Annual report pursuant to Section 13 and 15(d)

Employee Benefits and Share-Based Compensation (Tables)

v3.19.3.a.u2
Employee Benefits and Share-Based Compensation (Tables)
12 Months Ended
Dec. 31, 2019
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, 2019

 

5,686,793

410,499

 

208,333

$

50.65

$

45.67

$

59.43

 

6.22

$

13,946

Exercised

 

(636,073)

(138,759)

 

40.30

19.00

 

  

 

  

Forfeited and cancelled

 

(132,166)

(156,251)

 

56.13

59.43

 

  

 

  

Outstanding as of December 31, 2019

 

4,918,554

115,489

 

208,333

$

51.84

$

59.11

$

59.43

 

5.42

$

33,413

Vested and expected to vest as of December 31, 2019

4,918,554

115,489

$

51.84

$

59.11

$

5.41

$

33,413

Exercisable as of December 31, 2019

4,917,721

115,489

$

51.84

$

59.11

$

5.41

$

33,411

Schedule of restricted share activity of NCLH shares

The following is a summary of NCLH’s restricted ordinary share activity for the period presented:

    

Number of

    

Time-

Weighted-

Based

Average Grant

Awards

Date Fair Value

Non-vested as of January 1, 2019

 

429

$

58.41

Vested

 

(429)

58.41

Non-vested as of December 31, 2019

 

$

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, 2019

 

2,973,032

$

53.98

 

825,614

$

56.58

 

50,000

$

59.43

Granted

 

1,929,495

55.00

 

462,282

(1)

55.27

 

Vested

 

(1,430,291)

53.02

 

(121,000)

56.27

 

Forfeited or expired

 

(226,611)

55.04

 

(37,500)

56.27

 

Non-vested as of December 31, 2019

 

3,245,625

$

54.94

 

1,129,396

$

56.09

 

50,000

$

59.43

Non-vested and expected to vest as of December 31, 2019

3,245,625

$

54.94

 

483,976

$

56.61

 

$

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

    

2019

    

2018

    

2017

Payroll and related (1)

$

17,597

$

15,629

$

9,455

Marketing, general and administrative (2)

 

77,458

 

100,354

 

77,584

Total share-based compensation expense

$

95,055

$

115,983

$

87,039

(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, 

    

2019

    

2018

    

2017

Pension expense:

 

  

 

  

 

  

Service cost

$

2,135

$

2,167

$

1,987

Interest cost

 

1,001

 

857

 

887

Amortization of prior service cost

 

378

 

378

 

378

Amortization of actuarial loss

 

 

51

 

40

Total pension expense

$

3,514

$

3,453

$

3,292

Change in projected benefit obligation:

 

  

 

  

 

  

Projected benefit obligation at beginning of year

$

24,318

$

24,587

$

22,605

Service cost

 

2,135

 

2,167

 

1,987

Interest cost

 

1,001

 

857

 

887

Actuarial gain (loss)

 

2,308

 

(2,271)

 

458

Direct benefit payments

 

(1,067)

 

(1,022)

 

(1,350)

Projected benefit obligation at end of year

$

28,695

$

24,318

$

24,587

Amounts recognized in the consolidated balance sheets:

 

  

 

  

 

  

Projected benefit obligation

$

28,695

$

24,318

$

24,587

For the Year Ended December 31, 

    

2019

    

2018

    

2017

Amounts recognized in accumulated other comprehensive income (loss):

 

  

 

  

 

  

Prior service cost

$

(3,781)

$

(4,159)

$

(4,537)

Accumulated actuarial loss

 

(3,413)

 

(1,105)

 

(3,426)

Accumulated other comprehensive income (loss)

$

(7,194)

$

(5,264)

$

(7,963)

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

2020

$

922

2021

949

2022

1,045

2023

1,208

2024

1,340

Next five years

10,585

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

    

2017

 

Dividend yield

 

—%

—%

Expected share price volatility

 

31.50% - 32.20%

25.97%

Risk-free interest rate

 

2.48% - 2.58%

1.81%

Expected term

 

3.72 - 4.22 years

 

4.20 years