Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Jul. 28, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'NCL CORP Ltd. | ' |
Entity Central Index Key | '0001318742 | ' |
Trading Symbol | 'ck | ' |
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 | 30-Jun-14 | ' |
Amendment Flag | 'false | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Revenue | ' | ' | ' | ' |
Passenger ticket | $538,059 | $457,619 | $996,549 | $816,547 |
Onboard and other | 227,868 | 186,814 | 433,406 | 355,517 |
Total revenue | 765,927 | 644,433 | 1,429,955 | 1,172,064 |
Cruise operating expense | ' | ' | ' | ' |
Commissions, transportation and other | 114,712 | 112,985 | 231,522 | 207,564 |
Onboard and other | 55,467 | 49,316 | 103,391 | 91,687 |
Payroll and related | 106,352 | 82,809 | 205,418 | 156,848 |
Fuel | 77,832 | 75,582 | 156,872 | 148,080 |
Food | 42,734 | 33,674 | 80,417 | 63,636 |
Other | 73,699 | 66,713 | 139,086 | 115,953 |
Total cruise operating expense | 470,796 | 421,079 | 916,706 | 783,768 |
Other operating expense | ' | ' | ' | ' |
Marketing, general and administrative | 82,426 | 72,647 | 163,509 | 157,417 |
Depreciation and amortization | 63,459 | 53,854 | 125,099 | 102,602 |
Total other operating expense | 145,885 | 126,501 | 288,608 | 260,019 |
Operating income | 149,246 | 96,853 | 224,641 | 128,277 |
Non-operating income (expense) | ' | ' | ' | ' |
Interest expense, net | -31,860 | -103,686 | -63,032 | -231,342 |
Other income (expense) | -325 | 429 | 63 | 1,794 |
Total non-operating income (expense) | -32,185 | -103,257 | -62,969 | -229,548 |
Net income (loss) before income taxes | 117,061 | -6,404 | 161,672 | -101,271 |
Income tax expense | -2,109 | -123 | -3,829 | -277 |
Net income (loss) | $114,952 | ($6,527) | $157,843 | ($101,548) |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income (loss) | $114,952 | ($6,527) | $157,843 | ($101,548) |
Other comprehensive income (loss): | ' | ' | ' | ' |
Shipboard Retirement Plan | 95 | 117 | 189 | 234 |
Cash flow hedges: | ' | ' | ' | ' |
Net unrealized income (loss) | 8,797 | -9,721 | -6,559 | -29,417 |
Amount realized and reclassified into earnings | -147 | -248 | 6 | -2,084 |
Total other comprehensive income (loss) | 8,745 | -9,852 | -6,364 | -31,267 |
Total comprehensive income (loss) | $123,697 | ($16,379) | $151,479 | ($132,815) |
Consolidated_Balance_Sheets_Un
Consolidated Balance Sheets (Unaudited) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $63,071 | $52,132 |
Accounts receivable, net | 27,145 | 18,260 |
Inventories | 52,566 | 43,715 |
Due from Affiliate | 3,439 | ' |
Prepaid expenses and other assets | 66,342 | 64,424 |
Total current assets | 212,563 | 178,531 |
Property and equipment, net | 6,305,328 | 5,647,670 |
Goodwill and tradenames | 611,330 | 611,330 |
Other long-term assets | 162,928 | 183,281 |
Total assets | 7,292,149 | 6,620,812 |
Current liabilities: | ' | ' |
Current portion of long-term debt | 372,911 | 286,575 |
Accounts payable | 102,745 | 86,788 |
Accrued expenses and other liabilities | 255,519 | 226,528 |
Due to Affiliate | 37,026 | 46,249 |
Advance ticket sales | 610,639 | 411,829 |
Total current liabilities | 1,378,840 | 1,057,969 |
Long-term debt | 3,129,337 | 2,841,214 |
Due to Affiliate | 36,880 | 55,128 |
Other long-term liabilities | 39,149 | 34,240 |
Total liabilities | 4,584,206 | 3,988,551 |
Commitments and contingencies (Note 7) | ' | ' |
Shareholders' equity | ' | ' |
Ordinary shares, $.0012 par value; 40,000,000 shares authorized; 31,164,004 and 21,000,000 shares issued and outstanding at June 30, 2014 and December 31, 2013, respectively | 37 | 25 |
Additional paid-in capital | 2,843,740 | 2,828,568 |
Due from Management NCL Corporation Unit holders | -2,833 | ' |
Accumulated other comprehensive income (loss) | -23,326 | -16,962 |
Retained earnings (deficit) | -109,675 | -179,370 |
Total shareholders' equity | 2,707,943 | 2,632,261 |
Total liabilities and shareholders' equity | $7,292,149 | $6,620,812 |
Consolidated_Balance_Sheets_Un1
Consolidated Balance Sheets (Unaudited) (Parentheticals) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Statement Of Financial Position [Abstract] | ' | ' |
Ordinary shares, par value (in dollars per share) | $0.00 | $0.00 |
Ordinary shares, authorized | 40,000,000 | 40,000,000 |
Ordinary shares, issued | 31,164,004 | 21,000,000 |
Ordinary shares, outstanding | 31,164,004 | 21,000,000 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Cash flows from operating activities | ' | ' |
Net income (loss) | $157,843 | ($101,548) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' |
Depreciation and amortization expense | 141,228 | 115,946 |
Gain on derivatives | -62 | -270 |
Deferred income taxes, net | 1,388 | ' |
Write-off of deferred financing fees | ' | 36,357 |
Share-based compensation expense | 5,079 | 19,356 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable, net | -12,324 | -1,308 |
Inventories | -8,851 | -5,748 |
Prepaid expenses and other assets | -8,810 | 1,655 |
Accounts payable | 15,957 | 17,974 |
Accrued expenses and other liabilities | 47,539 | -11,133 |
Advance ticket sales | 194,913 | 187,868 |
Net cash provided by operating activities | 533,900 | 259,149 |
Cash flows from investing activities | ' | ' |
Additions to property and equipment | -787,566 | -759,020 |
Net cash used in investing activities | -787,566 | -759,020 |
Cash flows from financing activities | ' | ' |
Repayments of long-term debt | -540,237 | -2,081,520 |
Repayments to Affiliate | -18,521 | -98,171 |
Dividends | -73,700 | ' |
Proceeds from long-term debt | 914,545 | 2,289,253 |
Contribution from NCLH | ' | 460,000 |
Partnership tax distributions | -17,281 | ' |
Other | -201 | -38,999 |
Net cash provided by financing activities | 264,605 | 530,563 |
Net increase in cash and cash equivalents | 10,939 | 30,692 |
Cash and cash equivalents at beginning of period | 52,132 | 45,500 |
Cash and cash equivalents at end of period | $63,071 | $76,192 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) (USD $) | Ordinary Shares | Additional Paid-in Capital | Due From Managment NCL Corporation Unit Holders | Accumulated Other Comprehensive Income (Loss) | Retained Earnings (Deficit) | Total |
In Thousands | ||||||
Balance at Dec. 31, 2012 | $25 | $2,335,563 | ' | ($17,619) | ($299,185) | $2,018,784 |
Share-based compensation | ' | 29,356 | ' | ' | ' | 29,356 |
Transactions with Affiliates, net | ' | -51 | ' | ' | ' | -51 |
Contribution from NCLH | ' | 460,000 | ' | ' | ' | 460,000 |
Other comprehensive loss | ' | ' | ' | -31,267 | ' | -31,267 |
Net income (loss) | ' | ' | ' | ' | -101,548 | -101,548 |
Balance at Jun. 30, 2013 | 25 | 2,824,868 | ' | -48,886 | -400,733 | 2,375,274 |
Balance at Dec. 31, 2013 | 25 | 2,828,568 | ' | -16,962 | -179,370 | 2,632,261 |
Share-based compensation | ' | 5,079 | ' | ' | ' | 5,079 |
Transactions with Affiliates, net | ' | -59 | ' | ' | ' | -59 |
Dividends | ' | ' | ' | ' | -73,700 | -73,700 |
Partnership tax distributions | ' | ' | -2,833 | ' | -14,448 | -17,281 |
Issuance of ordinary shares | 12 | 10,152 | ' | ' | ' | 10,164 |
Other comprehensive loss | ' | ' | ' | -6,364 | ' | -6,364 |
Net income (loss) | ' | ' | ' | ' | 157,843 | 157,843 |
Balance at Jun. 30, 2014 | $37 | $2,843,740 | ($2,833) | ($23,326) | ($109,675) | $2,707,943 |
Corporate_Reorganization
Corporate Reorganization | 6 Months Ended | |
Jun. 30, 2014 | ||
Corporate Reorganization [Abstract] | ' | |
Corporate Reorganization | ' | |
1 | Corporate Reorganization | |
In February 2011, NCLH, a Bermuda limited company, was formed with the issuance to the Sponsors of, in aggregate, 10,000 ordinary shares, with a par value of $.001 per share. On January 24, 2013, NCLH consummated the IPO. In connection with the consummation of the IPO, the Sponsors’ ordinary shares in NCLC were exchanged for the ordinary shares of NCLH at a share exchange ratio of 1.0 to 8.42565 and NCLH became the owner of 100% of the ordinary shares (representing a 97.3% economic interest) and parent company of NCLC (the “Corporate Reorganization”). Accordingly, NCLH contributed $460.0 million to NCLC and the historical financial statements of NCLC became those of NCLH. The Corporate Reorganization was effected solely for the purpose of reorganizing our corporate structure. NCLH had not prior to the completion of the Corporate Reorganization conducted any activities other than those incidental to its formation and to preparations for the Corporate Reorganization and IPO. The Corporate Reorganization resulted in all parties being in the same economic position immediately prior to the IPO. As the economic position of the investors did not change as part of the Corporate Reorganization it is considered a nonsubstantive merger from an accounting perspective. | ||
NCLC is treated as a partnership for U.S. federal income tax purposes, and the terms of the partnership (including the economic rights with respect thereto) are set forth in an amended and restated tax agreement for NCLC. Economic interests in NCLC are represented by the partnership interests established under the tax agreement, which we refer to as “NCL Corporation Units.” The NCL Corporation Units held by NCLH (as a result of its ownership of 100% of the ordinary shares of NCLC) represent a 97.9% economic interest in NCLC as of June 30, 2014. The remaining 2.1% economic interest in NCLC as of June 30, 2014 is in the form of Management NCL Corporation Units held by management (or former management). As a result of the aforementioned transactions and the Secondary Offerings, the Sponsors owned 55.9% of NCLH’s ordinary shares as of June 30, 2014. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 6 Months Ended | ||
Jun. 30, 2014 | |||
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 summer months. The interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2013, which are included in our most recently filed Annual Report on Form 10-K. | |||
Shareholder’s Equity | |||
We issued 10,164,004 shares to NCLH in order to settle an outstanding intercompany liability. | |||
Dividends of $73.7 million were distributed to NCLH during the three months ended June 30, 2014. These dividends were authorized by NCLC’s Board of Directors in April 2014 in order to facilitate NCLH’s $500.0 million share repurchase program. | |||
As of June 30, 2014, NCLC distributed cash of $17.3 million to NCLH and Management NCL Corporation Unit holders to facilitate partnership tax payments. Of these distributions, $3.1 million was distributed to Management NCL Corporation Unit holders and $2.8 million will be repaid to the Company upon exchange of each Unit holders' Units. | |||
Revenue and Expense Recognition | |||
Revenue and expense includes taxes assessed by governmental authorities that are directly imposed on a revenue-producing transaction between a seller and a customer. The amounts included in revenue and expense on a gross basis were $44.6 million and $36.1 million for the three months ended June 30, 2014 and 2013, respectively, and $82.5 million and $67.5 million for the six months ended June 30, 2014 and 2013, respectively. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||
3 | Accumulated Other Comprehensive Income (Loss) | ||||||||||||
Accumulated other comprehensive income (loss) for the six months ended June 30, 2014 was as follows (in thousands): | |||||||||||||
Accumulated | Change | Change | |||||||||||
Other | Related to | Related to | |||||||||||
Comprehensive | Cash Flow | Shipboard | |||||||||||
Income (Loss) | Hedges | Retirement | |||||||||||
Plan | |||||||||||||
Accumulated other comprehensive income (loss) at beginning of period | $ | (16,962 | ) | $ | (9,753 | ) | $ | (7,209 | ) | ||||
Current period other comprehensive loss before reclassifications | (6,559 | ) | (6,559 | ) | — | ||||||||
Amounts reclassified | 195 | 6 | -1 | 189 | -2 | ||||||||
Accumulated other comprehensive income (loss) at end of period | $ | (23,326 | ) | $ | (16,306 | )(3) | $ | (7,020 | ) | ||||
-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 $2.5 million of income expected to be reclassified into earnings in the next 12 months. | ||||||||||||
Accumulated other comprehensive income (loss) for the six months ended June 30, 2013 was as follows (in thousands): | |||||||||||||
Accumulated | Change | Change | |||||||||||
Other | Related to | Related to | |||||||||||
Comprehensive | Cash Flow | Shipboard | |||||||||||
Income (Loss) | Hedges | Retirement | |||||||||||
Plan | |||||||||||||
Accumulated other comprehensive income (loss) at beginning of period | $ | (17,619 | ) | $ | (7,872 | ) | $ | (9,747 | ) | ||||
Current period other comprehensive loss before reclassifications | (29,417 | ) | (29,417 | ) | — | ||||||||
Amounts reclassified | (1,850 | ) | (2,084 | )(1) | 234 | -2 | |||||||
Accumulated other comprehensive income (loss) at end of period | $ | (48,886 | ) | $ | (39,373 | ) | $ | (9,513 | ) | ||||
-1 | Amount reclassified to fuel expense. | ||||||||||||
-2 | Amortization of prior-service cost and actuarial loss reclassified to payroll and related expense. | ||||||||||||
Property_and_Equipment_Net
Property and Equipment, Net | 6 Months Ended | |
Jun. 30, 2014 | ||
Property Plant And Equipment [Abstract] | ' | |
Property and Equipment, Net | ' | |
4 | Property and Equipment, Net | |
The balance as of June 30, 2014 reflects the delivery of Norwegian Getaway in January 2014. |
Related_Party_Disclosures
Related Party Disclosures | 6 Months Ended | |
Jun. 30, 2014 | ||
Related Party Transactions [Abstract] | ' | |
Related Party Disclosures | ' | |
5 | Related Party Disclosures | |
In March 2014, the Selling Shareholders sold 15,000,000 ordinary shares of NCLH in the Secondary Offering. We did not receive any proceeds from this offering. As of June 30, 2014, the relative ownership percentages of NCLH’s ordinary shares were approximately as follows: Genting HK (28.0%), the Apollo Funds (20.0%), the TPG Viking Funds (7.9%), and public shareholders (44.1%). As of June 30, 2014, NCLH had a 97.9% economic interest in NCLC. |
Fair_Value_Measurements_and_De
Fair Value Measurements and Derivatives | 6 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
Derivative Instruments And Hedging Activities Disclosure [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) in our consolidated statements of operations. There are no amounts excluded from the assessment of hedge effectiveness and there are no credit-risk-related contingent features in our derivative agreements. | |||||||||||||||||||||
We monitor concentrations of credit risk associated with financial and other institutions with which we conduct significant business. Credit risk, including but not limited to counterparty non-performance under derivatives and our revolving credit facility, is not considered significant, as we primarily conduct business with large, well-established financial institutions that we have established relationships with and that have credit risks acceptable to us or the credit risk is spread out among a large number of creditors. We do not anticipate non-performance by any of our significant counterparties. | |||||||||||||||||||||
The following table sets forth our derivatives measured at fair value and discloses the balance sheet location (in thousands): | |||||||||||||||||||||
Asset | Liability | ||||||||||||||||||||
Balance Sheet location | June 30, | December 31, | June 30, | December 31, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Fuel swaps designated as hedging instruments | |||||||||||||||||||||
Prepaid expenses and other assets | $ | 7,020 | $ | 5,024 | $ | 184 | $ | 666 | |||||||||||||
Other long-term assets | 4,351 | 6,869 | 41 | 9 | |||||||||||||||||
Other long-term liabilities | 14 | — | 26 | — | |||||||||||||||||
Fuel collars designated as hedging instruments | |||||||||||||||||||||
Prepaid expenses and other assets | 65 | 452 | 9 | 195 | |||||||||||||||||
Fuel options not designated as hedging instruments | |||||||||||||||||||||
Prepaid expenses and other assets | — | — | 9 | 195 | |||||||||||||||||
Foreign currency options designated as hedging instruments | |||||||||||||||||||||
Accrued expenses and other liabilities | — | — | — | 9,815 | |||||||||||||||||
Foreign currency forward contracts designated as hedging instruments | |||||||||||||||||||||
Prepaid expenses and other assets | — | 2,624 | — | — | |||||||||||||||||
Other long-term assets | 88 | — | — | — | |||||||||||||||||
Asset | Liability | ||||||||||||||||||||
Balance Sheet location | June 30, | December 31, | June 30, | December 31, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Accrued expenses and other liabilities | — | — | — | 6,582 | |||||||||||||||||
Foreign currency collar designated as a hedging instrument | |||||||||||||||||||||
Prepaid expenses and other assets | — | 12,502 | — | — | |||||||||||||||||
Interest rate swaps designated as hedging instruments | |||||||||||||||||||||
Accrued expenses and other liabilities | — | — | 3,201 | 1,707 | |||||||||||||||||
Other long-term liabilities | — | — | 3,581 | 1,374 | |||||||||||||||||
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. We are not required to post cash collateral related to our derivative instruments. The following table discloses the amounts recognized within assets and liabilities (in thousands): | |||||||||||||||||||||
30-Jun-14 | Gross Amounts | Gross | Total Net | Gross | Net Amounts | ||||||||||||||||
Amounts | Amounts | Amounts Not | |||||||||||||||||||
Offset | Offset | ||||||||||||||||||||
Assets | $ | 11,524 | $ | (243 | ) | $ | 11,281 | $ | (88 | ) | $ | 11,193 | |||||||||
Liabilities | 6,808 | (14 | ) | 6,794 | (6,782 | ) | 12 | ||||||||||||||
December 31, 2013 | Gross Amounts | Gross | Total Net | Gross | Net Amounts | ||||||||||||||||
Amounts | Amounts | Amounts Not | |||||||||||||||||||
Offset | Offset | ||||||||||||||||||||
Assets | $ | 27,471 | $ | (1,065 | ) | $ | 26,406 | $ | (15,126 | ) | $ | 11,280 | |||||||||
Liabilities | 19,478 | — | 19,478 | (19,478 | ) | — | |||||||||||||||
Fuel Swaps | |||||||||||||||||||||
As of June 30, 2014, we had fuel swaps maturing through December 31, 2016 which are used to mitigate the financial impact of volatility in fuel prices pertaining to approximately 656,000 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 | Six Months Ended | ||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Gain (loss) recognized in other comprehensive income (loss) – effective portion | $ | 11,610 | $ | (18,074 | ) | $ | 1,839 | $ | (13,368 | ) | |||||||||||
Gain (loss) recognized in other income (expense) – ineffective portion | 451 | (320 | ) | 35 | (99 | ) | |||||||||||||||
Amount reclassified from accumulated other comprehensive income (loss) into fuel expense | (1,218 | ) | (736 | ) | (1,923 | ) | (2,999 | ) | |||||||||||||
Fuel Collars and Options | |||||||||||||||||||||
As of June 30, 2014, we had fuel collars and options maturing through December 31, 2014 which are used to mitigate the financial impact of volatility in fuel prices pertaining to approximately 17,000 metric tons of our projected fuel purchases. The effects on the consolidated financial statements of the fuel collars which were designated as cash flow hedges were as follows (in thousands): | |||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Gain (loss) recognized in other comprehensive income (loss) – effective portion | $ | 15 | $ | (1,500 | ) | $ | (309 | ) | $ | (1,535 | ) | ||||||||||
Gain (loss) recognized in other income (expense) – ineffective portion | (1 | ) | 14 | 107 | 22 | ||||||||||||||||
Amount reclassified from accumulated other comprehensive income (loss) into fuel expense | 371 | 391 | 741 | 818 | |||||||||||||||||
The effects on the consolidated financial statements of the fuel options which were not designated as hedging instruments were as follows (in thousands): | |||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Gain (loss) recognized in other income (expense) | $ | 101 | $ | (275 | ) | $ | 186 | $ | 581 | ||||||||||||
Foreign Currency Forward Contracts | |||||||||||||||||||||
As of June 30, 2014, we had a foreign currency forward contract which is used to mitigate the financial impact of volatility in foreign currency exchange rates related to a ship construction contract denominated in euros. The notional amount of our foreign currency forward contract was €20.0 million, or $27.4 million based on the euro/U.S. dollar exchange rate as of June 30, 2014. The effects on the consolidated financial statements of the foreign currency forward contract which was designated as a cash flow hedge was as follows (in thousands): | |||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Gain (loss) recognized in other comprehensive income (loss) – effective portion | $ | 88 | $ | 8,747 | $ | (988 | ) | $ | (7,886 | ) | |||||||||||
Gain (loss) recognized in other income (expense) – ineffective portion | — | (2 | ) | (1 | ) | 66 | |||||||||||||||
Amount reclassified from accumulated other comprehensive income (loss) into depreciation and amortization expense | (64 | ) | (20 | ) | (117 | ) | (20 | ) | |||||||||||||
The effects on the consolidated financial statements of the foreign currency forward contracts which were not designated as hedging instruments were as follows (in thousands): | |||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Gain recognized in other income (expense) | $ | — | $ | — | $ | — | $ | 20 | |||||||||||||
Foreign Currency Options | |||||||||||||||||||||
We had foreign currency options that matured through January 2014, which consisted of call options with deferred premiums. These options were used to mitigate the financial impact of volatility in foreign currency exchange rates related to our ship construction contracts denominated in euros. If the spot rate at the date the ships were delivered was less than the strike price under these option contracts, we would have paid the deferred premium and would not exercise the foreign currency options. | |||||||||||||||||||||
The effects on the consolidated financial statements of the foreign currency options which were designated as cash flow hedges were as follows (in thousands): | |||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Loss recognized in other comprehensive income (loss) – effective portion | $ | — | $ | (341 | ) | $ | (1,157 | ) | $ | (4,353 | ) | ||||||||||
Loss recognized in other income (expense) – ineffective portion | — | (22 | ) | (241 | ) | (320 | ) | ||||||||||||||
Amount reclassified from accumulated other comprehensive income (loss) into depreciation and amortization expense | 329 | 117 | 608 | 117 | |||||||||||||||||
Foreign Currency Collar | |||||||||||||||||||||
We had a foreign currency collar that matured in January 2014. The collar was used to mitigate the volatility of foreign currency exchange rates related to a ship construction contract 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 | Six Months Ended | ||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Gain (loss) recognized in other comprehensive income (loss)– effective portion | $ | — | $ | 1,447 | $ | (1,588 | ) | $ | (2,275 | ) | |||||||||||
Amount reclassified from accumulated other comprehensive income (loss) into depreciation and amortization expense | (91 | ) | — | (151 | ) | — | |||||||||||||||
Interest Rate Swaps | |||||||||||||||||||||
As of June 30, 2014, we had interest rate swap agreements to mitigate 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 $654.0 million. | |||||||||||||||||||||
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 | Six Months Ended | ||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Loss recognized in other comprehensive income (loss) – effective portion | $ | (2,916 | ) | $ | — | $ | (4,356 | ) | $ | — | |||||||||||
Amount reclassified from accumulated other comprehensive income (loss) into interest expense, net | 526 | — | 848 | — | |||||||||||||||||
Long-Term Debt | |||||||||||||||||||||
As of June 30, 2014 and December 31, 2013, the fair value of our long-term debt, including the current portion, was $3,626.1 million and $3,146.4 million, which was $123.9 million and $18.6 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. The calculation of the fair value of our long-term debt is considered a Level 2 input. | |||||||||||||||||||||
Other | |||||||||||||||||||||
The carrying amounts reported in the consolidated balance sheets of all financial assets and liabilities other than our long-term debt approximate fair value. |
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended | |
Jun. 30, 2014 | ||
Commitments And Contingencies Disclosure [Abstract] | ' | |
Commitments and Contingencies | ' | |
7 | Commitments and Contingencies | |
Ship Construction Contracts | ||
As of June 30, 2014, we have two ships on order with Meyer Werft for delivery in the fall of 2015 and the spring of 2017. These Breakaway Plus Class Ships will be approximately 163,000 Gross Tons and 4,200 Berths each. The combined contract cost of these two ships is approximately €1.4 billion, or $1.9 billion based on the euro/U.S. dollar exchange rate as of June 30, 2014. We have export credit financing in place that provides financing for 80% of their contract prices. We refer you to Note 8— “Subsequent Events” regarding orders for two additional Breakaway Plus Class Ships. | ||
In connection with the contracts to build the ships, we do not anticipate any contractual breaches or cancellation to occur. However, if any would occur, it could result in, among other things, the forfeiture of prior deposits or payments made by us and potential claims and impairment losses which may materially impact our business, financial condition and results of operations. | ||
Litigation | ||
In July 2009, a class action complaint was filed against NCL (Bahamas) Ltd. in the United States District Court, Southern District of Florida, on behalf of a purported class of crew members alleging inappropriate deductions of their wages pursuant to the Seaman’s Wage Act and wrongful termination resulting in a loss of retirement benefits. In December 2010, the Court denied the plaintiffs’ Motion for Class Certification. In February 2011, the plaintiffs filed a Motion for Reconsideration as to the Court’s Order on Class Certification which was denied. The Court tried six individual plaintiffs’ claims, and in September 2012 awarded wages aggregating approximately $100,000 to such plaintiffs. In October 2013, the United States Court of Appeals for the Eleventh Circuit affirmed the Court’s rulings as to the denial of Class Certification and the trial verdict. The Plaintiffs filed a petition for a writ of certiorari in the United States Supreme Court seeking review of the appellate court’s decision which was denied in March 2014. We are vigorously defending this action and are not able at this time to estimate the impact of these proceedings. | ||
In May 2011, a class action complaint was filed against NCL (Bahamas) Ltd. in the United States District Court, Southern District of Florida, on behalf of a purported class of crew members alleging inappropriate deductions of their wages pursuant to the Seaman’s Wage Act and breach of contract. In July 2012, this action was stayed by the Court pending the outcome of the litigation commenced with the class action complaint filed in July 2009. We are vigorously defending this action and are not able at this time to estimate the impact of these proceedings. | ||
In the normal course of our business, various other claims and lawsuits have been filed or are pending against us. Most of these claims and lawsuits are covered by insurance and, accordingly, the maximum amount of our liability is typically limited to our deductible amount. Nonetheless, the ultimate outcome of these claims and lawsuits that are not covered by insurance cannot be determined at this time. We have evaluated our overall exposure with respect to all of our threatened and pending litigation and, to the extent required, we have accrued amounts for all estimable probable losses associated with our deemed exposure. We are currently unable to estimate any other reasonably possible contingent losses beyond those accrued, as discovery is not complete nor is adequate information available to estimate such range of loss or potential recovery. We intend to vigorously defend our legal position on all claims and, to the extent necessary, seek recovery. |
Subsequent_Events
Subsequent Events | 6 Months Ended | |
Jun. 30, 2014 | ||
Subsequent Events [Abstract] | ' | |
Subsequent Events | ' | |
8 | Subsequent Events | |
On July 8, 2014, we entered into agreements with Meyer Werft for two additional Breakaway Plus Class Ships for delivery in the spring of 2018 and the fall of 2019. Each ship will be approximately 164,600 Gross Tons and 4,200 Berths. The combined contract cost of these two additional ships is approximately €1.6 billion or $2.2 billion based on the euro/U.S. dollar exchange rate as of July 8, 2014. We have export credit financing in place that provides financing for 80% of their contract prices. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
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 summer months. The interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2013, which are included in our most recently filed Annual Report on Form 10-K. | |
Shareholder's Equity | ' |
Shareholder’s Equity | |
We issued 10,164,004 shares to NCLH in order to settle an outstanding intercompany liability. | |
Dividends of $73.7 million were distributed to NCLH during the three months ended June 30, 2014. These dividends were authorized by NCLC’s Board of Directors in April 2014 in order to facilitate NCLH’s $500.0 million share repurchase program. | |
As of June 30, 2014, NCLC distributed cash of $17.3 million to NCLH and Management NCL Corporation Unit holders to facilitate partnership tax payments. Of these distributions, $3.1 million was distributed to Management NCL Corporation Unit holders and $2.8 million will be repaid to the Company upon exchange of each Unit holders' Units. | |
Revenue and Expense Recognition | ' |
Revenue and Expense Recognition | |
Revenue and expense includes taxes assessed by governmental authorities that are directly imposed on a revenue-producing transaction between a seller and a customer. The amounts included in revenue and expense on a gross basis were $44.6 million and $36.1 million for the three months ended June 30, 2014 and 2013, respectively, and $82.5 million and $67.5 million for the six months ended June 30, 2014 and 2013, respectively. |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||
Accumulated other comprehensive income (loss) for the six months ended June 30, 2014 was as follows (in thousands): | |||||||||||||
Accumulated | Change | Change | |||||||||||
Other | Related to | Related to | |||||||||||
Comprehensive | Cash Flow | Shipboard | |||||||||||
Income (Loss) | Hedges | Retirement | |||||||||||
Plan | |||||||||||||
Accumulated other comprehensive income (loss) at beginning of period | $ | (16,962 | ) | $ | (9,753 | ) | $ | (7,209 | ) | ||||
Current period other comprehensive loss before reclassifications | (6,559 | ) | (6,559 | ) | — | ||||||||
Amounts reclassified | 195 | 6 | -1 | 189 | -2 | ||||||||
Accumulated other comprehensive income (loss) at end of period | $ | (23,326 | ) | $ | (16,306 | )(3) | $ | (7,020 | ) | ||||
-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 $2.5 million of income expected to be reclassified into earnings in the next 12 months. | ||||||||||||
Accumulated other comprehensive income (loss) for the six months ended June 30, 2013 was as follows (in thousands): | |||||||||||||
Accumulated | Change | Change | |||||||||||
Other | Related to | Related to | |||||||||||
Comprehensive | Cash Flow | Shipboard | |||||||||||
Income (Loss) | Hedges | Retirement | |||||||||||
Plan | |||||||||||||
Accumulated other comprehensive income (loss) at beginning of period | $ | (17,619 | ) | $ | (7,872 | ) | $ | (9,747 | ) | ||||
Current period other comprehensive loss before reclassifications | (29,417 | ) | (29,417 | ) | — | ||||||||
Amounts reclassified | (1,850 | ) | (2,084 | )(1) | 234 | -2 | |||||||
Accumulated other comprehensive income (loss) at end of period | $ | (48,886 | ) | $ | (39,373 | ) | $ | (9,513 | ) | ||||
-1 | Amount reclassified to fuel expense. | ||||||||||||
-2 | Amortization of prior-service cost and actuarial loss reclassified to payroll and related expense. |
Fair_Value_Measurements_and_De1
Fair Value Measurements and Derivatives (Tables) | 6 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
Derivatives measured at fair value and disclosed by balance sheet location | ' | ||||||||||||||||||||
The following table sets forth our derivatives measured at fair value and discloses the balance sheet location (in thousands): | |||||||||||||||||||||
Asset | Liability | ||||||||||||||||||||
Balance Sheet location | June 30, | December 31, | June 30, | December 31, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Fuel swaps designated as hedging instruments | |||||||||||||||||||||
Prepaid expenses and other assets | $ | 7,020 | $ | 5,024 | $ | 184 | $ | 666 | |||||||||||||
Other long-term assets | 4,351 | 6,869 | 41 | 9 | |||||||||||||||||
Other long-term liabilities | 14 | — | 26 | — | |||||||||||||||||
Fuel collars designated as hedging instruments | |||||||||||||||||||||
Prepaid expenses and other assets | 65 | 452 | 9 | 195 | |||||||||||||||||
Fuel options not designated as hedging instruments | |||||||||||||||||||||
Prepaid expenses and other assets | — | — | 9 | 195 | |||||||||||||||||
Foreign currency options designated as hedging instruments | |||||||||||||||||||||
Accrued expenses and other liabilities | — | — | — | 9,815 | |||||||||||||||||
Foreign currency forward contracts designated as hedging instruments | |||||||||||||||||||||
Prepaid expenses and other assets | — | 2,624 | — | — | |||||||||||||||||
Other long-term assets | 88 | — | — | — | |||||||||||||||||
Asset | Liability | ||||||||||||||||||||
Balance Sheet location | June 30, | December 31, | June 30, | December 31, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Accrued expenses and other liabilities | — | — | — | 6,582 | |||||||||||||||||
Foreign currency collar designated as a hedging instrument | |||||||||||||||||||||
Prepaid expenses and other assets | — | 12,502 | — | — | |||||||||||||||||
Interest rate swaps designated as hedging instruments | |||||||||||||||||||||
Accrued expenses and other liabilities | — | — | 3,201 | 1,707 | |||||||||||||||||
Other long-term liabilities | — | — | 3,581 | 1,374 | |||||||||||||||||
Amounts recognized within assets and liabilities based on right of offset | ' | ||||||||||||||||||||
The following table discloses the amounts recognized within assets and liabilities (in thousands): | |||||||||||||||||||||
30-Jun-14 | Gross Amounts | Gross | Total Net | Gross | Net Amounts | ||||||||||||||||
Amounts | Amounts | Amounts Not | |||||||||||||||||||
Offset | Offset | ||||||||||||||||||||
Assets | $ | 11,524 | $ | (243 | ) | $ | 11,281 | $ | (88 | ) | $ | 11,193 | |||||||||
Liabilities | 6,808 | (14 | ) | 6,794 | (6,782 | ) | 12 | ||||||||||||||
December 31, 2013 | Gross Amounts | Gross | Total Net | Gross | Net Amounts | ||||||||||||||||
Amounts | Amounts | Amounts Not | |||||||||||||||||||
Offset | Offset | ||||||||||||||||||||
Assets | $ | 27,471 | $ | (1,065 | ) | $ | 26,406 | $ | (15,126 | ) | $ | 11,280 | |||||||||
Liabilities | 19,478 | — | 19,478 | (19,478 | ) | — | |||||||||||||||
Fuel Swaps | ' | ||||||||||||||||||||
Effects of derivatives designated as cash flow hedges | ' | ||||||||||||||||||||
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 | Six Months Ended | ||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Gain (loss) recognized in other comprehensive income (loss) – effective portion | $ | 11,610 | $ | (18,074 | ) | $ | 1,839 | $ | (13,368 | ) | |||||||||||
Gain (loss) recognized in other income (expense) – ineffective portion | 451 | (320 | ) | 35 | (99 | ) | |||||||||||||||
Amount reclassified from accumulated other comprehensive income (loss) into fuel expense | (1,218 | ) | (736 | ) | (1,923 | ) | (2,999 | ) | |||||||||||||
Fuel Collars | ' | ||||||||||||||||||||
Effects of derivatives designated as cash flow hedges | ' | ||||||||||||||||||||
The effects on the consolidated financial statements of the fuel collars which were designated as cash flow hedges were as follows (in thousands): | |||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Gain (loss) recognized in other comprehensive income (loss) – effective portion | $ | 15 | $ | (1,500 | ) | $ | (309 | ) | $ | (1,535 | ) | ||||||||||
Gain (loss) recognized in other income (expense) – ineffective portion | (1 | ) | 14 | 107 | 22 | ||||||||||||||||
Amount reclassified from accumulated other comprehensive income (loss) into fuel expense | 371 | 391 | 741 | 818 | |||||||||||||||||
Foreign Currency Options | ' | ||||||||||||||||||||
Effects of derivatives designated as cash flow hedges | ' | ||||||||||||||||||||
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 | Six Months Ended | ||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Loss recognized in other comprehensive income (loss) – effective portion | $ | — | $ | (341 | ) | $ | (1,157 | ) | $ | (4,353 | ) | ||||||||||
Loss recognized in other income (expense) – ineffective portion | — | (22 | ) | (241 | ) | (320 | ) | ||||||||||||||
Amount reclassified from accumulated other comprehensive income (loss) into depreciation and amortization expense | 329 | 117 | 608 | 117 | |||||||||||||||||
Foreign Currency Forward Contracts | ' | ||||||||||||||||||||
Effects of derivatives designated as cash flow hedges | ' | ||||||||||||||||||||
The effects on the consolidated financial statements of the foreign currency forward contract which was designated as a cash flow hedge was as follows (in thousands): | |||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Gain (loss) recognized in other comprehensive income (loss) – effective portion | $ | 88 | $ | 8,747 | $ | (988 | ) | $ | (7,886 | ) | |||||||||||
Gain (loss) recognized in other income (expense) – ineffective portion | — | (2 | ) | (1 | ) | 66 | |||||||||||||||
Amount reclassified from accumulated other comprehensive income (loss) into depreciation and amortization expense | (64 | ) | (20 | ) | (117 | ) | (20 | ) | |||||||||||||
Foreign Currency Collar | ' | ||||||||||||||||||||
Effects of derivatives designated as cash flow hedges | ' | ||||||||||||||||||||
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 | Six Months Ended | ||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Gain (loss) recognized in other comprehensive income (loss)– effective portion | $ | — | $ | 1,447 | $ | (1,588 | ) | $ | (2,275 | ) | |||||||||||
Amount reclassified from accumulated other comprehensive income (loss) into depreciation and amortization expense | (91 | ) | — | (151 | ) | — | |||||||||||||||
Interest Rate Swap | ' | ||||||||||||||||||||
Effects of derivatives designated as cash flow hedges | ' | ||||||||||||||||||||
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 | Six Months Ended | ||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Loss recognized in other comprehensive income (loss) – effective portion | $ | (2,916 | ) | $ | — | $ | (4,356 | ) | $ | — | |||||||||||
Amount reclassified from accumulated other comprehensive income (loss) into interest expense, net | 526 | — | 848 | — | |||||||||||||||||
Not Designated as Hedging Instrument | Fuel Options | ' | ||||||||||||||||||||
Effects of fuel options which were not designated as hedging instruments | ' | ||||||||||||||||||||
The effects on the consolidated financial statements of the fuel options which were not designated as hedging instruments were as follows (in thousands): | |||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Gain (loss) recognized in other income (expense) | $ | 101 | $ | (275 | ) | $ | 186 | $ | 581 | ||||||||||||
Not Designated as Hedging Instrument | Foreign Currency Forward Contracts | ' | ||||||||||||||||||||
Effects of fuel options which were not designated as hedging instruments | ' | ||||||||||||||||||||
The effects on the consolidated financial statements of the foreign currency forward contracts which were not designated as hedging instruments were as follows (in thousands): | |||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Gain recognized in other income (expense) | $ | — | $ | — | $ | — | $ | 20 |
Corporate_Reorganization_Detai
Corporate Reorganization (Detail Textuals) (USD $) | 6 Months Ended | 6 Months Ended | 1 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jan. 24, 2013 | Feb. 28, 2011 | Jun. 30, 2014 |
Sponsors | Norwegian Cruise Line Holdings Ltd. | Norwegian Cruise Line Holdings Ltd. | Norwegian Cruise Line Holdings Ltd. | |||
Corporate Reorganization [Line Items] | ' | ' | ' | ' | ' | ' |
Number of ordinary shares issued | 10,164,004 | ' | ' | ' | 10,000 | ' |
Ordinary shares, par value (in dollars per share) | $0.00 | $0.00 | ' | ' | $0.00 | ' |
Share exchange ratio | ' | ' | ' | '1.0 to 8.42565 | ' | ' |
Ownership percentage | 100.00% | ' | 55.90% | 100.00% | ' | ' |
Percentage of economic interest | ' | ' | ' | 97.30% | ' | 97.90% |
Contribution to NCLC | ' | ' | ' | $460 | ' | ' |
Remaining percentage of economic interest held by former management | 2.10% | ' | ' | ' | ' | ' |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Detail Textuals) (USD $) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Accounting Policies [Abstract] | ' | ' | ' | ' | ' |
Amounts of tax included on a gross basis | ' | $44,600,000 | $36,100,000 | $82,500,000 | $67,500,000 |
Dividends distributed | ' | 73,700,000 | ' | 73,700,000 | ' |
Shares issued to NCLH to settle outstanding intercompany liability | ' | ' | ' | 10,164,004 | ' |
Share repurchase program, authorized amount | 500,000,000 | ' | ' | ' | ' |
Cash distributed to facilitate partnership tax payments | ' | ' | ' | 17,281,000 | ' |
Due from management NCL corporation unit holders | ' | 2,833,000 | ' | 2,833,000 | ' |
Estimated payment pursuant to partnership tax distribution | ' | $3,100,000 | ' | ' | ' |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) (Detail) (USD $) | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ||
Accumulated other comprehensive income (loss) at beginning of period | ($16,962) | ($17,619) | ||
Current period other comprehensive loss before reclassifications | -6,559 | -29,417 | ||
Amounts reclassified | 195 | -1,850 | ||
Accumulated other comprehensive income (loss) at end of period | -23,326 | -48,886 | ||
Change Related to Cash Flow Hedges | ' | ' | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ||
Accumulated other comprehensive income (loss) at beginning of period | -9,753 | -7,872 | ||
Current period other comprehensive loss before reclassifications | -6,559 | -29,417 | ||
Amounts reclassified | 6 | [1] | -2,084 | [2] |
Accumulated other comprehensive income (loss) at end of period | -16,306 | [3] | -39,373 | |
Change Related to Shipboard Retirement Plan | ' | ' | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ||
Accumulated other comprehensive income (loss) at beginning of period | -7,209 | -9,747 | ||
Current period other comprehensive loss before reclassifications | ' | ' | ||
Amounts reclassified | 189 | [4] | 234 | [4] |
Accumulated other comprehensive income (loss) at end of period | ($7,020) | ($9,513) | ||
[1] | We refer you to Note 6 "Fair Value Measurements and Derivatives" for the affected line items in the Consolidated Statements of Operations. | |||
[2] | Amount reclassified to fuel expense. | |||
[3] | Includes $2.5 million of income expected to be reclassified into earnings in the next 12 months. | |||
[4] | Amortization of prior-service cost and actuarial loss reclassified to payroll and related expense. |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Loss) (Parenthetical) (Detail) (Change Related to Cash Flow Hedges, USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Change Related to Cash Flow Hedges | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' |
OCI (Loss), Expected reclassification adjustment from AOCI on derivatives, net of tax | $2.50 |
Related_Party_Disclosures_Deta
Related Party Disclosures (Detail Textuals) | 1 Months Ended | ||||||
Mar. 31, 2014 | Jun. 30, 2014 | Jan. 24, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | |
Norwegian Cruise Line Holdings Ltd. | Norwegian Cruise Line Holdings Ltd. | Norwegian Cruise Line Holdings Ltd. | Norwegian Cruise Line Holdings Ltd. | Norwegian Cruise Line Holdings Ltd. | Norwegian Cruise Line Holdings Ltd. | ||
Genting HK | Apollo Funds | TPG Viking Funds | Public Placement | ||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Common stock shares sold in secondary offering | 15,000,000 | ' | ' | ' | ' | ' | ' |
Percentage of economic interest | ' | 97.90% | 97.30% | ' | ' | ' | ' |
Ordinary shares ownership percentage | ' | ' | ' | 28.00% | 20.00% | 7.90% | 44.10% |
Fair_Value_Measurements_and_De2
Fair Value Measurements and Derivatives (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ' | ' |
Assets | $11,524 | $27,471 |
Liability | 6,808 | 19,478 |
Designated as Hedging Instrument | Fuel Swaps | Prepaid Expenses and other Assets | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Assets | 7,020 | 5,024 |
Liability | 184 | 666 |
Designated as Hedging Instrument | Fuel Swaps | Other long-term assets | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Assets | 4,351 | 6,869 |
Liability | 41 | 9 |
Designated as Hedging Instrument | Fuel Swaps | Other long-term liabilities | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Assets | 14 | ' |
Liability | 26 | ' |
Designated as Hedging Instrument | Fuel Collars | Prepaid Expenses and other Assets | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Assets | 65 | 452 |
Liability | 9 | 195 |
Designated as Hedging Instrument | Foreign Currency Options | Accrued expenses and other liabilities | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Assets | ' | ' |
Liability | ' | 9,815 |
Designated as Hedging Instrument | Foreign Currency Forward Contracts | Prepaid Expenses and other Assets | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Assets | ' | 2,624 |
Liability | ' | ' |
Designated as Hedging Instrument | Foreign Currency Forward Contracts | Other long-term assets | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Assets | 88 | ' |
Liability | ' | ' |
Designated as Hedging Instrument | Foreign Currency Forward Contracts | Accrued expenses and other liabilities | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Assets | ' | ' |
Liability | ' | 6,582 |
Designated as Hedging Instrument | Foreign Currency Collar | Prepaid Expenses and other Assets | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Assets | ' | 12,502 |
Liability | ' | ' |
Designated as Hedging Instrument | Interest Rate Swap | Accrued expenses and other liabilities | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Assets | ' | ' |
Liability | 3,201 | 1,707 |
Designated as Hedging Instrument | Interest Rate Swap | Other long-term liabilities | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Assets | ' | ' |
Liability | 3,581 | 1,374 |
Not Designated as Hedging Instrument | Fuel Options | Prepaid Expenses and other Assets | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Assets | ' | ' |
Liability | $9 | $195 |
Fair_Value_Measurements_and_De3
Fair Value Measurements and Derivatives - Assets and Liabilities Based on Right of Offset (Detail 1) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ' |
Assets, Gross Amounts | $11,524 | $27,471 |
Assets, Gross Amounts Offset | -243 | -1,065 |
Assets, Total Net Amounts | 11,281 | 26,406 |
Assets, Gross Amounts Not Offset | -88 | -15,126 |
Assets, Net Amounts | 11,193 | 11,280 |
Liabilities, Gross Amounts | 6,808 | 19,478 |
Liabilities, Gross Amounts Offset | -14 | ' |
Liabilities, Total Net Amounts | 6,794 | 19,478 |
Liabilities, Gross Amount Not Offset | -6,782 | -19,478 |
Liabilities, Net Amounts | $12 | ' |
Fair_Value_Measurements_and_De4
Fair Value Measurements and Derivatives - Effects of Derivatives Designated as Cash flow Hedges (Detail 2) (Cash Flow Hedging, Designated as Hedging Instrument, Fuel Swaps, USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Cash Flow Hedging | Designated as Hedging Instrument | Fuel Swaps | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (loss) recognized in other comprehensive income (loss) - effective portion | $11,610 | ($18,074) | $1,839 | ($13,368) |
Gain (loss) recognized in other income (expense) - ineffective portion | 451 | -320 | 35 | -99 |
Amount reclassified from accumulated other comprehensive income (loss) into fuel expense | ($1,218) | ($736) | ($1,923) | ($2,999) |
Fair_Value_Measurements_and_De5
Fair Value Measurements and Derivatives - Effects of Fuel Collars Designated as Cash flow Hedges (Detail 3) (Cash Flow Hedging, Designated as Hedging Instrument, Fuel Collars, USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Cash Flow Hedging | Designated as Hedging Instrument | Fuel Collars | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (loss) recognized in other comprehensive income (loss) - effective portion | $15 | ($1,500) | ($309) | ($1,535) |
Gain (loss) recognized in other income (expense) - ineffective portion | -1 | 14 | 107 | 22 |
Amount reclassified from accumulated other comprehensive income (loss) into fuel expense | $371 | $391 | $741 | $818 |
Fair_Value_Measurements_and_De6
Fair Value Measurements and Derivatives - Effects of Fuel Options Which Were Not Designated as Hedging Instruments (Detail 4) (Not Designated as Hedging Instrument, Fuel Options, USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Not Designated as Hedging Instrument | Fuel Options | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (loss) recognized in other income (expense) | $101 | ($275) | $186 | $581 |
Fair_Value_Measurements_and_De7
Fair Value Measurements and Derivatives - Effects of Foreign Currency Forward Contracts Designated as Cash flow Hedges (Detail 5) (Cash Flow Hedging, Designated as Hedging Instrument, Foreign Currency Forward Contracts, USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Cash Flow Hedging | Designated as Hedging Instrument | Foreign Currency Forward Contracts | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (loss) recognized in other comprehensive income (loss) - effective portion | $88 | $8,747 | ($988) | ($7,886) |
Gain (loss) recognized in other income (expense) - ineffective portion | ' | -2 | -1 | 66 |
Amount reclassified from accumulated other comprehensive income (loss) into depreciation and amortization expense | ($64) | ($20) | ($117) | ($20) |
Fair_Value_Measurements_and_De8
Fair Value Measurements and Derivatives - Effects of Foreign Currency Forward Contracts Not Designated as Cash flow Hedges (Detail 6) (Not Designated as Hedging Instrument, Foreign Currency Forward Contracts, USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Not Designated as Hedging Instrument | Foreign Currency Forward Contracts | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain recognized in other income (expense) | ' | ' | ' | $20 |
Fair_Value_Measurements_and_De9
Fair Value Measurements and Derivatives - Effects of Foreign Currency Options Designated as Cash flow Hedges (Detail 7) (Cash Flow Hedging, Designated as Hedging Instrument, Foreign Currency Options, USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Cash Flow Hedging | Designated as Hedging Instrument | Foreign Currency Options | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Loss recognized in other comprehensive income (loss) - effective portion | ' | ($341) | ($1,157) | ($4,353) |
Loss recognized in other income (expense) - ineffective portion | ' | -22 | -241 | -320 |
Amount reclassified from accumulated other comprehensive income (loss) into depreciation and amortization expense | $329 | $117 | $608 | $117 |
Recovered_Sheet1
Fair Value Measurements and Derivatives - Effects of Foreign Currency Collar Designated as Cash Flow Hedges (Detail 8) (Cash Flow Hedging, Designated as Hedging Instrument, Foreign Currency Collar, USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Cash Flow Hedging | Designated as Hedging Instrument | Foreign Currency Collar | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (loss) recognized in other comprehensive income (loss) - effective portion | ' | $1,447 | ($1,588) | ($2,275) |
Amount reclassified from accumulated other comprehensive income (loss) into depreciation and amortization expense | ($91) | ' | ($151) | ' |
Recovered_Sheet2
Fair Value Measurements and Derivatives - Effects of Interest Rates Swaps Designated as Cash flow Hedges (Detail 9) (Cash Flow Hedging, Designated as Hedging Instrument, Interest Rate Swap, USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Cash Flow Hedging | Designated as Hedging Instrument | Interest Rate Swap | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Loss recognized in other comprehensive income (loss) - effective portion | ($2,916) | ' | ($4,356) | ' |
Amount reclassified from accumulated other comprehensive income (loss) into interest expense, net | $526 | ' | $848 | ' |
Recovered_Sheet3
Fair Value Measurements and Derivatives (Detail Textuals) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
In Millions, unless otherwise specified | USD ($) | USD ($) | Fuel Swaps | Fuel Swaps | Fuel Collars and Options | Fuel Collars and Options | Foreign Currency Forward Contracts | Foreign Currency Forward Contracts | Interest Rate Swap |
Mg | Maximum | Mg | Maximum | USD ($) | EUR (€) | USD ($) | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative maturing date | ' | ' | ' | 31-Dec-16 | ' | 31-Dec-14 | ' | ' | ' |
Projected fuel purchases | ' | ' | 656,000 | ' | 17,000 | ' | ' | ' | ' |
Notional amount | ' | ' | ' | ' | ' | ' | $27.40 | € 20 | $654 |
Fair value of long-term debt | 3,626.10 | 3,146.40 | ' | ' | ' | ' | ' | ' | ' |
Fair value of long-term debt in excess of carrying value | $123.90 | $18.60 | ' | ' | ' | ' | ' | ' | ' |
Commitments_and_Contingencies_
Commitments and Contingencies (Detail Textuals) | 6 Months Ended | 1 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2012 | Feb. 28, 2011 | |
Ship Construction Contracts | Ship Construction Contracts | NCL (Bahamas) Ltd | NCL (Bahamas) Ltd | |
USD ($) | EUR (€) | USD ($) | LegalMatter | |
Berth | ||||
Ship | ||||
Ton | ||||
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' | ' |
Scheduled delivery date of ships under construction | 'Fourth quarter of 2015 and the first quarter of 2017 | 'Fourth quarter of 2015 and the first quarter of 2017 | ' | ' |
Cruising ships to be built | 2 | 2 | ' | ' |
Capacity of ship, tons | 163,000 | 163,000 | ' | ' |
Capacity of ship, berths | 4,200 | 4,200 | ' | ' |
Aggregate contract price of new ships | $1,900,000,000 | € 1,400,000,000 | ' | ' |
Export credit facility financing as percentage of contract price | 80.00% | 80.00% | ' | ' |
Number of individual plaintiff's claims | ' | ' | ' | 6 |
Awarded wages to plaintiffs | ' | ' | $100,000 | ' |
Subsequent_Events_Detail_Textu
Subsequent Events (Detail Textuals) (Meyer Werft, Subsequent Event, Ship Construction Contracts) | Jul. 08, 2014 | Jul. 08, 2014 |
In Billions, unless otherwise specified | USD ($) | EUR (€) |
Berth | ||
Ship | ||
Ton | ||
Subsequent Event [Line Items] | ' | ' |
Additional cruising ships to be built | 2 | 2 |
Capacity of ship, tons | 164,600 | 164,600 |
Capacity of ship, berths | 4,200 | 4,200 |
Aggregate contract price of new ships | $2.20 | € 1.60 |
Export credit facility financing as percentage of contract price | 80.00% | 80.00% |