Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Oct. 27, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'Norwegian Cruise Line Holdings Ltd. | ' |
Entity Central Index Key | '0001513761 | ' |
Trading Symbol | 'nclh | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Common Stock Shares Outstanding | ' | 203,302,279 |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-14 | ' |
Amendment Flag | 'false | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Revenue | ' | ' | ' | ' |
Passenger ticket | $659,117 | $583,923 | $1,655,666 | $1,400,470 |
Onboard and other | 247,900 | 213,962 | 681,306 | 569,479 |
Total revenue | 907,017 | 797,885 | 2,336,972 | 1,969,949 |
Cruise operating expense | ' | ' | ' | ' |
Commissions, transportation and other | 143,194 | 140,086 | 374,716 | 347,650 |
Onboard and other | 69,389 | 61,744 | 172,780 | 153,431 |
Payroll and related | 115,968 | 90,695 | 321,386 | 247,543 |
Fuel | 79,881 | 77,035 | 236,753 | 225,115 |
Food | 44,819 | 37,596 | 125,236 | 101,232 |
Other | 58,047 | 48,946 | 197,133 | 164,899 |
Total cruise operating expense | 511,298 | 456,102 | 1,428,004 | 1,239,870 |
Other operating expense | ' | ' | ' | ' |
Marketing, general and administrative | 97,111 | 77,606 | 263,584 | 236,923 |
Depreciation and amortization | 63,786 | 56,097 | 188,885 | 158,699 |
Total other operating expense | 160,897 | 133,703 | 452,469 | 395,622 |
Operating income | 234,822 | 208,080 | 456,499 | 334,457 |
Non-operating income (expense) | ' | ' | ' | ' |
Interest expense, net | -32,284 | -26,627 | -95,316 | -257,969 |
Other income (expense) | 3,242 | -626 | 3,305 | 1,168 |
Total non-operating income (expense) | -29,042 | -27,253 | -92,011 | -256,801 |
Net income before income taxes | 205,780 | 180,827 | 364,488 | 77,656 |
Income tax benefit (expense) | -2,502 | -7,933 | 3,761 | -11,177 |
Net income | 203,278 | 172,894 | 368,249 | 66,479 |
Net income attributable to non-controlling interest | 2,200 | 2,036 | 4,288 | 857 |
Net income attributable to Norwegian Cruise Line Holdings Ltd. | $201,078 | $170,858 | $363,961 | $65,622 |
Weighted-average shares outstanding | ' | ' | ' | ' |
Basic (in shares) | 203,220,218 | 204,425,308 | 204,444,469 | 202,279,989 |
Diluted (in shares) | 208,507,181 | 210,703,244 | 209,992,647 | 208,673,608 |
Earnings per share | ' | ' | ' | ' |
Basic (in dollars per share) | $0.99 | $0.84 | $1.78 | $0.32 |
Diluted (in dollars per share) | $0.97 | $0.82 | $1.75 | $0.32 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income | $203,278 | $172,894 | $368,249 | $66,479 |
Other comprehensive income (loss): | ' | ' | ' | ' |
Shipboard Retirement Plan | 95 | 117 | 284 | 351 |
Cash flow hedges: | ' | ' | ' | ' |
Net unrealized gain (loss) | -37,801 | 16,798 | -44,360 | -12,619 |
Amount realized and reclassified into earnings | 1,819 | -1,539 | 1,825 | -3,623 |
Total other comprehensive income (loss) | -35,887 | 15,376 | -42,251 | -15,891 |
Total comprehensive income | 167,391 | 188,270 | 325,998 | 50,588 |
Comprehensive income attributable to non-controlling interest | 1,781 | 2,233 | 3,826 | 445 |
Total comprehensive income attributable to Norwegian Cruise Line Holdings Ltd. | $165,610 | $186,037 | $322,172 | $50,143 |
Consolidated_Balance_Sheets_Un
Consolidated Balance Sheets (Unaudited) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $55,869 | $56,467 |
Accounts receivable, net | 25,936 | 18,260 |
Inventories | 51,263 | 43,715 |
Prepaid expenses and other assets | 57,568 | 64,482 |
Total current assets | 190,636 | 182,924 |
Property and equipment, net | 6,319,933 | 5,647,670 |
Goodwill and tradenames | 611,330 | 611,330 |
Other long-term assets | 252,150 | 209,054 |
Total assets | 7,374,049 | 6,650,978 |
Current liabilities: | ' | ' |
Current portion of long-term debt | 381,565 | 286,575 |
Accounts payable | 99,884 | 86,788 |
Accrued expenses and other liabilities | 280,590 | 253,752 |
Due to Affiliate | 36,928 | 36,544 |
Advance ticket sales | 504,057 | 411,829 |
Total current liabilities | 1,303,024 | 1,075,488 |
Long-term debt | 3,082,346 | 2,841,214 |
Due to Affiliate | 36,978 | 55,128 |
Other long-term liabilities | 67,717 | 47,882 |
Total liabilities | 4,490,065 | 4,019,712 |
Commitments and contingencies (Note 9) | ' | ' |
Shareholders' equity: | ' | ' |
Ordinary shares, $.001 par value; 490,000,000 shares authorized; 205,788,004 and 205,160,340 shares issued at September 30, 2014 and December 31, 2013, respectively | 206 | 205 |
Additional paid-in capital | 2,826,395 | 2,822,864 |
Accumulated other comprehensive income (loss) | -58,479 | -16,690 |
Retained earnings (deficit) | 166,490 | -197,471 |
Treasury shares (2,486,350 ordinary shares at cost) | -82,000 | ' |
Total shareholders' equity controlling interest | 2,852,612 | 2,608,908 |
Non-controlling interest | 31,372 | 22,358 |
Total shareholders' equity | 2,883,984 | 2,631,266 |
Total liabilities and shareholders' equity | $7,374,049 | $6,650,978 |
Consolidated_Balance_Sheets_Un1
Consolidated Balance Sheets (Unaudited) (Parentheticals) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Statement Of Financial Position [Abstract] | ' | ' |
Ordinary shares, par value (in dollars per shares) | $0.00 | $0.00 |
Ordinary shares, authorized | 490,000,000 | 490,000,000 |
Ordinary shares, issued | 205,788,004 | 205,160,340 |
Ordinary shares, treasury stock | 2,486,350 | 2,486,350 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Cash flows from operating activities | ' | ' |
Net income | $368,249 | $66,479 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization expense | 213,306 | 180,143 |
Loss (gain) on derivatives | 129 | -195 |
Deferred income taxes, net | -3,238 | 11,026 |
Write-off of deferred financing fees | ' | 36,357 |
Share-based compensation expense | 9,551 | 21,283 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable, net | -7,676 | -2,655 |
Inventories | -7,548 | -6,220 |
Prepaid expenses and other assets | -4,276 | -1,558 |
Accounts payable | 13,096 | 19,433 |
Accrued expenses and other liabilities | 33,529 | -5,480 |
Advance ticket sales | 85,602 | 79,730 |
Net cash provided by operating activities | 700,724 | 398,343 |
Cash flows from investing activities | ' | ' |
Additions to property and equipment | -864,837 | -835,765 |
Net cash used in investing activities | -864,837 | -835,765 |
Cash flows from financing activities | ' | ' |
Repayments of long-term debt | -765,948 | -2,229,821 |
Repayments to Affiliate | -18,521 | -98,171 |
Proceeds from long-term debt | 1,101,287 | 2,359,310 |
Proceeds from the issuance of ordinary shares, net | ' | 473,017 |
Proceeds from the exercise of share options | 3,081 | 1,268 |
Purchases of treasury shares | -82,000 | ' |
NCLC partnership tax distributions | -3,853 | ' |
Deferred financing fees and other | -70,531 | -56,721 |
Net cash provided by financing activities | 163,515 | 448,882 |
Net increase (decrease) in cash and cash equivalents | -598 | 11,460 |
Cash and cash equivalents at beginning of period | 56,467 | 45,500 |
Cash and cash equivalents at end of period | $55,869 | $56,960 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) (USD $) | Ordinary Shares | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings (Deficit) | Treasury Shares | Non-controlling Interest | Total |
In Thousands | |||||||
Balance at Dec. 31, 2012 | $25 | $2,327,097 | ($17,619) | ($299,185) | ' | $8,466 | $2,018,784 |
Share-based compensation | ' | 31,264 | ' | ' | ' | 19 | 31,283 |
Transactions with Affiliates, net | ' | -52 | ' | ' | ' | ' | -52 |
Corporate Reorganization | ' | -20,176 | ' | ' | ' | 20,176 | ' |
Proceeds from the issuance of ordinary shares, net | 179 | 472,838 | ' | ' | ' | ' | 473,017 |
Proceeds from the exercise of share options | 1 | 1,267 | ' | ' | ' | ' | 1,268 |
Other comprehensive loss | ' | ' | -15,479 | ' | ' | -412 | -15,891 |
Net income | ' | ' | ' | 65,622 | ' | 857 | 66,479 |
Transfers to non-controlling interest | ' | 6,915 | ' | ' | ' | -6,915 | ' |
Balance at Sep. 30, 2013 | 205 | 2,819,153 | -33,098 | -233,563 | ' | 22,191 | 2,574,888 |
Balance at Dec. 31, 2013 | 205 | 2,822,864 | -16,690 | -197,471 | ' | 22,358 | 2,631,266 |
Share-based compensation | ' | 9,551 | ' | ' | ' | ' | 9,551 |
Transactions with Affiliates, net | ' | -59 | ' | ' | ' | ' | -59 |
NCLC partnership tax distributions | ' | ' | ' | ' | ' | -3,853 | -3,853 |
Proceeds from the exercise of share options | 1 | 3,080 | ' | ' | ' | ' | 3,081 |
Purchases of treasury shares | ' | ' | ' | ' | -82,000 | ' | -82,000 |
Other comprehensive loss | ' | ' | -41,789 | ' | ' | -462 | -42,251 |
Net income | ' | ' | ' | 363,961 | ' | 4,288 | 368,249 |
Transfers to non-controlling interest | ' | -9,041 | ' | ' | ' | 9,041 | ' |
Balance at Sep. 30, 2014 | $206 | $2,826,395 | ($58,479) | $166,490 | ($82,000) | $31,372 | $2,883,984 |
Corporate_Reorganization
Corporate Reorganization | 9 Months Ended | ||
Sep. 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 as they were 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 non-substantive 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 the amended and restated tax agreement for NCLC, as further amended. 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 98.0% economic interest in NCLC as of September 30, 2014, and the remaining 2.0% economic interest is in the form of Management NCL Corporation Units held by management (or former management). As a result of the aforementioned transactions and certain Secondary Offerings, the Sponsors owned 55.9% of NCLH’s ordinary shares as of September 30, 2014. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended | ||||||||||||||||
Sep. 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. | |||||||||||||||||
Shareholders’ Equity | |||||||||||||||||
In connection with the Corporate Reorganization, previously granted profits interests to employees were exchanged for Management NCL Corporation Units (“Units”), which, upon vesting, represent a proportionate share of the economic interests in NCLC. The effect of this change was a $20.2 million increase in the non-controlling interest. | |||||||||||||||||
During the nine months ended September 30, 2014, following the consummation of the Secondary Offering, additional performance-based Units vested and therefore became eligible to participate in the earnings of NCLC, and as a result, a proportionate amount of equity was allocated to the non-controlling interest. Each Unit holder has the right, subject to the same time-based and performance-based vesting requirements of the profits interests, to exchange Units for NCLH’s ordinary shares at a rate equal to one ordinary share for every Unit. When such an exchange occurs, this results in the exchange of non-controlling interest to controlling interest. Accordingly, upon the exchange of a Unit for an ordinary share of NCLH, a portion of the non-controlling interest balance is reclassified to Additional Paid-in Capital. During the nine months ended September 30, 2014, there was $9.0 million transferred to non-controlling interest. | |||||||||||||||||
During the nine months ended September 30, 2014, Management NCL Corporation Unit holders were distributed funds for partnership tax payments of $3.9 million of which $3.6 million of these distributions will be repaid to the Company upon a future exchange of Units. | |||||||||||||||||
On April 29, 2014, NCLH’s Board of Directors authorized, and NCLH announced, a three-year share repurchase program for up to $500.0 million. Under the program, NCLH may make repurchases in the open market, in privately negotiated transactions, in accelerated repurchase programs or in structured share repurchase programs, and any repurchases may be made pursuant to Rule 10b5-1 plans. During the nine months ended September 30, 2014, NCLH repurchased approximately 2.5 million ordinary shares under its share repurchase program for $82.0 million, which shares are reflected as treasury shares at cost on the consolidated balance sheet as of September 30, 2014. | |||||||||||||||||
The Consolidated Statements of Changes in Shareholders’ Equity for the period ended September 30, 2013 has been revised for an immaterial change of approximately $1.2 million to correctly present the activities within additional paid-in capital and non-controlling interest, with no change in the ending balances. | |||||||||||||||||
Earnings Per Share | |||||||||||||||||
A reconciliation between basic and diluted earnings per share was as follows (in thousands, except share and per share data): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net income attributable to Norwegian Cruise Line Holdings Ltd. | $ | 201,078 | $ | 170,858 | $ | 363,961 | $ | 65,622 | |||||||||
Net income | $ | 203,278 | $ | 172,894 | $ | 368,249 | $ | 66,479 | |||||||||
Basic weighted-average shares outstanding | 203,220,218 | 204,425,308 | 204,444,469 | 202,279,989 | |||||||||||||
Dilutive effect of awards | 5,286,963 | 6,277,936 | 5,548,178 | 6,393,619 | |||||||||||||
Diluted weighted-average shares outstanding | 208,507,181 | 210,703,244 | 209,992,647 | 208,673,608 | |||||||||||||
Basic earnings per share | $ | 0.99 | $ | 0.84 | $ | 1.78 | $ | 0.32 | |||||||||
Diluted earnings per share | $ | 0.97 | $ | 0.82 | $ | 1.75 | $ | 0.32 | |||||||||
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 $51.5 million and $44.3 million for the three months ended September 30, 2014 and 2013, respectively, and $134.0 million and $111.9 million for the nine months ended September 30, 2014 and 2013, respectively. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||
3 | Accumulated Other Comprehensive Income (Loss) | ||||||||||||
Accumulated other comprehensive income (loss) for the nine months ended September 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 | $ | (16,690 | ) | $ | (10,532 | ) | $ | (6,158 | ) | ||||
Current period other comprehensive loss before reclassifications | (43,875 | ) | (43,875 | ) | — | ||||||||
Amounts reclassified | 2,086 | 1,806 | -1 | 280 | -2 | ||||||||
Accumulated other comprehensive income (loss) at end of period | $ | (58,479 | ) | $ | (52,601 | )(3) | $ | (5,878 | ) | ||||
-1 | We refer you to Note 7— “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 $14.6 million of losses expected to be reclassified into earnings in the next 12 months. | ||||||||||||
Accumulated other comprehensive income (loss) for the nine months ended September 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 | (12,292 | ) | (12,292 | ) | — | ||||||||
Amounts reclassified | (3,187 | ) | (3,529 | )(1) | 342 | -2 | |||||||
Accumulated other comprehensive income (loss) at end of period | $ | (33,098 | ) | $ | (23,693 | ) | $ | (9,405 | ) | ||||
-1 | We refer you to Note 7— “Fair Value Measurements and Derivatives” for the affected line items in the Consolidated Statements of Operations. | ||||||||||||
-2 | Amortization of prior-service cost and actuarial loss reclassified to payroll and related expense. |
Property_and_Equipment_Net
Property and Equipment, Net | 9 Months Ended | |
Sep. 30, 2014 | ||
Property Plant And Equipment [Abstract] | ' | |
Property and Equipment, Net | ' | |
4 | Property and Equipment, Net | |
The balance as of September 30, 2014 reflects the delivery of Norwegian Getaway in January 2014. |
Related_Party_Disclosures
Related Party Disclosures | 9 Months Ended | |
Sep. 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 September 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 September 30, 2014, NCLH had a 98.0% economic interest in NCLC. |
Income_Tax_Benefit_Expense
Income Tax Benefit (Expense) | 9 Months Ended | ||
Sep. 30, 2014 | |||
Income Tax Disclosure [Abstract] | ' | ||
Income Tax Benefit (Expense) | ' | ||
6 | Income Tax Benefit (Expense) | ||
NCLH is treated as a corporation for U.S. federal income tax purposes. The income tax benefit in 2014 primarily related to a change in our corporate entity structure which was completed in 2013. For the year ended December 31, 2013, the tax provision reflected an interest expense deduction based on a method supported by the information available at such time. During the first quarter of 2014, we received additional information which allowed us to elect another acceptable tax method, resulting in a tax benefit of $11.1 million which is included in the consolidated statement of operations for the nine months ended September 30, 2014. For the nine months ended September 30, 2013, income tax expense was $11.2 million. Income tax expense for the nine months ended September 30, 2013 includes a one-time expense of $4.2 million due to a change in U.S. tax status from a partnership to a corporation in connection with our IPO and a benefit of $2.6 million in connection with our prepayments of debt, and a $9.6 million expense from our U.S. operations. | |||
During 2013, we implemented a restructuring plan to provide a global tax platform for international expansion. As part of the plan, the Company became a tax resident of the United Kingdom. As such, it qualifies for relief from U.S. Branch Profits taxes under the US-UK Tax Treaty. In addition, the restructuring resulted in additional interest and depreciation deductions which reduced the Company’s overall income tax expense. Its effect has been included as a reduction of $5.3 million to income tax expense for the nine months ended September 30, 2013. |
Fair_Value_Measurements_and_De
Fair Value Measurements and Derivatives | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||
Fair Value Measurements and Derivatives | ' | ||||||||||||||||||||
7 | 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 | September 30, | December 31, | September 30, | December 31, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Fuel swaps designated as hedging instruments | |||||||||||||||||||||
Prepaid expenses and other assets | $ | — | $ | 5,024 | $ | — | $ | 666 | |||||||||||||
Other long-term assets | — | 6,869 | — | 9 | |||||||||||||||||
Accrued expenses and other liabilities | 17 | — | 10,506 | — | |||||||||||||||||
Other long-term liabilities | 32 | — | 5,608 | — | |||||||||||||||||
Fuel collars designated as hedging instruments | |||||||||||||||||||||
Prepaid expenses and other assets | — | 452 | 68 | 195 | |||||||||||||||||
Fuel options not designated as hedging instruments | |||||||||||||||||||||
Prepaid expenses and other assets | — | — | 68 | 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 | — | — | |||||||||||||||||
Accrued expenses and other liabilities | — | — | — | 6,582 | |||||||||||||||||
Other long-term liabilities | 166 | — | 11,277 | — | |||||||||||||||||
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 | — | — | 3,459 | 1,707 | |||||||||||||||||
Other long-term liabilities | — | — | 1,388 | 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): | |||||||||||||||||||||
September 30, 2014 | Gross Amounts | Gross | Total Net | Gross | Net Amounts | ||||||||||||||||
Amounts | Amounts | Amounts Not | |||||||||||||||||||
Offset | Offset | ||||||||||||||||||||
Liabilities | $ | 32,374 | $ | (215 | ) | $ | 32,159 | $ | (4,847 | ) | $ | 27,312 | |||||||||
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 September 30, 2014, we had fuel swaps maturing through December 31, 2017 which are used to mitigate the financial impact of volatility in fuel prices pertaining to approximately 717,000 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 | Nine Months Ended | ||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Gain (loss) recognized in other comprehensive income – effective portion | $ | (27,777 | ) | $ | 13,500 | $ | (25,938 | ) | $ | 132 | |||||||||||
Loss recognized in other income (expense) – ineffective portion | (51 | ) | (83 | ) | (16 | ) | (182 | ) | |||||||||||||
Amount reclassified from accumulated other comprehensive income (loss) into fuel expense | 578 | (2,081 | ) | (1,345 | ) | (5,080 | ) | ||||||||||||||
Fuel Collars and Options | |||||||||||||||||||||
As of September 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 9,000 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 | Nine Months Ended | ||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Gain (loss) recognized in other comprehensive income – effective portion | $ | (127 | ) | $ | 427 | $ | (436 | ) | $ | (1,108 | ) | ||||||||||
Gain (loss) recognized in other income (expense) – ineffective portion | 4 | (51 | ) | 111 | (29 | ) | |||||||||||||||
Amount reclassified from accumulated other comprehensive income (loss) into fuel expense | 370 | 332 | 1,111 | 1,150 | |||||||||||||||||
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 | Nine Months Ended | ||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Gain (loss) recognized in other income (expense) | $ | (59 | ) | $ | 430 | $ | 127 | $ | 1,011 | ||||||||||||
Foreign Currency Forward Contract | |||||||||||||||||||||
As of September 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 €289.0 million, or $365.0 million based on the euro/U.S. dollar exchange rate as of September 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 | Nine Months Ended | ||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Loss recognized in other comprehensive income – effective portion | $ | (11,199 | ) | $ | — | $ | (12,187 | ) | $ | (7,886 | ) | ||||||||||
Gain (loss) recognized in other income (expense) – ineffective portion | — | — | (1 | ) | 66 | ||||||||||||||||
Amount reclassified from accumulated other comprehensive income (loss) into depreciation and amortization expense | (63 | ) | (32 | ) | (180 | ) | (52 | ) | |||||||||||||
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 | Nine Months Ended | ||||||||||||||||||||
September 30, | September 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 | Nine Months Ended | ||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Gain (loss) recognized in other comprehensive income – effective portion | $ | — | $ | 1,179 | $ | (1,157 | ) | $ | (3,174 | ) | |||||||||||
Gain (1oss) recognized in other income (expense) – ineffective portion | — | 13 | (241 | ) | (307 | ) | |||||||||||||||
Amount reclassified from accumulated other comprehensive income (loss) into depreciation and amortization expense | 330 | 177 | 938 | 294 | |||||||||||||||||
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 | Nine Months Ended | ||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Gain (loss) recognized in other comprehensive income – effective portion | $ | — | $ | 4,518 | $ | (1,588 | ) | $ | 2,243 | ||||||||||||
Amount reclassified from accumulated other comprehensive income (loss) into depreciation and amortization expense | (91 | ) | — | (242 | ) | — | |||||||||||||||
Interest Rate Swaps | |||||||||||||||||||||
As of September 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 $627.5 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 | Nine Months Ended | ||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Gain (loss) recognized in other comprehensive income – effective portion | $ | 1,302 | $ | (2,826 | ) | $ | (3,054 | ) | $ | (2,826 | ) | ||||||||||
Loss recognized in other income (expense) - ineffective portion | — | (334 | ) | — | (334 | ) | |||||||||||||||
Amount reclassified from accumulated other comprehensive income (loss) into interest expense, net | 695 | 65 | 1,543 | 65 | |||||||||||||||||
Long-Term Debt | |||||||||||||||||||||
As of September 30, 2014 and December 31, 2013, the fair value of our long-term debt, including the current portion, was $3,571.3 million and $3,146.4 million, which was $107.4 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. |
Employee_Benefits_and_Share_Op
Employee Benefits and Share Option Plans | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Postemployment Benefits [Abstract] | ' | ||||||||
Employee Benefits and Share Option Plans | ' | ||||||||
8 | Employee Benefits and Share Option Plans | ||||||||
Share Option Awards | |||||||||
The following is a summary of option activity under our share option plan for the nine months ended September 30, 2014: | |||||||||
Number of Share Option | |||||||||
Awards | |||||||||
Time- | Performance- | ||||||||
Based | Based | ||||||||
Options | Options | ||||||||
Outstanding as of December 31, 2013 | 3,242,643 | 1,572,516 | |||||||
Granted | 2,473,115 | — | |||||||
Exercised | (95,365 | ) | (72,175 | ) | |||||
Forfeited or expired | (71,890 | ) | (2,866 | ) | |||||
Outstanding as of September 30, 2014 | 5,548,503 | 1,497,475 | |||||||
During the nine months ended September 30, 2014 we granted approximately 2.5 million of options at a weighted-average exercise price of $32.16. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | |
Sep. 30, 2014 | ||
Commitments And Contingencies Disclosure [Abstract] | ' | |
Commitments and Contingencies | ' | |
9 | Commitments and Contingencies | |
Ship Construction Contracts | ||
We have orders with Meyer Werft for four Breakaway Plus Class Ships for delivery in the fall of 2015, spring of 2017, spring of 2018 and fall of 2019. These ships will be the largest in our fleet, reaching approximately 164,600 Gross Tons and up to 4,200 Berths each and will be | ||
similar in design and innovation to our Breakaway Class Ships. The combined contract cost of these four ships is approximately €3.0 billion, or $3.8 billion based on the euro/U.S. dollar exchange rate as of September 30, 2014. We have export credit financing in place that provides financing for 80% of their contract prices. | ||
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 | 9 Months Ended | ||
Sep. 30, 2014 | |||
Subsequent Events [Abstract] | ' | ||
Subsequent Events | ' | ||
10 | Subsequent Events | ||
Plan of Merger | |||
On September 2, 2014, NCLH entered into an Agreement and Plan of Merger, as amended (the “Merger Agreement”) with Portland Merger Sub, Inc., a corporation organized under the laws of the Republic of Panama and a wholly-owned direct subsidiary of NCLC (“Merger Sub”), Prestige Cruises International, Inc., (“Prestige”) and Apollo Management, L.P., a Delaware limited partnership, as the stockholders’ representative. At the Effective Time (as defined in the Merger Agreement) and subject to the terms and conditions contemplated in the Merger Agreement, Merger Sub will merge with and into Prestige (the “Merger”), and upon consummation of the Merger, Merger Sub will cease to exist and Prestige will continue as the surviving corporation and wholly-owned subsidiary of NCLC. The Merger is expected to close within the fourth quarter of 2014. For more on the Merger, we refer you to our Definitive Information Statement on Schedule 14C filed with the SEC on October 16, 2014. | |||
Compensatory Arrangements of Certain Officers | |||
Prior to our initial public offering in January of 2013, members of our management and former management were granted profits interests in NCLC, which were converted into units in NCLC in connection with our initial public offering (the “Management Units”). Subject to the terms of the Amended and Restated United States Tax Agreement for NCLC (as further amended, the “Tax Agreement”) and the Exchange Agreement for NCLC that forms a part of the Tax Agreement (as amended, the “Exchange Agreement”), each vested Management Unit may currently be exchanged for one ordinary share of NCLH. | |||
On October 17, 2014, the NCLH’s Compensation Committee approved a series of actions intended to result in our named executive officers and other holders of Management Units exchanging their Management Units for ordinary shares of NCLH so that NCLH may become the sole member and 100% owner of the economic interests in NCLC. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended | ||||||||||||||||
Sep. 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 | ' | ||||||||||||||||
Shareholders’ Equity | |||||||||||||||||
In connection with the Corporate Reorganization, previously granted profits interests to employees were exchanged for Management NCL Corporation Units (“Units”), which, upon vesting, represent a proportionate share of the economic interests in NCLC. The effect of this change was a $20.2 million increase in the non-controlling interest. | |||||||||||||||||
During the nine months ended September 30, 2014, following the consummation of the Secondary Offering, additional performance-based Units vested and therefore became eligible to participate in the earnings of NCLC, and as a result, a proportionate amount of equity was allocated to the non-controlling interest. Each Unit holder has the right, subject to the same time-based and performance-based vesting requirements of the profits interests, to exchange Units for NCLH’s ordinary shares at a rate equal to one ordinary share for every Unit. When such an exchange occurs, this results in the exchange of non-controlling interest to controlling interest. Accordingly, upon the exchange of a Unit for an ordinary share of NCLH, a portion of the non-controlling interest balance is reclassified to Additional Paid-in Capital. During the nine months ended September 30, 2014, there was $9.0 million transferred to non-controlling interest. | |||||||||||||||||
During the nine months ended September 30, 2014, Management NCL Corporation Unit holders were distributed funds for partnership tax payments of $3.9 million of which $3.6 million of these distributions will be repaid to the Company upon a future exchange of Units. | |||||||||||||||||
On April 29, 2014, NCLH’s Board of Directors authorized, and NCLH announced, a three-year share repurchase program for up to $500.0 million. Under the program, NCLH may make repurchases in the open market, in privately negotiated transactions, in accelerated repurchase programs or in structured share repurchase programs, and any repurchases may be made pursuant to Rule 10b5-1 plans. During the nine months ended September 30, 2014, NCLH repurchased approximately 2.5 million ordinary shares under its share repurchase program for $82.0 million, which shares are reflected as treasury shares at cost on the consolidated balance sheet as of September 30, 2014. | |||||||||||||||||
The Consolidated Statements of Changes in Shareholders’ Equity for the period ended September 30, 2013 has been revised for an immaterial change of approximately $1.2 million to correctly present the activities within additional paid-in capital and non-controlling interest, with no change in the ending balances. | |||||||||||||||||
Earnings Per Share | ' | ||||||||||||||||
Earnings Per Share | |||||||||||||||||
A reconciliation between basic and diluted earnings per share was as follows (in thousands, except share and per share data): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net income attributable to Norwegian Cruise Line Holdings Ltd. | $ | 201,078 | $ | 170,858 | $ | 363,961 | $ | 65,622 | |||||||||
Net income | $ | 203,278 | $ | 172,894 | $ | 368,249 | $ | 66,479 | |||||||||
Basic weighted-average shares outstanding | 203,220,218 | 204,425,308 | 204,444,469 | 202,279,989 | |||||||||||||
Dilutive effect of awards | 5,286,963 | 6,277,936 | 5,548,178 | 6,393,619 | |||||||||||||
Diluted weighted-average shares outstanding | 208,507,181 | 210,703,244 | 209,992,647 | 208,673,608 | |||||||||||||
Basic earnings per share | $ | 0.99 | $ | 0.84 | $ | 1.78 | $ | 0.32 | |||||||||
Diluted earnings per share | $ | 0.97 | $ | 0.82 | $ | 1.75 | $ | 0.32 | |||||||||
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 $51.5 million and $44.3 million for the three months ended September 30, 2014 and 2013, respectively, and $134.0 million and $111.9 million for the nine months ended September 30, 2014 and 2013, respectively. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Reconciliation between basic and diluted earnings per share | ' | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net income attributable to Norwegian Cruise Line Holdings Ltd. | $ | 201,078 | $ | 170,858 | $ | 363,961 | $ | 65,622 | |||||||||
Net income | $ | 203,278 | $ | 172,894 | $ | 368,249 | $ | 66,479 | |||||||||
Basic weighted-average shares outstanding | 203,220,218 | 204,425,308 | 204,444,469 | 202,279,989 | |||||||||||||
Dilutive effect of awards | 5,286,963 | 6,277,936 | 5,548,178 | 6,393,619 | |||||||||||||
Diluted weighted-average shares outstanding | 208,507,181 | 210,703,244 | 209,992,647 | 208,673,608 | |||||||||||||
Basic earnings per share | $ | 0.99 | $ | 0.84 | $ | 1.78 | $ | 0.32 | |||||||||
Diluted earnings per share | $ | 0.97 | $ | 0.82 | $ | 1.75 | $ | 0.32 |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Accumulated other comprehensive income (loss) | ' | ||||||||||||
Accumulated other comprehensive income (loss) for the nine months ended September 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 | $ | (16,690 | ) | $ | (10,532 | ) | $ | (6,158 | ) | ||||
Current period other comprehensive loss before reclassifications | (43,875 | ) | (43,875 | ) | — | ||||||||
Amounts reclassified | 2,086 | 1,806 | -1 | 280 | -2 | ||||||||
Accumulated other comprehensive income (loss) at end of period | $ | (58,479 | ) | $ | (52,601 | )(3) | $ | (5,878 | ) | ||||
-1 | We refer you to Note 7— “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 $14.6 million of losses expected to be reclassified into earnings in the next 12 months. | ||||||||||||
Accumulated other comprehensive income (loss) for the nine months ended September 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 | (12,292 | ) | (12,292 | ) | — | ||||||||
Amounts reclassified | (3,187 | ) | (3,529 | )(1) | 342 | -2 | |||||||
Accumulated other comprehensive income (loss) at end of period | $ | (33,098 | ) | $ | (23,693 | ) | $ | (9,405 | ) | ||||
-1 | We refer you to Note 7— “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_De1
Fair Value Measurements and Derivatives (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Derivatives measured at fair value and disclosed by balance sheet location | ' | ||||||||||||||||||||
Asset | Liability | ||||||||||||||||||||
Balance Sheet location | September 30, | December 31, | September 30, | December 31, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Fuel swaps designated as hedging instruments | |||||||||||||||||||||
Prepaid expenses and other assets | $ | — | $ | 5,024 | $ | — | $ | 666 | |||||||||||||
Other long-term assets | — | 6,869 | — | 9 | |||||||||||||||||
Accrued expenses and other liabilities | 17 | — | 10,506 | — | |||||||||||||||||
Other long-term liabilities | 32 | — | 5,608 | — | |||||||||||||||||
Fuel collars designated as hedging instruments | |||||||||||||||||||||
Prepaid expenses and other assets | — | 452 | 68 | 195 | |||||||||||||||||
Fuel options not designated as hedging instruments | |||||||||||||||||||||
Prepaid expenses and other assets | — | — | 68 | 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 | — | — | |||||||||||||||||
Accrued expenses and other liabilities | — | — | — | 6,582 | |||||||||||||||||
Other long-term liabilities | 166 | — | 11,277 | — | |||||||||||||||||
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 | — | — | 3,459 | 1,707 | |||||||||||||||||
Other long-term liabilities | — | — | 1,388 | 1,374 | |||||||||||||||||
Amounts recognized within assets and liabilities | ' | ||||||||||||||||||||
September 30, 2014 | Gross Amounts | Gross | Total Net | Gross | Net Amounts | ||||||||||||||||
Amounts | Amounts | Amounts Not | |||||||||||||||||||
Offset | Offset | ||||||||||||||||||||
Liabilities | $ | 32,374 | $ | (215 | ) | $ | 32,159 | $ | (4,847 | ) | $ | 27,312 | |||||||||
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 | ' | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Gain (loss) recognized in other comprehensive income – effective portion | $ | (27,777 | ) | $ | 13,500 | $ | (25,938 | ) | $ | 132 | |||||||||||
Loss recognized in other income (expense) – ineffective portion | (51 | ) | (83 | ) | (16 | ) | (182 | ) | |||||||||||||
Amount reclassified from accumulated other comprehensive income (loss) into fuel expense | 578 | (2,081 | ) | (1,345 | ) | (5,080 | ) | ||||||||||||||
Fuel Collars | ' | ||||||||||||||||||||
Effects of derivatives designated as cash flow hedges | ' | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Gain (loss) recognized in other comprehensive income – effective portion | $ | (127 | ) | $ | 427 | $ | (436 | ) | $ | (1,108 | ) | ||||||||||
Gain (loss) recognized in other income (expense) – ineffective portion | 4 | (51 | ) | 111 | (29 | ) | |||||||||||||||
Amount reclassified from accumulated other comprehensive income (loss) into fuel expense | 370 | 332 | 1,111 | 1,150 | |||||||||||||||||
Fuel Options | Not Designated as Hedging Instrument | ' | ||||||||||||||||||||
Effects of derivatives not designated as cash flow hedges | ' | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Gain (loss) recognized in other income (expense) | $ | (59 | ) | $ | 430 | $ | 127 | $ | 1,011 | ||||||||||||
Foreign Exchange Forward | ' | ||||||||||||||||||||
Effects of derivatives designated as cash flow hedges | ' | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Loss recognized in other comprehensive income – effective portion | $ | (11,199 | ) | $ | — | $ | (12,187 | ) | $ | (7,886 | ) | ||||||||||
Gain (loss) recognized in other income (expense) – ineffective portion | — | — | (1 | ) | 66 | ||||||||||||||||
Amount reclassified from accumulated other comprehensive income (loss) into depreciation and amortization expense | (63 | ) | (32 | ) | (180 | ) | (52 | ) | |||||||||||||
Foreign Exchange Forward | Not Designated as Hedging Instrument | ' | ||||||||||||||||||||
Effects of derivatives not designated as cash flow hedges | ' | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Gain recognized in other income (expense) | $ | — | $ | — | $ | — | $ | 20 | |||||||||||||
Foreign Exchange Option | ' | ||||||||||||||||||||
Effects of derivatives designated as cash flow hedges | ' | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Gain (loss) recognized in other comprehensive income – effective portion | $ | — | $ | 1,179 | $ | (1,157 | ) | $ | (3,174 | ) | |||||||||||
Gain (1oss) recognized in other income (expense) – ineffective portion | — | 13 | (241 | ) | (307 | ) | |||||||||||||||
Amount reclassified from accumulated other comprehensive income (loss) into depreciation and amortization expense | 330 | 177 | 938 | 294 | |||||||||||||||||
Foreign Currency Collar | ' | ||||||||||||||||||||
Effects of derivatives designated as cash flow hedges | ' | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Gain (loss) recognized in other comprehensive income – effective portion | $ | — | $ | 4,518 | $ | (1,588 | ) | $ | 2,243 | ||||||||||||
Amount reclassified from accumulated other comprehensive income (loss) into depreciation and amortization expense | (91 | ) | — | (242 | ) | — | |||||||||||||||
Interest Rate Swap | ' | ||||||||||||||||||||
Effects of derivatives designated as cash flow hedges | ' | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Gain (loss) recognized in other comprehensive income – effective portion | $ | 1,302 | $ | (2,826 | ) | $ | (3,054 | ) | $ | (2,826 | ) | ||||||||||
Loss recognized in other income (expense) - ineffective portion | — | (334 | ) | — | (334 | ) | |||||||||||||||
Amount reclassified from accumulated other comprehensive income (loss) into interest expense, net | 695 | 65 | 1,543 | 65 | |||||||||||||||||
Employee_Benefits_and_Share_Op1
Employee Benefits and Share Option Plans (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Postemployment Benefits [Abstract] | ' | ||||||||
Summary of stock option activity | ' | ||||||||
Number of Share Option | |||||||||
Awards | |||||||||
Time- | Performance- | ||||||||
Based | Based | ||||||||
Options | Options | ||||||||
Outstanding as of December 31, 2013 | 3,242,643 | 1,572,516 | |||||||
Granted | 2,473,115 | — | |||||||
Exercised | (95,365 | ) | (72,175 | ) | |||||
Forfeited or expired | (71,890 | ) | (2,866 | ) | |||||
Outstanding as of September 30, 2014 | 5,548,503 | 1,497,475 | |||||||
Corporate_Reorganization_Detai
Corporate Reorganization (Details) (USD $) | 1 Months Ended | 1 Months Ended | ||||
In Millions, except Share data, unless otherwise specified | Feb. 01, 2011 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Jan. 24, 2013 | Sep. 30, 2014 |
Sponsors | Ncl Corporation Ltd | Ncl Corporation Ltd | ||||
Corporate Reorganization [Line Items] | ' | ' | ' | ' | ' | ' |
Number of ordinary shares issued | 10,000 | ' | ' | ' | ' | ' |
Ordinary shares, par value (in dollars per shares) | $0.00 | $0.00 | $0.00 | ' | ' | ' |
Share exchange ratio | ' | ' | ' | ' | '1.0 to 8.42565 | ' |
Ownership percentage | ' | ' | ' | 55.90% | 100.00% | 100.00% |
Percentage of economic interest | ' | ' | ' | ' | 97.30% | 98.00% |
Contribution to NCLC | ' | ' | ' | ' | $460 | ' |
Remaining percentage of economic interest held by former management | ' | ' | ' | ' | ' | 2.00% |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Reconciliation between Basic and Diluted Earnings Per Share (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Net income attributable to Norwegian Cruise Line Holdings Ltd. | $201,078 | $170,858 | $363,961 | $65,622 |
Net income | $203,278 | $172,894 | $368,249 | $66,479 |
Basic weighted-average shares outstanding | 203,220,218 | 204,425,308 | 204,444,469 | 202,279,989 |
Dilutive effect of awards | 5,286,963 | 6,277,936 | 5,548,178 | 6,393,619 |
Diluted weighted-average shares outstanding | 208,507,181 | 210,703,244 | 209,992,647 | 208,673,608 |
Basic earnings per share (in dollars per share) | $0.99 | $0.84 | $1.78 | $0.32 |
Diluted earnings per share (in dollars per share) | $0.97 | $0.82 | $1.75 | $0.32 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Additional Information (Detail Textuals) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Share data in Millions, unless otherwise specified | Apr. 29, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Schedule Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Share exchange ratio | ' | ' | ' | 'Each Unit holder has the right, subject to the same time-based and performance-based vesting requirements of the profits interests, to exchange Units for NCLH's ordinary shares at a rate equal to one ordinary share for every Unit. | ' |
Share repurchase program, authorized amount | $500,000,000 | ' | ' | ' | ' |
Share repurchase program period | '3 years | ' | ' | ' | ' |
Number of ordinary shares repurchased | ' | ' | ' | 2.5 | ' |
Amount of ordinary shares repurchased | ' | 82,000,000 | ' | 82,000,000 | ' |
Amounts of tax included on a gross basis | ' | 51,500,000 | 44,300,000 | 134,000,000 | 111,900,000 |
NCLC partnership tax distributions | ' | ' | ' | 3,853,000 | ' |
Estimated payment pursuant to partnership tax distribution | ' | ' | ' | 3,600,000 | ' |
Prior year immaterial change to statements of changes in shareholders' equity | ' | ' | ' | 1,200,000 | ' |
Non-controlling Interest | ' | ' | ' | ' | ' |
Schedule Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Increase in the non-controlling interest | ' | ' | ' | 9,041,000 | -6,915,000 |
Reorganization Items | ' | ' | ' | ' | -20,176,000 |
NCLC partnership tax distributions | ' | ' | ' | $3,853,000 | ' |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) (Detail) (USD $) | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ||
Beginning balance | ($16,690) | ($17,619) | ||
Current period other comprehensive loss before reclassifications | -43,875 | -12,292 | ||
Amounts reclassified | 2,086 | -3,187 | ||
Ending Balance | -58,479 | -33,098 | ||
Change Related to Cash Flow Hedges | ' | ' | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ||
Beginning balance | -10,532 | -7,872 | ||
Current period other comprehensive loss before reclassifications | -43,875 | -12,292 | ||
Amounts reclassified | 1,806 | [1] | -3,529 | [1] |
Ending Balance | -52,601 | [2] | -23,693 | |
Change Related to Shipboard Retirement Plan | ' | ' | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ||
Beginning balance | -6,158 | -9,747 | ||
Current period other comprehensive loss before reclassifications | ' | ' | ||
Amounts reclassified | 280 | [3] | 342 | [3] |
Ending Balance | ($5,878) | ($9,405) | ||
[1] | We refer you to Note 7 - "Fair Value Measurements and Derivatives" for the affected line items in the Consolidated Statements of Operations. | |||
[2] | Includes $14.6 million of losses 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_Comprehensiv3
Accumulated Other Comprehensive Income (Loss) (Parentheticals) (Detail) (Change Related to Cash Flow Hedges, USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 |
Change Related to Cash Flow Hedges | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' |
Amount expected to be reclassified into earnings | $14.60 |
Related_Party_Disclosures_Addi
Related Party Disclosures - Additional Information (Detail Textuals) | 1 Months Ended | |||||
Mar. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |
Norwegian Cruise Line Holdings Ltd. | Genting Hk | Apollo Funds | TPG Viking Funds | Public shareholders | ||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' |
Percentage of ownership | ' | ' | 28.00% | 20.00% | 7.90% | 44.10% |
Percentage of economic interest | ' | 98.00% | ' | ' | ' | ' |
Common stock shares sold in secondary offering | 15,000,000 | ' | ' | ' | ' | ' |
Income_Tax_Benefit_Expense_Add
Income Tax Benefit (Expense) - Additional Information (Detail Textuals) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | ' |
Income tax benefit due to election of another acceptable tax method | ' | $11,100,000 | ' | ' | ' |
Income tax expense, net | 2,502,000 | ' | 7,933,000 | -3,761,000 | 11,177,000 |
Income tax expense benefit due to change in tax status | ' | ' | ' | ' | 4,200,000 |
Income tax expense benefit due to prepayments of debt | ' | ' | ' | ' | 2,600,000 |
Income tax expense benefit due to expense from U.S. operations | ' | ' | ' | ' | 9,600,000 |
Income tax expense benifit due to interest and depreciation deductions | ' | ' | ' | ' | $5,300,000 |
Fair_Value_Measurements_and_De2
Fair Value Measurements and Derivatives - Derivatives Measured at Fair Value and Disclosed by Balance Sheet Location (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative assets, fair value | ' | $27,471 |
Derivative liabilities, fair value | 32,374 | 19,478 |
Designated as Hedging Instrument | Fuel Swaps | Prepaid Expenses and Other Assets | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative assets, fair value | ' | 5,024 |
Derivative liabilities, fair value | ' | 666 |
Designated as Hedging Instrument | Fuel Swaps | Other long-term assets | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative assets, fair value | ' | 6,869 |
Derivative liabilities, fair value | ' | 9 |
Designated as Hedging Instrument | Fuel Swaps | Accrued expenses and other liabilities | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative assets, fair value | 17 | ' |
Derivative liabilities, fair value | 10,506 | ' |
Designated as Hedging Instrument | Fuel Swaps | Other long-term liabilities | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative assets, fair value | 32 | ' |
Derivative liabilities, fair value | 5,608 | ' |
Designated as Hedging Instrument | Fuel Collars | Prepaid Expenses and Other Assets | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative assets, fair value | ' | 452 |
Derivative liabilities, fair value | 68 | 195 |
Designated as Hedging Instrument | Foreign Exchange Option | Accrued expenses and other liabilities | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative assets, fair value | ' | ' |
Derivative liabilities, fair value | ' | 9,815 |
Designated as Hedging Instrument | Foreign Exchange Forward | Prepaid Expenses and Other Assets | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative assets, fair value | ' | 2,624 |
Derivative liabilities, fair value | ' | ' |
Designated as Hedging Instrument | Foreign Exchange Forward | Accrued expenses and other liabilities | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative assets, fair value | ' | ' |
Derivative liabilities, fair value | ' | 6,582 |
Designated as Hedging Instrument | Foreign Exchange Forward | Other long-term liabilities | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative assets, fair value | 166 | ' |
Derivative liabilities, fair value | 11,277 | ' |
Designated as Hedging Instrument | Foreign Currency Collar | Prepaid Expenses and Other Assets | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative assets, fair value | ' | 12,502 |
Derivative liabilities, fair value | ' | ' |
Designated as Hedging Instrument | Interest Rate Swap | Accrued expenses and other liabilities | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative assets, fair value | ' | ' |
Derivative liabilities, fair value | 3,459 | 1,707 |
Designated as Hedging Instrument | Interest Rate Swap | Other long-term liabilities | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative assets, fair value | ' | ' |
Derivative liabilities, fair value | 1,388 | 1,374 |
Not Designated as Hedging Instrument | Fuel Options | Prepaid Expenses and Other Assets | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative assets, fair value | ' | ' |
Derivative liabilities, fair value | $68 | $195 |
Fair_Value_Measurements_and_De3
Fair Value Measurements and Derivatives - Amounts Recognized Within Assets and Liabilities Based on Right of Offset (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value Disclosures [Abstract] | ' | ' |
Gross Amounts | ' | $27,471 |
Gross Amounts Offset | ' | -1,065 |
Total Net Amounts | ' | 26,406 |
Gross Amounts Not Offset | ' | -15,126 |
Net Amounts | ' | 11,280 |
Gross Amounts | 32,374 | 19,478 |
Gross Amounts Offset | -215 | ' |
Total Net Amounts | 32,159 | 19,478 |
Gross Amounts Not Offset | -4,847 | -19,478 |
Net Amounts | $27,312 | ' |
Fair_Value_Measurements_and_De4
Fair Value Measurements and Derivatives - Effects of Derivatives Designated as Cash Flow Hedges (Detail) (Cash Flow Hedging, Designated as Hedging Instrument, Fuel Swaps, USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Cash Flow Hedging | Designated as Hedging Instrument | Fuel Swaps | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (loss) recognized in other comprehensive income - effective portion | ($27,777) | $13,500 | ($25,938) | $132 |
Loss recognized in other income (expense) - ineffective portion | -51 | -83 | -16 | -182 |
Amount reclassified from accumulated other comprehensive income (loss) into fuel expense | $578 | ($2,081) | ($1,345) | ($5,080) |
Fair_Value_Measurements_and_De5
Fair Value Measurements and Derivatives - Effects of Fuel Collars Designated as Cash flow Hedges (Detail) (Cash Flow Hedging, Designated as Hedging Instrument, Fuel Collars, USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Cash Flow Hedging | Designated as Hedging Instrument | Fuel Collars | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (loss) recognized in other comprehensive income - effective portion | ($127) | $427 | ($436) | ($1,108) |
Gain (loss) recognized in other income (expense) - ineffective portion | 4 | -51 | 111 | -29 |
Amount reclassified from accumulated other comprehensive income (loss) into fuel expense | $370 | $332 | $1,111 | $1,150 |
Fair_Value_Measurements_and_De6
Fair Value Measurements and Derivatives - Effects of Fuel Options Which Were Not Designated as Hedging Instruments (Detail) (Not Designated as Hedging Instrument, Fuel Options, USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Not Designated as Hedging Instrument | Fuel Options | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (loss) recognized in other income (expense) | ($59) | $430 | $127 | $1,011 |
Fair_Value_Measurements_and_De7
Fair Value Measurements and Derivatives - Effects of Foreign Currency Forward Contracts Designated as Cash Flow Hedges (Detail) (Cash Flow Hedging, Designated as Hedging Instrument, Foreign Exchange Forward, USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Cash Flow Hedging | Designated as Hedging Instrument | Foreign Exchange Forward | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (loss) recognized in other comprehensive income - effective portion | ($11,199) | ' | ($12,187) | ($7,886) |
Gain (loss) recognized in other income (expense) - ineffective portion | ' | ' | -1 | 66 |
Amount reclassified from accumulated other comprehensive income (loss) into depreciation and amortization expense | ($63) | ($32) | ($180) | ($52) |
Fair_Value_Measurements_and_De8
Fair Value Measurements and Derivatives - Effects of Foreign Currency Forward Which Were Not Designated as Hedging Instruments (Detail) (Not Designated as Hedging Instrument, Foreign Exchange Forward, USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Not Designated as Hedging Instrument | Foreign Exchange Forward | ' | ' | ' | ' |
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) (Cash Flow Hedging, Designated as Hedging Instrument, Foreign Exchange Option, USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Cash Flow Hedging | Designated as Hedging Instrument | Foreign Exchange Option | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (loss) recognized in other comprehensive income - effective portion | ' | $1,179 | ($1,157) | ($3,174) |
Gain (loss) recognized in other income (expense) - ineffective portion | ' | 13 | -241 | -307 |
Amount reclassified from accumulated other comprehensive income (loss) into depreciation and amortization expense | $330 | $177 | $938 | $294 |
Recovered_Sheet1
Fair Value Measurements and Derivatives - Effects of Foreign Currency Collar Designated as Cash Flow Hedges (Detail) (Cash Flow Hedging, Designated as Hedging Instrument, Foreign Currency Collar, USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 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 - effective portion | ' | $4,518 | ($1,588) | $2,243 |
Amount reclassified from accumulated other comprehensive income (loss) into depreciation and amortization expense | ($91) | ' | ($242) | ' |
Recovered_Sheet2
Fair Value Measurements and Derivatives - Effects of Interest Rates Swaps Designated as Cash Flow Hedges (Detail) (Cash Flow Hedging, Designated as Hedging Instrument, Interest Rate Swap, USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Cash Flow Hedging | Designated as Hedging Instrument | Interest Rate Swap | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (loss) recognized in other comprehensive income - effective portion | $1,302 | ($2,826) | ($3,054) | ($2,826) |
Loss recognized in other income (expense) - ineffective portion | ' | -334 | ' | -334 |
Amount reclassified from accumulated other comprehensive income (loss) into interest expense, net | $695 | $65 | $1,543 | $65 |
Recovered_Sheet3
Fair Value Measurements and Derivatives (Detail Textuals) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
In Millions, unless otherwise specified | USD ($) | USD ($) | Fuel Swaps | Fuel Swaps | Fuel Collars and Fuel Options | Interest Rate Swap | Foreign Exchange Forward | Foreign Exchange Forward |
Metric_Ton | Maximum | Maximum | USD ($) | USD ($) | EUR (€) | |||
Metric_Ton | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative maturing date | ' | ' | ' | 31-Dec-17 | 31-Dec-14 | ' | ' | ' |
Projected fuel purchases | ' | ' | 717,000 | ' | 9,000 | ' | ' | ' |
Notional amount of derivatives | ' | ' | ' | ' | ' | $627.50 | $365 | € 289 |
Fair value of long-term debt | 3,571.30 | 3,146.40 | ' | ' | ' | ' | ' | ' |
Fair value of long-term debt in excess of carrying value | $107.40 | $18.60 | ' | ' | ' | ' | ' | ' |
Employee_Benefits_and_Share_Op2
Employee Benefits and Share Option Plans (Details) | 9 Months Ended |
Sep. 30, 2014 | |
Time Based Options | ' |
Number of Share Option Awards | ' |
Outstanding as of December 31, 2013 | 3,242,643 |
Granted | 2,473,115 |
Exercised | -95,365 |
Forfeited or expired | -71,890 |
Outstanding as of September 30, 2014 | 5,548,503 |
Performance Based Options | ' |
Number of Share Option Awards | ' |
Outstanding as of December 31, 2013 | 1,572,516 |
Granted | ' |
Exercised | -72,175 |
Forfeited or expired | -2,866 |
Outstanding as of September 30, 2014 | 1,497,475 |
Employee_Benefits_and_Share_Op3
Employee Benefits and Share Option Plans (Detail Textuals) (Stock option, USD $) | 9 Months Ended |
Sep. 30, 2014 | |
Stock option | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Options granted | 2,500,000 |
Weighted average exercise price (in dollars per share) | $32.16 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) | 1 Months Ended | 9 Months Ended | ||
Sep. 30, 2012 | Feb. 28, 2011 | Sep. 30, 2014 | Sep. 30, 2014 | |
USD ($) | LegalMatter | Contractual Agreement Two | Contractual Agreement Two | |
USD ($) | EUR (€) | |||
Vessel | ||||
Berth | ||||
Gross_Ton | ||||
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' | ' |
Scheduled delivery date of ships under construction | ' | ' | 'fall of 2015, spring of 2017, spring of 2018 and fall of 2019 | 'fall of 2015, spring of 2017, spring of 2018 and fall of 2019 |
Cruise ships to be built | ' | ' | 4 | 4 |
Capacity of ship, tons | ' | ' | 164,600 | 164,600 |
Capacity of ship, berths | ' | ' | 4,200 | 4,200 |
Aggregate contract price of new ships | ' | ' | $3,800,000,000 | € 3,000,000,000 |
Export credit facility financing as percentage of contract prices | ' | ' | 80.00% | 80.00% |
Number of individual plaintiff's claims | ' | 6 | ' | ' |
Awarded wages to plaintiffs | $100,000 | ' | ' | ' |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (NCLC) | Sep. 30, 2014 | Jan. 24, 2013 | Oct. 17, 2014 |
Subsequent Event | |||
Subsequent Event [Line Items] | ' | ' | ' |
Ownership percentage | 100.00% | 100.00% | 100.00% |