Quarterly report pursuant to Section 13 or 15(d)

Employee Benefits and Compensation Plans

v3.8.0.1
Employee Benefits and Compensation Plans
 3 Months Ended
Mar. 31, 2018
Post employment Benefits [Abstract]  
Employee Benefits and Compensation Plans
8. 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 three months ended March 31, 2018: 

 

    Number of Share Option
Awards		     Weighted-Average Exercise
Price		     Weighted-
Average
Contractual Term		     Aggregate
Intrinsic Value		  
    Time-
Based
Awards		     Performance-
Based
Awards		     Market-
Based
Awards		     Time-
Based
Awards		     Performance-
Based
Awards		     Market-
Based
Awards		     (years)     (in thousands)  
Outstanding as of January 1, 2018     6,580,898       373,969       208,333     $ 49.18     $ 31.39     $ 59.43       6.99     $ 50,021  
Granted     —       208,335       —       —       59.43       —       —       —  
Exercised     (117,805 )     —       —       39.27       —       —       —       —  
Forfeited and cancelled     (60,083 )     (52,084 )     —       52.08       59.43       —       —       —  
Outstanding as of March 31, 2018     6,403,010       530,220       208,333     $ 49.34     $ 39.65     $ 59.43       6.77     $ 47,171  

 

Restricted Ordinary Share Awards

 

The following is a summary of restricted NCLH ordinary share activity for the three months ended March 31, 2018:

 

    Number of
Time-Based
Awards		     Weighted-
Average Grant
Date Fair
Value		  
Non-vested as of January 1, 2018     858     $ 58.33  
Granted     —       —  
Vested     (429 )     58.25  
Forfeited or expired     —       —  
Non-vested and expected to vest as of March 31, 2018     429     $ 58.41  

 

Restricted Share Unit Awards

 

On March 1, 2018, NCLH granted 1.6 million time-based restricted share unit awards to our employees which vest equally over three years. Additionally, on February 27, 2018 and March 1, 2018, NCLH granted 0.3 million and 0.5 million performance-based restricted share units, respectively, to certain members of our management team which vest upon the achievement of certain pre-established performance targets.

 

The following is a summary of restricted share unit activity for the three months ended March 31, 2018:

 

    Number of
Time-Based
Awards		     Weighted-
Average Grant
Date Fair
Value		     Number of
Performance-
Based
Awards		     Weighted-
Average Grant
Date Fair Value		     Number of
Market-
Based
Awards		     Weighted-
Average Grant
Date Fair Value		  
Non-vested as of January 1, 2018     2,555,477     $ 50.86       —     $ —       50,000     $ 59.43  
Granted     1,606,156       56.74       843,998       56.58       —       —  
Vested     (938,637 )     56.68       —                          
Forfeited or expired     (39,872 )     52.72       (12,500 )     59.43       —       —  
Non-vested and expected to vest as of March 31, 2018     3,183,124     $ 53.90       831,498     $ 55.94       50,000     $ 59.43  

 

The share-based compensation expense for the three months ended March 31, 2018 was $28.1 million of which $24.7 million was recorded in marketing, general and administrative expense and $3.4 million was recorded in payroll and related expense. The share-based compensation expense for the three months ended March 31, 2017 was $18.2 million of which $17.4 million was recorded in marketing, general and administrative expense and $0.8 million was recorded in payroll and related expense.