Annual report pursuant to Section 13 and 15(d)

Employee Benefits and Share Option Plans (Tables)

v2.4.1.9
Employee Benefits and Share Option Plans (Tables)
12 Months Ended
Dec. 31, 2014
Postemployment Benefits [Abstract]  
Schedule of information related to profits interests

 

  Number of
Management
NCL Corporation Units
    TBUs
Weighted-
Average
Grant-Date
Fair Value
    PBUs
Weighted-
Average
Grant-
Date Fair
Value
 
    TBUs     PBUs              
Outstanding as of December 31, 2013     1,749,659       2,960,034     $ 3.45     $ 3.57  
Exchanged for NCLH shares     (1,549,376 )     (1,747,973 )   $ 3.56     $ 3.69  
Exchanged for NCLH restricted shares (1)     (197,960 )     (1,208,608 )   $ 2.62     $ 3.37  
Forfeited     (2,323 )     (3,453 )   $ 2.18     $ 3.72  
Outstanding as of December 31, 2014                            

 

 

 

(1) Represents the unvested units exchanged as part of the Management Exchange Agreement and exchanged for restricted shares.
Schedule of assumptions used within the option-pricing model
  2014   2013
Dividend yield 0%   0%
Expected stock price volatility 48.30%-49.90%   50.40%-54.80%
Risk-free interest rate 1.80%-2.02%   0.8%-1.82%
Expected term 6.25 years   5.00-6.25 years
Schedule of summary of option activity
    Number of Share Option
Awards
    Weighted-Average Exercise
Price
    Weighted-
Average
Contractual
Term
    Aggregate
Intrinsic Value
 
    TBUs     PBUs     TBUs     PBUs     (years)     (in thousands)  
                                     
Outstanding as of January 1, 2014     3,242,643       1,572,516     $ 25.36     $ 19.00       7.26     $ 58,684  
Granted     3,180,615             34.13                        
Exercised     (182,603 )     (103,063 )     22.64       19.00                  
Forfeited and cancelled     (160,774 )     (12,138 )     29.43       19.00                  
Outstanding as of December 31, 2014     6,079,881       1,457,315       29.92       19.00       7.61     $ 142,831  
Vested and expected to vest as of December 31, 2014     5,830,423       947,486     $ 29.96     $ 19.00       7.79     $ 124,268  
Exercisable as of December 31, 2014     1,314,484       511,522     $ 22.31     $ 19.00       5.71     $ 46,334  
Schedule of restricted share activity of NCLH shares
    Number of
Time-Based
Awards
    Weighted-
Average Grant
Date Fair Value
    Number of
Performance-
Based Awards
    Weighted-
Average Grant
Date Fair Value
 
Non-vested as of January 1, 2014     10,756     $ 23.24           $  
Granted     203,433 (1)     3.53       1,208,608 (2)     3.37  
Vested     (12,470 )     22.23              
Forfeited or Expired     (5,075 )     3.32              
                                 
Non-vested and expected to vest as of December 31, 2014     196,644     $ 3.43       1,208,608     $ 3.37  

 

 

(1) Includes 197,960 time-based restricted shares that were converted from Management NCL Corporation Units as a result of the Management Exchange Agreement.

 

(2) Represents performance-based restricted shares that were converted from Management NCL Corporation Units as a result of the Management Exchange Agreement.
Schedule of amounts related to the Shipboard Retirement Plan
    As of or for the Year Ended December 31,  
    2014     2013     2012  
Pension expense:                        
Service cost   $ 1,393     $ 1,498     $ 1,367  
Interest cost     728       603       604  
Amortization of prior service cost     378       378       378  
Amortization of actuarial loss           90       13  
Total pension expense   $ 2,499     $ 2,569     $ 2,362  
Change in projected benefit obligation:                        
Projected benefit obligation at beginning of year   $ 15,570     $ 16,221     $ 13,329  
Service cost     1,393       1,498       1,367  
Interest cost     728       603       604  
Actuarial gain (loss)     2,689       (2,070 )     1,721  
Direct benefit payments     (650 )     (682 )     (800 )
Projected benefit obligation at end of year   $ 19,730     $ 15,570     $ 16,221  
Amounts recognized in the consolidated balance sheets:                        
Projected benefit obligation   $ 19,730     $ 15,570     $ 16,221  

 

Amounts recognized in accumulated other comprehensive income (loss):                        
Prior service cost   $ (5,671 )   $ (6,049 )   $ (6,427 )
Accumulated actuarial loss     (3,849 )     (1,160 )     (3,320 )
Accumulated other comprehensive income (loss)   $ (9,520 )   $ (7,209 )   $ (9,747 )
Schedule of pension benefits expected to be paid in each of the next five years and in aggregate for the five years thereafter

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):

 

Year   Amount  
2015   $ 937  
2016     877  
2017     876  
2018     868  
2019     902  
Next five years     4,843