NCL (NCLC) 10-Q 10 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 05, 2016
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	Mar. 31, 2016
Amendment Flag	false
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenue
Passenger ticket	$ 740,112	$ 670,483
Onboard and other	337,520	267,699
Total revenue	1,077,632	938,182
Cruise operating expense
Commissions, transportation and other	175,437	171,827
Onboard and other	63,965	58,645
Payroll and related	177,143	157,629
Fuel	81,672	87,374
Food	51,003	41,851
Other	115,261	106,374
Total cruise operating expense	664,481	623,700
Other operating expense
Marketing, general and administrative	179,590	153,500
Depreciation and amortization	101,295	99,976
Total other operating expense	280,885	253,476
Operating income	132,266	61,006
Non-operating income (expense)
Interest expense, net	(59,754)	(50,989)
Other income (expense)	2,805	(30,139)
Total non-operating income (expense)	(56,949)	(81,128)
Net income (loss) before income taxes	75,317	(20,122)
Income tax (expense) benefit	(344)	99
Net income (loss)	$ 74,973	$ (20,023)

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Statement Of Income And Comprehensive Income [Abstract]
Net income (loss)	$ 74,973	$ (20,023)
Other comprehensive income (loss):
Shipboard Retirement Plan	108	119
Cash flow hedges:
Net unrealized gain (loss)	70,450	(103,765)
Amount realized and reclassified into earnings	34,550	21,886
Total other comprehensive income (loss)	105,108	(81,760)
Total comprehensive income (loss)	$ 180,081	$ (101,783)

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 135,328	$ 113,183
Accounts receivable, net	45,382	44,996
Inventories	62,383	58,173
Prepaid expenses and other assets	129,063	121,259
Total current assets	372,156	337,611
Property and equipment, net	9,489,153	9,458,805
Goodwill	1,388,931	1,388,931
Tradenames	817,525	817,525
Other long-term assets	295,713	237,472
Total assets	12,363,478	12,240,344
Current liabilities:
Current portion of long-term debt	629,953	629,840
Accounts payable	54,210	51,352
Accrued expenses and other liabilities	604,644	637,743
Due to Affiliate	20,976	20,769
Due to NCLH	29,027	32,732
Advance ticket sales	1,178,749	1,023,973
Total current liabilities	2,517,559	2,396,409
Long-term debt	5,670,144	5,767,697
Other long-term liabilities	301,090	332,879
Total liabilities	$ 8,488,793	$ 8,496,985
Commitments and contingencies (Note 7)
Shareholders' equity:
Ordinary shares, $.0012 par value; 40,000,000 shares authorized; 31,164,004 shares issued and outstanding at March 31, 2016 and December 31, 2015, respectively	$ 37	$ 37
Additional paid-in capital	3,744,873	3,729,628
Accumulated other comprehensive income (loss)	(309,255)	(414,363)
Retained earnings	439,030	428,057
Total shareholders' equity	3,874,685	3,743,359
Total liabilities and shareholders' equity	$ 12,363,478	$ 12,240,344

Consolidated Balance Sheets (U5

Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares	Mar. 31, 2016	Dec. 31, 2015
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	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities
Net income (loss)	$ 74,973	$ (20,023)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization expense	104,686	104,533
(Gain) loss on derivatives	(11,948)	29,027
Deferred income taxes, net	46
Gain on contingent consideration		(9,100)
Write-off of deferred financing fees		195
Provision for bad debts and inventory	575
Share-based compensation expense	15,245	12,005
Changes in operating assets and liabilities:
Accounts receivable, net	(811)	1,474
Inventories	(4,360)	(80)
Prepaid expenses and other assets	(4,446)	(3,535)
Accounts payable	2,727	(17,469)
Accrued expenses and other liabilities	8,857	(29,424)
Advance ticket sales	148,621	255,556
Net cash provided by operating activities	334,165	323,159
Cash flows from investing activities
Additions to property and equipment, net	(132,027)	(73,131)
Settlement of derivatives	(1,167)
Net cash used in investing activities	(133,194)	(73,131)
Cash flows from financing activities
Repayments of long-term debt	(308,248)	(477,224)
Proceeds from long-term debt	204,000	224,033
Due to NCLH, net	(3,705)	43,421
Dividends	(64,000)
Deferred financing fees and other	(6,873)	(3,660)
Net cash used in financing activities	(178,826)	(213,430)
Net increase in cash and cash equivalents	22,145	36,598
Cash and cash equivalents at beginning of period	113,183	82,862
Cash and cash equivalents at end of period	$ 135,328	$ 119,460

Consolidated Statements of Chan

Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands	Ordinary Shares	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings	Total
Balance at Dec. 31, 2014	$ 37	$ 3,687,419	$ (244,355)	$ 76,256	$ 3,519,357
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation		12,005			12,005
Other Comprehensive Income (Loss), Net			(81,760)		(81,760)
Net income (loss)				(20,023)	(20,023)
Balance at Mar. 31, 2015	37	3,699,424	(326,115)	56,233	3,429,579
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		15,245			15,245
Dividends				(64,000)	(64,000)
Other Comprehensive Income (Loss), Net			105,108		105,108
Net income (loss)				74,973	74,973
Balance at Mar. 31, 2016	$ 37	$ 3,744,873	$ (309,255)	$ 439,030	$ 3,874,685

Description of Business and Org

Description of Business and Organization	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Description of Business and Organization	1. Description of Business and Organization NCLH is a leading global cruise company which operates the Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises brands. We have 23 ships with approximately 45,800 Berths including Sirena, previously under a Bareboat Charter, which joined our Oceania Cruises’ fleet in April 2016. We will introduce five additional ships to our fleet through 2020. We have two Explorer Class Ships on order for delivery in the summer of 2016 and the winter of 2020. Norwegian Joy is on order for delivery in the spring of 2017 and two additional Breakaway Plus Class Ships are on order for deliveries to the Norwegian fleet in the spring of 2018 and fall of 2019. These additions to our fleet will increase our total Berths to approximately 59,300.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2016
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, 2015, which are included in our most recently filed Annual Report on Form 10-K. Reclassification Certain amounts in prior periods have been reclassified to conform to the current period presentation. Revenue and Expense Recognition Deposits received from guests for future voyages are recorded as advance ticket sales and are subsequently recognized as passenger ticket revenue along with onboard and other revenue, and all associated direct costs of a voyage are recognized as cruise operating expenses on a pro-rata basis over the period of the voyage. Guest cancellation penalties are recognized in passenger ticket revenue in the month of the cancellation. Revenue and expenses include port fees and taxes. The amounts included on a gross basis are $62.5 million and $51.9 million for the three months ended March 31, 2016 and 2015, respectively. Foreign Currency The majority of our transactions are settled in U.S. dollars. We translate assets and liabilities of our foreign subsidiaries at exchange rates in effect at the balance sheet date. Gains or losses resulting from transactions denominated in other currencies are recognized in our consolidated statements of operations within other income (expense) and such losses were $(4.2) million and gains were $4.9 million for the three months ended March 31, 2016 and 2015, respectively. Depreciation and Amortization Expense The amortization of deferred financing fees are included in depreciation and amortization expense in the consolidated statements of cash flows but are included in interest expense, net and not included in the depreciation and amortization expense in the consolidated statements of operations. Recently Issued Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09 to improve multiple aspects of the accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. The guidance is effective for annual periods beginning after December 15, 2016 and interim periods within those annual periods with early adoption permitted. We are currently evaluating the impact of the adoption of this newly issued guidance to our consolidated financial statements. 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. We are currently evaluating the impact of the adoption of this newly issued guidance to our consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-11 to simplify the measurement of inventory for all entities. This applies to all inventory that is measured using either the first-in, first-out or average cost method. The guidance requires an entity to measure inventory at the lower of cost or net realizable value. The guidance must be applied prospectively and will be effective for our interim and annual reporting periods beginning after December 15, 2016. Early adoption is permitted as of the beginning of an interim or annual reporting period. We are currently evaluating the impact of the adoption of this newly issued guidance to our consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-05 to clarify a customer’s accounting for fees paid in a cloud computing arrangement. The amendments provide guidance to customers about whether a cloud computing arrangement includes a software license or if the arrangement should be accounted for as a service contract. This guidance will impact the accounting of software licenses but will not change a customer’s accounting for service contracts. The guidance will be effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. We have adopted this guidance and there has not been an impact to our consolidated financial statements. In May 2014, FASB issued ASU No. 2014-09 which requires entities to recognize revenue through the application of a five-step model, including identification of the contract, identification of the performance obligations, determination of the transaction price, allocation of the transaction price to the performance obligation and recognition of revenue as the entity satisfies the performance obligations. Entities have the option of using either a full retrospective or a modified approach to adopt the guidance. In August 2015, the FASB issued ASU No. 2015-14 deferring the effective date for one year. We can elect to adopt the provisions of ASU No. 2014-09 for annual periods beginning after December 15, 2017 including interim periods within that reporting period or we can elect to early adopt the guidance as of the original effective date. We are currently evaluating the impact of the adoption of this newly issued guidance to our consolidated financial statements.

Intangible Assets

Intangible Assets	3 Months Ended
	Mar. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	3. Intangible Assets The gross carrying amounts of intangible assets included within other long-term assets, the related accumulated amortization, the net carrying amounts and the weighted-average amortization periods of the Company’s intangible assets are listed in the following table (in thousands, except amortization period): March 31, 2016 Gross Carrying Accumulated Net Carrying Weighted- Customer relationships $ 120,000 $ (20,793 ) $ 99,207 6.0 Licenses 3,368 (331 ) 3,037 5.6 Total intangible assets subject to amortization $ 123,368 $ (21,124 ) $ 102,244 License (Indefinite-lived) $ 4,427 $ — $ — December 31, 2015 Gross Carrying Accumulated Net Carrying Weighted- Customer relationships $ 120,000 $ (15,527 ) $ 104,473 6.0 Backlog 70,000 (70,000 ) — 1.0 Licenses 3,368 (208 ) 3,160 5.6 Total intangible assets subject to amortization $ 193,368 $ (85,735 ) $ 107,633 License (Indefinite-lived) $ 4,427 $ — $ — The aggregate amortization expense is as follows (in thousands): Three months ended 2016 2015 Amortization expense $ 5,389 $ 18,230 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 2017 $ 31,177 2018 26,058 2019 18,489 2020 9,906 2021 75

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	3 Months Ended
	Mar. 31, 2016
Equity [Abstract]
Accumulated Other Comprehensive Income (Loss)	4. Accumulated Other Comprehensive Income (Loss) Accumulated other comprehensive income (loss) for the three months ended March 31, 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 70,450 70,450 — Amounts reclassified into earnings 34,658 34,550 (1) 108 (2) Accumulated other comprehensive income (loss) at end of period $ (309,255 ) $ (300,945 )(3) $ (8,310 ) (1) We refer you to Note 5 — “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 $119.2 million of loss expected to be reclassified into earnings in the next 12 months. Accumulated other comprehensive income (loss) for the three months ended March 31, 2015 was as follows (in thousands): Accumulated Change Change Accumulated other comprehensive income (loss) at beginning of period $ (244,355 ) $ (234,835 ) $ (9,520 ) Current period other comprehensive loss before reclassifications (103,765 ) (103,765 ) — Amounts reclassified into earnings 22,005 21,886 (1) 119 (2) Accumulated other comprehensive income (loss) at end of period $ (326,115 ) $ (316,714 ) $ (9,401 ) (1) We refer you to Note 5 — “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 Der

Fair Value Measurements and Derivatives	3 Months Ended
	Mar. 31, 2016
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Fair Value Measurements and Derivatives	5. 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 Loan 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 March 31, December 31, March 31, December 31, Fuel swaps designated as hedging instruments Prepaid expenses and other assets $ 6,283 $ — $ 256 $ — Other long-term assets 3,534 — 43 — Accrued expenses and other liabilities — — 117,016 128,740 Other long-term liabilities 1,241 — 132,656 132,494 Fuel swaps not designated as hedging instruments Prepaid expenses and other assets 16 — — — Accrued expenses and other liabilities — — 1,545 — Foreign currency forward contracts designated as hedging instruments Prepaid expenses and other assets 671 — — — Other long-term assets 59,812 3,446 2,953 1,370 Accrued expenses and other liabilities — — 138 8,737 Other long-term liabilities 1,397 551 5,390 24,181 Foreign currency collar not designated as a hedging instrument Accrued expenses and other liabilities — — 29,368 42,993 Interest rate swaps designated as hedging instruments Accrued expenses and other liabilities — — 3,882 4,079 Other long-term liabilities — — 4,490 3,395 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 exists. 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): March 31, 2016 Gross Amounts Gross Total Net Gross Net Amounts Assets $ 70,316 $ (3,252 ) $ 67,064 $ (49,147 ) $ 17,917 Liabilities 294,485 (2,638 ) 291,847 (39,761 ) 252,086 December 31, 2015 Gross Amounts Gross Total Net Gross Net Amounts Assets $ 3,446 $ (1,370 ) $ 2,076 $ (2,043 ) $ 33 Liabilities 344,619 (551 ) 344,068 (336,645 ) 7,423 Fuel Swaps As of March 31, 2016, we had fuel swaps maturing through December 31, 2019 which are used to mitigate the financial impact of volatility in fuel prices pertaining to approximately 2.0 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 2016 2015 Loss recognized in other comprehensive income (loss) – effective portion $ (9,506 ) $ (2,801 ) Loss recognized in other income (expense) – ineffective portion (5,227 ) (6,051 ) Amount reclassified from accumulated other comprehensive income (loss) into fuel expense 31,137 20,536 As of March 31, 2016, we had fuel swaps pertaining to approximately 14,000 metric tons 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 2016 2015 Amount reclassified from accumulated other comprehensive income (loss) into other income (expense) $ 1,529 $ — Fuel Collars We had fuel collars that matured and were used to mitigate the financial impact of volatility in fuel prices of our fuel purchases. The effects on the consolidated financial statements of the fuel collars which were designated as cash flow hedges were as follows (in thousands): Three Months Ended 2016 2015 Amount reclassified from accumulated other comprehensive income (loss) into fuel expense $ — $ 238 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 2016 2015 Amount reclassified from accumulated other comprehensive income (loss) into depreciation and amortization expense $ 330 $ 330 Foreign Currency Forward Contracts As of March 31, 2016, we had foreign currency forward contracts which are used to mitigate the financial impact of volatility in foreign currency exchange rates related to our ship construction contracts and forecasted Dry-dock payments denominated in euros. The notional amount of our foreign currency forward contracts was €2.3 billion, or $2.6 billion based on the euro/U.S. dollar exchange rate as of March 31, 2016. 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 2016 2015 Gain (loss) recognized in other comprehensive income (loss) – effective portion $ 82,511 $ (97,375 ) Gain (loss) recognized in other income (expense) – ineffective portion 11 (15 ) Amount reclassified from accumulated other comprehensive income (loss) into depreciation and amortization expense 645 (64 ) Foreign Currency Collar We had a foreign currency collar that matured and was used to mitigate the volatility of foreign currency exchange rates related to our ship construction contracts denominated in euros. The effects on the consolidated financial statements of the foreign currency collar which was designated as a cash flow hedge was as follows (in thousands): Three Months Ended 2016 2015 Amount reclassified from accumulated other comprehensive income (loss) into depreciation and amortization expense $ (91 ) $ (91 ) As of March 31, 2016, we had a foreign currency collar used to mitigate the volatility of foreign currency exchange rates related to our ship construction contracts denominated in euros. The notional amount of our foreign currency collar was €274.4 million, or $312.3 million based on the euro/U.S. dollar exchange rate as of March 31, 2016. 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 2016 2015 Gain (loss) recognized in other income (expense) $ 13,625 $ (28,953 ) Interest Rate Swaps As of March 31, 2016, 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 $411.7 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 2016 2015 Loss recognized in other comprehensive income (loss) – effective portion $ (2,555 ) $ (3,589 ) Gain (loss) recognized in other income (expense)– ineffective portion 3 (7 ) Amount reclassified from accumulated other comprehensive income (loss) into interest expense, net 1,000 937 We had an interest rate swap that matured in January 2015, which was used to mitigate our exposure to interest rate movements and to manage our interest expense. The effect on the consolidated financial statements of the interest rate swap contract which was not designated as a hedging instrument was as follows (in thousands): Three Months Ended 2016 2015 Loss recognized in other income (expense) $ — $ (2 ) Long-Term Debt As of March 31, 2016 and December 31, 2015, the fair value of our long-term debt, including the current portion, was $6.4 billion and $6.5 billion, respectively, which was $6.0 million and $6.6 million lower, 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. 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	3 Months Ended
	Mar. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Employee Benefits and Compensation Plans	6. Employee Benefits and Compensation Plans Share Option Awards On March 1, 2016, NCLH granted 1.0 million share option awards to our employees at an exercise price of $50.31 with a contractual term of ten years. The share options vest equally over three years. The following is a summary of option activity under NCLH’s share option plan for the three months ended March 31, 2016 (excludes the impact of 364,584 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 December 31, 2015 7,702,071 432,752 208,333 $ 47.35 $ 19.00 $ 59.43 8.59 $ 104,864 Granted 1,035,000 52,083 — 50.15 59.43 — Exercised (52,803 ) (40,359 ) — 25.92 19.00 — Forfeited and cancelled (329,027 ) — — 48.24 — — Outstanding as of March 31, 2016 8,355,241 444,476 208,333 $ 47.80 $ 23.74 $ 59.43 8.54 $ 85,185 Restricted Ordinary Share Awards The following is a summary of NCLH’s restricted ordinary share activity for the three months ended March 31, 2016: Number of Weighted- Non-vested as of January 1, 2016 43,653 $ 5.87 Granted — — Vested (10,462 ) 7.89 Forfeited or expired (352 ) 2.50 Non-vested and expected to vest as of March 31, 2016 32,839 $ 5.26 Restricted Share Unit Awards On March 1, 2016, NCLH granted 1.2 million restricted share unit awards to our employees which vest equally over three years. The following is a summary of restricted share unit activity for the three months ended March 31, 2016 (excludes the impact of 87,500 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, 2016 150,000 $ 59.43 — $ — 50,000 $ 59.43 Granted 1,228,990 50.42 12,500 50.00 — — Vested — — (12,500 ) 50.00 — — Forfeited or expired (18,500 ) 50.31 — — — — Non-vested and expected to vest as of March 31, 2016 1,360,490 $ 51.42 — $ — 50,000 $ 59.43 The share-based compensation expense for the three months ended March 31, 2016 was $15.2 million of which $13.7 million was recorded in marketing, general and administrative expense and $1.5 million was recorded in payroll and related expense.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2016
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	7. Commitments and Contingencies Ship Construction Contracts We have Norwegian Joy and two other Breakaway Plus Class Ships on order with Meyer Werft shipyard for delivery in the spring of 2017, spring of 2018 and fall of 2019, respectively. These ships will be the largest in our fleet, reaching approximately 164,600 Gross Tons. The combined contract price of these three ships is approximately €2.6 billion, or $3.0 billion based on the euro/U.S. dollar exchange rate as of March 31, 2016. We have export credit financing in place that provides financing for 80% of their contract prices. We also have contracts with Fincantieri shipyard to build two Explorer Class Ships. The original contract price of the ships is approximately €765.0 million, or approximately $870.6 million based on the euro/U.S. dollar exchange rate as of March 31, 2016. We have export credit financing in place that provides financing for 80% of these ships’ contract price. The two Explorer Class Ships are expected to be delivered in the summer of 2016 and winter of 2020. In connection with the second Explorer Class Ship, in March 2016 we entered into a financing agreement with a syndicate of banks that provides for up to $498.2 million of borrowings. Under the terms of this agreement, we may elect either a fixed or variable interest rate and the loan is payable over twelve years. In connection with the contracts to build these 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, subject to certain refund guarantees, 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 these claims and lawsuits that are not covered by insurance cannot be determined at this time. We have evaluated our overall exposure with respect to all of our threatened and pending litigation and, to the extent required, we have accrued amounts for all estimable probable losses associated with our deemed exposure. We are currently unable to estimate any other potential contingent losses beyond those accrued, as discovery is not complete nor is adequate information available to estimate such range of loss or potential recovery. We intend to vigorously defend our legal position on all claims and, to the extent necessary, seek recovery.

Restructuring Costs

Restructuring Costs	3 Months Ended
	Mar. 31, 2016
Restructuring and Related Activities [Abstract]
Restructuring Costs	8. Restructuring Costs Due to the Acquisition of Prestige, a number of employee positions were consolidated. As of March 31, 2016, we had an accrual balance of $2.5 million for restructuring costs for severance and other employee-related costs. The expense of $1.7 million for the three months ended March 31, 2016 is included in marketing, general and administrative expense. The following table summarizes changes in the accrual for restructuring costs (in thousands): Restructuring costs Accrued expense balance as of December 31, 2015 $ (4,144 ) Amounts paid 3,282 Additional accrued expense (1,660 ) Accrued expense balance as of March 31, 2016 $ (2,522 )

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	3 Months Ended
	Mar. 31, 2016
Supplemental Cash Flow Elements [Abstract]
Supplemental Cash Flow Information	9. Supplemental Cash Flow Information For the three months ended March 31, 2016, we had non-cash investing activities in connection with property and equipment of $7.5 million and for the three months ended March 31, 2015, we had non-cash investing activities in connection with capital leases of $27.6 million.

Revisions to the Consolidated F

Revisions to the Consolidated Financial Statements	3 Months Ended
	Mar. 31, 2016
Revisions To Consolidated Financial Statements [Abstract]
Revisions to the Consolidated Financial Statements	10. Revision to the Consolidated Statement of Cash Flows During the three months ended September 30, 2015, we determined that for the three months ended March 31, 2015 and six months ended June 30, 2015, cash payments related to property and equipment of $14.6 million and $18.5 million, respectively, were reported as a decrease in cash flows from operating activities related to the change in accrued expenses and other liabilities and prepaid and other assets when it should have been reported as a decrease in cash flows from investing activities related to additions to property and equipment. In addition, during the three months ended June 30, 2015, we determined that for the three months ended March 31, 2015 cash flows related to certain cash transactions with NCLH as Due to NCLH, net of $43.4 million was reported as net cash provided by operating activities and the amount should have been reported as net cash provided by financing activities. The Consolidated Statements of Cash Flows for the three months ended March 31, 2015 has been revised and the six months ended June 30, 2015 will be revised in future Form 10-Q filings.

Summary of Significant Accoun18

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2016
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, 2015, which are included in our most recently filed Annual Report on Form 10-K.
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 Deposits received from guests for future voyages are recorded as advance ticket sales and are subsequently recognized as passenger ticket revenue along with onboard and other revenue, and all associated direct costs of a voyage are recognized as cruise operating expenses on a pro-rata basis over the period of the voyage. Guest cancellation penalties are recognized in passenger ticket revenue in the month of the cancellation. Revenue and expenses include port fees and taxes. The amounts included on a gross basis are $62.5 million and $51.9 million for the three months ended March 31, 2016 and 2015, respectively.
Foreign Currency	Foreign Currency The majority of our transactions are settled in U.S. dollars. We translate assets and liabilities of our foreign subsidiaries at exchange rates in effect at the balance sheet date. Gains or losses resulting from transactions denominated in other currencies are recognized in our consolidated statements of operations within other income (expense) and such losses were $(4.2) million and gains were $4.9 million for the three months ended March 31, 2016 and 2015, respectively.
Depreciation and Amortization Expense	Depreciation and Amortization Expense The amortization of deferred financing fees are included in depreciation and amortization expense in the consolidated statements of cash flows but are included in interest expense, net and not included in the depreciation and amortization expense in the consolidated statements of operations.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09 to improve multiple aspects of the accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. The guidance is effective for annual periods beginning after December 15, 2016 and interim periods within those annual periods with early adoption permitted. We are currently evaluating the impact of the adoption of this newly issued guidance to our consolidated financial statements. 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. We are currently evaluating the impact of the adoption of this newly issued guidance to our consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-11 to simplify the measurement of inventory for all entities. This applies to all inventory that is measured using either the first-in, first-out or average cost method. The guidance requires an entity to measure inventory at the lower of cost or net realizable value. The guidance must be applied prospectively and will be effective for our interim and annual reporting periods beginning after December 15, 2016. Early adoption is permitted as of the beginning of an interim or annual reporting period. We are currently evaluating the impact of the adoption of this newly issued guidance to our consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-05 to clarify a customer’s accounting for fees paid in a cloud computing arrangement. The amendments provide guidance to customers about whether a cloud computing arrangement includes a software license or if the arrangement should be accounted for as a service contract. This guidance will impact the accounting of software licenses but will not change a customer’s accounting for service contracts. The guidance will be effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. We have adopted this guidance and there has not been an impact to our consolidated financial statements. In May 2014, FASB issued ASU No. 2014-09 which requires entities to recognize revenue through the application of a five-step model, including identification of the contract, identification of the performance obligations, determination of the transaction price, allocation of the transaction price to the performance obligation and recognition of revenue as the entity satisfies the performance obligations. Entities have the option of using either a full retrospective or a modified approach to adopt the guidance. In August 2015, the FASB issued ASU No. 2015-14 deferring the effective date for one year. We can elect to adopt the provisions of ASU No. 2014-09 for annual periods beginning after December 15, 2017 including interim periods within that reporting period or we can elect to early adopt the guidance as of the original effective date. We are currently evaluating the impact of the adoption of this newly issued guidance to our consolidated financial statements.

Intangible Assets (Tables)

Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets and Goodwill	March 31, 2016 Gross Carrying Accumulated Net Carrying Weighted- Customer relationships $ 120,000 $ (20,793 ) $ 99,207 6.0 Licenses 3,368 (331 ) 3,037 5.6 Total intangible assets subject to amortization $ 123,368 $ (21,124 ) $ 102,244 License (Indefinite-lived) $ 4,427 $ — $ — December 31, 2015 Gross Carrying Accumulated Net Carrying Weighted- Customer relationships $ 120,000 $ (15,527 ) $ 104,473 6.0 Backlog 70,000 (70,000 ) — 1.0 Licenses 3,368 (208 ) 3,160 5.6 Total intangible assets subject to amortization $ 193,368 $ (85,735 ) $ 107,633 License (Indefinite-lived) $ 4,427 $ — $ —
Schedule of Aggregate amortization expense	Three months ended 2016 2015 Amortization expense $ 5,389 $ 18,230
Schedule of estimated aggregate amortization expense	Year ended December 31, Amortization 2017 $ 31,177 2018 26,058 2019 18,489 2020 9,906 2021 75

Accumulated Other Comprehensi20

Accumulated Other Comprehensive Income (Loss) (Tables)	3 Months Ended
	Mar. 31, 2016
Equity [Abstract]
Schedule of accumulated other comprehensive income (loss)	Accumulated other comprehensive income (loss) for the three months ended March 31, 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 70,450 70,450 — Amounts reclassified into earnings 34,658 34,550 (1) 108 (2) Accumulated other comprehensive income (loss) at end of period $ (309,255 ) $ (300,945 )(3) $ (8,310 ) (1) We refer you to Note 5 — “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 $119.2 million of loss expected to be reclassified into earnings in the next 12 months. Accumulated other comprehensive income (loss) for the three months ended March 31, 2015 was as follows (in thousands): Accumulated Change Change Accumulated other comprehensive income (loss) at beginning of period $ (244,355 ) $ (234,835 ) $ (9,520 ) Current period other comprehensive loss before reclassifications (103,765 ) (103,765 ) — Amounts reclassified into earnings 22,005 21,886 (1) 119 (2) Accumulated other comprehensive income (loss) at end of period $ (326,115 ) $ (316,714 ) $ (9,401 ) (1) We refer you to Note 5 — “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 D21

Fair Value Measurements and Derivatives (Tables)	3 Months Ended
	Mar. 31, 2016
Schedule of derivatives measured at fair value and disclosed by balance sheet location	Asset Liability Balance Sheet location March 31, December 31, March 31, December 31, Fuel swaps designated as hedging instruments Prepaid expenses and other assets $ 6,283 $ — $ 256 $ — Other long-term assets 3,534 — 43 — Accrued expenses and other liabilities — — 117,016 128,740 Other long-term liabilities 1,241 — 132,656 132,494 Fuel swaps not designated as hedging instruments Prepaid expenses and other assets 16 — — — Accrued expenses and other liabilities — — 1,545 — Foreign currency forward contracts designated as hedging instruments Prepaid expenses and other assets 671 — — — Other long-term assets 59,812 3,446 2,953 1,370 Accrued expenses and other liabilities — — 138 8,737 Other long-term liabilities 1,397 551 5,390 24,181 Foreign currency collar not designated as a hedging instrument Accrued expenses and other liabilities — — 29,368 42,993 Interest rate swaps designated as hedging instruments Accrued expenses and other liabilities — — 3,882 4,079 Other long-term liabilities — — 4,490 3,395
Schedule of amounts recognized within assets and liabilities	March 31, 2016 Gross Amounts Gross Total Net Gross Net Amounts Assets $ 70,316 $ (3,252 ) $ 67,064 $ (49,147 ) $ 17,917 Liabilities 294,485 (2,638 ) 291,847 (39,761 ) 252,086 December 31, 2015 Gross Amounts Gross Total Net Gross Net Amounts Assets $ 3,446 $ (1,370 ) $ 2,076 $ (2,043 ) $ 33 Liabilities 344,619 (551 ) 344,068 (336,645 ) 7,423
Fuel Swaps
Schedule of effects of derivatives designated as cash flow hedges	Three Months Ended 2016 2015 Loss recognized in other comprehensive income (loss) – effective portion $ (9,506 ) $ (2,801 ) Loss recognized in other income (expense) – ineffective portion (5,227 ) (6,051 ) Amount reclassified from accumulated other comprehensive income (loss) into fuel expense 31,137 20,536
Designated as Hedging Instrument | Fuel Swaps
Schedule of effects of derivatives designated as cash flow hedges	Three Months Ended 2016 2015 Amount reclassified from accumulated other comprehensive income (loss) into other income (expense) $ 1,529 $ —
Designated as Hedging Instrument | Fuel Collars
Schedule of effects of derivatives designated as cash flow hedges	Three Months Ended 2016 2015 Amount reclassified from accumulated other comprehensive income (loss) into fuel expense $ — $ 238
Designated as Hedging Instrument | Foreign Currency Options
Schedule of effects of derivatives designated as cash flow hedges	Three Months Ended 2016 2015 Amount reclassified from accumulated other comprehensive income (loss) into depreciation and amortization expense $ 330 $ 330
Designated as Hedging Instrument | Foreign Currency Forward Contracts
Schedule of effects of derivatives designated as cash flow hedges	Three Months Ended 2016 2015 Gain (loss) recognized in other comprehensive income (loss) – effective portion $ 82,511 $ (97,375 ) Gain (loss) recognized in other income (expense) – ineffective portion 11 (15 ) Amount reclassified from accumulated other comprehensive income (loss) into depreciation and amortization expense 645 (64 )
Designated as Hedging Instrument | Foreign Currency Collar
Schedule of effects of derivatives designated as cash flow hedges	Three Months Ended 2016 2015 Amount reclassified from accumulated other comprehensive income (loss) into depreciation and amortization expense $ (91 ) $ (91 )
Designated as Hedging Instrument | Interest Rate Swap
Schedule of effects of derivatives designated as cash flow hedges	Three Months Ended 2016 2015 Loss recognized in other comprehensive income (loss) – effective portion $ (2,555 ) $ (3,589 ) Gain (loss) recognized in other income (expense)– ineffective portion 3 (7 ) Amount reclassified from accumulated other comprehensive income (loss) into interest expense, net 1,000 937
Not Designated as Hedging Instrument | Foreign Currency Collar
Schedule of effects of derivatives not designated as cash flow hedges	Three Months Ended 2016 2015 Gain (loss) recognized in other income (expense) $ 13,625 $ (28,953 )
Not Designated as Hedging Instrument | Interest Rate Swap
Schedule of effects of derivatives not designated as cash flow hedges	Three Months Ended 2016 2015 Loss recognized in other income (expense) $ — $ (2 )

Employee Benefits and Compens22

Employee Benefits and Compensation Plans (Tables)	3 Months Ended
	Mar. 31, 2016
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 December 31, 2015 7,702,071 432,752 208,333 $ 47.35 $ 19.00 $ 59.43 8.59 $ 104,864 Granted 1,035,000 52,083 — 50.15 59.43 — Exercised (52,803 ) (40,359 ) — 25.92 19.00 — Forfeited and cancelled (329,027 ) — — 48.24 — — Outstanding as of March 31, 2016 8,355,241 444,476 208,333 $ 47.80 $ 23.74 $ 59.43 8.54 $ 85,185
Restricted Ordinary Share Awards
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 Weighted- Non-vested as of January 1, 2016 43,653 $ 5.87 Granted — — Vested (10,462 ) 7.89 Forfeited or expired (352 ) 2.50 Non-vested and expected to vest as of March 31, 2016 32,839 $ 5.26
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, 2016 150,000 $ 59.43 — $ — 50,000 $ 59.43 Granted 1,228,990 50.42 12,500 50.00 — — Vested — — (12,500 ) 50.00 — — Forfeited or expired (18,500 ) 50.31 — — — — Non-vested and expected to vest as of March 31, 2016 1,360,490 $ 51.42 — $ — 50,000 $ 59.43

Restructuring Costs (Tables)

Restructuring Costs (Tables)	3 Months Ended
	Mar. 31, 2016
Restructuring and Related Activities [Abstract]
Schedule of changes in the accrual	Restructuring costs Accrued expense balance as of December 31, 2015 $ (4,144 ) Amounts paid 3,282 Additional accrued expense (1,660 ) Accrued expense balance as of March 31, 2016 $ (2,522 )

Description of Business and O24

Description of Business and Organization (Detail Textuals)	3 Months Ended
	Mar. 31, 2016BerthShip
Accounting Policies [Abstract]
Number of cruises ships	23
Ship passenger capacity berths	45,800
Number of additional ships introduce through 2020 | CruiseShip | Ship	5
Increase our total berths	59,300

Summary of Significant Accoun25

Summary of Significant Accounting Policies (Detail Textuals) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Accounting Policies [Abstract]
Amounts of tax included on a gross basis	$ 62.5	$ 51.9
Foreign currency transaction gain (loss)	$ (4.2)	$ 4.9

Intangible Assets (Details)

Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Schedule Of Intangible Assets [Line Items]
Intangible assets subject to amortization, Gross Carrying Amount	$ 123,368	$ 193,368
Intangible assets subject to amortization, Accumulated Amortization	(21,124)	(85,735)
Intangible assets subject to amortization, Net Carrying Amount	102,244	107,633
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	(20,793)	(15,527)
Intangible assets subject to amortization, Net Carrying Amount	$ 99,207	$ 104,473
Weighted - Average Amortization Period (Years)	6 years	6 years
Backlog
Schedule Of Intangible Assets [Line Items]
Intangible assets subject to amortization, Gross Carrying Amount		$ 70,000
Intangible assets subject to amortization, Accumulated Amortization		$ (70,000)
Intangible assets subject to amortization, Net Carrying Amount
Weighted - Average Amortization Period (Years)		1 year
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	(331)	(208)
Intangible assets subject to amortization, Net Carrying Amount	$ 3,037	$ 3,160
Weighted - Average Amortization Period (Years)	5 years 7 months 6 days	5 years 7 months 6 days

Intangible Assets (Details 1)

Intangible Assets (Details 1) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 5,389	$ 18,230

Intangible Assets (Details 2)

Intangible Assets (Details 2) $ in Thousands	Dec. 31, 2015USD ($)
Amortization Expense Year ended December 31,
2,017	$ 31,177
2,018	26,058
2,019	18,489
2,020	9,906
2,021	$ 75

Accumulated Other Comprehensi29

Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2016		Mar. 31, 2015
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Accumulated other comprehensive income (loss) at beginning of period		$ (414,363)		$ (244,355)
Current period other comprehensive loss before reclassifications		70,450		(103,765)
Amounts reclassified into earnings		34,658		22,005
Accumulated other comprehensive income (loss) at end of period		(309,255)		(326,115)
Change Related to Cash Flow Hedges
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Accumulated other comprehensive income (loss) at beginning of period		(405,945)		(234,835)
Current period other comprehensive loss before reclassifications		70,450		(103,765)
Amounts reclassified into earnings	[1]	34,550		21,886
Accumulated other comprehensive income (loss) at end of period		(300,945)	[2]	(316,714)
Change Related to Shipboard Retirement Plan
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Accumulated other comprehensive income (loss) at beginning of period		$ (8,418)		$ (9,520)
Current period other comprehensive loss before reclassifications
Amounts reclassified into earnings	[3]	$ 108		$ 119
Accumulated other comprehensive income (loss) at end of period		$ (8,310)		$ (9,401)
[1]	We refer you to Note 5 "Fair Value Measurements and Derivatives" for the affected line items in the Consolidated Statements of Operations.
[2]	Includes $119.2 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 Comprehensi30

Accumulated Other Comprehensive Income (Loss) (Parenthetical) (Detail) $ in Millions	3 Months Ended
	Mar. 31, 2015USD ($)
Change Related to Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amount expected to be reclassified into earnings in the next 12 months	$ 119.2

Fair Value Measurements and D31

Fair Value Measurements and Derivatives - Derivatives measured at fair value and discloses balance sheet location (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Derivatives, Fair Value [Line Items]
Derivative assets, fair value	$ 70,316	$ 3,446
Derivative liabilities, fair value	294,485	$ 344,619
Fuel Swaps | Designated as Hedging Instrument | Prepaid expenses and other assets
Derivatives, Fair Value [Line Items]
Derivative assets, fair value	6,283
Derivative liabilities, fair value	256
Fuel Swaps | Designated as Hedging Instrument | Other long-term assets
Derivatives, Fair Value [Line Items]
Derivative assets, fair value	3,534
Derivative liabilities, fair value	$ 43
Fuel Swaps | Designated as Hedging Instrument | Accrued expenses and other liabilities
Derivatives, Fair Value [Line Items]
Derivative assets, fair value
Derivative liabilities, fair value	$ 117,016	$ 128,740
Fuel Swaps | Designated as Hedging Instrument | Other long-term liabilities
Derivatives, Fair Value [Line Items]
Derivative assets, fair value	1,241
Derivative liabilities, fair value	132,656	$ 132,494
Fuel Swaps | Not Designated as Hedging Instrument | Prepaid expenses and other assets
Derivatives, Fair Value [Line Items]
Derivative assets, fair value	$ 16
Derivative liabilities, fair value
Fuel Swaps | Not Designated as Hedging Instrument | Accrued expenses and other liabilities
Derivatives, Fair Value [Line Items]
Derivative assets, fair value
Derivative liabilities, fair value	$ 1,545
Foreign Currency Forward Contracts | Designated as Hedging Instrument | Prepaid expenses and other assets
Derivatives, Fair Value [Line Items]
Derivative assets, fair value	$ 671
Derivative liabilities, fair value
Foreign Currency Forward Contracts | Designated as Hedging Instrument | Other long-term assets
Derivatives, Fair Value [Line Items]
Derivative assets, fair value	$ 59,812	$ 3,446
Derivative liabilities, fair value	$ 2,953	$ 1,370
Foreign Currency Forward Contracts | Designated as Hedging Instrument | Accrued expenses and other liabilities
Derivatives, Fair Value [Line Items]
Derivative assets, fair value
Derivative liabilities, fair value	$ 138	$ 8,737
Foreign Currency Forward Contracts | Designated as Hedging Instrument | Other long-term liabilities
Derivatives, Fair Value [Line Items]
Derivative assets, fair value	1,397	551
Derivative liabilities, fair value	$ 5,390	$ 24,181
Foreign Currency Collar | Not Designated as Hedging Instrument | Accrued expenses and other liabilities
Derivatives, Fair Value [Line Items]
Derivative assets, fair value
Derivative liabilities, fair value	$ 29,368	$ 42,993
Interest Rate Swap | Designated as Hedging Instrument | Accrued expenses and other liabilities
Derivatives, Fair Value [Line Items]
Derivative assets, fair value
Derivative liabilities, fair value	$ 3,882	$ 4,079
Interest Rate Swap | Designated as Hedging Instrument | Other long-term liabilities
Derivatives, Fair Value [Line Items]
Derivative assets, fair value
Derivative liabilities, fair value	$ 4,490	$ 3,395

Fair Value Measurements and D32

Fair Value Measurements and Derivatives - Assets and Liabilities Based on Right of Offset (Detail 1) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Gross Amounts, Assets	$ 70,316	$ 3,446
Gross Amounts Offset, Assets	(3,252)	(1,370)
Total Net Amounts, Assets	67,064	2,076
Gross Amounts Not Offset, Assets	(49,147)	(2,043)
Net Amounts, Assets	17,917	33
Gross Amounts, Liabilities	294,485	344,619
Gross Amounts Offset, Liabilities	(2,638)	(551)
Total Net Amounts, Liabilities	291,847	344,068
Gross Amount Not Offset, Liabilities	(39,761)	(336,645)
Net Amounts, Liabilities	$ 252,086	$ 7,423

Fair Value Measurements and D33

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 ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Derivative Instruments, Gain (Loss) [Line Items]
Loss recognized in other comprehensive income (loss) - effective portion	$ (9,506)	$ (2,801)
Loss recognized in other income (expense) - ineffective portion	(5,227)	(6,051)
Amount reclassified from accumulated other comprehensive income (loss) into fuel expense	$ 31,137	$ 20,536

Fair Value Measurements and D34

Fair Value Measurements and Derivatives -Consolidated financial statements of fuel swaps dedesignated and immediately recognized into earnings (Details 3) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Reclassification out of Accumulated Other Comprehensive Income | Fuel Swaps
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Amount reclassified from accumulated other comprehensive income (loss) into other income (expense)	$ 1,529

Fair Value Measurements and D35

Fair Value Measurements and Derivatives - Effects of Fuel Collars Designated as Cash flow Hedges (Detail 4) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash Flow Hedging | Designated as Hedging Instrument | Fuel Collars
Derivative Instruments, Gain (Loss) [Line Items]
Amount reclassified from accumulated other comprehensive income (loss) into fuel expense		$ 238

Fair Value Measurements and D36

Fair Value Measurements and Derivatives - Effects of Foreign Currency Options Designated as Cash flow Hedges (Detail 5) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
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

Fair Value Measurements and D37

Fair Value Measurements and Derivatives - Effects of Foreign Currency Forward Contracts Designated as Cash flow Hedges (Detail 6) - Cash Flow Hedging - Designated as Hedging Instrument - Foreign Currency Forward Contracts - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in other comprehensive income (loss) - effective portion	$ 82,511	$ (97,375)
Gain (loss) recognized in other income (expense) - ineffective portion	11	(15)
Amount reclassified from accumulated other comprehensive income (loss) into depreciation and amortization expense	$ 645	$ (64)

Fair Value Measurements and D38

Fair Value Measurements and Derivatives - Effects of Foreign Currency Collar Designated as Cash Flow Hedges (Detail 7) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
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)

Fair Value Measurements and D39

Fair Value Measurements and Derivatives - Effects of Foreign Currency Collar not Designated as hedging instrument (Details 8) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash Flow Hedging | Not Designated as Hedging Instrument | Foreign Currency Collar
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in other income (expense)	$ 13,625	$ (28,953)

Fair Value Measurements and D40

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 ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Derivative Instruments, Gain (Loss) [Line Items]
Loss recognized in other comprehensive income (loss) - effective portion	$ (2,555)	$ (3,589)
Gain (loss) recognized in other income (expense)- ineffective portion	3	(7)
Amount reclassified from accumulated other comprehensive income (loss) into interest expense, net	$ 1,000	$ 937

Fair Value Measurements and D41

Fair Value Measurements and Derivatives - Effects of Interest Rates Swaps not Designated as hedging instrument (Details 10) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Not Designated as Hedging Instrument | Interest Rate Swap
Derivative Instruments, Gain (Loss) [Line Items]
Loss recognized in other income (expense)		$ (2)

Fair Value Measurements and D42

Fair Value Measurements and Derivatives (Detail Textuals) € in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2016USD ($)Metric_Ton	Mar. 31, 2016EUR (€)Metric_Ton	Dec. 31, 2015USD ($)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of long-term debt	$ 6,400		$ 6,500
Fair value of long-term debt in excess of carrying value	$ 6		$ 6.6
Fuel Swaps
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative maturing date	Dec. 31, 2019
Projected fuel purchases | Metric_Ton	2,000,000	2,000,000
Fuel Swaps | Not Designated as Hedging Instrument
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Projected fuel purchases | Metric_Ton	14,000	14,000
Foreign Currency Forward Contracts
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notional amount of derivatives	$ 2,600	€ 2,300
Foreign Currency Collar
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notional amount of derivatives	312.3	€ 274.4
Interest Rate Swap
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notional amount of derivatives	$ 411.7

Employee Benefits and Compens43

Employee Benefits and Compensation Plans - Summary of Option activity (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract]
Options Outstanding, Weighted- Average Contractual Term	8 years 6 months 15 days	8 years 7 months 2 days
Options Outstanding, Aggregate Intrinsic Value	$ 85,185	$ 104,864
Time Based Units
Number of Share Option Awards
Outstanding as of December 31, 2015	7,702,071
Granted	1,035,000
Exercised	(52,803)
Forfeited and cancelled	(329,027)
Outstanding as of March 31, 2016	8,355,241	7,702,071
Weighted-Average Exercise Price
Outstanding as of December 31, 2015	$ 47.35
Granted	50.15
Exercised	25.92
Forfeited	48.24
Outstanding as of March 31, 2016	$ 47.8	$ 47.35
Performance-Based Units
Number of Share Option Awards
Outstanding as of December 31, 2015	432,752
Granted	52,083
Exercised	(40,359)
Forfeited and cancelled
Outstanding as of March 31, 2016	444,476	432,752
Weighted-Average Exercise Price
Outstanding as of December 31, 2015	$ 19
Granted	59.43
Exercised	$ 19
Forfeited
Outstanding as of March 31, 2016	$ 23.74	$ 19
Market-Based Awards
Number of Share Option Awards
Outstanding as of December 31, 2015	208,333
Granted
Exercised
Forfeited and cancelled
Outstanding as of March 31, 2016	208,333	208,333
Weighted-Average Exercise Price
Outstanding as of December 31, 2015	$ 59.43
Granted
Exercised
Forfeited
Outstanding as of March 31, 2016	$ 59.43	$ 59.43

Employee Benefits and Compens44

Employee Benefits and Compensation Plans - Summary of Restricted Share Awards (Detail 1) - Time-Based Awards - Restricted Stock - Norwegian Cruise Line Holdings Ltd.	3 Months Ended
	Mar. 31, 2016$ / sharesshares
Number of Restricted Share
Non-vested as of January 1, 2016 | shares	43,653
Granted | shares
Vested | shares	(10,462)
Forfeited or expired | shares	(352)
Non-vested and expected to vest as of March 31, 2016 | shares	32,839
Weighted-Average Grant-Date Fair Value
Non-vested as of January 1, 2016 | $ / shares	$ 5.87
Granted | $ / shares
Vested | $ / shares	$ 7.89
Forfeited or expired | $ / shares	2.5
Non-vested and expected to vest as of March 31, 2016 | $ / shares	$ 5.26

Employee Benefits and Compens45

Employee Benefits and Compensation Plans - Summary of Restricted Share Unit (Details 2) - Norwegian Cruise Line Holdings Ltd. - Restricted Share Unit	3 Months Ended
	Mar. 31, 2016$ / sharesshares
Time-Based Awards
Number of Restricted Share
Non-vested as of January 1, 2016 | shares	150,000
Granted | shares	1,228,990
Vested | shares
Forfeited or expired | shares	(18,500)
Non-vested and expected to vest as of March 31, 2016 | shares	1,360,490
Weighted-Average Grant-Date Fair Value
Non-vested as of January 1, 2016 | $ / shares	$ 59.43
Granted | $ / shares	$ 50.42
Vested | $ / shares
Forfeited or expired | $ / shares	$ 50.31
Non-vested and expected to vest as of March 31, 2016 | $ / shares	$ 51.42
Performance-Based Awards
Number of Restricted Share
Non-vested as of January 1, 2016 | shares
Granted | shares	12,500
Vested | shares	(12,500)
Forfeited or expired | shares
Non-vested and expected to vest as of March 31, 2016 | shares
Weighted-Average Grant-Date Fair Value
Non-vested as of January 1, 2016 | $ / shares
Granted | $ / shares	$ 50
Vested | $ / shares	$ 50
Forfeited or expired | $ / shares
Non-vested and expected to vest as of March 31, 2016 | $ / shares
Market-Based Awards
Number of Restricted Share
Non-vested as of January 1, 2016 | shares	50,000
Granted | shares
Vested | shares
Forfeited or expired | shares
Non-vested and expected to vest as of March 31, 2016 | shares	50,000
Weighted-Average Grant-Date Fair Value
Non-vested as of January 1, 2016 | $ / shares	$ 59.43
Granted | $ / shares
Vested | $ / shares
Forfeited or expired | $ / shares
Non-vested and expected to vest as of March 31, 2016 | $ / shares	$ 59.43

Employee Benefits and Compens46

Employee Benefits and Compensation Plans (Detail Textuals) - USD ($) $ / shares in Units, $ in Thousands	Mar. 01, 2016	Mar. 31, 2016	Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense		$ 15,245	$ 12,005
Performance-based restricted share units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted		52,083
Exercise price per share		$ 59.43
Marketing, general and administrative expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense		$ 13,700
Payroll and related expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense		$ 1,500
NCLH | Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted	1,000,000
Exercise price per share	$ 50.31
Contractual term of shares granted	10 years
Vested period of stock-based awards	3 years
NCLH | Performance-Based Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted		364,584
NCLH | Restricted Share Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted	1,200,000
Vested period of stock-based awards	3 years
NCLH | Performance-based restricted share units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted		87,500

Commitments and Contingencies (

Commitments and Contingencies (Detail Textuals) - 3 months ended Mar. 31, 2016 € in Millions, $ in Millions	USD ($)BerthGross_Ton	EUR (€)BerthGross_Ton
Commitments and Contingencies Disclosure [Line Items]
Scheduled delivery date of ships under construction	spring of 2017, spring of 2018 and fall of 2019
Cruising ships to be built	3	3
Capacity of ship, tons | Gross_Ton	164,600	164,600
Capacity of ship, berths	45,800
Aggregate contract price of new ships	$ 3,000	€ 2,600
Export credit facility financing as percentage of contract price	80.00%	80.00%
Fincantieri shipyard | Ship Construction Contracts
Commitments and Contingencies Disclosure [Line Items]
Aggregate contract price of new ships	$ 870.6	€ 765
Syndicate of banks | Financing agreement
Commitments and Contingencies Disclosure [Line Items]
Amount of borrowings | $	$ 498.2

Restructuring Costs (Details)

Restructuring Costs (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2016
Restructuring Reserve [Roll Forward]
Accrued expense balance as of December 31, 2015	$ (4,144)
Amounts paid	3,282
Additional accrued expense	(1,660)
Accrued expense balance as of March 31, 2016	$ (4,144)	$ (2,522)

Restructuring Costs (Detail Tex

Restructuring Costs (Detail Textuals) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Restructuring Cost and Reserve [Line Items]
Accrual balance for restructuring costs for severance and other employee-related costs	$ 2,522	$ 4,144
Current period expense	1,660
Marketing, general and administrative expense
Restructuring Cost and Reserve [Line Items]
Current period expense	$ 1,700

Supplemental Cash Flow Inform50

Supplemental Cash Flow Information (Detail Textuals) $ in Millions	3 Months Ended
	Mar. 31, 2016USD ($)
Supplemental Cash Flow Elements [Abstract]
Non-cash investing activity in connection with capital leases	$ 7.5
Non-cash investing activities for capital expenditures	$ 27.6

Revisions to the Consolidated51

Revisions to the Consolidated Financial Statements (Detail Textuals) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Jun. 30, 2015
Revisions To Consolidated Financial Statements [Abstract]
Cash payments related to property and equipment		$ 14,600	$ 18,500
Due to NCLH, net	$ (3,705)	$ 43,421