Quarterly report pursuant to Section 13 or 15(d)

Summary of Significant Accounting Policies (Policies)

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Summary of Significant Accounting Policies (Policies)
 9 Months Ended
Sep. 30, 2013
Basis of Presentation

Basis of Presentation

The accompanying consolidated financial statements are unaudited and, in our opinion, contain all normal recurring adjustments necessary for a fair statement of the results for the periods presented.

Our operations are seasonal and results for interim periods are not necessarily indicative of the results for the entire fiscal year. Historically, demand for cruises has been strongest during the summer months. The interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2012, which are included in our most recently filed Annual Report on Form 10-K.
Earnings Per Share

Earnings Per Share

Basic earnings per share is computed by dividing net income attributable to Norwegian Cruise Line Holdings Ltd. by the weighted-average shares outstanding during each period. Diluted earnings per share incorporates the incremental shares issuable upon conversion of potentially dilutive shares and is computed by dividing net income by the diluted weighted-average shares outstanding during each period. A reconciliation between basic and diluted earnings per share was as follows (in thousands, except share and per share data):

 

     Three Months Ended
September 30, 		     Nine Months Ended September 30,  
     2013      2012      2013      2012  

Net income attributable to Norwegian Cruise Line Holdings Ltd.

    $ 170,858       $ 128,188       $ 65,622       $ 167,503   
  

 

 

     

 

 

     

 

 

     

 

 

  

Net income

    $ 172,894       $ 128,188       $ 66,479       $ 167,503   
  

 

 

     

 

 

     

 

 

     

 

 

  

Basic weighted-average shares outstanding

      204,425,308         178,252,763         202,279,989         178,198,984   

Dilutive effect of awards

      6,277,936         797,287         6,393,619         787,520   
  

 

 

     

 

 

     

 

 

     

 

 

  

Diluted weighted-average shares outstanding

      210,703,244         179,050,050         208,673,608         178,986,504   
  

 

 

     

 

 

     

 

 

     

 

 

  

Basic earnings per share

    $ 0.84       $ 0.72       $ 0.32       $ 0.94   
  

 

 

     

 

 

     

 

 

     

 

 

  

Diluted earnings per share

    $ 0.82       $ 0.72       $ 0.32       $ 0.94   
  

 

 

     

 

 

     

 

 

     

 

 

  
Revenue and Expense Recognition

Revenue and Expense Recognition

Revenue and expense includes taxes assessed by governmental authorities that are directly imposed on a revenue-producing transaction between a seller and a customer. The amounts included in revenue and expense on a gross basis were $44.4 million and $37.4 million for the three months ended September 30, 2013 and 2012, respectively, and $111.9 million and $104.0 million for the nine months ended September 30, 2013 and 2012, respectively.
Recent Accounting Pronouncements

Recent Accounting Pronouncements

In February 2013, the Financial Accounting Standards Board issued Accounting Standards Update No. 2013-02, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” Significant amounts reclassified from each component of accumulated other comprehensive income and the income statement line items affected by the reclassification shall be disclosed in a note to the consolidated financial statements or presented parenthetically on the face of the financial statements (we refer you to Note 3— “Accumulated Other Comprehensive Income (Loss)”).

We have adopted the disclosure requirements as presented in the amendment to subtopic 210-20 “Disclosures about Offsetting Assets and Liabilities” which requires that we disclose separately for assets and liabilities the gross recognition and the offsetting amounts which are permitted by our master netting arrangements for our derivative contracts (we refer you to Note 7— “Fair Value Measurements and Derivatives”).