Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 30, 2015 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Norwegian Cruise Line Holdings Ltd. | |
Entity Central Index Key | 1513761 | |
Trading Symbol | nclh | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock Shares Outstanding | 229,727,479 | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Amendment Flag | FALSE | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | |
Revenue | |||
Passenger ticket | $670,483 | $448,580 | |
Onboard and other | 267,699 | 215,448 | |
Total revenue | 938,182 | 664,028 | |
Cruise operating expense | |||
Commissions, transportation and other | 171,827 | 116,810 | |
Onboard and other | 58,645 | 47,924 | |
Payroll and related | 157,629 | 99,066 | |
Fuel | 87,374 | 79,040 | |
Food | 41,851 | 37,683 | |
Other | 106,374 | 65,387 | |
Total cruise operating expense | 623,700 | 445,910 | |
Other operating expense | |||
Marketing, general and administrative | 154,157 | 83,389 | |
Depreciation and amortization | 99,976 | 61,640 | |
Total other operating expense | 254,133 | 145,029 | |
Operating income | 60,349 | 73,089 | |
Non-operating income (expense) | |||
Interest expense, net | -50,989 | -31,172 | |
Other income (expense) | -30,139 | 388 | |
Total non-operating income (expense) | -81,128 | -30,784 | |
Net income (loss) before income taxes | -20,779 | 42,305 | |
Income tax benefit (expense) | -677 | 9,387 | |
Net income (loss) | -21,456 | 51,692 | |
Net income attributable to non-controlling interest | 425 | ||
Net income (loss) attributable to Norwegian Cruise Line Holdings Ltd. | ($21,456) | $51,267 | |
Weighted-average shares outstanding | |||
Basic (in shares) | 224,301,117 | 205,163,256 | |
Diluted (in shares) | 224,301,117 | 211,013,814 | |
Earnings (loss) per share | |||
Basic (in dollars per share) | ($0.10) | $0.25 | |
Diluted (in dollars per share) | ($0.10) | [1] | $0.24 |
[1] | Due to a net loss, excludes 4,745,812 shares, as including these would be antidilutive. |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income (loss) | ($21,456) | $51,692 |
Other comprehensive loss: | ||
Shipboard Retirement Plan | 119 | 94 |
Cash flow hedges: | ||
Net unrealized loss | -103,765 | -15,356 |
Amount realized and reclassified into earnings | 21,886 | 153 |
Total other comprehensive loss | -81,760 | -15,109 |
Total comprehensive income (loss) | -103,216 | 36,583 |
Comprehensive income attributable to non-controlling interest | 288 | |
Total comprehensive income (loss) attributable to Norwegian Cruise Line Holdings Ltd. | ($103,216) | $36,295 |
Consolidated_Balance_Sheets_Un
Consolidated Balance Sheets (Unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $121,422 | $84,824 |
Accounts receivable, net | 30,958 | 32,432 |
Inventories | 56,635 | 56,555 |
Prepaid expenses and other assets | 115,611 | 109,924 |
Total current assets | 324,626 | 283,735 |
Property and equipment, net | 8,628,870 | 8,623,773 |
Goodwill and intangible assets | 2,365,698 | 2,383,928 |
Other long-term assets | 273,543 | 281,641 |
Total assets | 11,592,737 | 11,573,077 |
Current liabilities: | ||
Current portion of long-term debt | 579,670 | 576,947 |
Accounts payable | 84,769 | 101,983 |
Accrued expenses and other liabilities | 614,629 | 552,514 |
Due to Affiliate | 38,081 | 37,948 |
Advance ticket sales | 1,056,625 | 817,207 |
Total current liabilities | 2,373,774 | 2,086,599 |
Long-term debt | 5,379,082 | 5,607,157 |
Due to Affiliate | 18,592 | 18,544 |
Other long-term liabilities | 341,897 | 341,964 |
Total liabilities | 8,113,345 | 8,054,264 |
Commitments and contingencies (Note 9) | ||
Shareholders' equity: | ||
Ordinary shares, $.001 par value; 490,000,000 shares authorized; 232,205,590 shares issued and 229,719,240 shares outstanding at March 31, 2015 and 230,116,780 shares issued and 227,630,430 shares outstanding at December 31, 2014 | 232 | 230 |
Additional paid-in capital | 3,766,137 | 3,702,344 |
Accumulated other comprehensive income (loss) | -324,402 | -242,642 |
Retained earnings | 119,425 | 140,881 |
Treasury shares (2,486,350 ordinary shares at cost) | -82,000 | -82,000 |
Total shareholders' equity | 3,479,392 | 3,518,813 |
Total liabilities and shareholders' equity | $11,592,737 | $11,573,077 |
Consolidated_Balance_Sheets_Un1
Consolidated Balance Sheets (Unaudited) (Parentheticals) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
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 | 232,205,590 | 229,719,240 |
Ordinary shares, treasury stock | 230,116,780 | 227,630,430 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities | ||
Net income (loss) | ($21,456) | $51,692 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization expense | 104,533 | 69,708 |
Loss (gain) on derivatives | 29,027 | -75 |
Deferred income taxes, net | 60 | 1,027 |
Contingent consideration | -9,100 | |
Write-off of deferred financing fees | 195 | |
Share-based compensation expense | 12,005 | 1,835 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 1,474 | 260 |
Inventories | -80 | -4,391 |
Prepaid expenses and other assets | -6,044 | -6,476 |
Accounts payable | -17,455 | -7,198 |
Accrued expenses and other liabilities | -49,493 | 3,432 |
Advance ticket sales | 255,556 | 118,320 |
Net cash provided by operating activities | 299,222 | 228,134 |
Cash flows from investing activities | ||
Additions to property and equipment | -58,563 | -746,310 |
Net cash used in investing activities | -58,563 | -746,310 |
Cash flows from financing activities | ||
Repayments of long-term debt | -477,224 | -258,125 |
Proceeds from long-term debt | 224,033 | 784,451 |
Proceeds from the exercise of share options | 51,790 | 340 |
Deferred financing fees and other | -2,660 | -197 |
Net cash provided by (used in) financing activities | -204,061 | 526,469 |
Net increase in cash and cash equivalents | 36,598 | 8,293 |
Cash and cash equivalents at beginning of period | 84,824 | 56,467 |
Cash and cash equivalents at end of period | $121,422 | $64,760 |
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, 2013 | $205 | $2,822,864 | ($16,690) | ($197,471) | $22,358 | $2,631,266 | |
Share-based compensation | 1,835 | 1,835 | |||||
Transactions with Affiliates, net | -59 | -59 | |||||
Proceeds from the exercise of share options | 340 | 340 | |||||
Other comprehensive loss | -14,972 | -137 | -15,109 | ||||
Net income (loss) | 51,267 | 425 | 51,692 | ||||
Transfers to non-controlling interest | -12,339 | 12,339 | |||||
Balance at Mar. 31, 2014 | 205 | 2,812,641 | -31,662 | -146,204 | 34,985 | 2,669,965 | |
Balance at Dec. 31, 2014 | 230 | 3,702,344 | -242,642 | 140,881 | -82,000 | 3,518,813 | |
Share-based compensation | 12,005 | 12,005 | |||||
Proceeds from the exercise of share options | 2 | 51,788 | 51,790 | ||||
Other comprehensive loss | -81,760 | -81,760 | |||||
Net income (loss) | -21,456 | -21,456 | |||||
Balance at Mar. 31, 2015 | $232 | $3,766,137 | ($324,402) | $119,425 | ($82,000) | $3,479,392 |
Corporate_Reorganization
Corporate Reorganization | 3 Months Ended | ||
Mar. 31, 2015 | |||
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 its initial public offering (“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 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 nonsubstantive merger from an accounting perspective. | |||
As a result of the Corporate Reorganization, NCLC was treated as a partnership for U.S. federal income tax purposes, and the terms of the partnership (including the economic rights with respect thereto) are set forth in an amended and restated tax agreement for NCLC. Economic interests in NCLC were 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) represented a 97.3% economic interest in NCLC as of the consummation of the IPO. The remaining 2.7% economic interest in NCLC as of the consummation of the IPO was in the form of Management NCL Corporation Units held by management (or former management). | |||
In the fourth quarter of 2014, all Management NCL Corporation Units were exchanged for NCLH ordinary shares and restricted shares. NCLH became the sole member and 100% owner of the economic interests in NCLC and the non-controlling interest no longer exists. Accordingly, NCLC is now treated as a disregarded entity for U.S. federal income tax purposes. No new NCLC profits interests or Management NCL Corporation Units will be issued; however, NCLH has granted, and expects to continue to grant to our management team, options to acquire its ordinary shares under its long-term incentive plan. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
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, 2014, 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. | |||||||||
Earnings (Loss) Per Share | |||||||||
A reconciliation between basic and diluted earnings (loss) per share was as follows (in thousands, except share and per share data): | |||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Net income (loss) attributable to Norwegian Cruise Line Holdings Ltd. | $ | (21,456 | ) | $ | 51,267 | ||||
Net income (loss) | $ | (21,456 | ) | $ | 51,692 | ||||
Basic weighted-average shares outstanding | 224,301,117 | 205,163,256 | |||||||
Dilutive effect of awards | — | 5,850,558 | |||||||
Diluted weighted-average shares outstanding | 224,301,117 | 211,013,814 | |||||||
Basic earnings (loss) per share | $ | (0.10 | ) | $ | 0.25 | ||||
Diluted earnings (loss) per share | $ | (0.10 | )(1) | $ | 0.24 | ||||
-1 | Due to a net loss, excludes 4,745,812 shares, as including these would be antidilutive. | ||||||||
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 $51.9 million and $37.9 million for the three months ended March 31, 2015 and 2014, respectively. | |||||||||
Recently Issued Accounting Pronouncements | |||||||||
In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, “Revenue from Contracts with Customers.” ASU No. 2014-09 requires entities to recognize revenue through the application of a five-step model, which includes 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 April 2015, the FASB decided to propose a one-year delay in the effective date of the new revenue accounting standard (extending it to 2018). Entities will be allowed to early adopt the guidance as of the original effective date (2017). We are currently evaluating the guidance to determine the potential impact of adopting ASU No. 2014-09 on our results of operations, cash flows and financial position. | |||||||||
In April 2015, the FASB issued ASU No. 2015-03 which was issued to simplify the presentation of debt issuance costs. The guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by these amendments. This guidance should be applied on a retrospective basis, wherein the balance sheet of each individual period presented should be adjusted to reflect the period-specific effects of applying the new guidance. The guidance will be effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been previously issued. We are currently evaluating the impact, if any, of the adoption of this newly issued guidance to our consolidated financial statements. |
The_Acquisition_of_Prestige
The Acquisition of Prestige | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Business Combinations [Abstract] | |||||
The Acquisition of Prestige | 3 | The Acquisition of Prestige | |||
On November 19, 2014, we completed the Acquisition of Prestige. Consideration for the Acquisition of Prestige includes a cash payment of up to $50 million upon achievement of certain 2015 revenue milestones. The contingent consideration is valued using various projected 2015 revenue scenarios weighted by the likelihood of each scenario occurring. The probability-weighted payout is then discounted at an appropriate discount rate commensurate for the risk of meeting the probabilistic cash flows. As the fair value is measured based upon significant inputs that are unobservable in the market, it was classified as Level 3 in the fair value hierarchy. Level 3 consists of significant unobservable inputs we believe market participants would use in pricing the asset or liability based on the best information available. The significant unobservable inputs used in the fair value measurement of the Company’s contingent consideration are the estimated annual Net Revenue and the probabilities associated with attaining the threshold and target Net Revenue as defined by the Agreement and Plan of Merger. A significant increase in the estimated Net Revenue or an increase in the probability associated with reaching the target would result in a significantly higher fair value measurement, with the maximum fair value not able to exceed $50 million. The $9.1 million fair value adjustment recognized in the three months ended March 31, 2015 is included in marketing, general and administrative expense. | |||||
The following table summarizes the change in fair value of the contingent consideration liability (in thousands): | |||||
Contingent | |||||
Consideration Liability | |||||
Balance as of December 31, 2014 | $ | 43,400 | |||
Fair value adjustment (Level 3) | (9,100 | ) | |||
Balance as of March 31, 2015 | $ | 34,300 |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
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, 2015 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 | $ | (242,642 | ) | $ | (234,188 | ) | $ | (8,454 | ) | ||||
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 | $ | (324,402 | ) | $ | (316,067 | )(3) | $ | (8,335 | ) | ||||
-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 $95 thousand of income expected to be reclassified into earnings in the next 12 months. | ||||||||||||
Accumulated other comprehensive income (loss) for the three months ended March 31, 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 | (15,217 | ) | (15,217 | ) | — | ||||||||
Amounts reclassified into earnings | 245 | 152 | -1 | 93 | -2 | ||||||||
Accumulated other comprehensive income (loss) at end of period | $ | (31,662 | ) | $ | (25,597 | ) | $ | (6,065 | ) | ||||
-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. |
Related_Party_Disclosures
Related Party Disclosures | 3 Months Ended | ||
Mar. 31, 2015 | |||
Related Party Transactions [Abstract] | |||
Related Party Disclosures | 5 | Related Party Disclosures | |
In March 2015, the Selling Shareholders sold 12,500,000 ordinary shares of NCLH in a Secondary Equity Offering. The Company did not receive any proceeds from this offering. As of March 31, 2015, the relative ownership percentages of NCLH’s ordinary shares were as follows: Genting HK (22.0%), the Apollo Funds (23.8%), the TPG Viking Funds (4.3%), and public shareholders (49.9%). | |||
In March 2015, we entered into an agreement with SWB Yankees, LLC related to sponsorship of and advertising with the Scranton/Wilkes-Barre RailRiders, a Minor League Baseball team. Pursuant to the agreement, we will pay an annual fee to SWB Yankees, LLC of $200,000. Mr. David M. Abrams, one of our directors, is the co-managing partner of the Scranton/Wilkes-Barre RailRiders. |
Income_Tax_Benefit_Expense
Income Tax Benefit (Expense) | 3 Months Ended | ||
Mar. 31, 2015 | |||
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. In 2015, we had an income tax expense of $0.7 million compared to an income tax benefit of $9.4 million for 2014. The benefit for 2014 includes a $6.7 million non-recurring benefit associated with the election of a tax method to calculate deductible interest expense. |
Fair_Value_Measurements_and_De
Fair Value Measurements and Derivatives | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
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 | March 31, | December 31, | March 31, | December 31, | |||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||||||
Fuel swaps designated as hedging instruments | |||||||||||||||||||||
Accrued expenses and other liabilities | $ | 773 | $ | — | $ | 97,282 | $ | 111,304 | |||||||||||||
Other long-term liabilities | 223 | 190 | 69,874 | 77,250 | |||||||||||||||||
Foreign currency forward contracts designated as hedging instruments | |||||||||||||||||||||
Accrued expenses and other liabilities | — | — | 107,310 | 29,498 | |||||||||||||||||
Asset | Liability | ||||||||||||||||||||
Balance Sheet location | March 31, | December 31, | March 31, | December 31, | |||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||||||
Other long-term liabilities | 168 | — | 19,864 | 118 | |||||||||||||||||
Foreign currency collar not designated as a hedging instrument | |||||||||||||||||||||
Other long-term liabilities | — | — | 45,697 | 16,744 | |||||||||||||||||
Interest rate swaps designated as hedging instruments | |||||||||||||||||||||
Accrued expenses and other liabilities | — | — | 6,693 | 5,736 | |||||||||||||||||
Other long-term liabilities | — | — | 4,858 | 3,104 | |||||||||||||||||
Interest rate swap not designated as a hedging instrument | |||||||||||||||||||||
Accrued expenses and other liabilities | — | — | — | 3,823 | |||||||||||||||||
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 the balance sheets (in thousands): | |||||||||||||||||||||
March 31, 2015 | Gross Amounts | Gross | Total Net | Gross | Net Amounts | ||||||||||||||||
Amounts | Amounts | Amounts Not | |||||||||||||||||||
Offset | Offset | ||||||||||||||||||||
Liabilities | $ | 351,578 | $ | (1,164 | ) | $ | 350,414 | $ | (164,558 | ) | $ | 185,856 | |||||||||
December 31, 2014 | Gross Amounts | Gross | Total Net | Gross | Net Amounts | ||||||||||||||||
Amounts | Amounts | Amounts Not | |||||||||||||||||||
Offset | Offset | ||||||||||||||||||||
Liabilities | $ | 247,577 | $ | (190 | ) | $ | 247,387 | $ | (59,023 | ) | $ | 188,364 | |||||||||
Fuel Swaps | |||||||||||||||||||||
As of March 31, 2015, we had fuel swaps maturing through December 31, 2018 which are used to mitigate the financial impact of volatility in fuel prices pertaining to approximately 1.2 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 | |||||||||||||||||||||
March 31, | |||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Loss recognized in other comprehensive loss – effective portion | $ | (2,801 | ) | $ | (9,771 | ) | |||||||||||||||
Loss recognized in other income (expense) – ineffective portion | (6,051 | ) | (416 | ) | |||||||||||||||||
Amount reclassified from accumulated other comprehensive income (loss) into fuel expense | 20,536 | (705 | ) | ||||||||||||||||||
Fuel Collars and Options | |||||||||||||||||||||
We had fuel collars and fuel options maturing through December 2014, which 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 | |||||||||||||||||||||
March 31, | |||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Loss recognized in other comprehensive loss – effective portion | $ | — | $ | (324 | ) | ||||||||||||||||
Gain recognized in other income (expense) – ineffective portion | — | 108 | |||||||||||||||||||
Amount reclassified from accumulated other comprehensive income (loss) into fuel expense | 238 | 370 | |||||||||||||||||||
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 | |||||||||||||||||||||
March 31, | |||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Gain recognized in other income (expense) | $ | — | $ | 85 | |||||||||||||||||
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 | |||||||||||||||||||||
March 31, | |||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Loss recognized in other comprehensive loss – effective portion | $ | — | $ | (1,157 | ) | ||||||||||||||||
Loss recognized in other income (expense) – ineffective portion | — | (241 | ) | ||||||||||||||||||
Amount reclassified from accumulated other comprehensive income (loss) into depreciation and amortization expense | 330 | 279 | |||||||||||||||||||
Foreign Currency Forward Contracts | |||||||||||||||||||||
As of March 31, 2015, 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 €888.5 million, or $953.4 million based on the euro/U.S. dollar exchange rate as of March 31, 2015. | |||||||||||||||||||||
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 | |||||||||||||||||||||
March 31, | |||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Loss recognized in other comprehensive loss – effective portion | $ | (97,375 | ) | $ | (1,076 | ) | |||||||||||||||
Loss recognized in other income (expense) – ineffective portion | (15 | ) | (1 | ) | |||||||||||||||||
Amount reclassified from accumulated other comprehensive income (loss) into depreciation and amortization expense | (64 | ) | (53 | ) | |||||||||||||||||
Foreign Currency Collar | |||||||||||||||||||||
We had a foreign currency collar that matured in January 2014, which 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 | |||||||||||||||||||||
March 31, | |||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Loss recognized in other comprehensive loss – effective portion | $ | — | $ | (1,588 | ) | ||||||||||||||||
Amount reclassified from accumulated other comprehensive income (loss) into depreciation and amortization expense | (91 | ) | (60 | ) | |||||||||||||||||
As of March 31, 2015, we had a foreign currency collar which is used to mitigate the financial impact of volatility in foreign currency exchange rates related to a ship construction contract. The notional amount of our foreign currency collar was €274.4 million, or $294.5 million based on the euro/U.S. dollar exchange rate as of March 31, 2015. | |||||||||||||||||||||
The effect on the consolidated financial statements of the foreign currency collar contract which was not designated as a cash flow hedge was as follows (in thousands): | |||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||
March 31, | |||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Loss recognized in other income (expense) | $ | (28,953 | ) | $ | — | ||||||||||||||||
Interest Rate Swaps | |||||||||||||||||||||
As of March 31, 2015, 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 $1.2 billion. | |||||||||||||||||||||
The effects on the consolidated financial statements of the interest rates swaps which were designated as cash flow hedges were as follows (in thousands): | |||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||
March 31, | |||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Loss recognized in other comprehensive loss – effective portion | $ | (3,589 | ) | $ | (1,440 | ) | |||||||||||||||
Loss recognized in other income (expense)– ineffective portion | (7 | ) | — | ||||||||||||||||||
Amount reclassified from accumulated other comprehensive income (loss) into interest expense, net | 937 | 322 | |||||||||||||||||||
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 which was not designated as a cash flow hedge was as follows (in thousands): | |||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||
March 31, | |||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Loss recognized in other income (expense) | $ | (2 | ) | $ | — | ||||||||||||||||
Long-Term Debt | |||||||||||||||||||||
As of March 31, 2015 and December 31, 2014, the fair value of our long-term debt, including the current portion, was $6,025.1 million and $6,229.1 million, which was $67.2 million and $45.0 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 | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
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 three months ended March 31, 2015: | |||||||||||||||||||||||||
Number of Share Option | Weighted-Average Exercise | Weighted- | Aggregate | ||||||||||||||||||||||
Awards | Price | Average | Intrinsic Value | ||||||||||||||||||||||
Contractual | |||||||||||||||||||||||||
Term | |||||||||||||||||||||||||
Time-Based | Performance- | Time-Based | Performance- | (years) | (in thousands) | ||||||||||||||||||||
Awards | Based Awards | Awards | Based Awards | ||||||||||||||||||||||
Outstanding as of January 1, 2015 | 6,079,881 | 1,457,314 | $ | 29.92 | $ | 19 | 7.61 | $ | 142,831 | ||||||||||||||||
Granted | 100,000 | — | 43.91 | — | |||||||||||||||||||||
Exercised | (1,692,001 | ) | (304,100 | ) | 27.19 | 19 | |||||||||||||||||||
Forfeited and cancelled | (693,636 | ) | (477,611 | ) | 32.28 | 19 | |||||||||||||||||||
Outstanding as of March 31, 2015 | 3,794,244 | 675,603 | 31.08 | 19 | 7.75 | 110,669 | |||||||||||||||||||
The total intrinsic value of options exercised during the three months ended March 31, 2015 was $44.8 million and total cash received by the Company from options exercised was $51.8 million. Share-based compensation expense for the three months ended March 31, 2015 was $12.0 million, which includes $8.2 million related to the acceleration of certain equity awards of the former President and Chief Executive Officer, and was recorded in marketing, general and administrative expense. | |||||||||||||||||||||||||
Restricted Share Awards | |||||||||||||||||||||||||
The following is a summary of restricted share activity for the three months ended March 31, 2015: | |||||||||||||||||||||||||
Number of | Weighted- | Number of | Weighted- | ||||||||||||||||||||||
Time-Based | Average Grant | Performance- | Average Grant | ||||||||||||||||||||||
Awards | Date Fair Value | Based Awards | Date Fair Value | ||||||||||||||||||||||
Non-vested as of January 1, 2015 | 196,644 | $ | 3.43 | 1,208,608 | $ | 3.37 | |||||||||||||||||||
Granted | 4,815 | 46.7 | — | — | |||||||||||||||||||||
Vested | (14,994 | ) | 11.16 | (56,687 | ) | 4.13 | |||||||||||||||||||
Forfeited or Expired | (70,668 | ) | 2.7 | (587,870 | ) | 2.79 | |||||||||||||||||||
Non-vested and expected to vest as of March 31, 2015 | 115,797 | 4.68 | 564,051 | 3.9 | |||||||||||||||||||||
Other Employee Matters | |||||||||||||||||||||||||
On January 8, 2015, Kevin M. Sheehan resigned as President and Chief Executive Officer of the Company, together with all of his positions and offices with the Company and its subsidiaries or affiliates, effective immediately. In connection with Mr. Sheehan’s resignation from the Company, Mr. Sheehan and the Company entered into a Separation Agreement and Release (the “Separation Agreement”). The Separation Agreement sets forth the terms of Mr. Sheehan’s resignation from the Company, including, among other things, a general release of claims in favor of the Company and certain non-competition, non-solicitation, confidentiality and cooperation undertakings. The Separation Agreement also provides that Mr. Sheehan will receive (i) all of his accrued and unpaid base salary (and accrued and unpaid vacation time) through January 8, 2015 (the “Effective Date”), (ii) his previously approved bonus payment for fiscal year 2014 of $1,627,500, (iii) a one-time cash separation payment in an amount equal to his base salary and target bonus and (iv) vesting of a portion of his outstanding unvested equity-based awards as of the Effective Date, and all remaining unvested equity-based awards shall immediately terminate, expire and be forfeited as of the Effective Date. This resulted in a total severance expense of $13.4 million of which $8.2 million was due to the acceleration of the equity-based awards which was recorded in marketing, general and administrative expense in January 2015. | |||||||||||||||||||||||||
Effective as of January 8, 2015, Frank J. Del Rio, was appointed President and Chief Executive Officer of the Company. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | ||
Mar. 31, 2015 | |||
Commitments And Contingencies Disclosure [Abstract] | |||
Commitments and Contingencies | 9 | Commitments and Contingencies | |
Ship Construction Contracts | |||
We have four Breakaway Plus Class Ships on order with Meyer Werft shipyard 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 price of these four ships is approximately €3.1 billion, or $3.3 billion based on the euro/U.S. dollar exchange rate as of March 31, 2015. We have export credit financing in place that provides financing for 80% of their contract prices. We also have a contract with Fincantieri shipyard to build a luxury cruise ship to be named Seven Seas Explorer. The contract price of the ship is approximately €343.0 million, or approximately $368.1 million based on the euro/U.S. dollar exchange rate as of March 31, 2015. We have export credit financing in place that provides financing for 80% of the ship’s contract price. Seven Seas Explorer is expected to be delivered in the summer of 2016. | |||
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 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, 2015 | |||||
Restructuring Costs [Abstract] | |||||
Restructuring Costs | 10 | Restructuring Costs | |||
Due to the Acquisition of Prestige, a number of employee positions were consolidated. As of March 31, 2015, we had an accrual balance of $11.1 million for restructuring costs for severance and other employee-related costs. The current period expense of $4.7 million is included in marketing general and administrative expense. | |||||
The following table summarizes changes in the accrual (in thousands): | |||||
Restructuring costs | |||||
Balance as of December 31, 2014 | $ | (7,956 | ) | ||
Amounts paid | 1,568 | ||||
Additional accrued expense | (4,664 | ) | |||
Balance as of March 31, 2015 | $ | (11,052 | ) |
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information | 3 Months Ended | ||
Mar. 31, 2015 | |||
Supplemental Cash Flow Information [Abstract] | |||
Supplemental Cash Flow Information | 11 | Supplemental Cash Flow Information | |
For the three months ended March 31, 2015 we had non-cash investing activities in connection with a capital lease of $27.6 million. | |||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
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, 2014, 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. | |||||||||
Earnings (Loss) Per Share | Earnings (Loss) Per Share | ||||||||
A reconciliation between basic and diluted earnings (loss) per share was as follows (in thousands, except share and per share data): | |||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Net income (loss) attributable to Norwegian Cruise Line Holdings Ltd. | $ | (21,456 | ) | $ | 51,267 | ||||
Net income (loss) | $ | (21,456 | ) | $ | 51,692 | ||||
Basic weighted-average shares outstanding | 224,301,117 | 205,163,256 | |||||||
Dilutive effect of awards | — | 5,850,558 | |||||||
Diluted weighted-average shares outstanding | 224,301,117 | 211,013,814 | |||||||
Basic earnings (loss) per share | $ | (0.10 | ) | $ | 0.25 | ||||
Diluted earnings (loss) per share | $ | (0.10 | )(1) | $ | 0.24 | ||||
-1 | Due to a net loss, excludes 4,745,812 shares, as including these would be antidilutive. | ||||||||
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 $51.9 million and $37.9 million for the three months ended March 31, 2015 and 2014, respectively. | |||||||||
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements | ||||||||
In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, “Revenue from Contracts with Customers.” ASU No. 2014-09 requires entities to recognize revenue through the application of a five-step model, which includes 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 April 2015, the FASB decided to propose a one-year delay in the effective date of the new revenue accounting standard (extending it to 2018). Entities will be allowed to early adopt the guidance as of the original effective date (2017). We are currently evaluating the guidance to determine the potential impact of adopting ASU No. 2014-09 on our results of operations, cash flows and financial position. | |||||||||
In April 2015, the FASB issued ASU No. 2015-03 which was issued to simplify the presentation of debt issuance costs. The guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by these amendments. This guidance should be applied on a retrospective basis, wherein the balance sheet of each individual period presented should be adjusted to reflect the period-specific effects of applying the new guidance. The guidance will be effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been previously issued. We are currently evaluating the impact, if any, of the adoption of this newly issued guidance to our consolidated financial statements. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Accounting Policies [Abstract] | |||||||||
Reconciliation between basic and diluted earnings per share | Three Months Ended March 31, | ||||||||
2015 | 2014 | ||||||||
Net income (loss) attributable to Norwegian Cruise Line Holdings Ltd. | $ | (21,456 | ) | $ | 51,267 | ||||
Net income (loss) | $ | (21,456 | ) | $ | 51,692 | ||||
Basic weighted-average shares outstanding | 224,301,117 | 205,163,256 | |||||||
Dilutive effect of awards | — | 5,850,558 | |||||||
Diluted weighted-average shares outstanding | 224,301,117 | 211,013,814 | |||||||
Basic earnings (loss) per share | $ | (0.10 | ) | $ | 0.25 | ||||
Diluted earnings (loss) per share | $ | (0.10 | )(1) | $ | 0.24 | ||||
-1 | Due to a net loss, excludes 4,745,812 shares, as including these would be antidilutive. |
The_Acquisition_of_Prestige_Ta
The Acquisition of Prestige (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Business Combinations [Abstract] | |||||
Schedule of changes in the fair value of the contingent consideration liability | Contingent | ||||
Consideration Liability | |||||
Balance as of December 31, 2014 | $ | 43,400 | |||
Fair value adjustment (Level 3) | (9,100 | ) | |||
Balance as of March 31, 2015 | $ | 34,300 |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Equity [Abstract] | |||||||||||||
Accumulated other comprehensive income (loss) | Accumulated other comprehensive income (loss) for the three months ended March 31, 2015 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 | $ | (242,642 | ) | $ | (234,188 | ) | $ | (8,454 | ) | ||||
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 | $ | (324,402 | ) | $ | (316,067 | )(3) | $ | (8,335 | ) | ||||
-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 $95 thousand of income expected to be reclassified into earnings in the next 12 months. | ||||||||||||
Accumulated other comprehensive income (loss) for the three months ended March 31, 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 | (15,217 | ) | (15,217 | ) | — | ||||||||
Amounts reclassified into earnings | 245 | 152 | -1 | 93 | -2 | ||||||||
Accumulated other comprehensive income (loss) at end of period | $ | (31,662 | ) | $ | (25,597 | ) | $ | (6,065 | ) | ||||
-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) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Derivatives measured at fair value and disclosed by balance sheet location | Asset | Liability | |||||||||||||||||||
Balance Sheet location | March 31, | December 31, | March 31, | December 31, | |||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||||||
Fuel swaps designated as hedging instruments | |||||||||||||||||||||
Accrued expenses and other liabilities | $ | 773 | $ | — | $ | 97,282 | $ | 111,304 | |||||||||||||
Other long-term liabilities | 223 | 190 | 69,874 | 77,250 | |||||||||||||||||
Foreign currency forward contracts designated as hedging instruments | |||||||||||||||||||||
Accrued expenses and other liabilities | — | — | 107,310 | 29,498 | |||||||||||||||||
Asset | Liability | ||||||||||||||||||||
Balance Sheet location | March 31, | December 31, | March 31, | December 31, | |||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||||||
Other long-term liabilities | 168 | — | 19,864 | 118 | |||||||||||||||||
Foreign currency collar not designated as a hedging instrument | |||||||||||||||||||||
Other long-term liabilities | — | — | 45,697 | 16,744 | |||||||||||||||||
Interest rate swaps designated as hedging instruments | |||||||||||||||||||||
Accrued expenses and other liabilities | — | — | 6,693 | 5,736 | |||||||||||||||||
Other long-term liabilities | — | — | 4,858 | 3,104 | |||||||||||||||||
Interest rate swap not designated as a hedging instrument | |||||||||||||||||||||
Accrued expenses and other liabilities | — | — | — | 3,823 | |||||||||||||||||
Amounts recognized within assets and liabilities | March 31, 2015 | Gross Amounts | Gross | Total Net | Gross | Net Amounts | |||||||||||||||
Amounts | Amounts | Amounts Not | |||||||||||||||||||
Offset | Offset | ||||||||||||||||||||
Liabilities | $ | 351,578 | $ | (1,164 | ) | $ | 350,414 | $ | (164,558 | ) | $ | 185,856 | |||||||||
December 31, 2014 | Gross Amounts | Gross | Total Net | Gross | Net Amounts | ||||||||||||||||
Amounts | Amounts | Amounts Not | |||||||||||||||||||
Offset | Offset | ||||||||||||||||||||
Liabilities | $ | 247,577 | $ | (190 | ) | $ | 247,387 | $ | (59,023 | ) | $ | 188,364 | |||||||||
Fuel Swaps | |||||||||||||||||||||
Effects of derivatives designated as cash flow hedges | Three Months Ended | ||||||||||||||||||||
March 31, | |||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Loss recognized in other comprehensive loss – effective portion | $ | (2,801 | ) | $ | (9,771 | ) | |||||||||||||||
Loss recognized in other income (expense) – ineffective portion | (6,051 | ) | (416 | ) | |||||||||||||||||
Amount reclassified from accumulated other comprehensive income (loss) into fuel expense | 20,536 | (705 | ) | ||||||||||||||||||
Fuel Collars and Options | |||||||||||||||||||||
Effects of derivatives designated as cash flow hedges | Three Months Ended | ||||||||||||||||||||
March 31, | |||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Loss recognized in other comprehensive loss – effective portion | $ | — | $ | (324 | ) | ||||||||||||||||
Gain recognized in other income (expense) – ineffective portion | — | 108 | |||||||||||||||||||
Amount reclassified from accumulated other comprehensive income (loss) into fuel expense | 238 | 370 | |||||||||||||||||||
Fuel Collars and Options | Not Designated as Hedging Instrument | |||||||||||||||||||||
Effects of derivatives not designated as cash flow hedges | Three Months Ended | ||||||||||||||||||||
March 31, | |||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Gain recognized in other income (expense) | $ | — | $ | 85 | |||||||||||||||||
Foreign Exchange Option | |||||||||||||||||||||
Effects of derivatives designated as cash flow hedges | Three Months Ended | ||||||||||||||||||||
March 31, | |||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Loss recognized in other comprehensive loss – effective portion | $ | — | $ | (1,157 | ) | ||||||||||||||||
Loss recognized in other income (expense) – ineffective portion | — | (241 | ) | ||||||||||||||||||
Amount reclassified from accumulated other comprehensive income (loss) into depreciation and amortization expense | 330 | 279 | |||||||||||||||||||
Foreign Exchange Forward | |||||||||||||||||||||
Effects of derivatives designated as cash flow hedges | Three Months Ended | ||||||||||||||||||||
March 31, | |||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Loss recognized in other comprehensive loss – effective portion | $ | (97,375 | ) | $ | (1,076 | ) | |||||||||||||||
Loss recognized in other income (expense) – ineffective portion | (15 | ) | (1 | ) | |||||||||||||||||
Amount reclassified from accumulated other comprehensive income (loss) into depreciation and amortization expense | (64 | ) | (53 | ) | |||||||||||||||||
Foreign Currency Collar | |||||||||||||||||||||
Effects of derivatives designated as cash flow hedges | Three Months Ended | ||||||||||||||||||||
March 31, | |||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Loss recognized in other comprehensive loss – effective portion | $ | — | $ | (1,588 | ) | ||||||||||||||||
Amount reclassified from accumulated other comprehensive income (loss) into depreciation and amortization expense | (91 | ) | (60 | ) | |||||||||||||||||
Foreign Currency Collar | Not Designated as Hedging Instrument | |||||||||||||||||||||
Effects of derivatives not designated as cash flow hedges | Three Months Ended | ||||||||||||||||||||
March 31, | |||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Loss recognized in other income (expense) | $ | (28,953 | ) | $ | — | ||||||||||||||||
Interest Rate Swap | |||||||||||||||||||||
Effects of derivatives designated as cash flow hedges | Three Months Ended | ||||||||||||||||||||
March 31, | |||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Loss recognized in other comprehensive loss – effective portion | $ | (3,589 | ) | $ | (1,440 | ) | |||||||||||||||
Loss recognized in other income (expense)– ineffective portion | (7 | ) | — | ||||||||||||||||||
Amount reclassified from accumulated other comprehensive income (loss) into interest expense, net | 937 | 322 | |||||||||||||||||||
Interest Rate Swap | Not Designated as Hedging Instrument | |||||||||||||||||||||
Effects of derivatives not designated as cash flow hedges | Three Months Ended | ||||||||||||||||||||
March 31, | |||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Loss recognized in other income (expense) | $ | (2 | ) | $ | — |
Employee_Benefits_and_Share_Op1
Employee Benefits and Share Option Plans (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Postemployment Benefits [Abstract] | |||||||||||||||||||||||||
Summary of stock option activity | Number of Share Option | Weighted-Average Exercise | Weighted- | Aggregate | |||||||||||||||||||||
Awards | Price | Average | Intrinsic Value | ||||||||||||||||||||||
Contractual | |||||||||||||||||||||||||
Term | |||||||||||||||||||||||||
Time-Based | Performance- | Time-Based | Performance- | (years) | (in thousands) | ||||||||||||||||||||
Awards | Based Awards | Awards | Based Awards | ||||||||||||||||||||||
Outstanding as of January 1, 2015 | 6,079,881 | 1,457,314 | $ | 29.92 | $ | 19 | 7.61 | $ | 142,831 | ||||||||||||||||
Granted | 100,000 | — | 43.91 | — | |||||||||||||||||||||
Exercised | (1,692,001 | ) | (304,100 | ) | 27.19 | 19 | |||||||||||||||||||
Forfeited and cancelled | (693,636 | ) | (477,611 | ) | 32.28 | 19 | |||||||||||||||||||
Outstanding as of March 31, 2015 | 3,794,244 | 675,603 | 31.08 | 19 | 7.75 | 110,669 | |||||||||||||||||||
Summary of restricted share activity | Number of | Weighted- | Number of | Weighted- | |||||||||||||||||||||
Time-Based | Average Grant | Performance- | Average Grant | ||||||||||||||||||||||
Awards | Date Fair Value | Based Awards | Date Fair Value | ||||||||||||||||||||||
Non-vested as of January 1, 2015 | 196,644 | $ | 3.43 | 1,208,608 | $ | 3.37 | |||||||||||||||||||
Granted | 4,815 | 46.7 | — | — | |||||||||||||||||||||
Vested | (14,994 | ) | 11.16 | (56,687 | ) | 4.13 | |||||||||||||||||||
Forfeited or Expired | (70,668 | ) | 2.7 | (587,870 | ) | 2.79 | |||||||||||||||||||
Non-vested and expected to vest as of March 31, 2015 | 115,797 | 4.68 | 564,051 | 3.9 |
Restructuring_Costs_Tables
Restructuring Costs (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Restructuring Costs [Abstract] | |||||
Summary of changes in the accrual for restructuring costs | Restructuring costs | ||||
Balance as of December 31, 2014 | $ | (7,956 | ) | ||
Amounts paid | 1,568 | ||||
Additional accrued expense | (4,664 | ) | |||
Balance as of March 31, 2015 | $ | (11,052 | ) |
Corporate_Reorganization_Detai
Corporate Reorganization (Detail Textuals) (USD $) | 1 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Jan. 24, 2013 | Feb. 28, 2011 | Mar. 31, 2015 | Dec. 31, 2014 |
Corporate Reorganization [Line Items] | ||||
Ordinary shares, par value (in dollars per shares) | $0.00 | $0.00 | ||
Ncl Corporation Ltd | ||||
Corporate Reorganization [Line Items] | ||||
Number of ordinary shares issued | 10,000 | |||
Ordinary shares, par value (in dollars per shares) | $0.00 | |||
Share exchange ratio | 1.0 to 8.42565 | |||
Ownership percentage | 100.00% | 100.00% | ||
Percentage of economic interest | 97.30% | |||
Contribution to NCLC | $460 | |||
Remaining percentage of economic interest held by former management | 2.70% |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Reconciliation between Basic and Diluted Earnings Per Share (Details (USD $) | 3 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | |
Earnings Per Share [Abstract] | |||
Net income (loss) attributable to Norwegian Cruise Line Holdings Ltd. | ($21,456) | $51,267 | |
Net income (loss) | ($21,456) | $51,692 | |
Basic weighted-average shares outstanding | 224,301,117 | 205,163,256 | |
Dilutive effect of awards | 5,850,558 | ||
Diluted weighted-average shares outstanding | 224,301,117 | 211,013,814 | |
Basic earnings (loss) per share (in dollars per share) | ($0.10) | $0.25 | |
Diluted earnings (loss) per share (in dollars per share) | ($0.10) | [1] | $0.24 |
[1] | Due to a net loss, excludes 4,745,812 shares, as including these would be antidilutive. |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Additional Information (Detail Textuals) (USD $) | 3 Months Ended | |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Accounting Policies [Abstract] | ||
Number of exculdes shares, as including these would be antidilutive | 4,745,812 | |
Amounts of tax included on a gross basis | $51.90 | $37.90 |
The_Acquisition_of_Prestige_De
The Acquisition of Prestige (Details) (Prestige Brands, Level 3, Contingent Consideration Liability, USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Prestige Brands | Level 3 | Contingent Consideration Liability | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Balance as of December 31, 2014 | $43,400 |
Fair value adjustment (Level 3) | -9,100 |
Balance as of March 31, 2015 | $34,300 |
The_Acquisition_of_Prestige_De1
The Acquisition of Prestige (Detail Textuals) (Prestige Brands, USD $) | 1 Months Ended | 3 Months Ended |
Nov. 19, 2014 | Mar. 31, 2015 | |
Business Acquisition [Line Items] | ||
Cash payment of achievement of certain 2015 revenue milestones | $50,000,000 | |
Fair value measurement, with the maximum fair value not able to exceed | 50,000,000 | |
General and administrative expense | ||
Business Acquisition [Line Items] | ||
Fair value adjustment recognized | $9,100,000 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive income (loss) at beginning of period | ($242,642) | ($16,690) | ||
Current period other comprehensive loss before reclassifications | -103,765 | -15,217 | ||
Amounts reclassified | 22,005 | 245 | ||
Accumulated other comprehensive income (loss) at end of period | -324,402 | -31,662 | ||
Change Related to Cash Flow Hedges | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive income (loss) at beginning of period | -234,188 | -10,532 | ||
Current period other comprehensive loss before reclassifications | -103,765 | -15,217 | ||
Amounts reclassified | 21,886 | [1] | 152 | [1] |
Accumulated other comprehensive income (loss) at end of period | -316,067 | [2] | -25,597 | |
Change Related to Shipboard Retirement Plan | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive income (loss) at beginning of period | -8,454 | -6,158 | ||
Current period other comprehensive loss before reclassifications | ||||
Amounts reclassified | 119 | [3] | 93 | [3] |
Accumulated other comprehensive income (loss) at end of period | ($8,335) | ($6,065) | ||
[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 $95 thousand of income 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) (Details) (Parentheticals) (Change Related to Cash Flow Hedges, USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Change Related to Cash Flow Hedges | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Amount expected to be reclassified into earnings | $95 |
Related_Party_Disclosures_Addi
Related Party Disclosures - Additional Information (Detail Textuals) (USD $) | 1 Months Ended |
Mar. 31, 2015 | |
Related Party Transactions [Abstract] | |
Common stock shares sold in secondary offering | 12,500,000 |
SWB Yankees, LLC | |
Related Party Transaction [Line Items] | |
Pyament of annual fee for sponsorship and advertising | 200,000 |
Genting Hk | Norwegian Cruise Line Holdings Ltd. | |
Related Party Transaction [Line Items] | |
Percentage of ownership | 22.00% |
Apollo Funds | Norwegian Cruise Line Holdings Ltd. | |
Related Party Transaction [Line Items] | |
Percentage of ownership | 23.80% |
TPG Viking Funds | Norwegian Cruise Line Holdings Ltd. | |
Related Party Transaction [Line Items] | |
Percentage of ownership | 4.30% |
Public shareholders | Norwegian Cruise Line Holdings Ltd. | |
Related Party Transaction [Line Items] | |
Percentage of ownership | 49.90% |
Income_Tax_Benefit_Expense_Add
Income Tax Benefit (Expense) - Additional Information (Detail Textuals) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense, net | $677,000 | ($9,387,000) | |
Benefit for non-recurring benefit associated | $6,700,000 |
Fair_Value_Measurements_and_De2
Fair Value Measurements and Derivatives - Derivatives Measured at Fair Value and Disclosed by Balance Sheet Location (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities, fair value | $351,578 | $247,577 |
Designated as Hedging Instrument | Fuel Swaps | Accrued expenses and other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 773 | |
Derivative liabilities, fair value | 97,282 | 111,304 |
Designated as Hedging Instrument | Fuel Swaps | Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 223 | 190 |
Derivative liabilities, fair value | 69,874 | 77,250 |
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 | 107,310 | 29,498 |
Designated as Hedging Instrument | Foreign Exchange Forward | Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 168 | |
Derivative liabilities, fair value | 19,864 | 118 |
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 | 6,693 | 5,736 |
Designated as Hedging Instrument | Interest Rate Swap | Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | ||
Derivative liabilities, fair value | 4,858 | 3,104 |
Not Designated as Hedging Instrument | Foreign Currency Collar | Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | ||
Derivative liabilities, fair value | 45,697 | 16,744 |
Not 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 | $3,823 |
Fair_Value_Measurements_and_De3
Fair Value Measurements and Derivatives - Amounts Recognized Within Assets and Liabilities Based on Right of Offset (Details 1) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value Disclosures [Abstract] | ||
Gross Amounts | $351,578 | $247,577 |
Gross Amounts Offset | -1,164 | -190 |
Total Net Amounts | 350,414 | 247,387 |
Gross Amounts Not Offset | -164,558 | -59,023 |
Net Amounts | $185,856 | $188,364 |
Fair_Value_Measurements_and_De4
Fair Value Measurements and Derivatives - Effects of Derivatives Designated as Cash Flow Hedges (Details 2) (Cash Flow Hedging, Designated as Hedging Instrument, Fuel Swaps, USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash Flow Hedging | Designated as Hedging Instrument | Fuel Swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Loss recognized in other comprehensive loss - effective portion | ($2,801) | ($9,771) |
Loss recognized in other income (expense) - ineffective portion | -6,051 | -416 |
Amount reclassified from accumulated other comprehensive income (loss) into fuel expense | $20,536 | ($705) |
Fair_Value_Measurements_and_De5
Fair Value Measurements and Derivatives - Effects of Fuel Collars Designated as Cash flow Hedges (Details 3) (Cash Flow Hedging, Designated as Hedging Instrument, Fuel Collars and Options, USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash Flow Hedging | Designated as Hedging Instrument | Fuel Collars and Options | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Loss recognized in other comprehensive loss - effective portion | ($324) | |
Gain recognized in other income (expense) - ineffective portion | 108 | |
Amount reclassified from accumulated other comprehensive income (loss) into fuel expense | $238 | $370 |
Fair_Value_Measurements_and_De6
Fair Value Measurements and Derivatives - Effects of Fuel Options Which Were Not Designated as Hedging Instruments (Details 4) (Not Designated as Hedging Instrument, Fuel Options, USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Not Designated as Hedging Instrument | Fuel Options | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain recognized in other income (expense) | $85 |
Fair_Value_Measurements_and_De7
Fair Value Measurements and Derivatives - Effects of Foreign Currency Options Designated as Cash Flow Hedges (Details 5) (Cash Flow Hedging, Designated as Hedging Instrument, Foreign Exchange Option, USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash Flow Hedging | Designated as Hedging Instrument | Foreign Exchange Option | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Loss recognized in other comprehensive loss - effective portion | ($1,157) | |
Loss recognized in other income (expense) - ineffective portion | -241 | |
Amount reclassified from accumulated other comprehensive income (loss) into depreciation and amortization expense | $330 | $279 |
Fair_Value_Measurements_and_De8
Fair Value Measurements and Derivatives - Effects of Foreign Currency Forward Contracts Designated as Cash Flow Hedges (Details 6) (Cash Flow Hedging, Designated as Hedging Instrument, Foreign Exchange Forward, USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash Flow Hedging | Designated as Hedging Instrument | Foreign Exchange Forward | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Loss recognized in other comprehensive loss - effective portion | ($97,375) | ($1,076) |
Loss recognized in other income (expense) - ineffective portion | -15 | -1 |
Amount reclassified from accumulated other comprehensive income (loss) into depreciation and amortization expense | ($64) | ($53) |
Fair_Value_Measurements_and_De9
Fair Value Measurements and Derivatives - Effects of Foreign Currency Collar Designated as Cash Flow Hedges (Details 7) (Cash Flow Hedging, Designated as Hedging Instrument, Foreign Currency Collar, USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash Flow Hedging | Designated as Hedging Instrument | Foreign Currency Collar | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Loss recognized in other comprehensive loss - effective portion | ($1,588) | |
Amount reclassified from accumulated other comprehensive income (loss) into depreciation and amortization expense | ($91) | ($60) |
Recovered_Sheet1
Fair Value Measurements and Derivatives - Effects of Foreign Currency Which Was not Designated As Cash Flow Hedge (Details 8) (Not Designated as Hedging Instrument, Foreign Currency Collar, USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Not Designated as Hedging Instrument | Foreign Currency Collar | ||
Derivative Instruments Gain Loss [Line Items] | ||
Loss recognized in other income (expense) | ($28,953) |
Recovered_Sheet2
Fair Value Measurements and Derivatives - Effects of Interest Rates Swaps Designated as Cash Flow Hedges (Details 9) (Cash Flow Hedging, Designated as Hedging Instrument, Interest Rate Swap, USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash Flow Hedging | Designated as Hedging Instrument | Interest Rate Swap | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Loss recognized in other comprehensive loss - effective portion | ($3,589) | ($1,440) |
Loss recognized in other income (expense) - ineffective portion | -7 | |
Amount reclassified from accumulated other comprehensive income (loss) into interest expense, net | $937 | $322 |
Recovered_Sheet3
Fair Value Measurements and Derivatives - Effects of Interest Rates Swaps Which Was Not Designated As Cash Flow Hedge (Details 10) (Not Designated as Hedging Instrument, Interest Rate Swap, USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Not Designated as Hedging Instrument | Interest Rate Swap | ||
Derivative Instruments Gain Loss [Line Items] | ||
Loss recognized in other income (expense) | ($2) |
Recovered_Sheet4
Fair Value Measurements and Derivatives (Detail Textuals) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 |
In Millions, unless otherwise specified | USD ($) | USD ($) | Fuel Swaps | Fuel Swaps | Interest Rate Swap | Foreign Exchange Forward | Foreign Exchange Forward | Foreign Currency Collar | Foreign Currency Collar |
Metric_Ton | Maximum | USD ($) | USD ($) | EUR (€) | USD ($) | EUR (€) | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Derivative maturing date | 31-Dec-18 | ||||||||
Projected fuel purchases | 1,200,000 | ||||||||
Notional amount of derivatives | $1,200 | $953.40 | € 888.50 | $294.50 | € 274.40 | ||||
Fair value of long-term debt | 6,025.10 | 6,229.10 | |||||||
Fair value of long-term debt in excess of carrying value | $67.20 | $45 |
Employee_Benefits_and_Share_Op2
Employee Benefits and Share Option Plans - Summary of Share Option Awards (Details ) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Weighted- Average Contractual Term (years) | ||
Outstanding as of January 1, 2015 and March 31, 2015 | 7 years 9 months | 7 years 7 months 10 days |
Aggregate intrinsic Value | ||
Outstanding as of January 1, 2015 | $142,831 | |
Outstanding as of March 31, 2015 | $110,669 | $142,831 |
Time Based Options | ||
Number of Share Option Awards | ||
Outstanding as of December 31, 2014 | 6,079,881 | |
Granted | 100,000 | |
Exercised | -1,692,001 | |
Forfeited and cancelled | -693,636 | |
Outstanding as of March 31, 2015 | 3,794,244 | |
Weighted-Average Exercise Price | ||
Outstanding as of beginning of period | $29.92 | |
Granted | $43.91 | |
Exercised | $27.19 | |
Forfeited and cancelled | $32.28 | |
Outstanding as of end of period | $31.08 | |
Performance Based Options | ||
Number of Share Option Awards | ||
Outstanding as of December 31, 2014 | 1,457,314 | |
Granted | ||
Exercised | -304,100 | |
Forfeited and cancelled | -477,611 | |
Outstanding as of March 31, 2015 | 675,603 | |
Weighted-Average Exercise Price | ||
Outstanding as of beginning of period | $19 | |
Granted | ||
Exercised | $19 | |
Forfeited and cancelled | $19 | |
Outstanding as of end of period | $19 |
Employee_Benefits_and_Share_Op3
Employee Benefits and Share Option Plans - Summary of Restricted Share Activity (Details 1) (Restricted Stock, USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Time-Based Awards | |
Number of Restricted Share Awards | |
Non-vested as of January 1, 2015 | 196,644 |
Granted | 4,815 |
Vested | -14,994 |
Forfeited or Expired | -70,668 |
Non-vested and expected to vest as of March 31, 2015 | 115,797 |
Weighted-Average Grant-Date Fair Value | |
Non-vested as of January 1, 2015 | $3.43 |
Granted | $46.70 |
Vested | $11.16 |
Forfeited or Expired | $2.70 |
Non-vested and expected to vest as of March 31, 2015 | $4.68 |
Performance-Based Awards | |
Number of Restricted Share Awards | |
Non-vested as of January 1, 2015 | 1,208,608 |
Granted | |
Vested | -56,687 |
Forfeited or Expired | -587,870 |
Non-vested and expected to vest as of March 31, 2015 | 564,051 |
Weighted-Average Grant-Date Fair Value | |
Non-vested as of January 1, 2015 | $3.37 |
Granted | |
Vested | $4.13 |
Forfeited or Expired | $2.79 |
Non-vested and expected to vest as of March 31, 2015 | $3.90 |
Employee_Benefits_and_Share_Op4
Employee Benefits and Share Option Plans (Detail Textuals) (USD $) | 3 Months Ended | 0 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Jan. 08, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total intrinsic value of stock options exercised | $44,800,000 | ||
Proceeds from the exercise of share options | 51,790,000 | 340,000 | |
Share-based Compensation | 12,005,000 | 1,835,000 | |
Marketing, general and administrative expense | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Acceleration of certain equity awards of the former President and Chief Executive Officer | 8,200,000 | ||
Separation Agreement | Kevin M. Sheehan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Previously approved bonus payment for fiscal year 2014 | 1,627,500 | ||
Severance expense | $13,400,000 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail Textuals) (Ship Construction Contracts) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 |
USD ($) | EUR (€) | Fincantieri Shipyard | Fincantieri Shipyard | |
Berth | USD ($) | EUR (€) | ||
CruiseShip | ||||
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 | $3,300 | € 3,100 | $368.10 | € 343 |
Export credit facility financing as percentage of contract prices | 80.00% | 80.00% | 80.00% | 80.00% |
Restructuring_Costs_Details
Restructuring Costs (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Restructuring Reserve [Roll Forward] | |
Balance as of December 31, 2014 | ($7,956) |
Amounts paid | 1,568 |
Additional accrued expense | -4,664 |
Balance as of March 31, 2015 | ($11,052) |
Restructuring_Costs_Detail_Tex
Restructuring Costs (Detail Textuals) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Restructuring Cost and Reserve [Line Items] | ||
Accrual balance for restructuring costs for severance and other employee-related costs | ($11,052) | ($7,956) |
Current period expense | 4,664 | |
Marketing, general and administrative expense | ||
Restructuring Cost and Reserve [Line Items] | ||
Current period expense | $4,664 |
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information (Detail Textuals) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Supplemental Cash Flow Information [Abstract] | |
Non-cash investing activity in connection with capital leases | $27.60 |