Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 31, 2017 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | NCL CORP Ltd. | |
Entity Central Index Key | 1,318,742 | |
Trading Symbol | nclc | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock Shares Outstanding | 31,164,004 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2017 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenue | ||||
Passenger ticket | $ 1,192,023 | $ 1,071,815 | $ 2,916,731 | $ 2,630,405 |
Onboard and other | 459,715 | 412,921 | 1,229,891 | 1,118,798 |
Total revenue | 1,651,738 | 1,484,736 | 4,146,622 | 3,749,203 |
Cruise operating expense | ||||
Commissions, transportation and other | 266,173 | 249,519 | 683,628 | 618,492 |
Onboard and other | 98,476 | 90,661 | 250,254 | 230,416 |
Payroll and related | 206,142 | 193,122 | 593,502 | 554,741 |
Fuel | 91,231 | 86,250 | 266,780 | 248,529 |
Food | 53,883 | 50,902 | 147,401 | 151,674 |
Other | 122,260 | 114,280 | 368,640 | 351,263 |
Total cruise operating expense | 838,165 | 784,734 | 2,310,205 | 2,155,115 |
Other operating expense | ||||
Marketing, general and administrative | 201,588 | 174,167 | 586,099 | 502,326 |
Depreciation and amortization | 134,532 | 111,575 | 376,878 | 317,480 |
Total other operating expense | 336,120 | 285,742 | 962,977 | 819,806 |
Operating income | 477,453 | 414,260 | 873,440 | 774,282 |
Non-operating income (expense) | ||||
Interest expense, net | (66,339) | (60,662) | (183,497) | (188,836) |
Other income (expense), net | (3,262) | (5,333) | (11,686) | (13,281) |
Total non-operating income (expense) | (69,601) | (65,995) | (195,183) | (202,117) |
Net income before income taxes | 407,852 | 348,265 | 678,257 | 572,165 |
Income tax expense | (11,625) | (2,262) | (17,451) | (3,090) |
Net income | $ 396,227 | $ 346,003 | $ 660,806 | $ 569,075 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 396,227 | $ 346,003 | $ 660,806 | $ 569,075 |
Other comprehensive income: | ||||
Shipboard Retirement Plan | 104 | 107 | 313 | 323 |
Cash flow hedges: | ||||
Net unrealized gain | 97,276 | 37,051 | 221,512 | 112,508 |
Amount realized and reclassified into earnings | 11,644 | 18,327 | 31,593 | 76,658 |
Total other comprehensive income | 109,024 | 55,485 | 253,418 | 189,489 |
Total comprehensive income | $ 505,251 | $ 401,488 | $ 914,224 | $ 758,564 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 520,075 | $ 126,041 |
Accounts receivable, net | 56,679 | 63,215 |
Inventories | 78,915 | 66,255 |
Prepaid expenses and other assets | 205,995 | 153,168 |
Total current assets | 861,664 | 408,679 |
Property and equipment, net | 10,916,824 | 10,117,689 |
Goodwill | 1,388,931 | 1,388,931 |
Tradenames | 817,525 | 817,525 |
Other long-term assets | 257,691 | 218,295 |
Total assets | 14,242,635 | 12,951,119 |
Current liabilities: | ||
Current portion of long-term debt | 605,827 | 560,193 |
Accounts payable | 44,956 | 37,946 |
Accrued expenses and other liabilities | 548,835 | 541,906 |
Due to NCLH | 64,647 | 44,104 |
Advance ticket sales | 1,327,002 | 1,172,870 |
Total current liabilities | 2,591,267 | 2,357,019 |
Long-term debt | 6,002,877 | 5,838,494 |
Other long-term liabilities | 189,272 | 267,933 |
Total liabilities | 8,783,416 | 8,463,446 |
Commitments and contingencies (Note 8) | ||
Shareholders' equity: | ||
Ordinary shares, $.0012 par value; 40,000,000 shares authorized; 31,164,004 shares issued and outstanding at September 30, 2017 and December 31, 2016 | 37 | 37 |
Additional paid-in capital | 3,851,211 | 3,796,042 |
Accumulated other comprehensive income (loss) | (62,768) | (316,186) |
Retained earnings | 1,670,739 | 1,007,780 |
Total shareholders' equity | 5,459,219 | 4,487,673 |
Total liabilities and shareholders' equity | $ 14,242,635 | $ 12,951,119 |
Consolidated Balance Sheets (U5
Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares | Sep. 30, 2017 | Dec. 31, 2016 |
Statement Of Financial Position [Abstract] | ||
Ordinary shares, par value (in dollars per share) | $ 0.0012 | $ 0.0012 |
Ordinary shares, authorized | 40,000,000 | 40,000,000 |
Ordinary shares, issued | 31,164,004 | 31,164,004 |
Ordinary shares, outstanding | 31,164,004 | 31,164,004 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities | ||
Net income | $ 660,806 | $ 569,075 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization expense | 385,957 | 327,366 |
(Gain) loss on derivatives | (71) | 1,007 |
Deferred income taxes, net | 14,969 | |
Write-off of deferred financing fees | 11,537 | |
Provision for bad debts and inventory | 1,592 | 1,767 |
Share-based compensation expense | 63,664 | 48,289 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 656 | (10,542) |
Inventories | (13,923) | (9,133) |
Prepaid expenses and other assets | (14,626) | (15,859) |
Accounts payable | 3,909 | 2,517 |
Accrued expenses and other liabilities | 76,571 | (12,193) |
Advance ticket sales | 187,131 | 180,447 |
Net cash provided by operating activities | 1,366,635 | 1,094,278 |
Cash flows from investing activities | ||
Additions to property and equipment, net | (1,129,514) | (915,936) |
Settlement of derivatives | (35,255) | (34,300) |
Net cash used in investing activities | (1,164,769) | (950,236) |
Cash flows from financing activities | ||
Repayments of long-term debt | (1,006,620) | (2,687,621) |
Repayments to Affiliate | (18,522) | |
Proceeds from long-term debt | 1,217,060 | 2,687,355 |
Due to NCLH, net | 20,543 | 15,856 |
Dividends | (64,000) | |
Net share settlement of restricted share units | (6,342) | |
Deferred financing fees and other | (32,473) | (37,457) |
Net cash provided by (used in) financing activities | 192,168 | (104,389) |
Net increase in cash and cash equivalents | 394,034 | 39,653 |
Cash and cash equivalents at beginning of period | 126,041 | 113,183 |
Cash and cash equivalents at end of period | $ 520,075 | $ 152,836 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Ordinary Shares | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Total |
Balance at Dec. 31, 2015 | $ 37 | $ 3,729,628 | $ (414,363) | $ 428,057 | $ 3,743,359 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Share-based compensation | 48,289 | 48,289 | |||
Dividends | (64,000) | (64,000) | |||
Other comprehensive income, net | 189,489 | 189,489 | |||
Net income | 569,075 | 569,075 | |||
Balance at Sep. 30, 2016 | 37 | 3,777,917 | (224,874) | 933,132 | 4,486,212 |
Balance at Dec. 31, 2016 | 37 | 3,796,042 | (316,186) | 1,007,780 | 4,487,673 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Share-based compensation | 63,664 | 63,664 | |||
Change in accounting policy (share-based forfeitures) | (2,153) | 2,153 | |||
Net share settlement of restricted share units | (6,342) | (6,342) | |||
Other comprehensive income, net | 253,418 | 253,418 | |||
Net income | 660,806 | 660,806 | |||
Balance at Sep. 30, 2017 | $ 37 | $ 3,851,211 | $ (62,768) | $ 1,670,739 | $ 5,459,219 |
Description of Business and Org
Description of Business and Organization | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Description of Business and Organization | 1. Description of Business and Organization We are a leading global cruise company which operates the Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises brands. As of September 30, 2017, we had 25 ships with approximately 50,400 Berths. We plan to introduce seven additional ships through 2025 and we have an option to introduce two additional ships for delivery in 2026 and 2027, subject to certain conditions. Norwegian Bliss and an additional Breakaway Plus Class Ship are on order for delivery in the spring of 2018 and fall of 2019, respectively. We have an Explorer Class Ship on order for delivery in the winter of 2020. Project Leonardo will introduce an additional four ships with expected delivery dates through 2025. These additions to our fleet (exclusive of the option for two additional ships) will increase our total Berths to approximately 72,300. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements are unaudited and, in our opinion, contain all normal recurring adjustments necessary for a fair statement of the results for the periods presented. Our operations are seasonal and results for interim periods are not necessarily indicative of the results for the entire fiscal year. Historically, demand for cruises has been strongest during the Northern Hemisphere’s summer months. The interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2016, which are included in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission. Reclassification Certain amounts in prior periods have been reclassified to conform to the current period presentation. Revenue and Expense Recognition Revenue and expenses include port fees and taxes. The amounts included on a gross basis are $94.8 million and $80.3 million for the three months ended September 30, 2017 and 2016, respectively, and $246.9 million and $214.3 million for the nine months ended September 30, 2017 and 2016, respectively. Foreign Currency The majority of our transactions are settled in U.S. dollars and the functional currency of our foreign subsidiaries is the U.S. dollar. Gains or losses resulting from transactions denominated in other currencies are recognized in income at each balance sheet date. We recognized losses of $4.0 million and $1.4 million for the three months ended September 30, 2017 and 2016, respectively, and losses of $14.8 million and $1.8 million for the nine months ended September 30, 2017 and 2016, respectively. Depreciation and Amortization Expense The amortization of deferred financing fees is included in depreciation and amortization expense in the consolidated statements of cash flows; however, for purposes of the consolidated statements of operations they are included in interest expense, net. Recently Issued Accounting Pronouncements In August 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-12 . In January 2017, the FASB issued ASU No. 2017-04 which simplifies the test for goodwill impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. The guidance is effective for annual or any interim goodwill impairment tests in years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We do not expect to early adopt this guidance. We are currently evaluating the impact of the adoption of this guidance to our consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15 which amends Topic 230 (Statement of Cash Flows) to eliminate discrepancies in reporting certain items in the statement of cash flows. The guidance is effective for annual periods beginning after December 15, 2017 and interim periods within those annual periods with early adoption permitted. The transition should be made using a retrospective approach. We do not believe that the adoption of this guidance will be material to our consolidated statements of cash flows. In February 2016, the FASB issued ASU No. 2016-02 which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The ASU requires lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with terms of more than 12 months. The ASU further modifies lessors’ classification criteria for leases and the accounting for sales-type and direct financing leases. The ASU will also require qualitative and quantitative disclosures designed to give financial statement users additional information on the amount, timing, and uncertainty of cash flows arising from leases. The ASU is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2018 with early adoption permitted. The ASU is to be applied using a modified retrospective approach. To evaluate the impact of the adoption of this guidance, we are currently reviewing our existing leases and evaluating contracts to determine what might be considered a lease under the new guidance. In May 2014, the FASB issued ASU No. 2014-09 which requires entities to recognize revenue through the application of a five-step model, including identification of the contract, identification of the performance obligations, determination of the transaction price, allocation of the transaction price to the performance obligation and recognition of revenue as the entity satisfies the performance obligations. Entities have the option of using either a full retrospective or a modified approach to adopt the guidance. In August 2015, the FASB issued ASU No. 2015-14 deferring the effective date for one year. We expect to adopt a modified retrospective application for annual periods beginning after December 15, 2017. In April 2016, the FASB issued ASU No. 2016-10 which does not change the core principle of the guidance in ASU No. 2014-09 but clarifies two aspects: identifying performance obligations and the licensing implementation guidance, while retaining the related principles for those areas. In May 2016, the FASB issued ASU No. 2016-11 which is a rescission of Securities and Exchange Commission guidance related to the issuance of ASU No. 2014-09. In May 2016, the FASB issued ASU No. 2016-12 which addresses improvements to the guidance on revenue from contracts from customers regarding collectability, noncash consideration, and completed contracts at transition. Additionally, it provides a practical expedient for contract modifications at transition and an accounting policy election related to the presentation of sales taxes and other similar taxes collected from customers. The effective date of ASU No. 2016-10, ASU No. 2016-11 and ASU No. 2016-12 is upon adoption of ASU No. 2014-09. We have initiated an assessment of our systems, data and processes related to the implementation of these ASUs. This assessment is expected to be completed during 2017. Additionally, we are currently evaluating our performance obligations and believe that our application of the guidance could result in changes in classification and will result in additional disclosures. We also are evaluating other criteria such as the timing of contract terms, gross and net presentation and other items that the guidance addresses. |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 3. Intangible Assets The carrying amounts of intangible assets subject to amortization are included within other long-term assets. As of September 30, 2017, the carrying amount of the indefinite-lived license is included in prepaid expenses and other assets as it is held for sale. The gross carrying amounts of intangible assets, the related accumulated amortization, the net carrying amounts and the weighted-average amortization periods of the Company’s intangible assets are listed in the following tables (in thousands, except amortization period): September 30, 2017 Gross Carrying Accumulated Net Carrying Weighted- Customer relationships $ 120,000 $ (59,298 ) $ 60,702 6.0 Licenses 3,368 (1,382 ) 1,986 5.6 Non-compete agreements 660 (660 ) — 1.0 Total intangible assets subject to amortization $ 124,028 $ (61,340 ) $ 62,688 License (Indefinite-lived) $ 4,427 December 31, 2016 Gross Carrying Accumulated Net Carrying Weighted- Customer relationships $ 120,000 $ (36,593 ) $ 83,407 6.0 Licenses 3,368 (807 ) 2,561 5.6 Non-compete agreements 660 (495 ) 165 1.0 Total intangible assets subject to amortization $ 124,028 $ (37,895 ) $ 86,133 License (Indefinite-lived) $ 4,427 The aggregate amortization expense is as follows (in thousands): Three Months Ended Nine Months Ended 2017 2016 2017 2016 Amortization expense $ 7,780 $ 5,601 $ 23,445 $ 16,552 The following table sets forth the Company’s estimated aggregate amortization expense for each of the five years below (in thousands): Year ended December 31, Amortization 2018 $ 26,163 2019 18,489 2020 9,906 2021 75 2022 75 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 4. Accumulated Other Comprehensive Income (Loss) Accumulated other comprehensive income (loss) for the nine months ended September 30, 2017 was as follows (in thousands): Accumulated Change Change Accumulated other comprehensive income (loss) at beginning of period $ (316,186 ) $ (308,265 ) $ (7,921 ) Current period other comprehensive income before reclassifications 221,512 221,512 — Amounts reclassified into earnings 31,906 31,593 (1) 313 (2) Accumulated other comprehensive income (loss) at end of period $ (62,768 ) $ (55,160 )(3) $ (7,608 ) (1) We refer you to Note 6 — “Fair Value Measurements and Derivatives” for the affected line items in the consolidated statements of operations. (2) Amortization of prior-service cost and actuarial loss reclassified to payroll and related expense. (3) Includes $23.6 million of loss expected to be reclassified into earnings in the next 12 months. Accumulated other comprehensive income (loss) for the nine months ended September 30, 2016 was as follows (in thousands): Accumulated Change Change Accumulated other comprehensive income (loss) at beginning of period $ (414,363 ) $ (405,945 ) $ (8,418 ) Current period other comprehensive income before reclassifications 112,508 112,508 — Amounts reclassified into earnings 76,981 76,658 (1) 323 (2) Accumulated other comprehensive income (loss) at end of period $ (224,874 ) $ (216,779 ) $ (8,095 ) (1) We refer you to Note 6— “Fair Value Measurements and Derivatives” for the affected line items in the consolidated statements of operations. (2) Amortization of prior-service cost and actuarial loss reclassified to payroll and related expense. |
Property and Equipment, net
Property and Equipment, net | 9 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment, Net [Abstract] | |
Property and Equipment, net | 5. Property and Equipment, net Property and equipment, net increased $799.1 million for the nine months ended September 30, 2017 primarily due to the delivery of Norwegian Joy, ships under construction and ship improvement projects. As of September 30, 2017, in connection with the pending sale of our Hawaii land-based operations, we had $21.5 million of assets included in prepaid expenses and other, which are primarily related to property and equipment, and $7.7 million of liabilities included in accrued expenses and other liabilities. These assets and liabilities are classified as held for sale. Accordingly, for the three months ended September 30, 2017, these assets were measured at fair value less costs to sell which resulted in an impairment on assets of $2.9 million which was included in property and equipment and depreciation and amortization. The fair value was based on the purchase price which represents the observable market value of these operations which are level 2 within the fair value hierarchy. The sale was consummated on October 31, 2017. Upon the closing of the transaction, we accepted a promissory note from the buyer for approximately $9.7 million. |
Fair Value Measurements and Der
Fair Value Measurements and Derivatives | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Derivatives | 6. Fair Value Measurements and Derivatives Fair value is defined as the price at which an orderly transaction to sell an asset or to transfer a liability would take place between market participants at the measurement date under current market conditions (that is, an exit price at the measurement date from the perspective of a market participant that holds the asset or owes the liability). Fair Value Hierarchy The following hierarchy for inputs used in measuring fair value should maximize the use of observable inputs and minimize the use of unobservable inputs by requiring that the most observable inputs be used when available: Level 1 Quoted prices in active markets for identical assets or liabilities that are accessible at the measurement dates. Level 2 Significant other observable inputs that are used by market participants in pricing the asset or liability based on market data obtained from independent sources. Level 3 Significant unobservable inputs we believe market participants would use in pricing the asset or liability based on the best information available. Derivatives We are exposed to market risk attributable to changes in interest rates, foreign currency exchange rates and fuel prices. We attempt to minimize these risks through a combination of our normal operating and financing activities and through the use of derivatives. We assess whether derivatives used in hedging transactions are “highly effective” in offsetting changes in the cash flow of our hedged forecasted transactions. We use regression analysis for this hedge relationship and high effectiveness is achieved when a statistically valid relationship reflects a high degree of offset and correlation between the fair values of the derivative and the hedged forecasted transaction. Cash flows from the derivatives are classified in the same category as the cash flows from the underlying hedged transaction. The determination of ineffectiveness is based on the amount of dollar offset between the cumulative change in fair value of the derivative and the cumulative change in fair value of the hedged transaction at the end of the reporting period. If it is determined that a derivative is not highly effective as a hedge, or if the hedged forecasted transaction is no longer probable of occurring, then the amount recognized in accumulated other comprehensive income (loss) is released to earnings. In addition, the ineffective portion of our highly effective hedges is recognized in earnings immediately and reported in other income (expense), net in our consolidated statements of operations. There are no amounts excluded from the assessment of hedge effectiveness and there are no credit-risk-related contingent features in our derivative agreements. We monitor concentrations of credit risk associated with financial and other institutions with which we conduct significant business. Credit risk, including but not limited to counterparty non-performance under derivatives and our New Revolving Loan Facility (as defined in Note 12— “Subsequent Events”, is not considered significant, as we primarily conduct business with large, well-established financial institutions that we have established relationships with and that have credit risks acceptable to us or the credit risk is spread out among a large number of creditors. We do not anticipate non-performance by any of our significant counterparties. The following table sets forth our derivatives measured at fair value and discloses the balance sheet location (in thousands): Asset Liability Balance Sheet location September 30, December 31, September 30, December 31, Fuel swaps designated as hedging instruments Prepaid expenses and other assets $ 5,796 $ 20,288 $ — $ — Other long-term assets 4,636 — 1,903 — Accrued expenses and other liabilities 4,237 — 26,069 44,271 Other long-term liabilities 7,724 13,237 17,578 38,608 Foreign currency forward contracts designated as hedging instruments Prepaid expenses and other assets 41,983 — 1,354 — Other long-term assets 65,780 14 — — Accrued expenses and other liabilities — — — 61,788 Other long-term liabilities — — — 88,920 Interest rate swaps designated as hedging instruments Accrued expenses and other liabilities — — 1,876 3,331 Other long-term liabilities — — — 1,151 The fair values of swap and forward contracts are determined based on inputs that are readily available in public markets or can be derived from information available in publicly quoted markets. The Company determines the value of options and collars utilizing an option pricing model based on inputs that are either readily available in public markets or can be derived from information available in publicly quoted markets. The option pricing model used by the Company is an industry standard model for valuing options and is used by the broker/dealer community. The inputs to this option pricing model are the option strike price, underlying price, risk-free rate of interest, time to expiration, and volatility. The fair value of option contracts considers both the intrinsic value and any remaining time value associated with those derivatives that have not yet settled. The Company also considers counterparty credit risk and its own credit risk in its determination of all estimated fair values. Our derivatives and financial instruments were categorized as Level 2 in the fair value hierarchy, and we had no derivatives or financial instruments categorized as Level 1 or Level 3. Our derivative contracts include rights of offset with our counterparties. We have elected to net certain assets and liabilities within counterparties when the rights of offset exist. We are not required to post cash collateral related to our derivative instruments. The following table discloses the gross and net amounts recognized within assets and liabilities (in thousands): September 30, 2017 Gross Amounts Gross Total Net Gross Net Amounts Assets $ 118,195 $ (3,257 ) $ 114,938 $ (100,582 ) $ 14,356 Liabilities 45,523 (11,961 ) 33,562 (1,876 ) 31,686 December 31, 2016 Gross Amounts Gross Total Net Gross Net Amounts Assets $ 20,302 $ — $ 20,302 $ (14 ) $ 20,288 Liabilities 238,069 (13,237 ) 224,832 (155,190 ) 69,642 Fuel Swaps As of September 30, 2017, we had fuel swaps maturing through December 31, 2020 which are used to mitigate the financial impact of volatility in fuel prices pertaining to approximately 1.4 million metric tons of our projected fuel purchases. The effects on the consolidated financial statements of the fuel swaps which were designated as cash flow hedges were as follows (in thousands): Three Months Ended Nine Months Ended 2017 2016 2017 2016 Gain (loss) recognized in other comprehensive income – effective portion $ 30,452 $ (157 ) $ (635 ) $ 76,145 Gain (loss) recognized in other income (expense), net – ineffective portion 496 (2,602 ) (305 ) (11,353 ) Amount reclassified from accumulated other comprehensive income (loss) into fuel expense 9,795 16,427 26,382 68,004 We had fuel swaps that matured which were not designated as cash flow hedges. These fuel swaps were previously designated as cash flow hedges and were dedesignated due to a change in our expected future fuel purchases mix. The effects on the consolidated financial statements of the fuel swaps which were dedesignated and recognized into earnings were as follows (in thousands): Three Months Ended Nine Months Ended 2017 2016 2017 2016 Loss recognized in other income (expense), net $ — $ (179 ) $ — $ (271 ) Amount reclassified from accumulated other comprehensive income (loss) into other income (expense), net — — — 2,994 Foreign Currency Options We had foreign currency options that matured which consisted of call options with deferred premiums. These options were used to mitigate the financial impact of volatility in foreign currency exchange rates related to our ship construction contracts denominated in euros. If the spot rate at the date the ships were delivered was less than the strike price under these option contracts, we would have paid the deferred premium and would not exercise the foreign currency options. The effects on the consolidated financial statements of the foreign currency options which were designated as cash flow hedges were as follows (in thousands): Three Months Ended Nine Months Ended 2017 2016 2017 2016 Amount reclassified from accumulated other comprehensive income (loss) into depreciation and amortization expense $ 330 $ 330 $ 990 $ 990 Foreign Currency Forward Contracts As of September 30, 2017, we had foreign currency forward contracts which are used to mitigate the financial impact of volatility in foreign currency exchange rates related to our ship construction contracts denominated in euros. The notional amount of our foreign currency forward contracts was €1.8 billion, or $2.1 billion based on the euro/U.S. dollar exchange rate as of September 30, 2017. The effects on the consolidated financial statements of the foreign currency forward contracts which were designated as cash flow hedges were as follows (in thousands): Three Months Ended Nine Months Ended 2017 2016 2017 2016 Gain recognized in other comprehensive income – effective portion $ 66,849 $ 36,390 $ 221,913 $ 39,001 Loss recognized in other income (expense), net – ineffective portion — (190 ) (66 ) (181 ) Amount reclassified from accumulated other comprehensive income (loss) into depreciation and amortization expense 918 665 2,192 1,966 The effects on the consolidated financial statements of foreign currency forward contracts which were not designated as cash flow hedges were as follows (in thousands): Three Months Ended Nine Months Ended 2017 2016 2017 2016 Loss recognized in other income (expense), net $ — $ — $ — $ (6,133 ) Foreign Currency Collar We had foreign currency collars that matured and were used to mitigate the volatility of foreign currency exchange rates related to our ship construction contracts denominated in euros. The effects on the consolidated financial statements of the foreign currency collar which was designated as a cash flow hedge was as follows (in thousands): Three Months Ended Nine Months Ended 2017 2016 2017 2016 Amount reclassified from accumulated other comprehensive income (loss) into depreciation and amortization expense $ (91 ) $ (91 ) $ (273 ) $ (273 ) The effect on the consolidated financial statements of the foreign currency collar which was not designated as a cash flow hedge was as follows (in thousands): Three Months Ended Nine Months Ended 2017 2016 2017 2016 Gain recognized in other income (expense), net $ — $ — $ — $ 10,312 Interest Rate Swaps As of September 30, 2017, we had interest rate swap agreements to hedge our exposure to interest rate movements and to manage our interest expense. The notional amount of outstanding debt associated with the interest rate swap agreements was $237.2 million as of September 30, 2017. The effects on the consolidated financial statements of the interest rate swaps which were designated as cash flow hedges were as follows (in thousands): Three Months Ended Nine Months Ended 2017 2016 2017 2016 Gain (loss) recognized in other comprehensive income – effective portion $ (25 ) $ 818 $ 234 $ (2,638 ) Gain recognized in other income (expense), net – ineffective portion — — — 3 Amount reclassified from accumulated other comprehensive income (loss) into interest expense, net 691 996 2,301 2,977 Long-Term Debt As of September 30, 2017 and December 31, 2016, the fair value of our long-term debt, including the current portion, was $6,796.4 million and $6,525.7 million, respectively, which was $62.0 million and $11.6 million higher, respectively, than the carrying values. The difference between the fair value and carrying value of our long-term debt is due to our fixed and variable rate debt obligations carrying interest rates that are above or below market rates at the measurement dates. The fair value of our long-term debt was calculated based on estimated rates for the same or similar instruments with similar terms and remaining maturities resulting in Level 2 inputs in the fair value hierarchy. Market risk associated with our long-term variable rate debt is the potential increase in interest expense from an increase in interest rates. The calculation of the fair value of our long-term debt is considered a Level 2 input. We refer you to Note 12— “Subsequent Events” for further information about our long-term debt. Other The carrying amounts reported in the consolidated balance sheets of all other financial assets and liabilities approximate fair value. |
Employee Benefits and Compensat
Employee Benefits and Compensation Plans | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee Benefits and Compensation Plans | 7. Employee Benefits and Compensation Plans Share-Based Compensation As a result of NCLH’s adoption of ASU No. 2016-09, beginning in the first quarter of 2017, NCLH began accounting for forfeitures as they occur, rather than estimating expected forfeitures. Pursuant to the modified-retrospective application, the net cumulative effect of this change was recognized as a $2.2 million increase to retained earnings as of January 1, 2017 (we refer you to our consolidated statements of changes in shareholders’ equity). Share Option Awards The following is a summary of option activity under NCLH’s Amended and Restated 2013 Performance Incentive Plan for the nine months ended September 30, 2017 (excludes the impact of 208,335 previously awarded performance-based options as no grant date has been established): Number of Share Option Weighted-Average Exercise Weighted- Aggregate Intrinsic Value Time- Performance- Market- Time- Performance- Market- (years) (in thousands) Outstanding as of January 1, 2017 7,775,058 432,978 208,333 $ 48.04 $ 23.86 $ 59.43 7.81 $ 35,429 Granted — 156,249 — — 59.43 — — — Exercised (704,339 ) (83,288 ) — 33.92 19.00 — — — Forfeited and cancelled (385,070 ) (93,749 ) — 54.42 59.43 — — — Outstanding as of September 30, 2017 6,685,649 412,190 208,333 $ 49.16 $ 30.24 $ 59.43 7.22 $ 54,689 Restricted Ordinary Share Awards The following is a summary of restricted NCLH ordinary share activity for the nine months ended September 30, 2017: Number of Weighted- Non-vested as of January 1, 2017 16,872 $ 7.63 Granted — — Vested (15,702 ) 4.94 Forfeited or expired — — Non-vested and expected to vest as of September 30, 2017 1,170 $ 43.70 Restricted Share Unit Awards On March 1, 2017, NCLH granted 1.7 million time-based restricted share unit awards to our employees which vest equally over three years. Additionally, on March 1, 2017, NCLH awarded 121,000 performance-based restricted share units to certain members of our management team which vest upon the achievement of certain pre-established performance targets. The following is a summary of restricted share unit activity for the nine months ended September 30, 2017 (excludes the impact of 329,146 previously awarded performance-based restricted share units as no grant date was established): Number of Weighted- Number of Weighted- Number of Weighted- Non-vested as of January 1, 2017 1,305,335 $ 50.38 — $ — 50,000 $ 59.43 Granted 1,803,327 51.13 37,500 49.76 — — Vested (447,503 ) 50.55 (15,000 ) 49.76 — — Forfeited or expired (70,179 ) 50.71 (22,500 ) 49.76 — — Non-vested and expected to vest as of September 30, 2017 2,590,980 50.86 — — 50,000 59.43 The share-based compensation expense for the three months ended September 30, 2017 was $21.5 million of which $18.6 million was recorded in marketing, general and administrative expense and $2.9 million was recorded in payroll and related expense. The share-based compensation expense for the nine months ended September 30, 2017 was $63.7 million of which $57.1 million was recorded in marketing, general and administrative expense and $6.6 million was recorded in payroll and related expense. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 8. Commitments and Contingencies Ship Construction Contracts Project Leonardo will introduce an additional four ships with expected delivery dates through 2025 and we have an option to introduce two additional ships for delivery in 2026 and 2027, subject to certain conditions. These four ships are each approximately 140,000 Gross Tons with approximately 3,300 Berths. We have an Explorer Class Ship on order for delivery in the winter of 2020. This ship is approximately 55,000 Gross Tons and 750 Berths. We have two Breakaway Plus Class Ships on order for delivery in the spring of 2018 and fall of 2019, respectively. These ships are approximately 168,000 Gross Tons each with approximately 4,000 Berths each. The combined contract price of these seven ships was approximately €5.5 billion, or $6.5 billion based on the euro/U.S. dollar exchange rate as of September 30, 2017. We have export credit financing in place that provides financing for 80% of each ship’s contract price. For ships expected to be delivered after 2023, the contract price is subject to adjustment under certain circumstances. In connection with the contracts to build the ships, we do not anticipate any contractual breach or cancellation to occur. However, if any would occur, it could result in, among other things, the forfeiture of prior deposits or payments made by us and potential claims and impairment losses which may materially impact our business, financial condition and results of operations. Litigation In the normal course of our business, various claims and lawsuits have been filed or are pending against us. Most of these claims and lawsuits are covered by insurance and, accordingly, the maximum amount of our liability is typically limited to our deductible amount. Nonetheless, the ultimate outcome of the claims and lawsuits that are not covered by insurance cannot be determined at this time. We have evaluated our overall exposure with respect to all of our threatened and pending litigation and, to the extent required, we have accrued amounts for all estimable probable losses associated with our deemed exposure. We are currently unable to estimate any other potential contingent losses beyond those accrued, as discovery is not complete nor is adequate information available to estimate such range of loss or potential recovery. However, based on our current knowledge, we do not believe that the aggregate amount or range of reasonably possible losses with respect to these matters will be material to our consolidated results of operations, financial condition or cash flows. We intend to vigorously defend our legal position on all claims and, to the extent necessary, seek recovery. |
Other Income (Expense), Net
Other Income (Expense), Net | 9 Months Ended |
Sep. 30, 2017 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense), Net | 9. Other Income (Expense), Net For the three months ended September 30, 2017, other income (expense), net was a $3.3 million expense, primarily due to foreign currency exchange losses. For the three months ended September 30, 2016, the $5.3 million expense was due to foreign currency exchange and fuel swap derivative losses. For the nine months ended September 30, 2017, the $11.7 million expense included foreign currency exchange losses partially offset by a gain from an insurance claim. For the nine months ended September 30, 2016, the $13.3 million expense included losses on fuel swap derivatives partially offset by gains on foreign exchange forward derivatives. |
Income Tax Expense
Income Tax Expense | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Tax Expense | 10. Income Tax Expense Income tax expense for 2017 reflects a tax benefit of $1.3 million associated with the reversal of prior years’ tax contingency reserve due to the expiration of the statute of limitations. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 9 Months Ended |
Sep. 30, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | 11. Supplemental Cash Flow Information For the nine months ended September 30, 2017 and 2016, we had non-cash investing activities in connection with property and equipment of $15.2 million and $22.3 million, respectively. For the nine months ended September 30, 2017, we had non-cash investing activities in connection with capital leases of $13.3 million. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | 12. Subsequent Events NCLC, a subsidiary of NCLH, entered into a Third Amended and Restated Credit Agreement, dated as of October 10, 2017, with a subsidiary of NCLC, as co-borrower, JPMorgan Chase Bank, N.A. (“JPM”), as administrative agent and as collateral agent, and a syndicate of other banks party thereto as joint bookrunners, arrangers, codocumentation agents and lenders (the “Amended Senior Secured Credit Facility”), which amends and restates that certain Second Amended and Restated Credit Agreement, dated as of June 6, 2016, by and among NCLC, JPM, as administrative agent and as collateral agent, and a syndicate of other banks party thereto as joint bookrunners, arrangers, co-documentation agents and lenders (the “Existing Senior Secured Credit Facility”). The Amended Senior Secured Credit Facility amends the Existing Senior Secured Credit Facility to, among other things, (a) reprice and increase the existing $750 million revolving credit facility with a new $875 million revolving credit facility (the “New Revolving Loan Facility”), (b) reprice the approximately $1,412 million principal amount outstanding under the existing senior secured term A facility (the “New Term A Loan Facility”), and (c) add a new $375 million term B loan facility due 2021 (the “New Term B Loan Facility”). The applicable margin under the New Term A Loan Facility and New Revolving Loan Facility is determined by reference to a total leverage ratio, with an applicable margin of between 2.00% and 1.25% with respect to Eurocurrency loans and between 1.00% and 0.25% with respect to base rate loans. The margin for borrowings under the New Term A Loan Facility and New Revolving Loan Facility is 1.75% with respect to Eurocurrency borrowings and 0.75% with respect to base rate borrowings. The applicable margin under the New Term B Loan Facility is 1.75% with respect to Eurocurrency loans and 0.75% with respect to base rate loans. NCLC used proceeds from the New Term B Loan Facility and cash on hand for the Redemption (as defined below). On October 10, 2017, NCLC completed the redemption of all its outstanding 4.625% Senior Notes due 2020 (“Notes”), at a price including accrued and unpaid interest, of $1,044.41 per $1,000 of outstanding principal amount of Notes so redeemed (the “Redemption”). No Notes remained outstanding after the redemption. |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements are unaudited and, in our opinion, contain all normal recurring adjustments necessary for a fair statement of the results for the periods presented. Our operations are seasonal and results for interim periods are not necessarily indicative of the results for the entire fiscal year. Historically, demand for cruises has been strongest during the Northern Hemisphere’s summer months. The interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2016, which are included in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission. |
Reclassification | Reclassification Certain amounts in prior periods have been reclassified to conform to the current period presentation. |
Revenue and Expense Recognition | Revenue and Expense Recognition Revenue and expenses include port fees and taxes. The amounts included on a gross basis are $94.8 million and $80.3 million for the three months ended September 30, 2017 and 2016, respectively, and $246.9 million and $214.3 million for the nine months ended September 30, 2017 and 2016, respectively. |
Foreign Currency | Foreign Currency The majority of our transactions are settled in U.S. dollars and the functional currency of our foreign subsidiaries is the U.S. dollar. Gains or losses resulting from transactions denominated in other currencies are recognized in income at each balance sheet date. We recognized losses of $4.0 million and $1.4 million for the three months ended September 30, 2017 and 2016, respectively, and losses of $14.8 million and $1.8 million for the nine months ended September 30, 2017 and 2016, respectively. |
Depreciation and Amortization Expense | Depreciation and Amortization Expense The amortization of deferred financing fees is included in depreciation and amortization expense in the consolidated statements of cash flows; however, for purposes of the consolidated statements of operations they are included in interest expense, net. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In August 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-12 . In January 2017, the FASB issued ASU No. 2017-04 which simplifies the test for goodwill impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. The guidance is effective for annual or any interim goodwill impairment tests in years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We do not expect to early adopt this guidance. We are currently evaluating the impact of the adoption of this guidance to our consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15 which amends Topic 230 (Statement of Cash Flows) to eliminate discrepancies in reporting certain items in the statement of cash flows. The guidance is effective for annual periods beginning after December 15, 2017 and interim periods within those annual periods with early adoption permitted. The transition should be made using a retrospective approach. We do not believe that the adoption of this guidance will be material to our consolidated statements of cash flows. In February 2016, the FASB issued ASU No. 2016-02 which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The ASU requires lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with terms of more than 12 months. The ASU further modifies lessors’ classification criteria for leases and the accounting for sales-type and direct financing leases. The ASU will also require qualitative and quantitative disclosures designed to give financial statement users additional information on the amount, timing, and uncertainty of cash flows arising from leases. The ASU is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2018 with early adoption permitted. The ASU is to be applied using a modified retrospective approach. To evaluate the impact of the adoption of this guidance, we are currently reviewing our existing leases and evaluating contracts to determine what might be considered a lease under the new guidance. In May 2014, the FASB issued ASU No. 2014-09 which requires entities to recognize revenue through the application of a five-step model, including identification of the contract, identification of the performance obligations, determination of the transaction price, allocation of the transaction price to the performance obligation and recognition of revenue as the entity satisfies the performance obligations. Entities have the option of using either a full retrospective or a modified approach to adopt the guidance. In August 2015, the FASB issued ASU No. 2015-14 deferring the effective date for one year. We expect to adopt a modified retrospective application for annual periods beginning after December 15, 2017. In April 2016, the FASB issued ASU No. 2016-10 which does not change the core principle of the guidance in ASU No. 2014-09 but clarifies two aspects: identifying performance obligations and the licensing implementation guidance, while retaining the related principles for those areas. In May 2016, the FASB issued ASU No. 2016-11 which is a rescission of Securities and Exchange Commission guidance related to the issuance of ASU No. 2014-09. In May 2016, the FASB issued ASU No. 2016-12 which addresses improvements to the guidance on revenue from contracts from customers regarding collectability, noncash consideration, and completed contracts at transition. Additionally, it provides a practical expedient for contract modifications at transition and an accounting policy election related to the presentation of sales taxes and other similar taxes collected from customers. The effective date of ASU No. 2016-10, ASU No. 2016-11 and ASU No. 2016-12 is upon adoption of ASU No. 2014-09. We have initiated an assessment of our systems, data and processes related to the implementation of these ASUs. This assessment is expected to be completed during 2017. Additionally, we are currently evaluating our performance obligations and believe that our application of the guidance could result in changes in classification and will result in additional disclosures. We also are evaluating other criteria such as the timing of contract terms, gross and net presentation and other items that the guidance addresses. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | September 30, 2017 Gross Carrying Accumulated Net Carrying Weighted- Customer relationships $ 120,000 $ (59,298 ) $ 60,702 6.0 Licenses 3,368 (1,382 ) 1,986 5.6 Non-compete agreements 660 (660 ) — 1.0 Total intangible assets subject to amortization $ 124,028 $ (61,340 ) $ 62,688 License (Indefinite-lived) $ 4,427 December 31, 2016 Gross Carrying Accumulated Net Carrying Weighted- Customer relationships $ 120,000 $ (36,593 ) $ 83,407 6.0 Licenses 3,368 (807 ) 2,561 5.6 Non-compete agreements 660 (495 ) 165 1.0 Total intangible assets subject to amortization $ 124,028 $ (37,895 ) $ 86,133 License (Indefinite-lived) $ 4,427 |
Schedule of Aggregate amortization expense | Three Months Ended Nine Months Ended 2017 2016 2017 2016 Amortization expense $ 7,780 $ 5,601 $ 23,445 $ 16,552 |
Schedule of estimated aggregate amortization expense | Year ended December 31, Amortization 2018 $ 26,163 2019 18,489 2020 9,906 2021 75 2022 75 |
Accumulated Other Comprehensi22
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Schedule of accumulated other comprehensive income (loss) | Accumulated other comprehensive income (loss) for the nine months ended September 30, 2017 was as follows (in thousands): Accumulated Change Change Accumulated other comprehensive income (loss) at beginning of period $ (316,186 ) $ (308,265 ) $ (7,921 ) Current period other comprehensive income before reclassifications 221,512 221,512 — Amounts reclassified into earnings 31,906 31,593 (1) 313 (2) Accumulated other comprehensive income (loss) at end of period $ (62,768 ) $ (55,160 )(3) $ (7,608 ) (1) We refer you to Note 6 — “Fair Value Measurements and Derivatives” for the affected line items in the consolidated statements of operations. (2) Amortization of prior-service cost and actuarial loss reclassified to payroll and related expense. (3) Includes $23.6 million of loss expected to be reclassified into earnings in the next 12 months. Accumulated other comprehensive income (loss) for the nine months ended September 30, 2016 was as follows (in thousands): Accumulated Change Change Accumulated other comprehensive income (loss) at beginning of period $ (414,363 ) $ (405,945 ) $ (8,418 ) Current period other comprehensive income before reclassifications 112,508 112,508 — Amounts reclassified into earnings 76,981 76,658 (1) 323 (2) Accumulated other comprehensive income (loss) at end of period $ (224,874 ) $ (216,779 ) $ (8,095 ) (1) We refer you to Note 6— “Fair Value Measurements and Derivatives” for the affected line items in the consolidated statements of operations. (2) Amortization of prior-service cost and actuarial loss reclassified to payroll and related expense. |
Fair Value Measurements and D23
Fair Value Measurements and Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Schedule of derivatives measured at fair value and disclosed by balance sheet location | Asset Liability Balance Sheet location September 30, December 31, September 30, December 31, Fuel swaps designated as hedging instruments Prepaid expenses and other assets $ 5,796 $ 20,288 $ — $ — Other long-term assets 4,636 — 1,903 — Accrued expenses and other liabilities 4,237 — 26,069 44,271 Other long-term liabilities 7,724 13,237 17,578 38,608 Foreign currency forward contracts designated as hedging instruments Prepaid expenses and other assets 41,983 — 1,354 — Other long-term assets 65,780 14 — — Accrued expenses and other liabilities — — — 61,788 Other long-term liabilities — — — 88,920 Interest rate swaps designated as hedging instruments Accrued expenses and other liabilities — — 1,876 3,331 Other long-term liabilities — — — 1,151 |
Schedule of amounts recognized within assets and liabilities | September 30, 2017 Gross Amounts Gross Total Net Gross Net Amounts Assets $ 118,195 $ (3,257 ) $ 114,938 $ (100,582 ) $ 14,356 Liabilities 45,523 (11,961 ) 33,562 (1,876 ) 31,686 December 31, 2016 Gross Amounts Gross Total Net Gross Net Amounts Assets $ 20,302 $ — $ 20,302 $ (14 ) $ 20,288 Liabilities 238,069 (13,237 ) 224,832 (155,190 ) 69,642 |
Fuel swaps | Designated as Hedging Instrument | |
Schedule of effects of derivatives designated as cash flow hedges | Three Months Ended Nine Months Ended 2017 2016 2017 2016 Gain (loss) recognized in other comprehensive income – effective portion $ 30,452 $ (157 ) $ (635 ) $ 76,145 Gain (loss) recognized in other income (expense), net – ineffective portion 496 (2,602 ) (305 ) (11,353 ) Amount reclassified from accumulated other comprehensive income (loss) into fuel expense 9,795 16,427 26,382 68,004 |
Fuel swaps | Not Designated as Hedging Instrument | |
Schedule of effects of derivatives not designated as cash flow hedges | Three Months Ended Nine Months Ended 2017 2016 2017 2016 Loss recognized in other income (expense), net $ — $ (179 ) $ — $ (271 ) Amount reclassified from accumulated other comprehensive income (loss) into other income (expense), net — — — 2,994 |
Foreign Currency Options | Designated as Hedging Instrument | |
Schedule of effects of derivatives designated as cash flow hedges | Three Months Ended Nine Months Ended 2017 2016 2017 2016 Amount reclassified from accumulated other comprehensive income (loss) into depreciation and amortization expense $ 330 $ 330 $ 990 $ 990 |
Foreign currency forward contracts | Designated as Hedging Instrument | |
Schedule of effects of derivatives designated as cash flow hedges | Three Months Ended Nine Months Ended 2017 2016 2017 2016 Gain recognized in other comprehensive income – effective portion $ 66,849 $ 36,390 $ 221,913 $ 39,001 Loss recognized in other income (expense), net – ineffective portion — (190 ) (66 ) (181 ) Amount reclassified from accumulated other comprehensive income (loss) into depreciation and amortization expense 918 665 2,192 1,966 |
Foreign currency forward contracts | Not Designated as Hedging Instrument | |
Schedule of effects of derivatives not designated as cash flow hedges | Three Months Ended Nine Months Ended 2017 2016 2017 2016 Loss recognized in other income (expense), net $ — $ — $ — $ (6,133 ) |
Foreign Currency Collar | Designated as Hedging Instrument | |
Schedule of effects of derivatives designated as cash flow hedges | Three Months Ended Nine Months Ended 2017 2016 2017 2016 Amount reclassified from accumulated other comprehensive income (loss) into depreciation and amortization expense $ (91 ) $ (91 ) $ (273 ) $ (273 ) |
Foreign Currency Collar | Not Designated as Hedging Instrument | |
Schedule of effects of derivatives not designated as cash flow hedges | Three Months Ended Nine Months Ended 2017 2016 2017 2016 Gain recognized in other income (expense), net $ — $ — $ — $ 10,312 |
Interest rate swaps | Designated as Hedging Instrument | |
Schedule of effects of derivatives designated as cash flow hedges | Three Months Ended Nine Months Ended 2017 2016 2017 2016 Gain (loss) recognized in other comprehensive income – effective portion $ (25 ) $ 818 $ 234 $ (2,638 ) Gain recognized in other income (expense), net – ineffective portion — — — 3 Amount reclassified from accumulated other comprehensive income (loss) into interest expense, net 691 996 2,301 2,977 |
Employee Benefits and Compens24
Employee Benefits and Compensation Plans (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of summary of option activity under NCLH's share option plan | Number of Share Option Weighted-Average Exercise Weighted- Aggregate Intrinsic Value Time- Performance- Market- Time- Performance- Market- (years) (in thousands) Outstanding as of January 1, 2017 7,775,058 432,978 208,333 $ 48.04 $ 23.86 $ 59.43 7.81 $ 35,429 Granted — 156,249 — — 59.43 — — — Exercised (704,339 ) (83,288 ) — 33.92 19.00 — — — Forfeited and cancelled (385,070 ) (93,749 ) — 54.42 59.43 — — — Outstanding as of September 30, 2017 6,685,649 412,190 208,333 $ 49.16 $ 30.24 $ 59.43 7.22 $ 54,689 |
Restricted Ordinary Share Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of restricted share activity of NCLH shares | Number of Weighted- Non-vested as of January 1, 2017 16,872 $ 7.63 Granted — — Vested (15,702 ) 4.94 Forfeited or expired — — Non-vested and expected to vest as of September 30, 2017 1,170 $ 43.70 |
Restricted Share Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of restricted share activity of NCLH shares | Number of Weighted- Number of Weighted- Number of Weighted- Non-vested as of January 1, 2017 1,305,335 $ 50.38 — $ — 50,000 $ 59.43 Granted 1,803,327 51.13 37,500 49.76 — — Vested (447,503 ) 50.55 (15,000 ) 49.76 — — Forfeited or expired (70,179 ) 50.71 (22,500 ) 49.76 — — Non-vested and expected to vest as of September 30, 2017 2,590,980 50.86 — — 50,000 59.43 |
Description of Business and O25
Description of Business and Organization (Detail Textuals) | 9 Months Ended |
Sep. 30, 2017CruiseShipBerth | |
Description Of Business And Organization [Line Items] | |
Number of cruises ships | 25 |
Capacity of ship, berths | Berth | 50,400 |
Project Leonardo | |
Description Of Business And Organization [Line Items] | |
Increased number of berths | Berth | 72,300 |
Ships launching period through 2025 | |
Description Of Business And Organization [Line Items] | |
Number of additional ships | 7 |
Ships launching period through 2025 | Project Leonardo | |
Description Of Business And Organization [Line Items] | |
Number of cruises ships | 4 |
Capacity of ship, berths | Berth | 3,300 |
Number of additional ships | 4 |
Ships launching period in 2026 and 2027 | |
Description Of Business And Organization [Line Items] | |
Number of additional ships | 2 |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Detail Textuals) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Accounting Policies [Abstract] | ||||
Amounts of tax included on a gross basis | $ 94.8 | $ 80.3 | $ 246.9 | $ 214.3 |
Foreign currency transaction gain (loss) | $ (3.9) | $ (1.4) | $ (14.8) | $ (1.8) |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Schedule Of Intangible Assets [Line Items] | ||
Intangible assets subject to amortization, Gross Carrying Amount | $ 124,028 | $ 124,028 |
Intangible assets subject to amortization, Accumulated Amortization | (61,340) | (37,895) |
Intangible assets subject to amortization, Net Carrying Amount | 62,688 | 86,133 |
License (Indefinite-lived) | 4,427 | 4,427 |
Customer relationships | ||
Schedule Of Intangible Assets [Line Items] | ||
Intangible assets subject to amortization, Gross Carrying Amount | 120,000 | 120,000 |
Intangible assets subject to amortization, Accumulated Amortization | (59,298) | (36,593) |
Intangible assets subject to amortization, Net Carrying Amount | $ 60,702 | $ 83,407 |
Weighted - Average Amortization Period (Years) | 6 years | 6 years |
Licenses | ||
Schedule Of Intangible Assets [Line Items] | ||
Intangible assets subject to amortization, Gross Carrying Amount | $ 3,368 | $ 3,368 |
Intangible assets subject to amortization, Accumulated Amortization | (1,382) | (807) |
Intangible assets subject to amortization, Net Carrying Amount | $ 1,986 | $ 2,561 |
Weighted - Average Amortization Period (Years) | 5 years 7 months 6 days | 5 years 7 months 6 days |
Non-compete agreements | ||
Schedule Of Intangible Assets [Line Items] | ||
Intangible assets subject to amortization, Gross Carrying Amount | $ 660 | $ 660 |
Intangible assets subject to amortization, Accumulated Amortization | (660) | (495) |
Intangible assets subject to amortization, Net Carrying Amount | $ 0 | $ 165 |
Weighted - Average Amortization Period (Years) | 1 year | 1 year |
Intangible Assets (Details 1)
Intangible Assets (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 7,780 | $ 5,601 | $ 23,445 | $ 16,552 |
Intangible Assets (Details 2)
Intangible Assets (Details 2) $ in Thousands | Sep. 30, 2017USD ($) |
Amortization Expense | |
2,018 | $ 26,163 |
2,019 | 18,489 |
2,020 | 9,906 |
2,021 | 75 |
2,022 | $ 75 |
Accumulated Other Comprehensi30
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive income (loss) at beginning of period | $ (316,186) | $ (414,363) | ||
Current period other comprehensive income before reclassifications | 221,512 | 112,508 | ||
Amounts reclassified into earnings | 31,906 | 76,981 | ||
Accumulated other comprehensive income (loss) at end of period | (62,768) | (224,874) | ||
Change Related to Cash Flow Hedges | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive income (loss) at beginning of period | (308,265) | (405,945) | ||
Current period other comprehensive income before reclassifications | 221,512 | 112,508 | ||
Amounts reclassified into earnings | [1] | 31,593 | 76,658 | |
Accumulated other comprehensive income (loss) at end of period | (55,160) | [2] | (216,779) | |
Change Related to Shipboard Retirement Plan | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive income (loss) at beginning of period | (7,921) | (8,418) | ||
Current period other comprehensive income before reclassifications | 0 | 0 | ||
Amounts reclassified into earnings | [3] | 313 | 323 | |
Accumulated other comprehensive income (loss) at end of period | $ (7,608) | $ (8,095) | ||
[1] | We refer you to Note 6 - "Fair Value Measurements and Derivatives" for the affected line items in the consolidated statements of operations. | |||
[2] | Includes $23.6 million of loss expected to be reclassified into earnings in the next 12 months. | |||
[3] | Amortization of prior-service cost and actuarial loss reclassified to payroll and related expense. |
Accumulated Other Comprehensi31
Accumulated Other Comprehensive Income (Loss) (Parentheticals) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Change Related to Cash Flow Hedges | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Amount expected to be reclassified into earnings | $ 23.6 |
Property and Equipment, net (De
Property and Equipment, net (Detail Textuals) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Property, Plant and Equipment [Abstract] | |
Property plant and equipment net increase due to ship improvement projects and ships under construction | $ 799.1 |
Hawaii land-based operations assets held for sale | 21.5 |
Hawaii land-based operations liabilities held for sale | 7.7 |
Impairment on assets | 2.9 |
Promissory note accepted on future date | $ 9.7 |
Fair Value Measurements and D33
Fair Value Measurements and Derivatives - Derivatives measured at fair value and discloses balance sheet location (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | $ 118,195 | $ 20,302 |
Derivative liabilities, fair value | 45,523 | 238,069 |
Fuel swaps | Designated as Hedging Instrument | Prepaid expenses and other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 5,796 | 20,288 |
Fuel swaps | Designated as Hedging Instrument | Other long-term assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 4,636 | |
Derivative liabilities, fair value | 1,903 | |
Fuel swaps | Designated as Hedging Instrument | Accrued expenses and other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 4,237 | |
Derivative liabilities, fair value | 26,069 | 44,271 |
Fuel swaps | Designated as Hedging Instrument | Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 7,724 | 13,237 |
Derivative liabilities, fair value | 17,578 | 38,608 |
Foreign currency forward contracts | Designated as Hedging Instrument | Prepaid expenses and other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 41,983 | |
Derivative liabilities, fair value | 1,354 | |
Foreign currency forward contracts | Designated as Hedging Instrument | Other long-term assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 65,780 | 14 |
Foreign currency forward contracts | Designated as Hedging Instrument | Accrued expenses and other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities, fair value | 61,788 | |
Foreign currency forward contracts | Designated as Hedging Instrument | Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities, fair value | 88,920 | |
Interest rate swaps | Designated as Hedging Instrument | Accrued expenses and other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities, fair value | $ 1,876 | 3,331 |
Interest rate swaps | Designated as Hedging Instrument | Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities, fair value | $ 1,151 |
Fair Value Measurements and D34
Fair Value Measurements and Derivatives - Amounts Recognized Within Assets and Liabilities Based on Right of Offset (Details 1) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value Disclosures [Abstract] | ||
Gross Amounts, Assets | $ 118,195 | $ 20,302 |
Gross Amounts Offset, Assets | (3,257) | 0 |
Total Net Amounts, Assets | 114,938 | 20,302 |
Gross Amounts Not Offset, Assets | (100,582) | (14) |
Net Amounts, Assets | 14,356 | 20,288 |
Gross Amounts, Liabilities | 45,523 | 238,069 |
Gross Amounts Offset, Liabilities | (11,961) | (13,237) |
Total Net Amounts, Liabilities | 33,562 | 224,832 |
Gross Amount Not Offset, Liabilities | (1,876) | (155,190) |
Net Amounts, Liabilities | $ 31,686 | $ 69,642 |
Fair Value Measurements and D35
Fair Value Measurements and Derivatives - Effects of Derivatives Designated as Cash flow Hedges (Details 2) - Cash Flow Hedging - Designated as Hedging Instrument - Fuel swaps - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in other comprehensive income - effective portion | $ 30,452 | $ (157) | $ (635) | $ 76,145 |
Gain (loss) recognized in other income (expense), net - ineffective portion | 496 | (2,602) | (305) | (11,353) |
Amount reclassified from accumulated other comprehensive income (loss) into fuel expense | $ 9,795 | $ 16,427 | $ 26,382 | $ 68,004 |
Fair Value Measurements and D36
Fair Value Measurements and Derivatives - Consolidated financial statements of fuel swaps dedesignated and immediately recognized into earnings (Details 3) - Reclassification out of Accumulated Other Comprehensive Income - Fuel swaps - Not Designated as Hedging Instrument - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Loss recognized in other income (expense), net | $ 0 | $ (179) | $ 0 | $ (271) |
Amount reclassified from accumulated other comprehensive income (loss) into other income (expense), net | $ 0 | $ 0 | $ 0 | $ 2,994 |
Fair Value Measurements and D37
Fair Value Measurements and Derivatives - Effects of Foreign Currency Options Designated as Cash flow Hedges (Details 4) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Cash Flow Hedging | Designated as Hedging Instrument | Foreign Currency Options | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount reclassified from accumulated other comprehensive income (loss) into depreciation and amortization expense | $ 330 | $ 330 | $ 990 | $ 990 |
Fair Value Measurements and D38
Fair Value Measurements and Derivatives - Effects of Foreign Currency Forward Contracts Designated as Cash flow Hedges (Details 5) - Cash Flow Hedging - Designated as Hedging Instrument - Foreign currency forward contracts - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain recognized in other comprehensive income - effective portion | $ 66,849 | $ 36,390 | $ 221,913 | $ 39,001 |
Loss recognized in other income (expense), net - ineffective portion | 0 | (190) | (66) | (181) |
Amount reclassified from accumulated other comprehensive income (loss) into depreciation and amortization expense | $ 918 | $ 665 | $ 2,192 | $ 1,966 |
Fair Value Measurements and D39
Fair Value Measurements and Derivatives - Effects of Foreign Currency Forward Contracts not Designated as Cash flow Hedges (Details 6) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Cash Flow Hedging | Not Designated as Hedging Instrument | Foreign currency forward contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Loss recognized in other income (expense), net | $ 0 | $ 0 | $ 0 | $ (6,133) |
Fair Value Measurements and D40
Fair Value Measurements and Derivatives - Effects of Foreign Currency Collar Designated as Cash Flow Hedges (Details 7) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Cash Flow Hedging | Designated as Hedging Instrument | Foreign Currency Collar | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount reclassified from accumulated other comprehensive income (loss) into depreciation and amortization expense | $ (91) | $ (91) | $ (273) | $ (273) |
Fair Value Measurements and D41
Fair Value Measurements and Derivatives - Effects of Foreign Currency Collar not Designated as hedging instrument (Details 8) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Cash Flow Hedging | Not Designated as Hedging Instrument | Foreign Currency Collar | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain recognized in other income (expense), net | $ 0 | $ 0 | $ 0 | $ 10,312 |
Fair Value Measurements and D42
Fair Value Measurements and Derivatives - Effects of Interest Rates Swaps Designated as Cash flow Hedges (Details 9) - Cash Flow Hedging - Designated as Hedging Instrument - Interest rate swaps - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in other comprehensive income - effective portion | $ (25) | $ 818 | $ 234 | $ (2,638) |
Gain recognized in other income (expense), net - ineffective portion | 0 | 0 | 0 | 3 |
Amount reclassified from accumulated other comprehensive income (loss) into interest expense, net | $ 691 | $ 996 | $ 2,301 | $ 2,977 |
Fair Value Measurements and D43
Fair Value Measurements and Derivatives (Detail Textuals) Metric_Ton in Millions, $ in Millions, € in Billions | 9 Months Ended | ||
Sep. 30, 2017USD ($)Metric_Ton | Sep. 30, 2017EUR (€)Metric_Ton | Dec. 31, 2016USD ($) | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value of long-term debt | $ 6,796.4 | $ 6,525.7 | |
Fair value of long-term debt in excess of carrying value | $ 62 | $ 11.6 | |
Fuel swaps | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative maturing date | Dec. 31, 2020 | ||
Projected fuel purchases | Metric_Ton | 1.4 | 1.4 | |
Foreign currency forward contracts | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notional amount of derivatives | $ 2,100 | € 1.8 | |
Interest rate swaps | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notional amount of derivatives | $ 237.2 |
Employee Benefits and Compens44
Employee Benefits and Compensation Plans - Summary of Option activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | ||
Options Outstanding, Weighted- Average Contractual Term | 7 years 2 months 19 days | 7 years 9 months 22 days |
Options Outstanding, Aggregate Intrinsic Value | $ 54,689 | $ 35,429 |
Time Based Awards | Norwegian Cruise Line Holdings Ltd. | ||
Number of Share Option Awards | ||
Outstanding as of January 1, 2017 | 7,775,058 | |
Granted | 0 | |
Exercised | (704,339) | |
Forfeited and cancelled | (385,070) | |
Outstanding as of September 30, 2017 | 6,685,649 | 7,775,058 |
Weighted-Average Exercise Price | ||
Outstanding as of January 1, 2017 | $ 48.04 | |
Granted | 0 | |
Exercised | 33.92 | |
Forfeited and cancelled | 54.42 | |
Outstanding as of September 30, 2017 | $ 49.16 | $ 48.04 |
Performance-Based Awards | Norwegian Cruise Line Holdings Ltd. | ||
Number of Share Option Awards | ||
Outstanding as of January 1, 2017 | 432,978 | |
Granted | 156,249 | |
Exercised | (83,288) | |
Forfeited and cancelled | (93,749) | |
Outstanding as of September 30, 2017 | 412,190 | 432,978 |
Weighted-Average Exercise Price | ||
Outstanding as of January 1, 2017 | $ 23.86 | |
Granted | 59.43 | |
Exercised | 19 | |
Forfeited and cancelled | 59.43 | |
Outstanding as of September 30, 2017 | $ 30.24 | $ 23.86 |
Market-Based Awards | Norwegian Cruise Line Holdings Ltd. | ||
Number of Share Option Awards | ||
Outstanding as of January 1, 2017 | 208,333 | |
Granted | 0 | |
Exercised | 0 | |
Forfeited and cancelled | 0 | |
Outstanding as of September 30, 2017 | 208,333 | 208,333 |
Weighted-Average Exercise Price | ||
Outstanding as of January 1, 2017 | $ 59.43 | |
Granted | 0 | |
Exercised | 0 | |
Forfeited and cancelled | 0 | |
Outstanding as of September 30, 2017 | $ 59.43 | $ 59.43 |
Employee Benefits and Compens45
Employee Benefits and Compensation Plans - Summary of Restricted Share Awards (Details 1) - Time-Based Awards - Restricted Stock | 9 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Number of Restricted Share | |
Non-vested as of January 1, 2017 | shares | 16,872 |
Granted | shares | 0 |
Vested | shares | (15,702) |
Forfeited or expired | shares | 0 |
Non-vested and expected to vest as of September 30, 2017 | shares | 1,170 |
Weighted-Average Grant-Date Fair Value | |
Non-vested as of January 1, 2017 | $ / shares | $ 7.63 |
Granted | $ / shares | 0 |
Vested | $ / shares | 4.94 |
Forfeited or expired | $ / shares | 0 |
Non-vested and expected to vest as of September 30, 2017 | $ / shares | $ 43.70 |
Employee Benefits and Compens46
Employee Benefits and Compensation Plans - Summary of Restricted Share Unit (Details 2) - Norwegian Cruise Line Holdings Ltd. - Restricted Share Unit | 9 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Time-Based Awards | |
Number of Restricted Share | |
Non-vested as of January 1, 2017 | shares | 1,305,335 |
Granted | shares | 1,803,327 |
Vested | shares | (447,503) |
Forfeited or expired | shares | (70,179) |
Non-vested and expected to vest as of September 30, 2017 | shares | 2,590,980 |
Weighted-Average Grant-Date Fair Value | |
Non-vested as of January 1, 2017 | $ / shares | $ 50.38 |
Granted | $ / shares | 51.13 |
Vested | $ / shares | 50.55 |
Forfeited or expired | $ / shares | 50.71 |
Non-vested and expected to vest as of September 30, 2017 | $ / shares | $ 50.86 |
Performance-Based Awards | |
Number of Restricted Share | |
Non-vested as of January 1, 2017 | shares | 0 |
Granted | shares | 37,500 |
Vested | shares | (15,000) |
Forfeited or expired | shares | (22,500) |
Non-vested and expected to vest as of September 30, 2017 | shares | 0 |
Weighted-Average Grant-Date Fair Value | |
Non-vested as of January 1, 2017 | $ / shares | $ 0 |
Granted | $ / shares | 49.76 |
Vested | $ / shares | 49.76 |
Forfeited or expired | $ / shares | 49.76 |
Non-vested and expected to vest as of September 30, 2017 | $ / shares | $ 0 |
Market-Based Awards | |
Number of Restricted Share | |
Non-vested as of January 1, 2017 | shares | 50,000 |
Granted | shares | 0 |
Vested | shares | 0 |
Forfeited or expired | shares | 0 |
Non-vested and expected to vest as of September 30, 2017 | shares | 50,000 |
Weighted-Average Grant-Date Fair Value | |
Non-vested as of January 1, 2017 | $ / shares | $ 59.43 |
Granted | $ / shares | 0 |
Vested | $ / shares | 0 |
Forfeited or expired | $ / shares | 0 |
Non-vested and expected to vest as of September 30, 2017 | $ / shares | $ 59.43 |
Employee Benefits and Compens47
Employee Benefits and Compensation Plans (Detail Textuals) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 21,500 | $ 63,664 | $ 48,289 |
Retained Earnings | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Change in accounting policy (share-based forfeitures) | $ 2,153 | ||
Time-Based Awards | Awarded on March 1, 2017 | Employee | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted share unit awards granted | 1,700,000 | ||
Vested period of stock-based awards | 3 years | ||
Performance Based Units | Awarded on March 1, 2017 | Members of management team | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted share unit awards granted | 121,000 | ||
Performance Based Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted share unit awards granted | 329,146 | ||
Performance Based Options | Amended and Restated Performance Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares granted | 208,335 | ||
Marketing, general and administrative expense | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 18,600 | $ 57,100 | |
Payroll and related expense | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 2,900 | $ 6,600 |
Commitments and Contingencies (
Commitments and Contingencies (Detail Textuals) - 9 months ended Sep. 30, 2017 € in Billions, $ in Billions | USD ($)Gross_TonCruiseShipBerth | EUR (€)Gross_TonCruiseShipBerth |
Commitments and Contingencies Disclosure [Line Items] | ||
Number of cruises ships | 25 | 25 |
Capacity of ship, berths | Berth | 50,400 | 50,400 |
Ships launching period through 2025 | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Number of additional ships | 7 | |
Ships launching period through 2025 | Project Leonardo | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Number of cruises ships | 4 | 4 |
Capacity of ship, tons | Gross_Ton | 140,000 | 140,000 |
Capacity of ship, berths | Berth | 3,300 | 3,300 |
Number of additional ships | 4 | |
Ships launching period in 2026 and 2027 | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Number of additional ships | 2 | |
Ship order delivery in winter 2020 | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Capacity of ship, tons | Gross_Ton | 55,000 | 55,000 |
Capacity of ship, berths | Berth | 750 | 750 |
Ship Construction Contracts | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Number of cruises ships | 7 | 7 |
Scheduled delivery date of ships under construction | spring of 2018 and fall of 2019 | |
Aggregate contract price of new ships based on the euro/U.S. dollar exchange rate | $ 6.5 | € 5.5 |
Export credit facility financing as percentage of contract price | 80.00% | 80.00% |
Ship Construction Contracts | Breakaway Plus Class Ships | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Number of cruises ships | 2 | 2 |
Capacity of ship, tons | Gross_Ton | 168,000 | 168,000 |
Capacity of ship, berths | Berth | 4,000 | 4,000 |
Other Income (Expense), Net (De
Other Income (Expense), Net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Other Income Expenses [Line Items] | ||||
Other operating income (expense), net | $ 3.3 | $ 5.3 | $ 11.7 | $ 13.3 |
Income Tax Expense (Details)
Income Tax Expense (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Income Tax Disclosure [Abstract] | |
Income tax expense associated with the reversal of prior years' tax contingency | $ 1.3 |
Supplemental Cash Flow Inform51
Supplemental Cash Flow Information (Detail Textuals) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Supplemental Cash Flow Elements [Abstract] | ||
Non-cash investing activity in connection with property and equipment | $ 15.2 | $ 22.3 |
Non-cash investing activities in connection with capital leases | $ 13.3 |
Subsequent Events (Detail Textu
Subsequent Events (Detail Textuals) - USD ($) | Oct. 10, 2017 | Sep. 30, 2017 |
NCLH | New Revolving Loan Facility | ||
Subsequent Event [Line Items] | ||
Aggregate amount of commitments | $ 750,000,000 | |
Subsequent Event | New Term Loan A Facility | New Revolving Loan Facility | Eurodollar | ||
Subsequent Event [Line Items] | ||
Description of variable rate basis | Eurocurrency loans | |
Initial applicable margin rate | 1.75% | |
Subsequent Event | New Term Loan A Facility | New Revolving Loan Facility | Eurodollar | Maximum | ||
Subsequent Event [Line Items] | ||
Description of variable rate basis | Eurocurrency loans | |
Initial applicable margin rate | 2.00% | |
Subsequent Event | New Term Loan A Facility | New Revolving Loan Facility | Eurodollar | Minimum | ||
Subsequent Event [Line Items] | ||
Description of variable rate basis | Eurocurrency loans | |
Initial applicable margin rate | 1.25% | |
Subsequent Event | New Term Loan A Facility | New Revolving Loan Facility | Base Rate | ||
Subsequent Event [Line Items] | ||
Description of variable rate basis | Base Rate | |
Initial applicable margin rate | 0.75% | |
Subsequent Event | New Term Loan A Facility | New Revolving Loan Facility | Base Rate | Maximum | ||
Subsequent Event [Line Items] | ||
Description of variable rate basis | Base Rate | |
Initial applicable margin rate | 1.00% | |
Subsequent Event | New Term Loan A Facility | New Revolving Loan Facility | Base Rate | Minimum | ||
Subsequent Event [Line Items] | ||
Description of variable rate basis | Base Rate | |
Initial applicable margin rate | 0.25% | |
Subsequent Event | New Term Loan B Facility | Eurodollar | ||
Subsequent Event [Line Items] | ||
Description of variable rate basis | Eurocurrency loans | |
Initial applicable margin rate | 1.75% | |
Subsequent Event | New Term Loan B Facility | Base Rate | ||
Subsequent Event [Line Items] | ||
Description of variable rate basis | Base Rate | |
Initial applicable margin rate | 0.75% | |
Subsequent Event | NCLH | 4.625% Senior Notes | ||
Subsequent Event [Line Items] | ||
Extended maturity year | 2,020 | |
Interest rate | 4.625% | |
Redemption price including accrued and unpaid interest | $ 1,044.41 | |
Outstanding principal amount of notes | 1,000 | |
Subsequent Event | NCLH | New Revolving Loan Facility | ||
Subsequent Event [Line Items] | ||
Aggregate amount of commitments | 875,000,000 | |
Subsequent Event | NCLH | New Term Loan A Facility | ||
Subsequent Event [Line Items] | ||
Principal amount | 1,412,000,000 | |
Subsequent Event | NCLH | New Term Loan B Facility | ||
Subsequent Event [Line Items] | ||
Principal amount | $ 375,000,000 | |
Extended maturity year | 2,021 |