2016 Annual Report for Norwegian Cruiseline Holdings - F-12

In April 2015, the FASB issued ASU No. 2015-05 to clarify a customer's accounting for fees paid in a cloud computing arrangement. The
amendments provide guidance to customers about whether a cloud computing arrangement includes a software license or if the arrangement
should be accounted for as a service contract. This guidance will impact the accounting of software licenses but will not change a customer's
accounting for service contracts. The guidance will be effective for annual periods, including interim periods within those annual periods,
beginning after December 15, 2015. We have adopted this guidance and there has not been an impact to our consolidated financial statements.
In May 2014, the FASB issued ASU No. 2014-09 which requires entities to recognize revenue through the application of a five-step model,
including identification of the contract, identification of the performance obligations, determination of the transaction price, allocation of the
transaction price to the performance obligation and recognition of revenue as the entity satisfies the performance obligations. Entities have the
option of using either a full retrospective or a modified approach to adopt the guidance. In August 2015, the FASB issued ASU No. 2015-14
deferring the effective date for one year. We can elect to adopt the provisions of ASU No. 2014-09 for annual periods beginning after December
15, 2017 including interim periods within that reporting period or we can elect to early adopt the guidance as of the original effective date. We
expect to adopt a modified retrospective application for annual periods beginning after December 15, 2017. We have initiated an assessment of
our systems, data and processes related to the implementation of this guidance. This assessment is expected to be completed during 2017.
Additionally, we are currently evaluating our performance obligations and believe that our application of the guidance will not result in a material
change to our revenue recognition.
3.

Goodwill and Intangible Assets
Goodwill and tradenames are not subject to amortization. As of December 31, 2016 and 2015 the carrying values were $1.4 billion for goodwill
and $0.8 billion for tradenames.
The gross carrying amounts of intangible assets included within other long-term assets, the related accumulated amortization, the net carrying
amounts and the weighted-average amortization periods of the Company's intangible assets are listed in the following tables (in thousands, except
amortization period):
December 31, 2016
Gross Carrying
Amount

Customer relationship
Licenses
Non-compete agreements
Total intangible assets subject to amortization
License (Indefinite-lived)

$
$
$

120,000
3,368
660
124,028
4,427

Accumulated
Amortization

$

Net Carrying
Amount

(36,593) $
(807)
(495)
(37,895) $
- $

$
$

WeightedAverage
Amortization
Period (Years)

83,407
2,561
165
86,133
-

6.0
5.6
1.0

December 31, 2015
Gross Carrying
Amount

Customer relationship
Backlog
Licenses
Total intangible assets subject to amortization
License (Indefinite-lived)

$
$
$

120,000
70,000
3,368
193,368
4,427

Accumulated
Amortization

$

(15,527) $
(70,000)
(208)
(85,735) $
- $

$
$

WeightedAverage
Amortization
Period (Years)

Net Carrying
Amount

104,473
-
3,160
107,633
-

6.0
1.0
5.6

The aggregate amortization expense is as follows (in thousands):
2016

Amortization expense

$

Year Ended December 31,
2015

22,160

$

73,207

$

2014

12,528

The following table sets forth the Company's estimated aggregate amortization expense for each of the five years below (in thousands):
Amortization
Expense

Year ended December 31,

2017
2018
2019
2020
2021

$

F-12

31,067
26,163
18,489
9,906
75



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/italianfleetbrochure_20192021
http://www.nxtbook.com/nxtbooks/ncl/europecruisingguide2021_asia
http://www.nxtbook.com/nxtbooks/ncl/asiasouthpacificcruisingguide2019-2021
http://www.nxtbook.com/nxtbooks/ncl/europecruisingguide2021_apac
http://www.nxtbook.com/nxtbooks/ncl/asiaaunzcruisingguide_2019-2021
http://www.nxtbook.com/nxtbooks/ncl/hebrew_israeli_fleetbrochure_20192021
http://www.nxtbook.com/nxtbooks/ncl/thehaven2019_japanese
http://www.nxtbook.com/nxtbooks/ncl/meafleetbrochure_20192021
http://www.nxtbook.com/nxtbooks/ncl/worldwidecruisingguide_2019-2022_asia
http://www.nxtbook.com/nxtbooks/ncl/alaskacruisingguide_japanese_20192021
http://www.nxtbook.com/nxtbooks/ncl/thehaven2019_asia
http://www.nxtbook.com/nxtbooks/ncl/charters_meetings_incentives_2019
http://www.nxtbook.com/nxtbooks/ncl/aunzfleetbrochure_20192021
http://www.nxtbook.com/nxtbooks/ncl/alaskacruisingguide_asia_20192021
http://www.nxtbook.com/nxtbooks/ncl/fleetsp_1921
http://www.nxtbook.com/nxtbooks/ncl/norwegian_cruisenews0619
http://www.nxtbook.com/nxtbooks/ncl/ukfleetbrochure_20192021
http://www.nxtbook.com/nxtbooks/ncl/alaskacruisingguide_aunz_20192021
http://www.nxtbook.com/nxtbooks/ncl/kreuzfahrten_weltweit_1921
http://www.nxtbook.com/nxtbooks/ncl/annualreport_2018
http://www.nxtbook.com/nxtbooks/ncl/stewardshipreport_2018
http://www.nxtbook.com/nxtbooks/ncl/worldwidecruisingguide_2019-2021_eu
http://www.nxtbook.com/nxtbooks/ncl/thehaven2019_mea
http://www.nxtbook.com/nxtbooks/ncl/ncl_tradestarterpack
http://www.nxtbook.com/nxtbooks/ncl/europecruisingguide1920_mea
http://www.nxtbook.com/nxtbooks/ncl/hawaiicruisingguide_2019-2022
http://www.nxtbook.com/nxtbooks/ncl/asiaaunzcruisingguide_2019-2020
http://www.nxtbook.com/nxtbooks/ncl/worldwidecruisingguide_2019-2020
http://www.nxtbook.com/nxtbooks/ncl/deckbydeck_20182019
http://www.nxtbook.com/nxtbooks/ncl/worldwidecruisingguide_2019-2020sp
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
http://www.nxtbook.com/nxtbooks/ncl/worldwide_cruising_guide_201611-201804_sp
http://www.nxtbook.com/nxtbooks/ncl/worldwide_cruising_guide_201611-201804_no
http://www.nxtbook.com/nxtbooks/ncl/worldwide_cruising_guide_201611-201804_ce
http://www.nxtbook.com/nxtbooks/ncl/norwegian_jewel_201609
http://www.nxtbook.com/nxtbooks/ncl/worldwide_cruising_guide_201611-201804_de
http://www.nxtbook.com/nxtbooks/ncl/worldwide_cruising_guide_201611-201804_uk
http://www.nxtbook.com/nxtbooks/ncl/fleet_brochure_15-17_jp
http://www.nxtbook.com/nxtbooks/ncl/worldwide_cruising_guide_2016summer2017
http://www.nxtbook.com/nxtbooks/ncl/fleet_brochure_16-17_destinations
http://www.nxtbook.com/nxtbooks/ncl/sun_no_brasil2016
http://www.nxtbook.com/nxtbooks/ncl/norwegian_jewel
http://www.nxtbook.com/nxtbooks/ncl/fleet_brochure_16-17_aus
http://www.nxtbook.com/nxtbooks/ncl/fleet_brochure_15-17_2edition
http://www.nxtbook.com/nxtbooks/ncl/casino_karina
http://www.nxtbook.com/nxtbooks/ncl/casino_charles
http://www.nxtbook.com/nxtbooks/ncl/fleet_brochure_15-17_sp
http://www.nxtbook.com/nxtbooks/ncl/fleet_brochure_15-17
http://www.nxtbook.com/nxtbooks/ncl/escape2015fall
http://www.nxtbook.com/nxtbooks/ncl/hawaii1517
http://www.nxtbook.com/nxtbooks/ncl/northeast1416
http://www.nxtbook.com/nxtbooks/ncl/caribbean1416
http://www.nxtbook.com/nxtbooks/ncl/fleet_brochure_14-16_sp
http://www.nxtbook.com/nxtbooks/ncl/escape2015
http://www.nxtbook.com/nxtbooks/ncl/alaska2015
http://www.nxtbook.com/nxtbooks/ncl/deckbydeck_1415
http://www.nxtbook.com/nxtbooks/ncl/fleet_brochure_14-16
http://www.nxtbook.com/nxtbooks/ncl/alaska14
http://www.nxtbook.com/nxtbooks/ncl/northeast1315
http://www.nxtbook.com/nxtbooks/ncl/hawaii1316
http://www.nxtbook.com/nxtbooks/ncl/europe1315
http://www.nxtbook.com/nxtbooks/ncl/bigships13-15
http://www.nxtbook.com/nxtbooks/ncl/deckbydeck_2013
http://www.nxtbook.com/nxtbooks/ncl/fleet_brochure_13-15
http://www.nxtbook.com/nxtbooks/ncl/getaway_miami
http://www.nxtbook.com/nxtbooks/ncl/breakaway_201210
http://www.nxtbook.com/nxtbooks/ncl/hawaii
http://www.nxtbook.com/nxtbooks/ncl/cruisevacations1213-sp
http://www.nxtbook.com/nxtbooks/ncl/caribbean
http://www.nxtbook.com/nxtbooks/ncl/fleet_brochure
http://www.nxtbook.com/nxtbooks/ncl/northeastdepartures12-14
http://www.nxtbook.com/nxtbooks/ncl/alaska
http://www.nxtbook.com/nxtbooks/ncl/breakaways_chaptertwo_201205
http://www.nxtbook.com/nxtbooks/ncl/breakaways_chapterone_201205
http://www.nxtbook.com/nxtbooks/ncl/europe1214
http://www.nxtbook.com/nxtbooks/ncl/latitudes
http://www.nxtbook.com/nxtbooks/ncl/thehaven
http://www.nxtbook.com/nxtbooks/ncl/fleet_brochure_2011-13
http://www.nxtbook.com/nxtbooks/ncl/caribbean11-13
http://www.nxtbook.com/nxtbooks/ncl/cruisevacations1112-sp_2
http://www.nxtbook.com/nxtbooks/ncl/meetingsincentives
http://www.nxtbookMEDIA.com