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 |
|
|