XML 47 R23.htm IDEA: XBRL DOCUMENT v3.3.0.814
Impairment of Pullmantur Related Assets (Details)
$ in Thousands
9 Months Ended
Sep. 30, 2015
USD ($)
Goodwill [Roll Forward]  
Beginning balance, Goodwill $ 420,542
Ending balance, Goodwill 286,707
Pullmantur  
Goodwill [Roll Forward]  
Beginning balance, Goodwill 133,583
Impairment of Pullmantur related assets, Goodwill (123,814) [1]
Foreign currency translation adjustment, Goodwill (9,769)
Ending balance, Goodwill 0
Indefinite-lived Intangible Assets [Roll Forward]  
Beginning balance, Intangibles 188,037
Impairment of Pullmantur related assets, Intangibles (174,285) [2]
Foreign currency translation adjustment, Intangibles (13,752)
Ending balance, Intangibles $ 0
[1] We estimated the fair value of the Pullmantur reporting unit using a probability-weighted discounted cash flow model. The principal assumptions used in the discounted cash flow model are projected operating results, weighted-average cost of capital and terminal value. Significantly impacting these assumptions was the decision to reduce the size of Pullmantur's fleet. The discounted cash flow model used our 2016 projected operating results as a base. To that base we added future years’ cash flows through 2020 assuming multiple revenue and expense scenarios that reflect the impact of different global economic environments for this period on Pullmantur’s reporting unit. We assigned a probability to each revenue and expense scenario. We discounted the projected cash flows using rates specific to Pullmantur’s reporting unit based on its weighted-average cost of capital, which was determined to be 11%. (2) We estimated the fair value of our indefinite-life intangible asse
[2] We estimated the fair value of our indefinite-life intangible asset using a discounted cash flow model and the relief-from-royalty method. These trademarks and trade names relate to Pullmantur and we have used a discount rate of 11.5%, comparable to the rate used in valuing the Pullmantur reporting unit.