Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 24, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | Norwegian Cruise Line Holdings Ltd. | ||
Entity Central Index Key | 1,513,761 | ||
Trading Symbol | nclh | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Well Known Seasoned Issuer | Yes | ||
Entity Common Stock Shares Outstanding | 227,310,627 | ||
Entity Public Float | $ 7.5 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenue | |||
Passenger ticket | $ 3,129,075 | $ 2,176,153 | $ 1,784,439 |
Onboard and other | 1,215,973 | 949,728 | 785,855 |
Total revenue | 4,345,048 | 3,125,881 | 2,570,294 |
Cruise operating expense | |||
Commissions, transportation and other | 765,298 | 503,722 | 455,816 |
Onboard and other | 272,802 | 224,000 | 195,526 |
Payroll and related | 666,110 | 452,647 | 340,430 |
Fuel | 358,650 | 326,231 | 303,439 |
Food | 179,641 | 168,240 | 136,785 |
Other | 412,948 | 271,784 | 225,663 |
Total cruise operating expense | 2,655,449 | 1,946,624 | 1,657,659 |
Other operating expense | |||
Marketing, general and administrative | 554,999 | 403,169 | 301,155 |
Depreciation and amortization | 432,114 | 273,147 | 215,593 |
Total other operating expense | 987,113 | 676,316 | 516,748 |
Operating income | 702,486 | 502,941 | 395,887 |
Non-operating income (expense) | |||
Interest expense, net | (221,909) | (151,754) | (282,602) |
Other income (expense) | (46,668) | (10,853) | 1,403 |
Total non-operating income (expense) | (268,577) | (162,607) | (281,199) |
Net income before income taxes | 433,909 | 340,334 | 114,688 |
Income tax benefit (expense) | (6,772) | 2,267 | (11,802) |
Net income | 427,137 | 342,601 | 102,886 |
Net income attributable to non-controlling interest | 4,249 | 1,172 | |
Net income attributable to Norwegian Cruise Line Holdings Ltd. | $ 427,137 | $ 338,352 | $ 101,714 |
Weighted-average shares outstanding | |||
Basic (in shares) | 226,591,437 | 206,524,968 | 202,993,839 |
Diluted (in shares) | 230,040,132 | 212,017,784 | 209,239,484 |
Earnings per share | |||
Basic (in dollars per share) | $ 1.89 | $ 1.64 | $ 0.50 |
Diluted (in dollars per share) | $ 1.86 | $ 1.62 | $ 0.49 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 427,137 | $ 342,601 | $ 102,886 |
Other comprehensive income (loss): | |||
Shipboard Retirement Plan | 1,102 | (2,311) | 2,538 |
Cash flow hedges: | |||
Net unrealized gain (loss) related to cash flow hedges | (262,852) | (238,436) | 2,247 |
Amount realized and reclassified into earnings | 91,742 | 13,354 | (4,128) |
Total other comprehensive income (loss) | (170,008) | (227,393) | 657 |
Total comprehensive income | 257,129 | 115,208 | 103,543 |
Comprehensive income attributable to non-controlling interest | 2,808 | 900 | |
Comprehensive income attributable to Norwegian Cruise Line Holdings Ltd. | $ 257,129 | $ 112,400 | $ 102,643 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 115,937 | $ 84,824 |
Accounts receivable, net | 44,996 | 32,432 |
Inventories | 58,173 | 56,555 |
Prepaid expenses and other assets | 121,305 | 109,924 |
Total current assets | 340,411 | 283,735 |
Property and equipment, net | 9,458,805 | 8,623,773 |
Goodwill | 1,388,931 | 1,388,931 |
Tradenames | 817,525 | 817,525 |
Other long-term assets | 259,085 | 355,032 |
Total assets | 12,264,757 | 11,468,996 |
Current liabilities: | ||
Current portion of long-term debt | 629,840 | 576,947 |
Accounts payable | 51,369 | 101,983 |
Accrued expenses and other liabilities | 640,568 | 552,514 |
Due to Affiliate | 20,769 | 37,948 |
Advance ticket sales | 1,023,973 | 817,207 |
Total current liabilities | 2,366,519 | 2,086,599 |
Long-term debt | 5,767,697 | 5,503,076 |
Due to Affiliate | 18,544 | |
Other long-term liabilities | 349,661 | 341,964 |
Total liabilities | $ 8,483,877 | $ 7,950,183 |
Commitments and contingencies (Note 12) | ||
Shareholders' equity: | ||
Ordinary shares, $.001 par value; 490,000,000 shares authorized; 232,179,786 shares issued and 227,815,301 shares outstanding at December 31, 2015 and 230,116,780 shares issued and 227,630,430 shares outstanding at December 31, 2014 | $ 232 | $ 230 |
Additional paid-in capital | 3,814,536 | 3,702,344 |
Accumulated other comprehensive income (loss) | (412,650) | (242,642) |
Retained earnings | 568,018 | 140,881 |
Treasury shares (4,364,485 and 2,486,350 ordinary shares at December 31, 2015 and December 31, 2014, respectively, at cost) | (189,256) | (82,000) |
Total shareholders' equity | 3,780,880 | 3,518,813 |
Total liabilities and shareholders' equity | $ 12,264,757 | $ 11,468,996 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Statement Of Financial Position [Abstract] | ||
Ordinary shares, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Ordinary shares, authorized | 490,000,000 | 490,000,000 |
Ordinary shares, issued | 232,179,786 | 230,116,780 |
Ordinary shares, outstanding | 227,815,301 | 227,630,430 |
Ordinary shares, treasury stock | 4,364,485 | 2,486,350 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities | |||
Net income | $ 427,137 | $ 342,601 | $ 102,886 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization expense | 450,335 | 304,877 | 245,111 |
Loss (gain) on derivatives | 26,525 | 7,274 | (861) |
Deferred income taxes, net | 1,269 | 6,187 | 2,844 |
Gain on contingent consideration | (43,400) | ||
Write-off of financing fees | 4,070 | 15,628 | 36,357 |
Provision for bad debts and inventory | 5,029 | ||
Share-based compensation expense | 42,209 | 14,617 | 23,075 |
Changes in operating assets and liabilities excluding the impact of the Acquisition of Prestige: | |||
Accounts receivable, net | (14,803) | (7,256) | (3,198) |
Inventories | (4,408) | (261) | (4,034) |
Prepaid expenses and other assets | (10,325) | (6,373) | (15,667) |
Accounts payable | (50,730) | 315 | 7,662 |
Accrued expenses and other liabilities | (8,343) | (18,061) | 25,925 |
Advance ticket sales | 218,260 | (23,947) | 55,181 |
Payment of original issue discount | (1,647) | ||
Net cash provided by operating activities | 1,041,178 | 635,601 | 475,281 |
Cash flows from investing activities | |||
Acquisition of Prestige, net of cash received | (826,686) | ||
Additions to property and equipment, net | (1,121,984) | (964,640) | (877,282) |
Settlement of derivatives | (83,519) | (5,334) | (17,569) |
Investment in intangible asset | (750) | ||
Net cash used in investing activities | (1,206,253) | (1,796,660) | (894,851) |
Cash flows from financing activities | |||
Repayments of long-term debt | (1,569,313) | (1,688,720) | (2,393,613) |
Repayments to Affiliate | (37,042) | (37,043) | (116,694) |
Proceeds from long-term debt | 1,855,809 | 3,107,721 | 2,522,311 |
Proceeds from the issuance of ordinary shares, net | 473,914 | ||
Proceeds from the exercise of share options | 69,127 | 5,857 | 2,020 |
Proceeds from employee share purchase plan | 858 | ||
Purchases of treasury shares | (107,256) | (82,000) | |
NCLC partnership tax distributions | (218) | ||
Deferred financing fees and other | (15,995) | (116,181) | (57,401) |
Net cash provided by financing activities | 196,188 | 1,189,416 | 430,537 |
Net increase in cash and cash equivalents | 31,113 | 28,357 | 10,967 |
Cash and cash equivalents at beginning of year | 84,824 | 56,467 | 45,500 |
Cash and cash equivalents at end of year | $ 115,937 | $ 84,824 | $ 56,467 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Ordinary Shares | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings (Deficit) | Treasury Shares | Non-controlling Interest | Total |
Balance at Dec. 31, 2012 | $ 25 | $ 2,327,097 | $ (17,619) | $ (299,185) | $ 8,466 | $ 2,018,784 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Share-based compensation | 33,056 | 19 | 33,075 | ||||
Transactions with Affiliates, net | (70) | (70) | |||||
Corporate Reorganization | (20,176) | 20,176 | |||||
IPO proceeds, net | 179 | 473,735 | 473,914 | ||||
Proceeds from the exercise of share options | 1 | 2,019 | 2,020 | ||||
Other comprehensive income (loss) | 929 | (272) | 657 | ||||
Net income | 101,714 | 1,172 | 102,886 | ||||
Transfers from non-controlling interest | 7,203 | (7,203) | |||||
Balance at Dec. 31, 2013 | 205 | 2,822,864 | (16,690) | (197,471) | 22,358 | 2,631,266 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Share-based compensation | 14,617 | 14,617 | |||||
Transactions with Affiliates, net | (59) | (59) | |||||
NCLC partnership tax distributions | (218) | (218) | |||||
Proceeds from the exercise of share options | 1 | 5,856 | 5,857 | ||||
Treasury shares | $ (82,000) | (82,000) | |||||
Acquisition of Prestige | 20 | 834,122 | 834,142 | ||||
Other comprehensive income (loss) | (225,952) | (1,441) | (227,393) | ||||
Net income | 338,352 | 4,249 | 342,601 | ||||
Transfers from non-controlling interest | 4 | 24,944 | $ (24,948) | ||||
Balance at Dec. 31, 2014 | 230 | 3,702,344 | (242,642) | 140,881 | (82,000) | 3,518,813 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Share-based compensation | 42,209 | 42,209 | |||||
Proceeds from the exercise of share options | 2 | 69,125 | 69,127 | ||||
Proceeds from employee share purchase plan | 858 | 858 | |||||
Treasury shares | (107,256) | (107,256) | |||||
Other comprehensive income (loss) | (170,008) | (170,008) | |||||
Net income | 427,137 | 427,137 | |||||
Balance at Dec. 31, 2015 | $ 232 | $ 3,814,536 | $ (412,650) | $ 568,018 | $ (189,256) | $ 3,780,880 |
Description of Business and Org
Description of Business and Organization | 12 Months Ended |
Dec. 31, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Description of Business and Organization | 1. Description of Business and Organization NCLH is a leading global cruise company which operates the Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises brands. We have 22 ships with approximately 45,000 Berths and will introduce five additional ships through 2019. Our ships currently offer itineraries to more than 510 destinations worldwide. Norwegian commenced operations from Miami in 1966. In February 2000, Genting HK acquired control of and subsequently became the sole owner of the Norwegian operations. In January 2008, the Apollo Holders acquired 50% of the outstanding ordinary share capital of NCLC. As part of this investment, the Apollo Holders assumed control of NCLC’s Board of Directors. Also, in January 2008, the TPG Viking Funds acquired, in the aggregate, 12.5% of NCLC’s outstanding share capital from the Apollo Holders. In February 2011, NCLH, a Bermuda limited company, was formed with the issuance to the Sponsors of, in aggregate, 10,000 ordinary shares, with a par value of $.001 per share. On January 24, 2013, NCLH consummated the IPO. In connection with the consummation of the IPO, the Sponsors’ ordinary shares in NCLC were exchanged for the ordinary shares of NCLH at a share exchange ratio of 1.0 to 8.42565 and NCLH became the owner of 100% of the ordinary shares and parent company of NCLC (the “Corporate Reorganization”). Accordingly, NCLH contributed $460.0 million to NCLC and the historical financial statements of NCLC became those of NCLH. The Corporate Reorganization was effected solely for the purpose of reorganizing our corporate structure. NCLH had not prior to the completion of the Corporate Reorganization conducted any activities other than those incidental to its formation and to preparations for the Corporate Reorganization and IPO. The Corporate Reorganization resulted in all parties being in the same economic position as they were immediately prior to the IPO. As the economic position of the investors did not change as part of the Corporate Reorganization it is considered a nonsubstantive merger from an accounting perspective. As a result of the Corporate Reorganization, NCLC was treated as a partnership for U.S. federal income tax purposes, and the terms of the partnership (including the economic rights with respect thereto) were set forth in an amended and restated tax agreement for NCLC. Economic interests in NCLC were represented by the partnership interests established under the tax agreement, which we refer to as “NCL Corporation Units.” The NCL Corporation Units held by NCLH (as a result of its ownership of 100% of the ordinary shares of NCLC) represented a 97.3% economic interest in NCLC as of the consummation of the IPO. The remaining 2.7% economic interest in NCLC as of the consummation of the IPO was in the form of Management NCL Corporation Units held by management (or former management). In November 2014, we completed the Acquisition of Prestige. In the fourth quarter of 2014, all Management NCL Corporation Units were exchanged for NCLH ordinary shares and restricted shares. NCLH became the sole member and 100% owner of the economic interests in NCLC and the non-controlling interest no longer exists. Accordingly, NCLC is now treated as a disregarded entity for U.S. federal income tax purposes. No new NCLC profits interests or Management NCL Corporation Units will be issued; however, NCLH has granted, and expects to continue to grant, equity to its employees and members of its Board of Directors under its long-term incentive plan. The Sponsors have completed numerous Secondary Equity Offerings and as of December 31, 2015 owned 29.3% of NCLH’s ordinary shares (we refer you to Note 8— “Related Party Disclosures”). |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation Our consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and contain all normal recurring adjustments necessary for a fair statement of the results for the periods presented. Estimates are required for the preparation of consolidated financial statements in accordance with generally accepted accounting principles and actual results could differ from these estimates. All significant intercompany accounts and transactions are eliminated in consolidation. Reclassification Certain amounts in prior periods have been reclassified to conform to the current period presentation. Cash and Cash Equivalents Cash and cash equivalents are stated at cost, and include cash and investments with original maturities of three months or less at acquisition and also include amounts due from credit card processors. Restricted Cash Restricted cash consists of cash collateral in respect of certain agreements and is included in prepaid expenses and other assets and other long-term assets in our consolidated balance sheets. Accounts Receivable, Net Accounts receivable are shown net of an allowance for doubtful accounts of $3.7 million and $2.8 million as of December 31, 2015 and 2014, respectively. Inventories Inventories mainly consist of provisions, supplies and fuel and are carried at the lower of cost or market using the first-in, first-out method of accounting. Advertising Costs Advertising costs are expensed as incurred except for those that result in tangible assets, including brochures, which are treated as prepaid expenses and charged to expense as consumed. Advertising costs of $12.5 million and $14.3 million as of December 31, 2015 and 2014, respectively, are included in prepaid expenses and other assets. Expenses related to advertising costs totaled $232.2 million, $122.5 million and $89.0 million for the years ended December 31, 2015, 2014 and 2013, respectively. Earnings Per Share Basic EPS is computed by dividing net income attributable to Norwegian Cruise Line Holdings Ltd. by the basic weighted-average number of shares outstanding during each period. Diluted EPS is computed by dividing net income by diluted weighted-average shares outstanding. A reconciliation between basic and diluted EPS was as follows (in thousands, except share and per share data): Year Ended December 31, 2015 2014 2013 Net income attributable to Norwegian Cruise Line Holdings Ltd. $ 427,137 $ 338,352 $ 101,714 Net income $ 427,137 $ 342,601 $ 102,886 Basic weighted-average shares outstanding 226,591,437 206,524,968 202,993,839 Potentially dilutive shares 3,448,695 5,492,816 6,245,645 Diluted weighted-average shares outstanding 230,040,132 212,017,784 209,239,484 Basic EPS $ 1.89 $ 1.64 $ 0.50 Diluted EPS $ 1.86 $ 1.62 $ 0.49 Property and Equipment, Net Property and equipment are recorded at cost. Major renewals and improvements that we believe add value to our ships are capitalized as a cost of the ship while costs of repairs and maintenance, including Dry-dock costs, are charged to expense as incurred. During ship construction, certain interest is capitalized as a cost of the ship. Gains or losses on the sale of property and equipment are recorded as a component of operating income (expense) in our consolidated statements of operations. Depreciation is computed on the straight-line basis over the estimated useful lives of the assets and after a 15% reduction for the estimated residual values of ships as follows: Useful Life Ships 30 years Computer hardware and software 3-10 years Other property and equipment 3-40 years Leasehold improvements Shorter of lease term or asset life Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term or related asset life. Long-lived assets are reviewed for impairment, based on estimated future cash flows, whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Assets are grouped and evaluated at the lowest level for which there are identifiable cash flows that are largely independent of the cash flows of other groups of assets. We consider historical performance and future estimated results in our evaluation of potential impairment and then compare the carrying amount of the asset to the estimated future cash flows expected to result from the use of the asset. If the carrying amount of the asset exceeds estimated expected undiscounted future cash flows, we measure the amount of the impairment by comparing the carrying amount of the asset to its fair value. We estimate fair value based on the best information available making whatever estimates, judgments and projections are considered necessary. The estimation of fair value is generally measured by discounting expected future cash flows at discount rates commensurate with the risk involved. Goodwill and Tradenames Goodwill represents the excess of cost over the fair value of net assets acquired. Goodwill and other indefinite-lived assets, principally tradenames, are reviewed for impairment on an annual basis or earlier if there is an event or change in circumstances that would indicate that the carrying value of these assets could not be fully recovered. We use the Step 0 Test which allows us to first assess qualitative factors to determine whether it is more likely than not (i.e., more than 50%) that the fair value of a reporting unit is less than its carrying value. In order to make this evaluation, we consider the following circumstances as well as others: · General macroeconomic conditions such as a deterioration in general economic conditions; limitations on accessing capital; fluctuations in foreign exchange rates; or other developments in equity and credit markets; · Industry and market conditions such as a deterioration in the environment in which an entity operates; an increased competitive environment; a decline in market-dependent multiples or metrics (in both absolute terms and relative to peers); a change in the market for an entity’s products or services; or a regulatory or political development; · Changes in cost factors that have a negative effect on earnings and cash flows; · Overall financial performance (for both actual and expected performance); · Entity and reporting unit specific events such as changes in management, key personnel, strategy, or customers; litigation; or a change in the composition or carrying amount of net assets; and · Share price (in both absolute terms and relative to peers). We also may conduct a quantitative assessment comparing the fair value of each reporting unit to its carrying value, including goodwill. This is called the Step I Test which consists of a combined approach using the expected future cash flows and market multiples to determine the fair value of the reporting units. Our discounted cash flow valuation reflects our projection for growth and profitability, taking into account our assessment of future market conditions and demand, as well as a determination of a cost of capital that incorporates both business and financial risks. We believe that the combined approach is the most representative method to assess fair value as it utilizes expectations of long-term growth as well as current market conditions. We have concluded that our business has three reporting units. Each brand, Oceania Cruises, Regent and Norwegian, constitutes a business for which discrete financial information is available and management regularly reviews the operating results and, therefore, each brand is considered an operating segment. Revenue and Expense Recognition Deposits received from guests for future voyages are recorded as advance ticket sales and are subsequently recognized as passenger ticket revenue along with onboard and other revenue, and all associated direct costs of a voyage are recognized as cruise operating expenses on a pro-rata basis over the period of the voyage. Revenue and expenses include port fees and taxes. The amounts included on a gross basis are $242.1 million, $212.3 million and $172.5 million for the years ended December 31, 2015, 2014 and 2013, respectively. Foreign Currency The majority of our transactions are settled in U.S. dollars. We translate assets and liabilities of our foreign subsidiaries at exchange rates in effect at the balance sheet date. Gains or losses resulting from transactions denominated in other currencies are recognized in our consolidated statements of operations within other income (expense) and such gains were approximately $11.0 million, $6.0 million and $0.4 million for the years ended December 31, 2015, 2014 and 2013, respectively. Derivative Instruments and Hedging Activity We enter into derivative contracts to reduce our exposure to fluctuations in foreign currency exchange rates, interest rates and fuel prices. The criteria used to determine whether a transaction qualifies for hedge accounting treatment includes the correlation between fluctuations in the fair value of the hedged item and the fair value of the related derivative instrument and its effectiveness as a hedge. As the derivative is marked to fair value, we elected an accounting policy to net the fair value of our derivatives when a master netting arrangement exists with our counterparties. A derivative instrument that hedges a forecasted transaction or the variability of cash flows related to a recognized asset or liability may be designated as a cash flow hedge. Changes in fair value of derivative instruments that are designated as cash flow hedges are recorded as a component of accumulated other comprehensive income (loss) until the underlying hedged transactions are recognized in earnings. To the extent that an instrument is not effective as a hedge, gains and losses are recognized in other income (expense) in our consolidated statements of operations. Realized gains and losses related to our effective fuel hedges are recognized in fuel expense. For presentation in our consolidated statements of cash flows, we have elected to classify the cash flows from our cash flow hedges in the same category as the cash flows from the items being hedged. Concentrations of Credit Risk 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 derivative instruments, our revolving credit facility and new ship progress payment guarantees, is not considered significant, as we primarily conduct business with large, well-established financial institutions and insurance companies that we have well-established relationships with and that have credit risks acceptable to us or the credit risk is spread out among a large number of creditors. We do not anticipate non-performance by any of our significant counterparties. Insurance We use a combination of insurance and self-insurance for a number of risks including claims related to crew and guests, hull and machinery, war risk, workers’ compensation, property damage and general liability. Liabilities associated with certain of these risks, including crew and passenger claims, are estimated actuarially based upon known facts, historical trends and a reasonable estimate of future expenses. While we believe these accruals are adequate, the ultimate losses incurred may differ from those recorded. Income Taxes Deferred tax assets and liabilities are calculated in accordance with the liability method. Deferred taxes are recorded using the currently enacted tax rates that apply in the periods that the differences are expected to reverse. Deferred taxes are not discounted. We provide a valuation allowance on deferred tax assets when it is more likely than not that such assets will not be realized. With respect to acquired deferred tax assets, future reversals of the valuation allowance will first be applied against goodwill and other intangible assets before recognition of a benefit in our consolidated statements of operations. Share-Based Compensation We recognize expense for our share-based compensation awards using a fair-value-based method. Share-based compensation expense is recognized over the requisite service period for awards that are based on service period and not contingent upon any future performance. We refer you to Note 10—“Employee Benefits and Share Option Plans.” Segment Reporting We have concluded that our business has a single reportable segment. Each brand, Oceania Cruises, Regent and Norwegian, constitutes a business for which discrete financial information is available and management regularly reviews the operating results and, therefore, each brand is considered an operating segment. Our operating segments have similar economic and qualitative characteristics, including similar 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 was 75%, 73 % and 74% for the years ended December 31, 2015, 2014 and 2013, respectively. No other individual country’s revenues exceeded 10% in any of our last three years. Substantially all of our long–lived assets are located outside of the U.S. and consist primarily of our ships. We have 16 ships with Bahamas registry with a carrying value of $7.2 billion and $6.4 billion as of December 31, 2015 and 2014, respectively. We have five ships with Marshall Island registry with a carrying value of $1.4 billion as of December 31, 2015 and 2014. We also have one ship with U.S. registry with a carrying value of $0.3 billion as of December 31, 2015 and 2014 and one ship with Bermuda registry with a carrying value of $0.08 billion as of December 31, 2015 and 2014. Recently Issued Accounting Policies In July 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-11 to simplify the measurement of inventory for all entities. This applies to all inventory that is measured using either the first-in, first-out or average cost method. The guidance requires an entity to measure inventory at the lower of cost or net realizable value. The guidance must be applied prospectively and will be effective for our interim and annual reporting periods beginning after December 15, 2016. Early adoption is permitted as of the beginning of an interim or annual reporting period. We are currently evaluating the impact of the adoption of this newly issued guidance to our consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-05 to clarify a customer’s accounting for fees paid in a cloud computing arrangement. The amendments provide guidance to customers about whether a cloud computing arrangement includes a software license or if the arrangement should be accounted for as a service contract. This guidance will impact the accounting of software licenses but will not change a customer’s accounting for service contracts. The guidance will be effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. An entity can elect to adopt the amendments either prospectively or retrospectively. We are currently evaluating the impact, if any, of the adoption of this newly issued guidance to our consolidated financial statements. In May 2014, FASB issued ASU No. 2014-09 which requires entities to recognize revenue through the application of a five-step model, including identification of the contract, identification of the performance obligations, determination of the transaction price, allocation of the transaction price to the performance obligation and recognition of revenue as the entity satisfies the performance obligations. Entities have the option of using either a full retrospective or a modified approach to adopt the guidance. In August 2015, the FASB issued ASU No. 2015-14 deferring the effective date for one year. We can elect to adopt the provisions of ASU No. 2014-09 for annual periods beginning after December 15, 2017 including interim periods within that reporting period or we can elect to early adopt the guidance as of the original effective date. We are currently evaluating the impact of the adoption of this newly issued guidance to our consolidated financial statements. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 3. Goodwill and Intangible Assets Goodwill and tradenames are not subject to amortization, therefore, as of December 31, 2015 and 2014 the carrying values were $1.4 billion and $0.8 billion, respectively. We revised the classification of goodwill and intangible assets to separately present goodwill and tradenames. Other intangible assets consisting of customer relationships and backlog are presented within other long-term assets. The revision was not deemed material to the Consolidated Balance Sheet. The gross carrying amounts of intangible assets included within other long-term assets, the related accumulated amortization, the net carrying amounts and the weighted-average amortization periods of the Company’s intangible assets are listed in the following tables (in thousands, except amortization period): December 31, 2015 Gross Carrying Accumulated Net Carrying Weighted- Customer relationship $ 120,000 $ (15,527 ) $ 104,473 6.0 Backlog 70,000 (70,000 ) — 1.0 Licenses 3,368 (208 ) 3,160 5.6 Total intangible assets subject to amortization $ 193,368 $ (85,735 ) $ 107,633 License (Indefinite-lived) $ 4,427 $ — $ — December 31, 2014 Gross Carrying Accumulated Net Carrying Weighted- Customer relationship $ 120,000 $ (4,556 ) $ 115,444 6.0 Backlog 70,000 (7,972 ) 62,028 1.0 Total intangible assets subject to amortization $ 190,000 $ (12,528 ) $ 177,472 License (Indefinite-lived) $ 4,427 $ — $ — The aggregate amortization expense is as follows (in thousands): Year Ended 2015 2014 Amortization expense $ 73,207 $ 12,528 The following table sets forth the Company’s estimated aggregate amortization expense for each of the five years below (in thousands): Year ended December 31, Amortization 2016 $ 21,659 2017 31,177 2018 26,058 2019 18,489 2020 9,906 |
The Acquisition of Prestige
The Acquisition of Prestige | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
The Acquisition of Prestige | 4. The Acquisition of Prestige On September 2, 2014, NCLH entered into an agreement with funds affiliated with Apollo and other owners to acquire 100% of the equity of Prestige. The Acquisition of Prestige and the principal factors that contribute to the recognition of goodwill are enhancements of our financial profile by creating a company with increased economies of scale, greater operating leverage and synergies. These synergies include revenue enhancements and opportunities for savings in various areas. The Acquisition of Prestige also creates a company with greater cash flow generation, accelerating the ability to delever our balance sheet. On November 19, 2014, we completed the Acquisition of Prestige. Consideration consisted of $1.1 billion in cash and non-cash considerations of 19,969,889 NCLH ordinary shares valued at $834.1 million based on the closing market price of NCLH’s shares as of November 18, 2014 and contingent consideration valued at $43.4 million. In addition, we assumed debt of $1.6 billion from Prestige. The contingent consideration arrangement subjected NCLH to an additional cash payment of up to $50 million upon achievement of certain 2015 revenue milestones. The contingent consideration was valued using various projected 2015 revenue scenarios weighted by the likelihood of each scenario occurring. The probability weighted payout was then discounted at an appropriate discount rate commensurate for the risk of meeting the probabilistic cash flows. For more on the contingent consideration valuation, we refer you to “Valuation of Contingent Consideration” below. Prestige is reported in our results of operations from the acquisition date which includes approximately $111.7 million of revenue and approximately $19.7 million of operating loss related to Prestige for the period ended December 31, 2014. The excess of the cost of acquisition over the net of amounts assigned to the fair value of the assets acquired and the liabilities assumed is recorded as goodwill, which is not expected to be deductible for tax purposes. Based on this fair valuation, the purchase price is allocated as follows (in thousands): Consideration Allocated: Accounts receivable $ 6,916 Inventories 12,579 Prepaid expenses and other assets 48,670 Amortizable intangible assets 190,000 Property and equipment 2,175,039 Goodwill and tradenames 1,595,126 Other long-term assets 15,607 Current portion of long-term debt (97,006 ) Accounts payable (14,880 ) Accrued expenses and other liabilities (190,256 ) Advance ticket sales (439,313 ) Long-term debt (1,456,038 ) Other long-term liabilities (142,216 ) Total consideration allocated, net of $295.8 million of cash acquired $ 1,704,228 Goodwill and intangible assets acquired include the following (in thousands): Goodwill $ 985,126 Tradenames (indefinite lived) 610,000 Backlog (1 year amortization period) 70,000 Customer relationships (6 year amortization period) 120,000 Pro forma Financial Information (unaudited) The following unaudited pro forma financial information presents the combined results of operations of NCLH and Prestige as if the Acquisition of Prestige had occurred on January 1, 2013. The pro forma results presented below for 2014 and 2013 combine the historical results of NCLH and Prestige for 2014 and 2013. The unaudited pro forma financial information is not intended to represent or be indicative of our consolidated results of operations or financial condition that would have been reported had the Acquisition of Prestige been completed as of January 1, 2013 and should not be taken as indicative of our future consolidated results of operations or financial condition. The unaudited pro forma financial information was as follows (in thousands, except per share data): Year Ended December 31, 2014 2013 Total revenue $ 4,310,079 $ 3,704,692 Net income (loss) attributable to Norwegian Cruise Line Holdings Ltd. 497,020 (683 ) Earnings per share: Basic $ 2.21 $ — Dilutive $ 2.19 $ — The unaudited pro forma financial information includes non-recurring pro forma adjustments of $57.5 million in acquisition related expenses within marketing, general and administrative expense, a purchase price adjustment decreasing passenger ticket revenue by $48.9 million, $15.4 million of expenses related to financing transactions in conjunction with the Acquisition of Prestige within interest expense and $70.0 million of amortization related to the backlog intangible asset in the year ended December 31, 2013. Valuation of Contingent Consideration The contingent consideration is valued using various projected 2015 net revenue scenarios weighted by the likelihood of each scenario occurring. The probability-weighted payout is then discounted at an appropriate discount rate commensurate for the risk of meeting the probabilistic cash flows. As the fair value is measured based upon significant inputs that are unobservable in the market, it was classified as Level 3 in the fair value hierarchy. Level 3 consists of significant unobservable inputs we believe market participants would use in pricing the asset or liability based on the best information available. The significant unobservable inputs used in the fair value measurement of the Company’s contingent consideration are the estimated annual net revenue and the probabilities associated with attaining the threshold and target net revenue as defined by the Merger Agreement. A significant increase in the estimated net revenue or an increase in the probability associated with reaching the target would result in a significantly higher fair value measurement. The maximum fair value would not be able to exceed $50 million, while an amount of net revenue less than 98% of target would result in no payout. For the year ended December 31, 2015, the fair value of the contingent consideration was reduced to zero based upon updates to the probability-weighted assessment of various projected revenue scenarios. The net revenue target was not met, and accordingly, we recognized a $43.4 million fair value adjustment during the year ended December 31, 2015, which was included in marketing, general and administrative expense. The following table summarizes the change in fair value of the contingent consideration liability (in thousands): Contingent Balance as of December 31, 2014 $ 43,400 Fair value adjustment (Level 3) (43,400 ) Balance as of December 31, 2015 $ — |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 5. Accumulated Other Comprehensive Income (Loss) Accumulated other comprehensive income (loss) for the year ended December 31, 2015 was as follows (in thousands): Accumulated Change Change Accumulated other comprehensive income (loss) at beginning of period $ (242,642 ) $ (234,188 ) $ (8,454 ) Current period other comprehensive loss before reclassifications (262,227 ) (262,852 ) 625 Amounts reclassified 92,219 91,742 (1) 477 (2) Accumulated other comprehensive income (loss) at end of period $ (412,650 ) $ (405,298 )(3) $ (7,352 ) (1) We refer you to Note 9—“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 payroll and related expense. (3) Of the existing amounts related to derivatives designated as cash flow hedges, approximately $135.2 million of loss is expected to be reclassified into earnings in the next 12 months. Accumulated other comprehensive income (loss) for the year ended December 31, 2014 was as follows (in thousands): Accumulated Change Change Accumulated other comprehensive income (loss) at beginning of period $ (16,690 ) $ (10,532 ) $ (6,158 ) Current period other comprehensive loss before reclassifications (239,597 ) (236,925 ) (2,672 ) Amounts reclassified 13,645 13,269 (1) 376 (2) Accumulated other comprehensive income (loss) at end of period $ (242,642 ) $ (234,188 ) $ (8,454 ) (1) We refer you to Note 9—“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 payroll and related expense. Accumulated other comprehensive income (loss) for the year ended December 31, 2013 was as follows (in thousands): Accumulated Change Change Accumulated other comprehensive income (loss) at beginning of period $ (17,619 ) $ (7,872 ) $ (9,747 ) Current period other comprehensive income before reclassifications 6,104 3,177 2,927 Amounts reclassified (5,175 ) (5,837 )(1) 662 (2) Accumulated other comprehensive income (loss) at end of period $ (16,690 ) $ (10,532 ) $ (6,158 ) (1) We refer you to Note 9—“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 payroll and related expense. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2015 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | 6. Property and Equipment, Net Property and equipment consisted of the following (in thousands): December 31, 2015 2014 Ships $ 10,765,525 $ 9,706,093 Ships under construction 300,575 290,381 Land 1,009 1,009 Other 434,881 351,377 11,501,990 10,348,860 Less: accumulated depreciation and amortization (2,043,185 ) (1,725,087 ) Property and Equipment, Net $ 9,458,805 $ 8,623,773 The increase in Ships was primarily due to the addition of Norwegian Escape. Depreciation and amortization expense for the years ended December 31, 2015, 2014 and 2013 was $432.1 million, $273.1 million and $215.6 million, respectively. Repairs and maintenance expenses including Dry-dock expenses were $124.8 million, $69.9 million and $67.1 million for the years ended December 31, 2015, 2014 and 2013, respectively. Ships under construction include progress payments to the shipyard, planning and design fees, loan interest and commitment fees and other associated costs. Interest costs associated with the construction of ships that were capitalized during the construction period amounted to $31.9 million, $22.0 million and $26.3 million for the years ended December 31, 2015, 2014 and 2013, respectively. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 7. Long-Term Debt Long-term debt consisted of the following: Interest Rate Maturities Balance 2015 2014 Through 2015 2014 (in thousands) $600.0 million 4.625% senior unsecured notes 4.625 % — % 2020 $ 590,037 $ — €662.9 million Norwegian Epic term loan (1) 2.43 % 2.02 % 2022 460,870 524,006 $625.0 million senior secured revolving credit facility 2.78 % 2.16 % 2018 75,000 200,000 $350.0 million senior secured term loan facility 4.00 % 4.00 % 2021 338,353 340,474 $1,375.0 million term loan facility 2.85 % 2.17 % 2018 1,185,720 1,301,210 €308.1 million Pride of Hawai’i loan (1) 1.27 % 1.18 % 2018 89,867 123,638 $300.0 million 5.00% senior unsecured notes (2) — 5.00 % 2018 — 294,746 $334.1 million Norwegian Jewel term loan 1.28 % 1.18 % 2017 53,534 78,545 €258.0 million Pride of America Hermes loan (1) 1.64 % 1.19 % 2017 37,778 61,313 €529.8 million Breakaway one loan (1) 1.92 % 1.84 % 2025 522,859 576,266 €529.8 million Breakaway two loan (1) 4.50 % 4.50 % 2026 592,531 647,258 €590.5 million Breakaway three loan (1) 2.98 % 2.98 % 2027 711,187 121,278 €590.5 million Breakaway four loan (1) 2.98 % 2.98 % 2029 108,964 35,057 €126 million Norwegian Jewel term loan (1) 1.27 % 1.18 % 2017 28,649 56,382 €126 million Norwegian Jade term loan (1) 1.27 % 1.18 % 2017 29,149 56,991 €666 million Seahawk 1 term loan (1) 3.92 % 3.92 % 2030 40,845 40,845 €666 million Seahawk 2 term loan (1) 3.92 % 3.92 % 2031 40,845 40,845 $680 million 5.25% senior unsecured notes 5.25 % 5.25 % 2019 670,059 667,559 Sirena loan 2.75 % 2.75 % 2019 53,229 82,000 Marina newbuild loan (3) 1.01 % 0.88 % 2023 335,135 379,868 Riviera newbuild loan (4) 1.08 % 0.87 % 2024 382,173 427,184 Capital lease and license obligations 1.62%-12.56 % 1.62%-12.935 % 2022 50,753 24,558 Total debt 6,397,537 6,080,023 Less: current portion of long-term debt (629,840 ) (576,947 ) Total long-term debt $ 5,767,697 $ 5,503,076 (1) Currently U.S. dollar-denominated. (2) Net of unamortized original issue discount of $1.1 million as of December 31, 2014. (3) Includes premium of $0.3 million and $0.4 million as of December 31, 2015 and 2014, respectively. (4) Includes premium of $0.4 million and $0.5 million as of December 31, 2015 and 2014, respectively. In October 2015, we took delivery of Norwegian Escape. To finance the payment due upon delivery, we drew $577.2 million of our €590.5 million Breakaway three loan due 2027. The loan bears interest at 2.98%. In November 2015, we issued the $600.0 million 4.625% senior unsecured notes due 2020 and redeemed our $300.0 million 5.00% senior unsecured notes due 2018. In December 2015, we adopted ASU No. 2015-03 which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. We also adopted ASU No. 2015-15 which allows an entity to defer and present debt issuance costs related to a line of credit arrangement as an asset. These deferred costs are amortized over the life of the loan agreement. We applied this guidance on a retrospective basis. The following is a reconciliation of changes to our long-term debt due to the adoption of ASU No. 2015-03 (in thousands): December 31, 2015 2014 Long-term debt balance prior to the adoption of ASU No. 2015-03 $ 6,502,834 $ 6,184,104 Less: changes due to the adoption of the ASU No. 2015-03 105,297 104,081 Long-term debt balance $ 6,397,537 $ 6,080,023 In December 2015, we amended and increased our €666 million Seahawk 1 term loan and our €666 million Seahawk 2 term loan to €710.8 million and €706.8 million, respectively. Interest expense, net for the year ended December 31, 2015 was $222.1 million which included $36.6 million of amortization and a $12.7 million loss on extinguishment of debt. Interest expense, net for the year ended December 31, 2014 was $151.8 million which included $32.3 million of amortization and $15.4 million of expenses related to financing transactions in connection with the Acquisition of Prestige. For the year ended December 31, 2013, interest expense, net was $282.6 million which included amortization of $64.9 million (including a $37.3 million write-off of deferred financing fees). Our debt agreements contain covenants that, among other things, require us to maintain a minimum level of liquidity, as well as limit our net funded debt-to-capital ratio, maintain certain other ratios and restrict our ability to pay dividends. Our ships and substantially all other property and equipment are pledged as collateral for substantially all of our debt. We believe we were in compliance with these covenants as of December 31, 2015. The following are scheduled principal repayments on long-term debt including capital lease obligations as of December 31, 2015 for each of the next five years (in thousands): Year Amount 2016 $ 629,840 2017 591,270 2018 1,383,186 2019 1,051,847 2020 963,797 Thereafter 1,882,894 Total $ 6,502,834 We had an accrued interest liability of $34.2 million and $32.8 million as of December 31, 2015 and 2014, respectively. |
Related Party Disclosures
Related Party Disclosures | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Disclosures | 8. Related Party Disclosures Transactions with Genting HK, the Apollo Holders and the TPG Viking Funds As of December 31, 2015, the ownership percentages of NCLH’s ordinary shares were as follows: Shareholder Number of Percentage Genting HK (1) 25,398,307 11.1 % Apollo Holders (2) 36,103,782 15.8 % TPG Viking Funds (3) 5,329,834 2.4 % (1) Genting HK owns our ordinary shares indirectly through Star NCLC Holdings Ltd., a Bermuda wholly-owned subsidiary. (2) The Apollo Holders include AAA Guarantor—Co-Invest VI (B), L.P., AIF VI NCL (AIV), L.P., AIF VI NCL (AIV II), L.P., AIF VI NCL (AIV III), L.P., AIF VI NCL (AIV IV), L.P., Apollo Overseas Partners (Delaware) VI, L.P., Apollo Overseas Partners (Delaware 892) VI, L.P., Apollo Overseas Partners VI, L.P., Apollo Overseas Partners (Germany) VI, L.P., AAA Guarantor—Co-Invest VII, L.P., AIF VI Euro Holdings, L.P., AIF VII Euro Holdings, L.P., Apollo Alternative Assets, L.P., Apollo Management VI, L.P. and Apollo Management VII, L.P. (3) The TPG Viking Funds include TPG Viking, L.P., a Delaware limited partnership, TPG Viking AIV I, L.P., a Cayman Islands exempted limited partnership, TPG Viking AIV II, L.P., a Cayman Islands exempted limited partnership and TPG Viking AIV III, L.P., a Delaware limited partnership. In December 2015, we repurchased 348,553 ordinary shares under NCLH’s repurchase program as a part of a Secondary Equity Offering by the Apollo Holders and Genting HK for approximately $20.0 million. In September 2014, NCLH entered into the Merger Agreement with funds affiliated with Apollo and other owners for total consideration of $3.025 billion (including assumption of debt) in cash and stock. On November 19, 2014, we completed the Acquisition of Prestige. In June 2012, we exercised our option with Genting HK to purchase Norwegian Sky. The purchase price was $259.3 million, which consisted of a $50.0 million cash payment and a $209.3 million payable to Genting HK, $79.7 million of such amount was paid to Genting HK within fourteen days of the consummation of the IPO, together with accrued interest thereon, and the remaining balance is to be repaid over seven equal semi-annual payments the first of which was due and paid in June 2013 and has a weighted-average interest rate of 1.52% through maturity. The fair value of the payable was $205.5 million based on discounting the future payments at an imputed interest rate of 2.26% per annum, which was commensurate with the Company’s borrowing rate for similar assets. The payable is collateralized by a mortgage and an interest in all earnings, proceeds of insurance and certain other interests related to the ship and is included in the balance sheet caption “Due to Affiliate” on our consolidated balance sheets. We have paid $240.8 million to Genting HK in connection with the Norwegian Sky Purchase Agreement through December 31, 2015. |
Fair Value Measurements and Der
Fair Value Measurements and Derivatives | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Fair Value Measurements and Derivatives | 9. 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. The determination of ineffectiveness is based on the amount of dollar offset between the cumulative change in fair value of the derivative and the cumulative change in fair value of the hedged transaction at the end of the reporting period. If it is determined that a derivative is not highly effective as a hedge, or if the hedged forecasted transaction is no longer probable of occurring, then the amount recognized in accumulated other comprehensive income (loss) is released to earnings. In addition, the ineffective portion of our highly effective hedges is recognized in earnings immediately and reported in other income (expense) in our consolidated statements of operations. 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 and our revolving credit facility, is not considered significant, as we primarily conduct business with large, well-established financial institutions that we have established relationships with and that have credit risks acceptable to us or the credit risk is spread out among a large number of creditors. We do not anticipate non-performance by any of our significant counterparties. The following table sets forth our derivatives measured at fair value and discloses the balance sheet location (in thousands): Asset Liability Balance Sheet location December 31, December 31, December 31, December 31, Fuel swaps designated as hedging instruments Accrued expenses and other liabilities $ — $ — $ 128,740 $ 111,304 Other long-term liabilities — 190 132,494 77,250 Foreign currency forward contracts designated as hedging instruments Other long-term assets 3,446 — 1,370 — Accrued expenses and other liabilities — — 8,737 29,498 Other long-term liabilities 551 — 24,181 118 Foreign currency collar not designated as a hedging instrument Accrued expenses and other liabilities — — 42,993 — Other long-term liabilities — — — 16,744 Interest rate swaps designated as hedging instruments Accrued expenses and other liabilities — — 4,079 5,736 Other long-term liabilities — — 3,395 3,104 Interest rate swap not designated as a hedging instrument Accrued expenses and other liabilities — — — 3,823 The fair values of swap and forward contracts are determined based on inputs that are readily available in public markets or can be derived from information available in publicly quoted markets. The Company determines the value of options and collars utilizing an option pricing model based on inputs that are either readily available in public markets or can be derived from information available in publicly quoted markets. The option pricing model used by the Company is an industry standard model for valuing options and is used by the broker/dealer community. The inputs to this option pricing model are the option strike price, underlying price, risk-free rate of interest, time to expiration, and volatility. The fair value of option contracts considers both the intrinsic value and any remaining time value associated with those derivatives that have not yet settled. The Company also considers counterparty credit risk and its own credit risk in its determination of all estimated fair values. Our derivatives and financial instruments were categorized as Level 2 in the fair value hierarchy, and we had no derivatives or financial instruments categorized as Level 1 or Level 3. Our derivative contracts include rights of offset with our counterparties when right of offset exists. We have elected to net certain assets and liabilities within counterparties. 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): December 31, 2015 Gross Amounts Gross Total Net Gross Net Amounts Assets $ 3,446 $ (1,370 ) $ 2,076 $ (2,043 ) $ 33 Liabilities 344,619 (551 ) 344,068 (336,645 ) 7,423 December 31, 2014 Gross Amounts Gross Total Net Gross Net Amounts Liabilities $ 247,577 $ (190 ) $ 247,387 $ (59,023 ) $ 188,364 Fuel Swaps As of December 31, 2015, we had fuel swaps maturing through December 31, 2019 which are used to mitigate the financial impact of volatility in fuel prices pertaining to approximately 1.6 million metric tons of our projected fuel purchases. The effects on the consolidated financial statements of the fuel swaps which were designated as cash flow hedges were as follows (in thousands): Year Ended December 31, 2015 2014 2013 Gain (loss) recognized in other comprehensive income (loss) – effective portion $ (173,513 ) $ (198,595 ) $ 8,532 Loss recognized in other income (expense) – ineffective portion (16,011 ) (5,753 ) (345 ) Amount reclassified from accumulated other comprehensive income (loss) into fuel expense 75,808 8,388 (6,250 ) During 2015 certain fuel swaps matured that were previously designated as cash flow hedges and were dedesignated due to a change in our expected future fuel purchases mix. The effects on the consolidated financial statements of the fuel swaps which were dedesignated and recognized into earnings were as follows (in thousands): Year Ended December 31, 2015 2014 2013 Amount reclassified from accumulated other comprehensive income (loss) into other income (expense) $ 10,000 $ — $ — Loss recognized in other income (expense) (4,727 ) — — Fuel Collars and Options We had fuel collars and fuel options maturing through December 2014 which were used to mitigate the financial impact of volatility in fuel prices of our fuel purchases. The effects on the consolidated financial statements of the fuel collars which were designated as cash flow hedges were as follows (in thousands): Year Ended December 31, 2015 2014 2013 Loss recognized in other comprehensive income (loss) – effective portion $ — $ (1,024 ) $ (1,152 ) Loss recognized in other income (expense) – ineffective portion — (292 ) (26 ) Amount reclassified from accumulated other comprehensive income (loss) into fuel expense 248 1,888 1,547 The effects on the consolidated financial statements of the fuel options which were not designated as hedging instruments were as follows (in thousands): Year Ended December 31, 2015 2014 2013 Gain (loss) recognized in other income (expense) $ — $ (864 ) $ 1,340 Foreign Currency Options We had foreign currency options that matured through January 2014, which consisted of call options with deferred premiums. These options were used to mitigate the financial impact of volatility in foreign currency exchange rates related to our ship construction contracts denominated in euros. If the spot rate at the date the ships were delivered was less than the strike price under these option contracts, we would have paid the deferred premium and would not exercise the foreign currency options. The effects on the consolidated financial statements of the foreign currency options which were designated as cash flow hedges were as follows (in thousands): Year Ended December 31, 2015 2014 2013 Loss recognized in other comprehensive income (loss) – effective portion $ — $ (1,157 ) $ (3,304 ) Loss recognized in other income (expense) – ineffective portion — (241 ) (97 ) Amount reclassified from accumulated comprehensive income (loss) into depreciation and amortization expense 1,320 1,269 470 Foreign Currency Forward Contracts As of December 31, 2015, we had foreign currency forward contracts which are used to mitigate the financial impact of volatility in foreign currency exchange rates related to our ship construction contracts and forecasted Dry-dock payments denominated in euros. The notional amount of our foreign currency forward contracts was €1.1 billion, or $1.2 billion based on the euro/U.S. dollar exchange rate as of December 31, 2015. The effects on the consolidated financial statements of the foreign currency forward contracts which were designated as cash flow hedges were as follows (in thousands): Year Ended December 31, 2015 2014 2013 Loss recognized in other comprehensive income (loss) – effective portion $ (84,187 ) $ (30,686 ) $ (2,983 ) Gain (loss) recognized in other income (expense) – ineffective portion (343 ) (7 ) 67 Amount reclassified from accumulated comprehensive income (loss) into depreciation and amortization expense 116 (243 ) (84 ) The effects on the consolidated financial statements of the foreign currency forward contracts which were not designated as hedging instruments were as follows (in thousands): Year Ended December 31, 2015 2014 2013 Gain recognized in other income (expense) $ 684 $ — $ 20 Foreign Currency Collar We had a foreign currency collar that matured in January 2014, which was used to mitigate the volatility of foreign currency exchange rates related to our ship construction contracts denominated in euros. The effects on the consolidated financial statements of the foreign currency collar which was designated as a cash flow hedge was as follows (in thousands): Year Ended December 31, 2015 2014 2013 Gain (loss) recognized in other comprehensive income (loss) – effective portion $ — $ (1,588 ) $ 4,350 Amount reclassified from accumulated comprehensive income (loss) into depreciation and amortization expense (364 ) (333 ) — As of December 31, 2015, we had a foreign currency collar used to mitigate the volatility of foreign currency exchange rates related to our ship construction contracts denominated in euros. The notional amount of our foreign currency collar was €274.4 million, or $298.1 million based on the euro/U.S. dollar exchange rate as of December 31, 2015. The effects on the consolidated financial statements of the foreign currency collar which was not designated as a hedging instrument was as follows (in thousands): Year Ended December 31, 2015 2014 2013 Loss recognized in other income (expense) $ (26,249 ) $ (6,980 ) $ — Interest Rate Swaps As of December 31, 2015, we had interest rate swap agreements to hedge our exposure to interest rate movements and to manage our interest expense. The notional amount of outstanding debt associated with the interest rate swap agreements was $715.9 million. The effects on the consolidated financial statements of the interest rates swaps which were designated as cash flow hedges were as follows (in thousands): Year Ended December 31, 2015 2014 2013 Loss recognized in other comprehensive income (loss) – effective portion $ (5,152 ) $ (5,386 ) $ (3,196 ) Loss recognized in other income (expense) – ineffective portion (23 ) — — Amount reclassified from other comprehensive income (loss) into interest expense, net 4,614 2,385 189 The effects on the consolidated financial statements of the interest rates swap contract which was not designated as a hedging instrument was as follows (in thousands): Year Ended December 31, 2015 2014 2013 Loss recognized in other income (expense) $ (2 ) $ (3 ) $ — Other The carrying amounts reported in the consolidated balance sheets of all other financial assets and liabilities approximate fair value. Long-Term Debt As of December 31, 2015 and 2014, the fair value of our long-term debt, including the current portion, was $6,495.5 million and $6,229.1 million, respectively, which was $6.6 million lower and $45.0 million higher, respectively, than the carrying values. The difference between the fair value and carrying value of our long-term debt is due to our fixed and variable rate debt obligations carrying interest rates that are above or below market rates at the measurement dates. The fair value of our long-term debt was calculated based on estimated rates for the same or similar instruments with similar terms and remaining maturities resulting in Level 2 inputs in the fair value hierarchy. Market risk associated with our long-term variable rate debt is the potential increase in interest expense from an increase in interest rates. The calculation of the fair value of our long-term debt is considered a Level 2 input. Non-recurring Measurements of Non-financial Assets Goodwill and other indefinite-lived assets, principally tradenames, are reviewed for impairment on an annual basis or earlier if there is an event or change in circumstances that would indicate that the carrying value of these assets could not be fully recovered. We believe our estimates and judgments with respect to our long-lived assets, principally ships, and goodwill and other indefinite-lived intangible assets are reasonable. Nonetheless, if there was a material change in assumptions used in the determination of such fair values or if there is a material change in the conditions or circumstances that influence such assets, we could be required to record an impairment charge. We estimate fair value based on the best information available making whatever estimates, judgments and projections considered necessary. For our Step I Test, the estimation of fair value measured by discounting expected future cash flows at discount rates commensurate with the risk involved are considered Level 3 inputs. As of December 31, 2015, our annual review supports the carrying value of these assets. As of December 31, 2014, goodwill increased $985.1 million and intangible assets increased $800.0 million due to the Acquisition of Prestige (we refer you to Note 4—“The Acquisition of Prestige”). |
Employee Benefits and Share Opt
Employee Benefits and Share Option Plans | 12 Months Ended |
Dec. 31, 2015 | |
Postemployment Benefits [Abstract] | |
Employee Benefits and Share Option Plans | 10. Employee Benefits and Share Option Plans Management NCL Corporation Units In 2009, we adopted a profits sharing agreement which authorized us to grant profits interests in the Company to certain key employees. These interests generally vested with the holders based on a combination of performance-based and time-based vesting metrics, each as specified in the profits sharing agreement and each holder’s award agreement. Genting HK, the Apollo Holders and the TPG Viking Funds were entitled to initially receive any distributions made by the Company, pro-rata based on their shareholdings in the Company. Once Genting HK, the Apollo Holders and the TPG Viking Funds received distributions in excess of certain hurdle amounts specified in the profits sharing agreement and each holder’s award agreement, each vested profits interest award generally entitled the holder of such award to a portion of such excess distribution amount. In connection with the Corporate Reorganization, NCLC’s outstanding profits interests granted under its profits sharing agreement to management (or former management) of NCLC were exchanged for an economically equivalent number of NCL Corporation Units. We refer to the NCL Corporation Units exchanged for profits interests granted under the profits sharing agreement as “Management NCL Corporation Units.” The Management NCL Corporation Units received upon the exchange of outstanding profits interests were subject to the same time-based vesting requirements and performance-based vesting requirements applicable to the profits interests for which they were exchanged. We accounted for the exchange of the outstanding profits interests for the economically equivalent number of Management NCL Corporation Units and share-based option awards as an award modification. An award modification requires that the fair value of the awards immediately before the modification and immediately after the modification be determined. We engaged a third-party valuation firm to assist in the completion of a valuation which was derived using a binomial lattice model. It was determined that the post-modification award value derived greater value versus the pre-modification award value, resulting in the recognition of incremental compensation expense. At the date of award modification, approximately $5.5 million of incremental cost associated with vested awards was charged to share-based compensation, with the remaining unvested portion to be charged over the remaining vesting period. The Management NCL Corporation Units, generally consisted of fifty percent of “Time-Based Units” (“TBUs”) and fifty percent of “Performance-Based Units” (“PBUs”). The TBUs generally vested over five years and upon a distribution event, the vesting amount of the PBUs was based on the amount of proceeds that are realized above certain hurdles. In the fourth quarter of 2014, all Management NCL Corporation Units were exchanged for NCLH ordinary shares and restricted shares under a management exchange agreement (the “Management Exchange Agreement”). NCLH became the sole member and 100% owner of the economic interests in NCLC and the non-controlling interest no longer exists as of December 31, 2014. Accordingly, NCLC is now treated as a disregarded entity for U.S. federal income tax purposes. No new NCLC profits interests or Management NCL Corporation Units will be issued; however, NCLH has granted, and expects to continue to grant, equity to its employees and members of its Board of Directors under its long-term incentive plan. The exchange for NCLH ordinary shares and restricted shares, per the Management Exchange Agreement, resulted in no incremental expense after applying the modification accounting treatment as substantially all key terms and conditions remained consistent. The termination of employment may result in forfeiture of any non-vested TBUs and all PBUs. TBUs that were vested can be either continued by the Company or cancelled and paid to the employee. Cancellation could take place any time after termination but not before two years after the grant date. As a result of the secondary offering during August 2015, the last hurdle amount specified in the profits sharing agreement was reached and as such all outstanding PBUs vested. Share Option Awards In January 2013, the Company adopted a 2013 performance incentive plan which provides for the issuance of up to 15,035,106 of NCLH’s share options and ordinary shares, with no more than 5,000,000 shares being granted to one individual in any calendar year. Share options are generally granted with an exercise price equal to the closing market price of NCLH shares at the date of grant. The vesting period is typically set at 3, 4 or 5 years with a contractual life ranging from 7 to 10 years. Forfeited awards are added back to the approved reserve. In July 2015, we granted 3.5 million share option awards to our employees at an exercise price of $56.19 with a contractual term of ten years. The share options vest equally over three years. In August 2015, we granted 0.7 million share option awards to our employees at an exercise price of $59.43 with a contractual term of ten years. The share options vest equally over three years. In addition, on August 4, 2015, we entered into an amendment to the employment agreement with our President and Chief Executive Officer pursuant to which we awarded 625,000 time-based share option awards, 416,667 performance-based share option awards and 208,333 market-based share option awards at an exercise price of $59.43 and contractual term of ten years. The time-based share option awards vest 50% on June 30, 2017 and 50% on June 30, 2019. The performance-based and market-based share option awards vest upon the achievement of certain performance and market-related metrics during the term of the employment agreement. The performance-based awards are subject to performance conditions such that the number of awards that ultimately vest depends on the Adjusted EPS and adjusted return on invested capital (“Adjusted ROIC”) achieved by the Company during the performance period compared to targets established at the award date. Because the terms of the performance-based awards provide discretion to make certain adjustments to the performance calculation, the service inception date of these awards precedes the grant date. Accordingly, the Company recognizes compensation expense beginning on the service inception date and remeasures the fair value of the awards until a grant date is established. The estimate of the awards’ fair value will be fixed in the period in which the grant date occurs, and cumulative compensation expense will be adjusted based on the fair value at the grant date. The fair value of each time-based option award is estimated on the date of grant using the Black-Scholes option-pricing model. The estimated fair value of the share options, less estimated forfeitures, is amortized over the vesting period using the straight-line vesting method. The assumptions used within the option-pricing model for the time-based awards are as follows: 2015 2014 2013 Dividend yield —% —% —% Expected share price volatility 32.32%-45.33% 48.30%-49.90% 50.40%-54.80% Risk-free interest rate 1.34%-1.92% 1.80%-2.02% 0.8%-1.82% Expected term 6.00-6.50 years 6.25 years 5.00-6.25 years Expected volatility was determined based on the historical share prices in our industry. The risk-free rate was based on U.S. Treasury zero coupon issues with a remaining term equal to the expected option term at grant date. The expected term was calculated under the simplified method. Our forfeiture assumption is derived from historical turnover rates and those estimates are revised as appropriate to reflect the actual forfeiture results. As a grant date is not established for the performance-based awards, their fair value is estimated on the last date of the reporting period using the Black-Scholes option-pricing model. The estimated fair value of the share options is amortized over the requisite service period using the straight-line vesting method. The assumptions used within the option-pricing model for the performance-based awards for which share-based compensation was recognized during 2015 are as follows: 2015 Dividend yield 0% Expected share price volatility 29.31%-29.86% Risk-free interest rate 1.76% Expected term 4.88-5.38 years Expected volatility was determined based on the historical share prices in our industry. The risk-free rate was based on U.S. Treasury zero coupon issues with a remaining term equal to the expected option term at grant date. The expected term was calculated under the simplified method. The fair value of the market-based share option awards is estimated using a Monte-Carlo model which values financial instruments whose value is dependent on share price by sampling random paths for share price. The key inputs for the simulation include current share price, risk free rate, and share price volatility. For each simulated path, the model checks if the simulated share price reaches the vesting threshold during the performance period. For each path that reaches the vesting threshold, the payoff upon vesting is calculated. The fair value of the equity grant is determined by averaging the expected payoff across all simulated paths and discounting the average to the valuation date. The below table summarizes the key inputs used in the Monte-Carlo simulation: 2015 Dividend yield 0% Expected share price volatility 30.00% Risk-free interest rate 1.34% Expected term Mid-point from vesting to assumed options expiration Expected volatility was determined based on the historical share prices in our industry. The risk-free rate was based on U.S. Treasury zero coupon issues with a remaining term equal to the remaining term of the measurement period. The following is a summary of share option activity under our share option plan for the year ended December 31, 2015 (excludes the impact of 416,667 performance based awards as no grant date has been established): Number of Share Option Weighted-Average Exercise Weighted- Aggregate Intrinsic Value Time- Performance- Market- Time- Performance- Market- (years) (in thousands) Outstanding as of January 1, 2015 6,079,881 1,457,314 — $ 29.92 $ 19.00 $ — 7.61 $ 142,831 Granted 5,130,000 — 208,333 56.64 — 59.43 — — Exercised (2,144,702 ) (546,951 ) — 27.39 19.00 — — — Forfeited and cancelled (1,363,108 ) (477,611 ) — 37.49 19.00 — — — Outstanding as of December 31, 2015 7,702,071 432,752 208,333 $ 47.35 $ 19.00 $ 59.43 8.59 $ 104,864 Vested and expected to vest as of December 31, 2015 7,351,098 432,752 208,333 $ 47.22 $ 19.00 $ 59.43 8.47 $ 101,824 Exercisable as of December 31, 2015 808,794 432,752 — $ 29.23 $ 19.00 $ — 5.84 $ 40,890 The weighted-average grant-date fair value of time-based options granted during the years 2015, 2014 and 2013 was $20.90, $16.86 and $6.38 respectively. The weighted-average reporting period date fair value of performance-based options for which share-based compensation was recognized during 2015 was $17.07. The weighted-average grant-date fair value of market-based options granted during the year 2015 was $12.37. The total intrinsic value of share options exercised during the year 2015, 2014 and 2013 was $68.0 million, $4.5 million and $1.4 million and total cash received by the Company from exercises was $69.1 million, $6.1 million and $2.0 million, respectively. As of December 31, 2015, there was approximately $106.1 million, $0, and $2.0 million of total unrecognized compensation cost net of estimate forfeitures, related to time-based, performance-based with an established grant date, and market-based options, respectively, granted under our share-based incentive plans which is expected to be recognized over a weighted-average period of 2.57 years, 0 years, and 1.95 years, respectively. Restricted Ordinary Share Awards The following is a summary of restricted share activity of NCLH shares for the year ended December 31, 2015: Number of Weighted- Number of Weighted- Non-vested as of January 1, 2015 196,644 $ 3.43 1,208,608 $ 3.37 Granted 6,881 50.23 — — Vested (83,958 ) 6.68 (620,739 ) 3.92 Forfeited or expired (75,914 ) 2.68 (587,869 ) 2.79 Non-vested and expected to vest as of December 31, 2015 43,653 $ 5.87 — $ — As of December 31, 2015, there was $0.2 million of total unrecognized compensation cost related to non-vested restricted ordinary share awards. The cost is expected to be recognized over a weighted-average period of 1.2 years. Restricted shares, with the exception of those related to the Management Exchange Agreement, which maintain their original vesting conditions of time and performance, vest in substantially equal quarterly installments over 1 or 2 years or in annual installments over 4 years. The total fair value of shares vested during the year ended December 31, 2015 was $40.9 million. Restricted Share Units (“RSUs”) On August 4, 2015, we entered into an amendment to the employment agreement with our President and Chief Executive Officer pursuant to which we awarded 150,000 time-based RSUs, 100,000 performance-based RSUs and 50,000 market-based RSUs. The time-based RSUs vest equally on June 30, 2016, 2017, 2018 and 2019, respectively. The performance-based and market-based RSUs vest upon the achievement of certain performance and market-related metrics during the term of the employment agreement. The fair value of the time-based and performance-based RSUs is equal to the closing market price of NCLH shares at the date of grant. The performance-based RSUs are subject to performance conditions such that the number of awards that ultimately vest depends on the Adjusted EPS and Adjusted ROIC achieved by the Company during the performance period compared to targets established at the award date. Because the terms of the performance-based awards provide discretion to make certain adjustments to the performance calculation, the service inception date of these awards precedes the grant date. Accordingly, the Company recognizes share-based compensation expense beginning on the service inception date and remeasures the fair value of the awards until a grant date occurs. The estimate of the awards’ fair value will be fixed in the period in which the grant date occurs, and cumulative share-based compensation expense will be adjusted based on the fair value at the grant date. The fair value of the market-based RSUs is estimated using a Monte-Carlo model which values financial instruments whose value is dependent on share price by sampling random paths for share price. The key inputs for the simulation include current share price, risk free rate, and share price volatility. For each simulated path, the model checks if the simulated share price reaches the vesting threshold during the performance period. For each path that reaches the vesting threshold, the payoff upon vesting is calculated. The fair value of the equity grant is determined by averaging the expected payoff across all simulated paths and discounting the average to the valuation date. The below table summarizes the key inputs used in the Monte-Carlo simulation: 2015 Dividend yield 0% Expected share price volatility 30.00% Risk-free interest rate 1.34% Expected term Mid-point from vesting to assumed awards expiration Expected volatility was determined based on the historical share prices in our industry. The risk-free rate was based on U.S. Treasury zero coupon issues with a remaining term equal to the remaining term of the measurement period. The following is a summary of the RSUs activity for the year ended December 31, 2015 (excludes the impact of 100,000 performance-based RSUs as no grant date was established): Number of Weighted- Number of Weighted- Non-vested as of January 1, 2015 Granted 150,000 $ 59.43 50,000 $ 59.43 Vested — — — — Forfeited or expired — — — — Non-vested and expected to vest as of December 31, 2015 150,000 $ 59.43 50,000 $ 59.43 As of December 31, 2015, there was $7.9 million and $1.1 million of total unrecognized compensation cost related to non-vested time-based and market-based RSUs, respectively. The cost is expected to be recognized over a weighted-average period of 3.50 years and 1.54 years, respectively, for the time-based and market-based RSUs. The share-based compensation expense for the years ended December 31, 2015, 2014 and 2013 was $41.8 million, $20.6 million, which includes $6.0 million of non-recurring charges associated with the Management Exchange Agreement and $23.1 million, which includes $18.5 million of non-recurring charges associated with the Corporate Reorganization, respectively, and was recorded in marketing general and administrative expense. Employee Benefit Plans We maintain annual incentive bonus plans for our executive officers and other key employees. Bonuses under these plans become earned and payable based on the Company’s performance during the applicable performance period and the individual’s continued employment. Company performance criteria include the attainment of certain financial targets and other strategic objectives. Certain employees are employed pursuant to agreements that provide for severance payments. Severance is generally only payable upon an involuntary termination of the employment by us without cause or a termination by the employee for good reason. Severance generally includes a cash payment based on the employee’s base salary (and in some cases, bonus), and our payment of the employee’s continued medical benefits for the applicable severance period. We maintain a 401(k) Plan for our shoreside employees, including our executive officers. Participants may contribute up to 100% of eligible compensation each pay period, subject to certain limitations. We make matching contributions equal to 100% of the first 3% and 50% of amounts greater than 3% to and including 10% of each participant’s contributions subject to certain limitations. In addition, we may make discretionary supplemental contributions to the Plan, which shall be allocated to each eligible participant on a pro-rata basis based on the compensation of the participant to the total compensation of all participants. Our matching contributions are vested according to a five-year schedule. The 401(k) Plan is subject to the provisions of ERISA and is intended to be qualified under section 401(a) of the U.S. Internal Revenue Code (the “Code”). Our contributions are reduced by contributions forfeited by those employees who leave the 401(k) Plan prior to vesting fully in the contributions. Forfeited contributions of $0.4 million, $0.1 million and $0.1 million were utilized in the years ended December 31, 2015, 2014 and 2013, respectively. We maintained a Supplemental Executive Retirement Plan (“SERP”), which is a legacy unfunded defined contribution plan for certain executives who were employed by the Company in an executive capacity prior to 2008. The SERP was frozen to future participation following that date. The SERP provided for Company contributions on behalf of the participants to compensate them for the benefits that are limited under the 401(k) Plan. We credited participants under the SERP for amounts that would have been contributed by us to the Company’s previous Defined Contribution Retirement Plan and the former 401(k) Plan without regard to any limitations imposed by the Code. Participants did not make any elective contributions under this plan. As of December 31, 2015 and 2014, the aggregate balance of participants’ deferred compensation accounts under the SERP Plan was $0.5 million and $0.4 million, respectively. We have discontinued this plan following the 2015 contributions and will pay the deferred contributions to participants in early 2017 following the expiration of the required twelve month period. We recorded expenses related to the above 401(k) Plan and SERP of $5.3 million, $3.7 million and $3.3 million for the years ended December 31, 2015, 2014 and 2013, respectively. We maintained a Senior Management Retirement Savings Plan (“SMRSP”), which was a legacy unfunded defined contribution plan for certain employees who were employed by the Company prior to 2001. The SMRSP provided for Company contributions on behalf of the participants to compensate them for the difference between the qualified plan benefits that were previously available under the Company’s cash balance pension plan and the redesigned 401(k) Plan. We credited participants under the SMRSP Plan for the difference in the amount that would have been contributed by us to the Company’s previous Norwegian Cruise Line Pension Plan and the qualified plan maximums of the new 401(k) Plan. We have discontinued this plan following the 2015 contributions and will pay the deferred contributions to participants in early 2017 following the expiration of the required twelve month period. Effective January 2009, we implemented the Shipboard Retirement Plan which computes benefits based on years of service, subject to eligibility requirements of the Shipboard Retirement Plan. The Shipboard Retirement Plan is unfunded with no plan assets. The current portion of the projected benefit obligation of $1.1 million and $0.9 million was included in accrued expenses and other liabilities as of December 31, 2015 and 2014, respectively and $20.0 million and $18.8 million was included in other long-term liabilities in our consolidated balance sheet as of December 31, 2015 and 2014, respectively. The amounts related to the Shipboard Retirement Plan were as follows (in thousands): As of or for the Year Ended December 31, 2015 2014 2013 Pension expense: Service cost $ 1,793 $ 1,393 $ 1,498 Interest cost 738 728 603 Amortization of prior service cost 378 378 378 Amortization of actuarial loss 99 — 90 Total pension expense $ 3,008 $ 2,499 $ 2,569 Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 19,730 $ 15,570 $ 16,221 Service cost 1,793 1,393 1,498 Interest cost 738 728 603 Actuarial gain (loss) (625 ) 2,689 (2,070 ) Direct benefit payments (558 ) (650 ) (682 ) Projected benefit obligation at end of year $ 21,078 $ 19,730 $ 15,570 Amounts recognized in the consolidated balance sheets: Projected benefit obligation $ 21,078 $ 19,730 $ 15,570 As of or for the Year Ended December 31, 2015 2014 2013 Amounts recognized in accumulated other comprehensive income (loss): Prior service cost $ (5,293 ) $ (5,671 ) $ (6,049 ) Accumulated actuarial loss (3,126 ) (3,849 ) (1,160 ) Accumulated other comprehensive income (loss) $ (8,419 ) $ (9,520 ) $ (7,209 ) The discount rates used in the net periodic benefit cost calculation for the years ended December 31, 2015, 2014 and 2013 were 3.8%, 4.8% and 3.8%, respectively, and the actuarial loss is amortized over 18.95 years. The discount rate is used to measure and recognize obligations, including adjustments to other comprehensive income (loss), and to determine expense during the periods. It is determined by using bond indices which reflect yields on a broad maturity and industry universe of high-quality corporate bonds. The pension benefits expected to be paid in each of the next five years and in aggregate for the five years thereafter are as follows (in thousands): Year Amount 2016 $ 1,128 2017 1,079 2018 1,092 2019 1,170 2020 1,211 Next five years 7,750 Employee Stock Purchase Plan (“ESPP”) In April 2014, the Company’s shareholders approved the ESPP. The purpose of the ESPP is to provide eligible employees with an opportunity to purchase NCLH’s ordinary shares at a favorable price and upon favorable terms in consideration of the participating employees’ continued services. A maximum of 2,000,000 of the Company’s ordinary shares may be purchased under the ESPP. To be eligible to participate in an offering period, on the Grant Date of that period, an individual must be customarily employed by the Company or a participating subsidiary for more than twenty hours per week and for more than five months per calendar year. Participation in the ESPP is also subject to certain limitations. The ESPP is considered to be compensatory based on: a) the 15% purchase price discount and b) the look-back purchase price feature. Since the plan is compensatory, compensation expense must be recorded in the consolidated statements of operations on a straight-line basis over the six-month withholding period. For the years ended December 31, 2015, 2014 and 2013, the compensation expense was $0.4 million, $90 thousand and $0 respectively. As of December 31, 2015 and 2014, we had a $1.1 million and $0.3 million liability, respectively, for payroll withholdings received. Other Employee Matters On January 8, 2015, Kevin M. Sheehan resigned as President and Chief Executive Officer of the Company, together with all of his positions and offices with the Company and its subsidiaries or affiliates, effective immediately. In connection with Mr. Sheehan’s resignation from the Company, Mr. Sheehan and the Company entered into a Separation Agreement and Release (the “Separation Agreement”). The Separation Agreement sets forth the terms of Mr. Sheehan’s resignation from the Company, including, among other things, a general release of claims in favor of the Company and certain non-competition, non-solicitation, confidentiality and cooperation undertakings. The Separation Agreement also provides that Mr. Sheehan will receive (i) all of his accrued and unpaid base salary (and accrued and unpaid vacation time) through January 8, 2015 (the “Effective Date”), (ii) his previously approved bonus payment for fiscal year 2014 of $1,627,500, (iii) a one-time cash separation payment in an amount equal to his base salary and target bonus and (iv) vesting of a portion of his outstanding unvested equity-based awards as of the Effective Date, and all remaining unvested equity-based awards shall immediately terminate, expire and be forfeited as of the Effective Date. This resulted in a total severance expense of $13.4 million of which $8.2 million was due to the acceleration of the equity-based awards which was recorded in marketing, general and administrative expense in January 2015. Frank J. Del Rio was appointed President and Chief Executive Officer of the Company as of January 8, 2015. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. Income Taxes We are incorporated in Bermuda. Under current Bermuda law, we are not subject to tax on income and capital gains. We have received from the Minister of Finance under The Exempted Undertakings Tax Protection Act 1966, as amended, an assurance that, in the event that Bermuda enacts legislation imposing tax computed on profits, income, any capital asset, gain or appreciation, or any tax in the nature of estate duty or inheritance, then the imposition of any such tax shall not be applicable to us or to any of our operations or shares, debentures or other obligations, until March 31, 2035. All of our net income before income tax benefit (expense) is from foreign operations. The components of net income before income taxes consist of the following (in thousands): Year Ended 2015 2014 2013 Bermuda $ — $ — $ — Foreign - Other 433,909 340,334 114,688 Net income before income taxes 433,909 340,334 114,688 The components of the provision for income taxes consisted of the following (in thousands): Year Ended 2015 2014 2013 Current: Bermuda $ — $ — $ — United States (4,621 ) 9,162 (8,098 ) Foreign - Other (882 ) (3,278 ) (860 ) Total current: (5,503 ) 5,884 (8,958 ) Deferred: Bermuda — — — United States (1,269 ) (3,617 ) (2,844 ) Foreign - Other — — — Total deferred: (1,269 ) (3,617 ) (2,844 ) Income tax benefit (expense) $ (6,772 ) $ 2,267 $ (11,802 ) Our reconciliation of income tax benefit (expense) computed by applying our Bermuda statutory rate and reported income tax expense was as follows (in thousands): Year Ended 2015 2014 2013 Tax at Bermuda statutory rate $ — $ — $ — Foreign income taxes at different rates (7,864 ) (2,813 ) (14,020 ) Benefit from global tax platform(1) — — 6,074 Tax contingencies (283 ) (275 ) (1,394 ) Return to provision adjustments 1,370 14,444 — Benefit (expense) from change in tax status 5 1,462 (2,462 ) Valuation allowance — (10,551 ) — Income tax benefit (expense) $ (6,772 ) $ 2,267 $ (11,802 ) (1) During 2013, we implemented a restructuring plan to provide a global tax platform for international expansion. As part of the plan, the Company became a tax resident of the U.K. As such, it qualifies for relief from U.S. Branch Profits taxes under the U.S.-U.K. Tax Treaty. In addition, the restructuring resulted in additional interest and depreciation which reduced the Company’s overall income tax expense. Deferred tax assets and liabilities were as follows: As of December 31, 2015 2014 Deferred tax assets: Loss carryforwards $ 85,939 $ 77,031 Shares in foreign subsidiary — 17,808 Other 1,460 1,121 Valuation allowance (61,437 ) (81,704 ) Total net deferred assets 25,962 14,256 Deferred tax liabilities: Property and equipment (33,862 ) (20,888 ) Total deferred tax liabilities (33,862 ) (20,888 ) Net deferred tax liability $ (7,900 ) $ (6,632 ) We have U.S. net operating loss carryforwards of $197.0 million and $158.6 million, for the years ended December 31, 2015 and 2014, respectively, which begin to expire in 2023. We have U.S. state jurisdiction net operating loss carryforwards of $10.7 million and $24.5 million for the years ended December 31, 2015 and 2014, respectively, which expire in the years 2025 through 2035. In 2014, based on the weight of available evidence, we recorded a valuation allowance of $10.6 million with respect to the U.S. deferred tax assets of one of our U.S. subsidiaries. Included above are deferred tax assets associated with our operations in Norway for which we have provided a full valuation allowance. We have Norway net operating loss carryforwards of $35.1 million and $58.8 million for the years ended December 31, 2015 and 2014, respectively, which can be carried forward indefinitely. On November 19, 2014, we acquired the stock of Prestige. Included above are deferred tax assets associated with Prestige, including net operating loss carryforwards of $126.9 million and 104.3 million for the years ended December 31, 2015 and 2014, respectively, which begin to expire in 2023, and state net operating loss carryforwards of nil and $0.1 million for the years ended December 31, 2015 and 2014, respectively. In prior years, we recorded a valuation allowance of $36.5 million with respect to the Prestige deferred tax assets based on the weight of available evidence. Section 382 of the Code (“Section 382”) may limit the amount of taxable income that can be offset by the Prestige NOL carryforwards. As a result of the Corporate Reorganization in 2013, we obtained certain U.S. net operating losses of our shareholders. These loss carryforwards were subject to Section 382 which may limit the amount of taxable income that can be offset by NOL carryforwards after a change in control (generally greater than 50% change in ownership). We do not expect the Section 382 limitation to materially impact the deferred tax asset as it relates to the NOL. The following is a tabular reconciliation of the total amounts of unrecognized tax benefits (in thousands): As of December 31, 2015 2014 Unrecognized tax benefits, beginning of the year $ 11,174 $ 10,894 Gross increases in tax positions from prior periods — — Gross decreases in tax positions from prior periods — — Gross increases in tax positions from current periods — 280 Settlement of tax positions — — Lapse of statute of limitations — — Unrecognized tax benefits, end of year $ 11,174 $ 11,174 If the $11.2 million unrecognized tax benefits at December 31, 2015 were recognized, our effective tax rate would be affected. We believe that there will not be a significant increase or decrease to the tax positions within 12 months of the reporting date. We recognize interest and penalties related to unrecognized tax benefits in income tax expense. We file income tax returns in the U.S. federal jurisdiction, various U.S. state jurisdictions and foreign jurisdictions. We are generally no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by authorities for years prior to 2011, except for years in which NOLs generated prior to 2011 are utilized. Due to our international structure as well as the existence of international tax treaties that exempt taxation on certain activities, the repatriation of earnings from our subsidiaries would have no tax impact. We derive our income from the international operation of ships. We are engaged in a trade or business in the U.S. and receive income from sources within the U.S. Under Section 883, certain foreign corporations are exempt from U. S. federal income or branch profits tax on U.S.-source income derived from or incidental to the international operation of ships. Applicable U.S. treasury regulations provide that a foreign corporation will qualify for the benefits of Section 883 if, in relevant part: (i) the foreign country in which the corporation is organized grants an equivalent exemption for income from the operation of ships of sufficiently broad scope to corporations organized in the U.S., and (ii) the foreign corporation has one or more classes of stock that are “primarily and regularly traded on an established securities market” in the U.S. or another qualifying country. We believe that we quality for the benefits of Section 883 because we are incorporated in qualifying countries and our ordinary shares are primarily and regularly traded on an established securities market in the U.S. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. Commitments and Contingencies Operating Leases Total expense under non-cancelable operating lease commitments, primarily for offices, motor vehicles and office equipment was $12.6 million, $9.2 million and $9.4 million for the years ended December 31, 2015, 2014 and 2013, respectively. As of December 31, 2015, minimum annual rentals for non-cancelable leases with initial or remaining terms in excess of one year were as follows (in thousands): Year Amount 2016 $ 12,448 2017 13,606 2018 13,662 2019 13,660 2020 14,490 Thereafter 88,814 Total minimum annual rentals $ 156,680 Rental payments applicable to such operating leases are recognized on a straight-line basis over the term of the lease. Ship Construction Contracts We have orders with Meyer Werft for three Breakaway Plus Class Ships for delivery in the spring of 2017, spring of 2018 and fall of 2019. These ships will be the largest in our fleet, reaching approximately 164,600 Gross Tons and approximately 4,100 to 4,350 Berths each and will be similar in design and innovation to our Breakaway Class Ships. The combined contract price of these three ships is approximately €2.5 billion, or $2.7 billion based on the euro/U.S. dollar exchange rate as of December 31, 2015. We have export credit financing in place that provides financing for 80% of their contract prices. We also have a contract with Fincantieri shipyard to build a cruise ship to be named Seven Seas Explorer. The original contract price of this ship is approximately €343.0 million, or approximately $372.6 million, based on the euro/U.S. dollar exchange rate as of December 31, 2015. We have export credit financing in place that provides financing for 80% of the ship’s contract price. Seven Seas Explorer is expected to be delivered in the summer of 2016. In connection with the contracts to build the ships, we do not anticipate any contractual breaches or cancellation to occur. However, if any would 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. As of December 31, 2015, minimum annual payments for non-cancelable ship construction contracts with initial or remaining terms in excess of one year were as follows (in thousands): Year Amount 2016 $ 536,815 2017 806,681 2018 890,447 2019 758,114 2020 — Thereafter — Total minimum annual payments $ 2,992,057 Port Facility Commitments As of December 31, 2015, future commitments to pay for usage of certain port facilities were as follows (in thousands): Year Amount 2016 $ 33,217 2017 29,141 2018 20,403 2019 20,858 2020 21,326 Thereafter 60,889 Total port facility future commitments $ 185,834 The FMC requires evidence of financial responsibility for those offering transportation on passenger ships operating out of U.S. ports to indemnify passengers in the event of non-performance of the transportation. Accordingly, each of our three brands are required to maintain a $30.0 million third-party performance guarantee in respect of liabilities for non-performance of transportation and other obligations to passengers. The guarantee requirements are subject to additional consumer price index-based adjustments. Also, each of our brands has a legal requirement to maintain a security guarantee based on cruise business originated from the U.K. and, accordingly, has established separate bonds with the Association of British Travel Agents currently valued at approximately British Pound Sterling 6.5 million in the aggregate. We also are required to establish financial responsibility by other jurisdictions to meet liability in the event of non-performance of our obligations to passengers from those jurisdictions. From time to time, various other regulatory and legislative changes have been or may in the future be proposed that may have an effect on our operations in the U.S. and the cruise industry in general. Litigation In 2015, the Alaska Department of Environmental Conservation issued Notices of Violations to major cruise lines that operated in the state of Alaska, including NCLH, for alleged violations of the Alaska Marine Vessel Visible Emission Standards that occurred over the last several years. We are cooperating with the Alaska Department of Environmental Conservation and conducting our own internal investigation into these matters. However, we do not believe the ultimate outcome will have a material impact on our financial condition, results of operations or cash flows. In the normal course of our business, various claims and lawsuits have been filed or are pending against us. Most of these claims and lawsuits are covered by insurance and, accordingly, the maximum amount of our liability is typically limited to our deductible amount. Nonetheless, the ultimate outcome of these claims and lawsuits that are not covered by insurance cannot be determined at this time. We have evaluated our overall exposure with respect to all of our threatened and pending litigation and, to the extent required, we have accrued amounts for all estimable probable losses associated with our deemed exposure. We are currently unable to estimate any other potential contingent losses beyond those accrued, as discovery is not complete nor is adequate information available to estimate such range of loss or potential recovery. We intend to vigorously defend our legal position on all claims and, to the extent necessary, seek recovery. |
Restructuring Costs
Restructuring Costs | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring Costs [Abstract] | |
Restructuring Costs | 13. Restructuring Costs Due to the Acquisition of Prestige, a number of employee positions were consolidated. As of December 31, 2015, we had an accrual balance of $4.1 million for restructuring costs for severance and other employee-related costs. The expense of $15.0 million for the year ended December 31, 2015 is included in marketing general and administrative expense. The following table summarizes changes in the accrual for restructuring costs (in thousands): Restructuring costs Accrued expense balance as of December 31, 2014 $ (7,956 ) Amounts paid 18,815 Additional accrued expense (15,003 ) Accrued expense balance as of December 31, 2015 $ (4,144 ) |
Concentration Risk
Concentration Risk | 12 Months Ended |
Dec. 31, 2015 | |
Risks and Uncertainties [Abstract] | |
Concentration Risk | 14. Concentration Risk We contract with a single vendor to provide many of our hotel and restaurant services including both food and labor costs. We incurred expenses of $122.4 million and $22.5 million for the years ended December 31, 2015 and 2014, respectively, which are recorded in payroll and related and food expenses in our consolidated statements of income. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | 15. Supplemental Cash Flow Information For the years ended December 31, 2015, 2014 and 2013 we paid interest and related fees of $218.3 million, $233.5 million and $316.9 million, respectively. For the year ended December 31, 2014, we had a non-cash investing and financing activity related to a seller financed capital expenditure of $82.0 million. For the year ended December 31, 2015 and 2013 we had non-cash investing activities in connection with capital leases of $31.1 million and $15.5 million, respectively. For the years ended December 31, 2015, 2014 and 2013 we paid income taxes of $10.3 million, $9.8 million and $1.1 million, respectively. For the year ended December 31, 2015 and 2014 we had non-cash investing activities for capital expenditures of $41.1million and $13.0 million, respectively. For the year ended December 31, 2013, we had a non-cash financing activity of $10.0 million in connection with the modification of certain fully-vested Management NCL Corporation Units from liability to equity award status. Upon the IPO this liability award was fully vested at the time of the settlement and was reclassified to equity in the balance sheet resulting in a non-cash financing activity. We refer you to Note—4 “The Acquisition of Prestige” for non-cash transactions in conjunction with the Acquisition of Prestige. |
Revisions to the Consolidated S
Revisions to the Consolidated Statement of Cash Flows | 12 Months Ended |
Dec. 31, 2015 | |
Revision To Consolidated Statement Of Cash Flows [Abstract] | |
Revisions to the Consolidated Statement of Cash Flows | 16. Revisions to the Consolidated Statement of Cash Flows During the three months ended September 30, 2015, we determined that for the three months ended March 31, 2015 and six months ended June 30, 2015, cash payments related to property and equipment were reported as a decrease in cash flows from operating activities related to the change in accrued expenses and other liabilities and prepaid and other assets when it should have been reported as a decrease in cash flows from investing activities related to additions to property and equipment. The Consolidated Statements of Cash Flows for the three months ended March 31, 2015 and six months ended June 30, 2015 will be revised in future Form 10-Q filings, to increase cash from operating activities related to the change in accrued expenses and other liabilities and prepaid and other assets and increase investing cash outflow from additions to property and equipment by $14.6 million and 18.5 million, respectively. We have determined that the revision is not material to our consolidated financial statements individually and in the aggregate. During the three months ended June 30, 2015, we determined that for the year ended December 31, 2014, non-cash transactions related to the financing of one of our ships was reported as cash used for additions to property and equipment and cash provided by proceeds from long-term debt. The Consolidated Statement of Cash Flows, for the year ended December 31, 2014, has been revised in this annual report on Form 10-K by decreasing cash used for additions to property and equipment and cash provided by proceeds from long-term debt by $82.0 million. We have determined that the revision is not material to our consolidated financial statements. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | 17. Subsequent Event In the first quarter of 2016, we executed a purchase and sale agreement for our interest in certain land-based operations in Hawaii. The amount of the transaction is considered immaterial to our consolidated financial statements. |
Quarterly Selected Financial Da
Quarterly Selected Financial Data | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Selected Financial Data (Unaudited) (in thousands, except per share data) | 18. Quarterly Selected Financial Data (Unaudited) (in thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter 2015 2014 2015 2014 2015 2014 2015 2014 Total revenue $ 938,182 $ 664,028 $ 1,085,433 $ 765,927 $ 1,284,910 $ 907,017 $ 1,036,523 $ 788,909 Operating income 60,349 73,089 217,383 148,588 306,832 234,822 117,922 46,442 Net income (loss) attributable to Norwegian Cruise Line Holdings Ltd. (21,456 ) 51,267 158,494 111,616 251,787 201,078 38,312 (25,609 ) Earnings (loss) per share: Basic $ (0.10 ) $ 0.25 $ 0.70 $ 0.54 $ 1.11 $ 0.99 $ 0.17 $ (0.12 ) Diluted $ (0.10 ) $ 0.24 $ 0.69 $ 0.54 $ 1.09 $ 0.97 $ 0.17 $ (0.12 ) The seasonality of the North American cruise industry generally results in the greatest demand for cruises during the Northern Hemisphere’s summer months. This predictable seasonality in demand has resulted in fluctuations in our revenue and results of operations. The seasonality of our results is increased due to ships being taken out of service for regularly scheduled Dry-docks, which we typically scheduled during non-peak demand periods. |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Our consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and contain all normal recurring adjustments necessary for a fair statement of the results for the periods presented. Estimates are required for the preparation of consolidated financial statements in accordance with generally accepted accounting principles and actual results could differ from these estimates. All significant intercompany accounts and transactions are eliminated in consolidation. |
Reclassification | Reclassification Certain amounts in prior periods have been reclassified to conform to the current period presentation. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents are stated at cost, and include cash and investments with original maturities of three months or less at acquisition and also include amounts due from credit card processors. |
Restricted Cash | Restricted Cash Restricted cash consists of cash collateral in respect of certain agreements and is included in prepaid expenses and other assets and other long-term assets in our consolidated balance sheets. |
Accounts Receivable, Net | Accounts Receivable, Net Accounts receivable are shown net of an allowance for doubtful accounts of $3.7 million and $2.8 million as of December 31, 2015 and 2014, respectively. |
Inventories | Inventories Inventories mainly consist of provisions, supplies and fuel and are carried at the lower of cost or market using the first-in, first-out method of accounting. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred except for those that result in tangible assets, including brochures, which are treated as prepaid expenses and charged to expense as consumed. Advertising costs of $12.5 million and $14.3 million as of December 31, 2015 and 2014, respectively, are included in prepaid expenses and other assets. Expenses related to advertising costs totaled $232.2 million, $122.5 million and $89.0 million for the years ended December 31, 2015, 2014 and 2013, respectively. |
Earnings Per Share | Earnings Per Share Basic EPS is computed by dividing net income attributable to Norwegian Cruise Line Holdings Ltd. by the basic weighted-average number of shares outstanding during each period. Diluted EPS is computed by dividing net income by diluted weighted-average shares outstanding. A reconciliation between basic and diluted EPS was as follows (in thousands, except share and per share data): Year Ended December 31, 2015 2014 2013 Net income attributable to Norwegian Cruise Line Holdings Ltd. $ 427,137 $ 338,352 $ 101,714 Net income $ 427,137 $ 342,601 $ 102,886 Basic weighted-average shares outstanding 226,591,437 206,524,968 202,993,839 Potentially dilutive shares 3,448,695 5,492,816 6,245,645 Diluted weighted-average shares outstanding 230,040,132 212,017,784 209,239,484 Basic EPS $ 1.89 $ 1.64 $ 0.50 Diluted EPS $ 1.86 $ 1.62 $ 0.49 |
Property and Equipment, Net | Property and Equipment, Net Property and equipment are recorded at cost. Major renewals and improvements that we believe add value to our ships are capitalized as a cost of the ship while costs of repairs and maintenance, including Dry-dock costs, are charged to expense as incurred. During ship construction, certain interest is capitalized as a cost of the ship. Gains or losses on the sale of property and equipment are recorded as a component of operating income (expense) in our consolidated statements of operations. Depreciation is computed on the straight-line basis over the estimated useful lives of the assets and after a 15% reduction for the estimated residual values of ships as follows: Useful Life Ships 30 years Computer hardware and software 3-10 years Other property and equipment 3-40 years Leasehold improvements Shorter of lease term or asset life Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term or related asset life. Long-lived assets are reviewed for impairment, based on estimated future cash flows, whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Assets are grouped and evaluated at the lowest level for which there are identifiable cash flows that are largely independent of the cash flows of other groups of assets. We consider historical performance and future estimated results in our evaluation of potential impairment and then compare the carrying amount of the asset to the estimated future cash flows expected to result from the use of the asset. If the carrying amount of the asset exceeds estimated expected undiscounted future cash flows, we measure the amount of the impairment by comparing the carrying amount of the asset to its fair value. We estimate fair value based on the best information available making whatever estimates, judgments and projections are considered necessary. The estimation of fair value is generally measured by discounting expected future cash flows at discount rates commensurate with the risk involved. |
Goodwill and Tradenames | Goodwill and Tradenames Goodwill represents the excess of cost over the fair value of net assets acquired. Goodwill and other indefinite-lived assets, principally tradenames, are reviewed for impairment on an annual basis or earlier if there is an event or change in circumstances that would indicate that the carrying value of these assets could not be fully recovered. We use the Step 0 Test which allows us to first assess qualitative factors to determine whether it is more likely than not (i.e., more than 50%) that the fair value of a reporting unit is less than its carrying value. In order to make this evaluation, we consider the following circumstances as well as others: · General macroeconomic conditions such as a deterioration in general economic conditions; limitations on accessing capital; fluctuations in foreign exchange rates; or other developments in equity and credit markets; · Industry and market conditions such as a deterioration in the environment in which an entity operates; an increased competitive environment; a decline in market-dependent multiples or metrics (in both absolute terms and relative to peers); a change in the market for an entity’s products or services; or a regulatory or political development; · Changes in cost factors that have a negative effect on earnings and cash flows; · Overall financial performance (for both actual and expected performance); · Entity and reporting unit specific events such as changes in management, key personnel, strategy, or customers; litigation; or a change in the composition or carrying amount of net assets; and · Share price (in both absolute terms and relative to peers). We also may conduct a quantitative assessment comparing the fair value of each reporting unit to its carrying value, including goodwill. This is called the Step I Test which consists of a combined approach using the expected future cash flows and market multiples to determine the fair value of the reporting units. Our discounted cash flow valuation reflects our projection for growth and profitability, taking into account our assessment of future market conditions and demand, as well as a determination of a cost of capital that incorporates both business and financial risks. We believe that the combined approach is the most representative method to assess fair value as it utilizes expectations of long-term growth as well as current market conditions. We have concluded that our business has three reporting units. Each brand, Oceania Cruises, Regent and Norwegian, constitutes a business for which discrete financial information is available and management regularly reviews the operating results and, therefore, each brand is considered an operating segment. |
Revenue and Expense Recognition | Revenue and Expense Recognition Deposits received from guests for future voyages are recorded as advance ticket sales and are subsequently recognized as passenger ticket revenue along with onboard and other revenue, and all associated direct costs of a voyage are recognized as cruise operating expenses on a pro-rata basis over the period of the voyage. Revenue and expenses include port fees and taxes. The amounts included on a gross basis are $242.1 million, $212.3 million and $172.5 million for the years ended December 31, 2015, 2014 and 2013, respectively. |
Foreign Currency | Foreign Currency The majority of our transactions are settled in U.S. dollars. We translate assets and liabilities of our foreign subsidiaries at exchange rates in effect at the balance sheet date. Gains or losses resulting from transactions denominated in other currencies are recognized in our consolidated statements of operations within other income (expense) and such gains were approximately $11.0 million, $6.0 million and $0.4 million for the years ended December 31, 2015, 2014 and 2013, respectively. |
Derivative Instruments and Hedging Activity | Derivative Instruments and Hedging Activity We enter into derivative contracts to reduce our exposure to fluctuations in foreign currency exchange rates, interest rates and fuel prices. The criteria used to determine whether a transaction qualifies for hedge accounting treatment includes the correlation between fluctuations in the fair value of the hedged item and the fair value of the related derivative instrument and its effectiveness as a hedge. As the derivative is marked to fair value, we elected an accounting policy to net the fair value of our derivatives when a master netting arrangement exists with our counterparties. A derivative instrument that hedges a forecasted transaction or the variability of cash flows related to a recognized asset or liability may be designated as a cash flow hedge. Changes in fair value of derivative instruments that are designated as cash flow hedges are recorded as a component of accumulated other comprehensive income (loss) until the underlying hedged transactions are recognized in earnings. To the extent that an instrument is not effective as a hedge, gains and losses are recognized in other income (expense) in our consolidated statements of operations. Realized gains and losses related to our effective fuel hedges are recognized in fuel expense. For presentation in our consolidated statements of cash flows, we have elected to classify the cash flows from our cash flow hedges in the same category as the cash flows from the items being hedged. |
Concentrations of Credit Risk | Concentrations of Credit Risk 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 derivative instruments, our revolving credit facility and new ship progress payment guarantees, is not considered significant, as we primarily conduct business with large, well-established financial institutions and insurance companies that we have well-established relationships with and that have credit risks acceptable to us or the credit risk is spread out among a large number of creditors. We do not anticipate non-performance by any of our significant counterparties. |
Insurance | Insurance We use a combination of insurance and self-insurance for a number of risks including claims related to crew and guests, hull and machinery, war risk, workers’ compensation, property damage and general liability. Liabilities associated with certain of these risks, including crew and passenger claims, are estimated actuarially based upon known facts, historical trends and a reasonable estimate of future expenses. While we believe these accruals are adequate, the ultimate losses incurred may differ from those recorded. |
Income Taxes | Income Taxes Deferred tax assets and liabilities are calculated in accordance with the liability method. Deferred taxes are recorded using the currently enacted tax rates that apply in the periods that the differences are expected to reverse. Deferred taxes are not discounted. We provide a valuation allowance on deferred tax assets when it is more likely than not that such assets will not be realized. With respect to acquired deferred tax assets, future reversals of the valuation allowance will first be applied against goodwill and other intangible assets before recognition of a benefit in our consolidated statements of operations. |
Share-Based Compensation | Share-Based Compensation We recognize expense for our share-based compensation awards using a fair-value-based method. Share-based compensation expense is recognized over the requisite service period for awards that are based on service period and not contingent upon any future performance. We refer you to Note 10—“Employee Benefits and Share Option Plans.” |
Segment Reporting | Segment Reporting We have concluded that our business has a single reportable segment. Each brand, Oceania Cruises, Regent and Norwegian, constitutes a business for which discrete financial information is available and management regularly reviews the operating results and, therefore, each brand is considered an operating segment. Our operating segments have similar economic and qualitative characteristics, including similar 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 was 75%, 73 % and 74% for the years ended December 31, 2015, 2014 and 2013, respectively. No other individual country’s revenues exceeded 10% in any of our last three years. Substantially all of our long–lived assets are located outside of the U.S. and consist primarily of our ships. We have 16 ships with Bahamas registry with a carrying value of $7.2 billion and $6.4 billion as of December 31, 2015 and 2014, respectively. We have five ships with Marshall Island registry with a carrying value of $1.4 billion as of December 31, 2015 and 2014. We also have one ship with U.S. registry with a carrying value of $0.3 billion as of December 31, 2015 and 2014 and one ship with Bermuda registry with a carrying value of $0.08 billion as of December 31, 2015 and 2014. |
Recently Issued Accounting Policies | Recently Issued Accounting Policies In July 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-11 to simplify the measurement of inventory for all entities. This applies to all inventory that is measured using either the first-in, first-out or average cost method. The guidance requires an entity to measure inventory at the lower of cost or net realizable value. The guidance must be applied prospectively and will be effective for our interim and annual reporting periods beginning after December 15, 2016. Early adoption is permitted as of the beginning of an interim or annual reporting period. We are currently evaluating the impact of the adoption of this newly issued guidance to our consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-05 to clarify a customer’s accounting for fees paid in a cloud computing arrangement. The amendments provide guidance to customers about whether a cloud computing arrangement includes a software license or if the arrangement should be accounted for as a service contract. This guidance will impact the accounting of software licenses but will not change a customer’s accounting for service contracts. The guidance will be effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. An entity can elect to adopt the amendments either prospectively or retrospectively. We are currently evaluating the impact, if any, of the adoption of this newly issued guidance to our consolidated financial statements. In May 2014, FASB issued ASU No. 2014-09 which requires entities to recognize revenue through the application of a five-step model, including identification of the contract, identification of the performance obligations, determination of the transaction price, allocation of the transaction price to the performance obligation and recognition of revenue as the entity satisfies the performance obligations. Entities have the option of using either a full retrospective or a modified approach to adopt the guidance. In August 2015, the FASB issued ASU No. 2015-14 deferring the effective date for one year. We can elect to adopt the provisions of ASU No. 2014-09 for annual periods beginning after December 15, 2017 including interim periods within that reporting period or we can elect to early adopt the guidance as of the original effective date. We are currently evaluating the impact of the adoption of this newly issued guidance to our consolidated financial statements. |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Schedule of reconciliation between basic and diluted EPS | Year Ended December 31, 2015 2014 2013 Net income attributable to Norwegian Cruise Line Holdings Ltd. $ 427,137 $ 338,352 $ 101,714 Net income $ 427,137 $ 342,601 $ 102,886 Basic weighted-average shares outstanding 226,591,437 206,524,968 202,993,839 Potentially dilutive shares 3,448,695 5,492,816 6,245,645 Diluted weighted-average shares outstanding 230,040,132 212,017,784 209,239,484 Basic EPS $ 1.89 $ 1.64 $ 0.50 Diluted EPS $ 1.86 $ 1.62 $ 0.49 |
Schedule of estimated residual values of ships | Useful Life Ships 30 years Computer hardware and software 3-10 years Other property and equipment 3-40 years Leasehold improvements Shorter of lease term or asset life |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of gross carrying amounts included within goodwill and intangible assets, related accumulated amortization and the weighted average amortization periods of intangible assets | December 31, 2015 Gross Carrying Accumulated Net Carrying Weighted- Customer relationship $ 120,000 $ (15,527 ) $ 104,473 6.0 Backlog 70,000 (70,000 ) — 1.0 Licenses 3,368 (208 ) 3,160 5.6 Total intangible assets subject to amortization $ 193,368 $ (85,735 ) $ 107,633 License (Indefinite-lived) $ 4,427 $ — $ — December 31, 2014 Gross Carrying Accumulated Net Carrying Weighted- Customer relationship $ 120,000 $ (4,556 ) $ 115,444 6.0 Backlog 70,000 (7,972 ) 62,028 1.0 Total intangible assets subject to amortization $ 190,000 $ (12,528 ) $ 177,472 License (Indefinite-lived) $ 4,427 $ — $ — |
Schedule of changes in amortization of intangibles | Year Ended 2015 2014 Amortization expense $ 73,207 $ 12,528 |
Schedule of estimated future aggregate amortization expense | Year ended December 31, Amortization 2016 $ 21,659 2017 31,177 2018 26,058 2019 18,489 2020 9,906 |
The Acquisition of Prestige (Ta
The Acquisition of Prestige (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Schedule of purchase price allocation | Consideration Allocated: Accounts receivable $ 6,916 Inventories 12,579 Prepaid expenses and other assets 48,670 Amortizable intangible assets 190,000 Property and equipment 2,175,039 Goodwill and tradenames 1,595,126 Other long-term assets 15,607 Current portion of long-term debt (97,006 ) Accounts payable (14,880 ) Accrued expenses and other liabilities (190,256 ) Advance ticket sales (439,313 ) Long-term debt (1,456,038 ) Other long-term liabilities (142,216 ) Total consideration allocated, net of $295.8 million of cash acquired $ 1,704,228 |
Schedule of intangible assets acquired | Goodwill $ 985,126 Tradenames (indefinite lived) 610,000 Backlog (1 year amortization period) 70,000 Customer relationships (6 year amortization period) 120,000 |
Schedule of Pro forma financial information | Year Ended December 31, 2014 2013 Total revenue $ 4,310,079 $ 3,704,692 Net income (loss) attributable to Norwegian Cruise Line Holdings Ltd. 497,020 (683 ) Earnings per share: Basic $ 2.21 $ — Dilutive $ 2.19 $ — |
Schedule Of Change In Fair Value Of The Contingent Consideration Liability | Contingent Balance as of December 31, 2014 $ 43,400 Fair value adjustment (Level 3) (43,400 ) Balance as of December 31, 2015 $ — |
Accumulated Other Comprehensi30
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Schedule of accumulated other comprehensive income (loss) | Accumulated other comprehensive income (loss) for the year ended December 31, 2015 was as follows (in thousands): Accumulated Change Change Accumulated other comprehensive income (loss) at beginning of period $ (242,642 ) $ (234,188 ) $ (8,454 ) Current period other comprehensive loss before reclassifications (262,227 ) (262,852 ) 625 Amounts reclassified 92,219 91,742 (1) 477 (2) Accumulated other comprehensive income (loss) at end of period $ (412,650 ) $ (405,298 )(3) $ (7,352 ) (1) We refer you to Note 9—“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 payroll and related expense. (3) Of the existing amounts related to derivatives designated as cash flow hedges, approximately $135.2 million of loss is expected to be reclassified into earnings in the next 12 months. Accumulated other comprehensive income (loss) for the year ended December 31, 2014 was as follows (in thousands): Accumulated Change Change Accumulated other comprehensive income (loss) at beginning of period $ (16,690 ) $ (10,532 ) $ (6,158 ) Current period other comprehensive loss before reclassifications (239,597 ) (236,925 ) (2,672 ) Amounts reclassified 13,645 13,269 (1) 376 (2) Accumulated other comprehensive income (loss) at end of period $ (242,642 ) $ (234,188 ) $ (8,454 ) (1) We refer you to Note 9—“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 payroll and related expense. Accumulated other comprehensive income (loss) for the year ended December 31, 2013 was as follows (in thousands): Accumulated Change Change Accumulated other comprehensive income (loss) at beginning of period $ (17,619 ) $ (7,872 ) $ (9,747 ) Current period other comprehensive income before reclassifications 6,104 3,177 2,927 Amounts reclassified (5,175 ) (5,837 )(1) 662 (2) Accumulated other comprehensive income (loss) at end of period $ (16,690 ) $ (10,532 ) $ (6,158 ) (1) We refer you to Note 9—“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 payroll and related expense. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property Plant And Equipment [Abstract] | |
Schedule of property and equipment | December 31, 2015 2014 Ships $ 10,765,525 $ 9,706,093 Ships under construction 300,575 290,381 Land 1,009 1,009 Other 434,881 351,377 11,501,990 10,348,860 Less: accumulated depreciation and amortization (2,043,185 ) (1,725,087 ) Property and Equipment, Net $ 9,458,805 $ 8,623,773 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | Interest Rate Maturities Balance 2015 2014 Through 2015 2014 (in thousands) $600.0 million 4.625% senior unsecured notes 4.625 % — % 2020 $ 590,037 $ — €662.9 million Norwegian Epic term loan (1) 2.43 % 2.02 % 2022 460,870 524,006 $625.0 million senior secured revolving credit facility 2.78 % 2.16 % 2018 75,000 200,000 $350.0 million senior secured term loan facility 4.00 % 4.00 % 2021 338,353 340,474 $1,375.0 million term loan facility 2.85 % 2.17 % 2018 1,185,720 1,301,210 €308.1 million Pride of Hawai’i loan (1) 1.27 % 1.18 % 2018 89,867 123,638 $300.0 million 5.00% senior unsecured notes (2) — 5.00 % 2018 — 294,746 $334.1 million Norwegian Jewel term loan 1.28 % 1.18 % 2017 53,534 78,545 €258.0 million Pride of America Hermes loan (1) 1.64 % 1.19 % 2017 37,778 61,313 €529.8 million Breakaway one loan (1) 1.92 % 1.84 % 2025 522,859 576,266 €529.8 million Breakaway two loan (1) 4.50 % 4.50 % 2026 592,531 647,258 €590.5 million Breakaway three loan (1) 2.98 % 2.98 % 2027 711,187 121,278 €590.5 million Breakaway four loan (1) 2.98 % 2.98 % 2029 108,964 35,057 €126 million Norwegian Jewel term loan (1) 1.27 % 1.18 % 2017 28,649 56,382 €126 million Norwegian Jade term loan (1) 1.27 % 1.18 % 2017 29,149 56,991 €666 million Seahawk 1 term loan (1) 3.92 % 3.92 % 2030 40,845 40,845 €666 million Seahawk 2 term loan (1) 3.92 % 3.92 % 2031 40,845 40,845 $680 million 5.25% senior unsecured notes 5.25 % 5.25 % 2019 670,059 667,559 Sirena loan 2.75 % 2.75 % 2019 53,229 82,000 Marina newbuild loan (3) 1.01 % 0.88 % 2023 335,135 379,868 Riviera newbuild loan (4) 1.08 % 0.87 % 2024 382,173 427,184 Capital lease and license obligations 1.62%-12.56 % 1.62%-12.935 % 2022 50,753 24,558 Total debt 6,397,537 6,080,023 Less: current portion of long-term debt (629,840 ) (576,947 ) Total long-term debt $ 5,767,697 $ 5,503,076 (1) Currently U.S. dollar-denominated. (2) Net of unamortized original issue discount of $1.1 million as of December 31, 2014. (3) Includes premium of $0.3 million and $0.4 million as of December 31, 2015 and 2014, respectively. (4) Includes premium of $0.4 million and $0.5 million as of December 31, 2015 and 2014, respectively. |
Schedule Of Reconciliation Of Changes To Long-Term Debt | December 31, 2015 2014 Long-term debt balance prior to the adoption of ASU No. 2015-03 $ 6,502,834 $ 6,184,104 Less: changes due to the adoption of the ASU No. 2015-03 105,297 104,081 Long-term debt balance $ 6,397,537 $ 6,080,023 |
Schedule of principal repayments on long-term debt | Year Amount 2016 $ 629,840 2017 591,270 2018 1,383,186 2019 1,051,847 2020 963,797 Thereafter 1,882,894 Total $ 6,502,834 |
Related Party Disclosures (Tabl
Related Party Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Schedule of transactions with Genting HK, the Apollo Funds and the TPG Viking Funds | Shareholder Number of Percentage Genting HK (1) 25,398,307 11.1 % Apollo Holders (2) 36,103,782 15.8 % TPG Viking Funds (3) 5,329,834 2.4 % (1) Genting HK owns our ordinary shares indirectly through Star NCLC Holdings Ltd., a Bermuda wholly-owned subsidiary. (2) The Apollo Holders include AAA Guarantor—Co-Invest VI (B), L.P., AIF VI NCL (AIV), L.P., AIF VI NCL (AIV II), L.P., AIF VI NCL (AIV III), L.P., AIF VI NCL (AIV IV), L.P., Apollo Overseas Partners (Delaware) VI, L.P., Apollo Overseas Partners (Delaware 892) VI, L.P., Apollo Overseas Partners VI, L.P., Apollo Overseas Partners (Germany) VI, L.P., AAA Guarantor—Co-Invest VII, L.P., AIF VI Euro Holdings, L.P., AIF VII Euro Holdings, L.P., Apollo Alternative Assets, L.P., Apollo Management VI, L.P. and Apollo Management VII, L.P. (3) The TPG Viking Funds include TPG Viking, L.P., a Delaware limited partnership, TPG Viking AIV I, L.P., a Cayman Islands exempted limited partnership, TPG Viking AIV II, L.P., a Cayman Islands exempted limited partnership and TPG Viking AIV III, L.P., a Delaware limited partnership. |
Fair Value Measurements and D34
Fair Value Measurements and Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Schedule of derivatives measured at fair value | Asset Liability Balance Sheet location December 31, December 31, December 31, December 31, Fuel swaps designated as hedging instruments Accrued expenses and other liabilities $ — $ — $ 128,740 $ 111,304 Other long-term liabilities — 190 132,494 77,250 Foreign currency forward contracts designated as hedging instruments Other long-term assets 3,446 — 1,370 — Accrued expenses and other liabilities — — 8,737 29,498 Other long-term liabilities 551 — 24,181 118 Foreign currency collar not designated as a hedging instrument Accrued expenses and other liabilities — — 42,993 — Other long-term liabilities — — — 16,744 Interest rate swaps designated as hedging instruments Accrued expenses and other liabilities — — 4,079 5,736 Other long-term liabilities — — 3,395 3,104 Interest rate swap not designated as a hedging instrument Accrued expenses and other liabilities — — — 3,823 |
Schedule of gross and net amounts recognized within assets and liabilities | December 31, 2015 Gross Amounts Gross Total Net Gross Net Amounts Assets $ 3,446 $ (1,370 ) $ 2,076 $ (2,043 ) $ 33 Liabilities 344,619 (551 ) 344,068 (336,645 ) 7,423 December 31, 2014 Gross Amounts Gross Total Net Gross Net Amounts Liabilities $ 247,577 $ (190 ) $ 247,387 $ (59,023 ) $ 188,364 |
Schedule of effects of derivatives not designated as cash flow hedges | Year Ended December 31, 2015 2014 2013 Amount reclassified from accumulated other comprehensive income (loss) into other income (expense) $ 10,000 $ — $ — Loss recognized in other income (expense) (4,727 ) — — |
Fuel Swaps | |
Schedule of effects of derivatives designated and dedesignated as cash flow hedges | Year Ended December 31, 2015 2014 2013 Gain (loss) recognized in other comprehensive income (loss) – effective portion $ (173,513 ) $ (198,595 ) $ 8,532 Loss recognized in other income (expense) – ineffective portion (16,011 ) (5,753 ) (345 ) Amount reclassified from accumulated other comprehensive income (loss) into fuel expense 75,808 8,388 (6,250 ) |
Fuel Collars And Options | |
Schedule of effects of derivatives designated and dedesignated as cash flow hedges | Year Ended December 31, 2015 2014 2013 Loss recognized in other comprehensive income (loss) – effective portion $ — $ (1,024 ) $ (1,152 ) Loss recognized in other income (expense) – ineffective portion — (292 ) (26 ) Amount reclassified from accumulated other comprehensive income (loss) into fuel expense 248 1,888 1,547 |
Foreign Currency Options | |
Schedule of effects of derivatives designated and dedesignated as cash flow hedges | Year Ended December 31, 2015 2014 2013 Loss recognized in other comprehensive income (loss) – effective portion $ — $ (1,157 ) $ (3,304 ) Loss recognized in other income (expense) – ineffective portion — (241 ) (97 ) Amount reclassified from accumulated comprehensive income (loss) into depreciation and amortization expense 1,320 1,269 470 |
Foreign currency forward contracts | |
Schedule of effects of derivatives designated and dedesignated as cash flow hedges | Year Ended December 31, 2015 2014 2013 Loss recognized in other comprehensive income (loss) – effective portion $ (84,187 ) $ (30,686 ) $ (2,983 ) Gain (loss) recognized in other income (expense) – ineffective portion (343 ) (7 ) 67 Amount reclassified from accumulated comprehensive income (loss) into depreciation and amortization expense 116 (243 ) (84 ) |
Foreign currency collar | |
Schedule of effects of derivatives designated and dedesignated as cash flow hedges | Year Ended December 31, 2015 2014 2013 Gain (loss) recognized in other comprehensive income (loss) – effective portion $ — $ (1,588 ) $ 4,350 Amount reclassified from accumulated comprehensive income (loss) into depreciation and amortization expense (364 ) (333 ) — |
Interest rates swaps | |
Schedule of effects of derivatives designated and dedesignated as cash flow hedges | Year Ended December 31, 2015 2014 2013 Loss recognized in other comprehensive income (loss) – effective portion $ (5,152 ) $ (5,386 ) $ (3,196 ) Loss recognized in other income (expense) – ineffective portion (23 ) — — Amount reclassified from other comprehensive income (loss) into interest expense, net 4,614 2,385 189 |
Not Designated as Hedging Instrument | Fuel Collars And Options | |
Schedule of effects of derivatives not designated as cash flow hedges | Year Ended December 31, 2015 2014 2013 Gain (loss) recognized in other income (expense) $ — $ (864 ) $ 1,340 |
Not Designated as Hedging Instrument | Foreign currency forward contracts | |
Schedule of effects of derivatives not designated as cash flow hedges | Year Ended December 31, 2015 2014 2013 Gain recognized in other income (expense) $ 684 $ — $ 20 |
Not Designated as Hedging Instrument | Foreign currency collar | |
Schedule of effects of derivatives not designated as cash flow hedges | Year Ended December 31, 2015 2014 2013 Loss recognized in other income (expense) $ (26,249 ) $ (6,980 ) $ — |
Not Designated as Hedging Instrument | Interest rates swaps | |
Schedule of effects of derivatives not designated as cash flow hedges | Year Ended December 31, 2015 2014 2013 Loss recognized in other income (expense) $ (2 ) $ (3 ) $ — |
Dedesignated As Hedging Instrument | Fuel Swaps | |
Schedule of effects of derivatives designated and dedesignated as cash flow hedges | Year Ended December 31, 2015 2014 2013 Amount reclassified from accumulated other comprehensive income (loss) into other income (expense) $ 10,000 $ — $ — Loss recognized in other income (expense) (4,727 ) — — |
Employee Benefits and Share O35
Employee Benefits and Share Option Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Schedule of summary of option activity | Number of Share Option Weighted-Average Exercise Weighted- Aggregate Intrinsic Value Time- Performance- Market- Time- Performance- Market- (years) (in thousands) Outstanding as of January 1, 2015 6,079,881 1,457,314 — $ 29.92 $ 19.00 $ — 7.61 $ 142,831 Granted 5,130,000 — 208,333 56.64 — 59.43 — — Exercised (2,144,702 ) (546,951 ) — 27.39 19.00 — — — Forfeited and cancelled (1,363,108 ) (477,611 ) — 37.49 19.00 — — — Outstanding as of December 31, 2015 7,702,071 432,752 208,333 $ 47.35 $ 19.00 $ 59.43 8.59 $ 104,864 Vested and expected to vest as of December 31, 2015 7,351,098 432,752 208,333 $ 47.22 $ 19.00 $ 59.43 8.47 $ 101,824 Exercisable as of December 31, 2015 808,794 432,752 — $ 29.23 $ 19.00 $ — 5.84 $ 40,890 |
Schedule of restricted share activity of NCLH shares | Number of Weighted- Number of Weighted- Non-vested as of January 1, 2015 196,644 $ 3.43 1,208,608 $ 3.37 Granted 6,881 50.23 — — Vested (83,958 ) 6.68 (620,739 ) 3.92 Forfeited or expired (75,914 ) 2.68 (587,869 ) 2.79 Non-vested and expected to vest as of December 31, 2015 43,653 $ 5.87 — $ — |
Schedule of restricted stock units activity | Number of Weighted- Number of Weighted- Non-vested as of January 1, 2015 Granted 150,000 $ 59.43 50,000 $ 59.43 Vested — — — — Forfeited or expired — — — — Non-vested and expected to vest as of December 31, 2015 150,000 $ 59.43 50,000 $ 59.43 |
Schedule of amounts related to the Shipboard Retirement Plan | As of or for the Year Ended December 31, 2015 2014 2013 Pension expense: Service cost $ 1,793 $ 1,393 $ 1,498 Interest cost 738 728 603 Amortization of prior service cost 378 378 378 Amortization of actuarial loss 99 — 90 Total pension expense $ 3,008 $ 2,499 $ 2,569 Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 19,730 $ 15,570 $ 16,221 Service cost 1,793 1,393 1,498 Interest cost 738 728 603 Actuarial gain (loss) (625 ) 2,689 (2,070 ) Direct benefit payments (558 ) (650 ) (682 ) Projected benefit obligation at end of year $ 21,078 $ 19,730 $ 15,570 Amounts recognized in the consolidated balance sheets: Projected benefit obligation $ 21,078 $ 19,730 $ 15,570 As of or for the Year Ended December 31, 2015 2014 2013 Amounts recognized in accumulated other comprehensive income (loss): Prior service cost $ (5,293 ) $ (5,671 ) $ (6,049 ) Accumulated actuarial loss (3,126 ) (3,849 ) (1,160 ) Accumulated other comprehensive income (loss) $ (8,419 ) $ (9,520 ) $ (7,209 ) |
Schedule of pension benefits expected to be paid in each of the next five years and in aggregate for the five years thereafter | Year Amount 2016 $ 1,128 2017 1,079 2018 1,092 2019 1,170 2020 1,211 Next five years 7,750 |
Time Based Options | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Schedule of assumptions used within the option-pricing model and Monte-Carlo simulation | 2015 2014 2013 Dividend yield —% —% —% Expected share price volatility 32.32%-45.33% 48.30%-49.90% 50.40%-54.80% Risk-free interest rate 1.34%-1.92% 1.80%-2.02% 0.8%-1.82% Expected term 6.00-6.50 years 6.25 years 5.00-6.25 years |
Performance Based Options | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Schedule of assumptions used within the option-pricing model and Monte-Carlo simulation | 2015 Dividend yield 0% Expected share price volatility 29.31%-29.86% Risk-free interest rate 1.76% Expected term 4.88-5.38 years |
Market Based Share Option Awards | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Schedule of assumptions used within the option-pricing model and Monte-Carlo simulation | 2015 Dividend yield 0% Expected share price volatility 30.00% Risk-free interest rate 1.34% Expected term Mid-point from vesting to assumed options expiration |
Restricted Share Units ("RSUs") | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Schedule of assumptions used within the option-pricing model and Monte-Carlo simulation | 2015 Dividend yield 0% Expected share price volatility 30.00% Risk-free interest rate 1.34% Expected term Mid-point from vesting to assumed awards expiration |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule Of Components Of Components Of Net Income Before Income Taxes [Table Text Block] | Year Ended 2015 2014 2013 Bermuda $ — $ — $ — Foreign - Other 433,909 340,334 114,688 Net income before income taxes 433,909 340,334 114,688 |
Schedule of components of the provision for income taxes | Year Ended 2015 2014 2013 Current: Bermuda $ — $ — $ — United States (4,621 ) 9,162 (8,098 ) Foreign - Other (882 ) (3,278 ) (860 ) Total current: (5,503 ) 5,884 (8,958 ) Deferred: Bermuda — — — United States (1,269 ) (3,617 ) (2,844 ) Foreign - Other — — — Total deferred: (1,269 ) (3,617 ) (2,844 ) Income tax benefit (expense) $ (6,772 ) $ 2,267 $ (11,802 ) |
Schedule of reconciliation of income tax expense | Year Ended 2015 2014 2013 Tax at Bermuda statutory rate $ — $ — $ — Foreign income taxes at different rates (7,864 ) (2,813 ) (14,020 ) Benefit from global tax platform(1) — — 6,074 Tax contingencies (283 ) (275 ) (1,394 ) Return to provision adjustments 1,370 14,444 — Benefit (expense) from change in tax status 5 1,462 (2,462 ) Valuation allowance — (10,551 ) — Income tax benefit (expense) $ (6,772 ) $ 2,267 $ (11,802 ) (1) During 2013, we implemented a restructuring plan to provide a global tax platform for international expansion. As part of the plan, the Company became a tax resident of the U.K. As such, it qualifies for relief from U.S. Branch Profits taxes under the U.S.-U.K. Tax Treaty. In addition, the restructuring resulted in additional interest and depreciation which reduced the Company’s overall income tax expense. |
Schedule of deferred tax assets and liabilities | As of December 31, 2015 2014 Deferred tax assets: Loss carryforwards $ 85,939 $ 77,031 Shares in foreign subsidiary — 17,808 Other 1,460 1,121 Valuation allowance (61,437 ) (81,704 ) Total net deferred assets 25,962 14,256 Deferred tax liabilities: Property and equipment (33,862 ) (20,888 ) Total deferred tax liabilities (33,862 ) (20,888 ) Net deferred tax liability $ (7,900 ) $ (6,632 ) |
Schedule of reconciliation of the total amounts of unrecognized tax benefits | As of December 31, 2015 2014 Unrecognized tax benefits, beginning of the year $ 11,174 $ 10,894 Gross increases in tax positions from prior periods — — Gross decreases in tax positions from prior periods — — Gross increases in tax positions from current periods — 280 Settlement of tax positions — — Lapse of statute of limitations — — Unrecognized tax benefits, end of year $ 11,174 $ 11,174 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Schedule of minimum annual payments | Year Amount 2016 $ 12,448 2017 13,606 2018 13,662 2019 13,660 2020 14,490 Thereafter 88,814 Total minimum annual rentals $ 156,680 |
Ship Construction Contracts | |
Schedule of minimum annual payments | Year Amount 2016 $ 536,815 2017 806,681 2018 890,447 2019 758,114 2020 — Thereafter — Total minimum annual payments $ 2,992,057 |
Port Facility Commitments | |
Schedule of minimum annual payments | Year Amount 2016 $ 33,217 2017 29,141 2018 20,403 2019 20,858 2020 21,326 Thereafter 60,889 Total port facility future commitments $ 185,834 |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring Costs [Abstract] | |
Schedule of changes in accrual for restructuring costs | Restructuring costs Accrued expense balance as of December 31, 2014 $ (7,956 ) Amounts paid 18,815 Additional accrued expense (15,003 ) Accrued expense balance as of December 31, 2015 $ (4,144 ) |
Quarterly Selected Financial 39
Quarterly Selected Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | First Quarter Second Quarter Third Quarter Fourth Quarter 2015 2014 2015 2014 2015 2014 2015 2014 Total revenue $ 938,182 $ 664,028 $ 1,085,433 $ 765,927 $ 1,284,910 $ 907,017 $ 1,036,523 $ 788,909 Operating income 60,349 73,089 217,383 148,588 306,832 234,822 117,922 46,442 Net income (loss) attributable to Norwegian Cruise Line Holdings Ltd. (21,456 ) 51,267 158,494 111,616 251,787 201,078 38,312 (25,609 ) Earnings (loss) per share: Basic $ (0.10 ) $ 0.25 $ 0.70 $ 0.54 $ 1.11 $ 0.99 $ 0.17 $ (0.12 ) Diluted $ (0.10 ) $ 0.24 $ 0.69 $ 0.54 $ 1.09 $ 0.97 $ 0.17 $ (0.12 ) |
Description of Business and O40
Description of Business and Organization (Detail Textuals) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | ||||
Jan. 24, 2013USD ($) | Feb. 28, 2011$ / sharesshares | Dec. 31, 2015CruiseShipBerthDestination$ / shares | Dec. 31, 2014$ / shares | Jan. 31, 2008 | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Number of cruises ships | CruiseShip | 22 | |||||
Capacity of ship, berths | Berth | 45,000 | |||||
Number of destinations visited worldwide | 510 | |||||
Number of additional ships | 5 | |||||
Number of ordinary shares issued | shares | 10,000 | |||||
Ordinary shares, par value (in dollars per shares) | $ / shares | $ 0.01 | $ 0.001 | $ 0.001 | |||
Percentage of economic interest | 100.00% | |||||
Percentage of ownership interest of NCLH's ordinary shares | 29.30% | |||||
NCLC | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Ownership percentage | 100.00% | |||||
Contribution to NCLC | $ | $ 460 | |||||
Share exchange ratio | 1.0 to 8.42565 | |||||
Percentage of economic interest | 97.30% | |||||
Remaining percentage of economic interest held by former management | 2.70% | |||||
Apollo Funds | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Percentage of outstanding ordinary share capital acquired | [1] | 15.80% | ||||
Apollo Funds | NCLC | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Percentage of outstanding ordinary share capital acquired | 50.00% | |||||
TPG Viking Funds | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Percentage of outstanding ordinary share capital acquired | [2] | 2.40% | ||||
TPG Viking Funds | NCLC | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Percentage of outstanding ordinary share capital acquired | 12.50% | |||||
[1] | The Apollo Holders include AAA Guarantor Co-Invest VI (B), L.P., AIF VI NCL (AIV), L.P., AIF VI NCL (AIV II), L.P., AIF VI NCL (AIV III), L.P., AIF VI NCL (AIV IV), L.P., Apollo Overseas Partners (Delaware) VI, L.P., Apollo Overseas Partners (Delaware 892) VI, L.P., Apollo Overseas Partners VI, L.P., Apollo Overseas Partners (Germany) VI, L.P., AAA Guarantor Co-Invest VII, L.P., AIF VI Euro Holdings, L.P., AIF VII Euro Holdings, L.P., Apollo Alternative Assets, L.P., Apollo Management VI, L.P. and Apollo Management VII, L.P. | |||||
[2] | The TPG Viking Funds include TPG Viking, L.P., a Delaware limited partnership, TPG Viking AIV I, L.P., a Cayman Islands exempted limited partnership, TPG Viking AIV II, L.P., a Cayman Islands exempted limited partnership and TPG Viking AIV III, L.P., a Delaware limited partnership. |
Summary of Significant Accoun41
Summary of Significant Accounting Policies - Reconciliation between Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share [Abstract] | |||||||||||
Net income attributable to Norwegian Cruise Line Holdings Ltd.. | $ 427,137 | $ 338,352 | $ 101,714 | ||||||||
Net income | $ 38,312 | $ 251,787 | $ 158,494 | $ (21,456) | $ (25,609) | $ 201,078 | $ 111,616 | $ 51,267 | $ 427,137 | $ 342,601 | $ 102,886 |
Basic weighted-average shares outstanding | 226,591,437 | 206,524,968 | 202,993,839 | ||||||||
Potentially dilutive shares | 3,448,695 | 5,492,816 | 6,245,645 | ||||||||
Diluted weighted-average shares outstanding | 230,040,132 | 212,017,784 | 209,239,484 | ||||||||
Basic (in dollars per share) | $ 0.17 | $ 1.11 | $ 0.7 | $ (0.1) | $ (0.12) | $ 0.99 | $ 0.54 | $ 0.25 | $ 1.89 | $ 1.64 | $ 0.50 |
Diluted (in dollars per share) | $ 0.17 | $ 1.09 | $ 0.69 | $ (0.1) | $ (0.12) | $ 0.97 | $ 0.54 | $ 0.24 | $ 1.86 | $ 1.62 | $ 0.49 |
Summary of Significant Accoun42
Summary of Significant Accounting Policies - Estimated Useful Lives of Assets (Details 1) | 12 Months Ended |
Dec. 31, 2015 | |
Ships | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 30 years |
Computer hardware and software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 3 years |
Computer hardware and software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 10 years |
Other property and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 3 years |
Other property and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 40 years |
Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | Shorter of lease term or asset life |
Summary of Significant Accoun43
Summary of Significant Accounting Policies (Detail Textuals) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)CruiseShipSegment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Schedule Of Significant Accounting Policies [Line Items] | |||
Allowance for doubtful accounts | $ 3,700 | $ 2,800 | |
Advertising costs included in prepaid expenses and other assets | 12,500 | 14,300 | |
Expenses related to advertising costs | $ 232,200 | 122,500 | $ 89,000 |
Reduction in estimated residual values, percentage | 15.00% | ||
Amounts of tax included on a gross basis | $ 242,100 | 212,300 | 172,500 |
Foreign currency transaction gain | $ 11,000 | 6,000 | $ 400 |
Number of reportable segments | Segment | 1 | ||
Number of cruises ships | CruiseShip | 22 | ||
Ship, carrying value | $ 9,458,805 | $ 8,623,773 | |
Sales Revenue, Net | |||
Schedule Of Significant Accounting Policies [Line Items] | |||
Revenue attributable to North American guests | 75.00% | 73.00% | 74.00% |
Concentration Risk, Additional Characteristic | No other individual country's revenues exceeded 10% in any of our last three years. | ||
Bahamas Registry | |||
Schedule Of Significant Accounting Policies [Line Items] | |||
Number of cruises ships | CruiseShip | 16 | ||
Ship, carrying value | $ 7,200,000 | $ 6,400,000 | |
Marshall Island Registry | |||
Schedule Of Significant Accounting Policies [Line Items] | |||
Number of cruises ships | CruiseShip | 5 | ||
Ship, carrying value | $ 1,400,000 | 1,400,000 | |
U.S. Registry | |||
Schedule Of Significant Accounting Policies [Line Items] | |||
Number of cruises ships | CruiseShip | 1 | ||
Ship, carrying value | $ 300,000 | 300,000 | |
Bermuda registry | |||
Schedule Of Significant Accounting Policies [Line Items] | |||
Number of cruises ships | CruiseShip | 1 | ||
Ship, carrying value | $ 800,000 | $ 800,000 |
Goodwill and Intangible Asset44
Goodwill and Intangible Assets - Gross carrying amounts included in goodwill and intangible assets related to accumulated amortization and weighted average amortization periods (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule Of Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 193,368 | $ 190,000 |
Accumulated Amortization | (85,735) | (12,528) |
Net Carrying Value | 107,633 | 177,472 |
License (Indefinite-lived) | ||
Schedule Of Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets | 4,427 | 4,427 |
Customer relationships | ||
Schedule Of Intangible Assets [Line Items] | ||
Gross Carrying Amount | 120,000 | 120,000 |
Accumulated Amortization | (15,527) | (4,556) |
Net Carrying Value | $ 104,473 | $ 115,444 |
Weighted - Average Amortization Period (Years) | 6 years | 6 years |
Backlog | ||
Schedule Of Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 70,000 | $ 70,000 |
Accumulated Amortization | $ (70,000) | (7,972) |
Net Carrying Value | $ 62,028 | |
Weighted - Average Amortization Period (Years) | 1 year | 1 year |
License (Indefinite-lived) | ||
Schedule Of Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 3,368 | |
Accumulated Amortization | (208) | |
Net Carrying Value | $ 3,160 | |
Weighted - Average Amortization Period (Years) | 5 years 7 months 6 days |
Goodwill and Intangible Asset45
Goodwill and Intangible Assets - Aggregate amortization expense (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 73,207 | $ 12,528 |
Goodwill and Intangible Asset46
Goodwill and Intangible Assets - Estimated aggregate amortization expense (Details 2) $ in Thousands | Dec. 31, 2015USD ($) |
Amortization Expense | |
2,016 | $ 21,659 |
2,017 | 31,177 |
2,018 | 26,058 |
2,019 | 18,489 |
2,020 | $ 9,906 |
Goodwill and Intangible Asset47
Goodwill and Intangible Assets (Detail Textuals) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule Of Intangible Assets [Line Items] | ||
Goodwill | $ 1,388,931 | $ 1,388,931 |
Tradenames | ||
Schedule Of Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets | $ 800,000 | $ 800,000 |
The Acquisition of Prestige - P
The Acquisition of Prestige - Purchase price allocation (Details) - Prestige brands - USD ($) $ in Thousands | Dec. 31, 2015 | Nov. 19, 2014 |
Business Acquisition [Line Items] | ||
Accounts receivable | $ 6,916 | |
Inventories | 12,579 | |
Prepaid expenses and other assets | 48,670 | |
Amortizable intangible assets | 190,000 | |
Property and equipment | 2,175,039 | |
Goodwill and tradenames | 1,595,126 | |
Other long-term assets | 15,607 | |
Current portion of long-term debt | (97,006) | $ (1,600,000) |
Accounts payable | (14,880) | |
Accrued expenses and other liabilities | (190,256) | |
Advance ticket sales | (439,313) | |
Long-term debt | (1,456,038) | |
Other long-term liabilities | (142,216) | |
Total consideration allocated, net of $295.8 million of cash acquired | $ 1,704,228 |
The Acquisition of Prestige -49
The Acquisition of Prestige - Purchase price allocation (Parentheticals) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |
Nov. 19, 2014 | Nov. 18, 2014 | Dec. 31, 2015 | |
Business Acquisition [Line Items] | |||
Cash acquired | $ 1,100 | ||
Prestige brands | |||
Business Acquisition [Line Items] | |||
Cash acquired | $ 1,100,000,000 | $ 295,800,000 |
The Acquisition of Prestige - G
The Acquisition of Prestige - Goodwill and intangible assets acquired (Details 1) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | ||
Goodwill | $ 1,388,931 | $ 1,388,931 |
Prestige brands | ||
Business Acquisition [Line Items] | ||
Goodwill | 985,126 | |
Prestige brands | Backlog | ||
Business Acquisition [Line Items] | ||
Intangible Assets, Other than Goodwill, Acquired | 70,000 | |
Prestige brands | Customer relationships | ||
Business Acquisition [Line Items] | ||
Intangible Assets, Other than Goodwill, Acquired | 120,000 | |
Prestige brands | Tradenames (Indefinite-lived) | ||
Business Acquisition [Line Items] | ||
Intangible Assets, Other than Goodwill, Acquired | $ 610,000 |
The Acquisition of Prestige -51
The Acquisition of Prestige - Goodwill and intangible assets acquired (Parentheticals) (Details 1) - Prestige brands | 12 Months Ended |
Dec. 31, 2015 | |
Backlog | |
Business Acquisition [Line Items] | |
Amortization period | 1 year |
Customer relationships | |
Business Acquisition [Line Items] | |
Amortization period | 6 years |
The Acquisition of Prestige -52
The Acquisition of Prestige - Pro forma Financial Information (Details 2) - Prestige brands - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Business Acquisition [Line Items] | ||
Total revenue | $ 4,310,079 | $ 3,704,692 |
Net income (loss) attributable to Norwegian Cruise Line Holdings Ltd. | $ 497,020 | $ (683) |
Earnings per share | ||
Basic | $ 2.21 | |
Diluted | $ 2.19 |
The Acquisition of Prestige - C
The Acquisition of Prestige - Change in fair value of contingent consideration liability (Details 3) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Contingent Consideration Classified As Equity Fair Value Disclosure [Roll Forward] | |
Balance as of December 31, 2014 | $ 43,400 |
Fair value adjustment (Level 3) | $ (43,400) |
Balance as of December 31, 2015 |
The Acquisition of Prestige (De
The Acquisition of Prestige (Detail Textuals) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||
Nov. 19, 2014 | Nov. 18, 2014 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 02, 2014 | |
Business Acquisition [Line Items] | ||||||||||||||
Consideration paid in cash | $ 1,100 | |||||||||||||
Non-cash considerations in shares | 19,969,889 | |||||||||||||
Non-cash considerations in shares, value | $ 834,100,000 | $ 834,142,000 | ||||||||||||
Total revenue | $ 1,036,523,000 | $ 1,284,910,000 | $ 1,085,433,000 | $ 938,182,000 | $ 788,909,000 | $ 907,017,000 | $ 765,927,000 | $ 664,028,000 | $ 4,345,048,000 | 3,125,881,000 | $ 2,570,294,000 | |||
Operating income | 117,922,000 | $ 306,832,000 | $ 217,383,000 | $ 60,349,000 | $ 46,442,000 | $ 234,822,000 | $ 148,588,000 | $ 73,089,000 | 702,486,000 | 502,941,000 | 395,887,000 | |||
Amortization of intangible asset | 73,207,000 | 12,528,000 | ||||||||||||
Threshold limit of contingent consideration | $ 50,000,000 | |||||||||||||
Minimum percentage required for payout | 98.00% | |||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements | $ 43,400,000 | |||||||||||||
Prestige brands | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Percentage of ownership | 100.00% | |||||||||||||
Consideration paid in cash | $ 1,100,000,000 | 295,800,000 | ||||||||||||
Non-cash considerations in shares | 19,969,889 | |||||||||||||
Non-cash considerations in shares, value | $ 834,100,000 | |||||||||||||
Contingent consideration | 43,400,000 | |||||||||||||
Debt of prestige assumed | 1,600,000,000 | $ 97,006,000 | $ 97,006,000 | |||||||||||
Maximum amount of additional cash payment upon achievement of 2015 revenue milestones | $ 50,000,000 | |||||||||||||
Total revenue | 111,700,000 | |||||||||||||
Operating income | 19,700,000 | |||||||||||||
Prestige brands | Acquisition-related costs | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Acquisition related expenses within marketing, general and administrative expense | 57,500,000 | |||||||||||||
Purchase price adjustment decreasing passenger ticket revenue | (48,900,000) | |||||||||||||
Expenses related to financing transactions | $ 15,400,000 | |||||||||||||
Prestige brands | Backlog | Acquisition-related costs | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Amortization of intangible asset | $ 70,000,000 |
Accumulated Other Comprehensi55
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Accumulated Other Comprehensive Income Loss [Roll Forward] | |||||
Accumulated other comprehensive income (loss) at beginning of period | $ (242,642) | $ (16,690) | $ (17,619) | ||
Current period other comprehensive loss before reclassifications | (262,227) | (239,597) | 6,104 | ||
Amounts reclassified | 92,219 | 13,645 | (5,175) | ||
Accumulated other comprehensive income (loss) at end of period | (412,650) | (242,642) | (16,690) | ||
Change Related to Cash Flow Hedges | |||||
Accumulated Other Comprehensive Income Loss [Roll Forward] | |||||
Accumulated other comprehensive income (loss) at beginning of period | (234,188) | (10,532) | (7,872) | ||
Current period other comprehensive loss before reclassifications | (262,852) | (236,925) | 3,177 | ||
Amounts reclassified | [1] | 91,742 | 13,269 | (5,837) | |
Accumulated other comprehensive income (loss) at end of period | (405,298) | [2] | (234,188) | (10,532) | |
Change Related to Shipboard Retirement Plan | |||||
Accumulated Other Comprehensive Income Loss [Roll Forward] | |||||
Accumulated other comprehensive income (loss) at beginning of period | (8,454) | (6,158) | (9,747) | ||
Current period other comprehensive loss before reclassifications | 625 | (2,672) | 2,927 | ||
Amounts reclassified | [3] | 477 | 376 | 662 | |
Accumulated other comprehensive income (loss) at end of period | $ (7,352) | $ (8,454) | $ (6,158) | ||
[1] | We refer you to Note 9 "Fair Value Measurements and Derivatives" for the affected line items in the consolidated statements of operations. | ||||
[2] | Of the existing amounts related to derivatives designated as cash flow hedges, approximately $135.2 million of loss is expected to be reclassified into earnings in the next 12 months. | ||||
[3] | Amortization of prior-service cost and actuarial loss reclassified to payroll and related expense. |
Accumulated Other Comprehensi56
Accumulated Other Comprehensive Income (Loss) (Parentheticals) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Change Related to Cash Flow Hedges | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Loss expected to be reclassified into earnings | $ (135.2) |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property Plant And Equipment [Abstract] | ||
Ships | $ 10,765,525 | $ 9,706,093 |
Ships under construction | 300,575 | 290,381 |
Land | 1,009 | 1,009 |
Other | 434,881 | 351,377 |
Property Plant And Equipment, Gross | 11,501,990 | 10,348,860 |
Less: accumulated depreciation and amortization | (2,043,185) | (1,725,087) |
Property and Equipment, Net | $ 9,458,805 | $ 8,623,773 |
Property and Equipment, Net (58
Property and Equipment, Net (Detail Textuals) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property Plant And Equipment [Abstract] | |||
Depreciation and amortization expense | $ 432,114 | $ 273,147 | $ 215,593 |
Repairs and maintenance expenses including Dry-docking expenses | 124,800 | 69,900 | 67,100 |
Interest costs capitalized | $ 31,900 | $ 22,000 | $ 26,300 |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long-term debt (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Debt Instrument [Line Items] | |||
Total debt | $ 6,397,537 | $ 6,080,023 | |
Less: current portion of long-term debt | (629,840) | (576,947) | |
Total long-term debt | $ 5,767,697 | $ 5,503,076 | |
4.625% senior unsecured notes | |||
Debt Instrument [Line Items] | |||
Interest Rate | 4.625% | ||
Maturities Through | 2,020 | ||
Total debt | $ 590,037 | ||
Norwegian Epic Term Loan | |||
Debt Instrument [Line Items] | |||
Interest Rate | [1] | 2.43% | 2.02% |
Maturities Through | [1] | 2,022 | |
Total debt | [1] | $ 460,870 | $ 524,006 |
Senior Secured Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Interest Rate | 2.78% | 2.16% | |
Maturities Through | 2,018 | ||
Total debt | $ 75,000 | $ 200,000 | |
Senior secured term loan facility | |||
Debt Instrument [Line Items] | |||
Interest Rate | 4.00% | 4.00% | |
Maturities Through | 2,021 | ||
Total debt | $ 338,353 | $ 340,474 | |
Term Loan Facilities | |||
Debt Instrument [Line Items] | |||
Interest Rate | 2.85% | 2.17% | |
Maturities Through | 2,018 | ||
Total debt | $ 1,185,720 | $ 1,301,210 | |
Pride of Hawai'i Loan | |||
Debt Instrument [Line Items] | |||
Interest Rate | [1] | 1.27% | 1.18% |
Maturities Through | [1] | 2,018 | |
Total debt | [1] | $ 89,867 | $ 123,638 |
5.00% Senior Unsecured Notes | |||
Debt Instrument [Line Items] | |||
Interest Rate | [2] | 5.00% | |
Maturities Through | [2] | 2,018 | |
Total debt | [2] | $ 294,746 | |
Norwegian Jewel Term Loan | |||
Debt Instrument [Line Items] | |||
Interest Rate | 1.28% | 1.18% | |
Maturities Through | 2,017 | ||
Total debt | $ 53,534 | $ 78,545 | |
Pride Of America Hermes Loan | |||
Debt Instrument [Line Items] | |||
Interest Rate | [1] | 1.64% | 1.19% |
Maturities Through | [1] | 2,017 | |
Total debt | [1] | $ 37,778 | $ 61,313 |
Breakaway One Loan | |||
Debt Instrument [Line Items] | |||
Interest Rate | [1] | 1.92% | 1.84% |
Maturities Through | [1] | 2,025 | |
Total debt | [1] | $ 522,859 | $ 576,266 |
Breakaway Two Loan | |||
Debt Instrument [Line Items] | |||
Interest Rate | [1] | 4.50% | 4.50% |
Maturities Through | [1] | 2,026 | |
Total debt | [1] | $ 592,531 | $ 647,258 |
Breakaway Three Loan | |||
Debt Instrument [Line Items] | |||
Interest Rate | [1] | 2.98% | 2.98% |
Maturities Through | [1] | 2,027 | |
Total debt | [1] | $ 711,187 | $ 121,278 |
Breakaway Four Loan | |||
Debt Instrument [Line Items] | |||
Interest Rate | [1] | 2.98% | 2.98% |
Maturities Through | [1] | 2,029 | |
Total debt | [1] | $ 108,964 | $ 35,057 |
Norwegian Jewel Term Loan One | |||
Debt Instrument [Line Items] | |||
Interest Rate | [1] | 1.27% | 1.18% |
Maturities Through | [1] | 2,017 | |
Total debt | [1] | $ 28,649 | $ 56,382 |
Norwegian Jade Term Loan | |||
Debt Instrument [Line Items] | |||
Interest Rate | [1] | 1.27% | 1.18% |
Maturities Through | [1] | 2,017 | |
Total debt | [1] | $ 29,149 | $ 56,991 |
Seahawk 1 term loan | |||
Debt Instrument [Line Items] | |||
Interest Rate | [1] | 3.92% | 3.92% |
Maturities Through | [1] | 2,030 | |
Total debt | [1] | $ 40,845 | $ 40,845 |
Seahawk 2 term loan | |||
Debt Instrument [Line Items] | |||
Interest Rate | [1] | 3.92% | 3.92% |
Maturities Through | [1] | 2,031 | |
Total debt | [1] | $ 40,845 | $ 40,845 |
5.25% senior unsecured notes | |||
Debt Instrument [Line Items] | |||
Interest Rate | 5.25% | 5.25% | |
Maturities Through | 2,019 | ||
Total debt | $ 670,059 | $ 667,559 | |
Sirena loan | |||
Debt Instrument [Line Items] | |||
Interest Rate | 2.75% | 2.75% | |
Maturities Through | 2,019 | ||
Total debt | $ 53,229 | $ 82,000 | |
Marina newbuild loan | |||
Debt Instrument [Line Items] | |||
Interest Rate | [3] | 1.01% | 0.88% |
Maturities Through | [3] | 2,023 | |
Total debt | [3] | $ 335,135 | $ 379,868 |
Riviera newbuild loan | |||
Debt Instrument [Line Items] | |||
Interest Rate | [4] | 1.08% | 0.87% |
Maturities Through | [4] | 2,024 | |
Total debt | [4] | $ 382,173 | $ 427,184 |
Capital lease and license obligations | |||
Debt Instrument [Line Items] | |||
Maturities Through | 2,022 | ||
Total debt | $ 50,753 | $ 24,558 | |
Capital lease and license obligations | Minimum | |||
Debt Instrument [Line Items] | |||
Interest Rate | 1.62% | 1.62% | |
Capital lease and license obligations | Maximum | |||
Debt Instrument [Line Items] | |||
Interest Rate | 12.935% | 12.56% | |
[1] | Currently U.S. dollar-denominated. | ||
[2] | Net of unamortized original issue discount of $1.1 million as of December 31, 2014. | ||
[3] | Includes premium of $0.3 million and $0.4 million as of December 31, 2015 and 2014, respectively. | ||
[4] | Includes premium of $0.4 million and $0.5 million as of December 31, 2015 and 2014, respectively. |
Long-Term Debt - Summary of L60
Long-Term Debt - Summary of Long-term debt (Parentheticals) (Details) € in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2015 | Dec. 31, 2015USD ($) | Dec. 31, 2015EUR (€) | Dec. 31, 2014USD ($) | |
Debt Instrument [Line Items] | ||||
Debt, principal amount | $ | $ 1.1 | |||
Interest rate | 5.00% | |||
4.625% senior unsecured notes | ||||
Debt Instrument [Line Items] | ||||
Debt, principal amount | $ | $ 600 | |||
Interest rate | 4.625% | |||
Norwegian Epic Term Loan | ||||
Debt Instrument [Line Items] | ||||
Debt, principal amount | € | € 662.9 | |||
Senior Secured Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Debt, principal amount | $ | $ 625 | |||
Senior secured term loan facility | ||||
Debt Instrument [Line Items] | ||||
Debt, principal amount | $ | 350 | |||
Term Loan Facilities | ||||
Debt Instrument [Line Items] | ||||
Debt, principal amount | $ | 1,375 | |||
Pride of Hawai'i Loan | ||||
Debt Instrument [Line Items] | ||||
Debt, principal amount | € | 308.1 | |||
5.00% Senior Unsecured Notes | ||||
Debt Instrument [Line Items] | ||||
Debt, principal amount | $ | $ 300 | |||
Net unamortized original issue discount | $ | $ 1.1 | |||
Interest rate | 5.00% | 5.00% | ||
Norwegian Jewel Term Loan | ||||
Debt Instrument [Line Items] | ||||
Debt, principal amount | $ | $ 334.1 | |||
Pride Of America Hermes Loan | ||||
Debt Instrument [Line Items] | ||||
Debt, principal amount | € | 258 | |||
Breakaway One Loan | ||||
Debt Instrument [Line Items] | ||||
Debt, principal amount | € | 529.8 | |||
Breakaway Two Loan | ||||
Debt Instrument [Line Items] | ||||
Debt, principal amount | € | 529.8 | |||
Breakaway Three Loan | ||||
Debt Instrument [Line Items] | ||||
Debt, principal amount | € | 590.5 | |||
Breakaway Four Loan | ||||
Debt Instrument [Line Items] | ||||
Debt, principal amount | € | 590.5 | |||
Norwegian Jewel Term Loan One | ||||
Debt Instrument [Line Items] | ||||
Debt, principal amount | € | 126 | |||
Norwegian Jade Term Loan | ||||
Debt Instrument [Line Items] | ||||
Debt, principal amount | € | 126 | |||
Seahawk 1 term loan | ||||
Debt Instrument [Line Items] | ||||
Debt, principal amount | € | 666 | |||
Seahawk 2 term loan | ||||
Debt Instrument [Line Items] | ||||
Debt, principal amount | € | € 666 | |||
5.25% senior unsecured notes | ||||
Debt Instrument [Line Items] | ||||
Debt, principal amount | $ | $ 680 | |||
Interest rate | 5.25% | |||
Marina newbuild loan | ||||
Debt Instrument [Line Items] | ||||
Net unamortized premium | $ | $ 0.3 | 0.4 | ||
Riviera newbuild loan | ||||
Debt Instrument [Line Items] | ||||
Net unamortized premium | $ | $ 0.4 | $ 0.5 |
Long-Term Debt - Due to the ado
Long-Term Debt - Due to the adoption of ASU No. 2015-03 (Details 1) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Item Effected [Line Items] | ||
Long-term debt balance | $ 6,397,537 | $ 6,080,023 |
Prior to the adoption of ASU No. 2015-03 | ||
Item Effected [Line Items] | ||
Long-term debt balance | 6,502,834 | 6,184,104 |
Adoption of the ASU No. 2015-03 | ||
Item Effected [Line Items] | ||
Long-term debt balance | $ 105,297 | $ 104,081 |
Long-Term Debt - Summary of sch
Long-Term Debt - Summary of scheduled principal repayments on long-term debt including capital lease obligations (Details 2) $ in Thousands | Dec. 31, 2015USD ($) |
Long Term Debt Maturities Repayments Of Principal [Line Items] | |
2,016 | $ 629,840 |
2,017 | 591,270 |
2,018 | 1,383,186 |
2,019 | 1,051,847 |
2,020 | 963,797 |
Thereafter | 1,882,894 |
Total | $ 6,502,834 |
Long-Term Debt (Detail Textuals
Long-Term Debt (Detail Textuals) $ in Thousands, € in Millions | 1 Months Ended | 12 Months Ended | |||||||
Nov. 30, 2015USD ($) | Oct. 31, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2015EUR (€) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2015EUR (€) | Nov. 15, 2015USD ($) | ||
Debt Instrument [Line Items] | |||||||||
Debt, principal amount | $ 1,100 | ||||||||
Interest rate | 5.00% | 5.00% | |||||||
Borrowing related to acquisition | $ 6,397,537 | $ 6,080,023 | |||||||
Interest Expense | 221,909 | 151,754 | $ 282,602 | ||||||
Loss on extinguishment of debt | 12,700 | ||||||||
Amortization of deferred financing costs | 36,600 | 32,300 | 64,900 | ||||||
Write-off of financing fees | 4,070 | 15,628 | $ 36,357 | ||||||
Accrued interest liability | $ 34,200 | 32,800 | |||||||
Prestige brands | Acquisition-related Costs [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Expenses related to financing transactions | $ 15,400 | ||||||||
Breakaway Three Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Loan drew amount | $ 577,200 | ||||||||
Loan interest rate | 2.98% | ||||||||
Maturities Through | [1] | 2,027 | 2,027 | ||||||
Debt, principal amount | € | € 590.5 | ||||||||
4.625% senior unsecured notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Maturities Through | 2,020 | ||||||||
Debt, principal amount | $ 600,000 | ||||||||
Interest rate | 4.625% | ||||||||
5.00% Senior Unsecured Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Maturities Through | [2] | 2,018 | 2,018 | ||||||
Debt, principal amount | $ 300,000 | ||||||||
Interest rate | 5.00% | 5.00% | 5.00% | ||||||
Redemption amount of debt | $ 300,000 | ||||||||
Seahawk 1 term loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Maturities Through | [1] | 2,030 | 2,030 | ||||||
Incremental borrowing | € | € 710.8 | ||||||||
Debt, principal amount | € | 666 | ||||||||
Seahawk 2 term loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Maturities Through | [1] | 2,031 | 2,031 | ||||||
Incremental borrowing | € | € 706.8 | ||||||||
Debt, principal amount | € | € 666 | ||||||||
[1] | Currently U.S. dollar-denominated. | ||||||||
[2] | Net of unamortized original issue discount of $1.1 million as of December 31, 2014. |
Related Party Disclosures - Own
Related Party Disclosures - Ownership percentages of NCLH's ordinary shares (Details) - shares | Dec. 31, 2015 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | |||
Number of Shares | 227,815,301 | 227,630,430 | |
Genting HK | |||
Related Party Transaction [Line Items] | |||
Number of Shares | [1] | 25,398,307 | |
Percentage Ownership | [1] | 11.10% | |
Apollo Holders | |||
Related Party Transaction [Line Items] | |||
Number of Shares | [2] | 36,103,782 | |
Percentage Ownership | [2] | 15.80% | |
TPG Viking Funds | |||
Related Party Transaction [Line Items] | |||
Number of Shares | [3] | 5,329,834 | |
Percentage Ownership | [3] | 2.40% | |
[1] | Genting HK owns our ordinary shares indirectly through Star NCLC Holdings Ltd., a Bermuda wholly-owned subsidiary. | ||
[2] | The Apollo Holders include AAA Guarantor Co-Invest VI (B), L.P., AIF VI NCL (AIV), L.P., AIF VI NCL (AIV II), L.P., AIF VI NCL (AIV III), L.P., AIF VI NCL (AIV IV), L.P., Apollo Overseas Partners (Delaware) VI, L.P., Apollo Overseas Partners (Delaware 892) VI, L.P., Apollo Overseas Partners VI, L.P., Apollo Overseas Partners (Germany) VI, L.P., AAA Guarantor Co-Invest VII, L.P., AIF VI Euro Holdings, L.P., AIF VII Euro Holdings, L.P., Apollo Alternative Assets, L.P., Apollo Management VI, L.P. and Apollo Management VII, L.P. | ||
[3] | The TPG Viking Funds include TPG Viking, L.P., a Delaware limited partnership, TPG Viking AIV I, L.P., a Cayman Islands exempted limited partnership, TPG Viking AIV II, L.P., a Cayman Islands exempted limited partnership and TPG Viking AIV III, L.P., a Delaware limited partnership. |
Related Party Disclosures (Deta
Related Party Disclosures (Detail Textuals) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Nov. 19, 2014USD ($) | Sep. 30, 2014USD ($) | Jan. 24, 2013USD ($) | Jun. 30, 2012USD ($)Installment | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($) | |
Related Party Transaction [Line Items] | ||||||
Stock repurchase, value | $ 107,256 | $ 82,000 | ||||
Prestige brands | ||||||
Related Party Transaction [Line Items] | ||||||
Maximum amount of additional cash payment upon achievement of 2015 revenue milestones | $ 50,000 | |||||
Merger Agreement | Apollo Fund | ||||||
Related Party Transaction [Line Items] | ||||||
Business acquisition, purchase price | $ 3,025,000 | |||||
NCLC | ||||||
Related Party Transaction [Line Items] | ||||||
Contribution to NCLC | $ 460,000 | |||||
Apollo Holders And Genting Hk | Repurchase Program | Secondary Equity Offering | ||||||
Related Party Transaction [Line Items] | ||||||
Stock repurchase, value | $ 20,000 | |||||
Stock repurchase, shares | shares | 348,553 | |||||
Genting HK | ||||||
Related Party Transaction [Line Items] | ||||||
Related party transaction, purchase price | $ 259,300 | |||||
Purchase price payment in cash | 50,000 | |||||
Remaining amount payable | 209,300 | |||||
Amounts payable within fourteen days of IPO effective date | $ 79,700 | |||||
Note payable period after issuance of IPO | 14 days | |||||
Related party transaction, weighted-average interest rate | 1.52% | |||||
Debt instrument, number of periodic payment | Installment | 7 | |||||
Semi-annual payments beginning date | 2013-06 | |||||
Fair value | $ 205,500 | |||||
Related party transaction, imputed interest rate | 2.26% | |||||
Commission fee paid | $ 240,800 |
Fair Value Measurements and D66
Fair Value Measurements and Derivatives - Derivatives measured at fair value and disclosed by balance sheet location (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | $ 3,446 | |
Designated as Hedging Instrument | Fuel Swaps | Accrued expenses and other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | ||
Derivative liabilities, fair value | $ 128,740 | $ 111,304 |
Designated as Hedging Instrument | Fuel Swaps | Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 190 | |
Derivative liabilities, fair value | 132,494 | $ 77,250 |
Designated as Hedging Instrument | Foreign currency forward contracts | Other long-term assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 3,446 | |
Derivative liabilities, fair value | 1,370 | |
Designated as Hedging Instrument | Foreign currency forward contracts | Accrued expenses and other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | ||
Derivative liabilities, fair value | 8,737 | $ 29,498 |
Designated as Hedging Instrument | Foreign currency forward contracts | Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 551 | |
Derivative liabilities, fair value | 24,181 | $ 118 |
Designated as Hedging Instrument | Interest rates swaps | Accrued expenses and other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | ||
Derivative liabilities, fair value | 4,079 | $ 5,736 |
Designated as Hedging Instrument | Interest rates swaps | Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | ||
Derivative liabilities, fair value | $ 3,395 | $ 3,104 |
Not Designated as Hedging Instrument | Foreign currency collar | Accrued expenses and other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | ||
Derivative liabilities, fair value | $ 42,993 | |
Not Designated as Hedging Instrument | Foreign currency collar | Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | ||
Derivative liabilities, fair value | $ 16,744 | |
Not Designated as Hedging Instrument | Interest rates swaps | Accrued expenses and other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | ||
Derivative liabilities, fair value | $ 3,823 |
Fair Value Measurements and D67
Fair Value Measurements and Derivatives - Amounts recognized within assets and liabilities based on right of offset (Details 1) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value Disclosures [Abstract] | ||
Gross Amounts, Assets | $ 3,446 | |
Gross Amounts Offset, Assets | (1,370) | |
Total Net Amounts, Assets | 2,076 | |
Gross Amounts Not Offset, Assets | (2,043) | |
Total Net Amounts, Assets | 33 | |
Gross Amounts, Liabilities | 344,619 | $ 247,577 |
Gross Amounts Offset, Liabilities | (551) | (190) |
Total Net Amounts, Liabilities | 344,068 | 247,387 |
Gross Amounts Not Offset, Liabilities | (336,645) | (59,023) |
Total Net Amounts, Liabilities | $ 7,423 | $ 188,364 |
Fair Value Measurements and D68
Fair Value Measurements and Derivatives - Effects of derivatives designated as cash flow hedges (Details 2) - Designated as Hedging Instrument - Cash Flow Hedging - Fuel Swaps - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in other comprehensive income (loss) - effective portion | $ (173,513) | $ (198,595) | $ 8,532 |
Loss recognized in other income (expense) - ineffective portion | (16,011) | (5,753) | (345) |
Amount reclassified from accumulated other comprehensive income (loss) | $ 75,808 | $ 8,388 | $ (6,250) |
Fair Value Measurements and D69
Fair Value Measurements and Derivatives - Effects of fuel swaps dedesignated and recognized into earnings (Details 3) - Fuel Swaps - Dedesignated As Hedging Instrument - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivatives Fair Value [Line Items] | |||
Amount reclassified from accumulated other comprehensive income (loss) into other income (expense) | $ 10,000 | ||
Loss recognized in other income (expense) | $ (4,727) |
Fair Value Measurements and D70
Fair Value Measurements and Derivatives - Efects of fuel collars designated as cash flow hedges (Details 4) - Designated as Hedging Instrument - Cash Flow Hedging - Fuel Collars - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Loss recognized in other comprehensive income (loss) - effective portion | $ (1,024) | $ (1,152) | |
Loss recognized in other income (expense) - ineffective portion | (292) | (26) | |
Amount reclassified from accumulated other comprehensive income (loss) | $ 248 | $ 1,888 | $ 1,547 |
Fair Value Measurements and D71
Fair Value Measurements and Derivatives - Effects of fuel options which were not designated as hedging instruments (Details 5) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Not Designated as Hedging Instrument | Fuel Options | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain recognized in other income (expense) | $ (864) | $ 1,340 |
Fair Value Measurements and D72
Fair Value Measurements and Derivatives - Effects of foreign currency options designated as cash flow hedges (Details 6) - Designated as Hedging Instrument - Cash Flow Hedging - Foreign currency options - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Loss recognized in other comprehensive income (loss) - effective portion | $ (1,157) | $ (3,304) | |
Loss recognized in other income (expense) - ineffective portion | (241) | (97) | |
Amount reclassified from other comprehensive income (loss) into interest expense, net | $ 1,320 | $ 1,269 | $ 470 |
Fair Value Measurements and D73
Fair Value Measurements and Derivatives - Effects of foreign currency forward contracts designated as cash flow hedges (Details 7) - Designated as Hedging Instrument - Cash Flow Hedging - Foreign currency forward contracts - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Loss recognized in other comprehensive income (loss) - effective portion | $ (84,187) | $ (30,686) | $ (2,983) |
Gain (loss) recognized in other income (expense) - ineffective portion | (343) | (7) | 67 |
Amount reclassified from accumulated comprehensive income (loss) into depreciation and amortization expense | $ 116 | $ (243) | $ (84) |
Fair Value Measurements and D74
Fair Value Measurements and Derivatives - Effects of foreign currency forward which were not designated as hedging instruments (Details 8) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Not Designated as Hedging Instrument | Foreign currency forward contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in other income (expense) | $ 684 | $ 20 |
Fair Value Measurements and D75
Fair Value Measurements and Derivatives - Effects of foreign currency collar designated as cash flow hedges (Details 9) - Designated as Hedging Instrument - Cash Flow Hedging - Foreign currency collar - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in other comprehensive income (loss) - effective portion | $ (1,588) | $ 4,350 | |
Amount reclassified from accumulated comprehensive income (loss) | $ (364) | $ (333) |
Fair Value Measurements and D76
Fair Value Measurements and Derivatives - Effects of foreign currency collar which were not designated as hedging instruments (Details 10) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Not Designated as Hedging Instrument | Foreign currency collar | |||
Derivative Instruments Gain Loss [Line Items] | |||
Loss recognized in other income (expense) | $ (26,249) | $ (6,980) |
Fair Value Measurements and D77
Fair Value Measurements and Derivatives - Effects of interest rates swaps designated as cash flow hedges (Details 11) - Designated as Hedging Instrument - Cash Flow Hedging - Interest rates swaps - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Loss recognized in other comprehensive income (loss) - effective portion | $ (5,152) | $ (5,386) | $ (3,196) |
Loss recognized in other income (expense) - ineffective portion | (23) | ||
Amount reclassified from other comprehensive income (loss) into interest expense, net | $ 4,614 | $ 2,385 | $ 189 |
Fair Value Measurements and D78
Fair Value Measurements and Derivatives - Effects of interest rate swaps which were not designated as hedging instruments (Details 12) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Not Designated as Hedging Instrument | Interest rates swaps | |||
Derivative Instruments Gain Loss [Line Items] | |||
Loss recognized in other income (expense) | $ (2) | $ (3) |
Fair Value Measurements and D79
Fair Value Measurements and Derivatives (Detail Textuals) € in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)Metric_Ton | Dec. 31, 2015EUR (€)Metric_Ton | Dec. 31, 2014USD ($) | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value of long-term debt | $ 6,495.5 | $ 6,229.1 | |
Increase in goodwill | 985.1 | ||
Increase in intangibles | 800 | ||
Maximum | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value of long-term debt in excess of carrying value | $ 45 | ||
Minimum | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value of long-term debt in excess of carrying value | $ 6.6 | ||
Fuel Swaps | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Projected fuel purchases | Metric_Ton | 1.6 | 1.6 | |
Foreign currency forward contracts | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notional amount of derivatives | $ 1,200 | € 1,100 | |
Foreign currency collar | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notional amount of derivatives | 298.1 | € 274.4 | |
Interest rates swaps | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notional amount of derivatives | $ 715.9 |
Employee Benefits and Share O80
Employee Benefits and Share Option Plans - Fair value assumptions of Share Option Awards (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Time Based Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | |||
Expected stock price volatility, minimum | 32.32% | 48.30% | 50.40% |
Expected stock price volatility, maximum | 45.33% | 49.90% | 54.80% |
Risk-free interest rate, minimum | 1.34% | 1.80% | 0.80% |
Risk-free interest rate, maximum | 1.92% | 2.02% | 1.82% |
Expected term | 6 years 3 months | ||
Time Based Options | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term | 6 years | 5 years | |
Time Based Options | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term | 6 years 6 months | 6 years 3 months | |
Performance Based Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 0.00% | ||
Expected stock price volatility, minimum | 29.31% | ||
Expected stock price volatility, maximum | 29.86% | ||
Risk-free interest rate | 1.76% | ||
Performance Based Options | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term | 4 years 10 months 17 days | ||
Performance Based Options | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term | 5 years 4 months 17 days | ||
Market Based Share Option Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 0.00% | ||
Expected share price volatility | 30.00% | ||
Risk-free interest rate | 1.34% | ||
Expected term | Mid-point from vesting to assumed options expiration |
Employee Benefits and Share O81
Employee Benefits and Share Option Plans - Summary of Share Option Awards (Details 1) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Weighted- Average Contractual Term (years) | ||
Outstanding as of beginning of period | 8 years 7 months 2 days | 7 years 7 months 9 days |
Vested and expected to vest | 8 years 5 months 19 days | |
Exercisable | 5 years 10 months 2 days | |
Aggregate intrinsic Value | ||
Outstanding | $ 104,864 | $ 142,831 |
Vested and expected to vest | 101,824 | |
Exercisable | $ 40,890 | |
Time Based Options | ||
Number of Share Option Awards | ||
Outstanding as of beginning of period | 6,079,881 | |
Granted | 5,130,000 | |
Exercised | (2,144,702) | |
Forfeited and cancelled | (1,363,108) | |
Outstanding as of end of period | 7,702,071 | 6,079,881 |
Vested and expected to vest as of end of period | 7,351,098 | |
Exercisable as of end of period | 808,794 | |
Weighted-Average Exercise Price | ||
Outstanding as of beginning of period | $ 29.92 | |
Granted | 56.64 | |
Exercised | 27.39 | |
Forfeited and cancelled | 37.49 | |
Outstanding as of end of period | 47.35 | $ 29.92 |
Vested and expected to vest as of end of period | 47.22 | |
Exercisable as of end of period | $ 29.23 | |
Performance Based Options | ||
Number of Share Option Awards | ||
Outstanding as of beginning of period | 1,457,314 | |
Granted | ||
Exercised | (546,951) | |
Forfeited and cancelled | (477,611) | |
Outstanding as of end of period | 432,752 | 1,457,314 |
Vested and expected to vest as of end of period | 432,752 | |
Exercisable as of end of period | 432,752 | |
Weighted-Average Exercise Price | ||
Outstanding as of beginning of period | $ 19 | |
Granted | ||
Exercised | $ 19 | |
Forfeited and cancelled | 19 | |
Outstanding as of end of period | 19 | $ 19 |
Vested and expected to vest as of end of period | 19 | |
Exercisable as of end of period | $ 19 | |
Market Based Share Option Awards | ||
Number of Share Option Awards | ||
Outstanding as of beginning of period | ||
Granted | 208,333 | |
Exercised | ||
Forfeited and cancelled | ||
Outstanding as of end of period | 208,333 | |
Vested and expected to vest as of end of period | 208,333 | |
Exercisable as of end of period | ||
Weighted-Average Exercise Price | ||
Outstanding as of beginning of period | ||
Granted | $ 59.43 | |
Exercised | ||
Forfeited and cancelled | ||
Outstanding as of end of period | $ 59.43 | |
Vested and expected to vest as of end of period | $ 59.43 | |
Exercisable as of end of period |
Employee Benefits and Share O82
Employee Benefits and Share Option Plans - Summary of Restricted Share Activity (Details 2) | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Time-Based Restricted Stock Awards | |
Number of Restricted Share Awards | |
Nonvested as of beginning of period | shares | 196,644 |
Granted | shares | 6,881 |
Vested | shares | (83,958) |
Forfeited or Expired | shares | (75,914) |
Non-vested as of end of period | shares | 43,653 |
Weighted-Average Grant-Date Fair Value | |
Nonvested as of beginning of period | $ / shares | $ 3.43 |
Granted | $ / shares | 50.23 |
Vested | $ / shares | 6.68 |
Forfeited or Expired | $ / shares | 2.68 |
Non-vested as of end of period | $ / shares | $ 5.87 |
Performance-Based Restricted Stock Awards | |
Number of Restricted Share Awards | |
Nonvested as of beginning of period | shares | 1,208,608 |
Granted | shares | |
Vested | shares | (620,739) |
Forfeited or Expired | shares | (587,869) |
Non-vested as of end of period | shares | |
Weighted-Average Grant-Date Fair Value | |
Nonvested as of beginning of period | $ / shares | $ 3.37 |
Granted | $ / shares | |
Vested | $ / shares | $ 3.92 |
Forfeited or Expired | $ / shares | $ 2.79 |
Non-vested as of end of period | $ / shares |
Employee Benefits and Share O83
Employee Benefits and Share Option Plans - Fair value assumptions of RSUs (Details 3) - Restricted Share Units ("RSUs") | 12 Months Ended |
Dec. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Dividend yield | 0.00% |
Expected share price volatility | 30.00% |
Risk-free interest rate | 1.34% |
Expected term | Mid-point from vesting to assumed awards expiration |
Employee Benefits and Share O84
Employee Benefits and Share Option Plans - Summary of RSUs activity (Details 4) | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Time-based RSUs | |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested [Roll Forward] | |
Nonvested as of beginning of period | shares | |
Granted | shares | 150,000 |
Vested | shares | |
Forfeited or Expired | shares | |
Non-vested as of end of period | shares | 150,000 |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested Weighted Average Grant Date Fair Value [Roll Forward] | |
Nonvested as of beginning of period | $ / shares | |
Granted | $ / shares | $ 59.43 |
Vested | $ / shares | |
Forfeited or Expired | $ / shares | |
Non-vested as of end of period | $ / shares | $ 59.43 |
Market-based RSUs | |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested [Roll Forward] | |
Nonvested as of beginning of period | shares | |
Granted | shares | 50,000 |
Vested | shares | |
Forfeited or Expired | shares | |
Non-vested as of end of period | shares | 50,000 |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested Weighted Average Grant Date Fair Value [Roll Forward] | |
Nonvested as of beginning of period | $ / shares | |
Granted | $ / shares | $ 59.43 |
Vested | $ / shares | |
Forfeited or Expired | $ / shares | |
Non-vested as of end of period | $ / shares | $ 59.43 |
Employee Benefits and Share O85
Employee Benefits and Share Option Plans - Amounts Related to Shipboard Retirement Plan (Details 5) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Pension expense: | ||||||
Service cost | $ 1,793 | $ 1,393 | $ 1,498 | |||
Interest cost | 738 | 728 | 603 | |||
Amortization of prior service cost | 378 | $ 378 | 378 | |||
Amortization of actuarial loss | 99 | 90 | ||||
Total pension expense | 3,008 | $ 2,499 | 2,569 | |||
Change in projected benefit obligation: | ||||||
Projected benefit obligation at beginning of year | 19,730 | 15,570 | 16,221 | |||
Service cost | 1,793 | 1,393 | 1,498 | |||
Interest cost | 738 | 728 | 603 | |||
Actuarial gain (loss) | (625) | 2,689 | (2,070) | |||
Direct benefit payments | (558) | (650) | (682) | |||
Projected benefit obligation at end of year | 21,078 | 19,730 | 15,570 | |||
Amounts recognized in the consolidated balance sheets: | ||||||
Projected benefit obligation | $ 19,730 | $ 15,570 | $ 15,570 | $ 21,078 | $ 19,730 | $ 15,570 |
Amounts recognized in accumulated other comprehensive income (loss): | ||||||
Prior service cost | (5,293) | (5,671) | (6,049) | |||
Accumulated actuarial loss | (3,126) | (3,849) | (1,160) | |||
Accumulated other comprehensive income (loss) | $ (8,419) | $ (9,520) | $ (7,209) |
Employee Benefits and Share O86
Employee Benefits and Share Option Plans - Pension Benefits Expected to be Paid (Details 6) $ in Thousands | Dec. 31, 2015USD ($) |
Compensation And Retirement Disclosure [Abstract] | |
2,016 | $ 1,128 |
2,017 | 1,079 |
2,018 | 1,092 |
2,019 | 1,170 |
2,020 | 1,211 |
Next five years | $ 7,750 |
Employee Benefits and Share O87
Employee Benefits and Share Option Plans - (Detail Textuals) - USD ($) | Aug. 04, 2015 | Aug. 31, 2015 | Jul. 31, 2015 | Jan. 31, 2015 | Jan. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Apr. 30, 2014 |
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Intrinsic value of units exchanged | $ 40,890,000 | ||||||||
Proceeds from the exercise of share options | 69,127,000 | $ 5,857,000 | $ 2,020,000 | ||||||
Share-based compensation expense | 41,800,000 | 20,600,000 | 23,100,000 | ||||||
Forfeited contributions utilized | 400,000 | 100,000 | 100,000 | ||||||
Recorded expenses related to 401k plan and SERP | $ 5,300,000 | $ 3,700,000 | $ 3,300,000 | ||||||
Discount rate used in the net periodic benefit cost calculation | 3.80% | 4.80% | 3.80% | ||||||
Amortization period of losses | 18 years 11 months 12 days | ||||||||
Total severance expense under separation agreement | $ 13,400,000 | ||||||||
Value of acceleration of equity-based awards in severance costs | $ 8,200,000 | ||||||||
Deferred Bonus | Kevin M. Sheehan | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Approved bonus payment under separation agreement | $ 1,627,500 | ||||||||
Performance Incentive Plan | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Share options and ordinary shares, authorized | 15,035,106 | ||||||||
Maximum number of shares that can be granted to one individual | 5,000,000 | ||||||||
Performance Incentive Plan | Minimum | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Share based award, contractual life | 7 years | ||||||||
Performance Incentive Plan | Maximum | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Share based award, contractual life | 10 years | ||||||||
Employee Stock Purchase Plan | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Share-based compensation expense | $ 400,000 | 90,000 | $ 0 | ||||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 2,000,000 | ||||||||
Percentage of purchase price discount | 15.00% | ||||||||
Accrued payroll liability | $ 1,100,000 | 300,000 | |||||||
401(k) Plan | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Maximum percentage of employee eligible compensation that may be contributed towards 401(k) | 100.00% | ||||||||
401(k) Plan | The first 3% | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Employer matching contribution percent | 100.00% | ||||||||
Defined contribution plan, percentage of employee contribution | 3.00% | ||||||||
Matching contributions vesting period | 5 years | ||||||||
401(k) Plan | Amounts greater than 3% | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Employer matching contribution percent | 50.00% | ||||||||
401(k) Plan | Amounts greater than 3% | Minimum | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Defined contribution plan, percentage of employee contribution | 3.00% | ||||||||
Supplemental Executive Retirement Plan (SERP) | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Participants' deferred compensation accounts under the SERP Plan | $ 500,000 | 400,000 | |||||||
Shipboard Retirement Plan | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Projected benefit obligation included in accrued expenses and other liabilities | 1,100,000 | 900,000 | |||||||
Projected benefit obligation included in other long term liabilities | 20,000,000 | 18,800,000 | |||||||
Non Recurring Costs | Management Exchange Agreement | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Share-based compensation expense | 6,000,000 | ||||||||
Non Recurring Costs | Corporate Reorganization | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Share-based compensation expense | 18,500,000 | ||||||||
Options | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Incremental cost associated with vested awards | 5,500,000 | ||||||||
Share based award, vesting period | 3 years | 3 years | |||||||
Share options granted | 700,000 | 3,500,000 | |||||||
Exercise price of share options granted | $ 59.43 | $ 56.19 | |||||||
Total intrinsic value of stock options exercised | 68,000,000 | 4,500,000 | 1,400,000 | ||||||
Share based award, contractual life | 10 years | 10 years | |||||||
Proceeds from the exercise of share options | $ 69,100,000 | $ 6,100,000 | $ 2,000,000 | ||||||
Time Based Options | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Share options granted | 5,130,000 | ||||||||
Exercise price of share options granted | $ 56.64 | ||||||||
Weighted average period for recognition of unrecognized compensation expense | 2 years 6 months 25 days | ||||||||
Weighted-average grant-date fair value of options granted | $ 20.90 | $ 16.86 | $ 6.38 | ||||||
Total unrecognized compensation cost related to share options granted | $ 106,100,000 | ||||||||
Time Based Options | Vesting on June 30, 2017 | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Vesting percentage | 50.00% | ||||||||
Time Based Options | Vesting on June 30, 2019 | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Vesting percentage | 50.00% | ||||||||
Time Based Options | Amendment to employment agreement | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Share options granted | 625,000 | ||||||||
Exercise price of share options granted | $ 59.43 | ||||||||
Share based award, contractual life | 10 years | ||||||||
Performance Based Options | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Share options granted | |||||||||
Exercise price of share options granted | |||||||||
Weighted average period for recognition of unrecognized compensation expense | 0 years | ||||||||
Weighted-average grant-date fair value of options granted | $ 17.07 | ||||||||
Total unrecognized compensation cost related to share options granted | $ 0 | ||||||||
Performance Based Options | Amendment to employment agreement | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Share options granted | 416,667 | ||||||||
Exercise price of share options granted | $ 59.43 | ||||||||
Share based award, contractual life | 10 years | ||||||||
Market Based Share Option Awards | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Share options granted | 208,333 | ||||||||
Exercise price of share options granted | $ 59.43 | ||||||||
Weighted average period for recognition of unrecognized compensation expense | 1 year 11 months 12 days | ||||||||
Weighted-average grant-date fair value of options granted | $ 12.37 | ||||||||
Total unrecognized compensation cost related to share options granted | $ 2,000,000 | ||||||||
Market Based Share Option Awards | Amendment to employment agreement | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Share options granted | 208,333 | ||||||||
Exercise price of share options granted | $ 59.43 | ||||||||
Share based award, contractual life | 10 years | ||||||||
Restricted Stock | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Unrecognized compensation expense | $ 2,000,000 | ||||||||
Weighted average period for recognition of unrecognized compensation expense | 1 year 2 months 12 days | ||||||||
Total fair value of shares vested | $ 40,900,000 | ||||||||
Description of share-based awards vesting period | equal quarterly installments over 1 or 2 years or in annual installments over 4 years | ||||||||
TBUs | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Unrecognized compensation expense | $ 7,900,000 | ||||||||
Weighted average period for recognition of unrecognized compensation expense | 3 years 6 months | ||||||||
Share awards granted | 150,000 | ||||||||
TBUs | Amendment to employment agreement | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Share awards granted | 150,000 | ||||||||
Performance-Based Units | Amendment to employment agreement | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Share awards granted | 100,000 | ||||||||
Market-based RSUs | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Unrecognized compensation expense | $ 1,100,000 | ||||||||
Weighted average period for recognition of unrecognized compensation expense | 1 year 6 months 14 days | ||||||||
Share awards granted | 50,000 | ||||||||
Market-based RSUs | Amendment to employment agreement | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Share awards granted | 50,000 |
Income Taxes - Components of ne
Income Taxes - Components of net income before income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Components Of Net Income Before Income Taxes [Line Items] | |||
Net income before income taxes | $ 433,909 | $ 340,334 | $ 114,688 |
Bermuda | |||
Components Of Net Income Before Income Taxes [Line Items] | |||
Net income before income taxes | |||
Foreign - Other | |||
Components Of Net Income Before Income Taxes [Line Items] | |||
Net income before income taxes | $ 433,909 | $ 340,334 | $ 114,688 |
Income Taxes - Components of pr
Income Taxes - Components of provision for income taxes (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current: | |||
United States | $ (4,621) | $ 9,162 | $ (8,098) |
Total current | (5,503) | 5,884 | (8,958) |
Deferred: | |||
United States | (1,269) | (3,617) | (2,844) |
Total deferred: | (1,269) | (3,617) | (2,844) |
Income tax benefit (expense) | $ (6,772) | $ 2,267 | $ (11,802) |
BERMUDA | |||
Current: | |||
Foreign | |||
Deferred: | |||
Foreign | |||
Foreign - Other | |||
Current: | |||
Foreign | $ (882) | $ (3,278) | $ (860) |
Deferred: | |||
Foreign |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of income tax expense computed by applying our Bermuda statutory rate and reported income tax expense (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Income Tax Disclosure [Abstract] | ||||
Tax at Bermuda statutory rate | ||||
Foreign income taxes at different rates | $ (7,864) | $ (2,813) | $ (14,020) | |
Benefit from global tax platform | [1] | 6,074 | ||
Tax contingencies | (283) | (275) | $ (1,394) | |
Return to provision adjustments | 1,370 | 14,444 | ||
Benefit (expense) from change in tax status | 5 | 1,462 | $ (2,462) | |
Valuation allowance | (10,551) | |||
Income tax benefit (expense) | $ (6,772) | $ 2,267 | $ (11,802) | |
[1] | During 2013, we implemented a restructuring plan to provide a global tax platform for international expansion. As part of the plan, the Company became a tax resident of the U.K. As such, it qualifies for relief from U.S. Branch Profits taxes under the U.S.-U.K. Tax Treaty. In addition, the restructuring resulted in additional interest and depreciation which reduced the Company's overall income tax expense. |
Income Taxes - Deferred tax ass
Income Taxes - Deferred tax assets and liabilities (Details 3) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Loss carryforwards | $ 85,939 | $ 77,031 |
Shares in foreign subsidiary | 17,808 | |
Other | $ 1,460 | 1,121 |
Valuation allowance | (61,437) | (81,704) |
Total net deferred assets | 25,962 | 14,256 |
Deferred tax liabilities: | ||
Property and equipment | (33,862) | (20,888) |
Total deferred tax liabilities | (33,862) | (20,888) |
Net deferred tax liability | $ (7,900) | $ (6,632) |
Income Taxes - Reconciliation92
Income Taxes - Reconciliation of total amounts of unrecognized tax benefits (Details 4) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Unrecognized tax benefits, beginning of year | $ 11,174 | $ 10,894 |
Gross increases in tax positions from prior periods | ||
Gross decreases in tax positions from prior periods | ||
Gross increases in tax positions from current periods | $ 280 | |
Settlement of tax positions | ||
Lapse of statute of limitations | ||
Unrecognized tax benefits, end of year | $ 11,174 | $ 11,174 |
Income Taxes (Detail Textuals)
Income Taxes (Detail Textuals) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule Of Income Taxes [Line Items] | |||
Unrecognized tax benefits | $ 11,174 | $ 11,174 | $ 10,894 |
Valuation allowance | 10,551 | ||
Prestige Cruises International Inc | |||
Schedule Of Income Taxes [Line Items] | |||
Net operating loss carryforwards | $ 126,900 | 104,300 | |
U.S. net operating loss carryforwards, expiration year | 2,023 | ||
U.S. | |||
Schedule Of Income Taxes [Line Items] | |||
Net operating loss carryforwards | $ 197,000 | 158,600 | |
U.S. net operating loss carryforwards, expiration year | 2,023 | ||
NORWAY | |||
Schedule Of Income Taxes [Line Items] | |||
Net operating loss carryforwards | $ 35,100 | 58,800 | |
State and Local Jurisdiction | |||
Schedule Of Income Taxes [Line Items] | |||
Net operating loss carryforwards | $ 10,700 | 24,500 | |
U.S. net operating loss carryforwards, expiration year | 2025 through 2035 | ||
State and Local Jurisdiction | Prestige Cruises International Inc | |||
Schedule Of Income Taxes [Line Items] | |||
Net operating loss carryforwards | 100 | ||
Valuation allowance | $ 36,500 | ||
Minimum | |||
Schedule Of Income Taxes [Line Items] | |||
Percentage of change in ownership | 50.00% |
Commitments and Contingencies -
Commitments and Contingencies - Minimum Annual Rentals for Non-Cancelable Operating Leases (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2,016 | $ 12,448 |
2,017 | 13,606 |
2,018 | 13,662 |
2,019 | 13,660 |
2,020 | 14,490 |
Thereafter | 88,814 |
Total | $ 156,680 |
Commitments and Contingencies95
Commitments and Contingencies - Minimum Annual Payments for Non-Cancelable Ship Construction Contracts (Details 1) - Ship Construction Contracts $ in Thousands | Dec. 31, 2015USD ($) |
Other Commitments [Line Items] | |
2,016 | $ 536,815 |
2,017 | 806,681 |
2,018 | 890,447 |
2,019 | $ 758,114 |
2,020 | |
Thereafter | |
Total | $ 2,992,057 |
Commitments and Contingencies96
Commitments and Contingencies - Future Commitments to Pay for Usage of Port Facilities (Details 2) - Port Facility Commitments $ in Thousands | Dec. 31, 2015USD ($) |
Other Commitments [Line Items] | |
2,016 | $ 33,217 |
2,017 | 29,141 |
2,018 | 20,403 |
2,019 | 20,858 |
2,020 | 21,326 |
Thereafter | 60,889 |
Total | $ 185,834 |
Commitments and Contingencies97
Commitments and Contingencies (Detail Textuals) € in Millions, £ in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015USD ($)Gross_TonCruiseShipBerth | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2015EUR (€)Gross_TonCruiseShipBerth | Dec. 31, 2015GBP (£)Gross_TonCruiseShipBerth | |
Commitments and Contingencies Disclosure [Line Items] | |||||
Total expense under non-cancelable operating lease commitments | $ | $ 12.6 | $ 9.2 | $ 9.4 | ||
Capacity of ship, berths | Berth | 45,000 | 45,000 | 45,000 | ||
British Travel Agents | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Aggregate contract price of new ships | £ | £ 6.5 | ||||
Contractual Agreement Two | Fincantieri Shipyard | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Aggregate contract price of new ships | $ | $ 398.9 | ||||
Ship Construction Contracts | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Scheduled delivery date of ships under construction | spring of 2017, spring of 2018 and fall of 2019 | ||||
Cruising ships to be built | CruiseShip | 3 | 3 | 3 | ||
Capacity of ship, tons | Gross_Ton | 164,600 | 164,600 | 164,600 | ||
Aggregate contract price of new ships | $ 2.7 | € 2,500 | |||
Export credit facility financing as percentage of contract price | 80.00% | 80.00% | 80.00% | ||
Ship Construction Contracts | Minimum | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Capacity of ship, berths | Berth | 4,100 | 4,100 | 4,100 | ||
Ship Construction Contracts | Maximum | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Capacity of ship, berths | Berth | 4,350 | 4,350 | 4,350 | ||
Ship Construction Contracts | Fincantieri Shipyard | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Aggregate contract price of new ships | $ 372.6 | € 343 | |||
Export credit facility financing as percentage of contract price | 80.00% | 80.00% | 80.00% | ||
Port Facility Commitments | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Performance guarantee required to be maintained | $ | $ 30 |
Restructuring Costs (Details)
Restructuring Costs (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Restructuring Reserve [Roll Forward] | |
Accrued expense balance as of December 31, 2014 | $ (7,956) |
Amounts paid | 18,815 |
Additional accrued expense | (15,003) |
Accrued expense balance as of December 31, 2015 | $ (4,144) |
Restructuring Costs (Detail Tex
Restructuring Costs (Detail Textuals) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||
Accrual balance for restructuring costs for severance and other employee-related costs | $ 4,144 | $ 7,956 |
Restructuring expense | 15,003 | |
Marketing general and administrative expense | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expense | $ 15,000 |
Concentration Risk (Detail Text
Concentration Risk (Detail Textuals) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Risks and Uncertainties [Abstract] | ||
Food and labor cost | $ 122.4 | $ 22.5 |
Supplemental Cash Flow Infor101
Supplemental Cash Flow Information (Detail Textuals) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Supplemental Cash Flow Elements [Abstract] | |||
Interest and related fees paid | $ 218.3 | $ 233.5 | $ 316.9 |
Seller financed capital expenditure | 82 | ||
Non-cash investing activities in connection with capital leases | 31.1 | 15.5 | |
Income tax paid | 10.3 | 9.8 | 1.1 |
Non-cash investing activities capital expenditures | $ 41.1 | $ 13 | |
Modification of fully-vested Management NCL Corporation Units from liability to equity award status | $ 10 |
Revisions to the Consolidate102
Revisions to the Consolidated Statement of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revision To Consolidated Statement Of Cash Flows [Abstract] | ||||||
Additions to property and equipment, net | $ (14,600) | $ (18,500) | $ (1,121,984) | $ (964,640) | $ (877,282) | |
Proceeds from long-term debt | $ 82,000 | $ 1,855,809 | $ 3,107,721 | $ 2,522,311 |
Quarterly Selected Financial103
Quarterly Selected Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenue | $ 1,036,523 | $ 1,284,910 | $ 1,085,433 | $ 938,182 | $ 788,909 | $ 907,017 | $ 765,927 | $ 664,028 | $ 4,345,048 | $ 3,125,881 | $ 2,570,294 |
Operating income | 117,922 | 306,832 | 217,383 | 60,349 | 46,442 | 234,822 | 148,588 | 73,089 | 702,486 | 502,941 | 395,887 |
Net income (loss) attributable to Norwegian Cruise Line Holdings Ltd. | $ 38,312 | $ 251,787 | $ 158,494 | $ (21,456) | $ (25,609) | $ 201,078 | $ 111,616 | $ 51,267 | $ 427,137 | $ 342,601 | $ 102,886 |
Earnings (loss) per share: | |||||||||||
Basic (in dollars per share) | $ 0.17 | $ 1.11 | $ 0.7 | $ (0.1) | $ (0.12) | $ 0.99 | $ 0.54 | $ 0.25 | $ 1.89 | $ 1.64 | $ 0.50 |
Diluted (in dollars per share) | $ 0.17 | $ 1.09 | $ 0.69 | $ (0.1) | $ (0.12) | $ 0.97 | $ 0.54 | $ 0.24 | $ 1.86 | $ 1.62 | $ 0.49 |