Annual report pursuant to Section 13 and 15(d)

Employee Benefits and Share Option Plans (Tables)

v2.4.0.8
Employee Benefits and Share Option Plans (Tables)
12 Months Ended
Dec. 31, 2013
Information Related to Profits Interests

We will not grant any additional profits interests under the profits sharing agreement, and new long-term incentive awards have been and will be granted under NCLH’s new long-term incentive plan.

 

     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, 2012

     2,265,554        3,495,737      $ 3.53       $ 3.56   

Exchanged for NCLH shares

     (510,917     (528,382   $ 3.78       $ 3.47   

Forfeited

     (4,978     (7,322   $ 2.96       $ 4.92   
  

 

 

   

 

 

      

Outstanding as of December 31, 2013

     1,749,659        2,960,033      $ 3.45       $ 3.57   
  

 

 

   

 

 

      

Vested and expected to vest as of December 31, 2013

     1,663,732        2,455,563      $ 3.50       $ 3.56   
  

 

 

   

 

 

      

Exchangeable as of December 31, 2013

     1,320,027        437,682      $ 3.77       $ 3.34   
  

 

 

   

 

 

      

Non-vested as of December 31, 2013

     429,632        2,522,351      $ 2.50       $ 3.61   
  

 

 

   

 

 

      
Assumptions Used within Option-Pricing Model

The assumptions used within the option-pricing model are as follows:

 

     2013

Dividend yield

   0%

Expected stock price volatility

   50.40%-54.80%

Risk-free interest rate

   0.8%-1.82%

Expected unit life

   5.00-6.25 years
Summary of Share Option Activity

The following is a summary of option activity under our share option plan for the year ended December 31, 2013:

 

     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, 2013

     —          —        $ —         $ —           

Granted

     3,394,114        1,579,939        25.15         19.00         

Exercised

     (106,339     —          19.00         —           

Forfeited

     (45,132     (7,423     24.30         19.00         
  

 

 

   

 

 

            

Outstanding as of December 31, 2013

     3,242,643        1,572,516      $ 25.36       $ 19.00         7.26       $ 58,684   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Vested and expected to vest as of December 31, 2013

     2,902,762        1,258,012      $ 25.20       $ 19.00         7.28       $ 50,525   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Exercisable as of December 31, 2013

     771,084        —        $ 19.00       $ —           6.05       $ 12,700   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 
Amounts Related to 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,  
     2013     2012     2011  

Pension expense:

      

Service cost

   $ 1,498      $ 1,367      $ 1,072   

Interest cost

     603        604        531   

Amortization of prior service cost

     378        378        378   

Amortization of actuarial loss

     90        13        —     
  

 

 

   

 

 

   

 

 

 

Total pension expense

   $ 2,569      $ 2,362      $ 1,981   
  

 

 

   

 

 

   

 

 

 

Change in projected benefit obligation:

      

Projected benefit obligation at beginning of year

   $ 16,221      $ 13,329      $ 9,478   

Service cost

     1,498        1,367        1,072   

Interest cost

     603        604        531   

Actuarial gain (loss)

     (2,070     1,721        2,993   

Direct benefit payments

     (682     (800     (745
  

 

 

   

 

 

   

 

 

 

Projected benefit obligation at end of year

   $ 15,570      $ 16,221      $ 13,329   
  

 

 

   

 

 

   

 

 

 

Amounts recognized in the consolidated balance sheets:

      

Projected benefit obligation

   $ 15,570      $ 16,221      $ 13,329   
  

 

 

   

 

 

   

 

 

 

Amounts recognized in accumulated other comprehensive income (loss):

      

Prior service cost

   $ (6,049   $ (6,427   $ (6,805

Accumulated actuarial loss

     (1,160     (3,320     (1,612
  

 

 

   

 

 

   

 

 

 

Accumulated other comprehensive income (loss)

   $ (7,209   $ (9,747   $ (8,417
  

 

 

   

 

 

   

 

 

 
Pension Benefits Future Payments in Next Five Years

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  

2014

   $ 790   

2015

     805   

2016

     816   

2017

     880   

2018

     944   

Next five years

     6,169   
Restricted Stock
 
Information Related to Profits Interests

The following is a summary of restricted share activity for the year ended December 31, 2013:

 

     Number  of
Restricted
Share

Awards
    Weighted-
Average Grant-
Date Fair Value
 

Nonvested as of January 1, 2013

     —        $ —     

Granted

     17,210        23.24   

Vested as of December 31, 2013

     (6,454     23.24   

Forfeited

     —          —     
  

 

 

   

Non-vested as of December 31, 2013

     10,756      $ 23.24