Employee Benefits and Share-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2019

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

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:

										Weighted-
	Number of Share Option Awards			Weighted-Average Exercise Price						Average	Aggregate
	Time-	Performance-	Market-	Time-		Performance-		Market-		Contractual	Intrinsic
	Based	Based	Based	Based		Based		Based		Term	Value
	Awards	Awards	Awards	Awards		Awards		Awards		(years)	(in thousands)
Outstanding as of January 1, 2019	5,686,793	410,499	208,333	$	50.65	$	45.67	$	59.43	6.22	$	13,946
Exercised	(636,073)	(138,759)	—		40.30		19.00		—
Forfeited and cancelled	(132,166)	(156,251)	—		56.13		59.43		—
Outstanding as of December 31, 2019	4,918,554	115,489	208,333	$	51.84	$	59.11	$	59.43	5.42	$	33,413
Vested and expected to vest as of December 31, 2019	4,918,554	115,489	—	$	51.84	$	59.11	$	—	5.41	$	33,413
Exercisable as of December 31, 2019	4,917,721	115,489	—	$	51.84	$	59.11	$	—	5.41	$	33,411

Schedule of restricted share activity of NCLH shares

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

	Number of
	Time-	Weighted-
	Based	Average Grant
	Awards	Date Fair Value
Non-vested as of January 1, 2019	429	$	58.41
Vested	(429)		58.41
Non-vested as of December 31, 2019	—	$	—

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):

	Year Ended December 31,
Classification of expense	2019		2018		2017
Payroll and related (1)	$	17,597	$	15,629	$	9,455
Marketing, general and administrative (2)		77,458		100,354		77,584
Total share-based compensation expense	$	95,055	$	115,983	$	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.

Schedule of amounts related to the Shipboard Retirement Plan

The amounts related to the Shipboard Retirement Plan were as follows (in thousands):

	As of or for the Year Ended December 31,
	2019		2018		2017
Pension expense:
Service cost	$	2,135	$	2,167	$	1,987
Interest cost		1,001		857		887
Amortization of prior service cost		378		378		378
Amortization of actuarial loss		—		51		40
Total pension expense	$	3,514	$	3,453	$	3,292
Change in projected benefit obligation:
Projected benefit obligation at beginning of year	$	24,318	$	24,587	$	22,605
Service cost		2,135		2,167		1,987
Interest cost		1,001		857		887
Actuarial gain (loss)		2,308		(2,271)		458
Direct benefit payments		(1,067)		(1,022)		(1,350)
Projected benefit obligation at end of year	$	28,695	$	24,318	$	24,587
Amounts recognized in the consolidated balance sheets:
Projected benefit obligation	$	28,695	$	24,318	$	24,587

	For the Year Ended December 31,
	2019		2018		2017
Amounts recognized in accumulated other comprehensive income (loss):
Prior service cost	$	(3,781)	$	(4,159)	$	(4,537)
Accumulated actuarial loss		(3,413)		(1,105)		(3,426)
Accumulated other comprehensive income (loss)	$	(7,194)	$	(5,264)	$	(7,963)

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):

Year	Amount
2020	$	922
2021		949
2022		1,045
2023		1,208
2024		1,340
Next five years		10,585

Performance Based Options

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Schedule of assumptions used within the option-pricing model

	2018	2017
Dividend yield	—%	—%
Expected share price volatility	31.50% - 32.20%	25.97%
Risk-free interest rate	2.48% - 2.58%	1.81%
Expected term	3.72 - 4.22 years	4.20 years