2016 Annual Report for Norwegian Cruiseline Holdings - 22

An impairment of our tradenames or goodwill could adversely affect our financial condition and operating results.
We evaluate tradenames and goodwill for impairment on an annual basis, or more frequently when circumstances indicate that the carrying value of a
reporting unit may not be recoverable. Several factors, including a challenging operating environment, impacts affecting consumer demand or spending,
the deterioration of general macroeconomic conditions, or other factors could result in a change to the future cash flows we expect to derive from our
operations. Reductions of the cash flows used in the impairment analyses may result in the recording of an impairment charge to a reporting unit's
tradename or goodwill, which could adversely impact our results of operations.
Our hedging strategies may not be cost-effective or adequately protect us from increased costs related to changes in fuel prices.
In order to manage risks associated with the variable market prices of fuel, we routinely hedge a portion of our future fuel requirements. However, our
hedging program may not be successful in mitigating higher fuel costs, and any price protection provided may be limited due to market conditions,
including choice of hedging instruments, breakdown of correlation between hedging instrument and market price of fuel and failure of hedge
counterparties. To the extent that we use hedge contracts that have the potential to create an obligation to pay upon settlement if fuel prices decline
significantly, such hedge contracts may limit our ability to benefit fully from lower fuel costs in the future. There can be no assurance that our hedging
arrangements will be cost-effective, will provide any particular level of protection against rises in fuel prices or that our counterparties will be able to
perform under our hedging arrangements. Additionally, deterioration in our financial condition could negatively affect our ability to enter into new
hedge contracts in the future.
Our inability to obtain adequate insurance coverage may adversely affect our business, financial condition and results of operations.
There can be no assurance that all of our risks are fully insured against or that any particular claim will be fully paid by our insurance. Such losses, to the
extent they are not adequately covered by contractual remedies or insurance, could affect our financial results. In addition, we have been and continue to
be subject to calls, or premiums, in amounts based not only on our own claim records, but also the claim records of all other members of the protection
and indemnity associations through which we receive indemnity coverage for tort liability. Our payment of these calls and increased premiums could
result in significant expenses to us. If we were to sustain significant losses in the future, our ability to obtain insurance coverage at all or at commercially
reasonable rates could be materially adversely affected. Moreover, irrespective of the occurrence of such events, there can still be no assurance that we
will be able to obtain adequate insurance coverage at commercially reasonable rates or at all.
Our substantial indebtedness could adversely affect our ability to raise additional capital to fund our operations, limit our ability to react to changes
in the economy or our industry and prevent us from making debt service payments.
Our level of indebtedness could limit cash flow available for our operations and could adversely affect our financial condition, results of operations,
prospects and flexibility. Our substantial indebtedness could:


limit our ability to borrow money for our working capital, capital expenditures, development projects, debt service requirements, strategic
initiatives or other purposes;



make it more difficult for us to satisfy our obligations with respect to our indebtedness, and any failure to comply with the obligations of any
of our debt instruments, including restrictive covenants and borrowing conditions, could result in an event of default under the agreements
governing our indebtedness;



require us to dedicate a substantial portion of our cash flow from operations to the repayment of our indebtedness, thereby reducing funds
available to us for other purposes;



limit our flexibility in planning for, or reacting to, changes in our operations or business;



make us more highly leveraged than some of our competitors, which may place us at a competitive disadvantage;



make us more vulnerable to downturns in our business, the economy or the industry in which we operate;



restrict us from making strategic acquisitions, introducing new technologies or exploiting business opportunities;



restrict us from taking certain actions by means of restrictive covenants in the agreements governing our indebtedness;



make our credit card processors seek more restrictive terms in respect of our credit card arrangements; and



expose us to the risk of increased interest rates as certain borrowings are (and may be in the future) at a variable rate of interest.

We also may be able to incur substantial additional indebtedness at any time in the future. Although the terms of the agreements governing our
indebtedness contain restrictions on our ability to incur additional indebtedness, these restrictions are subject to a number of important qualifications and
exceptions, and the indebtedness incurred in compliance with these restrictions could be substantial. We may not be able to generate sufficient cash to
service all of our indebtedness, and may be forced to take other actions to satisfy our obligations under our indebtedness, including refinancing our
indebtedness, that may not be successful. Any refinancing of our debt could be at higher interest rates and may require us to comply with more onerous
covenants, which could further restrict our business operations.
22



Table of Contents for the Digital Edition of 2016 Annual Report for Norwegian Cruiseline Holdings

Contents
2016 Annual Report for Norwegian Cruiseline Holdings - Cover1
2016 Annual Report for Norwegian Cruiseline Holdings - Cover2
2016 Annual Report for Norwegian Cruiseline Holdings - I
2016 Annual Report for Norwegian Cruiseline Holdings - II
2016 Annual Report for Norwegian Cruiseline Holdings - III
2016 Annual Report for Norwegian Cruiseline Holdings - IV
2016 Annual Report for Norwegian Cruiseline Holdings - V
2016 Annual Report for Norwegian Cruiseline Holdings - VI
2016 Annual Report for Norwegian Cruiseline Holdings - VII
2016 Annual Report for Norwegian Cruiseline Holdings - VIII
2016 Annual Report for Norwegian Cruiseline Holdings - IX
2016 Annual Report for Norwegian Cruiseline Holdings - X
2016 Annual Report for Norwegian Cruiseline Holdings - XI
2016 Annual Report for Norwegian Cruiseline Holdings - Contents
2016 Annual Report for Norwegian Cruiseline Holdings - 1
2016 Annual Report for Norwegian Cruiseline Holdings - 2
2016 Annual Report for Norwegian Cruiseline Holdings - 3
2016 Annual Report for Norwegian Cruiseline Holdings - 4
2016 Annual Report for Norwegian Cruiseline Holdings - 5
2016 Annual Report for Norwegian Cruiseline Holdings - 6
2016 Annual Report for Norwegian Cruiseline Holdings - 7
2016 Annual Report for Norwegian Cruiseline Holdings - 8
2016 Annual Report for Norwegian Cruiseline Holdings - 9
2016 Annual Report for Norwegian Cruiseline Holdings - 10
2016 Annual Report for Norwegian Cruiseline Holdings - 11
2016 Annual Report for Norwegian Cruiseline Holdings - 12
2016 Annual Report for Norwegian Cruiseline Holdings - 13
2016 Annual Report for Norwegian Cruiseline Holdings - 14
2016 Annual Report for Norwegian Cruiseline Holdings - 15
2016 Annual Report for Norwegian Cruiseline Holdings - 16
2016 Annual Report for Norwegian Cruiseline Holdings - 17
2016 Annual Report for Norwegian Cruiseline Holdings - 18
2016 Annual Report for Norwegian Cruiseline Holdings - 19
2016 Annual Report for Norwegian Cruiseline Holdings - 20
2016 Annual Report for Norwegian Cruiseline Holdings - 21
2016 Annual Report for Norwegian Cruiseline Holdings - 22
2016 Annual Report for Norwegian Cruiseline Holdings - 23
2016 Annual Report for Norwegian Cruiseline Holdings - 24
2016 Annual Report for Norwegian Cruiseline Holdings - 25
2016 Annual Report for Norwegian Cruiseline Holdings - 26
2016 Annual Report for Norwegian Cruiseline Holdings - 27
2016 Annual Report for Norwegian Cruiseline Holdings - 28
2016 Annual Report for Norwegian Cruiseline Holdings - 29
2016 Annual Report for Norwegian Cruiseline Holdings - 30
2016 Annual Report for Norwegian Cruiseline Holdings - 31
2016 Annual Report for Norwegian Cruiseline Holdings - 32
2016 Annual Report for Norwegian Cruiseline Holdings - 33
2016 Annual Report for Norwegian Cruiseline Holdings - 34
2016 Annual Report for Norwegian Cruiseline Holdings - 35
2016 Annual Report for Norwegian Cruiseline Holdings - 36
2016 Annual Report for Norwegian Cruiseline Holdings - 37
2016 Annual Report for Norwegian Cruiseline Holdings - 38
2016 Annual Report for Norwegian Cruiseline Holdings - 39
2016 Annual Report for Norwegian Cruiseline Holdings - 40
2016 Annual Report for Norwegian Cruiseline Holdings - 41
2016 Annual Report for Norwegian Cruiseline Holdings - 42
2016 Annual Report for Norwegian Cruiseline Holdings - 43
2016 Annual Report for Norwegian Cruiseline Holdings - 44
2016 Annual Report for Norwegian Cruiseline Holdings - 45
2016 Annual Report for Norwegian Cruiseline Holdings - 46
2016 Annual Report for Norwegian Cruiseline Holdings - 47
2016 Annual Report for Norwegian Cruiseline Holdings - 48
2016 Annual Report for Norwegian Cruiseline Holdings - 49
2016 Annual Report for Norwegian Cruiseline Holdings - 50
2016 Annual Report for Norwegian Cruiseline Holdings - 51
2016 Annual Report for Norwegian Cruiseline Holdings - 52
2016 Annual Report for Norwegian Cruiseline Holdings - 53
2016 Annual Report for Norwegian Cruiseline Holdings - F-1
2016 Annual Report for Norwegian Cruiseline Holdings - F-2
2016 Annual Report for Norwegian Cruiseline Holdings - F-3
2016 Annual Report for Norwegian Cruiseline Holdings - F-4
2016 Annual Report for Norwegian Cruiseline Holdings - F-5
2016 Annual Report for Norwegian Cruiseline Holdings - F-6
2016 Annual Report for Norwegian Cruiseline Holdings - F-7
2016 Annual Report for Norwegian Cruiseline Holdings - F-8
2016 Annual Report for Norwegian Cruiseline Holdings - F-9
2016 Annual Report for Norwegian Cruiseline Holdings - F-10
2016 Annual Report for Norwegian Cruiseline Holdings - F-11
2016 Annual Report for Norwegian Cruiseline Holdings - F-12
2016 Annual Report for Norwegian Cruiseline Holdings - F-13
2016 Annual Report for Norwegian Cruiseline Holdings - F-14
2016 Annual Report for Norwegian Cruiseline Holdings - F-15
2016 Annual Report for Norwegian Cruiseline Holdings - F-16
2016 Annual Report for Norwegian Cruiseline Holdings - F-17
2016 Annual Report for Norwegian Cruiseline Holdings - F-18
2016 Annual Report for Norwegian Cruiseline Holdings - F-19
2016 Annual Report for Norwegian Cruiseline Holdings - F-20
2016 Annual Report for Norwegian Cruiseline Holdings - F-21
2016 Annual Report for Norwegian Cruiseline Holdings - F-22
2016 Annual Report for Norwegian Cruiseline Holdings - F-23
2016 Annual Report for Norwegian Cruiseline Holdings - F-24
2016 Annual Report for Norwegian Cruiseline Holdings - F-25
2016 Annual Report for Norwegian Cruiseline Holdings - F-26
2016 Annual Report for Norwegian Cruiseline Holdings - F-27
2016 Annual Report for Norwegian Cruiseline Holdings - F-28
2016 Annual Report for Norwegian Cruiseline Holdings - F-29
2016 Annual Report for Norwegian Cruiseline Holdings - F-30
2016 Annual Report for Norwegian Cruiseline Holdings - F-31
2016 Annual Report for Norwegian Cruiseline Holdings - F-32
2016 Annual Report for Norwegian Cruiseline Holdings - F-33
2016 Annual Report for Norwegian Cruiseline Holdings - F-34
2016 Annual Report for Norwegian Cruiseline Holdings - F-35
2016 Annual Report for Norwegian Cruiseline Holdings - F-36
2016 Annual Report for Norwegian Cruiseline Holdings - F-37
2016 Annual Report for Norwegian Cruiseline Holdings - Cover3
2016 Annual Report for Norwegian Cruiseline Holdings - Cover4
http://www.nxtbook.com/nxtbooks/ncl/japanesefleetbrochure_20192022
http://www.nxtbook.com/nxtbooks/ncl/italianfleetbrochure_20192021
http://www.nxtbook.com/nxtbooks/ncl/europecruisingguide2021_asia
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http://www.nxtbook.com/nxtbooks/ncl/europecruisingguide2021_apac
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http://www.nxtbook.com/nxtbooks/ncl/deckbydeck_20182019
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http://www.nxtbook.com/nxtbooks/ncl/europecruisingguide1920_aunz
http://www.nxtbook.com/nxtbooks/ncl/fleetIT_1820
http://www.nxtbook.com/nxtbooks/ncl/thehavenus_2018
http://www.nxtbook.com/nxtbooks/ncl/norwegianbliss18
http://www.nxtbook.com/nxtbooks/ncl/fleetsp_18
http://www.nxtbook.com/nxtbooks/ncl/alaskacruisingguide_2019
http://www.nxtbook.com/nxtbooks/ncl/worldwidecruisingguide_2018-2020_aunz
http://www.nxtbook.com/nxtbooks/ncl/uknewitineraryleafletuk_20192020
http://www.nxtbook.com/nxtbooks/ncl/ce_dach
http://www.nxtbook.com/nxtbooks/ncl/worldwidecruisingguide_2018-2020_mea
http://www.nxtbook.com/nxtbooks/ncl/worldwidecruisingguide_2018-2020
http://www.nxtbook.com/nxtbooks/ncl/worldwidecruisingguide_2018-2020_ce
http://www.nxtbook.com/nxtbooks/ncl/worldwidecruisingguide_2018-2020_uk
http://www.nxtbook.com/nxtbooks/ncl/alaskacruisingguide_2018-2019
http://www.nxtbook.com/nxtbooks/ncl/stewardshipreport_2017
http://www.nxtbook.com/nxtbooks/ncl/annualreport_2017
http://www.nxtbook.com/nxtbooks/ncl/europecruisingguide1819_aunz
http://www.nxtbook.com/nxtbooks/ncl/charters18_latam
http://www.nxtbook.com/nxtbooks/ncl/cubabahamas1719_latam
http://www.nxtbook.com/nxtbooks/ncl/norwegianbliss_latam
http://www.nxtbook.com/nxtbooks/ncl/hawaiicruisingguide_2018-2021
http://www.nxtbook.com/nxtbooks/ncl/thehaven2018_latam
http://www.nxtbook.com/nxtbooks/ncl/worldwidecruisingguide_2017-2019sp
http://www.nxtbook.com/nxtbooks/ncl/worldwidecruisingguide_2018-2019
http://www.nxtbook.com/nxtbooks/ncl/norwegianjewel_201819aunzcruise
http://www.nxtbook.com/nxtbooks/ncl/worldwidecruisingguide_2018-2019_aunz
http://www.nxtbook.com/nxtbooks/ncl/thehaven2018_de
http://www.nxtbook.com/nxtbooks/ncl/thehaven2018_es
http://www.nxtbook.com/nxtbooks/ncl/worldwidecruisingguide_2017-2019_es
http://www.nxtbook.com/nxtbooks/ncl/worldwidecruisingguide_2017-2019_it
http://www.nxtbook.com/nxtbooks/ncl/bestofalaska_asia2017
http://www.nxtbook.com/nxtbooks/ncl/worldwidecruisingguide_2017-2019_fr
http://www.nxtbook.com/nxtbooks/ncl/norwegianbliss_aunz
http://www.nxtbook.com/nxtbooks/ncl/thehaven2017_aunz
http://www.nxtbook.com/nxtbooks/ncl/thehaven2017
http://www.nxtbook.com/nxtbooks/ncl/norwegianbliss
http://www.nxtbook.com/nxtbooks/ncl/deckbydeckasia_2017
http://www.nxtbook.com/nxtbooks/ncl/carribbeancruisingguide_2017-2019
http://www.nxtbook.com/nxtbooks/ncl/europecruisingguide_2017-2019
http://www.nxtbook.com/nxtbooks/ncl/nedeparturescruisingguide_2017-2019
http://www.nxtbook.com/nxtbooks/ncl/asiaaunzcruisingguide_2017-2019
http://www.nxtbook.com/nxtbooks/ncl/hawaiicruisingguide_2017-2019
http://www.nxtbook.com/nxtbooks/ncl/alaskacruisingguide_2017-2019
http://www.nxtbook.com/nxtbooks/ncl/southamericacruisingguide_2017-2019
http://www.nxtbook.com/nxtbooks/ncl/pcmrtrcruisingguide_2017-2019
http://www.nxtbook.com/nxtbooks/ncl/bestofalaska2017
http://www.nxtbook.com/nxtbooks/ncl/bestofeurope2017
http://www.nxtbook.com/nxtbooks/ncl/environmentalreport_2016v2
http://www.nxtbook.com/nxtbooks/ncl/environmentalreport_2016
http://www.nxtbook.com/nxtbooks/ncl/worldwidecruisingguide_2017-2019
http://www.nxtbook.com/nxtbooks/ncl/worldwidecruisingguide_2017-2019_ge
http://www.nxtbook.com/nxtbooks/ncl/norwegianjewel_201718aunzcruise
http://www.nxtbook.com/nxtbooks/ncl/annualreport_2016
http://www.nxtbook.com/nxtbooks/ncl/worldwidecruises_allinclusive_2017-2019_uk
http://www.nxtbook.com/nxtbooks/ncl/worldwidecruises_allinclusive_2017-2019_ce
http://www.nxtbook.com/nxtbooks/ncl/bestofcaribbeanandbahamas2017
http://www.nxtbook.com/nxtbooks/ncl/worldwidecruisingguide_2016-2018_jp
http://www.nxtbook.com/nxtbooks/ncl/hawaiidestination_asia2017
http://www.nxtbook.com/nxtbooks/ncl/hawaiidestination_au2017
http://www.nxtbook.com/nxtbooks/ncl/hawaiidestination_nz2017
http://www.nxtbook.com/nxtbooks/ncl/worldwidecruisingguide_2016-2018
http://www.nxtbook.com/nxtbooks/ncl/worldwidecruisingguide_2016-abril2018sp
http://www.nxtbook.com/nxtbooks/ncl/worldwidecruisingguide_fall2016-spring2018
http://www.nxtbook.com/nxtbooks/ncl/worldwide_cruising_guide_201611-201804_fr
http://www.nxtbook.com/nxtbooks/ncl/worldwidecruisingguide_oct2016-apr2018
http://www.nxtbook.com/nxtbooks/ncl/worldwide_cruising_guide_201611-201804_it
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