Quarterly report pursuant to Section 13 or 15(d)

Income Tax Benefit (Expense)

Income Tax Benefit (Expense)
6 Months Ended
Jun. 30, 2014
Income Tax Disclosure [Abstract]  
Income Tax Benefit (Expense)
6. Income Tax Benefit (Expense)


NCLH is treated as a corporation for U.S. federal income tax purposes. The income tax benefit in 2014 primarily related to a change in our corporate entity structure which was completed in 2013. For the year ended December 31, 2013, the tax provision reflected an interest expense deduction based on a method supported by the information available at such time. During the first quarter of 2014, we received additional information which allowed us to elect another acceptable tax method, resulting in a tax benefit of $11.1 million which is included in the results of operations for the six months ended June 30, 2014. For the six months ended June 30, 2013, income tax expense, net was $3.2 million, which consists of a one-time expense of $4.2 million due to a change in U.S. tax status from a partnership to a corporation in connection with the IPO, a benefit of $5.0 million in connection with our prepayments of debt, and a $4.0 million expense from our U.S. operations.