ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Republic of Liberia | 98-0081645 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Large accelerated filer x | Accelerated filer o | Non-accelerated filer o | Smaller reporting company o | |||
Emerging growth company o |
Page | |
Quarter Ended March 31, | |||||||
2019 | 2018 | ||||||
Passenger ticket revenues | $ | 1,709,984 | $ | 1,425,644 | |||
Onboard and other revenues | 729,783 | 602,112 | |||||
Total revenues | 2,439,767 | 2,027,756 | |||||
Cruise operating expenses: | |||||||
Commissions, transportation and other | 363,155 | 290,609 | |||||
Onboard and other | 135,170 | 99,537 | |||||
Payroll and related | 269,532 | 227,156 | |||||
Food | 139,534 | 119,642 | |||||
Fuel | 160,171 | 160,341 | |||||
Other operating | 346,142 | 278,734 | |||||
Total cruise operating expenses | 1,413,704 | 1,176,019 | |||||
Marketing, selling and administrative expenses | 414,947 | 337,361 | |||||
Depreciation and amortization expenses | 292,285 | 240,230 | |||||
Operating Income | 318,831 | 274,146 | |||||
Other income (expense): | |||||||
Interest income | 9,784 | 7,733 | |||||
Interest expense, net of interest capitalized | (100,415 | ) | (67,878 | ) | |||
Equity investment income | 33,694 | 28,752 | |||||
Other expense | (5,088 | ) | (24,100 | ) | |||
(62,025 | ) | (55,493 | ) | ||||
Net Income | 256,806 | 218,653 | |||||
Less: Net Income attributable to noncontrolling interest | 7,125 | — | |||||
Net Income attributable to Royal Caribbean Cruises Ltd. | $ | 249,681 | $ | 218,653 | |||
Earnings per Share: | |||||||
Basic | $ | 1.19 | $ | 1.03 | |||
Diluted | $ | 1.19 | $ | 1.02 | |||
Weighted-Average Shares Outstanding: | |||||||
Basic | 209,322 | 212,610 | |||||
Diluted | 209,874 | 213,602 | |||||
Comprehensive Income | |||||||
Net Income | $ | 256,806 | $ | 218,653 | |||
Other comprehensive income (loss): | |||||||
Foreign currency translation adjustments | 564 | 1,160 | |||||
Change in defined benefit plans | (653 | ) | 7,760 | ||||
Gain on cash flow derivative hedges | 48,843 | 142,530 | |||||
Total other comprehensive income | 48,754 | 151,450 | |||||
Comprehensive Income | 305,560 | 370,103 | |||||
Less: Comprehensive Income attributable to noncontrolling interest | 7,125 | — | |||||
Comprehensive Income attributable to Royal Caribbean Cruises Ltd. | $ | 298,435 | $ | 370,103 |
Quarter Ended June 30, | |||||||
2018 | 2017 | ||||||
Passenger ticket revenues | $ | 1,672,570 | $ | 1,581,385 | |||
Onboard and other revenues | 665,035 | 613,889 | |||||
Total revenues | 2,337,605 | 2,195,274 | |||||
Cruise operating expenses: | |||||||
Commissions, transportation and other | 358,305 | 340,331 | |||||
Onboard and other | 142,240 | 132,437 | |||||
Payroll and related | 226,315 | 210,362 | |||||
Food | 128,383 | 121,764 | |||||
Fuel | 172,309 | 170,748 | |||||
Other operating | 286,859 | 281,143 | |||||
Total cruise operating expenses | 1,314,411 | 1,256,785 | |||||
Marketing, selling and administrative expenses | 312,923 | 283,855 | |||||
Depreciation and amortization expenses | 253,376 | 234,937 | |||||
Operating Income | 456,895 | 419,697 | |||||
Other income (expense): | |||||||
Interest income | 13,098 | 5,811 | |||||
Interest expense, net of interest capitalized | (81,864 | ) | (76,632 | ) | |||
Equity investment income | 44,311 | 23,359 | |||||
Other income (expense) | 33,855 | (2,709 | ) | ||||
9,400 | (50,171 | ) | |||||
Net Income | $ | 466,295 | $ | 369,526 | |||
Earnings per Share: | |||||||
Basic | $ | 2.20 | $ | 1.72 | |||
Diluted | $ | 2.19 | $ | 1.71 | |||
Weighted-Average Shares Outstanding: | |||||||
Basic | 211,673 | 215,085 | |||||
Diluted | 212,509 | 216,062 | |||||
Comprehensive Income | |||||||
Net Income | $ | 466,295 | $ | 369,526 | |||
Other comprehensive income (loss): | |||||||
Foreign currency translation adjustments | (11,521 | ) | 5,979 | ||||
Change in defined benefit plans | (1,964 | ) | (3,649 | ) | |||
(Loss) gain on cash flow derivative hedges | (68,900 | ) | 128,954 | ||||
Total other comprehensive (loss) income | (82,385 | ) | 131,284 | ||||
Comprehensive Income | $ | 383,910 | $ | 500,810 |
As of | |||||||
March 31, | December 31, | ||||||
2019 | 2018 | ||||||
(unaudited) | |||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 248,197 | $ | 287,852 | |||
Trade and other receivables, net | 374,982 | 324,507 | |||||
Inventories | 157,939 | 153,573 | |||||
Prepaid expenses and other assets | 491,553 | 456,547 | |||||
Derivative financial instruments | 60,451 | 19,565 | |||||
Total current assets | 1,333,122 | 1,242,044 | |||||
Property and equipment, net | 23,641,251 | 23,466,163 | |||||
Operating lease right-of-use assets | 777,551 | — | |||||
Goodwill | 1,378,362 | 1,378,353 | |||||
Other assets | 1,589,763 | 1,611,710 | |||||
Total assets | $ | 28,720,049 | $ | 27,698,270 | |||
Liabilities, Redeemable Noncontrolling Interest and Shareholders’ Equity | |||||||
Current liabilities | |||||||
Current portion of debt | $ | 1,646,324 | $ | 1,646,841 | |||
Commercial paper | 1,112,030 | 775,488 | |||||
Current portion of operating lease liabilities | 88,497 | — | |||||
Accounts payable | 497,180 | 488,212 | |||||
Accrued interest | 120,131 | 74,550 | |||||
Accrued expenses and other liabilities | 823,097 | 899,761 | |||||
Derivative financial instruments | 89,023 | 78,476 | |||||
Customer deposits | 3,729,661 | 3,148,837 | |||||
Total current liabilities | 8,105,943 | 7,112,165 | |||||
Long-term debt | 7,526,330 | 8,355,370 | |||||
Long-term operating lease liabilities | 708,371 | — | |||||
Other long-term liabilities | 560,690 | 583,254 | |||||
Total liabilities | 16,901,334 | 16,050,789 | |||||
Commitments and contingencies (Note 11) | |||||||
Redeemable noncontrolling interest | 549,645 | 542,020 | |||||
Shareholders’ equity | |||||||
Preferred stock ($0.01 par value; 20,000,000 shares authorized; none outstanding) | — | — | |||||
Common stock ($0.01 par value; 500,000,000 shares authorized; 236,380,544 and 235,847,683 shares issued, March 31, 2019 and December 31, 2018, respectively) | 2,364 | 2,358 | |||||
Paid-in capital | 3,432,419 | 3,420,900 | |||||
Retained earnings | 10,366,612 | 10,263,282 | |||||
Accumulated other comprehensive loss | (578,980 | ) | (627,734 | ) | |||
Treasury stock (26,830,765 common shares at cost, at both March 31, 2019 and December 31, 2018) | (1,953,345 | ) | (1,953,345 | ) | |||
Total shareholders’ equity | 11,269,070 | 11,105,461 | |||||
Total liabilities, redeemable noncontrolling interest and shareholders’ equity | $ | 28,720,049 | $ | 27,698,270 |
Six Months Ended June 30, | |||||||
2018 | 2017 | ||||||
Passenger ticket revenues | $ | 3,098,214 | $ | 2,999,608 | |||
Onboard and other revenues | 1,267,147 | 1,204,226 | |||||
Total revenues | 4,365,361 | 4,203,834 | |||||
Cruise operating expenses: | |||||||
Commissions, transportation and other | 648,914 | 650,579 | |||||
Onboard and other | 241,777 | 238,431 | |||||
Payroll and related | 453,471 | 426,097 | |||||
Food | 248,025 | 242,975 | |||||
Fuel | 332,650 | 348,162 | |||||
Other operating | 565,593 | 526,365 | |||||
Total cruise operating expenses | 2,490,430 | 2,432,609 | |||||
Marketing, selling and administrative expenses | 650,284 | 601,320 | |||||
Depreciation and amortization expenses | 493,606 | 470,686 | |||||
Operating Income | 731,041 | 699,219 | |||||
Other income (expense): | |||||||
Interest income | 20,831 | 12,063 | |||||
Interest expense, net of interest capitalized | (149,742 | ) | (156,949 | ) | |||
Equity investment income | 73,063 | 35,239 | |||||
Other income (expense) | 9,755 | (5,320 | ) | ||||
(46,093 | ) | (114,967 | ) | ||||
Net Income | $ | 684,948 | $ | 584,252 | |||
Earnings per Share: | |||||||
Basic | $ | 3.23 | $ | 2.72 | |||
Diluted | $ | 3.21 | $ | 2.71 | |||
Weighted-Average Shares Outstanding: | |||||||
Basic | 212,139 | 214,978 | |||||
Diluted | 213,079 | 215,944 | |||||
Comprehensive Income | |||||||
Net Income | $ | 684,948 | $ | 584,252 | |||
Other comprehensive income (loss): | |||||||
Foreign currency translation adjustments | (10,361 | ) | 8,321 | ||||
Change in defined benefit plans | 5,796 | (4,290 | ) | ||||
Gain on cash flow derivative hedges | 73,630 | 151,415 | |||||
Total other comprehensive income | 69,065 | 155,446 | |||||
Comprehensive Income | $ | 754,013 | $ | 739,698 |
As of | |||||||
June 30, | December 31, | ||||||
2018 | 2017 | ||||||
(unaudited) | |||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 108,998 | $ | 120,112 | |||
Trade and other receivables, net | 355,729 | 318,641 | |||||
Inventories | 121,879 | 111,393 | |||||
Prepaid expenses and other assets | 418,817 | 258,171 | |||||
Derivative financial instruments | 94,473 | 99,320 | |||||
Total current assets | 1,099,896 | 907,637 | |||||
Property and equipment, net | 21,429,719 | 19,735,180 | |||||
Goodwill | 288,418 | 288,512 | |||||
Other assets | 1,239,003 | 1,429,597 | |||||
$ | 24,057,036 | $ | 22,360,926 | ||||
Liabilities and Shareholders’ Equity | |||||||
Current liabilities | |||||||
Current portion of long-term debt | $ | 1,177,626 | $ | 1,188,514 | |||
Accounts payable | 418,616 | 360,113 | |||||
Accrued interest | 61,175 | 47,469 | |||||
Accrued expenses and other liabilities | 751,585 | 903,022 | |||||
Derivative financial instruments | 44,203 | 47,464 | |||||
Customer deposits | 3,049,145 | 2,308,291 | |||||
Total current liabilities | 5,502,350 | 4,854,873 | |||||
Long-term debt | 7,341,463 | 6,350,937 | |||||
Other long-term liabilities | 439,525 | 452,813 | |||||
Commitments and contingencies (Note 7) | |||||||
Shareholders’ equity | |||||||
Preferred stock ($0.01 par value; 20,000,000 shares authorized; none outstanding) | — | — | |||||
Common stock ($0.01 par value; 500,000,000 shares authorized; 235,779,344 and 235,198,901 shares issued, June 30, 2018 and December 31, 2017, respectively) | 2,358 | 2,352 | |||||
Paid-in capital | 3,397,561 | 3,390,117 | |||||
Retained earnings | 9,429,784 | 9,022,405 | |||||
Accumulated other comprehensive loss | (265,200 | ) | (334,265 | ) | |||
Treasury stock (25,293,576 and 21,861,308 common shares at cost, June 30, 2018 and December 31, 2017, respectively) | (1,790,805 | ) | (1,378,306 | ) | |||
Total shareholders’ equity | 10,773,698 | 10,702,303 | |||||
$ | 24,057,036 | $ | 22,360,926 |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Operating Activities | |||||||
Net income | $ | 256,806 | $ | 218,653 | |||
Adjustments: | |||||||
Depreciation and amortization | 292,285 | 240,230 | |||||
Impairment losses | — | 23,343 | |||||
Net deferred income tax expense (benefit) | 2,983 | (1,504 | ) | ||||
Gain on derivative instruments not designated as hedges | (4,780 | ) | (7,810 | ) | |||
Share-based compensation expense | 27,322 | 20,164 | |||||
Equity investment income | (33,694 | ) | (28,752 | ) | |||
Amortization of debt issuance costs | 10,366 | 10,108 | |||||
Changes in operating assets and liabilities: | |||||||
Increase in trade and other receivables, net | (44,382 | ) | (10,181 | ) | |||
(Increase) decrease in inventories | (4,366 | ) | 567 | ||||
Increase in prepaid expenses and other assets | (12,323 | ) | (89,725 | ) | |||
Increase in accounts payable | 8,843 | 110,467 | |||||
Increase in accrued interest | 45,581 | 42,919 | |||||
Decrease in accrued expenses and other liabilities | (68,688 | ) | (109,136 | ) | |||
Increase in customer deposits | 580,735 | 477,878 | |||||
Dividends received from unconsolidated affiliates | 42,435 | 37,918 | |||||
Other, net | (20,669 | ) | (11,017 | ) | |||
Net cash provided by operating activities | 1,078,454 | 924,122 | |||||
Investing Activities | |||||||
Purchases of property and equipment | (470,116 | ) | (1,720,232 | ) | |||
Cash received on settlement of derivative financial instruments | 5,803 | 64,487 | |||||
Cash paid on settlement of derivative financial instruments | (678 | ) | — | ||||
Cash received on loans to unconsolidated affiliates | 11,824 | 13,953 | |||||
Other, net | 2,719 | (3,353 | ) | ||||
Net cash used in investing activities | (450,448 | ) | (1,645,145 | ) | |||
Financing Activities | |||||||
Debt proceeds | 316,810 | 2,544,737 | |||||
Debt issuance costs | (3,675 | ) | (41,344 | ) | |||
Repayments of debt | (1,146,674 | ) | (1,394,222 | ) | |||
Proceeds from issuance of commercial paper notes | 5,039,834 | — | |||||
Repayments of commercial paper notes | (4,711,208 | ) | — | ||||
Purchases of treasury stock | — | (275,038 | ) | ||||
Dividends paid | (146,817 | ) | (127,840 | ) | |||
Proceeds from exercise of common stock options | 241 | 3,863 | |||||
Other, net | (16,192 | ) | 1,697 | ||||
Net cash (used in) provided by financing activities | (667,681 | ) | 711,853 | ||||
Effect of exchange rate changes on cash | 20 | 303 | |||||
Net decrease in cash and cash equivalents | (39,655 | ) | (8,867 | ) | |||
Cash and cash equivalents at beginning of period | 287,852 | 120,112 | |||||
Cash and cash equivalents at end of period | $ | 248,197 | $ | 111,245 | |||
Supplemental Disclosure | |||||||
Cash paid during the period for: | |||||||
Interest, net of amount capitalized | $ | 37,103 | $ | 16,953 |
Six Months Ended June 30, | |||||||
2018 | 2017 | ||||||
Operating Activities | |||||||
Net income | $ | 684,948 | $ | 584,252 | |||
Adjustments: | |||||||
Depreciation and amortization | 493,606 | 470,686 | |||||
Impairment losses | 33,651 | — | |||||
Net deferred income tax (benefit) expense | (893 | ) | 1,084 | ||||
Gain (loss) on derivative instruments not designated as hedges | 29,750 | (34,988 | ) | ||||
Share-based compensation expense | 31,819 | 35,379 | |||||
Equity investment income | (73,063 | ) | (35,239 | ) | |||
Amortization of debt issuance costs | 16,283 | 26,035 | |||||
Gain on sale of property and equipment | — | (30,902 | ) | ||||
Gain on sale of unconsolidated affiliate | (13,680 | ) | — | ||||
Recognition of deferred gain | (21,794 | ) | — | ||||
Changes in operating assets and liabilities: | |||||||
Decrease in trade and other receivables, net | 16,162 | 33,045 | |||||
(Increase) decrease in inventories | (10,485 | ) | 4,682 | ||||
Increase in prepaid expenses and other assets | (152,626 | ) | (36,931 | ) | |||
Increase in accounts payable | 58,842 | 69,634 | |||||
Increase in accrued interest | 13,706 | 5,486 | |||||
Decrease in accrued expenses and other liabilities | (71,254 | ) | (47,189 | ) | |||
Increase in customer deposits | 740,420 | 563,546 | |||||
Dividends received from unconsolidated affiliates | 158,942 | 57,402 | |||||
Other, net | (2,748 | ) | (6,702 | ) | |||
Net cash provided by operating activities | 1,931,586 | 1,659,280 | |||||
Investing Activities | |||||||
Purchases of property and equipment | (2,212,880 | ) | (271,541 | ) | |||
Cash received on settlement of derivative financial instruments | 69,195 | 34,866 | |||||
Cash paid on settlement of derivative financial instruments | (34,898 | ) | — | ||||
Cash received on loans to unconsolidated affiliates | 37,607 | 23,487 | |||||
Proceeds from the sale of property and equipment | — | 230,000 | |||||
Proceeds from the sale of unconsolidated affiliate | 13,215 | — | |||||
Other, net | (13,220 | ) | (9,144 | ) | |||
Net cash (used in) provided by investing activities | (2,140,981 | ) | 7,668 | ||||
Financing Activities | |||||||
Debt proceeds | 3,929,322 | 2,236,000 | |||||
Debt issuance costs | (48,535 | ) | (14,575 | ) | |||
Repayments of debt | (3,029,944 | ) | (3,689,890 | ) | |||
Purchases of treasury stock | (369,476 | ) | — | ||||
Dividends paid | (254,645 | ) | (206,039 | ) | |||
Proceeds from exercise of common stock options | 4,062 | 2,385 | |||||
Other, net | (16,827 | ) | 2,626 | ||||
Net cash provided by (used in) financing activities | 213,957 | (1,669,493 | ) | ||||
Effect of exchange rate changes on cash | (15,676 | ) | 419 | ||||
Net decrease in cash and cash equivalents | (11,114 | ) | (2,126 | ) | |||
Cash and cash equivalents at beginning of period | 120,112 | 132,603 | |||||
Cash and cash equivalents at end of period | $ | 108,998 | $ | 130,477 | |||
Supplemental Disclosure | |||||||
Cash paid during the period for: | |||||||
Interest, net of amount capitalized | $ | 114,061 | $ | 125,007 |
Common Stock | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Shareholders' Equity | ||||||||||||||||||
Balance at January 1, 2019 | $ | 2,358 | $ | 3,420,900 | $ | 10,263,282 | $ | (627,734 | ) | $ | (1,953,345 | ) | $ | 11,105,461 | |||||||||
Activity related to employee stock plans | 6 | 11,519 | — | — | — | 11,525 | |||||||||||||||||
Common stock dividends, $0.70 per share | — | — | (146,351 | ) | — | — | (146,351 | ) | |||||||||||||||
Changes related to cash flow derivative hedges | — | — | — | 48,843 | — | 48,843 | |||||||||||||||||
Change in defined benefit plans | — | — | — | (653 | ) | — | (653 | ) | |||||||||||||||
Foreign currency translation adjustments | — | — | — | 564 | — | 564 | |||||||||||||||||
Net Income attributable to Royal Caribbean Cruises Ltd. | — | — | 249,681 | — | — | 249,681 | |||||||||||||||||
Balance at March 31, 2019 | $ | 2,364 | $ | 3,432,419 | $ | 10,366,612 | $ | (578,980 | ) | $ | (1,953,345 | ) | $ | 11,269,070 |
Common Stock | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Shareholders' Equity | ||||||||||||||||||
Balance at January 1, 2018 | $ | 2,352 | $ | 3,390,117 | $ | 9,022,405 | $ | (334,265 | ) | $ | (1,378,306 | ) | $ | 10,702,303 | |||||||||
Cumulative effect of accounting changes | — | — | (23,476 | ) | — | — | (23,476 | ) | |||||||||||||||
Activity related to employee stock plans | 5 | (62 | ) | — | — | — | (57 | ) | |||||||||||||||
Common stock dividends, $0.60 per share | — | — | (127,038 | ) | — | — | (127,038 | ) | |||||||||||||||
Changes related to cash flow derivative hedges | — | — | — | 142,530 | — | 142,530 | |||||||||||||||||
Change in defined benefit plans | — | — | — | 7,760 | — | 7,760 | |||||||||||||||||
Foreign currency translation adjustments | — | — | — | 1,160 | — | 1,160 | |||||||||||||||||
Purchases of treasury stock | — | — | — | — | (275,039 | ) | (275,039 | ) | |||||||||||||||
Net Income attributable to Royal Caribbean Cruises Ltd. | — | — | 218,653 | — | — | 218,653 | |||||||||||||||||
Balance at March 31, 2018 | $ | 2,357 | $ | 3,390,055 | $ | 9,090,544 | $ | (182,815 | ) | $ | (1,653,345 | ) | $ | 10,646,796 |
March 31, 2019 | ||||||||||||
Gross Carrying Value | Accumulated Amortization | Net Carrying Value | ||||||||||
Finite-life intangible assets: | ||||||||||||
Customer relationships | $ | 97,400 | $ | 2,706 | $ | 94,694 | ||||||
Galapagos operating license | 47,669 | 4,553 | 43,116 | |||||||||
Other finite-life intangible assets | 11,560 | 2,408 | 9,152 | |||||||||
Total finite-life intangible assets | 156,629 | 9,667 | 146,962 | |||||||||
Indefinite-life intangible assets | 351,725 | — | 351,725 | |||||||||
Total intangible assets, net | $ | 508,354 | $ | 9,667 | $ | 498,687 |
December 31, 2018 | ||||||||||||
Gross Carrying Value | Accumulated Amortization | Net Carrying Value | ||||||||||
Finite-life intangible assets: | ||||||||||||
Customer relationships | $ | 97,400 | $ | 1,082 | $ | 96,318 | ||||||
Galapagos operating license | 47,669 | 4,206 | 43,463 | |||||||||
Other finite-life intangible assets | 11,560 | 963 | 10,597 | |||||||||
Total finite-life intangible assets | 156,629 | 6,251 | 150,378 | |||||||||
Indefinite-life intangible assets | 351,725 | — | 351,725 | |||||||||
Total intangible assets, net | $ | 508,354 | $ | 6,251 | $ | 502,103 |
Year | |||
Remainder of 2019 | $ | 10,469 | |
2020 | $ | 12,995 | |
2021 | $ | 8,179 | |
2022 | $ | 8,179 | |
2023 | $ | 8,179 | |
2024 | $ | 8,179 |
Quarter Ended June 30, | Six Months Ended June 30, | Quarter Ended March 31, | ||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2019 | 2018 | |||||||||||||||||
Revenues by itinerary | ||||||||||||||||||||||
North America(1) | $ | 1,264,167 | $ | 1,246,103 | $ | 2,611,427 | $ | 2,598,272 | $ | 1,681,058 | $ | 1,347,260 | ||||||||||
Asia/Pacific(2) | 283,198 | 300,891 | 816,177 | 826,747 | 490,075 | 532,979 | ||||||||||||||||
Europe(3) | 597,399 | 467,829 | 597,399 | 467,829 | 7,982 | — | ||||||||||||||||
Other regions | 101,631 | 94,719 | 178,816 | 159,951 | 162,505 | 77,185 | ||||||||||||||||
Total revenues by itinerary | 2,246,395 | 2,109,542 | 4,203,819 | 4,052,799 | 2,341,620 | 1,957,424 | ||||||||||||||||
Other revenues | 91,210 | 85,732 | 161,542 | 151,035 | 98,147 | 70,332 | ||||||||||||||||
Total revenues | $ | 2,337,605 | $ | 2,195,274 | $ | 4,365,361 | $ | 4,203,834 | $ | 2,439,767 | $ | 2,027,756 |
(1) | Includes the United States, Canada, Mexico and the Caribbean. |
(2) | Includes Southeast Asia (e.g., Singapore, Thailand and the Philippines), East Asia (e.g., China and Japan), South Asia (e.g., India and Pakistan) and Oceania (e.g., Australia and Fiji Islands) regions. |
(3) | Includes European countries (e.g., Nordics, Germany, France, Italy, Spain and the United Kingdom). |
(4) | Includes seasonality impacted itineraries primarily in South and Latin American countries. |
(5) | Includes revenues primarily related to cancellation fees, vacation protection insurance, |
Quarter Ended March 31, | |||||
2019 | 2018 | ||||
Passenger ticket revenues: | |||||
United States | 66 | % | 60 | % | |
Australia | 8 | % | 13 | % | |
All other countries (1) | 26 | % | 27 | % |
Quarter Ended June 30, | |||||
2018 | 2017 | ||||
Passenger ticket revenues: | |||||
United States | 63 | % | 63 | % | |
United Kingdom | 10 | % | 9 | % | |
All other countries (1) | 27 | % | 28 | % |
Six Months Ended June 30, | |||||
2018 | 2017 | ||||
Passenger ticket revenues: | |||||
United States | 62 | % | 62 | % | |
All other countries (1) | 38 | % | 38 | % |
(1) | No other individual country's revenue exceeded 10% for the quarters ended March 31, 2019 and |
Quarter Ended March 31, | |||||||
2019 | 2018 | ||||||
Net Income attributable to Royal Caribbean Cruises Ltd. for basic and diluted earnings per share | $ | 249,681 | $ | 218,653 | |||
Weighted-average common shares outstanding | 209,322 | 212,610 | |||||
Dilutive effect of stock-based awards | 552 | 992 | |||||
Diluted weighted-average shares outstanding | 209,874 | 213,602 | |||||
Basic earnings per share | $ | 1.19 | $ | 1.03 | |||
Diluted earnings per share | $ | 1.19 | $ | 1.02 |
Quarter Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net income for basic and diluted earnings per share | $ | 466,295 | $ | 369,526 | $ | 684,948 | $ | 584,252 | |||||||
Weighted-average common shares outstanding | 211,673 | 215,085 | 212,139 | 214,978 | |||||||||||
Dilutive effect of stock-based awards and stock options | 836 | 977 | 940 | 966 | |||||||||||
Diluted weighted-average shares outstanding | 212,509 | 216,062 | 213,079 | 215,944 | |||||||||||
Basic earnings per share | $ | 2.20 | $ | 1.72 | $ | 3.23 | $ | 2.72 | |||||||
Diluted earnings per share | $ | 2.19 | $ | 1.71 | $ | 3.21 | $ | 2.71 |
Quarter Ended March 31, | ||||||||||||||||||||||||
Quarter Ended June 30, 2018 | Quarter Ended June 30, 2017 | Six Months Ended June 30, 2018 | Six Months Ended June 30, 2017 | 2019 | 2018 | |||||||||||||||||||
Share of equity income from investments | $ | 44,311 | $ | 23,359 | $ | 73,063 | $ | 35,239 | $ | 33,694 | $ | 28,752 | ||||||||||||
Dividends received | $ | 121,024 | $ | 29,405 | $ | 158,942 | $ | 57,402 | ||||||||||||||||
Dividends received (1) | $ | 42,435 | $ | 37,918 |
(1) | For the quarter ended March 31, 2019, amount includes a €50.0 million dividend from TUI Cruises, net of tax withholdings. |
As of June 30, 2018 | As of December 31, 2017 | As of March 31, 2019 | As of December 31, 2018 | |||||||||||||
Total notes receivable due from equity investments | $ | 277,635 | $ | 314,323 | $ | 193,351 | $ | 201,979 | ||||||||
Less-current portion(1) | 89,632 | 38,658 | 19,681 | 19,075 | ||||||||||||
Long-term portion(2) | $ | 188,003 | $ | 275,665 | $ | 173,670 | $ | 182,904 |
(1) | Included within Trade and other receivables, net in our consolidated balance sheets. |
(2) | Included within Other assets in our consolidated balance sheets. |
Quarter Ended March 31, | ||||||||||||||||||||||||
Quarter Ended June 30, 2018 | Quarter Ended June 30, 2017 | Six Months Ended June 30, 2018 | Six Months Ended June 30, 2017 | 2019 | 2018 | |||||||||||||||||||
Revenues | $ | 14,157 | $ | 13,318 | $ | 28,230 | $ | 25,933 | $ | 11,882 | $ | 14,073 | ||||||||||||
Expenses | $ | 3,270 | $ | 4,020 | $ | 6,908 | $ | 7,733 | $ | 974 | $ | 3,638 |
As of March 31, 2019 | |||
Lease assets: | |||
Finance lease right-of-use assets, net: | |||
Property and equipment, gross | $ | 246,682 | |
Accumulated depreciation | (39,882 | ) | |
Property and equipment, net | 206,800 | ||
Operating lease right-of-use assets | 777,551 | ||
Total lease assets | $ | 984,351 | |
Lease liabilities: | |||
Finance lease liabilities: | |||
Current portion of debt | $ | 33,068 | |
Long-term debt | 94,127 | ||
Total finance lease liabilities | 127,195 | ||
Operating lease liabilities: | |||
Current portion of operating lease liabilities | 88,497 | ||
Long-term operating lease liabilities | 708,371 | ||
Total operating lease liabilities | 796,868 | ||
Total lease liabilities | $ | 924,063 |
Consolidated Statement of Comprehensive Income (Loss) Classification | Quarter Ended March 31, 2019 | |||
Lease costs: | ||||
Operating lease costs | Commission, transportation and other | $ | 19,056 | |
Operating lease costs | Other operating expenses | 6,931 | ||
Operating lease costs | Marketing, selling and administrative expenses | 5,679 | ||
Financial lease costs: | ||||
Amortization of right-of-use-assets | Depreciation and amortization expenses | 3,195 | ||
Interest on lease liabilities | Interest expense, net of interest capitalized | 596 | ||
Total lease costs | $ | 35,457 |
As of March 31, 2019 | ||
Weighted average of the remaining lease term | ||
Operating leases | 10.8 years | |
Finance leases | 3.6 years | |
Weighted average discount rate | ||
Operating leases | 4.6 | % |
Finance leases | 3.8 | % |
Quarter Ended March 31, 2019 | |||
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ | 31,981 | |
Operating cash flows from finance leases | $ | 596 | |
Financing cash flows from finance leases | $ | 3,606 |
Year | Operating Leases | Finance Leases | |||||
Remainder of 2019 | $ | 95,927 | $ | 32,468 | |||
2020 | 126,959 | 36,334 | |||||
2021 | 114,278 | 39,139 | |||||
2022 | 107,885 | 16,097 | |||||
2023 | 105,846 | 5,089 | |||||
Thereafter | 522,270 | 10,413 | |||||
Total lease payments | 1,073,165 | 139,540 | |||||
Less: Interest | (276,297 | ) | (12,345 | ) | |||
Present value of lease liabilities | $ | 796,868 | $ | 127,195 |
Year | |||
2019 | $ | 67,682 | |
2020 | 64,237 | ||
2021 | 56,142 | ||
2022 | 52,759 | ||
2023 | 52,522 | ||
Thereafter | 383,974 | ||
$ | 677,316 |
Beginning balance January 1, 2019 | $ | 542,020 | |
Net income attributable to noncontrolling interest, including the contractual accretion of the put options | 7,125 | ||
Other | 500 | ||
Ending balance March 31, 2019 | $ | 549,645 |
Accumulated Other Comprehensive Income (Loss) for the Six Months Ended June 30, 2018 | Accumulated Other Comprehensive Income (Loss) for the Six Months Ended June 30, 2017 | Accumulated Other Comprehensive Income (Loss) for the Quarter Ended March 31, 2019 | Accumulated Other Comprehensive Income (Loss) for the Quarter Ended March 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes related to cash flow derivative hedges | Changes in defined benefit plans | Foreign currency translation adjustments | Accumulated other comprehensive loss | Changes related to cash flow derivative hedges | Changes in defined benefit plans | Foreign currency translation adjustments | Accumulated other comprehensive loss | Changes related to cash flow derivative hedges | Changes in defined benefit plans | Foreign currency translation adjustments | Accumulated other comprehensive loss | Changes related to cash flow derivative hedges | Changes in defined benefit plans | Foreign currency translation adjustments | Accumulated other comprehensive loss | |||||||||||||||||||||||||||||||||||||||||||||||
Accumulated comprehensive loss at beginning of the year | $ | (250,355 | ) | $ | (33,666 | ) | $ | (50,244 | ) | $ | (334,265 | ) | $ | (820,850 | ) | $ | (28,083 | ) | $ | (67,551 | ) | $ | (916,484 | ) | $ | (537,216 | ) | $ | (26,023 | ) | $ | (64,495 | ) | $ | (627,734 | ) | $ | (250,355 | ) | $ | (33,666 | ) | $ | (50,244 | ) | $ | (334,265 | ) | ||||||||||||||
Other comprehensive income (loss) before reclassifications | 69,932 | 5,082 | (10,361 | ) | 64,653 | 43,408 | (4,847 | ) | 8,321 | 46,882 | 61,565 | (841 | ) | 564 | 61,288 | 127,616 | 7,417 | 1,160 | 136,193 | |||||||||||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | 3,698 | 714 | — | 4,412 | 108,007 | 557 | — | 108,564 | (12,722 | ) | 188 | — | (12,534 | ) | 14,914 | 343 | — | 15,257 | ||||||||||||||||||||||||||||||||||||||||||||
Net current-period other comprehensive income (loss) | 73,630 | 5,796 | (10,361 | ) | 69,065 | 151,415 | (4,290 | ) | 8,321 | 155,446 | 48,843 | (653 | ) | 564 | 48,754 | 142,530 | 7,760 | 1,160 | 151,450 | |||||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | (176,725 | ) | $ | (27,870 | ) | $ | (60,605 | ) | $ | (265,200 | ) | $ | (669,435 | ) | $ | (32,373 | ) | $ | (59,230 | ) | $ | (761,038 | ) | $ | (488,373 | ) | $ | (26,676 | ) | $ | (63,931 | ) | $ | (578,980 | ) | $ | (107,825 | ) | $ | (25,906 | ) | $ | (49,084 | ) | $ | (182,815 | ) |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | |||||||||||||||||||||||||||
Details About Accumulated Other Comprehensive Income (Loss) Components | Quarter Ended June 30, 2018 | Quarter Ended June 30, 2017 | Six Months Ended June 30, 2018 | Six Months Ended June 30, 2017 | Affected Line Item in Statements of Comprehensive Income (Loss) | Quarter Ended March 31, 2019 | Quarter Ended March 31, 2018 | Affected Line Item in Statements of Comprehensive Income (Loss) | ||||||||||||||||||||
Gain (loss) on cash flow derivative hedges: | ||||||||||||||||||||||||||||
Interest rate swaps | $ | (2,138 | ) | $ | (7,863 | ) | $ | (8,976 | ) | $ | (16,720 | ) | Interest expense, net of interest capitalized | $ | (391 | ) | $ | (6,838 | ) | Interest expense, net of interest capitalized | ||||||||
Foreign currency forward contracts | (3,156 | ) | (2,710 | ) | (6,468 | ) | (5,420 | ) | Depreciation and amortization expenses | (3,334 | ) | (3,312 | ) | Depreciation and amortization expenses | ||||||||||||||
Foreign currency forward contracts | 14,601 | (4,105 | ) | 14,643 | (7,675 | ) | Other income (expense) | (1,315 | ) | 42 | Other income (expense) | |||||||||||||||||
Foreign currency collar options | — | (602 | ) | — | (1,204 | ) | Depreciation and amortization expenses | — | — | Depreciation and amortization expenses | ||||||||||||||||||
Fuel swaps | (133 | ) | 2,498 | 192 | 4,775 | Other income (expense) | (256 | ) | 325 | Other income (expense) | ||||||||||||||||||
Fuel swaps | 2,043 | (41,835 | ) | (3,089 | ) | (81,763 | ) | Fuel | 18,018 | (5,131 | ) | Fuel | ||||||||||||||||
11,217 | (54,617 | ) | (3,698 | ) | (108,007 | ) | 12,722 | (14,914 | ) | |||||||||||||||||||
Amortization of defined benefit plans: | ||||||||||||||||||||||||||||
Actuarial loss | (372 | ) | (293 | ) | (714 | ) | (557 | ) | Payroll and related | (188 | ) | (343 | ) | Payroll and related | ||||||||||||||
(372 | ) | (293 | ) | (714 | ) | (557 | ) | (188 | ) | (343 | ) | |||||||||||||||||
Total reclassifications for the period | $ | 10,845 | $ | (54,910 | ) | $ | (4,412 | ) | $ | (108,564 | ) | $ | 12,534 | $ | (15,257 | ) |
Fair Value Measurements at June 30, 2018 Using | Fair Value Measurements at December 31, 2017 Using | Fair Value Measurements at March 31, 2019 Using | Fair Value Measurements at December 31, 2018 Using | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Description | Total Carrying Amount | Total Fair Value | Level 1(1) | Level 2(2) | Level 3(3) | Total Carrying Amount | Total Fair Value | Level 1(1) | Level 2(2) | Level 3(3) | Total Carrying Amount | Total Fair Value | Level 1(1) | Level 2(2) | Level 3(3) | Total Carrying Amount | Total Fair Value | Level 1(1) | Level 2(2) | Level 3(3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents(4) | $ | 108,998 | $ | 108,998 | $ | 108,998 | $ | — | $ | — | $ | 120,112 | $ | 120,112 | $ | 120,112 | $ | — | $ | — | $ | 248,197 | $ | 248,197 | $ | 248,197 | $ | — | $ | — | $ | 287,852 | $ | 287,852 | $ | 287,852 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||||
Total Assets | $ | 108,998 | $ | 108,998 | $ | 108,998 | $ | — | $ | — | $ | 120,112 | $ | 120,112 | $ | 120,112 | $ | — | $ | — | $ | 248,197 | $ | 248,197 | $ | 248,197 | $ | — | $ | — | $ | 287,852 | $ | 287,852 | $ | 287,852 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt (including current portion of long-term debt)(5) | $ | 8,474,818 | $ | 8,964,142 | $ | — | $ | 8,964,142 | $ | — | $ | 7,506,312 | $ | 8,038,092 | $ | — | $ | 8,038,092 | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt (including current portion of debt)(5) | $ | 9,045,459 | $ | 9,581,920 | $ | — | $ | 9,581,920 | $ | — | $ | 9,871,267 | $ | 10,244,214 | $ | — | $ | 10,244,214 | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Liabilities | $ | 8,474,818 | $ | 8,964,142 | $ | — | $ | 8,964,142 | $ | — | $ | 7,506,312 | $ | 8,038,092 | $ | — | $ | 8,038,092 | $ | — | $ | 9,045,459 | $ | 9,581,920 | $ | — | $ | 9,581,920 | $ | — | $ | 9,871,267 | $ | 10,244,214 | $ | — | $ | 10,244,214 | $ | — |
Fair Value Measurements at June 30, 2018 Using | Fair Value Measurements at December 31, 2017 Using | Fair Value Measurements at March 31, 2019 Using | Fair Value Measurements at December 31, 2018 Using | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Description | Total | Level 1(1) | Level 2(2) | Level 3(3) | Total | Level 1(1) | Level 2(2) | Level 3(3) | Total | Level 1(1) | Level 2(2) | Level 3(3) | Total | Level 1(1) | Level 2(2) | Level 3(3) | ||||||||||||||||||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative financial instruments(4) | $ | 296,646 | $ | — | $ | 296,646 | $ | — | $ | 320,385 | $ | — | $ | 320,385 | $ | — | $ | 119,082 | $ | — | $ | 119,082 | $ | — | $ | 65,297 | $ | — | $ | 65,297 | $ | — | ||||||||||||||||||||||||||||||||
Investments(5) | — | — | — | — | 3,340 | 3,340 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Assets | $ | 296,646 | $ | — | $ | 296,646 | $ | — | $ | 323,725 | $ | 3,340 | $ | 320,385 | $ | — | $ | 119,082 | $ | — | $ | 119,082 | $ | — | $ | 65,297 | $ | — | $ | 65,297 | $ | — | ||||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative financial instruments(6) | $ | 103,206 | $ | — | $ | 103,206 | $ | — | $ | 115,961 | $ | — | $ | 115,961 | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Derivative financial instruments(5) | $ | 210,426 | $ | — | $ | 210,426 | $ | — | $ | 201,812 | $ | — | $ | 201,812 | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Contingent consideration (6) | 44,000 | — | — | 44,000 | 44,000 | — | — | 44,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Liabilities | $ | 103,206 | $ | — | $ | 103,206 | $ | — | $ | 115,961 | $ | — | $ | 115,961 | $ | — | $ | 254,426 | $ | — | $ | 210,426 | $ | 44,000 | $ | 245,812 | $ | — | $ | 201,812 | $ | 44,000 |
(1) | Inputs based on quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access. Valuation of these items does not entail a significant amount of judgment. |
(2) | Inputs other than quoted prices included |
(3) | Inputs that are unobservable. |
(4) | Consists of foreign currency forward contracts, interest rate swaps and fuel swaps. Refer to the “Fair Value of Derivative Instruments” table for breakdown by instrument type. |
(5) | Consists of foreign currency forward contracts, interest rate swaps and fuel swaps. Refer to the “Fair Value of Derivative Instruments” table for breakdown by instrument type. |
(6) | The contingent consideration related to the Silversea Cruises acquisition was estimated by applying a Monte-Carlo simulation method using our closing stock price along with significant inputs not observable in the market, including the probability of achieving the milestones and estimated future operating results. The Monte-Carlo simulation is a generally accepted statistical technique used to generate a defined number of valuation paths in order to develop a reasonable estimate of fair value. Refer to Note 3. Business Combination for further information on the Silversea Cruises acquisition. |
Fair Value Measurements at June 30, 2018 Using | ||||||||||||||||
Description | Total Carrying Amount | Total Fair Value | Level 3 | Total Impairment | ||||||||||||
Equity-method investment - SkySea Holding (1) | $ | — | $ | — | $ | — | $ | 509 | ||||||||
Debt facility and other receivables due from Skysea Holding (2) | 64,667 | 64,667 | 64,667 | 22,834 | ||||||||||||
Total | $ | 64,667 | $ | 64,667 | $ | 64,667 | $ | 23,343 |
Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements | ||||||||||||||||||||||||||||||||
As of June 30, 2018 | As of December 31, 2017 | |||||||||||||||||||||||||||||||
Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheet | Gross Amount of Eligible Offsetting Recognized Derivative Liabilities | Cash Collateral Received | Net Amount of Derivative Assets | Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheet | Gross Amount of Eligible Offsetting Recognized Derivative Assets | Cash Collateral Received | Net Amount of Derivative Assets | |||||||||||||||||||||||||
Derivatives subject to master netting agreements | $ | 296,646 | $ | (91,084 | ) | $ | — | $ | 205,562 | $ | 320,385 | $ | (104,751 | ) | $ | — | $ | 215,634 | ||||||||||||||
Total | $ | 296,646 | $ | (91,084 | ) | $ | — | $ | 205,562 | $ | 320,385 | $ | (104,751 | ) | $ | — | $ | 215,634 |
Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements | ||||||||||||||||||||||||||||||||
As of March 31, 2019 | As of December 31, 2018 | |||||||||||||||||||||||||||||||
Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheet | Gross Amount of Eligible Offsetting Recognized Derivative Liabilities | Cash Collateral Received | Net Amount of Derivative Assets | Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheet | Gross Amount of Eligible Offsetting Recognized Derivative Assets | Cash Collateral Received | Net Amount of Derivative Assets | |||||||||||||||||||||||||
Derivatives subject to master netting agreements | $ | 119,082 | $ | (100,198 | ) | $ | — | $ | 18,884 | $ | 65,297 | $ | (60,303 | ) | $ | — | $ | 4,994 | ||||||||||||||
Total | $ | 119,082 | $ | (100,198 | ) | $ | — | $ | 18,884 | $ | 65,297 | $ | (60,303 | ) | $ | — | $ | 4,994 |
Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements | Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As of June 30, 2018 | As of December 31, 2017 | As of March 31, 2019 | As of December 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheet | Gross Amount of Eligible Offsetting Recognized Derivative Assets | Cash Collateral Pledged | Net Amount of Derivative Liabilities | Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheet | Gross Amount of Eligible Offsetting Recognized Derivative Liabilities | Cash Collateral Pledged | Net Amount of Derivative Liabilities | Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheet | Gross Amount of Eligible Offsetting Recognized Derivative Assets | Cash Collateral Pledged | Net Amount of Derivative Liabilities | Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheet | Gross Amount of Eligible Offsetting Recognized Derivative Liabilities | Cash Collateral Pledged | Net Amount of Derivative Liabilities | |||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives subject to master netting agreements | $ | (103,206 | ) | $ | 91,084 | $ | — | $ | (12,122 | ) | $ | (115,961 | ) | $ | 104,751 | $ | — | $ | (11,210 | ) | $ | (210,426 | ) | $ | 100,198 | $ | — | $ | (110,228 | ) | $ | (201,812 | ) | $ | 60,303 | $ | — | $ | (141,509 | ) | ||||||||||||||||||||||||
Total | $ | (103,206 | ) | $ | 91,084 | $ | — | $ | (12,122 | ) | $ | (115,961 | ) | $ | 104,751 | $ | — | $ | (11,210 | ) | $ | (210,426 | ) | $ | 100,198 | $ | — | $ | (110,228 | ) | $ | (201,812 | ) | $ | 60,303 | $ | — | $ | (141,509 | ) |
Debt Instrument | Swap Notional as of June 30, 2018 (In thousands) | Maturity | Debt Fixed Rate | Swap Floating Rate: LIBOR plus | All-in Swap Floating Rate as of June 30, 2018 | Swap Notional as of March 31, 2019 (In thousands) | Maturity | Debt Fixed Rate | Swap Floating Rate: LIBOR plus | All-in Swap Floating Rate as of March 31, 2019 | ||||
Oasis of the Seas term loan | $ | 122,500 | October 2021 | 5.41% | 3.87% | 6.39% | $ | 105,000 | October 2021 | 5.41% | 3.87% | 6.63% | ||
Unsecured senior notes | 650,000 | November 2022 | 5.25% | 3.63% | 5.97% | 650,000 | November 2022 | 5.25% | 3.63% | 6.32% | ||||
$ | 772,500 | $ | 755,000 |
Debt Instrument | Swap Notional as of June 30, 2018 (In thousands) | Maturity | Debt Floating Rate | All-in Swap Fixed Rate | Swap Notional as of March 31, 2019 (In thousands) | Maturity | Debt Floating Rate | All-in Swap Fixed Rate | ||||||
Celebrity Reflection term loan | $ | 354,521 | October 2024 | LIBOR plus | 0.40% | 2.85% | $ | 327,250 | October 2024 | LIBOR plus | 0.40% | 2.85% | ||
Quantum of the Seas term loan | 520,625 | October 2026 | LIBOR plus | 1.30% | 3.74% | 490,000 | October 2026 | LIBOR plus | 1.30% | 3.74% | ||||
Anthem of the Seas term loan | 543,750 | April 2027 | LIBOR plus | 1.30% | 3.86% | 513,542 | April 2027 | LIBOR plus | 1.30% | 3.86% | ||||
Ovation of the Seas term loan | 691,667 | April 2028 | LIBOR plus | 1.00% | 3.16% | 657,083 | April 2028 | LIBOR plus | 1.00% | 3.16% | ||||
Harmony of the Seas term loan (1) | 674,563 | May 2028 | EURIBOR plus | 1.15% | 2.26% | 616,242 | May 2028 | EURIBOR plus | 1.15% | 2.26% | ||||
$ | 2,785,126 | $ | 2,604,117 |
(1) | Interest rate swap agreements hedging the Euro-denominated term loan for Harmony of the Seas include EURIBOR zero-floor matching the hedged debt EURIBOR zero-floor. Amount presented is based on the exchange rate as of March 31, 2019. |
Fuel Swap Agreements | Fuel Swap Agreements | |||||||||
As of June 30, 2018 | As of December 31, 2017 | As of March 31, 2019 | As of December 31, 2018 | |||||||
(metric tons) | (metric tons) | |||||||||
2018 | 342,900 | 673,700 | ||||||||
2019 | 668,500 | 668,500 | 648,400 | 856,800 | ||||||
2020 | 531,200 | 531,200 | 830,500 | 830,500 | ||||||
2021 | 224,900 | 224,900 | 488,900 | 488,900 | ||||||
2022 | — | — | 322,900 | 322,900 | ||||||
2023 | — | — |
Fuel Swap Agreements | Fuel Swap Agreements | |||||||||
As of June 30, 2018 | As of December 31, 2017 | As of March 31, 2019 | As of December 31, 2018 | |||||||
(% hedged) | (% hedged) | |||||||||
Projected fuel purchases: | ||||||||||
2018 | 50 | % | 50 | % | ||||||
2019 | 47 | % | 46 | % | 58 | % | 58 | % | ||
2020 | 36 | % | 36 | % | 54 | % | 54 | % | ||
2021 | 14 | % | 14 | % | 29 | % | 28 | % | ||
2022 | — | % | — | 18 | % | 19 | % | |||
2023 | — | % | — | % |
Fair Value of Derivative Instruments | Fair Value of Derivative Instruments | |||||||||||||||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||||||||||||||||
Balance Sheet Location | As of June 30, 2018 | As of December 31, 2017 | Balance Sheet Location | As of June 30, 2018 | As of December 31, 2017 | Balance Sheet Location | As of March 31, 2019 | As of December 31, 2018 | Balance Sheet Location | As of March 31, 2019 | As of December 31, 2018 | |||||||||||||||||||||||||||||
Fair Value | Fair Value | Fair Value | Fair Value | Fair Value | Fair Value | Fair Value | Fair Value | |||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments under ASC 815-20(1) | ||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | Other assets | $ | 49,418 | $ | 7,330 | Other long-term liabilities | $ | 51,917 | $ | 46,509 | Other assets | $ | 6,010 | $ | 23,518 | Other long-term liabilities | $ | 43,351 | $ | 40,467 | ||||||||||||||||||||
Foreign currency forward contracts | Derivative financial instruments | 21,921 | 68,352 | Derivative financial instruments | 26,677 | — | Derivative financial instruments | 6,605 | 4,044 | Derivative financial instruments | 80,989 | 39,665 | ||||||||||||||||||||||||||||
Foreign currency forward contracts | Other assets | 72,830 | 158,879 | Other long-term liabilities | 4,502 | 6,625 | Other assets | 5,838 | 10,844 | Other long-term liabilities | 58,929 | 16,854 | ||||||||||||||||||||||||||||
Fuel swaps | Derivative financial instruments | 62,366 | 13,137 | Derivative financial instruments | 9,098 | 38,488 | Derivative financial instruments | 53,470 | 10,966 | Derivative financial instruments | 7,757 | 37,627 | ||||||||||||||||||||||||||||
Fuel swaps | Other assets | 79,191 | 51,265 | Other long-term liabilities | 2,584 | 13,411 | Other assets | 46,783 | 9,204 | Other long-term liabilities | 19,123 | 65,182 | ||||||||||||||||||||||||||||
Total derivatives designated as hedging instruments under 815-20 | 285,726 | 298,963 | 94,778 | 105,033 | 118,706 | 58,576 | 210,149 | 199,795 | ||||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments under ASC 815-20 | ||||||||||||||||||||||||||||||||||||||||
Foreign currency forward contracts | Derivative financial instruments | $ | 1,930 | $ | 9,945 | Derivative financial instruments | $ | — | $ | 2,933 | Derivative financial instruments | $ | — | $ | 1,751 | Derivative financial instruments | $ | — | $ | 808 | ||||||||||||||||||||
Foreign currency forward contracts | Other assets | 734 | 2,793 | Other long-term liabilities | — | 1,139 | Other assets | — | 1,579 | Other long-term liabilities | — | 833 | ||||||||||||||||||||||||||||
Fuel swaps | Derivative financial instruments | 8,256 | 7,886 | Derivative financial instruments | 8,428 | 6,043 | Derivative financial instruments | 376 | 2,804 | Derivative financial instruments | 277 | 376 | ||||||||||||||||||||||||||||
Fuel swaps | Other Assets | — | 798 | Other long-term liabilities | — | 813 | Other Assets | — | 587 | Other long-term liabilities | — | — | ||||||||||||||||||||||||||||
Total derivatives not designated as hedging instruments under 815-20 | 10,920 | 21,422 | 8,428 | 10,928 | 376 | 6,721 | 277 | 2,017 | ||||||||||||||||||||||||||||||||
Total derivatives | $ | 296,646 | $ | 320,385 | $ | 103,206 | $ | 115,961 | $ | 119,082 | $ | 65,297 | $ | 210,426 | $ | 201,812 |
(1) |
Quarter Ended March 31, 2019 | Quarter Ended March 31, 2018 | |||||||||||||||||||
Fuel Expense | Depreciation and Amortization Expenses | Interest Income (Expense) | Other Income (Expense) | Fuel Expense | Depreciation and Amortization Expenses | Interest Income (Expense) | Other Income (Expense) | |||||||||||||
Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded | $160,171 | $292,285 | $(90,631) | $(5,088) | $160,341 | $240,230 | $(60,145) | $(24,100) | ||||||||||||
The effects of fair value and cash flow hedging: | ||||||||||||||||||||
Gain or (loss) on fair value hedging relationships in Subtopic 815-20 | ||||||||||||||||||||
Interest contracts | ||||||||||||||||||||
Hedged items | n/a | n/a | $(8,459) | $— | n/a | n/a | 13,182 | $— | ||||||||||||
Derivatives designated as hedging instruments | n/a | n/a | $(2,257) | $— | n/a | n/a | $(12,570) | $— | ||||||||||||
Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 | ||||||||||||||||||||
Interest contracts | ||||||||||||||||||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income (loss) into income | n/a | n/a | $(391) | n/a | n/a | n/a | $(6,838) | n/a | ||||||||||||
Commodity contracts | ||||||||||||||||||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income (loss) into income | $18,018 | n/a | n/a | $(256) | $(5,131) | n/a | n/a | $325 | ||||||||||||
Foreign exchange contracts | ||||||||||||||||||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income (loss) into income | n/a | $(3,334) | n/a | $(1,315) | n/a | $(3,312) | n/a | $42 |
Quarter Ended June 30, 2018 | |||||||||||||||||||||
Fuel Expense | Depreciation and Amortization Expenses | Interest Income (Expense) | Other Income (Expense) | Fuel Expense | Depreciation and Amortization Expenses | Interest Income (Expense) | Other Income (Expense) | ||||||||||||||
Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded | 172,309 | 253,376 | (68,766) | 33,855 | 170,748 | 234,937 | (70,821) | (2,709 | ) | ||||||||||||
The effects of fair value and cash flow hedging: | |||||||||||||||||||||
Gain or (loss) on fair value hedging relationships in Subtopic 815-20 | |||||||||||||||||||||
Interest contracts | |||||||||||||||||||||
Hedged items | n/a | n/a | 3,374 | n/a | n/a | n/a | n/a | (4,311 | ) | ||||||||||||
Derivatives designated as hedging instruments | n/a | n/a | (5,310) | n/a | n/a | n/a | 869 | 5,351 | |||||||||||||
Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 | |||||||||||||||||||||
Interest contracts | |||||||||||||||||||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income | n/a | n/a | (2,138) | n/a | n/a | n/a | (7,863) | n/a | |||||||||||||
Commodity contracts | |||||||||||||||||||||
Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income | 2,043 | n/a | n/a | (133 | ) | (41,835) | n/a | n/a | 2,498 | ||||||||||||
Foreign exchange contracts | |||||||||||||||||||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income | n/a | (3,156) | n/a | 14,601 | n/a | (3,312) | n/a | (4,105 | ) |
Six Months Ended June 30, 2018 | ||||||||||||||||||||||
Fuel Expense | Depreciation and Amortization Expenses | Interest Income (Expense) | Other Income (Expense) | Fuel Expense | Depreciation and Amortization Expenses | Interest Income (Expense) | Other Income (Expense) | |||||||||||||||
Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded | 332,650 | 493,606 | (128,911) | 9,755 | 348,162 | 470,686 | (144,886) | (5,320 | ) | |||||||||||||
The effects of fair value and cash flow hedging: | ||||||||||||||||||||||
Gain or (loss) on fair value hedging relationships in Subtopic 815-20 | ||||||||||||||||||||||
Interest contracts | ||||||||||||||||||||||
Hedged items | n/a | n/a | 16,556 | n/a | n/a | n/a | n/a | (1,854 | ) | |||||||||||||
Derivatives designated as hedging instruments | n/a | n/a | (17,880) | n/a | n/a | n/a | 2,042 | 3,820 | ||||||||||||||
Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 | ||||||||||||||||||||||
Interest contracts | ||||||||||||||||||||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income | n/a | n/a | (8,976) | n/a | n/a | n/a | (16,720) | n/a | ||||||||||||||
Commodity contracts | ||||||||||||||||||||||
Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income | (3,089) | n/a | n/a | 192 | (81,763 | ) | n/a | n/a | 4,775 | |||||||||||||
Foreign exchange contracts | ||||||||||||||||||||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income | n/a | (6,468) | n/a | 14,643 | n/a | (6,624) | n/a | (7,675 | ) |
Carrying Value | ||||||||||
Non-derivative instrument designated as hedging instrument under ASC 815-20 | Balance Sheet Location | As of June 30, 2018 | As of December 31, 2017 | |||||||
Foreign currency debt | Current portion of long-term debt | $ | 79,575 | $ | 70,097 | |||||
Foreign currency debt | Long-term debt | 219,279 | 225,226 | |||||||
$ | 298,854 | $ | 295,323 |
Carrying Value | ||||||||||
Non-derivative instrument designated as hedging instrument under ASC 815-20 | Balance Sheet Location | As of March 31, 2019 | As of December 31, 2018 | |||||||
Foreign currency debt | Current portion of debt | $ | 73,536 | $ | 38,168 | |||||
Foreign currency debt | Long-term debt | 239,669 | 281,984 | |||||||
$ | 313,205 | $ | 320,152 |
Derivatives and Related Hedged Items under ASC 815-20 Fair Value Hedging Relationships | Location of Gain (Loss) Recognized in Income on Derivative and Hedged Item | Amount of Gain (Loss) Recognized in Income on Derivative | Amount of Gain (Loss) Recognized in Income on Hedged Item | Location of Gain (Loss) Recognized in Income on Derivative and Hedged Item | Amount of Gain (Loss) Recognized in Income on Derivative | Amount of Gain (Loss) Recognized in Income on Hedged Item | ||||||||||||||||||||||||||||||||||||||||||||||
Quarter Ended June 30, 2018 | Quarter Ended June 30, 2017 | Six Months Ended June 30, 2018 | Six Months Ended June 30, 2017 | Quarter Ended June 30, 2018 | Quarter Ended June 30, 2017 | Six Months Ended June 30, 2018 | Six Months Ended June 30, 2017 | Quarter Ended March 31, 2019 | Quarter Ended March 31, 2018 | Quarter Ended March 31, 2019 | Quarter Ended March 31, 2018 | |||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | Interest expense, net of interest capitalized | $ | (5,310 | ) | $ | 869 | $ | (17,880 | ) | $ | 2,042 | $ | 3,374 | $ | — | $ | 16,556 | $ | — | Interest expense, net of interest capitalized | $ | (2,257 | ) | $ | (12,570 | ) | $ | (8,459 | ) | $ | 13,182 | |||||||||||||||||||||
Interest rate swaps | Other income (expense) | — | 5,351 | — | 3,820 | — | (4,311 | ) | — | (1,854 | ) | Other income (expense) | 8,092 | — | — | — | ||||||||||||||||||||||||||||||||||||
$ | (5,310 | ) | $ | 6,220 | $ | (17,880 | ) | $ | 5,862 | $ | 3,374 | $ | (4,311 | ) | $ | 16,556 | $ | (1,854 | ) | $ | 5,835 | $ | (12,570 | ) | $ | (8,459 | ) | $ | 13,182 |
Line Item in the Statement of Financial Position Where the Hedged Item is Included | Carrying Amount of the Hedged Assets/(Liabilities) | Cumulative amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) | Carrying Amount of the Hedged Liabilities | Cumulative amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liabilities | ||||||||||||||||||||||||||||
As of June 30, 2018 | As of December 31, 2017 | As of June 30, 2018 | As of December 31, 2017 | As of March 31, 2019 | As of December 31, 2018 | As of March 31, 2019 | As of December 31, 2018 | |||||||||||||||||||||||||
Current portion of long-term debt and Long-term debt | $ | 730,462 | $ | 749,155 | $ | (36,648 | ) | $ | (34,813 | ) | ||||||||||||||||||||||
Current portion of debt and Long-term debt | $ | 734,266 | $ | 725,486 | $ | (16,306 | ) | $ | (24,766 | ) | ||||||||||||||||||||||
$ | 730,462 | $ | 749,155 | $ | (36,648 | ) | $ | (34,813 | ) | $ | 734,266 | $ | 725,486 | $ | (16,306 | ) | $ | (24,766 | ) |
Derivatives under ASC 815-20 Cash Flow Hedging Relationships | Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivative (Effective Portion) | Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion) | Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Effective Portion) | |||||||||||||||||||||||||||||||
Quarter Ended June 30, 2018 | Quarter Ended June 30, 2017 | Six Months Ended June 30, 2018 | Six Months Ended June 30, 2017 | Quarter Ended June 30, 2018 | Quarter Ended June 30, 2017 | Six Months Ended June 30, 2018 | Six Months Ended June 30, 2017 | |||||||||||||||||||||||||||
Interest rate swaps | $ | 8,867 | $ | (19,060 | ) | $ | 46,058 | $ | (21,549 | ) | Interest expense, net of interest capitalized | $ | (2,138 | ) | $ | (7,863 | ) | $ | (8,976 | ) | $ | (16,720 | ) | |||||||||||
Foreign currency forward contracts | (193,329 | ) | 97,521 | (97,963 | ) | 99,650 | Depreciation and amortization expenses | (3,156 | ) | (2,710 | ) | (6,468 | ) | (5,420 | ) | |||||||||||||||||||
Foreign currency forward contracts | — | — | — | — | Other income (expense) | 14,601 | (4,105 | ) | 14,643 | (7,675 | ) | |||||||||||||||||||||||
Foreign currency collar options | — | — | — | — | Depreciation and amortization expenses | — | (602 | ) | — | (1,204 | ) | |||||||||||||||||||||||
Fuel swaps | — | — | — | — | Other income (expense) | (133 | ) | 2,498 | 192 | 4,775 | ||||||||||||||||||||||||
Fuel swaps | 126,778 | (4,125 | ) | 121,837 | (34,693 | ) | Fuel | 2,043 | (41,835 | ) | (3,089 | ) | (81,763 | ) | ||||||||||||||||||||
$ | (57,684 | ) | $ | 74,336 | $ | 69,932 | $ | 43,408 | $ | 11,217 | $ | (54,617 | ) | $ | (3,698 | ) | $ | (108,007 | ) |
Derivatives under ASC 815-20 Cash Flow Hedging Relationships | Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivative | Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income | Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | |||||||||||||||
Quarter Ended March 31, 2019 | Quarter Ended March 31, 2018 | Quarter Ended March 31, 2019 | Quarter Ended March 31, 2018 | |||||||||||||||
Interest rate swaps | $ | (28,329 | ) | $ | 37,191 | Interest expense, net of interest capitalized | $ | (391 | ) | $ | (6,838 | ) | ||||||
Foreign currency forward contracts | (90,144 | ) | 95,366 | Depreciation and amortization expenses | (3,334 | ) | (3,312 | ) | ||||||||||
Foreign currency forward contracts | — | — | Other income (expense) | (1,315 | ) | 42 | ||||||||||||
Fuel swaps | — | — | Other income (expense) | (256 | ) | 325 | ||||||||||||
Fuel swaps | 180,038 | (4,941 | ) | Fuel | 18,018 | (5,131 | ) | |||||||||||
$ | 61,565 | $ | 127,616 | $ | 12,722 | $ | (14,914 | ) |
Gain (Loss) Recognized in Income (Net Investment Excluded Components) | Six Months Ended June 30, 2018 | |||
Net inception fair value at January 1, 2018 | $ | (11,335 | ) | |
Amount of gain recognized in income on derivatives for the period ended June 30, 2018 | 1,488 | |||
Amount of loss remaining to be amortized in accumulated other comprehensive loss, as of June 30, 2018 | (2,205 | ) | ||
Fair value at June 30, 2018 | $ | (12,052 | ) |
Gain (Loss) Recognized in Income (Net Investment Excluded Components) | Three Months Ended March 31, 2019 | |||
Net inception fair value at January 1, 2019 | $ | (8,359 | ) | |
Amount of gain recognized in income on derivatives for the period ended March 31, 2019 | 744 | |||
Amount of loss remaining to be amortized in accumulated other comprehensive loss, as of March 31, 2019 | (656 | ) | ||
Fair value at March 31, 2019 | $ | (8,271 | ) |
Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) | Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) | |||||||||||||||||||||||
Non-derivative instruments under ASC 815-20 Net Investment Hedging Relationships | Quarter Ended June 30, 2018 | Quarter Ended June 30, 2017 | Six Months Ended June 30, 2018 | Six Months Ended June 30, 2017 | Quarter Ended March 31, 2019 | Quarter Ended March 31, 2018 | ||||||||||||||||||
Foreign Currency Debt | $ | 15,853 | $ | 21,888 | $ | 7,609 | $ | 26,257 | $ | 5,702 | $ | (8,244 | ) | |||||||||||
$ | 15,853 | $ | 21,888 | $ | 7,609 | $ | 26,257 | $ | 5,702 | $ | (8,244 | ) |
Amount of Gain (Loss) Recognized in Income on Derivatives | ||||||||||
Derivatives Not Designated as Hedging Instruments under ASC 815-20 | Location of Gain (Loss) Recognized in Income on Derivatives | Quarter Ended March 31, 2019 | Quarter Ended March 31, 2018 | |||||||
Foreign currency forward contracts | Other income (expense) | $ | 5,014 | $ | 5,635 | |||||
Fuel swaps | Fuel | (136 | ) | (30 | ) | |||||
Fuel swaps | Other income (expense) | (98 | ) | 2,205 | ||||||
$ | 4,780 | $ | 7,810 |
Amount of Gain (Loss) Recognized in Income on Derivatives | ||||||||||||||||||
Derivatives Not Designated as Hedging Instruments under ASC 815-20 | Location of Gain (Loss) Recognized in Income on Derivatives | Quarter Ended June 30, 2018 | Quarter Ended June 30, 2017 | Six Months Ended June 30, 2018 | Six Months Ended June 30, 2017 | |||||||||||||
Foreign currency forward contracts | Other income (expense) | $ | (36,894 | ) | $ | 21,256 | $ | (31,259 | ) | $ | 35,068 | |||||||
Fuel swaps | Other income (expense) | 213 | (20 | ) | 183 | (80 | ) | |||||||||||
Fuel swaps | Fuel | (881 | ) | — | 1,326 | — | ||||||||||||
$ | (37,562 | ) | $ | 21,236 | $ | (29,750 | ) | $ | 34,988 |
Quarter Ended June 30, | Six months ended June 30, | Quarter Ended March 31, | ||||||||||||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2019 | 2018 | |||||||||||||||||||||||||||||||||||
% of Total Revenues | % of Total Revenues | % of Total Revenues | % of Total Revenues | % of Total Revenues | % of Total Revenues | |||||||||||||||||||||||||||||||||||
Passenger ticket revenues | $ | 1,672,570 | 71.6 | % | $ | 1,581,385 | 72.0 | % | $ | 3,098,214 | 71.0 | % | $ | 2,999,608 | 71.4 | % | $ | 1,709,984 | 70.1 | % | $ | 1,425,644 | 70.3 | % | ||||||||||||||||
Onboard and other revenues | 665,035 | 28.4 | % | 613,889 | 28.0 | % | 1,267,147 | 29.0 | % | 1,204,226 | 28.6 | % | 729,783 | 29.9 | % | 602,112 | 29.7 | % | ||||||||||||||||||||||
Total revenues | 2,337,605 | 100.0 | % | 2,195,274 | 100.0 | % | 4,365,361 | 100.0 | % | 4,203,834 | 100.0 | % | 2,439,767 | 100.0 | % | 2,027,756 | 100.0 | % | ||||||||||||||||||||||
Cruise operating expenses: | ||||||||||||||||||||||||||||||||||||||||
Commissions, transportation and other | 358,305 | 15.3 | % | 340,331 | 15.5 | % | 648,914 | 14.9 | % | 650,579 | 15.5 | % | 363,155 | 14.9 | % | 290,609 | 14.3 | % | ||||||||||||||||||||||
Onboard and other | 142,240 | 6.1 | % | 132,437 | 6.0 | % | 241,777 | 5.5 | % | 238,431 | 5.7 | % | 135,170 | 5.5 | % | 99,537 | 4.9 | % | ||||||||||||||||||||||
Payroll and related | 226,315 | 9.7 | % | 210,362 | 9.6 | % | 453,471 | 10.4 | % | 426,097 | 10.1 | % | 269,532 | 11.0 | % | 227,156 | 11.2 | % | ||||||||||||||||||||||
Food | 128,383 | 5.5 | % | 121,764 | 5.5 | % | 248,025 | 5.7 | % | 242,975 | 5.8 | % | 139,534 | 5.7 | % | 119,642 | 5.9 | % | ||||||||||||||||||||||
Fuel | 172,309 | 7.4 | % | 170,748 | 7.8 | % | 332,650 | 7.6 | % | 348,162 | 8.3 | % | 160,171 | 6.6 | % | 160,341 | 7.9 | % | ||||||||||||||||||||||
Other operating | 286,859 | 12.3 | % | 281,143 | 12.8 | % | 565,593 | 13.0 | % | 526,365 | 12.5 | % | 346,142 | 14.2 | % | 278,734 | 13.7 | % | ||||||||||||||||||||||
Total cruise operating expenses | 1,314,411 | 56.2 | % | 1,256,785 | 57.2 | % | 2,490,430 | 57.0 | % | 2,432,609 | 57.9 | % | 1,413,704 | 57.9 | % | 1,176,019 | 58.0 | % | ||||||||||||||||||||||
Marketing, selling and administrative expenses | 312,923 | 13.4 | % | 283,855 | 12.9 | % | 650,284 | 14.9 | % | 601,320 | 14.3 | % | 414,947 | 17.0 | % | 337,361 | 16.6 | % | ||||||||||||||||||||||
Depreciation and amortization expenses | 253,376 | 10.8 | % | 234,937 | 10.7 | % | 493,606 | 11.3 | % | 470,686 | 11.2 | % | 292,285 | 12.0 | % | 240,230 | 11.8 | % | ||||||||||||||||||||||
Operating Income | 456,895 | 19.5 | % | 419,697 | 19.1 | % | 731,041 | 16.7 | % | 699,219 | 16.6 | % | 318,831 | 13.1 | % | 274,146 | 13.5 | % | ||||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||||||||||||||||||
Interest income | 13,098 | 0.6 | % | 5,811 | 0.3 | % | 20,831 | 0.5 | % | 12,063 | 0.3 | % | 9,784 | 0.4 | % | 7,733 | 0.4 | % | ||||||||||||||||||||||
Interest expense, net of interest capitalized | (81,864 | ) | (3.5 | )% | (76,632 | ) | (3.5 | )% | (149,742 | ) | (3.4 | )% | (156,949 | ) | (3.7 | )% | (100,415 | ) | (4.1 | )% | (67,878 | ) | (3.3 | )% | ||||||||||||||||
Equity investment income | 44,311 | 1.9 | % | 23,359 | 1.1 | % | 73,063 | 1.7 | % | 35,239 | 0.8 | % | 33,694 | 1.4 | % | 28,752 | 1.4 | % | ||||||||||||||||||||||
Other income (expense) | 33,855 | 1.4 | % | (2,709 | ) | (0.1 | )% | 9,755 | 0.2 | % | (5,320 | ) | (0.1 | )% | ||||||||||||||||||||||||||
Other expense | (5,088 | ) | (0.2 | )% | (24,100 | ) | (1.2 | )% | ||||||||||||||||||||||||||||||||
9,400 | 0.4 | % | (50,171 | ) | (2.3 | )% | (46,093 | ) | (1.1 | )% | (114,967 | ) | (2.7 | )% | (62,025 | ) | (2.5 | )% | (55,493 | ) | (2.7 | )% | ||||||||||||||||||
Net Income | $ | 466,295 | 19.9 | % | $ | 369,526 | 16.8 | % | $ | 684,948 | 15.7 | % | $ | 584,252 | 13.9 | % | 256,806 | 10.5 | % | 218,653 | 10.8 | % | ||||||||||||||||||
Less: Net Income attributable to noncontrolling interest | 7,125 | 0.3 | % | — | — | % | ||||||||||||||||||||||||||||||||||
Net Income attributable to Royal Caribbean Cruises Ltd. | $ | 249,681 | 10.2 | % | $ | 218,653 | 10.8 | % | ||||||||||||||||||||||||||||||||
Diluted Earnings per Share | $ | 2.19 | $ | 1.71 | $ | 3.21 | $ | 2.71 | $ | 1.19 | $ | 1.02 |
Quarter Ended June 30, | Six Months Ended June 30, | Quarter Ended March 31, | ||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2019 | 2018 | |||||||||||||||||
Net Income | $ | 466,295 | $ | 369,526 | $ | 684,948 | $ | 584,252 | ||||||||||||||
Adjusted Net income | 482,221 | 369,526 | 714,979 | 584,252 | ||||||||||||||||||
Net Adjustments to Net Income - Increase | $ | 15,926 | $ | — | $ | 30,031 | $ | — | ||||||||||||||
Adjustments to Net Income: | ||||||||||||||||||||||
Impairment loss related to Skysea Holding(1) | $ | — | $ | — | $ | 23,343 | $ | — | ||||||||||||||
Impairment and other costs related to exit of tour operations business(2) | 11,255 | — | 11,255 | — | ||||||||||||||||||
Transaction costs related to Silversea Cruises acquisition(3) | 4,671 | — | 4,671 | — | ||||||||||||||||||
Net Income attributable to Royal Caribbean Cruises Ltd. | $ | 249,681 | $ | 218,653 | ||||||||||||||||||
Adjusted Net Income attributable to Royal Caribbean Cruises Ltd. | 275,847 | 232,758 | ||||||||||||||||||||
Net Adjustments to Net Income attributable to Royal Caribbean Cruises Ltd. - Increase | $ | 26,166 | $ | 14,105 | ||||||||||||||||||
Adjustments to Net Income attributable to Royal Caribbean Cruises Ltd.: | ||||||||||||||||||||||
Transaction costs related to Silversea Cruises acquisition(1) | $ | 1,186 | $ | — | ||||||||||||||||||
Amortization of Silversea Cruises intangible assets resulting from the acquisition(1) | 3,069 | — | ||||||||||||||||||||
Noncontrolling interest adjustment(2) | 21,911 | — | ||||||||||||||||||||
Impairment loss related to Skysea Holding(3) | — | 23,343 | ||||||||||||||||||||
Impact of change in accounting principle(4) | — | — | (9,238 | ) | — | — | (9,238 | ) | ||||||||||||||
Net Adjustments to Net Income - Increase | $ | 15,926 | $ | — | $ | 30,031 | $ | — | ||||||||||||||
Net Adjustments to Net Income attributable to Royal Caribbean Cruises Ltd. - Increase | $ | 26,166 | $ | 14,105 | ||||||||||||||||||
Basic: | ||||||||||||||||||||||
Earnings per Share | $ | 2.20 | $ | 1.72 | $ | 3.23 | $ | 2.72 | $ | 1.19 | $ | 1.03 | ||||||||||
Adjusted Earnings per Share | $ | 2.28 | $ | 1.72 | $ | 3.37 | $ | 2.72 | $ | 1.32 | $ | 1.09 | ||||||||||
Diluted: | ||||||||||||||||||||||
Earnings per Share | $ | 2.19 | $ | 1.71 | $ | 3.21 | $ | 2.71 | $ | 1.19 | $ | 1.02 | ||||||||||
Adjusted Earnings per Share | $ | 2.27 | $ | 1.71 | $ | 3.36 | $ | 2.71 | $ | 1.31 | $ | 1.09 | ||||||||||
Weighted-Average Shares Outstanding: | ||||||||||||||||||||||
Basic | 211,673 | 215,085 | 212,139 | 214,978 | 209,322 | 212,610 | ||||||||||||||||
Diluted | 212,509 | 216,062 | 213,079 | 215,944 | 209,874 | 213,602 |
(1) | Refer to Note |
(2) | Adjustment made to exclude the impact of the contractual accretion requirements associated with the put option held by Silversea Cruises Group Ltd.'s noncontrolling interest. Refer to Note 10. RedeemableNoncontrolling Interest to our consolidated financial statementsfor further information on |
(3) | Refer to Note |
(4) | In January 2018, we elected to change our accounting policy for recognizing stock-based compensation expense from the graded attribution method to the straight-line attribution method for time-based stock |
Quarter Ended June 30, | Six Months Ended June 30, | Quarter Ended March 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | 2019(1) | 2018 | |||||||||||
Passengers Carried | 1,461,055 | 1,433,339 | 2,866,006 | 2,858,872 | 1,533,226 | 1,404,951 | ||||||||||
Passenger Cruise Days | 10,213,067 | 9,950,570 | 19,838,849 | 19,910,135 | 10,561,817 | 9,625,781 | ||||||||||
APCD | 9,402,736 | 9,152,899 | 18,318,442 | 18,432,309 | 9,860,600 | 8,915,706 | ||||||||||
Occupancy | 108.6 | % | 108.7 | % | 108.3 | % | 108.0 | % | 107.1 | % | 108.0 | % |
(1) | Due to the three-month reporting lag, these amounts include October, November and December of 2018 amounts for Silversea Cruises. Refer to Note 1. General and Note 3. Business Combination to our consolidated financial statements for more information on the three-month reporting lag and Silversea Cruises acquisition. |
Quarter Ended June 30, | Six Months Ended June 30, | Quarter Ended March 31, | ||||||||||||||||||||||||||||||||
2018 | 2018 On a Constant Currency Basis | 2017 | 2018 | 2018 On a Constant Currency Basis | 2017 | 2019 | 2019 On a Constant Currency Basis | 2018 | ||||||||||||||||||||||||||
Passenger ticket revenues | $ | 1,672,570 | $ | 1,653,080 | $ | 1,581,385 | $ | 3,098,214 | $ | 3,045,394 | $ | 2,999,608 | $ | 1,709,984 | $ | 1,749,294 | $ | 1,425,644 | ||||||||||||||||
Onboard and other revenues | 665,035 | 661,938 | 613,889 | 1,267,147 | 1,258,780 | 1,204,226 | 729,783 | 735,466 | 602,112 | |||||||||||||||||||||||||
Total revenues | 2,337,605 | 2,315,018 | 2,195,274 | 4,365,361 | 4,304,174 | 4,203,834 | 2,439,767 | 2,484,760 | 2,027,756 | |||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||
Commissions, transportation and other | 358,305 | 354,488 | 340,331 | 648,914 | 640,082 | 650,579 | 363,155 | 369,111 | 290,609 | |||||||||||||||||||||||||
Onboard and other | 142,240 | 141,115 | 132,437 | 241,777 | 240,475 | 238,431 | 135,170 | 135,684 | 99,537 | |||||||||||||||||||||||||
Net Revenues | $ | 1,837,060 | $ | 1,819,415 | $ | 1,722,506 | $ | 3,474,670 | $ | 3,423,617 | $ | 3,314,824 | $ | 1,941,442 | $ | 1,979,965 | $ | 1,637,610 | ||||||||||||||||
APCD | 9,402,736 | 9,402,736 | 9,152,899 | 18,318,442 | 18,318,442 | 18,432,309 | 9,860,600 | 9,860,600 | 8,915,706 | |||||||||||||||||||||||||
Gross Yields | $ | 248.61 | $ | 246.21 | $ | 239.84 | $ | 238.30 | $ | 234.96 | $ | 228.07 | $ | 247.43 | $ | 251.99 | $ | 227.44 | ||||||||||||||||
Net Yields | $ | 195.38 | $ | 193.50 | $ | 188.19 | $ | 189.68 | $ | 186.89 | $ | 179.84 | $ | 196.89 | $ | 200.80 | $ | 183.68 |
Quarter Ended June 30, | Six Months Ended June 30, | Quarter Ended March 31, | ||||||||||||||||||||||||||||||||
2018 | 2018 On a Constant Currency Basis | 2017 | 2018 | 2018 On a Constant Currency Basis | 2017 | 2019 | 2019 On a Constant Currency Basis | 2018 | ||||||||||||||||||||||||||
Total cruise operating expenses | $ | 1,314,411 | $ | 1,305,451 | $ | 1,256,785 | $ | 2,490,430 | $ | 2,470,629 | $ | 2,432,609 | $ | 1,413,704 | $ | 1,425,102 | $ | 1,176,019 | ||||||||||||||||
Marketing, selling and administrative expenses (1) (2) | 296,997 | 294,106 | 283,855 | 643,596 | 635,066 | 601,320 | 413,761 | 418,357 | 346,599 | |||||||||||||||||||||||||
Gross Cruise Costs | 1,611,408 | 1,599,557 | 1,540,640 | 3,134,026 | 3,105,695 | 3,033,929 | 1,827,465 | 1,843,459 | 1,522,618 | |||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||
Commissions, transportation and other | 358,305 | 354,488 | 340,331 | 648,914 | 640,082 | 650,579 | 363,155 | 369,111 | 290,609 | |||||||||||||||||||||||||
Onboard and other | 142,240 | 141,115 | 132,437 | 241,777 | 240,475 | 238,431 | 135,170 | 135,684 | 99,537 | |||||||||||||||||||||||||
Net Cruise Costs | 1,110,863 | 1,103,954 | 1,067,872 | 2,243,335 | 2,225,138 | 2,144,919 | 1,329,140 | 1,338,664 | 1,132,472 | |||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||
Fuel | 172,309 | 172,309 | 170,748 | 332,650 | 332,650 | 348,162 | 160,171 | 160,184 | 160,341 | |||||||||||||||||||||||||
Net Cruise Costs Excluding Fuel | $ | 938,554 | $ | 931,645 | $ | 897,124 | $ | 1,910,685 | $ | 1,892,488 | $ | 1,796,757 | $ | 1,168,969 | $ | 1,178,480 | $ | 972,131 | ||||||||||||||||
APCD | 9,402,736 | 9,402,736 | 9,152,899 | 18,318,442 | 18,318,442 | 18,432,309 | 9,860,600 | 9,860,600 | 8,915,706 | |||||||||||||||||||||||||
Gross Cruise Costs per APCD | $ | 171.38 | $ | 170.12 | $ | 168.32 | $ | 171.09 | $ | 169.54 | $ | 164.60 | $ | 185.33 | $ | 186.95 | $ | 170.78 | ||||||||||||||||
Net Cruise Costs per APCD | $ | 118.14 | $ | 117.41 | $ | 116.67 | $ | 122.46 | $ | 121.47 | $ | 116.37 | $ | 134.79 | $ | 135.76 | $ | 127.02 | ||||||||||||||||
Net Cruise Costs Excluding Fuel per APCD | $ | 99.82 | $ | 99.08 | $ | 98.02 | $ | 104.30 | $ | 103.31 | $ | 97.48 | $ | 118.55 | $ | 119.51 | $ | 109.04 |
(1) | For the quarter ended March 31, 2019, the amount does not include the transaction costs related to the Silversea Cruises acquisition of $1.2 million. |
(2) | For the |
As Reported | Constant Currency | |
Net Yields | ||
Net Cruise Costs per APCD | Approx. | |
Net Cruise Costs per APCD, Excluding Fuel | Approx. | Approx. |
Capacity Change | ||
Depreciation and Amortization | $ | |
Interest Expense, net | $ | |
Fuel Consumption (metric tons) | ||
Fuel Expenses | $ | |
Percent Hedged (fwd consumption) | ||
Adjusted Earnings per Share-Diluted | $ |
Remaining Periods | |
1% Change in Currency | $ |
1% Change in Net Yields | $ |
1% Change in NCC x Fuel | $ |
100 basis pt. Change in LIBOR | $ |
10% Change in Fuel Prices |
As Reported | Constant Currency | |
Net Yields | Approx. | |
Net Cruise Costs per APCD | ||
Net Cruise Costs per APCD, Excluding Fuel | Approx. | |
Capacity Change | ||
Depreciation and Amortization | $ | |
Interest Expense, net | $ | |
Fuel Consumption (metric tons) | ||
Fuel Expenses | $ | |
Percent Hedged (fwd consumption) | ||
Adjusted Earnings per Share-Diluted |
1% Change in Currency | $ |
1% Change in Net Yields | $ |
1% Change in NCC x Fuel | $ |
100 basis pt. Change in LIBOR | $7 million |
10% Change in Fuel Prices |
(1) | Due to the three-month reporting lag, Silversea Cruises does not impact the sensitivity analysis above for the second quarter 2019. |
Ranking | Q1 | Q2 | Q3 | Q4 | FY | |||||
1 | AUD | GBP | GBP | AUD | GBP | |||||
2 | CAD | GBP | AUD | |||||||
3 | GBP | CAD | CAD | |||||||
4 | CNH | CAD | EUR | EUR | ||||||
5 | EUR | CNH | CNH |
Currency Abbreviation | Currency | |
AUD | Australian Dollar | |
CAD | Canadian Dollar | |
CNH | Chinese Yuan | |
EUR | Euro | |
GBP | British Pound | |
Ship | Expected to Enter Service | Approximate Berths | ||
Royal Caribbean International — | ||||
Oasis-class: | ||||
Unnamed | 2nd Quarter 2021 | |||
Quantum-class: | ||||
Spectrum of the Seas(1) | 2nd Quarter 2019 | |||
4th Quarter 2020 | ||||
Icon-class: | ||||
Unnamed | 2nd Quarter 2022 | |||
Unnamed | 2nd Quarter 2024 | |||
Celebrity Cruises — | ||||
Edge-class: | ||||
Celebrity Apex | 2nd Quarter 2020 | 2,900 | ||
Unnamed | 4th Quarter 2021 | 3,200 | ||
Unnamed | 4th Quarter 2022 | 3,200 | ||
Celebrity Flora | 2nd Quarter 2019 | 100 | ||
100 | ||||
Silver Moon | 3rd Quarter 2020 | 550 | ||
Silver Dawn | 3rd Quarter 2021 | 550 | ||
TUI Cruises (50% joint venture) — | ||||
Mein Schiff 7 | 2nd Quarter 2023 | 2,850 | ||
Unnamed | 3rd Quarter | |||
Unnamed | 1st Quarter 2026 | 4,100 | ||
Total Berths |
(1) |
Payments due by period | Payments due by period | |||||||||||||||||||||||||||||||||||||
Less than | 1-3 | 3-5 | More than | Less than | 1-3 | 3-5 | More than | |||||||||||||||||||||||||||||||
Total | 1 year | years | years | 5 years | Total | 1 year | years | years | 5 years | |||||||||||||||||||||||||||||
Operating Activities: | ||||||||||||||||||||||||||||||||||||||
Operating lease obligations(1) | $ | 229,732 | $ | 27,937 | $ | 41,779 | $ | 19,932 | $ | 140,084 | $ | 1,073,165 | $ | 127,920 | $ | 236,382 | $ | 210,322 | $ | 498,541 | ||||||||||||||||||
Interest on long-term debt(2) | 1,504,109 | 302,578 | 498,991 | 333,956 | 368,584 | |||||||||||||||||||||||||||||||||
Interest on debt(2) | 1,623,490 | 329,775 | 557,248 | 385,789 | 350,678 | |||||||||||||||||||||||||||||||||
Other(3) | 976,284 | 188,253 | 364,704 | 193,942 | 229,385 | 513,500 | 182,340 | 242,641 | 53,161 | 35,358 | ||||||||||||||||||||||||||||
Investing Activities: | 0 | 0 | ||||||||||||||||||||||||||||||||||||
Ship purchase obligations(4) | 9,199,772 | 1,752,333 | 3,179,667 | 3,016,319 | 1,251,453 | 8,882,624 | 1,893,475 | 3,664,481 | 2,121,241 | 1,203,427 | ||||||||||||||||||||||||||||
Financing Activities: | 0 | 0 | ||||||||||||||||||||||||||||||||||||
Long-term debt obligations(5) | 8,474,818 | 1,170,169 | 2,369,772 | 2,210,570 | 2,724,307 | |||||||||||||||||||||||||||||||||
Capital lease obligations(6) | 44,271 | 7,457 | 14,343 | 10,255 | 12,216 | |||||||||||||||||||||||||||||||||
Other(7) | 23,454 | 9,238 | 11,093 | 3,123 | — | |||||||||||||||||||||||||||||||||
Commercial paper(5) | 1,112,030 | 1,112,030 | — | — | — | |||||||||||||||||||||||||||||||||
Debt obligations(6) | 9,045,459 | 1,613,256 | 1,935,838 | 1,995,234 | 3,501,131 | |||||||||||||||||||||||||||||||||
Finance lease obligations(7) | 127,195 | 33,068 | 66,677 | 18,800 | 8,650 | |||||||||||||||||||||||||||||||||
Other(8) | 22,575 | 6,352 | 9,999 | 6,188 | 36 | |||||||||||||||||||||||||||||||||
Total | $ | 20,452,440 | $ | 3,457,965 | $ | 6,480,349 | $ | 5,788,097 | $ | 4,726,029 | $ | 22,400,038 | $ | 5,298,216 | $ | 6,713,266 | $ | 4,790,735 | $ | 5,597,821 |
(1) | We are obligated under noncancelable operating leases primarily for |
(2) | Long-term debt obligations mature at various dates through fiscal year |
(3) | Amounts primarily represent future commitments with remaining terms in excess of one year to pay for marine consumables, services and maintenance contracts, and our usage of certain port |
(4) | Amounts do not include potential obligations which remain subject to cancellation at our sole |
(5) | Refer to Note 8. Debt to our consolidated financial statements for further information. |
(6) | Amounts represent debt obligations with initial terms in excess of one year. Debt denominated in other currencies is calculated based on the applicable exchange rate at |
Amounts represent |
Amounts represent fees payable to sovereign guarantors in connection with certain of our export credit debt facilities and facility fees on our revolving credit facilities. |
Period | Total number of shares purchased | Average price paid per share | Total number of shares purchased as part of publicly announced plans or programs(1) | Approximate dollar value of shares that may yet be purchased under the plans or programs | |||
April 1, 2018 - April 30, 2018 | — | $— | — | $— | |||
May 1, 2018 - May 31, 2018 | — | $— | — | $1,000,000,000 | |||
June 1, 2018 - June 30, 2018 | 1,285,234 | $106.93 | 1,285,234 | $862,500,000 | |||
Total | 1,285,234 | 1,285,234 |
10.1 | |||
10.2 | |||
10.3 | |||
31.1 | |||
31.2 | |||
32.1 |
* | Filed herewith | |
** | Furnished herewith |
(ii) | the Consolidated Balance Sheets at |
ROYAL CARIBBEAN CRUISES LTD. | ||
(Registrant) | ||
/s/ JASON T. LIBERTY | ||
Jason T. Liberty | ||
Executive Vice President, Chief Financial Officer | ||
(Principal Financial Officer and duly authorized signatory) |