Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2022 | Jul. 31, 2022 | |
Document And Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
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 | 2022 | |
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, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue | ||||
Total revenue | $ 1,187,181 | $ 4,368 | $ 1,709,121 | $ 7,468 |
Cruise operating expense | ||||
Total cruise operating expense | 1,073,316 | 249,727 | 1,808,729 | 450,582 |
Other operating expense | ||||
Marketing, general and administrative | 328,074 | 184,901 | 624,208 | 387,967 |
Depreciation and amortization | 181,587 | 174,262 | 360,663 | 344,578 |
Total other operating expense | 509,661 | 359,163 | 984,871 | 732,545 |
Operating income (loss) | (395,796) | (604,522) | (1,084,479) | (1,175,659) |
Non-operating income (expense) | ||||
Interest expense, net | (167,805) | (179,448) | (516,129) | (639,780) |
Other income (expense), net | 519,749 | (82,627) | 490,871 | (371,892) |
Total non-operating income (expense) | 351,944 | (262,075) | (25,258) | (1,011,672) |
Net loss before income taxes | (43,852) | (866,597) | (1,109,737) | (2,187,331) |
Income tax benefit (expense) | 547 | (927) | (3,846) | (2,655) |
Net loss | (43,305) | (867,524) | (1,113,583) | (2,189,986) |
Passenger ticket | ||||
Revenue | ||||
Total revenue | 793,892 | 1,584 | 1,136,347 | 1,750 |
Commissions, transportation and other | ||||
Cruise operating expense | ||||
Total cruise operating expense | 256,190 | 6,564 | 344,148 | 15,597 |
Onboard and other | ||||
Revenue | ||||
Total revenue | 393,289 | 2,784 | 572,774 | 5,718 |
Cruise operating expense | ||||
Total cruise operating expense | 96,155 | 1,276 | 128,705 | 2,535 |
Payroll and related | ||||
Cruise operating expense | ||||
Total cruise operating expense | 262,580 | 86,647 | 503,307 | 168,785 |
Fuel | ||||
Cruise operating expense | ||||
Total cruise operating expense | 181,189 | 54,090 | 316,698 | 96,693 |
Food | ||||
Cruise operating expense | ||||
Total cruise operating expense | 61,157 | 4,334 | 100,673 | 10,642 |
Other | ||||
Cruise operating expense | ||||
Total cruise operating expense | $ 216,045 | $ 96,816 | $ 415,198 | $ 156,330 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net loss | $ (43,305) | $ (867,524) | $ (1,113,583) | $ (2,189,986) |
Other comprehensive income (loss): | ||||
Shipboard Retirement Plan | 94 | 99 | 2,570 | 197 |
Cash flow hedges: | ||||
Net unrealized gain (loss) | (90,503) | 44,674 | (51,199) | (28,363) |
Amount realized and reclassified into earnings | (36,075) | 13,542 | (43,577) | 35,380 |
Total other comprehensive income (loss) | (126,484) | 58,315 | (92,206) | 7,214 |
Total comprehensive loss | $ (169,789) | $ (809,209) | $ (1,205,789) | $ (2,182,772) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 1,897,269 | $ 1,500,357 |
Short-term investments. | 240,000 | |
Accounts receivable, net | 598,256 | 1,167,473 |
Inventories | 154,397 | 118,205 |
Prepaid expenses and other assets | 470,984 | 264,691 |
Total current assets | 3,120,906 | 3,290,726 |
Property and equipment, net | 13,641,345 | 13,528,806 |
Goodwill | 98,134 | 98,134 |
Trade names | 500,525 | 500,525 |
Other long-term assets | 1,741,449 | 1,300,804 |
Total assets | 19,102,359 | 18,718,995 |
Current liabilities: | ||
Current portion of long-term debt | 1,005,198 | 876,890 |
Accounts payable | 100,336 | 233,172 |
Accrued expenses and other liabilities | 1,596,374 | 1,058,401 |
Due to NCLH | 39,512 | 37,995 |
Advance ticket sales | 2,331,203 | 1,561,336 |
Total current liabilities | 5,072,623 | 3,767,794 |
Long-term debt | 10,067,535 | 9,863,980 |
Exchangeable notes | 1,889,931 | 1,801,517 |
Other long-term liabilities | 938,561 | 997,055 |
Total liabilities | 17,968,650 | 16,430,346 |
Commitments and contingencies (Note 10) | ||
Shareholders' equity: | ||
Preference shares (Series A-1: $1,000 par value; 2,000,000 shares authorized; 0 shares issued and outstanding at June 30, 2022 and Dec. 31, 2021; Series A-3: $1,000 par value; 1,000,000 shares authorized; 0 shares issued and outstanding at June 30, 2022 and Dec. 31, 2021; Series A-4: $1,000 par value; 2,000,000 shares authorized; 0 shares issued and outstanding at June 30, 2022 and Dec. 31, 2021; Series A-5: $1,000 par value; 1,000,000 shares authorized; 0 shares issued and outstanding at June 30, 2022) | ||
Ordinary shares ($0.0012 par value; 40,000,000 shares authorized; 31,164,004 shares issued and outstanding at June 30, 2022 and December 31, 2021) | 37 | 37 |
Additional paid-in capital | 8,540,619 | 8,489,770 |
Accumulated other comprehensive income (loss) | (379,005) | (286,799) |
Accumulated deficit | (7,027,942) | (5,914,359) |
Total shareholders' equity | 1,133,709 | 2,288,649 |
Total liabilities and shareholders' equity | $ 19,102,359 | $ 18,718,995 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2022 | Dec. 31, 2021 |
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-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 |
Series A-4 | ||
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-5 | ||
Preferred shares, par value (per share) | $ 1,000 | |
Preferred shares, authorized | 1,000,000 | |
Preferred shares, issued | 0 | |
Preferred shares, outstanding | 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities | ||
Net loss | $ (1,113,583) | $ (2,189,986) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization expense | 435,387 | 415,000 |
(Gain) loss on derivatives | (421,713) | 402,102 |
Loss on extinguishment of debt | 188,433 | 237,065 |
Provision for bad debts and inventory obsolescence | 2,500 | 7,211 |
Gain on involuntary conversion of assets | (1,880) | (1,817) |
Share-based compensation expense | 62,840 | 49,052 |
Net foreign currency adjustments | (12,063) | (3,767) |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 566,265 | (408,120) |
Inventories | (36,748) | (9,956) |
Prepaid expenses and other assets | (542,410) | (242,630) |
Accounts payable | (127,188) | 26,205 |
Accrued expenses and other liabilities | 137,507 | 45,783 |
Advance ticket sales | 755,189 | 191,609 |
Net cash used in operating activities | (107,464) | (1,482,249) |
Cash flows from investing activities | ||
Additions to property and equipment, net | (326,303) | (309,481) |
Purchases of short-term investments | (385,000) | |
Proceeds from maturities of short-term investments | 240,000 | |
Cash paid on settlement of derivatives | (8,559) | |
Other | 5,237 | 2,825 |
Net cash used in investing activities | (81,066) | (700,215) |
Cash flows from financing activities | ||
Repayments of long-term debt | (1,268,888) | (879,679) |
Proceeds from long-term debt | 2,073,175 | 1,223,110 |
Due to NCLH, net | 1,517 | 1,323 |
Contribution from NCLH | 1,558,957 | |
Net share settlement of restricted share units | (11,991) | (16,658) |
Early redemption premium | (172,012) | (611,164) |
Deferred financing fees and other | (36,359) | (28,532) |
Net cash provided by financing activities | 585,442 | 1,247,357 |
Net increase (decrese) in cash and cash equivalents | 396,912 | (935,107) |
Cash and cash equivalents at beginning of period | 1,500,357 | 3,299,340 |
Cash and cash equivalents at end of period | $ 1,897,269 | $ 2,364,233 |
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) | Accumulated Deficit | Total |
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 | (5,914,359) | ||||
Balance at Dec. 31, 2021 | 37 | 8,489,770 | (286,799) | (5,914,359) | 2,288,649 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Share-based compensation | 62,840 | 62,840 | |||
Net share settlement of restricted share units | (11,991) | (11,991) | |||
Other comprehensive income (loss), net | (92,206) | (92,206) | |||
Net loss | (1,113,583) | (1,113,583) | |||
Balance at Jun. 30, 2022 | 37 | 8,540,619 | (379,005) | (7,027,942) | 1,133,709 |
Balance at Mar. 31, 2022 | 37 | 8,510,601 | (252,521) | (6,984,637) | 1,273,480 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Share-based compensation | 30,048 | 30,048 | |||
Net share settlement of restricted share units | (30) | (30) | |||
Other comprehensive income (loss), net | (126,484) | (126,484) | |||
Net loss | (43,305) | (43,305) | |||
Balance at Jun. 30, 2022 | $ 37 | $ 8,540,619 | $ (379,005) | $ (7,027,942) | 1,133,709 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative change in accounting policy | $ (7,027,942) |
Description of Business and Org
Description of Business and Organization | 6 Months Ended |
Jun. 30, 2022 | |
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, 2022, we had 28 ships with approximately 59,150 Berths and had orders for nine additional ships to be delivered through 2027. Due to COVID-19, we temporarily suspended all global cruise voyages from March 2020 until July 2021, when we resumed cruise voyages on a limited basis. We refer you to Note 2 – “Summary of Significant Accounting Policies” for further information. Norwegian Prima was delivered in July 2022. We refer you to Note 14 – “Subsequent Event” for additional information. We have five additional Prima Class Ships on order with expected delivery dates from 2023 through 2027. 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. These additions to our fleet will increase our total Berths to approximately 83,000. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
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, 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. In the third quarter of 2021, we began a phased relaunch of certain cruise voyages with our ships initially operating at reduced occupancy levels. In early May 2022, the Company completed the phased relaunch of its entire fleet with all ships now in operation with guests on board. Significant events affecting travel typically have an impact on demand for cruise vacations, with the full extent of the impact determined by the length of time the event influences travel decisions. The level of occupancy on our ships 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 of COVID-19 or the emergence of other public health crises, our ability to comply with governmental regulations and implement new health and safety protocols, port availability, travel restrictions, bans and advisories, and our ability to staff our ships. In addition, as a result of conditions associated with the COVID-19 pandemic and other global events, such as Russia’s invasion of Ukraine and actions taken by the United States and other governments in response to the invasion, the global economy, including the financial and credit markets, has recently experienced significant volatility and disruptions, including increases in inflation rates, fuel prices, and interest rates. These conditions have resulted, and may continue to result, in increased expenses and may also impact travel or consumer discretionary spending. We believe the ongoing effects of the foregoing factors and events on our operations and global bookings have had, and will continue to have, a significant impact on our financial results and liquidity. The estimation of our future cash flow projections includes numerous assumptions that are subject to various risks and uncertainties. Our principal assumptions for future cash flow projections include: ● Expected gradual return to historical occupancy levels; ● Expected increase in revenue per passenger cruise day through a combination of both passenger ticket and onboard revenue as compared to 2019; ● Forecasted cash collections in accordance with the terms of our credit card processing agreements (see Note 10 - “Commitments and Contingencies”); ● Expected continued expenses to maintain and comply with evolving health and safety protocols; and ● Expected continued higher fuel prices and the impact of inflation. We cannot make assurances that our assumptions used to estimate our liquidity requirements will not change due to the dynamic nature of the current economic landscape. Accordingly, the full effect of the COVID-19 pandemic and other global events impacting macroeconomic conditions and travel and consumer discretionary spending, including Russia’s invasion of Ukraine, on our financial performance and financial condition cannot be quantified at this time. We have made reasonable estimates and judgments of the impact of these events within our financial statements and there may be material changes to those estimates in future periods. 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 further opportunities to improve our liquidity. Based on these actions and assumptions as discussed above, and considering our cash and cash equivalents of $1.9 billion as of June 30, 2022 and the net impact of our $1 billion undrawn commitment less related fees (see Note 7 – “Long-Term Debt”), 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 and our resumption of cruise voyages was phased in gradually. The interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2021, which are included in our most recent Annual Report on Form 10-K filed with the SEC on March 1, 2022. Revisions to Previously Reported Quarterly Financial Statements During the fourth quarter of 2021, the Company identified an error in its consolidated balance sheet as of June 30, 2021 and consolidated statement of cash flows for the six months ended June 30, 2021. Based on their nature, certain amounts shown as cash and cash equivalents should have been classified as short-term investments. We have determined that these errors were not material to the previously issued interim financial statements for the period ended June 30, 2021. As a result of the error, the amounts previously reported as cash and cash equivalents have been reclassified to cash flows from investing activities in the consolidated statement of cash flows for the six months ended June 30, 2021 as follows (in thousands): Six months ended June 30, 2021 Previously As Reported Adjustments Reported Cash flows from investing activities Purchases of short-term investments $ — $ (385,000) $ (385,000) Net cash used in investing activities (315,215) (385,000) (700,215) Net increase (decrease) in cash and cash equivalents (550,107) (385,000) (935,107) Cash and cash equivalents at end of period 2,749,233 (385,000) 2,364,233 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. The resulting gains or losses are recognized in our consolidated statements of operations within other income (expense), net. We recognized gains of $36.4 million and $0.2 million for the three months ended June 30, 2022 and 2021, respectively, and gains of $44.7 million and $5.0 million for the six months ended June 30, 2022 and 2021, respectively, related to remeasurement of assets and liabilities denominated in foreign 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 included $455.4 million and $1.1 billion due from credit card processors as of June 30, 2022 and December 31, 2021, respectively. 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 |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2022 | |
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, 2022 2022 North America $ 673,503 $ 1,160,938 Europe 499,917 524,714 Asia-Pacific 13,362 21,654 South America 399 1,815 Total revenue $ 1,187,181 $ 1,709,121 Amounts for the comparative three and six months ended June 30, 2021 are excluded as the information is 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. 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 approximated 80-87% of total revenue over the preceding three fiscal years. 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, 2022, our receivables from customers were $62.5 million. Our cancellation policies permit certain guests to cancel cruises booked within certain windows for specified time periods up to 15 days prior to departure or in the event of a positive COVID-19 test, and the guests will receive future cruise credits. Certain cruises booked for certain periods will be permitted a 60-day or 75-day cancellation window for refunds. Future cruise credits that have been issued are generally 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. Our contract liabilities are included within advance ticket sales. As of June 30, 2022 and December 31, 2021, our contract liabilities were $1.4 billion and $161.8 million, respectively. Of the amounts included within contract liabilities as of June 30, 2022, approximately 40% were refundable in accordance with our cancellation policies. Of the deposits included within advance ticket sales, the vast majority 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, 2022, $120.2 million of revenue recognized was included in the contract liability balance at the beginning of the period. For cruise vacations that had been cancelled by us due to COVID-19, during the three months ended June 30, 2021, approximately $11.2 million, and during the six months ended June 30, 2022 and 2021, approximately $0.3 million and $26.0 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, 2022 | |
Leases [Abstract] | |
Leases | 4. Leases Operating lease balances were as follows (in thousands): Balance Sheet location June 30, 2022 December 31, 2021 Operating leases Right-of-use assets Other long-term assets $ 794,680 $ 794,187 Current operating lease liabilities Accrued expenses and other liabilities 40,278 34,407 Non-current operating lease liabilities Other long-term liabilities 667,126 670,688 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2022 | |
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, 2022 was as follows (in thousands): Six Months Ended June 30, 2022 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 $ (286,799) $ (280,343) $ (6,456) Current period other comprehensive income (loss) before reclassifications (48,818) (51,199) 2,381 Amounts reclassified into earnings (43,388) (43,577) (1) 189 (2) Accumulated other comprehensive income (loss) at end of period $ (379,005) $ (375,119) (3) $ (3,886) 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) $ (6,652) (1) We refer you to Note 8— “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 $87.9 million of gain expected to be reclassified into earnings in the next 12 months. |
Property and Equipment, net
Property and Equipment, net | 6 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment, Net [Abstract] | |
Property and Equipment, net | 6. Property and Equipment, net Property and equipment, net increased $112.5 million for the six months ended June 30, 2022 primarily due to ships under construction. |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2022 | |
Long-term Debt, Unclassified [Abstract] | |
Long-Term Debt | 7. Long-Term Debt In February 2022, NCLC conducted a private offering (the “Notes Offering”) of $1,000 million in aggregate principal amount of 5.875% senior secured notes due 2027 (the “2027 Secured Notes”) and $600 million in aggregate principal amount of 7.750% senior notes due 2029 (the “2029 Unsecured Notes”). The 2027 Secured Notes are jointly and severally guaranteed on a senior secured basis by Pride of Hawaii, LLC, Norwegian Epic, Ltd. and Sirena Acquisition. The 2027 Secured Notes and the related guarantees are secured by a first-priority interest in, among other things and subject to certain agreed security principles, three of our vessels, namely the Norwegian Jade vessel, the Norwegian Epic vessel and the Sirena vessel. NCLC may redeem the 2027 Secured Notes at its option, in whole or in part, at any time and from time to time prior to February 15, 2024, at a “make-whole” redemption price, plus accrued and unpaid interest and additional amounts, if any, to, but excluding, the redemption date. NCLC may redeem the 2027 Secured Notes at its option, in whole or in part, at any time and from time to time on or after February 15, 2024, at the redemption prices set forth in the indenture governing the 2027 Secured Notes, plus accrued and unpaid interest and additional amounts, if any, to, but excluding, the redemption date. At any time and from time to time prior to February 15, 2024, NCLC may choose to redeem up to 40% of the aggregate principal amount of the 2027 Secured 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 2027 Secured 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 2027 Secured Notes issued remains outstanding following such redemption. NCLC may redeem the 2029 Unsecured Notes at its option, in whole or in part, at any time and from time to time prior to November 15, 2028, at a “make-whole” redemption price, plus accrued and unpaid interest and additional amounts, if any, to, but excluding, the redemption date. NCLC may redeem the 2029 Unsecured Notes at its option, in whole or in part, at any time and from time to time on or after November 15, 2028, at a redemption price equal to 100% of the principal amount of 2029 Unsecured Notes redeemed, plus accrued and unpaid interest and additional amounts, if any, to, but excluding, the redemption date. At any time and from time to time prior to February 15, 2025, NCLC may choose to redeem up to 40% of the aggregate principal amount of the 2029 Unsecured Notes with the net proceeds of certain equity offerings, subject to certain restrictions, at a redemption price equal to 107.750% of the principal amount of the 2029 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 2029 Unsecured Notes issued remains outstanding following such redemption. The indentures governing the 2027 Secured Notes and the 2029 Unsecured Notes include requirements that, among other things and subject to a number of qualifications and exceptions, restrict our ability and the ability of our 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 our assets. In February 2022, NCLC also conducted a private offering (the “Exchangeable Notes Offering”) of $473.2 million in aggregate principal amount of 2.5% exchangeable senior notes due February 15, 2027 (the “2027 2.5% Exchangeable Notes”). The 2027 2.5% Exchangeable Notes are guaranteed by NCLH on a senior basis. At their option, holders may exchange their 2027 2.5% Exchangeable Notes for, at the election of NCLC, cash, ordinary shares of NCLH or a combination of cash and ordinary shares of NCLH, at any time prior to the close of business on the business day immediately preceding August 15, 2026, subject to the satisfaction of certain conditions and during certain periods, and on or after August 15, 2026 until the close of business on the business day immediately preceding the maturity date, regardless of whether such conditions have been met. If NCLC elects to satisfy its exchange obligation solely in ordinary shares or in a combination of ordinary shares and cash, upon exchange, the 2027 2.5% Exchangeable Notes will convert into redeemable preference shares of NCLC, which will be immediately and automatically exchanged, for each $1,000 principal amount of exchanged 2027 2.5% Exchangeable Notes, into a number of NCLH’s ordinary shares based on the exchange rate. The exchange rate will initially be 28.9765 ordinary shares per $1,000 principal amount of 2027 2.5% Exchangeable Notes (equivalent to an initial exchange price of approximately $34.51 per ordinary share). The maximum exchange rate is 44.1891 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 2027 2.5% Exchangeable Notes pay interest at NCLC has used, or will use, the net proceeds from the Notes Offering and the Exchangeable Notes Offering to redeem (the “Redemption”) all of the outstanding 2024 Senior Secured Notes and 2026 Senior Secured Notes and to make scheduled principal payments on debt maturing in 2022, including, in each case, to pay any accrued and unpaid interest thereon, as well as related premiums, fees and expenses. Simultaneously with the Redemption, and pursuant to certain provisions contained in the indentures governing the 2026 Senior Unsecured Notes and the 2028 Senior Unsecured Notes, each of the guarantors party to such indentures were released from their obligations thereunder. The resulting losses on extinguishments, which are recognized in interest expense, net, were $188.4 million for the six months ended June 30, 2022. In July 2022, the Company entered into a $1 billion amended and restated commitment letter with the purchasers named therein (collectively, the “Commitment Parties”), which supersedes a $1 billion commitment letter previously executed in November 2021. The amended commitment has been extended through March 31, 2023. Under the amended commitment, the Commitment Parties have agreed to purchase an aggregate of $1 billion of notes at NCLC’s option. NCLC has the option to make up to two draws, in which case NCLC will issue an aggregate of (i) $450 million principal amount of 8.0% senior secured notes due 2025 (the “Secured Notes”) and (ii) $550 million principal amount of 8.0% senior notes due three years after the issue date (the “Unsecured Notes” and, together with the Secured Notes, the “Notes”). The Secured Notes must be issued prior to the Unsecured Notes, and the principal amount of Secured Notes issuable will be increased to the extent that NCLC obtains an increase in obligations that may be secured by liens on collateral pursuant to the terms and conditions of NCLC’s debt agreements (with the principal amount of Unsecured Notes decreased commensurately). If drawn, the Secured Notes will be secured by first-priority interests in, among other things and subject to certain agreed security principles, shares of capital stock in certain guarantors, our material intellectual property and two islands that we use in the operations of our cruise business. The Secured Notes will also be guaranteed by our subsidiaries that own the property that secures the Secured Notes as well as certain additional subsidiaries whose assets do not secure the Secured Notes if drawn. If drawn, the Notes will be subject to a quarterly duration fee of Exchangeable Notes The following is a summary of NCLC’s exchangeable notes as of June 30, 2022 (in thousands): Unamortized Debt Discount, Principal including Deferred Net Carrying Fair Value Amount Financing Fees Amount Amount Leveling 2024 Exchangeable Notes $ 146,601 $ (37,250) $ 109,351 $ 157,902 Level 2 2025 Exchangeable Notes 450,000 (114,932) 335,068 423,477 Level 2 2027 1.125% Exchangeable Notes 1,150,000 (237,786) 912,214 738,323 Level 2 2027 2.5% Exchangeable Notes 473,175 (98,663) 374,512 323,595 Level 2 The following is a summary of NCLC’s exchangeable notes as of December 31, 2021 (in thousands): Unamortized Debt Discount, Principal including Deferred Net Carrying Fair Value Amount Financing Fees Amount Amount Leveling 2024 Exchangeable Notes $ 146,601 $ (44,772) $ 101,829 $ 249,358 Level 2 2025 Exchangeable Notes 450,000 (128,603) 321,397 642,591 Level 2 2027 1.125% Exchangeable Notes 1,150,000 (259,380) 890,620 1,088,510 Level 2 The following provides a summary of the interest expense of NCLC’s exchangeable notes (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 Coupon interest $ 13,924 $ 18,985 $ 26,916 $ 43,125 Amortization of discount and deferred financing fees 26,259 24,150 49,207 47,763 Total $ 40,183 $ 43,135 $ 76,123 $ 90,888 The effective interest rate is 22.74%, 15.89%, 6.28% and 7.89% for the 2024 Exchangeable Notes, 2025 Exchangeable Notes, 2027 1.125% Exchangeable Notes and 2027 2.5% Exchangeable Notes, respectively. Debt Repayments The following are scheduled principal repayments on our long-term debt including finance lease obligations as of June 30, 2022 for each of the following periods (in thousands): Year Amount Remainder of 2022 $ 529,276 2023 937,406 2024 3,686,473 2025 1,070,738 2026 1,973,939 2027 3,024,927 Thereafter 2,201,918 Total $ 13,424,677 Debt Covenants During the year ended December 31, 2021, we amended certain financial and other debt covenants and added new free liquidity requirements. As of June 30, 2022, taking into account such amendments, we were in compliance with all of our debt covenants. If we do not continue to remain in compliance with our covenants, we would have to seek additional amendments to or waivers of our covenants. However, no assurances can be made that such amendments or waivers 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, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Derivatives | 8. Fair Value Measurements and Derivatives Fair value is defined as the price at which an orderly transaction to sell an asset or to transfer a liability would take place between market participants at the measurement date under current market conditions (that is, an exit price at the measurement date from the perspective of a market participant that holds the asset or owes the liability). Fair Value Hierarchy The following hierarchy for inputs used in measuring fair value should maximize the use of observable inputs and minimize the use of unobservable inputs by requiring that the most observable inputs be used when available: Level 1 Quoted prices in active markets for identical assets or liabilities that are accessible at the measurement dates. Level 2 Significant other observable inputs that are used by market participants in pricing the asset or liability based on market data obtained from independent sources. Level 3 Significant unobservable inputs we believe market participants would use in pricing the asset or liability based on the best information available. Derivatives We are exposed to market risk attributable to changes in interest rates, foreign currency exchange rates and fuel prices. We attempt to minimize these risks through a combination of our normal operating and financing activities and through the use of derivatives. We assess whether derivatives used in hedging transactions are “highly effective” in offsetting changes in the cash flow of our hedged forecasted transactions. We use regression analysis for this hedge relationship and high effectiveness is achieved when a statistically valid relationship reflects a high degree of offset and correlation between the fair values of the derivative and the hedged forecasted transaction. 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, 2022, we had fuel swaps, which are used to mitigate the financial impact of volatility of fuel prices pertaining to approximately 286 thousand metric tons of our projected fuel purchases, maturing through December 31, 2023. As of June 30, 2022, we had approximately 173 thousand metric tons which were not designated as cash flow hedges maturing through December 31, 2023. As of June 30, 2022, 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 hedged foreign currency forward contracts was €2.5 billion, or $2.6 billion based on the euro/U.S. dollar exchange rate as of June 30, 2022. During the three months ended June 30, 2022, we entered into foreign currency forward contracts used as economic hedges to mitigate the financial impact of volatility in foreign currency exchange rates related to our accrued ship construction payments denominated in euros. As of June 30, 2022, the notional amount of these foreign currency forward contracts was €0.3 billion, or $0.3 billion based on the euro/U.S. dollar exchange rate as of June 30, 2022. As of June 30, 2022, we had conversion options embedded in our exchangeable notes. The notional amounts of our outstanding options as of June 30, 2022 were 10.7 million, 24.0 million, 34.1 million and 13.7 million NCLH shares for the 2024 Exchangeable Notes, 2025 Exchangeable Notes, 2027 1.125% Exchangeable Notes and 2027 2.5% 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 2022 2021 2022 2021 Derivative Contracts Designated as Hedging Instruments Fuel contracts Prepaid expenses and other assets $ 97,263 $ 29,349 $ — $ — Other long-term assets 33,093 19,554 — — Foreign currency contracts Prepaid expenses and other assets — 4,898 — — Accrued expenses and other liabilities — — 322,523 98,592 Other long-term liabilities — — 41,177 73,496 Interest rate contracts Accrued expenses and other liabilities — — — 469 Total derivatives designated as hedging instruments $ 130,356 $ 53,801 $ 363,700 $ 172,557 Derivative Contracts Not Designated as Hedging Instruments Fuel contracts Prepaid expenses and other assets $ 22,924 $ 10,836 $ — $ — Other long-term assets 6,790 3,476 44 — Foreign currency contracts Accrued expenses and other liabilities — — 11,277 — Debt conversion options Exchangeable notes — — 158,786 487,671 Total derivatives not designated as hedging instruments $ 29,714 $ 14,312 $ 170,107 $ 487,671 Total derivatives $ 160,070 $ 68,113 $ 533,807 $ 660,228 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, 2022 Amounts Offset Amounts Not Offset Net Amounts Assets $ 160,070 $ (44) $ 160,026 $ — $ 160,026 Liabilities 533,763 — 533,763 (533,763) — Gross Gross Gross Amounts Total Net Amounts December 31, 2021 Amounts Offset Amounts Not Offset Net Amounts Assets $ 68,113 $ — $ 68,113 $ (68,113) $ — Liabilities 660,228 — 660,228 (660,228) — 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, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Fuel contracts $ 52,249 $ 25,456 Fuel $ 37,342 $ (8,652) Fuel contracts — — Other income (expense), net — (1,538) Foreign currency contracts (142,752) 19,281 Depreciation and amortization (1,267) (1,266) Interest rate contracts — (63) Interest expense, net — (2,086) Total gain (loss) recognized in other comprehensive loss $ (90,503) $ 44,674 $ 36,075 $ (13,542) 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, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Fuel contracts $ 144,732 $ 49,506 Fuel $ 46,151 $ (16,823) Fuel contracts — — Other income (expense), net — (11,728) Foreign currency contracts (195,931) (78,160) Depreciation and amortization (2,534) (2,533) Interest rate contracts — 291 Interest expense, net (40) (4,296) Total gain (loss) recognized in other comprehensive loss $ (51,199) $ (28,363) $ 43,577 $ (35,380) The effects of cash flow hedge accounting on the consolidated statements of operations include the following (in thousands): Three Months Ended June 30, 2022 Three Months Ended June 30, 2021 Depreciation Depreciation and Interest and Interest Other Income Fuel Amortization 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 $ 181,189 $ 181,587 $ 167,805 $ 54,090 $ 174,262 $ 179,448 $ (82,627) Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into income (expense) Fuel contracts 37,342 — — (8,652) — — — Foreign currency contracts — (1,267) — — (1,266) — — Interest rate contracts — — — — — (2,086) — 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) Six Months Ended June 30, 2022 Six Months Ended June 30, 2021 Depreciation Depreciation and Interest and Interest Other Income Fuel Amortization 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 $ 316,698 $ 360,663 $ 516,129 $ 96,693 $ 344,578 $ 639,780 $ (371,892) Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into income (expense) Fuel contracts 46,151 — — (16,823) — — — Foreign currency contracts — (2,534) — — (2,533) — — Interest rate contracts — — (40) — — (4,296) — 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) 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) 2022 2021 2022 2021 Derivatives not designated as hedging instruments Fuel contracts Other income (expense), net $ 4,335 $ 17,935 $ 34,078 $ 50,107 Foreign currency contracts Other income (expense), net (11,856) (57) (11,856) (57) Debt conversion options Other income (expense), net 488,759 (108,127) 421,760 (424,636) Long-Term Debt As of June 30, 2022 and December 31, 2021, the fair value of our long-term debt, including the current portion, was $11.6 billion and $12.5 billion, respectively, which was $1.5 billion and $0.2 billion lower, 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, 2022 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee Benefits and Compensation Plans | 9. 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 and May 2021, the plan was amended and restated (“Restated 2013 Plan”) pursuant to approval from the 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 to a maximum aggregate limit of 32,375,106 shares. In June 2022, NCLH’s shareholders approved a further amendment and restatement of the Restated 2013 Plan to increase the number of NCLH ordinary shares that may be delivered by 7,000,000 , resulting in an increase in the maximum aggregate limit to 39,375,106 shares. Restricted Share Unit Awards In March 2022, NCLH granted 4.8 million time-based restricted share unit awards to our employees, which primarily vest in substantially equal installments over three years. Additionally, in March 2022, NCLH granted 1.9 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 2024 and the satisfaction of an additional time-based vesting requirement that generally requires continued employment through March 1, 2025. The following is a summary of NCLH restricted share unit activity for the six months ended June 30, 2022: 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, 2022 7,771,623 $ 27.02 1,841,113 $ 35.68 50,000 $ 59.43 Granted 4,890,659 18.56 1,857,750 18.48 — — Vested (2,553,746) 36.06 (186,339) 55.27 — — Forfeited or expired (175,506) 22.96 (292,043) 35.59 — — Non-vested as of June 30, 2022 9,933,030 20.61 3,220,481 24.63 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, 2022 2021 2022 2021 Payroll and related expense $ 5,732 $ 4,735 $ 11,936 $ 9,700 Marketing, general and administrative expense 24,316 17,716 50,904 39,352 Total share-based compensation expense $ 30,048 $ 22,451 $ 62,840 $ 49,052 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 10. Commitments and Contingencies Ship Construction Contracts For the Norwegian brand, the first Prima Class Ship, Norwegian Prima, at approximately 143,500 Gross Tons and with 3,100 Berths, was delivered in July 2022. We refer you to Note 14 – “Subsequent Event” for additional information. We have five additional Prima Class Ships on order, each ranging from approximately 143,500 to 156,300 Gross Tons with approximately 3,100 to 3,550 Berths, with expected delivery dates from 2023 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, Russia’s invasion of Ukraine and/or other macroeconomic events are expected to 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, including Norwegian Prima, as of June 30, 2022 was approximately €7.7 billion, or $8.1 billion based on the euro/U.S. dollar exchange rate as of June 30, 2022. 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. Litigation Investigations 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 Norwegian Cruise Line Holdings Ltd. 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 (the “Havana Docks Matter”) alleges it holds an interest in the Havana Cruise Port Terminal and the complaint filed by Javier Garcia-Bengochea (the “Garcia-Bengochea Matter”) 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, as well as profiting from the Cuban Government’s possession of the property. 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. Discovery in the Havana Docks Matter has now concluded and appropriate motions for summary judgment were filed. On March 21, 2022, the court in the Havana Docks Matter issued an order granting the plaintiff’s motion for summary judgment on the issue of liability and scheduled a trial on damages only for September 2022, which was subsequently delayed until November 2022. The Company filed a motion for interlocutory appeal seeking to have the appellate court review the district court’s order granting summary judgment which was subsequently denied. On September 1, 2020, the court in the Garcia-Bengochea Matter entered an order staying all case deadlines and administratively closed the case pending the outcome of an 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, 2022, we are unable to reasonably estimate any potential loss or range of losses from these matters. The ability to make such estimates and judgments can be affected by various factors including, among other things: lack of legal precedent, stage of the proceedings, legal uncertainties inherent within the litigation process and involvement of numerous parties. However, if the plaintiffs prevail in the final outcome of these matters, there may be a material adverse impact on the Company’s financial condition or results of operations and cash flows. 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 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 $2.1 billion in advance ticket sales at June 30, 2022 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, 2022, we had cash reserves of approximately $1.0 billion with credit card processors, of which approximately $455.4 million is recognized in accounts receivable, net and approximately $508.2 million in other long-term assets. As of June 30, 2022, a portion of the cash reserves is classified as long-term due to a change in terms to a static reserve, as currently required by a credit card processor, subject to periodic review. We may be required to pledge additional collateral and/or post additional 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, 2022 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense), Net | 11. Other Income (Expense), Net For the three months ended June 30, 2022 and 2021, other income (expense), net was income of $519.7 million and expense of $82.6 million, respectively, and for the six months ended June 30, 2022 and 2021, was income of $490.9 million and expense of $371.9 million, respectively, primarily due to net gains and losses from conversion options on our exchangeable notes. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 6 Months Ended |
Jun. 30, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | 12. Supplemental Cash Flow Information For the six months ended June 30, 2022 and 2021, we had non-cash investing activities consisting of changes in accruals related to property and equipment of $145.5 million and $49.1 million, respectively. |
Related Party Disclosures
Related Party Disclosures | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Disclosures | 13. 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 an affiliate of L Catterton (the “Private Investor”). 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. |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Event | 14. Subsequent Event In July 2022, we took delivery of Norwegian Prima. We had export credit financing in place for 80% of the contract price. The associated $1.1 billion term loan bears interest at a fixed rate of 2.68% with a maturity date of July 31, 2034. Principal and interest payments are payable semiannually. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Liquidity and Management's Plan, Basis of Presentation | Liquidity and Management’s Plan Due to the impact of COVID-19, 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. In the third quarter of 2021, we began a phased relaunch of certain cruise voyages with our ships initially operating at reduced occupancy levels. In early May 2022, the Company completed the phased relaunch of its entire fleet with all ships now in operation with guests on board. Significant events affecting travel typically have an impact on demand for cruise vacations, with the full extent of the impact determined by the length of time the event influences travel decisions. The level of occupancy on our ships 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 of COVID-19 or the emergence of other public health crises, our ability to comply with governmental regulations and implement new health and safety protocols, port availability, travel restrictions, bans and advisories, and our ability to staff our ships. In addition, as a result of conditions associated with the COVID-19 pandemic and other global events, such as Russia’s invasion of Ukraine and actions taken by the United States and other governments in response to the invasion, the global economy, including the financial and credit markets, has recently experienced significant volatility and disruptions, including increases in inflation rates, fuel prices, and interest rates. These conditions have resulted, and may continue to result, in increased expenses and may also impact travel or consumer discretionary spending. We believe the ongoing effects of the foregoing factors and events on our operations and global bookings have had, and will continue to have, a significant impact on our financial results and liquidity. The estimation of our future cash flow projections includes numerous assumptions that are subject to various risks and uncertainties. Our principal assumptions for future cash flow projections include: ● Expected gradual return to historical occupancy levels; ● Expected increase in revenue per passenger cruise day through a combination of both passenger ticket and onboard revenue as compared to 2019; ● Forecasted cash collections in accordance with the terms of our credit card processing agreements (see Note 10 - “Commitments and Contingencies”); ● Expected continued expenses to maintain and comply with evolving health and safety protocols; and ● Expected continued higher fuel prices and the impact of inflation. We cannot make assurances that our assumptions used to estimate our liquidity requirements will not change due to the dynamic nature of the current economic landscape. Accordingly, the full effect of the COVID-19 pandemic and other global events impacting macroeconomic conditions and travel and consumer discretionary spending, including Russia’s invasion of Ukraine, on our financial performance and financial condition cannot be quantified at this time. We have made reasonable estimates and judgments of the impact of these events within our financial statements and there may be material changes to those estimates in future periods. 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 further opportunities to improve our liquidity. Based on these actions and assumptions as discussed above, and considering our cash and cash equivalents of $1.9 billion as of June 30, 2022 and the net impact of our $1 billion undrawn commitment less related fees (see Note 7 – “Long-Term Debt”), 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 and our resumption of cruise voyages was phased in gradually. The interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2021, which are included in our most recent Annual Report on Form 10-K filed with the SEC on March 1, 2022. |
Revisions to Previously Reported Quarterly Financial Statements | Revisions to Previously Reported Quarterly Financial Statements During the fourth quarter of 2021, the Company identified an error in its consolidated balance sheet as of June 30, 2021 and consolidated statement of cash flows for the six months ended June 30, 2021. Based on their nature, certain amounts shown as cash and cash equivalents should have been classified as short-term investments. We have determined that these errors were not material to the previously issued interim financial statements for the period ended June 30, 2021. As a result of the error, the amounts previously reported as cash and cash equivalents have been reclassified to cash flows from investing activities in the consolidated statement of cash flows for the six months ended June 30, 2021 as follows (in thousands): Six months ended June 30, 2021 Previously As Reported Adjustments Reported Cash flows from investing activities Purchases of short-term investments $ — $ (385,000) $ (385,000) Net cash used in investing activities (315,215) (385,000) (700,215) Net increase (decrease) in cash and cash equivalents (550,107) (385,000) (935,107) Cash and cash equivalents at end of period 2,749,233 (385,000) 2,364,233 |
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. The resulting gains or losses are recognized in our consolidated statements of operations within other income (expense), net. We recognized gains of $36.4 million and $0.2 million for the three months ended June 30, 2022 and 2021, respectively, and gains of $44.7 million and $5.0 million for the six months ended June 30, 2022 and 2021, respectively, related to remeasurement of assets and liabilities denominated in foreign 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 included $455.4 million and $1.1 billion due from credit card processors as of June 30, 2022 and December 31, 2021, respectively. |
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 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of impact of changes to previously reported consolidated statement of cash flows | As a result of the error, the amounts previously reported as cash and cash equivalents have been reclassified to cash flows from investing activities in the consolidated statement of cash flows for the six months ended June 30, 2021 as follows (in thousands): Six months ended June 30, 2021 Previously As Reported Adjustments Reported Cash flows from investing activities Purchases of short-term investments $ — $ (385,000) $ (385,000) Net cash used in investing activities (315,215) (385,000) (700,215) Net increase (decrease) in cash and cash equivalents (550,107) (385,000) (935,107) Cash and cash equivalents at end of period 2,749,233 (385,000) 2,364,233 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of revenues by destination | Three Months Ended Six Months Ended June 30, June 30, 2022 2022 North America $ 673,503 $ 1,160,938 Europe 499,917 524,714 Asia-Pacific 13,362 21,654 South America 399 1,815 Total revenue $ 1,187,181 $ 1,709,121 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Schedule of lease balances | Operating lease balances were as follows (in thousands): Balance Sheet location June 30, 2022 December 31, 2021 Operating leases Right-of-use assets Other long-term assets $ 794,680 $ 794,187 Current operating lease liabilities Accrued expenses and other liabilities 40,278 34,407 Non-current operating lease liabilities Other long-term liabilities 667,126 670,688 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Statement Of Income And Comprehensive Income [Abstract] | |
Schedule of accumulated other comprehensive income (loss) | Six Months Ended June 30, 2022 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 $ (286,799) $ (280,343) $ (6,456) Current period other comprehensive income (loss) before reclassifications (48,818) (51,199) 2,381 Amounts reclassified into earnings (43,388) (43,577) (1) 189 (2) Accumulated other comprehensive income (loss) at end of period $ (379,005) $ (375,119) (3) $ (3,886) 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) $ (6,652) |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of convertible debt instruments | The following is a summary of NCLC’s exchangeable notes as of June 30, 2022 (in thousands): Unamortized Debt Discount, Principal including Deferred Net Carrying Fair Value Amount Financing Fees Amount Amount Leveling 2024 Exchangeable Notes $ 146,601 $ (37,250) $ 109,351 $ 157,902 Level 2 2025 Exchangeable Notes 450,000 (114,932) 335,068 423,477 Level 2 2027 1.125% Exchangeable Notes 1,150,000 (237,786) 912,214 738,323 Level 2 2027 2.5% Exchangeable Notes 473,175 (98,663) 374,512 323,595 Level 2 The following is a summary of NCLC’s exchangeable notes as of December 31, 2021 (in thousands): Unamortized Debt Discount, Principal including Deferred Net Carrying Fair Value Amount Financing Fees Amount Amount Leveling 2024 Exchangeable Notes $ 146,601 $ (44,772) $ 101,829 $ 249,358 Level 2 2025 Exchangeable Notes 450,000 (128,603) 321,397 642,591 Level 2 2027 1.125% Exchangeable Notes 1,150,000 (259,380) 890,620 1,088,510 Level 2 |
Schedule of interest expense of convertible debt instruments | The following provides a summary of the interest expense of NCLC’s exchangeable notes (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 Coupon interest $ 13,924 $ 18,985 $ 26,916 $ 43,125 Amortization of discount and deferred financing fees 26,259 24,150 49,207 47,763 Total $ 40,183 $ 43,135 $ 76,123 $ 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, 2022 for each of the following periods (in thousands): Year Amount Remainder of 2022 $ 529,276 2023 937,406 2024 3,686,473 2025 1,070,738 2026 1,973,939 2027 3,024,927 Thereafter 2,201,918 Total $ 13,424,677 |
Fair Value Measurements and D_2
Fair Value Measurements and Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 2022 2021 2022 2021 Derivative Contracts Designated as Hedging Instruments Fuel contracts Prepaid expenses and other assets $ 97,263 $ 29,349 $ — $ — Other long-term assets 33,093 19,554 — — Foreign currency contracts Prepaid expenses and other assets — 4,898 — — Accrued expenses and other liabilities — — 322,523 98,592 Other long-term liabilities — — 41,177 73,496 Interest rate contracts Accrued expenses and other liabilities — — — 469 Total derivatives designated as hedging instruments $ 130,356 $ 53,801 $ 363,700 $ 172,557 Derivative Contracts Not Designated as Hedging Instruments Fuel contracts Prepaid expenses and other assets $ 22,924 $ 10,836 $ — $ — Other long-term assets 6,790 3,476 44 — Foreign currency contracts Accrued expenses and other liabilities — — 11,277 — Debt conversion options Exchangeable notes — — 158,786 487,671 Total derivatives not designated as hedging instruments $ 29,714 $ 14,312 $ 170,107 $ 487,671 Total derivatives $ 160,070 $ 68,113 $ 533,807 $ 660,228 |
Schedule of gross and net amounts recognized within assets and liabilities | 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, 2022 Amounts Offset Amounts Not Offset Net Amounts Assets $ 160,070 $ (44) $ 160,026 $ — $ 160,026 Liabilities 533,763 — 533,763 (533,763) — Gross Gross Gross Amounts Total Net Amounts December 31, 2021 Amounts Offset Amounts Not Offset Net Amounts Assets $ 68,113 $ — $ 68,113 $ (68,113) $ — Liabilities 660,228 — 660,228 (660,228) — |
Schedule of cash flow hedges included in accumulated other comprehensive income | 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, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Fuel contracts $ 52,249 $ 25,456 Fuel $ 37,342 $ (8,652) Fuel contracts — — Other income (expense), net — (1,538) Foreign currency contracts (142,752) 19,281 Depreciation and amortization (1,267) (1,266) Interest rate contracts — (63) Interest expense, net — (2,086) Total gain (loss) recognized in other comprehensive loss $ (90,503) $ 44,674 $ 36,075 $ (13,542) 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, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Fuel contracts $ 144,732 $ 49,506 Fuel $ 46,151 $ (16,823) Fuel contracts — — Other income (expense), net — (11,728) Foreign currency contracts (195,931) (78,160) Depreciation and amortization (2,534) (2,533) Interest rate contracts — 291 Interest expense, net (40) (4,296) Total gain (loss) recognized in other comprehensive loss $ (51,199) $ (28,363) $ 43,577 $ (35,380) |
Schedule of effects of derivatives designated as cash flow hedges | The effects of cash flow hedge accounting on the consolidated statements of operations include the following (in thousands): Three Months Ended June 30, 2022 Three Months Ended June 30, 2021 Depreciation Depreciation and Interest and Interest Other Income Fuel Amortization 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 $ 181,189 $ 181,587 $ 167,805 $ 54,090 $ 174,262 $ 179,448 $ (82,627) Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into income (expense) Fuel contracts 37,342 — — (8,652) — — — Foreign currency contracts — (1,267) — — (1,266) — — Interest rate contracts — — — — — (2,086) — 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) Six Months Ended June 30, 2022 Six Months Ended June 30, 2021 Depreciation Depreciation and Interest and Interest Other Income Fuel Amortization 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 $ 316,698 $ 360,663 $ 516,129 $ 96,693 $ 344,578 $ 639,780 $ (371,892) Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into income (expense) Fuel contracts 46,151 — — (16,823) — — — Foreign currency contracts — (2,534) — — (2,533) — — Interest rate contracts — — (40) — — (4,296) — 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) |
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) 2022 2021 2022 2021 Derivatives not designated as hedging instruments Fuel contracts Other income (expense), net $ 4,335 $ 17,935 $ 34,078 $ 50,107 Foreign currency contracts Other income (expense), net (11,856) (57) (11,856) (57) Debt conversion options Other income (expense), net 488,759 (108,127) 421,760 (424,636) |
Employee Benefits and Compens_2
Employee Benefits and Compensation Plans (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
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, 2022 7,771,623 $ 27.02 1,841,113 $ 35.68 50,000 $ 59.43 Granted 4,890,659 18.56 1,857,750 18.48 — — Vested (2,553,746) 36.06 (186,339) 55.27 — — Forfeited or expired (175,506) 22.96 (292,043) 35.59 — — Non-vested as of June 30, 2022 9,933,030 20.61 3,220,481 24.63 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, 2022 2021 2022 2021 Payroll and related expense $ 5,732 $ 4,735 $ 11,936 $ 9,700 Marketing, general and administrative expense 24,316 17,716 50,904 39,352 Total share-based compensation expense $ 30,048 $ 22,451 $ 62,840 $ 49,052 |
Description of Business and O_2
Description of Business and Organization (Details) | Jun. 30, 2022 item |
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 2023 | |
Description Of Business And Organization [Line Items] | |
Number of additional ships | 1 |
Ships launching period in 2022 through 2027 | |
Description Of Business And Organization [Line Items] | |
Number of additional ships | 5 |
Ships launching period in 2023 through 2027 | |
Description Of Business And Organization [Line Items] | |
Number of additional ships | 5 |
Ships launching period in 2023 and 2025 | |
Description Of Business And Organization [Line Items] | |
Number of additional ships | 2 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Liquidity and Management's Plan (Details) $ in Billions | 1 Months Ended | 6 Months Ended |
Mar. 31, 2020 item | Jun. 30, 2022 USD ($) item | |
Debt Instrument [Line Items] | ||
Number of reporting units | 3 | |
Number of cruise ships | 28 | |
Substantial Doubt about Going Concern, within One Year [true false] | false | |
Unfunded Loan Commitment [Member] | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ | $ 1 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Revisions to Previously Reported Quarterly Financial Statements (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Current assets: | |||
Cash and cash equivalents | $ 1,897,269 | $ 2,364,233 | $ 1,500,357 |
Short-term investments. | $ 240,000 | ||
Cash flows from investing activities | |||
Purchases of short-term investments | (385,000) | ||
Proceeds from maturities of short-term investments | 240,000 | ||
Net cash used in investing activities | (81,066) | (700,215) | |
Net increase (decrease) in cash and cash equivalents | $ 396,912 | (935,107) | |
Previously reported | |||
Current assets: | |||
Cash and cash equivalents | 2,749,233 | ||
Cash flows from investing activities | |||
Net cash used in investing activities | (315,215) | ||
Net increase (decrease) in cash and cash equivalents | (550,107) | ||
Adjustments | Short term investments classification | |||
Current assets: | |||
Cash and cash equivalents | (385,000) | ||
Cash flows from investing activities | |||
Purchases of short-term investments | (385,000) | ||
Net cash used in investing activities | (385,000) | ||
Net increase (decrease) in cash and cash equivalents | $ (385,000) |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 USD ($) item | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) item | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Schedule Of Significant Accounting Policies [Line Items] | |||||
Foreign currency transaction gain (loss) | $ 36,400 | $ 200 | $ 44,700 | $ 5,000 | |
Accounts receivable, net | 598,256 | 598,256 | $ 1,167,473 | ||
Ship, carrying value | $ 13,641,345 | $ 13,641,345 | 13,528,806 | ||
Number of cruise ships | item | 28 | 28 | |||
Credit Card Processors | |||||
Schedule Of Significant Accounting Policies [Line Items] | |||||
Accounts receivable, net | $ 455,400 | $ 455,400 | $ 1,100,000 | ||
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, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 1,187,181 | $ 4,368 | $ 1,709,121 | $ 7,468 |
North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 673,503 | 1,160,938 | ||
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 499,917 | 524,714 | ||
Asia-Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 13,362 | 21,654 | ||
South America | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 399 | $ 1,815 |
Revenue Recognition (Details)
Revenue Recognition (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) segment | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Disaggregation of Revenue [Line Items] | ||||
Number of reportable segments | segment | 1 | |||
Receivables from customers included in accounts receivable, net | $ 62.5 | |||
Contract liabilities included within advance ticket sales | $ 1,400 | $ 161.8 | ||
Percentage refundable on cancellation | 40% | |||
Number of days prior to departure the cruises booked can be cancelled | 15 days | |||
Number of days prior to departure the cruises booked can be cancelled, certain cruises | 60 days | |||
Number of days prior to departure the cruises booked can be cancelled, certain cruises | 75 days | |||
Contract liability balance recognized in revenue | $ 120.2 | |||
Cost to obtain the contract | $ 11.2 | $ 0.3 | $ 26 | |
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 | 80% | |||
Revenue | Geographic Concentration Risk | Maximum | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of revenue attributable to U.S.- sourced passengers | 87% |
Leases - Lease Balances (Detail
Leases - Lease Balances (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Operating leases | ||
Right-of-use assets | $ 794,680 | $ 794,187 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets Noncurrent | Other Assets Noncurrent |
Current operating lease liabilities | $ 40,278 | $ 34,407 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued Liabilities And Other Liabilities Current | Accrued Liabilities And Other Liabilities Current |
Non-current operating lease liabilities | $ 667,126 | $ 670,688 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other Liabilities Noncurrent | Other Liabilities Noncurrent |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income (loss) at beginning of period | $ (286,799) | |
Accumulated other comprehensive income (loss) at end of period | (379,005) | |
Accumulated Other Comprehensive Income (Loss) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income (loss) at beginning of period | (286,799) | $ (241,830) |
Current period other comprehensive income (loss) before reclassifications | (48,818) | (28,363) |
Amounts reclassified into earnings | (43,388) | 35,577 |
Accumulated other comprehensive income (loss) at end of period | (379,005) | (234,616) |
Change Related to Cash Flow Hedges | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income (loss) at beginning of period | (280,343) | (234,981) |
Current period other comprehensive income (loss) before reclassifications | (51,199) | (28,363) |
Amounts reclassified into earnings | (43,577) | 35,380 |
Accumulated other comprehensive income (loss) at end of period | (375,119) | (227,964) |
Change Related to Shipboard Retirement Plan | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income (loss) at beginning of period | (6,456) | (6,849) |
Current period other comprehensive income (loss) before reclassifications | 2,381 | |
Amounts reclassified into earnings | 189 | 197 |
Accumulated other comprehensive income (loss) at end of period | $ (3,886) | $ (6,652) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Additional Information (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Change Related to Cash Flow Hedges | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Gain expected to be reclassified into earnings in next 12 months | $ 87.9 |
Property and Equipment, net (De
Property and Equipment, net (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Property, Plant and Equipment [Abstract] | |
Net increase in PPE due to ship improvement projects and ships under construction | $ 112.5 |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long-Term Debt - Additional Information (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Jul. 31, 2022 USD ($) item | Feb. 28, 2022 USD ($) $ / shares | Jun. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Nov. 30, 2021 USD ($) | |
Debt Instrument [Line Items] | ||||||
Loss on extinguishment of debt | $ (188,400,000) | $ (188,433,000) | $ (237,065,000) | |||
Exchangeable Senior Notes Due 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Effective interest rate | 22.74% | 22.74% | ||||
Exchangeable Senior Notes Due 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Effective interest rate | 15.89% | 15.89% | ||||
1.125% Exchangeable Senior Notes Due 2027 | ||||||
Debt Instrument [Line Items] | ||||||
Effective interest rate | 6.28% | 6.28% | ||||
2.5% Exchangeable Senior Notes Due 2027 | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount | $ 473,200,000 | |||||
Interest rate | 2.50% | |||||
Debt instrument amount | $ 1,000 | |||||
Ordinary share exchange rate | 28.9765 | |||||
Initial exchange price | $ / shares | $ 34.51 | |||||
Effective interest rate | 7.89% | 7.89% | ||||
2.5% Exchangeable Senior Notes Due 2027 | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Ordinary share exchange rate | 44.1891 | |||||
Senior Secured Notes Due 2027 | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount | $ 1,000,000,000 | |||||
Interest rate | 5.875% | |||||
Percentage of principal amount of debt redeemed | 40% | |||||
Percentage of threshold, after percentage | 60% | |||||
Senior Secured Notes Due 2027 | Debt Redemption Prior to February 15, 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price as a percentage of face amount | 105.875% | |||||
Senior Unsecured Notes Due 2029 | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount | $ 600,000,000 | |||||
Interest rate | 7.75% | |||||
Percentage of principal amount of debt redeemed | 40% | |||||
Percentage of threshold, after percentage | 60% | |||||
Senior Unsecured Notes Due 2029 | Debt Redemption Prior to February 15, 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price as a percentage of face amount | 107.75% | |||||
Senior Unsecured Notes Due 2029 | Debt Redemption On Or After November 15, 2028 | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price as a percentage of face amount | 100% | |||||
Commitment letter | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount | $ 1,000,000,000 | $ 1,000,000,000 | ||||
Commitment letter | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Number of draws | item | 2 | |||||
Senior Secured Notes Due 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount | $ 450,000,000 | |||||
Interest rate | 8% | |||||
Duration fee (as a percent) | 1.50% | |||||
Draw fee (as a percent) | 3% | |||||
Senior Unsecured Notes Due 2025 or 2026 | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount | $ 550,000,000 | |||||
Debt, period due after issue date | 3 years | |||||
Interest rate | 8% | |||||
Duration fee (as a percent) | 3% | |||||
Draw fee (as a percent) | 5% |
Long-Term Debt - Convertible De
Long-Term Debt - Convertible Debt Instrument (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Fair value | $ 11,600,000 | $ 12,500,000 |
Exchangeable Senior Notes Due 2024 | ||
Debt Instrument [Line Items] | ||
Principal amount | 146,601 | 146,601 |
Unamortized debt discount, including deferred financing fees | (37,250) | (44,772) |
Net carrying amount | 109,351 | 101,829 |
Exchangeable Senior Notes Due 2025 | ||
Debt Instrument [Line Items] | ||
Principal amount | 450,000 | 450,000 |
Unamortized debt discount, including deferred financing fees | (114,932) | (128,603) |
Net carrying amount | 335,068 | 321,397 |
1.125% Exchangeable Senior Notes Due 2027 | ||
Debt Instrument [Line Items] | ||
Principal amount | 1,150,000 | 1,150,000 |
Unamortized debt discount, including deferred financing fees | (237,786) | (259,380) |
Net carrying amount | 912,214 | 890,620 |
2.5% Exchangeable Senior Notes Due 2027 | ||
Debt Instrument [Line Items] | ||
Principal amount | 473,175 | |
Unamortized debt discount, including deferred financing fees | (98,663) | |
Net carrying amount | 374,512 | |
Level 2 | Exchangeable Senior Notes Due 2024 | ||
Debt Instrument [Line Items] | ||
Fair value | 157,902 | 249,358 |
Level 2 | Exchangeable Senior Notes Due 2025 | ||
Debt Instrument [Line Items] | ||
Fair value | 423,477 | 642,591 |
Level 2 | 1.125% Exchangeable Senior Notes Due 2027 | ||
Debt Instrument [Line Items] | ||
Fair value | 738,323 | $ 1,088,510 |
Level 2 | 2.5% Exchangeable Senior Notes Due 2027 | ||
Debt Instrument [Line Items] | ||
Fair value | $ 323,595 |
Long-Term Debt - Interest Expen
Long-Term Debt - Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Long-term Debt, Unclassified [Abstract] | ||||
Coupon interest | $ 13,924 | $ 18,985 | $ 26,916 | $ 43,125 |
Amortization of deferred financing costs | 26,259 | 24,150 | 49,207 | 47,763 |
Total | $ 40,183 | $ 43,135 | $ 76,123 | $ 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, 2022 USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
Remainder of 2022 | $ 529,276 |
2023 | 937,406 |
2024 | 3,686,473 |
2025 | 1,070,738 |
2026 | 1,973,939 |
2027 | 3,024,927 |
Thereafter | 2,201,918 |
Total | $ 13,424,677 |
Fair Value Measurements and D_3
Fair Value Measurements and Derivatives - Derivatives Measured at Fair Value and Disclosed by Balance Sheet Location (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | $ 160,070 | $ 68,113 |
Derivative liabilities, fair value | 533,763 | 660,228 |
Derivatives | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 160,070 | 68,113 |
Derivative liabilities, fair value | 533,807 | 660,228 |
Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 130,356 | 53,801 |
Derivative liabilities, fair value | 363,700 | 172,557 |
Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 29,714 | 14,312 |
Derivative liabilities, fair value | 170,107 | 487,671 |
Fuel contracts | Designated as Hedging Instrument | Prepaid expenses and other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 97,263 | 29,349 |
Fuel contracts | Designated as Hedging Instrument | Other long-term assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 33,093 | 19,554 |
Fuel contracts | Not Designated as Hedging Instrument | Prepaid expenses and other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 22,924 | 10,836 |
Fuel contracts | Not Designated as Hedging Instrument | Other long-term assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 6,790 | 3,476 |
Derivative liabilities, fair value | 44 | |
Foreign currency contracts | Designated as Hedging Instrument | Prepaid expenses and other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 4,898 | |
Foreign currency contracts | Designated as Hedging Instrument | Accrued expenses and other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities, fair value | 322,523 | 98,592 |
Foreign currency contracts | Designated as Hedging Instrument | Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities, fair value | 41,177 | 73,496 |
Foreign currency contracts | Not Designated as Hedging Instrument | Accrued expenses and other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities, fair value | 11,277 | |
Interest rate contracts | Designated as Hedging Instrument | Accrued expenses and other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities, fair value | 469 | |
Debt conversion options | Not Designated as Hedging Instrument | Exchangeable notes | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities, fair value | $ 158,786 | $ 487,671 |
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, 2022 | Dec. 31, 2021 |
Fair Value Disclosures [Abstract] | ||
Gross Amounts, Assets | $ 160,070 | $ 68,113 |
Gross Amounts Offset, Assets | (44) | |
Total Net Amounts, Assets | 160,026 | 68,113 |
Gross Amounts Not Offset, Assets | (68,113) | |
Net Amounts, Assets | 160,026 | |
Gross Amounts, Liabilities | 533,763 | 660,228 |
Total Net Amounts, Liabilities | 533,763 | 660,228 |
Gross Amount Not Offset, Liabilities | $ (533,763) | $ (660,228) |
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, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Other Comprehensive Loss | $ (90,503) | $ 44,674 | $ (51,199) | $ (28,363) |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Expense) | 36,075 | (13,542) | 43,577 | (35,380) |
Fuel | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Expense) | 37,342 | (8,652) | 46,151 | (16,823) |
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) | (11,728) | ||
Depreciation and amortization | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Expense) | (1,267) | (1,266) | (2,534) | (2,533) |
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) | (40) | (4,296) | |
Fuel contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Other Comprehensive Loss | 52,249 | 25,456 | 144,732 | 49,506 |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Expense) | 37,342 | (8,652) | ||
Fuel contracts | Fuel | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Expense) | 46,151 | (16,823) | ||
Foreign currency contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Other Comprehensive Loss | (142,752) | 19,281 | (195,931) | (78,160) |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Expense) | $ (1,267) | (1,266) | ||
Foreign currency contracts | Depreciation and amortization | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Expense) | (2,534) | (2,533) | ||
Interest rate contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Other Comprehensive Loss | (63) | 291 | ||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Expense) | $ (2,086) | |||
Interest rate contracts | Interest expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Expense) | $ (40) | $ (4,296) |
Fair Value Measurements and D_6
Fair Value Measurements and Derivatives - Effects of Cash Flow Hedge Accounting on Consolidated Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Fuel | $ 1,073,316 | $ 249,727 | $ 1,808,729 | $ 450,582 |
Depreciation and amortization | 181,587 | 174,262 | 360,663 | 344,578 |
Interest expense, net | 167,805 | 179,448 | 516,129 | 639,780 |
Other income (expense), net | 519,749 | (82,627) | 490,871 | (371,892) |
Fuel | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Fuel | 181,189 | 54,090 | 316,698 | 96,693 |
Cash Flow Hedging | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Other Comprehensive Loss | (90,503) | 44,674 | (51,199) | (28,363) |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Expense) | 36,075 | (13,542) | 43,577 | (35,380) |
Cash Flow Hedging | Fuel | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Expense) | 37,342 | (8,652) | 46,151 | (16,823) |
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) | (1,267) | (1,266) | (2,534) | (2,533) |
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) | (40) | (4,296) | |
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) | (11,728) | ||
Cash Flow Hedging | Fuel contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Other Comprehensive Loss | 52,249 | 25,456 | 144,732 | 49,506 |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Expense) | 37,342 | (8,652) | ||
Cash Flow Hedging | Fuel contracts | Fuel | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Expense) | 46,151 | (16,823) | ||
Cash Flow Hedging | Fuel contracts | 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) | (11,728) | ||
Cash Flow Hedging | Foreign currency contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Other Comprehensive Loss | (142,752) | 19,281 | (195,931) | (78,160) |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Expense) | $ (1,267) | (1,266) | ||
Cash Flow Hedging | Foreign currency contracts | Depreciation and amortization | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Expense) | (2,534) | (2,533) | ||
Cash Flow Hedging | Interest rate contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Other Comprehensive Loss | (63) | 291 | ||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Expense) | $ (2,086) | |||
Cash Flow Hedging | Interest rate contracts | Interest expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Expense) | $ (40) | $ (4,296) |
Fair Value Measurements and D_7
Fair Value Measurements and Derivatives - Effects of Derivatives Not Designated as Hedging Instruments on Consolidated Statements of Operations (Details) - Not Designated as Hedging Instrument - Other income (expense), net - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Fuel contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income | $ 4,335 | $ 17,935 | $ 34,078 | $ 50,107 |
Foreign currency contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income | (11,856) | (57) | (11,856) | (57) |
Debt conversion options | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income | $ 488,759 | $ (108,127) | $ 421,760 | $ (424,636) |
Fair Value Measurements and D_8
Fair Value Measurements and Derivatives (Details) T in Thousands, $ in Millions, € in Billions | 6 Months Ended | ||
Jun. 30, 2022 USD ($) T | Jun. 30, 2022 EUR (€) T | Dec. 31, 2021 USD ($) | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value of long-term debt | $ 11,600 | $ 12,500 | |
Fair value of long-term debt in excess of carrying value | $ 1,500 | $ 200 | |
Fuel contracts | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative maturing date | Dec. 31, 2023 | ||
Projected fuel purchases | T | 286 | 286 | |
Foreign currency contracts | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notional amount of derivatives | $ 2,600 | € 2.5 | |
Not Designated as Hedging Instrument | Fuel contracts | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Projected fuel purchases | T | 173 | 173 | |
Not Designated as Hedging Instrument | Foreign currency contracts for accrued ship construction payments | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notional amount of derivatives | $ 300 | € 0.3 | |
NCLH | Exchangeable Senior Notes Due 2024 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notional amount of derivatives | 10.7 | ||
NCLH | Exchangeable Senior Notes Due 2025 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notional amount of derivatives | 24 | ||
NCLH | 1.125% Exchangeable Senior Notes Due 2027 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notional amount of derivatives | 34.1 | ||
NCLH | 2.5% Exchangeable Senior Notes Due 2027 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notional amount of derivatives | $ 13.7 |
Employee Benefits and Compens_3
Employee Benefits and Compensation Plans (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | May 31, 2021 | Jan. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Payments related to tax withholding for share-based compensation | $ 11,991 | $ 16,658 | ||||
2013 Performance Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Ordinary shares authorized | 15,035,106 | |||||
Restated 2013 Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Ordinary shares authorized | 39,375,106 | 39,375,106 | 32,375,106 | |||
Number of additional shares authorized | 7,000,000 | |||||
Performance-Based Options | Members of management team | Awarded In March 2022 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,900,000 | |||||
Time-Based Awards | Employee | Awarded In March 2022 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 4,800,000 | |||||
Share-based award, vesting period | 3 years |
Employee Benefits and Compens_4
Employee Benefits and Compensation Plans - Summary of Restricted Share Units (Details) - Restricted Share Units | 6 Months Ended |
Jun. 30, 2022 $ / shares shares | |
Time-Based Awards | |
Number of Restricted Share | |
Non-vested as of January 1, 2021 | shares | 7,771,623 |
Restricted share unit awards granted | shares | 4,890,659 |
Vested | shares | (2,553,746) |
Forfeited or expired | shares | (175,506) |
Non-vested as of December 31, 2021 | shares | 9,933,030 |
Weighted-Average Grant-Date Fair Value | |
Non-vested as of January 1, 2021 | $ / shares | $ 27.02 |
Granted | $ / shares | 18.56 |
Vested | $ / shares | 36.06 |
Forfeited or expired | $ / shares | 22.96 |
Non-vested as of December 31, 2021 | $ / shares | $ 20.61 |
Performance-Based Options | |
Number of Restricted Share | |
Non-vested as of January 1, 2021 | shares | 1,841,113 |
Restricted share unit awards granted | shares | 1,857,750 |
Vested | shares | (186,339) |
Forfeited or expired | shares | (292,043) |
Non-vested as of December 31, 2021 | shares | 3,220,481 |
Weighted-Average Grant-Date Fair Value | |
Non-vested as of January 1, 2021 | $ / shares | $ 35.68 |
Granted | $ / shares | 18.48 |
Vested | $ / shares | 55.27 |
Forfeited or expired | $ / shares | 35.59 |
Non-vested as of December 31, 2021 | $ / shares | $ 24.63 |
Market-Based RSUs | |
Number of Restricted Share | |
Non-vested as of January 1, 2021 | shares | 50,000 |
Non-vested as of December 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 December 31, 2021 | $ / shares | $ 59.43 |
Employee Benefits and Compens_5
Employee Benefits and Compensation Plans - Summary of Compensation Expense Recognized for Share-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense | $ 30,048 | $ 22,451 | $ 62,840 | $ 49,052 |
Payroll and related | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense | 5,732 | 4,735 | 11,936 | 9,700 |
Marketing, general and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense | $ 24,316 | $ 17,716 | $ 50,904 | $ 39,352 |
Commitments and Contingencies (
Commitments and Contingencies (Details) € in Billions | Aug. 27, 2019 item | Jun. 30, 2022 USD ($) item T | Jun. 30, 2022 EUR (€) item T |
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 | |
Advance ticket sales with credit card processor | $ | $ 2,100,000,000 | ||
Number of lawsuits filed | 2 | ||
Credit Card Processors | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Reserves maintained credit card processor | $ | 1,000,000,000 | ||
Credit Card Processors | Accounts Receivable [Member] | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Reserves maintained credit card processor | $ | 455,400,000 | ||
Credit Card Processors | Other Long-Term Assets [Member] | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Reserves maintained credit card processor | $ | $ 508,200,000 | ||
Ships launching period in 2022 through 2027 | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Number of additional ships | 5 | 5 | |
Ships launching period in 2023 through 2027 | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Number of additional ships | 5 | 5 | |
Ships launching period in 2023 and 2025 | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Number of additional ships | 2 | 2 | |
Ship order delivery in 2023 | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Number of additional ships | 1 | 1 | |
Ship Construction Contracts | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Number of additional ships | 9 | 9 | |
Aggregate contract price of new ships based on the euro/U.S. dollar exchange rate | $ 8,100,000,000 | € 7.7 | |
Export credit facility financing as percentage of contract price | 80% | 80% | |
Ship Construction Contracts | Ships launching period in 2023 through 2027 | Minimum | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Capacity of ship, tons | T | 143,500 | 143,500 | |
Capacity of ship, berths | 3,100 | 3,100 | |
Ship Construction Contracts | Ships launching period in 2023 through 2027 | Maximum | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Capacity of ship, tons | T | 156,300 | 156,300 | |
Capacity of ship, berths | 3,550 | 3,550 | |
Ship Construction Contracts | Ships launching period in 2023 and 2025 | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Number of additional ships | 2 | 2 | |
Capacity of ship, tons | T | 67,000 | 67,000 | |
Capacity of ship, berths | 1,200 | 1,200 | |
Ship Construction Contracts | Ship order delivery in 2022 | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Capacity of ship, tons | $ | 143,500 | ||
Capacity of ship, berths | 3,100 | 3,100 | |
Ship Construction Contracts | Ship order delivery in 2023 | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Number of additional ships | 1 | 1 | |
Capacity of ship, tons | T | 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, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Other Income and Expenses [Abstract] | ||||
Other income (expense), net | $ 519,749 | $ (82,627) | $ 490,871 | $ (371,892) |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Supplemental Cash Flow Elements [Abstract] | ||
Non-cash investing activity in connection with property and equipment | $ 145.5 | $ 49.1 |
Related Party Disclosures (Deta
Related Party Disclosures (Details) - USD ($) $ in Billions | 1 Months Ended | ||
May 28, 2020 | Mar. 31, 2021 | Dec. 31, 2020 | |
Private Exchangeable Notes | |||
Related Party Transaction [Line Items] | |||
Repayment and extinguishment of debt, amount | $ 1 | ||
Private 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% | ||
L Catterton [Member] | Minimum | |||
Related Party Transaction [Line Items] | |||
Investor ownership threshold | 50% |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event $ in Billions | Jul. 31, 2022 USD ($) |
Subsequent Event [Line Items] | |
Export credit facility financing as percentage of contract price | 80% |
Leonardo Newbuild One Loan | |
Subsequent Event [Line Items] | |
Principal amount | $ 1.1 |
Interest rate | 2.68% |