Quarterly report pursuant to Section 13 or 15(d)

Employee Benefits and Compensation Plans

v3.10.0.1
Employee Benefits and Compensation Plans
 6 Months Ended
Jun. 30, 2018
Post employment Benefits [Abstract]  
Employee Benefits and Compensation Plans
9. Employee Benefits and Compensation Plans

 

Share Option Awards

 

The following is a summary of option activity under NCLH’s Amended and Restated 2013 Performance Incentive Plan for the six months ended June 30, 2018. The amounts include 208,335 of performance-based awards, which were previously awarded, as a grant date had been established in the first quarter of 2018.

 

    Number of Share Option
Awards		     Weighted-Average Exercise
Price		     Weighted-
Average
Contractual Term		     Aggregate
Intrinsic Value		  
    Time-
Based
Awards		     Performance-
Based
Awards		     Market-
Based
Awards		     Time-
Based
Awards		     Performance-
Based
Awards		     Market-
Based
Awards		     (years)     (in thousands)  
Outstanding as of January 1, 2018     6,580,898       373,969       208,333     $ 49.18     $ 31.39     $ 59.43       6.99     $ 50,021  
Granted     —       208,335       —       —       59.43       —       —       —  
Exercised     (468,540 )     (106,109 )     —       33.46       19.00       —       —       —  
Forfeited and cancelled     (169,000 )     (52,084 )     —       54.75       59.43       —       —       —  
Outstanding as of June 30, 2018     5,943,358       424,111       208,333     $ 50.26     $ 44.82     $ 59.43       6.69     $ 23,885  

 

Restricted Ordinary Share Awards

 

The following is a summary of restricted NCLH ordinary share activity for the six months ended June 30, 2018:

 

    Number of
Time-Based
Awards		     Weighted-
Average Grant
Date Fair
Value		  
Non-vested as of January 1, 2018     858     $ 58.33  
Granted     —       —  
Vested     (429 )     58.25  
Forfeited or expired     —       —  
Non-vested and expected to vest as of June 30, 2018     429     $ 58.41  

 

Restricted Share Unit Awards

 

On March 1, 2018, NCLH granted 1.6 million time-based restricted share unit awards to our employees which vest equally over three years. Additionally, on March 1, 2018, NCLH granted 0.5 million performance-based restricted share units to certain members of our management team which vest upon the achievement of certain pre-established performance targets (the number reported assumes the maximum level of achievement).

 

The following is a summary of restricted share unit activity for the six months ended June 30, 2018. The amounts include 0.3 million performance-based restricted share awards, which were previously awarded, as a grant date had been established in the first quarter of 2018 (the number reported assumes the maximum level of achievement).

 

    Number of
Time-Based
Awards		     Weighted-
Average Grant
Date Fair
Value		     Number of
Performance-
Based
Awards		     Weighted-
Average Grant
Date Fair Value		     Number of
Market-
Based
Awards		     Weighted-
Average Grant
Date Fair Value		  
Non-vested as of January 1, 2018     2,555,477     $ 50.86       —     $ —       50,000     $ 59.43  
Granted     1,613,077       56.73       843,998       56.58       —       —  
Vested     (1,006,184 )     50.61       —       —       —       —  
Forfeited or expired     (81,980 )     53.29       (12,500 )     59.43       —       —  
Non-vested and expected to vest as of June 30, 2018     3,080,390     $ 53.96       831,498     $ 56.58       50,000     $ 59.43  

 

The share-based compensation expense for the three months ended June 30, 2018 was $31.7 million of which $27.3 million was recorded in marketing, general and administrative expense and $4.4 million was recorded in payroll and related expense. The share-based compensation expense for the six months ended June 30, 2018 was $59.8 million of which $52.1 million was recorded in marketing, general and administrative expense and $7.7 million was recorded in payroll and related expense. The share-based compensation expense for the three months ended June 30, 2017 was $24.0 million of which $21.1 million was recorded in marketing, general and administrative expense and $2.9 million was recorded in payroll and related expense. The share-based compensation expense for the six months ended June 30, 2017 was $42.2 million of which $38.5 million was recorded in marketing, general and administrative expense and $3.7 million was recorded in payroll and related expense.