|
Employee Benefits and Share Option Plans (Tables)
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12 Months Ended |
|
Dec. 31, 2013
|
| Information Related to Profits Interests |
We will not
grant any additional profits interests under the profits sharing
agreement, and new long-term incentive awards have been and will be
granted under NCLH’s new long-term incentive plan.
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Number of
Management
NCL Corporation Units |
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TBUs
Weighted-
Average
Grant-Date
Fair Value |
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PBUs
Weighted-
Average
Grant-
Date Fair
Value |
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| |
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TBUs |
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PBUs |
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Outstanding as of
December 31, 2012
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2,265,554 |
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3,495,737 |
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$ |
3.53 |
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$ |
3.56 |
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Exchanged for NCLH
shares
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(510,917 |
) |
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(528,382 |
) |
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$ |
3.78 |
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$ |
3.47 |
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Forfeited
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(4,978 |
) |
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(7,322 |
) |
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$ |
2.96 |
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$ |
4.92 |
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Outstanding as of
December 31, 2013
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1,749,659 |
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2,960,033 |
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$ |
3.45 |
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$ |
3.57 |
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Vested and expected to vest
as of December 31, 2013
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1,663,732 |
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2,455,563 |
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$ |
3.50 |
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$ |
3.56 |
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Exchangeable as of
December 31, 2013
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1,320,027 |
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437,682 |
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$ |
3.77 |
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$ |
3.34 |
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Non-vested as of
December 31, 2013
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429,632 |
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2,522,351 |
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$ |
2.50 |
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$ |
3.61 |
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| Assumptions Used within Option-Pricing Model |
The assumptions
used within the option-pricing model are as follows:
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2013 |
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Dividend yield
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0% |
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Expected stock price
volatility
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50.40%-54.80% |
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Risk-free interest
rate
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0.8%-1.82% |
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Expected unit
life
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5.00-6.25 years |
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| Summary of Share Option Activity |
The following is
a summary of option activity under our share option plan for the
year ended December 31, 2013:
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Number of Share
Option
Awards |
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Weighted-Average Exercise
Price |
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Weighted-
Average
Contractual
Term |
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Aggregate
Intrinsic Value |
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TBUs |
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PBUs |
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TBUs |
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PBUs |
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(years) |
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(in thousands) |
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Outstanding as of
January 1, 2013
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— |
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— |
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$ |
— |
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$ |
— |
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Granted
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3,394,114 |
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1,579,939 |
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25.15 |
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19.00 |
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Exercised
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(106,339 |
) |
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— |
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19.00 |
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— |
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Forfeited
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(45,132 |
) |
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(7,423 |
) |
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24.30 |
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19.00 |
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Outstanding as of
December 31, 2013
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3,242,643 |
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1,572,516 |
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$ |
25.36 |
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$ |
19.00 |
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7.26 |
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$ |
58,684 |
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Vested and expected to vest
as of December 31, 2013
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2,902,762 |
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1,258,012 |
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$ |
25.20 |
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$ |
19.00 |
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7.28 |
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$ |
50,525 |
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Exercisable as of
December 31, 2013
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771,084 |
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— |
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$ |
19.00 |
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$ |
— |
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6.05 |
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$ |
12,700 |
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| Amounts Related to Shipboard Retirement Plan |
The amounts
related to the Shipboard Retirement Plan were as follows (in
thousands):
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As of or for the Year Ended December 31, |
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2013 |
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2012 |
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2011 |
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Pension
expense:
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Service cost
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$ |
1,498 |
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$ |
1,367 |
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$ |
1,072 |
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Interest cost
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|
603 |
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|
604 |
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531 |
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Amortization of prior
service cost
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|
378 |
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|
378 |
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378 |
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Amortization of actuarial
loss
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90 |
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13 |
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— |
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Total pension
expense
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$ |
2,569 |
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$ |
2,362 |
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$ |
1,981 |
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Change in projected
benefit obligation:
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Projected benefit
obligation at beginning of year
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$ |
16,221 |
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$ |
13,329 |
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$ |
9,478 |
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Service cost
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1,498 |
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1,367 |
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1,072 |
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Interest cost
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|
603 |
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604 |
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531 |
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Actuarial gain
(loss)
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(2,070 |
) |
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1,721 |
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2,993 |
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Direct benefit
payments
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(682 |
) |
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(800 |
) |
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(745 |
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Projected benefit
obligation at end of year
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$ |
15,570 |
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$ |
16,221 |
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$ |
13,329 |
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Amounts recognized in
the consolidated balance sheets:
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Projected benefit
obligation
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$ |
15,570 |
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$ |
16,221 |
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$ |
13,329 |
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Amounts recognized in
accumulated other comprehensive income (loss):
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Prior service
cost
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$ |
(6,049 |
) |
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$ |
(6,427 |
) |
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$ |
(6,805 |
) |
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Accumulated actuarial
loss
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(1,160 |
) |
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(3,320 |
) |
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(1,612 |
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Accumulated other
comprehensive income (loss)
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$ |
(7,209 |
) |
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$ |
(9,747 |
) |
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$ |
(8,417 |
) |
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| Pension Benefits Future Payments in Next Five Years |
The pension
benefits expected to be paid in each of the next five years and in
aggregate for the five years thereafter are as follows (in
thousands):
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Year
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Amount |
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2014
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$ |
790 |
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2015
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|
805 |
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2016
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|
816 |
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2017
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|
880 |
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2018
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|
944 |
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Next five years
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6,169 |
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Restricted Stock
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|
| Information Related to Profits Interests |
The following
is a summary of restricted share activity for the year ended
December 31, 2013:
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| |
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Number of
Restricted
Share
Awards
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|
Weighted-
Average Grant-
Date Fair Value |
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Nonvested as of
January 1, 2013
|
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|
— |
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$ |
— |
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Granted
|
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|
17,210 |
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|
23.24 |
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Vested as of
December 31, 2013
|
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(6,454 |
) |
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23.24 |
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Forfeited
|
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— |
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— |
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Non-vested as of
December 31, 2013
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10,756 |
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$ |
23.24 |
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