Quarterly report pursuant to Section 13 or 15(d)

Employee Benefits and Compensation Plans

v3.19.2
Employee Benefits and Compensation Plans
6 Months Ended
Jun. 30, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Employee Benefits and Compensation Plans

10.   Employee Benefits and Compensation Plans

Share Option Awards

The following is a summary of option activity under NCLH’s Amended and Restated 2013 Performance Incentive Plan for the six months ended June 30, 2019:

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Weighted-

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​

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Number of Share Option Awards

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Weighted-Average Exercise Price

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Average

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​

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Time-

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Performance-

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Market-

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Time-

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Performance-

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Market-

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Contractual

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Aggregate

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Based

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Based

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Based

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Based

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Based

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Based

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Term

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Intrinsic Value

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Awards

    

Awards

    

Awards

    

Awards

    

Awards

    

Awards

    

(years)

    

(in thousands)

Outstanding as of January 1, 2019

 

5,686,793

​

410,499

 

208,333

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$

50.65

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$

45.67

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$

59.43

 

6.22

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$

13,946

Exercised

 

(197,076)

​

(99,924)

 

—

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​

39.19

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​

19.00

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​

—

 

  

​

 

  

Forfeited and cancelled

 

(35,333)

​

(156,251)

 

—

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​

56.83

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​

59.43

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​

—

 

  

​

 

  

Outstanding as of June 30, 2019

 

5,454,384

​

154,324

 

208,333

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$

51.02

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$

49.02

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$

59.43

 

5.82

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$

27,599

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Restricted Ordinary Share Awards

The following is a summary of restricted NCLH ordinary share activity for the six months ended June 30, 2019:

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Number of

    

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Time-

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Weighted-

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Based

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Average Grant

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Awards

​

Date Fair Value

Non-vested as of January 1, 2019

 

429

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$

58.41

Vested

 

(429)

​

​

58.41

Non-vested as of June 30, 2019

 

—

​

$

—

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Restricted Share Unit Awards

On March 1, 2019, NCLH granted 1.9 million time-based restricted share unit awards to our employees, which vest in substantially equal annual installments over three years. Additionally, on March 1, 2019, NCLH granted 0.5 million performance-based restricted share units to certain members of our management team, which vest upon the achievement of certain pre-established performance targets established for the 2019 and 2020 calendar years and the satisfaction of an additional time-based vesting requirement that generally requires continued employment through March 1, 2022.

The following is a summary of restricted share unit activity for the six months ended June 30, 2019:

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Number of

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Weighted-

​

Number of

​

Weighted-

​

Number of

​

Weighted-

​

​

Time-Based

​

Average Grant

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Performance-

​

Average Grant

​

Market-

​

Average Grant 

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Awards

    

Date Fair Value

    

Based Awards

    

Date Fair Value

    

Based Awards

    

Date Fair Value

Non-vested as of January 1, 2019

 

2,973,032

​

$

53.98

 

825,614

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$

56.58

 

50,000

​

$

59.43

Granted

 

1,915,943

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​

55.04

 

462,282

(1)

​

55.27

 

—

​

​

—

Vested

 

(1,425,290)

​

​

53.05

 

(121,000)

​

​

56.27

 

—

​

​

—

Forfeited or expired

 

(80,511)

​

​

54.89

 

(37,500)

​

​

56.27

 

—

​

​

—

Non-vested as of June 30, 2019

 

3,383,174

​

$

54.95

 

1,129,396

​

$

56.09

 

50,000

​

$

59.43

(1) Number of performance-based restricted share units included assumes maximum achievement of performance targets.

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The share-based compensation expense for the three months ended June 30, 2019 was $29.7 million of which $25.0 million was recorded in marketing, general and administrative expense and $4.7 million was recorded in payroll and related expense. The share-based compensation expense for the six months ended June 30, 2019 was $56.7 million of

which $48.2 million was recorded in marketing, general and administrative expense and $8.5 million was recorded in payroll and related expense.

The share-based compensation expense for the three months ended June 30, 2018 was $31.7 million of which $27.3 million was recorded in marketing, general and administrative expense and $4.4 million was recorded in payroll and related expense. The share-based compensation expense for the six months ended June 30, 2018 was $59.8 million of which $52.1 million was recorded in marketing, general and administrative expense and $7.7 million was recorded in payroll and related expense.