Annual report pursuant to Section 13 and 15(d)

Employee Benefits and Share-Based Compensation (Tables)

v3.20.4
Employee Benefits and Share-Based Compensation (Tables)
12 Months Ended
Dec. 31, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Schedule of summary of option activity

The following table sets forth a summary of option activity under NCLH’s Restated 2013 Plan for the period presented:

Weighted-

Number of Share Option Awards

Weighted-Average Exercise Price

Average

Aggregate

Time-

Performance-

Market-

Time-

Performance-

Market-

Contractual

Intrinsic

Based

Based

Based

Based

Based

Based

Term

Value

Awards

Awards

Awards

Awards

Awards

Awards

(years)

(in thousands)

Outstanding as of January 1, 2020

   

4,918,554

   

115,489

   

208,333

   

$

51.84

   

$

59.11

   

$

59.43

   

5.42

   

$

33,413

Exercised

(48,221)

(906)

44.38

19.00

  

  

Forfeited and cancelled

(345,126)

51.24

  

  

Outstanding as of December 31, 2020

4,525,207

114,583

208,333

$

51.96

$

59.43

$

59.43

4.42

$

Vested and expected to vest as of December 31, 2020

4,525,207

114,583

$

51.96

$

59.43

$

4.42

$

Exercisable as of December 31, 2020

4,525,207

114,583

$

51.96

$

59.43

$

4.42

$

Schedule of restricted stock units activity

The following table sets forth a summary of RSU activity for the period presented:

Number of

Weighted-

Number of

Weighted-

Number of

Weighted-

Time-Based

Average Grant

Performance-

Average Grant

Market-

Average Grant 

    

Awards

    

Date Fair Value

    

Based Awards

    

Date Fair Value

    

Based Awards

    

Date Fair Value

Non-vested as of January 1, 2020

 

3,245,625

$

54.94

 

1,129,396

$

56.09

 

50,000

$

59.43

Granted

 

5,380,123

23.69

 

945,598

(1)

27.75

 

Vested

 

(1,610,315)

54.01

 

(192,523)

56.27

 

Forfeited or expired

 

(351,508)

43.53

 

(317,287)

53.72

 

Non-vested as of December 31, 2020

 

6,663,925

$

30.54

 

1,565,184

$

39.42

 

50,000

$

59.43

Non-vested and expected to vest as of December 31, 2020

6,663,925

$

30.54

 

981,098

$

41.71

 

$

(1) Number of performance-based RSU awards included assumes maximum achievement of performance targets.
Schedule of compensation expense recognized for share-based compensation

The compensation expense recognized for share-based compensation for the periods presented include the following (in thousands):

Year Ended December 31, 

Classification of expense

    

2020

    

2019

    

2018

Payroll and related (1)

$

21,190

$

17,597

$

15,629

Marketing, general and administrative (2)

 

90,107

 

77,458

 

100,354

Total share-based compensation expense

$

111,297

$

95,055

$

115,983

(1) Amounts relate to equity granted to certain of our shipboard officers.
(2) Amounts relate to equity granted to certain of our corporate employees.
Schedule of amounts related to the Shipboard Retirement Plan

The amounts related to the Shipboard Retirement Plan were as follows (in thousands):

As of or for the Year Ended December 31, 

    

2020

    

2019

    

2018

Pension expense:

 

  

 

  

 

  

Service cost

$

2,665

$

2,135

$

2,167

Interest cost

 

895

 

1,001

 

857

Amortization of prior service cost

 

378

 

378

 

378

Amortization of actuarial loss

 

29

 

 

51

Total pension expense

$

3,967

$

3,514

$

3,453

Change in projected benefit obligation:

 

  

 

  

 

  

Projected benefit obligation at beginning of year

$

28,695

$

24,318

$

24,587

Service cost

 

2,665

 

2,135

 

2,167

Interest cost

 

895

 

1,001

 

857

Actuarial (gain) loss

 

62

 

2,308

 

(2,271)

Direct benefit payments

 

(698)

 

(1,067)

 

(1,022)

Projected benefit obligation at end of year

$

31,619

$

28,695

$

24,318

Amounts recognized in the consolidated balance sheets:

 

  

 

  

 

  

Projected benefit obligation

$

31,619

$

28,695

$

24,318

For the Year Ended December 31, 

    

2020

    

2019

    

2018

Amounts recognized in accumulated other comprehensive income (loss):

 

  

 

  

 

  

Prior service cost

$

(3,403)

$

(3,781)

$

(4,159)

Accumulated actuarial loss

 

(3,446)

 

(3,413)

 

(1,105)

Accumulated other comprehensive income (loss)

$

(6,849)

$

(7,194)

$

(5,264)

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

2021

$

918

2022

989

2023

1,118

2024

1,224

2025

1,339

Next five years

11,004

Performance-Based Option Awards  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Schedule of assumptions used within the option-pricing model

    

2018

 

Dividend yield

 

—%

Expected share price volatility

 

31.50% - 32.20%

Risk-free interest rate

 

2.48% - 2.58%

Expected term

 

3.72 - 4.22 years