Employee Benefits and Share-Based Compensation (Tables)
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12 Months Ended |
Dec. 31, 2019 |
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| Share Based Compensation Arrangement By Share Based Payment Award [Line Items] |
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| 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:
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Number of Share Option Awards |
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Weighted-Average Exercise Price |
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Outstanding as of January 1, 2019 |
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5,686,793 |
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410,499 |
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208,333 |
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$ |
50.65 |
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$ |
45.67 |
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$ |
59.43 |
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6.22 |
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$ |
13,946 |
Exercised |
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(636,073) |
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(138,759) |
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— |
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40.30 |
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19.00 |
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— |
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Forfeited and cancelled |
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(132,166) |
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(156,251) |
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— |
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56.13 |
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59.43 |
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— |
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Outstanding as of December 31, 2019 |
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4,918,554 |
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115,489 |
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208,333 |
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$ |
51.84 |
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$ |
59.11 |
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$ |
59.43 |
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5.42 |
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$ |
33,413 |
Vested and expected to vest as of December 31, 2019 |
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4,918,554 |
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115,489 |
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— |
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$ |
51.84 |
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$ |
59.11 |
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$ |
— |
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5.41 |
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$ |
33,413 |
Exercisable as of December 31, 2019 |
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| Schedule of restricted share activity of NCLH shares |
The following is a summary of NCLH’s restricted ordinary share activity for the period presented:
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Number of |
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Time- |
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Weighted- |
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Based |
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Average Grant |
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Awards |
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Date Fair Value |
Non-vested as of January 1, 2019 |
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429 |
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$ |
58.41 |
Vested |
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(429) |
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58.41 |
Non-vested as of December 31, 2019 |
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— |
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$ |
— |
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| Schedule of restricted stock units activity |
The following table sets forth a summary of RSU activity for the period presented:
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Number of |
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Weighted- |
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Number of |
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Weighted- |
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Number of |
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Weighted- |
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Time-Based |
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Average Grant |
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Performance- |
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Average Grant |
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Market- |
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Average Grant |
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Awards |
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Date Fair Value |
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Based Awards |
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Date Fair Value |
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Based Awards |
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Date Fair Value |
Non-vested as of January 1, 2019 |
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2,973,032 |
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$ |
53.98 |
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825,614 |
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$ |
56.58 |
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50,000 |
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$ |
59.43 |
Granted |
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1,929,495 |
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55.00 |
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462,282 |
(1) |
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55.27 |
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— |
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— |
Vested |
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(1,430,291) |
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53.02 |
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(121,000) |
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56.27 |
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— |
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— |
Forfeited or expired |
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(226,611) |
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55.04 |
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(37,500) |
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56.27 |
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— |
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— |
Non-vested as of December 31, 2019 |
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3,245,625 |
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$ |
54.94 |
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1,129,396 |
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$ |
56.09 |
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50,000 |
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$ |
59.43 |
Non-vested and expected to vest as of December 31, 2019 |
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3,245,625 |
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$ |
54.94 |
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483,976 |
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$ |
56.61 |
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— |
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$ |
— |
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| 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):
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Year Ended December 31, |
Classification of expense |
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2019 |
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2018 |
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2017 |
Payroll and related (1) |
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$ |
17,597 |
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$ |
15,629 |
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$ |
9,455 |
Marketing, general and administrative (2) |
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77,458 |
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100,354 |
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77,584 |
Total share-based compensation expense |
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$ |
95,055 |
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$ |
115,983 |
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$ |
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. |
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| Schedule of amounts related to the Shipboard Retirement Plan |
The amounts related to the Shipboard Retirement Plan were as follows (in thousands):
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As of or for the Year Ended December 31, |
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2019 |
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2018 |
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2017 |
Pension expense: |
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Service cost |
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$ |
2,135 |
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$ |
2,167 |
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$ |
1,987 |
Interest cost |
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1,001 |
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857 |
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887 |
Amortization of prior service cost |
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378 |
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378 |
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378 |
Amortization of actuarial loss |
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— |
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51 |
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40 |
Total pension expense |
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$ |
3,514 |
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$ |
3,453 |
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$ |
3,292 |
Change in projected benefit obligation: |
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Projected benefit obligation at beginning of year |
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$ |
24,318 |
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$ |
24,587 |
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$ |
22,605 |
Service cost |
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2,135 |
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2,167 |
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1,987 |
Interest cost |
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1,001 |
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857 |
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887 |
Actuarial gain (loss) |
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2,308 |
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(2,271) |
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458 |
Direct benefit payments |
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(1,067) |
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(1,022) |
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(1,350) |
Projected benefit obligation at end of year |
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$ |
28,695 |
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$ |
24,318 |
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$ |
24,587 |
Amounts recognized in the consolidated balance sheets: |
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Projected benefit obligation |
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$ |
28,695 |
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$ |
24,318 |
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$ |
24,587 |
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For the Year Ended December 31, |
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2019 |
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2018 |
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2017 |
Amounts recognized in accumulated other comprehensive income (loss): |
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Prior service cost |
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$ |
(3,781) |
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$ |
(4,159) |
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$ |
(4,537) |
Accumulated actuarial loss |
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(3,413) |
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(1,105) |
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(3,426) |
Accumulated other comprehensive income (loss) |
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$ |
(7,194) |
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$ |
(5,264) |
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$ |
(7,963) |
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| 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):
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Year |
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Amount |
2020 |
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$ |
922 |
2021 |
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949 |
2022 |
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1,045 |
2023 |
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1,208 |
2024 |
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1,340 |
Next five years |
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10,585 |
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| Performance-Based Option Awards |
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| Share Based Compensation Arrangement By Share Based Payment Award [Line Items] |
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| Schedule of assumptions used within the option-pricing model |
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2018 |
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2017 |
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Dividend yield |
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—% |
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—% |
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Expected share price volatility |
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31.50% - 32.20% |
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25.97% |
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Risk-free interest rate |
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2.48% - 2.58% |
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1.81% |
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Expected term |
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3.72 - 4.22 years |
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4.20 years |
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