Quarterly report pursuant to Section 13 or 15(d)

Employee Benefits and Compensation Plans

v3.19.1
Employee Benefits and Compensation Plans
 3 Months Ended
Mar. 31, 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 three months ended March 31, 2019: 

 

    Number of Share Option
Awards		     Weighted-Average Exercise
Price		     Weighted-      
    Time-
Based
Awards		     Performance-
Based
Awards		     Market-
Based
Awards		     Time-
Based
Awards		     Performance-
Based
Awards		     Market-
Based
Awards		     Average
Contractual Term
(years)		     Aggregate
Intrinsic Value
(in thousands)		  
Outstanding as of January 1, 2019     5,686,793       410,499       208,333     $ 50.65     $ 45.67     $ 59.43     6.22     $ 13,946  
Exercised     (129,150 )     (54,695 )     —       38.40       19.00       —                  
Forfeited and cancelled     (27,000 )     (156,251 )     —       57.03       59.43       —                  
Outstanding as of March 31, 2019     5,530,643       199,553       208,333     $ 50.90     $ 42.21     $ 59.43     6.02     $ 33,072  

 

Restricted Ordinary Share Awards

 

The following is a summary of restricted NCLH ordinary share activity for the three months ended March 31, 2019:

 

    Number of
Time-Based
Awards		     Weighted-
Average Grant
Date Fair
Value		  
Non-vested as of January 1, 2019     429     $ 58.41  
Vested     (429 )     58.41  
Non-vested and expected to vest as of March 31, 2019     -     $ -  

 

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 three months ended March 31, 2019:

 

    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, 2019     2,973,032     $ 53.98       825,614     $ 56.58       50,000     $ 59.43  
Granted     1,902,847       55.03       462,282 (1)     55.27       —       —  
Vested     (1,358,074 )     53.13       (121,000 )     56.27       —       —  
Forfeited or expired     (35,536 )     54.74       (37,500 )     56.27       —       —  
Non-vested and expected to vest as of March 31, 2019     3,482,269     $ 54.88       1,129,396     $ 56.09       50,000     $ 59.43  

 

 

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

 

The share-based compensation expense for the three months ended March 31, 2019 was $27.0 million of which $23.2 million was recorded in marketing, general and administrative expense and $3.8 million was recorded in payroll and related expense. 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.