Quarterly report pursuant to Section 13 or 15(d)

Employee Benefits and Compensation Plans

v3.10.0.1
Employee Benefits and Compensation Plans
 9 Months Ended
Sep. 30, 2018
Disclosure Of Compensation Related Costs Share based Payments [Abstract]  
Employee Benefits and Compensation Plans
9. Employee Benefits and Compensation Plans

 

Share Option Awards

 

The following table sets forth a summary of option activity under NCLH’s Amended and Restated 2013 Performance Incentive Plan, including 208,335 previously awarded performance-based share option awards, for which a grant date was established in 2018, for the period presented:

 

    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		     (in 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     (625,611 )     (109,285 )     —     $ 34.44     $ 19.00     $ —       —     $ —  
Forfeited and cancelled     (192,333 )     (52,084 )     —     $ 54.70     $ 59.43     $ —       —     $ —  
Outstanding as of September 30, 2018     5,762,954       420,935       208,333     $ 50.60     $ 45.01     $ 59.43       6.46     $ 47,269  

 

Restricted Ordinary Share Awards

 

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

 

    Number of
Time-Based
Awards		    

Weighted-

Average Grant
Date Fair Value

  
Non-vested as of January 1, 2018     858     $ 58.33  
Vested     (429 )   $ 58.25  
Non-vested as of September 30, 2018     429     $ 58.41  

 

Restricted Share Unit Awards

 

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

 

The following table sets forth a summary of restricted share unit activity and includes 0.3 million previously awarded performance-based restricted share awards for which the grant date was established in 2018 (the number reported assumes the maximum level of achievement), for the period presented:

 

    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     (1,032,760 )   $ 50.66       —     $ —       —     $ —  
Forfeited or expired     (142,227 )   $ 53.31       (18,384 )   $ 56.43       —     $ —  
Non-vested as of September 30, 2018     2,993,567     $ 53.98       825,614     $ 56.58       50,000     $ 59.43  

 

Share-based compensation expense for the three and nine months ended September 30, 2018 was $29.0 million and $88.8 million, respectively, of which $24.9 million and $77.0 million, respectively, was recorded in marketing, general and administrative expense and $4.1 million and $11.8 million, respectively, was recorded in payroll and related expense, in the consolidated statements of operations.

 

Share-based compensation expense for the three and nine months ended September 30, 2017 was $21.5 million and $63.7 million, respectively, of which $18.6 million and $57.1 million, respectively, was recorded in marketing, general and administrative expense and $2.9 million and $6.6 million, respectively, was recorded in payroll and related expense in the consolidated statements of operations.