Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 15, 2018 | Jun. 30, 2017 | |
Entity Registrant Name | Belmond Ltd. | ||
Entity Central Index Key | 1,115,836 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
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 | $ 1,335 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Class A common shares | |||
Entity Common Stock, Shares Outstanding | 102,394,570 | ||
Class B common shares | |||
Entity Common Stock, Shares Outstanding | 18,044,478 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Assets | |||
Cash and cash equivalents | $ 180,153 | $ 153,425 | |
Restricted cash | 3,121 | 1,830 | |
Accounts receivable, net of allowances of $544 and $420 | 34,373 | 25,775 | |
Due from unconsolidated companies | 12,762 | 12,165 | |
Prepaid expenses and other | 13,327 | 12,262 | |
Inventories | 23,092 | 23,931 | |
Total current assets | 266,828 | 229,388 | |
Property, plant and equipment, net of accumulated depreciation of $417,738 and $368,939 | 1,168,044 | 1,074,676 | |
Investments in unconsolidated companies | 64,644 | 79,327 | |
Goodwill | 120,220 | 113,343 | |
Other intangible assets | 19,778 | 13,877 | |
Other assets | 14,123 | 13,457 | |
Total assets | [1] | 1,653,637 | 1,524,068 |
Liabilities and Equity | |||
Accounts payable | 15,815 | 16,366 | |
Accrued liabilities | 79,455 | 69,046 | |
Deferred revenue | 32,786 | 31,350 | |
Current portion of long-term debt and obligations under capital leases | 6,407 | 5,284 | |
Total current liabilities | 134,463 | 122,046 | |
Long-term debt and obligations under capital leases | 700,752 | 585,768 | |
Liability for pension benefit | 650 | 1,447 | |
Other liabilities | 3,023 | 5,366 | |
Deferred income taxes | 115,381 | 122,291 | |
Liability for uncertain tax positions | 532 | 318 | |
Total liabilities | [1] | 954,801 | 837,236 |
Commitments and contingencies (Note 20) | |||
Shareholders’ equity: | |||
Preferred shares $0.01 par value (30,000,000 shares authorized, issued Nil) | 0 | 0 | |
Additional paid-in capital | 985,566 | 979,458 | |
Retained earnings | 13,278 | 52,751 | |
Accumulated other comprehensive loss | (301,322) | (346,777) | |
Less: Reduction due to class B common shares owned by a subsidiary — 18,044,478 (2016 - 18,044,478) | (181) | (181) | |
Total shareholders’ equity | 698,546 | 686,450 | |
Non-controlling interests | 290 | 382 | |
Total equity | 698,836 | 686,832 | |
Total liabilities and equity | 1,653,637 | 1,524,068 | |
Class A common shares | |||
Shareholders’ equity: | |||
Common stock, value | 1,024 | 1,018 | |
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, 2017 and December 31, 2016 is Charleston Center LLC. These assets and liabilities at December 31, 2017 and December 31, 2016 are as follows: December 31, 2017 December 31, 2016 $’000 $’000 Assets Cash and cash equivalents 1,530 2,233Accounts receivable, net of allowances of $Nil and $Nil 3,623 3,066Prepaid expenses and other 935 365Inventories 1,360 1,296Total current assets 7,448 6,960 Property, plant and equipment, net of accumulated depreciation of $42,676 and $35,902 197,369 201,861Other assets 1,450 1,455Total assets 206,267 210,276 Liabilities Accounts payable 4,518 4,558Accrued liabilities 3,291 3,099Deferred revenue 2,835 1,714Current portion of long-term debt and obligations under capital leases 255 242Total current liabilities 10,899 9,613 Long-term debt and obligations under capital leases 112,069 111,968Other liabilities — 40Total liabilities 122,968 121,621See further description in Note 6, Variable interest entities. |
Consolidated Balance Sheets Var
Consolidated Balance Sheets Variable Interest Entities (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Assets | |||
Cash and cash equivalents | $ 180,153 | $ 153,425 | |
Accounts receivable, net of allowances of $Nil and $Nil | 34,373 | 25,775 | |
Prepaid expenses and other | 13,327 | 12,262 | |
Inventories | 23,092 | 23,931 | |
Total current assets | 266,828 | 229,388 | |
Property, plant and equipment, net of accumulated depreciation of $42,676 and $35,902 | 1,168,044 | 1,074,676 | |
Other assets | 14,123 | 13,457 | |
Total assets | [1] | 1,653,637 | 1,524,068 |
Liabilities | |||
Accounts payable | 15,815 | 16,366 | |
Accrued liabilities | 79,455 | 69,046 | |
Deferred revenue | 32,786 | 31,350 | |
Current portion of long-term debt and obligations under capital leases | 6,407 | 5,284 | |
Total current liabilities | 134,463 | 122,046 | |
Long-term debt and obligations under capital leases | 700,752 | 585,768 | |
Other liabilities | 3,023 | 5,366 | |
Total liabilities | [1] | 954,801 | 837,236 |
Variable interest entity, primary beneficiary | |||
Assets | |||
Cash and cash equivalents | 1,530 | 2,233 | |
Accounts receivable, net of allowances of $Nil and $Nil | 3,623 | 3,066 | |
Prepaid expenses and other | 935 | 365 | |
Inventories | 1,360 | 1,296 | |
Total current assets | 7,448 | 6,960 | |
Property, plant and equipment, net of accumulated depreciation of $42,676 and $35,902 | 197,369 | 201,861 | |
Other assets | 1,450 | 1,455 | |
Total assets | 206,267 | 210,276 | |
Liabilities | |||
Accounts payable | 4,518 | 4,558 | |
Accrued liabilities | 3,291 | 3,099 | |
Deferred revenue | 2,835 | 1,714 | |
Current portion of long-term debt and obligations under capital leases | 255 | 242 | |
Total current liabilities | 10,899 | 9,613 | |
Long-term debt and obligations under capital leases | 112,069 | 111,968 | |
Other liabilities | 0 | 40 | |
Total liabilities | $ 122,968 | $ 121,621 | |
[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, 2017 and December 31, 2016 is Charleston Center LLC. These assets and liabilities at December 31, 2017 and December 31, 2016 are as follows: December 31, 2017 December 31, 2016 $’000 $’000 Assets Cash and cash equivalents 1,530 2,233Accounts receivable, net of allowances of $Nil and $Nil 3,623 3,066Prepaid expenses and other 935 365Inventories 1,360 1,296Total current assets 7,448 6,960 Property, plant and equipment, net of accumulated depreciation of $42,676 and $35,902 197,369 201,861Other assets 1,450 1,455Total assets 206,267 210,276 Liabilities Accounts payable 4,518 4,558Accrued liabilities 3,291 3,099Deferred revenue 2,835 1,714Current portion of long-term debt and obligations under capital leases 255 242Total current liabilities 10,899 9,613 Long-term debt and obligations under capital leases 112,069 111,968Other liabilities — 40Total liabilities 122,968 121,621See further description in Note 6, Variable interest entities. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts receivable, allowances | $ 544 | $ 420 |
Property, plant and equipment, accumulated depreciation | $ 417,738 | $ 368,939 |
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) | 102,365,933 | 101,793,829 |
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 | $ 42,676 | $ 35,902 |
Statements of Consolidated Oper
Statements of Consolidated Operations - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Income Statement [Abstract] | ||||
Revenue | [1] | $ 560,999,000 | $ 549,824,000 | $ 551,385,000 |
Expenses: | ||||
Cost of services | 239,850,000 | 240,097,000 | 243,609,000 | |
Selling, general and administrative | 238,300,000 | 198,590,000 | 206,197,000 | |
Depreciation and amortization | 62,852,000 | 52,396,000 | 50,513,000 | |
Impairment of goodwill | 5,500,000 | 0 | 9,796,000 | |
Impairment of property, plant and equipment | 8,216,000 | 1,007,000 | 0 | |
Total operating costs and expenses | 554,718,000 | 492,090,000 | 510,115,000 | |
(Loss)/gain on disposal of property, plant and equipment and equity method investments | (153,000) | 938,000 | 20,275,000 | |
Earnings from operations | 6,128,000 | 58,672,000 | 61,545,000 | |
Gain on extinguishment of debt | 0 | 1,200,000 | 0 | |
Interest income | [2] | 1,058,000 | 853,000 | 926,000 |
Interest expense | (32,455,000) | (29,155,000) | (32,101,000) | |
Foreign currency, net | (3,034,000) | 9,186,000 | (5,016,000) | |
(Losses)/earnings before income taxes and earnings from unconsolidated companies, net of tax | (28,303,000) | 40,756,000 | 25,354,000 | |
Provision for income taxes | (6,554,000) | (16,368,000) | (17,041,000) | |
(Losses)/earnings before earnings from unconsolidated companies, net of tax | (34,857,000) | 24,388,000 | 8,313,000 | |
(Losses)/earnings from unconsolidated companies, net of tax (benefit)/provision of $(4,451), $5,650 and $1,466 | (10,213,000) | 11,013,000 | 9,075,000 | |
(Losses)/earnings from continuing operations | (45,070,000) | 35,401,000 | 17,388,000 | |
Net earnings/(losses) from discontinued operations, net of tax provision of $Nil, $Nil and $Nil | 122,000 | 1,032,000 | (1,534,000) | |
Net (losses)/earnings | (44,948,000) | 36,433,000 | 15,854,000 | |
Net (earnings)/losses attributable to non-controlling interests | (87,000) | (109,000) | 411,000 | |
Net (losses)/earnings attributable to Belmond Ltd. | $ (45,035,000) | $ 36,324,000 | $ 16,265,000 | |
Basic earnings per share | ||||
Net earnings/(losses) from continuing operations (in dollars per share) | $ (0.441) | $ 0.348 | $ 0.169 | |
Net earnings/(losses) from discontinued operations (in dollars per share) | 0.001 | 0.010 | (0.015) | |
Basic net earnings/(losses) per share attributable to Belmond Ltd. (in dollars per share) | (0.441) | 0.357 | 0.158 | |
Diluted earnings per share | ||||
Net earnings/(losses) from continuing operations (in dollars per share) | (0.441) | 0.344 | 0.167 | |
Net earnings/(losses) from discontinued operations (in dollars per share) | 0.001 | 0.010 | (0.015) | |
Diluted net earnings/(losses) per share attributable to Belmond Ltd. (in dollars per share) | $ (0.441) | $ 0.353 | $ 0.156 | |
[1] | Includes revenue from related parties of $15,449,000, $15,458,000 and $13,123,000, respectively | |||
[2] | Includes interest income from related parties of $0, $0, and $301,000, respectively |
Statements of Consolidated Ope6
Statements of Consolidated Operations (Parenthetical) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue from related party | $ 15,449,000 | $ 15,458,000 | $ 13,123,000 |
Earnings from unconsolidated companies, tax (benefit)/provision | (4,451,000) | 5,650,000 | 1,466,000 |
Discontinued operations, tax (benefit)/provision | 0 | 0 | 0 |
Hotel Ritz, Madrid | |||
Revenue from related party | 0 | 0 | 328,000 |
Interest income from related party | $ 0 | $ 0 | $ 301,000 |
Statements of Consolidated Comp
Statements of Consolidated Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net (losses)/earnings | $ (44,948) | $ 36,433 | $ 15,854 |
Other comprehensive income/(losses), net of tax: | |||
Foreign currency translation adjustments, net of tax (benefit)/provision of $Nil, $(809) and $Nil | 48,754 | (10,848) | (88,457) |
Change in fair value of derivatives, net of tax provision/(benefit) of $810, $222 and $(352) | 1,920 | 867 | (522) |
Change in pension liability, net of tax provision/(benefit) of $73, $(530) and $147 | 310 | (2,119) | 580 |
Total other comprehensive losses, net of tax | 50,984 | (12,100) | (88,399) |
Total comprehensive income/(losses) | 6,036 | 24,333 | (72,545) |
Comprehensive (income)/losses attributable to non-controlling interests | (54) | (244) | 688 |
Comprehensive income/(losses) attributable to Belmond Ltd. | $ 5,982 | $ 24,089 | $ (71,857) |
Statements of Consolidated Com8
Statements of Consolidated Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Foreign currency translation adjustments, tax provision/(benefit) | $ 0 | $ (809) | $ 0 |
Change in fair value of derivatives, tax provision/(benefit) | 810 | 222 | (352) |
Change in pension liability, tax provision/(benefit) | $ 73 | $ (530) | $ 147 |
Statements of Consolidated Cash
Statements of Consolidated Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net (losses)/earnings | $ (44,948,000) | $ 36,433,000 | $ 15,854,000 |
Less: Net earnings/(losses) from discontinued operations, net of tax | 122,000 | 1,032,000 | (1,534,000) |
(Losses)/earnings from continuing operations | (45,070,000) | 35,401,000 | 17,388,000 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation and amortization | 62,852,000 | 52,396,000 | 50,513,000 |
Impairment of goodwill | 5,500,000 | 0 | 9,796,000 |
Impairment of property, plant and equipment | 8,216,000 | 1,007,000 | 0 |
(Loss)/gain on disposal of property, plant and equipment and equity method investments | 153,000 | (938,000) | (20,275,000) |
(Gain) on extinguishment of debt | 0 | (1,200,000) | 0 |
Losses/(earnings) from unconsolidated companies, net of tax | 10,213,000 | (11,013,000) | (9,075,000) |
Amortization of debt issuance costs and discount on secured term loan | 3,682,000 | 3,044,000 | 2,903,000 |
Share-based compensation | 5,809,000 | 6,272,000 | 6,707,000 |
Change in provisions for uncertain tax positions | 160,000 | (3,350,000) | 279,000 |
Benefit from deferred income tax | (13,641,000) | (305,000) | (124,000) |
Other non-cash movements | 1,596,000 | 567,000 | (1,076,000) |
Effect of exchange rates on net (losses)/earnings | 2,215,000 | (12,258,000) | 896,000 |
Change in assets and liabilities, net of effects from acquisitions: | |||
Accounts receivable | (633,000) | 1,961,000 | (536,000) |
Due from unconsolidated companies | (419,000) | (788,000) | 1,167,000 |
Prepaid expense and other | (349,000) | 668,000 | (725,000) |
Inventories | 2,539,000 | (504,000) | 1,962,000 |
Escrow and prepaid customer deposits | (1,082,000) | 379,000 | (1,284,000) |
Accounts payable | (2,488,000) | 877,000 | (5,703,000) |
Accrued liabilities | 12,805,000 | 245,000 | 10,127,000 |
Deferred revenue | (489,000) | (1,434,000) | 5,877,000 |
Other liabilities | (5,633,000) | (14,121,000) | 0 |
Other, net | 927,000 | 148,000 | (3,008,000) |
Other cash movements: | |||
Dividends from equity method investees | 4,440,000 | 4,449,000 | 3,649,000 |
Proceeds from insurance settlements | 1,462,000 | 0 | 0 |
Payment of swap termination costs | (2,145,000) | 0 | 0 |
Net cash provided by operating activities from continuing operations | 50,620,000 | 61,503,000 | 69,458,000 |
Net cash provided by/(used in) operating activities from discontinued operations | 87,000 | 38,000 | (1,534,000) |
Net cash provided by operating activities | 50,707,000 | 61,541,000 | 67,924,000 |
Cash flows from investing activities: | |||
Capital expenditure to acquire property, plant and equipment | (67,830,000) | (55,104,000) | (56,395,000) |
Capital expenditure to acquire intangible assets | 0 | 0 | (714,000) |
Acquisitions, net of cash acquired | (68,632,000) | 0 | 0 |
Investments in unconsolidated companies | 0 | 0 | (4,061,000) |
Increase in restricted cash | (46,000) | (6,000) | 0 |
Release of restricted cash | 0 | 0 | 519,000 |
Change in deferred revenue for asset sale deposits | 0 | 0 | (500,000) |
Proceeds from sale of business | 2,070,000 | 0 | 0 |
Proceeds from insurance settlements | 13,588,000 | 0 | 0 |
Proceeds from sale of property, plant and equipment and equity method investments | 0 | 2,746,000 | 43,742,000 |
Net cash used in investing activities from continuing operations | (120,850,000) | (52,364,000) | (17,409,000) |
Net cash provided by investing activities from discontinued operations | 0 | 0 | 0 |
Net cash used in investing activities | (120,850,000) | (52,364,000) | (17,409,000) |
Cash flows from financing activities: | |||
Repurchase of shares | 0 | (1,992,000) | (37,565,000) |
Exercised stock options and vested share awards | 305,000 | 17,000 | 35,000 |
Dividend to non-controlling interest | 0 | (15,000) | (20,000) |
Issuance of long-term debt | 104,739,000 | 26,000,000 | 0 |
Debt issuance costs | (9,639,000) | (465,000) | (856,000) |
Principal payments under long-term debt | (5,654,000) | (13,904,000) | (5,432,000) |
Net cash provided by/(used in) financing activities from continuing operations | 89,751,000 | 9,641,000 | (43,838,000) |
Net cash provided by financing activities from discontinued operations | 0 | 0 | 0 |
Net cash provided by/(used in) financing activities | 89,751,000 | 9,641,000 | (43,838,000) |
Effect of exchange rate changes on cash and cash equivalents | 7,120,000 | (992,000) | (6,196,000) |
Net increase in cash and cash equivalents | 26,728,000 | 17,826,000 | 481,000 |
Cash and cash equivalents at beginning of period (includes $Nil, $Nil and $Nil of cash presented within assets held for sale) | 153,425,000 | 135,599,000 | 135,118,000 |
Cash and cash equivalents at end of period (includes $Nil, $Nil, $Nil of cash presented within assets held for sale) | $ 180,153,000 | $ 153,425,000 | $ 135,599,000 |
Statements of Consolidated Ca10
Statements of Consolidated Cash Flows (Parentheticals) - Assets Held-for-sale - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Cash presented within assets held for sale at beginning of period | $ 0 | $ 0 | $ 0 |
Cash presented within assets held for sale at end of period | $ 0 | $ 0 | $ 0 |
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 |
Beginning balance (Previously Reported) at Dec. 31, 2014 | $ 762,261 | $ 0 | $ 1,040 | $ 181 | $ 1,000,803 | $ 5,763 | $ (246,420) | $ (181) | $ 1,075 |
Beginning balance (Adjustments) at Dec. 31, 2014 | 5,562 | (5,562) | |||||||
Beginning balance at Dec. 31, 2014 | 762,261 | 0 | 1,040 | 181 | 1,000,803 | 11,325 | (251,982) | (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 income: | |||||||||
Net earnings (losses) attributable to common shares | 15,854 | 16,265 | (411) | ||||||
Other comprehensive income | (88,399) | (88,122) | (277) | ||||||
Ending balance at Dec. 31, 2015 | 658,425 | 0 | 1,015 | 181 | 975,419 | 21,734 | (340,104) | (181) | 361 |
Increase (Decrease) in Stockholders' Equity | |||||||||
Share-based compensation | 6,272 | 6,272 | |||||||
Exercised stock options and vested share awards | 17 | 5 | 12 | ||||||
Repurchase of shares | (1,992) | (2) | (2,245) | 255 | |||||
Dividend to non-controlling interest | (223) | (223) | |||||||
Comprehensive income: | |||||||||
Net earnings (losses) attributable to common shares | 36,433 | 36,324 | 109 | ||||||
Other comprehensive income | (12,100) | (12,235) | 135 | ||||||
Ending balance at Dec. 31, 2016 | 686,832 | 0 | 1,018 | 181 | 979,458 | 58,313 | (352,339) | (181) | 382 |
Increase (Decrease) in Stockholders' Equity | |||||||||
Share-based compensation | 5,809 | 5,809 | |||||||
Exercised stock options and vested share awards | 305 | 6 | 299 | ||||||
Repurchase of shares | 0 | 0 | 0 | 0 | |||||
Dividend to non-controlling interest | (146) | (146) | |||||||
Comprehensive income: | |||||||||
Net earnings (losses) attributable to common shares | (44,948) | (45,035) | 87 | ||||||
Other comprehensive income | 50,984 | 51,017 | (33) | ||||||
Ending balance at Dec. 31, 2017 | $ 698,836 | $ 0 | $ 1,024 | $ 181 | $ 985,566 | $ 13,278 | $ (301,322) | $ (181) | $ 290 |
Basis of financial statement pr
Basis of financial statement presentation | 12 Months Ended |
Dec. 31, 2017 | |
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”. At December 31, 2017 , Belmond owned, invested in or managed 36 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, seven tourist trains in Europe, Southeast Asia and Peru, one river cruise business in Myanmar (Burma) and one canal boat business in France. In addition, there is one hotel scheduled for a future opening, the Belmond Cadogan Hotel in London, England. Subsequent to the balance sheet date, the Company announced that through indirect subsidiaries it had acquired the Castello di Casole resort and estate in Tuscany, Italy, in February 2018. See Note 26. 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 During the year ended December 31, 2017 the Company corrected a prior period misstatement to reclassify an immaterial deferred tax entry related to a change of functional currency at the Company's Brazilian subsidiaries in 2014. As a result, opening Retained Earnings increased by $5,562,000 and opening Accumulated and Other Comprehensive Income decreased by $5,562,000 , with no net change in Total Equity. There is no impact on net earnings, EPS or cash flows in any period presented. Discontinued operations and assets and liabilities held for sale were reclassified in the consolidated financial statements for all periods presented. See Note 5 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, 2017 | |
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 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 sale represents a strategic shift that has or will have a major effect on our operations and financial results following the adoption of new guidance as of January 1, 2015. 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). Prior to January 1, 2017, if an impairment was indicated, Belmond compared the implied fair value of the reporting unit's goodwill to its carrying amount. An impairment loss was measured as the excess of the carrying value of a reporting unit's goodwill over its implied fair value. On January 1, 2017 Belmond early adopted the new guidance to simplify the accounting for goodwill impairment by removing the requirement to compare the implied fair value of goodwill with its carrying amount as part of step 2 of the goodwill impairment test. A goodwill impairment charge is now measured as the amount by which a reporting unit’s carrying value exceeds its fair value, however the impairment charge is not to exceed the carrying amount of goodwill allocated to that reporting unit. 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 2.2% to 6.5% ( December 31, 2016 - 1.2% to 4.9% ), and pre-tax discount rates which for the year ended December 31, 2017 range from 9.9% to 19.3% ( December 31, 2016 - 7.5% to 16.7% ). 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 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 definite useful lives are tested for impairment 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 10% 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. Prior to December 31, 2016, Belmond did not estimate a future forfeitures rate and did not incorporate it into the grant value on issue of the awards on the grounds of materiality. As of December 31, 2016 Belmond adopted new guidance and made an accounting policy election to allow the recognition of the effects of forfeitures in compensation cost when they occur. 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 $41,590,000 in 2017 ( 2016 - $38,361,000 ; 2015 - $40,381,000 ). 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, British 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. 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. All deferred tax assets and liabilities are classified as non-current and are netted according to tax-paying component and jurisdiction. 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 January 2017, the FASB issued new guidance to simplify the accounting for goodwill impairment by removing the requirement to compare the implied fair value of goodwill with its carrying amount as part of step 2 of the goodwill impairment test. A goodwill impairment will now be measured as the amount by which a reporting unit’s carrying value exceeds its fair value, however the loss is not to exceed the carrying amount of goodwill allocated to that reporting unit. The guidance is effective for annual and interim impairment tests for periods beginning after December 15, 2019, with early adoption permitted for any impairment tests performed after January 1, 2017. The new guidance will be applied on a prospective basis. Belmond early adopted the new guidance from January 1, 2017. The adoption of this guidance simplified how Belmond tests the recoverability of goodwill. The new test requires only a single-step quantitative test for all reporting units and reduces the need for independent valuation resources and increases efficiency. The qualitative assessment remains unchanged. See Note 9 for details of the goodwill impairment recorded in the year ended December 31, 2017. 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. In March 2016, the FASB issued additional guidance which amends the principal-versus-agent implementation guidance and illustrations in the original accounting pronouncement. In May 2016, the FASB issued an update that clarified guidance in certain narrow aspects of the topic. 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 annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2017. Early adoption is permitted as of the original effective date in ASU 2014-09 (i.e., annual reporting periods beginning after December 15, 2016, including interim reporting periods within the annual periods). The Company intends to adopt the standard in the annual period beginning January 1, 2018 under the modified retrospective approach with a cumulative effect recognized in equity and no prior period restatement. Belmond's unconsolidated companies intend to adopt the standard in the annual period beginning January 1, 2019, as permitted by the SEC. The analysis identifying areas that will be impacted by the new guidance is complete and has been conducted predominantly through a review of contracts with customers under the new five step model: (1) identify the contract with a customer(s); (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the entity satisfies a performance obligation. The Company completed its assessment and does not expect the standard to materially affect the amount or timing of revenue recognition for rooms, food and beverage and other hotel level sales, which form the majority of the Company’s revenue, nor on management and incentive fees and real estate sales. We are currently evaluating the impact of the adoption of this guidance in the financial statements of our unconsolidated companies. For Ferrocarril Transandino S.A. ("FTSA"), the Company's rail joint venture in Peru which is part of the Company's PeruRail business and that has a c |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 2016 2015 Numerator ($'000) Net earnings/(losses) from continuing operations (45,070 ) 35,401 17,388 Net earnings/(losses) from discontinued operations 122 1,032 (1,534 ) Net losses/(earnings) attributable to non-controlling interests (87 ) (109 ) 411 Net earnings/(losses) attributable to Belmond Ltd. (45,035 ) 36,324 16,265 Denominator (shares '000) Basic weighted average shares outstanding 102,169 101,586 103,163 Effect of dilution — 1,369 1,193 Diluted weighted average shares outstanding 102,169 102,955 104,356 $ $ $ Basic earnings per share Net earnings/(losses) from continuing operations (0.441 ) 0.348 0.169 Net earnings/(losses) from discontinued operations 0.001 0.010 (0.015 ) Net losses/(earnings) attributable to non-controlling interests (0.001 ) (0.001 ) 0.004 Net earnings/(losses) attributable to Belmond Ltd. (0.441 ) 0.357 0.158 Diluted earnings per share Net earnings/(losses) from continuing operations (0.441 ) 0.344 0.167 Net earnings/(losses) from discontinued operations 0.001 0.010 (0.015 ) Net losses/(earnings) attributable to non-controlling interests (0.001 ) (0.001 ) 0.004 Net earnings/(losses) attributable to Belmond Ltd. (0.441 ) 0.353 0.156 The total number of share options and share-based awards excluded from computing diluted earnings per share were as follows: Year ended December 31, 2017 2016 2015 Share options 2,704,707 1,679,817 1,441,972 Share-based awards 1,271,738 — — Total 3,976,445 1,679,817 1,441,972 The number of share options and share-based awards unexercised at December 31, 2017 was 3,976,445 ( 2016 - 3,904,614 ; 2015 - 3,950,794 ). |
Significant acquisitions
Significant acquisitions | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Significant acquisitions | Significant acquisitions 2017 Acquisitions Cap Juluca On May 26, 2017, Belmond acquired 100% ownership of Cap Juluca, 96 -key luxury resort on the Caribbean island of Anguilla, British West Indies for a total transaction value of $84,791,000 , including an aggregate cash purchase price of $68,652,000 , acquisition-related costs of $14,032,000 and excluding a working capital credit of $2,107,000 . On the same date, the Company assumed management of the resort, which had been independently managed, and began marketing the property under the name Belmond Cap Juluca. As one of the most recognized resorts in the Caribbean, Cap Juluca is a natural fit for the Belmond portfolio and enhances Belmond's positioning in the global luxury resort market. The following table summarizes the consideration paid for the hotel and the allocation of the purchase price to the estimated fair value of assets acquired and liabilities assumed at the acquisition date. The acquisition has been accounted for in accordance with Accounting Standards Codification (“ASC”) 805, Business Combination s, using the acquisition method of accounting whereby the total purchase price has been allocated to the acquired assets and liabilities as at May 26, 2017. The estimated fair values are final and no further adjustments will be made to the identified assets and liabilities. Fair value on May 26, 2017 $'000 Consideration: Agreed cash consideration 70,759 Less: Working capital adjustment (2,107 ) Total purchase price 68,652 Assets acquired and liabilities assumed: Cash and cash equivalents 20 Accounts receivable 112 Prepaid expenses and other 45 Inventories 108 Property, plant and equipment 59,159 Other intangible assets 6,100 Accounts payable (595 ) Accrued liabilities (360 ) Deferred revenue (1,437 ) Goodwill 5,500 Net assets acquired 68,652 The purchase price of $68,652,000 was funded from existing cash reserves and $45,000,000 of borrowings under the Company’s prior revolving credit facility, which was repaid following the amendment and restatement to the credit agreement on July 3, 2017. See Note 11. Acquisition-related costs which are included within selling, general and administrative expenses in the statements of condensed consolidated operations for the year ended December 31, 2017 were $14,032,000 , related to professional fees incurred in preliminary design and planning, structuring, assessment of financing opportunities, legal, tax, accounting and engineering due diligence and the negotiation of the purchase and sale agreements, and other ancillary documents, with the principal owner and leaseholder, together with three owners of villas and separate subleases, as well as a memorandum of understanding and ground lease with the Government of Anguilla. Other intangible assets of $6,100,000 was assigned to trade names that are not subject to amortization. No other intangible assets were identified and recognized. Goodwill arising on acquisition of $5,500,000 was assigned to the Owned hotels in North America segment and consists largely of profit growth opportunities the hotel is expected to generate. None of the goodwill recognized is expected to be deductible for income tax purposes. See Note 8 for details of the fixed assets recoverability test and Note 9 for details of goodwill impairment at Belmond Cap Juluca following the impact of Hurricanes Irma and Jose in September 2017. At the same time, the Company entered into a 125 -year ground lease for the property with the Government of Anguilla. The lease has been accounted for as an operating lease in accordance with ASC 840, Leases, with the annual rental expense recognized in selling, general and administrative expenses in the statements of condensed consolidated operations, and future rental payments committed as at December 31, 2017 disclosed in Note 20. The results of operations of the hotel has been included in the consolidated financial results since the date of acquisition. The following table presents information for Belmond Cap Juluca included in the Company’s statements of condensed consolidated operations from the acquisition date to the period ending December 31, 2017 : 2017 $'000 Revenue 2,435 Losses from continuing operations (16,681 ) Belmond is unable to provide pro forma results of operations for the year ended December 31, 2017 and 2016 as if the acquisition had occurred on January 1, 2016 due to the lack of reliable historical financial information. |
Assets held for sale and discon
Assets held for sale and discontinued operations | 12 Months Ended |
Dec. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets held for sale and discontinued operations | Assets held for sale and discontinued operations At December 31, 2017 , 2016 and 2015 , no assets and liabilities were classified as held for sale. For the years ended December 31, 2017 , 2016 and 2015 , 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, 2017, a sale was completed on the shares in Northern Belle Limited, a wholly owned subsidiary that owns the Northern Belle rolling stock. During the year ended December 31, 2016, a sale was completed on the property, plant and equipment relating to the trains and carriages that were formerly operated as the Great South Pacific Express in Queensland, Australia. (a) Properties sold: Northern Belle and Great South Pacific Express On November 2, 2017, Belmond completed the sale of the shares in Northern Belle Limited, the wholly owned subsidiary that owns the rolling stock, for a sales price of £2,500,000 (equivalent to $3,300,000 as at date of sale). A loss of $753,000 arose on disposal. The following is a summary of net assets sold and the loss recorded on sale for Belmond Northern Belle: Year ended December 31, 2017 Northern Belle November 2, $'000 Property, plant & equipment 3,518 Deferred income taxes (379 ) Net working capital 110 Net assets 3,249 Transfer of foreign currency translation loss 690 3,939 Consideration: Cash 3,300 Less: Working capital adjustment (94 ) Less: Costs to sell (20 ) 3,186 Loss on sale (753 ) On April 19, 2016, Belmond completed the sale of the property, plant and equipment relating to the trains and carriages that were formerly operated as the Great South Pacific Express in Queensland, Australia for consideration of $2,362,000 to the Company’s PeruRail joint venture. The carriages were sold at their carrying value and no gain or loss arose on disposal. (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 20. 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. 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, 2017 , 2016 and 2015 are as follows: Year ended December 31, 2017 Ubud Hanging Gardens Porto Cupecoy Total $'000 $'000 $'000 Revenue — — — Earnings before tax, gain on sale and impairment 100 22 122 Earnings before tax 100 22 122 Net earnings from discontinued operations 100 22 122 Year ended December 31, 2016 Ubud Hanging Gardens Porto Cupecoy Total $'000 $'000 $'000 Revenue — — — Earnings before tax, gain on sale and impairment 69 963 1,032 Earnings before tax 69 963 1,032 Net earnings from discontinued operations 69 963 1,032 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 ) The results of discontinued operations for the years ended December 31, 2017 and 2016 included earnings of $100,000 and $69,000 , respectively, due to the partial release of legal fee accruals in relation to Ubud Hanging Gardens, where Belmond is pursuing legal remedies following its dispossession by the owner in November 2013. In addition, the results of discontinued operations for the years ended December 31, 2017 and 2016 included earnings of $22,000 and $963,000 , respectively, at Porto Cupecoy due to the release of a provision in respect of tax claims from which Belmond believes it is now effectively discharged. See Note 20. The results of discontinued operations for the year ended December 31, 2015 comprised legal fees of $636,000 in relation to Ubud Hanging Gardens. |
Variable interest entities
Variable interest entities | 12 Months Ended |
Dec. 31, 2017 | |
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 $206,267,000 at December 31, 2017 ( December 31, 2016 - $210,276,000 ) and exclude goodwill of $40,395,000 ( December 31, 2016 - $40,395,000 ). The liabilities of Charleston Center LLC for which creditors do not have recourse to the general credit of Belmond totaled $122,968,000 ( December 31, 2016 - $121,621,000 ). 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 2017 2016 2017 2016 December 31, $’000 $’000 $’000 $’000 Investment 2,642 2,818 2,642 2,818 Due from unconsolidated company 6,302 4,771 6,302 4,771 Guarantees — — — — Contingent guarantees — — — — Total 8,944 7,589 8,944 7,589 (c) Former VIEs Belmond holds a 50% equity investment in its rail joint venture in Peru, FTSA, part of its Peru Rail business that has a concession from the Government of Peru to operate the track network in southern and southeastern Peru. Belmond previously concluded that the FTSA 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. Following this, Belmond concluded that the joint venture qualified 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, 2017 | |
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, 2017 , 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, a joint venture in which Belmond holds a 50% equity interest acquired real estate in Buzios, a beach resort area in 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 joint venture company when the building permits were obtained from the local authorities. In February 2009, the Municipality of Buzios commenced a process for the expropriation of the land in exchange for a payment of fair compensation to the joint venture. In April 2011, the State of Rio de Janeiro took over the expropriation process as part of a broader State plan to develop a coastal environmental park. Under applicable law, the State had five years to carry out the expropriation in exchange for fair value, which it has failed to do by the April 18, 2016 deadline. As a result, the land returned unencumbered to the joint venture, although it can be subject to expropriation again. The Company and its joint venture partner are assessing their options, including negotiation with or litigation against the State to seek a permanent resolution of the status of the land, but in any case, the Company expects to recover its investment in the project. 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: 2017 2016 December 31, $’000 $’000 Current assets 88,119 96,247 Property, plant and equipment, net of accumulated depreciation 228,970 213,958 Other non-current assets 55,605 111,146 Non-current assets 284,575 325,104 Total assets 372,694 421,351 Current liabilities, including $24,793 and $21,021 current portion of third-party debt 101,668 89,785 Long-term debt 143,187 153,876 Other non-current liabilities 7,892 27,545 Non-current liabilities 151,079 181,421 Total shareholders’ equity 119,947 150,145 Total liabilities and shareholders’ equity 372,694 421,351 One of Belmond's unconsolidated companies reclassified a balance between property, plant and equipment and other non-current assets, following the adoption of ASC 853, Service Concession Arrangements in 2015 . As a result, as at December 31, 2016, the property, plant and equipment balance decreased by $81,704,000 and other non-current assets increased by $81,704,000 , with no net change to total assets, which is reflected in the table above. There is no impact on net earnings, EPS or cash flows in any period presented in Belmond's consolidated financial statements. 2017 2016 2015 Year ended December 31, $’000 $’000 $’000 Revenue 207,659 191,551 160,614 Gross profit (1) 141,708 135,000 104,708 Net earnings (2) (20,778 ) 21,720 17,723 (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. An impairment charge of $58,531,000 was recorded in FTSA, the joint venture in which the Company has a 50% interest and that has a concession from the Government of Peru to operate the track network in southern and southeastern Peru. Belmond's equity share of this impairment is $29,266,000 which is recorded in share of earnings from unconsolidated companies. The concession had an initial term of 30 years from 1999 with the option to apply for six 5 -year extensions. In December 2017 the joint venture received a denial of its third extension request. As a result, the joint venture can no longer conclude that the remaining three extensions are probable and has therefore reduced its expectation of the total expected life of the concession to the contracted term of 35 years of which 17 years are remaining as of December 31, 2017 . This triggered an impairment test of the assets within the joint venture and the shorter time period over which to recover the carrying value of the assets has led to an impairment charge being recorded in the year ended December 31, 2017. The life of the concession is now expected to expire in 2034. The Company is also a 50% owner of the PeruRail joint venture, which operates and manages rolling stock, including the Belmond Andean Explorer and Belmond Hiram Bingham, and is not anticipated to be impacted by the shortening of the expected FTSA concession life as it can continue to run trains on the track after the conclusion of FTSA's concession. 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 and is not expected to occur. As at December 31, 2017 , Belmond does not expect that it will be required to fund these guarantees relating to these joint venture companies. Belmond has contingently guaranteed, through 2021 , $15,868,000 of debt obligations of the joint venture in Peru that operates five hotels and has contingently guaranteed the Peru rail joint venture’s obligations relating to the performance of its governmental rail concessions, currently in the amount of $9,899,000 , through May 2018 . 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 6. |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, plant and equipment | Property, plant and equipment The major classes of property, plant and equipment are as follows: 2017 2016 December 31, $’000 $’000 Land and buildings 1,126,496 1,010,362 Machinery and equipment 181,670 179,537 Furniture, fixtures and equipment 263,716 235,098 River cruise ship and canal boats 13,900 18,618 1,585,782 1,443,615 Less: Accumulated depreciation (417,738 ) (368,939 ) Total property, plant and equipment, net of accumulated depreciation 1,168,044 1,074,676 The depreciation charge on property, plant and equipment of continuing operations for the year ended December 31, 2017 was $62,252,000 ( 2016 - $51,835,000 ; 2015 - $49,982,000 ). The table above includes the property, plant and equipment of Charleston Center LLC, a consolidated VIE, of $197,369,000 ( 2016 - $201,861,000 ). See Note 6. There was $624,000 capitalized interest in the year ended December 31, 2017 ( 2016 - $Nil ; 2015 - $Nil ). In September 2017 the islands of Anguilla and St Martin were hit by Hurricanes Irma and Jose when both Belmond La Samanna on St Martin and Belmond Cap Juluca on Anguilla were closed for the season. Both properties are included in Belmond’s global insurance program which provides a combined property damage and twelve month business interruption cover of $30,000,000 for the Caribbean as well as separate flood insurance cover, subject to a deductible. In addition, Belmond La Samanna has a separate property damage insurance policy of €4,900,000 (equivalent to $5,870,000 as at December 31, 2017 ) covering the eight villas at the resort. Both properties remain closed for refurbishment and we have made assessments regarding the nature and extent of the damage sustained and have prepared and submitted the insurance claims. Based on estimates of the level of property damage, the Company recorded a write-off to property, pla nt and equipment of $5,645,000 and $16,294,000 at Belmond La Samanna and Belmond Cap Juluca, respectively, during the year ended December 31, 2017 . Belmond expects that the recovery of property damage is probable; therefore it has recorded an insurance receivable for the same amount as the property damage that has been recognized during the year ended December 31, 2017, reduced by the deductible of $1,548,000 . In addition, certain fixed costs incurred and site clean-up costs incurred during the interruption period may be analogous to losses from property damage. As Belmond expects the recovery of these amounts to be probable, an insurance receivable of $1,622,000 has also been recorded. We are in discussion with the loss adjusters and insurance companies regarding the finalization of the claim and we expect to recover the full limit of our property insurance coverage. Initial insurance proceeds of $15,000,000 have been received in November 2017. No gain contingencies have been recorded to date as those amounts have not yet been realized. Additionally, Belmond considered whether the significant adverse change in use and physical condition following Hurricanes Irma and Jose indicated that the carrying amount of both businesses’ fixed assets may not be recoverable. Belmond concluded that an impairment trigger existed and a recoverability test was required as a result of significant increases in the estimated costs of repair to the hotels. Our current expectation at the two properties is that the total project costs at Belmond La Samanna will be approximately in the range of $25,000,000 to $30,000,000 and at Belmond Cap Juluca will be in the range of $80,000,000 to $90,000,000 , before the recovery of insurance proceeds. Under the fixed assets recoverability test, the sum of the undiscounted cash flows expected to result from the operations of Belmond Cap Juluca and Belmond La Samanna were in excess of their carrying value. As at December 31, 2017, Belmond La Samanna and Belmond Cap Juluca had a property, plant and equipment balance of $29,983,000 and $48,581,000 , respectively. See Note 9 for details of goodwill impairment at Belmond Cap Juluca. Factors that could reasonably be expected to impact Belmond’s estimates of property damage and the sum of undiscounted cash flows of the asset groups include the outcome of negotiations of the Company’s insurance claims with the Company’s insurers, the speed of recovery of island infrastructure, particularly the airport at St Martin, and the attractiveness of the Caribbean islands as a tourist destination and other uncertainties around the impact of the hurricanes on fuel, transportation and labor prices. During the year ended December 31, 2017, Belmond considered whether the decline in performance of Belmond Road to Mandalay caused by increased competition in Myanmar indicated that the carrying amount of the business’ fixed assets may not be recoverable. Belmond concluded that an impairment trigger existed and an impairment test was required. The carrying value of assets was written down to management’s best estimate of the fair value based on an internally developed discounted cash flow analysis. The impairment charge of $7,124,000 is included within impairment of property, plant and equipment in the statements of consolidated operations. During the year ended December 31, 2017, 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 the business’ fixed assets may not be recoverable. Belmond concluded that an impairment trigger existed and an impairment test was required. The carrying value of assets was written down to fair value based on assumptions of potential market value. The impairment charge of $1,092,000 is included within impairment of property, plant and equipment in the statements of consolidated operations. During the year ended December 31, 2017, Belmond considered whether the decline in performance at Belmond Governor's Residence as a result of the fall in tourist arrivals in Myanmar due to negative perceptions of the country indicated that the carrying amount of the business’ 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 operations of Belmond Governor's Residence was in excess of its carrying value. Belmond Governor's Residence had a property, plant and equipment balance of $2,614,000 at December 31, 2017. The impairment test remains sensitive to changes in assumptions; 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, changes in future travel patterns or local competitive supply. As part of Belmond's strategic plan to expand its global footprint, the Company intends to partially finance larger acquisitions through the sale of selected assets while generally seeking to retain long-term management of any disposed asset. The Company is currently considering selling Belmond El Encanto and while there can be no assurance that the Company will sell this property, if we do proceed with a sale or such a sale becomes probable within one year, Belmond will record the carrying value of the property at the lower of its carrying amount or its then estimated fair value. In the event that the estimated fair value is lower than its carrying amount an impairment charge will be recorded equal to the difference between the two figures. If the property is sold for a value that is different from its carrying amount, a gain or loss on disposal will then arise on sale. As at December 31, 2017, Belmond El Encanto had a property, plant and equipment balance of $118,414,000 . During the year ended December 31, 2016, Belmond considered whether the decline in performance of Belmond Orcaella, a cruise ship in Myanmar under long-term charter, caused by increased competition in Myanmar indicated that the carrying amount of the business' fixed assets may not be recoverable. Belmond concluded that an impairment trigger existed and an impairment test was required. The carrying value of assets was written down to fair value based on management’s best estimate of the recoverable value. The impairment charge of $1,007,000 is included within impairment of property, plant and equipment in the statements of consolidated operations. There were no impairments of property, plant and equipment in the year ended December 31, 2015. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The changes in the carrying amount of goodwill for the years ended December 31, 2017 and 2016 are as follows: Beginning balance at January 1, 2017 Ending balance at December 31, 2017 Gross goodwill amount Accumulated impairment Net goodwill amount Goodwill on acquisition Impairment Foreign currency translation adjustment Gross goodwill amount Accumulated impairment Net goodwill amount Year ended December 31, 2017 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Owned hotels: Europe 64,459 (14,202 ) 50,257 — — 6,201 70,660 (14,202 ) 56,458 North America 66,101 (16,110 ) 49,991 5,500 (5,500 ) — 71,601 (21,610 ) 49,991 Rest of world 20,581 (13,149 ) 7,432 — — (51 ) 20,530 (13,149 ) 7,381 Owned trains and cruises 6,325 (662 ) 5,663 — — 727 7,052 (662 ) 6,390 Total 157,466 (44,123 ) 113,343 5,500 (5,500 ) 6,877 169,843 (49,623 ) 120,220 Beginning balance at January 1, 2016 Ending balance at December 31, 2016 Gross goodwill amount Accumulated impairment Net goodwill amount Goodwill on acquisition Impairment Foreign currency translation adjustment Gross goodwill amount Accumulated impairment Net goodwill amount Year ended December 31, 2016 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Owned hotels: Europe 64,263 (14,202 ) 50,061 — — 196 64,459 (14,202 ) 50,257 North America 66,101 (16,110 ) 49,991 — — — 66,101 (16,110 ) 49,991 Rest of world 19,975 (13,149 ) 6,826 — — 606 20,581 (13,149 ) 7,432 Owned trains and cruises 7,780 (662 ) 7,118 — — (1,455 ) 6,325 (662 ) 5,663 Total 158,119 (44,123 ) 113,996 — — (653 ) 157,466 (44,123 ) 113,343 In the year ended December 31, 2017 , goodwill of $5,500,000 was recognized on the acquisition of Cap Juluca. See Note 4. Belmond's annual impairment test date is October 1, when all reporting units with goodwill balances are reviewed for impairment. The impairment test compares the carrying value of each reporting unit to its fair value to determine if an impairment is indicated. 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. A goodwill impairment charge is measured as the amount by which a reporting unit's carrying value exceeds its fair value, however the impairment charge not to exceed the carrying amount of goodwill allocated to that reporting unit. During the year ended December 31, 2017 , Belmond identified a non-cash goodwill impairment of $5,500,000 at Belmond Cap Juluca. Belmond determined that this impairment was triggered by the significant adverse change in use and physical condition of the hotel following Hurricanes Irma and Jose in September 2017. Significant increases in the estimated costs of repair to the hotel, estimated to be approximately in the range of $80,000,000 to $90,000,000 , before recovery of insurance proceeds, negatively impacted the discounted cash flows, resulting in the full impairment of the goodwill balance. In the three months ended December 31, 2017 , Belmond considered whether the fall in tourist arrivals in Myanmar due to negative perceptions of the country indicated that it was more likely than not that the fair value of Belmond Governor’s Residence was less than its carrying value. Under the goodwill impairment test, the fair value of Belmond Governor’s Residence was approximately 14% in excess of its carrying value. Belmond Governor’s Residence had a goodwill balance of $2,195,000 at December 31, 2017 . The impairment test remains sensitive to changes in assumptions. 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, changes in future travel patterns or local competitive supply. Any failure to meet these assumptions may result in a future impairment of goodwill. There were no impairments to goodwill in the year ended December 31, 2016 . During the year ended December 31, 2015, the following non-cash goodwill impairment charges were identified and recorded: • 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. |
Other intangible assets
Other intangible assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Other intangible assets | Other intangible assets Other intangible assets consist of the following as of December 31, 2017 and 2016 : Favorable lease assets Internet sites Trade names Total $'000 $'000 $'000 $'000 Carrying amount: Balance at January 1, 2016 8,493 1,791 7,100 17,384 Additions — 177 — 177 Foreign currency translation adjustment 8 (310 ) 479 177 Balance at December 31, 2016 8,501 1,658 7,579 17,738 Additions — — 6,100 6,100 Disposals — (247 ) — (247 ) Foreign currency translation adjustment 59 168 322 549 Balance at December 31, 2017 8,560 1,579 14,001 24,140 Accumulated amortization: Balance at January 1, 2016 2,273 1,260 3,533 Charge for the year 373 188 561 Foreign currency translation adjustment (10 ) (223 ) (233 ) Balance at December 31, 2016 2,636 1,225 3,861 Charge for the year 434 166 600 Disposals — (247 ) (247 ) Foreign currency translation adjustment 22 126 148 Balance at December 31, 2017 3,092 1,270 4,362 Net book value: December 31, 2015 6,220 531 7,100 13,851 December 31, 2016 5,865 433 7,579 13,877 December 31, 2017 5,468 309 14,001 19,778 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. In the year ended December 31, 2017, trade name additions of $6,100,000 were recognized on the acquisition of Cap Juluca. See Note 4. In the year ended December 31, 2015, favorable lease asset additions of $714,000 were recorded and 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, 2017 , 2016 and 2015 , no impairments of other intangible assets were recognized. The trade names of Belmond Cap Juluca and Belmond Grand Hotel Europe were tested for impairment as of October 1, 2017. Under the first step of the impairment test, the fair value of the Belmond Cap Juluca trade name was approximately 29% in excess of its carrying value and the fair value of the Belmond Grand Hotel Europe trade name was approximately 32% in excess of its carrying value. Belmond Cap Juluca and Belmond Grand Hotel Europe had a trade name balance of $6,100,000 and $7,901,000 , respectively, at December 31, 2017. See Note 9 for discussion of factors that could reasonably be expected to potentially have an adverse effect on the fair value of the Belmond Cap Juluca trade name. Amortization expense from continuing operations for the year ended December 31, 2017 was $600,000 ( 2016 - $561,000 ; 2015 - $531,000 ). Estimated amortization expense for each of the years ending December 31, 2018 to December 31, 2022 is approximately $600,000 . |
Debt and obligations under capi
Debt and obligations under capital lease | 12 Months Ended |
Dec. 31, 2017 | |
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: 2017 2016 December 31, $’000 $’000 Loans from banks and other parties collateralized by tangible and intangible personal property and real estate with a maturity of 20 months to seven years (2016 - two to five years), with a weighted average interest rate of 4.11% (2016 - 4.27%) 724,208 602,083 Obligations under capital lease 22 19 Total long-term debt and obligations under capital leases 724,230 602,102 Less: Current portion 6,407 5,284 Less: Discount on secured term loan 3,092 1,515 Less: Debt issuance costs 13,979 9,535 Non-current portion of long-term debt and obligations under capital lease 700,752 585,768 On July 3, 2017, Belmond entered into an amended and restated credit agreement (defined below), which had previously consisted of (a) a seven -year $551,955,000 term loan facility consisting of a $345,000,000 U.S. dollar tranche and a €150,000,000 euro-denominated tranche (equivalent to $206,955,000 at drawdown), scheduled to mature on March 21, 2021; and (b) a $105,000,000 revolving credit facility scheduled to mature on March 21, 2019. In April 2017, Belmond made a drawdown of $45,000,000 on its prior revolving credit facility in connection with the acquisition of Cap Juluca, which was repaid following the amendment and restatement of the credit agreement on July 3, 2017 (the "Amended and Restated Credit Agreement"). See Note 4. The Amended and Restated Credit Agreement provides the Company with (i) a seven -year $603,434,000 secured term loan (the "Term Loan Facility") that matures on July 3, 2024 and (ii) a $100,000,000 revolving credit facility (the "Revolving Credit Facility") that matures on July 3, 2022 (together the "Secured Credit Facilities"). As at December 31, 2017, Belmond was financed with a $609,955,000 Term Loan Facility and a $100,000,000 Revolving Credit Facility which is undrawn. The Term Loan Facility has two tranches, a U.S. dollar tranche ( $398,000,000 currently outstanding) and a euro-denominated tranche ( €178,105,000 currently outstanding, equivalent to $213,352,000 as at December 31, 2017 ). The dollar tranche bears interest at a rate of LIBOR plus 2.75% per annum, and the euro tranche bears interest at a rate of EURIBOR plus 3.00% per annum. Both tranches are subject to a 0% interest rate floor. 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 2.50% per annum, with a commitment fee of 0.4% paid on the undrawn amount. The Revolving Credit Facility is undrawn at December 31, 2017 . The Secured Credit Facilities 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 June 2016, Charleston Center LLC amended its secured loan of $86,000,000 increasing the amount of the loan to $112,000,000 but retaining the 2019 maturity. The interest rate on the new loan is LIBOR plus 2.35% per annum, has no amortization and is non-recourse to Belmond. The additional proceeds were used to repay a 1984 development loan from a municipal agency in the principal amount of $10,000,000 and accrued interest of $16,819,000 . In connection with the early repayment of the loan, Belmond negotiated a discount that resulted in a net gain, reported in the statements of consolidated operations during the year ended December 31, 2016 , of $1,200,000 upon extinguishment of debt, including the payment of a tax indemnity to its partners in respect of their allocation of income from the discount arising on the cancellation of indebtedness. The following is a summary of the aggregate maturities of long-term debt, including obligations under capital lease, at December 31, 2017 : Year ended December 31, $’000 2018 6,407 2019 118,428 2020 6,428 2021 6,193 2022 6,144 2023 6,144 2024 and thereafter 574,486 Total long-term debt and obligations under capital lease 724,230 The Company has guaranteed $611,351,000 of the long-term debt of its subsidiary companies as at December 31, 2017 ( 2016 - $488,985,000 ). The tables above include the debt of Charleston Center LLC of $112,857,000 at December 31, 2017 ( 2016 - $113,098,000 ). The debt is non-recourse to Belmond and includes $112,000,000 which was refinanced in June 2016. A loss on modification of debt of $682,000 ( 2016 - $Nil ) was recognized in the year ended December 31, 2017. The loss consisted of unamortized debt issuance costs relating to the Amended and Restated Credit Agreement. Debt issuance costs related to the above outstanding long-term debt were $13,979,000 at December 31, 2017 ( 2016 - $9,535,000 ), including $533,000 at December 31, 2017 ( 2016 - $888,000 ) 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 $100,598,000 of revolving credit and working capital facilities at December 31, 2017 ( 2016 - $105,525,000 ) of which $100,598,000 was available ( 2016 - $105,525,000 ). |
Other liabilities
Other liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Other liabilities | Other liabilities The major balances in other liabilities are as follows: 2017 2016 December 31, $’000 $’000 Interest rate swaps (see Note 22) — 1,054 Long-term income tax liability 2,143 — Deferred gain on sale of Inn at Perry Cabin by Belmond 750 1,350 Deferred lease incentive 130 162 Tax indemnity provision on extinguishment of debt (see Note 11) — 2,800 Total other liabilities 3,023 5,366 The tax indemnity provision on extinguishment of debt, included within other liabilities at December 31, 2016, is classified within accrued liabilities for an amount totaling $2,644,000 at December 31, 2017. |
Pensions
Pensions | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [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: 2017 2016 2015 Year ended December 31, % % % Discount rate 2.70 3.85 3.70 Expected long-term rate of return on plan assets 3.87 4.90 4.10 The significant weighted-average assumptions used to determine benefit obligations of the plan at year end were as follows: 2017 2016 December 31, % % Discount rate 2.50 2.70 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, 2017 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, 2017 and 2016 by asset category is as follows: Total Level 1 Level 2 Level 3 December 31, 2017 $’000 $’000 $’000 $’000 Cash 1,908 1,908 — — Equity securities: U.K. managed funds 4,529 4,529 — — Overseas managed funds 8,486 8,486 — — Fixed income securities: U.K. government bonds 3,058 3,058 — — Corporate bonds 3,437 3,437 — — Other types of investments: Quoted hedge funds 4,635 4,635 — — Annuities 2,179 — — 2,179 28,232 26,053 — 2,179 Total Level 1 Level 2 Level 3 December 31, 2016 $’000 $’000 $’000 $’000 Cash 2,840 2,840 — — Equity securities: U.K. managed funds 4,461 4,461 — — Overseas managed funds 5,667 5,667 — — Fixed income securities: U.K. government bonds 2,774 2,774 — — Corporate bonds 2,004 2,004 — — Other types of investments: Quoted hedge funds 4,330 4,330 — — Annuities 1,942 — — 1,942 24,018 22,076 — 1,942 The value of the annuities is the present value at the measurement date of the expected future cashflows under the annuity policy in which significant unobservable inputs were used. Therefore, we have classified the annuities as Level 3 assets. All other assets are valued using quoted market prices in active markets or other observable inputs. Reconciliations of fair value measurements using significant unobservable inputs (Level 3) at December 31, 2017 and 2016 are as follows: Annuities Year ended December 31, 2017 $’000 Beginning balance at January 1, 2017 1,942 Foreign exchange 190 Actual return on plan assets: Assets still held at the reporting date 120 Purchases, sales and settlements, net (73 ) Ending balance at December 31, 2017 2,179 Annuities Year ended December 31, 2016 $’000 Beginning balance at January 1, 2016 2,026 Foreign exchange (342 ) Actual return on plan assets: Assets still held at the reporting date 321 Purchases, sales and settlements, net (63 ) Ending balance at December 31, 2016 1,942 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: 2017 2016 2015 Year ended December 31, $’000 $’000 $’000 Change in benefit obligation: Benefit obligation at beginning of year 25,465 24,556 27,353 Interest cost 713 861 984 Actuarial loss/(gain) 663 5,259 (702 ) Benefits paid (485 ) (529 ) (1,723 ) Foreign currency translation 2,526 (4,682 ) (1,356 ) Benefit obligation at end of year 28,882 25,465 24,556 Change in plan assets: Fair value of plan assets at beginning of year 24,018 24,202 24,968 Actual return on plan assets 1,264 3,116 309 Employer contributions 1,009 1,730 1,946 Benefits paid (485 ) (529 ) (1,723 ) Foreign currency translation 2,426 (4,501 ) (1,298 ) Fair value of plan assets at end of year 28,232 24,018 24,202 Funded status at end of year (650 ) (1,447 ) (354 ) Net actuarial (gain)/loss recognized in other comprehensive loss (383 ) 2,649 (727 ) Amounts recognized in the consolidated balance sheets consist of the following: 2017 2016 December 31, $’000 $’000 Non-current liabilities 650 1,447 Amounts recognized in accumulated other comprehensive loss gross of tax consist of the following: 2017 2016 December 31, $’000 $’000 Net loss (12,200 ) (12,583 ) Prior service cost — — Net transitional obligation — — Total amount recognized in accumulated other comprehensive loss (12,200 ) (12,583 ) The following table details certain information with respect to Belmond’s U.K. defined benefit pension plan: 2017 2016 Year ended December 31, $’000 $’000 Projected benefit obligation 28,882 25,465 Accumulated benefit obligation 28,882 25,465 Fair value of plan assets 28,232 24,018 Components of net periodic benefit cost are as follows: 2017 2016 2015 Year ended December 31, $’000 $’000 $’000 Service cost — — — Interest cost on projected benefit obligation 713 861 984 Expected return on assets (997 ) (1,121 ) (1,034 ) Net amortization and deferrals 780 615 750 Net periodic benefit cost 496 355 700 Belmond (UK) Ltd., the plan sponsor and a wholly owned subsidiary of the Company ("Belmond UK"), was previously obligated to pay £1,272,000 (equivalent to $1,717,000 at December 31, 2017 ) annually to the plan under the U.K. statutorily-mandated triennial negotiation with the plan's trustees. With a new triennial arrangement that came into effect in June 2017, the funding obligation was reduced from £106,000 to £24,000 (equivalent to $143,000 and $33,000 as at December 31, 2017 ) per month. Under the prior contribution level, the plan's funding deficit was projected to be fully funded by the end of 2017 . With the current funding level, Belmond UK is obligated to continue funding until the audited financials of the plan for the year ended December 31, 2018 are available. If no unfunded balance remains, Belmond UK shall be able to suspend further payments, but otherwise it will be expected to continue paying its monthly contribution, subject to any subsequent triennial negotiation with the plan's trustees. However, once the plan is fully funded, Belmond UK will remain obliged to restore the plan to a fully funded balance over the remainder of the period through December 31, 2021 should its position deteriorate. In May 2014, Belmond Ltd. guaranteed the payment obligations of Belmond UK through 2023 , subject to a cap of £8,200,000 (equivalent to $11,070,000 at December 31, 2017 ), which reduces commensurately with every payment made to the plan since December 31, 2012. As part of the recent triennial negotiation referred to above, Belmond has reinstated this guarantee effective July 1, 2017, for the period through 2026 and reset the cap from December 31, 2015 at £8,200,000 , which as before will reduce with each payment made to the plan over the period. The following benefit payments, which reflect assumed future service, are expected to be paid: Year ended December 31, $’000 2018 483 2019 668 2020 536 2021 689 2022 583 Next five years 5,112 The estimated net loss amortized from accumulated other comprehensive income/(loss) into net periodic pension cost in the next fiscal year is $768,000 . Certain employees of Belmond were members of defined contribution pension plans. Total contributions to the plans were as follows: 2017 2016 2015 Year ended December 31, $’000 $’000 $’000 Employers’ contributions 2,030 2,052 2,199 |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2017 | |
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. Accordingly, 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. The most significant item which impacts the tax charge for the year ended December 31, 2017 is the deferred tax benefit of $19,807,000 arising as a result of the reduction in corporate tax rate in the U.S., as explained below. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act of 2017 (the “Tax Act”). The Tax Act makes complex changes to U.S. tax code that impacts U.S. subsidiaries of Belmond Ltd. at December 31, 2017. The Act reduces the corporate tax rate from 35 to 21 percent, effective January 1, 2018 . Consequently, Belmond has recorded a decrease related to deferred tax liabilities of $19,807,000 , with a corresponding adjustment to deferred income tax benefit of $19,807,000 for the year ended December 31, 2017. The Deemed Repatriation Tax (“Transition Tax”) is a tax on previously untaxed accumulated and current earnings and profits (“E&P”) of certain foreign subsidiaries owned directly or indirectly by Belmond's U.S. entities. To determine the amount of the Transition Tax, the Company must determine, in addition to other factors, the amount of post-1986 E&P of the relevant subsidiaries, as well as the amount of non-U.S. income taxes paid on such earnings. Belmond believes it is able to make a reasonable estimate of the Transition Tax and recorded a provisional Transition Tax obligation of $2,330,000 . However, the analysis is incomplete, and Belmond is continuing to gather additional information to more precisely compute the amount of the Transition Tax. Our analysis in respect of the tax rate is complete. The provision for income taxes consists of the following: Provision for income taxes Year ended December 31, 2017 Pre-tax Current Deferred Total UK (18,518 ) 1,671 (372 ) 1,299 Bermuda (34,873 ) — — — United States (1,850 ) 3,332 (12,987 ) (9,655 ) Brazil 2,193 2,322 (804 ) 1,518 Italy 20,265 5,359 972 6,331 Peru 14,367 4,712 248 4,960 Rest of the world (9,887 ) 2,800 (699 ) 2,101 (28,303 ) 20,196 (13,642 ) 6,554 Provision for income taxes Year ended December 31, 2016 Pre-tax Current Deferred Total UK (6,702 ) 949 (444 ) 505 Bermuda 160 — — — United States 2,681 (1,510 ) (1,978 ) (3,488 ) Brazil 15,303 5,498 (121 ) 5,377 Italy 19,971 4,468 1,998 6,466 Peru 13,965 4,261 1,625 5,886 Rest of the world (4,622 ) 3,007 (1,385 ) 1,622 40,756 16,673 (305 ) 16,368 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 The reconciliation of (losses)/earnings 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: 2017 2016 2015 Year ended December 31, $'000 $'000 $'000 (Losses)/earnings before provision for income taxes and earnings from unconsolidated companies, net of tax (28,303 ) 40,756 25,354 Tax (benefit)/charge at statutory tax rate of 19.25%, 20% and 15% (1) (5,448 ) 8,151 3,803 Exchange rate movements on deferred tax 2,400 (1,785 ) (1,912 ) Notional interest deductions (960 ) (1,812 ) (1,867 ) Imputed cross border charges 763 995 716 Disallowable goodwill impairment charges — — 2,198 Other permanent disallowable expenditure 3,664 483 5,762 Unrecognized tax loss generated on disposal of Hotel Ritz by Belmond — — (16,029 ) Change in valuation allowance 2,215 4,876 16,320 Difference in taxation rates 13,874 9,509 12,948 Adjustment to deferred tax for VIE 7,263 — — Change in provisions for uncertain tax positions 160 (3,350 ) 279 Change in tax rates (19,807 ) (643 ) (5,121 ) Transition tax in U.S. 2,330 — — Other 100 (56 ) (56 ) Provision for income taxes 6,554 16,368 17,041 (1) The Company migrated its tax residence to the United Kingdom on April 1, 2015, which has a statutory tax rate of 19.25% for the year ended December 31, 2017 (2016: 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 for the year ended December 31, 2015. 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: 2017 2016 2015 Year ended December 31, $’000 $’000 $’000 Operating loss carry-forwards 58,185 82,292 89,513 Pensions 95 255 63 Share-based compensation 703 3,617 2,978 Other 8,184 8,283 8,952 Less: Valuation allowance (49,337 ) (70,241 ) (69,928 ) Net deferred tax assets 17,830 24,206 31,578 Other (4,817 ) (5,032 ) (7,427 ) Property, plant and equipment (128,206 ) (141,231 ) (147,265 ) Deferred tax liabilities (133,023 ) (146,263 ) (154,692 ) Net deferred tax liabilities (115,193 ) (122,057 ) (123,114 ) Non-current deferred income tax liabilities are presented separately on the face of the consolidated balance sheets for all periods and non-current deferred tax assets are included within Other assets. The gross amount of tax loss carry-forwards is $316,418,000 at December 31, 2017 ( 2016 - $369,523,000 ). Of this amount, $11,037,000 will expire in the five years ending December 31, 2022 and a further $11,272,000 will expire in the five years ending December 31, 2027. The remaining losses of $294,109,000 will expire after December 31, 2027 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 $1,611,000 ( 2016 - $1,669,000 ) 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 $1,406,000,000 at December 31, 2017 ( 2016 - $1,355,000,000 ). The determination of the additional deferred taxes that have not been provided is not practical. Belmond’s 2017 tax charge of $6,554,000 ( 2016 - tax charge of $16,368,000 ; 2015 - tax charge of $17,041,000 ) included a charge of $160,000 ( 2016 - credit of $3,350,000 ; 2015 - charge of $279,000 ) in respect of the provision for uncertain tax positions, of which a charge of $15,000 ( 2016 - charge of $639,000 ; 2015 - charge of $247,000 ) related to the potential interest and penalty costs associated with the uncertain tax positions. The 2017 provision for income taxes included a deferred tax provision of $2,215,000 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 $4,876,000 provision in 2016 . At December 31, 2017 , the total amounts of unrecognized tax benefits included the following: Total Principal Interest Penalties Year ended December 31, 2017 $’000 $’000 $’000 $’000 Balance, January 1, 2017 318 249 21 48 Additional uncertain tax provision identified during the year 215 197 1 17 Increase to uncertain tax provision on prior year positions 27 17 7 3 Uncertain tax provisions settled during the year — — — — Decreases as a result of expiration of the statute of limitations (82 ) (69 ) (3 ) (10 ) Foreign exchange 54 44 — 10 Balance at December 31, 2017 532 438 26 68 At December 31, 2017 , Belmond recognized a $532,000 liability in respect of its uncertain tax positions. The entire balance of unrecognized tax benefit at December 31, 2017 , if recognized, would affect the effective tax rate. At December 31, 2016 , the total amounts of unrecognized tax benefits included the following: Total Principal Interest Penalties Year ended December 31, 2016 $’000 $’000 $’000 $’000 Balance at January 1, 2016 3,678 2,967 656 55 Additional uncertain tax provision identified during the year 78 61 4 13 Increase to uncertain tax provision on prior year positions 4 — 4 — Uncertain tax provisions settled during the year (3,308 ) (2,668 ) (640 ) — Decreases as a result of expiration of the statute of limitations (124 ) (104 ) (2 ) (18 ) Foreign exchange (10 ) (7 ) (1 ) (2 ) Balance at December 31, 2016 318 249 21 48 At December 31, 2016 , Belmond recognized a $318,000 liability in respect of its uncertain tax positions. The entire balance of unrecognized tax benefit at December 31, 2016 , if recognized, would affect the effective tax rate. 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 — Decreases as a result of expiration of the statute of limitations (35 ) (30 ) (2 ) (3 ) Foreign exchange (38 ) (31 ) (1 ) (6 ) Balance, 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. 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, 2017 , the earliest year in any jurisdiction which is open to examination by the tax authorities is 2003. Belmond believes that it is reasonably possible that within the next 12 months the uncertain tax provision will decrease by approximately $100,000 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, 2017 | |
Other Income and Expenses [Abstract] | |
Interest expense | Interest expense The balances in interest expense are as follows: 2017 2016 2015 Year ended December 31, $’000 $’000 $’000 Interest expense on long-term debt and obligations under capital lease 29,425 27,090 27,380 Withholding tax provision classified as interest — — (1,476 ) Interest on legal settlements (28 ) (979 ) 3,294 Amortization of debt issuance costs and discount on secured term loan 3,682 3,044 2,903 Interest capitalized (624 ) — — Total interest expense 32,455 29,155 32,101 |
Supplemental cash flow informat
Supplemental cash flow information | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental cash flow information | Supplemental cash flow information 2017 2016 2015 Year ended December 31, $’000 $’000 $’000 Cash paid during the period for: Interest 30,329 40,930 27,828 Income taxes, net of refunds 19,838 19,804 18,306 To reflect the actual cash paid for capital expenditure to acquire property, plant and equipment, increases in accounts payable for capital expenditure are non-cash and excluded from capital expenditure, while decreases are cash payments and included. The changes in accounts payable were an increase of $661,000 and a decrease of $223,000 for the years ended December 31, 2017 and 2016 , respectively. During the year ended December 31, 2016, cash paid during the period for interest of $30,329,000 ( December 31, 2016 $40,930,000 ) included the payment of accrued interest on a 1984 development loan from a municipal agency that was fully repaid by Charleston Center LLC in June 2016. See Note 11. |
Restricted cash
Restricted cash | 12 Months Ended |
Dec. 31, 2017 | |
Cash and Cash Equivalents [Abstract] | |
Restricted cash | Restricted cash The major balances in restricted cash are as follows: 2017 2016 December 31, $’000 $’000 Cash deposits required to be held with lending banks as collateral 801 755 Prepaid customer deposits which will be released to Belmond under its revenue recognition policy 2,488 1,341 Bonds and guarantees 633 489 Total restricted cash 3,922 2,585 Restricted cash classified as long-term and included in other assets on the consolidated balance sheet at December 31, 2017 was $801,000 ( December 31, 2016 - $755,000 ). |
Shareholders' equity
Shareholders' equity | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based compensation plans | Share-based compensation plans At December 31, 2017 , Belmond had two share-based compensation plans, the 2004 stock option plan and the 2009 share award and incentive plan. The compensation cost that has been charged to selling, general and administrative expense for these plans was $5,809,000 for the year ended December 31, 2017 ( 2016 - $6,272,000 ; 2015 - $6,707,000 ). Cash received from exercised options and vested awards was $305,000 for the year ended December 31, 2017 ( 2016 - $17,000 ; 2015 - $35,000 ). The total compensation cost related to unexercised options and unvested share awards at December 31, 2017 to be recognized over the period January 1, 2018 to December 31, 2022 , was $6,531,000 and the weighted average period over which it is expected to be recognized is 30 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 . There were no grants under the 2004 stock option plan during the year ended December 31, 2017 . (a) 2004 stock option plans Under the Company’s 2004 stock option plan, options to purchase up to 1,000,000 class A common shares 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, 2017 , 15,300 class A common shares were reserved under the 2004 plan. At December 31, 2017 , no shares remain available for future grants under the 2004 plan as these have been transferred to the 2009 plan described below which became effective in 2009. Details of share option transactions under the 2004 stock option plan are as follows: Number of shares Weighted average Weighted average Aggregate intrinsic Outstanding — January 1, 2016 85,650 36.30 Exercised (2,548 ) 5.89 Forfeited, canceled or expired (16,752 ) 27.75 Outstanding — December 31, 2016 66,350 39.63 Exercised (3,907 ) 5.89 Forfeited, canceled or expired (47,143 ) 47.90 Outstanding — December 31, 2017 15,300 15.99 0.7 54 Exercisable — December 31, 2017 15,300 15.99 0.7 54 The options outstanding under the 2004 plans at December 31, 2017 were as follows: Exercise Outstanding at Exercisable at Remaining Exercise prices Exercise prices 5.89 8,500 8,500 0.9 5.89 5.89 35.85 2,600 2,600 0.7 35.85 35.85 46.08 2,200 2,200 0.4 46.08 46.08 51.90 2,000 2,000 0.2 51.90 51.90 15,300 15,300 The fair value of options which were exercised in the year to December 31, 2017 was $8,000 . No options vested and no options were granted under the plans during the year ended December 31, 2017 . (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 1,084,500 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 2017 , the following awards were made under the 2009 share award and incentive plan on the following dates. Estimates of fair values of share options and deferred shares with and without performance criteria 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 104,425 December 9, 2017 December 9, 2018 $12.25 27% 1.92% $— 2.5 years Share options 104,425 December 9, 2017 December 9, 2019 $12.25 27% 1.92% $— 3.5 years Share options 104,425 December 9, 2017 December 9, 2020 $12.25 28% 2.14% $— 4.5 years Share options 104,425 December 9, 2017 December 9, 2021 $12.25 31% 2.14% $— 5.5 years Share options 40,900 June 11, 2017 June 11, 2018 $13.45 29% 1.50% $— 2.5 years Share options 40,900 June 11, 2017 June 11, 2019 $13.45 29% 1.50% $— 3.5 years Share options 40,900 June 11, 2017 June 11, 2020 $13.45 30% 1.77% $— 4.5 years Share options 40,900 June 11, 2017 June 11, 2021 $13.45 34% 1.77% $— 5.5 years During the year ended December 31, 2017 , 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 56,390 June 11, 2017 June 11, 2018 $0.01 Restricted shares without performance criteria 48,872 June 11, 2017 June 11, 2020 $0.01 Restricted shares without performance criteria 11,278 June 11, 2017 On retirement $0.01 Restricted shares without performance criteria 34,450 March 17, 2017 March 17, 2018 $0.01 Restricted shares without performance criteria 34,450 March 17, 2017 March 17, 2019 $0.01 Restricted shares without performance criteria 117,231 March 17, 2017 March 17, 2020 $0.01 Restricted shares without performance criteria 34,450 March 17, 2017 March 17, 2021 $0.01 Restricted shares with performance criteria 228,500 March 17, 2017 March 17, 2020 $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, 2016 2,702,957 10.97 Granted 518,300 11.61 Exercised (59,833 ) 9.35 Forfeited, canceled or expired (516,935 ) 10.77 Outstanding — December 31, 2016 2,644,489 11.17 Granted 581,300 12.59 Exercised (107,552 ) 8.76 Forfeited, canceled or expired (428,830 ) 11.22 Outstanding — December 31, 2017 2,689,407 10.75 7.3 2,940 Exercisable — December 31, 2017 1,516,388 11.34 6.0 2,087 The options outstanding under the 2009 plan at December 31, 2017 were as follows: Exercise Outstanding at Exercisable at Remaining Exercise prices Exercise prices 8.91 24,800 24,800 1.9 8.91 8.91 8.37 13,600 13,600 2.4 8.37 8.37 11.44 54,650 54,650 2.9 11.44 11.44 11.69 44,600 44,600 3.4 11.69 11.69 8.06 132,250 132,250 3.9 8.06 8.06 9.95 31,700 31,700 4.2 9.95 9.95 8.42 50,600 50,600 4.4 8.42 8.42 11.32 152,050 152,050 4.9 11.32 11.32 9.95 31,700 31,700 5.1 9.95 9.95 11.74 82,800 82,800 5.4 11.74 11.74 14.51 184,450 184,450 6.0 14.51 14.51 14.08 97,100 97,100 6.5 14.08 14.08 11.57 251,083 251,083 7.0 11.57 11.57 12.50 79,000 39,650 7.5 12.50 12.50 13.75 96,165 48,083 7.7 13.75 13.75 8.98 332,709 163,493 7.9 8.98 8.98 9.64 152,900 38,225 8.5 9.64 9.64 12.75 301,450 75,554 8.9 12.75 12.75 13.45 159,100 — 9.5 13.45 — 12.25 416,700 — 10.0 12.25 — 2,689,407 1,516,388 The fair value of option grants made in the year to December 31, 2017 was $1,887,000 . The fair value of options which became exercisable in the year to December 31, 2017 was $2,158,000 . The fair value of options which were exercised in the year was $505,000 . The number of options which vested during the year was 588,739 . 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, 2016 1,162,187 0.01 Granted 624,261 0.01 Vested and issued (331,299 ) 0.01 Forfeited, canceled or expired (261,374 ) 0.01 Outstanding — December 31, 2016 1,193,775 0.01 Granted 565,621 0.01 Vested and issued (334,958 ) 0.01 Forfeited, canceled or expired (152,700 ) 0.01 Outstanding — December 31, 2017 1,271,738 0.01 15,566 At December 31, 2017 , awards of deferred shares and restricted shares on 1,271,738 class A common shares were reserved under the 2009 plan. Of these awards, 687,335 deferred shares and restricted shares do not specify any performance criteria and will vest up to March 2020. The remaining awards of up to 584,403 deferred shares are subject to performance criteria. The fair value of deferred shares and restricted shares awarded in the year to December 31, 2017 was $4,923,000 . The fair value of deferred shares vested in the year to December 31, 2017 was $3,925,000 . There were no vested and unissued deferred share or restricted shares awards as of December 31, 2017 . 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, 2017 2016 2015 Expected share price volatility 27% - 34% 29% - 40% 28% - 58% Risk-free interest rate 1.50% - 2.14% 0.76% - 1.84% 0.65% - 1.83% Expected annual dividends per share $— $— $— Expected life of share options 2.5 - 5.5 years 2.5 - 5.5 years 2.5 - 6.9 years |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and contingencies Belmond Copacabana Palace 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 to date. 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. In September 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. Ubud Hanging Gardens 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 eight separate actions filed by the owner for lack of jurisdiction due to the arbitration clause in the parties’ lease. The owner has appealed five of these decisions, all of which plead variations on the same facts, of which four have been affirmed by the Appellate Court with two of those affirmed by the Indonesian Supreme Court and the other two await a decision by the Indonesian Supreme Court. The fifth case was reversed in favor of the owner on appeal in October 2014 and affirmed by the Indonesian Supreme Court in December 2016. Belmond has sought review for reconsideration by the Supreme Court. In the meantime, Belmond filed with the Central Jakarta District Court in October 2017, as further support for the enforcement of Belmond’s arbitral claim, the decisions of four Indonesian trial courts enforcing the arbitration provision under the lease and ruling that the Indonesian courts had no jurisdiction over the parties’ 2013 dispute, along with four affirming decisions from the appellate courts and the two from the Indonesian Supreme Court. 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. 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 Hotel das Cataratas In September 2014, the Brazilian Ministry of Planning, Budget and Management notified the Company that it was denying the Company's application to extend the term or reduce the rent under the lease for Belmond Hotel das Cataratas, which was entered into in 2007. 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. Prior to August 2014, with the agreement of the Ministry, the Company had been paying the base annual rent without an annual adjustment for inflation as provided for in the lease, pending resolution of Belmond’s application. Throughout this period, the Company had expensed the full rental amount and has fully accrued the difference between the rental charge and the amount actually paid. Based on the Ministry’s decision denying any relief, the Ministry directed the Company that it would henceforth assess rent at the contractual rate, which has been included in the table of future rental payments as at December 31, 2017 , and that it was required to pay the difference between the contractual rent and the rent that had been actually paid. On March 20, 2015, the Ministry provided notice to the hotel that an aggregate amount of approximately R$17,000,000 ( $5,139,000 ) was due on March 31, 2015 as a result of its rejection of any relief sought by Belmond. The Company appealed to the Ministry to reconsider its decision on both procedural and substantive grounds. Pending this requested reconsideration and exhaustion of administrative remedies, the Company did not pay to the Ministry the amount claimed. The Company filed a lawsuit in the Federal Court in Paraná State in August 2016 against the Government of Brazil regarding the Ministry’s failure to properly consider and modify the lease concession for Belmond Hotel das Cataratas. The Federal Court granted the Company’s request for an injunction against the Government enforcing its claim and granted the Company’s request for a 25% preliminary reduction in rent, pending a decision on the merits, which the Superior Court upheld on appeal in a decision rendered in September 2016. The Government appealed to a three-judge panel of the Superior Court, which upheld the decision of the Federal Court in favor of the Company in a judgment rendered in January 2017. On October 17, 2017, the Federal Court issued a decision on the merits denying in part the Company’s claim for modification of the lease concession. The Court ruled although the lease is an administration agreement rather than a simple commercial lease, the Company had not overcome its burden of proof to show that a modification was justified. The Court further ordered that the Company must pay the stated rent in the lease rather than the reduced rent set by the Federal Court in September 2016. The Court also revoked the injunction issued in September 2016 that had been subsequently affirmed on appeal prohibiting the Federal Government from pursuing a claim against the Company to recover the difference between the stated lease rent and the amounts the Company actually paid during the period from 2009 to 2014. The Company appealed this decision and requested injunctive relief enjoining the Government from enforcing the decision of the Federal Court pending a hearing on the appeal. On December 22, 2017, the Federal Superior Court denied the Company's request for an injunction and affirmed the lower court's partial decision on the merits. As a result, the Federal Government could seek immediately to enforce its claim for allegedly unpaid lease obligations. The Company has reserved against this claim, and this accrual as at December 31, 2017 totaled R$25,174,000 ( $7,610,000 ). The Company does not believe that any loss above the amounts accrued is likely. The Company intends to vigorously contest the remaining issues in front of the Federal Court, particularly the matter of proving that a modification of the lease concession is warranted under the circumstances. Belmond Miraflores Park The Company is contesting a claim against Belmond Miraflores Park Hotel (“BMP”) by the municipality of Miraflores in Lima, Peru, where BMP is located. The municipality alleges that BMP has generated noise and vibrations in violation of municipal nuisance ordinances resulting in the disturbance of certain apartment owners in an adjoining residential building. The local administrative court ruled in favor of the municipality, and levied a nominal fine and issued an order for injunctive relief that included the potential closure of BMP pending the elimination of the noise and vibrations. In March 2016, after the administrative court’s ruling was affirmed at the trial court and subsequently, the appellate court level, BMP appealed to the Supreme Court of Peru. Enforcement of the ruling of the appellate court has been stayed pending the Supreme Court appeal. On June 29, 2017, the Supreme Court issued a decision accepting BMP’s appeal rather than, as BMP had expected, summarily affirming the appellate court decision. Consequently, BMP expects that the Supreme Court will issue its opinion on this matter in the latter half of 2018. Management believes that the risk of closure of BMP is remote because BMP will have completed its remediation by the time the Supreme Court issues its decision and expects to be in compliance with municipal nuisance ordinances at that time. BMP has other alternatives that it could pursue to resolve this matter if BMP is not compliant by the time of the Supreme Court decision. Accordingly, management does not believe that a material loss is probable and no accrual has been made in respect of this matter. Cupecoy Village Development N.V. In July 2015, Cupecoy Village Development N.V. ("Cupecoy") 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 believed indicated a maximum possible loss of $16,500,000 . Belmond believed that the report received from the tax authorities contains a number of material miscalculations and misinterpretations of fact and law. The Company had provided a written response to the tax authorities disputing their assessment and expected the resolution of this dispute to result in only an immaterial cost. However, the tax authorities consistently failed to respond or otherwise engage with Belmond or Cupecoy and therefore the Company gave the tax authorities notice that it intended to wind up Cupecoy, which the Company did after receiving no response from the authorities to this notice. In October 2016, following our application to the court, Cupecoy was declared technically insolvent in light of the 2015 tax claim, at which point the Company determined that any liability in respect of Cupecoy was effectively discharged. A final bankruptcy declaration was issued in the first quarter of 2017. "Cipriani" Trademark 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 against Belmond’s "Cipriani" Community trademark. To date, Belmond has successfully rebutted this challenge at every level of administrative appeal, including before the EU General Court in Luxembourg which issued a decision on June 29, 2017 dismissing the Arrigo Cipriani appeal and ordering that appellant pay the costs of the court and the Company. 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. In addition, 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 November 2017, the Court rejected the family's complaint and awarded costs to the Company. This decision was not subsequently appealed. 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 its use of the full name (rather than just an initial with the family's surname), would not constitute infringement of the Company’s registered trademark. This ruling was overturned on appeal in favor of the Company on November 30, 2017. The Cipriani family has appealed this decision before the Italian Supreme Court, and in a separate filing to the appellate court has requested the reconsideration of that court's decision. While Belmond believes it has a meritorious case, Belmond cannot estimate the range of possible additional loss if it should not prevail in this matter and Belmond has made no accruals in respect of the matter. 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. Belmond Sanctuary Lodge On November 28, 2017, Peru Belmond Hotels S.A., the Peruvian hotel joint venture in which the Company holds a 50% interest ("PBH"), received notification of a complaint filed with the Court of Cusco by the Regional Government of Cusco seeking the annulment of the ten-year extension of the Belmond Sanctuary Lodge concession that commenced in May 2015. The Regional Government alleges that the President of the Region at the time of the execution of the extension did not have the sole authority to bind the Regional Government. This lawsuit is substantially similar to a complaint filed by the Regional Government against PBH in January 2015 that was dismissed by the Court of Cusco and, upon appeal by the Regional Government, was affirmed by the Superior Court of Cusco in favor of PBH in June 2016. The Company does not believe that there is any merit to the Regional Government's complaint. 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. 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 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. Capital commitments Outstanding contracts to purchase property, plant and equipment were approximately $19,464,000 at December 31, 2017 ( December 31, 2016 - $7,772,000 ). Future rental payments and rental expense 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 2018 12,072 2019 10,879 2020 10,919 2021 11,422 2022 9,283 2023 and thereafter 141,832 196,407 Rental expense under operating leases for the year ended December 31, 2017 amounted to $14,805,000 ( 2016 - $13,037,000 ; 2015 - $10,675,000 ). |
Fair value measurements
Fair value measurements | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 and 2016 : Level 1 Level 2 Level 3 Total December 31, 2017 $'000 $'000 $'000 $'000 Assets at fair value: Derivative financial instruments — 1,348 — 1,348 Total assets — 1,348 — 1,348 Liabilities at fair value: Derivative financial instruments — (430 ) — (430 ) Total net assets — 918 — 918 Level 1 Level 2 Level 3 Total December 31, 2016 $'000 $'000 $'000 $'000 Assets at fair value: Derivative financial instruments — — — — Total assets — — — — Liabilities at fair value: Derivative financial instruments — (3,364 ) — (3,364 ) Total net liabilities — (3,364 ) — (3,364 ) During the years ended December 31, 2017 and 2016 , 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, 2017 and 2016 were as follows: December 31, 2017 December 31, 2016 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 3 724,208 728,994 602,083 626,613 See Note 11. (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, 2017 , 2016 and 2015 were as follows: Fair value measurement inputs Fair value Level 1 Level 2 Level 3 Total losses in year ended December 31, 2017 Property, plant and equipment 5,955 — — 5,955 (8,216 ) Fair value measurement inputs Fair value Level 1 Level 2 Level 3 Total losses in year ended December 31, 2016 Property, plant and equipment — — — — (1,007 ) Fair value measurement inputs Fair value Level 1 Level 2 Level 3 Total losses in year ended December 31, 2017 Goodwill — — — — (5,500 ) 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 ) Property, plant and equipment For the year ended December 31, 2017 , property, plant and equipment at Belmond Road to Mandalay and Belmond Northern Belle with a combined carrying value of $14,171,000 was written down to fair value of $5,955,000 , resulting in a non-cash impairment charge of $8,216,000 . For the year ended December 31, 2016, property, plant and equipment at Belmond Orcaella with a carrying amount of $1,007,000 was written down to fair value of $Nil , resulting in a non-cash impairment charge of $1,007,000 . These impairments are included in earnings from continuing operations in the period incurred. See Note 8. Goodwill For the year ended December 31, 2017 , goodwill of Belmond Cap Juluca with a carrying value of $5,500,000 was written down to fair value of $Nil , resulting in a non-cash impairment charge of $5,500,000 . For the year ended December 31, 2015, goodwill of Belmond Jimbaran Puri, Belmond La Résidence Phou Vao and Belmond Northern Belle with a combined carrying value of $5,698,000 was written down to fair value of $Nil , resulting in a non-cash impairment charge of $5,698,000 . Also, 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 . These impairments are included in earnings from continuing operations in the period incurred. See Note 9. |
Derivatives and hedging activit
Derivatives and hedging activities | 12 Months Ended |
Dec. 31, 2017 | |
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. In connection with the Term Loan Facility, the interest rate derivatives associated with the previous term loan facility were terminated. See Note 11. The termination costs incurred were $2,145,000 during the year ended December 31, 2017. All amounts in other comprehensive income/(loss) relating to these derivatives will be amortized to interest expense over the remaining original life of the interest rate derivative under ASC 815 Derivatives and Hedging. New interest rate derivatives were entered into to fix an element of the floating interest rate on the Term Loan Facility. Cash flow hedges of interest rate risk As of December 31, 2017 and 2016 , 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: 2017 2016 December 31, ’000 ’000 Interest rate swaps € 89,500 € 72,938 Interest rate swaps $ 243,000 $ 210,756 Interest rate caps $ 17,200 $ 17,200 Fair value The table below presents the fair value of Belmond’s derivative financial instruments and their classification as of December 31, 2017 and 2016 : Fair value as of Fair value as of December 31, 2017 December 31, 2016 Balance sheet location $’000 $’000 Derivatives designated in a cash flow hedging relationship: Interest rate derivatives Other assets 1,776 — Interest rate derivatives Accrued liabilities (858 ) (2,310 ) Interest rate derivatives Other liabilities — (1,054 ) Total 918 (3,364 ) Offsetting There was no offsetting within derivative assets or derivative liabilities at December 31, 2017 and 2016 . However, derivatives are subject to master netting arrangements. Other comprehensive income/(loss) Information concerning the movements in other comprehensive income/(loss) for cash flow hedges of interest rate risk is shown in Note 23. At December 31, 2017 , the amount accounted for in other comprehensive income/(loss) which is expected to be reclassified to interest expense in the next 12 months is $2,102,000 . Movement in other comprehensive income/(loss) for net investment hedges recorded through foreign currency translation adjustments for the year ended December 31, 2017 was a $2,745,000 loss ( 2016 - $4,975,000 gain; 2015 - $18,221,000 gain). 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, 2017 , the fair value of derivatives in a net asset position, which includes accrued interest and an adjustment for non-performance risk, related to these agreements was $918,000 ( 2016 - $3,364,000 net liability). If Belmond breached any of the provisions, the obligations under the agreements would be settled at termination value of $942,000 inflow ( 2016 - $3,370,000 outflow). 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 $213,350,000 at December 31, 2017 ( 2016 - $153,472,000 ), being a liability of Belmond. |
Accumulated other comprehensive
Accumulated other comprehensive loss | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 and 2016 were as follows: Foreign currency translation adjustments Derivative financial instruments Pension liability Total $’000 $’000 $’000 $’000 Balance at January 1, 2016 (326,070 ) (4,091 ) (9,943 ) (340,104 ) Other comprehensive loss before reclassifications, net of tax benefit of $(809), $(889) and $(530) (10,983 ) (1,942 ) (2,119 ) (15,044 ) Amounts reclassified from AOCI, net of tax provision of $Nil, $1,111 and $Nil — 2,809 — 2,809 Net current period other comprehensive (loss)/income (10,983 ) 867 (2,119 ) (12,235 ) Balance at December 31, 2016 (337,053 ) (3,224 ) (12,062 ) (352,339 ) Other comprehensive income/(loss) before reclassifications, net of tax benefit of $Nil, ($50) and $73 48,095 (121 ) 310 48,284 Amounts reclassified from AOCI, net of tax provision of $Nil, $860 and $Nil 692 2,041 — 2,733 Net current period other comprehensive income 48,787 1,920 310 51,017 Balance at December 31, 2017 (288,266 ) (1,304 ) (11,752 ) (301,322 ) Reclassifications out of AOCI (net of tax) were as follows: Amount reclassified from AOCI December 31, 2017 December 31, 2016 Details about AOCI components $’000 $’000 Affected line item in the statement of operations Foreign currency translation adjustments: Reclassification upon sale of operating unit 692 — (Loss)/gain on disposal of property, plant and equipment and equity method investments Derivative financial instruments: Cash flows from derivative financial instruments related to interest payments made for the hedged debt instrument 2,041 2,809 Interest expense Total reclassifications for the period 2,733 2,809 |
Segment information
Segment information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment information | Segment information Segment performance is evaluated by the chief operating decision maker based upon adjusted earnings before interest, tax, depreciation and amortization ("adjusted EBITDA"). For reporting periods prior to the quarter ended March 31, 2017, the Company disclosed certain disaggregated segment profitability information in its periodic reports in accordance with applicable U.S. GAAP accounting principles, ASC 280 Segment Reporting, in the form of earnings before gains/(losses) on disposal, impairments, central costs, interest income, interest expense, foreign currency, tax (including tax on earnings from unconsolidated companies), depreciation and amortization, share-based compensation and gains/(losses) on extinguishment of debt (“segment profit/(loss)”). This is a measure of unadjusted EBITDA and, consistent with ASC 280, has represented the way management traditionally have evaluated the operating performance of each of the Company’s reportable segments. The format of the segment performance information provided to the chief operating decision maker for these purposes has evolved over time to focus primarily on adjusted EBITDA as the key measure of segment profitability. Adjusted EBITDA excludes gains/(losses) on disposal, impairments, restructuring and other special items, interest income, interest expense, foreign currency, tax (including tax on earnings from unconsolidated companies), depreciation and amortization and gains/(losses) on extinguishment of debt. In order to better reflect management’s internal evaluation of segment performance under ASC 280, as of the quarterly reporting period ended March 31, 2017, Belmond has disclosed adjusted EBITDA in place of segment profit/(loss) as the primary metric used by the chief operating decision maker to evaluate segment performance. In management’s view, adjusted EBITDA allows the Company’s segment performance to be evaluated more effectively and on a consistent basis by removing the impact of certain items that management believes do not reflect the underlying operations. Belmond notes that adjusted EBITDA is not a term defined under GAAP. As a result, Belmond provides reconciliations to the GAAP number immediately following tables using this non-GAAP term. 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; • Owned trains and cruises which derive earnings from the train and cruise businesses that Belmond owns; • Part-owned/managed hotels which derive earnings from hotels that Belmond jointly owns or manages; and • Part-owned/managed trains which derive earnings from the train businesses that Belmond jointly owns or manages. The following tables present information regarding these reportable segments. Belmond revised the order of the presentation of these segments in the year ended December 31, 2016 and included a new sub-total to show management fees earned by the Company. In addition, Belmond reclassified certain expenses associated with the Company’s development team from the Part-owned/managed hotels segment to central costs. Prior periods have been re-presented to reflect the current period presentation. There has not been a material impact on the consolidated financial statements. Revenue from external customers by segment: 2017 2016 2015 Year ended December 31, $’000 $’000 $’000 Owned hotels: Europe 212,379 199,251 200,059 North America 149,284 145,868 148,103 Rest of world 124,219 130,255 124,369 Total owned hotels 485,882 475,374 472,531 Owned trains & cruises 63,193 59,287 65,471 Part-owned/managed hotels 1,036 4,400 5,232 Part-owned/managed trains 10,888 10,763 8,151 Total management fees 11,924 15,163 13,383 Revenue 560,999 549,824 551,385 Reconciliation of consolidated (losses)/earnings from continuing operations to adjusted EBITDA: 2017 2016 2015 Year ended December 31, $’000 $’000 $’000 Adjusted EBITDA Owned hotels: Europe 73,687 67,590 66,349 North America 29,814 29,334 31,788 Rest of world 24,474 33,115 31,295 Total owned hotels 127,975 130,039 129,432 Owned trains and cruises 4,420 4,318 7,199 Part-owned/managed hotels 6,782 6,299 7,115 Part-owned/managed trains 23,988 25,907 19,846 Total adjusted share of earnings from unconsolidated companies and management fees 30,770 32,206 26,961 Unallocated corporate: Central costs (33,324 ) (30,763 ) (34,369 ) Share-based compensation (5,809 ) (7,637 ) (9,752 ) Adjusted EBITDA 124,032 128,163 119,471 Reconciliation from (losses)/earnings from continuing operations to adjusted EBITDA: (Losses)/earnings from continuing operations (45,070 ) 35,401 17,388 Depreciation and amortization 62,852 52,396 50,513 Gain on extinguishment of debt — (1,200 ) — Interest income (1,058 ) (853 ) (926 ) Interest expense 32,455 29,155 32,101 Foreign currency, net 3,034 (9,186 ) 5,016 Provision for income taxes 6,554 16,368 17,041 Share of (benefit from)/provision for income taxes of unconsolidated companies (4,451 ) 5,650 1,466 54,316 127,731 122,599 Restructuring and other special items (1) 11,715 363 7,351 Acquisition-related costs (2) 14,032 — — Loss/(gain) on disposal of property, plant and equipment 153 (938 ) (20,275 ) Impairment of goodwill and property, plant and equipment 13,716 1,007 9,796 Impairment of assets in unconsolidated companies 30,100 — — Adjusted EBITDA 124,032 128,163 119,471 (1) Represents adjustments for insurance deductibles and losses while Belmond Cap Juluca and Belmond La Samanna are closed following the impact of Hurricanes Irma and Jose, restructuring, severance and redundancy costs, pre-opening costs and other items, net. (2) Represents professional fees incurred in preliminary design and planning, structuring, assessment of financing opportunities, legal, tax, accounting and engineering due diligence and the negotiation of the purchase and sale agreements, and other ancillary documents, with the principal owner and leaseholder, together with three owners of villas and separate subleases, as well as a memorandum of understanding and ground lease with the Government of Anguilla. Reconciliation of assets by segment to total assets: 2017 2016 December 31, $’000 $’000 Owned hotels: Europe 575,584 504,758 North America 518,493 468,088 Rest of world 252,861 245,167 Total owned hotels 1,346,938 1,218,013 Owned trains & cruises 87,139 88,069 Part-owned/ managed hotels 21,894 20,007 Part-owned/ managed trains 52,517 68,397 Total part/owned managed 74,411 88,404 Unallocated corporate 145,149 129,582 Total assets 1,653,637 1,524,068 Reconciliation of capital expenditure to acquire property, plant and equipment by segment: 2017 2016 2015 Year ended December 31, $’000 $’000 $’000 Owned hotels: Europe 23,431 11,777 18,648 North America 14,845 9,796 11,881 Rest of world 17,158 19,190 14,168 Total owned hotels 55,434 40,763 44,697 Owned trains & cruises 7,927 12,882 11,415 Unallocated corporate 4,469 1,459 283 Total capital expenditure to acquire property, plant and equipment 67,830 55,104 56,395 Carrying value of investment in equity method investees: 2017 2016 December 31, $’000 $’000 Eastern & Oriental Express 2,642 2,818 Peru hotels 20,869 19,769 PeruRail 38,138 53,652 Buzios 2,893 2,998 Other 102 90 Total investment in equity method investees 64,644 79,327 Earnings from unconsolidated companies, net of tax: 2017 2016 2015 Year ended December 31, $’000 $’000 $’000 Part-owned/managed hotels 1,037 1,112 106 Part-owned/managed trains (11,250 ) 9,901 8,969 Total earnings from unconsolidated companies, net of tax (10,213 ) 11,013 9,075 Revenue from external customers in Belmond's country of domicile and significant countries (based on the location of the property): 2017 2016 2015 Year ended December 31, $’000 $’000 $’000 Bermuda — — — Italy 136,538 128,671 132,385 United Kingdom 56,432 56,016 62,656 United States 112,677 108,238 107,965 Brazil 59,737 73,300 69,142 All other countries 195,615 183,599 179,237 Revenue 560,999 549,824 551,385 Property, plant and equipment at book value in Belmond's country of domicile and significant countries (based on the location of the property): 2017 2016 December 31, $’000 $’000 Bermuda — — Italy 336,263 294,773 United Kingdom 52,311 48,577 United States 334,634 343,342 Brazil 74,944 73,843 All other countries 369,892 314,141 Total property, plant and equipment at book value 1,168,044 1,074,676 |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 , Belmond earned management fees from Eastern and Oriental Express Ltd. of $295,000 ( 2016 - $236,000 ; 2015 - $292,000 ), which are recorded in revenue. The amount due to Belmond from Eastern and Oriental Express Ltd. at December 31, 2017 was $6,302,000 ( 2016 - $4,886,000 ). Belmond manages, under long-term contracts in Peru, Belmond Hotel Monasterio, Belmond Palacio Nazarenas, Belmond Sanctuary Lodge, Belmond Hotel Rio Sagrado, Belmond Las Casitas del Colca, 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, 2017 , Belmond earned management and guarantee fees from its Peruvian joint ventures of $15,154,000 ( 2016 - $14,734,000 ; 2015 - $12,503,000 ) which are recorded in revenue. The amount due to Belmond from its Peruvian joint ventures at December 31, 2017 was $6,029,000 ( 2016 - $6,907,000 ). Belmond owns 50% of a company holding real estate in Buzios, Brazil. The amount due to Belmond from the joint venture at December 31, 2017 was $431,000 ( 2016 - $372,000 ). 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, 2017 , Belmond earned $Nil ( 2016 - $Nil ; 2015 - $328,000 ) in management fees from the Hotel Ritz by Belmond which are recorded in revenue, and $Nil ( 2016 - $Nil ; 2015 - $301,000 ) in interest income. The amount due to Belmond from the Hotel Ritz by Belmond at December 31, 2017 was $Nil ( 2016 - $Nil ). On May 21, 2015, Belmond sold its ownership interest in Hotel Ritz by Belmond. See Note 7. On the April 19, 2016, Belmond completed the sale of the property, plant and equipment relating to the trains and carriages that were formerly operated as the Great South Pacific Express in Queensland, Australia for consideration of $2,362,000 to the Company’s PeruRail joint venture. The carriages were sold at their carrying value and no gain or loss arose on disposal. During 2017, Belmond provided conference and banqueting services in the amount of $219,000 (2016: $ 488,000 ) to Crawford & Co. and GHS Holdings, LLC, companies in which Mr. Harsha Agadi, who is a member of the board of directors of Belmond, is the Chief Executive Officer and President. The amount due to Belmond from Crawford & Co. at December 31, 2017 was $194,000 ( 2016 - $Nil ). |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent events | Subsequent events On February 8, 2018 , Belmond Ltd. announced that through indirect subsidiaries it had acquired the Castello di Casole resort and estate in Tuscany, Italy, for approximately €39,000,000 ( $48,000,000 ). The acquisition was financed using cash on hand. The resort and estate will be rebranded upon the Company assuming management of the property. The resort and estate comprise the 39 -key Castello di Casole hotel, together with 48 residential plots, of which 16 remain for sale, with three subject to non-binding reservation letters of intent to purchase and two expected to be converted into new villas as part of the hotel inventory. Starting in 2018, the Company expects to invest €7,300,000 ( $9,000,000 ) in a phased refurbishment of the hotel over four years , including the addition of two new villas on two residential plots that will be retained, bringing the resort’s total key count to 41 . In addition, the Company expects to sell the remaining 14 land plots, including the three that are subject to reservation letters, over the coming years, effectively reducing the Company's net investment in the estate. The '21' Club sustained water damage in early January 2018, which has resulted in the restaurant's closure until spring 2018. The Company expects that its insurance policy will provide property damage and business interruption loss. The Company intends to reinvest the insurance proceeds at Belmond La Samanna alongside additional capital to restore and improve the asset, but we have concluded that such an investment cannot be justified without a material change in the cost structure of the operation. Consequently, the Company has entered into a formal administrative process with the local labor authorities in order to achieve a material restructuring of the property's workforce. While we cannot give any assurances that this restructuring will be approved by the French authorities, we believe that it is a necessary condition to re-opening Belmond La Samanna. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 Allowance for doubtful accounts 420,000 181,000 33,000 (2) (90,000 ) (1) 544,000 Valuation allowance on deferred tax assets 70,241,000 2,215,000 (23,119,000 ) (3) — 49,337,000 Year ended December 31, 2016 Allowance for doubtful accounts 291,000 109,000 19,000 (2) 1,000 (1) 420,000 Valuation allowance on deferred tax assets 69,928,000 4,876,000 (4,563,000 ) (3) — 70,241,000 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 (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 accoun39
Summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
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 During the year ended December 31, 2017 the Company corrected a prior period misstatement to reclassify an immaterial deferred tax entry related to a change of functional currency at the Company's Brazilian subsidiaries in 2014. As a result, opening Retained Earnings increased by $5,562,000 and opening Accumulated and Other Comprehensive Income decreased by $5,562,000 , with no net change in Total Equity. There is no impact on net earnings, EPS or cash flows in any period presented. |
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 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 sale represents a strategic shift that has or will have a major effect on our operations and financial results following the adoption of new guidance as of January 1, 2015. |
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). Prior to January 1, 2017, if an impairment was indicated, Belmond compared the implied fair value of the reporting unit's goodwill to its carrying amount. An impairment loss was measured as the excess of the carrying value of a reporting unit's goodwill over its implied fair value. On January 1, 2017 Belmond early adopted the new guidance to simplify the accounting for goodwill impairment by removing the requirement to compare the implied fair value of goodwill with its carrying amount as part of step 2 of the goodwill impairment test. A goodwill impairment charge is now measured as the amount by which a reporting unit’s carrying value exceeds its fair value, however the impairment charge is not to exceed the carrying amount of goodwill allocated to that reporting unit. 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 2.2% to 6.5% ( December 31, 2016 - 1.2% to 4.9% ), and pre-tax discount rates which for the year ended December 31, 2017 range from 9.9% to 19.3% ( December 31, 2016 - 7.5% to 16.7% ). 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 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 definite useful lives are tested for impairment 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 10% 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. Prior to December 31, 2016, Belmond did not estimate a future forfeitures rate and did not incorporate it into the grant value on issue of the awards on the grounds of materiality. As of December 31, 2016 Belmond adopted new guidance and made an accounting policy election to allow the recognition of the effects of forfeitures in compensation cost when they occur. |
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, British 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. |
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. All deferred tax assets and liabilities are classified as non-current and are netted according to tax-paying component and jurisdiction. 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 January 2017, the FASB issued new guidance to simplify the accounting for goodwill impairment by removing the requirement to compare the implied fair value of goodwill with its carrying amount as part of step 2 of the goodwill impairment test. A goodwill impairment will now be measured as the amount by which a reporting unit’s carrying value exceeds its fair value, however the loss is not to exceed the carrying amount of goodwill allocated to that reporting unit. The guidance is effective for annual and interim impairment tests for periods beginning after December 15, 2019, with early adoption permitted for any impairment tests performed after January 1, 2017. The new guidance will be applied on a prospective basis. Belmond early adopted the new guidance from January 1, 2017. The adoption of this guidance simplified how Belmond tests the recoverability of goodwill. The new test requires only a single-step quantitative test for all reporting units and reduces the need for independent valuation resources and increases efficiency. The qualitative assessment remains unchanged. See Note 9 for details of the goodwill impairment recorded in the year ended December 31, 2017. 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. In March 2016, the FASB issued additional guidance which amends the principal-versus-agent implementation guidance and illustrations in the original accounting pronouncement. In May 2016, the FASB issued an update that clarified guidance in certain narrow aspects of the topic. 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 annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2017. Early adoption is permitted as of the original effective date in ASU 2014-09 (i.e., annual reporting periods beginning after December 15, 2016, including interim reporting periods within the annual periods). The Company intends to adopt the standard in the annual period beginning January 1, 2018 under the modified retrospective approach with a cumulative effect recognized in equity and no prior period restatement. Belmond's unconsolidated companies intend to adopt the standard in the annual period beginning January 1, 2019, as permitted by the SEC. The analysis identifying areas that will be impacted by the new guidance is complete and has been conducted predominantly through a review of contracts with customers under the new five step model: (1) identify the contract with a customer(s); (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the entity satisfies a performance obligation. The Company completed its assessment and does not expect the standard to materially affect the amount or timing of revenue recognition for rooms, food and beverage and other hotel level sales, which form the majority of the Company’s revenue, nor on management and incentive fees and real estate sales. We are currently evaluating the impact of the adoption of this guidance in the financial statements of our unconsolidated companies. For Ferrocarril Transandino S.A. ("FTSA"), the Company's rail joint venture in Peru which is part of the Company's PeruRail business and that has a concession from the Government of Peru to operate the track network in southern and southeastern Peru, we expect that the new standard will impact the accounting treatment of payments made to the government under the concession. In February 2016, the FASB issued its new standard on accounting for leases, which introduces a lessee model that brings most leases on the balance sheet. Under the new standard, a lessee will recognize on its balance sheet a lease liability and a right-of-use asset for most leases, including operating leases. The new standard will also distinguish leases as either finance leases or operating leases. The guidance is effective for annual periods beginning after December 15, 2018, and interim periods therein, with early adoption permitted. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company intends to adopt the standard in the annual period beginning January 1, 2019. Belmond is currently evaluating the impact of the adoption of this guidance on its consolidated financial statements, but we expect that this standard may have a material effect on our consolidated balance sheet. In August 2016, the FASB issued new guidance which clarifies the classification of certain cash receipts and payments in the statement of cash flows. The guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early adoption permitted. The new guidance will be applied on a retrospective basis where applicable. The Company intends to adopt the standard in the annual period beginning January 1, 2018. Belmond is assessing the impact of the classification rules under the eight types of cash flow identified by the new guidance, in particular those related to debt prepayments or extinguishment, proceeds from insurance settlements, distributions from equity method investees and separately identifiable cash flows. We do not expect the adoption of this guidance to have a material effect on Belmond's consolidated financial statements. In October 2016, the FASB issued new guidance which is intended to simplify the tax consequences of certain types of intra-entity asset transfers. The guidance is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods, with early adoption permitted. The new guidance will be applied on a modified retrospective basis, recognizing the effects in retained earnings as of the beginning of the year of adoption. Belmond is currently evaluating the impact of the adoption of this guidance on its consolidated financial statements. The Company intends to adopt the standard in the annual period beginning January 1, 2018. We do not expect the adoption of this guidance to have a material effect on Belmond's consolidated financial statements. In November 2016, the FASB issued new guidance which clarifies the classification and presentation of restricted cash in the statement of cash flows, including disclosing the nature of restricted cash and restricted cash equivalent balances. The guidance is effective for fiscal years beginning after December 15, 2017, including interim periods therein, with early adoption permitted. The Company intends to adopt the standard in the annual period beginning January 1, 2018. Belmond is currently assessing what impact the adoption of this guidance will have on its consolidated financial statements. As cash, cash equivalents and restricted cash are presented in more than one line item on the balance sheet, a reconciliation of the totals in the statement of cash flows to the related captions in the balance sheet will need to be performed. Belmond is already disclosing the nature of their restricted cash and restricted cash equivalent balances in Note 17. We do not expect the adoption of this guidance to have a material effect on Belmond's consolidated financial statements. In February 2017, the FASB issued new guidance to clarify the scope of the Board's guidance on nonfinancial asset derecognition (ASU 610-20) as well as the accounting for partial sales of nonfinancial assets. The guidance is effective on the same date as the new revenue guidance is adopted, with early adoption permitted. The Company intends to adopt the standard in the annual period beginning January 1, 2018. We do not expect the adoption of this guidance to have a material effect on Belmond's consolidated financial statements. In May 2017, the FASB issued new guidance on service concession arrangements. The guidance is effective on the same date the new revenue guidance is adopted, with early adoption permitted. The Company intends to adopt the standard in the annual period beginning January 1, 2018. We do not expect the adoption of this guidance to have a material effect on Belmond's consolidated financial statements. We expect that the main impact is a reclassification of certain revenue and expenses in our unconsolidated companies, with no material effect on Belmond's share of earnings from unconsolidated companies. In August 2017, the FASB issued new guidance to make improvements to hedge accounting requirements. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods therein, with early adoption permitted. The Company intends to adopt the standard in the annual period beginning January 1, 2019. Belmond is currently assessing what impact the adoption of this guidance will have on its consolidated financial statements. |
Segment reporting | Segment performance is evaluated by the chief operating decision maker based upon adjusted earnings before interest, tax, depreciation and amortization ("adjusted EBITDA"). For reporting periods prior to the quarter ended March 31, 2017, the Company disclosed certain disaggregated segment profitability information in its periodic reports in accordance with applicable U.S. GAAP accounting principles, ASC 280 Segment Reporting, in the form of earnings before gains/(losses) on disposal, impairments, central costs, interest income, interest expense, foreign currency, tax (including tax on earnings from unconsolidated companies), depreciation and amortization, share-based compensation and gains/(losses) on extinguishment of debt (“segment profit/(loss)”). This is a measure of unadjusted EBITDA and, consistent with ASC 280, has represented the way management traditionally have evaluated the operating performance of each of the Company’s reportable segments. The format of the segment performance information provided to the chief operating decision maker for these purposes has evolved over time to focus primarily on adjusted EBITDA as the key measure of segment profitability. Adjusted EBITDA excludes gains/(losses) on disposal, impairments, restructuring and other special items, interest income, interest expense, foreign currency, tax (including tax on earnings from unconsolidated companies), depreciation and amortization and gains/(losses) on extinguishment of debt. In order to better reflect management’s internal evaluation of segment performance under ASC 280, as of the quarterly reporting period ended March 31, 2017, Belmond has disclosed adjusted EBITDA in place of segment profit/(loss) as the primary metric used by the chief operating decision maker to evaluate segment performance. In management’s view, adjusted EBITDA allows the Company’s segment performance to be evaluated more effectively and on a consistent basis by removing the impact of certain items that management believes do not reflect the underlying operations. Belmond notes that adjusted EBITDA is not a term defined under GAAP. As a result, Belmond provides reconciliations to the GAAP number immediately following tables using this non-GAAP term. 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; • Owned trains and cruises which derive earnings from the train and cruise businesses that Belmond owns; • Part-owned/managed hotels which derive earnings from hotels that Belmond jointly owns or manages; and • Part-owned/managed trains which derive earnings from the train businesses that Belmond jointly owns or manages. |
Summary of significant accoun40
Summary of significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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: 2017 2016 December 31, $’000 $’000 Land and buildings 1,126,496 1,010,362 Machinery and equipment 181,670 179,537 Furniture, fixtures and equipment 263,716 235,098 River cruise ship and canal boats 13,900 18,618 1,585,782 1,443,615 Less: Accumulated depreciation (417,738 ) (368,939 ) Total property, plant and equipment, net of accumulated depreciation 1,168,044 1,074,676 |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share, basic and diluted | The calculation of basic and diluted earnings per share including a reconciliation of the numerator and denominator is as follows: Year ended December 31, 2017 2016 2015 Numerator ($'000) Net earnings/(losses) from continuing operations (45,070 ) 35,401 17,388 Net earnings/(losses) from discontinued operations 122 1,032 (1,534 ) Net losses/(earnings) attributable to non-controlling interests (87 ) (109 ) 411 Net earnings/(losses) attributable to Belmond Ltd. (45,035 ) 36,324 16,265 Denominator (shares '000) Basic weighted average shares outstanding 102,169 101,586 103,163 Effect of dilution — 1,369 1,193 Diluted weighted average shares outstanding 102,169 102,955 104,356 $ $ $ Basic earnings per share Net earnings/(losses) from continuing operations (0.441 ) 0.348 0.169 Net earnings/(losses) from discontinued operations 0.001 0.010 (0.015 ) Net losses/(earnings) attributable to non-controlling interests (0.001 ) (0.001 ) 0.004 Net earnings/(losses) attributable to Belmond Ltd. (0.441 ) 0.357 0.158 Diluted earnings per share Net earnings/(losses) from continuing operations (0.441 ) 0.344 0.167 Net earnings/(losses) from discontinued operations 0.001 0.010 (0.015 ) Net losses/(earnings) attributable to non-controlling interests (0.001 ) (0.001 ) 0.004 Net earnings/(losses) attributable to Belmond Ltd. (0.441 ) 0.353 0.156 |
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, 2017 2016 2015 Share options 2,704,707 1,679,817 1,441,972 Share-based awards 1,271,738 — — Total 3,976,445 1,679,817 1,441,972 |
Significant acquisitions (Table
Significant acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The estimated fair values are final and no further adjustments will be made to the identified assets and liabilities. Fair value on May 26, 2017 $'000 Consideration: Agreed cash consideration 70,759 Less: Working capital adjustment (2,107 ) Total purchase price 68,652 Assets acquired and liabilities assumed: Cash and cash equivalents 20 Accounts receivable 112 Prepaid expenses and other 45 Inventories 108 Property, plant and equipment 59,159 Other intangible assets 6,100 Accounts payable (595 ) Accrued liabilities (360 ) Deferred revenue (1,437 ) Goodwill 5,500 Net assets acquired 68,652 |
Business Acquisition, Pro Forma Information | The following table presents information for Belmond Cap Juluca included in the Company’s statements of condensed consolidated operations from the acquisition date to the period ending December 31, 2017 : 2017 $'000 Revenue 2,435 Losses from continuing operations (16,681 ) |
Assets held for sale and disc43
Assets held for sale and discontinued operations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 | Summarized results of the properties classified as discontinued operations for the years ended December 31, 2017 , 2016 and 2015 are as follows: Year ended December 31, 2017 Ubud Hanging Gardens Porto Cupecoy Total $'000 $'000 $'000 Revenue — — — Earnings before tax, gain on sale and impairment 100 22 122 Earnings before tax 100 22 122 Net earnings from discontinued operations 100 22 122 Year ended December 31, 2016 Ubud Hanging Gardens Porto Cupecoy Total $'000 $'000 $'000 Revenue — — — Earnings before tax, gain on sale and impairment 69 963 1,032 Earnings before tax 69 963 1,032 Net earnings from discontinued operations 69 963 1,032 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 ) The following is a summary of net assets sold and the loss recorded on sale for Belmond Northern Belle: Year ended December 31, 2017 Northern Belle November 2, $'000 Property, plant & equipment 3,518 Deferred income taxes (379 ) Net working capital 110 Net assets 3,249 Transfer of foreign currency translation loss 690 3,939 Consideration: Cash 3,300 Less: Working capital adjustment (94 ) Less: Costs to sell (20 ) 3,186 Loss on sale (753 ) |
Variable interest entities (Tab
Variable interest entities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 2017 2016 2017 2016 December 31, $’000 $’000 $’000 $’000 Investment 2,642 2,818 2,642 2,818 Due from unconsolidated company 6,302 4,771 6,302 4,771 Guarantees — — — — Contingent guarantees — — — — Total 8,944 7,589 8,944 7,589 |
Investments in unconsolidated45
Investments in unconsolidated companies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summarized financial data for unconsolidated companies | 2017 2016 2015 Year ended December 31, $’000 $’000 $’000 Revenue 207,659 191,551 160,614 Gross profit (1) 141,708 135,000 104,708 Net earnings (2) (20,778 ) 21,720 17,723 (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. 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: 2017 2016 December 31, $’000 $’000 Current assets 88,119 96,247 Property, plant and equipment, net of accumulated depreciation 228,970 213,958 Other non-current assets 55,605 111,146 Non-current assets 284,575 325,104 Total assets 372,694 421,351 Current liabilities, including $24,793 and $21,021 current portion of third-party debt 101,668 89,785 Long-term debt 143,187 153,876 Other non-current liabilities 7,892 27,545 Non-current liabilities 151,079 181,421 Total shareholders’ equity 119,947 150,145 Total liabilities and shareholders’ equity 372,694 421,351 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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: 2017 2016 December 31, $’000 $’000 Land and buildings 1,126,496 1,010,362 Machinery and equipment 181,670 179,537 Furniture, fixtures and equipment 263,716 235,098 River cruise ship and canal boats 13,900 18,618 1,585,782 1,443,615 Less: Accumulated depreciation (417,738 ) (368,939 ) Total property, plant and equipment, net of accumulated depreciation 1,168,044 1,074,676 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 and 2016 are as follows: Beginning balance at January 1, 2017 Ending balance at December 31, 2017 Gross goodwill amount Accumulated impairment Net goodwill amount Goodwill on acquisition Impairment Foreign currency translation adjustment Gross goodwill amount Accumulated impairment Net goodwill amount Year ended December 31, 2017 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Owned hotels: Europe 64,459 (14,202 ) 50,257 — — 6,201 70,660 (14,202 ) 56,458 North America 66,101 (16,110 ) 49,991 5,500 (5,500 ) — 71,601 (21,610 ) 49,991 Rest of world 20,581 (13,149 ) 7,432 — — (51 ) 20,530 (13,149 ) 7,381 Owned trains and cruises 6,325 (662 ) 5,663 — — 727 7,052 (662 ) 6,390 Total 157,466 (44,123 ) 113,343 5,500 (5,500 ) 6,877 169,843 (49,623 ) 120,220 Beginning balance at January 1, 2016 Ending balance at December 31, 2016 Gross goodwill amount Accumulated impairment Net goodwill amount Goodwill on acquisition Impairment Foreign currency translation adjustment Gross goodwill amount Accumulated impairment Net goodwill amount Year ended December 31, 2016 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Owned hotels: Europe 64,263 (14,202 ) 50,061 — — 196 64,459 (14,202 ) 50,257 North America 66,101 (16,110 ) 49,991 — — — 66,101 (16,110 ) 49,991 Rest of world 19,975 (13,149 ) 6,826 — — 606 20,581 (13,149 ) 7,432 Owned trains and cruises 7,780 (662 ) 7,118 — — (1,455 ) 6,325 (662 ) 5,663 Total 158,119 (44,123 ) 113,996 — — (653 ) 157,466 (44,123 ) 113,343 |
Other intangible assets (Tables
Other intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of finite-lived intangible assets | Other intangible assets consist of the following as of December 31, 2017 and 2016 : Favorable lease assets Internet sites Trade names Total $'000 $'000 $'000 $'000 Carrying amount: Balance at January 1, 2016 8,493 1,791 7,100 17,384 Additions — 177 — 177 Foreign currency translation adjustment 8 (310 ) 479 177 Balance at December 31, 2016 8,501 1,658 7,579 17,738 Additions — — 6,100 6,100 Disposals — (247 ) — (247 ) Foreign currency translation adjustment 59 168 322 549 Balance at December 31, 2017 8,560 1,579 14,001 24,140 Accumulated amortization: Balance at January 1, 2016 2,273 1,260 3,533 Charge for the year 373 188 561 Foreign currency translation adjustment (10 ) (223 ) (233 ) Balance at December 31, 2016 2,636 1,225 3,861 Charge for the year 434 166 600 Disposals — (247 ) (247 ) Foreign currency translation adjustment 22 126 148 Balance at December 31, 2017 3,092 1,270 4,362 Net book value: December 31, 2015 6,220 531 7,100 13,851 December 31, 2016 5,865 433 7,579 13,877 December 31, 2017 5,468 309 14,001 19,778 |
Debt and obligations under ca49
Debt and obligations under capital lease (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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: 2017 2016 December 31, $’000 $’000 Loans from banks and other parties collateralized by tangible and intangible personal property and real estate with a maturity of 20 months to seven years (2016 - two to five years), with a weighted average interest rate of 4.11% (2016 - 4.27%) 724,208 602,083 Obligations under capital lease 22 19 Total long-term debt and obligations under capital leases 724,230 602,102 Less: Current portion 6,407 5,284 Less: Discount on secured term loan 3,092 1,515 Less: Debt issuance costs 13,979 9,535 Non-current portion of long-term debt and obligations under capital lease 700,752 585,768 |
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, 2017 : Year ended December 31, $’000 2018 6,407 2019 118,428 2020 6,428 2021 6,193 2022 6,144 2023 6,144 2024 and thereafter 574,486 Total long-term debt and obligations under capital lease 724,230 |
Other liabilities (Tables)
Other liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of major balances in other liabilities | The major balances in other liabilities are as follows: 2017 2016 December 31, $’000 $’000 Interest rate swaps (see Note 22) — 1,054 Long-term income tax liability 2,143 — Deferred gain on sale of Inn at Perry Cabin by Belmond 750 1,350 Deferred lease incentive 130 162 Tax indemnity provision on extinguishment of debt (see Note 11) — 2,800 Total other liabilities 3,023 5,366 |
Pensions (Tables)
Pensions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [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: 2017 2016 2015 Year ended December 31, % % % Discount rate 2.70 3.85 3.70 Expected long-term rate of return on plan assets 3.87 4.90 4.10 The significant weighted-average assumptions used to determine benefit obligations of the plan at year end were as follows: 2017 2016 December 31, % % Discount rate 2.50 2.70 |
Schedule of fair value of plan assets | The fair value of Belmond’s pension plan assets at December 31, 2017 and 2016 by asset category is as follows: Total Level 1 Level 2 Level 3 December 31, 2017 $’000 $’000 $’000 $’000 Cash 1,908 1,908 — — Equity securities: U.K. managed funds 4,529 4,529 — — Overseas managed funds 8,486 8,486 — — Fixed income securities: U.K. government bonds 3,058 3,058 — — Corporate bonds 3,437 3,437 — — Other types of investments: Quoted hedge funds 4,635 4,635 — — Annuities 2,179 — — 2,179 28,232 26,053 — 2,179 Total Level 1 Level 2 Level 3 December 31, 2016 $’000 $’000 $’000 $’000 Cash 2,840 2,840 — — Equity securities: U.K. managed funds 4,461 4,461 — — Overseas managed funds 5,667 5,667 — — Fixed income securities: U.K. government bonds 2,774 2,774 — — Corporate bonds 2,004 2,004 — — Other types of investments: Quoted hedge funds 4,330 4,330 — — Annuities 1,942 — — 1,942 24,018 22,076 — 1,942 |
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, 2017 and 2016 are as follows: Annuities Year ended December 31, 2017 $’000 Beginning balance at January 1, 2017 1,942 Foreign exchange 190 Actual return on plan assets: Assets still held at the reporting date 120 Purchases, sales and settlements, net (73 ) Ending balance at December 31, 2017 2,179 Annuities Year ended December 31, 2016 $’000 Beginning balance at January 1, 2016 2,026 Foreign exchange (342 ) Actual return on plan assets: Assets still held at the reporting date 321 Purchases, sales and settlements, net (63 ) Ending balance at December 31, 2016 1,942 |
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: 2017 2016 2015 Year ended December 31, $’000 $’000 $’000 Change in benefit obligation: Benefit obligation at beginning of year 25,465 24,556 27,353 Interest cost 713 861 984 Actuarial loss/(gain) 663 5,259 (702 ) Benefits paid (485 ) (529 ) (1,723 ) Foreign currency translation 2,526 (4,682 ) (1,356 ) Benefit obligation at end of year 28,882 25,465 24,556 Change in plan assets: Fair value of plan assets at beginning of year 24,018 24,202 24,968 Actual return on plan assets 1,264 3,116 309 Employer contributions 1,009 1,730 1,946 Benefits paid (485 ) (529 ) (1,723 ) Foreign currency translation 2,426 (4,501 ) (1,298 ) Fair value of plan assets at end of year 28,232 24,018 24,202 Funded status at end of year (650 ) (1,447 ) (354 ) Net actuarial (gain)/loss recognized in other comprehensive loss (383 ) 2,649 (727 ) |
Schedule of amounts recognized in the consolidated balance sheets | Amounts recognized in the consolidated balance sheets consist of the following: 2017 2016 December 31, $’000 $’000 Non-current liabilities 650 1,447 |
Schedule of amounts recognized in other comprehensive income/(loss) | Amounts recognized in accumulated other comprehensive loss gross of tax consist of the following: 2017 2016 December 31, $’000 $’000 Net loss (12,200 ) (12,583 ) Prior service cost — — Net transitional obligation — — Total amount recognized in accumulated other comprehensive loss (12,200 ) (12,583 ) |
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: 2017 2016 Year ended December 31, $’000 $’000 Projected benefit obligation 28,882 25,465 Accumulated benefit obligation 28,882 25,465 Fair value of plan assets 28,232 24,018 |
Schedule of components of net periodic pension benefit cost | Components of net periodic benefit cost are as follows: 2017 2016 2015 Year ended December 31, $’000 $’000 $’000 Service cost — — — Interest cost on projected benefit obligation 713 861 984 Expected return on assets (997 ) (1,121 ) (1,034 ) Net amortization and deferrals 780 615 750 Net periodic benefit cost 496 355 700 |
Schedule of future benefit payments | The following benefit payments, which reflect assumed future service, are expected to be paid: Year ended December 31, $’000 2018 483 2019 668 2020 536 2021 689 2022 583 Next five years 5,112 |
Schedule of contributions to defined contribution pension plans | Total contributions to the plans were as follows: 2017 2016 2015 Year ended December 31, $’000 $’000 $’000 Employers’ contributions 2,030 2,052 2,199 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 Pre-tax Current Deferred Total UK (18,518 ) 1,671 (372 ) 1,299 Bermuda (34,873 ) — — — United States (1,850 ) 3,332 (12,987 ) (9,655 ) Brazil 2,193 2,322 (804 ) 1,518 Italy 20,265 5,359 972 6,331 Peru 14,367 4,712 248 4,960 Rest of the world (9,887 ) 2,800 (699 ) 2,101 (28,303 ) 20,196 (13,642 ) 6,554 Provision for income taxes Year ended December 31, 2016 Pre-tax Current Deferred Total UK (6,702 ) 949 (444 ) 505 Bermuda 160 — — — United States 2,681 (1,510 ) (1,978 ) (3,488 ) Brazil 15,303 5,498 (121 ) 5,377 Italy 19,971 4,468 1,998 6,466 Peru 13,965 4,261 1,625 5,886 Rest of the world (4,622 ) 3,007 (1,385 ) 1,622 40,756 16,673 (305 ) 16,368 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 |
Schedule of reconciliation of provision for income taxes | The reconciliation of (losses)/earnings 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: 2017 2016 2015 Year ended December 31, $'000 $'000 $'000 (Losses)/earnings before provision for income taxes and earnings from unconsolidated companies, net of tax (28,303 ) 40,756 25,354 Tax (benefit)/charge at statutory tax rate of 19.25%, 20% and 15% (1) (5,448 ) 8,151 3,803 Exchange rate movements on deferred tax 2,400 (1,785 ) (1,912 ) Notional interest deductions (960 ) (1,812 ) (1,867 ) Imputed cross border charges 763 995 716 Disallowable goodwill impairment charges — — 2,198 Other permanent disallowable expenditure 3,664 483 5,762 Unrecognized tax loss generated on disposal of Hotel Ritz by Belmond — — (16,029 ) Change in valuation allowance 2,215 4,876 16,320 Difference in taxation rates 13,874 9,509 12,948 Adjustment to deferred tax for VIE 7,263 — — Change in provisions for uncertain tax positions 160 (3,350 ) 279 Change in tax rates (19,807 ) (643 ) (5,121 ) Transition tax in U.S. 2,330 — — Other 100 (56 ) (56 ) Provision for income taxes 6,554 16,368 17,041 (1) The Company migrated its tax residence to the United Kingdom on April 1, 2015, which has a statutory tax rate of 19.25% for the year ended December 31, 2017 (2016: 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 for the year ended December 31, 2015. |
Schedule of net deferred tax liabilities | The following summarizes Belmond’s net deferred tax assets and liabilities: 2017 2016 2015 Year ended December 31, $’000 $’000 $’000 Operating loss carry-forwards 58,185 82,292 89,513 Pensions 95 255 63 Share-based compensation 703 3,617 2,978 Other 8,184 8,283 8,952 Less: Valuation allowance (49,337 ) (70,241 ) (69,928 ) Net deferred tax assets 17,830 24,206 31,578 Other (4,817 ) (5,032 ) (7,427 ) Property, plant and equipment (128,206 ) (141,231 ) (147,265 ) Deferred tax liabilities (133,023 ) (146,263 ) (154,692 ) Net deferred tax liabilities (115,193 ) (122,057 ) (123,114 ) |
Schedule of unrecognized tax benefits | At December 31, 2016 , the total amounts of unrecognized tax benefits included the following: Total Principal Interest Penalties Year ended December 31, 2016 $’000 $’000 $’000 $’000 Balance at January 1, 2016 3,678 2,967 656 55 Additional uncertain tax provision identified during the year 78 61 4 13 Increase to uncertain tax provision on prior year positions 4 — 4 — Uncertain tax provisions settled during the year (3,308 ) (2,668 ) (640 ) — Decreases as a result of expiration of the statute of limitations (124 ) (104 ) (2 ) (18 ) Foreign exchange (10 ) (7 ) (1 ) (2 ) Balance at December 31, 2016 318 249 21 48 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 — Decreases as a result of expiration of the statute of limitations (35 ) (30 ) (2 ) (3 ) Foreign exchange (38 ) (31 ) (1 ) (6 ) Balance, December 31, 2015 3,678 2,967 656 55 At December 31, 2017 , the total amounts of unrecognized tax benefits included the following: Total Principal Interest Penalties Year ended December 31, 2017 $’000 $’000 $’000 $’000 Balance, January 1, 2017 318 249 21 48 Additional uncertain tax provision identified during the year 215 197 1 17 Increase to uncertain tax provision on prior year positions 27 17 7 3 Uncertain tax provisions settled during the year — — — — Decreases as a result of expiration of the statute of limitations (82 ) (69 ) (3 ) (10 ) Foreign exchange 54 44 — 10 Balance at December 31, 2017 532 438 26 68 |
Interest expense (Tables)
Interest expense (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | |
Balances in interest expense | The balances in interest expense are as follows: 2017 2016 2015 Year ended December 31, $’000 $’000 $’000 Interest expense on long-term debt and obligations under capital lease 29,425 27,090 27,380 Withholding tax provision classified as interest — — (1,476 ) Interest on legal settlements (28 ) (979 ) 3,294 Amortization of debt issuance costs and discount on secured term loan 3,682 3,044 2,903 Interest capitalized (624 ) — — Total interest expense 32,455 29,155 32,101 |
Supplemental cash flow inform54
Supplemental cash flow information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of supplemental cash flow information | 2017 2016 2015 Year ended December 31, $’000 $’000 $’000 Cash paid during the period for: Interest 30,329 40,930 27,828 Income taxes, net of refunds 19,838 19,804 18,306 |
Restricted cash (Tables)
Restricted cash (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of major balances in restricted cash | The major balances in restricted cash are as follows: 2017 2016 December 31, $’000 $’000 Cash deposits required to be held with lending banks as collateral 801 755 Prepaid customer deposits which will be released to Belmond under its revenue recognition policy 2,488 1,341 Bonds and guarantees 633 489 Total restricted cash 3,922 2,585 |
Share-based compensation plans
Share-based compensation plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Share-based compensation plans | |
Awards made under the 2009 plan | During 2017 , the following awards were made under the 2009 share award and incentive plan on the following dates. Estimates of fair values of share options and deferred shares with and without performance criteria 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 104,425 December 9, 2017 December 9, 2018 $12.25 27% 1.92% $— 2.5 years Share options 104,425 December 9, 2017 December 9, 2019 $12.25 27% 1.92% $— 3.5 years Share options 104,425 December 9, 2017 December 9, 2020 $12.25 28% 2.14% $— 4.5 years Share options 104,425 December 9, 2017 December 9, 2021 $12.25 31% 2.14% $— 5.5 years Share options 40,900 June 11, 2017 June 11, 2018 $13.45 29% 1.50% $— 2.5 years Share options 40,900 June 11, 2017 June 11, 2019 $13.45 29% 1.50% $— 3.5 years Share options 40,900 June 11, 2017 June 11, 2020 $13.45 30% 1.77% $— 4.5 years Share options 40,900 June 11, 2017 June 11, 2021 $13.45 34% 1.77% $— 5.5 years During the year ended December 31, 2017 , 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 56,390 June 11, 2017 June 11, 2018 $0.01 Restricted shares without performance criteria 48,872 June 11, 2017 June 11, 2020 $0.01 Restricted shares without performance criteria 11,278 June 11, 2017 On retirement $0.01 Restricted shares without performance criteria 34,450 March 17, 2017 March 17, 2018 $0.01 Restricted shares without performance criteria 34,450 March 17, 2017 March 17, 2019 $0.01 Restricted shares without performance criteria 117,231 March 17, 2017 March 17, 2020 $0.01 Restricted shares without performance criteria 34,450 March 17, 2017 March 17, 2021 $0.01 Restricted shares with performance criteria 228,500 March 17, 2017 March 17, 2020 $0.01 |
Class A common shares | Share options | 2004 stock option plans | |
Share-based compensation plans | |
Schedule of share option transactions during the period | Details of share option transactions under the 2004 stock option plan are as follows: Number of shares Weighted average Weighted average Aggregate intrinsic Outstanding — January 1, 2016 85,650 36.30 Exercised (2,548 ) 5.89 Forfeited, canceled or expired (16,752 ) 27.75 Outstanding — December 31, 2016 66,350 39.63 Exercised (3,907 ) 5.89 Forfeited, canceled or expired (47,143 ) 47.90 Outstanding — December 31, 2017 15,300 15.99 0.7 54 Exercisable — December 31, 2017 15,300 15.99 0.7 54 |
Schedule of options outstanding | The options outstanding under the 2004 plans at December 31, 2017 were as follows: Exercise Outstanding at Exercisable at Remaining Exercise prices Exercise prices 5.89 8,500 8,500 0.9 5.89 5.89 35.85 2,600 2,600 0.7 35.85 35.85 46.08 2,200 2,200 0.4 46.08 46.08 51.90 2,000 2,000 0.2 51.90 51.90 15,300 15,300 |
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, 2016 2,702,957 10.97 Granted 518,300 11.61 Exercised (59,833 ) 9.35 Forfeited, canceled or expired (516,935 ) 10.77 Outstanding — December 31, 2016 2,644,489 11.17 Granted 581,300 12.59 Exercised (107,552 ) 8.76 Forfeited, canceled or expired (428,830 ) 11.22 Outstanding — December 31, 2017 2,689,407 10.75 7.3 2,940 Exercisable — December 31, 2017 1,516,388 11.34 6.0 2,087 |
Schedule of options outstanding | The options outstanding under the 2009 plan at December 31, 2017 were as follows: Exercise Outstanding at Exercisable at Remaining Exercise prices Exercise prices 8.91 24,800 24,800 1.9 8.91 8.91 8.37 13,600 13,600 2.4 8.37 8.37 11.44 54,650 54,650 2.9 11.44 11.44 11.69 44,600 44,600 3.4 11.69 11.69 8.06 132,250 132,250 3.9 8.06 8.06 9.95 31,700 31,700 4.2 9.95 9.95 8.42 50,600 50,600 4.4 8.42 8.42 11.32 152,050 152,050 4.9 11.32 11.32 9.95 31,700 31,700 5.1 9.95 9.95 11.74 82,800 82,800 5.4 11.74 11.74 14.51 184,450 184,450 6.0 14.51 14.51 14.08 97,100 97,100 6.5 14.08 14.08 11.57 251,083 251,083 7.0 11.57 11.57 12.50 79,000 39,650 7.5 12.50 12.50 13.75 96,165 48,083 7.7 13.75 13.75 8.98 332,709 163,493 7.9 8.98 8.98 9.64 152,900 38,225 8.5 9.64 9.64 12.75 301,450 75,554 8.9 12.75 12.75 13.45 159,100 — 9.5 13.45 — 12.25 416,700 — 10.0 12.25 — 2,689,407 1,516,388 |
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, 2017 2016 2015 Expected share price volatility 27% - 34% 29% - 40% 28% - 58% Risk-free interest rate 1.50% - 2.14% 0.76% - 1.84% 0.65% - 1.83% Expected annual dividends per share $— $— $— Expected life of share options 2.5 - 5.5 years 2.5 - 5.5 years 2.5 - 6.9 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, 2016 1,162,187 0.01 Granted 624,261 0.01 Vested and issued (331,299 ) 0.01 Forfeited, canceled or expired (261,374 ) 0.01 Outstanding — December 31, 2016 1,193,775 0.01 Granted 565,621 0.01 Vested and issued (334,958 ) 0.01 Forfeited, canceled or expired (152,700 ) 0.01 Outstanding — December 31, 2017 1,271,738 0.01 15,566 |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 2018 12,072 2019 10,879 2020 10,919 2021 11,422 2022 9,283 2023 and thereafter 141,832 196,407 |
Fair value measurements (Tables
Fair value measurements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 and 2016 : Level 1 Level 2 Level 3 Total December 31, 2017 $'000 $'000 $'000 $'000 Assets at fair value: Derivative financial instruments — 1,348 — 1,348 Total assets — 1,348 — 1,348 Liabilities at fair value: Derivative financial instruments — (430 ) — (430 ) Total net assets — 918 — 918 Level 1 Level 2 Level 3 Total December 31, 2016 $'000 $'000 $'000 $'000 Assets at fair value: Derivative financial instruments — — — — Total assets — — — — Liabilities at fair value: Derivative financial instruments — (3,364 ) — (3,364 ) Total net liabilities — (3,364 ) — (3,364 ) |
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, 2017 and 2016 were as follows: December 31, 2017 December 31, 2016 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 3 724,208 728,994 602,083 626,613 |
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, 2017 , 2016 and 2015 were as follows: Fair value measurement inputs Fair value Level 1 Level 2 Level 3 Total losses in year ended December 31, 2017 Property, plant and equipment 5,955 — — 5,955 (8,216 ) Fair value measurement inputs Fair value Level 1 Level 2 Level 3 Total losses in year ended December 31, 2016 Property, plant and equipment — — — — (1,007 ) Fair value measurement inputs Fair value Level 1 Level 2 Level 3 Total losses in year ended December 31, 2017 Goodwill — — — — (5,500 ) 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 ) |
Derivatives and hedging activ59
Derivatives and hedging activities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 and 2016 , 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: 2017 2016 December 31, ’000 ’000 Interest rate swaps € 89,500 € 72,938 Interest rate swaps $ 243,000 $ 210,756 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, 2017 and 2016 : Fair value as of Fair value as of December 31, 2017 December 31, 2016 Balance sheet location $’000 $’000 Derivatives designated in a cash flow hedging relationship: Interest rate derivatives Other assets 1,776 — Interest rate derivatives Accrued liabilities (858 ) (2,310 ) Interest rate derivatives Other liabilities — (1,054 ) Total 918 (3,364 ) |
Accumulated other comprehensi60
Accumulated other comprehensive loss (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 and 2016 were as follows: Foreign currency translation adjustments Derivative financial instruments Pension liability Total $’000 $’000 $’000 $’000 Balance at January 1, 2016 (326,070 ) (4,091 ) (9,943 ) (340,104 ) Other comprehensive loss before reclassifications, net of tax benefit of $(809), $(889) and $(530) (10,983 ) (1,942 ) (2,119 ) (15,044 ) Amounts reclassified from AOCI, net of tax provision of $Nil, $1,111 and $Nil — 2,809 — 2,809 Net current period other comprehensive (loss)/income (10,983 ) 867 (2,119 ) (12,235 ) Balance at December 31, 2016 (337,053 ) (3,224 ) (12,062 ) (352,339 ) Other comprehensive income/(loss) before reclassifications, net of tax benefit of $Nil, ($50) and $73 48,095 (121 ) 310 48,284 Amounts reclassified from AOCI, net of tax provision of $Nil, $860 and $Nil 692 2,041 — 2,733 Net current period other comprehensive income 48,787 1,920 310 51,017 Balance at December 31, 2017 (288,266 ) (1,304 ) (11,752 ) (301,322 ) |
Schedule of reclassifications out of AOCI | Reclassifications out of AOCI (net of tax) were as follows: Amount reclassified from AOCI December 31, 2017 December 31, 2016 Details about AOCI components $’000 $’000 Affected line item in the statement of operations Foreign currency translation adjustments: Reclassification upon sale of operating unit 692 — (Loss)/gain on disposal of property, plant and equipment and equity method investments Derivative financial instruments: Cash flows from derivative financial instruments related to interest payments made for the hedged debt instrument 2,041 2,809 Interest expense Total reclassifications for the period 2,733 2,809 |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of revenues from external customers by segment | Revenue from external customers by segment: 2017 2016 2015 Year ended December 31, $’000 $’000 $’000 Owned hotels: Europe 212,379 199,251 200,059 North America 149,284 145,868 148,103 Rest of world 124,219 130,255 124,369 Total owned hotels 485,882 475,374 472,531 Owned trains & cruises 63,193 59,287 65,471 Part-owned/managed hotels 1,036 4,400 5,232 Part-owned/managed trains 10,888 10,763 8,151 Total management fees 11,924 15,163 13,383 Revenue 560,999 549,824 551,385 |
Schedule of reconciliation of the total of segment profit to consolidated net earnings (losses) from operations | Reconciliation of consolidated (losses)/earnings from continuing operations to adjusted EBITDA: 2017 2016 2015 Year ended December 31, $’000 $’000 $’000 Adjusted EBITDA Owned hotels: Europe 73,687 67,590 66,349 North America 29,814 29,334 31,788 Rest of world 24,474 33,115 31,295 Total owned hotels 127,975 130,039 129,432 Owned trains and cruises 4,420 4,318 7,199 Part-owned/managed hotels 6,782 6,299 7,115 Part-owned/managed trains 23,988 25,907 19,846 Total adjusted share of earnings from unconsolidated companies and management fees 30,770 32,206 26,961 Unallocated corporate: Central costs (33,324 ) (30,763 ) (34,369 ) Share-based compensation (5,809 ) (7,637 ) (9,752 ) Adjusted EBITDA 124,032 128,163 119,471 Reconciliation from (losses)/earnings from continuing operations to adjusted EBITDA: (Losses)/earnings from continuing operations (45,070 ) 35,401 17,388 Depreciation and amortization 62,852 52,396 50,513 Gain on extinguishment of debt — (1,200 ) — Interest income (1,058 ) (853 ) (926 ) Interest expense 32,455 29,155 32,101 Foreign currency, net 3,034 (9,186 ) 5,016 Provision for income taxes 6,554 16,368 17,041 Share of (benefit from)/provision for income taxes of unconsolidated companies (4,451 ) 5,650 1,466 54,316 127,731 122,599 Restructuring and other special items (1) 11,715 363 7,351 Acquisition-related costs (2) 14,032 — — Loss/(gain) on disposal of property, plant and equipment 153 (938 ) (20,275 ) Impairment of goodwill and property, plant and equipment 13,716 1,007 9,796 Impairment of assets in unconsolidated companies 30,100 — — Adjusted EBITDA 124,032 128,163 119,471 (1) Represents adjustments for insurance deductibles and losses while Belmond Cap Juluca and Belmond La Samanna are closed following the impact of Hurricanes Irma and Jose, restructuring, severance and redundancy costs, pre-opening costs and other items, net. (2) Represents professional fees incurred in preliminary design and planning, structuring, assessment of financing opportunities, legal, tax, accounting and engineering due diligence and the negotiation of the purchase and sale agreements, and other ancillary documents, with the principal owner and leaseholder, together with three owners of villas and separate subleases, as well as a memorandum of understanding and ground lease with the Government of Anguilla. |
Schedule of reconciliation of assets by segment to total assets | Reconciliation of assets by segment to total assets: 2017 2016 December 31, $’000 $’000 Owned hotels: Europe 575,584 504,758 North America 518,493 468,088 Rest of world 252,861 245,167 Total owned hotels 1,346,938 1,218,013 Owned trains & cruises 87,139 88,069 Part-owned/ managed hotels 21,894 20,007 Part-owned/ managed trains 52,517 68,397 Total part/owned managed 74,411 88,404 Unallocated corporate 145,149 129,582 Total assets 1,653,637 1,524,068 |
Schedule of reconciliation of other significant items by segment to consolidated | Reconciliation of capital expenditure to acquire property, plant and equipment by segment: 2017 2016 2015 Year ended December 31, $’000 $’000 $’000 Owned hotels: Europe 23,431 11,777 18,648 North America 14,845 9,796 11,881 Rest of world 17,158 19,190 14,168 Total owned hotels 55,434 40,763 44,697 Owned trains & cruises 7,927 12,882 11,415 Unallocated corporate 4,469 1,459 283 Total capital expenditure to acquire property, plant and equipment 67,830 55,104 56,395 Earnings from unconsolidated companies, net of tax: 2017 2016 2015 Year ended December 31, $’000 $’000 $’000 Part-owned/managed hotels 1,037 1,112 106 Part-owned/managed trains (11,250 ) 9,901 8,969 Total earnings from unconsolidated companies, net of tax (10,213 ) 11,013 9,075 Carrying value of investment in equity method investees: 2017 2016 December 31, $’000 $’000 Eastern & Oriental Express 2,642 2,818 Peru hotels 20,869 19,769 PeruRail 38,138 53,652 Buzios 2,893 2,998 Other 102 90 Total investment in equity method investees 64,644 79,327 |
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): 2017 2016 2015 Year ended December 31, $’000 $’000 $’000 Bermuda — — — Italy 136,538 128,671 132,385 United Kingdom 56,432 56,016 62,656 United States 112,677 108,238 107,965 Brazil 59,737 73,300 69,142 All other countries 195,615 183,599 179,237 Revenue 560,999 549,824 551,385 Property, plant and equipment at book value in Belmond's country of domicile and significant countries (based on the location of the property): 2017 2016 December 31, $’000 $’000 Bermuda — — Italy 336,263 294,773 United Kingdom 52,311 48,577 United States 334,634 343,342 Brazil 74,944 73,843 All other countries 369,892 314,141 Total property, plant and equipment at book value 1,168,044 1,074,676 |
Basis of financial statement 62
Basis of financial statement presentation (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($)hoteltraincanalboatrestaurantship | Feb. 08, 2018hotel | |
Number of hotels and resort properties | hotel | 36 | |
Number of restaurants | restaurant | 1 | |
Number of tourist trains | train | 7 | |
Number of river cruise businesses | ship | 1 | |
Number of canal boat businesses | canalboat | 1 | |
Retained earnings | ||
Correction of prior period misstatement | $ | $ 5,562 | |
Accumulated other comprehensive income/(loss) | ||
Correction of prior period misstatement | $ | $ (5,562) | |
Subsequent Event | Castello di Casole | ||
Number of hotels and resort properties | hotel | 1 |
Summary of significant accoun63
Summary of significant accounting policies - Property, plant and equipment (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Buildings | |
Property, plant and equipment | |
Residual value, percentage | 10.00% |
Buildings | Maximum | |
Property, plant and equipment | |
Useful life (in years) | 60 years |
Trains | Maximum | |
Property, plant and equipment | |
Useful life (in years) | 75 years |
River cruise ship and canal boats | |
Property, plant and equipment | |
Useful life (in years) | 25 years |
Furniture, fixtures and equipment | Maximum | |
Property, plant and equipment | |
Useful life (in years) | 25 years |
Furniture, fixtures and equipment | Minimum | |
Property, plant and equipment | |
Useful life (in years) | 3 years |
Summary of significant accoun64
Summary of significant accounting policies - Investments (Details) | Dec. 31, 2017 |
Minimum | |
Schedule of Equity Method Investments | |
Ownership percentage | 20.00% |
Maximum | |
Schedule of Equity Method Investments | |
Ownership percentage | 50.00% |
Summary of significant accoun65
Summary of significant accounting policies - Goodwill (Details) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
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 | 2.20% | 1.20% |
Discount rate, pre-tax, used in goodwill impairment analysis | 9.90% | 7.50% |
Maximum | ||
Goodwill | ||
Terminal growth rate assumed in goodwill impairment analysis | 6.50% | 4.90% |
Discount rate, pre-tax, used in goodwill impairment analysis | 19.30% | 16.70% |
Summary of significant accoun66
Summary of significant accounting policies - Other intangible assets (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Minimum | Favorable lease intangible assets | |
Finite-Lived Intangible Assets | |
Amortization period (in years) | 19 years |
Minimum | Internet sites | |
Finite-Lived Intangible Assets | |
Amortization period (in years) | 5 years |
Maximum | Favorable lease intangible assets | |
Finite-Lived Intangible Assets | |
Amortization period (in years) | 60 years |
Maximum | Internet sites | |
Finite-Lived Intangible Assets | |
Amortization period (in years) | 10 years |
Summary of significant accoun67
Summary of significant accounting policies - Additional Disclosures (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)property | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Accounting Policies [Abstract] | |||
Credit value adjustment, percentage of fair value of derivatives for Level 3 classification greater than | 10.00% | ||
Marketing costs | $ | $ 41,590 | $ 38,361 | $ 40,381 |
Number of properties in Mexico for which local currency is not applicable | property | 1 |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Numerator | |||
Net earnings/(losses) from continuing operations | $ (45,070) | $ 35,401 | $ 17,388 |
Net earnings/(losses) from discontinued operations | 122 | 1,032 | (1,534) |
Net losses/(earnings) attributable to non-controlling interests | (87) | (109) | 411 |
Net (losses)/earnings attributable to Belmond Ltd. | $ (45,035) | $ 36,324 | $ 16,265 |
Denominator (shares) | |||
Basic weighted average shares outstanding (in shares) | 102,169 | 101,586 | 103,163 |
Effect of dilution (in shares) | 0 | 1,369 | 1,193 |
Diluted weighted average shares outstanding (in shares) | 102,169 | 102,955 | 104,356 |
Basic earnings per share | |||
Net earnings/(losses) from continuing operations (in dollars per share) | $ (0.441) | $ 0.348 | $ 0.169 |
Net earnings/(losses) from discontinued operations (in dollars per share) | 0.001 | 0.010 | (0.015) |
Net losses/(earnings) attributable to non-controlling interests (in dollars per share) | (0.001) | (0.001) | 0.004 |
Basic net earnings/(losses) per share attributable to Belmond Ltd. (in dollars per share) | (0.441) | 0.357 | 0.158 |
Diluted earnings per share | |||
Net earnings/(losses) from continuing operations (in dollars per share) | (0.441) | 0.344 | 0.167 |
Net earnings/(losses) from discontinued operations (in dollars per share) | 0.001 | 0.010 | (0.015) |
Net losses/(earnings) attributable to non-controlling interests (in dollars per share) | (0.001) | (0.001) | 0.004 |
Diluted net earnings/(losses) per share attributable to Belmond Ltd. (in dollars per share) | $ (0.441) | $ 0.353 | $ 0.156 |
Earnings per share - Securities
Earnings per share - Securities excluded from the computation of diluted earnings per share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Number of share options and share-based awards excluded from computation of earnings per share (in shares) | 3,976,445 | 1,679,817 | 1,441,972 |
Number of share options and share-based awards unexercised (in shares) | 3,976,445 | 3,904,614 | 3,950,794 |
Share options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Number of share options and share-based awards excluded from computation of earnings per share (in shares) | 2,704,707 | 1,679,817 | 1,441,972 |
Share-based awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Number of share options and share-based awards excluded from computation of earnings per share (in shares) | 1,271,738 | 0 | 0 |
Significant acquisitions - Narr
Significant acquisitions - Narratives (Details) | May 26, 2017USD ($)room | Apr. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Business Acquisition | |||||
Acquisition related costs | $ 14,032,000 | $ 0 | $ 0 | ||
Goodwill | 120,220,000 | $ 113,343,000 | $ 113,996,000 | ||
Credit facility | |||||
Business Acquisition | |||||
Proceeds from line of credit | $ 45,000,000 | ||||
Cap Juluca | |||||
Business Acquisition | |||||
Percentage acquired | 100.00% | ||||
Number of rooms | room | 96 | ||||
Consideration transferred | $ 84,791,000 | ||||
Payments to acquire business | 68,652,000 | ||||
Acquisition related costs | 14,032,000 | ||||
Working capital adjustment | 2,107,000 | ||||
Other intangible assets | 6,100,000 | ||||
Goodwill | $ 5,500,000 | $ 5,500,000 | |||
Contract term | 125 years |
Significant acquisitions - Asse
Significant acquisitions - Assets Acquired Liabilities Assumed (Details) - USD ($) | May 26, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets acquired and liabilities assumed: | ||||
Goodwill | $ 120,220,000 | $ 113,343,000 | $ 113,996,000 | |
Cap Juluca | ||||
Consideration: | ||||
Agreed cash consideration | $ 70,759,000 | |||
Less: Working capital adjustment | (2,107,000) | |||
Payments to Acquire Businesses, Net of Cash Acquired | 68,652,000 | |||
Assets acquired and liabilities assumed: | ||||
Cash and cash equivalents | 20,000 | |||
Accounts receivable | 112,000 | |||
Prepaid expenses and other | 45,000 | |||
Inventories | 108,000 | |||
Property, plant and equipment | 59,159,000 | |||
Other intangible assets | 6,100,000 | |||
Accounts payable | (595,000) | |||
Accrued liabilities | (360,000) | |||
Deferred revenue | (1,437,000) | |||
Goodwill | 5,500,000 | $ 5,500,000 | ||
Net assets acquired | $ 68,652,000 |
Significant acquisitions - Sche
Significant acquisitions - Schedule of Earnings (Details) - Cap Juluca $ in Thousands | 7 Months Ended |
Dec. 31, 2017USD ($) | |
Business Acquisition, Pro Forma Information | |
Revenue | $ 2,435 |
Losses from continuing operations | $ (16,681) |
Assets held for sale and disc73
Assets held for sale and discontinued operations - Narratives (Details) £ in Thousands | Nov. 02, 2017USD ($) | Nov. 02, 2017GBP (£) | Apr. 19, 2016USD ($) | Dec. 31, 2017USD ($)property | Dec. 31, 2016USD ($)property | Dec. 31, 2015USD ($)property |
Discontinued operations | ||||||
Number of properties classified as held for sale | property | 0 | 0 | 0 | |||
Proceeds from sale of business | $ 2,070,000 | $ 0 | $ 0 | |||
Earnings before tax, gain on sale and impairment | 122,000 | 1,032,000 | (1,534,000) | |||
Great South Pacific Express | ||||||
Discontinued operations | ||||||
(Loss) gain on sale | $ 0 | |||||
Gross proceeds from divestiture of businesses, including reduction in debt facility on sale of asset | $ 2,362,000 | |||||
Porto Cupecoy | ||||||
Discontinued operations | ||||||
Earnings before tax, gain on sale and impairment | 22,000 | 963,000 | (898,000) | |||
Belmond Northern Belle | ||||||
Discontinued operations | ||||||
Proceeds from sale of business | $ 3,300,000 | £ 2,500 | ||||
(Loss) gain on sale | $ (753,000) | |||||
Ubud Hanging Gardens | ||||||
Discontinued operations | ||||||
Earnings before tax, gain on sale and impairment | $ 100,000 | $ 69,000 | (636,000) | |||
Legal fees | $ 636,000 |
Assets held for sale and disc74
Assets held for sale and discontinued operations - Summary of net assets sold and the gain/loss recorded on sale (Details) - Northern Belle $ in Thousands | Nov. 02, 2017USD ($) |
Net assets sold and gain on sale | |
Property, plant & equipment | $ 3,518 |
Deferred income taxes | (379) |
Net working capital | 110 |
Net assets | 3,249 |
Transfer of foreign currency translation loss | 690 |
Total assets | 3,939 |
Consideration: | |
Cash | 3,300 |
Less: Working capital adjustment | (94) |
Less: Costs to sell | (20) |
Net proceeds from divestiture of businesses | 3,186 |
Gain on sale, not discontinued operations | $ (753) |
Assets held for sale and disc75
Assets held for sale and discontinued operations - Summarized operating results for discontinued operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating results | |||
Revenue | $ 0 | $ 0 | $ 0 |
Earnings before tax, gain on sale and impairment | 122 | 1,032 | (1,534) |
Earnings before tax | 122 | 1,032 | (1,534) |
Net earnings from discontinued operations | 122 | 1,032 | (1,534) |
Ubud Hanging Gardens | |||
Operating results | |||
Revenue | 0 | 0 | 0 |
Earnings before tax, gain on sale and impairment | 100 | 69 | (636) |
Earnings before tax | 100 | 69 | (636) |
Net earnings from discontinued operations | 100 | 69 | (636) |
Porto Cupecoy | |||
Operating results | |||
Revenue | 0 | 0 | 0 |
Earnings before tax, gain on sale and impairment | 22 | 963 | (898) |
Earnings before tax | 22 | 963 | (898) |
Net earnings from discontinued operations | $ 22 | $ 963 | $ (898) |
Variable interest entities - Na
Variable interest entities - Narratives (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Variable Interest Entity | |||
Goodwill | $ 120,220 | $ 113,343 | $ 113,996 |
Variable interest entity, not primary beneficiary | Eastern and Oriental Express Ltd. | |||
Variable Interest Entity | |||
Ownership percentage | 25.00% | ||
Variable interest entity, not primary beneficiary | Rail joint venture in Peru | |||
Variable Interest Entity | |||
Ownership percentage | 50.00% | ||
Charleston Center LLC | Variable interest entity, primary beneficiary | |||
Variable Interest Entity | |||
Ownership percentage | 19.90% | ||
Assets of consolidated variable interest entities that can only be used to settle obligations of the consolidated VIE | $ 206,267 | 210,276 | |
Goodwill | 40,395 | 40,395 | |
Liabilities of consolidated variable interest entities for which creditors have no recourse to Belmond Ltd. | $ 122,968 | $ 121,621 |
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, 2017 | Dec. 31, 2016 |
Variable Interest Entity | ||
Carrying Amounts, Total | $ 8,944 | $ 7,589 |
Maximum exposure | 8,944 | 7,589 |
Investment | ||
Variable Interest Entity | ||
Carrying Amounts, Assets | 2,642 | 2,818 |
Maximum exposure | 2,642 | 2,818 |
Due from unconsolidated company | ||
Variable Interest Entity | ||
Carrying Amounts, Assets | 6,302 | 4,771 |
Maximum exposure | 6,302 | 4,771 |
Guarantees | ||
Variable Interest Entity | ||
Carrying Amounts, Liabilities | 0 | 0 |
Maximum exposure | 0 | 0 |
Contingent guarantees | ||
Variable Interest Entity | ||
Carrying Amounts, Liabilities | 0 | 0 |
Maximum exposure | $ 0 | $ 0 |
Investments in unconsolidated78
Investments in unconsolidated companies - Narratives (Details) € in Thousands | May 21, 2015USD ($) | May 21, 2015EUR (€) | Apr. 30, 2011 | Dec. 31, 2017USD ($)hoteloption | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Jun. 30, 2007USD ($) |
Schedule of Equity Method Investments | ||||||||
Impairment of property, plant and equipment | $ 8,216,000 | $ 1,007,000 | $ 0 | |||||
Number of hotels and resort properties | hotel | 36 | |||||||
Rail joint venture in Peru | ||||||||
Schedule of Equity Method Investments | ||||||||
Ownership percentage | 50.00% | |||||||
Rail joint venture in Peru | Guarantee of Governmental Concession | Variable interest entity, not primary beneficiary | ||||||||
Schedule of Equity Method Investments | ||||||||
Debt obligations guaranteed | $ 9,899,000 | |||||||
Rail joint venture in Peru | Financial Guarantee Additional Debt 2017 | Variable interest entity, not primary beneficiary | ||||||||
Schedule of Equity Method Investments | ||||||||
Debt obligations guaranteed | $ 4,124,000 | |||||||
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 | $ 5,000,000 | |||||||
Initial expropriation period | 5 years | |||||||
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 | $ 144,529,000 | € 130,000 | ||||||
Contract termination income | $ 2,292,000 | |||||||
Hotel and rail joint ventures in Peru | ||||||||
Schedule of Equity Method Investments | ||||||||
Ownership percentage | 50.00% | |||||||
Ferrocarril Transandino S.A. | ||||||||
Schedule of Equity Method Investments | ||||||||
Ownership percentage | 50.00% | |||||||
Impairment of property, plant and equipment | $ 29,266,000 | |||||||
Term of concession | 17 years | |||||||
Number of options | option | 6 | |||||||
Option term | 5 years | |||||||
Ferrocarril Transandino S.A. | Previously Reported | ||||||||
Schedule of Equity Method Investments | ||||||||
Term of concession | 30 years | |||||||
Ferrocarril Transandino S.A. | Adjustments | ||||||||
Schedule of Equity Method Investments | ||||||||
Term of concession | 35 years | |||||||
Peruvian hotel joint venture | ||||||||
Schedule of Equity Method Investments | ||||||||
Ownership percentage | 50.00% | |||||||
Number of hotels and resort properties | hotel | 5 | |||||||
Peruvian hotel joint venture | Contingent Financial Guarantee Additional Debt 2018 | ||||||||
Schedule of Equity Method Investments | ||||||||
Debt obligations guaranteed | $ 15,868,000 | |||||||
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% | |||||||
Joint Ventures | Ferrocarril Transandino S.A. | ||||||||
Schedule of Equity Method Investments | ||||||||
Impairment of property, plant and equipment | $ 58,531,000 |
Investments in unconsolidated79
Investments in unconsolidated companies - Unconsolidated companies summarized financial data (Details) - USD ($) $ in Thousands | May 21, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Equity Method Investments | ||||
Investments in unconsolidated companies | $ 64,644 | $ 79,327 | ||
Summarized financial data for OEH's unconsolidated companies | ||||
Current assets | 88,119 | 96,247 | ||
Property, plant and equipment, net of accumulated depreciation | 228,970 | 213,958 | ||
Other non-current assets | 55,605 | 111,146 | ||
Non-current assets | 284,575 | 325,104 | ||
Total assets | 372,694 | 421,351 | ||
Current liabilities, including $24,793 and $21,021 current portion of third-party debt | 101,668 | 89,785 | ||
Long-term debt | 143,187 | 153,876 | ||
Other non-current liabilities | 7,892 | 27,545 | ||
Non-current liabilities | 151,079 | 181,421 | ||
Total shareholders’ equity | 119,947 | 150,145 | ||
Total liabilities and shareholders’ equity | 372,694 | 421,351 | ||
Revenue | 207,659 | 191,551 | $ 160,614 | |
Gross profit | 141,708 | 135,000 | 104,708 | |
Net earnings | (20,778) | 21,720 | $ 17,723 | |
Adjustments | ||||
Summarized financial data for OEH's unconsolidated companies | ||||
Property, plant and equipment, net of accumulated depreciation | (81,704) | |||
Other non-current liabilities | 81,704 | |||
Hotel Ritz, Madrid | ||||
Schedule of Equity Method Investments | ||||
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 | |||
Third-party Debt | ||||
Summarized financial data for OEH's unconsolidated companies | ||||
Current liabilities, including $24,793 and $21,021 current portion of third-party debt | $ 24,793 | $ 21,021 |
Property, plant and equipment -
Property, plant and equipment - Major classes of property, plant and equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Property, plant and equipment | ||
Property, plant and equipment, gross | $ 1,585,782 | $ 1,443,615 |
Less: Accumulated depreciation | (417,738) | (368,939) |
Total property, plant and equipment, net of accumulated depreciation | 1,168,044 | 1,074,676 |
Land and buildings | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 1,126,496 | 1,010,362 |
Machinery and equipment | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 181,670 | 179,537 |
Furniture, fixtures and equipment | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 263,716 | 235,098 |
River cruise ship and canal boats | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | $ 13,900 | $ 18,618 |
Property, plant and equipment81
Property, plant and equipment - Narratives (Details) € in Thousands | 1 Months Ended | 12 Months Ended | |||
Nov. 30, 2017USD ($) | Dec. 31, 2017USD ($)villa | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2017EUR (€)villa | |
Property, plant and equipment | |||||
Total property, plant and equipment at book value | $ 1,168,044,000 | $ 1,074,676,000 | |||
Interest capitalized | 624,000 | 0 | $ 0 | ||
Insurance plan, coverage amount | 30,000,000 | ||||
Impairment of property, plant and equipment | 8,216,000 | 1,007,000 | 0 | ||
Insurance policy, deductible expense | 1,548,000 | ||||
Insurance receivable | 1,622,000 | ||||
Proceeds from insurance settlements | $ 15,000,000 | 13,588,000 | 0 | 0 | |
La Samanna | |||||
Property, plant and equipment | |||||
Total property, plant and equipment at book value | 29,983,000 | ||||
La Samanna | Minimum | |||||
Property, plant and equipment | |||||
Estimated repair cost | 25,000,000 | ||||
La Samanna | Maximum | |||||
Property, plant and equipment | |||||
Estimated repair cost | 30,000,000 | ||||
Cap Juluca | |||||
Property, plant and equipment | |||||
Total property, plant and equipment at book value | 48,581,000 | ||||
Cap Juluca | Minimum | |||||
Property, plant and equipment | |||||
Estimated repair cost | 80,000,000 | ||||
Cap Juluca | Maximum | |||||
Property, plant and equipment | |||||
Estimated repair cost | 90,000,000 | ||||
Governor’s Residence | |||||
Property, plant and equipment | |||||
Total property, plant and equipment at book value | 2,614,000 | ||||
Belmond El Encanto | |||||
Property, plant and equipment | |||||
Total property, plant and equipment at book value | 118,414,000 | ||||
Belmond Orcaella | |||||
Property, plant and equipment | |||||
Impairment of property, plant and equipment | 1,007,000 | ||||
Hurricane | La Samanna | |||||
Property, plant and equipment | |||||
Insurance plan, coverage amount | $ 5,870,000 | € 4,900 | |||
Number of villas | villa | 8 | 8 | |||
Impairment of property, plant and equipment | $ 5,645,000 | ||||
Hurricane | Cap Juluca | |||||
Property, plant and equipment | |||||
Impairment of property, plant and equipment | 16,294,000 | ||||
Belmond Road to Mandalay | |||||
Property, plant and equipment | |||||
Impairment of property, plant and equipment | 7,124,000 | ||||
Belmond Northern Belle | |||||
Property, plant and equipment | |||||
Impairment of property, plant and equipment | 1,092,000 | ||||
Variable interest entity, primary beneficiary | |||||
Property, plant and equipment | |||||
Total property, plant and equipment at book value | 197,369,000 | 201,861,000 | |||
Variable interest entity, primary beneficiary | Charleston Center LLC | |||||
Property, plant and equipment | |||||
Total property, plant and equipment at book value | 197,369,000 | 201,861,000 | |||
Continuing operations | |||||
Property, plant and equipment | |||||
Depreciation expense | $ 62,252,000 | $ 51,835,000 | $ 49,982,000 |
Goodwill - Changes in carrying
Goodwill - Changes in carrying amount of goodwill (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill | |||
Gross goodwill amount | $ 169,843,000 | $ 157,466,000 | $ 158,119,000 |
Accumulated impairment | (49,623,000) | (44,123,000) | (44,123,000) |
Changes in the carrying amount of goodwill | |||
Balance at the beginning of the period | 113,343,000 | 113,996,000 | |
Impairment | (5,500,000) | 0 | (9,796,000) |
Foreign currency translation adjustment | 6,877,000 | (653,000) | |
Balance at the end of the period | 120,220,000 | 113,343,000 | 113,996,000 |
Europe | |||
Goodwill | |||
Gross goodwill amount | 70,660,000 | 64,459,000 | 64,263,000 |
Accumulated impairment | (14,202,000) | (14,202,000) | (14,202,000) |
Changes in the carrying amount of goodwill | |||
Balance at the beginning of the period | 50,257,000 | 50,061,000 | |
Impairment | 0 | 0 | |
Foreign currency translation adjustment | 6,201,000 | 196,000 | |
Balance at the end of the period | 56,458,000 | 50,257,000 | 50,061,000 |
North America | |||
Goodwill | |||
Gross goodwill amount | 71,601,000 | 66,101,000 | 66,101,000 |
Accumulated impairment | (21,610,000) | (16,110,000) | (16,110,000) |
Changes in the carrying amount of goodwill | |||
Balance at the beginning of the period | 49,991,000 | 49,991,000 | |
Impairment | (5,500,000) | 0 | |
Foreign currency translation adjustment | 0 | 0 | |
Balance at the end of the period | 49,991,000 | 49,991,000 | 49,991,000 |
Rest of world | |||
Goodwill | |||
Gross goodwill amount | 20,530,000 | 20,581,000 | 19,975,000 |
Accumulated impairment | (13,149,000) | (13,149,000) | (13,149,000) |
Changes in the carrying amount of goodwill | |||
Balance at the beginning of the period | 7,432,000 | 6,826,000 | |
Impairment | 0 | 0 | |
Foreign currency translation adjustment | (51,000) | 606,000 | |
Balance at the end of the period | 7,381,000 | 7,432,000 | 6,826,000 |
Owned trains and cruises | |||
Goodwill | |||
Gross goodwill amount | 7,052,000 | 6,325,000 | 7,780,000 |
Accumulated impairment | (662,000) | (662,000) | (662,000) |
Changes in the carrying amount of goodwill | |||
Balance at the beginning of the period | 5,663,000 | 7,118,000 | |
Impairment | 0 | 0 | |
Foreign currency translation adjustment | 727,000 | (1,455,000) | |
Balance at the end of the period | 6,390,000 | $ 5,663,000 | $ 7,118,000 |
Cap Juluca | |||
Changes in the carrying amount of goodwill | |||
Impairment | (5,500,000) | ||
Balance at the end of the period | 5,500,000 | ||
Cap Juluca | North America | |||
Changes in the carrying amount of goodwill | |||
Balance at the end of the period | $ 5,500,000 |
Goodwill - Narratives (Details)
Goodwill - Narratives (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | May 26, 2017 | |
Goodwill and impairment of goodwill | ||||
Goodwill | $ 120,220,000 | $ 113,343,000 | $ 113,996,000 | |
Impairment of goodwill | 5,500,000 | $ 0 | 9,796,000 | |
Cap Juluca | ||||
Goodwill and impairment of goodwill | ||||
Impairment of goodwill | 5,500,000 | |||
Cap Juluca | Minimum | ||||
Goodwill and impairment of goodwill | ||||
Estimated repair cost | 80,000,000 | |||
Cap Juluca | Maximum | ||||
Goodwill and impairment of goodwill | ||||
Estimated repair cost | 90,000,000 | |||
Governor’s Residence | ||||
Goodwill and impairment of goodwill | ||||
Goodwill | $ 2,195,000 | |||
Percentage fair value in excess of carrying value | 14.00% | |||
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 | |||
Cap Juluca | ||||
Goodwill and impairment of goodwill | ||||
Goodwill | $ 5,500,000 | $ 5,500,000 | ||
Impairment of goodwill | $ 5,500,000 |
Other intangible assets - Rollf
Other intangible assets - Rollforward of other intangible assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Carrying amount: | |||
Balance at the beginning of the period | $ 17,738 | $ 17,384 | |
Additions | 6,100 | 177 | |
Disposals | (247) | ||
Foreign currency translation adjustment | 549 | 177 | |
Balance at the end of the period | 24,140 | 17,738 | $ 17,384 |
Accumulated amortization: | |||
Balance at the beginning of the period | 3,861 | 3,533 | |
Charge for the year | 600 | 561 | |
Disposals | (247) | ||
Foreign currency translation adjustment | 148 | (233) | |
Balance at the end of the period | 4,362 | 3,861 | 3,533 |
Net book value: | |||
Net book value | 19,778 | 13,877 | 13,851 |
Trade names | |||
Carrying amount: | |||
Balance at the beginning of the period | 7,579 | 7,100 | |
Additions | 6,100 | 0 | |
Foreign currency translation adjustment | 322 | 479 | |
Balance at the end of the period | 14,001 | 7,579 | 7,100 |
Net book value: | |||
Net book value | 14,001 | 7,579 | 7,100 |
Favorable lease assets | |||
Carrying amount: | |||
Balance at the beginning of the period | 8,501 | 8,493 | |
Additions | 0 | 0 | |
Disposals | 0 | ||
Foreign currency translation adjustment | 59 | 8 | |
Balance at the end of the period | 8,560 | 8,501 | 8,493 |
Accumulated amortization: | |||
Balance at the beginning of the period | 2,636 | 2,273 | |
Charge for the year | 434 | 373 | |
Disposals | 0 | ||
Foreign currency translation adjustment | 22 | (10) | |
Balance at the end of the period | 3,092 | 2,636 | 2,273 |
Net book value: | |||
Net book value | 5,468 | 5,865 | 6,220 |
Internet sites | |||
Carrying amount: | |||
Balance at the beginning of the period | 1,658 | 1,791 | |
Additions | 0 | 177 | |
Disposals | (247) | ||
Foreign currency translation adjustment | 168 | (310) | |
Balance at the end of the period | 1,579 | 1,658 | 1,791 |
Accumulated amortization: | |||
Balance at the beginning of the period | 1,225 | 1,260 | |
Charge for the year | 166 | 188 | |
Disposals | (247) | ||
Foreign currency translation adjustment | 126 | (223) | |
Balance at the end of the period | 1,270 | 1,225 | 1,260 |
Net book value: | |||
Net book value | $ 309 | $ 433 | $ 531 |
Other intangible assets - Narra
Other intangible assets - Narratives (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets | |||
Additions | $ 6,100,000 | $ 177,000 | |
Additions | 0 | 0 | $ 714,000 |
Impairment of intangible assets | 0 | 0 | 0 |
Net book value | 19,778,000 | 13,877,000 | 13,851,000 |
Amortization expense | 600,000 | 561,000 | |
Continuing operations | |||
Finite-Lived Intangible Assets | |||
Amortization expense | 600,000 | 561,000 | 531,000 |
Estimated amortization expense, year ended December 31, 2018 | 600,000 | ||
Estimated amortization expense, year ended December 31, 2019 | 600,000 | ||
Estimated amortization expense, year ended December 31, 2020 | 600,000 | ||
Estimated amortization expense, year ended December 31, 2021 | 600,000 | ||
Estimated amortization expense, year ended December 31, 2022 | 600,000 | ||
Trade names | |||
Finite-Lived Intangible Assets | |||
Additions | 6,100,000 | 0 | |
Net book value | $ 14,001,000 | 7,579,000 | 7,100,000 |
Trade names | Cap Juluca | |||
Finite-Lived Intangible Assets | |||
Percentage fair value in excess of carrying value | 29.00% | ||
Net book value | $ 6,100,000 | ||
Trade names | Belmond Grand Hotel Europe | |||
Finite-Lived Intangible Assets | |||
Percentage fair value in excess of carrying value | 32.00% | ||
Net book value | $ 7,901,000 | ||
Favorable lease assets | |||
Finite-Lived Intangible Assets | |||
Additions | 0 | 0 | |
Net book value | 5,468,000 | 5,865,000 | 6,220,000 |
Amortization expense | 434,000 | 373,000 | |
Favorable lease assets | Grand Hotel Timeo and Villa Sant' Andrea | |||
Finite-Lived Intangible Assets | |||
Additions | 714,000 | ||
Internet sites | |||
Finite-Lived Intangible Assets | |||
Additions | 0 | 177,000 | |
Net book value | 309,000 | 433,000 | $ 531,000 |
Amortization expense | $ 166,000 | $ 188,000 | |
Minimum | Favorable lease assets | |||
Finite-Lived Intangible Assets | |||
Amortization period (in years) | 19 years | ||
Minimum | Internet sites | |||
Finite-Lived Intangible Assets | |||
Amortization period (in years) | 5 years | ||
Maximum | Favorable lease assets | |||
Finite-Lived Intangible Assets | |||
Amortization period (in years) | 60 years | ||
Maximum | Internet sites | |||
Finite-Lived Intangible Assets | |||
Amortization period (in years) | 10 years |
Debt and obligations under ca86
Debt and obligations under capital lease - Long-term debt and obligations under capital lease (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument | ||
Loans from banks and other parties collateralized by tangible and intangible personal property and real estate with a maturity of 20 months to seven years (2016 - two to five years), with a weighted average interest rate of 4.11% (2016 - 4.27%) | $ 724,208 | $ 602,083 |
Obligations under capital lease | 22 | 19 |
Total long-term debt and obligations under capital leases | 724,230 | 602,102 |
Less: Current portion | 6,407 | 5,284 |
Less: Discount on secured term loan | 3,092 | 1,515 |
Less: Debt issuance costs | 13,979 | 9,535 |
Non-current portion of long-term debt and obligations under capital lease | $ 700,752 | $ 585,768 |
Weighted average interest rate | 4.11% | 4.27% |
Minimum | ||
Debt Instrument | ||
Period of debt repayment | 20 months | 2 years |
Maximum | ||
Debt Instrument | ||
Period of debt repayment | 7 years | 5 years |
Debt and obligations under ca87
Debt and obligations under capital lease - Narratives (Details) | Jul. 03, 2017USD ($) | Mar. 21, 2014USD ($) | Apr. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Dec. 31, 2017USD ($)tranche | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2017EUR (€)tranche | Aug. 31, 2014USD ($) | Mar. 21, 2014EUR (€) |
Debt Instrument | ||||||||||
Long-term debt and obligations under capital leases | $ 700,752,000 | $ 585,768,000 | ||||||||
Gain on extinguishment of debt | 0 | 1,200,000 | $ 0 | |||||||
Guaranteed debt of subsidiaries | 611,351,000 | 488,985,000 | ||||||||
Loss on debt restructuring | 682,000 | 0 | ||||||||
Deferred financing costs | 13,979,000 | 9,535,000 | ||||||||
Line of credit maximum borrowing capacity including working capital facility | 100,598,000 | 105,525,000 | ||||||||
Line of credit facility, remaining borrowing capacity including working capital facilities | 100,598,000 | 105,525,000 | ||||||||
Variable interest entity, primary beneficiary | ||||||||||
Debt Instrument | ||||||||||
Long-term debt and obligations under capital leases | 112,069,000 | 111,968,000 | ||||||||
Long-term debt, including current portion, held by consolidated variable interest entities | 112,857,000 | 113,098,000 | ||||||||
Charleston Center LLC | Variable interest entity, primary beneficiary | ||||||||||
Debt Instrument | ||||||||||
Debt instrument, face amount | $ 112,000,000 | $ 86,000,000 | ||||||||
Repayment of debt, principal | 10,000,000 | |||||||||
Repayment of debt, interest | $ 16,819,000 | |||||||||
Gain on extinguishment of debt | 1,200,000 | |||||||||
Deferred financing costs | 533,000 | $ 888,000 | ||||||||
Charleston Center LLC | LIBOR | Variable interest entity, primary beneficiary | ||||||||||
Debt Instrument | ||||||||||
Basis spread on variable interest rate, percentage | 2.35% | |||||||||
Term facility | ||||||||||
Debt Instrument | ||||||||||
Debt instrument, term | 7 years | |||||||||
Debt instrument, face amount | $ 551,955,000 | $ 609,955,000 | ||||||||
Proceeds from line of credit | $ 45,000,000 | |||||||||
Number of tranches | tranche | 2 | 2 | ||||||||
Interest rate floor | 0.00% | 0.00% | ||||||||
Secured term loan, annual mandatory amortization, percentage of principal amount | 1.00% | |||||||||
Term facility | Tranche one | ||||||||||
Debt Instrument | ||||||||||
Debt instrument, face amount | 345,000,000 | |||||||||
Long-term debt and obligations under capital leases | $ 398,000,000 | |||||||||
Term facility | Tranche one | LIBOR | ||||||||||
Debt Instrument | ||||||||||
Basis spread on variable interest rate, percentage | 2.75% | |||||||||
Term facility | Tranche two | ||||||||||
Debt Instrument | ||||||||||
Debt instrument, face amount | 206,955,000 | € 150,000,000 | ||||||||
Long-term debt and obligations under capital leases | $ 213,352,000 | € 178,105,000 | ||||||||
Term facility | Tranche two | EURIBOR | ||||||||||
Debt Instrument | ||||||||||
Basis spread on variable interest rate, percentage | 3.00% | |||||||||
Revolving Credit Facility | ||||||||||
Debt Instrument | ||||||||||
Debt instrument, term | 5 years | |||||||||
Debt instrument, face amount | $ 100,000,000 | $ 105,000,000 | ||||||||
Line of credit facility, maximum borrowing capacity | $ 100,000,000 | |||||||||
Revolving Credit Facility | LIBOR | ||||||||||
Debt Instrument | ||||||||||
Basis spread on variable interest rate, percentage | 2.50% | |||||||||
Commitment fee, percentage | 0.40% | |||||||||
Secured Debt | ||||||||||
Debt Instrument | ||||||||||
Debt instrument, term | 7 years | |||||||||
Debt instrument, face amount | $ 603,434,000 |
Debt and obligations under ca88
Debt and obligations under capital lease - Long-term debt maturities, including obligations under capital lease (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Maturities of Long-term Debt | ||
2,018 | $ 6,407 | |
2,019 | 118,428 | |
2,020 | 6,428 | |
2,021 | 6,193 | |
2,022 | 6,144 | |
2,023 | 6,144 | |
2024 and thereafter | 574,486 | |
Total long-term debt and obligations under capital leases | $ 724,230 | $ 602,102 |
Other liabilities (Details)
Other liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument | ||
Interest rate swaps (see Note 22) | $ 0 | $ 1,054 |
Long-term income tax liability | 2,143 | 0 |
Deferred gain on sale of Inn at Perry Cabin by Belmond | 750 | 1,350 |
Deferred lease incentive | 130 | 162 |
Tax indemnity provision on extinguishment of debt (see Note 11) | 0 | 2,800 |
Total other liabilities | 3,023 | $ 5,366 |
Accrued liabilities | ||
Debt Instrument | ||
Tax indemnity provision on extinguishment of debt (see Note 11) | $ 2,644 |
Pensions - Schedule of signific
Pensions - Schedule of significant weighted average assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Retirement Benefits [Abstract] | |||
Discount rate for calculating net periodic benefit costs (as a percent) | 2.70% | 3.85% | 3.70% |
Expected long-term rate of return on plan assets (as a percent) | 3.87% | 4.90% | 4.10% |
Discount rate for calculating benefit obligation (as a percent) | 2.50% | 2.70% |
Pensions - Schedule of fair val
Pensions - Schedule of fair value of plan assets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure | ||||
Fair value of plan assets | $ 28,232 | $ 24,018 | $ 24,202 | $ 24,968 |
Level 1 | ||||
Defined Benefit Plan Disclosure | ||||
Fair value of plan assets | 26,053 | 22,076 | ||
Level 2 | ||||
Defined Benefit Plan Disclosure | ||||
Fair value of plan assets | 0 | 0 | ||
Level 3 | ||||
Defined Benefit Plan Disclosure | ||||
Fair value of plan assets | 2,179 | 1,942 | ||
Cash | ||||
Defined Benefit Plan Disclosure | ||||
Fair value of plan assets | 1,908 | 2,840 | ||
Cash | Level 1 | ||||
Defined Benefit Plan Disclosure | ||||
Fair value of plan assets | 1,908 | 2,840 | ||
Cash | Level 2 | ||||
Defined Benefit Plan Disclosure | ||||
Fair value of plan assets | 0 | 0 | ||
Cash | Level 3 | ||||
Defined Benefit Plan Disclosure | ||||
Fair value of plan assets | 0 | 0 | ||
U.K. managed funds | ||||
Defined Benefit Plan Disclosure | ||||
Fair value of plan assets | 4,529 | 4,461 | ||
U.K. managed funds | Level 1 | ||||
Defined Benefit Plan Disclosure | ||||
Fair value of plan assets | 4,529 | 4,461 | ||
U.K. managed funds | Level 2 | ||||
Defined Benefit Plan Disclosure | ||||
Fair value of plan assets | 0 | 0 | ||
U.K. managed funds | Level 3 | ||||
Defined Benefit Plan Disclosure | ||||
Fair value of plan assets | 0 | 0 | ||
Overseas managed funds | ||||
Defined Benefit Plan Disclosure | ||||
Fair value of plan assets | 8,486 | 5,667 | ||
Overseas managed funds | Level 1 | ||||
Defined Benefit Plan Disclosure | ||||
Fair value of plan assets | 8,486 | 5,667 | ||
Overseas managed funds | Level 2 | ||||
Defined Benefit Plan Disclosure | ||||
Fair value of plan assets | 0 | 0 | ||
Overseas managed funds | Level 3 | ||||
Defined Benefit Plan Disclosure | ||||
Fair value of plan assets | 0 | 0 | ||
U.K. government bonds | ||||
Defined Benefit Plan Disclosure | ||||
Fair value of plan assets | 3,058 | 2,774 | ||
U.K. government bonds | Level 1 | ||||
Defined Benefit Plan Disclosure | ||||
Fair value of plan assets | 3,058 | 2,774 | ||
U.K. government bonds | Level 2 | ||||
Defined Benefit Plan Disclosure | ||||
Fair value of plan assets | 0 | 0 | ||
U.K. government bonds | Level 3 | ||||
Defined Benefit Plan Disclosure | ||||
Fair value of plan assets | 0 | 0 | ||
Corporate bonds | ||||
Defined Benefit Plan Disclosure | ||||
Fair value of plan assets | 3,437 | 2,004 | ||
Corporate bonds | Level 1 | ||||
Defined Benefit Plan Disclosure | ||||
Fair value of plan assets | 3,437 | 2,004 | ||
Corporate bonds | Level 2 | ||||
Defined Benefit Plan Disclosure | ||||
Fair value of plan assets | 0 | 0 | ||
Corporate bonds | Level 3 | ||||
Defined Benefit Plan Disclosure | ||||
Fair value of plan assets | 0 | 0 | ||
Quoted hedge funds | ||||
Defined Benefit Plan Disclosure | ||||
Fair value of plan assets | 4,635 | 4,330 | ||
Quoted hedge funds | Level 1 | ||||
Defined Benefit Plan Disclosure | ||||
Fair value of plan assets | 4,635 | 4,330 | ||
Quoted hedge funds | Level 2 | ||||
Defined Benefit Plan Disclosure | ||||
Fair value of plan assets | 0 | 0 | ||
Quoted hedge funds | Level 3 | ||||
Defined Benefit Plan Disclosure | ||||
Fair value of plan assets | 0 | 0 | ||
Annuities | ||||
Defined Benefit Plan Disclosure | ||||
Fair value of plan assets | 2,179 | 1,942 | ||
Annuities | Level 1 | ||||
Defined Benefit Plan Disclosure | ||||
Fair value of plan assets | 0 | 0 | ||
Annuities | Level 2 | ||||
Defined Benefit Plan Disclosure | ||||
Fair value of plan assets | 0 | 0 | ||
Annuities | Level 3 | ||||
Defined Benefit Plan Disclosure | ||||
Fair value of plan assets | $ 2,179 | $ 1,942 | $ 2,026 |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Rollforward of fair values | |||
Fair value of plan assets at beginning of year | $ 24,018 | $ 24,202 | $ 24,968 |
Foreign exchange | 2,426 | (4,501) | (1,298) |
Actual return on plan assets: | |||
Fair value of plan assets at end of year | 28,232 | 24,018 | 24,202 |
Annuities | |||
Rollforward of fair values | |||
Fair value of plan assets at beginning of year | 1,942 | ||
Actual return on plan assets: | |||
Fair value of plan assets at end of year | 2,179 | 1,942 | |
Level 3 | |||
Rollforward of fair values | |||
Fair value of plan assets at beginning of year | 1,942 | ||
Actual return on plan assets: | |||
Fair value of plan assets at end of year | 2,179 | 1,942 | |
Level 3 | Annuities | |||
Rollforward of fair values | |||
Fair value of plan assets at beginning of year | 1,942 | 2,026 | |
Foreign exchange | 190 | (342) | |
Actual return on plan assets: | |||
Assets still held at the reporting date | 120 | 321 | |
Purchases, sales and settlements, net | (73) | (63) | |
Fair value of plan assets at end of year | $ 2,179 | $ 1,942 | $ 2,026 |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Change in benefit obligation: | |||
Benefit obligation at beginning of year | $ 25,465 | $ 24,556 | $ 27,353 |
Interest cost | 713 | 861 | 984 |
Actuarial loss/(gain) | 663 | 5,259 | (702) |
Benefits paid | (485) | (529) | (1,723) |
Foreign currency translation | 2,526 | (4,682) | (1,356) |
Benefit obligation at end of year | 28,882 | 25,465 | 24,556 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 24,018 | 24,202 | 24,968 |
Actual return on plan assets | 1,264 | 3,116 | 309 |
Employer contributions | 1,009 | 1,730 | 1,946 |
Benefits paid | (485) | (529) | (1,723) |
Foreign currency translation | 2,426 | (4,501) | (1,298) |
Fair value of plan assets at end of year | 28,232 | 24,018 | 24,202 |
Funded status at end of year | (650) | (1,447) | (354) |
Net actuarial (gain)/loss recognized in other comprehensive loss | $ (383) | $ 2,649 | $ (727) |
Pensions - Other pension and co
Pensions - Other pension and compensation disclosure tables (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Amounts recognized in the consolidated balance sheets | ||||
Non-current liabilities | $ 650 | $ 1,447 | ||
Amounts recognized in accumulated other comprehensive income (loss) | ||||
Net loss | (12,200) | (12,583) | ||
Prior service cost | 0 | 0 | ||
Net transitional obligation | 0 | 0 | ||
Total amount recognized in accumulated other comprehensive loss | (12,200) | (12,583) | ||
Information about pension plans | ||||
Projected benefit obligation | 28,882 | 25,465 | $ 24,556 | $ 27,353 |
Accumulated benefit obligation | 28,882 | 25,465 | ||
Fair value of plan assets | 28,232 | 24,018 | 24,202 | $ 24,968 |
Components of net periodic pension benefit cost | ||||
Service cost | 0 | 0 | 0 | |
Interest cost | 713 | 861 | 984 | |
Expected return on assets | (997) | (1,121) | (1,034) | |
Net amortization and deferrals | 780 | 615 | 750 | |
Net periodic benefit cost | 496 | 355 | 700 | |
Future benefit payments | ||||
2,018 | 483 | |||
2,019 | 668 | |||
2,020 | 536 | |||
2,021 | 689 | |||
2,022 | 583 | |||
Next five years | 5,112 | |||
Employers’ contributions | $ 2,030 | $ 2,052 | $ 2,199 |
Pensions - Narratives (Details)
Pensions - Narratives (Details) € in Thousands, £ in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2017USD ($) | Jun. 30, 2017EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2017GBP (£) | Dec. 31, 2017GBP (£) | Jul. 01, 2017GBP (£) | May 31, 2014GBP (£) | |
Defined Benefit Plan Disclosure | |||||||
Defined benefit plan, expected future contribution by employer | $ 1,717 | £ 1,272 | |||||
Defined benefit obligation, monthly contribution by employer | $ 143 | € 106 | 33 | £ 24 | |||
Estimated net loss amortized from accumulated other comprehensive income (loss) into net periodic pension cost in the next fiscal year | 768 | ||||||
Maximum | |||||||
Defined Benefit Plan Disclosure | |||||||
Defined benefit plan, payment obligation guaranteed by parent company | $ 11,070 | £ 8,200 | £ 8,200 |
Income taxes - Narratives (Deta
Income taxes - Narratives (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax | |||||
Change in tax rates | $ (19,807) | $ (643) | $ (5,121) | ||
Non deductable tax expense | $ 2,330 | $ 0 | $ 0 | ||
Statutory tax rate, percentage | 19.25% | 20.00% | 15.00% | ||
Gross amount of tax loss carryforwards | $ 316,418 | $ 369,523 | |||
Net operating losses carryforwards expiring within five years | 11,037 | ||||
Net operating losses carryforwards expiring after five years but within ten years | 11,272 | ||||
Net operating losses carryforwards expiring after ten years or with no expiry date | 294,109 | ||||
Deferred tax liability, undistributed foreign earnings | 1,611 | 1,669 | |||
Cumulative amount of unremitted earnings, foreign subsidiaries | 1,406,000 | 1,355,000 | |||
Provision for income taxes | 6,554 | 16,368 | $ 17,041 | ||
Benefit included in tax provision, in respect of the provision for uncertain tax positions | 160 | (3,350) | 279 | ||
Charges included in tax provision related to potential interest and penalty costs associated with uncertain tax positions | 15 | 639 | 247 | ||
Deferred tax provision | 2,215 | 4,876 | 16,320 | ||
Unrecognized tax benefit | 532 | 318 | 3,678 | $ 3,437 | |
Unrecognized tax benefits that would affect effective tax rate if recognized | 532 | $ 318 | $ 3,678 | ||
Amount by which uncertain tax position is reasonably possible to decrease within the next 12 months | $ 100 | ||||
Foreign Tax Authority | Her Majesty's Revenue and Customs (HMRC) | |||||
Income Tax | |||||
Statutory tax rate, percentage | 19.25% | 20.00% | |||
Foreign Tax Authority | Office of the Tax Commissioner, Bermuda | |||||
Income Tax | |||||
Statutory tax rate, percentage | 0.00% | 15.00% |
Income taxes - Provision for in
Income taxes - Provision for income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax | |||
Difference in taxation rates | $ 13,874 | $ 9,509 | $ 12,948 |
Pre-tax (loss)/income | (28,303) | 40,756 | 25,354 |
Provision for income taxes, Current | 20,196 | 16,673 | 17,164 |
Provision for income taxes, Deferred | (13,642) | (305) | (123) |
Provision for income taxes | 6,554 | 16,368 | 17,041 |
UK | |||
Income Tax | |||
Pre-tax (loss)/income | (18,518) | (6,702) | (18,965) |
Provision for income taxes, Current | 1,671 | 949 | 1,585 |
Provision for income taxes, Deferred | (372) | (444) | (2,262) |
Provision for income taxes | 1,299 | 505 | (677) |
Bermuda | |||
Income Tax | |||
Pre-tax (loss)/income | (34,873) | 160 | (4,315) |
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 | |||
Pre-tax (loss)/income | (1,850) | 2,681 | 1,439 |
Provision for income taxes, Current | 3,332 | (1,510) | 1,310 |
Provision for income taxes, Deferred | (12,987) | (1,978) | 1,698 |
Provision for income taxes | (9,655) | (3,488) | 3,008 |
Brazil | |||
Income Tax | |||
Pre-tax (loss)/income | 2,193 | 15,303 | 10,380 |
Provision for income taxes, Current | 2,322 | 5,498 | 2,768 |
Provision for income taxes, Deferred | (804) | (121) | 760 |
Provision for income taxes | 1,518 | 5,377 | 3,528 |
Italy | |||
Income Tax | |||
Pre-tax (loss)/income | 20,265 | 19,971 | 17,351 |
Provision for income taxes, Current | 5,359 | 4,468 | 4,006 |
Provision for income taxes, Deferred | 972 | 1,998 | (824) |
Provision for income taxes | 6,331 | 6,466 | 3,182 |
Peru | |||
Income Tax | |||
Pre-tax (loss)/income | 14,367 | 13,965 | 12,078 |
Provision for income taxes, Current | 4,712 | 4,261 | 3,154 |
Provision for income taxes, Deferred | 248 | 1,625 | (677) |
Provision for income taxes | 4,960 | 5,886 | 2,477 |
Rest of the world | |||
Income Tax | |||
Pre-tax (loss)/income | (9,887) | (4,622) | 7,386 |
Provision for income taxes, Current | 2,800 | 3,007 | 4,341 |
Provision for income taxes, Deferred | (699) | (1,385) | 1,182 |
Provision for income taxes | $ 2,101 | $ 1,622 | $ 5,523 |
Income taxes - Reconciliation o
Income taxes - Reconciliation of tax charge at statutory tax rate to provision for income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
(Losses)/earnings before provision for income taxes and earnings from unconsolidated companies, net of tax | $ (28,303) | $ 40,756 | $ 25,354 |
Tax (benefit)/charge at statutory tax rate of 19.25%, 20% and 15% | (5,448) | 8,151 | 3,803 |
Exchange rate movements on deferred tax | 2,400 | (1,785) | (1,912) |
Notional interest deductions | (960) | (1,812) | (1,867) |
Imputed cross border charges | 763 | 995 | 716 |
Disallowable goodwill impairment charges | 0 | 0 | 2,198 |
Other permanent disallowable expenditure | 3,664 | 483 | 5,762 |
Unrecognized tax loss generated on disposal of Hotel Ritz by Belmond | 0 | 0 | (16,029) |
Change in valuation allowance | 2,215 | 4,876 | 16,320 |
Difference in taxation rates | 13,874 | 9,509 | 12,948 |
Adjustment to deferred tax for VIE | 7,263 | 0 | 0 |
Change in provisions for uncertain tax positions | 160 | (3,350) | 279 |
Change in tax rates | (19,807) | (643) | (5,121) |
Transition tax in U.S. | 2,330 | 0 | 0 |
Other | 100 | (56) | (56) |
Provision for income taxes | $ 6,554 | $ 16,368 | $ 17,041 |
Statutory tax rate, percentage | 19.25% | 20.00% | 15.00% |
Income taxes - Schedule of net
Income taxes - Schedule of net deferred tax liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Net deferred tax liabilities | |||
Operating loss carry-forwards | $ 58,185 | $ 82,292 | $ 89,513 |
Pensions | 95 | 255 | 63 |
Share-based compensation | 703 | 3,617 | 2,978 |
Other | 8,184 | 8,283 | 8,952 |
Less: Valuation allowance | (49,337) | (70,241) | (69,928) |
Net deferred tax assets | 17,830 | 24,206 | 31,578 |
Other | (4,817) | (5,032) | (7,427) |
Property, plant and equipment | (128,206) | (141,231) | (147,265) |
Deferred tax liabilities | (133,023) | (146,263) | (154,692) |
Net deferred tax liabilities | $ (115,193) | $ (122,057) | $ (123,114) |
Income taxes - Reconciliatio100
Income taxes - Reconciliation of unrecognized tax benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of unrecognized tax benefits | |||
Balance at the beginning of the year | $ 318 | $ 3,678 | $ 3,437 |
Additional uncertain tax provision identified during the year | 215 | 78 | 78 |
Increase to uncertain tax provision on prior year positions | 27 | 4 | 236 |
Uncertain tax provisions settled during the year | 0 | (3,308) | |
Decreases as a result of expiration of the statute of limitations | (82) | (124) | (35) |
Foreign exchange | 54 | ||
Foreign exchange | (10) | (38) | |
Balance at the end of the year | 532 | 318 | 3,678 |
Principal | |||
Reconciliation of unrecognized tax benefits | |||
Balance at the beginning of the year | 249 | 2,967 | 2,966 |
Additional uncertain tax provision identified during the year | 197 | 61 | 62 |
Increase to uncertain tax provision on prior year positions | 17 | 0 | 0 |
Uncertain tax provisions settled during the year | 0 | (2,668) | |
Decreases as a result of expiration of the statute of limitations | (69) | (104) | (30) |
Foreign exchange | 44 | ||
Foreign exchange | (7) | (31) | |
Balance at the end of the year | 438 | 249 | 2,967 |
Interest | |||
Reconciliation of unrecognized tax benefits | |||
Balance at the beginning of the year | 21 | 656 | 416 |
Additional uncertain tax provision identified during the year | 1 | 4 | 7 |
Increase to uncertain tax provision on prior year positions | 7 | 4 | 236 |
Uncertain tax provisions settled during the year | 0 | (640) | |
Decreases as a result of expiration of the statute of limitations | (3) | (2) | (2) |
Foreign exchange | 0 | ||
Foreign exchange | (1) | (1) | |
Balance at the end of the year | 26 | 21 | 656 |
Penalties | |||
Reconciliation of unrecognized tax benefits | |||
Balance at the beginning of the year | 48 | 55 | 55 |
Additional uncertain tax provision identified during the year | 17 | 13 | 9 |
Increase to uncertain tax provision on prior year positions | 3 | 0 | 0 |
Uncertain tax provisions settled during the year | 0 | 0 | |
Decreases as a result of expiration of the statute of limitations | (10) | (18) | (3) |
Foreign exchange | 10 | ||
Foreign exchange | (2) | (6) | |
Balance at the end of the year | $ 68 | $ 48 | $ 55 |
Interest expense (Details)
Interest expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interest Expense [Abstract] | |||
Interest expense on long-term debt and obligations under capital lease | $ 29,425 | $ 27,090 | $ 27,380 |
Withholding tax provision classified as interest | 0 | 0 | (1,476) |
Interest on legal settlements | (28) | (979) | 3,294 |
Amortization of debt issuance costs and discount on secured term loan | 3,682 | 3,044 | 2,903 |
Interest capitalized | (624) | 0 | 0 |
Total interest expense | $ 32,455 | $ 29,155 | $ 32,101 |
Supplemental cash flow infor102
Supplemental cash flow information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash paid during the period for: | |||
Interest | $ 30,329 | $ 40,930 | $ 27,828 |
Income taxes, net of refunds | 19,838 | 19,804 | $ 18,306 |
Increase (decrease) in accounts payable related to acquisition of property, plant, and equipment | $ 661 | $ (223) |
Restricted cash (Details)
Restricted cash (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Restricted Cash and Cash Equivalents Items | ||
Restricted cash | $ 3,922 | $ 2,585 |
Other assets | ||
Restricted Cash and Cash Equivalents Items | ||
Restricted cash classified as long-term | 801 | 755 |
Cash deposits required to be held with lending banks as collateral | ||
Restricted Cash and Cash Equivalents Items | ||
Restricted cash | 801 | 755 |
Prepaid customer deposits which will be released to Belmond under its revenue recognition policy | ||
Restricted Cash and Cash Equivalents Items | ||
Restricted cash | 2,488 | 1,341 |
Bonds and guarantees | ||
Restricted Cash and Cash Equivalents Items | ||
Restricted cash | $ 633 | $ 489 |
Shareholders' equity - Narrativ
Shareholders' equity - Narratives (Details) | 12 Months Ended | |
Dec. 31, 2017vote / shares$ / sharesshares | Dec. 31, 2016$ / sharesshares | |
Class of Stock | ||
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 | ||
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 | ||
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 | ||
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 | ||
Preferred stock reserved for issuance | 500,000 |
Shareholders' equity - Sharehol
Shareholders' equity - Shareholders' rights plan (Details) | 12 Months Ended |
Dec. 31, 2017multiplier$ / sharesshares | |
Class of Stock | |
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 | |
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 | |
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 pla106
Share-based compensation plans - Narratives (Details) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2017USD ($)share_based_planshares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($) | Dec. 31, 2012shares | Dec. 31, 2010shares | Jun. 30, 2009shares | |
Share-based compensation plans | ||||||
Number of share-based compensation plans | share_based_plan | 2 | |||||
Compensation cost | $ | $ 5,809 | $ 6,272 | $ 6,707 | |||
Cash received from exercised options and vested awards | $ | 305 | $ 17 | $ 35 | |||
Total unrecognized compensation cost related to unexercised stock options and unvested share awards | $ | $ 6,531 | |||||
Total unrecognized compensation cost related to unexercised stock options and unvested share awards, recognition period (in months) | 30 months | |||||
2009 share award and incentive plan | Class A common shares | ||||||
Share-based compensation plans | ||||||
Number of shares reserved for issuance | 1,084,500 | |||||
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 | 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 | $ | $ 8 | |||||
Number of options vested during the period | 0 | |||||
Granted (in shares) | 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 | 15,300 | |||||
Share options | 2009 share award and incentive plan | Class A common shares | ||||||
Share-based compensation plans | ||||||
Fair value of options exercised | $ | $ 505 | |||||
Number of options vested during the period | 588,739 | |||||
Granted (in shares) | 581,300 | 518,300 | ||||
Total fair value of stock options granted | $ | $ 1,887 | |||||
Fair value of options that became exercisable during the period | $ | $ 2,158 | |||||
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 | 1,271,738 | |||||
Fair value of awards issued during the period | $ | $ 4,923 | |||||
Fair value of shares vested in the period | $ | $ 3,925 | |||||
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 | 687,335 | |||||
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 | 584,403 | |||||
Restricted Stock | 2009 share award and incentive plan | Class A common shares | ||||||
Share-based compensation plans | ||||||
Options, vested and expected to vest, outstanding, number | 0 |
Share-based compensation pla107
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, 2017 | Dec. 31, 2016 | |
2004 stock option plans | ||
Number of shares subject to options | ||
Outstanding (in shares) | 66,350 | 85,650 |
Granted (in shares) | 0 | |
Exercised (in shares) | (3,907) | (2,548) |
Forfeited, cancelled or expired (in shares) | (47,143) | (16,752) |
Outstanding (in shares) | 15,300 | 66,350 |
Exercisable (in shares) | 15,300 | |
Weighted average exercise price | ||
Outstanding, weighted average exercise price (in dollars per share) | $ 39.63 | $ 36.30 |
Exercised, weighted average exercise price (in dollars per share) | 5.89 | 5.89 |
Forfeited, cancelled or expired, weighted average exercise price (in dollars per share) | 47.90 | 27.75 |
Outstanding, weighted average exercise price (in dollars per share) | 15.99 | $ 39.63 |
Exercisable (in dollars per share) | $ 15.99 | |
Weighted average remaining contractual life | ||
Outstanding, weighted average remaining contractual life | 8 months 12 days | |
Exercisable, weighted average remaining contractual life | 8 months 12 days | |
Aggregate intrinsic value | ||
Outstanding, aggregate intrinsic value | $ 54 | |
Exercisable, aggregate intrinsic value | $ 54 | |
2009 share award and incentive plan | ||
Number of shares subject to options | ||
Outstanding (in shares) | 2,644,489 | 2,702,957 |
Granted (in shares) | 581,300 | 518,300 |
Exercised (in shares) | (107,552) | (59,833) |
Forfeited, cancelled or expired (in shares) | (428,830) | (516,935) |
Outstanding (in shares) | 2,689,407 | 2,644,489 |
Exercisable (in shares) | 1,516,388 | |
Weighted average exercise price | ||
Outstanding, weighted average exercise price (in dollars per share) | $ 11.17 | $ 10.97 |
Granted, weighted average exercise price (in dollars per share) | 12.59 | 11.61 |
Exercised, weighted average exercise price (in dollars per share) | 8.76 | 9.35 |
Forfeited, cancelled or expired, weighted average exercise price (in dollars per share) | 11.22 | 10.77 |
Outstanding, weighted average exercise price (in dollars per share) | 10.75 | $ 11.17 |
Exercisable (in dollars per share) | $ 11.34 | |
Weighted average remaining contractual life | ||
Outstanding, weighted average remaining contractual life | 7 years 3 months 18 days | |
Exercisable, weighted average remaining contractual life | 6 years | |
Aggregate intrinsic value | ||
Outstanding, aggregate intrinsic value | $ 2,940 | |
Exercisable, aggregate intrinsic value | $ 2,087 |
Share-based compensation pla108
Share-based compensation plans - Schedule of options outstanding (Details) - Share options - Class A common shares | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
2004 stock option plans | |
Share-based compensation plans | |
Outstanding (in shares) | 15,300 |
Exercisable (in shares) | 15,300 |
2004 stock option plans | Exercise price $5.89 | |
Share-based compensation plans | |
Outstanding (in shares) | 8,500 |
Exercisable (in shares) | 8,500 |
Remaining contractual lives in 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 |
2004 stock option plans | Exercise price $35.85 | |
Share-based compensation plans | |
Outstanding (in shares) | 2,600 |
Exercisable (in shares) | 2,600 |
Remaining contractual lives in 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 |
2004 stock option plans | Exercise price $46.08 | |
Share-based compensation plans | |
Outstanding (in shares) | 2,200 |
Exercisable (in shares) | 2,200 |
Remaining contractual lives in 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 |
2004 stock option plans | Exercise price $51.90 | |
Share-based compensation plans | |
Outstanding (in shares) | 2,000 |
Exercisable (in shares) | 2,000 |
Remaining contractual lives in 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 |
2009 share award and incentive plan | |
Share-based compensation plans | |
Outstanding (in shares) | 2,689,407 |
Exercisable (in shares) | 1,516,388 |
2009 share award and incentive plan | Exercise price $8.91 | |
Share-based compensation plans | |
Outstanding (in shares) | 24,800 |
Exercisable (in shares) | 24,800 |
Remaining contractual lives in years | 1 year 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) | 13,600 |
Exercisable (in shares) | 13,600 |
Remaining contractual lives in years | 2 years 5 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) | 54,650 |
Exercisable (in shares) | 54,650 |
Remaining contractual lives in years | 2 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) | 44,600 |
Exercisable (in shares) | 44,600 |
Remaining contractual lives in years | 3 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) | 132,250 |
Exercisable (in shares) | 132,250 |
Remaining contractual lives in years | 3 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 | 4 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) | 50,600 |
Exercisable (in shares) | 50,600 |
Remaining contractual lives in years | 4 years 5 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) | 152,050 |
Exercisable (in shares) | 152,050 |
Remaining contractual lives in years | 4 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 $9.95 | |
Share-based compensation plans | |
Outstanding (in shares) | 31,700 |
Exercisable (in shares) | 31,700 |
Remaining contractual lives in years | 5 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 | $ 9.95 |
2009 share award and incentive plan | Exercise price $11.74 | |
Share-based compensation plans | |
Outstanding (in shares) | 82,800 |
Exercisable (in shares) | 82,800 |
Remaining contractual lives in years | 5 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 | $ 11.74 |
2009 share award and incentive plan | Exercise price $14.51 | |
Share-based compensation plans | |
Outstanding (in shares) | 184,450 |
Exercisable (in shares) | 184,450 |
Remaining contractual lives in years | 6 years |
Exercise prices for outstanding options (in dollars per share) | $ / shares | $ 14.51 |
Exercise prices for exercisable options (in dollars per share) | $ / shares | $ 14.51 |
2009 share award and incentive plan | Exercise price $14.08 | |
Share-based compensation plans | |
Outstanding (in shares) | 97,100 |
Exercisable (in shares) | 97,100 |
Remaining contractual lives in years | 6 years 6 months |
Exercise prices for outstanding options (in dollars per share) | $ / shares | $ 14.08 |
Exercise prices for exercisable options (in dollars per share) | $ / shares | $ 14.08 |
2009 share award and incentive plan | Exercise price $11.57 | |
Share-based compensation plans | |
Outstanding (in shares) | 251,083 |
Exercisable (in shares) | 251,083 |
Remaining contractual lives in years | 7 years |
Exercise prices for outstanding options (in dollars per share) | $ / shares | $ 11.57 |
Exercise prices for exercisable options (in dollars per share) | $ / shares | $ 11.57 |
2009 share award and incentive plan | Exercise price $12.50 | |
Share-based compensation plans | |
Outstanding (in shares) | 79,000 |
Exercisable (in shares) | 39,650 |
Remaining contractual lives in years | 7 years 6 months |
Exercise prices for outstanding options (in dollars per share) | $ / shares | $ 12.50 |
Exercise prices for exercisable options (in dollars per share) | $ / shares | $ 12.50 |
2009 share award and incentive plan | Exercise price $13.75 | |
Share-based compensation plans | |
Outstanding (in shares) | 96,165 |
Exercisable (in shares) | 48,083 |
Remaining contractual lives in years | 7 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 | $ 13.75 |
2009 share award and incentive plan | Exercise price $8.98 | |
Share-based compensation plans | |
Outstanding (in shares) | 332,709 |
Exercisable (in shares) | 163,493 |
Remaining contractual lives in years | 7 years 10 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 | $ 8.98 |
2009 share award and incentive plan | Exercise Price $9.64 | |
Share-based compensation plans | |
Outstanding (in shares) | 152,900 |
Exercisable (in shares) | 38,225 |
Remaining contractual lives in years | 8 years 5 months 24 days |
Exercise prices for outstanding options (in dollars per share) | $ / shares | $ 9.64 |
Exercise prices for exercisable options (in dollars per share) | $ / shares | $ 9.64 |
2009 share award and incentive plan | Exercise Price $12.75 | |
Share-based compensation plans | |
Outstanding (in shares) | 301,450 |
Exercisable (in shares) | 75,554 |
Remaining contractual lives in years | 8 years 10 months 19 days |
Exercise prices for outstanding options (in dollars per share) | $ / shares | $ 12.75 |
Exercise prices for exercisable options (in dollars per share) | $ / shares | $ 12.75 |
2009 share award and incentive plan | Exercise Price $12.25 | |
Share-based compensation plans | |
Outstanding (in shares) | 416,700 |
Exercisable (in shares) | 0 |
Remaining contractual lives in years | 10 years |
Exercise prices for outstanding options (in dollars per share) | $ / shares | $ 12.25 |
Exercise prices for exercisable options (in dollars per share) | $ / shares | $ 0 |
2009 share award and incentive plan | Exercise Price $13.45 | |
Share-based compensation plans | |
Outstanding (in shares) | 159,100 |
Exercisable (in shares) | 0 |
Remaining contractual lives in years | 9 years 6 months |
Exercise prices for outstanding options (in dollars per share) | $ / shares | $ 13.45 |
Exercise prices for exercisable options (in dollars per share) | $ / shares | $ 0 |
Share-based compensation pla109
Share-based compensation plans - Fair value assumptions for share-based compensation plans (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based compensation plans | |||
Expected dividends (usd per share) | $ 0 | $ 0 | $ 0 |
Share options | |||
Share-based compensation plans | |||
Expected share price volatility, minimum (percentage) | 27.00% | 29.00% | 28.00% |
Expected share price volatility, maximum (percentage) | 34.00% | 40.00% | 58.00% |
Risk-free interest rate, minimum (percentage) | 1.50% | 0.76% | 0.65% |
Risk-free interest rate, maximum (percentage) | 2.14% | 1.84% | 1.83% |
Share options | Minimum | |||
Share-based compensation plans | |||
Expected life of awards (in years) | 2 years 6 months | 2 years 6 months | 2 years 6 months |
Share options | Maximum | |||
Share-based compensation plans | |||
Expected life of awards (in years) | 5 years 6 months | 5 years 6 months | 6 years 10 months 24 days |
Share options | Class A common shares | Vesting December 9, 2018 | 2009 share award and incentive plan | |||
Share-based compensation plans | |||
Granted (in shares) | 104,425 | ||
Deferred Compensation Arrangement with Individual, Exercise Price (usd per share) | $ 12.25 | ||
Expected share price volatility (as a percent) | 27.00% | ||
Risk-free interest rate (as a percent) | 1.92% | ||
Expected dividends (usd per share) | $ 0 | ||
Expected life of awards (in years) | 2 years 6 months | ||
Share options | Class A common shares | Vesting December 9, 2019 | 2009 share award and incentive plan | |||
Share-based compensation plans | |||
Granted (in shares) | 104,425 | ||
Deferred Compensation Arrangement with Individual, Exercise Price (usd per share) | $ 12.25 | ||
Expected share price volatility (as a percent) | 27.00% | ||
Risk-free interest rate (as a percent) | 1.92% | ||
Expected dividends (usd per share) | $ 0 | ||
Expected life of awards (in years) | 3 years 6 months | ||
Share options | Class A common shares | Vesting December 9, 2020 | 2009 share award and incentive plan | |||
Share-based compensation plans | |||
Granted (in shares) | 104,425 | ||
Deferred Compensation Arrangement with Individual, Exercise Price (usd per share) | $ 12.25 | ||
Expected share price volatility (as a percent) | 28.00% | ||
Risk-free interest rate (as a percent) | 2.14% | ||
Expected dividends (usd per share) | $ 0 | ||
Expected life of awards (in years) | 4 years 6 months | ||
Share options | Class A common shares | Vesting December 9, 2021 | 2009 share award and incentive plan | |||
Share-based compensation plans | |||
Granted (in shares) | 104,425 | ||
Deferred Compensation Arrangement with Individual, Exercise Price (usd per share) | $ 12.25 | ||
Expected share price volatility (as a percent) | 31.00% | ||
Risk-free interest rate (as a percent) | 2.14% | ||
Expected dividends (usd per share) | $ 0 | ||
Expected life of awards (in years) | 5 years 6 months | ||
Share options | Class A common shares | Vesting June 11, 2018 | 2009 share award and incentive plan | |||
Share-based compensation plans | |||
Granted (in shares) | 40,900 | ||
Deferred Compensation Arrangement with Individual, Exercise Price (usd per share) | $ 13.45 | ||
Expected share price volatility (as a percent) | 29.00% | ||
Risk-free interest rate (as a percent) | 1.50% | ||
Expected dividends (usd per share) | $ 0 | ||
Expected life of awards (in years) | 2 years 6 months | ||
Share options | Class A common shares | Vesting June 11, 2019 | 2009 share award and incentive plan | |||
Share-based compensation plans | |||
Granted (in shares) | 40,900 | ||
Deferred Compensation Arrangement with Individual, Exercise Price (usd per share) | $ 13.45 | ||
Expected share price volatility (as a percent) | 29.00% | ||
Risk-free interest rate (as a percent) | 1.50% | ||
Expected dividends (usd per share) | $ 0 | ||
Expected life of awards (in years) | 3 years 6 months | ||
Share options | Class A common shares | Vesting June 11, 2020 | 2009 share award and incentive plan | |||
Share-based compensation plans | |||
Granted (in shares) | 40,900 | ||
Deferred Compensation Arrangement with Individual, Exercise Price (usd per share) | $ 13.45 | ||
Expected share price volatility (as a percent) | 30.00% | ||
Risk-free interest rate (as a percent) | 1.77% | ||
Expected dividends (usd per share) | $ 0 | ||
Expected life of awards (in years) | 4 years 6 months | ||
Share options | Class A common shares | Vesting June 11, 2021 | 2009 share award and incentive plan | |||
Share-based compensation plans | |||
Granted (in shares) | 40,900 | ||
Deferred Compensation Arrangement with Individual, Exercise Price (usd per share) | $ 13.45 | ||
Expected share price volatility (as a percent) | 34.00% | ||
Risk-free interest rate (as a percent) | 1.77% | ||
Expected dividends (usd per share) | $ 0 | ||
Expected life of awards (in years) | 5 years 6 months | ||
Restricted Stock without Performance Criteria Share-based Payments | Vesting June 11, 2018 | 2009 share award and incentive plan | |||
Share-based compensation plans | |||
Granted (in shares) | 56,390 | ||
Deferred Compensation Arrangement with Individual, Exercise Price (usd per share) | $ 0.01 | ||
Restricted Stock without Performance Criteria Share-based Payments | Vesting June 11, 2020 | 2009 share award and incentive plan | |||
Share-based compensation plans | |||
Granted (in shares) | 48,872 | ||
Deferred Compensation Arrangement with Individual, Exercise Price (usd per share) | $ 0.01 | ||
Restricted Stock without Performance Criteria Share-based Payments | On Retirement | 2009 share award and incentive plan | |||
Share-based compensation plans | |||
Granted (in shares) | 11,278 | ||
Deferred Compensation Arrangement with Individual, Exercise Price (usd per share) | $ 0.01 | ||
Restricted Stock without Performance Criteria Share-based Payments | Vesting March 17, 2018 | 2009 share award and incentive plan | |||
Share-based compensation plans | |||
Granted (in shares) | 34,450 | ||
Deferred Compensation Arrangement with Individual, Exercise Price (usd per share) | $ 0.01 | ||
Restricted Stock without Performance Criteria Share-based Payments | Vesting March 17, 2019 | 2009 share award and incentive plan | |||
Share-based compensation plans | |||
Granted (in shares) | 34,450 | ||
Deferred Compensation Arrangement with Individual, Exercise Price (usd per share) | $ 0.01 | ||
Restricted Stock without Performance Criteria Share-based Payments | Vesting March 17, 2020 | 2009 share award and incentive plan | |||
Share-based compensation plans | |||
Granted (in shares) | 117,231 | ||
Deferred Compensation Arrangement with Individual, Exercise Price (usd per share) | $ 0.01 | ||
Restricted Stock without Performance Criteria Share-based Payments | Vesting March 17, 2021 | 2009 share award and incentive plan | |||
Share-based compensation plans | |||
Granted (in shares) | 34,450 | ||
Deferred Compensation Arrangement with Individual, Exercise Price (usd per share) | $ 0.01 | ||
Restricted Stock with Performance Criteria Share-based Payments | Vesting March 17, 2020 | 2009 share award and incentive plan | |||
Share-based compensation plans | |||
Granted (in shares) | 228,500 | ||
Deferred Compensation Arrangement with Individual, Exercise Price (usd per share) | $ 0.01 |
Share-based compensation pla110
Share-based compensation plans - Schedule of status of awards other than options, and changes during the period (Details) - 2009 share award and incentive plan - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Deferred shares | Class A common shares | ||
Shares | ||
Outstanding (in shares) | 1,193,775 | 1,162,187 |
Granted (in shares) | 565,621 | 624,261 |
Vested and issued (in shares) | (334,958) | (331,299) |
Forfeited, cancelled or expired (in shares) | (152,700) | (261,374) |
Outstanding (in shares) | 1,271,738 | 1,193,775 |
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 | $ 15,566 | |
On Retirement | Restricted Stock without Performance Criteria Share-based Payments | ||
Shares | ||
Granted (in shares) | 11,278 |
Commitments and contingencies -
Commitments and contingencies - Narratives (Details) BRL in Thousands, $ in Thousands | Mar. 02, 2010USD ($) | Jun. 30, 2015USD ($) | Apr. 30, 2014case | Dec. 31, 2017USD ($)installment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2017BRL | Nov. 28, 2017 | Aug. 31, 2016 | Jul. 31, 2015USD ($) | Mar. 31, 2015USD ($) | Mar. 31, 2015BRL | Feb. 28, 2013USD ($) |
Commitments | ||||||||||||||
Operating leases, future minimum payments due, next 12 months | $ 12,072 | |||||||||||||
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% | |||||||||||||
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% | |||||||||||||
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 | |||||||||||||
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 | |||||||||||||
Rental expense | $ 14,805 | $ 13,037 | $ 10,675 | |||||||||||
Peru Belmond Hotels | ||||||||||||||
Commitments | ||||||||||||||
Ownership interest | 50.00% | |||||||||||||
Infringement litigation of Cipriani | ||||||||||||||
Commitments | ||||||||||||||
Amount receivable from defendants in installments | $ 9,833 | |||||||||||||
Amount received from defendants | $ 3,947 | $ 1,178 | ||||||||||||
Period for receivable amount from defendants in installments (over) (in years) | 5 years | |||||||||||||
Ubud Hanging Gardens | ||||||||||||||
Commitments | ||||||||||||||
Litigation settlement amount | $ 8,500 | |||||||||||||
Number of cases dismissed | case | 8 | |||||||||||||
Number of cases appealed | case | 5 | |||||||||||||
Impairment of long-lived assets to be disposed of | $ 7,031 | |||||||||||||
Ubud Hanging Gardens | Appellate Court | ||||||||||||||
Commitments | ||||||||||||||
Number of cases dismissed | case | 4 | |||||||||||||
Ubud Hanging Gardens | Indonesian Supreme Court | ||||||||||||||
Commitments | ||||||||||||||
Number of cases dismissed | case | 2 | |||||||||||||
Ubud Hanging Gardens | Indonesian Supreme Court | Pending | ||||||||||||||
Commitments | ||||||||||||||
Number of cases dismissed | case | 2 | |||||||||||||
Copacabana Palace | Unasserted claim | ||||||||||||||
Commitments | ||||||||||||||
Maximum potential fine, not accrued | $ 27,000 | |||||||||||||
Belmond Hotel das Cataratas | ||||||||||||||
Commitments | ||||||||||||||
Proposed change in rent rate | 25.00% | |||||||||||||
Belmond Hotel das Cataratas | Favorable lease assets | ||||||||||||||
Commitments | ||||||||||||||
Estimate of possible loss | $ 5,139 | BRL 17,000 | ||||||||||||
Amount reserved | 7,610 | BRL 25,174 | ||||||||||||
Porto Cupecoy | Settlement with Taxing Authority | ||||||||||||||
Commitments | ||||||||||||||
Estimate of possible loss | $ 16,500 | |||||||||||||
Purchase of property, plant and equipment | ||||||||||||||
Commitments | ||||||||||||||
Purchase commitment | $ 19,464 | $ 7,772 |
Commitments and contingencie112
Commitments and contingencies - Future operating lease payments (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity | |
2,018 | $ 12,072 |
2,019 | 10,879 |
2,020 | 10,919 |
2,021 | 11,422 |
2,022 | 9,283 |
2023 and thereafter | 141,832 |
Future rental payments under operating leases | $ 196,407 |
Fair value measurements - Summa
Fair value measurements - Summary of valuation by the fair value hierarchy (Details) - Recurring basis - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets at fair value: | ||
Derivative Asset | $ 1,348 | $ 0 |
Total assets | 1,348 | 0 |
Liabilities at fair value: | ||
Derivative Liability | (430) | (3,364) |
Total net assets | 918 | (3,364) |
Level 1 | ||
Assets at fair value: | ||
Derivative Asset | 0 | 0 |
Total assets | 0 | 0 |
Liabilities at fair value: | ||
Derivative Liability | 0 | 0 |
Total net assets | 0 | 0 |
Level 2 | ||
Assets at fair value: | ||
Derivative Asset | 1,348 | 0 |
Total assets | 1,348 | 0 |
Liabilities at fair value: | ||
Derivative Liability | (430) | (3,364) |
Total net assets | 918 | (3,364) |
Level 3 | ||
Assets at fair value: | ||
Derivative Asset | 0 | 0 |
Total assets | 0 | 0 |
Liabilities at fair value: | ||
Derivative Liability | 0 | 0 |
Total net assets | $ 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, 2017 | Dec. 31, 2016 |
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 | $ 724,208 | $ 602,083 |
Level 3 | ||
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 | 724,208 | 602,083 |
Fair value - Total long-term debt, before deduction of discount on secured term loan and debt issuance costs, excluding obligations under capital leases | $ 728,994 | $ 626,613 |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Valuation of financial assets and liabilities by the fair value hierarchy | |||
Impairment of property, plant and equipment | $ (8,216,000) | $ (1,007,000) | $ 0 |
Impairment of goodwill of discontinued operations | (5,500,000) | 0 | (9,796,000) |
Property, plant and equipment | |||
Valuation of financial assets and liabilities by the fair value hierarchy | |||
Impairment of property, plant and equipment | (8,216,000) | (1,007,000) | |
Fair value measurements, non-recurring | |||
Valuation of financial assets and liabilities by the fair value hierarchy | |||
Property, plant and equipment, fair value disclosure | 5,955,000 | 0 | |
Goodwill of discontinued operations, fair value disclosure | 0 | 10,050,000 | |
Fair value measurements, non-recurring | Level 1 | |||
Valuation of financial assets and liabilities by the fair value hierarchy | |||
Property, plant and equipment, fair value disclosure | 0 | 0 | |
Goodwill of discontinued operations, fair value disclosure | 0 | 0 | |
Fair value measurements, non-recurring | Level 2 | |||
Valuation of financial assets and liabilities by the fair value hierarchy | |||
Property, plant and equipment, fair value disclosure | 0 | 0 | |
Goodwill of discontinued operations, fair value disclosure | 0 | 0 | |
Fair value measurements, non-recurring | Level 3 | |||
Valuation of financial assets and liabilities by the fair value hierarchy | |||
Property, plant and equipment, fair value disclosure | 5,955,000 | $ 0 | |
Goodwill of discontinued operations, fair value disclosure | $ 0 | $ 10,050,000 |
Fair value measurements - Narra
Fair value measurements - Narratives (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Valuation of financial assets and liabilities by the fair value hierarchy | |||
Impairment of property, plant and equipment | $ 8,216,000 | $ 1,007,000 | $ 0 |
Impairment of goodwill | 5,500,000 | 0 | 9,796,000 |
Fair value measurements, non-recurring | |||
Valuation of financial assets and liabilities by the fair value hierarchy | |||
Property, plant and equipment, fair value disclosure | 5,955,000 | 0 | |
Goodwill, fair value disclosure | 0 | 10,050,000 | |
Cap Juluca | |||
Valuation of financial assets and liabilities by the fair value hierarchy | |||
Impairment of goodwill | 5,500,000 | ||
Goodwill, fair value disclosure | 5,500,000 | ||
Cap Juluca | Fair value measurements, non-recurring | |||
Valuation of financial assets and liabilities by the fair value hierarchy | |||
Goodwill, fair value disclosure | 0 | ||
Belmond Jimbaran Puri, Belmond La Residence Phou Vao, and Belmond Northern Belle | |||
Valuation of financial assets and liabilities by the fair value hierarchy | |||
Impairment of goodwill | 5,698,000 | ||
Belmond Grand Hotel Europe | |||
Valuation of financial assets and liabilities by the fair value hierarchy | |||
Impairment of goodwill | 4,098,000 | ||
Property, plant and equipment | |||
Valuation of financial assets and liabilities by the fair value hierarchy | |||
Impairment of property, plant and equipment | 8,216,000 | 1,007,000 | |
Belmond Orcaella | Property, plant and equipment | |||
Valuation of financial assets and liabilities by the fair value hierarchy | |||
Impairment of property, plant and equipment | 1,007,000 | ||
Belmond Road to Mandalay and Belmond Northern Belle | |||
Valuation of financial assets and liabilities by the fair value hierarchy | |||
Impairment of property, plant and equipment | 8,216,000 | ||
Carrying value | Belmond Jimbaran Puri, Belmond La Residence Phou Vao, and Belmond Northern Belle | |||
Valuation of financial assets and liabilities by the fair value hierarchy | |||
Goodwill, fair value disclosure | 5,698,000 | ||
Carrying value | Belmond Grand Hotel Europe | |||
Valuation of financial assets and liabilities by the fair value hierarchy | |||
Goodwill, fair value disclosure | 14,148,000 | ||
Carrying value | Belmond Road to Mandalay and Belmond Northern Belle | |||
Valuation of financial assets and liabilities by the fair value hierarchy | |||
Property, plant and equipment, fair value disclosure | 14,171,000 | ||
Carrying value | Belmond Orcaella | |||
Valuation of financial assets and liabilities by the fair value hierarchy | |||
Property, plant and equipment, fair value disclosure | 1,007,000 | ||
Estimate of Fair Value Measurement | Belmond Jimbaran Puri, Belmond La Residence Phou Vao, and Belmond Northern Belle | |||
Valuation of financial assets and liabilities by the fair value hierarchy | |||
Goodwill, fair value disclosure | 0 | ||
Estimate of Fair Value Measurement | Belmond Grand Hotel Europe | |||
Valuation of financial assets and liabilities by the fair value hierarchy | |||
Goodwill, fair value disclosure | $ 10,050,000 | ||
Estimate of Fair Value Measurement | Belmond Road to Mandalay and Belmond Northern Belle | |||
Valuation of financial assets and liabilities by the fair value hierarchy | |||
Property, plant and equipment, fair value disclosure | $ 5,955,000 | ||
Estimate of Fair Value Measurement | Belmond Orcaella | |||
Valuation of financial assets and liabilities by the fair value hierarchy | |||
Property, plant and equipment, fair value disclosure | $ 0 |
Derivatives and hedging acti117
Derivatives and hedging activities - Notional amounts of outstanding interest rate derivatives (Details) € in Thousands, $ in Thousands | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2016USD ($) | Dec. 31, 2016EUR (€) |
Interest rate swaps | ||||
Derivative | ||||
Derivative, notional amount | $ 243,000 | € 89,500 | $ 210,756 | € 72,938 |
Interest rate caps | ||||
Derivative | ||||
Derivative, notional amount | $ 17,200 | $ 17,200 |
Derivatives and hedging acti118
Derivatives and hedging activities - Fair value of derivative financial instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair value of derivative financial instruments | ||
Total | $ 918 | |
Derivatives designated in a cash flow hedging relationship | ||
Fair value of derivative financial instruments | ||
Total | 918 | $ (3,364) |
Derivatives designated in a cash flow hedging relationship | Interest rate swaps | Other assets | ||
Fair value of derivative financial instruments | ||
Fair value of assets | 1,776 | 0 |
Derivatives designated in a cash flow hedging relationship | Interest rate swaps | Accrued liabilities | ||
Fair value of derivative financial instruments | ||
Fair value of liabilities | (858) | (2,310) |
Derivatives designated in a cash flow hedging relationship | Interest rate swaps | Other liabilities | ||
Fair value of derivative financial instruments | ||
Fair value of liabilities | $ 0 | $ (1,054) |
Derivatives and hedging acti119
Derivatives and hedging activities - Narratives (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative | |||
Gain (loss) recorded in other comprehensive income/(loss) | $ (2,745) | $ 4,975 | $ 18,221 |
Fair value of derivatives in a net asset position | 918 | ||
Fair value of derivatives in a net liability position | 3,364 | ||
Assets required to settle obligations under derivatives with credit-risk-related contingent features upon breach of provisions, termination value | (942) | (3,370) | |
Fair value of non-derivative hedging instruments | 213,350 | $ 153,472 | |
Interest rate swaps | |||
Derivative | |||
Loss on contract termination | 2,145 | ||
Amount accounted for in other comprehensive income/(loss), which is expected to be reclassified to interest expense in the next 12 months | $ 2,102 |
Accumulated other comprehens120
Accumulated other comprehensive loss - Schedule of accumulated other comprehensive income/(loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | |||
Beginning balance | $ 686,832 | $ 658,425 | $ 762,261 |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||
Amounts reclassified from AOCI, net of tax provision of $Nil, $860 and $Nil | (2,733) | (2,809) | |
Total other comprehensive losses, net of tax | 50,984 | (12,100) | (88,399) |
Ending balance | 698,836 | 686,832 | 658,425 |
Accumulated other comprehensive income/(loss) | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | |||
Beginning balance | (352,339) | (340,104) | (251,982) |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||
Other comprehensive income/(loss) before reclassifications, net of tax benefit of $Nil, ($50) and $73 | 48,284 | (15,044) | |
Amounts reclassified from AOCI, net of tax provision of $Nil, $860 and $Nil | 2,733 | 2,809 | |
Total other comprehensive losses, net of tax | 51,017 | (12,235) | (88,122) |
Ending balance | (301,322) | (352,339) | (340,104) |
Foreign currency translation adjustments | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | |||
Beginning balance | (337,053) | (326,070) | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||
Other comprehensive income/(loss) before reclassifications, net of tax benefit of $Nil, ($50) and $73 | 48,095 | (10,983) | |
Amounts reclassified from AOCI, net of tax provision of $Nil, $860 and $Nil | 692 | 0 | |
Total other comprehensive losses, net of tax | 48,787 | (10,983) | |
Ending balance | (288,266) | (337,053) | (326,070) |
Other Comprehensive Income (Loss) before Reclassifications, Tax | |||
Other comprehensive income before reclassifications, tax | 0 | (809) | |
Reclassification from AOCI, Current Period, Tax | |||
Amounts reclassified from AOCI, tax | 0 | 0 | |
Derivative financial instruments | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | |||
Beginning balance | (3,224) | (4,091) | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||
Other comprehensive income/(loss) before reclassifications, net of tax benefit of $Nil, ($50) and $73 | (121) | (1,942) | |
Amounts reclassified from AOCI, net of tax provision of $Nil, $860 and $Nil | 2,041 | 2,809 | |
Total other comprehensive losses, net of tax | 1,920 | 867 | |
Ending balance | (1,304) | (3,224) | (4,091) |
Other Comprehensive Income (Loss) before Reclassifications, Tax | |||
Other comprehensive income before reclassifications, tax | (50) | (889) | |
Reclassification from AOCI, Current Period, Tax | |||
Amounts reclassified from AOCI, tax | 860 | 1,111 | |
Pension liability | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | |||
Beginning balance | (12,062) | (9,943) | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||
Other comprehensive income/(loss) before reclassifications, net of tax benefit of $Nil, ($50) and $73 | 310 | (2,119) | |
Amounts reclassified from AOCI, net of tax provision of $Nil, $860 and $Nil | 0 | 0 | |
Total other comprehensive losses, net of tax | 310 | (2,119) | |
Ending balance | (11,752) | (12,062) | $ (9,943) |
Other Comprehensive Income (Loss) before Reclassifications, Tax | |||
Other comprehensive income before reclassifications, tax | 73 | (530) | |
Reclassification from AOCI, Current Period, Tax | |||
Amounts reclassified from AOCI, tax | $ 0 | $ 0 |
Accumulated other comprehens121
Accumulated other comprehensive loss - Reclassifications out of AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income | |||
Reclassification upon sale of operating unit | $ (153) | $ 938 | $ 20,275 |
Cash flows from derivative financial instruments related to interest payments made for the hedged debt instrument | 32,455 | 29,155 | $ 32,101 |
Total reclassifications for the period | 2,733 | 2,809 | |
Foreign currency translation adjustments | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | |||
Total reclassifications for the period | (692) | 0 | |
Derivative financial instruments | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | |||
Total reclassifications for the period | (2,041) | (2,809) | |
Reclassification out of AOCI | Foreign currency translation adjustments | (Loss)/gain on disposal of property, plant and equipment and equity method investments | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | |||
Reclassification upon sale of operating unit | 692 | 0 | |
Reclassification out of AOCI | Derivative financial instruments | Interest expense | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | |||
Cash flows from derivative financial instruments related to interest payments made for the hedged debt instrument | $ 2,041 | $ 2,809 |
Segment information (Details)
Segment information (Details) | 12 Months Ended |
Dec. 31, 2017restaurantsegment | |
Segment Reporting [Abstract] | |
Number of reportable segments | segment | 6 |
Number of restaurants | restaurant | 1 |
Segment information - Revenue b
Segment information - Revenue by segment (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Segment Reporting, Revenue Reconciling Item | ||||
Revenue | [1] | $ 560,999 | $ 549,824 | $ 551,385 |
Owned hotels | ||||
Segment Reporting, Revenue Reconciling Item | ||||
Revenue | 485,882 | 475,374 | 472,531 | |
Part owned trains and hotels | ||||
Segment Reporting, Revenue Reconciling Item | ||||
Revenue | 11,924 | 15,163 | 13,383 | |
Europe | Owned hotels | ||||
Segment Reporting, Revenue Reconciling Item | ||||
Revenue | 212,379 | 199,251 | 200,059 | |
North America | Owned hotels | ||||
Segment Reporting, Revenue Reconciling Item | ||||
Revenue | 149,284 | 145,868 | 148,103 | |
Rest of world | Owned hotels | ||||
Segment Reporting, Revenue Reconciling Item | ||||
Revenue | 124,219 | 130,255 | 124,369 | |
Owned trains and cruises | Owned trains and cruises | ||||
Segment Reporting, Revenue Reconciling Item | ||||
Revenue | 63,193 | 59,287 | 65,471 | |
Part-owned/managed hotels | Part owned trains and hotels | ||||
Segment Reporting, Revenue Reconciling Item | ||||
Revenue | 1,036 | 4,400 | 5,232 | |
Part-owned/managed trains | Part owned trains and hotels | ||||
Segment Reporting, Revenue Reconciling Item | ||||
Revenue | $ 10,888 | $ 10,763 | $ 8,151 | |
[1] | Includes revenue from related parties of $15,449,000, $15,458,000 and $13,123,000, respectively |
Segment information - Segment E
Segment information - Segment Earnings (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated | ||||
Central costs | $ (33,324) | $ (30,763) | $ (34,369) | |
Share-based compensation | (5,809) | (7,637) | (9,752) | |
Adjusted EBITDA | 124,032 | 128,163 | 119,471 | |
Net (losses)/earnings from continuing operations | (45,070) | 35,401 | 17,388 | |
Depreciation and amortization | 62,852 | 52,396 | 50,513 | |
Gain on extinguishment of debt | 0 | (1,200) | 0 | |
Interest income | [1] | (1,058) | (853) | (926) |
Interest expense | 32,455 | 29,155 | 32,101 | |
Foreign currency, net | 3,034 | (9,186) | 5,016 | |
Provision for income taxes | 6,554 | 16,368 | 17,041 | |
Share of (benefit from)/provision for income taxes of unconsolidated companies | (4,451) | 5,650 | 1,466 | |
EBITDA | 54,316 | 127,731 | 122,599 | |
Restructuring and other special items | 11,715 | 363 | 7,351 | |
Acquisition related costs | 14,032 | 0 | 0 | |
(Loss)/gain on disposal of property, plant and equipment and equity method investments | 153 | (938) | (20,275) | |
Impairment of goodwill and property, plant and equipment | 13,716 | 1,007 | 9,796 | |
Impairment of assets in unconsolidated companies | 30,100 | 0 | 0 | |
Owned hotels | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated | ||||
Segment Adjusted EBITDA | 127,975 | 130,039 | 129,432 | |
Part owned trains and hotels | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated | ||||
Segment Adjusted EBITDA | 30,770 | 32,206 | 26,961 | |
Europe | Owned hotels | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated | ||||
Segment Adjusted EBITDA | 73,687 | 67,590 | 66,349 | |
North America | Owned hotels | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated | ||||
Segment Adjusted EBITDA | 29,814 | 29,334 | 31,788 | |
Rest of world | Owned hotels | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated | ||||
Segment Adjusted EBITDA | 24,474 | 33,115 | 31,295 | |
Owned trains and cruises | Owned trains and cruises | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated | ||||
Segment Adjusted EBITDA | 4,420 | 4,318 | 7,199 | |
Part-owned/managed hotels | Part owned trains and hotels | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated | ||||
Segment Adjusted EBITDA | 6,782 | 6,299 | 7,115 | |
Part-owned/managed trains | Part owned trains and hotels | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated | ||||
Segment Adjusted EBITDA | $ 23,988 | $ 25,907 | $ 19,846 | |
[1] | Includes interest income from related parties of $0, $0, and $301,000, respectively |
Segment information - Reconcili
Segment information - Reconciliation of assets from segments to consolidated (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting, Asset Reconciling Item | |||
Total assets | [1] | $ 1,653,637 | $ 1,524,068 |
Unallocated corporate | |||
Segment Reporting, Asset Reconciling Item | |||
Total assets | 145,149 | 129,582 | |
Owned hotels | |||
Segment Reporting, Asset Reconciling Item | |||
Total assets | 1,346,938 | 1,218,013 | |
Part owned trains and hotels | |||
Segment Reporting, Asset Reconciling Item | |||
Total assets | 74,411 | 88,404 | |
Europe | Owned hotels | |||
Segment Reporting, Asset Reconciling Item | |||
Total assets | 575,584 | 504,758 | |
North America | Owned hotels | |||
Segment Reporting, Asset Reconciling Item | |||
Total assets | 518,493 | 468,088 | |
Rest of world | Owned hotels | |||
Segment Reporting, Asset Reconciling Item | |||
Total assets | 252,861 | 245,167 | |
Owned trains and cruises | Owned trains and cruises | |||
Segment Reporting, Asset Reconciling Item | |||
Total assets | 87,139 | 88,069 | |
Part-owned/managed hotels | Part owned trains and hotels | |||
Segment Reporting, Asset Reconciling Item | |||
Total assets | 21,894 | 20,007 | |
Part-owned/managed trains | Part owned trains and hotels | |||
Segment Reporting, Asset Reconciling Item | |||
Total assets | $ 52,517 | $ 68,397 | |
[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, 2017 and December 31, 2016 is Charleston Center LLC. These assets and liabilities at December 31, 2017 and December 31, 2016 are as follows: December 31, 2017 December 31, 2016 $’000 $’000 Assets Cash and cash equivalents 1,530 2,233Accounts receivable, net of allowances of $Nil and $Nil 3,623 3,066Prepaid expenses and other 935 365Inventories 1,360 1,296Total current assets 7,448 6,960 Property, plant and equipment, net of accumulated depreciation of $42,676 and $35,902 197,369 201,861Other assets 1,450 1,455Total assets 206,267 210,276 Liabilities Accounts payable 4,518 4,558Accrued liabilities 3,291 3,099Deferred revenue 2,835 1,714Current portion of long-term debt and obligations under capital leases 255 242Total current liabilities 10,899 9,613 Long-term debt and obligations under capital leases 112,069 111,968Other liabilities — 40Total liabilities 122,968 121,621See further description in Note 6, Variable interest entities. |
Segment information - Reconc126
Segment information - Reconciliation of other significant reconciling items from segments to consolidated (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting, Other Significant Reconciling Item | |||
Total capital expenditure to acquire property, plant and equipment | $ 67,830 | $ 55,104 | $ 56,395 |
Total investment in equity method investees | 64,644 | 79,327 | |
Total earnings from unconsolidated companies, net of tax | (10,213) | 11,013 | 9,075 |
Eastern & Oriental Express | |||
Segment Reporting, Other Significant Reconciling Item | |||
Total investment in equity method investees | 2,642 | 2,818 | |
Peru hotels | |||
Segment Reporting, Other Significant Reconciling Item | |||
Total investment in equity method investees | 20,869 | 19,769 | |
PeruRail | |||
Segment Reporting, Other Significant Reconciling Item | |||
Total investment in equity method investees | 38,138 | 53,652 | |
Buzios | |||
Segment Reporting, Other Significant Reconciling Item | |||
Total investment in equity method investees | 2,893 | 2,998 | |
Other | |||
Segment Reporting, Other Significant Reconciling Item | |||
Total investment in equity method investees | 102 | 90 | |
Unallocated corporate | |||
Segment Reporting, Other Significant Reconciling Item | |||
Total capital expenditure to acquire property, plant and equipment | 4,469 | 1,459 | 283 |
Owned hotels | Operating Segments | |||
Segment Reporting, Other Significant Reconciling Item | |||
Total capital expenditure to acquire property, plant and equipment | 55,434 | 40,763 | 44,697 |
Europe | Owned hotels | Operating Segments | |||
Segment Reporting, Other Significant Reconciling Item | |||
Total capital expenditure to acquire property, plant and equipment | 23,431 | 11,777 | 18,648 |
North America | Owned hotels | Operating Segments | |||
Segment Reporting, Other Significant Reconciling Item | |||
Total capital expenditure to acquire property, plant and equipment | 14,845 | 9,796 | 11,881 |
Rest of world | Owned hotels | Operating Segments | |||
Segment Reporting, Other Significant Reconciling Item | |||
Total capital expenditure to acquire property, plant and equipment | 17,158 | 19,190 | 14,168 |
Owned trains and cruises | Owned trains and cruises | Operating Segments | |||
Segment Reporting, Other Significant Reconciling Item | |||
Total capital expenditure to acquire property, plant and equipment | 7,927 | 12,882 | 11,415 |
Part-owned/managed hotels | |||
Segment Reporting, Other Significant Reconciling Item | |||
Total earnings from unconsolidated companies, net of tax | 1,037 | 1,112 | 106 |
Part-owned/managed trains | |||
Segment Reporting, Other Significant Reconciling Item | |||
Total earnings from unconsolidated companies, net of tax | $ (11,250) | $ 9,901 | $ 8,969 |
Segment information - Revenues
Segment information - Revenues and long-lived assets by location of property (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Revenues from External Customers and Long-Lived Assets | ||||
Revenue | [1] | $ 560,999 | $ 549,824 | $ 551,385 |
Total property, plant and equipment at book value | 1,168,044 | 1,074,676 | ||
Bermuda | ||||
Revenues from External Customers and Long-Lived Assets | ||||
Revenue | 0 | 0 | 0 | |
Total property, plant and equipment at book value | 0 | 0 | ||
Italy | ||||
Revenues from External Customers and Long-Lived Assets | ||||
Revenue | 136,538 | 128,671 | 132,385 | |
Total property, plant and equipment at book value | 336,263 | 294,773 | ||
United Kingdom | ||||
Revenues from External Customers and Long-Lived Assets | ||||
Revenue | 56,432 | 56,016 | 62,656 | |
Total property, plant and equipment at book value | 52,311 | 48,577 | ||
United States | ||||
Revenues from External Customers and Long-Lived Assets | ||||
Revenue | 112,677 | 108,238 | 107,965 | |
Total property, plant and equipment at book value | 334,634 | 343,342 | ||
Brazil | ||||
Revenues from External Customers and Long-Lived Assets | ||||
Revenue | 59,737 | 73,300 | 69,142 | |
Total property, plant and equipment at book value | 74,944 | 73,843 | ||
All other countries | ||||
Revenues from External Customers and Long-Lived Assets | ||||
Revenue | 195,615 | 183,599 | $ 179,237 | |
Total property, plant and equipment at book value | $ 369,892 | $ 314,141 | ||
[1] | Includes revenue from related parties of $15,449,000, $15,458,000 and $13,123,000, respectively |
Related party transactions (Det
Related party transactions (Details) € in Thousands | Apr. 19, 2016USD ($) | May 21, 2015USD ($) | May 21, 2015EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jun. 30, 2007 |
Related party transactions | |||||||
Revenue from related party | $ 15,449,000 | $ 15,458,000 | $ 13,123,000 | ||||
Great South Pacific Express | |||||||
Related party transactions | |||||||
Gross proceeds from divestiture of businesses, including reduction in debt facility on sale of asset | $ 2,362,000 | ||||||
Eastern and Oriental Express Ltd. | |||||||
Related party transactions | |||||||
Ownership percentage | 25.00% | ||||||
Revenue from related party | $ 295,000 | 236,000 | 292,000 | ||||
Amounts payable to Belmond | $ 6,302,000 | 4,886,000 | |||||
Hotel and rail joint ventures in Peru | |||||||
Related party transactions | |||||||
Ownership percentage | 50.00% | ||||||
Revenue from related party | $ 15,154,000 | 14,734,000 | 12,503,000 | ||||
Amounts payable to Belmond | $ 6,029,000 | 6,907,000 | |||||
Buzios | |||||||
Related party transactions | |||||||
Ownership percentage | 50.00% | 50.00% | |||||
Amounts payable to Belmond | $ 431,000 | 372,000 | |||||
Hotel Ritz, Madrid | |||||||
Related party transactions | |||||||
Ownership percentage | 50.00% | 50.00% | 50.00% | ||||
Revenue from related party | $ 0 | 0 | 328,000 | ||||
Amounts payable to Belmond | 0 | 0 | |||||
Interest income | 0 | 0 | $ 301,000 | ||||
Gross proceeds from divestiture of businesses, including reduction in debt facility on sale of asset | $ 144,529,000 | € 130,000 | |||||
Crawford & Co and GHS Holdings LLC | |||||||
Related party transactions | |||||||
Revenue from related party | 219,000 | 488,000 | |||||
Amounts payable to Belmond | $ 194,000 | $ 0 |
Subsequent events (Details)
Subsequent events (Details) - Castello di Casole € in Thousands, $ in Thousands | Feb. 08, 2018USD ($)roomplot | Feb. 08, 2018EUR (€)roomplot | Dec. 31, 2018USD ($)roomvillaplot | Dec. 31, 2018EUR (€)roomvilla |
Forecasted | ||||
Subsequent Event | ||||
Number of rooms | room | 41 | 41 | ||
Number of properties | villa | 2 | 2 | ||
Capital improvement commitment | $ 9,000 | € 7,300 | ||
Construction period | 4 years | |||
Plots of land sold | 14 | |||
Non-binding Reservation | Forecasted | ||||
Subsequent Event | ||||
Plots of land sold | 3 | |||
Subsequent Event | ||||
Subsequent Event | ||||
Payments to acquire real estate | $ 48,000 | € 39,000 | ||
Number of rooms | room | 39 | 39 | ||
Plots of land | 48 | 48 | ||
Subsequent Event | Property Available for Sale | ||||
Subsequent Event | ||||
Plots of land | 16 | 16 | ||
Subsequent Event | Non-binding Reservation | ||||
Subsequent Event | ||||
Plots of land | 3 | 3 |
Schedule II - Valuation and 130
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for doubtful accounts | |||
Movement in Valuation Allowances and Reserves | |||
Balance at beginning of period | $ 420 | $ 291 | $ 425 |
Additions charged to costs and expenses | 181 | 109 | 92 |
Additions charged to other accounts | 33 | 19 | (61) |
Deductions | (90) | 1 | (165) |
Balance at end of period | 544 | 420 | 291 |
Valuation allowance on deferred tax assets | |||
Movement in Valuation Allowances and Reserves | |||
Balance at beginning of period | 70,241 | 69,928 | 91,462 |
Additions charged to costs and expenses | 2,215 | 4,876 | 16,320 |
Additions charged to other accounts | (23,119) | (4,563) | (37,854) |
Deductions | 0 | 0 | 0 |
Balance at end of period | $ 49,337 | $ 70,241 | $ 69,928 |