Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 19, 2016 | Jun. 30, 2015 | |
Entity Registrant Name | Belmond Ltd. | ||
Entity Central Index Key | 1,115,836 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 1,087 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Class A common shares | |||
Entity Common Stock, Shares Outstanding | 101,225,294 | ||
Class B common shares | |||
Entity Common Stock, Shares Outstanding | 18,044,478 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Assets | |||
Cash and cash equivalents | $ 135,599 | $ 135,118 | |
Restricted cash | 2,568 | 1,905 | |
Accounts receivable, net of allowances of $291 and $425 | 27,066 | 30,310 | |
Due from unconsolidated companies | 12,157 | 15,894 | |
Prepaid expenses and other | 13,310 | 17,791 | |
Inventories | 25,556 | 30,501 | |
Total current assets | 216,256 | 231,519 | |
Property, plant and equipment, net of accumulated depreciation of $343,247 and $338,438 | 1,078,361 | 1,168,757 | |
Investments in unconsolidated companies | 71,724 | 65,831 | |
Goodwill | 113,996 | 132,644 | |
Other intangible assets | 13,852 | 13,958 | |
Other assets | 15,286 | 42,514 | |
Total assets | [1] | 1,509,475 | 1,655,223 |
Liabilities and Equity | |||
Accounts payable | 15,826 | 24,855 | |
Accrued liabilities | 71,653 | 68,635 | |
Deferred revenue | 32,266 | 30,943 | |
Current portion of long-term debt and obligations under capital leases | 5,349 | 5,549 | |
Total current liabilities | 125,094 | 129,982 | |
Long-term debt and obligations under capital leases | 577,543 | 599,140 | |
Liability for pension benefit | 355 | 2,386 | |
Other liabilities | 20,470 | 23,897 | |
Deferred income taxes | 123,910 | 134,120 | |
Liability for uncertain tax positions | 3,678 | 3,437 | |
Total liabilities | [1] | $ 851,050 | $ 892,962 |
Commitments and contingencies (Note 19) | |||
Shareholders’ equity: | |||
Preferred shares $0.01 par value (30,000,000 shares authorized, issued Nil) | $ 0 | $ 0 | |
Additional paid-in capital | 975,419 | 1,000,803 | |
Retained earnings | 16,172 | 5,763 | |
Accumulated other comprehensive loss | (334,542) | (246,420) | |
Less: Reduction due to class B common shares owned by a subsidiary — 18,044,478 (2014 - 18,044,478) | (181) | (181) | |
Total shareholders’ equity | 658,064 | 761,186 | |
Non-controlling interests | 361 | 1,075 | |
Total equity | 658,425 | 762,261 | |
Total liabilities and equity | 1,509,475 | 1,655,223 | |
Class A common shares | |||
Shareholders’ equity: | |||
Common stock, value | 1,015 | 1,040 | |
Class B common shares | |||
Shareholders’ equity: | |||
Common stock, value | $ 181 | $ 181 | |
[1] | Included in Belmond Ltd.’s consolidated assets and liabilities are assets of consolidated variable interest entities (“consolidated VIEs”) that can only be used to settle obligations of the consolidated VIEs and liabilities of consolidated VIEs whose creditors have no recourse to Belmond Ltd. The Company’s only consolidated VIE at December 31, 2015 and December 31, 2014 is Charleston Center LLC. These assets and liabilities at December 31, 2015 and December 31, 2014 are as follows: December 31, 2015 December 31, 2014 $’000 $’000 Assets Cash and cash equivalents 2,569 2,501Restricted cash — 768Accounts receivable, net of allowances of $Nil and $Nil 2,712 2,062Prepaid expenses and other 1,232 1,342Inventories 1,231 1,527Total current assets 7,744 8,200 Property, plant and equipment, net of accumulated depreciation of $30,260 and $26,581 201,342 197,608Other assets 1,566 1,009Total assets 210,652 206,817 Liabilities Accounts payable 3,764 3,937Accrued liabilities 2,910 2,485Deferred revenue 2,551 2,151Current portion of long-term debt and obligations under capital leases 229 217Total current liabilities 9,454 8,790 Long-term debt and obligations under capital leases 96,392 96,406Other liabilities 16,540 15,940Total liabilities 122,386 121,136See further description in note 5, Variable interest entities. |
Consolidated Balance Sheets Var
Consolidated Balance Sheets Variable Interest Entities (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash and cash equivalents | $ 135,599 | $ 135,118 | |
Restricted cash | 2,568 | 1,905 | |
Accounts receivable, net of allowances of $Nil and $Nil | 27,066 | 30,310 | |
Prepaid expenses and other | 13,310 | 17,791 | |
Inventories | 25,556 | 30,501 | |
Total current assets | 216,256 | 231,519 | |
Property, plant and equipment, net of accumulated depreciation of $30,260 and $26,581 | 1,078,361 | 1,168,757 | |
Other assets | 15,286 | 42,514 | |
Total assets | [1] | 1,509,475 | 1,655,223 |
Accounts payable | 15,826 | 24,855 | |
Accrued liabilities | 71,653 | 68,635 | |
Deferred revenue | 32,266 | 30,943 | |
Current portion of long-term debt and obligations under capital leases | 5,349 | 5,549 | |
Total current liabilities | 125,094 | 129,982 | |
Long-term debt and obligations under capital leases | 577,543 | 599,140 | |
Other liabilities | 20,470 | 23,897 | |
Total liabilities | [1] | 851,050 | 892,962 |
Variable interest entity, primary beneficiary | |||
Cash and cash equivalents | 2,569 | 2,501 | |
Restricted cash | 0 | 768 | |
Accounts receivable, net of allowances of $Nil and $Nil | 2,712 | 2,062 | |
Prepaid expenses and other | 1,232 | 1,342 | |
Inventories | 1,231 | 1,527 | |
Total current assets | 7,744 | 8,200 | |
Property, plant and equipment, net of accumulated depreciation of $30,260 and $26,581 | 201,342 | 197,608 | |
Other assets | 1,566 | 1,009 | |
Total assets | 210,652 | 206,817 | |
Accounts payable | 3,764 | 3,937 | |
Accrued liabilities | 2,910 | 2,485 | |
Deferred revenue | 2,551 | 2,151 | |
Current portion of long-term debt and obligations under capital leases | 229 | 217 | |
Total current liabilities | 9,454 | 8,790 | |
Long-term debt and obligations under capital leases | 96,392 | 96,406 | |
Other liabilities | 16,540 | 15,940 | |
Total liabilities | $ 122,386 | $ 121,136 | |
[1] | Included in Belmond Ltd.’s consolidated assets and liabilities are assets of consolidated variable interest entities (“consolidated VIEs”) that can only be used to settle obligations of the consolidated VIEs and liabilities of consolidated VIEs whose creditors have no recourse to Belmond Ltd. The Company’s only consolidated VIE at December 31, 2015 and December 31, 2014 is Charleston Center LLC. These assets and liabilities at December 31, 2015 and December 31, 2014 are as follows: December 31, 2015 December 31, 2014 $’000 $’000 Assets Cash and cash equivalents 2,569 2,501Restricted cash — 768Accounts receivable, net of allowances of $Nil and $Nil 2,712 2,062Prepaid expenses and other 1,232 1,342Inventories 1,231 1,527Total current assets 7,744 8,200 Property, plant and equipment, net of accumulated depreciation of $30,260 and $26,581 201,342 197,608Other assets 1,566 1,009Total assets 210,652 206,817 Liabilities Accounts payable 3,764 3,937Accrued liabilities 2,910 2,485Deferred revenue 2,551 2,151Current portion of long-term debt and obligations under capital leases 229 217Total current liabilities 9,454 8,790 Long-term debt and obligations under capital leases 96,392 96,406Other liabilities 16,540 15,940Total liabilities 122,386 121,136See further description in note 5, Variable interest entities. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts receivable, allowances | $ 291 | $ 425 |
Property, plant and equipment, accumulated depreciation | $ 343,247 | $ 338,438 |
Preferred shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred shares, shares authorized (in shares) | 30,000,000 | 30,000,000 |
Preferred shares, shares issued (in shares) | 0 | 0 |
Class A common shares | ||
Common shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common shares, shares authorized (in shares) | 240,000,000 | 240,000,000 |
Common shares, shares issued (in shares) | 101,447,557 | 103,979,577 |
Class B common shares | ||
Common shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common shares, shares authorized (in shares) | 120,000,000 | 120,000,000 |
Common shares, shares issued (in shares) | 18,044,478 | 18,044,478 |
Reduction due to class B common shares owned by a subsidiary (in shares) | 18,044,478 | 18,044,478 |
Variable interest entity, primary beneficiary | ||
Accounts receivable, allowances | $ 0 | $ 0 |
Property, plant and equipment, accumulated depreciation | $ 30,260 | $ 26,581 |
Statements of Consolidated Oper
Statements of Consolidated Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||
Revenue | $ 551,385 | $ 585,715 | $ 594,081 |
Expenses: | |||
Cost of services | 243,609 | 262,603 | 267,891 |
Selling, general and administrative | 206,197 | 219,584 | 227,270 |
Depreciation and amortization | 50,513 | 52,004 | 48,740 |
Impairment of goodwill | 9,796 | 0 | 0 |
Impairment of property, plant and equipment | 0 | 1,211 | 36,430 |
Total operating costs and expenses | 510,115 | 535,402 | 580,331 |
Gain on disposal of property, plant and equipment and equity method investments | 20,275 | 4,128 | 0 |
Earnings from operations | 61,545 | 54,441 | 13,750 |
(Loss)/gain on extinguishment of debt | 0 | (14,506) | 3,517 |
Other income | 0 | 1,257 | 0 |
Interest income | 926 | 1,418 | 1,067 |
Interest expense | (32,101) | (36,767) | (34,326) |
Foreign currency, net | (5,016) | 2,262 | 1,000 |
Earnings/(losses) before income taxes and earnings from unconsolidated companies, net of tax | 25,354 | 8,105 | (14,992) |
Provision for income taxes | (17,041) | (15,542) | (17,628) |
Earnings/(losses) before earnings from unconsolidated companies, net of tax | 8,313 | (7,437) | (32,620) |
Net earnings from unconsolidated companies, net of tax provision/(benefit) of $1,466, $(702) and $1,691 | 9,075 | 9,484 | 6,442 |
Earnings/(losses) from continuing operations | 17,388 | 2,047 | (26,178) |
Net losses from discontinued operations, net of tax provision/(benefit) of $Nil, $713 and $(3,911) | (1,534) | (3,782) | (5,318) |
Net earnings/(losses) | 15,854 | (1,735) | (31,496) |
Net losses/(earnings) attributable to non-controlling interests | 411 | (145) | (63) |
Net earnings/(losses) attributable to Belmond Ltd. | $ 16,265 | $ (1,880) | $ (31,559) |
Basic earnings per share | |||
Net earnings/(losses) from continuing operations (in dollars per share) | $ 0.169 | $ 0.020 | $ (0.254) |
Net earnings/(losses) from discontinued operations (in dollars per share) | (0.015) | (0.036) | (0.052) |
Basic net earnings/(losses) per share attributable to Belmond Ltd. (in dollars per share) | 0.158 | (0.017) | (0.307) |
Diluted earnings per share | |||
Net earnings/(losses) from continuing operations (in dollars per share) | 0.167 | 0.019 | (0.254) |
Net earnings/(losses) from discontinued operations (in dollars per share) | (0.015) | (0.036) | (0.052) |
Diluted net earnings/(losses) per share attributable to Belmond Ltd. (in dollars per share) | 0.156 | (0.018) | (0.307) |
Dividends per share (in dollars per share) | $ 0 | $ 0 | $ 0 |
Statements of Consolidated Ope6
Statements of Consolidated Operations (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||
Earnings from unconsolidated companies, tax (benefit)/provision | $ 1,466 | $ (702) | $ 1,691 |
Discontinued operations, tax (benefit)/provision | $ 0 | $ 713 | $ (3,911) |
Statements of Consolidated Comp
Statements of Consolidated Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings/(losses) | $ 15,854 | $ (1,735) | $ (31,496) |
Other comprehensive income/(losses), net of tax: | |||
Foreign currency translation adjustments, net of tax provision/(benefit) of $Nil, $(462) and $Nil | (88,457) | (152,155) | (14,211) |
Change in fair value of derivatives, net of tax provision/(benefit) of $(352), $1,503 and $834 | (522) | (188) | 2,595 |
Change in pension liability, net of tax provision/(benefit) of $147, $(528) and $1,336 | 580 | (1,926) | 4,673 |
Total other comprehensive losses, net of tax | (88,399) | (154,269) | (6,943) |
Total comprehensive losses | (72,545) | (156,004) | (38,439) |
Comprehensive losses/(income) attributable to non-controlling interests | 688 | 1,021 | (56) |
Comprehensive losses attributable to Belmond Ltd. | $ (71,857) | $ (154,983) | $ (38,495) |
Statements of Consolidated Com8
Statements of Consolidated Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Foreign currency translation adjustments, tax provision/(benefit) | $ 0 | $ (462) | $ 0 |
Change in fair value of derivatives, tax provision/(benefit) | (352) | 1,503 | 834 |
Change in pension liability, tax provision/(benefit) | $ 147 | $ (528) | $ 1,336 |
Statements of Consolidated Cash
Statements of Consolidated Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||
Net earnings/(losses) | $ 15,854 | $ (1,735) | $ (31,496) |
Less: Net losses from discontinued operations, net of tax | (1,534) | (3,782) | (5,318) |
Earnings/(losses) from continuing operations | 17,388 | 2,047 | (26,178) |
Adjustments to reconcile net earnings/(losses) to net cash provided by operating activities: | |||
Depreciation and amortization | 50,513 | 52,004 | 48,740 |
Impairment of goodwill | 9,796 | 0 | 0 |
Impairment of property, plant and equipment and other assets | 0 | 1,211 | 36,430 |
Gain on disposal of property, plant and equipment | (20,275) | (4,128) | 0 |
Loss/(gain) on extinguishment of debt | 0 | 14,506 | (3,517) |
Earnings from unconsolidated companies, net of tax | (9,075) | (9,484) | (6,442) |
Amortization of debt issuance costs and discount on secured term loan | 2,903 | 3,921 | 7,196 |
Share-based compensation | 6,707 | 7,928 | 10,388 |
Excess share-based compensation tax benefit | 0 | 0 | (267) |
Change in provisions for uncertain tax positions | 279 | 496 | (2,526) |
Change in deferred income tax | (124) | (11,246) | (2,078) |
Other non-cash movements | (1,076) | 3,950 | 1,140 |
Effect of exchange rates on net earnings/(losses) | 896 | (4,518) | (3,839) |
Change in assets and liabilities, net of effects from acquisitions: | |||
Accounts receivable | (536) | 1,593 | 414 |
Due from unconsolidated companies | 1,167 | (2,784) | (2,414) |
Prepaid expense and other | (725) | (2,500) | (1,000) |
Inventories | 1,962 | 2,251 | (1,742) |
Escrow and prepaid customer deposits | (1,284) | (615) | 3,839 |
Accounts payable | (5,703) | 3,178 | (1,320) |
Accrued liabilities | 10,127 | (2,059) | (3,628) |
Deferred revenue | 5,877 | 227 | 3,629 |
Other, net | (3,008) | 48 | 407 |
Other cash movements: | |||
Dividends from equity method investees | 3,649 | 3,725 | 7,841 |
Proceeds from insurance settlements | 0 | 887 | 0 |
Payment of key money | 0 | (3,000) | 0 |
Payment of swap termination costs | 0 | (3,985) | 0 |
Net cash provided by operating activities from continuing operations | 69,458 | 53,653 | 65,073 |
Net cash (used in)/provided by operating activities from discontinued operations | (1,534) | (2,317) | 1,907 |
Net cash provided by operating activities | 67,924 | 51,336 | 66,980 |
Cash flows from investing activities: | |||
Capital expenditure to acquire property, plant and equipment | (56,395) | (63,454) | (66,646) |
Capital expenditure to acquire intangible assets | (714) | (269) | 0 |
Investments in unconsolidated companies | (4,061) | (4,082) | (5,532) |
Increase in restricted cash | 0 | (526) | (4,705) |
Release of restricted cash | 519 | 11,324 | 8,580 |
Change in deferred revenue for asset sale deposits | (500) | (3,500) | 4,000 |
Government grants received | 0 | 0 | 1,043 |
Proceeds from insurance settlements | 0 | 297 | 0 |
Proceeds from sale of property, plant and equipment and equity method investments | 43,742 | 37,842 | 291 |
Net cash used in investing activities from continuing operations | (17,409) | (22,368) | (62,969) |
Net cash provided by investing activities from discontinued operations | 0 | 0 | 18,812 |
Net cash used in investing activities | (17,409) | (22,368) | (44,157) |
Cash flows from financing activities: | |||
Proceeds from working capital facilities | 0 | 0 | 133 |
Payments on working capital facilities | 0 | (133) | 0 |
Repurchase of shares | (37,565) | 0 | 0 |
Exercised stock options and vested share awards | 35 | 19 | 7 |
Excess share-based compensation tax benefit | 0 | 0 | 267 |
Dividend to non-controlling interest | (20) | 0 | 0 |
Issuance of long-term debt | 0 | 572,046 | 135,388 |
Debt issuance costs | (856) | (17,798) | (4,305) |
Principal payments under long-term debt | (5,432) | (565,051) | (124,444) |
Net cash (used in)/provided by financing activities from continuing operations | (43,838) | (10,917) | 7,046 |
Net cash provided by financing activities from discontinued operations | 0 | 0 | 0 |
Net cash (used in)/provided by financing activities | (43,838) | (10,917) | 7,046 |
Effect of exchange rate changes on cash and cash equivalents | (6,196) | (6,486) | 302 |
Net increase in cash and cash equivalents | 481 | 11,565 | 30,171 |
Cash and cash equivalents at beginning of period (includes $Nil, $394 and $538 of cash presented within assets held for sale) | 135,118 | 123,553 | 93,382 |
Cash and cash equivalents at end of period (includes $Nil, $Nil and $394 of cash presented within assets held for sale) | $ 135,599 | $ 135,118 | $ 123,553 |
Statements of Consolidated Ca10
Statements of Consolidated Cash Flows (Parentheticals) - Assets Held-for-sale - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Cash presented within assets held for sale at beginning of period | $ 0 | $ 394 | $ 538 |
Cash presented within assets held for sale at end of period | $ 0 | $ 0 | $ 394 |
Statements of Consolidated Tota
Statements of Consolidated Total Equity - USD ($) $ in Thousands | Total | Preferred shares at par value | Common shares at par valueClass A common shares at par value | Common shares at par valueClass B common shares at par value | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income/(loss) | Class B common shares held by a subsidiary | Non-controlling interests |
Balance at Dec. 31, 2012 | $ 938,323 | $ 0 | $ 1,029 | $ 181 | $ 982,106 | $ 39,202 | $ (86,381) | $ (181) | $ 2,367 |
Increase (Decrease) in Stockholders' Equity | |||||||||
Issuance of class A common shares in public offering, net of issuance costs | 0 | ||||||||
Share-based compensation | 10,754 | 10,754 | |||||||
Exercised stock options and vested share awards | 7 | 7 | |||||||
Comprehensive loss: | |||||||||
Net earnings (losses) attributable to common shares | (31,496) | (31,559) | 63 | ||||||
Other comprehensive loss | (6,943) | (6,936) | (7) | ||||||
Balance at Dec. 31, 2013 | 910,645 | 0 | 1,036 | 181 | 992,860 | 7,643 | (93,317) | (181) | 2,423 |
Increase (Decrease) in Stockholders' Equity | |||||||||
Share-based compensation | 7,928 | 7,928 | |||||||
Exercised stock options and vested share awards | 19 | 4 | 15 | ||||||
Dividend to non-controlling interest | (327) | (327) | |||||||
Comprehensive loss: | |||||||||
Net earnings (losses) attributable to common shares | (1,735) | (1,880) | 145 | ||||||
Other comprehensive loss | (154,269) | (153,103) | (1,166) | ||||||
Balance at Dec. 31, 2014 | 762,261 | 0 | 1,040 | 181 | 1,000,803 | 5,763 | (246,420) | (181) | 1,075 |
Increase (Decrease) in Stockholders' Equity | |||||||||
Share-based compensation | 6,707 | 6,707 | |||||||
Exercised stock options and vested share awards | 35 | 8 | 27 | ||||||
Repurchase of shares | (38,007) | (33) | (32,118) | (5,856) | |||||
Dividend to non-controlling interest | (26) | (26) | |||||||
Comprehensive loss: | |||||||||
Net earnings (losses) attributable to common shares | 15,854 | 16,265 | (411) | ||||||
Other comprehensive loss | (88,399) | (88,122) | (277) | ||||||
Balance at Dec. 31, 2015 | $ 658,425 | $ 0 | $ 1,015 | $ 181 | $ 975,419 | $ 16,172 | $ (334,542) | $ (181) | $ 361 |
Basis of financial statement pr
Basis of financial statement presentation | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of financial statement presentation | Basis of financial statement presentation Business In this report Belmond Ltd. is referred to as the “Company”, and the Company and its consolidated subsidiaries are referred to collectively as “Belmond”. On June 30, 2014, the Company changed its name from Orient-Express Hotels Ltd. to Belmond Ltd. following approval by shareholders at the 2014 annual general meeting held on that date. On July 28, 2014, the Company changed the ticker symbol of its class A common shares listed on the New York Stock Exchange from OEH to BEL. At December 31, 2015 , Belmond owned, invested in or managed 34 deluxe hotels and resort properties operating in the United States, Mexico, Caribbean, Europe, Southern Africa, South America, and Southeast Asia, one stand-alone restaurant in New York, six tourist trains in Europe, Southeast Asia and Peru, two river cruise businesses in Myanmar (Burma) and one canal boat business in France. Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and reflect the results of operations, financial position and cash flows of the Company and all its majority-owned subsidiaries and variable interest entities in which Belmond is the primary beneficiary. The consolidated financial statements have been prepared using the historical basis in the assets and liabilities and the historical results of operations directly attributable to Belmond, and all intercompany accounts and transactions between the Company and its subsidiaries have been eliminated. For entities where the Company does not have a controlling financial interest, the investments in those entities are accounted for using the equity or cost method, as appropriate. Reclassifications Discontinued operations and assets and liabilities held for sale were reclassified in the consolidated financial statements for all periods presented. See Note 4 for a summary of the results of discontinued operations and assets and liabilities held for sale. |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | Summary of significant accounting policies “FASB” means Financial Accounting Standards Board. “ASC” means the Accounting Standards Codification of the FASB and “ASU” means an Accounting Standards Update of the FASB. Cash and cash equivalents Cash and cash equivalents include all cash balances and highly-liquid investments having original maturities of three months or less. Restricted cash Restricted cash is the carrying amount of cash and cash equivalents which are bindingly restricted as to withdrawal or usage. These include deposits held as compensating balances against borrowing arrangements or under contracts entered into with others, but exclude compensating balance arrangements that do not legally restrict the use of cash amounts shown on the balance sheet. Concentration of credit risk Due to the nature of the leisure industry, concentration of credit risk with respect to trade receivables is limited. Belmond’s customer base consists of numerous customers across different geographic areas. Inventories Inventories include food, beverages, certain operating stocks and retail goods. Inventories are valued at the lower of cost or market value under the weighted average or first-in, first-out method. Assets held for sale and discontinued operations Assets held for sale represent assets of an operating entity that are to be disposed of, together as a group in a single transaction, and liabilities directly associated with the assets that will be transferred in the transaction. Belmond considers properties to be assets held for sale when management approves and commits to a formal plan actively to market a property for sale and Belmond has a signed sales contract and received a significant non-refundable deposit. Upon designation as an asset held for sale, Belmond records the carrying value of each property at the lower of its carrying value which includes allocable segment goodwill or its estimated fair value, less estimated costs to sell, and Belmond stops recording depreciation expense. Where there is no significant ongoing involvement, the gain from the sale is recorded at the date of sale. The results of operations of an entity that either has been disposed of or is classified as held for sale are reported in discontinued operations where the operations and cash flows of the entity will be eliminated from continuing operations as a result of the disposal transaction and Belmond will not have any significant continuing involvement in the operations of the entity after the disposal transaction. Property, plant and equipment Property, plant and equipment is stated at cost less accumulated depreciation. The cost of significant renewals and betterments is capitalized and depreciated, while expenditures for normal maintenance and repairs are expensed as incurred. Depreciation expense is computed using the straight-line method over the following estimated useful lives: Description Useful lives Buildings Up to 60 years and 10% residual value Trains Up to 75 years River cruise ship and canal boats 25 years Furniture, fixtures and equipment 3 to 25 years Equipment under capital lease and leasehold improvements Lesser of initial lease term or economic life Land and certain art and antiques are not depreciated. Impairment of long-lived assets Belmond management evaluates the carrying value of long-lived assets for impairment by comparing the expected undiscounted future cash flows of the assets to the net book value of the assets if certain trigger events occur. If the expected undiscounted future cash flows are less than the net book value of the assets, the excess of the net book value over the estimated fair value is charged to current earnings. Fair value is based upon discounted cash flows of the assets at a rate deemed reasonable for the type of asset and prevailing market conditions, sales of similar assets, appraisals and, if appropriate, current estimated net sales proceeds from pending offers. Belmond evaluates the carrying value of long-lived assets based on its plans, at the time, for those assets and such qualitative factors as future development in the surrounding area, status of expected local competition and projected incremental income from renovations. Changes to Belmond’s plans, including a decision to dispose of or change the intended use of an asset, can have a material impact on the carrying value of the asset. Investments Investments include equity interests in and advances to unconsolidated companies and are accounted for under the equity method of accounting when Belmond has a 20% to 50% ownership interest or exercises significant influence over the investee. Under the equity method, the investment in the equity method investee or joint venture is initially recognized in the consolidated balance sheet at cost and adjusted thereafter to recognize Belmond’s share of net earnings or losses and other comprehensive income or loss of the investee. Belmond continues to report losses up to its investment carrying amount, including any additional financial support made or committed to by Belmond. Belmond’s share of earnings or losses is included in the determination of net earnings, and net investment in investees and joint ventures is included within investments in unconsolidated companies in the consolidated balance sheets. Investments accounted for using the equity method are considered impaired when a loss in the value of the equity method investment is other than temporary. Evidence of a loss in value might include, but would not necessarily be limited to, absence of an ability to recover the carrying amount of the investment or inability of the investee to sustain its earnings capacity that would justify the carrying amount of the investment. If Belmond determines that the decline in value of its investment is other than temporary, the carrying amount of the investment is written down to its fair value through earnings. Goodwill Goodwill is not amortized but is tested for impairment at least annually or more frequently if events or circumstances indicate that it is more likely than not that the fair value of a reporting unit is less than its carrying value. Belmond's annual goodwill impairment testing date is October 1. To test goodwill for impairment, Belmond first compares the carrying value of each reporting unit to its fair value to determine if an impairment is indicated. The fair value of reporting units is determined using internally developed discounted future cash flow models, which incorporate third party appraisals and industry/market data (to the extent available). If an impairment is indicated, Belmond compares the implied fair value of the reporting unit's goodwill to its carrying amount. An impairment loss is measured as the excess of the carrying value of a reporting unit's goodwill over its implied fair value. When determining the fair value of a reporting unit, Belmond is required to make significant judgments that Belmond believes are reasonable and supportable considering all available internal and external evidence at the time. However, these estimates and assumptions are, by their nature, highly judgmental. Fair value determinations are sensitive to changes in the underlying assumptions and factors including those relating to estimating future operating cash flows to be generated from the reporting unit which are dependent upon internal forecasts and projections developed as part of Belmond’s routine, long-term planning process, available industry/market data (to the extent available), Belmond’s strategic plans, estimates of long-term growth rates taking into account Belmond’s assessment of the current economic environment and the timing and degree of any economic recovery, estimation of the useful life over which the cash flows will occur, and market participant assumptions. The assumptions with the most significant impact to the fair value of the reporting unit are those related to future operating cash flows which are forecast for a five -year period from management’s budget and planning process, the terminal value which is included for the period beyond five years from the balance sheet date based on the estimated cash flow in the fifth year and a terminal growth rate ranging from 2.7% to 7.4% ( December 31, 2014 - 3.2% to 7.8% ), and pre-tax discount rates which for the year ended December 31, 2015 range from 8.3% to 16.9% ( December 31, 2014 - 9.2% to 17.3% ). Examples of events or circumstances that could reasonably be expected to negatively affect the underlying key assumptions and ultimately impact the estimated fair values of Belmond’s reporting units may include such items as (i) a prolonged weakness in the general economic conditions in which the reporting units operate and therefore negatively impacting occupancy and room rates, (ii) an economic recovery that significantly differs from Belmond’s assumptions in timing and/or degree, (iii) volatility in the equity and debt markets which could result in a higher discount rate, (iv) shifts or changes in future travel patterns from the Belmond’s significant demographic markets that have not been anticipated, (v) changes in competitive supply, (vi) political and security instability in countries where Belmond operates and (vii) deterioration of local economies due to the uncertainty over currencies or currency unions and other factors which could lead to changes in projected cash flows of Belmond’s properties as customers reduce their discretionary spending. If the assumptions used in the impairment analysis are not met or materially change, Belmond may be required to recognize additional goodwill impairment losses which may be material to the financial statements. Other intangible assets Trade names have an indefinite life and therefore are not amortized, but are assessed for impairment annually or when events indicate that impairment may have occurred. Other intangible assets with indefinite useful lives are tested for impairment annually or more frequently if events or changes in circumstances indicate that the asset may be impaired. Belmond uses internally developed discounted future cash flow models in determining the fair value of indefinite-lived intangible assets. Favorable lease intangible assets are amortized over the terms of the leases, which are between 19 and 60 years . Internet sites are amortized over a period of five to ten years . Variable interest entities Belmond analyzes its variable interests, including loans, guarantees and equity investments, to determine if an entity is a variable interest entity (“VIE”). In that assessment, Belmond's analysis includes both quantitative and qualitative considerations. Belmond bases its quantitative analysis on the forecast cash flows of the entity, and its qualitative analysis on a review of the design of the entity, organizational structure including decision-making ability, and relevant financial agreements. Belmond also uses its quantitative and qualitative analysis to determine if Belmond is the primary beneficiary and would therefore be required to consolidate the VIE. Fair value measurements Assets and liabilities carried at fair value are required to be classified and disclosed in one of three categories: Level 1 — Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date, Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, and Level 3 — unobservable inputs for the asset or liability. Belmond reviews its fair value hierarchy classifications quarterly. Changes in significant observable valuation inputs identified during these reviews may trigger reclassification of fair value hierarchy levels of financial assets and liabilities. These reclassifications are reported as transfers at their fair values at the beginning of the period in which the change occurs and as transfers out at their fair values at the end of the period. Derivatives are recorded in the consolidated balance sheets at fair value. The fair value of Belmond’s derivative financial instruments is computed based on an income approach using appropriate valuation techniques including discounting future cash flows and other methods that are consistent with accepted economic methodologies for pricing financial instruments. The valuation process for the derivatives uses observable market data provided by third-party sources. Interest rate swaps are valued by using yield curves derived from observable interest rates to project future swap cash flows and then these cash flows are discounted back to present values. Interest rate caps are valued using a model that projects the probability of various levels of interest rates occurring in the future using observable volatilities. In the determination of fair value of derivative instruments, a credit valuation adjustment is applied to Belmond’s derivative exposures to take into account the risk of the counterparty defaulting with the derivative in an asset position and, when the derivative is in a liability position, the risk that Belmond may default. The credit valuation adjustment is calculated by determining the total expected exposure of the derivatives (incorporating both the current and potential future exposure) and then applying each counterparty’s credit spread to the applicable exposure. For interest rate swaps, Belmond’s own credit spread is applied to the counterparty’s exposure to Belmond and the counterparties credit spread is applied to Belmond’s exposure to the counterparty, and then the net credit valuation adjustment is reflected in the determination of the fair value of the derivative instrument. The credit spreads used as inputs in the fair value calculations represent implied credit default swaps obtained from a third-party credit data provider. Some of the inputs into the credit valuation adjustment are not observable and, therefore, they are considered to be Level 3 inputs. Where the credit valuation adjustment exceeds 20% of the fair value of the derivatives, Level 3 inputs are assumed to have a significant impact on the fair value of the derivatives in their entirety and the derivative is classified as Level 3. Derivative financial instruments Derivative instruments are recorded on the consolidated balance sheets at fair value. The effective portion of changes in the fair value of derivatives designated and qualifying as cash flow hedges is recorded in other comprehensive income/(loss) and is subsequently reclassified into earnings in the period that the hedged forecast transaction affects earnings. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. If a derivative instrument is not designated as a hedge for accounting purposes, the fluctuations in the fair value of the derivative are recorded in earnings. Belmond management formally documents all relationships between hedging instruments and hedged items, as well as its risk management objectives and strategies for undertaking various hedge transactions. Belmond links all hedges that are designated as fair value hedges to specific assets or liabilities on the consolidated balance sheets or to specific firm commitments. Belmond links all hedges that are designated as cash flow hedges to forecasted transactions or to floating rate liabilities on the balance sheets. Belmond management also assesses, both at the inception of the hedge and on an ongoing basis, whether the derivatives that are designated in hedging relationships are highly effective in offsetting changes in fair values or cash flows of hedged items. Belmond discontinues hedge accounting prospectively when the derivative is not highly effective as a hedge, the underlying hedged transaction is no longer probable, or the hedging instrument expires, is terminated, or exercised. Belmond is exposed to interest rate risk on its floating rate debt and management uses derivatives to manage the impact of interest rate changes on earnings and cash flows. Belmond’s objective in using interest rate derivatives is to add certainty and stability to its interest expense. To accomplish this objective, Belmond primarily uses interest rate swaps as part of its interest rate risk management strategy. These swaps effectively convert the floating rate interest payments on a portion of the outstanding debt into fixed payments. Hedges of net investments in foreign operations are accounted for similarly to cash flow hedges. Any gain or loss on the hedging instrument relating to the effective portion of the hedge is recorded in other comprehensive income/(loss) within foreign currency translation adjustment. The gain or loss relating to the ineffective portion will be recognized immediately in earnings within foreign currency, net. Gains and losses deferred in accumulated other comprehensive income/(loss) are recognized in earnings upon disposal of the foreign operation. Belmond links all hedges that are designated as net investment hedges to specifically identified net investments in foreign subsidiaries. Belmond has net assets denominated in a variety of currencies. It hedges the U.S. dollar value of euro net assets by using net investment hedges. Pensions Belmond’s primary defined benefit pension plan is accounted for using actuarial valuations. Net funded status is recognized on the consolidated balance sheets and any unrecognized prior service costs or actuarial gains and losses are reported as a component of other comprehensive income/(loss) in shareholders’ equity. In determining the expected long-term rate of return on assets, management has reviewed anticipated future long-term performance of individual asset classes and the appropriate asset allocation strategy given the anticipated requirements of the plan to determine the average rate of earnings expected on the funds invested. The projected returns are based on broad equity and bond indices, including fixed interest rate gilts (United Kingdom Government issued securities) of long-term duration since the plan operates in the U.K. Management continues to monitor and evaluate the level of pension contributions based on various factors that include investment performance, actuarial valuation and tax deductibility. Share-based compensation Equity-settled transactions The cost of equity-settled transactions with employees is measured by reference to the fair value at the date on which equity instruments are granted and is recognized as an expense over the vesting period, which ends on the date on which the relevant employees become fully entitled to the award. Estimates of the grant date fair value of share options and the fair value of deferred shares and restricted shares without performance criteria on the grant date were made using the Black-Scholes option pricing model, and estimates of the grant date fair value of deferred shares with performance criteria and market conditions were made using the Monte Carlo valuation model. For awards with market conditions, the conditions are incorporated into the fair value measurement and the compensation value is not adjusted if the conditions are not met. For awards with performance conditions, compensation expense is recognized when it becomes probable that the performance criteria specified in the awards will be achieved and, accordingly, the compensation value is adjusted following the changes in the estimates of shares likely to vest based on the performance criteria. Expected volatilities are based on historical volatility of the Company’s class A common share price and other factors. The risk-free rate for periods within the expected life is based on the U.S. Treasury yield curve in effect at the time of grant. The expected life represents the period that share-based awards are expected to be outstanding and was determined using historical experience, giving consideration to the contractual terms of the share-based awards and vesting schedules. At each balance sheet date before the share-based award vests, the cumulative expense is calculated, representing the extent to which the vesting period has expired and management’s best estimate of the achievement or otherwise of non-market conditions and the number of equity instruments that will ultimately vest or, in the case of an instrument subject to a market condition, be treated as vesting as described above. The movement in cumulative expense since the previous balance sheet date is recognized in the consolidated statements of operations, with a corresponding entry in equity. Previously recognized compensation cost is not reversed if an employee share option for which the requisite service has been rendered expires unexercised (or unconverted). If stock options are forfeited, then the compensation expense accrued is reversed. Belmond does not estimate a future forfeitures rate and does not incorporate it into the grant value on issue of the awards on the grounds of materiality. The forfeitures are recorded on date of occurrence. Estimates Belmond bases its estimates on historical experience and also on assumptions that Belmond believes are reasonable based on the relevant facts and circumstances of the estimate. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates include, among others, the allowance for doubtful accounts, fair value of derivative instruments, estimates for determining the fair value of goodwill, long-lived and other intangible asset impairment, share-based compensation, depreciation and amortization, carrying value of assets including intangible assets, employee benefits, taxes, and contingencies. Actual results may differ from those estimates. Revenue recognition Hotel and restaurant revenue is recognized when the rooms are occupied and the services are performed. Train and cruise revenue is recognized upon commencement of the journey. Revenue under management contracts is recognized based upon on an agreed base fee and additional revenue is recognized on the attainment of certain financial results, primarily revenue and operating earnings, in each contract as defined. Deferred revenue consisting of deposits paid in advance is recognized as revenue when the services are performed for hotels and restaurants and upon commencement of train and cruise journeys. Marketing costs Marketing costs are expensed as incurred, and are reported in selling, general and administrative expenses. Marketing costs include costs of advertising and other marketing activities. These costs were $40,381,000 in 2015 ( 2014 - $42,251,000 ; 2013 - $40,612,000 ). Interest expense Capitalized interest during the construction of qualifying assets is capitalized and included in the cost of the asset. Direct and incremental costs incurred in obtaining loans or in connection with the issuance of long-term debt are deferred and amortized to interest expense over the term of the related debt. Foreign currency The functional currency for each of Belmond’s operating subsidiaries is the applicable local currency, except for properties in French West Indies, Peru, Cambodia, Myanmar and one property in Mexico, where the functional currency is U.S. dollars. For foreign subsidiaries with a functional currency other than the U.S. dollar, income and expenses are translated into U.S. dollars, the reporting currency of Belmond, at the average rates of exchange prevailing during the year. The assets and liabilities are translated into U.S. dollars at the rates of exchange on the balance sheet date and the related translation adjustments are included in other comprehensive income/(loss). Translation adjustments arising from intercompany financing of a subsidiary that is considered to be long-term in nature are also recorded in other comprehensive income/(loss) as they are considered part of the net investment in the subsidiary. Transactions in currencies other than an entity’s functional currency (foreign currencies) are recorded at the exchange rates prevailing on the dates of the transactions. All monetary assets and liabilities denominated in foreign currencies are translated at the exchange rates prevailing at the reporting date. Non-monetary items carried at historical cost are translated at the exchange rate prevailing on the date of transaction. Exchange differences arising from changes in exchange rates are recognized in earnings as they occur. Prior to 2014, Belmond’s Brazilian operations used the U.S. dollar as their functional currency. Effective January 1, 2014, Belmond changed the functional currency to the Brazilian real. Belmond believes that the growth in the Brazilian operations’ real-denominated revenues and expenses indicated a change in the economic facts and circumstances that justified the change in the functional currency. A foreign currency translation adjustment loss of $49,356,000 arising on the remeasurement of non-monetary assets and liabilities of Belmond’s Brazilian operations, of which the majority related to property, plant and equipment, is included in other comprehensive losses for the year ended December 31, 2014. Income taxes Belmond accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of transactions and events that have been recognized in the financial statements but have not yet been reflected in Belmond’s income tax returns, or vice versa. Deferred income taxes result from temporary differences between the carrying value of assets and liabilities recognized for financial reporting purposes and their respective tax bases. Deferred taxes are measured at enacted statutory rates and are adjusted in the period enacted rates change. Prior to 2015, classification of deferred tax assets and liabilities corresponded with the classification of the underlying assets and liabilities giving rise to the temporary differences or the period of expected reversal, as applicable. In 2015 Belmond adopted new guidance whereby all deferred tax assets and liabilities are classified as non-current. A valuation allowance is established, when necessary, to reduce deferred tax assets to the amount that is more likely than not to be realized based on available evidence. In evaluating Belmond’s ability to recover deferred tax assets within the jurisdiction in which they arise, management considers all available evidence, both positive and negative, which includes reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent financial operations. Management reassesses the need for valuation allowances at each reporting date. Any increase or decrease in a valuation allowance will increase or reduce respectively the income tax expense in the period in which there has been a change in judgment. Income tax positions must meet a more-likely-than-not threshold to be recognized in the financial statements. Management recognizes tax liabilities in accordance with ASC 740 applicable to uncertain tax positions, and adjusts these liabilities when judgment changes as a result of the evaluation of new information not previously available. Due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from Belmond’s estimate of the tax liabilities. These differences will be reflected as increases or decreases to income tax expense in the period in which the new information becomes available, actual tax liabilities are determined or the statute of limitations has expired. Belmond recognizes interest and penalties related to unrecognized tax benefits within the income tax expense line in the consolidated statements of operations. Liabilities for uncertain tax benefits are included in the consolidated balance sheets and classified as current or non-current liabilities depending on the expected timing of payment. Earnings from unconsolidated companies Earnings from unconsolidated companies include Belmond’s share of the net earnings of its equity investments. Earnings per share Basic earnings per share are based upon net earnings/(losses) attributable to Belmond divided by the weighted average number of class A and B common shares outstanding for the period. Diluted earnings/(losses) per share reflect the increase in shares using the treasury stock method to reflect the impact of an equivalent number of shares as if share options were exercised and share-based awards were converted into common shares. Potentially dilutive shares are excluded when the effect would be to increase diluted earnings per share or reduce diluted losses per share. Accounting pronouncements adopted during the year In April 2014, the FASB issued guidance that amends the definition of a discontinued operation and requires entities to provide additional disclosures about disposal transactions. The revised guidance changes how entities identify and disclose information about disposal transactions. The guidance is effective prospectively for all disposals (except disposals classified as held for sale before the adoption date) or components initially classified as held for sale in periods beginning on or after December 15, 2014, with early adoption permitted. The adoption of this guidance did not have a material effect on Belmond's consolidated financial position, results of operations and cash flows. In April 2015, the FASB issued new guidance which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. The standard does not otherwise affect the recognition and measurement of debt issuance costs, which would continue to be calculated using the interest method and be reported as interest expense. Additionally, the other areas of U.S. GAAP that prescribe the accounting treatment for third-party debt issuance costs will not be affected. The guidance is effective for annual and interim periods beginning after December 15, 2015, with early adoption permitted for financial statements that have not been previously issued. Belmond has adopted this guidance as of December 31, 2015 and debt issuance costs previously included in Other assets on the consolidated balance sheets have been reclassified accordingly. Debt issuance costs included in Long-term debt on the consolidated balance sheets were $11,701,000 at December 31, 2015 ( December 31, 2014 - $13,095,000 ). In November 2015, the FASB issued new guidance which requires entities to present deferred tax assets ("DTAs") and deferred tax liabilities ("DTLs") as non-current in a classified balance sheet, in a simplification of the current guidance which requires entities to separately present DTAs and DTLs as current or non-current in a classified balance sheet. Netting of DTAs and DTLs by tax jurisdiction is still required under the new guidance. The guidance is effective for annual and interim periods beginning after December 15, 2016, with early adoption permitted. The amendments may be applied either prospectively or retrospectively. Belmond has adopted this guidance as of December 31, 2015. Prior periods were not retrospectively adjusted. Accounting pronouncements to be adopted In May 2014, the FASB issued new guidance which is intended to improve the comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets. The guidance supersedes existing revenue recognition guidance and requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Entities will have the option of using either a full retrospective approach or a modified approach to adopt the new guidance. The guidance was originally effective for annual and interim periods beginning after December 15, 2016, however in July 2015 the FASB confirmed that the effective date would be deferred by one year, to apply to annual and interim periods beginning after December 15, 2017. Early adoption is permitted for annual reporting periods beginning after D |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings per share | Earnings per share The calculation of basic and diluted earnings per share including a reconciliation of the numerator and denominator is as follows: Year ended December 31, 2015 2014 2013 Numerator ($'000) Net earnings/(losses) from continuing operations 17,388 2,047 (26,178 ) Net earnings/(losses) from discontinued operations (1,534 ) (3,782 ) (5,318 ) Net losses/(earnings) attributable to non-controlling interests 411 (145 ) (63 ) Net earnings/(losses) attributable to Belmond Ltd. 16,265 (1,880 ) (31,559 ) Denominator (shares '000) Basic weighted average shares outstanding 103,163 103,837 103,226 Effect of dilution 1,193 2,291 — Diluted weighted average shares outstanding 104,356 106,128 103,226 $ $ $ Basic earnings per share Net earnings/(losses) from continuing operations 0.169 0.020 (0.254 ) Net earnings/(losses) from discontinued operations (0.015 ) (0.036 ) (0.052 ) Net losses/(earnings) attributable to non-controlling interests 0.004 (0.001 ) (0.001 ) Net earnings/(losses) attributable to Belmond Ltd. 0.158 (0.017 ) (0.307 ) Diluted earnings per share Net earnings/(losses) from continuing operations 0.167 0.019 (0.254 ) Net earnings/(losses) from discontinued operations (0.015 ) (0.036 ) (0.052 ) Net losses/(earnings) attributable to non-controlling interests 0.004 (0.001 ) (0.001 ) Net earnings/(losses) attributable to Belmond Ltd. 0.156 (0.018 ) (0.307 ) For the year ended December 31, 2013 , all share options and share-based awards were excluded from the calculation of the diluted weighted average number of shares because Belmond incurred a net loss from continuing operations in that annual period and the effect of their inclusion would be anti-dilutive. The total number of share options and share-based awards excluded from computing diluted earnings per share were as follows: Year ended December 31, 2015 2014 2013 Share options 1,441,972 810,500 3,058,300 Share-based awards — — 1,481,827 Total 1,441,972 810,500 4,540,127 The number of share options and share-based awards unexercised at December 31, 2015 was 3,950,794 ( 2014 - 5,157,292 ; 2013 - 4,540,127 ). |
Assets held for sale and discon
Assets held for sale and discontinued operations | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets held for sale and discontinued operations | Assets held for sale and discontinued operations At December 31, 2015 and 2014 , no properties were classified as held for sale. For the years ended December 31, 2015 , 2014 and 2013 , the results of operations of Ubud Hanging Gardens, Bali, Indonesia and the Porto Cupecoy development on the Dutch side of St Martin, French West Indies have been presented as discontinued operations. During the year ended December 31, 2014, a sale was completed on one condominium relating to Porto Cupecoy which was excluded from the January 2013 disposal of the Porto Cupecoy development on the Dutch side of St Martin as it was already under a separate sales contract at the time. During the year ended December 31, 2014, Inn at Perry Cabin by Belmond, St Michaels, Maryland was sold. Due to Belmond's continuing involvement in managing the hotel, its results are presented within continuing operations. During the year ended December 31, 2013, Porto Cupecoy was sold. (a) Properties sold: Inn at Perry Cabin by Belmond and Porto Cupecoy On March 21, 2014, Belmond completed the sale of the property and operations of Inn at Perry Cabin by Belmond for consideration of $39,700,000 , of which $25,680,000 was paid in cash, $11,020,000 was settled directly with the lender to repay the debt facility secured by the property. In addition, $3,000,000 was a key money contribution from Belmond to the buyer to be used for agreed capital enhancements. Belmond will continue to operate the hotel for the new owner under a management agreement with a ten -year term that permits termination on the fifth anniversary of the agreement. The disposal resulted in a gain of $6,704,000 , of which $3,704,000 was recognized on completion on March 21, 2014 and $3,000,000 was deferred to be recognized over the initial period of the management agreement. The gain on sale of $3,704,000 recognized on March 21, 2014 and the subsequent release of the deferred gain is reported within gain on disposal of property, plant and equipment and equity method investments in the statements of consolidated operations. On January 31, 2013 , Belmond completed the sale of the property and operations of Porto Cupecoy for cash consideration of $19,000,000 . The property was a part of Belmond’s former real estate segment. The disposal resulted in a gain of $439,000 , which is reported within net losses from discontinued operations, net of tax. The following is a summary of net assets sold and the gain recorded on sale for Inn at Perry Cabin by Belmond and Porto Cupecoy: Year ended December 31, 2014 2013 Inn at Perry Cabin by Belmond Porto Cupecoy March 21, January 31, $'000 $'000 Property, plant & equipment 32,293 38 Real estate assets — 18,512 Net working capital (deficit)/surplus (820 ) — Net assets 31,473 18,550 Transfer of foreign currency translation loss/(gain) — — 31,473 18,550 Consideration: Cash 25,680 19,000 Reduction in debt facility on sale of hotel 11,020 — Key money retained by buyer 3,000 — Less: Working capital adjustment (1,130 ) (11 ) Less: Costs to sell (393 ) — 38,177 18,989 Gain on sale 6,704 439 (b) Results of discontinued operations Belmond had been operating the hotel Ubud Hanging Gardens under a long-term lease arrangement with a third-party owner. The existing lease arrangement continues to 2030. Following the owner's unannounced dispossession of Belmond from the hotel in November 2013, however, Belmond was unable to continue to operate the hotel. Belmond believed that the owner's actions were unlawful and constituted a wrongful dispossession and has pursued its legal remedies under the lease. See Note 19. As Belmond is unable to operate Ubud Hanging Gardens for the foreseeable future, the hotel has been presented as a discontinued operation for all periods shown. The assets and liabilities of the hotel have not been classified as held for sale, as the hotel has not been disposed of through a sale transaction. The Porto Cupecoy development was sold in January 2013, with the final unit disposed of in September 2014. Revenue and residual costs relating to the sale of Porto Cupecoy are presented within discontinued operations for all periods shown. Summarized results of the properties classified as discontinued operations for the years ended December 31, 2015 , 2014 and 2013 are as follows: Year ended December 31, 2015 Ubud Hanging Gardens Porto Cupecoy Total $'000 $'000 $'000 Revenue — — — Losses before tax, gain on sale and impairment (636 ) (898 ) (1,534 ) Losses before tax (636 ) (898 ) (1,534 ) Net losses from discontinued operations (636 ) (898 ) (1,534 ) Year ended December 31, 2014 Ubud Hanging Gardens Porto Cupecoy Total $'000 $'000 $'000 Revenue — 600 600 Losses before tax, gain on sale and impairment (1,486 ) (1,583 ) (3,069 ) Losses before tax (1,486 ) (1,583 ) (3,069 ) Tax provision (713 ) — (713 ) Net losses from discontinued operations (2,199 ) (1,583 ) (3,782 ) Year ended December 31, 2013 Ubud Hanging Gardens Porto Cupecoy The Westcliff Keswick Hall Total $'000 $'000 $'000 $'000 $'000 Revenue 5,124 1,932 — — 7,056 Earnings/(losses) before tax, gain on sale and impairment 591 (3,228 ) — — (2,637 ) Impairment (7,031 ) — — — (7,031 ) Gain on sale — 439 — — 439 Losses before tax (6,440 ) (2,789 ) — — (9,229 ) Tax benefit 1,838 — 1,425 648 3,911 Net (losses)/earnings from discontinued operations (4,602 ) (2,789 ) 1,425 648 (5,318 ) The results of discontinued operations for the years ended December 31, 2015 and 2014 include legal fees of $636,000 and $1,486,000 , respectively, in relation to Ubud Hanging Gardens, as Belmond is pursuing legal remedies following the owner's unannounced dispossession of Belmond in November 2013. As Belmond is unable to operate the hotel for the foreseeable future, a non-cash impairment charge of $7,031,000 was identified and recorded in the year ended December 31, 2013. The carrying values of long-lived assets were written down to a fair value of $Nil . See Note 19. The results of discontinued operations for the year ended December 31, 2013 include tax credits of $1,425,000 in relation to The Westcliff and $648,000 in relation to Keswick Hall, which were sold in December and January 2012, respectively. These tax credits arose following the submission of prior year tax returns in the current period. |
Variable interest entities
Variable interest entities | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable interest entities | Variable interest entities (a) VIEs of which Belmond is the primary beneficiary Belmond holds a 19.9% equity investment in Charleston Center LLC, owner of Belmond Charleston Place, Charleston, South Carolina. Belmond has also made a number of loans to the hotel. Belmond concluded that Charleston Center LLC is a VIE because the total equity at risk is insufficient for the entity to fund its operations without additional subordinated financial support, the majority of which has been provided by Belmond. Belmond is the primary beneficiary of this VIE because it is expected to absorb a majority of the VIE’s expected losses and residual gains through the subordinated financial support it has provided, and has the power to direct the activities that impact the VIE’s performance, based on the current organizational structure. Assets of Charleston Center LLC that can only be used to settle obligations of the consolidated VIEs and liabilities of Charleston Center LLC whose creditors have no recourse to Belmond Ltd are presented as a footnote to the consolidated balance sheets. The third-party debt of Charleston Center LLC is secured by its net assets and is non-recourse to its members, including Belmond. The hotel's separate assets are not available to pay the debts of Belmond and the hotel's separate liabilities do not constitute obligations of Belmond. The assets of Charleston Center LLC that can only be used to settle obligations of Charleston Center LLC totaled $210,652,000 at December 31, 2015 ( December 31, 2014 - $206,817,000 ) and exclude goodwill of $40,395,000 ( December 31, 2014 - $40,395,000 ). The liabilities of Charleston Center LLC for which creditors do not have recourse to the general credit of Belmond totaled $122,386,000 ( December 31, 2014 - $121,136,000 ). All deferred taxes attributable to Belmond’s investment in the LLC arise at the investor level and are therefore not included in the footnote to the consolidated balance sheets. (b) VIEs of which Belmond is not the primary beneficiary Belmond holds a 25% equity investment in Eastern and Oriental Express Ltd., which operates the Eastern & Oriental Express luxury tourist train in Southeast Asia. Belmond concluded that the Eastern & Oriental Express joint venture is a variable interest entity because the total equity at risk is insufficient for it to fund its operations without additional subordinated financial support. The joint venture does not have a primary beneficiary because no one party has the power to direct the activities that most significantly impact the economic performance of the entity. The joint venture is accounted for under the equity method of accounting and included in earnings/(losses) before income taxes and earnings from unconsolidated companies in the statements of consolidated operations. The carrying amounts and maximum exposure to loss as a result of Belmond's involvement with its Eastern & Oriental Express joint venture are as follows: Carrying amounts Maximum exposure 2015 2014 2015 2014 December 31, $’000 $’000 $’000 $’000 Investment 2,972 3,251 2,972 3,251 Due from unconsolidated company 4,872 5,227 4,872 5,227 Guarantees — — — — Contingent guarantees — — — — Total 7,844 8,478 7,844 8,478 (c) Former VIEs Belmond holds a 50% equity investment in its rail joint venture in Peru which operates the infrastructure, rolling stock, stations and services on a portion of the state-owned railways in Peru. Belmond previously concluded that the PeruRail joint venture was a variable interest entity because the total equity at risk was insufficient for it to fund its operations without additional subordinated financial support. The joint venture is under joint control as all significant budgetary and capital decisions require a majority of approval of the joint venture's board of directors, on which board Belmond holds two of four seats with the other two seats representing unaffiliated local Peruvian investors. Previously, Belmond had guaranteed certain debt obligations of the joint venture. The guaranteed debt was repaid with non-guaranteed debt in the year ended December 31, 2015. Belmond concluded that this constituted a change in the design of the entity and reconsidered its initial determination of the entity’s VIE status. Belmond concluded that the joint venture now qualifies for the scope exceptions contained within U.S. GAAP to be excluded from consideration under the VIE guidance. The joint venture is accounted for under the equity method of accounting and included in earnings/(losses) before income taxes and earnings from unconsolidated companies in the statements of consolidated operations. |
Investments in unconsolidated c
Investments in unconsolidated companies | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in unconsolidated companies | Investments in unconsolidated companies Investments in unconsolidated companies represent equity interests of 50% or less and in which Belmond exerts significant influence, but does not have effective control of these unconsolidated companies and, therefore, accounts for these investments using the equity method. As at December 31, 2015 , these investments include the 50% ownership in rail and hotel joint venture operations in Peru, the 25% ownership in Eastern and Oriental Express Ltd, and the Buzios land joint venture which is 50% owned and further described below. In June 2007, Belmond acquired 50% of a company holding real estate in Buzios, Brazil for a cash consideration of $5,000,000 . Belmond planned to build a hotel and villas on the acquired land and to purchase the remaining share of the company when the building permits were obtained from the local authorities. In February 2009, the Municipality of Buzios commenced a process for the compulsory purchase of the land by the municipality in exchange for a payment of fair compensation to the owners. In April 2011, the State of Rio de Janeiro declared the land an area of public interest, with the intention that it will become part of an environmental park that is being created in the area. The compulsory purchase of the land is therefore expected to be carried out by the State of Rio de Janeiro unless it fails to take action by April 18, 2016 at which point the land is expected to revert unencumbered to the real estate holding company. Belmond expects to recover its investment in the project either through negotiations with or litigation against the State of Rio de Janeiro or through a reversion of the land due to the failure of the State of Rio de Janeiro to act by April 18, 2016. On May 21, 2015, Belmond sold its 50% ownership in Hotel Ritz by Belmond, Madrid, Spain. Belmond and its joint venture partner sold the shares in the entity that owns the hotel for gross proceeds of €130,000,000 ( $144,529,000 at date of sale). As a condition of the sale, Belmond’s management contract with Hotel Ritz by Belmond was terminated, resulting in the receipt of a termination fee of $2,292,000 . The following table shows the net proceeds to Belmond and a summary of net assets sold, resulting in a gain of $19,676,000 that is reported within gain on disposal of property, plant and equipment and equity method investments in the statements of consolidated operations: Hotel Ritz by Belmond May 21, $'000 Receivables due from unconsolidated companies 29,679 Investments in unconsolidated companies — Net assets sold 29,679 Transfer of foreign currency translation gain (5,613 ) 24,066 Consideration: Cash 42,197 Less: Costs to sell (747 ) Plus: Management contract termination fee 2,292 43,742 Gain on sale 19,676 Summarized financial data for Belmond’s unconsolidated companies are as follows: 2015 2014 December 31, $’000 $’000 Current assets 59,372 52,289 Property, plant and equipment, net of accumulated depreciation 207,469 340,546 Other non-current assets 30,643 36,249 Non-current assets 238,112 376,795 Total assets 297,484 429,084 Current liabilities, including $19,171 and $96,824 current portion of third-party debt 86,092 157,273 Long-term debt 48,681 25,346 Other non-current liabilities 26,540 125,210 Non-current liabilities 75,221 150,556 Total shareholders’ equity 136,171 121,255 Total liabilities and shareholders’ equity 297,484 429,084 2015 2014 2013 Year ended December 31, $’000 $’000 $’000 Revenue 160,614 172,793 168,839 Gross profit 1 104,708 105,333 91,357 Net earnings 2 17,723 19,622 13,549 1 Gross profit is defined as revenues less cost of services of the unconsolidated companies. 2 There were no discontinued operations, extraordinary items or cumulative effects of a change in an accounting principle in the unconsolidated companies. Included in unconsolidated companies are Belmond’s hotel and rail joint ventures in Peru, under which Belmond and the other 50% participant must contribute equally additional equity needed for the businesses. If the other participant does not meet this obligation, Belmond has the right to dilute the other participant and obtain a majority equity interest in the affected joint venture company. Belmond also has rights to purchase the other participant’s interests, which rights are exercisable in limited circumstances such as the other participant’s bankruptcy. There are contingent guarantees to unconsolidated companies which are not recognized in the consolidated financial statements. The contingent guarantees for each Peruvian joint venture may only be enforced in the event there is a change in control of the relevant joint venture, which would occur only if Belmond’s ownership of the economic and voting interests in the joint venture falls below 50% , an event which has not occurred. As at December 31, 2015 , Belmond does not expect that it will be required to fund these guarantees relating to these joint venture companies. Belmond has contingently guaranteed, through 2020 , $19,500,000 of debt obligations of the joint venture in Peru that operates four hotels and has contingently guaranteed $1,300,000 of the debt obligations of the rail joint venture in Peru through May 2016 . Belmond has also contingently guaranteed the rail joint venture’s obligations relating to the performance of its governmental rail concessions, currently in the amount of $6,676,000 , through May 2016 . At December 31, 2014 , Belmond guaranteed $4,124,000 of the debt obligations of the rail joint venture in Peru. The guaranteed debt was repaid by the joint venture in the year ended December 31, 2015 . See Note 5. |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, plant and equipment | Property, plant and equipment The major classes of property, plant and equipment are as follows: 2015 2014 December 31, $’000 $’000 Land and buildings 994,382 1,069,846 Machinery and equipment 182,510 194,155 Furniture, fixtures and equipment 225,943 224,270 River cruise ship and canal boats 18,773 18,924 1,421,608 1,507,195 Less: Accumulated depreciation (343,247 ) (338,438 ) Total property, plant and equipment, net of accumulated depreciation 1,078,361 1,168,757 The depreciation charge on property, plant and equipment of continuing operations for the year ended December 31, 2015 was $49,982,000 ( 2014 - $51,629,000 ; 2013 - $48,346,000 ). The table above includes the property, plant and equipment of Charleston Center LLC, a consolidated VIE, of $201,342,000 ( 2014 - $197,608,000 ). See Note 5. For the year ended December 31, 2015 , Belmond capitalized interest in the amount of $Nil ( 2014 - Nil ; 2013 - $1,088,000 ). All amounts capitalized were recorded in property, plant and equipment. In the three months ended December 31, 2015 , Belmond considered whether the decline in performance of Belmond Northern Belle caused by a reduction in passenger numbers sourced mainly from regional markets in the U.K. indicated that the carrying amount of Belmond Northern Belle's fixed assets may not be recoverable. Under the first step of the fixed assets impairment test, the sum of the undiscounted cash flows expected to result from the operations of Belmond Northern Belle was approximately 10% in excess of its carrying value. Factors that could reasonably be expected to potentially have an adverse effect on the sum of the undiscounted cash flows of the reporting unit include the future operating projections of the train, particularly passenger numbers and ticket prices, and any deterioration in the U.K. regional economy. In the year ended December 31, 2014, Belmond identified and recorded a non-cash property, plant and equipment impairment charge of $1,211,000 relating to the write-down to fair value of train carriages of Belmond's former Great South Pacific Express train, which are held in Australia and not in service. In the year ended December 31, 2013, Belmond identified and recorded a non-cash property, plant and equipment impairment charge of $1,029,000 in respect of Ubud Hanging Gardens. This impairment was recorded in discontinued operations, as the results of operations of this hotel have been presented as discontinued operations for the years ended December 31, 2015 , 2014 and 2013 . Its assets and liabilities, however, are not accounted for as held for sale at December 31, 2015 and 2014 . See Note 4. Also in the year ended December 31, 2013, Belmond identified and recorded a non-cash property, plant and equipment impairment charge of $35,680,000 in respect of Belmond La Samanna, St. Martin, French West Indies, based on a strategic review of its assets. The carrying value was written down to the hotel's fair value. Also, in the year ended December 31, 2013, Belmond identified and recorded a non-cash property, plant and equipment impairment charge of $750,000 in respect of Belmond Grand Hotel Europe, St Petersburg, Russia, as the carrying value of assets were written down to fair value based on management's best estimate of the net recoverable amount. The impairments above, other than that of Ubud Hanging Gardens, are included in impairment of property, plant and equipment in the statements of consolidated operations. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The changes in the carrying amount of goodwill for the years ended December 31, 2015 and 2014 are as follows: Beginning balance at January 1, 2015 Ending balance at December 31, 2015 Gross goodwill amount Accumulated impairment Net goodwill amount Impairment Foreign currency translation adjustment Gross goodwill amount Accumulated impairment Net goodwill amount Year ended December 31, 2015 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Owned hotels: Europe 71,292 (10,104 ) 61,188 (4,098 ) (7,029 ) 64,263 (14,202 ) 50,061 North America 66,101 (16,110 ) 49,991 — — 66,101 (16,110 ) 49,991 Rest of world 21,705 (8,113 ) 13,592 (5,036 ) (1,730 ) 19,975 (13,149 ) 6,826 Owned trains and cruises 7,873 — 7,873 (662 ) (93 ) 7,780 (662 ) 7,118 Total 166,971 (34,327 ) 132,644 (9,796 ) (8,852 ) 158,119 (44,123 ) 113,996 Beginning balance at January 1, 2014 Ending balance at December 31, 2014 Gross goodwill amount Accumulated impairment Net goodwill amount Impairment Foreign currency translation adjustment Gross goodwill amount Accumulated impairment Net goodwill amount Year ended December 31, 2014 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Owned hotels: Europe 87,885 (10,104 ) 77,781 — (16,593 ) 71,292 (10,104 ) 61,188 North America 66,101 (16,110 ) 49,991 — — 66,101 (16,110 ) 49,991 Rest of world 29,220 (8,113 ) 21,107 — (7,515 ) 21,705 (8,113 ) 13,592 Owned trains and cruises 8,037 — 8,037 — (164 ) 7,873 — 7,873 Total 191,243 (34,327 ) 156,916 — (24,272 ) 166,971 (34,327 ) 132,644 Belmond's annual impairment test date is October 1. During the nine months ended September 30, 2015, Belmond determined that there were indicators that the goodwill balance at the below reporting units should be tested for potential impairment. In each case the first step of the impairment test to compare the fair value of a reporting unit to its carrying value, including goodwill, indicated that their goodwill balances may be impaired. The fair value of a reporting unit is determined using internally developed discounted future cash flow models, which include input from external valuation experts to provide discount and long term growth rates. The second step of the impairment assessment to determine the amount of any potential impairment loss was performed and the following non-cash goodwill impairment charges were identified and recorded in the nine months ended September 30, 2015: • An impairment charge of $4,098,000 at Belmond Grand Hotel Europe. Belmond determined that this impairment was triggered by the deterioration of the Russian economic environment which commenced in the second half of 2014 and failed to improve significantly in 2015 under economic sanctions. The continued sanctions and lack of economic recovery led management to reconsider its estimates for future profitability of the business, including future growth in ADR and occupancy rates and the related discount rates. • An impairment charge of $3,581,000 at Belmond Jimbaran Puri. Belmond determined that this impairment was triggered by declining performance over a number of periods, caused in part by the stronger U.S. dollar and increased relative expense of the region for European travelers in particular. Further weakness in performance that continued into the peak season in the second quarter led management to reconsider its estimates for future profitability of the business, including future growth in ADR and occupancy rates and the related discount rates. • An impairment charge of $1,455,000 at Belmond La Résidence Phou Vao. Belmond determined that this impairment was triggered by the declining popularity of the destination, increased relative expense of the region for European travelers as well as increased competition from smaller independent operators. After a weak winter period, the improvement in performance in 2015 was not as strong as expected, leading management to reconsider its estimates for future profitability of the business, including future growth in ADR and occupancy rates and the related discount rates. • An impairment charge of $662,000 at Belmond Northern Belle. Belmond determined that this impairment was triggered by declining performance caused by a reduction in passenger numbers sourced mainly from regional markets in the U.K. Continued softness in passenger numbers over the key summer period led management to reconsider its estimates for future profitability of the business, including future growth in ticket prices and passenger numbers and the related discount rates. No further impairments were identified from the annual impairment tests performed in the three months ended December 31, 2015 . As the factors described above still existed in the three months ended December 31, 2015 , the goodwill at Belmond Grand Hotel Europe was tested for potential further impairment using updated cash flow projections and carrying values during the three months ended December 31, 2015 . The first step of the impairment process indicated that the fair value had increased from that used in the calculation at June 30, 2015 and therefore no further impairment was required. Goodwill assigned to this reporting unit was $7,656,000 at December 31, 2015 . Factors that could reasonably be expected to potentially have an adverse effect on the fair value of the reporting unit, and therefore lead to a future impairment of the goodwill, include the future operating projections of the hotel, volatility in debt or equity markets that could result in changes to the discount rate, economic sanctions and the timing and extent of recovery in the Russian economy. In the three months ended December 31, 2015 , Belmond considered whether the increased relative expense of the region indicated that it was more likely than not that the fair value of Belmond La Résidence d’Angkor was less than its carrying value. Under the first step of the goodwill impairment test, the fair value of Belmond La Résidence d’Angkor was approximately 24% in excess of its carrying value. Belmond La Résidence d’Angkor had a goodwill balance of $1,548,000 at December 31, 2015 . Factors that could reasonably be expected to potentially have an adverse effect on the fair value of the reporting unit include the future operating projections of the hotel, volatility in debt or equity markets that could result in changes to the discount rate, political instability in the region or changes in future travel patterns or local competitive supply. There were no impairments to goodwill for the year ended December 31, 2014. During the year ended December 31, 2013, Belmond identified a non-cash goodwill impairment of $3,187,000 at Ubud Hanging Gardens. This impairment was recorded in discontinued operations, as the results of operations of this hotel have been presented as discontinued operations for the years ended December 31, 2015 , 2014 and 2013 . Its assets and liabilities, however, are not accounted for as held for sale at December 31, 2015 and 2014 . See Note 4. |
Other intangible assets
Other intangible assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Other intangible assets | Other intangible assets Other intangible assets consist of the following as of December 31, 2015 and 2014 : Favorable lease assets Internet sites Trade names Total $'000 $'000 $'000 $'000 Carrying amount: Balance at January 1, 2014 8,660 1,723 7,100 17,483 Additions — 269 — 269 Impairment — — — — Foreign currency translation adjustment (74 ) (104 ) — (178 ) Balance at December 31, 2014 8,586 1,888 7,100 17,574 Additions 714 — — 714 Impairment — — — — Foreign currency translation adjustment (807 ) (97 ) — (904 ) Balance at December 31, 2015 8,493 1,791 7,100 17,384 Accumulated amortization: Balance at January 1, 2014 2,268 1,063 3,331 Charge for the year 241 134 375 Foreign currency translation adjustment (23 ) (67 ) (90 ) Balance at December 31, 2014 2,486 1,130 3,616 Charge for the year 341 190 531 Foreign currency translation adjustment (555 ) (60 ) (615 ) Balance at December 31, 2015 2,272 1,260 3,532 Net book value: December 31, 2013 6,392 660 7,100 14,152 December 31, 2014 6,100 758 7,100 13,958 December 31, 2015 6,221 531 7,100 13,852 Favorable lease intangible assets are amortized over the terms of the leases, which are between 19 and 60 years . Internet sites are amortized over a period of five to ten years . Trade names have an indefinite life and therefore are not amortized, but are assessed for impairment annually or when events indicate that impairment may have occurred. Favorable lease asset additions of $714,000 relate to a concession obtained by Belmond Villa Sant'Andrea in Sicily, Italy to operate a portion of beach adjacent to the hotel. In the year ended December 31, 2015 and 2014 , no impairments of other intangible assets were recognized. The trade name at Belmond Grand Hotel Europe was tested for impairment as of October 1, 2015. Under the first step of the impairment test, the fair value of the Belmond Grand Hotel Europe trade name was approximately 28% in excess of its carrying value. Belmond Grand Hotel Europe had a trade name balance of $7,100,000 at December 31, 2015 . See Note 8 for discussion of factors that could reasonably be expected to potentially have an adverse effect on the fair value of the trade name. An impairment of $2,815,000 was recognized for the year ended December 31, 2013. The intangible lease assets of Ubud Hanging Gardens were written down to $Nil . This impairment was recorded in discontinued operations, as the results of operations of this hotel have been presented as discontinued operations for the years ended December 31, 2015 , 2014 and 2013 . Its assets and liabilities, however, are not accounted for as held for sale at December 31, 2015 and 2014 . See Note 4. There were no impairments of intangible assets in continuing operations in the years ended December 31, 2013 . Amortization expense from continuing operations for the year ended December 31, 2015 was $531,000 ( 2014 - $375,000 ; 2013 - $394,000 ). Estimated amortization expense for each of the years ending December 31, 2016 to December 31, 2020 is approximately $531,000 . |
Debt and obligations under capi
Debt and obligations under capital lease | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt and obligations under capital lease | Debt and obligations under capital lease (a) Long-term debt and obligations under capital lease Long-term debt and obligations under capital lease consists of the following: 2015 2014 December 31, $’000 $’000 Loans from banks and other parties collateralized by tangible and intangible personal property and real estate with a maturity of four to 13 years (2014 - five to 14 years), with a weighted average interest rate of 4.28% (2014 - 4.35%) 596,428 620,106 Obligations under capital lease 59 129 Total long-term debt and obligations under capital leases 596,487 620,235 Less: Current portion 5,349 5,549 Less: Discount on secured term loan 1,894 2,451 Less: Debt issuance costs 11,701 13,095 Non-current portion of long-term debt and obligations under capital lease 577,543 599,140 On March 21, 2014, Belmond entered into a $551,955,000 secured term loan and a $105,000,000 revolving credit facility, the proceeds of which were used to repay all of the outstanding funded debt of Belmond apart from the debt of Charleston Center LLC, a consolidated VIE, and the debt of Belmond’s unconsolidated joint venture companies. The term loan has two tranches, a U.S. dollar tranche ( $345,000,000 initial amount) and a euro-denominated tranche ( €150,000,000 initial amount, equivalent to $206,955,000 at drawdown). The dollar tranche bears interest at a rate of LIBOR plus 3% per annum, and the euro tranche originally had an interest rate of EURIBOR plus 3.25% per annum. The euro-denominated tranche was repriced in June 2015 to a rate of EURIBOR plus 3% per annum. Both tranches are subject to a 1% interest rate floor. The term loan matures in 2021 and the annual mandatory amortization is 1% of the principal amount. The revolving credit facility has a maturity of five years and bears interest at a rate of LIBOR plus 2.75% per annum, with a commitment fee of 0.4% paid on the undrawn amount. The term loan and revolving credit facility are secured by pledges of shares in certain Company subsidiaries and by security interests in tangible and intangible personal property. There are no mortgages over real estate. In August 2014, Charleston Center LLC refinanced a secured loan of $83,200,000 with a new $86,000,000 loan secured on its real and personal property. The loan matures in 2019 and bears interest at a rate of LIBOR plus 2.12% per annum. This loan has no amortization and is non-recourse to Belmond. The following is a summary of the aggregate maturities of long-term debt, including obligations under capital lease, at December 31, 2015 : Year ended December 31, $’000 2016 5,349 2017 5,337 2018 5,338 2019 91,349 2020 5,364 2021 and thereafter 483,750 Total long-term debt and obligations under capital lease 596,487 The Company has guaranteed $499,100,000 of the long-term debt of its subsidiary companies as at December 31, 2015 ( 2014 - $522,561,000 ). The tables above include the debt of Charleston Center LLC of $97,328,000 at December 31, 2015 ( 2014 - $97,545,000 ). The debt is non-recourse to Belmond and includes $86,000,000 which was refinanced in August 2014 and a 1984 development loan from a public agency in the principal amount of $10,000,000 on which interest of $16,540,000 has accrued ( 2014 - $15,940,000 ). These amounts are included in the liabilities of Charleston Center LLC (see Note 5). The development loan matures in 2028 and during its term provides for the lenders to receive 15% of the “net proceeds” (as defined in the applicable loan agreement) from any sale or refinancing of the property (other than a refinancing of the $86,000,000 first mortgage loan). Debt issuance costs related to the above outstanding long-term debt were $11,701,000 at December 31, 2015 ( 2014 - $13,095,000 ), including $707,000 at December 31, 2015 ( 2014 - $922,000 ) related to the debt of Charleston Center LLC, a consolidated VIE, and are amortized to interest expense over the term of the corresponding long-term debt. (b) Revolving credit and working capital facilities Belmond had approximately $106,082,000 of revolving credit and working capital facilities at December 31, 2015 ( 2014 - $107,004,000 ) of which $106,082,000 was available ( 2014 - $101,486,000 ). |
Other liabilities
Other liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Other Liabilities Disclosure [Abstract] | |
Other liabilities | Other liabilities The major balances in other liabilities are as follows: 2015 2014 December 31, $’000 $’000 Interest rate swaps (see Note 21) 1,733 618 Long-term accrued interest on subordinated debt at Belmond Charleston Place 16,540 15,940 Deferred gain on sale of Inn at Perry Cabin by Belmond (see Note 4) 1,950 2,550 Deferred lease incentive 247 315 Accrued income tax — 2,118 Withholding tax provision classified as interest — 2,356 Total other liabilities 20,470 23,897 |
Pensions
Pensions | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Pensions | Pensions From January 1, 2003, a number of non-U.S. Belmond employees participated in a funded defined benefit pension plan in the United Kingdom called the Belmond (UK) Ltd. 2003 Pension Scheme. On May 31, 2006, the plan was closed for future benefit accruals. The significant weighted-average assumptions used to determine net periodic costs of the plan during the year were as follows: 2015 2014 2013 Year ended December 31, % % % Discount rate 3.70 4.50 4.50 Expected long-term rate of return on plan assets 4.10 4.80 4.70 The significant weighted-average assumptions used to determine benefit obligations of the plan at year end were as follows: 2015 2014 December 31, % % Discount rate 3.85 3.70 The discount rate effectively represents the average rate of return on high quality corporate bonds at the end of the year in the country in which the benefit obligations arise. The expected rate of return on the pension fund assets, net of expenses has been determined by considering the actual asset classes held by the plan at December 31, 2015 and the yields available on U.K. government bonds at that date. For equities and corporate bonds, management has assumed that long-term returns will exceed those expected on U.K. government bonds by a risk premium. This is based on historical equity and bond returns over the long term. As these returns are long-term expected returns, the total returns on equities and corporate bonds only vary in line with the U.K. government bond yields and are not further adjusted for current market trends. The expected returns on annuities are set equal to the end of year discount rate as the value of annuities is tied to that rate. The fair value of Belmond’s pension plan assets at December 31, 2015 and 2014 by asset category is as follows: Total Level 1 Level 2 Level 3 December 31, 2015 $’000 $’000 $’000 $’000 Cash 1,101 1,101 — — Equity securities: U.K. managed funds 5,509 5,509 — — Overseas managed funds 4,999 4,999 — — Fixed income securities: U.K. government bonds 860 860 — — Corporate bonds 5,847 5,847 — — Other types of investments: Quoted hedge funds 3,860 3,860 — — Annuities 2,026 — — 2,026 24,202 22,176 — 2,026 Total Level 1 Level 2 Level 3 December 31, 2014 $’000 $’000 $’000 $’000 Cash 744 744 — — Equity securities: U.K. managed funds 6,087 6,087 — — Overseas managed funds 5,524 5,524 — — Fixed income securities: U.K. government bonds 1,830 1,830 — — Corporate bonds 5,745 5,745 — — Other types of investments: Quoted hedge funds 2,852 2,852 — — Annuities 2,186 — — 2,186 24,968 22,782 — 2,186 Reconciliations of fair value measurements using significant unobservable inputs (Level 3) at December 31, 2015 and 2014 are as follows: Annuities Total Year ended December 31, 2015 $’000 $’000 Beginning balance at January 1, 2015 2,186 2,186 Foreign exchange (112 ) (112 ) Actual return on plan assets: Assets still held at the reporting date 25 25 Purchases, sales and settlements, net (73 ) (73 ) Transfers into or out of Level 3 — — Ending balance at December 31, 2015 2,026 2,026 Annuities Total Year ended December 31, 2014 $’000 $’000 Beginning balance at January 1, 2014 2,045 2,045 Foreign exchange (123 ) (123 ) Actual return on plan assets: Assets still held at the reporting date 339 339 Purchases, sales and settlements, net (75 ) (75 ) Transfers into or out of Level 3 — — Ending balance at December 31, 2014 2,186 2,186 The allocation of the assets was in compliance with the target allocation set out in the plan investment policy, the principal objectives of which are to deliver returns above those of government and corporate bonds and to minimize the cost of providing pension benefits. The changes in the benefit obligation, the plan assets and the funded status for the plan were as follows: 2015 2014 2013 Year ended December 31, $’000 $’000 $’000 Change in benefit obligation: Benefit obligation at beginning of year 27,353 24,768 27,927 Service cost — — — Interest cost 984 1,092 1,200 Plan participants’ contributions — — — Net transfer in — — — Actuarial (gain)/loss (702 ) 3,680 (4,093 ) Benefits paid (1,723 ) (468 ) (573 ) Curtailment gain — — — Settlement — — — Foreign currency translation (1,356 ) (1,719 ) 307 Benefit obligation at end of year 24,556 27,353 24,768 Change in plan assets: Fair value of plan assets at beginning of year 24,968 23,162 19,652 Actual return on plan assets 309 1,821 1,665 Employer contributions 1,946 2,025 1,880 Plan participants’ contributions — — — Net transfer in — — — Benefits paid (1,723 ) (468 ) (573 ) Settlement — — — Foreign currency translation (1,298 ) (1,572 ) 538 Fair value of plan assets at end of year 24,202 24,968 23,162 Funded status at end of year (354 ) (2,385 ) (1,606 ) Net actuarial loss/(gain) recognized in other comprehensive loss (727 ) 2,449 (5,673 ) Amounts recognized in the consolidated balance sheets consist of the following: 2015 2014 December 31, $’000 $’000 Non-current assets — — Current liabilities — — Non-current liabilities 354 2,385 Amounts recognized in accumulated other comprehensive loss consist of the following: 2015 2014 December 31, $’000 $’000 Net loss (9,934 ) (10,661 ) Prior service cost — — Net transitional obligation — — Total amount recognized in other comprehensive loss (9,934 ) (10,661 ) The following table details certain information with respect to Belmond’s U.K. defined benefit pension plan: 2015 2014 Year ended December 31, $’000 $’000 Projected benefit obligation 24,556 27,353 Accumulated benefit obligation 24,556 27,353 Fair value of plan assets 24,202 24,968 Components of net periodic benefit cost are as follows: 2015 2014 2013 Year ended December 31, $’000 $’000 $’000 Service cost — — — Interest cost on projected benefit obligation 984 1,092 1,200 Expected return on assets (1,034 ) (1,139 ) (926 ) Net amortization and deferrals 750 550 930 Net periodic benefit cost 700 503 1,204 A U.K. subsidiary of Belmond is obligated to the plan’s trust to pay £1,272,000 (equivalent to $1,883,000 at December 31, 2015 ) annually until the plan is fully funded, which based on its December 2012 actuarial assessment is projected to occur in 2017 . Once the plan is fully funded, the U.K. subsidiary will remain obligated to restore the plan to a fully funded balance should its position deteriorate. In May 2014, Belmond Ltd. guaranteed the payment obligations of the U.K. subsidiary through 2023 , subject to a cap of £8,200,000 (equivalent to $12,136,000 at December 31, 2015 ), which reduces commensurately with every payment made to the plan since December 31, 2012. The following benefit payments, which reflect assumed future service, are expected to be paid: Year ended December 31, $’000 2016 490 2017 583 2018 475 2019 675 2020 528 Next five years 4,589 The estimated net loss amortized from accumulated other comprehensive income/(loss) into net periodic pension cost in the next fiscal year is $669,000 . Certain employees of Belmond were members of defined contribution pension plans. Total contributions to the plans were as follows: 2015 2014 2013 Year ended December 31, $’000 $’000 $’000 Employers’ contributions 2,199 2,527 2,542 |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes The Company is incorporated in Bermuda and migrated its tax residence to the United Kingdom on April 1, 2015. Belmond’s effective tax rate is significantly affected by its mix of income and loss in various jurisdictions as there is significant variation in the income tax rate imposed and also by the effect of losses in jurisdictions where the tax benefit is not recognized. The income tax provision is attributable to income tax charges incurred by subsidiaries operating in jurisdictions that impose an income tax, and is impacted by the effect of valuation allowances and uncertain tax positions. The income tax provision is also affected by certain items that may occur in any given year, but are not consistent from year to year. Items which had the most significant impact on the tax rate was the disposal of Hotel Ritz by Belmond during the year ended December 31, 2015 . The disposal of Hotel Ritz by Belmond generated an accounting profit on disposal of $19,676,000 , but a taxable loss of $39,865,000 . A valuation allowance of $11,162,000 has been provided in respect of the taxable loss. The provision for income taxes consists of the following: Provision for income taxes Year ended December 31, 2015 Pre-tax Current Deferred Total UK (18,965 ) 1,585 (2,262 ) (677 ) Bermuda (4,315 ) — — — United States 1,439 1,310 1,698 3,008 Brazil 10,380 2,768 760 3,528 Italy 17,351 4,006 (824 ) 3,182 Peru 12,078 3,154 (677 ) 2,477 Rest of the world 7,386 4,341 1,182 5,523 25,354 17,164 (123 ) 17,041 Provision for income taxes Year ended December 31, 2014 Pre-tax Current Deferred Total UK (3,476 ) 535 (1,279 ) (744 ) Bermuda (25,702 ) — — — United States 312 1,867 (193 ) 1,674 Brazil 21,275 7,872 (447 ) 7,425 Italy 9,572 6,752 (1,738 ) 5,014 Peru 9,505 3,923 (1,652 ) 2,271 Rest of the world (3,381 ) 5,540 (5,638 ) (98 ) 8,105 26,489 (10,947 ) 15,542 Provision for income taxes Year ended December 31, 2013 Pre-tax Current Deferred Total UK 1,616 (410 ) (402 ) (812 ) Bermuda (17,696 ) — — — United States (3,955 ) (369 ) 100 (269 ) Brazil 13,912 6,598 (3,791 ) 2,807 Italy 20,313 4,753 4,390 9,143 Peru 8,670 3,361 (671 ) 2,690 Rest of the world (37,852 ) 3,236 833 4,069 (14,992 ) 17,169 459 17,628 The reconciliation of earnings/(losses) before provision for income taxes and earnings from unconsolidated companies, net of tax at the statutory tax rate to the provision for income taxes is shown in the table below: 2015 2014 2013 Year ended December 31, $'000 $'000 $'000 Earnings/(losses) before provision for income taxes and earnings from unconsolidated companies, net of tax 25,354 8,105 (14,992 ) Tax charge at statutory tax rate of 15%, Nil% and Nil% (1) 3,803 — — Exchange rate movements on deferred tax (1,912 ) (3,680 ) (3,207 ) Notional interest deductions (1,867 ) (1,622 ) (1,075 ) Imputed cross border charges 716 — — Disallowable goodwill impairment charges 2,198 — — Other permanent disallowable expenditure/(income) 5,762 2,566 1,749 Unrecognized tax loss generated on disposal of Hotel Ritz by Belmond (16,029 ) — — Change in valuation allowance 16,320 4,573 13,015 Difference in taxation rates 12,948 15,089 7,353 Change in provisions for uncertain tax positions 279 545 (1,788 ) Change in tax rates (2) (5,121 ) (2,081 ) (276 ) Deferred tax charge for derivatives — — 2,119 Other (56 ) 152 (262 ) Provision for income taxes 17,041 15,542 17,628 (1) The Company migrated its tax residence to the United Kingdom on April 1, 2015, which has a statutory tax rate of 20%. Prior to that date, the Company was tax resident in Bermuda, which does not impose an income tax. The statutory tax rate of 15% represents the average statutory tax rate in the U.K. and Bermuda for 9 and 3 months, respectively, during the year ended December 31, 2015. (2) At December 31, 2015, future tax rate reductions in Italy and U.K. were enacted. The U.K. statutory tax rate was reduced to 19% from April 1, 2017 and 18% from April 1, 2020. In Italy, the corporate income tax (IRES) rate in respect of the year ended December 31, 2017, and subsequent periods, was reduced from 27.5% to 24%. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The following summarizes Belmond’s net deferred tax assets and liabilities: 2015 2014 2013 Year ended December 31, $’000 $’000 $’000 Operating loss carry-forwards 89,513 111,779 122,500 Pensions 63 477 321 Share-based compensation 2,978 3,872 3,146 Trademarks — — 5,075 Other 8,952 11,559 9,173 Less: Valuation allowance (69,928 ) (91,462 ) (110,780 ) Net deferred tax assets 31,578 36,225 29,435 Other (7,427 ) (6,138 ) (7,962 ) Property, plant and equipment (147,265 ) (162,625 ) (183,174 ) Deferred tax liabilities (154,692 ) (168,763 ) (191,136 ) Net deferred tax liabilities (123,114 ) (132,538 ) (161,701 ) The Company early adopted ASU 2015-17 effective December 31, 2015 on a prospective basis. Adoption of this ASU resulted in a reclassification of the net current deferred liability to the net non-current deferred tax liability in the consolidated balance sheet as of December 31, 2015. No prior periods were retrospectively adjusted. In the prior period balance sheet, current deferred tax assets are included in Prepaid expenses and other and current deferred tax liabilities are included in Accrued liabilities on the face of the consolidated balance sheets. Non-current deferred income taxes are presented separately on the face of the consolidated balance sheets for all periods. The gross amount of tax loss carry-forwards is $354,717,000 at December 31, 2015 ( 2014 - $392,971,000 ). Of this amount, $13,432,000 will expire within the five years ending December 31, 2020 and a further $75,446,000 will expire in the five years ending December 31, 2025. The remaining losses of $265,839,000 will expire after December 31, 2025 or have no expiry date. After weighing all positive and negative evidence, a valuation allowance has been provided against deferred tax assets where management believes it is more likely than not that the benefits associated with these assets will not be realized. A deferred tax liability of $541,000 ( 2014 - $453,000 ) has been recognized in respect of income taxes and foreign withholding taxes on the excess of the amount for financial reporting purposes over the tax basis of the investments in foreign joint ventures. Except for earnings that are currently distributed, income taxes and foreign withholding taxes have not been recognized on the excess of the amount for financial reporting purposes over the tax basis of investments in foreign subsidiaries that are essentially permanent in duration. The cumulative amount of such unremitted earnings is approximately $1,267,000,000 at December 31, 2015 ( 2014 - $1,059,000,000 ). The determination of the additional deferred taxes that have not been provided is not practical. Belmond’s 2015 tax provision of $17,041,000 ( 2014 - $15,542,000 ; 2013 - $17,628,000 ) included a charge of $279,000 ( 2014 - charge of $545,000 ; 2013 - benefit of $1,593,000 ) in respect of the provision for uncertain tax positions, of which a charge of $247,000 ( 2014 - benefit of $426,000 ; 2013 - benefit of $1,654,000 ) related to the potential interest and penalty costs associated with the uncertain tax positions. The 2015 provision for income taxes included a deferred tax provision of $16,320,000 in respect of valuation allowances due to a change in judgment concerning Belmond’s ability to realize loss carryforwards and other deferred tax assets in certain jurisdictions compared to a $4,573,000 provision in 2014 . At December 31, 2015 , the total amounts of unrecognized tax benefits included the following: Total Principal Interest Penalties Year ended December 31, 2015 $’000 $’000 $’000 $’000 Balance, January 1, 2015 3,437 2,966 416 55 Additional uncertain tax provision identified during the year 78 62 7 9 Increase to uncertain tax provision on prior year positions 236 — 236 — Uncertain tax provisions paid during the year — — — — Decrease to uncertain tax provisions on prior year positions — — — — Decreases as a result of expiration of the statute of limitations (35 ) (30 ) (2 ) (3 ) Foreign exchange (38 ) (31 ) (1 ) (6 ) Balance at December 31, 2015 3,678 2,967 656 55 At December 31, 2015 , Belmond recognized a $3,678,000 liability in respect of its uncertain tax positions. The entire balance of unrecognized tax benefit at December 31, 2015 , if recognized, would affect the effective tax rate. At December 31, 2014 , the total amounts of unrecognized tax benefits included the following: Total Principal Interest Penalties Year ended December 31, 2014 $’000 $’000 $’000 $’000 Balance at January 1, 2014 2,988 2,935 7 46 Additional uncertain tax provision identified during the year 523 90 413 20 Increase to uncertain tax provision on prior year positions 49 49 — — Uncertain tax provisions paid during the year (49 ) (49 ) — — Decrease to uncertain tax provisions on prior year positions — — — — Decreases as a result of expiration of the statute of limitations (27 ) (20 ) (3 ) (4 ) Foreign exchange (47 ) (39 ) (1 ) (7 ) Balance at December 31, 2014 3,437 2,966 416 55 At December 31, 2014 , Belmond recognized a $3,437,000 liability in respect of its uncertain tax positions. The entire balance of unrecognized tax benefit at December 31, 2014 , if recognized, would affect the effective tax rate. At December 31, 2013 , the total amounts of unrecognized tax benefits included the following: Total Principal Interest Penalties Year ended December 31, 2013 $’000 $’000 $’000 $’000 Balance, January 1, 2013 4,581 2,874 1,174 533 Additional uncertain tax provision identified during the year 2,720 2,716 (4 ) 8 Increase to uncertain tax provision on prior year positions 737 559 138 40 Uncertain tax provisions paid during the year (737 ) (559 ) (138 ) (40 ) Decrease to uncertain tax provisions on prior year positions (3,924 ) (2,302 ) (1,127 ) (495 ) Decreases as a result of expiration of the statute of limitations (387 ) (351 ) (36 ) — Foreign exchange (2 ) (2 ) — — Balance, December 31, 2013 2,988 2,935 7 46 At December 31, 2013 , Belmond recognized a $2,988,000 liability in respect of its uncertain tax positions. The entire balance of unrecognized tax benefit at December 31, 2013 , if recognized, would affect the effective tax rate. Certain subsidiaries of the Company are subject to taxation in the United States and various states and other non-U.S. jurisdictions. As of December 31, 2015 , the earliest year in any jurisdiction which is open to examination by the tax authorities is 2004. Belmond believes that it is reasonably possible that within the next 12 months the uncertain tax provision will decrease by approximately $35,000 as a result of expiration of uncertain tax positions in certain jurisdictions in which Belmond operates. These amounts relate primarily to transfer pricing inquiries with the tax authorities. |
Interest expense
Interest expense | 12 Months Ended |
Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | |
Interest expense | Interest expense The balances in interest expense are as follows: 2015 2014 2013 Year ended December 31, $’000 $’000 $’000 Interest expense on long-term debt and obligations under capital lease 27,380 30,270 28,218 Withholding tax provision classified as interest (1,476 ) 2,576 — Interest on legal settlements 3,294 — — Amortization of debt issuance costs and discount on secured term loan 2,903 3,921 7,196 Interest capitalized — — (1,088 ) 32,101 36,767 34,326 |
Supplemental cash flow informat
Supplemental cash flow information | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental cash flow information | Supplemental cash flow information 2015 2014 2013 Year ended December 31, $’000 $’000 $’000 Cash paid during the period for: Interest 27,828 30,147 27,320 Income taxes, net of refunds 18,306 21,454 22,275 To reflect the actual cash paid for capital expenditures, increases in accounts payable for capital expenditures are non-cash and excluded from capital expenditure, while decreases are cash payments and included. The changes in accounts payable were a decrease of $229,000 and an increase of $476,000 for the years ended December 31, 2015 and 2014 , respectively. |
Restricted cash
Restricted cash | 12 Months Ended |
Dec. 31, 2015 | |
Cash and Cash Equivalents [Abstract] | |
Restricted cash | Restricted cash The major balances in restricted cash are as follows: 2015 2014 December 31, $’000 $’000 Refundable and non-refundable cash deposits held with banks pending completion of asset sales — 500 Cash deposits required to be held with lending banks as collateral 749 768 Prepaid customer deposits which will be released to Belmond under its revenue recognition policy 1,909 647 Bonds and guarantees 659 758 Total restricted cash 3,317 2,673 Restricted cash classified as long-term and included in other assets on the consolidated balance sheet at December 31, 2015 was $749,000 ( December 31, 2014 - $768,000 ). |
Shareholders' equity
Shareholders' equity | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Shareholders' equity | Shareholders’ equity (a) Dual common share capitalization The Company has been capitalized with class A common shares, of which there are 240,000,000 authorized, and class B common shares, of which there are 120,000,000 authorized, each convertible at any time into one class A common share. In general, holders of class A and class B common shares vote together as a single class, with holders of class B shares having one vote per share and holders of class A shares having one tenth of one vote per share. In all other substantial respects, the class A and class B common shares are the same. (b) Shareholder rights agreement The Company has in place a shareholder rights agreement which will be implemented not earlier than the tenth day following the first to occur of (i) the public announcement of the acquisition by a person (other than a subsidiary of the Company) of 15% or more of the outstanding class A common shares or 15% or more of the outstanding class B common shares, and (ii) the commencement or announcement of a tender offer or exchange offer by a person for 30% or more of the outstanding class A common shares or 30% or more of the outstanding class B common shares. At that time, the rights will detach from the class A and class B common shares, and the holders of the rights will be entitled to purchase, for each right held, one one hundredth of a series A junior participating preferred share of the Company at an exercise price of $70 (the “Purchase Price”) for each one one hundredth of such junior preferred share, subject to adjustment in certain events. From and after the date on which any person acquires beneficial ownership of 15% or more of the outstanding class A common shares or 15% or more of the outstanding class B common shares, each holder of a right (other than the acquiring person) will be entitled upon exercise to receive, at the then current Purchase Price and in lieu of the junior preferred shares, that number of class A or class B common shares (depending on whether the right was previously attached to a class A or B share) having a market value of twice the Purchase Price. If the Company is acquired or 50% or more of its consolidated assets or earning power is sold, each holder of a right will be entitled to receive, upon exercise at the then current Purchase Price, that amount of common equity of the acquiring company which at the time of such transaction would have a market value of two times the Purchase Price. Also, the Company’s board of directors may exchange all or some of the rights for class A and class B common shares (depending on whether the right was previously attached to a class A or B share) if any person acquires 15% beneficial ownership as described above, but less than 50% beneficial ownership. The rights will expire on June 1, 2020 but may be redeemed at a price of $0.05 per right at any time prior to the tenth day following the date on which a person acquires beneficial ownership of 15% or more of the outstanding class A common shares or 15% or more of the outstanding class B common shares. (c) Acquired shares Included in shareholders’ equity is a reduction for 18,044,478 class B common shares of the Company that a subsidiary of the Company acquired in 2002. Under applicable Bermuda law, these shares are outstanding and may be voted, although in computing earnings per share these shares are treated as a reduction to outstanding shares. (d) Preferred shares The Company has 30,000,000 authorized preferred shares, par value $0.01 each, 500,000 of which have been reserved for issuance as series A junior participating preferred shares upon exercise of preferred share purchase rights held by class A and B common shareholders in connection with the shareholder rights agreement. |
Share-based compensation plans
Share-based compensation plans | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based compensation plans | Share-based compensation plans At December 31, 2015 , Belmond had two share-based compensation plans, which are described below. The compensation cost that has been charged to selling, general and administrative expense for these plans was $6,707,000 for the year ended December 31, 2015 ( 2014 - $7,928,000 ; 2013 - $10,388,000 ). Cash received from exercised options and vested awards was $35,000 for the year ended December 31, 2015 ( 2014 - $19,000 ; 2013 - $7,000 ). The total compensation cost related to unexercised options and unvested share awards at December 31, 2015 to be recognized over the period January 1, 2015 to December 31, 2019 , was $9,842,000 and the weighted average period over which it is expected to be recognized is 23 months . Measured from the grant date, substantially all awards of deferred shares and restricted shares have a maximum term of four years , and substantially all awards of share options have a maximum term of ten years . The last outstanding award under the 2000 stock option plan lapsed during the year ended December 31, 2015 . (a) 2000 and 2004 stock option plans Under the Company’s 2000 and 2004 stock option plans, options to purchase up to 750,000 and 1,000,000 class A common shares, respectively, could be awarded to employees of Belmond at fair market value at the date of grant. Options are exercisable three years after award and must be exercised ten years from the date of grant. At December 31, 2015 , no class A common shares were reserved under the 2000 plan, and 85,650 class A common shares were reserved under the 2004 plan. At December 31, 2015 , no shares remain available for future grants under the 2000 and 2004 plans as these have been transferred to the 2009 plan described below which became effective in 2009. Details of share option transactions under the 2000 and 2004 stock option plans are as follows: Number of shares Weighted average Weighted average Aggregate intrinsic Outstanding — January 1, 2014 286,800 29.91 Granted — — Exercised (6,726 ) 6.00 Forfeited, canceled or expired (63,724 ) 30.61 Outstanding — December 31, 2014 216,350 30.45 Granted — — Exercised (29,262 ) 5.89 Forfeited, canceled or expired (101,438 ) 32.59 Outstanding — December 31, 2015 85,650 36.30 2.0 83 Exercisable — December 31, 2015 85,650 36.30 2.0 83 The options outstanding under the 2000 and 2004 plans at December 31, 2015 were as follows: Exercise Outstanding at Exercisable at Remaining Exercise prices Exercise prices 5.89 23,100 23,100 2.9 5.89 5.89 34.90 1,050 1,050 0.8 34.90 34.90 35.85 6,550 6,550 2.7 35.85 35.85 36.50 9,700 9,700 0.5 36.50 36.50 42.87 1,050 1,050 0.9 42.87 42.87 46.08 5,550 5,550 2.4 46.08 46.08 51.90 4,950 4,950 2.2 51.90 51.90 52.51 27,250 27,250 1.7 52.51 52.51 52.51 1,050 1,050 1.2 52.51 52.51 52.59 2,350 2,350 1.5 52.59 52.59 59.23 3,050 3,050 1.9 59.23 59.23 85,650 85,650 The fair value of options which were exercised in the year to December 31, 2015 was $57,000 . No options vested and no options were granted under the plans during the year ended December 31, 2015 . (b) 2009 share award and incentive plan The Company's 2009 share award and incentive plan became effective in June 2009 and replaced the 2000 stock option plan, 2004 stock option plan and 2007 performance share plan (the “Pre-existing Plans”). A total of 1,084,550 class A common shares plus the number of class A common shares subject to outstanding awards under the Pre-existing Plans which become available after June 2009 as a result of expirations, cancellations, forfeitures or terminations, were reserved for issuance for awards under the 2009 share award and incentive plan. In 2010, the 2009 plan was amended to increase by 4,000,000 the number of class A shares authorized for issuance under the plan, and in 2012 by another 5,000,000 class A shares. The 2009 plan permits awards of stock options, stock appreciation rights, restricted shares, deferred shares, bonus shares and awards in lieu of obligations, dividend equivalents, other share-based awards, performance-based awards, or any combination of the foregoing. Each type of award is granted and vests based on its own terms, as determined by the Compensation Committee of the Company’s board of directors. During 2015 , the following share option awards were made under the 2009 share award and incentive plan on the following dates. Estimates of fair values of share options were made using the Black-Scholes options pricing model. 2009 share award and incentive plan Class A common shares Date granted Vesting date Exercise price Expected share price volatility Risk-free interest rate Expected dividends per share Expected life of awards Share options 117,508 December 11, 2015 December 11, 2019 $8.98 42% 1.56% $— 5.5 years Share options 117,509 December 11, 2015 December 11, 2018 $8.98 41% 1.56% $— 4.5 years Share options 117,509 December 11, 2015 December 11, 2017 $8.98 33% 1.16% $— 3.5 years Share options 117,509 December 11, 2015 December 11, 2016 $8.98 28% 1.16% $— 2.5 years Share options 24,041 September 20, 2015 September 20, 2019 $13.75 58% 1.83% $— 6.9 years Share options 24,041 September 20, 2015 September 20, 2018 $13.75 43% 1.45% $— 5.6 years Share options 24,041 September 20, 2015 September 20, 2017 $13.75 41% 1.45% $— 4.4 years Share options 24,042 September 20, 2015 September 20, 2016 $13.75 32% 0.97% $— 3.1 years Share options 48,319 June 19, 2015 June 19, 2019 $12.50 43% 1.59% $— 5.5 years Share options 48,319 June 19, 2015 June 19, 2018 $12.50 41% 1.59% $— 4.5 years Share options 48,318 June 19, 2015 June 19, 2017 $12.50 35% 0.99% $— 3.5 years Share options 48,318 June 19, 2015 June 19, 2016 $12.50 29% 0.65% $— 2.5 years During the year ended December 31, 2015 , the following deferred and restricted share awards were made under the 2009 share award and incentive plan on the following dates: 2009 share award and incentive plan Class A common shares Date granted Vesting date Purchase price Restricted shares without performance criteria 10,223 December 11, 2015 June 19, 2016 $0.01 Restricted shares without performance criteria 29,299 September 20, 2015 December 31, 2016 $0.01 Restricted shares without performance criteria 22,851 September 20, 2015 December 31, 2017 $0.01 Restricted shares without performance criteria 22,850 September 20, 2015 December 31, 2018 $0.01 Deferred shares without performance criteria 3,097 July 31, 2015 July 31, 2016 $0.01 Deferred shares without performance criteria 3,097 July 31, 2015 July 31, 2017 $0.01 Deferred shares without performance criteria 3,096 July 31, 2015 July 31, 2018 $0.01 Deferred shares without performance criteria 3,096 July 31, 2015 July 31, 2019 $0.01 Deferred shares without performance criteria 11,130 July 31, 2015 January 1, 2016 $0.01 Deferred shares without performance criteria 11,130 July 31, 2015 January 1, 2017 $0.01 Deferred shares without performance criteria 11,130 July 31, 2015 January 1, 2018 $0.01 Deferred shares without performance criteria 11,130 July 31, 2015 January 1, 2019 $0.01 Restricted shares without performance criteria 64,000 June 19, 2015 June 19, 2016 $0.01 Restricted shares without performance criteria 36,000 June 19, 2015 June 19, 2018 $0.01 Deferred shares with performance criteria 256,358 March 20, 2015 March 20, 2018 $0.01 Deferred shares without performance criteria 38,824 March 20, 2015 March 20, 2019 $0.01 Deferred shares without performance criteria 38,825 March 20, 2015 March 20, 2018 $0.01 Deferred shares without performance criteria 38,825 March 20, 2015 March 20, 2017 $0.01 Deferred shares without performance criteria 38,825 March 20, 2015 March 20, 2016 $0.01 Transactions relating to share options under the 2009 plan have been as follows: Number of shares Weighted average Weighted average Aggregate intrinsic Outstanding — January 1, 2014 2,771,500 10.67 Granted 771,133 12.44 Exercised (68,106 ) 9.10 Forfeited, canceled or expired (384,894 ) 10.26 Outstanding — December 31, 2014 3,089,633 11.20 Granted 759,474 10.48 Exercised (100,262 ) 8.60 Forfeited, canceled or expired (1,045,888 ) 11.51 Outstanding — December 31, 2015 2,702,957 10.97 7.7 888 Exercisable — December 31, 2015 1,047,650 9.79 5.8 644 The options outstanding under the 2009 plan at December 31, 2015 were as follows: Exercise Outstanding at Exercisable at Remaining Exercise prices Exercise prices 8.38 28,600 28,600 3.4 8.38 8.38 7.71 5,000 5,000 3.5 7.71 7.71 8.91 55,700 55,700 3.9 8.91 8.91 8.37 42,200 42,200 4.5 8.37 8.37 11.44 127,650 127,650 4.9 11.44 11.44 11.69 98,200 98,200 5.4 11.69 11.69 8.06 242,950 242,950 5.9 8.06 8.06 9.95 31,700 31,700 6.2 9.95 9.95 8.42 159,500 159,500 6.5 8.42 8.42 11.32 256,150 256,150 6.9 11.32 11.32 9.95 31,700 — 7.1 9.95 — 11.74 135,300 — 7.4 11.74 — 14.51 267,450 — 7.9 14.51 — 14.08 145,300 — 8.5 14.08 — 11.57 365,483 — 8.9 11.57 — 12.50 143,874 — 9.4 12.50 — 13.75 96,165 — 9.7 13.75 — 8.98 470,035 — 10.0 8.98 — 2,702,957 1,047,650 The fair value of option grants made in the year to December 31, 2015 was $2,366,000 . The fair value of options which became exercisable in the year to December 31, 2015 was $2,614,000 . The fair value of options which were exercised in the year was $431,000 . The number of options which vested during the year was 415,650 . Transactions relating to deferred shares and restricted shares under the 2009 plan have been as follows: Number of shares Weighted average Aggregate intrinsic Outstanding — January 1, 2014 1,481,827 0.01 Granted 786,809 0.01 Vested and issued (251,600 ) 0.01 Forfeited, canceled or expired (165,727 ) 0.01 Outstanding — December 31, 2014 1,851,309 0.01 Granted 653,787 0.01 Vested and issued (535,407 ) 0.01 Forfeited, canceled or expired (807,502 ) 0.01 Outstanding — December 31, 2015 1,162,187 0.01 11,029 At December 31, 2015 , awards of deferred shares and restricted shares on 1,162,187 class A common shares were reserved under the 2009 plan. Of these awards, 760,128 deferred shares and restricted shares do not specify any performance criteria and will vest up to August 2016. The remaining awards of up to 402,059 deferred shares are subject to performance and market criteria. The fair value of deferred shares and restricted shares awarded in the year to December 31, 2015 was $7,622,000 . The fair value of deferred shares vested in the year to December 31, 2015 was $5,809,000 . There were no vested and unissued deferred share or restricted shares awards as of December 31, 2015 . Estimates of the fair value of the share options on the grant date using the Black-Scholes options pricing model were based on the following assumptions: Year ended December 31, 2015 2014 2013 Expected share price volatility 28% - 58% 45% - 46% 50% - 60% Risk-free interest rate 0.65% - 1.83% 1.53% - 1.71% 1.30% - 1.74% Expected annual dividends per share $— $— $— Expected life of share options 2.5 - 6.9 years 4.5 years 4.5 - 8 years |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and contingencies Outstanding contracts to purchase property, plant and equipment were approximately $8,662,000 at December 31, 2015 ( December 31, 2014 - $15,486,000 ). In February 2013, the State of Rio de Janeiro Court of Justice affirmed a 2011 decision of a Rio state trial court against Sea Containers Ltd (“SCL”) in lawsuits brought against SCL by minority shareholders in Companhia Hoteis Palace (“CHP”), the company that owns Belmond Copacabana Palace, relating to the recapitalization of CHP in 1995, but the Court reduced the total award against SCL to approximately $27,000,000 . SCL further appealed the judgments during the second quarter of 2013 to the Superior Court of Justice in Brasilia. SCL sold its shares in CHP to the Company in 2000. Years later, in 2006, SCL entered insolvency proceedings in the U.S. and Bermuda that are continuing in Bermuda. Possible claims could be asserted against the Company or CHP in connection with this Brazilian litigation that has to date only involved SCL, although no claims have been asserted. As a precautionary measure to defend the hotel, CHP commenced a declaratory lawsuit in the Rio state court in December 2013 seeking judicial declarations that no fraud was committed against the SCL plaintiffs when the shares in CHP were sold to the Company in 2000 and that the sale of the shares did not render SCL insolvent. Pending rulings on those declarations, the court granted CHP an injunction preventing the SCL plaintiffs from provisionally enforcing their 2011 judgments against CHP, which judgment was subsequently reversed on appeal in May 2014. CHP sought reconsideration from the appellate court of this decision, but the court dismissed its request, resulting in the return of the declaratory lawsuit proceedings to the Rio State Court. Management cannot estimate the range of possible loss if the SCL plaintiffs assert claims against the Company or CHP, and Belmond has made no accruals in respect of this matter. If any such claims were brought, Belmond would continue to defend its interests vigorously. In November 2013, the third-party owner of Ubud Hanging Gardens in Bali, Indonesia dispossessed Belmond from the hotel under long-term lease without prior notice. As a result, Belmond was unable to continue operating the hotel and, accordingly, to prevent any confusion to its guests, Belmond ceased referring to the property in its sales and marketing materials, including all electronic marketing. Belmond believed that the owner's actions were unlawful and in breach of the lease arrangement and constituted a wrongful dispossession. Belmond pursued its legal remedies through arbitration proceedings required under the lease. In June 2015, a Singapore arbitration panel issued its final award in favor of Belmond, holding that the owner had breached Indonesian law and the lease, and granting monetary damages and costs to the Company in an amount equal to approximately $8,500,000 . Since its receipt of the arbitral award, Belmond has been engaged in the process of enforcing this arbitral award in the Indonesian courts. Starting in April 2014, the Indonesian trial courts have dismissed six separate actions filed by the owner for lack of jurisdiction due to the arbitration clause in the parties’ lease. The owner has appealed these decisions, one of which was reversed by the Appellate Court in October 2014. Belmond has appealed this case to the Indonesian Supreme Court. As supplemental proceedings to its arbitration claim, Belmond commenced contempt proceedings in the High Court in London, England, where the owner resided, for pursuing the Indonesian proceedings contrary to an earlier High Court injunction, and obtained against the owner in July 2014 a contempt order, which subsequently resulted in the court issuing a committal order of imprisonment for 120 days. The owner left England before the court order was issued and has not yet served the sentence. Belmond does not believe there is any merit in the owner’s outstanding Indonesian actions and is vigorously defending its rights while it seeks to enforce the Singapore arbitral award. While the Company can give no assurances, it believes that it should ultimately be able to enforce its arbitral award. Given the uncertainty involved in this litigation, Belmond recorded in the year ended December 31, 2013, a non-cash impairment charge in the amount of $7,031,000 relating to long-lived assets and goodwill of Ubud Hanging Gardens and has not booked a receivable in respect of the award. In September 2014, the Secretary of the Brazilian Ministry of Planning, Budget and Management notified the Company that the Ministry was denying its application to amend the lease for Belmond Hotel das Cataratas, which was entered into in 2007, among other things, to extend the term and reduce the rent. Belmond had applied for the amendment in 2009 based on its claim that it suffered additional unanticipated and/or unforeseeable costs in performing the refurbishment of the hotel as required by the lease and related tender documentation in order to raise the standard of the property to a five star luxury standard. The Company has appealed to the Secretary to re-consider its decision on both procedural and substantive grounds. If the Secretary does not alter its decision, the Company can appeal directly to the Minister for Planning and ultimately to the Brazilian courts. Belmond’s current annual lease expense for the hotel is R$16,715,000 (equivalent to $4,281,000 at December 31, 2015 ). However, until August 2014 the Company had been paying, with the approval of the Ministry, the amount of R$11,065,000 ( $2,834,000 ) per annum without the yearly adjustment for inflation as provided for in the lease, pending resolution of the case. The Company has expensed the full rental amount. Consequently, the difference between the cumulative rental charge and the amount paid plus monetary correction, which totals R$18,666,000 ( $4,780,000 ) has been fully accrued. Based on the Secretary’s decision, the Ministry will be assessing rent at the contractual rate, which has been included in the table of future rental payments as at December 31, 2015 below. Beyond the amounts accrued, management estimates that the range of possible additional loss to Belmond could be between R$1,500,000 and R$2,500,000 ( $384,000 and $640,000 ) plus interest from the date of the September 2014 decision until a final non-appealable decision is rendered. On March 20, 2015, the Ministry provided notice to the hotel that an aggregate amount of approximately R$17,000,000 ( $4,354,000 ) was due on March 31, 2015 as a result of the denial of the application. The Company intends to continue to press for a reconsideration by the Ministry of its request, which the Ministry has yet to address through its administrative process, and has not paid to the Ministry the amount claimed due. In the meantime, the Company is considering proceedings against the Ministry in the Brazilian courts. In January 2015, Peru Belmond Hotels S.A. received notification of a claim filed by the Public Prosecutor's office of the Regional Government of Cusco, seeking annulment of a contract and public deed of amendment extending the term of the Belmond Sanctuary Lodge concession for ten years from May 2015 to May 2025. The claim alleged that the amendment was invalid principally because the President of the Region, who executed the public deed on December 27, 2013, did not have proper authority to execute the amendment because a resolution dismissing him from office had been issued the day before. The court of first instance dismissed the case in May 2015 on technical grounds and the claimant appealed to the Superior Court of Cusco. At a hearing before the Superior Court of Cusco in September 2015, the Superior Court overturned the decision of the court of first instance and declared that the entire proceeding be vacated based on technical grounds. The court of first instance considered the matter and again dismissed the Public Prosecutor's claim in January 2016 on technical grounds. The Public Prosecutor's office may again appeal this decision, but as both a procedural and substantive matter, Belmond believes it has meritorious defenses and intends to contest the matter vigorously. In July 2015, Cupecoy Village Development N.V. received notification from the tax authorities in Sint Maarten of an intention to issue tax assessments for periods 2007-2010 in respect of wages taxes, social security, turnover tax and penalties, which Belmond believes indicates a maximum possible loss of $16,500,000 . Belmond believes that the report received from the tax authorities contains a number of material miscalculations and misinterpretations of fact and law. The Company has provided a written response to the tax authorities disputing their assessment and expects the resolution of this dispute to result in only an immaterial payment. In May 2010, after prevailing in litigation at the trial and appellate court levels, Belmond settled litigation in the United Kingdom for infringement of its U.K. and Community (European wide) registrations for the “Cipriani” trademark. Defendants paid the amount of $3,947,000 to Belmond in March 2010 with the balance of $9,833,000 being payable in installments over five years with interest. Belmond received the final payment in the amount of $1,178,000 in June 2015. Subsequent to Belmond’s success before the U.K. courts, there have arisen a number of European trademark opposition and infringement cases relating to Belmond "Cipriani" and "Hotel Cipriani" Community trademarks. These include an ongoing invalidity action filed by Arrigo Cipriani in the European Trade Mark Office (“OHIM”) against Belmond’s "Cipriani" Community trademark. To date, Belmond has successfully rebutted this challenge at every level of administrative appeal, and this case is now before the General Court where Belmond also expects to prevail. Belmond has recently been successful in securing the cancellation in Portugal of a trademark application filed by an affiliated company of the Cipriani family for “Cipriani”. Belmond has also been successful in obtaining cancellations of "Cipriani" trademark applications made by the Cipriani family's corporate entity in Russia. There are a number of ongoing trademark disputes with the Cipriani family in Italy: in January 2015, the Cipriani family and affiliated entities commenced proceedings against Belmond in the Court of Venice, asserting that a 1967 agreement pursuant to which the family sold their interest in the Hotel Cipriani constituted a coexistence agreement allowing both the Company to use “Hotel Cipriani” and the Cipriani family to use “Cipriani”. In August 2015, pursuant to a separate claim filed by the Cipriani family, the Court of Venice ruled in favor of the Cipriani family, determining that their use of their full name (rather than just an initial with their surname), would not constitute infringement of the Company’s registered trademark. The Court’s ruling purports to apply to hotels and restaurants, as well as to all of the EU (other than the U.K.) rather than only Italy. The Company intends to appeal this decision. Separate proceedings brought by Belmond in Spain to defend Belmond's marks against a use by the Cipriani family and its affiliated entities of "Cipriani" to promote a restaurant have been stayed pending the outcome of the Venice appeal. While Belmond believes that it has meritorious cases in all of these Italian proceedings, Belmond cannot estimate the range of possible additional loss to Belmond if it should not prevail in any or all of these cases and Belmond has made no accruals in these matters. The Company and certain of its subsidiaries are parties to various legal proceedings arising in the normal course of business. These proceedings generally include matters relating to labor disputes, tax claims, personal injury cases, lease negotiations and ownership disputes. The outcome of each of these matters cannot be determined with certainty, and the liability that the relevant parties may ultimately incur with respect to any one of these matters in the event of a negative outcome may be in excess of amounts currently accrued for with respect to these matters. Where a reasonable estimate can be made, the additional losses or range of loss that may be incurred in excess of the amount recognized from the various legal proceedings arising in the normal course of business are disclosed separately for each claim, including a reference to where it is disclosed. However, for certain of the legal proceedings, management is unable to estimate the loss or range of loss that may result from these claims due to the highly complex nature or early stage of the legal proceedings. Future rental payments under operating leases in respect of equipment rentals and leased premises are payable as follows: Year ended December 31, $’000 2016 8,344 2017 8,630 2018 8,938 2019 7,523 2020 7,713 2021 and thereafter 65,305 106,453 Rental expense for the year ended December 31, 2015 amounted to $10,675,000 ( 2014 - $13,007,000 ; 2013 - $12,054,000 ). Belmond has granted to James Sherwood, a former director of the Company, a right of first refusal to purchase the Belmond Hotel Cipriani in Venice, Italy in the event Belmond proposes to sell it. The purchase price would be the offered sale price in the case of a cash sale or the fair market value of the hotel, as determined by an independent valuer, in the case of a non-cash sale. Mr. Sherwood has also been granted an option to purchase the hotel at fair market value if a change in control of the Company occurs. Mr. Sherwood may elect to pay 80% of the purchase price if he exercises his right of first refusal, or 100% of the purchase price if he exercises his purchase option, by a non-recourse promissory note secured by the hotel payable in ten equal annual installments with interest at LIBOR . This right of first refusal and purchase option are not assignable and expire one year after Mr. Sherwood’s death. These agreements relating to the Belmond Hotel Cipriani between Mr. Sherwood and Belmond and its predecessor companies have been in place since 1983 and were last amended and restated in 2005. |
Fair value measurements
Fair value measurements | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements | Fair value measurements (a) Financial instruments recorded at fair value The following tables summarize the valuation of Belmond’s assets and liabilities by the fair value hierarchy at December 31, 2015 and 2014 : Level 1 Level 2 Level 3 Total December 31, 2015 $'000 $'000 $'000 $'000 Assets at fair value: Derivative financial instruments — 4 — 4 Total assets — 4 — 4 Liabilities at fair value: Derivative financial instruments — (4,464 ) — (4,464 ) Total net liabilities — (4,460 ) — (4,460 ) Level 1 Level 2 Level 3 Total December 31, 2014 $'000 $'000 $'000 $'000 Assets at fair value: Derivative financial instruments — 13 — 13 Total assets — 13 — 13 Liabilities at fair value: Derivative financial instruments — (3,602 ) — (3,602 ) Total net liabilities — (3,589 ) — (3,589 ) During the years ended December 31, 2015 and 2014 , there were no transfers between levels of the fair value hierarchy. (b) Other financial instruments Certain methods and assumptions are used to estimate the fair value of each class of financial instruments. The carrying amount of current assets and current liabilities as disclosed on the consolidated balance sheets approximate their fair value due to the short-term nature of those instruments. The fair value of Belmond's long-term debt, excluding interest rate swaps and caps, is determined using the contractual cash flows and credit-adjusted discount curves. The fair value of the debt is the present value of those contractual cash flows which are discounted at the current market cost of debt and adjusted for the credit spreads. Credit spreads take into consideration general market conditions, maturity and collateral. The estimated carrying values, fair values, and levels of the fair value hierarchy of Belmond's long-term debt as of December 31, 2015 and 2014 were as follows: December 31, 2015 December 31, 2014 Carrying Fair value Carrying Fair value Total long-term debt, before deduction of discount on secured term loan and debt issuance costs, excluding obligations under capital leases Level 3 596,428 630,455 620,106 663,653 See Note 10. (c) Non-financial assets measured at fair value on a non-recurring basis The estimated fair values of Belmond’s non-financial assets measured on a non-recurring basis for the years ended December 31, 2015 , 2014 and 2013 were as follows: Fair value measurement inputs Fair value Level 1 Level 2 Level 3 Total losses in year ended December 31, 2015 Goodwill 10,050 — — 10,050 (9,796 ) Fair value measurement inputs Fair value Level 1 Level 2 Level 3 Total losses in year ended December 31, 2014 Property, plant and equipment 2,488 — — 2,488 (1,211 ) Fair value measurement inputs Fair value Level 1 Level 2 Level 3 Total losses in year ended December 31, 2013 Property, plant and equipment 45,000 — — 45,000 (36,430 ) Property, plant and equipment of discontinued operations — — — — (1,029 ) Goodwill of discontinued operations — — — — (3,187 ) Intangible assets of discontinued operations — — — — (2,815 ) Goodwill The fair values of reporting units have been determined using internally developed discounted future cash flow models, incorporating third party appraisals and industry and market data where relevant. In the year ended December 31, 2015, goodwill of Belmond Grand Hotel Europe with a carrying value of $14,148,000 was written down to fair value of $10,050,000 , resulting in a non-cash impairment charge of $4,098,000 ; goodwill of Belmond Jimbaran Puri with a carrying value of $3,581,000 was written down to fair value of $Nil , resulting in a non-cash impairment charge of $3,581,000 ; goodwill of Belmond La Résidence Phou Vao with a carrying value of $1,455,000 was written down to fair value of $Nil resulting in a non-cash impairment charge of $1,455,000 ; and goodwill of Belmond Northern Belle with a carrying value of $662,000 was written down to fair value of $Nil , resulting in a non-cash impairment charge of $662,000 . See Note 8. These impairments are included in earnings from continuing operations in the period incurred. Property, plant and equipment For the year ended December 31, 2014, train carriages of Belmond's former Great South Pacific Express train which are held in Australia and not in service with a carrying value of $3,699,000 were written down to fair value of $2,488,000 , resulting in a non-cash impairment charge of $1,211,000 . For the year ended December 31, 2013, property, plant and equipment at Belmond La Samanna with a carrying value of $80,680,000 was written down to fair value of $45,000,000 , resulting in a non-cash impairment charge of $35,680,000 , and property, plant and equipment at Belmond Grand Hotel Europe with a carrying value of $750,000 was written down to fair value of $Nil , resulting in a non-cash impairment charge of $750,000 . These impairments are included in earnings from continuing operations in the period incurred. Property, plant and equipment of discontinued operations For the year ended December 31, 2013, property, plant and equipment of Ubud Hanging Gardens with a carrying value of $1,029,000 was written down to fair value of $Nil , resulting in a non-cash impairment charge of $1,029,000 . This impairment is included in losses from discontinued operations in the period incurred. Goodwill of discontinued operations For the year ended December 31, 2013, goodwill at Ubud Hanging Gardens with a carrying value of $3,187,000 was written down to fair value of $Nil , resulting in a non-cash impairment charge of $3,187,000 . This impairment is included in losses from discontinued operations in the period incurred. Intangible assets of discontinued operations For the year ended December 31, 2013, intangible lease assets at Ubud Hanging Gardens with a carrying value of $2,815,000 were written down to a fair value of $Nil , resulting in a non-cash impairment charge of $2,815,000 . This impairment is included in losses from discontinued operations in the period incurred. |
Derivatives and hedging activit
Derivatives and hedging activities | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and hedging activities | Derivatives and hedging activities Belmond hedges its interest rate risk, ensuring that an element of its floating rate interest is fixed by using interest rate derivatives. Belmond designates these derivatives as cashflow hedges. Additionally, Belmond designates its foreign currency borrowings and currency derivatives as net investment hedges of overseas operations. Cash flow hedges of interest rate risk As of December 31, 2015 and 2014 , Belmond had the following outstanding interest rate derivatives stated at their notional amounts in local currency that were designated as cash flow hedges of interest rate risk: 2015 2014 December 31, ’000 ’000 Interest rate swaps € 73,688 € 74,438 Interest rate swaps $ 212,481 $ 214,206 Interest rate caps $ 17,200 $ 17,200 Non-designated hedges of interest rate risk Derivatives not designated as hedges are sometimes used to manage Belmond’s exposure to interest rate movements but do not meet the strict hedge accounting requirements prescribed in the authoritative accounting guidance. As of December 31, 2015 and 2014 Belmond did not have any derivatives which were not designated as hedges. Fair value The table below presents the fair value of Belmond’s derivative financial instruments and their classification as of December 31, 2015 and 2014 : Fair value as of Fair value as of December 31, 2015 December 31, 2014 Balance sheet location $’000 $’000 Derivatives designated in a cash flow hedging relationship: Interest rate derivatives Other assets 4 13 Interest rate derivatives Accrued liabilities (2,731 ) (2,984 ) Interest rate derivatives Other liabilities (1,733 ) (618 ) Total (4,460 ) (3,589 ) Offsetting There was no offsetting within derivative assets or derivative liabilities at December 31, 2015 and 2014 . However, derivatives are subject to master netting arrangements. Other comprehensive income Information concerning the movements in other comprehensive income for cash flow hedges of interest rate risk is shown in Note 22. At December 31, 2015 , the amount accounted for in other comprehensive income/(loss) which is expected to be reclassified to interest expense in the next 12 months is $2,669,000 . Movement in other comprehensive income/(loss) for net investment hedges recorded through foreign currency translation adjustments for the year ended December 31, 2015 was a $18,221,000 gain ( 2014 - $24,816,000 gain; 2013 - $1,016,000 loss). Derivative movements not included in other comprehensive income for the years ended December 31, 2015 , 2014 and 2013 were as follows: 2015 2014 2013 Year ended December 31, $’000 $’000 $’000 Amount of gain/(loss) recognized in interest expense for the ineffective portion of derivatives designated as cash flow hedges — — (37 ) Amount of gain/(loss) recognized in interest expense for derivatives not designated as hedging instruments — — (4 ) Credit-risk-related contingent features Belmond has agreements with some of its derivative counterparties that contain provisions under which, if Belmond defaults on the debt associated with the hedging instrument, Belmond could also be declared in default in respect of its derivative obligations. As of December 31, 2015 , the fair value of derivatives in a net liability position, which includes accrued interest and an adjustment for non-performance risk, related to these agreements was $4,464,000 ( 2014 - $3,602,000 ). If Belmond breached any of the provisions, it would be required to settle its obligations under the agreements at their termination value of $4,513,000 ( 2014 - $3,615,000 ). Non-derivative financial instruments — net investment hedges Belmond uses certain of its debt denominated in foreign currency to hedge portions of its net investments in foreign operations against adverse movements in exchange rates. Belmond’s designates its euro-denominated indebtedness as a net investment hedge of long-term investments in its euro-functional subsidiaries. These contracts are included in non-derivative hedging instruments. The notional value of non-derivative hedging instruments was $160,138,000 at December 31, 2015 ( 2014 - $180,149,000 ), being a liability of Belmond. |
Accumulated other comprehensive
Accumulated other comprehensive loss | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Accumulated other comprehensive loss | Accumulated other comprehensive loss Changes in accumulated other comprehensive income/(loss) (“AOCI”) by component (net of tax) for the years ended December 31, 2015 and 2014 were as follows: Foreign currency translation adjustments Derivative financial instruments Pension liability Total $’000 $’000 $’000 $’000 Balance at January 1, 2014 (81,339 ) (3,381 ) (8,597 ) (93,317 ) Other comprehensive loss before reclassifications (150,989 ) (2,731 ) (1,926 ) (155,646 ) Amounts reclassified from AOCI — 2,543 — 2,543 Net current period other comprehensive income/(loss) (150,989 ) (188 ) (1,926 ) (153,103 ) Balance at December 31, 2014 (232,328 ) (3,569 ) (10,523 ) (246,420 ) Other comprehensive income/(loss) before reclassifications (88,180 ) (3,471 ) 580 (91,071 ) Amounts reclassified from AOCI — 2,949 — 2,949 Net current period other comprehensive income/(loss) (88,180 ) (522 ) 580 (88,122 ) Balance at December 31, 2015 (320,508 ) (4,091 ) (9,943 ) (334,542 ) Foreign currency translation adjustments for the year ended December 31, 2014 include a loss of $49,356,000 arising on the remeasurement of non-monetary assets and liabilities of Belmond’s Brazilian operations following a change in functional currency from the U.S. dollar to the Brazilian real, effective from January 1, 2014. See Note 2. Reclassifications out of AOCI (net of tax) were as follows: Amount reclassified from AOCI December 31, 2015 December 31, 2014 Details about AOCI components $’000 $’000 Affected line item in the statement of operations Derivative financial instruments: Cash flows from derivative financial instruments related to interest payments made for the hedged debt instrument 2,949 2,543 Interest expense Total reclassifications for the period 2,949 2,543 |
Segment information
Segment information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment information | Segment information Segment performance is evaluated by the chief operating decision maker based upon segment earnings before gains/(losses) on disposal, impairments, central overheads, interest income, interest expense, foreign currency, tax (including tax on earnings from unconsolidated companies), depreciation and amortization (“segment profit”). Belmond's operating segments are aggregated into six reportable segments primarily around the type of service being provided—hotels, trains and cruises, and management business/part ownership interests—and are secondarily organized by geography for the hotels, as follows: • Owned hotels in each of Europe, North America and Rest of world which derive earnings from the hotels that Belmond owns including its one stand-alone restaurant; • Part-owned/managed hotels which derive earnings from hotels that Belmond jointly owns or manages; • Owned trains and cruises which derive earnings from the train and cruise businesses that Belmond owns; and • Part-owned/managed trains which derive earnings from the train businesses that Belmond jointly owns or manages. The following tables present financial information regarding these reportable segments. Revenue from external customers by segment: 2015 2014 2013 Year ended December 31, $’000 $’000 $’000 Owned hotels: Europe 200,059 212,744 222,047 North America 148,103 142,586 146,491 Rest of world 124,369 142,731 141,709 Total owned hotels 472,531 498,061 510,247 Part-owned/ managed hotels 5,232 5,983 5,861 Total hotels 477,763 504,044 516,108 Owned trains & cruises 65,471 74,265 73,728 Part-owned/ managed trains 8,151 7,406 4,245 Total trains & cruises 73,622 81,671 77,973 Total revenue 551,385 585,715 594,081 Reconciliation of the total of segment profit to consolidated net earnings/(losses) from operations: 2015 2014 2013 Year ended December 31, $’000 $’000 $’000 Owned hotels: Europe 65,416 62,770 63,767 North America 31,622 23,986 23,233 Rest of world 31,295 36,539 35,958 Total owned hotels 128,333 123,295 122,958 Part-owned/ managed hotels 4,142 5,205 2,273 Total hotels 132,475 128,500 125,231 Owned trains & cruises 6,741 7,300 8,467 Part-owned/ managed trains 18,883 16,165 14,390 Total trains & cruises 25,624 23,465 22,857 Reconciliation to net earnings/(losses): Total segment profit 158,099 151,965 148,088 Gain on disposal of property, plant and equipment 20,275 4,128 — Impairment of goodwill (9,796 ) — — Impairment of property, plant and equipment — (1,211 ) (36,430 ) Central overheads (39,272 ) (31,727 ) (30,647 ) Share-based compensation (6,707 ) (7,928 ) (10,388 ) Depreciation and amortization (50,513 ) (52,004 ) (48,740 ) (Loss)/gain on extinguishment of debt — (14,506 ) 3,517 Other income — 1,257 — Interest income 926 1,418 1,067 Interest expense (32,101 ) (36,767 ) (34,326 ) Foreign currency, net (5,016 ) 2,262 1,000 Provision for income taxes (17,041 ) (15,542 ) (17,628 ) Share of (provision for)/benefit from income taxes of unconsolidated companies (1,466 ) 702 (1,691 ) Earnings/(losses) from continuing operations 17,388 2,047 (26,178 ) Losses from discontinued operations (1,534 ) (3,782 ) (5,318 ) Net earnings/(losses) 15,854 (1,735 ) (31,496 ) Reconciliation of assets by segment to total assets: 2015 2014 December 31, $’000 $’000 Owned hotels: Europe 533,610 594,590 North America 477,949 480,699 Rest of world 227,339 275,383 Total owned hotels 1,238,898 1,350,672 Part-owned/ managed hotels 19,285 49,149 Total hotels 1,258,183 1,399,821 Owned trains & cruises 94,945 92,196 Part-owned/ managed trains 61,961 56,122 Total trains & cruises 156,906 148,318 Unallocated corporate 94,386 107,084 Discontinued operations held for sale — — Total assets 1,509,475 1,655,223 Reconciliation of capital expenditure to acquire property, plant and equipment by segment: 2015 2014 2013 Year ended December 31, $’000 $’000 $’000 Owned hotels: Europe 18,648 26,542 13,238 North America 11,881 16,690 32,635 Rest of world 14,168 14,409 14,173 Total owned hotels 44,697 57,641 60,046 Owned trains & cruises 11,415 5,533 6,325 Unallocated corporate 283 280 275 Total capital expenditure to acquire property, plant and equipment 56,395 63,454 66,646 Carrying value of investment in equity method investees: 2015 2014 December 31, $’000 $’000 Eastern & Oriental Express 2,972 3,251 Peru hotels 18,696 16,981 PeruRail 47,421 41,713 Hotel Ritz by Belmond — — Buzios 2,542 3,783 Other 93 103 Total investment in equity method investees 71,724 65,831 Earnings from unconsolidated companies, net of tax: 2015 2014 2013 Year ended December 31, $’000 $’000 $’000 Part-owned/ managed hotels 106 1,949 (2,372 ) Part-owned/ managed trains 8,969 7,535 8,814 Total earnings from unconsolidated companies, net of tax 9,075 9,484 6,442 Revenue from external customers in Belmond's country of domicile and significant countries (based on the location of the property): 2015 2014 2013 Year ended December 31, $’000 $’000 $’000 Bermuda — — — Italy 132,385 137,491 133,806 United Kingdom 62,656 68,412 65,865 United States 107,965 104,146 108,167 Brazil 69,142 86,866 80,537 All other countries 179,237 188,800 205,706 Total revenue 551,385 585,715 594,081 Property, plant and equipment at book value in Belmond's country of domicile and significant countries (based on the location of the property): 2015 2014 December 31, $’000 $’000 Bermuda — — Italy 308,035 341,051 United Kingdom 57,443 60,816 United States 346,942 347,709 Brazil 61,773 93,384 All other countries 304,168 325,797 Total property, plant and equipment at book value 1,078,361 1,168,757 |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related party transactions | Related party transactions Belmond manages, under long-term contract, the tourist train owned by Eastern and Oriental Express Ltd., in which Belmond has a 25% ownership interest. In the year ended December 31, 2015 , Belmond earned management fees from Eastern and Oriental Express Ltd. of $292,000 ( 2014 - $362,000 ; 2013 - $463,000 ), which are recorded in revenue. The amount due to Belmond from Eastern and Oriental Express Ltd. at December 31, 2015 was $4,872,000 ( 2014 - $5,227,000 ). Belmond manages, under long-term contracts in Peru, Belmond Hotel Monasterio, Belmond Palacio Nazarenas, Belmond Sanctuary Lodge, Belmond Hotel Rio Sagrado, PeruRail and Ferrocarril Transandino, in all of which Belmond has a 50% ownership interest. Belmond provides loans, guarantees and other credit accommodation to these joint ventures. In the year ended December 31, 2015 , Belmond earned management and guarantee fees from its Peruvian joint ventures of $12,503,000 ( 2014 - $11,515,000 ; 2013 - $8,281,000 ) which are recorded in revenue. The amount due to Belmond from its Peruvian joint ventures at December 31, 2015 was $7,285,000 ( 2014 - $7,728,000 ). Belmond managed, under long-term contract, the Hotel Ritz by Belmond, in which Belmond had a 50% ownership interest. For the year ended December 31, 2015 , Belmond earned $328,000 ( 2014 - $1,111,000 ; 2013 - $1,016,000 ) in management fees from the Hotel Ritz by Belmond which are recorded in revenue, and $301,000 ( 2014 - $904,000 ; 2013 - $684,000 ) in interest income. The amount due to Belmond from the Hotel Ritz by Belmond at December 31, 2015 was $Nil ( 2014 - $30,371,000 ). On May 21, 2015, Belmond sold its ownership interest in Hotel Ritz by Belmond. See Note 6. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Schedule II—Valuation and Qualifying Accounts Column A Column B Column C Column D Column E Additions Balance at beginning of period Charged to costs and expenses Charged to Deductions Balance at end of period Description $ $ $ $ $ Year ended December 31, 2015 Allowance for doubtful accounts 425,000 92,000 (61,000 ) (2) (165,000 ) (1) 291,000 Valuation allowance on deferred tax assets 91,462,000 16,320,000 (37,854,000 ) (3) — 69,928,000 Year ended December 31, 2014 Allowance for doubtful accounts 563,000 47,000 (90,000 ) (2) (95,000 ) (1) 425,000 Valuation allowance on deferred tax assets 110,780,000 4,573,000 (23,891,000 ) (3) — 91,462,000 Year ended December 31, 2013 Allowance for doubtful accounts 472,000 200,000 9,000 (2) (118,000 ) (1) 563,000 Valuation allowance on deferred tax assets 97,376,000 13,015,000 389,000 (3) — 110,780,000 (1) Bad debts written off, net of recoveries. (2) Foreign currency translation adjustments. (3) This amount was charged to income tax expense, but is fully offset by the income tax benefit generated when recording the corresponding deferred tax asset. |
Summary of significant accoun37
Summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and reflect the results of operations, financial position and cash flows of the Company and all its majority-owned subsidiaries and variable interest entities in which Belmond is the primary beneficiary. The consolidated financial statements have been prepared using the historical basis in the assets and liabilities and the historical results of operations directly attributable to Belmond, and all intercompany accounts and transactions between the Company and its subsidiaries have been eliminated. For entities where the Company does not have a controlling financial interest, the investments in those entities are accounted for using the equity or cost method, as appropriate. |
Reclassifications | Reclassifications Discontinued operations and assets and liabilities held for sale were reclassified in the consolidated financial statements for all periods presented. See Note 4 for a summary of the results of discontinued operations and assets and liabilities held for sale. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents include all cash balances and highly-liquid investments having original maturities of three months or less. |
Restricted cash | Restricted cash Restricted cash is the carrying amount of cash and cash equivalents which are bindingly restricted as to withdrawal or usage. These include deposits held as compensating balances against borrowing arrangements or under contracts entered into with others, but exclude compensating balance arrangements that do not legally restrict the use of cash amounts shown on the balance sheet. |
Concentration of credit risk | Concentration of credit risk Due to the nature of the leisure industry, concentration of credit risk with respect to trade receivables is limited. Belmond’s customer base consists of numerous customers across different geographic areas. |
Inventories | Inventories Inventories include food, beverages, certain operating stocks and retail goods. Inventories are valued at the lower of cost or market value under the weighted average or first-in, first-out method. |
Assets held for sale and discontinued operations | Assets held for sale and discontinued operations Assets held for sale represent assets of an operating entity that are to be disposed of, together as a group in a single transaction, and liabilities directly associated with the assets that will be transferred in the transaction. Belmond considers properties to be assets held for sale when management approves and commits to a formal plan actively to market a property for sale and Belmond has a signed sales contract and received a significant non-refundable deposit. Upon designation as an asset held for sale, Belmond records the carrying value of each property at the lower of its carrying value which includes allocable segment goodwill or its estimated fair value, less estimated costs to sell, and Belmond stops recording depreciation expense. Where there is no significant ongoing involvement, the gain from the sale is recorded at the date of sale. The results of operations of an entity that either has been disposed of or is classified as held for sale are reported in discontinued operations where the operations and cash flows of the entity will be eliminated from continuing operations as a result of the disposal transaction and Belmond will not have any significant continuing involvement in the operations of the entity after the disposal transaction. |
Property, plant and equipment | Property, plant and equipment Property, plant and equipment is stated at cost less accumulated depreciation. The cost of significant renewals and betterments is capitalized and depreciated, while expenditures for normal maintenance and repairs are expensed as incurred. Depreciation expense is computed using the straight-line method over the following estimated useful lives: Description Useful lives Buildings Up to 60 years and 10% residual value Trains Up to 75 years River cruise ship and canal boats 25 years Furniture, fixtures and equipment 3 to 25 years Equipment under capital lease and leasehold improvements Lesser of initial lease term or economic life Land and certain art and antiques are not depreciated. |
Impairment of long-lived assets | Impairment of long-lived assets Belmond management evaluates the carrying value of long-lived assets for impairment by comparing the expected undiscounted future cash flows of the assets to the net book value of the assets if certain trigger events occur. If the expected undiscounted future cash flows are less than the net book value of the assets, the excess of the net book value over the estimated fair value is charged to current earnings. Fair value is based upon discounted cash flows of the assets at a rate deemed reasonable for the type of asset and prevailing market conditions, sales of similar assets, appraisals and, if appropriate, current estimated net sales proceeds from pending offers. Belmond evaluates the carrying value of long-lived assets based on its plans, at the time, for those assets and such qualitative factors as future development in the surrounding area, status of expected local competition and projected incremental income from renovations. Changes to Belmond’s plans, including a decision to dispose of or change the intended use of an asset, can have a material impact on the carrying value of the asset. |
Investments | Investments Investments include equity interests in and advances to unconsolidated companies and are accounted for under the equity method of accounting when Belmond has a 20% to 50% ownership interest or exercises significant influence over the investee. Under the equity method, the investment in the equity method investee or joint venture is initially recognized in the consolidated balance sheet at cost and adjusted thereafter to recognize Belmond’s share of net earnings or losses and other comprehensive income or loss of the investee. Belmond continues to report losses up to its investment carrying amount, including any additional financial support made or committed to by Belmond. Belmond’s share of earnings or losses is included in the determination of net earnings, and net investment in investees and joint ventures is included within investments in unconsolidated companies in the consolidated balance sheets. Investments accounted for using the equity method are considered impaired when a loss in the value of the equity method investment is other than temporary. Evidence of a loss in value might include, but would not necessarily be limited to, absence of an ability to recover the carrying amount of the investment or inability of the investee to sustain its earnings capacity that would justify the carrying amount of the investment. If Belmond determines that the decline in value of its investment is other than temporary, the carrying amount of the investment is written down to its fair value through earnings. |
Goodwill | Goodwill Goodwill is not amortized but is tested for impairment at least annually or more frequently if events or circumstances indicate that it is more likely than not that the fair value of a reporting unit is less than its carrying value. Belmond's annual goodwill impairment testing date is October 1. To test goodwill for impairment, Belmond first compares the carrying value of each reporting unit to its fair value to determine if an impairment is indicated. The fair value of reporting units is determined using internally developed discounted future cash flow models, which incorporate third party appraisals and industry/market data (to the extent available). If an impairment is indicated, Belmond compares the implied fair value of the reporting unit's goodwill to its carrying amount. An impairment loss is measured as the excess of the carrying value of a reporting unit's goodwill over its implied fair value. When determining the fair value of a reporting unit, Belmond is required to make significant judgments that Belmond believes are reasonable and supportable considering all available internal and external evidence at the time. However, these estimates and assumptions are, by their nature, highly judgmental. Fair value determinations are sensitive to changes in the underlying assumptions and factors including those relating to estimating future operating cash flows to be generated from the reporting unit which are dependent upon internal forecasts and projections developed as part of Belmond’s routine, long-term planning process, available industry/market data (to the extent available), Belmond’s strategic plans, estimates of long-term growth rates taking into account Belmond’s assessment of the current economic environment and the timing and degree of any economic recovery, estimation of the useful life over which the cash flows will occur, and market participant assumptions. The assumptions with the most significant impact to the fair value of the reporting unit are those related to future operating cash flows which are forecast for a five -year period from management’s budget and planning process, the terminal value which is included for the period beyond five years from the balance sheet date based on the estimated cash flow in the fifth year and a terminal growth rate ranging from 2.7% to 7.4% ( December 31, 2014 - 3.2% to 7.8% ), and pre-tax discount rates which for the year ended December 31, 2015 range from 8.3% to 16.9% ( December 31, 2014 - 9.2% to 17.3% ). Examples of events or circumstances that could reasonably be expected to negatively affect the underlying key assumptions and ultimately impact the estimated fair values of Belmond’s reporting units may include such items as (i) a prolonged weakness in the general economic conditions in which the reporting units operate and therefore negatively impacting occupancy and room rates, (ii) an economic recovery that significantly differs from Belmond’s assumptions in timing and/or degree, (iii) volatility in the equity and debt markets which could result in a higher discount rate, (iv) shifts or changes in future travel patterns from the Belmond’s significant demographic markets that have not been anticipated, (v) changes in competitive supply, (vi) political and security instability in countries where Belmond operates and (vii) deterioration of local economies due to the uncertainty over currencies or currency unions and other factors which could lead to changes in projected cash flows of Belmond’s properties as customers reduce their discretionary spending. If the assumptions used in the impairment analysis are not met or materially change, Belmond may be required to recognize additional goodwill impairment losses which may be material to the financial statements. |
Other intangible assets | Other intangible assets Trade names have an indefinite life and therefore are not amortized, but are assessed for impairment annually or when events indicate that impairment may have occurred. Other intangible assets with indefinite useful lives are tested for impairment annually or more frequently if events or changes in circumstances indicate that the asset may be impaired. Belmond uses internally developed discounted future cash flow models in determining the fair value of indefinite-lived intangible assets. Favorable lease intangible assets are amortized over the terms of the leases, which are between 19 and 60 years . Internet sites are amortized over a period of five to ten years . |
Variable interest entities | Variable interest entities Belmond analyzes its variable interests, including loans, guarantees and equity investments, to determine if an entity is a variable interest entity (“VIE”). In that assessment, Belmond's analysis includes both quantitative and qualitative considerations. Belmond bases its quantitative analysis on the forecast cash flows of the entity, and its qualitative analysis on a review of the design of the entity, organizational structure including decision-making ability, and relevant financial agreements. Belmond also uses its quantitative and qualitative analysis to determine if Belmond is the primary beneficiary and would therefore be required to consolidate the VIE. |
Fair value measurements | Fair value measurements Assets and liabilities carried at fair value are required to be classified and disclosed in one of three categories: Level 1 — Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date, Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, and Level 3 — unobservable inputs for the asset or liability. Belmond reviews its fair value hierarchy classifications quarterly. Changes in significant observable valuation inputs identified during these reviews may trigger reclassification of fair value hierarchy levels of financial assets and liabilities. These reclassifications are reported as transfers at their fair values at the beginning of the period in which the change occurs and as transfers out at their fair values at the end of the period. Derivatives are recorded in the consolidated balance sheets at fair value. The fair value of Belmond’s derivative financial instruments is computed based on an income approach using appropriate valuation techniques including discounting future cash flows and other methods that are consistent with accepted economic methodologies for pricing financial instruments. The valuation process for the derivatives uses observable market data provided by third-party sources. Interest rate swaps are valued by using yield curves derived from observable interest rates to project future swap cash flows and then these cash flows are discounted back to present values. Interest rate caps are valued using a model that projects the probability of various levels of interest rates occurring in the future using observable volatilities. In the determination of fair value of derivative instruments, a credit valuation adjustment is applied to Belmond’s derivative exposures to take into account the risk of the counterparty defaulting with the derivative in an asset position and, when the derivative is in a liability position, the risk that Belmond may default. The credit valuation adjustment is calculated by determining the total expected exposure of the derivatives (incorporating both the current and potential future exposure) and then applying each counterparty’s credit spread to the applicable exposure. For interest rate swaps, Belmond’s own credit spread is applied to the counterparty’s exposure to Belmond and the counterparties credit spread is applied to Belmond’s exposure to the counterparty, and then the net credit valuation adjustment is reflected in the determination of the fair value of the derivative instrument. The credit spreads used as inputs in the fair value calculations represent implied credit default swaps obtained from a third-party credit data provider. Some of the inputs into the credit valuation adjustment are not observable and, therefore, they are considered to be Level 3 inputs. Where the credit valuation adjustment exceeds 20% of the fair value of the derivatives, Level 3 inputs are assumed to have a significant impact on the fair value of the derivatives in their entirety and the derivative is classified as Level 3. |
Derivative financial instruments | Derivative financial instruments Derivative instruments are recorded on the consolidated balance sheets at fair value. The effective portion of changes in the fair value of derivatives designated and qualifying as cash flow hedges is recorded in other comprehensive income/(loss) and is subsequently reclassified into earnings in the period that the hedged forecast transaction affects earnings. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. If a derivative instrument is not designated as a hedge for accounting purposes, the fluctuations in the fair value of the derivative are recorded in earnings. Belmond management formally documents all relationships between hedging instruments and hedged items, as well as its risk management objectives and strategies for undertaking various hedge transactions. Belmond links all hedges that are designated as fair value hedges to specific assets or liabilities on the consolidated balance sheets or to specific firm commitments. Belmond links all hedges that are designated as cash flow hedges to forecasted transactions or to floating rate liabilities on the balance sheets. Belmond management also assesses, both at the inception of the hedge and on an ongoing basis, whether the derivatives that are designated in hedging relationships are highly effective in offsetting changes in fair values or cash flows of hedged items. Belmond discontinues hedge accounting prospectively when the derivative is not highly effective as a hedge, the underlying hedged transaction is no longer probable, or the hedging instrument expires, is terminated, or exercised. Belmond is exposed to interest rate risk on its floating rate debt and management uses derivatives to manage the impact of interest rate changes on earnings and cash flows. Belmond’s objective in using interest rate derivatives is to add certainty and stability to its interest expense. To accomplish this objective, Belmond primarily uses interest rate swaps as part of its interest rate risk management strategy. These swaps effectively convert the floating rate interest payments on a portion of the outstanding debt into fixed payments. Hedges of net investments in foreign operations are accounted for similarly to cash flow hedges. Any gain or loss on the hedging instrument relating to the effective portion of the hedge is recorded in other comprehensive income/(loss) within foreign currency translation adjustment. The gain or loss relating to the ineffective portion will be recognized immediately in earnings within foreign currency, net. Gains and losses deferred in accumulated other comprehensive income/(loss) are recognized in earnings upon disposal of the foreign operation. Belmond links all hedges that are designated as net investment hedges to specifically identified net investments in foreign subsidiaries. Belmond has net assets denominated in a variety of currencies. It hedges the U.S. dollar value of euro net assets by using net investment hedges. |
Pensions | Pensions Belmond’s primary defined benefit pension plan is accounted for using actuarial valuations. Net funded status is recognized on the consolidated balance sheets and any unrecognized prior service costs or actuarial gains and losses are reported as a component of other comprehensive income/(loss) in shareholders’ equity. In determining the expected long-term rate of return on assets, management has reviewed anticipated future long-term performance of individual asset classes and the appropriate asset allocation strategy given the anticipated requirements of the plan to determine the average rate of earnings expected on the funds invested. The projected returns are based on broad equity and bond indices, including fixed interest rate gilts (United Kingdom Government issued securities) of long-term duration since the plan operates in the U.K. Management continues to monitor and evaluate the level of pension contributions based on various factors that include investment performance, actuarial valuation and tax deductibility. |
Share-based compensation | Share-based compensation Equity-settled transactions The cost of equity-settled transactions with employees is measured by reference to the fair value at the date on which equity instruments are granted and is recognized as an expense over the vesting period, which ends on the date on which the relevant employees become fully entitled to the award. Estimates of the grant date fair value of share options and the fair value of deferred shares and restricted shares without performance criteria on the grant date were made using the Black-Scholes option pricing model, and estimates of the grant date fair value of deferred shares with performance criteria and market conditions were made using the Monte Carlo valuation model. For awards with market conditions, the conditions are incorporated into the fair value measurement and the compensation value is not adjusted if the conditions are not met. For awards with performance conditions, compensation expense is recognized when it becomes probable that the performance criteria specified in the awards will be achieved and, accordingly, the compensation value is adjusted following the changes in the estimates of shares likely to vest based on the performance criteria. Expected volatilities are based on historical volatility of the Company’s class A common share price and other factors. The risk-free rate for periods within the expected life is based on the U.S. Treasury yield curve in effect at the time of grant. The expected life represents the period that share-based awards are expected to be outstanding and was determined using historical experience, giving consideration to the contractual terms of the share-based awards and vesting schedules. At each balance sheet date before the share-based award vests, the cumulative expense is calculated, representing the extent to which the vesting period has expired and management’s best estimate of the achievement or otherwise of non-market conditions and the number of equity instruments that will ultimately vest or, in the case of an instrument subject to a market condition, be treated as vesting as described above. The movement in cumulative expense since the previous balance sheet date is recognized in the consolidated statements of operations, with a corresponding entry in equity. Previously recognized compensation cost is not reversed if an employee share option for which the requisite service has been rendered expires unexercised (or unconverted). If stock options are forfeited, then the compensation expense accrued is reversed. Belmond does not estimate a future forfeitures rate and does not incorporate it into the grant value on issue of the awards on the grounds of materiality. The forfeitures are recorded on date of occurrence. |
Estimates | Estimates Belmond bases its estimates on historical experience and also on assumptions that Belmond believes are reasonable based on the relevant facts and circumstances of the estimate. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates include, among others, the allowance for doubtful accounts, fair value of derivative instruments, estimates for determining the fair value of goodwill, long-lived and other intangible asset impairment, share-based compensation, depreciation and amortization, carrying value of assets including intangible assets, employee benefits, taxes, and contingencies. Actual results may differ from those estimates. |
Revenue recognition | Revenue recognition Hotel and restaurant revenue is recognized when the rooms are occupied and the services are performed. Train and cruise revenue is recognized upon commencement of the journey. Revenue under management contracts is recognized based upon on an agreed base fee and additional revenue is recognized on the attainment of certain financial results, primarily revenue and operating earnings, in each contract as defined. |
Deferred revenue | Deferred revenue consisting of deposits paid in advance is recognized as revenue when the services are performed for hotels and restaurants and upon commencement of train and cruise journeys. |
Marketing costs | Marketing costs Marketing costs are expensed as incurred, and are reported in selling, general and administrative expenses. Marketing costs include costs of advertising and other marketing activities. |
Interest expense | Interest expense Capitalized interest during the construction of qualifying assets is capitalized and included in the cost of the asset. Direct and incremental costs incurred in obtaining loans or in connection with the issuance of long-term debt are deferred and amortized to interest expense over the term of the related debt. |
Foreign currency | Foreign currency The functional currency for each of Belmond’s operating subsidiaries is the applicable local currency, except for properties in French West Indies, Peru, Cambodia, Myanmar and one property in Mexico, where the functional currency is U.S. dollars. For foreign subsidiaries with a functional currency other than the U.S. dollar, income and expenses are translated into U.S. dollars, the reporting currency of Belmond, at the average rates of exchange prevailing during the year. The assets and liabilities are translated into U.S. dollars at the rates of exchange on the balance sheet date and the related translation adjustments are included in other comprehensive income/(loss). Translation adjustments arising from intercompany financing of a subsidiary that is considered to be long-term in nature are also recorded in other comprehensive income/(loss) as they are considered part of the net investment in the subsidiary. Transactions in currencies other than an entity’s functional currency (foreign currencies) are recorded at the exchange rates prevailing on the dates of the transactions. All monetary assets and liabilities denominated in foreign currencies are translated at the exchange rates prevailing at the reporting date. Non-monetary items carried at historical cost are translated at the exchange rate prevailing on the date of transaction. Exchange differences arising from changes in exchange rates are recognized in earnings as they occur. Prior to 2014, Belmond’s Brazilian operations used the U.S. dollar as their functional currency. Effective January 1, 2014, Belmond changed the functional currency to the Brazilian real. Belmond believes that the growth in the Brazilian operations’ real-denominated revenues and expenses indicated a change in the economic facts and circumstances that justified the change in the functional currency. A foreign currency translation adjustment loss of $49,356,000 arising on the remeasurement of non-monetary assets and liabilities of Belmond’s Brazilian operations, of which the majority related to property, plant and equipment, is included in other comprehensive losses for the year ended December 31, 2014. |
Income taxes | Income taxes Belmond accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of transactions and events that have been recognized in the financial statements but have not yet been reflected in Belmond’s income tax returns, or vice versa. Deferred income taxes result from temporary differences between the carrying value of assets and liabilities recognized for financial reporting purposes and their respective tax bases. Deferred taxes are measured at enacted statutory rates and are adjusted in the period enacted rates change. Prior to 2015, classification of deferred tax assets and liabilities corresponded with the classification of the underlying assets and liabilities giving rise to the temporary differences or the period of expected reversal, as applicable. In 2015 Belmond adopted new guidance whereby all deferred tax assets and liabilities are classified as non-current. A valuation allowance is established, when necessary, to reduce deferred tax assets to the amount that is more likely than not to be realized based on available evidence. In evaluating Belmond’s ability to recover deferred tax assets within the jurisdiction in which they arise, management considers all available evidence, both positive and negative, which includes reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent financial operations. Management reassesses the need for valuation allowances at each reporting date. Any increase or decrease in a valuation allowance will increase or reduce respectively the income tax expense in the period in which there has been a change in judgment. |
Uncertain tax positions | Income tax positions must meet a more-likely-than-not threshold to be recognized in the financial statements. Management recognizes tax liabilities in accordance with ASC 740 applicable to uncertain tax positions, and adjusts these liabilities when judgment changes as a result of the evaluation of new information not previously available. Due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from Belmond’s estimate of the tax liabilities. These differences will be reflected as increases or decreases to income tax expense in the period in which the new information becomes available, actual tax liabilities are determined or the statute of limitations has expired. Belmond recognizes interest and penalties related to unrecognized tax benefits within the income tax expense line in the consolidated statements of operations. Liabilities for uncertain tax benefits are included in the consolidated balance sheets and classified as current or non-current liabilities depending on the expected timing of payment. |
Earnings from unconsolidated companies | Earnings from unconsolidated companies Earnings from unconsolidated companies include Belmond’s share of the net earnings of its equity investments. |
Earnings per share | Earnings per share Basic earnings per share are based upon net earnings/(losses) attributable to Belmond divided by the weighted average number of class A and B common shares outstanding for the period. Diluted earnings/(losses) per share reflect the increase in shares using the treasury stock method to reflect the impact of an equivalent number of shares as if share options were exercised and share-based awards were converted into common shares. Potentially dilutive shares are excluded when the effect would be to increase diluted earnings per share or reduce diluted losses per share. |
Accounting pronouncements adopted during the year and accounting pronouncements to be adopted | Accounting pronouncements adopted during the year In April 2014, the FASB issued guidance that amends the definition of a discontinued operation and requires entities to provide additional disclosures about disposal transactions. The revised guidance changes how entities identify and disclose information about disposal transactions. The guidance is effective prospectively for all disposals (except disposals classified as held for sale before the adoption date) or components initially classified as held for sale in periods beginning on or after December 15, 2014, with early adoption permitted. The adoption of this guidance did not have a material effect on Belmond's consolidated financial position, results of operations and cash flows. In April 2015, the FASB issued new guidance which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. The standard does not otherwise affect the recognition and measurement of debt issuance costs, which would continue to be calculated using the interest method and be reported as interest expense. Additionally, the other areas of U.S. GAAP that prescribe the accounting treatment for third-party debt issuance costs will not be affected. The guidance is effective for annual and interim periods beginning after December 15, 2015, with early adoption permitted for financial statements that have not been previously issued. Belmond has adopted this guidance as of December 31, 2015 and debt issuance costs previously included in Other assets on the consolidated balance sheets have been reclassified accordingly. Debt issuance costs included in Long-term debt on the consolidated balance sheets were $11,701,000 at December 31, 2015 ( December 31, 2014 - $13,095,000 ). In November 2015, the FASB issued new guidance which requires entities to present deferred tax assets ("DTAs") and deferred tax liabilities ("DTLs") as non-current in a classified balance sheet, in a simplification of the current guidance which requires entities to separately present DTAs and DTLs as current or non-current in a classified balance sheet. Netting of DTAs and DTLs by tax jurisdiction is still required under the new guidance. The guidance is effective for annual and interim periods beginning after December 15, 2016, with early adoption permitted. The amendments may be applied either prospectively or retrospectively. Belmond has adopted this guidance as of December 31, 2015. Prior periods were not retrospectively adjusted. Accounting pronouncements to be adopted In May 2014, the FASB issued new guidance which is intended to improve the comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets. The guidance supersedes existing revenue recognition guidance and requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Entities will have the option of using either a full retrospective approach or a modified approach to adopt the new guidance. The guidance was originally effective for annual and interim periods beginning after December 15, 2016, however in July 2015 the FASB confirmed that the effective date would be deferred by one year, to apply to annual and interim periods beginning after December 15, 2017. Early adoption is permitted for annual reporting periods beginning after December 15, 2016. Belmond is currently evaluating the impact of the adoption of this guidance on its consolidated financial statements. In August 2014, the FASB issued new guidance on determining when and how reporting entities must disclose going-concern uncertainties in their financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date of issuance of the entity’s financial statements. Further, an entity must provide certain disclosures if there is “substantial doubt about the entity’s ability to continue as a going concern”. The guidance is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. Belmond is assessing what impact, if any, the adoption of this guidance will have on its disclosures. In February 2015, the FASB issued new guidance which amends consolidation requirements and changes the analysis required in relation to variable interest entities and whether or not these entities should be consolidated, particularly considerations regarding limited partnerships, fees paid to decision makers or service providers, related parties and whether equity holders have power over the entity. The guidance is effective for annual and interim periods beginning after December 15, 2015, with early adoption permitted. Belmond does not expect the adoption of this guidance to have a material effect on its consolidated financial position, results of operations and cash flows. |
Segment reporting | Segment performance is evaluated by the chief operating decision maker based upon segment earnings before gains/(losses) on disposal, impairments, central overheads, interest income, interest expense, foreign currency, tax (including tax on earnings from unconsolidated companies), depreciation and amortization (“segment profit”). Belmond's operating segments are aggregated into six reportable segments primarily around the type of service being provided—hotels, trains and cruises, and management business/part ownership interests—and are secondarily organized by geography for the hotels, as follows: • Owned hotels in each of Europe, North America and Rest of world which derive earnings from the hotels that Belmond owns including its one stand-alone restaurant; • Part-owned/managed hotels which derive earnings from hotels that Belmond jointly owns or manages; • Owned trains and cruises which derive earnings from the train and cruise businesses that Belmond owns; and • Part-owned/managed trains which derive earnings from the train businesses that Belmond jointly owns or manages. |
Summary of significant accoun38
Summary of significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Property, Plant and Equipment | Depreciation expense is computed using the straight-line method over the following estimated useful lives: Description Useful lives Buildings Up to 60 years and 10% residual value Trains Up to 75 years River cruise ship and canal boats 25 years Furniture, fixtures and equipment 3 to 25 years Equipment under capital lease and leasehold improvements Lesser of initial lease term or economic life The major classes of property, plant and equipment are as follows: 2015 2014 December 31, $’000 $’000 Land and buildings 994,382 1,069,846 Machinery and equipment 182,510 194,155 Furniture, fixtures and equipment 225,943 224,270 River cruise ship and canal boats 18,773 18,924 1,421,608 1,507,195 Less: Accumulated depreciation (343,247 ) (338,438 ) Total property, plant and equipment, net of accumulated depreciation 1,078,361 1,168,757 |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share, basic and diluted | The calculation of basic and diluted earnings per share including a reconciliation of the numerator and denominator is as follows: Year ended December 31, 2015 2014 2013 Numerator ($'000) Net earnings/(losses) from continuing operations 17,388 2,047 (26,178 ) Net earnings/(losses) from discontinued operations (1,534 ) (3,782 ) (5,318 ) Net losses/(earnings) attributable to non-controlling interests 411 (145 ) (63 ) Net earnings/(losses) attributable to Belmond Ltd. 16,265 (1,880 ) (31,559 ) Denominator (shares '000) Basic weighted average shares outstanding 103,163 103,837 103,226 Effect of dilution 1,193 2,291 — Diluted weighted average shares outstanding 104,356 106,128 103,226 $ $ $ Basic earnings per share Net earnings/(losses) from continuing operations 0.169 0.020 (0.254 ) Net earnings/(losses) from discontinued operations (0.015 ) (0.036 ) (0.052 ) Net losses/(earnings) attributable to non-controlling interests 0.004 (0.001 ) (0.001 ) Net earnings/(losses) attributable to Belmond Ltd. 0.158 (0.017 ) (0.307 ) Diluted earnings per share Net earnings/(losses) from continuing operations 0.167 0.019 (0.254 ) Net earnings/(losses) from discontinued operations (0.015 ) (0.036 ) (0.052 ) Net losses/(earnings) attributable to non-controlling interests 0.004 (0.001 ) (0.001 ) Net earnings/(losses) attributable to Belmond Ltd. 0.156 (0.018 ) (0.307 ) |
Schedule of antidilutive securities excluded from computation of earnings per share | The total number of share options and share-based awards excluded from computing diluted earnings per share were as follows: Year ended December 31, 2015 2014 2013 Share options 1,441,972 810,500 3,058,300 Share-based awards — — 1,481,827 Total 1,441,972 810,500 4,540,127 |
Assets held for sale and disc40
Assets held for sale and discontinued operations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Net assets sold and gain on sale, summarized operating results of discontinued operations and assets and liabilities held for sale | The following is a summary of net assets sold and the gain recorded on sale for Inn at Perry Cabin by Belmond and Porto Cupecoy: Year ended December 31, 2014 2013 Inn at Perry Cabin by Belmond Porto Cupecoy March 21, January 31, $'000 $'000 Property, plant & equipment 32,293 38 Real estate assets — 18,512 Net working capital (deficit)/surplus (820 ) — Net assets 31,473 18,550 Transfer of foreign currency translation loss/(gain) — — 31,473 18,550 Consideration: Cash 25,680 19,000 Reduction in debt facility on sale of hotel 11,020 — Key money retained by buyer 3,000 — Less: Working capital adjustment (1,130 ) (11 ) Less: Costs to sell (393 ) — 38,177 18,989 Gain on sale 6,704 439 Summarized results of the properties classified as discontinued operations for the years ended December 31, 2015 , 2014 and 2013 are as follows: Year ended December 31, 2015 Ubud Hanging Gardens Porto Cupecoy Total $'000 $'000 $'000 Revenue — — — Losses before tax, gain on sale and impairment (636 ) (898 ) (1,534 ) Losses before tax (636 ) (898 ) (1,534 ) Net losses from discontinued operations (636 ) (898 ) (1,534 ) Year ended December 31, 2014 Ubud Hanging Gardens Porto Cupecoy Total $'000 $'000 $'000 Revenue — 600 600 Losses before tax, gain on sale and impairment (1,486 ) (1,583 ) (3,069 ) Losses before tax (1,486 ) (1,583 ) (3,069 ) Tax provision (713 ) — (713 ) Net losses from discontinued operations (2,199 ) (1,583 ) (3,782 ) Year ended December 31, 2013 Ubud Hanging Gardens Porto Cupecoy The Westcliff Keswick Hall Total $'000 $'000 $'000 $'000 $'000 Revenue 5,124 1,932 — — 7,056 Earnings/(losses) before tax, gain on sale and impairment 591 (3,228 ) — — (2,637 ) Impairment (7,031 ) — — — (7,031 ) Gain on sale — 439 — — 439 Losses before tax (6,440 ) (2,789 ) — — (9,229 ) Tax benefit 1,838 — 1,425 648 3,911 Net (losses)/earnings from discontinued operations (4,602 ) (2,789 ) 1,425 648 (5,318 ) |
Variable interest entities (Tab
Variable interest entities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of variable interest entities | The carrying amounts and maximum exposure to loss as a result of Belmond's involvement with its Eastern & Oriental Express joint venture are as follows: Carrying amounts Maximum exposure 2015 2014 2015 2014 December 31, $’000 $’000 $’000 $’000 Investment 2,972 3,251 2,972 3,251 Due from unconsolidated company 4,872 5,227 4,872 5,227 Guarantees — — — — Contingent guarantees — — — — Total 7,844 8,478 7,844 8,478 |
Investments in unconsolidated42
Investments in unconsolidated companies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summarized financial data for unconsolidated companies | The following table shows the net proceeds to Belmond and a summary of net assets sold, resulting in a gain of $19,676,000 that is reported within gain on disposal of property, plant and equipment and equity method investments in the statements of consolidated operations: Hotel Ritz by Belmond May 21, $'000 Receivables due from unconsolidated companies 29,679 Investments in unconsolidated companies — Net assets sold 29,679 Transfer of foreign currency translation gain (5,613 ) 24,066 Consideration: Cash 42,197 Less: Costs to sell (747 ) Plus: Management contract termination fee 2,292 43,742 Gain on sale 19,676 Summarized financial data for Belmond’s unconsolidated companies are as follows: 2015 2014 December 31, $’000 $’000 Current assets 59,372 52,289 Property, plant and equipment, net of accumulated depreciation 207,469 340,546 Other non-current assets 30,643 36,249 Non-current assets 238,112 376,795 Total assets 297,484 429,084 Current liabilities, including $19,171 and $96,824 current portion of third-party debt 86,092 157,273 Long-term debt 48,681 25,346 Other non-current liabilities 26,540 125,210 Non-current liabilities 75,221 150,556 Total shareholders’ equity 136,171 121,255 Total liabilities and shareholders’ equity 297,484 429,084 2015 2014 2013 Year ended December 31, $’000 $’000 $’000 Revenue 160,614 172,793 168,839 Gross profit 1 104,708 105,333 91,357 Net earnings 2 17,723 19,622 13,549 1 Gross profit is defined as revenues less cost of services of the unconsolidated companies. 2 There were no discontinued operations, extraordinary items or cumulative effects of a change in an accounting principle in the unconsolidated companies. |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of major classes of property plant and equipment | Depreciation expense is computed using the straight-line method over the following estimated useful lives: Description Useful lives Buildings Up to 60 years and 10% residual value Trains Up to 75 years River cruise ship and canal boats 25 years Furniture, fixtures and equipment 3 to 25 years Equipment under capital lease and leasehold improvements Lesser of initial lease term or economic life The major classes of property, plant and equipment are as follows: 2015 2014 December 31, $’000 $’000 Land and buildings 994,382 1,069,846 Machinery and equipment 182,510 194,155 Furniture, fixtures and equipment 225,943 224,270 River cruise ship and canal boats 18,773 18,924 1,421,608 1,507,195 Less: Accumulated depreciation (343,247 ) (338,438 ) Total property, plant and equipment, net of accumulated depreciation 1,078,361 1,168,757 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in carrying amount of goodwill | The changes in the carrying amount of goodwill for the years ended December 31, 2015 and 2014 are as follows: Beginning balance at January 1, 2015 Ending balance at December 31, 2015 Gross goodwill amount Accumulated impairment Net goodwill amount Impairment Foreign currency translation adjustment Gross goodwill amount Accumulated impairment Net goodwill amount Year ended December 31, 2015 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Owned hotels: Europe 71,292 (10,104 ) 61,188 (4,098 ) (7,029 ) 64,263 (14,202 ) 50,061 North America 66,101 (16,110 ) 49,991 — — 66,101 (16,110 ) 49,991 Rest of world 21,705 (8,113 ) 13,592 (5,036 ) (1,730 ) 19,975 (13,149 ) 6,826 Owned trains and cruises 7,873 — 7,873 (662 ) (93 ) 7,780 (662 ) 7,118 Total 166,971 (34,327 ) 132,644 (9,796 ) (8,852 ) 158,119 (44,123 ) 113,996 Beginning balance at January 1, 2014 Ending balance at December 31, 2014 Gross goodwill amount Accumulated impairment Net goodwill amount Impairment Foreign currency translation adjustment Gross goodwill amount Accumulated impairment Net goodwill amount Year ended December 31, 2014 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Owned hotels: Europe 87,885 (10,104 ) 77,781 — (16,593 ) 71,292 (10,104 ) 61,188 North America 66,101 (16,110 ) 49,991 — — 66,101 (16,110 ) 49,991 Rest of world 29,220 (8,113 ) 21,107 — (7,515 ) 21,705 (8,113 ) 13,592 Owned trains and cruises 8,037 — 8,037 — (164 ) 7,873 — 7,873 Total 191,243 (34,327 ) 156,916 — (24,272 ) 166,971 (34,327 ) 132,644 |
Other intangible assets (Tables
Other intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of finite-lived intangible assets | Other intangible assets consist of the following as of December 31, 2015 and 2014 : Favorable lease assets Internet sites Trade names Total $'000 $'000 $'000 $'000 Carrying amount: Balance at January 1, 2014 8,660 1,723 7,100 17,483 Additions — 269 — 269 Impairment — — — — Foreign currency translation adjustment (74 ) (104 ) — (178 ) Balance at December 31, 2014 8,586 1,888 7,100 17,574 Additions 714 — — 714 Impairment — — — — Foreign currency translation adjustment (807 ) (97 ) — (904 ) Balance at December 31, 2015 8,493 1,791 7,100 17,384 Accumulated amortization: Balance at January 1, 2014 2,268 1,063 3,331 Charge for the year 241 134 375 Foreign currency translation adjustment (23 ) (67 ) (90 ) Balance at December 31, 2014 2,486 1,130 3,616 Charge for the year 341 190 531 Foreign currency translation adjustment (555 ) (60 ) (615 ) Balance at December 31, 2015 2,272 1,260 3,532 Net book value: December 31, 2013 6,392 660 7,100 14,152 December 31, 2014 6,100 758 7,100 13,958 December 31, 2015 6,221 531 7,100 13,852 |
Schedule of indefinite-lived intangible assets | Other intangible assets consist of the following as of December 31, 2015 and 2014 : Favorable lease assets Internet sites Trade names Total $'000 $'000 $'000 $'000 Carrying amount: Balance at January 1, 2014 8,660 1,723 7,100 17,483 Additions — 269 — 269 Impairment — — — — Foreign currency translation adjustment (74 ) (104 ) — (178 ) Balance at December 31, 2014 8,586 1,888 7,100 17,574 Additions 714 — — 714 Impairment — — — — Foreign currency translation adjustment (807 ) (97 ) — (904 ) Balance at December 31, 2015 8,493 1,791 7,100 17,384 Accumulated amortization: Balance at January 1, 2014 2,268 1,063 3,331 Charge for the year 241 134 375 Foreign currency translation adjustment (23 ) (67 ) (90 ) Balance at December 31, 2014 2,486 1,130 3,616 Charge for the year 341 190 531 Foreign currency translation adjustment (555 ) (60 ) (615 ) Balance at December 31, 2015 2,272 1,260 3,532 Net book value: December 31, 2013 6,392 660 7,100 14,152 December 31, 2014 6,100 758 7,100 13,958 December 31, 2015 6,221 531 7,100 13,852 |
Debt and obligations under ca46
Debt and obligations under capital lease (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt and obligations under capital lease | Long-term debt and obligations under capital lease consists of the following: 2015 2014 December 31, $’000 $’000 Loans from banks and other parties collateralized by tangible and intangible personal property and real estate with a maturity of four to 13 years (2014 - five to 14 years), with a weighted average interest rate of 4.28% (2014 - 4.35%) 596,428 620,106 Obligations under capital lease 59 129 Total long-term debt and obligations under capital leases 596,487 620,235 Less: Current portion 5,349 5,549 Less: Discount on secured term loan 1,894 2,451 Less: Debt issuance costs 11,701 13,095 Non-current portion of long-term debt and obligations under capital lease 577,543 599,140 |
Summary of the aggregate maturities of long-term debt including obligations under capital lease | The following is a summary of the aggregate maturities of long-term debt, including obligations under capital lease, at December 31, 2015 : Year ended December 31, $’000 2016 5,349 2017 5,337 2018 5,338 2019 91,349 2020 5,364 2021 and thereafter 483,750 Total long-term debt and obligations under capital lease 596,487 |
Other liabilities (Tables)
Other liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of major balances in other liabilities | The major balances in other liabilities are as follows: 2015 2014 December 31, $’000 $’000 Interest rate swaps (see Note 21) 1,733 618 Long-term accrued interest on subordinated debt at Belmond Charleston Place 16,540 15,940 Deferred gain on sale of Inn at Perry Cabin by Belmond (see Note 4) 1,950 2,550 Deferred lease incentive 247 315 Accrued income tax — 2,118 Withholding tax provision classified as interest — 2,356 Total other liabilities 20,470 23,897 |
Pensions (Tables)
Pensions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of significant weighted average assumptions | The significant weighted-average assumptions used to determine net periodic costs of the plan during the year were as follows: 2015 2014 2013 Year ended December 31, % % % Discount rate 3.70 4.50 4.50 Expected long-term rate of return on plan assets 4.10 4.80 4.70 The significant weighted-average assumptions used to determine benefit obligations of the plan at year end were as follows: 2015 2014 December 31, % % Discount rate 3.85 3.70 |
Schedule of fair value of plan assets | The fair value of Belmond’s pension plan assets at December 31, 2015 and 2014 by asset category is as follows: Total Level 1 Level 2 Level 3 December 31, 2015 $’000 $’000 $’000 $’000 Cash 1,101 1,101 — — Equity securities: U.K. managed funds 5,509 5,509 — — Overseas managed funds 4,999 4,999 — — Fixed income securities: U.K. government bonds 860 860 — — Corporate bonds 5,847 5,847 — — Other types of investments: Quoted hedge funds 3,860 3,860 — — Annuities 2,026 — — 2,026 24,202 22,176 — 2,026 Total Level 1 Level 2 Level 3 December 31, 2014 $’000 $’000 $’000 $’000 Cash 744 744 — — Equity securities: U.K. managed funds 6,087 6,087 — — Overseas managed funds 5,524 5,524 — — Fixed income securities: U.K. government bonds 1,830 1,830 — — Corporate bonds 5,745 5,745 — — Other types of investments: Quoted hedge funds 2,852 2,852 — — Annuities 2,186 — — 2,186 24,968 22,782 — 2,186 |
Schedule of fair value measurements using significant unobservable inputs (Level 3) | Reconciliations of fair value measurements using significant unobservable inputs (Level 3) at December 31, 2015 and 2014 are as follows: Annuities Total Year ended December 31, 2015 $’000 $’000 Beginning balance at January 1, 2015 2,186 2,186 Foreign exchange (112 ) (112 ) Actual return on plan assets: Assets still held at the reporting date 25 25 Purchases, sales and settlements, net (73 ) (73 ) Transfers into or out of Level 3 — — Ending balance at December 31, 2015 2,026 2,026 Annuities Total Year ended December 31, 2014 $’000 $’000 Beginning balance at January 1, 2014 2,045 2,045 Foreign exchange (123 ) (123 ) Actual return on plan assets: Assets still held at the reporting date 339 339 Purchases, sales and settlements, net (75 ) (75 ) Transfers into or out of Level 3 — — Ending balance at December 31, 2014 2,186 2,186 |
Schedule of changes in the benefit obligation, the plan assets and funded status of the plan | The changes in the benefit obligation, the plan assets and the funded status for the plan were as follows: 2015 2014 2013 Year ended December 31, $’000 $’000 $’000 Change in benefit obligation: Benefit obligation at beginning of year 27,353 24,768 27,927 Service cost — — — Interest cost 984 1,092 1,200 Plan participants’ contributions — — — Net transfer in — — — Actuarial (gain)/loss (702 ) 3,680 (4,093 ) Benefits paid (1,723 ) (468 ) (573 ) Curtailment gain — — — Settlement — — — Foreign currency translation (1,356 ) (1,719 ) 307 Benefit obligation at end of year 24,556 27,353 24,768 Change in plan assets: Fair value of plan assets at beginning of year 24,968 23,162 19,652 Actual return on plan assets 309 1,821 1,665 Employer contributions 1,946 2,025 1,880 Plan participants’ contributions — — — Net transfer in — — — Benefits paid (1,723 ) (468 ) (573 ) Settlement — — — Foreign currency translation (1,298 ) (1,572 ) 538 Fair value of plan assets at end of year 24,202 24,968 23,162 Funded status at end of year (354 ) (2,385 ) (1,606 ) Net actuarial loss/(gain) recognized in other comprehensive loss (727 ) 2,449 (5,673 ) |
Schedule of amounts recognized in the consolidated balance sheets | Amounts recognized in the consolidated balance sheets consist of the following: 2015 2014 December 31, $’000 $’000 Non-current assets — — Current liabilities — — Non-current liabilities 354 2,385 |
Schedule of amounts recognized in other comprehensive income/(loss) | Amounts recognized in accumulated other comprehensive loss consist of the following: 2015 2014 December 31, $’000 $’000 Net loss (9,934 ) (10,661 ) Prior service cost — — Net transitional obligation — — Total amount recognized in other comprehensive loss (9,934 ) (10,661 ) |
Schedule of accumulated benefit obligations in excess of fair value of plan assets | The following table details certain information with respect to Belmond’s U.K. defined benefit pension plan: 2015 2014 Year ended December 31, $’000 $’000 Projected benefit obligation 24,556 27,353 Accumulated benefit obligation 24,556 27,353 Fair value of plan assets 24,202 24,968 |
Schedule of components of net periodic pension benefit cost | Components of net periodic benefit cost are as follows: 2015 2014 2013 Year ended December 31, $’000 $’000 $’000 Service cost — — — Interest cost on projected benefit obligation 984 1,092 1,200 Expected return on assets (1,034 ) (1,139 ) (926 ) Net amortization and deferrals 750 550 930 Net periodic benefit cost 700 503 1,204 |
Schedule of future benefit payments | The following benefit payments, which reflect assumed future service, are expected to be paid: Year ended December 31, $’000 2016 490 2017 583 2018 475 2019 675 2020 528 Next five years 4,589 |
Schedule of contributions to defined contribution pension plans | Total contributions to the plans were as follows: 2015 2014 2013 Year ended December 31, $’000 $’000 $’000 Employers’ contributions 2,199 2,527 2,542 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of provision for income taxes | The provision for income taxes consists of the following: Provision for income taxes Year ended December 31, 2015 Pre-tax Current Deferred Total UK (18,965 ) 1,585 (2,262 ) (677 ) Bermuda (4,315 ) — — — United States 1,439 1,310 1,698 3,008 Brazil 10,380 2,768 760 3,528 Italy 17,351 4,006 (824 ) 3,182 Peru 12,078 3,154 (677 ) 2,477 Rest of the world 7,386 4,341 1,182 5,523 25,354 17,164 (123 ) 17,041 Provision for income taxes Year ended December 31, 2014 Pre-tax Current Deferred Total UK (3,476 ) 535 (1,279 ) (744 ) Bermuda (25,702 ) — — — United States 312 1,867 (193 ) 1,674 Brazil 21,275 7,872 (447 ) 7,425 Italy 9,572 6,752 (1,738 ) 5,014 Peru 9,505 3,923 (1,652 ) 2,271 Rest of the world (3,381 ) 5,540 (5,638 ) (98 ) 8,105 26,489 (10,947 ) 15,542 Provision for income taxes Year ended December 31, 2013 Pre-tax Current Deferred Total UK 1,616 (410 ) (402 ) (812 ) Bermuda (17,696 ) — — — United States (3,955 ) (369 ) 100 (269 ) Brazil 13,912 6,598 (3,791 ) 2,807 Italy 20,313 4,753 4,390 9,143 Peru 8,670 3,361 (671 ) 2,690 Rest of the world (37,852 ) 3,236 833 4,069 (14,992 ) 17,169 459 17,628 |
Schedule of reconciliation of provision for income taxes | The reconciliation of earnings/(losses) before provision for income taxes and earnings from unconsolidated companies, net of tax at the statutory tax rate to the provision for income taxes is shown in the table below: 2015 2014 2013 Year ended December 31, $'000 $'000 $'000 Earnings/(losses) before provision for income taxes and earnings from unconsolidated companies, net of tax 25,354 8,105 (14,992 ) Tax charge at statutory tax rate of 15%, Nil% and Nil% (1) 3,803 — — Exchange rate movements on deferred tax (1,912 ) (3,680 ) (3,207 ) Notional interest deductions (1,867 ) (1,622 ) (1,075 ) Imputed cross border charges 716 — — Disallowable goodwill impairment charges 2,198 — — Other permanent disallowable expenditure/(income) 5,762 2,566 1,749 Unrecognized tax loss generated on disposal of Hotel Ritz by Belmond (16,029 ) — — Change in valuation allowance 16,320 4,573 13,015 Difference in taxation rates 12,948 15,089 7,353 Change in provisions for uncertain tax positions 279 545 (1,788 ) Change in tax rates (2) (5,121 ) (2,081 ) (276 ) Deferred tax charge for derivatives — — 2,119 Other (56 ) 152 (262 ) Provision for income taxes 17,041 15,542 17,628 (1) The Company migrated its tax residence to the United Kingdom on April 1, 2015, which has a statutory tax rate of 20%. Prior to that date, the Company was tax resident in Bermuda, which does not impose an income tax. The statutory tax rate of 15% represents the average statutory tax rate in the U.K. and Bermuda for 9 and 3 months, respectively, during the year ended December 31, 2015. (2) At December 31, 2015, future tax rate reductions in Italy and U.K. were enacted. The U.K. statutory tax rate was reduced to 19% from April 1, 2017 and 18% from April 1, 2020. In Italy, the corporate income tax (IRES) rate in respect of the year ended December 31, 2017, and subsequent periods, was reduced from 27.5% to 24%. |
Schedule of net deferred tax liabilities | The following summarizes Belmond’s net deferred tax assets and liabilities: 2015 2014 2013 Year ended December 31, $’000 $’000 $’000 Operating loss carry-forwards 89,513 111,779 122,500 Pensions 63 477 321 Share-based compensation 2,978 3,872 3,146 Trademarks — — 5,075 Other 8,952 11,559 9,173 Less: Valuation allowance (69,928 ) (91,462 ) (110,780 ) Net deferred tax assets 31,578 36,225 29,435 Other (7,427 ) (6,138 ) (7,962 ) Property, plant and equipment (147,265 ) (162,625 ) (183,174 ) Deferred tax liabilities (154,692 ) (168,763 ) (191,136 ) Net deferred tax liabilities (123,114 ) (132,538 ) (161,701 ) |
Schedule of unrecognized tax benefits | At December 31, 2013 , the total amounts of unrecognized tax benefits included the following: Total Principal Interest Penalties Year ended December 31, 2013 $’000 $’000 $’000 $’000 Balance, January 1, 2013 4,581 2,874 1,174 533 Additional uncertain tax provision identified during the year 2,720 2,716 (4 ) 8 Increase to uncertain tax provision on prior year positions 737 559 138 40 Uncertain tax provisions paid during the year (737 ) (559 ) (138 ) (40 ) Decrease to uncertain tax provisions on prior year positions (3,924 ) (2,302 ) (1,127 ) (495 ) Decreases as a result of expiration of the statute of limitations (387 ) (351 ) (36 ) — Foreign exchange (2 ) (2 ) — — Balance, December 31, 2013 2,988 2,935 7 46 At December 31, 2014 , the total amounts of unrecognized tax benefits included the following: Total Principal Interest Penalties Year ended December 31, 2014 $’000 $’000 $’000 $’000 Balance at January 1, 2014 2,988 2,935 7 46 Additional uncertain tax provision identified during the year 523 90 413 20 Increase to uncertain tax provision on prior year positions 49 49 — — Uncertain tax provisions paid during the year (49 ) (49 ) — — Decrease to uncertain tax provisions on prior year positions — — — — Decreases as a result of expiration of the statute of limitations (27 ) (20 ) (3 ) (4 ) Foreign exchange (47 ) (39 ) (1 ) (7 ) Balance at December 31, 2014 3,437 2,966 416 55 At December 31, 2015 , the total amounts of unrecognized tax benefits included the following: Total Principal Interest Penalties Year ended December 31, 2015 $’000 $’000 $’000 $’000 Balance, January 1, 2015 3,437 2,966 416 55 Additional uncertain tax provision identified during the year 78 62 7 9 Increase to uncertain tax provision on prior year positions 236 — 236 — Uncertain tax provisions paid during the year — — — — Decrease to uncertain tax provisions on prior year positions — — — — Decreases as a result of expiration of the statute of limitations (35 ) (30 ) (2 ) (3 ) Foreign exchange (38 ) (31 ) (1 ) (6 ) Balance at December 31, 2015 3,678 2,967 656 55 |
Interest expense (Tables)
Interest expense (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | |
Balances in interest expense | The balances in interest expense are as follows: 2015 2014 2013 Year ended December 31, $’000 $’000 $’000 Interest expense on long-term debt and obligations under capital lease 27,380 30,270 28,218 Withholding tax provision classified as interest (1,476 ) 2,576 — Interest on legal settlements 3,294 — — Amortization of debt issuance costs and discount on secured term loan 2,903 3,921 7,196 Interest capitalized — — (1,088 ) 32,101 36,767 34,326 |
Supplemental cash flow inform51
Supplemental cash flow information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of supplemental cash flow information | 2015 2014 2013 Year ended December 31, $’000 $’000 $’000 Cash paid during the period for: Interest 27,828 30,147 27,320 Income taxes, net of refunds 18,306 21,454 22,275 |
Restricted cash (Tables)
Restricted cash (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of major balances in restricted cash | The major balances in restricted cash are as follows: 2015 2014 December 31, $’000 $’000 Refundable and non-refundable cash deposits held with banks pending completion of asset sales — 500 Cash deposits required to be held with lending banks as collateral 749 768 Prepaid customer deposits which will be released to Belmond under its revenue recognition policy 1,909 647 Bonds and guarantees 659 758 Total restricted cash 3,317 2,673 |
Share-based compensation plans
Share-based compensation plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Share-based compensation plans | |
Awards made under the 2009 plan | During 2015 , the following share option awards were made under the 2009 share award and incentive plan on the following dates. Estimates of fair values of share options were made using the Black-Scholes options pricing model. 2009 share award and incentive plan Class A common shares Date granted Vesting date Exercise price Expected share price volatility Risk-free interest rate Expected dividends per share Expected life of awards Share options 117,508 December 11, 2015 December 11, 2019 $8.98 42% 1.56% $— 5.5 years Share options 117,509 December 11, 2015 December 11, 2018 $8.98 41% 1.56% $— 4.5 years Share options 117,509 December 11, 2015 December 11, 2017 $8.98 33% 1.16% $— 3.5 years Share options 117,509 December 11, 2015 December 11, 2016 $8.98 28% 1.16% $— 2.5 years Share options 24,041 September 20, 2015 September 20, 2019 $13.75 58% 1.83% $— 6.9 years Share options 24,041 September 20, 2015 September 20, 2018 $13.75 43% 1.45% $— 5.6 years Share options 24,041 September 20, 2015 September 20, 2017 $13.75 41% 1.45% $— 4.4 years Share options 24,042 September 20, 2015 September 20, 2016 $13.75 32% 0.97% $— 3.1 years Share options 48,319 June 19, 2015 June 19, 2019 $12.50 43% 1.59% $— 5.5 years Share options 48,319 June 19, 2015 June 19, 2018 $12.50 41% 1.59% $— 4.5 years Share options 48,318 June 19, 2015 June 19, 2017 $12.50 35% 0.99% $— 3.5 years Share options 48,318 June 19, 2015 June 19, 2016 $12.50 29% 0.65% $— 2.5 years During the year ended December 31, 2015 , the following deferred and restricted share awards were made under the 2009 share award and incentive plan on the following dates: 2009 share award and incentive plan Class A common shares Date granted Vesting date Purchase price Restricted shares without performance criteria 10,223 December 11, 2015 June 19, 2016 $0.01 Restricted shares without performance criteria 29,299 September 20, 2015 December 31, 2016 $0.01 Restricted shares without performance criteria 22,851 September 20, 2015 December 31, 2017 $0.01 Restricted shares without performance criteria 22,850 September 20, 2015 December 31, 2018 $0.01 Deferred shares without performance criteria 3,097 July 31, 2015 July 31, 2016 $0.01 Deferred shares without performance criteria 3,097 July 31, 2015 July 31, 2017 $0.01 Deferred shares without performance criteria 3,096 July 31, 2015 July 31, 2018 $0.01 Deferred shares without performance criteria 3,096 July 31, 2015 July 31, 2019 $0.01 Deferred shares without performance criteria 11,130 July 31, 2015 January 1, 2016 $0.01 Deferred shares without performance criteria 11,130 July 31, 2015 January 1, 2017 $0.01 Deferred shares without performance criteria 11,130 July 31, 2015 January 1, 2018 $0.01 Deferred shares without performance criteria 11,130 July 31, 2015 January 1, 2019 $0.01 Restricted shares without performance criteria 64,000 June 19, 2015 June 19, 2016 $0.01 Restricted shares without performance criteria 36,000 June 19, 2015 June 19, 2018 $0.01 Deferred shares with performance criteria 256,358 March 20, 2015 March 20, 2018 $0.01 Deferred shares without performance criteria 38,824 March 20, 2015 March 20, 2019 $0.01 Deferred shares without performance criteria 38,825 March 20, 2015 March 20, 2018 $0.01 Deferred shares without performance criteria 38,825 March 20, 2015 March 20, 2017 $0.01 Deferred shares without performance criteria 38,825 March 20, 2015 March 20, 2016 $0.01 |
Class A common shares | Share options | 2000 and 2004 stock option plans | |
Share-based compensation plans | |
Schedule of share option transactions during the period | Details of share option transactions under the 2000 and 2004 stock option plans are as follows: Number of shares Weighted average Weighted average Aggregate intrinsic Outstanding — January 1, 2014 286,800 29.91 Granted — — Exercised (6,726 ) 6.00 Forfeited, canceled or expired (63,724 ) 30.61 Outstanding — December 31, 2014 216,350 30.45 Granted — — Exercised (29,262 ) 5.89 Forfeited, canceled or expired (101,438 ) 32.59 Outstanding — December 31, 2015 85,650 36.30 2.0 83 Exercisable — December 31, 2015 85,650 36.30 2.0 83 |
Schedule of options outstanding | The options outstanding under the 2000 and 2004 plans at December 31, 2015 were as follows: Exercise Outstanding at Exercisable at Remaining Exercise prices Exercise prices 5.89 23,100 23,100 2.9 5.89 5.89 34.90 1,050 1,050 0.8 34.90 34.90 35.85 6,550 6,550 2.7 35.85 35.85 36.50 9,700 9,700 0.5 36.50 36.50 42.87 1,050 1,050 0.9 42.87 42.87 46.08 5,550 5,550 2.4 46.08 46.08 51.90 4,950 4,950 2.2 51.90 51.90 52.51 27,250 27,250 1.7 52.51 52.51 52.51 1,050 1,050 1.2 52.51 52.51 52.59 2,350 2,350 1.5 52.59 52.59 59.23 3,050 3,050 1.9 59.23 59.23 85,650 85,650 |
Class A common shares | Share options | 2009 share award and incentive plan | |
Share-based compensation plans | |
Schedule of share option transactions during the period | Transactions relating to share options under the 2009 plan have been as follows: Number of shares Weighted average Weighted average Aggregate intrinsic Outstanding — January 1, 2014 2,771,500 10.67 Granted 771,133 12.44 Exercised (68,106 ) 9.10 Forfeited, canceled or expired (384,894 ) 10.26 Outstanding — December 31, 2014 3,089,633 11.20 Granted 759,474 10.48 Exercised (100,262 ) 8.60 Forfeited, canceled or expired (1,045,888 ) 11.51 Outstanding — December 31, 2015 2,702,957 10.97 7.7 888 Exercisable — December 31, 2015 1,047,650 9.79 5.8 644 |
Schedule of options outstanding | The options outstanding under the 2009 plan at December 31, 2015 were as follows: Exercise Outstanding at Exercisable at Remaining Exercise prices Exercise prices 8.38 28,600 28,600 3.4 8.38 8.38 7.71 5,000 5,000 3.5 7.71 7.71 8.91 55,700 55,700 3.9 8.91 8.91 8.37 42,200 42,200 4.5 8.37 8.37 11.44 127,650 127,650 4.9 11.44 11.44 11.69 98,200 98,200 5.4 11.69 11.69 8.06 242,950 242,950 5.9 8.06 8.06 9.95 31,700 31,700 6.2 9.95 9.95 8.42 159,500 159,500 6.5 8.42 8.42 11.32 256,150 256,150 6.9 11.32 11.32 9.95 31,700 — 7.1 9.95 — 11.74 135,300 — 7.4 11.74 — 14.51 267,450 — 7.9 14.51 — 14.08 145,300 — 8.5 14.08 — 11.57 365,483 — 8.9 11.57 — 12.50 143,874 — 9.4 12.50 — 13.75 96,165 — 9.7 13.75 — 8.98 470,035 — 10.0 8.98 — 2,702,957 1,047,650 |
Schedule of assumptions used to determine estimated fair value of stock options | Estimates of the fair value of the share options on the grant date using the Black-Scholes options pricing model were based on the following assumptions: Year ended December 31, 2015 2014 2013 Expected share price volatility 28% - 58% 45% - 46% 50% - 60% Risk-free interest rate 0.65% - 1.83% 1.53% - 1.71% 1.30% - 1.74% Expected annual dividends per share $— $— $— Expected life of share options 2.5 - 6.9 years 4.5 years 4.5 - 8 years |
Class A common shares | Deferred shares | 2009 share award and incentive plan | |
Share-based compensation plans | |
Schedule of awards transactions during the period | Transactions relating to deferred shares and restricted shares under the 2009 plan have been as follows: Number of shares Weighted average Aggregate intrinsic Outstanding — January 1, 2014 1,481,827 0.01 Granted 786,809 0.01 Vested and issued (251,600 ) 0.01 Forfeited, canceled or expired (165,727 ) 0.01 Outstanding — December 31, 2014 1,851,309 0.01 Granted 653,787 0.01 Vested and issued (535,407 ) 0.01 Forfeited, canceled or expired (807,502 ) 0.01 Outstanding — December 31, 2015 1,162,187 0.01 11,029 |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future rental payments under operating leases | Future rental payments under operating leases in respect of equipment rentals and leased premises are payable as follows: Year ended December 31, $’000 2016 8,344 2017 8,630 2018 8,938 2019 7,523 2020 7,713 2021 and thereafter 65,305 106,453 |
Fair value measurements (Tables
Fair value measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities by fair value hierarchy | The following tables summarize the valuation of Belmond’s assets and liabilities by the fair value hierarchy at December 31, 2015 and 2014 : Level 1 Level 2 Level 3 Total December 31, 2015 $'000 $'000 $'000 $'000 Assets at fair value: Derivative financial instruments — 4 — 4 Total assets — 4 — 4 Liabilities at fair value: Derivative financial instruments — (4,464 ) — (4,464 ) Total net liabilities — (4,460 ) — (4,460 ) Level 1 Level 2 Level 3 Total December 31, 2014 $'000 $'000 $'000 $'000 Assets at fair value: Derivative financial instruments — 13 — 13 Total assets — 13 — 13 Liabilities at fair value: Derivative financial instruments — (3,602 ) — (3,602 ) Total net liabilities — (3,589 ) — (3,589 ) |
Schedule of estimated carrying values, fair values, and levels of the fair value hierarchy of long-term debt | The estimated carrying values, fair values, and levels of the fair value hierarchy of Belmond's long-term debt as of December 31, 2015 and 2014 were as follows: December 31, 2015 December 31, 2014 Carrying Fair value Carrying Fair value Total long-term debt, before deduction of discount on secured term loan and debt issuance costs, excluding obligations under capital leases Level 3 596,428 630,455 620,106 663,653 See Note 10. |
Schedule of estimated fair values of non-financial assets measured on a non-recurring basis | The estimated fair values of Belmond’s non-financial assets measured on a non-recurring basis for the years ended December 31, 2015 , 2014 and 2013 were as follows: Fair value measurement inputs Fair value Level 1 Level 2 Level 3 Total losses in year ended December 31, 2015 Goodwill 10,050 — — 10,050 (9,796 ) Fair value measurement inputs Fair value Level 1 Level 2 Level 3 Total losses in year ended December 31, 2014 Property, plant and equipment 2,488 — — 2,488 (1,211 ) Fair value measurement inputs Fair value Level 1 Level 2 Level 3 Total losses in year ended December 31, 2013 Property, plant and equipment 45,000 — — 45,000 (36,430 ) Property, plant and equipment of discontinued operations — — — — (1,029 ) Goodwill of discontinued operations — — — — (3,187 ) Intangible assets of discontinued operations — — — — (2,815 ) |
Derivatives and hedging activ56
Derivatives and hedging activities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of notional amounts of outstanding interest rate derivatives that were designated as cash flow hedges | As of December 31, 2015 and 2014 , Belmond had the following outstanding interest rate derivatives stated at their notional amounts in local currency that were designated as cash flow hedges of interest rate risk: 2015 2014 December 31, ’000 ’000 Interest rate swaps € 73,688 € 74,438 Interest rate swaps $ 212,481 $ 214,206 Interest rate caps $ 17,200 $ 17,200 |
Schedule of fair value of derivative financial instruments | The table below presents the fair value of Belmond’s derivative financial instruments and their classification as of December 31, 2015 and 2014 : Fair value as of Fair value as of December 31, 2015 December 31, 2014 Balance sheet location $’000 $’000 Derivatives designated in a cash flow hedging relationship: Interest rate derivatives Other assets 4 13 Interest rate derivatives Accrued liabilities (2,731 ) (2,984 ) Interest rate derivatives Other liabilities (1,733 ) (618 ) Total (4,460 ) (3,589 ) |
Schedule of derivative movements not included in other comprehensive income | Derivative movements not included in other comprehensive income for the years ended December 31, 2015 , 2014 and 2013 were as follows: 2015 2014 2013 Year ended December 31, $’000 $’000 $’000 Amount of gain/(loss) recognized in interest expense for the ineffective portion of derivatives designated as cash flow hedges — — (37 ) Amount of gain/(loss) recognized in interest expense for derivatives not designated as hedging instruments — — (4 ) |
Accumulated other comprehensi57
Accumulated other comprehensive loss (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Schedule of changes in accumulated other comprehensive income/(loss) by component | Changes in accumulated other comprehensive income/(loss) (“AOCI”) by component (net of tax) for the years ended December 31, 2015 and 2014 were as follows: Foreign currency translation adjustments Derivative financial instruments Pension liability Total $’000 $’000 $’000 $’000 Balance at January 1, 2014 (81,339 ) (3,381 ) (8,597 ) (93,317 ) Other comprehensive loss before reclassifications (150,989 ) (2,731 ) (1,926 ) (155,646 ) Amounts reclassified from AOCI — 2,543 — 2,543 Net current period other comprehensive income/(loss) (150,989 ) (188 ) (1,926 ) (153,103 ) Balance at December 31, 2014 (232,328 ) (3,569 ) (10,523 ) (246,420 ) Other comprehensive income/(loss) before reclassifications (88,180 ) (3,471 ) 580 (91,071 ) Amounts reclassified from AOCI — 2,949 — 2,949 Net current period other comprehensive income/(loss) (88,180 ) (522 ) 580 (88,122 ) Balance at December 31, 2015 (320,508 ) (4,091 ) (9,943 ) (334,542 ) |
Schedule of reclassifications out of AOCI | Reclassifications out of AOCI (net of tax) were as follows: Amount reclassified from AOCI December 31, 2015 December 31, 2014 Details about AOCI components $’000 $’000 Affected line item in the statement of operations Derivative financial instruments: Cash flows from derivative financial instruments related to interest payments made for the hedged debt instrument 2,949 2,543 Interest expense Total reclassifications for the period 2,949 2,543 |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of revenues from external customers by segment | Revenue from external customers by segment: 2015 2014 2013 Year ended December 31, $’000 $’000 $’000 Owned hotels: Europe 200,059 212,744 222,047 North America 148,103 142,586 146,491 Rest of world 124,369 142,731 141,709 Total owned hotels 472,531 498,061 510,247 Part-owned/ managed hotels 5,232 5,983 5,861 Total hotels 477,763 504,044 516,108 Owned trains & cruises 65,471 74,265 73,728 Part-owned/ managed trains 8,151 7,406 4,245 Total trains & cruises 73,622 81,671 77,973 Total revenue 551,385 585,715 594,081 |
Schedule of reconciliation of the total of segment profit to consolidated net earnings (losses) from operations | Reconciliation of the total of segment profit to consolidated net earnings/(losses) from operations: 2015 2014 2013 Year ended December 31, $’000 $’000 $’000 Owned hotels: Europe 65,416 62,770 63,767 North America 31,622 23,986 23,233 Rest of world 31,295 36,539 35,958 Total owned hotels 128,333 123,295 122,958 Part-owned/ managed hotels 4,142 5,205 2,273 Total hotels 132,475 128,500 125,231 Owned trains & cruises 6,741 7,300 8,467 Part-owned/ managed trains 18,883 16,165 14,390 Total trains & cruises 25,624 23,465 22,857 Reconciliation to net earnings/(losses): Total segment profit 158,099 151,965 148,088 Gain on disposal of property, plant and equipment 20,275 4,128 — Impairment of goodwill (9,796 ) — — Impairment of property, plant and equipment — (1,211 ) (36,430 ) Central overheads (39,272 ) (31,727 ) (30,647 ) Share-based compensation (6,707 ) (7,928 ) (10,388 ) Depreciation and amortization (50,513 ) (52,004 ) (48,740 ) (Loss)/gain on extinguishment of debt — (14,506 ) 3,517 Other income — 1,257 — Interest income 926 1,418 1,067 Interest expense (32,101 ) (36,767 ) (34,326 ) Foreign currency, net (5,016 ) 2,262 1,000 Provision for income taxes (17,041 ) (15,542 ) (17,628 ) Share of (provision for)/benefit from income taxes of unconsolidated companies (1,466 ) 702 (1,691 ) Earnings/(losses) from continuing operations 17,388 2,047 (26,178 ) Losses from discontinued operations (1,534 ) (3,782 ) (5,318 ) Net earnings/(losses) 15,854 (1,735 ) (31,496 ) |
Schedule of reconciliation of assets by segment to total assets | Reconciliation of assets by segment to total assets: 2015 2014 December 31, $’000 $’000 Owned hotels: Europe 533,610 594,590 North America 477,949 480,699 Rest of world 227,339 275,383 Total owned hotels 1,238,898 1,350,672 Part-owned/ managed hotels 19,285 49,149 Total hotels 1,258,183 1,399,821 Owned trains & cruises 94,945 92,196 Part-owned/ managed trains 61,961 56,122 Total trains & cruises 156,906 148,318 Unallocated corporate 94,386 107,084 Discontinued operations held for sale — — Total assets 1,509,475 1,655,223 |
Schedule of reconciliation of other significant items by segment to consolidated | Carrying value of investment in equity method investees: 2015 2014 December 31, $’000 $’000 Eastern & Oriental Express 2,972 3,251 Peru hotels 18,696 16,981 PeruRail 47,421 41,713 Hotel Ritz by Belmond — — Buzios 2,542 3,783 Other 93 103 Total investment in equity method investees 71,724 65,831 Earnings from unconsolidated companies, net of tax: 2015 2014 2013 Year ended December 31, $’000 $’000 $’000 Part-owned/ managed hotels 106 1,949 (2,372 ) Part-owned/ managed trains 8,969 7,535 8,814 Total earnings from unconsolidated companies, net of tax 9,075 9,484 6,442 Reconciliation of capital expenditure to acquire property, plant and equipment by segment: 2015 2014 2013 Year ended December 31, $’000 $’000 $’000 Owned hotels: Europe 18,648 26,542 13,238 North America 11,881 16,690 32,635 Rest of world 14,168 14,409 14,173 Total owned hotels 44,697 57,641 60,046 Owned trains & cruises 11,415 5,533 6,325 Unallocated corporate 283 280 275 Total capital expenditure to acquire property, plant and equipment 56,395 63,454 66,646 |
Schedule of revenue from external customers and property, plant and equipment by location | Revenue from external customers in Belmond's country of domicile and significant countries (based on the location of the property): 2015 2014 2013 Year ended December 31, $’000 $’000 $’000 Bermuda — — — Italy 132,385 137,491 133,806 United Kingdom 62,656 68,412 65,865 United States 107,965 104,146 108,167 Brazil 69,142 86,866 80,537 All other countries 179,237 188,800 205,706 Total revenue 551,385 585,715 594,081 Property, plant and equipment at book value in Belmond's country of domicile and significant countries (based on the location of the property): 2015 2014 December 31, $’000 $’000 Bermuda — — Italy 308,035 341,051 United Kingdom 57,443 60,816 United States 346,942 347,709 Brazil 61,773 93,384 All other countries 304,168 325,797 Total property, plant and equipment at book value 1,078,361 1,168,757 |
Basis of financial statement 59
Basis of financial statement presentation (Details) | Dec. 31, 2015restauranttrainshiphotelcanalboat |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of hotels and resort properties | hotel | 34 |
Number of restaurants | restaurant | 1 |
Number of tourist trains | train | 6 |
Number of river cruise businesses | ship | 2 |
Number of canal boat businesses | canalboat | 1 |
Summary of significant accoun60
Summary of significant accounting policies - Property, plant and equipment (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Buildings | |
Property, Plant and Equipment [Line Items] | |
Residual value, percentage | 10.00% |
River cruise ship and canal boats | |
Property, Plant and Equipment [Line Items] | |
Useful life (in years) | 25 years |
Maximum | Buildings | |
Property, Plant and Equipment [Line Items] | |
Useful life (in years) | 60 years |
Maximum | Trains | |
Property, Plant and Equipment [Line Items] | |
Useful life (in years) | 75 years |
Maximum | Furniture, fixtures and equipment | |
Property, Plant and Equipment [Line Items] | |
Useful life (in years) | 25 years |
Minimum | Furniture, fixtures and equipment | |
Property, Plant and Equipment [Line Items] | |
Useful life (in years) | 3 years |
Summary of significant accoun61
Summary of significant accounting policies - Investments (Details) | Dec. 31, 2015 |
Minimum | |
Schedule of Equity Method Investments | |
Ownership percentage | 20.00% |
Maximum | |
Schedule of Equity Method Investments | |
Ownership percentage | 50.00% |
Summary of significant accoun62
Summary of significant accounting policies - Goodwill (Details) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill | ||
Operating cash flows forecast period assumed in goodwill impairment analysis (in years) | 5 years | |
Minimum period for which terminal value is included from the balance sheet date for goodwill impairment analysis (in years) | 5 years | |
Minimum | ||
Goodwill | ||
Terminal growth rate assumed in goodwill impairment analysis | 2.70% | 3.20% |
Discount rate, pre-tax, used in goodwill impairment analysis | 8.30% | 9.20% |
Maximum | ||
Goodwill | ||
Terminal growth rate assumed in goodwill impairment analysis | 7.40% | 7.80% |
Discount rate, pre-tax, used in goodwill impairment analysis | 16.90% | 17.30% |
Summary of significant accoun63
Summary of significant accounting policies - Other intangible assets (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Minimum | Favorable lease intangible assets | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization period (in years) | 19 years |
Minimum | Internet sites | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization period (in years) | 5 years |
Maximum | Favorable lease intangible assets | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization period (in years) | 60 years |
Maximum | Internet sites | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization period (in years) | 10 years |
Summary of significant accoun64
Summary of significant accounting policies (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)property | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Credit value adjustment, percentage of fair value of derivatives for Level 3 classification greater than | 20.00% | ||
Marketing costs | $ 40,381 | $ 42,251 | $ 40,612 |
Number of properties in Mexico for which local currency is not applicable | property | 1 | ||
Debt issuance costs | $ 11,701 | $ 13,095 | |
Brazilian hotels | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), gain (loss) arising on change in functional currency | $ (49,356) |
Earnings per share - Calculatio
Earnings per share - Calculation of basic and diluted earnings per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Numerator | |||
Net earnings/(losses) from continuing operations | $ 17,388 | $ 2,047 | $ (26,178) |
Net earnings/(losses) from discontinued operations | (1,534) | (3,782) | (5,318) |
Net losses/(earnings) attributable to non-controlling interests | 411 | (145) | (63) |
Net earnings/(losses) attributable to Belmond Ltd. | $ 16,265 | $ (1,880) | $ (31,559) |
Denominator (shares) | |||
Basic weighted average shares outstanding (in shares) | 103,163 | 103,837 | 103,226 |
Effect of dilution (in shares) | 1,193 | 2,291 | 0 |
Diluted weighted average shares outstanding (in shares) | 104,356 | 106,128 | 103,226 |
Basic earnings per share | |||
Net earnings/(losses) from continuing operations (in dollars per share) | $ 0.169 | $ 0.020 | $ (0.254) |
Net earnings/(losses) from discontinued operations (in dollars per share) | (0.015) | (0.036) | (0.052) |
Net losses/(earnings) attributable to non-controlling interests (in dollars per share) | 0.004 | (0.001) | (0.001) |
Basic net earnings/(losses) per share attributable to Belmond Ltd. (in dollars per share) | 0.158 | (0.017) | (0.307) |
Diluted earnings per share | |||
Net earnings/(losses) from continuing operations (in dollars per share) | 0.167 | 0.019 | (0.254) |
Net earnings/(losses) from discontinued operations (in dollars per share) | (0.015) | (0.036) | (0.052) |
Net losses/(earnings) attributable to non-controlling interests (in dollars per share) | 0.004 | (0.001) | (0.001) |
Diluted net earnings/(losses) per share attributable to Belmond Ltd. (in dollars per share) | $ 0.156 | $ (0.018) | $ (0.307) |
Earnings per share - Securities
Earnings per share - Securities excluded from the computation of diluted earnings per share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Number of share options and share-based awards excluded from computation of earnings per share (in shares) | 1,441,972 | 810,500 | 4,540,127 |
Number of share options and share-based awards unexercised (in shares) | 3,950,794 | 5,157,292 | 4,540,127 |
Share options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Number of share options and share-based awards excluded from computation of earnings per share (in shares) | 1,441,972 | 810,500 | 3,058,300 |
Share-based awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Number of share options and share-based awards excluded from computation of earnings per share (in shares) | 0 | 0 | 1,481,827 |
Assets held for sale and disc67
Assets held for sale and discontinued operations (Details) | Mar. 21, 2014USD ($) | Jan. 31, 2013USD ($) | Dec. 31, 2015USD ($)property | Dec. 31, 2014USD ($)property | Dec. 31, 2013USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Number of properties classified as held for sale | property | 0 | 0 | |||
Disposal group including discontinued operation, key money paid | $ 0 | $ 3,000,000 | $ 0 | ||
Gain on sale | 439,000 | ||||
Non-cash impairment charge | 7,031,000 | ||||
Discontinued operations, tax (benefit)/provision | 0 | $ 713,000 | (3,911,000) | ||
Porto Cupecoy | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Number of properties sold | property | 1 | ||||
Cash | $ 19,000,000 | ||||
Reduction in debt facility on sale of hotel | 0 | ||||
Disposal group including discontinued operation, key money paid | 0 | ||||
Gain on sale | $ 439,000 | 439,000 | |||
Non-cash impairment charge | 0 | ||||
Discontinued operations, tax (benefit)/provision | $ 0 | 0 | |||
Inn at Perry Cabin by Belmond | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gross proceeds from divestiture of businesses, including reduction in debt facility on sale of asset | $ 39,700,000 | ||||
Cash | 25,680,000 | ||||
Reduction in debt facility on sale of hotel | 11,020,000 | ||||
Disposal group including discontinued operation, key money paid | $ 3,000,000 | ||||
Term of management agreement (in years) | 10 years | ||||
Gain on sale, not discontinued operations | $ 6,704,000 | ||||
Disposal group including discontinued operation, gain/(loss) before income tax, recognized on completion | 3,704,000 | ||||
Deferred gain on sale | $ 3,000,000 | ||||
Ubud Hanging Gardens | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gain on sale | 0 | ||||
Legal fees | $ 636,000 | 1,486,000 | |||
Non-cash impairment charge | 7,031,000 | ||||
Discontinued operations, tax (benefit)/provision | $ 713,000 | (1,838,000) | |||
Ubud Hanging Gardens | Fair Value | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Carrying value of long-lived assets to be abandoned | 0 | ||||
The Westcliff | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gain on sale | 0 | ||||
Non-cash impairment charge | 0 | ||||
Discontinued operations, tax (benefit)/provision | (1,425,000) | ||||
Keswick Hall | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gain on sale | 0 | ||||
Non-cash impairment charge | 0 | ||||
Discontinued operations, tax (benefit)/provision | $ (648,000) |
Assets held for sale and disc68
Assets held for sale and discontinued operations - Summary of net assets sold and the gain/loss recorded on sale (Details) - USD ($) $ in Thousands | Mar. 21, 2014 | Jan. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Consideration: | |||||
Key money retained by buyer | $ 0 | $ 3,000 | $ 0 | ||
Gain on sale | 439 | ||||
Inn at Perry Cabin by Belmond | |||||
Net assets sold and gain on sale | |||||
Property, plant & equipment | $ 32,293 | ||||
Real estate assets | 0 | ||||
Net working capital (deficit)/surplus | (820) | ||||
Net assets | 31,473 | ||||
Transfer of foreign currency translation loss/(gain) | 0 | ||||
Net assets after adjustments | 31,473 | ||||
Consideration: | |||||
Cash | 25,680 | ||||
Reduction in debt facility on sale of hotel | 11,020 | ||||
Key money retained by buyer | 3,000 | ||||
Less: Working capital adjustment | (1,130) | ||||
Less: Costs to sell | (393) | ||||
Net proceeds from divestiture of businesses | 38,177 | ||||
Gain on sale, not discontinued operations | $ 6,704 | ||||
Porto Cupecoy | |||||
Net assets sold and gain on sale | |||||
Property, plant & equipment | $ 38 | ||||
Real estate assets | 18,512 | ||||
Net working capital (deficit)/surplus | 0 | ||||
Net assets | 18,550 | ||||
Transfer of foreign currency translation loss/(gain) | 0 | ||||
Net assets after adjustments | 18,550 | ||||
Consideration: | |||||
Cash | 19,000 | ||||
Reduction in debt facility on sale of hotel | 0 | ||||
Key money retained by buyer | 0 | ||||
Less: Working capital adjustment | (11) | ||||
Less: Costs to sell | 0 | ||||
Net proceeds from divestiture of businesses | 18,989 | ||||
Gain on sale | $ 439 | $ 439 |
Assets held for sale and disc69
Assets held for sale and discontinued operations - Summarized operating results for discontinued operations (Details) - USD ($) $ in Thousands | Jan. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Operating results | ||||
Revenue | $ 0 | $ 600 | $ 7,056 | |
Losses before tax, gain on sale and impairment | (1,534) | (3,069) | (2,637) | |
Impairment | (7,031) | |||
Gain on sale | 439 | |||
Losses before tax | (1,534) | (3,069) | (9,229) | |
Tax provision | 0 | (713) | 3,911 | |
Net losses from discontinued operations | (1,534) | (3,782) | (5,318) | |
Ubud Hanging Gardens | ||||
Operating results | ||||
Revenue | 0 | 0 | 5,124 | |
Losses before tax, gain on sale and impairment | (636) | (1,486) | 591 | |
Impairment | (7,031) | |||
Gain on sale | 0 | |||
Losses before tax | (636) | (1,486) | (6,440) | |
Tax provision | (713) | 1,838 | ||
Net losses from discontinued operations | (636) | (2,199) | (4,602) | |
Porto Cupecoy | ||||
Operating results | ||||
Revenue | 0 | 600 | 1,932 | |
Losses before tax, gain on sale and impairment | (898) | (1,583) | (3,228) | |
Impairment | 0 | |||
Gain on sale | $ 439 | 439 | ||
Losses before tax | (898) | (1,583) | (2,789) | |
Tax provision | 0 | 0 | ||
Net losses from discontinued operations | $ (898) | $ (1,583) | (2,789) | |
The Westcliff | ||||
Operating results | ||||
Revenue | 0 | |||
Losses before tax, gain on sale and impairment | 0 | |||
Impairment | 0 | |||
Gain on sale | 0 | |||
Losses before tax | 0 | |||
Tax provision | 1,425 | |||
Net losses from discontinued operations | 1,425 | |||
Keswick Hall | ||||
Operating results | ||||
Revenue | 0 | |||
Losses before tax, gain on sale and impairment | 0 | |||
Impairment | 0 | |||
Gain on sale | 0 | |||
Losses before tax | 0 | |||
Tax provision | 648 | |||
Net losses from discontinued operations | $ 648 |
Variable interest entities (Det
Variable interest entities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Variable Interest Entity [Line Items] | |||
Goodwill | $ 113,996 | $ 132,644 | $ 156,916 |
Variable interest entity, not primary beneficiary | Eastern and Oriental Express Ltd. | |||
Variable Interest Entity [Line Items] | |||
Ownership percentage | 25.00% | ||
Variable interest entity, not primary beneficiary | Rail joint venture in Peru | |||
Variable Interest Entity [Line Items] | |||
Ownership percentage | 50.00% | ||
Charleston Center LLC | Variable interest entity, primary beneficiary | |||
Variable Interest Entity [Line Items] | |||
Ownership percentage | 19.90% | ||
Assets of consolidated variable interest entities that can only be used to settle obligations of the consolidated VIE | $ 210,652 | 206,817 | |
Goodwill | 40,395 | 40,395 | |
Liabilities of consolidated variable interest entities for which creditors have no recourse to Belmond Ltd. | $ 122,386 | $ 121,136 |
Variable interest entities - Ca
Variable interest entities - Carrying amounts and maximum exposure to loss for E&O joint venture (Details) - Eastern and Oriental Express Ltd. - Variable interest entity, not primary beneficiary - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Variable Interest Entity [Line Items] | ||
Carrying Amounts, Total | $ 7,844 | $ 8,478 |
Maximum exposure | 7,844 | 8,478 |
Investment | ||
Variable Interest Entity [Line Items] | ||
Carrying Amounts, Assets | 2,972 | 3,251 |
Maximum exposure | 2,972 | 3,251 |
Due from unconsolidated company | ||
Variable Interest Entity [Line Items] | ||
Carrying Amounts, Assets | 4,872 | 5,227 |
Maximum exposure | 4,872 | 5,227 |
Guarantees | ||
Variable Interest Entity [Line Items] | ||
Carrying Amounts, Liabilities | 0 | 0 |
Maximum exposure | 0 | 0 |
Contingent guarantees | ||
Variable Interest Entity [Line Items] | ||
Carrying Amounts, Liabilities | 0 | 0 |
Maximum exposure | $ 0 | $ 0 |
Investments in unconsolidated72
Investments in unconsolidated companies (Details) € in Thousands, $ in Thousands | May. 21, 2015USD ($) | May. 21, 2015EUR (€) | Dec. 31, 2015USD ($)hotel | Dec. 31, 2014USD ($) | Jun. 30, 2007USD ($) |
Schedule of Equity Method Investments | |||||
Number of hotels and resort properties | hotel | 34 | ||||
Rail joint venture in Peru | |||||
Schedule of Equity Method Investments | |||||
Ownership percentage | 50.00% | ||||
Rail joint venture in Peru | Contingent Financial Guarantee Debt 2017 | Variable interest entity, not primary beneficiary | |||||
Schedule of Equity Method Investments | |||||
Debt obligations guaranteed | $ 1,300 | ||||
Rail joint venture in Peru | Guarantee of Governmental Concession | Variable interest entity, not primary beneficiary | |||||
Schedule of Equity Method Investments | |||||
Debt obligations guaranteed | $ 6,676 | ||||
Rail joint venture in Peru | Financial Guarantee Additional Debt 2017 | Variable interest entity, not primary beneficiary | |||||
Schedule of Equity Method Investments | |||||
Debt obligations guaranteed | $ 4,124 | ||||
Eastern and Oriental Express Ltd. | |||||
Schedule of Equity Method Investments | |||||
Ownership percentage | 25.00% | ||||
Buzios | |||||
Schedule of Equity Method Investments | |||||
Ownership percentage | 50.00% | 50.00% | |||
Cash consideration | $ 5,000 | ||||
Hotel Ritz, Madrid | |||||
Schedule of Equity Method Investments | |||||
Ownership percentage | 50.00% | 50.00% | 50.00% | ||
Gross proceeds from divestiture of businesses, including reduction in debt facility on sale of asset | $ 144,529 | € 130,000 | |||
Gain (Loss) on Contract Termination | $ 2,292 | ||||
Hotel and rail joint ventures in Peru | |||||
Schedule of Equity Method Investments | |||||
Ownership percentage | 50.00% | ||||
Peruvian hotel joint venture | |||||
Schedule of Equity Method Investments | |||||
Ownership percentage | 50.00% | ||||
Number of hotels and resort properties | hotel | 4 | ||||
Peruvian hotel joint venture | Contingent Financial Guarantee Additional Debt 2018 | |||||
Schedule of Equity Method Investments | |||||
Debt obligations guaranteed | $ 19,500 | ||||
Maximum | |||||
Schedule of Equity Method Investments | |||||
Ownership percentage | 50.00% | ||||
Minimum | |||||
Schedule of Equity Method Investments | |||||
Ownership percentage | 20.00% | ||||
Minimum | Hotel and rail joint ventures in Peru | Guarantees | |||||
Schedule of Equity Method Investments | |||||
Ownership percentage | 50.00% |
Investments in unconsolidated73
Investments in unconsolidated companies - Unconsolidated companies summarized financial data (Details) - USD ($) $ in Thousands | May. 21, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of Equity Method Investments [Line Items] | ||||
Investments in unconsolidated companies | $ 71,724 | $ 65,831 | ||
Summarized financial data for OEH's unconsolidated companies | ||||
Current assets | 59,372 | 52,289 | ||
Property, plant and equipment, net of accumulated depreciation | 207,469 | 340,546 | ||
Other non-current assets | 30,643 | 36,249 | ||
Non-current assets | 238,112 | 376,795 | ||
Total assets | 297,484 | 429,084 | ||
Current liabilities, including $19,171 and $96,824 current portion of third-party debt | 86,092 | 157,273 | ||
Long-term debt | 48,681 | 25,346 | ||
Other non-current liabilities | 26,540 | 125,210 | ||
Non-current liabilities | 75,221 | 150,556 | ||
Total shareholders’ equity | 136,171 | 121,255 | ||
Total liabilities and shareholders’ equity | 297,484 | 429,084 | ||
Current portion of long-term debt and obligations under capital leases | 5,349 | 5,549 | ||
Revenue | 160,614 | 172,793 | $ 168,839 | |
Gross profit | 104,708 | 105,333 | 91,357 | |
Net earnings | 17,723 | 19,622 | $ 13,549 | |
Hotel Ritz, Madrid | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Receivables due from unconsolidated companies | $ 29,679 | |||
Investments in unconsolidated companies | 0 | |||
Net assets | 29,679 | |||
Transfer of foreign currency translation gain | (5,613) | |||
Net assets after adjustments | 24,066 | |||
Cash | 42,197 | |||
Less: Costs to sell | (747) | |||
Plus: Management contract termination fee | 2,292 | |||
Net Sales Proceeds | $ 43,742 | |||
Gain on sale | 19,676 | |||
Equity Method Investments | ||||
Summarized financial data for OEH's unconsolidated companies | ||||
Current portion of long-term debt and obligations under capital leases | $ 19,171 | $ 96,824 |
Property, plant and equipment -
Property, plant and equipment - Major classes of property, plant and equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property, plant and equipment | ||
Property, plant and equipment, gross | $ 1,421,608 | $ 1,507,195 |
Less: Accumulated depreciation | (343,247) | (338,438) |
Total property, plant and equipment, net of accumulated depreciation | 1,078,361 | 1,168,757 |
Land and buildings | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 994,382 | 1,069,846 |
Machinery and equipment | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 182,510 | 194,155 |
Furniture, fixtures and equipment | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 225,943 | 224,270 |
River cruise ship and canal boats | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | $ 18,773 | $ 18,924 |
Property, plant and equipment75
Property, plant and equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment, net of accumulated depreciation | $ 1,078,361 | $ 1,168,757 | |
Interest costs capitalized | $ 0 | 0 | $ 1,088 |
Impairment of long-lived assets to be disposed of | 7,031 | ||
Ubud Hanging Gardens | |||
Property, Plant and Equipment [Line Items] | |||
Impairment of long-lived assets to be disposed of | 7,031 | ||
Great South Pacific Express | |||
Property, Plant and Equipment [Line Items] | |||
Impairment of property, plant and equipment | 1,211 | ||
Property, plant and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Impairment of property, plant and equipment | 36,430 | ||
Property, plant and equipment | Ubud Hanging Gardens | |||
Property, Plant and Equipment [Line Items] | |||
Impairment of long-lived assets to be disposed of | 1,029 | ||
Property, plant and equipment | Great South Pacific Express | |||
Property, Plant and Equipment [Line Items] | |||
Impairment of property, plant and equipment | 1,211 | ||
Property, plant and equipment | Belmond La Samanna | |||
Property, Plant and Equipment [Line Items] | |||
Impairment of property, plant and equipment | 35,680 | ||
Property, plant and equipment | Belmond Grand Hotel Europe | |||
Property, Plant and Equipment [Line Items] | |||
Impairment of property, plant and equipment | 750 | ||
Property, plant and equipment | Belmond Northern Belle | |||
Property, Plant and Equipment [Line Items] | |||
Reporting Unit, Percentage of Sum of Undiscounted Cash Flows in Excess of Carrying Amount | 10.00% | ||
Charleston Center LLC | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment, net of accumulated depreciation | $ 201,342 | 197,608 | |
Charleston Center LLC | Charleston Center LLC | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment, net of accumulated depreciation | 201,342 | 197,608 | |
Continuing operations | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 49,982 | 51,629 | $ 48,346 |
Continuing operations | Property, plant and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Impairment of property, plant and equipment | $ 1,211 |
Goodwill - Changes in carrying
Goodwill - Changes in carrying amount of goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill | |||
Gross goodwill amount | $ 158,119 | $ 166,971 | $ 191,243 |
Accumulated impairment | (44,123) | (34,327) | (34,327) |
Changes in the carrying amount of goodwill | |||
Balance at the beginning of the period | 132,644 | 156,916 | |
Impairment | (9,796) | 0 | 0 |
Foreign currency translation adjustment | (8,852) | (24,272) | |
Balance at the end of the period | 113,996 | 132,644 | 156,916 |
Operating Segments | Segment: Owned hotels - Europe | |||
Goodwill | |||
Gross goodwill amount | 64,263 | 71,292 | 87,885 |
Accumulated impairment | (14,202) | (10,104) | (10,104) |
Changes in the carrying amount of goodwill | |||
Balance at the beginning of the period | 61,188 | 77,781 | |
Impairment | (4,098) | 0 | |
Foreign currency translation adjustment | (7,029) | (16,593) | |
Balance at the end of the period | 50,061 | 61,188 | 77,781 |
Operating Segments | Segment: Owned hotels - North America | |||
Goodwill | |||
Gross goodwill amount | 66,101 | 66,101 | 66,101 |
Accumulated impairment | (16,110) | (16,110) | (16,110) |
Changes in the carrying amount of goodwill | |||
Balance at the beginning of the period | 49,991 | 49,991 | |
Impairment | 0 | 0 | |
Foreign currency translation adjustment | 0 | 0 | |
Balance at the end of the period | 49,991 | 49,991 | 49,991 |
Operating Segments | Segment: Owned hotels - Rest of world | |||
Goodwill | |||
Gross goodwill amount | 19,975 | 21,705 | 29,220 |
Accumulated impairment | (13,149) | (8,113) | (8,113) |
Changes in the carrying amount of goodwill | |||
Balance at the beginning of the period | 13,592 | 21,107 | |
Impairment | (5,036) | 0 | |
Foreign currency translation adjustment | (1,730) | (7,515) | |
Balance at the end of the period | 6,826 | 13,592 | 21,107 |
Operating Segments | Segment: Owned trains and cruises | |||
Goodwill | |||
Gross goodwill amount | 7,780 | 7,873 | 8,037 |
Accumulated impairment | (662) | 0 | 0 |
Changes in the carrying amount of goodwill | |||
Balance at the beginning of the period | 7,873 | 8,037 | |
Impairment | (662) | 0 | |
Foreign currency translation adjustment | (93) | (164) | |
Balance at the end of the period | $ 7,118 | $ 7,873 | $ 8,037 |
Goodwill (Details)
Goodwill (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill and impairment of goodwill | |||
Impairment of goodwill | $ 9,796,000 | $ 0 | $ 0 |
Goodwill | 113,996,000 | 132,644,000 | 156,916,000 |
Continuing operations | |||
Goodwill and impairment of goodwill | |||
Impairment of goodwill | $ 0 | ||
Discontinued operations | |||
Goodwill and impairment of goodwill | |||
Impairment of goodwill | 3,187,000 | ||
Discontinued operations | Ubud Hanging Gardens | |||
Goodwill and impairment of goodwill | |||
Impairment of goodwill | $ 3,187,000 | ||
Belmond Grand Hotel Europe | |||
Goodwill and impairment of goodwill | |||
Impairment of goodwill | 4,098,000 | ||
Belmond Jimbaran Puri | |||
Goodwill and impairment of goodwill | |||
Impairment of goodwill | 3,581,000 | ||
Belmond La Résidence Phou Vao | |||
Goodwill and impairment of goodwill | |||
Impairment of goodwill | 1,455,000 | ||
Belmond Northern Belle | |||
Goodwill and impairment of goodwill | |||
Impairment of goodwill | 662,000 | ||
Belmond Grand Hotel Europe | |||
Goodwill and impairment of goodwill | |||
Goodwill | 7,656,000 | ||
Belmond La Résidence d’Angkor | |||
Goodwill and impairment of goodwill | |||
Goodwill | $ 1,548,000 | ||
Percentage fair value in excess of carrying value | 24.00% |
Other intangible assets - Rollf
Other intangible assets - Rollforward of other intangible assets (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Carrying amount: | |||
Balance at the beginning of the period | $ 17,574,000 | $ 17,483,000 | |
Additions | 714,000 | 269,000 | |
Impairment | 0 | 0 | $ 0 |
Foreign currency translation adjustment | (904,000) | (178,000) | |
Balance at the end of the period | 17,384,000 | 17,574,000 | 17,483,000 |
Accumulated amortization: | |||
Balance at the beginning of the period | 3,616,000 | 3,331,000 | |
Charge for the year | 531,000 | 375,000 | |
Foreign currency translation adjustment | (615,000) | (90,000) | |
Balance at the end of the period | 3,532,000 | 3,616,000 | 3,331,000 |
Net book value: | |||
Net book value | 13,852,000 | 13,958,000 | 14,152,000 |
Trade names | |||
Carrying amount: | |||
Balance at the beginning of the period | 7,100,000 | 7,100,000 | |
Additions, indefinite-lived intangible assets | 0 | 0 | |
Impairment of intangible assets of discontinued operations, indefinite-lived intangible assets | 0 | ||
Foreign currency translation adjustment, indefinite-lived intangibles | 0 | 0 | |
Balance at the end of the period | 7,100,000 | 7,100,000 | 7,100,000 |
Net book value: | |||
Net book value | 7,100,000 | 7,100,000 | 7,100,000 |
Favorable lease assets | |||
Carrying amount: | |||
Balance at the beginning of the period | 8,586,000 | 8,660,000 | |
Additions, finite-lived intangible assets | 714,000 | 0 | |
Impairment of intangible assets of discontinued operations, finite-lived intangible assets | 0 | ||
Foreign currency translation adjustment, finite-lived intangibles | (807,000) | (74,000) | |
Balance at the end of the period | 8,493,000 | 8,586,000 | 8,660,000 |
Accumulated amortization: | |||
Balance at the beginning of the period | 2,486,000 | 2,268,000 | |
Charge for the year | 341,000 | 241,000 | |
Foreign currency translation adjustment | (555,000) | (23,000) | |
Balance at the end of the period | 2,272,000 | 2,486,000 | 2,268,000 |
Net book value: | |||
Net book value | 6,221,000 | 6,100,000 | 6,392,000 |
Internet sites | |||
Carrying amount: | |||
Balance at the beginning of the period | 1,888,000 | 1,723,000 | |
Additions, finite-lived intangible assets | 0 | 269,000 | |
Impairment of intangible assets of discontinued operations, finite-lived intangible assets | 0 | ||
Foreign currency translation adjustment, finite-lived intangibles | (97,000) | (104,000) | |
Balance at the end of the period | 1,791,000 | 1,888,000 | 1,723,000 |
Accumulated amortization: | |||
Balance at the beginning of the period | 1,130,000 | 1,063,000 | |
Charge for the year | 190,000 | 134,000 | |
Foreign currency translation adjustment | (60,000) | (67,000) | |
Balance at the end of the period | 1,260,000 | 1,130,000 | 1,063,000 |
Net book value: | |||
Net book value | $ 531,000 | 758,000 | 660,000 |
Discontinued operations | |||
Carrying amount: | |||
Impairment | 0 | $ (2,815,000) | |
Discontinued operations | Trade names | |||
Carrying amount: | |||
Impairment of intangible assets of discontinued operations, indefinite-lived intangible assets | 0 | ||
Discontinued operations | Favorable lease assets | |||
Carrying amount: | |||
Impairment of intangible assets of discontinued operations, finite-lived intangible assets | 0 | ||
Discontinued operations | Internet sites | |||
Carrying amount: | |||
Impairment of intangible assets of discontinued operations, finite-lived intangible assets | $ 0 |
Other intangible assets (Detail
Other intangible assets (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Oct. 01, 2015 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Capital expenditure to acquire intangible assets | $ 714,000 | $ 269,000 | $ 0 | |
Impairment of intangible assets | 0 | 0 | 0 | |
Net book value | 13,852,000 | 13,958,000 | 14,152,000 | |
Amortization expense | 531,000 | 375,000 | ||
Ubud Hanging Gardens | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Write down of intangible lease assets | 2,815,000 | |||
Discontinued operations | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment of intangible assets | 0 | 2,815,000 | ||
Continuing operations | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense | 531,000 | 375,000 | 394,000 | |
Estimated amortization expense, year ended December 31, 2016 | 531,000 | |||
Estimated amortization expense, year ended December 31, 2017 | 531,000 | |||
Estimated amortization expense, year ended December 31, 2018 | 531,000 | |||
Estimated amortization expense, year ended December 31, 2019 | 531,000 | |||
Estimated amortization expense, year ended December 31, 2020 | 531,000 | |||
Fair value measurements, non-recurring | Ubud Hanging Gardens | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Write down of intangible lease assets | 0 | |||
Trade names | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Net book value | 7,100,000 | 7,100,000 | 7,100,000 | |
Trade names | Belmond Grand Hotel Europe | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Percentage fair value in excess of carrying value | 28.00% | |||
Net book value | 7,100,000 | |||
Favorable lease assets | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Net book value | 6,221,000 | 6,100,000 | 6,392,000 | |
Amortization expense | 341,000 | 241,000 | ||
Favorable lease assets | Discontinued operations | Ubud Hanging Gardens | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment of intangible assets | 2,815,000 | |||
Favorable lease assets | Grand Hotel Timeo and Villa Sant' Andrea | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Capital expenditure to acquire intangible assets | 714,000 | |||
Internet sites | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Net book value | 531,000 | 758,000 | $ 660,000 | |
Amortization expense | $ 190,000 | $ 134,000 | ||
Minimum | Favorable lease assets | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization period (in years) | 19 years | |||
Minimum | Internet sites | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization period (in years) | 5 years | |||
Maximum | Favorable lease assets | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization period (in years) | 60 years | |||
Maximum | Internet sites | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization period (in years) | 10 years |
Debt and obligations under ca80
Debt and obligations under capital lease - Long-term debt and obligations under capital lease (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
Loans from banks and other parties collateralized by tangible and intangible personal property and real estate with a maturity of four to 13 years (2014 - five to 14 years), with a weighted average interest rate of 4.28% (2014 - 4.35%) | $ 596,428 | $ 620,106 |
Obligations under capital lease | 59 | 129 |
Total long-term debt and obligations under capital leases | 596,487 | 620,235 |
Less: Current portion | 5,349 | 5,549 |
Less: Discount on secured term loan | 1,894 | 2,451 |
Less: Debt issuance costs | 11,701 | 13,095 |
Non-current portion of long-term debt and obligations under capital lease | $ 577,543 | $ 599,140 |
Weighted average interest rate | 4.28% | 4.35% |
Minimum | ||
Debt Instrument [Line Items] | ||
Period of debt repayment | 4 years | 5 years |
Maximum | ||
Debt Instrument [Line Items] | ||
Period of debt repayment | 13 years | 14 years |
Debt and obligations under ca81
Debt and obligations under capital lease (Details) | Mar. 21, 2014USD ($) | Jun. 30, 2015 | Aug. 31, 2014USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Mar. 21, 2014EUR (€) | Dec. 31, 1984USD ($) |
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 106,082,000 | $ 107,004,000 | |||||
Guaranteed debt of subsidiaries | 499,100,000 | 522,561,000 | |||||
Long-term accrued interest on subordinated debt at Belmond Charleston Place | 16,540,000 | 15,940,000 | |||||
Deferred financing costs | 11,701,000 | 13,095,000 | |||||
Line of credit facility, remaining borrowing capacity | 106,082,000 | 101,486,000 | |||||
Variable interest entity, primary beneficiary | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt, including current portion, held by consolidated variable interest entities | 97,328,000 | 97,545,000 | |||||
Deferred financing costs | 707,000 | 922,000 | |||||
Belmond Ltd | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | $ 551,955,000 | ||||||
Line of credit facility, maximum borrowing capacity | $ 105,000,000 | ||||||
Interest rate floor, percentage | 1.00% | ||||||
Secured term loan, annual mandatory amortization, percentage of principal amount | 1.00% | ||||||
Belmond Ltd | Tranche one | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | $ 345,000,000 | ||||||
Belmond Ltd | Tranche one | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable interest rate, percentage | 3.00% | ||||||
Belmond Ltd | Tranche two | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | $ 206,955,000 | € 150,000,000 | |||||
Belmond Ltd | Tranche two | EURIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable interest rate, percentage | 3.25% | 3.00% | |||||
Belmond Ltd | Credit facility | |||||||
Debt Instrument [Line Items] | |||||||
Revolving Credit Facility, Term | 5 years | ||||||
Belmond Ltd | Credit facility | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable interest rate, percentage | 2.75% | ||||||
Commitment fee, percentage | 0.40% | ||||||
Charleston Center LLC | Variable interest entity, primary beneficiary | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | $ 86,000,000 | $ 10,000,000 | |||||
Amount of debt refinanced | $ 83,200,000 | ||||||
Long-term accrued interest on subordinated debt at Belmond Charleston Place | $ 16,540,000 | $ 15,940,000 | |||||
Percentage of net proceeds due to lender | 15.00% | ||||||
Charleston Center LLC | LIBOR | Variable interest entity, primary beneficiary | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable interest rate, percentage | 2.12% |
Debt and obligations under ca82
Debt and obligations under capital lease - Long-term debt maturities, including obligations under capital lease (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Disclosure [Abstract] | ||
2,016 | $ 5,349 | |
2,017 | 5,337 | |
2,018 | 5,338 | |
2,019 | 91,349 | |
2,020 | 5,364 | |
2021 and thereafter | 483,750 | |
Total long-term debt and obligations under capital leases | $ 596,487 | $ 620,235 |
Other liabilities (Details)
Other liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Other Liabilities Disclosure [Abstract] | ||
Interest rate swaps (see Note 21) | $ 1,733 | $ 618 |
Long-term accrued interest on subordinated debt at Belmond Charleston Place | 16,540 | 15,940 |
Deferred gain on sale of Inn at Perry Cabin by Belmond (see Note 4) | 1,950 | 2,550 |
Deferred lease incentive | 247 | 315 |
Accrued income tax | 0 | 2,118 |
Withholding tax provision classified as interest | 0 | 2,356 |
Total other liabilities | $ 20,470 | $ 23,897 |
Pensions - Schedule of signific
Pensions - Schedule of significant weighted average assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | |||
Discount rate for calculating net periodic benefit costs (as a percent) | 3.70% | 4.50% | 4.50% |
Expected long-term rate of return on plan assets (as a percent( | 4.10% | 4.80% | 4.70% |
Discount rate for calculating benefit obligation (as a percent) | 3.85% | 3.70% |
Pensions - Schedule of fair val
Pensions - Schedule of fair value of plan assets (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | $ 24,202 | $ 24,968 | $ 23,162 | $ 19,652 |
Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 22,176 | 22,782 | ||
Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 2,026 | 2,186 | 2,045 | |
Cash | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 1,101 | 744 | ||
Cash | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 1,101 | 744 | ||
Cash | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Cash | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
U.K. managed funds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 5,509 | 6,087 | ||
U.K. managed funds | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 5,509 | 6,087 | ||
U.K. managed funds | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
U.K. managed funds | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Overseas managed funds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 4,999 | 5,524 | ||
Overseas managed funds | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 4,999 | 5,524 | ||
Overseas managed funds | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Overseas managed funds | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
U.K. government bonds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 860 | 1,830 | ||
U.K. government bonds | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 860 | 1,830 | ||
U.K. government bonds | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
U.K. government bonds | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Corporate bonds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 5,847 | 5,745 | ||
Corporate bonds | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 5,847 | 5,745 | ||
Corporate bonds | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Corporate bonds | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Quoted hedge funds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 3,860 | 2,852 | ||
Quoted hedge funds | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 3,860 | 2,852 | ||
Quoted hedge funds | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Quoted hedge funds | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Annuities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 2,026 | 2,186 | ||
Annuities | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Annuities | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Annuities | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | $ 2,026 | $ 2,186 | $ 2,045 |
Pensions - Reconciliations of f
Pensions - Reconciliations of fair value measurements using significant unobservable inputs (Level 3) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Rollforward of fair values | |||
Fair value of plan assets at beginning of year | $ 24,968 | $ 23,162 | $ 19,652 |
Foreign exchange | (1,298) | (1,572) | 538 |
Actual return on plan assets: | |||
Fair value of plan assets at end of year | 24,202 | 24,968 | 23,162 |
Level 3 | |||
Rollforward of fair values | |||
Fair value of plan assets at beginning of year | 2,186 | 2,045 | |
Foreign exchange | (112) | (123) | |
Actual return on plan assets: | |||
Assets still held at the reporting date | 25 | 339 | |
Purchases, sales and settlements, net | (73) | (75) | |
Transfers into or out of Level 3 | 0 | 0 | |
Fair value of plan assets at end of year | 2,026 | 2,186 | 2,045 |
Annuities | |||
Rollforward of fair values | |||
Fair value of plan assets at beginning of year | 2,186 | ||
Actual return on plan assets: | |||
Fair value of plan assets at end of year | 2,026 | 2,186 | |
Annuities | Level 3 | |||
Rollforward of fair values | |||
Fair value of plan assets at beginning of year | 2,186 | 2,045 | |
Foreign exchange | (112) | (123) | |
Actual return on plan assets: | |||
Assets still held at the reporting date | 25 | 339 | |
Purchases, sales and settlements, net | (73) | (75) | |
Transfers into or out of Level 3 | 0 | 0 | |
Fair value of plan assets at end of year | $ 2,026 | $ 2,186 | $ 2,045 |
Pensions - Schedule of changes
Pensions - Schedule of changes in the benefit obligation, plan assets and funded status of the plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Change in benefit obligation: | |||
Benefit obligation at beginning of year | $ 27,353 | $ 24,768 | $ 27,927 |
Service cost | 0 | 0 | 0 |
Interest cost | 984 | 1,092 | 1,200 |
Plan participants’ contributions | 0 | 0 | 0 |
Net transfer in | 0 | 0 | 0 |
Actuarial (gain)/loss | (702) | 3,680 | (4,093) |
Benefits paid | (1,723) | (468) | (573) |
Curtailment gain | 0 | 0 | 0 |
Settlement | 0 | 0 | 0 |
Foreign currency translation | (1,356) | (1,719) | 307 |
Benefit obligation at end of year | 24,556 | 27,353 | 24,768 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 24,968 | 23,162 | 19,652 |
Actual return on plan assets | 309 | 1,821 | 1,665 |
Employer contributions | 1,946 | 2,025 | 1,880 |
Plan participants’ contributions | 0 | 0 | 0 |
Net transfer in | 0 | 0 | 0 |
Benefits paid | (1,723) | (468) | (573) |
Settlement | 0 | 0 | 0 |
Foreign currency translation | (1,298) | (1,572) | 538 |
Fair value of plan assets at end of year | 24,202 | 24,968 | 23,162 |
Funded status at end of year | (354) | (2,385) | (1,606) |
Net actuarial loss/(gain) recognized in other comprehensive loss | $ (727) | $ 2,449 | $ (5,673) |
Pensions - Other pension and co
Pensions - Other pension and compensation disclosure tables (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Amounts recognized in the consolidated balance sheets | ||||
Non-current assets | $ 0 | $ 0 | ||
Current liabilities | 0 | 0 | ||
Non-current liabilities | 354 | 2,385 | ||
Amounts recognized in accumulated other comprehensive income (loss) | ||||
Net loss | (9,934) | (10,661) | ||
Prior service cost | 0 | 0 | ||
Net transitional obligation | 0 | 0 | ||
Total amount recognized in other comprehensive loss | (9,934) | (10,661) | ||
Information about pension plans | ||||
Projected benefit obligation | 24,556 | 27,353 | $ 24,768 | $ 27,927 |
Accumulated benefit obligation | 24,556 | 27,353 | ||
Fair value of plan assets | 24,202 | 24,968 | 23,162 | $ 19,652 |
Components of net periodic pension benefit cost | ||||
Service cost | 0 | 0 | 0 | |
Interest cost | 984 | 1,092 | 1,200 | |
Expected return on assets | (1,034) | (1,139) | (926) | |
Net amortization and deferrals | 750 | 550 | 930 | |
Net periodic benefit cost | 700 | 503 | 1,204 | |
Future benefit payments | ||||
2,016 | 490 | |||
2,017 | 583 | |||
2,018 | 475 | |||
2,019 | 675 | |||
2,020 | 528 | |||
Next five years | 4,589 | |||
Employers’ contributions | $ 2,199 | $ 2,527 | $ 2,542 |
Pensions (Details)
Pensions (Details) £ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2015GBP (£) | May. 31, 2014GBP (£) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | $ 1,883 | £ 1,272 | |
Estimated net loss amortized from accumulated other comprehensive income (loss) into net periodic pension cost in the next fiscal year | 669 | ||
Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Payment Obligation Guaranteed by Parent Company | $ 12,136 | £ 8,200 |
Income taxes (Details)
Income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax [Line Items] | ||||
Gross amount of tax loss carryforwards | $ 354,717 | $ 392,971 | ||
Net operating losses carryforwards expiring within five years | 13,432 | |||
Net operating losses carryforwards expiring after five years but within ten years | 75,446 | |||
Net operating losses carryforwards expiring after ten years or with no expiry date | 265,839 | |||
Deferred tax liability, undistributed foreign earnings | 541 | 453 | ||
Cumulative amount of unremitted earnings, foreign subsidiaries | 1,267,000 | 1,059,000 | ||
Provision for income taxes | 17,041 | 15,542 | $ 17,628 | |
Benefit included in tax provision, in respect of the provision for uncertain tax positions | 279 | 545 | (1,593) | |
Benefit included in tax provision related to potential interest and penalty costs associated with uncertain tax positions | (247) | 426 | 1,654 | |
Deferred tax provision | 16,320 | 4,573 | 13,015 | |
Unrecognized tax benefit | 3,678 | 3,437 | 2,988 | $ 4,581 |
Unrecognized tax benefits that would affect effective tax rate if recognized | 3,678 | $ 3,437 | $ 2,988 | |
Amount by which uncertain tax position is reasonably possible to decrease within the next 12 months | 35 | |||
Hotel Ritz, Madrid | ||||
Income Tax [Line Items] | ||||
Gain on disposal | 19,676 | |||
Equity Method Investment, Taxable Gain (Loss) on Disposal | (39,865) | |||
Operating Loss Carryforwards, Valuation Allowance | $ 11,162 |
Income taxes - Provision for in
Income taxes - Provision for income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax [Line Items] | |||
Pre-tax (loss)/income | $ 25,354 | $ 8,105 | $ (14,992) |
Provision for income taxes, Current | 17,164 | 26,489 | 17,169 |
Provision for income taxes, Deferred | (123) | (10,947) | 459 |
Provision for income taxes | 17,041 | 15,542 | 17,628 |
UK | |||
Income Tax [Line Items] | |||
Pre-tax (loss)/income | (18,965) | (3,476) | 1,616 |
Provision for income taxes, Current | 1,585 | 535 | (410) |
Provision for income taxes, Deferred | (2,262) | (1,279) | (402) |
Provision for income taxes | (677) | (744) | (812) |
Bermuda | |||
Income Tax [Line Items] | |||
Pre-tax (loss)/income | (4,315) | (25,702) | (17,696) |
Provision for income taxes, Current | 0 | 0 | 0 |
Provision for income taxes, Deferred | 0 | 0 | 0 |
Provision for income taxes | 0 | 0 | 0 |
United States | |||
Income Tax [Line Items] | |||
Pre-tax (loss)/income | 1,439 | 312 | (3,955) |
Provision for income taxes, Current | 1,310 | 1,867 | (369) |
Provision for income taxes, Deferred | 1,698 | (193) | 100 |
Provision for income taxes | 3,008 | 1,674 | (269) |
Brazil | |||
Income Tax [Line Items] | |||
Pre-tax (loss)/income | 10,380 | 21,275 | 13,912 |
Provision for income taxes, Current | 2,768 | 7,872 | 6,598 |
Provision for income taxes, Deferred | 760 | (447) | (3,791) |
Provision for income taxes | 3,528 | 7,425 | 2,807 |
Italy | |||
Income Tax [Line Items] | |||
Pre-tax (loss)/income | 17,351 | 9,572 | 20,313 |
Provision for income taxes, Current | 4,006 | 6,752 | 4,753 |
Provision for income taxes, Deferred | (824) | (1,738) | 4,390 |
Provision for income taxes | 3,182 | 5,014 | 9,143 |
Peru | |||
Income Tax [Line Items] | |||
Pre-tax (loss)/income | 12,078 | 9,505 | 8,670 |
Provision for income taxes, Current | 3,154 | 3,923 | 3,361 |
Provision for income taxes, Deferred | (677) | (1,652) | (671) |
Provision for income taxes | 2,477 | 2,271 | 2,690 |
Rest of the world | |||
Income Tax [Line Items] | |||
Pre-tax (loss)/income | 7,386 | (3,381) | (37,852) |
Provision for income taxes, Current | 4,341 | 5,540 | 3,236 |
Provision for income taxes, Deferred | 1,182 | (5,638) | 833 |
Provision for income taxes | $ 5,523 | $ (98) | $ 4,069 |
Income taxes - Reconciliation o
Income taxes - Reconciliation of tax charge at statutory tax rate to provision for income taxes (Details) - USD ($) $ in Thousands | Apr. 01, 2020 | Apr. 01, 2017 | Apr. 01, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Income Tax Examination [Line Items] | ||||||||||
Earnings/(losses) before provision for income taxes and earnings from unconsolidated companies, net of tax | $ 25,354 | $ 8,105 | $ (14,992) | |||||||
Tax charge at statutory rate of 15%, Nil% and Nil% | 3,803 | 0 | 0 | |||||||
Exchange rate movements on deferred tax | (1,912) | (3,680) | (3,207) | |||||||
Notional interest deductions | (1,867) | (1,622) | (1,075) | |||||||
Imputed cross border charges | 716 | 0 | 0 | |||||||
Disallowable goodwill impairment charges | 2,198 | 0 | 0 | |||||||
Other permanent disallowable expenditure/(income) | 5,762 | 2,566 | 1,749 | |||||||
Unrecognized tax loss generated on disposal of Hotel Ritz by Belmond | (16,029) | |||||||||
Change in valuation allowance | 16,320 | 4,573 | 13,015 | |||||||
Difference in taxation rates | 12,948 | 15,089 | 7,353 | |||||||
Change in provisions for uncertain tax positions | 279 | 545 | (1,788) | |||||||
Change in tax rates | (5,121) | (2,081) | (276) | |||||||
Deferred tax charge for derivatives | 0 | 0 | 2,119 | |||||||
Other | (56) | 152 | (262) | |||||||
Provision for income taxes | $ 17,041 | 15,542 | 17,628 | |||||||
Hotel Ritz, Madrid | ||||||||||
Income Tax Examination [Line Items] | ||||||||||
Unrecognized tax loss generated on disposal of Hotel Ritz by Belmond | $ 0 | $ 0 | ||||||||
Her Majesty's Revenue and Customs (HMRC) | Foreign Tax Authority | ||||||||||
Income Tax Examination [Line Items] | ||||||||||
Statutory tax rate, percentage | 20.00% | 15.00% | ||||||||
Her Majesty's Revenue and Customs (HMRC) | Foreign Tax Authority | Scenario, Forecast | ||||||||||
Income Tax Examination [Line Items] | ||||||||||
Statutory tax rate, percentage | 18.00% | 19.00% | ||||||||
Office of the Tax Commissioner, Bermuda | Foreign Tax Authority | ||||||||||
Income Tax Examination [Line Items] | ||||||||||
Statutory tax rate, percentage | 0.00% | 15.00% | ||||||||
Ministry of Economic Affairs and Finance, Italy | Foreign Tax Authority | Scenario, Forecast | ||||||||||
Income Tax Examination [Line Items] | ||||||||||
Statutory tax rate, percentage | 24.00% | 27.50% |
Income taxes - Schedule of net
Income taxes - Schedule of net deferred tax liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Net deferred tax liabilities | |||
Operating loss carry-forwards | $ 89,513 | $ 111,779 | $ 122,500 |
Pensions | 63 | 477 | 321 |
Share-based compensation | 2,978 | 3,872 | 3,146 |
Trademarks | 0 | 0 | 5,075 |
Other | 8,952 | 11,559 | 9,173 |
Less: Valuation allowance | (69,928) | (91,462) | (110,780) |
Net deferred tax assets | 31,578 | 36,225 | 29,435 |
Other | (7,427) | (6,138) | (7,962) |
Property, plant and equipment | (147,265) | (162,625) | (183,174) |
Deferred tax liabilities | (154,692) | (168,763) | (191,136) |
Net deferred tax liabilities | $ (123,114) | $ (132,538) | $ (161,701) |
Income taxes - Reconciliation94
Income taxes - Reconciliation of unrecognized tax benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of unrecognized tax benefits | |||
Balance at the beginning of the year | $ 3,437 | $ 2,988 | $ 4,581 |
Additional uncertain tax provision identified during the year | 78 | 523 | 2,720 |
Increase to uncertain tax provision on prior year positions | 236 | 49 | 737 |
Uncertain tax provisions paid during the year | 0 | (49) | (737) |
Decrease to uncertain tax provisions on prior year positions | 0 | 0 | (3,924) |
Decreases as a result of expiration of the statute of limitations | (35) | (27) | (387) |
Foreign exchange | (38) | (47) | (2) |
Balance at the end of the year | 3,678 | 3,437 | 2,988 |
Principal | |||
Reconciliation of unrecognized tax benefits | |||
Balance at the beginning of the year | 2,966 | 2,935 | 2,874 |
Additional uncertain tax provision identified during the year | 62 | 90 | 2,716 |
Increase to uncertain tax provision on prior year positions | 0 | 49 | 559 |
Uncertain tax provisions paid during the year | 0 | (49) | (559) |
Decrease to uncertain tax provisions on prior year positions | 0 | 0 | (2,302) |
Decreases as a result of expiration of the statute of limitations | (30) | (20) | (351) |
Foreign exchange | (31) | (39) | (2) |
Balance at the end of the year | 2,967 | 2,966 | 2,935 |
Interest | |||
Reconciliation of unrecognized tax benefits | |||
Balance at the beginning of the year | 416 | 7 | 1,174 |
Additional uncertain tax provision identified during the year | 7 | 413 | (4) |
Increase to uncertain tax provision on prior year positions | 236 | 0 | 138 |
Uncertain tax provisions paid during the year | 0 | 0 | (138) |
Decrease to uncertain tax provisions on prior year positions | 0 | 0 | (1,127) |
Decreases as a result of expiration of the statute of limitations | (2) | (3) | (36) |
Foreign exchange | (1) | (1) | 0 |
Balance at the end of the year | 656 | 416 | 7 |
Penalties | |||
Reconciliation of unrecognized tax benefits | |||
Balance at the beginning of the year | 55 | 46 | 533 |
Additional uncertain tax provision identified during the year | 9 | 20 | 8 |
Increase to uncertain tax provision on prior year positions | 0 | 0 | 40 |
Uncertain tax provisions paid during the year | 0 | 0 | (40) |
Decrease to uncertain tax provisions on prior year positions | 0 | 0 | (495) |
Decreases as a result of expiration of the statute of limitations | (3) | (4) | 0 |
Foreign exchange | (6) | (7) | 0 |
Balance at the end of the year | $ 55 | $ 55 | $ 46 |
Interest expense (Details)
Interest expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest Expense [Abstract] | |||
Interest expense on long-term debt and obligations under capital lease | $ 27,380 | $ 30,270 | $ 28,218 |
Withholding tax provision classified as interest | (1,476) | 2,576 | 0 |
Interest on legal settlements | 3,294 | 0 | 0 |
Amortization of debt issuance costs and discount on secured term loan | 2,903 | 3,921 | 7,196 |
Interest capitalized | 0 | 0 | (1,088) |
Net interest expense | $ 32,101 | $ 36,767 | $ 34,326 |
Supplemental cash flow inform96
Supplemental cash flow information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Supplemental Cash Flow Elements [Abstract] | |||
Increase (Decrease) in Accounts Payable Related to Acquisition of Property, Plant, and Equipment | $ (229) | $ 476 | |
Cash paid during the period for: | |||
Interest | 27,828 | 30,147 | $ 27,320 |
Income taxes, net of refunds | $ 18,306 | $ 21,454 | $ 22,275 |
Restricted cash (Details)
Restricted cash (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 3,317 | $ 2,673 |
Refundable and non-refundable cash deposits held with banks pending completion of asset sales | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 0 | 500 |
Cash deposits required to be held with lending banks as collateral | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 749 | 768 |
Prepaid customer deposits which will be released to Belmond under its revenue recognition policy | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 1,909 | 647 |
Bonds and guarantees | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 659 | 758 |
Other assets | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash classified as long-term | $ 749 | $ 768 |
Shareholders' equity (Details)
Shareholders' equity (Details) | 12 Months Ended | |
Dec. 31, 2015vote / shares$ / sharesshares | Dec. 31, 2014$ / sharesshares | |
Class of Stock [Line Items] | ||
Authorized preferred shares | 30,000,000 | 30,000,000 |
Preferred shares, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 |
Class A common shares | ||
Class of Stock [Line Items] | ||
Common stock shares authorized | 240,000,000 | 240,000,000 |
Voting right per share | vote / shares | 0.1 | |
Class B common shares | ||
Class of Stock [Line Items] | ||
Common stock shares authorized | 120,000,000 | 120,000,000 |
Voting right per share | vote / shares | 1 | |
Reduction due to class B common shares owned by a subsidiary (in shares) | 18,044,478 | 18,044,478 |
Preferred shares at par value | ||
Class of Stock [Line Items] | ||
Authorized preferred shares | 30,000,000 | |
Preferred shares, par value (in dollars per share) | $ / shares | $ 0.01 | |
Series A junior participating preferred shares | ||
Class of Stock [Line Items] | ||
Preferred stock reserved for issuance | 500,000 |
Shareholders' equity - Sharehol
Shareholders' equity - Shareholders' rights plan (Details) | 12 Months Ended |
Dec. 31, 2015multiplier$ / sharesshares | |
Class of Stock [Line Items] | |
Fraction of newly issued share of Series A junior participating preferred stock that could be purchased for each Right | shares | 0.01 |
Purchase price of preferred stock (in dollars per share) | $ 70 |
Percentage of assets or earning power sold allowing the right to receive common stock of acquiring company | 50.00% |
Value of a share of the Company's common stock to be received upon the exercise of the right if the Company is acquired or 50 percent or more of its consolidated assets or earning power is sold, expressed as a multiple of the exercise price of the right | multiplier | 2 |
Percentage of common stock to be acquired in which the Company's board of directors may exchange all or some of the rights, minimum | 15.00% |
Percentage of common stock to be acquired in which the Company's board of directors may exchange all or some of the rights, maximum (less than) | 50.00% |
Redemption price per right at any time prior to the tenth day following the date on which a person acquires beneficial ownership of 15% or more of the outstanding class A or class B common shares (in dollars per share) | $ 0.05 |
Class A common shares | |
Class of Stock [Line Items] | |
Minimum percentage of common stock to be acquired for shareholder rights to become exercisable | 15.00% |
Minimum percentage of common stock to be acquired in a tender offer or exchange offer for shareholder rights to become exercisable | 30.00% |
Class B common shares | |
Class of Stock [Line Items] | |
Minimum percentage of common stock to be acquired for shareholder rights to become exercisable | 15.00% |
Minimum percentage of common stock to be acquired in a tender offer or exchange offer for shareholder rights to become exercisable | 30.00% |
Share-based compensation pla100
Share-based compensation plans (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015USD ($)share_based_planshares | Dec. 31, 2014USD ($)shares | Dec. 31, 2013USD ($)shares | Dec. 31, 2010shares | Jun. 30, 2009shares | |
Share-based compensation plans | |||||
Number of share-based compensation plans | share_based_plan | 2 | ||||
Compensation cost | $ | $ 6,707 | $ 7,928 | $ 10,388 | ||
Cash received from exercised options and vested awards | $ | 35 | $ 19 | $ 7 | ||
Total unrecognized compensation cost related to unexercised stock options and unvested share awards | $ | $ 9,842 | ||||
Total unrecognized compensation cost related to unexercised stock options and unvested share awards, recognition period (in months) | 23 months | ||||
2009 share award and incentive plan | Class A common shares | |||||
Share-based compensation plans | |||||
Number of shares reserved for issuance | 1,084,550 | ||||
Increase in number of shares authorized (in shares) | 5,000,000 | 4,000,000 | |||
Share options | Class A common shares | |||||
Share-based compensation plans | |||||
Award expiration period | 10 years | ||||
Share options | 2000 and 2004 stock option plans | Class A common shares | |||||
Share-based compensation plans | |||||
Award expiration period | 10 years | ||||
Award vesting period | 3 years | ||||
Number of shares available for grant | 0 | ||||
Fair value of options exercised | $ | $ 57 | ||||
Number of options vested during the period | 0 | ||||
Granted (in shares) | 0 | 0 | |||
Share options | 2000 stock option plan | Class A common shares | |||||
Share-based compensation plans | |||||
Maximum number of options to purchase class A common shares under the plan (in shares) | 750,000 | ||||
Number of shares reserved for issuance | 0 | ||||
Share options | 2004 stock option plan | Class A common shares | |||||
Share-based compensation plans | |||||
Maximum number of options to purchase class A common shares under the plan (in shares) | 1,000,000 | ||||
Number of shares reserved for issuance | 85,650 | ||||
Share options | 2009 share award and incentive plan | Class A common shares | |||||
Share-based compensation plans | |||||
Fair value of options exercised | $ | $ 431 | ||||
Number of options vested during the period | 415,650 | ||||
Granted (in shares) | 759,474 | 771,133 | |||
Total fair value of stock options granted | $ | $ 2,366 | ||||
Fair value of options that became exercisable during the period | $ | $ 2,614 | ||||
Deferred shares | Class A common shares | |||||
Share-based compensation plans | |||||
Award expiration period | 4 years | ||||
Deferred shares | 2009 share award and incentive plan | Class A common shares | |||||
Share-based compensation plans | |||||
Number of shares reserved for issuance | 1,162,187 | ||||
Fair value of awards issued during the period | $ | $ 7,622 | ||||
Fair value of shares vested in the period | $ | $ 5,809 | ||||
Options, vested and expected to vest, outstanding, number | 0 | ||||
Deferred shares without performance criteria | 2009 share award and incentive plan | Class A common shares | |||||
Share-based compensation plans | |||||
Number of shares reserved for issuance | 760,128 | ||||
Deferred shares with performance criteria | 2009 share award and incentive plan | Class A common shares | |||||
Share-based compensation plans | |||||
Number of shares reserved for issuance | 402,059 |
Share-based compensation pla101
Share-based compensation plans - Schedule of status of options, and changes during the period (Details) - Share options - Class A common shares - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
2000 and 2004 stock option plans | ||
Number of shares subject to options | ||
Outstanding (in shares) | 216,350 | 286,800 |
Granted (in shares) | 0 | 0 |
Exercised (in shares) | (29,262) | (6,726) |
Forfeited, cancelled or expired (in shares) | (101,438) | (63,724) |
Outstanding (in shares) | 85,650 | 216,350 |
Exercisable (in shares) | 85,650 | |
Weighted average exercise price | ||
Outstanding, weighted average exercise price (in dollars per share) | $ 30.45 | $ 29.91 |
Granted, weighted average exercise price (in dollars per share) | 0 | 0 |
Exercised, weighted average exercise price (in dollars per share) | 5.89 | 6 |
Forfeited, cancelled or expired, weighted average exercise price (in dollars per share) | 32.59 | 30.61 |
Outstanding, weighted average exercise price (in dollars per share) | 36.30 | $ 30.45 |
Exercisable (in dollars per share) | $ 36.30 | |
Weighted average remaining contractual life | ||
Outstanding, weighted average remaining contractual life | 2 years | |
Exercisable, weighted average remaining contractual life | 2 years | |
Aggregate intrinsic value | ||
Outstanding, aggregate intrinsic value | $ 83 | |
Exercisable, aggregate intrinsic value | $ 83 | |
2009 share award and incentive plan | ||
Number of shares subject to options | ||
Outstanding (in shares) | 3,089,633 | 2,771,500 |
Granted (in shares) | 759,474 | 771,133 |
Exercised (in shares) | (100,262) | (68,106) |
Forfeited, cancelled or expired (in shares) | (1,045,888) | (384,894) |
Outstanding (in shares) | 2,702,957 | 3,089,633 |
Exercisable (in shares) | 1,047,650 | |
Weighted average exercise price | ||
Outstanding, weighted average exercise price (in dollars per share) | $ 11.20 | $ 10.67 |
Granted, weighted average exercise price (in dollars per share) | 10.48 | 12.44 |
Exercised, weighted average exercise price (in dollars per share) | 8.60 | 9.10 |
Forfeited, cancelled or expired, weighted average exercise price (in dollars per share) | 11.51 | 10.26 |
Outstanding, weighted average exercise price (in dollars per share) | 10.97 | $ 11.20 |
Exercisable (in dollars per share) | $ 9.79 | |
Weighted average remaining contractual life | ||
Outstanding, weighted average remaining contractual life | 7 years 8 months | |
Exercisable, weighted average remaining contractual life | 5 years 10 months | |
Aggregate intrinsic value | ||
Outstanding, aggregate intrinsic value | $ 888 | |
Exercisable, aggregate intrinsic value | $ 644 |
Share-based compensation pla102
Share-based compensation plans - Schedule of options outstanding (Details) - Share options - Class A common shares | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
2000 and 2004 stock option plans | |
Share-based compensation plans | |
Outstanding (in shares) | 85,650 |
Exercisable (in shares) | 85,650 |
2000 and 2004 stock option plans | Exercise price $5.89 | |
Share-based compensation plans | |
Outstanding (in shares) | 23,100 |
Exercisable (in shares) | 23,100 |
Remaining contractual lives in years | 2 years 10 months 24 days |
Exercise prices for outstanding options (in dollars per share) | $ / shares | $ 5.89 |
Exercise prices for exercisable options (in dollars per share) | $ / shares | $ 5.89 |
2000 and 2004 stock option plans | Exercise price $34.90 | |
Share-based compensation plans | |
Outstanding (in shares) | 1,050 |
Exercisable (in shares) | 1,050 |
Remaining contractual lives in years | 9 months 6 days |
Exercise prices for outstanding options (in dollars per share) | $ / shares | $ 34.90 |
Exercise prices for exercisable options (in dollars per share) | $ / shares | $ 34.90 |
2000 and 2004 stock option plans | Exercise price $35.85 | |
Share-based compensation plans | |
Outstanding (in shares) | 6,550 |
Exercisable (in shares) | 6,550 |
Remaining contractual lives in years | 2 years 8 months 12 days |
Exercise prices for outstanding options (in dollars per share) | $ / shares | $ 35.85 |
Exercise prices for exercisable options (in dollars per share) | $ / shares | $ 35.85 |
2000 and 2004 stock option plans | Exercise price $36.50 | |
Share-based compensation plans | |
Outstanding (in shares) | 9,700 |
Exercisable (in shares) | 9,700 |
Remaining contractual lives in years | 6 months |
Exercise prices for outstanding options (in dollars per share) | $ / shares | $ 36.50 |
Exercise prices for exercisable options (in dollars per share) | $ / shares | $ 36.50 |
2000 and 2004 stock option plans | Exercise price $42.87 | |
Share-based compensation plans | |
Outstanding (in shares) | 1,050 |
Exercisable (in shares) | 1,050 |
Remaining contractual lives in years | 10 months 24 days |
Exercise prices for outstanding options (in dollars per share) | $ / shares | $ 42.87 |
Exercise prices for exercisable options (in dollars per share) | $ / shares | $ 42.87 |
2000 and 2004 stock option plans | Exercise price $46.08 | |
Share-based compensation plans | |
Outstanding (in shares) | 5,550 |
Exercisable (in shares) | 5,550 |
Remaining contractual lives in years | 2 years 4 months 24 days |
Exercise prices for outstanding options (in dollars per share) | $ / shares | $ 46.08 |
Exercise prices for exercisable options (in dollars per share) | $ / shares | $ 46.08 |
2000 and 2004 stock option plans | Exercise price $51.90 | |
Share-based compensation plans | |
Outstanding (in shares) | 4,950 |
Exercisable (in shares) | 4,950 |
Remaining contractual lives in years | 2 years 2 months 12 days |
Exercise prices for outstanding options (in dollars per share) | $ / shares | $ 51.90 |
Exercise prices for exercisable options (in dollars per share) | $ / shares | $ 51.90 |
2000 and 2004 stock option plans | Exercise price $52.51 | |
Share-based compensation plans | |
Outstanding (in shares) | 27,250 |
Exercisable (in shares) | 27,250 |
Remaining contractual lives in years | 1 year 8 months 12 days |
Exercise prices for outstanding options (in dollars per share) | $ / shares | $ 52.51 |
Exercise prices for exercisable options (in dollars per share) | $ / shares | $ 52.51 |
2000 and 2004 stock option plans | Exercise price, additional grant, $52.51 | |
Share-based compensation plans | |
Outstanding (in shares) | 1,050 |
Exercisable (in shares) | 1,050 |
Remaining contractual lives in years | 1 year 2 months 12 days |
Exercise prices for outstanding options (in dollars per share) | $ / shares | $ 52.51 |
Exercise prices for exercisable options (in dollars per share) | $ / shares | $ 52.51 |
2000 and 2004 stock option plans | Exercise price $52.59 | |
Share-based compensation plans | |
Outstanding (in shares) | 2,350 |
Exercisable (in shares) | 2,350 |
Remaining contractual lives in years | 1 year 6 months |
Exercise prices for outstanding options (in dollars per share) | $ / shares | $ 52.59 |
Exercise prices for exercisable options (in dollars per share) | $ / shares | $ 52.59 |
2000 and 2004 stock option plans | Exercise price $59.23 | |
Share-based compensation plans | |
Outstanding (in shares) | 3,050 |
Exercisable (in shares) | 3,050 |
Remaining contractual lives in years | 1 year 10 months 24 days |
Exercise prices for outstanding options (in dollars per share) | $ / shares | $ 59.23 |
Exercise prices for exercisable options (in dollars per share) | $ / shares | $ 59.23 |
2009 share award and incentive plan | |
Share-based compensation plans | |
Outstanding (in shares) | 2,702,957 |
Exercisable (in shares) | 1,047,650 |
2009 share award and incentive plan | Exercise price $8.38 | |
Share-based compensation plans | |
Outstanding (in shares) | 28,600 |
Exercisable (in shares) | 28,600 |
Remaining contractual lives in years | 3 years 4 months 24 days |
Exercise prices for outstanding options (in dollars per share) | $ / shares | $ 8.38 |
Exercise prices for exercisable options (in dollars per share) | $ / shares | $ 8.38 |
2009 share award and incentive plan | Exercise price $7.71 | |
Share-based compensation plans | |
Outstanding (in shares) | 5,000 |
Exercisable (in shares) | 5,000 |
Remaining contractual lives in years | 3 years 6 months |
Exercise prices for outstanding options (in dollars per share) | $ / shares | $ 7.71 |
Exercise prices for exercisable options (in dollars per share) | $ / shares | $ 7.71 |
2009 share award and incentive plan | Exercise price $8.91 | |
Share-based compensation plans | |
Outstanding (in shares) | 55,700 |
Exercisable (in shares) | 55,700 |
Remaining contractual lives in years | 3 years 10 months 24 days |
Exercise prices for outstanding options (in dollars per share) | $ / shares | $ 8.91 |
Exercise prices for exercisable options (in dollars per share) | $ / shares | $ 8.91 |
2009 share award and incentive plan | Exercise price $8.37 | |
Share-based compensation plans | |
Outstanding (in shares) | 42,200 |
Exercisable (in shares) | 42,200 |
Remaining contractual lives in years | 4 years 6 months |
Exercise prices for outstanding options (in dollars per share) | $ / shares | $ 8.37 |
Exercise prices for exercisable options (in dollars per share) | $ / shares | $ 8.37 |
2009 share award and incentive plan | Exercise price $11.44 | |
Share-based compensation plans | |
Outstanding (in shares) | 127,650 |
Exercisable (in shares) | 127,650 |
Remaining contractual lives in years | 4 years 10 months 24 days |
Exercise prices for outstanding options (in dollars per share) | $ / shares | $ 11.44 |
Exercise prices for exercisable options (in dollars per share) | $ / shares | $ 11.44 |
2009 share award and incentive plan | Exercise price $11.69 | |
Share-based compensation plans | |
Outstanding (in shares) | 98,200 |
Exercisable (in shares) | 98,200 |
Remaining contractual lives in years | 5 years 4 months 24 days |
Exercise prices for outstanding options (in dollars per share) | $ / shares | $ 11.69 |
Exercise prices for exercisable options (in dollars per share) | $ / shares | $ 11.69 |
2009 share award and incentive plan | Exercise price $8.06 | |
Share-based compensation plans | |
Outstanding (in shares) | 242,950 |
Exercisable (in shares) | 242,950 |
Remaining contractual lives in years | 5 years 10 months 24 days |
Exercise prices for outstanding options (in dollars per share) | $ / shares | $ 8.06 |
Exercise prices for exercisable options (in dollars per share) | $ / shares | $ 8.06 |
2009 share award and incentive plan | Exercise price $9.95 | |
Share-based compensation plans | |
Outstanding (in shares) | 31,700 |
Exercisable (in shares) | 31,700 |
Remaining contractual lives in years | 6 years 2 months 12 days |
Exercise prices for outstanding options (in dollars per share) | $ / shares | $ 9.95 |
Exercise prices for exercisable options (in dollars per share) | $ / shares | $ 9.95 |
2009 share award and incentive plan | Exercise price $8.42 | |
Share-based compensation plans | |
Outstanding (in shares) | 159,500 |
Exercisable (in shares) | 159,500 |
Remaining contractual lives in years | 6 years 6 months |
Exercise prices for outstanding options (in dollars per share) | $ / shares | $ 8.42 |
Exercise prices for exercisable options (in dollars per share) | $ / shares | $ 8.42 |
2009 share award and incentive plan | Exercise price $11.32 | |
Share-based compensation plans | |
Outstanding (in shares) | 256,150 |
Exercisable (in shares) | 256,150 |
Remaining contractual lives in years | 6 years 10 months 24 days |
Exercise prices for outstanding options (in dollars per share) | $ / shares | $ 11.32 |
Exercise prices for exercisable options (in dollars per share) | $ / shares | $ 11.32 |
2009 share award and incentive plan | Exercise price, additional grant, $9.95 | |
Share-based compensation plans | |
Outstanding (in shares) | 31,700 |
Exercisable (in shares) | 0 |
Remaining contractual lives in years | 7 years 1 month 9 days |
Exercise prices for outstanding options (in dollars per share) | $ / shares | $ 9.95 |
Exercise prices for exercisable options (in dollars per share) | $ / shares | $ 0 |
2009 share award and incentive plan | Exercise price $11.74 | |
Share-based compensation plans | |
Outstanding (in shares) | 135,300 |
Exercisable (in shares) | 0 |
Remaining contractual lives in years | 7 years 5 months 12 days |
Exercise prices for outstanding options (in dollars per share) | $ / shares | $ 11.74 |
Exercise prices for exercisable options (in dollars per share) | $ / shares | $ 0 |
2009 share award and incentive plan | Exercise price $14.51 | |
Share-based compensation plans | |
Outstanding (in shares) | 267,450 |
Exercisable (in shares) | 0 |
Remaining contractual lives in years | 7 years 11 months 12 days |
Exercise prices for outstanding options (in dollars per share) | $ / shares | $ 14.51 |
Exercise prices for exercisable options (in dollars per share) | $ / shares | $ 0 |
2009 share award and incentive plan | Exercise price $14.08 | |
Share-based compensation plans | |
Outstanding (in shares) | 145,300 |
Exercisable (in shares) | 0 |
Remaining contractual lives in years | 8 years 5 months 20 days |
Exercise prices for outstanding options (in dollars per share) | $ / shares | $ 14.08 |
Exercise prices for exercisable options (in dollars per share) | $ / shares | $ 0 |
2009 share award and incentive plan | Exercise price $11.57 | |
Share-based compensation plans | |
Outstanding (in shares) | 365,483 |
Exercisable (in shares) | 0 |
Remaining contractual lives in years | 8 years 11 months 12 days |
Exercise prices for outstanding options (in dollars per share) | $ / shares | $ 11.57 |
Exercise prices for exercisable options (in dollars per share) | $ / shares | $ 0 |
2009 share award and incentive plan | Exercise price $12.50 | |
Share-based compensation plans | |
Outstanding (in shares) | 143,874 |
Exercisable (in shares) | 0 |
Remaining contractual lives in years | 9 years 5 months 11 days |
Exercise prices for outstanding options (in dollars per share) | $ / shares | $ 12.50 |
Exercise prices for exercisable options (in dollars per share) | $ / shares | $ 0 |
2009 share award and incentive plan | Exercise price $13.75 | |
Share-based compensation plans | |
Outstanding (in shares) | 96,165 |
Exercisable (in shares) | 0 |
Remaining contractual lives in years | 9 years 8 months 20 days |
Exercise prices for outstanding options (in dollars per share) | $ / shares | $ 13.75 |
Exercise prices for exercisable options (in dollars per share) | $ / shares | $ 0 |
2009 share award and incentive plan | Exercise price $8.98 | |
Share-based compensation plans | |
Outstanding (in shares) | 470,035 |
Exercisable (in shares) | 0 |
Remaining contractual lives in years | 9 years 11 months 20 days |
Exercise prices for outstanding options (in dollars per share) | $ / shares | $ 8.98 |
Exercise prices for exercisable options (in dollars per share) | $ / shares | $ 0 |
Share-based compensation pla103
Share-based compensation plans - Fair value assumptions for share-based compensation plans (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based compensation plans | |||
Expected dividends per share (in dollars per share) | $ 0 | $ 0 | $ 0 |
Share options | |||
Share-based compensation plans | |||
Expected life of awards (in years) | 4 years 6 months | ||
Expected share price volatility, minimum (percentage) | 28.00% | 45.00% | 50.00% |
Expected share price volatility, maximum (percentage) | 58.00% | 46.00% | 60.00% |
Risk-free interest rate, minimum (percentage) | 0.65% | 1.53% | 1.30% |
Risk-free interest rate, maximum (percentage) | 1.83% | 1.71% | 1.74% |
Share options | Minimum | |||
Share-based compensation plans | |||
Expected life of awards (in years) | 2 years 6 months | 4 years 6 months | |
Share options | Maximum | |||
Share-based compensation plans | |||
Expected life of awards (in years) | 6 years 10 months 24 days | 8 years | |
Share options | 2009 share award and incentive plan | Class A common shares | |||
Share-based compensation plans | |||
Granted (in shares) | 759,474 | 771,133 | |
Exercise price (in dollars per share) | $ 10.48 | $ 12.44 | |
Share options | Granted December 11, 2015 | Vesting December 11, 2019 | 2009 share award and incentive plan | |||
Share-based compensation plans | |||
Exercise price (in dollars per share) | $ 8.98 | ||
Expected share price volatility (as a percent) | 42.00% | ||
Risk-free interest rate (as a percent) | 1.56% | ||
Expected dividends per share (in dollars per share) | $ 0 | ||
Expected life of awards (in years) | 5 years 6 months | ||
Share options | Granted December 11, 2015 | Vesting December 11, 2019 | 2009 share award and incentive plan | Class A common shares | |||
Share-based compensation plans | |||
Granted (in shares) | 117,508 | ||
Share options | Granted December 11, 2015 | Vesting December 11, 2018 | 2009 share award and incentive plan | |||
Share-based compensation plans | |||
Exercise price (in dollars per share) | $ 8.98 | ||
Expected share price volatility (as a percent) | 41.00% | ||
Risk-free interest rate (as a percent) | 1.56% | ||
Expected dividends per share (in dollars per share) | $ 0 | ||
Expected life of awards (in years) | 4 years 6 months | ||
Share options | Granted December 11, 2015 | Vesting December 11, 2018 | 2009 share award and incentive plan | Class A common shares | |||
Share-based compensation plans | |||
Granted (in shares) | 117,509 | ||
Share options | Granted December 11, 2015 | Vesting December 11, 2017 | 2009 share award and incentive plan | |||
Share-based compensation plans | |||
Exercise price (in dollars per share) | $ 8.98 | ||
Expected share price volatility (as a percent) | 33.00% | ||
Risk-free interest rate (as a percent) | 1.16% | ||
Expected dividends per share (in dollars per share) | $ 0 | ||
Expected life of awards (in years) | 3 years 6 months | ||
Share options | Granted December 11, 2015 | Vesting December 11, 2017 | 2009 share award and incentive plan | Class A common shares | |||
Share-based compensation plans | |||
Granted (in shares) | 117,509 | ||
Share options | Granted December 11, 2015 | Vesting December 11, 2016 | 2009 share award and incentive plan | |||
Share-based compensation plans | |||
Exercise price (in dollars per share) | $ 8.98 | ||
Expected share price volatility (as a percent) | 28.00% | ||
Risk-free interest rate (as a percent) | 1.16% | ||
Expected dividends per share (in dollars per share) | $ 0 | ||
Expected life of awards (in years) | 2 years 6 months | ||
Share options | Granted December 11, 2015 | Vesting December 11, 2016 | 2009 share award and incentive plan | Class A common shares | |||
Share-based compensation plans | |||
Granted (in shares) | 117,509 | ||
Share options | Granted September 20, 2015 | Vesting September 20, 2019 | 2009 share award and incentive plan | |||
Share-based compensation plans | |||
Exercise price (in dollars per share) | $ 13.75 | ||
Expected share price volatility (as a percent) | 58.00% | ||
Risk-free interest rate (as a percent) | 1.83% | ||
Expected dividends per share (in dollars per share) | $ 0 | ||
Expected life of awards (in years) | 6 years 10 months 24 days | ||
Share options | Granted September 20, 2015 | Vesting September 20, 2019 | 2009 share award and incentive plan | Class A common shares | |||
Share-based compensation plans | |||
Granted (in shares) | 24,041 | ||
Share options | Granted September 20, 2015 | Vesting September 20, 2018 | 2009 share award and incentive plan | |||
Share-based compensation plans | |||
Exercise price (in dollars per share) | $ 13.75 | ||
Expected share price volatility (as a percent) | 43.00% | ||
Risk-free interest rate (as a percent) | 1.45% | ||
Expected dividends per share (in dollars per share) | $ 0 | ||
Expected life of awards (in years) | 5 years 7 months 6 days | ||
Share options | Granted September 20, 2015 | Vesting September 20, 2018 | 2009 share award and incentive plan | Class A common shares | |||
Share-based compensation plans | |||
Granted (in shares) | 24,041 | ||
Share options | Granted September 20, 2015 | Vesting September 20, 2017 | 2009 share award and incentive plan | |||
Share-based compensation plans | |||
Exercise price (in dollars per share) | $ 13.75 | ||
Expected share price volatility (as a percent) | 41.00% | ||
Risk-free interest rate (as a percent) | 1.45% | ||
Expected dividends per share (in dollars per share) | $ 0 | ||
Expected life of awards (in years) | 4 years 4 months 24 days | ||
Share options | Granted September 20, 2015 | Vesting September 20, 2017 | 2009 share award and incentive plan | Class A common shares | |||
Share-based compensation plans | |||
Granted (in shares) | 24,041 | ||
Share options | Granted September 20, 2015 | Vesting September 20, 2016 | 2009 share award and incentive plan | |||
Share-based compensation plans | |||
Exercise price (in dollars per share) | $ 13.75 | ||
Expected share price volatility (as a percent) | 32.00% | ||
Risk-free interest rate (as a percent) | 0.97% | ||
Expected dividends per share (in dollars per share) | $ 0 | ||
Expected life of awards (in years) | 3 years 1 month 6 days | ||
Share options | Granted September 20, 2015 | Vesting September 20, 2016 | 2009 share award and incentive plan | Class A common shares | |||
Share-based compensation plans | |||
Granted (in shares) | 24,042 | ||
Share options | Granted June 19, 2015 | Vesting June 19, 2019 | 2009 share award and incentive plan | |||
Share-based compensation plans | |||
Exercise price (in dollars per share) | $ 12.50 | ||
Expected share price volatility (as a percent) | 43.00% | ||
Risk-free interest rate (as a percent) | 1.59% | ||
Expected dividends per share (in dollars per share) | $ 0 | ||
Expected life of awards (in years) | 5 years 6 months | ||
Share options | Granted June 19, 2015 | Vesting June 19, 2019 | 2009 share award and incentive plan | Class A common shares | |||
Share-based compensation plans | |||
Granted (in shares) | 48,319 | ||
Share options | Granted June 19, 2015 | Vesting June 19, 2018 | 2009 share award and incentive plan | |||
Share-based compensation plans | |||
Exercise price (in dollars per share) | $ 12.50 | ||
Expected share price volatility (as a percent) | 41.00% | ||
Risk-free interest rate (as a percent) | 1.59% | ||
Expected dividends per share (in dollars per share) | $ 0 | ||
Expected life of awards (in years) | 4 years 6 months | ||
Share options | Granted June 19, 2015 | Vesting June 19, 2018 | 2009 share award and incentive plan | Class A common shares | |||
Share-based compensation plans | |||
Granted (in shares) | 48,319 | ||
Share options | Granted June 19, 2015 | Vesting June 19, 2017 | 2009 share award and incentive plan | |||
Share-based compensation plans | |||
Exercise price (in dollars per share) | $ 12.50 | ||
Expected share price volatility (as a percent) | 35.00% | ||
Risk-free interest rate (as a percent) | 0.99% | ||
Expected dividends per share (in dollars per share) | $ 0 | ||
Expected life of awards (in years) | 3 years 6 months | ||
Share options | Granted June 19, 2015 | Vesting June 19, 2017 | 2009 share award and incentive plan | Class A common shares | |||
Share-based compensation plans | |||
Granted (in shares) | 48,318 | ||
Share options | Granted June 19, 2015 | Vesting June 19, 2016 | 2009 share award and incentive plan | |||
Share-based compensation plans | |||
Exercise price (in dollars per share) | $ 12.50 | ||
Expected share price volatility (as a percent) | 29.00% | ||
Risk-free interest rate (as a percent) | 0.65% | ||
Expected dividends per share (in dollars per share) | $ 0 | ||
Expected life of awards (in years) | 2 years 6 months | ||
Share options | Granted June 19, 2015 | Vesting June 19, 2016 | 2009 share award and incentive plan | Class A common shares | |||
Share-based compensation plans | |||
Granted (in shares) | 48,318 | ||
Restricted shares without performance criteria | Granted December 11, 2015 | Vesting June 19, 2016 | 2009 share award and incentive plan | |||
Share-based compensation plans | |||
Exercise price (in dollars per share) | $ 0.01 | ||
Restricted shares without performance criteria | Granted December 11, 2015 | Vesting June 19, 2016 | 2009 share award and incentive plan | Class A common shares | |||
Share-based compensation plans | |||
Granted (in shares) | 10,223 | ||
Restricted shares without performance criteria | Granted September 20, 2015 | Vesting December 31, 2016 | 2009 share award and incentive plan | |||
Share-based compensation plans | |||
Exercise price (in dollars per share) | $ 0.01 | ||
Restricted shares without performance criteria | Granted September 20, 2015 | Vesting December 31, 2016 | 2009 share award and incentive plan | Class A common shares | |||
Share-based compensation plans | |||
Granted (in shares) | 29,299 | ||
Restricted shares without performance criteria | Granted September 20, 2015 | Vesting December 31, 2017 | 2009 share award and incentive plan | |||
Share-based compensation plans | |||
Exercise price (in dollars per share) | $ 0.01 | ||
Restricted shares without performance criteria | Granted September 20, 2015 | Vesting December 31, 2017 | 2009 share award and incentive plan | Class A common shares | |||
Share-based compensation plans | |||
Granted (in shares) | 22,851 | ||
Restricted shares without performance criteria | Granted September 20, 2015 | Vesting December 31, 2018 | 2009 share award and incentive plan | |||
Share-based compensation plans | |||
Exercise price (in dollars per share) | $ 0.01 | ||
Restricted shares without performance criteria | Granted September 20, 2015 | Vesting December 31, 2018 | 2009 share award and incentive plan | Class A common shares | |||
Share-based compensation plans | |||
Granted (in shares) | 22,850 | ||
Restricted shares without performance criteria | Granted June 19, 2015 | Vesting June 19, 2018 | 2009 share award and incentive plan | |||
Share-based compensation plans | |||
Exercise price (in dollars per share) | $ 0.01 | ||
Restricted shares without performance criteria | Granted June 19, 2015 | Vesting June 19, 2018 | 2009 share award and incentive plan | Class A common shares | |||
Share-based compensation plans | |||
Granted (in shares) | 36,000 | ||
Restricted shares without performance criteria | Granted June 19, 2015 | Vesting June 19, 2016 | 2009 share award and incentive plan | |||
Share-based compensation plans | |||
Exercise price (in dollars per share) | $ 0.01 | ||
Restricted shares without performance criteria | Granted June 19, 2015 | Vesting June 19, 2016 | 2009 share award and incentive plan | Class A common shares | |||
Share-based compensation plans | |||
Granted (in shares) | 64,000 | ||
Deferred shares without performance criteria | Granted July 31, 2015 | Vesting July 31, 2016 | 2009 share award and incentive plan | |||
Share-based compensation plans | |||
Exercise price (in dollars per share) | $ 0.01 | ||
Deferred shares without performance criteria | Granted July 31, 2015 | Vesting July 31, 2016 | 2009 share award and incentive plan | Class A common shares | |||
Share-based compensation plans | |||
Granted (in shares) | 3,097 | ||
Deferred shares without performance criteria | Granted July 31, 2015 | Vesting July 31, 2017 | 2009 share award and incentive plan | |||
Share-based compensation plans | |||
Exercise price (in dollars per share) | $ 0.01 | ||
Deferred shares without performance criteria | Granted July 31, 2015 | Vesting July 31, 2017 | 2009 share award and incentive plan | Class A common shares | |||
Share-based compensation plans | |||
Granted (in shares) | 3,097 | ||
Deferred shares without performance criteria | Granted July 31, 2015 | Vesting July 31, 2018 | 2009 share award and incentive plan | |||
Share-based compensation plans | |||
Exercise price (in dollars per share) | $ 0.01 | ||
Deferred shares without performance criteria | Granted July 31, 2015 | Vesting July 31, 2018 | 2009 share award and incentive plan | Class A common shares | |||
Share-based compensation plans | |||
Granted (in shares) | 3,096 | ||
Deferred shares without performance criteria | Granted July 31, 2015 | Vesting July 31, 2019 | 2009 share award and incentive plan | |||
Share-based compensation plans | |||
Exercise price (in dollars per share) | $ 0.01 | ||
Deferred shares without performance criteria | Granted July 31, 2015 | Vesting July 31, 2019 | 2009 share award and incentive plan | Class A common shares | |||
Share-based compensation plans | |||
Granted (in shares) | 3,096 | ||
Deferred shares without performance criteria | Granted July 31, 2015 | Vesting January 1, 2016 | 2009 share award and incentive plan | |||
Share-based compensation plans | |||
Exercise price (in dollars per share) | $ 0.01 | ||
Deferred shares without performance criteria | Granted July 31, 2015 | Vesting January 1, 2016 | 2009 share award and incentive plan | Class A common shares | |||
Share-based compensation plans | |||
Granted (in shares) | 11,130 | ||
Deferred shares without performance criteria | Granted July 31, 2015 | Vesting January 1, 2017 | 2009 share award and incentive plan | |||
Share-based compensation plans | |||
Exercise price (in dollars per share) | $ 0.01 | ||
Deferred shares without performance criteria | Granted July 31, 2015 | Vesting January 1, 2017 | 2009 share award and incentive plan | Class A common shares | |||
Share-based compensation plans | |||
Granted (in shares) | 11,130 | ||
Deferred shares without performance criteria | Granted July 31, 2015 | Vesting January 1, 2018 | 2009 share award and incentive plan | |||
Share-based compensation plans | |||
Exercise price (in dollars per share) | $ 0.01 | ||
Deferred shares without performance criteria | Granted July 31, 2015 | Vesting January 1, 2018 | 2009 share award and incentive plan | Class A common shares | |||
Share-based compensation plans | |||
Granted (in shares) | 11,130 | ||
Deferred shares without performance criteria | Granted July 31, 2015 | Vesting January 1, 2019 | 2009 share award and incentive plan | |||
Share-based compensation plans | |||
Exercise price (in dollars per share) | $ 0.01 | ||
Deferred shares without performance criteria | Granted July 31, 2015 | Vesting January 1, 2019 | 2009 share award and incentive plan | Class A common shares | |||
Share-based compensation plans | |||
Granted (in shares) | 11,130 | ||
Deferred shares without performance criteria | Granted March 20, 2015 | Vesting March 20, 2018 | 2009 share award and incentive plan | |||
Share-based compensation plans | |||
Exercise price (in dollars per share) | $ 0.01 | ||
Deferred shares without performance criteria | Granted March 20, 2015 | Vesting March 20, 2018 | 2009 share award and incentive plan | Class A common shares | |||
Share-based compensation plans | |||
Granted (in shares) | 38,825 | ||
Deferred shares without performance criteria | Granted March 20, 2015 | Vesting March 20, 2019 | 2009 share award and incentive plan | |||
Share-based compensation plans | |||
Exercise price (in dollars per share) | $ 0.01 | ||
Deferred shares without performance criteria | Granted March 20, 2015 | Vesting March 20, 2019 | 2009 share award and incentive plan | Class A common shares | |||
Share-based compensation plans | |||
Granted (in shares) | 38,824 | ||
Deferred shares without performance criteria | Granted March 20, 2015 | Vesting March 20, 2017 | 2009 share award and incentive plan | |||
Share-based compensation plans | |||
Exercise price (in dollars per share) | $ 0.01 | ||
Deferred shares without performance criteria | Granted March 20, 2015 | Vesting March 20, 2017 | 2009 share award and incentive plan | Class A common shares | |||
Share-based compensation plans | |||
Granted (in shares) | 38,825 | ||
Deferred shares without performance criteria | Granted March 20, 2015 | Vesting March 20, 2016 | 2009 share award and incentive plan | |||
Share-based compensation plans | |||
Exercise price (in dollars per share) | $ 0.01 | ||
Deferred shares without performance criteria | Granted March 20, 2015 | Vesting March 20, 2016 | 2009 share award and incentive plan | Class A common shares | |||
Share-based compensation plans | |||
Granted (in shares) | 38,825 | ||
Deferred shares with performance criteria | Granted March 20, 2015 | Vesting March 20, 2018 | 2009 share award and incentive plan | |||
Share-based compensation plans | |||
Exercise price (in dollars per share) | $ 0.01 | ||
Deferred shares with performance criteria | Granted March 20, 2015 | Vesting March 20, 2018 | 2009 share award and incentive plan | Class A common shares | |||
Share-based compensation plans | |||
Granted (in shares) | 256,358 |
Share-based compensation pla104
Share-based compensation plans - Schedule of status of awards other than options, and changes during the period (Details) - Deferred shares - 2009 share award and incentive plan - Class A common shares - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Shares | ||
Outstanding (in shares) | 1,851,309 | 1,481,827 |
Granted (in shares) | 653,787 | 786,809 |
Vested and issued (in shares) | (535,407) | (251,600) |
Forfeited, cancelled or expired (in shares) | (807,502) | (165,727) |
Outstanding (in shares) | 1,162,187 | 1,851,309 |
Weighted average exercise price | ||
Outstanding, weighted average exercise price (in dollars per share) | $ 0.01 | $ 0.01 |
Granted, weighted average exercise price (in dollars per share) | 0.01 | 0.01 |
Vested and issued, weighted average exercise price (in dollars per share) | 0.01 | 0.01 |
Forfeited, cancelled or expired, weighted average exercise price (in dollars per share) | 0.01 | 0.01 |
Outstanding, weighted average exercise price (in dollars per share) | $ 0.01 | $ 0.01 |
Aggregate intrinsic value | ||
Outstanding, aggregate intrinsic value | $ 11,029 |
Commitments and contingencie105
Commitments and contingencies (Details) BRL in Thousands, $ in Thousands | Jun. 26, 2015USD ($) | Mar. 02, 2010USD ($) | Dec. 31, 2015USD ($)installment | Dec. 31, 2015BRLinstallment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2015BRL | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Mar. 31, 2015BRL | Feb. 28, 2013USD ($) |
Commitments | |||||||||||
Impairment of long-lived assets to be disposed of | $ 7,031 | ||||||||||
Operating leases, future minimum payments due, next 12 months | $ 8,344 | ||||||||||
Rental expense | $ 10,675 | $ 13,007 | 12,054 | ||||||||
Percentage of purchase price to be paid for purchase of Hotel Cipriani in Venice, Italy by James Sherwood on exercise of first refusal right | 80.00% | 80.00% | |||||||||
Percentage of purchase price to be paid for purchase of Hotel Cipriani in Venice, Italy by James Sherwood on exercise of purchase option by non-recourse promissory note | 100.00% | 100.00% | |||||||||
Number of installments for payment of purchase price for Hotel Cipriani in Venice Italy by James Sherwood on exercise of purchase option by non-recourse promissory note | installment | 10 | 10 | |||||||||
Significant acquisitions and disposals, length of time before expiry of former director's right of first refusal and purchase option after his death (in years) | 1 year | 1 year | |||||||||
Infringement litigation of Cipriani | |||||||||||
Commitments | |||||||||||
Amount received from defendants | $ 3,947 | ||||||||||
Amount receivable from defendants in installments | $ 9,833 | ||||||||||
Period for receivable amount from defendants in installments (over) (in years) | 5 years | ||||||||||
Amount receivable from defendants not yet recognized | $ 1,178 | ||||||||||
Copacabana Palace | Unasserted claim | |||||||||||
Commitments | |||||||||||
Maximum potential fine, not accrued | $ 27,000 | ||||||||||
Belmond Hotel das Cataratas | |||||||||||
Commitments | |||||||||||
Operating leases, future minimum payments due, next 12 months | $ 4,281 | BRL 16,715 | |||||||||
Annual rent payments | 2,834 | BRL 11,065 | |||||||||
Belmond Hotel das Cataratas | Favorable lease assets | |||||||||||
Commitments | |||||||||||
Amount reserved | 4,780 | 18,666 | |||||||||
Range of possible additional loss, minimum | 384 | 1,500 | |||||||||
Range of possible additional loss, maximum | 640 | BRL 2,500 | |||||||||
Estimate of possible loss | $ 4,354 | BRL 17,000 | |||||||||
Porto Cupecoy | Settlement with Taxing Authority | |||||||||||
Commitments | |||||||||||
Range of possible additional loss, maximum | 16,500 | ||||||||||
Ubud Hanging Gardens | |||||||||||
Commitments | |||||||||||
Litigation settlement amount | $ 8,500 | ||||||||||
Impairment of long-lived assets to be disposed of | $ 7,031 | ||||||||||
Purchase of property, plant and equipment | |||||||||||
Commitments | |||||||||||
Amount of outstanding contracts | $ 8,662 | $ 15,486 |
Commitments and contingencies -
Commitments and contingencies - Future operating lease payments (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Future rental payments under operating leases in respect of equipment rentals and leased premises | |
2,016 | $ 8,344 |
2,017 | 8,630 |
2,018 | 8,938 |
2,019 | 7,523 |
2,020 | 7,713 |
2021 and thereafter | 65,305 |
Future rental payments under operating leases | $ 106,453 |
Fair value measurements - Summa
Fair value measurements - Summary of valuation by the fair value hierarchy (Details) - Recurring basis - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Assets at fair value: | ||
Derivative financial instruments | $ 4 | $ 13 |
Total assets | 4 | 13 |
Liabilities at fair value: | ||
Derivative financial instruments | (4,464) | (3,602) |
Total net liabilities | (4,460) | (3,589) |
Level 1 | ||
Assets at fair value: | ||
Derivative financial instruments | 0 | 0 |
Total assets | 0 | 0 |
Liabilities at fair value: | ||
Derivative financial instruments | 0 | 0 |
Total net liabilities | 0 | 0 |
Level 2 | ||
Assets at fair value: | ||
Derivative financial instruments | 4 | 13 |
Total assets | 4 | 13 |
Liabilities at fair value: | ||
Derivative financial instruments | (4,464) | (3,602) |
Total net liabilities | (4,460) | (3,589) |
Level 3 | ||
Assets at fair value: | ||
Derivative financial instruments | 0 | 0 |
Total assets | 0 | 0 |
Liabilities at fair value: | ||
Derivative financial instruments | 0 | 0 |
Total net liabilities | $ 0 | $ 0 |
Fair value measurements - Estim
Fair value measurements - Estimated carrying values, fair values, and levels of the fair value hierarchy of long-term debt (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Estimated fair values of financial instruments (other than derivative financial instruments) | ||
Carrying amounts - Total long-term debt, before deduction of discount on secured term loan and debt issuance costs, excluding obligations under capital leases | $ 596,428 | $ 620,106 |
Level 3 | ||
Estimated fair values of financial instruments (other than derivative financial instruments) | ||
Fair value - Total long-term debt, before deduction of discount on secured term loan and debt issuance costs, excluding obligations under capital leases | $ 630,455 | $ 663,653 |
Fair value measurements - Non-f
Fair value measurements - Non-financial assets measured at fair value on a non-recurring basis (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment of property, plant and equipment of discontinued operations | $ (7,031,000) | ||
Impairment of goodwill of discontinued operations | $ (9,796,000) | $ 0 | 0 |
Impairment of intangible assets of discontinued operations | 0 | 0 | 0 |
Fair value measurements, non-recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Property, plant and equipment, fair value disclosure | 10,050,000 | 45,000,000 | |
Property, plant and equipment of discontinued operations, fair value disclosure | 0 | ||
Goodwill of discontinued operations, fair value disclosure | 0 | ||
Intangible assets of discontinued operations, fair value disclosure | 0 | ||
Level 1 | Fair value measurements, non-recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Property, plant and equipment, fair value disclosure | 0 | 0 | |
Property, plant and equipment of discontinued operations, fair value disclosure | 0 | ||
Goodwill of discontinued operations, fair value disclosure | 0 | ||
Intangible assets of discontinued operations, fair value disclosure | 0 | ||
Level 2 | Fair value measurements, non-recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Property, plant and equipment, fair value disclosure | 0 | 0 | |
Property, plant and equipment of discontinued operations, fair value disclosure | 0 | ||
Goodwill of discontinued operations, fair value disclosure | 0 | ||
Intangible assets of discontinued operations, fair value disclosure | 0 | ||
Level 3 | Fair value measurements, non-recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Property, plant and equipment, fair value disclosure | $ 10,050,000 | 45,000,000 | |
Property, plant and equipment of discontinued operations, fair value disclosure | 0 | ||
Goodwill of discontinued operations, fair value disclosure | 0 | ||
Intangible assets of discontinued operations, fair value disclosure | 0 | ||
Continuing operations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment of goodwill of discontinued operations | 0 | ||
Continuing operations | Fair value measurements, non-recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Property, plant and equipment, fair value disclosure | 2,488,000 | ||
Continuing operations | Level 1 | Fair value measurements, non-recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Property, plant and equipment, fair value disclosure | 0 | ||
Continuing operations | Level 2 | Fair value measurements, non-recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Property, plant and equipment, fair value disclosure | 0 | ||
Continuing operations | Level 3 | Fair value measurements, non-recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Property, plant and equipment, fair value disclosure | 2,488,000 | ||
Discontinued operations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment of goodwill of discontinued operations | (3,187,000) | ||
Impairment of intangible assets of discontinued operations | 0 | (2,815,000) | |
Property, plant and equipment | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment of property, plant and equipment | (36,430,000) | ||
Property, plant and equipment | Continuing operations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment of property, plant and equipment | $ (1,211,000) | ||
Property, plant and equipment | Discontinued operations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment of property, plant and equipment of discontinued operations | $ (1,029,000) |
Fair value measurements (Detail
Fair value measurements (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment of goodwill | $ 9,796,000 | $ 0 | $ 0 |
Impairment of long-lived assets to be disposed of | 7,031,000 | ||
Impairment of intangible assets | 0 | 0 | 0 |
Discontinued operations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment of goodwill | 3,187,000 | ||
Impairment of intangible assets | 0 | 2,815,000 | |
Fair value measurements, non-recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Goodwill, fair value disclosure | 0 | ||
Property, plant and equipment, fair value disclosure | 10,050,000 | 45,000,000 | |
Great South Pacific Express | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Property, plant and equipment, fair value disclosure | 3,699,000 | ||
Impairment of property, plant and equipment | 1,211,000 | ||
Great South Pacific Express | Fair value measurements, non-recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Property, plant and equipment, fair value disclosure | 2,488,000 | ||
Belmond La Samanna | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Property, plant and equipment, fair value disclosure | 80,680,000 | ||
Belmond La Samanna | Fair value measurements, non-recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Property, plant and equipment, fair value disclosure | 45,000,000 | ||
Belmond Grand Hotel Europe | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Property, plant and equipment, fair value disclosure | 750,000 | ||
Belmond Grand Hotel Europe | Fair value measurements, non-recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Property, plant and equipment, fair value disclosure | 0 | ||
Ubud Hanging Gardens | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Goodwill, fair value disclosure | 3,187,000 | ||
Impairment of long-lived assets to be disposed of | 7,031,000 | ||
Finite-lived intangible assets, fair value disclosure | 2,815,000 | ||
Ubud Hanging Gardens | Discontinued operations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment of goodwill | 3,187,000 | ||
Property, plant and equipment, fair value disclosure | 1,029,000 | ||
Ubud Hanging Gardens | Discontinued operations | Favorable lease assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment of intangible assets | 2,815,000 | ||
Ubud Hanging Gardens | Fair value measurements, non-recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Goodwill, fair value disclosure | 0 | ||
Finite-lived intangible assets, fair value disclosure | 0 | ||
Ubud Hanging Gardens | Fair value measurements, non-recurring | Discontinued operations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Property, plant and equipment, fair value disclosure | 0 | ||
Property, plant and equipment | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment of property, plant and equipment | 36,430,000 | ||
Property, plant and equipment | Discontinued operations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment of long-lived assets to be disposed of | 1,029,000 | ||
Property, plant and equipment | Great South Pacific Express | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment of property, plant and equipment | $ 1,211,000 | ||
Property, plant and equipment | Belmond La Samanna | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment of property, plant and equipment | 35,680,000 | ||
Property, plant and equipment | Belmond Grand Hotel Europe | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment of property, plant and equipment | 750,000 | ||
Property, plant and equipment | Ubud Hanging Gardens | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment of long-lived assets to be disposed of | $ 1,029,000 | ||
Belmond Grand Hotel Europe | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Goodwill, fair value disclosure | 14,148,000 | ||
Impairment of goodwill | 4,098,000 | ||
Belmond Grand Hotel Europe | Fair value measurements, non-recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Goodwill, fair value disclosure | 10,050,000 | ||
Belmond Jimbaran Puri | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Goodwill, fair value disclosure | 3,581,000 | ||
Impairment of goodwill | 3,581,000 | ||
Belmond Jimbaran Puri | Fair value measurements, non-recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Goodwill, fair value disclosure | 0 | ||
Belmond La Résidence Phou Vao | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Goodwill, fair value disclosure | 1,455,000 | ||
Impairment of goodwill | 1,455,000 | ||
Belmond La Résidence Phou Vao | Fair value measurements, non-recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Goodwill, fair value disclosure | 0 | ||
Belmond Northern Belle | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Goodwill, fair value disclosure | 662,000 | ||
Impairment of goodwill | 662,000 | ||
Belmond Northern Belle | Fair value measurements, non-recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Goodwill, fair value disclosure | $ 0 |
Derivatives and hedging acti111
Derivatives and hedging activities - Notional amounts of outstanding interest rate derivatives (Details) € in Thousands, $ in Thousands | Dec. 31, 2015USD ($) | Dec. 31, 2015EUR (€) | Dec. 31, 2014USD ($) | Dec. 31, 2014EUR (€) |
Interest rate swaps | ||||
Derivative [Line Items] | ||||
Derivative, notional amount | $ 212,481 | € 73,688 | $ 214,206 | € 74,438 |
Interest rate caps | ||||
Derivative [Line Items] | ||||
Derivative, notional amount | $ 17,200 | $ 17,200 |
Derivatives and hedging acti112
Derivatives and hedging activities - Fair value of derivative financial instruments (Details) - Derivatives designated in a cash flow hedging relationship - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair value of derivative financial instruments | ||
Total | $ (4,460) | $ (3,589) |
Interest rate swaps | Other assets | ||
Fair value of derivative financial instruments | ||
Fair value of assets | 4 | 13 |
Interest rate swaps | Accrued liabilities | ||
Fair value of derivative financial instruments | ||
Fair value of liabilities | (2,731) | (2,984) |
Interest rate swaps | Other liabilities | ||
Fair value of derivative financial instruments | ||
Fair value of liabilities | $ (1,733) | $ (618) |
Derivatives and hedging acti113
Derivatives and hedging activities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivative [Line Items] | |||
Gain (loss) recorded in other comprehensive income/(loss) | $ 18,221 | $ 24,816 | $ (1,016) |
Fair value of derivatives in a net liability position | 4,464 | 3,602 | |
Assets required to settle obligations under derivatives with credit-risk-related contingent features upon breach of provisions, termination value | 4,513 | 3,615 | |
Fair value of non-derivative hedging instruments | 160,138 | $ 180,149 | |
Interest rate swaps | |||
Derivative [Line Items] | |||
Amount accounted for in other comprehensive income/(loss), which is expected to be reclassified to interest expense in the next 12 months | $ 2,669 |
Derivatives and hedging acti114
Derivatives and hedging activities - Other comprehensive income and credit-risk-related contingent features (Details) - Interest rate swaps - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Effect of derivative financial instruments on the statements of consolidated operations and statement of consolidated comprehensive income | |||
Amount of gain/(loss) recognized in interest expense for the ineffective portion of derivatives designated as cash flow hedges | $ 0 | $ 0 | $ (37) |
Amount of gain/(loss) recognized in interest expense for derivatives not designated as hedging instruments | $ 0 | $ 0 | $ (4) |
Accumulated other comprehens115
Accumulated other comprehensive loss - Schedule of accumulated other comprehensive income/(loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | $ (246,420) | $ (93,317) |
Other comprehensive income/(loss) before reclassifications | (91,071) | (155,646) |
Amounts reclassified from AOCI | 2,949 | 2,543 |
Net current period other comprehensive income/(loss) | (88,122) | (153,103) |
Ending Balance | (334,542) | (246,420) |
Brazilian hotels | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Other Comprehensive Income (Loss), gain (loss) arising on change in functional currency | (49,356) | |
Foreign currency translation adjustments | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | (232,328) | (81,339) |
Other comprehensive income/(loss) before reclassifications | (88,180) | (150,989) |
Amounts reclassified from AOCI | 0 | 0 |
Net current period other comprehensive income/(loss) | (88,180) | (150,989) |
Ending Balance | (320,508) | (232,328) |
Derivative financial instruments | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | (3,569) | (3,381) |
Other comprehensive income/(loss) before reclassifications | (3,471) | (2,731) |
Amounts reclassified from AOCI | 2,949 | 2,543 |
Net current period other comprehensive income/(loss) | (522) | (188) |
Ending Balance | (4,091) | (3,569) |
Pension liability | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | (10,523) | (8,597) |
Other comprehensive income/(loss) before reclassifications | 580 | (1,926) |
Amounts reclassified from AOCI | 0 | 0 |
Net current period other comprehensive income/(loss) | 580 | (1,926) |
Ending Balance | $ (9,943) | $ (10,523) |
Accumulated other comprehens116
Accumulated other comprehensive loss - Reclassifications out of AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Cash flows from derivative financial instruments related to interest payments made for the hedged debt instrument | $ 32,101 | $ 36,767 | $ 34,326 |
Total reclassifications for the period | 15,854 | (1,735) | $ (31,496) |
Reclassification out of AOCI | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Total reclassifications for the period | 2,949 | 2,543 | |
Interest expense | Derivative financial instruments | Reclassification out of AOCI | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Cash flows from derivative financial instruments related to interest payments made for the hedged debt instrument | $ 2,949 | $ 2,543 |
Segment information (Details)
Segment information (Details) | 12 Months Ended |
Dec. 31, 2015segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 6 |
Segment information - Revenue b
Segment information - Revenue by segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenue | $ 551,385 | $ 585,715 | $ 594,081 |
Operating Segments | Subtotal: Total hotels | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenue | 477,763 | 504,044 | 516,108 |
Operating Segments | Subtotal: Owned hotels | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenue | 472,531 | 498,061 | 510,247 |
Operating Segments | Segment: Owned hotels - Europe | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenue | 200,059 | 212,744 | 222,047 |
Operating Segments | Segment: Owned hotels - North America | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenue | 148,103 | 142,586 | 146,491 |
Operating Segments | Segment: Owned hotels - Rest of world | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenue | 124,369 | 142,731 | 141,709 |
Operating Segments | Segment: Hotels - part-owned/ managed | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenue | 5,232 | 5,983 | 5,861 |
Operating Segments | Subtotal: Total trains and cruises | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenue | 73,622 | 81,671 | 77,973 |
Operating Segments | Segment: Owned trains and cruises | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenue | 65,471 | 74,265 | 73,728 |
Operating Segments | Segment: Trains - part-owned/ managed | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenue | $ 8,151 | $ 7,406 | $ 4,245 |
Segment information - Reconcili
Segment information - Reconciliation of total segment profit/(loss) to consolidated (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Segment profit/(loss) | $ 158,099 | $ 151,965 | $ 148,088 |
Gain on disposal of property, plant and equipment | 20,275 | 4,128 | 0 |
Impairment of goodwill | (9,796) | 0 | 0 |
Impairment of property, plant and equipment | 0 | (1,211) | (36,430) |
Central overheads | (39,272) | (31,727) | (30,647) |
Share-based compensation | (6,707) | (7,928) | (10,388) |
Depreciation and amortization | (50,513) | (52,004) | (48,740) |
(Loss)/gain on extinguishment of debt | 0 | (14,506) | 3,517 |
Other income | 0 | 1,257 | 0 |
Interest income | 926 | 1,418 | 1,067 |
Interest expense | (32,101) | (36,767) | (34,326) |
Foreign currency, net | (5,016) | 2,262 | 1,000 |
Provision for income taxes | (17,041) | (15,542) | (17,628) |
Share of (provision for)/benefit from income taxes of unconsolidated companies | (1,466) | 702 | (1,691) |
Earnings/(losses) from continuing operations | 17,388 | 2,047 | (26,178) |
Net earnings/(losses) from discontinued operations | (1,534) | (3,782) | (5,318) |
Net earnings/(losses) | 15,854 | (1,735) | (31,496) |
Operating Segments | Subtotal: Total hotels | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Segment profit/(loss) | 132,475 | 128,500 | 125,231 |
Operating Segments | Subtotal: Owned hotels | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Segment profit/(loss) | 128,333 | 123,295 | 122,958 |
Operating Segments | Segment: Owned hotels - Europe | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Segment profit/(loss) | 65,416 | 62,770 | 63,767 |
Impairment of goodwill | (4,098) | 0 | |
Operating Segments | Segment: Owned hotels - North America | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Segment profit/(loss) | 31,622 | 23,986 | 23,233 |
Impairment of goodwill | 0 | 0 | |
Operating Segments | Segment: Owned hotels - Rest of world | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Segment profit/(loss) | 31,295 | 36,539 | 35,958 |
Impairment of goodwill | (5,036) | 0 | |
Operating Segments | Segment: Hotels - part-owned/ managed | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Segment profit/(loss) | 4,142 | 5,205 | 2,273 |
Operating Segments | Subtotal: Total trains and cruises | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Segment profit/(loss) | 25,624 | 23,465 | 22,857 |
Operating Segments | Segment: Owned trains and cruises | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Segment profit/(loss) | 6,741 | 7,300 | 8,467 |
Impairment of goodwill | (662) | 0 | |
Operating Segments | Segment: Trains - part-owned/ managed | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Segment profit/(loss) | $ 18,883 | $ 16,165 | $ 14,390 |
Segment information - Reconc120
Segment information - Reconciliation of assets from segments to consolidated (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | [1] | $ 1,509,475 | $ 1,655,223 |
Operating Segments | Subtotal: Total hotels | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 1,258,183 | 1,399,821 | |
Operating Segments | Subtotal: Owned hotels | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 1,238,898 | 1,350,672 | |
Operating Segments | Segment: Owned hotels - Europe | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 533,610 | 594,590 | |
Operating Segments | Segment: Owned hotels - North America | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 477,949 | 480,699 | |
Operating Segments | Segment: Owned hotels - Rest of world | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 227,339 | 275,383 | |
Operating Segments | Segment: Hotels - part-owned/ managed | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 19,285 | 49,149 | |
Operating Segments | Subtotal: Total trains and cruises | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 156,906 | 148,318 | |
Operating Segments | Segment: Owned trains and cruises | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 94,945 | 92,196 | |
Operating Segments | Segment: Trains - part-owned/ managed | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 61,961 | 56,122 | |
Unallocated corporate | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 94,386 | 107,084 | |
Discontinued operations held for sale | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | $ 0 | $ 0 | |
[1] | Included in Belmond Ltd.’s consolidated assets and liabilities are assets of consolidated variable interest entities (“consolidated VIEs”) that can only be used to settle obligations of the consolidated VIEs and liabilities of consolidated VIEs whose creditors have no recourse to Belmond Ltd. The Company’s only consolidated VIE at December 31, 2015 and December 31, 2014 is Charleston Center LLC. These assets and liabilities at December 31, 2015 and December 31, 2014 are as follows: December 31, 2015 December 31, 2014 $’000 $’000 Assets Cash and cash equivalents 2,569 2,501Restricted cash — 768Accounts receivable, net of allowances of $Nil and $Nil 2,712 2,062Prepaid expenses and other 1,232 1,342Inventories 1,231 1,527Total current assets 7,744 8,200 Property, plant and equipment, net of accumulated depreciation of $30,260 and $26,581 201,342 197,608Other assets 1,566 1,009Total assets 210,652 206,817 Liabilities Accounts payable 3,764 3,937Accrued liabilities 2,910 2,485Deferred revenue 2,551 2,151Current portion of long-term debt and obligations under capital leases 229 217Total current liabilities 9,454 8,790 Long-term debt and obligations under capital leases 96,392 96,406Other liabilities 16,540 15,940Total liabilities 122,386 121,136See further description in note 5, Variable interest entities. |
Segment information - Reconc121
Segment information - Reconciliation of other significant reconciling items from segments to consolidated (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Total capital expenditure to acquire property, plant and equipment | $ 56,395 | $ 63,454 | $ 66,646 |
Total investment in equity method investees | 71,724 | 65,831 | |
Total earnings from unconsolidated companies, net of tax | 9,075 | 9,484 | 6,442 |
Eastern & Oriental Express | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Total investment in equity method investees | 2,972 | 3,251 | |
Peru hotels | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Total investment in equity method investees | 18,696 | 16,981 | |
PeruRail | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Total investment in equity method investees | 47,421 | 41,713 | |
Hotel Ritz by Belmond | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Total investment in equity method investees | 0 | 0 | |
Buzios | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Total investment in equity method investees | 2,542 | 3,783 | |
Other | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Total investment in equity method investees | 93 | 103 | |
Segment: Hotels - part-owned/ managed | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Total earnings from unconsolidated companies, net of tax | 106 | 1,949 | (2,372) |
Segment: Trains - part-owned/ managed | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Total earnings from unconsolidated companies, net of tax | 8,969 | 7,535 | 8,814 |
Operating Segments | Subtotal: Owned hotels | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Total capital expenditure to acquire property, plant and equipment | 44,697 | 57,641 | 60,046 |
Operating Segments | Segment: Owned hotels - Europe | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Total capital expenditure to acquire property, plant and equipment | 18,648 | 26,542 | 13,238 |
Operating Segments | Segment: Owned hotels - North America | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Total capital expenditure to acquire property, plant and equipment | 11,881 | 16,690 | 32,635 |
Operating Segments | Segment: Owned hotels - Rest of world | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Total capital expenditure to acquire property, plant and equipment | 14,168 | 14,409 | 14,173 |
Operating Segments | Segment: Owned trains and cruises | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Total capital expenditure to acquire property, plant and equipment | 11,415 | 5,533 | 6,325 |
Unallocated corporate | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Total capital expenditure to acquire property, plant and equipment | $ 283 | $ 280 | $ 275 |
Segment information - Revenues
Segment information - Revenues and long-lived assets by location of property (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ 551,385 | $ 585,715 | $ 594,081 |
Total property, plant and equipment at book value | 1,078,361 | 1,168,757 | |
Bermuda | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 0 | 0 | 0 |
Total property, plant and equipment at book value | 0 | 0 | |
Italy | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 132,385 | 137,491 | 133,806 |
Total property, plant and equipment at book value | 308,035 | 341,051 | |
United Kingdom | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 62,656 | 68,412 | 65,865 |
Total property, plant and equipment at book value | 57,443 | 60,816 | |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 107,965 | 104,146 | 108,167 |
Total property, plant and equipment at book value | 346,942 | 347,709 | |
Brazil | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 69,142 | 86,866 | 80,537 |
Total property, plant and equipment at book value | 61,773 | 93,384 | |
All other countries | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 179,237 | 188,800 | $ 205,706 |
Total property, plant and equipment at book value | 304,168 | 325,797 | |
Consolidated entity including consolidated VIE | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total property, plant and equipment at book value | $ 1,078,361 | $ 1,168,757 |
Related party transactions (Det
Related party transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | May. 21, 2015 | |
Eastern and Oriental Express Ltd. | ||||
Related party transactions | ||||
Ownership percentage | 25.00% | |||
Fees earned from Eastern and Oriental Express Ltd. | $ 292 | $ 362 | $ 463 | |
Amounts payable to Belmond | $ 4,872 | 5,227 | ||
Hotel and rail joint ventures in Peru | ||||
Related party transactions | ||||
Ownership percentage | 50.00% | |||
Fees earned from Eastern and Oriental Express Ltd. | $ 12,503 | 11,515 | 8,281 | |
Amounts payable to Belmond | $ 7,285 | 7,728 | ||
Hotel Ritz, Madrid | ||||
Related party transactions | ||||
Ownership percentage | 50.00% | 50.00% | ||
Fees earned from Eastern and Oriental Express Ltd. | $ 328 | 1,111 | 1,016 | |
Amounts payable to Belmond | 0 | 30,371 | ||
Interest income | $ 301 | $ 904 | $ 684 |
Schedule II - Valuation and 124
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allowance for doubtful accounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | $ 425 | $ 563 | $ 472 |
Additions charged to costs and expenses | 92 | 47 | 200 |
Additions charged to other accounts | (61) | (90) | 9 |
Deductions | (165) | (95) | (118) |
Balance at end of period | 291 | 425 | 563 |
Valuation allowance on deferred tax assets | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 91,462 | 110,780 | 97,376 |
Additions charged to costs and expenses | 16,320 | 4,573 | 13,015 |
Additions charged to other accounts | (37,854) | (23,891) | 389 |
Deductions | 0 | 0 | 0 |
Balance at end of period | $ 69,928 | $ 91,462 | $ 110,780 |