Norwegian Cruise Line Holdings Ltd. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Components of Provision for Income Taxes

The components of the provision for income taxes consisted of the following (in thousands):


	Year Ended December 31,
	2013		2012		2011
Current:
Bermuda	$	—	$	—	$	—
United States		8,098		—		—
Foreign -Other		860		706		1,700

Total current		8,958		706		1,700

Deferred:
Bermuda		—		—		—
United States		2,844		—		—
Foreign -Other		—		—		—

Total deferred:		2,844		—		—

Income tax expense	$	11,802	$	706	$	1,700

Reconciliation of Income Tax Expense to Bermuda Statutory Rate and Reported Income Tax Expense

Our reconciliation of income tax expense computed by applying our Bermuda statutory rate and reported income tax expense was as follows (in thousands):


	Year Ended December 31,
	2013			2012		2011
Tax at Bermuda statutory rate	$	—		$	—	$	—
Foreign income taxes at different rates		14,020			706		1,700

Benefit from global tax platform		(6,074	)		—		—
Tax contingencies		1,394			—		—
Expense from change in tax status		2,462			—		—

Income tax expense	$	11,802		$	706	$	1,700

Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities were as follows:


	As of December 31,
	2013			2012
Deferred tax assets:
Loss carryforwards	$	28,351		$	30,945
Shares in foreign subsidiary		59,587			81,715
Other		2,920			535

		90,858			113,195
Valuation allowance		(84,695	)		(113,195	)

Total net deferred assets		6,163			—

Deferred tax liabilities:
Property and equipment		(6,367	)		—

Total deferred tax liabilities		(6,367	)		—

Net deferred tax liability	$	(204	)	$	—

Reconciliation of Total Amounts of Unrecognized Tax Benefits

The following is a tabular reconciliation of the total amounts of unrecognized tax benefits (in thousands):


	Year Ended December 31, 2013
Unrecognized tax benefits, beginning of year	$	—
Gross increases (decreases) in tax positions from prior periods		9,500
Gross increases in tax positions in current period		1,394
Settlement of tax positions/lapse of statute of limitations		—

Unrecognized tax benefits, end of year	$	10,894

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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