December 15, 2022 | Unsecured Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Redemption price as a percentage of face amount | 105.875% | ||||||||||||
Exchangeable Senior Notes Due 2024 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Principal amount | $ 862,500,000 | 862,500,000 | |||||||||||
Net carrying amount | $ 523,929,000 | $ 523,929,000 | |||||||||||
Debt instrument amount | $ 1,000 | ||||||||||||
Remaining discount amortization period | 2 years 10 months 24 days | ||||||||||||
Interest rate | 6.00% | 6.00% | 6.00% | ||||||||||
Effective interest rate | 22.78% | 22.78% | 22.78% | ||||||||||
Ordinary share exchange rate | 72.7273 | ||||||||||||
Initial exchange price | $ / shares | $ 13.75 | $ 13.75 | |||||||||||
Exchangeable Senior Notes Due 2024 | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Ordinary share exchange rate | 89.4454 | ||||||||||||
Exchangeable Senior Notes Due 2025 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Principal amount | $ 450,000,000 | $ 450,000,000 | |||||||||||
Net carrying amount | 296,701,000 | 296,701,000 | |||||||||||
Debt instrument amount | $ 1,000 | ||||||||||||
Remaining discount amortization period | 4 years 1 month 6 days | ||||||||||||
Interest rate | 5.375% | 5.375% | 5.375% | ||||||||||
Effective interest rate | 15.89% | 15.89% | 15.89% | ||||||||||
Ordinary share exchange rate | 53.3333 | ||||||||||||
Initial exchange price | $ / shares | $ 18.75 | $ 18.75 | |||||||||||
Exchangeable Senior Notes Due 2025 | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Ordinary share exchange rate | 66.6666 | ||||||||||||
Exchangeable Notes 2024 And Private Exchangeable Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest expense, including amortization of debt discounts and coupon interest | $ 18,600,000 | $ 18,600,000 | |||||||||||
$400.0 million L. Catterton exchangeable notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Principal amount | 414,300,000 | 414,300,000 | |||||||||||
Net carrying amount | $ 14,945,000 | 14,945,000 | |||||||||||
Repayment and extinguishment of debt, amount | 1,000,000,000 | ||||||||||||
Debt instrument amount | $ 1,000 | ||||||||||||
Ordinary share exchange rate | 82.6446 | ||||||||||||
Initial exchange price | $ / shares | $ 12.10 | $ 12.10 | |||||||||||
$400.0 million L. Catterton exchangeable notes | Interest expense, net | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Loss on extinguishment of debt | $ 236,000,000 | ||||||||||||
$400.0 million L. Catterton exchangeable notes | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Ordinary share exchange rate | 90.9090 | ||||||||||||
$400.0 million L. Catterton exchangeable notes | Debt Instrument First Year Post Issuance | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate | 7.00% | 7.00% | |||||||||||
Deferred Export Credit Loans | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Deferred amortization payments | $ 680,000,000 | ||||||||||||
Covenant, minimum liquidity | 200,000,000 | ||||||||||||
Explorer Newbuild Loan | Six months LIBOR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate | 3.00% | ||||||||||||
Riviera Newbuild Loan | Six months LIBOR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate | 0.75% | ||||||||||||
Splendor Newbuild Loan | Six months LIBOR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate | 1.95% | ||||||||||||
Marina Newbuild Loan | Six months LIBOR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate | 0.75% | ||||||||||||
Deferred Term Loan A | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Deferred amortization payments | 70,000,000 | ||||||||||||
Covenant, minimum liquidity | $ 200,000,000 | ||||||||||||
Deferred Term Loan A-1 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Annual debt repayment rate | 25 | ||||||||||||
Deferred Term Loan A-1 | Eurocurrency loans | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate | 2.50% | ||||||||||||
Deferred Term Loan A-1 | Base rate loans | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate | 1.50% | ||||||||||||
Deferred Term Loan A-2 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Annual debt repayment rate | 5.88 | ||||||||||||
Deferred Term Loan A-2 | Covenant Relief Period December 31, 2022 | Base rate | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate | 1.00% | ||||||||||||
Deferred Term Loan A-2 | Covenant Relief Period December 31, 2022 | LIBOR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate | 2.00% | ||||||||||||
Term loan - newbuild related | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Principal amount | € | € 28.8 | ||||||||||||
Net carrying amount | $ 11,400,000 | 11,400,000 | € 9.6 | ||||||||||
Interest rate | 4.50% | ||||||||||||
Senior Unsecured Notes Due 2028 | Unsecured Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Principal amount | $ 525,000,000 | ||||||||||||
Percentage of threshold, after percentage | 60.00% | ||||||||||||
Percentage of principal amount of debt redeemed | 40.00% | ||||||||||||
Interest rate | 6.125% | ||||||||||||
Senior Unsecured Notes Due 2028 | Debt Redemption Prior To December 15, 2027 | Unsecured Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Redemption price as a percentage of face amount | 100.00% | ||||||||||||
Senior Unsecured Notes Due 2028 | Debt Redemption On Or After December 15, 2027 | Unsecured Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Redemption price as a percentage of face amount | 100.00% | ||||||||||||
Senior Unsecured Notes Due 2028 | Debt Redemption Prior To March 15, 2024 | Unsecured Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Redemption price as a percentage of face amount | 106.125% | ||||||||||||
Deferred Loans | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Deferred amortization payments | $ 37,000,000 | $ 37,000,000 | € 31.2 | ||||||||||
Interest rate | 4.50% | 4.50% | 4.50% |
Long-Term Debt - Convertible De
Long-Term Debt - Convertible Debt Instrument (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||
Fair value | $ 14,200,000 | |
Exchangeable Senior Notes Due 2024 | ||
Debt Instrument [Line Items] | ||
Principal amount | $ 862,500 | |
Unamortized debt discount, including deferred financing fees | (338,571) | |
Net carrying amount | 523,929 | |
Remaining discount amortization period | 2 years 10 months 24 days | |
Exchangeable Senior Notes Due 2025 | ||
Debt Instrument [Line Items] | ||
Principal amount | 450,000 | |
Unamortized debt discount, including deferred financing fees | (153,299) | |
Net carrying amount | 296,701 | |
Remaining discount amortization period | 4 years 1 month 6 days | |
$400.0 million L. Catterton exchangeable notes | ||
Debt Instrument [Line Items] | ||
Principal amount | 414,311 | |
Unamortized debt discount, including deferred financing fees | (399,366) | |
Net carrying amount | 14,945 | |
Level 2 | Exchangeable Senior Notes Due 2024 | ||
Debt Instrument [Line Items] | ||
Principal amount | $ 862,500 | |
Unamortized debt discount, including deferred financing fees | (303,628) | |
Net carrying amount | 558,872 | |
Fair value | 2,016,560 | 1,812,975 |
Level 2 | Exchangeable Senior Notes Due 2025 | ||
Debt Instrument [Line Items] | ||
Principal amount | 450,000 | |
Unamortized debt discount, including deferred financing fees | (141,639) | |
Net carrying amount | 308,361 | |
Fair value | $ 844,295 | 772,412 |
Level 2 | $400.0 million L. Catterton exchangeable notes | ||
Debt Instrument [Line Items] | ||
Fair value | $ 1,098,082 |
Long-Term Debt - Interest Expen
Long-Term Debt - Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | |
Long-term Debt, Unclassified [Abstract] | ||
Coupon interest | $ 18,985 | $ 43,125 |
Amortization of discount and deferred financing fees | 24,150 | 47,763 |
Total | $ 43,135 | $ 90,888 |
Long-Term Debt - Schedule of Pr
Long-Term Debt - Schedule of Principal Repayments on Long-Term Debt Including Finance Lease Obligations (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
Remainder of 2021 | $ 18,271 |
2022 | 856,689 |
2023 | 924,216 |
2024 | 5,060,206 |
2025 | 1,054,008 |
Thereafter | 4,579,284 |
Total | $ 12,492,674 |
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 | Jun. 30, 2021 | Dec. 31, 2020 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | $ 59,724 | $ 49,029 |
Derivative liabilities, fair value | 1,615,017 | 1,998,275 |
Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 53,532 | 55,850 |
Derivative liabilities, fair value | 107,566 | 131,864 |
Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 8,658 | 546 |
Derivative liabilities, fair value | 1,508,735 | 1,866,411 |
Derivatives | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 62,190 | 56,396 |
Derivative liabilities, fair value | 1,616,301 | 1,998,275 |
Fuel swaps | Designated as Hedging Instrument | Prepaid expenses and other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 6,921 | |
Fuel swaps | Designated as Hedging Instrument | Other long-term assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 17,054 | |
Fuel swaps | Designated as Hedging Instrument | Accrued expenses and other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities, fair value | 35,973 | |
Fuel swaps | Designated as Hedging Instrument | Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities, fair value | 28,947 | |
Fuel swaps | Not Designated as Hedging Instrument | Prepaid expenses and other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 6,206 | |
Derivative liabilities, fair value | 1,284 | |
Fuel swaps | Not Designated as Hedging Instrument | Other long-term assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 2,452 | |
Fuel swaps | Not Designated as Hedging Instrument | Accrued expenses and other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 546 | |
Derivative liabilities, fair value | 6,732 | |
Fuel swaps | Not Designated as Hedging Instrument | Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities, fair value | 3,534 | |
Foreign Currency Forward Contracts | Designated as Hedging Instrument | Prepaid expenses and other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 1,702 | 5,779 |
Foreign Currency Forward Contracts | Designated as Hedging Instrument | Other long-term assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 25,389 | 43,250 |
Foreign Currency Forward Contracts | Designated as Hedging Instrument | Accrued expenses and other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities, fair value | 74,084 | 14,778 |
Foreign Currency Forward Contracts | Designated as Hedging Instrument | Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 2,466 | 6,821 |
Derivative liabilities, fair value | 30,563 | 44,938 |
Interest Rate Swaps | Designated as Hedging Instrument | Accrued expenses and other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities, fair value | 2,919 | 6,776 |
Interest Rate Swaps | Designated as Hedging Instrument | Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities, fair value | 452 | |
Debt conversion options | Not Designated as Hedging Instrument | Exchangeable notes | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities, fair value | $ 1,507,451 | $ 1,856,145 |
Fair Value Measurements and D_4
Fair Value Measurements and Derivatives - Amounts Recognized within Assets and Liabilities Based on Right of Offset (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value Disclosures [Abstract] | ||
Gross Amounts, Assets | $ 59,724 | $ 49,029 |
Gross Amounts Offset, Assets | (1,284) | |
Total Net Amounts, Assets | 58,440 | 49,029 |
Gross Amounts Not Offset, Assets | (27,091) | (49,029) |
Net Amounts, Assets | 31,349 | |
Gross Amounts, Liabilities | 1,615,017 | 1,998,275 |
Gross Amounts Offset, Liabilities | (2,466) | (7,367) |
Total Net Amounts, Liabilities | 1,612,551 | 1,990,908 |
Gross Amount Not Offset, Liabilities | (1,602,232) | (1,913,496) |
Net Amounts, Liabilities | $ 10,319 | $ 77,412 |
Fair Value Measurements and D_5
Fair Value Measurements and Derivatives - Effects of Derivatives Designated as Cash Flow Hedges (Details) - Cash Flow Hedging - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Other Comprehensive Loss | $ 44,674 | $ 54,478 | $ (28,363) | $ (251,382) |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Expense) | (13,542) | (28,782) | (35,380) | (50,781) |
Fuel | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Expense) | (8,652) | (13,878) | (16,823) | (20,095) |
Depreciation and amortization | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Expense) | (1,266) | (1,266) | (2,533) | (2,395) |
Interest expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Expense) | (2,086) | (1,674) | (4,296) | (2,007) |
Other Income (Expense), net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Expense) | (1,538) | (11,964) | (11,728) | (26,284) |
Fuel swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Other Comprehensive Loss | 25,456 | 27,769 | 49,506 | (170,708) |
Fuel swaps | Fuel | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Expense) | (8,652) | (13,878) | (16,823) | (20,095) |
Foreign Currency Forward Contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Other Comprehensive Loss | 19,281 | 27,694 | (78,160) | (70,193) |
Foreign Currency Forward Contracts | Depreciation and amortization | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Expense) | (1,266) | (1,266) | (2,533) | (2,395) |
Interest Rate Swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Other Comprehensive Loss | (63) | (985) | 291 | (10,481) |
Interest Rate Swaps | Interest expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Expense) | $ (2,086) | $ (1,674) | $ (4,296) | $ (2,007) |
Fair Value Measurements and D_6
Fair Value Measurements and Derivatives - Effects of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Fuel | $ 54,090 | $ 48,992 | $ 96,693 | $ 174,016 |
Depreciation and amortization | 174,262 | 179,252 | 344,578 | 377,449 |
Interest expense, net | 179,448 | 120,585 | 639,780 | 189,492 |
Other income (expense), net | (82,627) | (242,230) | (371,892) | (236,407) |
Cash Flow Hedging | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Other Comprehensive Loss | 44,674 | 54,478 | (28,363) | (251,382) |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Expense) | (13,542) | (28,782) | (35,380) | (50,781) |
Cash Flow Hedging | Fuel | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Expense) | (8,652) | (13,878) | (16,823) | (20,095) |
Cash Flow Hedging | Depreciation and amortization | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Expense) | (1,266) | (1,266) | (2,533) | (2,395) |
Cash Flow Hedging | Interest expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Expense) | (2,086) | (1,674) | (4,296) | (2,007) |
Cash Flow Hedging | Other Income (Expense), net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Expense) | (1,538) | (11,964) | (11,728) | (26,284) |
Cash Flow Hedging | Fuel swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Other Comprehensive Loss | 25,456 | 27,769 | 49,506 | (170,708) |
Cash Flow Hedging | Fuel swaps | Fuel | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Expense) | (8,652) | (13,878) | (16,823) | (20,095) |
Cash Flow Hedging | Fuel swaps | Other Income (Expense), net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (gain) loss reclassified from accumulated other comprehensive income (loss) into income (expense) as a result that a forecasted transaction is no longer probable of occurring | (1,538) | (11,964) | (11,728) | (26,284) |
Cash Flow Hedging | Foreign Currency Forward Contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Other Comprehensive Loss | 19,281 | 27,694 | (78,160) | (70,193) |
Cash Flow Hedging | Foreign Currency Forward Contracts | Depreciation and amortization | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Expense) | (1,266) | (1,266) | (2,533) | (2,395) |
Cash Flow Hedging | Interest Rate Swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Other Comprehensive Loss | (63) | (985) | 291 | (10,481) |
Cash Flow Hedging | Interest Rate Swaps | Interest expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Expense) | $ (2,086) | $ (1,674) | $ (4,296) | $ (2,007) |
Fair Value Measurements and D_7
Fair Value Measurements and Derivatives - Effects of Derivatives Not Designated as Hedging Instruments (Details) - Not Designated as Hedging Instrument - Other Income (Expense), net - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Fuel swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income | $ 17,935 | $ 3,646 | $ 50,107 | $ 3,646 |
Debt conversion options | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income | $ (108,127) | $ (215,625) | $ (424,636) | $ (215,625) |
Fair Value Measurements and D_8
Fair Value Measurements and Derivatives (Details) T in Thousands, $ in Millions, € in Billions | 6 Months Ended | ||
Jun. 30, 2021USD ($)T | Jun. 30, 2021EUR (€)T | Dec. 31, 2020USD ($) | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value of long-term debt | $ 14,200 | ||
Fair value of long-term debt in excess of carrying value | $ 700 | $ 1,000 | |
Fuel swaps | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative maturing date | Dec. 31, 2023 | ||
Projected fuel purchases | T | 366 | 366 | |
Foreign Currency Forward Contracts | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notional amount of derivatives | $ 2,100 | € 1.8 | |
Interest Rate Swaps | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notional amount of derivatives | $ 600 | ||
Not Designated as Hedging Instrument | Fuel swaps | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Projected fuel purchases | T | 206 | 206 | |
NCLH | Exchangeable Senior Notes Due 2024 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notional amount of derivatives | $ 62.7 | ||
NCLH | Exchangeable Senior Notes Due 2025 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notional amount of derivatives | $ 24 |
Employee Benefits and Compens_2
Employee Benefits and Compensation Plans (Details) - shares | 1 Months Ended | |||
Jun. 30, 2021 | May 31, 2021 | May 31, 2016 | Jan. 31, 2013 | |
Restated 2013 Performance Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Ordinary shares authorized | 32,375,106 | |||
Number of additional shares authorized | 4,910,000 | |||
NCLH | Restated 2013 Performance Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Ordinary shares authorized | 15,035,106 | |||
Number of additional shares authorized | 12,430,000 | |||
NCLH | Restated 2013 Performance Incentive Plan | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Ordinary shares authorized | 27,465,106 | |||
Time Based Awards | Awarded On June 2021 | Employee | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted share unit awards granted | 3,100,000 | |||
Share-based award, vesting period | 3 years | |||
Performance Based Options | Awarded On June 2021 | Members of management team | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted share unit awards granted | 700,000 |
Employee Benefits and Share-B_2
Employee Benefits and Share-Based Compensation - Summary of Option Activity (Details) - NCLH - $ / shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Weighted-Average Contractual Term (Years) | ||
Outstanding as of December 31, 2019 | 3 years 11 months 4 days | 4 years 5 months 1 day |
Time Based Awards | ||
Number of Share Option Awards | ||
Outstanding as of January 1, 2021 | 4,525,207 | |
Forfeited and cancelled | (26,833) | |
Outstanding as of March 31, 2021 | 4,498,374 | 4,525,207 |
Weighted-Average Exercise Price | ||
Outstanding as of January 1, 2021 | $ 51.96 | |
Forfeited and cancelled | 53.62 | |
Outstanding as of March 31, 2021 | $ 51.95 | $ 51.96 |
Performance Based Options | ||
Number of Share Option Awards | ||
Outstanding as of January 1, 2021 | 114,583 | |
Outstanding as of March 31, 2021 | 114,583 | 114,583 |
Weighted-Average Exercise Price | ||
Outstanding as of January 1, 2021 | $ 59.43 | |
Outstanding as of March 31, 2021 | $ 59.43 | $ 59.43 |
Market-Based Option Awards | ||
Number of Share Option Awards | ||
Outstanding as of January 1, 2021 | 208,333 | |
Outstanding as of March 31, 2021 | 208,333 | 208,333 |
Weighted-Average Exercise Price | ||
Outstanding as of January 1, 2021 | $ 59.43 | |
Outstanding as of March 31, 2021 | $ 59.43 | $ 59.43 |
Employee Benefits and Share-B_3
Employee Benefits and Share-Based Compensation - Summary of Restricted Share Units (Details) - Restricted Share Units | 6 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Time Based Awards | |
Number of Restricted Share | |
Non-vested as of January 1, 2021 | shares | 6,663,925 |
Restricted share unit awards granted | shares | 3,124,241 |
Vested | shares | (1,743,479) |
Forfeited or expired | shares | (131,969) |
Non-vested as of March 31, 2021 | shares | 7,912,718 |
Weighted-Average Grant-Date Fair Value | |
Non-vested as of January 1, 2021 | $ / shares | $ 30.54 |
Granted | $ / shares | 30.92 |
Vested | $ / shares | 47.01 |
Forfeited or expired | $ / shares | 26.48 |
Non-vested as of March 31, 2021 | $ / shares | $ 27.13 |
Performance Based Options | |
Number of Restricted Share | |
Non-vested as of January 1, 2021 | shares | 1,565,184 |
Restricted share unit awards granted | shares | 736,898 |
Vested | shares | (460,969) |
Non-vested as of March 31, 2021 | shares | 1,841,113 |
Weighted-Average Grant-Date Fair Value | |
Non-vested as of January 1, 2021 | $ / shares | $ 39.42 |
Granted | $ / shares | 40.89 |
Vested | $ / shares | 56.73 |
Non-vested as of March 31, 2021 | $ / shares | $ 35.68 |
Market-based RSUs | |
Number of Restricted Share | |
Non-vested as of January 1, 2021 | shares | 50,000 |
Non-vested as of March 31, 2021 | shares | 50,000 |
Weighted-Average Grant-Date Fair Value | |
Non-vested as of January 1, 2021 | $ / shares | $ 59.43 |
Non-vested as of March 31, 2021 | $ / shares | $ 59.43 |
Employee Benefits and Share-B_4
Employee Benefits and Share-Based Compensation - Summary of Compensation Expense Recognized for Share-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense | $ 22,451 | $ 22,389 | $ 49,052 | $ 55,147 |
Payroll and related | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense | 4,735 | 5,029 | 9,700 | 9,731 |
Marketing, general and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense | $ 17,716 | $ 17,360 | $ 39,352 | $ 45,416 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions, € in Billions | Mar. 12, 2020item | Aug. 27, 2019item | Jul. 31, 2021USD ($)item | Jun. 30, 2021USD ($) | Jun. 30, 2021EUR (€)item | Jun. 30, 2021USD ($)item |
Commitments and Contingencies Disclosure [Line Items] | ||||||
Number of cruise ships | 28 | 28 | ||||
Number of additional ships | 9 | 9 | ||||
Capacity of ship, berths | 59,150 | 59,150 | ||||
Aggregate contract price of new ships based on the euro/U.S. dollar exchange rate | € 7.6 | $ 9,000 | ||||
Export credit facility financing as percentage of contract price | 80.00% | 80.00% | ||||
Advance ticket sales with credit card processor | $ | $ 1,200 | |||||
Percentage of funding of incoming advance ticket sale deposit | 100.00% | |||||
Exposure amount of credit card processor | $ | 940 | |||||
Amount of shortfall in credit card processor reserve | $ | $ 140 | |||||
Number of credit facilities amended | 9 | |||||
Revolving Loan Facility | $ | $ 770 | |||||
Number of class action complaints | 2 | |||||
Number of lawsuits filed | 2 | |||||
Credit Card Processors | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Reserves maintained credit card processor | $ | $ 800 | |||||
Ships launching period in 2022 through 2027 | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Number of additional ships | 6 | 6 | ||||
Ships launching period in 2022 through 2027 | Minimum | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Capacity of ship, tons | 140,000 | 140,000 | ||||
Capacity of ship, berths | 3,215 | 3,215 | ||||
Ships launching period in 2022 through 2027 | Maximum | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Capacity of ship, tons | 156,300 | 156,300 | ||||
Capacity of ship, berths | 3,550 | 3,550 | ||||
Ships launching period in 2022 through 2027 | Project Leonardo | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Number of additional ships | 6 | 6 | ||||
Ships launching period in 2023 and 2025 | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Number of additional ships | 2 | 2 | ||||
Capacity of ship, tons | 67,000 | 67,000 | ||||
Capacity of ship, berths | 1,200 | 1,200 | ||||
Ship order delivery in winter 2020 | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Number of additional ships | 1 | 1 | ||||
Capacity of ship, tons | 55,000 | 55,000 | ||||
Capacity of ship, berths | 750 | 750 |
Other Income (Expense), Net (De
Other Income (Expense), Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Other Income and Expenses [Abstract] | ||||
Other income (expense), net | $ (82,627) | $ (242,230) | $ (371,892) | $ (236,407) |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Supplemental Cash Flow Elements [Abstract] | ||
Non-cash investing activity in connection with property and equipment | $ 49.1 | $ 7.2 |
Related Party Disclosures (Deta
Related Party Disclosures (Details) - USD ($) $ in Millions | May 28, 2020 | Mar. 31, 2021 | Dec. 31, 2020 |
Related Party Transaction [Line Items] | |||
Repayment and extinguishment of debt, amount | $ 1,500 | ||
$400.0 million L. Catterton exchangeable notes | |||
Related Party Transaction [Line Items] | |||
Repayment and extinguishment of debt, amount | $ 1,000 | ||
$400.0 million L. Catterton exchangeable notes | Maximum | |||
Related Party Transaction [Line Items] | |||
Shares issuable upon exchange | 46,577,947 | ||
L Catterton [Member] | |||
Related Party Transaction [Line Items] | |||
Beneficial ownership | 10.00% | ||
L Catterton [Member] | Minimum | |||
Related Party Transaction [Line Items] | |||
Investor ownership threshold | 50.00% |