Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Dec. 31, 2014 | Feb. 12, 2015 | Jun. 30, 2014 |
Document and Entity Information | |||
Entity Registrant Name | ROYAL CARIBBEAN CRUISES LTD | ||
Entity Central Index Key | 884887 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $9.90 | ||
Entity Common Stock, Shares Outstanding | 219,620,652 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement [Abstract] | |||
Passenger ticket revenues | $5,893,847 | $5,722,718 | $5,594,595 |
Onboard and other revenues | 2,180,008 | 2,237,176 | 2,093,429 |
Total revenues | 8,073,855 | 7,959,894 | 7,688,024 |
Cruise operating expenses: | |||
Commissions, transportation and other | 1,372,785 | 1,314,595 | 1,289,255 |
Onboard and other | 582,750 | 568,615 | 529,453 |
Payroll and related | 847,641 | 841,737 | 828,198 |
Food | 478,130 | 469,653 | 449,649 |
Fuel | 947,391 | 924,414 | 909,691 |
Other operating | 1,077,584 | 1,186,256 | 1,151,188 |
Total cruise operating expenses | 5,306,281 | 5,305,270 | 5,157,434 |
Marketing, selling and administrative expenses | 1,048,952 | 1,044,819 | 1,011,543 |
Depreciation and amortization expenses | 772,445 | 754,711 | 730,493 |
Impairment of Pullmantur related assets | 385,444 | ||
Restructuring and related impairment charges | 4,318 | 56,946 | |
Total operating costs | 7,131,996 | 7,161,746 | 7,284,914 |
Operating Income | 941,859 | 798,148 | 403,110 |
Other income (expense): | |||
Interest income | 10,344 | 13,898 | 21,331 |
Interest expense, net of interest capitalized | -258,299 | -332,422 | -355,785 |
Extinguishment of unsecured senior notes | -4,206 | -7,501 | |
Other income (expense) (including $33.5 million deferred tax benefit related to the reversal of a valuation allowance in 2014 and ($28.5) million net deferred tax expense related to impairments in 2012) | 70,242 | -1,726 | -42,868 |
Total other income (expense) | -177,713 | -324,456 | -384,823 |
Net Income | 764,146 | 473,692 | 18,287 |
Basic Earnings per Share: | |||
Net income (in dollars per share) | $3.45 | $2.16 | $0.08 |
Diluted Earnings per Share: | |||
Net income (in dollars per share) | $3.43 | $2.14 | $0.08 |
Comprehensive (Loss) Income | |||
Net income | 764,146 | 473,692 | 18,287 |
Other comprehensive (loss) income: | |||
Foreign currency translation adjustments | -26,102 | 1,529 | -2,764 |
Change in defined benefit plans | -7,213 | 10,829 | -4,567 |
(Loss) gain on cash flow derivative hedges | -869,350 | 127,829 | -51,247 |
Total other comprehensive (loss) income | -902,665 | 140,187 | -58,578 |
Comprehensive (Loss) Income | ($138,519) | $613,879 | ($40,291) |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) (USD $) | 12 Months Ended | 3 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | |
Net deferred income tax (benefit) expense | ($44,437,000) | ($1,842,000) | $28,939,000 | |
Pullmantur | ||||
Net deferred income tax (benefit) expense | 28,500,000 | |||
Valuation allowance adjustment, deferred tax expense (benefit) | ($33,500,000) | ($33,500,000) |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets | ||
Cash and cash equivalents | $189,241 | $204,687 |
Trade and other receivables, net | 261,392 | 259,746 |
Inventories | 123,490 | 151,244 |
Prepaid expenses and other assets | 226,960 | 252,852 |
Derivative financial instruments | 87,845 | |
Total current assets | 801,083 | 956,374 |
Property and equipment, net | 18,235,568 | 17,517,752 |
Goodwill | 420,542 | 439,231 |
Other assets | 1,255,997 | 1,159,590 |
Total assets | 20,713,190 | 20,072,947 |
Current liabilities | ||
Current portion of long-term debt | 799,630 | 1,563,378 |
Accounts payable | 331,505 | 372,226 |
Accrued interest | 49,074 | 103,025 |
Accrued expenses and other liabilities | 635,138 | 539,414 |
Derivative financial instruments | 266,986 | 24,288 |
Customer deposits | 1,766,914 | 1,664,679 |
Total current liabilities | 3,849,247 | 4,267,010 |
Long-term debt | 7,644,318 | 6,511,426 |
Other long-term liabilities | 935,266 | 486,246 |
Commitments and contingencies (Note 15) | ||
Shareholders' equity | ||
Common stock ($0.01 par value; 500,000,000 shares authorized; 233,106,019 and 230,782,315 shares issued, December 31, 2014 and December 31, 2013, respectively) | 2,331 | 2,308 |
Paid-in capital | 3,253,552 | 3,159,038 |
Retained earnings | 6,575,248 | 6,054,952 |
Accumulated other comprehensive (loss) income | -896,994 | 5,671 |
Treasury stock (13,808,683 and 10,308,683 common shares at cost, December 31, 2014 and December 31, 2013, respectively) | -649,778 | -413,704 |
Total shareholders' equity | 8,284,359 | 8,808,265 |
Total liabilities and shareholders' equity | $20,713,190 | $20,072,947 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 233,106,019 | 230,782,315 |
Treasury stock, common shares | 13,808,683 | 10,308,683 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Activities | |||
Net income | $764,146 | $473,692 | $18,287 |
Adjustments: | |||
Depreciation and amortization | 772,445 | 754,711 | 730,493 |
Impairment charges | 385,444 | ||
Asset Impairment Charges Related to Restructuring | 0 | 33,514 | 0 |
Net deferred income tax (benefit) expense | -44,437 | -1,842 | 28,939 |
Loss on sale of ship | 17,401 | 0 | 0 |
Loss (gain) on derivative instruments not designated as hedges | 48,637 | 19,287 | -2,014 |
Loss on extinguishment of unsecured senior notes | 4,206 | 7,501 | |
Changes in operating assets and liabilities: | |||
Decrease in trade and other receivables, net | 100,095 | 95,401 | 8,026 |
Decrease (increase) in inventories | 26,254 | -4,321 | -1,645 |
Decrease (increase) in prepaid expenses and other assets | 41,077 | -22,657 | -1,614 |
(Decrease) increase in accounts payable | -40,651 | 18,957 | 36,602 |
Decrease in accrued interest | -53,951 | -3,341 | -15,786 |
Increase (decrease) in accrued expenses and other liabilities | 70,565 | -6,714 | 33,060 |
Increase in customer deposits | 14,885 | 37,077 | 103,733 |
Cash received on settlement of derivative financial instruments | 69,684 | ||
Dividends received from unconsolidated affiliates | 5,814 | 5,093 | |
Other, net | 21,479 | 9,005 | -18,976 |
Net cash provided by operating activities | 1,743,759 | 1,412,068 | 1,381,734 |
Investing Activities | |||
Purchases of property and equipment | -1,811,398 | -763,777 | -1,291,499 |
Cash paid on settlement of derivative financial instruments | -68,098 | -17,338 | -10,886 |
Investments in and loans to unconsolidated affiliates | -188,595 | -70,626 | |
Cash received on loan to unconsolidated affiliate | 76,167 | 23,372 | 23,512 |
Proceeds from sale of ships | 220,000 | 9,811 | |
Other, net | 1,546 | 3,831 | 5,739 |
Net cash used in investing activities | -1,770,378 | -824,538 | -1,263,323 |
Financing Activities | |||
Debt proceeds | 4,153,958 | 2,449,464 | 2,558,474 |
Debt issuance costs | -72,974 | -57,622 | -75,839 |
Repayments of debt | -3,724,218 | -2,856,481 | -2,561,290 |
Purchase of treasury stock | -236,074 | 0 | 0 |
Dividends paid | -198,952 | -143,629 | -117,707 |
Proceeds from exercise of common stock options | 70,879 | 30,125 | 15,146 |
Cash received on settlement of derivative financial instruments | 22,835 | 0 | 0 |
Other, net | 2,026 | 1,517 | 1,599 |
Net cash provided by (used in) financing activities | 17,480 | -576,626 | -179,617 |
Effect of exchange rate changes on cash | -6,307 | -1,072 | -6,125 |
Net (decrease) increase in cash and cash equivalents | -15,446 | 9,832 | -67,331 |
Cash and cash equivalents at beginning of year | 204,687 | 194,855 | 262,186 |
Cash and cash equivalents at end of year | 189,241 | 204,687 | 194,855 |
Cash paid during the year for: | |||
Interest, net of amount capitalized | 276,933 | 319,476 | 341,047 |
Non cash Investing Activities | |||
Purchase of property and equipment through asset trade-in | $0 | $46,375 |
CONSOLIDATED_STATEMENTS_OF_SHA
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $) | Total | Common Stock | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | |
In Thousands, unless otherwise specified | |||||||
Balance at Dec. 31, 2011 | $8,407,823 | $2,276 | $3,071,759 | $5,823,430 | ($75,938) | ($413,704) | |
Increase (Decrease) in Stockholders' Equity | |||||||
Issuance under employee related plans | 38,143 | 15 | 38,128 | ||||
Common Stock dividends | -95,979 | -95,979 | |||||
Dividends declared by non-controlling interest | [1] | -947 | -947 | ||||
Changes related to cash flow derivative hedges | -51,247 | -51,247 | |||||
Change in defined benefit plans | -4,567 | -4,567 | |||||
Foreign currency translation adjustments | -2,764 | -2,764 | |||||
Net income | 18,287 | 18,287 | |||||
Balance at Dec. 31, 2012 | 8,308,749 | 2,291 | 3,109,887 | 5,744,791 | -134,516 | -413,704 | |
Increase (Decrease) in Stockholders' Equity | |||||||
Issuance under employee related plans | 49,168 | 17 | 49,151 | ||||
Common Stock dividends | -162,727 | -162,727 | |||||
Dividends declared by non-controlling interest | [1] | -804 | -804 | ||||
Changes related to cash flow derivative hedges | 127,829 | 127,829 | |||||
Change in defined benefit plans | 10,829 | 10,829 | |||||
Foreign currency translation adjustments | 1,529 | 1,529 | |||||
Net income | 473,692 | 473,692 | |||||
Balance at Dec. 31, 2013 | 8,808,265 | 2,308 | 3,159,038 | 6,054,952 | 5,671 | -413,704 | |
Increase (Decrease) in Stockholders' Equity | |||||||
Issuance under employee related plans | 94,537 | 23 | 94,514 | ||||
Common Stock dividends | -243,550 | -243,550 | |||||
Dividends declared by non-controlling interest | [2] | -300 | -300 | ||||
Changes related to cash flow derivative hedges | -869,350 | -869,350 | |||||
Change in defined benefit plans | -7,213 | -7,213 | |||||
Foreign currency translation adjustments | -26,102 | -26,102 | |||||
Treasury Stock, Value | -236,074 | -236,074 | |||||
Net income | 764,146 | 764,146 | |||||
Balance at Dec. 31, 2014 | $8,284,359 | $2,331 | $3,253,552 | $6,575,248 | ($896,994) | ($649,778) | |
[1] | Dividends declared by Pullmantur Air,B S.A. to its non-controlling shareholder. | ||||||
[2] | Dividends declared by Falmouth Land Company Limited to its non-controlling shareholder. |
CONSOLIDATED_STATEMENTS_OF_SHA1
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Accumulated net gain (loss) on cash flow derivative hedges at beginning of year | $43,324 | ($84,505) | ($33,258) |
Net (loss) gain on cash flow derivative hedges | -903,830 | 197,428 | 58,138 |
Net (gain) loss reclassified into earnings | 34,480 | -69,599 | -109,385 |
Accumulated net gain (loss) on cash flow derivative hedges at end of year | ($826,026) | $43,324 | ($84,505) |
General
General | 12 Months Ended |
Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | General |
Description of Business | |
We are a global cruise company. We own Royal Caribbean International, Celebrity Cruises, Pullmantur, Azamara Club Cruises, CDF Croisières de France and a 50% joint venture interest in TUI Cruises. Together, these six brands operate a combined 43 ships as of December 31, 2014. Our ships operate on a selection of worldwide itineraries that call on approximately 480 destinations on all seven continents. | |
Basis for Preparation of Consolidated Financial Statements | |
The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Estimates are required for the preparation of financial statements in accordance with these principles. Actual results could differ from these estimates. See Note 2. Summary of Significant Accounting Policies for a discussion of our significant accounting policies. | |
All significant intercompany accounts and transactions are eliminated in consolidation. We consolidate entities over which we have control, usually evidenced by a direct ownership interest of greater than 50%, and variable interest entities where we are determined to be the primary beneficiary. See Note 6. Other Assets for further information regarding our variable interest entities. For affiliates we do not control but over which we have significant influence on financial and operating policies, usually evidenced by a direct ownership interest from 20% to 50%, the investment is accounted for using the equity method. We consolidate the operating results of Pullmantur and CDF Croisières de France on a two-month lag to allow for more timely preparation of our consolidated financial statements. On March 31, 2014, Pullmantur sold the majority of its interest in its non-core businesses. These non-core businesses included Pullmantur’s land-based tour operations, travel agency and 49% interest in its air business. See Note 16. Restructuring Charges and Related Impairment Charges for further discussion on the Pullmantur sales transaction. No material events or transactions affecting Pullmantur or CDF Croisières de France have occurred during the two-month lag period of November and December 2014 that would require disclosure or adjustment to our consolidated financial statements as of December 31, 2014. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Accounting Policies [Abstract] | ||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies | |||||
Revenues and Expenses | ||||||
Deposits received on sales of passenger cruises are initially recorded as customer deposit liabilities on our balance sheet. Customer deposits are subsequently recognized as passenger ticket revenues, together with revenues from onboard and other goods and services and all associated cruise operating expenses of a voyage. | ||||||
Historically, we recognized revenues and cruise operating expenses for our shorter voyages (voyages of ten days or less) upon voyage completion while we recognized revenues and cruise operating expenses for voyages in excess of ten days on a pro-rata basis. We followed this completed voyage recognition approach on our shorter voyages because the difference between prorating revenue from such voyages and recognizing such revenue at the completion of the voyage was immaterial to our consolidated financial statements. As of September 30, 2014, we changed our methodology and recognized passenger ticket revenues, revenues from onboard and other goods and services and all associated cruise operating expenses for all of our uncompleted voyages on a pro-rata basis. We believe that recognizing revenues and cruise operating expenses on a pro-rata basis for all voyages is preferable as revenues and expenses are recorded in the period in which the revenue generating activities are performed. | ||||||
The effect of this change was an increase to Passenger ticket revenues and Onboard and other revenues, as well as an increase to our Cruise operating expenses. The change was not individually material to our revenues or any of our cruise operating expenses, and resulted in an aggregate increase to operating income and net income of $53.2 million, or $0.24 per diluted share, for the year ended December 31, 2014. In addition, the change has not been retrospectively applied to prior periods, as the impact of prorating all voyages was immaterial to the respective periods presented. | ||||||
Revenues and expenses include port costs that vary with guest head counts. The amounts of such port costs included in Passenger ticket revenues on a gross basis were $546.6 million, $494.2 million and $459.8 million for the years 2014, 2013 and 2012, respectively. | ||||||
Cash and Cash Equivalents | ||||||
Cash and cash equivalents include cash and marketable securities with original maturities of less than 90 days. | ||||||
Inventories | ||||||
Inventories consist of provisions, supplies and fuel carried at the lower of cost (weighted-average) or market. | ||||||
Property and Equipment | ||||||
Property and equipment are stated at cost less accumulated depreciation and amortization. We capitalize interest as part of the cost of acquiring certain assets. Improvement costs that we believe add value to our ships are capitalized as additions to the ship and depreciated over the shorter of the improvements' estimated useful lives or that of the associated ship. The estimated cost and accumulated depreciation of replaced or refurbished ship components are written off and any resulting losses are recognized in Cruise operating expenses. Liquidated damages received from shipyards as a result of the late delivery of a new ship are recorded as reductions to the cost basis of the ship. | ||||||
Depreciation of property and equipment is computed using the straight-line method over the estimated useful life of the asset. The useful lives of our ships are generally 30 years, net of a 15% projected residual value. The 30-year useful life of our newly constructed ships and 15% associated residual value are both based on the weighted-average of all major components of a ship. Our useful life and residual value estimates take into consideration the impact of anticipated technological changes, long-term cruise and vacation market conditions and historical useful lives of similarly-built ships. In addition, we take into consideration our estimates of the weighted-average useful lives of the ships' major component systems, such as hull, superstructure, main electric, engines and cabins. Depreciation for assets under capital leases is computed using the shorter of the lease term or related asset life. | ||||||
Depreciation of property and equipment is computed utilizing the following useful lives: | ||||||
Years | ||||||
Ships | generally 30 | |||||
Ship improvements | 20-Mar | |||||
Buildings and improvements | Oct-40 | |||||
Computer hardware and software | 5-Mar | |||||
Transportation equipment and other | 30-Mar | |||||
Leasehold improvements | Shorter of remaining lease term or useful life 3-30 | |||||
Effective January 1, 2013, we revised the estimated useful lives of five ships from 30 years with a 15% associated residual value, to 35 years with a 10% associated residual value. The change in the estimated useful lives and associated residual value was accounted for prospectively as a change in accounting estimate. The 35-year useful life with a 10% associated residual value is based on revised estimates of the weighted-average useful life of all major ship components for these ships. The change in estimate is consistent with our recent investments in and future plans to continue to invest in the upgrade of these ships and the use of certain ship components longer than originally estimated. The change allows us to better match depreciation expense with the periods these assets are expected to be in use. For the full year 2013, this change increased operating income and net income by approximately $11.0 million and increased earnings per share by $0.05 per share on a basic and diluted basis. | ||||||
We review long-lived assets for impairment whenever events or changes in circumstances indicate, based on estimated undiscounted future cash flows, that the carrying amount of these assets may not be fully recoverable. For purposes of recognition and measurement of an impairment loss, long-lived assets are grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. The lowest level for which we maintain identifiable cash flows that are independent of the cash flows of other assets and liabilities is at the ship level for our ships and at the aggregated asset group level for our aircraft. If estimated future cash flows are less than the carrying value of an asset, an impairment charge is recognized to the extent its carrying value exceeds fair value. | ||||||
We use the deferral method to account for drydocking costs. Under the deferral method, drydocking costs incurred are deferred and charged to expense on a straight-line basis over the period to the next scheduled drydock, which we estimate to be a period of thirty to sixty months based on the vessel's age as required by Class. Deferred drydock costs consist of the costs to drydock the vessel and other costs incurred in connection with the drydock which are necessary to maintain the vessel's Class certification. Class certification is necessary in order for our cruise ships to be flagged in a specific country, obtain liability insurance and legally operate as passenger cruise ships. The activities associated with those drydocking costs cannot be performed while the vessel is in service and, as such, are done during a drydock as a planned major maintenance activity. The significant deferred drydock costs consist of hauling and wharfage services provided by the drydock facility, hull inspection and related activities (e.g., scraping, pressure cleaning, bottom painting), maintenance to steering propulsion, thruster equipment and ballast tanks, port services such as tugs, pilotage and line handling, and freight associated with these items. We perform a detailed analysis of the various activities performed for each drydock and only defer those costs that are directly related to planned major maintenance activities necessary to maintain Class. The costs deferred are not otherwise routinely periodically performed to maintain a vessel's designed and intended operating capability. Repairs and maintenance activities are charged to expense as incurred. | ||||||
Goodwill | ||||||
Goodwill represents the excess of cost over the fair value of net tangible and identifiable intangible assets acquired. We review goodwill for impairment at the reporting unit level annually or, when events or circumstances dictate, more frequently. The impairment review for goodwill consists of a qualitative assessment of whether it is more-likely-than-not that a reporting unit's fair value is less than its carrying amount, and if necessary, a two-step goodwill impairment test. Factors to consider when performing the qualitative assessment include general economic conditions, limitations on accessing capital, changes in forecasted operating results, changes in fuel prices and fluctuations in foreign exchange rates. If the qualitative assessment demonstrates that it is more-likely-than-not that the estimated fair value of the reporting unit exceeds its carrying value, it is not necessary to perform the two-step goodwill impairment test. We may elect to bypass the qualitative assessment and proceed directly to step one, for any reporting unit, in any period. We can resume the qualitative assessment for any reporting unit in any subsequent period. When performing the two-step goodwill impairment test, the fair value of the reporting unit is determined and compared to the carrying value of the net assets allocated to the reporting unit. If the fair value of the reporting unit exceeds its carrying value, no further analysis or write-down of goodwill is required. If the fair value of the reporting unit is less than the carrying value of its net assets, the implied fair value of the reporting unit is allocated to all its underlying assets and liabilities, including both recognized and unrecognized tangible and intangible assets, based on their fair value. If necessary, goodwill is then written down to its implied fair value. | ||||||
Intangible Assets | ||||||
In connection with our acquisitions, we have acquired certain intangible assets to which value has been assigned based on our estimates. Intangible assets that are deemed to have an indefinite life are not amortized, but are subject to an annual impairment test, or when events or circumstances dictate, more frequently. The indefinite-life intangible asset impairment test consists of a comparison of the fair value of the indefinite-life intangible asset with its carrying amount. If the carrying amount exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. If the fair value exceeds its carrying amount, the indefinite-life intangible asset is not considered impaired. | ||||||
Other intangible assets assigned finite useful lives are amortized on a straight-line basis over their estimated useful lives. | ||||||
Contingencies —Litigation | ||||||
On an ongoing basis, we assess the potential liabilities related to any lawsuits or claims brought against us. While it is typically very difficult to determine the timing and ultimate outcome of such actions, we use our best judgment to determine if it is probable that we will incur an expense related to the settlement or final adjudication of such matters and whether a reasonable estimation of such probable loss, if any, can be made. In assessing probable losses, we take into consideration estimates of the amount of insurance recoveries, if any, which are recorded as assets when recoverability is probable. We accrue a liability when we believe a loss is probable and the amount of loss can be reasonably estimated. Due to the inherent uncertainties related to the eventual outcome of litigation and potential insurance recoveries, it is possible that certain matters may be resolved for amounts materially different from any provisions or disclosures that we have previously made. | ||||||
Advertising Costs | ||||||
Advertising costs are expensed as incurred except those costs which result in tangible assets, such as brochures, which are treated as prepaid expenses and charged to expense as consumed. Advertising costs consist of media advertising as well as brochure, production and direct mail costs. | ||||||
Media advertising was $205.2 million, $205.8 million and $200.9 million, and brochure, production and direct mail costs were $136.7 million, $137.1 million and $130.4 million for the years 2014, 2013 and 2012, respectively. | ||||||
Derivative Instruments | ||||||
We enter into various forward, swap and option contracts to manage our interest rate exposure and to limit our exposure to fluctuations in foreign currency exchange rates and fuel prices. These instruments are recorded on the balance sheet at their fair value and the vast majority are designated as hedges. We also have non-derivative financial instruments designated as hedges of our net investment in our foreign operations and investments. Although certain of our derivative financial instruments do not qualify or are not accounted for under hedge accounting, we do not hold or issue derivative financial instruments for trading or other speculative purposes. | ||||||
At inception of the hedge relationship, a derivative instrument that hedges the exposure to changes in the fair value of a firm commitment or a recognized asset or liability is designated as a fair value hedge. A derivative instrument that hedges a forecasted transaction or the variability of cash flows related to a recognized asset or liability is designated as a cash flow hedge. | ||||||
Changes in the fair value of derivatives that are designated as fair value hedges are offset against changes in the fair value of the underlying hedged assets, liabilities or firm commitments. Gains and losses on derivatives that are designated as cash flow hedges are recorded as a component of Accumulated other comprehensive (loss) income until the underlying hedged transactions are recognized in earnings. The foreign currency transaction gain or loss of our non-derivative financial instruments designated as hedges of our net investment in foreign operations and investments are recognized as a component of Accumulated other comprehensive (loss) income along with the associated foreign currency translation adjustment of the foreign operation. | ||||||
On an ongoing basis, we assess whether derivatives used in hedging transactions are "highly effective" in offsetting changes in the fair value or cash flow of hedged items. We use the long-haul method to assess hedge effectiveness using regression analysis for each hedge relationship under our interest rate, foreign currency and fuel hedging programs. We apply the same methodology on a consistent basis for assessing hedge effectiveness to all hedges within each hedging program (i.e., interest rate, foreign currency and fuel). We perform regression analyses over an observation period of up to three years, utilizing market data relevant to the hedge horizon of each hedge relationship. High effectiveness is achieved when a statistically valid relationship reflects a high degree of offset and correlation between the changes in the fair values of the derivative instrument and the hedged item. The determination of ineffectiveness is based on the amount of dollar offset between the change in fair value of the derivative instrument and the change in fair value of the hedged item at the end of the reporting period. If it is determined that a derivative is not highly effective as a hedge or hedge accounting is discontinued, any change in fair value of the derivative since the last date at which it was determined to be effective is recognized in earnings. In addition, the ineffective portion of our highly effective hedges is immediately recognized in earnings and reported in Other income (expense) in our consolidated statements of comprehensive income (loss). | ||||||
Cash flows from derivative instruments that are designated as fair value or cash flow hedges are classified in the same category as the cash flows from the underlying hedged items. In the event that hedge accounting is discontinued, cash flows subsequent to the date of discontinuance are classified within investing activities. Cash flows from derivative instruments not designated as hedging instruments are classified as investing activities. | ||||||
We consider the classification of the underlying hedged item’s cash flows in determining the classification for the designated derivative instrument’s cash flows. We classify derivative instrument cash flows from hedges of benchmark interest rate or hedges of fuel expense as operating activities due to the nature of the hedged item. Likewise, we classify derivative instrument cash flows from hedges of foreign currency risk on our newbuild ship payments as investing activities and derivative instrument cash flows from hedges of foreign currency risk on debt payments as financing activities. | ||||||
Foreign Currency Translations and Transactions | ||||||
We translate assets and liabilities of our foreign subsidiaries whose functional currency is the local currency, at exchange rates in effect at the balance sheet date. We translate revenues and expenses at weighted-average exchange rates for the period. Equity is translated at historical rates and the resulting foreign currency translation adjustments are included as a component of Accumulated other comprehensive (loss) income, which is reflected as a separate component of Shareholders' equity. Exchange gains or losses arising from the remeasurement of monetary assets and liabilities denominated in a currency other than the functional currency of the entity involved are immediately included in our earnings, except for certain liabilities that have been designated to act as a hedge of a net investment in a foreign operation or investment. Exchange gains (losses) were $49.5 million, $13.4 million and $(11.8) million for the years 2014, 2013 and 2012, respectively, and were recorded within Other income (expense). The majority of our transactions are settled in United States dollars. Gains or losses resulting from transactions denominated in other currencies are recognized in income at each balance sheet date. | ||||||
Concentrations of Credit Risk | ||||||
We monitor our credit risk associated with financial and other institutions with which we conduct significant business and, to minimize these risks, we select counterparties with credit risks acceptable to us and we seek to limit our exposure to an individual counterparty. Credit risk, including but not limited to counterparty nonperformance under derivative instruments, our credit facilities and new ship progress payment guarantees, is not considered significant, as we primarily conduct business with large, well-established financial institutions, insurance companies and export credit agencies many of which we have long-term relationships with and which have credit risks acceptable to us or where the credit risk is spread out among a large number of counterparties. As of December 31, 2014, we did not have any counterparty credit risk exposure under our derivative instruments. As of December 31, 2013, we had counterparty credit risk exposure under our derivative instruments of approximately $92.5 million, which was limited to the cost of replacing the contracts in the event of non-performance by the counterparties to the contracts, all of which are currently our lending banks. We do not anticipate nonperformance by any of our significant counterparties. In addition, we have established guidelines we follow regarding credit ratings and instrument maturities to maintain safety and liquidity. We do not normally require collateral or other security to support credit relationships; however, in certain circumstances this option is available to us. | ||||||
Earnings Per Share | ||||||
Basic earnings per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during each period. Diluted earnings per share incorporates the incremental shares issuable upon the assumed exercise of stock options and conversion of potentially dilutive securities. | ||||||
Stock-Based Employee Compensation | ||||||
We measure and recognize compensation expense at the estimated fair value of employee stock awards. Compensation expense for awards and the related tax effects are recognized as they vest. We use the estimated amount of expected forfeitures to calculate compensation costs for all outstanding awards. | ||||||
Segment Reporting | ||||||
We operate five wholly-owned cruise brands, Royal Caribbean International, Celebrity Cruises, Azamara Club Cruises, Pullmantur and CDF Croisières de France. In addition, we have a 50% investment in a joint venture with TUI AG which operates the brand TUI Cruises. We believe our global brands possess the versatility to enter multiple cruise market segments within the cruise vacation industry. Although each of our brands has its own marketing style as well as ships and crews of various sizes, the nature of the products sold and services delivered by our brands share a common base (i.e., the sale and provision of cruise vacations). Our brands also have similar itineraries as well as similar cost and revenue components. In addition, our brands source passengers from similar markets around the world and operate in similar economic environments with a significant degree of commercial overlap. As a result, our brands (including TUI Cruises) have been aggregated as a single reportable segment based on the similarity of their economic characteristics, types of consumers, regulatory environment, maintenance requirements, supporting systems and processes as well as products and services provided. Our Chairman and Chief Executive Officer has been identified as the chief operating decision-maker and all significant operating decisions including the allocation of resources are based upon the analyses of the Company as one segment. | ||||||
Information by geographic area is shown in the table below. Passenger ticket revenues are attributed to geographic areas based on where the reservation originates. | ||||||
2014 | 2013 | 2012 | ||||
Passenger ticket revenues: | ||||||
United States | 53% | 52% | 51% | |||
All other countries | 47% | 48% | 49% | |||
Recent Accounting Pronouncements | ||||||
In January 2014, amended guidance was issued regarding the accounting for service concession arrangements. The new guidance defines a service concession as an arrangement between a public-sector entity grantor and an operating entity under which the operating entity operates and maintains the grantor’s infrastructure for a specified period of time and in return receives payments from the grantor and or third-party user for use of the infrastructure. The guidance prohibits the operating entity from accounting for a service concession arrangement as a lease and from recording the infrastructure used in the arrangement within property, plant and equipment. This guidance must be applied using a modified retrospective approach and will be effective for our interim and annual reporting periods beginning after December 15, 2014. Early adoption is permitted. The adoption of this newly issued guidance is not expected to have a material impact to our consolidated financial statements. | ||||||
In April 2014, amended guidance was issued changing the requirements for reporting discontinued operations and enhancing the disclosures in this area. The new guidance requires a disposal of a component of an entity or a group of components of an entity to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity's operations and financial results. The guidance will be effective prospectively for our interim and annual reporting periods beginning after December 15, 2014. The guidance will impact the reporting and disclosures of future disposals, if any. | ||||||
In May 2014, amended guidance was issued to clarify the principles used to recognize revenue for all entities. The guidance is based on the principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard also requires more detailed disclosures and provides additional guidance for transactions that were not comprehensively addressed in the prior accounting guidance. This guidance must be applied using one of two retrospective application methods and will be effective for our interim and annual reporting periods beginning after December 15, 2016. Early adoption is not permitted. We are currently evaluating the impact of the adoption of this newly issued guidance to our consolidated financial statements. | ||||||
In August 2014, guidance was issued requiring management to evaluate, at each annual and interim reporting period, whether there are conditions or events that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date the financial statements are issued and provide related disclosures. This guidance will be effective for our annual reporting period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early adoption is permitted. The adoption of this newly issued guidance is not expected to have an impact to our consolidated financial statements. | ||||||
In January 2015, amended guidance was issued changing the requirements for reporting extraordinary and unusual items in the income statement. The update eliminates the concept of extraordinary items. The presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained and will be expanded to include items that are both unusual in nature and infrequently occurring. A reporting entity may apply the amendments prospectively or retrospectively to all periods presented in the financial statements. The guidance will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The adoption of this newly issued guidance is not expected to have an impact to our consolidated financial statements. | ||||||
In February 2015, amended guidance was issued affecting current consolidation guidance. The guidance changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. This guidance must be applied using one of two retrospective application methods and will be effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in any interim period. We are currently evaluating the impact, if any, of the adoption of this newly issued guidance to our consolidated financial statements. | ||||||
Reclassifications | ||||||
As of December 31, 2013, $24.3 million has been reclassified in the consolidated balance sheet from Accrued expenses and other liabilities to Derivative financial instruments within Total current liabilities in order to conform to the current year presentation. | ||||||
For the years ended December 31, 2013 and December 31, 2012, a net deferred income tax benefit (expense) of $1.8 million and $(0.5) million, respectively, have been reclassified in the consolidated statements of cash flows from Other, net to Net deferred income tax (benefit) expense within Net cash provided by operating activities in order to conform to the current year presentation. |
Goodwill
Goodwill | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Goodwill [Abstract] | ||||||||||||
Goodwill | Goodwill | |||||||||||
The carrying amount of goodwill attributable to our Royal Caribbean International and Pullmantur reporting units was as follows (in thousands): | ||||||||||||
Royal | Pullmantur | Total | ||||||||||
Caribbean | ||||||||||||
International | ||||||||||||
Balance at December 31, 2012 | $ | 287,436 | $ | 145,539 | $ | 432,975 | ||||||
Foreign currency translation adjustment | (312 | ) | 6,568 | 6,256 | ||||||||
Balance at December 31, 2013 | $ | 287,124 | $ | 152,107 | $ | 439,231 | ||||||
Foreign currency translation adjustment | (166 | ) | (18,523 | ) | (18,689 | ) | ||||||
Balance at December 31, 2014 | $ | 286,958 | $ | 133,584 | $ | 420,542 | ||||||
In 2012, we determined the implied fair value of goodwill for the Pullmantur reporting unit was $145.5 million and recognized an impairment charge of $319.2 million based on a probability-weighted discounted cash flow model further discussed below. This impairment charge was recognized in earnings during the fourth quarter of 2012 and is reported within Impairment of Pullmantur related assets within our consolidated statements of comprehensive income (loss). | ||||||||||||
During the fourth quarter of 2014, we performed a qualitative assessment of whether it was more-likely-than-not that our Royal Caribbean International reporting unit's fair value was less than its carrying amount before applying the two-step goodwill impairment test. The qualitative analysis included assessing the impact of certain factors such as general economic conditions, limitations on accessing capital, changes in forecasted operating results, changes in fuel prices and fluctuations in foreign exchange rates. Based on our qualitative assessment, we concluded that it was more-likely-than-not that the estimated fair value of the Royal Caribbean International reporting unit exceeded its carrying value and thus, we did not proceed to the two-step goodwill impairment test. No indicators of impairment exist primarily because the reporting unit's fair value has consistently exceeded its carrying value by a significant margin, its financial performance has been solid in the face of mixed economic environments and forecasts of operating results generated by the reporting unit appear sufficient to support its carrying value. | ||||||||||||
We also performed our annual impairment review of goodwill for Pullmantur's reporting unit during the fourth quarter of 2014. We did not perform a qualitative assessment but instead proceeded directly to the two-step goodwill impairment test. We estimated the fair value of the Pullmantur reporting unit using a probability-weighted discounted cash flow model. The principal assumptions used in the discounted cash flow model are projected operating results, weighted-average cost of capital, and terminal value. Significantly impacting these assumptions are the transfer of vessels from our other cruise brands to Pullmantur. The discounted cash flow model used our 2015 projected operating results as a base. To that base, we added future years' cash flows assuming multiple revenue and expense scenarios that reflect the impact of different global economic environments beyond 2015 on Pullmantur's reporting unit. We assigned a probability to each revenue and expense scenario. | ||||||||||||
We discounted the projected cash flows using rates specific to Pullmantur's reporting unit based on its weighted-average cost of capital. Based on the probability-weighted discounted cash flows, we determined the fair value of the Pullmantur reporting unit exceeded its carrying value by approximately 52% resulting in no impairment to Pullmantur's goodwill. | ||||||||||||
Pullmantur is a brand targeted primarily at the Spanish, Portuguese and Latin American markets, with an increasing focus on Latin America. The persistent economic instability in these markets has created significant uncertainties in forecasting operating results and future cash flows used in our impairment analyses. We continue to monitor economic events in these markets for their potential impact on Pullmantur’s business and valuation. Further, the estimation of fair value utilizing discounted expected future cash flows includes numerous uncertainties which require our significant judgment when making assumptions of expected revenues, operating costs, marketing, selling and administrative expenses, interest rates, ship additions and retirements as well as assumptions regarding the cruise vacation industry's competitive environment and general economic and business conditions, among other factors. | ||||||||||||
If there are changes to the projected future cash flows used in the impairment analyses, especially in Net Yields or if certain transfers of vessels from our other cruise brands to the Pullmantur fleet do not take place, it is possible that an impairment charge of Pullmantur’s reporting unit’s goodwill may be required. Of these factors, the planned transfers of vessels to the Pullmantur fleet is most significant to the projected future cash flows. If the transfers do not occur, we will likely fail step one of the impairment test. |
Intangible_Assets
Intangible Assets | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||||||||
Intangible Assets | Intangible Assets | |||||||
Intangible assets are reported in Other assets in our consolidated balance sheets and consist of the following (in thousands): | ||||||||
2014 | 2013 | |||||||
Indefinite-life intangible asset—Pullmantur trademarks and trade names | $ | 214,112 | $ | 204,866 | ||||
Foreign currency translation adjustment | (26,074 | ) | 9,246 | |||||
Total | $ | 188,038 | $ | 214,112 | ||||
During the fourth quarter of 2014, 2013 and 2012, we performed the annual impairment review of Pullmantur's trademarks and trade names using a discounted cash flow model and the relief-from-royalty method to compare the fair value of these indefinite-lived intangible assets to its carrying value. The royalty rate used is based on comparable royalty agreements in the tourism and hospitality industry. We used a discount rate comparable to the rate used in valuing the Pullmantur reporting unit in our goodwill impairment test. Based on the results of our testing, we did not record an impairment of Pullmantur's tradenames and trademarks for the year ended December 31, 2014 and December 31, 2013, but for the year ended December 31, 2012, we recorded an impairment of $17.4 million. During our 2014 annual impairment review, we determined the fair value of the trademarks and trade names exceeded its carrying value by approximately 4% resulting in no impairment to Pullmantur's trademarks and tradenames. | ||||||||
As described in Note 3. Goodwill, the persistent economic instability in Pullmantur's markets has created significant uncertainties in forecasting operating results and future cash flows used in our impairment analysis. We continue to monitor economic events in these markets for their potential impact on Pullmantur’s business and valuation. Further, the estimation of fair value utilizing discounted expected future cash flows includes numerous uncertainties which require our significant judgment when making assumptions of expected revenues, operating costs, marketing, selling and administrative expenses, interest rates, ship additions and retirements as well as assumptions regarding the cruise vacation industry's competitive environment and general economic and business conditions, among other factors. If there are changes to the projected future cash flows used in the impairment analysis, especially in Net Yields or if certain transfers of vessels from our other cruise brands to the Pullmantur fleet do not take place, an impairment charge with respect to the Pullmantur reporting unit’s trademarks and trade names will likely be required. | ||||||||
Finite-life intangible assets and related accumulated amortization are immaterial to our 2014, 2013, and 2012 consolidated financial statements. |
Property_and_Equipment
Property and Equipment | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property and Equipment | Property and Equipment | |||||||
Property and equipment consists of the following (in thousands): | ||||||||
2014 | 2013 | |||||||
Ships | $ | 21,620,336 | $ | 20,858,553 | ||||
Ship improvements | 1,904,524 | 1,683,644 | ||||||
Ships under construction | 561,779 | 563,676 | ||||||
Land, buildings and improvements, including leasehold improvements and port facilities | 349,339 | 394,120 | ||||||
Computer hardware and software, transportation equipment and other | 889,579 | 771,304 | ||||||
Total property and equipment | 25,325,557 | 24,271,297 | ||||||
Less—accumulated depreciation and amortization | (7,089,989 | ) | (6,753,545 | ) | ||||
$ | 18,235,568 | $ | 17,517,752 | |||||
Ships under construction include progress payments for the construction of new ships as well as planning, design, interest and other associated costs. We capitalized interest costs of $28.8 million, $17.9 million and $13.3 million for the years 2014, 2013 and 2012, respectively. | ||||||||
In 2014, our conditional agreement with STX France to build the fourth Oasis-class ship for Royal Caribbean International became effective. Refer to Note 15. Commitments and Contingencies for further information. | ||||||||
During 2014, we sold Celebrity Century to a subsidiary of Skysea Holding International Ltd. ("Skysea Holding") for $220.0 million in cash. We agreed to charter the Celebrity Century from the buyer until April 2015 to fulfill existing passenger commitments. The sale resulted in a loss of $17.4 million that was recognized in earnings during the third quarter of 2014 and is reported within Other operating expenses in our consolidated statements of comprehensive income (loss). We subsequently acquired a 35% equity stake in Skysea Holding in November 2014. See Note 6. Other Assets for further discussion. | ||||||||
In December 2014, we terminated the leasing of Brilliance of the Seas under the 25 year operating lease originally entered into in July 2002, denominated in British pound sterling. As part of the agreement, we purchased the Brilliance of the Seas for a net settlement purchase price of approximately £175.4 million or $275.4 million. At the date of purchase, the total carrying amount of the ship, including capital improvements previously accounted for as leasehold improvements, was $330.5 million which approximated the estimated fair market value of the ship. We funded the purchase using proceeds from our $1.2 billion unsecured revolving credit facility. See Note 7. Long-Term Debt for further information. | ||||||||
During 2013, the fair value of Pullmantur's aircraft were determined to be less than their carrying value and a restructuring related impairment charge of $13.5 million was recognized in earnings during the fourth quarter of 2013 and reported within Restructuring and related impairment charges within our consolidated statements of comprehensive income (loss). Furthermore, in 2012, the fair value of Pullmantur's aircraft were determined to be less than their carrying value and an impairment charge of $48.9 million was recognized in earnings during the fourth quarter of 2012 and reported within Impairment of Pullmantur related assets within our consolidated statements of comprehensive income (loss). | ||||||||
Additionally, Pullmantur's non-core businesses met the accounting criteria to be classified as held for sale during the fourth quarter of 2013 which led to restructuring related impairment charges of $18.2 million to adjust the carrying value of property and equipment held for sale to its fair value, less cost to sell. The impairment charge was reported in Restructuring and related impairment charges in our consolidated statements of comprehensive income (loss). The remaining long-lived assets held for sale were not material to our December 31, 2013 consolidated financial statements and no longer exist as of December 31, 2014. See Note 14. Fair Value Measurements and Derivative Instruments and Note 16. Restructuring and Related Impairment Charges for further discussion. |
Other_Assets
Other Assets | 12 Months Ended |
Dec. 31, 2014 | |
Other Assets [Abstract] | |
Other Assets | Other Assets |
A Variable Interest Entity ("VIE") is an entity in which the equity investors have not provided enough equity to finance the entity's activities or the equity investors (1) cannot directly or indirectly make decisions about the entity's activities through their voting rights or similar rights; (2) do not have the obligation to absorb the expected losses of the entity; (3) do not have the right to receive the expected residual returns of the entity; or (4) have voting rights that are not proportionate to their economic interests and the entity's activities involve or are conducted on behalf of an investor with a disproportionately small voting interest. | |
We have determined that Grand Bahama Shipyard Ltd. ("Grand Bahama"), a ship repair and maintenance facility in which we have a 40% noncontrolling interest, is a VIE. The facility serves cruise and cargo ships, oil and gas tankers, and offshore units. We utilize this facility, among other ship repair facilities, for our regularly scheduled drydocks and certain emergency repairs as may be required. We have determined that we are not the primary beneficiary of this facility, as we do not have the power to direct the activities that most significantly impact the facility's economic performance. Accordingly, we do not consolidate this entity and we account for this investment under the equity method of accounting. As of December 31, 2014, the net book value of our investment in Grand Bahama was approximately $53.8 million, consisting of $7.7 million in equity and $46.1 million in loans. As of December 31, 2013, the net book value of our investment in Grand Bahama was approximately $56.1 million, consisting of $6.4 million in equity and $49.7 million in loans. These amounts represent our maximum exposure to loss as we are not contractually required to provide any financial or other support to the facility. The majority of our loans to Grand Bahama are in non-accrual status and the majority of this amount was included within Other assets in our consolidated balance sheets. We received approximately $3.6 million and $6.2 million in principal and interest payments related to loans that are in accrual status from Grand Bahama in 2014 and 2013, respectively, and recorded income associated with our investment in Grand Bahama. We monitor credit risk associated with these loans through our participation on Grand Bahama's board of directors along with our review of Grand Bahama's financial statements and projected cash flows. Based on this review, we believe the risk of loss associated with these loans was not probable as of December 31, 2014. | |
On March 31, 2014, as part of Pullmantur's sale of its non-core businesses, Pullmantur sold the majority of its 49% interest in Pullmantur Air S.A. ("Pullmantur Air"), a small aircraft business that operates four aircraft in support of Pullmantur's operations. Post-sale, we retained a 19% interest in Pullmantur Air as well as 100% ownership of the aircraft, which are now being dry leased to Pullmantur Air. We will continue to utilize the services provided by Pullmantur Air. Consistent with our Pullmantur two-month lag reporting period, we reported the impact of the sale in the second quarter of 2014. As of the date of the sale, we determined that Pullmantur Air was no longer a VIE and have accounted for our 19% investment in Pullmantur Air under the cost method of accounting. | |
Prior to the sale, we determined that Pullmantur Air was a VIE for which we were the primary beneficiary and we consolidated the assets and liabilities of Pullmantur Air in our consolidated balance sheets as of December 31, 2013. We did not separately disclose the assets and liabilities of Pullmantur Air as they were immaterial to our December 31, 2013 consolidated financial statements. See Note 16. Restructuring and Related Impairment Charges for further discussion of the transaction. | |
Additionally, in connection with the sale of Pullmantur's non-core businesses, Pullmantur sold the majority of its land-based tour operations and travel agency, retaining a 19% noncontrolling interest in both Nautalia Viajes, S.L. ("Nautalia"), a small travel agency network, and Global Tour Operación, S.L. ("Global Tour"), a small tour operations business. We will continue to utilize the services provided by these businesses, in addition to services from other travel agency and tour operations businesses. Consistent with our two-month lag Pullmantur reporting period, we reported the impact of this sale in our consolidated financial statements in the second quarter of 2014. As of the date of the sale, we determined that Nautalia and Global Tour were VIEs for which we were not the primary beneficiaries as we do not have the power to direct the activities that most significantly impact the economic performance of these entities. In accordance with authoritative guidance for nonconsolidated VIEs, we have accounted for our 19% investment in these companies under the equity method of accounting. The impact of these entities is not material to our consolidated financial statements. | |
We have determined that TUI Cruises GmbH, our 50%-owned joint venture which operates the brand TUI Cruises, is a VIE. As of December 31, 2014 and December 31, 2013, our investment in TUI Cruises, including equity and loans, was approximately $370.1 million and $354.3 million, respectively. The majority of this amount was included within Other assets in our consolidated balance sheets. In addition, we and TUI AG, our joint venture partner, have each guaranteed the repayment of 50% of a €180.0 million bank loan provided to TUI Cruises due in 2016. Our investment amount and the potential obligations under this guarantee are substantially our maximum exposure to loss. We have determined that we are not the primary beneficiary of TUI Cruises. We believe that the power to direct the activities that most significantly impact TUI Cruises' economic performance are shared between ourselves and TUI AG. All the significant operating and financial decisions of TUI Cruises require the consent of both parties which we believe creates shared power over TUI Cruises. Accordingly, we do not consolidate this entity and account for this investment under the equity method of accounting. As of December 31, 2014, TUI Cruises' bank loan that is guaranteed by the shareholders had a remaining balance of €117.0 million, or approximately $141.6 million based on the exchange rate at December 31, 2014. This bank loan amortizes quarterly and is secured by first mortgages on both Mein Schiff 1 and Mein Schiff 2. Based on current facts and circumstances, we do not believe potential obligations under our guarantee of this bank loan are probable. | |
In connection with our sale of Celebrity Mercury to TUI Cruises in 2011, we provided a debt facility to TUI Cruises in the amount of up to €90.0 million and maturing through June 2018. During 2014, we made several amendments to the facility, including increasing the maximum amount of the facility to €125.0 million and providing TUI Cruises with the ability to draw upon the available capacity through December 31, 2015 to fund installment payments for its newbuild ships. Any amounts drawn under the facility to fund newbuild installments mature in March 2016. Interest under the loan accrues at the rate of 5.0% per annum. This facility is 50% guaranteed by TUI AG and is secured by second and third mortgages on Mein Schiff 1 and Mein Schiff 2. The outstanding principal amount of the facility as of December 31, 2014 was €55.7 million, or approximately $67.4 million based on the exchange rate at December 31, 2014. | |
TUI Cruises currently has three newbuild ships on order with Meyer Turku shipyard: Mein Schiff 4, scheduled for delivery in the second quarter of 2015, Mein Schiff 5, scheduled for delivery in the third quarter of 2016 and Mein Schiff 6, scheduled for delivery in the second quarter of 2017. TUI Cruises has in place commitments for the financing of up to 80% of the contract price of each ship on order. The remaining portion of the contract price of the ships will be funded through TUI Cruises’ cash flows from operations and/or shareholder loans (via the debt facility described above or otherwise) and/or equity contributions from us and TUI AG. The various ship construction and credit agreements include certain restrictions on each of our and TUI AG’s ability to reduce our current ownership interest in TUI Cruises below 37.5% through 2019. | |
During the fourth quarter of 2014, we acquired a 35% noncontrolling interest in Skysea Holding. We have determined that Skysea Holding is a VIE for which we are not the primariy beneficiary, as we do not have the power to direct the activities that most significantly impact the entity's economic performance. Accordingly, we do not consolidate this entity and we account for this investment under the equity method of accounting. As of December 31, 2014, our investment balance in Skysea Holding was $26.3 million. In December 31, 2014, we and Ctrip.com International Ltd, who also owns 35% of Skysea Holding, each provided a debt facility to Exquisite Marine Ltd., one of Skysea Holding's wholly-owned subsidiaries, in the amount of $80.0 million. Interest under these facilities, which mature in January 2030, initially accrues interest at a rate of 3.0% per annum with an increase of at least 0.5% every two years. The facilities, which are pari passu to each other, are each 100% guaranteed by Skysea Holding and secured by a first priority mortgage on the ship, Celebrity Century, which we sold to Exquisite Marine Ltd. in September 2014. See Note 5. Property and Equipment for further discussion on the sales transaction. We have determined that Exquisite Marine Ltd. is a VIE and that we are not the primary beneficiary, as we do not have the power to direct the activities that most significantly impact the entity's economic performance. Accordingly, we do not consolidate this entity. Our investment of $26.3 million and loan amount of $80.0 million are our maximum exposure to loss with respect to SkySea Holding and its subsidiaries. | |
Our share of income from investments accounted for under the equity method of accounting, including the entities discussed above, was $51.6 million, $32.0 million and $23.8 million for the years ended December 31, 2014, 2013 and 2012, respectively, and was recorded within Other income (expense). |
LongTerm_Debt
Long-Term Debt | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Long-Term Debt | Long-Term Debt | |||||||
Long-term debt consists of the following (in thousands): | ||||||||
2014 | 2013 | |||||||
$1.1 billion unsecured revolving credit facility, LIBOR plus 1.75%, currently 1.92% and a facility fee of 0.37%, due 2016 | $ | 713,000 | $ | 435,000 | ||||
$1.2 billion unsecured revolving credit facility, LIBOR plus 1.75%, currently 1.91% and a facility fee of 0.37%, due 2018 | 778,000 | 295,000 | ||||||
Unsecured senior notes and senior debentures, 5.25% to 11.88%, due 2015, 2016, 2018, 2022 and 2027 | 1,721,190 | 1,703,040 | ||||||
€745 million unsecured senior notes, 5.63%, due 2014 | — | 1,028,126 | ||||||
$589 million unsecured term loan, 4.47%, due through 2014 | — | 42,071 | ||||||
$530 million unsecured term loan, LIBOR plus 0.51%, currently 0.83%, due through 2015 | 37,857 | 113,571 | ||||||
$519 million unsecured term loan, LIBOR plus 0.45%, currently 0.77%, due through 2020 | 259,573 | 302,835 | ||||||
$420 million unsecured term loan, 5.41%, due through 2021 | 241,827 | 274,974 | ||||||
$420 million unsecured term loan, LIBOR plus 1.85%, currently 2.17%, due through 2021 | 245,000 | 280,000 | ||||||
€159.4 million unsecured term loan, EURIBOR plus 1.58%, currently 1.77%, due through 2021 | 112,540 | 146,452 | ||||||
$524.5 million unsecured term loan, LIBOR plus 0.50%, currently 0.83%, due through 2021 | 305,958 | 349,667 | ||||||
$566.1 million unsecured term loan, LIBOR plus 0.37%, currently 0.69%, due through 2022 | 353,793 | 400,966 | ||||||
$1.1 billion unsecured term loan, LIBOR plus 1.85%, currently 2.17%, due through 2022 | 614,203 | 690,978 | ||||||
$632.0 million unsecured term loan, LIBOR plus 0.40%, currently 0.73%, due through 2023 | 473,969 | 526,632 | ||||||
$673.5 million unsecured term loan, LIBOR plus 0.40%, currently 0.73%, due through 2024 | 561,228 | 617,351 | ||||||
$65.0 million unsecured term loan, LIBOR plus 2.12%, currently 2.29%, due through 2019 | 51,100 | — | ||||||
$1.0 million unsecured term loan, 3.00%, due through 2015 | 750 | — | ||||||
$380.0 million unsecured term loan, LIBOR plus 2.12%, currently 2.29%, due through 2018 | 380,000 | — | ||||||
$791.1 million unsecured term loan, LIBOR plus 1.30%, currently 1.62%, due through 2026 | 791,108 | — | ||||||
$290.0 million unsecured term loan, LIBOR plus 2.5%, currently 2.67%, due 2016 | 290,000 | 290,000 | ||||||
€365 million unsecured term loan, EURIBOR plus 2.30%, currently 2.32%, due 2017 | 441,687 | 502,934 | ||||||
$7.3 million unsecured term loan, LIBOR plus 2.5%, currently 2.82%, due through 2023 | 4,915 | 5,391 | ||||||
$30.3 million unsecured term loan, LIBOR plus 3.75%, currently 3.99%, due through 2021 | 13,603 | 15,073 | ||||||
Capital lease obligations | 52,647 | 54,743 | ||||||
8,443,948 | 8,074,804 | |||||||
Less—current portion | (799,630 | ) | (1,563,378 | ) | ||||
Long-term portion | $ | 7,644,318 | $ | 6,511,426 | ||||
In January 2014, we borrowed $380.0 million under a previously committed unsecured term loan facility. The loan is due and payable at maturity in August 2018. Interest on the loan accrues at a floating rate based on LIBOR plus the applicable margin. The applicable margin varies with our debt rating and was 2.12% as of December 31, 2014. The proceeds of this loan were used to repay our €745.0 million 5.625% unsecured senior notes due January 2014. | ||||||||
In January 2014, we amended and restated our €365.0 million unsecured term loan due July 2017. Interest on the amended facility accrues at a floating rate based on EURIBOR plus a margin which varies with our credit rating. The amendment reduced the margin, which at our current credit rating resulted in a decrease from 3.00% to 2.30%. The amendment did not result in the extinguishment of debt. | ||||||||
In March 2014, we amended our unsecured term loans for Oasis of the Seas and Allure of the Seas primarily to reduce the margins on those facilities and eliminate the lenders option to exit those facilities in 2015 and 2017, respectively. The interest rate on the $420.0 million floating rate tranche of the Oasis of the Seas term loan was reduced from LIBOR plus 2.10% to LIBOR plus 1.85%. The interest rate on the entire $1.1 billion Allure of the Seas term loan was reduced from LIBOR plus 2.10% to LIBOR plus 1.85%. These amendments did not result in the extinguishment of debt. | ||||||||
During 2014, we took delivery of Quantum of the Seas. To finance the purchase, we borrowed $791.1 million under a previously committed unsecured term loan which is 95% guaranteed by Hermes. The loan amortizes semi-annually over 12 years and bears interest at LIBOR plus a margin of 1.30%, currently 1.62%. In addition, during 2012, we entered into forward-starting interest rate swap agreements which effectively converted the floating rate available to us per the credit agreement to a fixed rate, including the applicable margin, of 3.74% effective October 2014 through the remaining term of the loan. See Note 14. Fair Value Measurements and Derivative Instruments for further information regarding these agreements. | ||||||||
During 2014, we increased the capacity of our unsecured revolving credit facility due August 2018 by $300 million by utilizing the accordion feature, bringing our total capacity under this facility to $1.2 billion as of December 31, 2014. We also have a revolving credit facility due July 2016 with capacity of $1.1 billion as of December 31, 2014, giving us an aggregate revolving borrowing capacity of $2.3 billion. | ||||||||
Certain of our unsecured ship financing term loans are guaranteed by the export credit agency in the respective country in which the ship is constructed. In consideration for these guarantees, depending on the financing arrangement, we pay to the applicable export credit agency fees that range from either (1) 0.88% to 1.48% per annum based on the outstanding loan balance semi-annually over the term of the loan (subject to adjustment under certain of our facilities based upon our credit ratings) or (2) an upfront fee of approximately 2.3% to 2.37% of the maximum loan amount. We amortize the fees that are paid upfront over the life of the loan and those that are paid semi-annually over each respective payment period. We classify these fees within Debt issuance costs in our consolidated statements of cash flows and within Other assets in our consolidated balance sheets. | ||||||||
Under certain of our agreements, the contractual interest rate, facility fee and/or export credit agency fee vary with our debt rating. | ||||||||
The unsecured senior notes and senior debentures are not redeemable prior to maturity, except that certain series may be redeemed upon the payment of a make-whole premium. | ||||||||
Following is a schedule of annual maturities on long-term debt including capital leases as of December 31, 2014 for each of the next five years (in thousands): | ||||||||
Year | ||||||||
2015 | $ | 799,630 | ||||||
2016 | 1,856,302 | |||||||
2017 | 920,687 | |||||||
2018 | 1,785,083 | |||||||
2019 | 529,197 | |||||||
Thereafter | 2,553,049 | |||||||
$ | 8,443,948 | |||||||
Shareholders_Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2014 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders' Equity |
During the fourth quarter of 2014, we repurchased from A. Wilhelmsen AS, our largest shareholder, 3.5 million shares of our common stock directly from them in a private transaction at $67.45 per share, which was equal to the price paid by a third-party financial institution for the simultaneous purchase of an additional 3.5 million shares from A. Wilhelmsen AS. Total consideration paid to repurchase such shares was approximately $236.1 million and was recorded in shareholders' equity as a component of treasury stock. | |
In December 2014, we declared a cash dividend on our common stock of $0.30 per share which was paid in the first quarter of 2015. We declared a cash dividend on our common stock of $0.30 per share during the third quarter of 2014 which was paid in the fourth quarter of 2014. We declared and paid a cash dividend on our common stock of $0.25 per share during the first and second quarters of 2014. | |
During the fourth quarter of 2013, we declared a cash dividend on our common stock of $0.25 per share which was paid in the first quarter of 2014. We declared a cash dividend on our common stock of $0.25 per share during the third quarter of 2013 which was paid in the fourth quarter of 2013. We declared and paid a cash dividend on our common stock of $0.12 per share during the first and second quarters of 2013. During the first quarter of 2013, we also paid a cash dividend on our common stock of $0.12 per share which was declared during the fourth quarter of 2012. |
StockBased_Employee_Compensati
Stock-Based Employee Compensation | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||
Stock-Based Employee Compensation | Stock-Based Employee Compensation | |||||||||||||
We currently have awards outstanding under two stock-based compensation plans, which provide for awards to our officers, directors and key employees. The plans consist of a 2000 Stock Award Plan and a 2008 Equity Plan. Our ability to issue new awards under the 2000 Stock Award Plan terminated in accordance with the terms of the plan in September 2009. The 2008 Equity Plan, as amended, provides for the issuance of up to 11,000,000 shares of our common stock pursuant to grants of (i) incentive and non-qualified stock options, (ii) stock appreciation rights, (iii) restricted stock, (iv) restricted stock units and (v) performance shares. During any calendar year, no one individual shall be granted awards of more than 500,000 shares. Options and restricted stock units outstanding as of December 31, 2014 generally vest in equal installments over four years from the date of grant. In addition, performance shares generally vest in three years. With certain limited exceptions, options, restricted stock units and performance shares are forfeited if the recipient ceases to be a director or employee before the shares vest. Options are granted at a price not less than the fair value of the shares on the date of grant and expire not later than ten years after the date of grant. | ||||||||||||||
Prior to 2012, our officers received a combination of stock options and restricted stock units. Beginning in 2012, our officers instead receive their long-term incentive awards through a combination of performance shares and restricted stock units. Each performance share award is expressed as a target number of performance shares based upon the fair market value of our common stock on the date the award is issued. The actual number of shares underlying each award (not to exceed 200% of the target number of performance shares) will be determined based upon the Company's achievement of a specified performance target range. For the grants awarded in 2014, the performance target is return on invested capital ("ROIC") for the year ended December 31, 2014, as adjusted by the Compensation Committee of our Board of Directors for events that are outside of management's control. In 2014, we issued a target number of 233,831 performance shares which will vest on the third anniversary of the award issue date. In February 2015, the Compensation Committee of our Board of Directors set the actual payout level at 119% of target for the performance shares issued in 2014. | ||||||||||||||
We also provide an Employee Stock Purchase Plan ("ESPP") to facilitate the purchase by employees of up to 1,300,000 shares of common stock in the aggregate. Offerings to employees are made on a quarterly basis. Subject to certain limitations, the purchase price for each share of common stock is equal to 85.0% of the average of the market prices of the common stock as reported on the New York Stock Exchange on the first business day of the purchase period and the last business day of each month of the purchase period. During 2014, 2013 and 2012, 26,921, 27,036 and 35,927 shares of our common stock were issued under the ESPP at a weighted-average price of $52.08, $33.16 and $25.58, respectively. | ||||||||||||||
In 1994, we granted to our Chairman and Chief Executive Officer an award of common stock, issuable in quarterly installments of 10,086 shares until the earlier of the termination of his employment or June 2014. In furtherance of this grant, we issued an aggregate of 40,344 shares of common stock in each of 2012 and 2013 and an aggregate of 20,172 shares of common stock in 2014. | ||||||||||||||
Total compensation expense recognized for employee stock-based compensation for the years ended December 31, 2014, 2013 and 2012 was as follows: | ||||||||||||||
Employee Stock-Based Compensation | ||||||||||||||
Classification of expense | 2014 | 2013 | 2012 | |||||||||||
(In thousands) | ||||||||||||||
Marketing, selling and administrative expenses | $ | 26,116 | $ | 21,178 | $ | 24,153 | ||||||||
Total compensation expense | $ | 26,116 | $ | 21,178 | $ | 24,153 | ||||||||
The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option pricing model. The estimated fair value of stock options, less estimated forfeitures, is amortized over the vesting period using the graded-vesting method. We did not issue any stock options in 2014 and 2013. The assumptions used in the Black-Scholes option-pricing model are as follows: | ||||||||||||||
2012 | ||||||||||||||
Dividend yield | 1.50% | |||||||||||||
Expected stock price volatility | 46.00% | |||||||||||||
Risk-free interest rate | 1.10% | |||||||||||||
Expected option life | 6 years | |||||||||||||
Expected volatility was based on a combination of historical and implied volatilities. The risk-free interest rate was based on United States Treasury zero coupon issues with a remaining term equal to the expected option life assumed at the date of grant. The expected term was calculated based on historical experience and represents the time period options actually remain outstanding. We estimate forfeitures based on historical pre-vesting forfeiture rates and revise those estimates as appropriate to reflect actual experience. | ||||||||||||||
Stock option activity and information about stock options outstanding are summarized in the following table: | ||||||||||||||
Stock Option Activity | Number of | Weighted- | Weighted- | Aggregate | ||||||||||
Options | Average | Average | Intrinsic | |||||||||||
Exercise | Remaining | Value(1) | ||||||||||||
Price | Contractual | |||||||||||||
Term | ||||||||||||||
(years) | (in thousands) | |||||||||||||
Outstanding at January 1, 2014 | 2,694,872 | $ | 36.3 | 3.83 | $ | 30,080 | ||||||||
Granted | — | $ | — | — | — | |||||||||
Exercised | (1,941,365 | ) | $ | 36.22 | — | — | ||||||||
Canceled | (47,456 | ) | $ | 43.02 | — | — | ||||||||
Outstanding at December 31, 2014 | 706,051 | $ | 36.03 | 3.64 | $ | 33,182 | ||||||||
Vested and expected to vest at December 31, 2014 | 704,796 | $ | 36.02 | 3.63 | $ | 33,130 | ||||||||
Options Exercisable at December 31, 2014 | 622,168 | $ | 34.85 | 3.31 | $ | 29,970 | ||||||||
___________________________________ | ||||||||||||||
-1 | The intrinsic value represents the amount by which the fair value of stock exceeds the option exercise price as of December 31, 2014. | |||||||||||||
The weighted-average estimated fair value of stock options granted was $9.90 during the year ended December 31, 2012. The total intrinsic value of stock options exercised during the years ended December 31, 2014, 2013 and 2012 was $35.9 million, $17.5 million and $15.3 million, respectively. As of December 31, 2014, there was approximately $0.1 million of total unrecognized compensation cost, net of estimated forfeitures, related to stock options granted under our stock incentive plans which is expected to be recognized over a weighted-average period of 0.14 years. | ||||||||||||||
Restricted stock units are converted into shares of common stock upon vesting or, if applicable, settle on a one-for-one basis. The cost of these awards is determined using the fair value of our common stock on the date of the grant, and compensation expense is recognized over the vesting period. Restricted stock activity is summarized in the following table: | ||||||||||||||
Restricted Stock Activity | Number of | Weighted- | ||||||||||||
Awards | Average | |||||||||||||
Grant Date | ||||||||||||||
Fair Value | ||||||||||||||
Non-vested share units at January 1, 2014 | 989,005 | $ | 9.26 | |||||||||||
Granted | 472,150 | $ | 54.6 | |||||||||||
Vested | (405,001 | ) | $ | 51.24 | ||||||||||
Canceled | (74,601 | ) | $ | 55.3 | ||||||||||
Non-vested share units expected to vest as of December 31, 2014 | 981,553 | $ | 10.25 | |||||||||||
The weighted-average estimated fair value of restricted stock units granted during the year ended December 31, 2013, and 2012 were $36.07 and $30.03, respectively. The total fair value of shares released on the vesting of restricted stock units during the years ended December 31, 2014, 2013 and 2012 was $20.7 million, $19.2 million and $18.8 million, respectively. As of December 31, 2014, we had $14.6 million of total unrecognized compensation expense, net of estimated forfeitures, related to restricted stock unit grants, which will be recognized over the weighted-average period of 1.27 years. | ||||||||||||||
Performance share awards are converted into shares of common stock upon vesting on a one-for-one basis. We estimate the fair value of each performance share when the grant is authorized and the related service period has commenced. We remeasure the fair value of our performance shares in each subsequent reporting period until the grant date has occurred, which is the date when the performance conditions are satisfied. We recognize compensation cost over the vesting period based on the probability of the service and performance conditions being achieved adjusted for each subsequent fair value measurement until the grant date. If the specified service and performance conditions are not met, compensation expense will not be recognized and any previously recognized compensation expense will be reversed. Performance stock activity is summarized in the following table: | ||||||||||||||
Performance Stock Activity | Number of | Weighted- | ||||||||||||
Awards | Average | |||||||||||||
Grant Date | ||||||||||||||
Fair Value | ||||||||||||||
Non-vested share units at January 1, 2014 | 459,929 | $ | 32.36 | |||||||||||
Granted | 233,831 | $ | 56.72 | |||||||||||
Vested | (7,301 | ) | $ | 53.81 | ||||||||||
Canceled | (27,573 | ) | $ | 54.11 | ||||||||||
Non-vested share units expected to vest as of December 31, 2014 | 658,886 | $ | 39.86 | |||||||||||
As of December 31, 2014, we had $12.9 million of total unrecognized compensation expense, net of estimated forfeitures, related to performance share unit grants, which will be recognized over the weighted-average period of 0.89 years. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Earnings Per Share | Earnings Per Share | |||||||||||
A reconciliation between basic and diluted earnings per share is as follows (in thousands, except per share data): | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Net income for basic and diluted earnings per share | $ | 764,146 | $ | 473,692 | $ | 18,287 | ||||||
Weighted-average common shares outstanding | 221,658 | 219,638 | 217,930 | |||||||||
Dilutive effect of stock options, performance share awards and restricted stock awards | 1,386 | 1,303 | 1,527 | |||||||||
Diluted weighted-average shares outstanding | 223,044 | 220,941 | 219,457 | |||||||||
Basic earnings per share: | ||||||||||||
Net income | $ | 3.45 | $ | 2.16 | $ | 0.08 | ||||||
Diluted earnings per share: | ||||||||||||
Net income | $ | 3.43 | $ | 2.14 | $ | 0.08 | ||||||
Diluted earnings per share did not reflect options to purchase an aggregate of 1.9 million and 3.1 million shares for each of the years ended December 31, 2013 and 2012, respectively, because the effect of including them would have been antidilutive. There were no antidilutive shares for the year ended December 31, 2014. |
Retirement_Plan
Retirement Plan | 12 Months Ended |
Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |
Retirement Plan | Retirement Plan |
We maintain a defined contribution pension plan covering full-time shoreside employees who have completed the minimum period of continuous service. Annual contributions to the plan are discretionary and are based on fixed percentages of participants' salaries and years of service, not to exceed certain maximums. Pension expenses were $15.4 million, $13.0 million and $15.2 million for the years ended December 31, 2014, 2013 and 2012, respectively. |
Income_Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes |
We are subject to corporate income taxes in countries where we have operations or subsidiaries. We and the majority of our ship-operating and vessel-owning subsidiaries are currently exempt from United States corporate tax on United States source income from the international operation of ships pursuant to Section 883 of the Internal Revenue Code. Regulations under Section 883 have limited the activities that are considered the international operation of a ship or incidental thereto. Accordingly, our provision for United States federal and state income taxes includes taxes on certain activities not considered incidental to the international operation of our ships. | |
Additionally, some of our ship-operating subsidiaries are subject to income tax under the tonnage tax regimes of Malta or the United Kingdom. Under these regimes, income from qualifying activities is not subject to corporate income tax. Instead, these subsidiaries are subject to a tonnage tax computed by reference to the tonnage of the ship or ships registered under the relevant provisions of the tax regimes. Income from activities not considered qualifying activities, which we do not consider significant, remains subject to Maltese or United Kingdom corporate income tax. | |
Income tax (benefit) expense for items not qualifying under Section 883, tonnage taxes and income taxes for the remainder of our subsidiaries was approximately $(20.9) million, $24.9 million and $55.5 million and was recorded within Other income (expense) for the years ended December 31, 2014, 2013 and 2012, respectively. In addition, all interest expense and penalties related to income tax liabilities are classified as income tax expense within Other income (expense). | |
We do not expect to incur income taxes on future distributions of undistributed earnings of foreign subsidiaries. Consequently, no deferred income taxes have been provided for the distribution of these earnings. | |
Net deferred tax assets and deferred tax liabilities and corresponding valuation allowances related to our operations were not material as of December 31, 2014 and 2013. | |
We regularly review deferred tax assets for recoverability based on our history of earnings, expectations of future earnings, and tax planning strategies. Realization of deferred tax assets ultimately depends on the existence of sufficient taxable income to support the amount of deferred taxes. A valuation allowance is recorded in those circumstances in which we conclude it is not more-likely-than-not we will recover the deferred tax assets prior to their expiration. During 2012, we determined that a 100% valuation allowance of our deferred tax assets was required resulting in a deferred income tax expense of $33.7 million. In addition, Pullmantur has a deferred tax liability that was recorded at the time of acquisition. This liability represents the tax effect of the basis difference between the tax and book values of the trademarks and trade names that were acquired at the time of the acquisition. Due to the impairment charge related to these intangible assets, we reduced the deferred tax liability and recorded a deferred tax benefit of $5.2 million. The net $28.5 million impact of these adjustments was recognized in earnings during the fourth quarter of 2012 and was reported within Other income (expense) in our statements of comprehensive income (loss). | |
During the fourth quarter of 2014, Spain adopted tax reform legislation, which included among other things, a reduction of the corporate income tax rate from 30% to 28% in 2015 and a further reduction to 25% in 2016. As a result, we adjusted our deferred tax assets and deferred tax liabilities in Spain to reflect the new tax rate at which we believe they will be realized. This change resulted in a net deferred income tax benefit of $10.0 million. The tax reform also amended the net operating loss carryforward rules by changing the carryforward period from 18 years to unlimited and by changing the annual utilization limitation from 25% of taxable income to 70% of taxable income for certain taxpayers, including Pullmantur. As a result of the change of the net operating loss carryforward period, we reversed a portion of the valuation allowance recorded in 2012 to the extent of 70% of the rate-adjusted deferred tax liability recorded for the basis difference between the tax and book values of the trademarks and trade names recorded at the time of the Pullmantur acquisition and other indefinite lived assets recorded. The amount of the valuation allowance reversed in the fourth quarter was $33.5 million which was recorded as a deferred tax benefit. These deferred tax adjustments were reported within Other income (expense) in our statements of comprehensive income (loss). |
Changes_in_Accumulated_Other_C
Changes in Accumulated Other Comprehensive Income (Loss) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||
Changes in Accumulated Other Comprehensive Income (Loss) | Changes in Accumulated Other Comprehensive Income (Loss) | |||||||||||||||
The following table presents the changes in accumulated other comprehensive income (loss) by component for the years ended December 31, 2014 and 2013 (in thousands): | ||||||||||||||||
Changes related to cash flow derivative hedges | Changes in defined | Foreign currency translation adjustments | Accumulated other comprehensive (loss) income | |||||||||||||
benefit plans | ||||||||||||||||
Accumulated comprehensive loss at January 1, 2013 | $ | (84,505 | ) | $ | (34,823 | ) | $ | (15,188 | ) | $ | (134,516 | ) | ||||
Other comprehensive income before reclassifications | 197,428 | 8,240 | 1,529 | 207,197 | ||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (69,599 | ) | 2,589 | — | (67,010 | ) | ||||||||||
Net current-period other comprehensive income | 127,829 | 10,829 | 1,529 | 140,187 | ||||||||||||
Accumulated comprehensive income (loss) at January 1, 2014 | 43,324 | (23,994 | ) | (13,659 | ) | 5,671 | ||||||||||
Other comprehensive loss before reclassifications | (903,830 | ) | (8,937 | ) | (28,099 | ) | (940,866 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 34,480 | 1,724 | 1,997 | 38,201 | ||||||||||||
Net current-period other comprehensive loss | (869,350 | ) | (7,213 | ) | (26,102 | ) | (902,665 | ) | ||||||||
Accumulated comprehensive loss at December 31, 2014 | $ | (826,026 | ) | $ | (31,207 | ) | $ | (39,761 | ) | $ | (896,994 | ) | ||||
The following table presents reclassifications out of accumulated other comprehensive (loss) income for the years ended December 31, 2014 and 2013 (in thousands): | ||||||||||||||||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive (Loss) Income into Income | ||||||||||||||||
Details about Accumulated Other Comprehensive Income (Loss) Components | Year Ended December 31, 2014 | Year Ended December 31, 2013 | Affected Line Item in Statements of Comprehensive Income (Loss) | |||||||||||||
Gain (loss) on cash flow derivative hedges: | ||||||||||||||||
Cross currency swaps | $ | (261 | ) | $ | (3,531 | ) | Interest expense, net of interest capitalized | |||||||||
Foreign currency forward contracts | (1,887 | ) | (1,797 | ) | Depreciation and amortization expenses | |||||||||||
Foreign currency forward contracts | (4,291 | ) | 27,423 | Other (expense) income | ||||||||||||
Foreign currency forward contracts | (57 | ) | (440 | ) | Interest expense, net of interest capitalized | |||||||||||
Fuel swaps | (27,984 | ) | 47,944 | Fuel | ||||||||||||
(34,480 | ) | 69,599 | ||||||||||||||
Amortization of defined benefit plans: | ||||||||||||||||
Actuarial loss | (888 | ) | (1,753 | ) | Payroll and related | |||||||||||
Prior service costs | (836 | ) | (836 | ) | Payroll and related | |||||||||||
(1,724 | ) | (2,589 | ) | |||||||||||||
Release of foreign cumulative translation due to sale of Pullmantur's non-core businesses: | ||||||||||||||||
Foreign cumulative translation | (1,997 | ) | — | Other operating | ||||||||||||
Total reclassifications for the period | $ | (38,201 | ) | $ | 67,010 | |||||||||||
Fair_Value_Measurements_and_De
Fair Value Measurements and Derivative Instruments | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements and Derivative Instruments | Fair Value Measurements and Derivative Instruments | |||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||||||||||||||||||||||
The estimated fair value of our financial instruments that are not measured at fair value, categorized based upon the fair value hierarchy, are as follows (in thousands): | ||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements at December 31, 2014 Using | Fair Value Measurements at December 31, 2013 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) | ||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents(4) | $ | 189,241 | $ | 189,241 | $ | 189,241 | $ | — | $ | — | $ | 204,687 | $ | 204,687 | $ | 204,687 | $ | — | $ | — | ||||||||||||||||||||
Total Assets | $ | 189,241 | $ | 189,241 | $ | 189,241 | $ | — | $ | — | $ | 204,687 | $ | 204,687 | $ | 204,687 | $ | — | $ | — | ||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||||||
Long-term debt (including current portion of long-term debt)(5) | $ | 8,391,301 | $ | 8,761,414 | $ | 1,859,361 | $ | 6,902,053 | $ | — | $ | 8,020,061 | $ | 8,431,220 | $ | 2,888,255 | $ | 5,542,965 | $ | — | ||||||||||||||||||||
Total Liabilities | $ | 8,391,301 | $ | 8,761,414 | $ | 1,859,361 | $ | 6,902,053 | $ | — | $ | 8,020,061 | $ | 8,431,220 | $ | 2,888,255 | $ | 5,542,965 | $ | — | ||||||||||||||||||||
___________________________________ | ||||||||||||||||||||||||||||||||||||||||
-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 within Level 1 that are observable for the liability, either directly or indirectly. For unsecured revolving credit facilities and unsecured term loans, fair value is determined utilizing the income valuation approach. This valuation model takes into account the contract terms of our debt such as the debt maturity and the interest rate on the debt. The valuation model also takes into account the creditworthiness of the Company. | |||||||||||||||||||||||||||||||||||||||
-3 | Inputs that are unobservable. The Company did not use any Level 3 inputs as of December 31, 2014 and December 31, 2013. | |||||||||||||||||||||||||||||||||||||||
-4 | Consists of cash and marketable securities with original maturities of less than 90 days. | |||||||||||||||||||||||||||||||||||||||
-5 | Consists of unsecured revolving credit facilities, senior notes, senior debentures and term loans. Does not include our capital lease obligations. | |||||||||||||||||||||||||||||||||||||||
Other Financial Instruments | ||||||||||||||||||||||||||||||||||||||||
The carrying amounts of accounts receivable, accounts payable, accrued interest and accrued expenses approximate fair value at December 31, 2014 and December 31, 2013. | ||||||||||||||||||||||||||||||||||||||||
Assets and liabilities that are recorded at fair value have been categorized based upon the fair value hierarchy. The following table presents information about the Company's financial instruments recorded at fair value on a recurring basis (in thousands): | ||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements at December 31, 2014 Using | Fair Value Measurements at December 31, 2013 Using | |||||||||||||||||||||||||||||||||||||||
Description | Total Fair Value | Level 1(1) | Level 2(2) | Level 3(3) | Total Fair Value | Level 1(1) | Level 2(2) | Level 3(3) | ||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||||||
Derivative financial instruments(4) | $ | 63,981 | $ | — | $ | 63,981 | $ | — | $ | 188,576 | $ | — | $ | 188,576 | $ | — | ||||||||||||||||||||||||
Investments(5) | $ | 5,531 | 5,531 | — | — | $ | 6,044 | 6,044 | — | — | ||||||||||||||||||||||||||||||
Total Assets | $ | 69,512 | $ | 5,531 | $ | 63,981 | $ | — | $ | 194,620 | $ | 6,044 | $ | 188,576 | $ | — | ||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||||||
Derivative financial instruments(6) | $ | 767,635 | $ | — | $ | 767,635 | $ | — | $ | 100,260 | $ | — | $ | 100,260 | $ | — | ||||||||||||||||||||||||
Total Liabilities | $ | 767,635 | $ | — | $ | 767,635 | $ | — | $ | 100,260 | $ | — | $ | 100,260 | $ | — | ||||||||||||||||||||||||
___________________________________ | ||||||||||||||||||||||||||||||||||||||||
-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 within Level 1 that are observable for the asset or liability, either directly or indirectly. For foreign currency forward contracts, interest rate swaps, cross currency swaps and fuel swaps, fair value is derived using valuation models that utilize the income valuation approach. These valuation models take into account the contract terms, such as maturity as well as other inputs, such as foreign exchange rates and curves, fuel types, fuel curves and interest rate yield curves. Fair value for foreign currency collar options is determined by using standard option pricing models with inputs based on the options' contract terms, such as exercise price and maturity, and readily available public market data, such as foreign exchange curves, foreign exchange volatility levels and discount rates. All derivative instrument fair values take into account the creditworthiness of the counterparty and the Company. | |||||||||||||||||||||||||||||||||||||||
-3 | Inputs that are unobservable. The Company did not use any Level 3 inputs as of December 31, 2014 and December 31, 2013. | |||||||||||||||||||||||||||||||||||||||
-4 | Consists of foreign currency forward contracts, foreign currency collar options, interest rate swaps and fuel swaps. Please refer to the "Fair Value of Derivative Instruments" table for breakdown by instrument type. | |||||||||||||||||||||||||||||||||||||||
-5 | Consists of exchange-traded equity securities and mutual funds. | |||||||||||||||||||||||||||||||||||||||
-6 | Consists of interest rate swaps, fuel swaps, foreign currency forward contracts and foreign currency collar options. Please refer to the "Fair Value of Derivative Instruments" table for breakdown by instrument type. | |||||||||||||||||||||||||||||||||||||||
The reported fair values are based on a variety of factors and assumptions. Accordingly, the fair values may not represent actual values of the financial instruments that could have been realized as of December 31, 2014 or December 31, 2013, or that will be realized in the future, and do not include expenses that could be incurred in an actual sale or settlement. | ||||||||||||||||||||||||||||||||||||||||
The following table presents information about the Company's long-lived assets for our Pullmantur reporting unit and assets held for sale recorded at fair value on a nonrecurring basis (in thousands): | ||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements at December 31, 2013 Using | ||||||||||||||||||||||||||||||||||||||||
Description | Total Carrying Amount | Total Fair Value | Level 3 | Total Impairment | ||||||||||||||||||||||||||||||||||||
Long-lived assets — Pullmantur aircraft(1) | $ | 49,507 | $ | 49,507 | $ | 49,507 | $ | 13,529 | ||||||||||||||||||||||||||||||||
Assets held for sale(2) | $ | — | $ | — | $ | — | $ | 19,985 | ||||||||||||||||||||||||||||||||
___________________________________ | ||||||||||||||||||||||||||||||||||||||||
-1 | For 2013, we estimated the fair value of our long-lived assets using an undiscounted cash flow model. A significant assumption in performing the undiscounted cash flow test was the number of years during which we expect to use these aircraft. Additionally, as of December 31, 2013, the expected operating use of the aircraft modified the expected cash flows. | |||||||||||||||||||||||||||||||||||||||
-2 | For 2013, we estimated the fair value of assets held for sale related to the sale of Pullmantur's non-core businesses. This resulted in an impairment of $20.0 million mostly consisting of $18.2 million for property and equipment. See Note 16. Restructuring and Related Impairment Charges for further discussion. | |||||||||||||||||||||||||||||||||||||||
The assets related to Pullmantur’s non-core businesses that met the criteria for held for sale classification as of December 31, 2013 were adjusted to the lower of their carrying amount or fair value less cost to sell. At December 31, 2013, the fair value of certain assets held for sale was lower than the carrying amount, resulting in a loss of $20.0 million which was recognized during the fourth quarter of 2013 and is reported within Restructuring and related impairment charges in our consolidated statements of comprehensive income (loss). See Note 16. Restructuring and Related Impairment Charges for further discussion. | ||||||||||||||||||||||||||||||||||||||||
In 2013, long-lived assets with a carrying amount of $63.0 million were written down to their fair value of $49.5 million, resulting in losses of $13.5 million, which were recognized during the fourth quarter of 2013 and were reported within Restructuring and related impairment charges in our consolidated statements of comprehensive income (loss). Long-lived assets are reported within Property and equipment, net in our consolidated balance sheets. | ||||||||||||||||||||||||||||||||||||||||
We have master International Swaps and Derivatives Association (“ISDA”) agreements in place with our derivative instrument counterparties. These ISDA agreements provide for final close out netting with our counterparties for all positions in the case of default or termination of the ISDA agreement. We have determined that our ISDA agreements provide us with rights of setoff on the fair value of derivative instruments in a gain position and those in a loss position with the same counterparty. We have elected not to offset such derivative instrument fair values in our consolidated balance sheets. | ||||||||||||||||||||||||||||||||||||||||
As of December 31, 2014 and December 31, 2013, no cash collateral was received or pledged under our ISDA agreements. See Credit Related Contingent Features for further discussion on contingent collateral requirements for our derivative instruments. | ||||||||||||||||||||||||||||||||||||||||
The following table presents information about the Company’s offsetting of financial assets under master netting agreements with derivative counterparties: | ||||||||||||||||||||||||||||||||||||||||
Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements | ||||||||||||||||||||||||||||||||||||||||
As of December 31, 2014 | As of December 31, 2013 | |||||||||||||||||||||||||||||||||||||||
Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheet | Gross Amount of Eligible Offsetting | Cash Collateral | Net Amount of | Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheet | Gross Amount of Eligible Offsetting | Cash Collateral | Net Amount of | |||||||||||||||||||||||||||||||||
Recognized | Received | Derivative Assets | Recognized | Received | Derivative Assets | |||||||||||||||||||||||||||||||||||
Derivative Liabilities | Derivative Assets | |||||||||||||||||||||||||||||||||||||||
(In thousands of dollars) | ||||||||||||||||||||||||||||||||||||||||
Derivatives subject to master netting agreements | $ | 63,981 | $ | (63,981 | ) | $ | — | $ | — | $ | 188,576 | $ | (91,627 | ) | $ | — | $ | 96,949 | ||||||||||||||||||||||
Total | $ | 63,981 | $ | (63,981 | ) | $ | — | $ | — | $ | 188,576 | $ | (91,627 | ) | $ | — | $ | 96,949 | ||||||||||||||||||||||
The following table presents information about the Company’s offsetting of financial liabilities under master netting agreements with derivative counterparties: | ||||||||||||||||||||||||||||||||||||||||
Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements | ||||||||||||||||||||||||||||||||||||||||
As of December 31, 2014 | As of December 31, 2013 | |||||||||||||||||||||||||||||||||||||||
Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheet | Gross Amount of Eligible Offsetting | Cash Collateral | Net Amount of | Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheet | Gross Amount of Eligible Offsetting | Cash Collateral | Net Amount of | |||||||||||||||||||||||||||||||||
Recognized | Pledged | Derivative Liabilities | Recognized | Pledged | Derivative Liabilities | |||||||||||||||||||||||||||||||||||
Derivative Assets | Derivative Liabilities | |||||||||||||||||||||||||||||||||||||||
(In thousands of dollars) | ||||||||||||||||||||||||||||||||||||||||
Derivatives subject to master netting agreements | $ | (767,635 | ) | $ | 63,981 | $ | — | $ | (703,654 | ) | $ | (100,260 | ) | $ | 91,627 | $ | — | $ | (8,633 | ) | ||||||||||||||||||||
Total | $ | (767,635 | ) | $ | 63,981 | $ | — | $ | (703,654 | ) | $ | (100,260 | ) | $ | 91,627 | $ | — | $ | (8,633 | ) | ||||||||||||||||||||
Derivative Instruments | ||||||||||||||||||||||||||||||||||||||||
We are exposed to market risk attributable to changes in interest rates, foreign currency exchange rates and fuel prices. We manage these risks through a combination of our normal operating and financing activities and through the use of derivative financial instruments pursuant to our hedging practices and policies. The financial impact of these hedging instruments is primarily offset by corresponding changes in the underlying exposures being hedged. We achieve this by closely matching the amount, term and conditions of the derivative instrument with the underlying risk being hedged. Although certain of our derivative financial instruments do not qualify or are not accounted for under hedge accounting, we do not hold or issue derivative financial instruments for trading or other speculative purposes. We monitor our derivative positions using techniques including market valuations and sensitivity analyses. | ||||||||||||||||||||||||||||||||||||||||
We enter into various forward, swap and option contracts to manage our interest rate exposure and to limit our exposure to fluctuations in foreign currency exchange rates and fuel prices. These instruments are recorded on the balance sheet at their fair value and the vast majority are designated as hedges. We also have non-derivative financial instruments designated as hedges of our net investment in our foreign operations and investments. | ||||||||||||||||||||||||||||||||||||||||
At inception of the hedge relationship, a derivative instrument that hedges the exposure to changes in the fair value of a firm commitment or a recognized asset or liability is designated as a fair value hedge. A derivative instrument that hedges a forecasted transaction or the variability of cash flows related to a recognized asset or liability is designated as a cash flow hedge. | ||||||||||||||||||||||||||||||||||||||||
Changes in the fair value of derivatives that are designated as fair value hedges are offset against changes in the fair value of the underlying hedged assets, liabilities or firm commitments. Gains and losses on derivatives that are designated as cash flow hedges are recorded as a component of Accumulated other comprehensive (loss) income until the underlying hedged transactions are recognized in earnings. The foreign currency transaction gain or loss of our non-derivative financial instruments and the changes in the fair value of derivatives designated as hedges of our net investment in foreign operations and investments are recognized as a component of Accumulated other comprehensive (loss) income along with the associated foreign currency translation adjustment of the foreign operation. | ||||||||||||||||||||||||||||||||||||||||
On an ongoing basis, we assess whether derivatives used in hedging transactions are "highly effective" in offsetting changes in the fair value or cash flow of hedged items. We use the long-haul method to assess hedge effectiveness using regression analysis for each hedge relationship under our interest rate, foreign currency and fuel hedging programs. We apply the same methodology on a consistent basis for assessing hedge effectiveness to all hedges within each hedging program (i.e., interest rate, foreign currency and fuel). We perform regression analyses over an observation period of up to three years, utilizing market data relevant to the hedge horizon of each hedge relationship. High effectiveness is achieved when a statistically valid relationship reflects a high degree of offset and correlation between the changes in the fair values of the derivative instrument and the hedged item. The determination of ineffectiveness is based on the amount of dollar offset between the change in fair value of the derivative instrument and the change in fair value of the hedged item at the end of the reporting period. If it is determined that a derivative is not highly effective as a hedge or hedge accounting is discontinued, any change in fair value of the derivative since the last date at which it was determined to be effective is recognized in earnings. In addition, the ineffective portion of our highly effective hedges is immediately recognized in earnings and reported in Other income (expense) in our consolidated statements of comprehensive income (loss). | ||||||||||||||||||||||||||||||||||||||||
Cash flows from derivative instruments that are designated as fair value or cash flow hedges are classified in the same category as the cash flows from the underlying hedged items. In the event that hedge accounting is discontinued, cash flows subsequent to the date of discontinuance are classified within investing activities. Cash flows from derivative instruments not designated as hedging instruments are classified as investing activities. | ||||||||||||||||||||||||||||||||||||||||
We consider the classification of the underlying hedged item’s cash flows in determining the classification for the designated derivative instrument’s cash flows. We classify derivative instrument cash flows from hedges of benchmark interest rate or hedges of fuel expense as operating activities due to the nature of the hedged item. Likewise, we classify derivative instrument cash flows from hedges of foreign currency risk on our newbuild ship payments as investing activities and derivative instrument cash flows from hedges of foreign currency risk on debt payments as financing activities. | ||||||||||||||||||||||||||||||||||||||||
Interest Rate Risk | ||||||||||||||||||||||||||||||||||||||||
Our exposure to market risk for changes in interest rates relates to our long-term debt obligations including future interest payments. At December 31, 2014, approximately 28.5% of our long-term debt was effectively fixed as compared to 34.6% as of December 31, 2013. We use interest rate swap agreements to modify our exposure to interest rate movements and to manage our interest expense. | ||||||||||||||||||||||||||||||||||||||||
Market risk associated with our long-term fixed rate debt is the potential increase in fair value resulting from a decrease in interest rates. We use interest rate swap agreements that effectively convert a portion of our fixed-rate debt to a floating-rate basis to manage this risk. At December 31, 2014 and 2013, we maintained interest rate swap agreements on the $420.0 million fixed rate portion of our Oasis of the Seas unsecured amortizing term loan and on the $650.0 million unsecured senior notes due 2022. The interest rate swap agreements on Oasis of the Seas debt effectively changed the interest rate on the balance of the unsecured term loan, which was $245.0 million as of December 31, 2014, from a fixed rate of 5.41% to a LIBOR-based floating rate equal to LIBOR plus 3.87%, currently approximately 4.20%. The interest rate swap agreements on the $650.0 million unsecured senior notes effectively changed the interest rate of the unsecured senior notes from a fixed rate of 5.25% to a LIBOR-based floating rate equal to LIBOR plus 3.63%, currently approximately 3.86%. These interest rate swap agreements are accounted for as fair value hedges. | ||||||||||||||||||||||||||||||||||||||||
Market risk associated with our long-term floating rate debt is the potential increase in interest expense from an increase in interest rates. We use interest rate swap agreements that effectively convert a portion of our floating-rate debt to a fixed-rate basis to manage this risk. At December 31, 2014 and 2013, we maintained forward-starting interest rate swap agreements that hedge the anticipated unsecured amortizing term loans that will finance our purchase of Anthem of the Seas. Forward-starting interest rate swaps hedging the Anthem of the Seas loan will effectively convert the interest rate for $725.0 million of the anticipated loan balance from LIBOR plus 1.30% to a fixed rate of 3.86% (inclusive of margin) beginning in April 2015. These interest rate swap agreements are accounted for as cash flow hedges. | ||||||||||||||||||||||||||||||||||||||||
In addition, at December 31, 2014 and December 31, 2013, we maintained interest rate swap agreements on our Celebrity Reflection term loan. Our interest rate swap agreements effectively converted the interest rate on a portion of the Celebrity Reflection unsecured amortizing term loan balance of approximately $545.4 million from LIBOR plus 0.40% to a fixed rate (including applicable margin) of 2.85% through the term of the loan. Furthermore, at December 31, 2014, we maintained interest rate swap agreements on our Quantum of the Seas term loan. Our interest rate swap agreements effectively converted the interest rate on a portion of the Quantum of the Seas unsecured amortizing term loan balance of approximately $735.0 million from LIBOR plus 1.30% to a fixed rate of 3.74% (inclusive of margin) through the term of the loan. These interest rate swap agreements are accounted for as cash flow hedges. | ||||||||||||||||||||||||||||||||||||||||
The notional amount of interest rate swap agreements related to outstanding debt and on our current unfunded financing arrangements as of December 31, 2014 and 2013 was $2.9 billion and $3.0 billion, respectively. | ||||||||||||||||||||||||||||||||||||||||
Foreign Currency Exchange Rate Risk | ||||||||||||||||||||||||||||||||||||||||
Derivative Instruments | ||||||||||||||||||||||||||||||||||||||||
Our primary exposure to foreign currency exchange rate risk relates to our ship construction contracts denominated in Euros, our foreign currency denominated debt and our international business operations. We enter into foreign currency forward contracts, collar options and cross currency swap agreements to manage portions of the exposure to movements in foreign currency exchange rates. As of December 31, 2014, the aggregate cost of our ships on order was approximately $5.0 billion, of which we had deposited $394.4 million as of such date. Approximately 28.8% and 36.3% of the aggregate cost of the ships under construction was exposed to fluctuations in the Euro exchange rate at December 31, 2014 and 2013, respectively. The majority of our foreign currency forward contracts, collar options and cross currency swap agreements are accounted for as cash flow, fair value or net investment hedges depending on the designation of the related hedge. | ||||||||||||||||||||||||||||||||||||||||
During 2013, we entered into foreign currency forward contracts to hedge €365.0 million of our €745.0 million 5.625% unsecured senior notes due January 2014. These foreign currency forward contracts were accounted for as cash flow hedges and matured January 2014. | ||||||||||||||||||||||||||||||||||||||||
On a regular basis, we enter into foreign currency forward contracts and, from time to time, we utilize cross-currency swap agreements to minimize the volatility resulting from the remeasurement of net monetary assets and liabilities denominated in a currency other than our functional currency or the functional currencies of our foreign subsidiaries. During 2014, we maintained an average of approximately $474.0 million of these foreign currency forward contracts. These instruments are not designated as hedging instruments. In 2014, 2013 and 2012 changes in the fair value of the foreign currency forward contracts were (losses) gains of approximately $(48.6) million, $(19.3) million and $7.7 million, respectively, which offset gains (losses) arising from the remeasurement of monetary assets and liabilities denominated in foreign currencies in those same years of $49.5 million, $13.4 million and $(11.8) million, respectively. These changes were recognized in earnings within Other income (expense) in our consolidated statements of comprehensive income (loss). | ||||||||||||||||||||||||||||||||||||||||
We consider our investments in our foreign operations to be denominated in relatively stable currencies and of a long-term nature. In January 2014, we entered into foreign currency forward contracts and designated them as hedges of a portion of our net investments in Pullmantur and TUI Cruises of €415.6 million, or approximately $502.9 million, based on the exchange rate at December 31, 2014. These forward currency contracts mature in April 2016. | ||||||||||||||||||||||||||||||||||||||||
The notional amount of outstanding foreign exchange contracts, including our forward contracts and collar options, as of December 31, 2014 and 2013 was $3.0 billion and $2.5 billion, respectively. | ||||||||||||||||||||||||||||||||||||||||
Non-Derivative Instruments | ||||||||||||||||||||||||||||||||||||||||
We also address the exposure of our investments in foreign operations by denominating a portion of our debt in our subsidiaries' and investments' functional currencies and designating it as a hedge of these subsidiaries and investments. We designated debt as a hedge of our net investments in Pullmantur and TUI Cruises of approximately €139.4 million and €544.9 million, or approximately $168.7 million and $750.8 million, through December 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||||||||||||||||||
Fuel Price Risk | ||||||||||||||||||||||||||||||||||||||||
Our exposure to market risk for changes in fuel prices relates primarily to the consumption of fuel on our ships. We use fuel swap agreements and fuel call options to mitigate the financial impact of fluctuations in fuel prices. | ||||||||||||||||||||||||||||||||||||||||
Our fuel swap agreements are accounted for as cash flow hedges. At December 31, 2014, we have hedged the variability in future cash flows for certain forecasted fuel transactions occurring through 2018. As of December 31, 2014 and 2013, we had the following outstanding fuel swap agreements: | ||||||||||||||||||||||||||||||||||||||||
Fuel Swap Agreements | ||||||||||||||||||||||||||||||||||||||||
As of December 31, 2014 | As of December 31, 2013 | |||||||||||||||||||||||||||||||||||||||
(metric tons) | ||||||||||||||||||||||||||||||||||||||||
2014 | — | 762,000 | ||||||||||||||||||||||||||||||||||||||
2015 | 806,000 | 665,000 | ||||||||||||||||||||||||||||||||||||||
2016 | 802,000 | 372,000 | ||||||||||||||||||||||||||||||||||||||
2017 | 525,000 | 74,000 | ||||||||||||||||||||||||||||||||||||||
2018 | 226,000 | — | ||||||||||||||||||||||||||||||||||||||
Fuel Swap Agreements | ||||||||||||||||||||||||||||||||||||||||
As of December 31, 2014 | As of December 31, 2013 | |||||||||||||||||||||||||||||||||||||||
(% hedged) | ||||||||||||||||||||||||||||||||||||||||
Projected fuel purchases for year: | ||||||||||||||||||||||||||||||||||||||||
2014 | — | 57 | % | |||||||||||||||||||||||||||||||||||||
2015 | 58 | % | 45 | % | ||||||||||||||||||||||||||||||||||||
2016 | 55 | % | 25 | % | ||||||||||||||||||||||||||||||||||||
2017 | 35 | % | 5 | % | ||||||||||||||||||||||||||||||||||||
2018 | 15 | % | — | % | ||||||||||||||||||||||||||||||||||||
At December 31, 2014 and 2013, $(223.1) million and $9.5 million, respectively, of estimated unrealized net (loss) gain associated with our cash flow hedges pertaining to fuel swap agreements were expected to be reclassified to earnings from Accumulated other comprehensive (loss) income within the next twelve months. Reclassification is expected to occur as the result of fuel consumption associated with our hedged forecasted fuel purchases. | ||||||||||||||||||||||||||||||||||||||||
The fair value and line item caption of derivative instruments recorded within our consolidated balance sheets were as follows: | ||||||||||||||||||||||||||||||||||||||||
Fair Value of Derivative Instruments | ||||||||||||||||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||||||||||||||||||
Balance Sheet | As of December 31, 2014 | As of December 31, 2013 | Balance Sheet | As of December 31, 2014 | As of December 31, 2013 | |||||||||||||||||||||||||||||||||||
Location | Fair Value | Fair Value | Location | Fair Value | Fair Value | |||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments under ASC 815-20(1) | ||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | Other assets | $ | — | $ | 56,571 | Other long-term liabilities | $ | 65,768 | $ | 66,920 | ||||||||||||||||||||||||||||||
Foreign currency forward contracts | Derivative financial instruments | — | 61,596 | Derivative financial instruments | 17,619 | — | ||||||||||||||||||||||||||||||||||
Foreign currency forward contracts | Other assets | 63,981 | 13,783 | Other long-term liabilities | 164,627 | — | ||||||||||||||||||||||||||||||||||
Foreign currency collar options | Other assets | — | 22,172 | Other long-term liabilities | — | — | ||||||||||||||||||||||||||||||||||
Foreign currency collar options | Derivative financial instruments | — | — | Derivative financial instruments | 21,855 | — | ||||||||||||||||||||||||||||||||||
Fuel swaps | Derivative financial instruments | — | 10,902 | Derivative financial instruments | 227,512 | 1,657 | ||||||||||||||||||||||||||||||||||
Fuel swaps | Other assets | — | 8,205 | Other long-term liabilities | 270,254 | 9,052 | ||||||||||||||||||||||||||||||||||
Total derivatives designated as hedging instruments under ASC 815-20 | 63,981 | 173,229 | 767,635 | 77,629 | ||||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments under ASC 815-20 | ||||||||||||||||||||||||||||||||||||||||
Foreign currency forward contracts | Derivative Financial Instruments | — | 15,347 | Derivative financial instruments | — | 22,631 | ||||||||||||||||||||||||||||||||||
Total derivatives not designated as hedging instruments under ASC 815-20 | — | 15,347 | — | 22,631 | ||||||||||||||||||||||||||||||||||||
Total derivatives | $ | 63,981 | $ | 188,576 | $ | 767,635 | $ | 100,260 | ||||||||||||||||||||||||||||||||
___________________________________ | ||||||||||||||||||||||||||||||||||||||||
-1 | Accounting Standard Codification 815-20 "Derivatives and Hedging." | |||||||||||||||||||||||||||||||||||||||
The carrying value and line item caption of non-derivative instruments designated as hedging instruments recorded within our consolidated balance sheets were as follows: | ||||||||||||||||||||||||||||||||||||||||
Carrying Value | ||||||||||||||||||||||||||||||||||||||||
Non-derivative instrument designated as | Balance Sheet Location | As of December 31, 2014 | As of December 31, 2013 | |||||||||||||||||||||||||||||||||||||
hedging instrument under ASC 815-20 | ||||||||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||||
Foreign currency debt | Current portion of long-term debt | $ | — | $ | 477,442 | |||||||||||||||||||||||||||||||||||
Foreign currency debt | Long-term debt | 168,718 | 273,354 | |||||||||||||||||||||||||||||||||||||
$ | 168,718 | $ | 750,796 | |||||||||||||||||||||||||||||||||||||
The effect of derivative instruments qualifying and designated as hedging instruments and the related hedged items in fair value hedges on the consolidated statements of comprehensive income (loss) was as follows: | ||||||||||||||||||||||||||||||||||||||||
Location of Gain | Amount of Gain (Loss) | Amount of (Loss) Gain | ||||||||||||||||||||||||||||||||||||||
(Loss) | Recognized in | Recognized in | ||||||||||||||||||||||||||||||||||||||
Recognized in | Income on Derivative | Income on Hedged Item | ||||||||||||||||||||||||||||||||||||||
Income on | ||||||||||||||||||||||||||||||||||||||||
Derivative and | ||||||||||||||||||||||||||||||||||||||||
Derivatives and related Hedged Items | Hedged Item | Year Ended December 31, 2014 | Year Ended December 31, 2013 | Year Ended December 31, 2014 | Year Ended December 31, 2013 | |||||||||||||||||||||||||||||||||||
under ASC 815-20 Fair Value Hedging | ||||||||||||||||||||||||||||||||||||||||
Relationships | ||||||||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | Interest expense, net of interest capitalized | $ | 12,217 | $ | 9,354 | $ | 17,403 | $ | 37,745 | |||||||||||||||||||||||||||||||
Interest rate swaps | Other income (expense) | 42,530 | (71,630 | ) | (34,304 | ) | 68,743 | |||||||||||||||||||||||||||||||||
$ | 54,747 | $ | (62,276 | ) | $ | (16,901 | ) | $ | 106,488 | |||||||||||||||||||||||||||||||
The effect of derivative instruments qualifying and designated as cash flow hedging instruments on the consolidated financial statements was as follows: | ||||||||||||||||||||||||||||||||||||||||
Amount of (Loss) Gain | Location of | Amount of (Loss) Gain | Location of | Amount of (Loss) Gain | ||||||||||||||||||||||||||||||||||||
Recognized in OCI | (Loss) Gain Reclassified | Reclassified from Accumulated | (Loss) Gain Recognized | Recognized in Income | ||||||||||||||||||||||||||||||||||||
on Derivative | from Accumulated | OCI into Income | in Income on | on Derivative (Ineffective | ||||||||||||||||||||||||||||||||||||
(Effective Portion) | OCI into Income | (Effective Portion) | Derivative | Portion and | ||||||||||||||||||||||||||||||||||||
(Effective Portion) | (Ineffective | Amount | ||||||||||||||||||||||||||||||||||||||
Portion and Amount Excluded from | Excluded from | |||||||||||||||||||||||||||||||||||||||
Effectiveness | Effectiveness testing) | |||||||||||||||||||||||||||||||||||||||
Derivatives under | Year Ended December 31, 2014 | Year Ended December 31, 2013 | Year Ended December 31, 2014 | Year Ended December 31, 2013 | Testing) | Year Ended December 31, 2014 | Year Ended December 31, 2013 | |||||||||||||||||||||||||||||||||
ASC 815-20 Cash Flow | ||||||||||||||||||||||||||||||||||||||||
Hedging Relationships | ||||||||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||||
Cross currency swaps | $ | — | $ | — | Interest Expense | $ | (261 | ) | $ | (3,531 | ) | Other income (expense) | $ | — | $ | — | ||||||||||||||||||||||||
Interest rate swaps | (97,851 | ) | 111,223 | Other income (expense) | — | — | Other income (expense) | (99 | ) | 431 | ||||||||||||||||||||||||||||||
Foreign currency forward contracts | (246,627 | ) | 68,364 | Depreciation and amortization expenses | (1,887 | ) | (1,797 | ) | Other income (expense) | (34 | ) | 9 | ||||||||||||||||||||||||||||
Foreign currency forward contracts | — | — | Other income (expense) | (4,291 | ) | 27,423 | Other income (expense) | — | — | |||||||||||||||||||||||||||||||
Foreign currency forward contracts | — | — | Interest expense | (57 | ) | (440 | ) | Other income (expense) | — | — | ||||||||||||||||||||||||||||||
Foreign currency collar options | (44,028 | ) | 13,199 | Depreciation and amortization expenses | — | — | Other income (expense) | — | — | |||||||||||||||||||||||||||||||
Fuel swaps | (515,324 | ) | 4,642 | Fuel | (27,984 | ) | 47,944 | Other income (expense) | (14,936 | ) | (3,413 | ) | ||||||||||||||||||||||||||||
$ | (903,830 | ) | $ | 197,428 | $ | (34,480 | ) | $ | 69,599 | $ | (15,069 | ) | $ | (2,973 | ) | |||||||||||||||||||||||||
The effect of non-derivative instruments qualifying and designated as net investment hedging instruments on the consolidated financial statements was as follows: | ||||||||||||||||||||||||||||||||||||||||
Amount of Gain (Loss) | Location of Gain | Amount of Gain (Loss) Recognized in Income | ||||||||||||||||||||||||||||||||||||||
Recognized in OCI | (Loss) in Income | (Ineffective Portion and | ||||||||||||||||||||||||||||||||||||||
(Effective Portion) | (Ineffective Portion | Amount Excluded from | ||||||||||||||||||||||||||||||||||||||
and Amount | Effectiveness Testing) | |||||||||||||||||||||||||||||||||||||||
Excluded from | ||||||||||||||||||||||||||||||||||||||||
Non-derivative instruments under ASC 815-20 | Year Ended December 31, 2014 | Year Ended December 31, 2013 | Effectiveness Testing) | Year Ended December 31, 2014 | Year Ended December 31, 2013 | |||||||||||||||||||||||||||||||||||
Net Investment Hedging Relationships | ||||||||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||||
Foreign Currency Debt | $ | 25,382 | $ | (34,295 | ) | Other income (expense) | $ | — | $ | — | ||||||||||||||||||||||||||||||
$ | 25,382 | $ | (34,295 | ) | $ | — | $ | — | ||||||||||||||||||||||||||||||||
The effect of derivatives not designated as hedging instruments on the consolidated financial statements was as follows: | ||||||||||||||||||||||||||||||||||||||||
Amount of Gain (Loss) Recognized | ||||||||||||||||||||||||||||||||||||||||
in Income on Derivative | ||||||||||||||||||||||||||||||||||||||||
Derivatives Not Designated as Hedging | Location of Gain (Loss) | Year Ended December 31, 2014 | Year Ended December 31, 2013 | |||||||||||||||||||||||||||||||||||||
Instruments under ASC 815-20 | Recognized in Income | |||||||||||||||||||||||||||||||||||||||
on Derivative | ||||||||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||||
Foreign currency forward contracts | Other income (expense) | $ | (48,791 | ) | $ | (21,244 | ) | |||||||||||||||||||||||||||||||||
Fuel swaps | Other income (expense) | (1,795 | ) | 243 | ||||||||||||||||||||||||||||||||||||
Fuel call options | Other income (expense) | — | (23 | ) | ||||||||||||||||||||||||||||||||||||
$ | (50,586 | ) | $ | (21,024 | ) | |||||||||||||||||||||||||||||||||||
Credit Related Contingent Features | ||||||||||||||||||||||||||||||||||||||||
Our current interest rate derivative instruments may require us to post collateral if our Standard & Poor's and Moody's credit ratings remain below specified levels. Specifically, if on the fifth anniversary of entering into a derivative transaction or on any succeeding fifth-year anniversary our credit ratings for our senior unsecured debt were to be below BBB- by Standard & Poor's and Baa3 by Moody's, then each counterparty to such derivative transaction with whom we are in a net liability position that exceeds the applicable minimum call amount may demand that we post collateral in an amount equal to the net liability position. The amount of collateral required to be posted following such event will change each time our net liability position increases or decreases by more than the applicable minimum call amount. If our credit rating for our senior unsecured debt is subsequently equal to, or above BBB- by Standard & Poor's or Baa3 by Moody's, then any collateral posted at such time will be released to us and we will no longer be required to post collateral unless we meet the collateral trigger requirement at the next fifth-year anniversary. Currently, our senior unsecured debt credit rating is BB with a positive outlook by Standard & Poor's and Ba1 with a stable outlook by Moody's. We currently have five interest rate derivative hedges that have a term of at least five years. The aggregate fair values of all derivative instruments with such credit-related contingent features in net liability positions as of December 31, 2014 and December 31, 2013 were $65.8 million and $66.9 million, respectively, which do not include the impact of any such derivatives in net asset positions. The earliest that any of the five interest rate derivative hedges will reach their fifth anniversary is November 2016. Therefore, as of December 31, 2014, we were not required to post collateral for any of our derivative transactions. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Commitments and Contingencies | Commitments and Contingencies | |||
Capital Expenditures | ||||
Our future capital commitments consist primarily of new ship orders. As of December 31, 2014, we had two Quantum-class ships and two Oasis-class ships on order for our Royal Caribbean International brand with an aggregate capacity of approximately 19,200 berths. | ||||
In February 2015, we reached conditional agreements with STX France to build two ships of a new generation of Celebrity Cruises ships, known as "Project Edge." The agreement is subject to certain conditions to effectiveness expected to occur in the second quarter of 2015. The ships will each have a capacity of approximately 2,900 berths and are expected to enter service in the second half of 2018 and the first half of 2020. | ||||
During 2014, our conditional agreement with STX France to build the fourth Oasis-class ship for Royal Caribbean International became effective. We received commitments for the unsecured financing of the ship for up to 80% of the ship’s contract price through a facility to be guaranteed 100% by COFACE, the official export credit agency of France. The ship will have a capacity of approximately 5,450 berths and is expected to enter service in the second quarter of 2018. In January 2015, we entered into a credit agreement for the US dollar financing of the fourth Oasis-class ship. The credit agreement makes available to us an unsecured term loan in an amount up to the US Dollar equivalent of €931.2 million, or approximately $1.1 billion, based on the exchange rate as of the transaction date. The loan amortizes semi-annually and will mature 12 years following delivery of the ship. At our election, prior to the ship delivery, interest on the loan will accrue either (1) at a fixed rate of 3.82% (inclusive of the applicable margin) or (2) at a floating rate equal to LIBOR plus 1.10%. | ||||
In 2014, we entered into a credit agreement for the US dollar financing of a portion of the third Oasis-class ship. The credit agreement makes available to us an unsecured term loan in an amount up to the US dollar equivalent of €178.4 million, or approximately $215.9 million, based on the exchange rate at December 31, 2014. The loan amortizes semi-annually and will mature 12 years following delivery of the ship. At our election, prior to the ship delivery, interest on the loan will accrue either (1) at a fixed rate of 2.53% (inclusive of the applicable margin) or (2) at a floating rate equal to LIBOR plus 1.20%. In connection with this credit agreement, we amended the €892.2 million credit agreement, originally entered into in 2013 to finance the ship, reducing the maximum facility amount to approximately €713.8 million. Both of the facilities are 100% guaranteed by COFACE. | ||||
As of December 31, 2014, the aggregate cost of our ships on order, not including those subject to closing conditions, was approximately $5.0 billion, of which we had deposited $394.4 million as of such date. Approximately 28.8% of the aggregate cost was exposed to fluctuations in the Euro exchange rate at December 31, 2014. (See Note 14. Fair Value Measurements and Derivative Instruments). | ||||
Litigation | ||||
A class action complaint was filed in June 2011 against Royal Caribbean Cruises Ltd. in the United States District Court for the Southern District of Florida on behalf of a purported class of stateroom attendants employed onboard Royal Caribbean International cruise vessels. The complaint alleged that the stateroom attendants were required to pay other crew members to help with their duties and that certain stateroom attendants were required to work back of house assignments without the ability to earn gratuities, in each case in violation of the U.S. Seaman’s Wage Act. In May 2012, the district court granted our motion to dismiss the complaint on the basis that the applicable collective bargaining agreement requires any such claims to be arbitrated. The United States Court of Appeals, 11th Circuit, affirmed the district court’s dismissal and denied the plaintiffs’ petition for re-hearing and re-hearing en banc. In October 2014, the United States Supreme Court denied the plaintiffs’ request to review the order compelling arbitration. Subsequently, approximately 575 crew members submitted demands for arbitration. The demands make substantially the same allegations as in the federal court complaint and are similarly seeking damages, wage penalties and interest in an indeterminate amount. Unlike the federal court complaint, the demands for arbitration are being brought individually by each of the crew members and not on behalf of a purported class of stateroom attendants. At this time, we are unable to estimate the possible impact of this matter on us. However, we believe the underlying claims made against us are without merit, and we intend to vigorously defend ourselves against them. | ||||
We are routinely involved in other claims typical within the cruise vacation industry. The majority of these claims are covered by insurance. We believe the outcome of such claims, net of expected insurance recoveries, will not have a material adverse impact on our financial condition or results of operations and cash flows. | ||||
Operating Leases | ||||
In July 2002, we entered into an operating lease denominated in British pound sterling for the Brilliance of the Seas. In December 2014, we terminated the leasing of Brilliance of the Seas and, as part of the agreement, purchased the ship for a net settlement purchase price of approximately £175.4 million or $275.4 million. Refer to Note 5. Property and Equipment for further discussion on the transaction. Prior to the purchase, the lease payments varied based on sterling LIBOR and were included in Other operating expenses in our consolidated statements of comprehensive income (loss). Brilliance of the Seas lease expense amounts were approximately £11.7 million, £12.3 million and £14.6 million, or approximately $19.3 million, $19.1 million and $23.3 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||
We are obligated under other noncancelable operating leases primarily for offices, warehouses and motor vehicles. As of December 31, 2014, future minimum lease payments under noncancelable operating leases were as follows (in thousands): | ||||
Year | ||||
2015 | $ | 18,154 | ||
2016 | 16,279 | |||
2017 | 12,471 | |||
2018 | 9,919 | |||
2019 | 7,699 | |||
Thereafter | 124,997 | |||
$ | 189,519 | |||
Total expense for all operating leases amounted to $52.0 million, $57.5 million and $61.6 million for the years 2014, 2013 and 2012, respectively. | ||||
Other | ||||
Some of the contracts that we enter into include indemnification provisions that obligate us to make payments to the counterparty if certain events occur. These contingencies generally relate to changes in taxes, increased lender capital costs and other similar costs. The indemnification clauses are often standard contractual terms and are entered into in the normal course of business. There are no stated or notional amounts included in the indemnification clauses and we are not able to estimate the maximum potential amount of future payments, if any, under these indemnification clauses. We have not been required to make any payments under such indemnification clauses in the past and, under current circumstances, we do not believe an indemnification in any material amount is probable. | ||||
If (i) any person other than A. Wilhelmsen AS. and Cruise Associates and their respective affiliates (the "Applicable Group") acquires ownership of more than 33% of our common stock and the Applicable Group owns less of our common stock than such person, or (ii) subject to certain exceptions, during any 24-month period, a majority of the Board is no longer comprised of individuals who were members of the Board on the first day of such period, we may be obligated to prepay indebtedness outstanding under the majority of our credit facilities, which we may be unable to replace on similar terms. Certain of our outstanding debt securities also contain change of control provisions that would be triggered by the acquisition of greater than 50% of our common stock by a person other than a member of the Applicable Group coupled with a ratings downgrade. If this were to occur, it would have an adverse impact on our liquidity and operations. | ||||
At December 31, 2014, we have future commitments to pay for our usage of certain port facilities, marine consumables, services and maintenance contracts as follows (in thousands): | ||||
Year | ||||
2015 | $ | 214,817 | ||
2016 | 149,336 | |||
2017 | 154,253 | |||
2018 | 82,010 | |||
2019 | 115,002 | |||
Thereafter | 127,843 | |||
$ | 843,261 | |||
Restructuring_and_Related_Char
Restructuring and Related Charges | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||||||||||||||
Restructuring and Related Charges | Restructuring and Related Impairment Charges | |||||||||||||||||||||||||||||||||||
For the years ended December 31, 2014 and December 31, 2013, we incurred the following restructuring and related impairment charges in connection with our profitability initiatives (in thousands): | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||
Restructuring exit costs | $ | 4,318 | $ | 23,432 | ||||||||||||||||||||||||||||||||
Impairment charges | — | 33,514 | ||||||||||||||||||||||||||||||||||
Restructuring and related impairment charges | $ | 4,318 | $ | 56,946 | ||||||||||||||||||||||||||||||||
The following are the profitability initiatives: | ||||||||||||||||||||||||||||||||||||
Consolidation of Global Sales, Marketing, General and Administrative Structure | ||||||||||||||||||||||||||||||||||||
One of our profitability initiatives relates to restructuring and consolidation of our global sales, marketing and general and administrative structure. Activities related to this initiative include the consolidation of most of our call centers located outside of the United States and the establishment of brand dedicated sales, marketing and revenue management teams in key priority markets. This resulted in the elimination of approximately 500 shore-side positions in 2013, primarily from our international markets, resulting in recognition of a liability for one-time termination benefits during the year ended December 31, 2013. Additionally, we incurred contract termination costs and other related costs consisting of legal and consulting fees to implement this initiative. | ||||||||||||||||||||||||||||||||||||
As a result of these actions, we incurred restructuring exit costs of $1.1 million and $18.2 million for the years ended December 31, 2014 and December 31, 2013, respectively, which are reported in Restructuring and related impairment charges in our consolidated statements of comprehensive income (loss). The costs incurred in 2014 are mainly related to discretionary bonus payments paid to persons whose positions were eliminated as part of our restructuring activities. | ||||||||||||||||||||||||||||||||||||
The following table summarizes our restructuring exit costs related to the above initiative (in thousands): | ||||||||||||||||||||||||||||||||||||
Beginning | Accruals | Payments | Beginning | Accruals | Payments | Ending Balance December 31, 2014 | Cumulative | Expected | ||||||||||||||||||||||||||||
Balance | Balance | Charges | Additional | |||||||||||||||||||||||||||||||||
1-Jan-13 | 1-Jan-14 | Incurred | Expenses | |||||||||||||||||||||||||||||||||
to be | ||||||||||||||||||||||||||||||||||||
Incurred | ||||||||||||||||||||||||||||||||||||
Termination benefits | $ | — | $ | 9,638 | $ | 1,323 | $ | 8,315 | $ | 917 | $ | 8,926 | $ | 306 | $ | 10,555 | $ | — | ||||||||||||||||||
Contract termination costs | — | 4,142 | 4,016 | 126 | (58 | ) | 68 | — | 4,084 | — | ||||||||||||||||||||||||||
Other related costs | — | 4,379 | 2,982 | 1,397 | 234 | 1,334 | 297 | 4,613 | — | |||||||||||||||||||||||||||
Total | $ | — | $ | 18,159 | $ | 8,321 | $ | 9,838 | $ | 1,093 | $ | 10,328 | $ | 603 | $ | 19,252 | $ | — | ||||||||||||||||||
In connection with this initiative, we incurred approximately $7.4 million of other costs during 2014 that primarily consisted of call center transition costs and accelerated depreciation on lease hold improvements and were classified within Marketing, selling and administrative expenses and Depreciation and amortization expenses, respectively, in our consolidated statements of comprehensive income (loss). We have completed the restructuring activities related to this initiative and we do not expect to incur any further restructuring exit or other additional costs. | ||||||||||||||||||||||||||||||||||||
Pullmantur Restructuring | ||||||||||||||||||||||||||||||||||||
Restructuring Exit Costs | ||||||||||||||||||||||||||||||||||||
In the fourth quarter of 2013, we moved forward with an initiative related to Pullmantur’s focus on its cruise business and its expansion in Latin America. Activities related to this initiative include the sale of Pullmantur's non-core businesses. This resulted in the elimination of approximately 100 Pullmantur shore-side positions and recognition of a liability for one-time termination benefits during the fourth quarter of 2013. In the second quarter of 2014, we elected not to execute the dismissal of approximately 30 of the positions which resulted in a partial reversal of the liability. Additionally, we incurred contract termination costs and other related costs consisting of legal and consulting fees to implement this initiative. | ||||||||||||||||||||||||||||||||||||
As a result of these actions, we incurred restructuring exit costs of $3.2 million and $5.3 million for the year ended December 31, 2014 and December 31, 2013, respectively, which are reported in Restructuring and related impairment charges in our consolidated statements of comprehensive income (loss). | ||||||||||||||||||||||||||||||||||||
The following table summarizes our restructuring exit costs related to the above initiative (in thousands): | ||||||||||||||||||||||||||||||||||||
Beginning | Accruals | Payments | Beginning | Accruals | Payments | Ending Balance December 31, 2014 | Cumulative | Expected | ||||||||||||||||||||||||||||
Balance | Balance | Charges | Additional | |||||||||||||||||||||||||||||||||
1-Jan-13 | January 1, | Incurred | Expenses | |||||||||||||||||||||||||||||||||
2014 | to be | |||||||||||||||||||||||||||||||||||
Incurred(2) | ||||||||||||||||||||||||||||||||||||
Termination benefits | $ | — | $ | 3,910 | $ | — | $ | 3,910 | $ | 3,084 | $ | 4,879 | $ | 2,115 | $ | 6,994 | $ | — | ||||||||||||||||||
Contract termination costs | — | 847 | — | 847 | (607 | ) | — | 240 | 240 | — | ||||||||||||||||||||||||||
Other related costs | — | 516 | — | 516 | 748 | 1,264 | — | 1,264 | — | |||||||||||||||||||||||||||
Total | $ | — | $ | 5,273 | $ | — | $ | 5,273 | $ | 3,225 | $ | 6,143 | $ | 2,355 | $ | 8,498 | $ | — | ||||||||||||||||||
In connection with this initiative, we incurred approximately $8.9 million of other costs during 2014, associated with placing operating management closer to the Latin American market that was classified within Marketing, selling and administrative expenses in our consolidated statements of comprehensive income (loss). We have completed the restructuring activities related to this initiative and we do not expect to incur any further restructuring exit or other additional costs. | ||||||||||||||||||||||||||||||||||||
Sale of Pullmantur Non-core Businesses | ||||||||||||||||||||||||||||||||||||
As part of our Pullmantur related initiatives, on March 31, 2014, Pullmantur sold the majority of its interest in its non-core businesses. These non-core businesses included Pullmantur’s land-based tour operations, travel agency and 49% interest in its air business. In connection with the sale agreement, we retained a 19% interest in each of the non-core businesses as well as 100% ownership of the aircraft which are being dry leased to Pullmantur Air. Consistent with our Pullmantur two-month lag reporting period, we reported the impact of the sale in the second quarter of 2014. See Note 1. General for information on the basis on which we prepare our consolidated financial statements and Note 6. Other Assets for the accounting of our 19% retained interest. | ||||||||||||||||||||||||||||||||||||
The sale resulted in a gain of $0.6 million recognized during the year ended December 31, 2014, inclusive of the release of cumulative translation adjustment losses, which is classified within Other operating expenses in our consolidated statements of comprehensive income (loss). As part of the sale, we agreed to maintain commercial and bank guarantees on behalf of the buyer for a maximum period of twelve months and extended a term loan facility to Nautalia due June 30, 2016. We recorded the fair value of the guarantees and a loss reserve for the loan amount drawn, offsetting the gain recognized by $5.5 million. See Note 13. Changes in Accumulated Other Comprehensive Income (Loss) for further information on the release of the foreign currency translation losses. | ||||||||||||||||||||||||||||||||||||
The non-core businesses met the accounting criteria to be classified as held for sale during the fourth quarter of 2013 which resulted in restructuring related impairment charges of $20.0 million in 2013 to adjust the carrying value of assets held for sale to their fair value, less cost to sell. As of December 31, 2013, assets and liabilities held for sale were not material to our consolidated balance sheet and no longer exist as of December 31, 2014. The businesses did not meet the criteria for discontinued operations reporting as a result of our significant continuing involvement. |
Quarterly_Selected_Financial_D
Quarterly Selected Financial Data (Unaudited) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||||||||||||
Quarterly Selected Financial Data (Unaudited) | Quarterly Selected Financial Data (Unaudited) | |||||||||||||||||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||
Total revenues(1) | $ | 1,887,224 | $ | 1,911,220 | $ | 1,980,043 | $ | 1,882,767 | $ | 2,388,762 | $ | 2,311,749 | $ | 1,817,826 | $ | 1,854,158 | ||||||||||||||||
Operating income(2)(3)(4) | $ | 97,466 | $ | 165,632 | $ | 195,587 | $ | 113,338 | $ | 529,462 | $ | 444,209 | $ | 119,344 | $ | 74,969 | ||||||||||||||||
Net income(2)(3)(4) | $ | 26,457 | $ | 76,226 | $ | 137,673 | $ | 24,747 | $ | 490,248 | $ | 365,701 | $ | 109,768 | $ | 7,018 | ||||||||||||||||
Earnings per share: | ||||||||||||||||||||||||||||||||
Basic | $ | 0.12 | $ | 0.35 | $ | 0.62 | $ | 0.11 | $ | 2.2 | $ | 1.66 | $ | 0.5 | $ | 0.03 | ||||||||||||||||
Diluted | $ | 0.12 | $ | 0.35 | $ | 0.62 | $ | 0.11 | $ | 2.19 | $ | 1.65 | $ | 0.49 | $ | 0.03 | ||||||||||||||||
Dividends declared per share | $ | 0.25 | $ | 0.12 | $ | 0.25 | $ | 0.12 | $ | 0.3 | $ | 0.25 | $ | 0.3 | $ | 0.25 | ||||||||||||||||
___________________________________ | ||||||||||||||||||||||||||||||||
-1 | Our revenues are seasonal based on the demand for cruises. Demand is strongest for cruises during the Northern Hemisphere's summer months and holidays. | |||||||||||||||||||||||||||||||
-2 | Amounts for the fourth quarter of 2013 include an impairment charge of $33.5 million to write down the assets held for sale related to the businesses to be sold and certain long-lived assets, consisting of aircraft owned and operated by Pullmantur Air, to their fair value. | |||||||||||||||||||||||||||||||
-3 | Amounts for the third and fourth quarters of 2014 include an aggregate increase to operating income and net income of $16.3 million and $36.8 million, respectively, due to the change in our voyage proration methodology as of September 30, 2014. Amounts for the third quarter of 2014 also include a loss of $17.4 million due to the sale of Celebrity Century. | |||||||||||||||||||||||||||||||
-4 | Amounts for the fourth quarter of 2014 include a $33.5 million tax benefit related to the reversal of a deferred tax asset valuation allowance due to Spanish tax reform. See Note 12. Income Taxes for further information. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Revenues and Expenses | Revenues and Expenses | |
Deposits received on sales of passenger cruises are initially recorded as customer deposit liabilities on our balance sheet. Customer deposits are subsequently recognized as passenger ticket revenues, together with revenues from onboard and other goods and services and all associated cruise operating expenses of a voyage. | ||
Historically, we recognized revenues and cruise operating expenses for our shorter voyages (voyages of ten days or less) upon voyage completion while we recognized revenues and cruise operating expenses for voyages in excess of ten days on a pro-rata basis. We followed this completed voyage recognition approach on our shorter voyages because the difference between prorating revenue from such voyages and recognizing such revenue at the completion of the voyage was immaterial to our consolidated financial statements. As of September 30, 2014, we changed our methodology and recognized passenger ticket revenues, revenues from onboard and other goods and services and all associated cruise operating expenses for all of our uncompleted voyages on a pro-rata basis. We believe that recognizing revenues and cruise operating expenses on a pro-rata basis for all voyages is preferable as revenues and expenses are recorded in the period in which the revenue generating activities are performed. | ||
The effect of this change was an increase to Passenger ticket revenues and Onboard and other revenues, as well as an increase to our Cruise operating expenses. The change was not individually material to our revenues or any of our cruise operating expenses, and resulted in an aggregate increase to operating income and net income of $53.2 million, or $0.24 per diluted share, for the year ended December 31, 2014. In addition, the change has not been retrospectively applied to prior periods, as the impact of prorating all voyages was immaterial to the respective periods presented. | ||
Revenues and expenses include port costs that vary with guest head counts. The amounts of such port costs included in Passenger ticket revenues on a gross basis were $546.6 million, $494.2 million and $459.8 million for the years 2014, 2013 and 2012, respectively. | ||
Cash and Cash Equivalents | Cash and Cash Equivalents | |
Cash and cash equivalents include cash and marketable securities with original maturities of less than 90 days. | ||
Inventories | Inventories | |
Inventories consist of provisions, supplies and fuel carried at the lower of cost (weighted-average) or market. | ||
Property and Equipment | Property and Equipment | |
Property and equipment are stated at cost less accumulated depreciation and amortization. We capitalize interest as part of the cost of acquiring certain assets. Improvement costs that we believe add value to our ships are capitalized as additions to the ship and depreciated over the shorter of the improvements' estimated useful lives or that of the associated ship. The estimated cost and accumulated depreciation of replaced or refurbished ship components are written off and any resulting losses are recognized in Cruise operating expenses. Liquidated damages received from shipyards as a result of the late delivery of a new ship are recorded as reductions to the cost basis of the ship. | ||
Depreciation of property and equipment is computed using the straight-line method over the estimated useful life of the asset. The useful lives of our ships are generally 30 years, net of a 15% projected residual value. The 30-year useful life of our newly constructed ships and 15% associated residual value are both based on the weighted-average of all major components of a ship. Our useful life and residual value estimates take into consideration the impact of anticipated technological changes, long-term cruise and vacation market conditions and historical useful lives of similarly-built ships. In addition, we take into consideration our estimates of the weighted-average useful lives of the ships' major component systems, such as hull, superstructure, main electric, engines and cabins. Depreciation for assets under capital leases is computed using the shorter of the lease term or related asset life. | ||
Depreciation of property and equipment is computed utilizing the following useful lives: | ||
Years | ||
Ships | generally 30 | |
Ship improvements | 20-Mar | |
Buildings and improvements | Oct-40 | |
Computer hardware and software | 5-Mar | |
Transportation equipment and other | 30-Mar | |
Leasehold improvements | Shorter of remaining lease term or useful life 3-30 | |
Effective January 1, 2013, we revised the estimated useful lives of five ships from 30 years with a 15% associated residual value, to 35 years with a 10% associated residual value. The change in the estimated useful lives and associated residual value was accounted for prospectively as a change in accounting estimate. The 35-year useful life with a 10% associated residual value is based on revised estimates of the weighted-average useful life of all major ship components for these ships. The change in estimate is consistent with our recent investments in and future plans to continue to invest in the upgrade of these ships and the use of certain ship components longer than originally estimated. The change allows us to better match depreciation expense with the periods these assets are expected to be in use. For the full year 2013, this change increased operating income and net income by approximately $11.0 million and increased earnings per share by $0.05 per share on a basic and diluted basis. | ||
We review long-lived assets for impairment whenever events or changes in circumstances indicate, based on estimated undiscounted future cash flows, that the carrying amount of these assets may not be fully recoverable. For purposes of recognition and measurement of an impairment loss, long-lived assets are grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. The lowest level for which we maintain identifiable cash flows that are independent of the cash flows of other assets and liabilities is at the ship level for our ships and at the aggregated asset group level for our aircraft. If estimated future cash flows are less than the carrying value of an asset, an impairment charge is recognized to the extent its carrying value exceeds fair value. | ||
We use the deferral method to account for drydocking costs. Under the deferral method, drydocking costs incurred are deferred and charged to expense on a straight-line basis over the period to the next scheduled drydock, which we estimate to be a period of thirty to sixty months based on the vessel's age as required by Class. Deferred drydock costs consist of the costs to drydock the vessel and other costs incurred in connection with the drydock which are necessary to maintain the vessel's Class certification. Class certification is necessary in order for our cruise ships to be flagged in a specific country, obtain liability insurance and legally operate as passenger cruise ships. The activities associated with those drydocking costs cannot be performed while the vessel is in service and, as such, are done during a drydock as a planned major maintenance activity. The significant deferred drydock costs consist of hauling and wharfage services provided by the drydock facility, hull inspection and related activities (e.g., scraping, pressure cleaning, bottom painting), maintenance to steering propulsion, thruster equipment and ballast tanks, port services such as tugs, pilotage and line handling, and freight associated with these items. We perform a detailed analysis of the various activities performed for each drydock and only defer those costs that are directly related to planned major maintenance activities necessary to maintain Class. The costs deferred are not otherwise routinely periodically performed to maintain a vessel's designed and intended operating capability. Repairs and maintenance activities are charged to expense as incurred. | ||
Goodwill | Goodwill | |
Goodwill represents the excess of cost over the fair value of net tangible and identifiable intangible assets acquired. We review goodwill for impairment at the reporting unit level annually or, when events or circumstances dictate, more frequently. The impairment review for goodwill consists of a qualitative assessment of whether it is more-likely-than-not that a reporting unit's fair value is less than its carrying amount, and if necessary, a two-step goodwill impairment test. Factors to consider when performing the qualitative assessment include general economic conditions, limitations on accessing capital, changes in forecasted operating results, changes in fuel prices and fluctuations in foreign exchange rates. If the qualitative assessment demonstrates that it is more-likely-than-not that the estimated fair value of the reporting unit exceeds its carrying value, it is not necessary to perform the two-step goodwill impairment test. We may elect to bypass the qualitative assessment and proceed directly to step one, for any reporting unit, in any period. We can resume the qualitative assessment for any reporting unit in any subsequent period. When performing the two-step goodwill impairment test, the fair value of the reporting unit is determined and compared to the carrying value of the net assets allocated to the reporting unit. If the fair value of the reporting unit exceeds its carrying value, no further analysis or write-down of goodwill is required. If the fair value of the reporting unit is less than the carrying value of its net assets, the implied fair value of the reporting unit is allocated to all its underlying assets and liabilities, including both recognized and unrecognized tangible and intangible assets, based on their fair value. If necessary, goodwill is then written down to its implied fair value. | ||
Intangible Assets | Intangible Assets | |
In connection with our acquisitions, we have acquired certain intangible assets to which value has been assigned based on our estimates. Intangible assets that are deemed to have an indefinite life are not amortized, but are subject to an annual impairment test, or when events or circumstances dictate, more frequently. The indefinite-life intangible asset impairment test consists of a comparison of the fair value of the indefinite-life intangible asset with its carrying amount. If the carrying amount exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. If the fair value exceeds its carrying amount, the indefinite-life intangible asset is not considered impaired. | ||
Other intangible assets assigned finite useful lives are amortized on a straight-line basis over their estimated useful lives. | ||
Contingencies - Litigation | Contingencies —Litigation | |
On an ongoing basis, we assess the potential liabilities related to any lawsuits or claims brought against us. While it is typically very difficult to determine the timing and ultimate outcome of such actions, we use our best judgment to determine if it is probable that we will incur an expense related to the settlement or final adjudication of such matters and whether a reasonable estimation of such probable loss, if any, can be made. In assessing probable losses, we take into consideration estimates of the amount of insurance recoveries, if any, which are recorded as assets when recoverability is probable. We accrue a liability when we believe a loss is probable and the amount of loss can be reasonably estimated. Due to the inherent uncertainties related to the eventual outcome of litigation and potential insurance recoveries, it is possible that certain matters may be resolved for amounts materially different from any provisions or disclosures that we have previously made. | ||
Advertising Costs | Advertising Costs | |
Advertising costs are expensed as incurred except those costs which result in tangible assets, such as brochures, which are treated as prepaid expenses and charged to expense as consumed. Advertising costs consist of media advertising as well as brochure, production and direct mail costs. | ||
Media advertising was $205.2 million, $205.8 million and $200.9 million, and brochure, production and direct mail costs were $136.7 million, $137.1 million and $130.4 million for the years 2014, 2013 and 2012, respectively. | ||
Derivative Instruments | Derivative Instruments | |
We enter into various forward, swap and option contracts to manage our interest rate exposure and to limit our exposure to fluctuations in foreign currency exchange rates and fuel prices. These instruments are recorded on the balance sheet at their fair value and the vast majority are designated as hedges. We also have non-derivative financial instruments designated as hedges of our net investment in our foreign operations and investments. Although certain of our derivative financial instruments do not qualify or are not accounted for under hedge accounting, we do not hold or issue derivative financial instruments for trading or other speculative purposes. | ||
At inception of the hedge relationship, a derivative instrument that hedges the exposure to changes in the fair value of a firm commitment or a recognized asset or liability is designated as a fair value hedge. A derivative instrument that hedges a forecasted transaction or the variability of cash flows related to a recognized asset or liability is designated as a cash flow hedge. | ||
Changes in the fair value of derivatives that are designated as fair value hedges are offset against changes in the fair value of the underlying hedged assets, liabilities or firm commitments. Gains and losses on derivatives that are designated as cash flow hedges are recorded as a component of Accumulated other comprehensive (loss) income until the underlying hedged transactions are recognized in earnings. The foreign currency transaction gain or loss of our non-derivative financial instruments designated as hedges of our net investment in foreign operations and investments are recognized as a component of Accumulated other comprehensive (loss) income along with the associated foreign currency translation adjustment of the foreign operation. | ||
On an ongoing basis, we assess whether derivatives used in hedging transactions are "highly effective" in offsetting changes in the fair value or cash flow of hedged items. We use the long-haul method to assess hedge effectiveness using regression analysis for each hedge relationship under our interest rate, foreign currency and fuel hedging programs. We apply the same methodology on a consistent basis for assessing hedge effectiveness to all hedges within each hedging program (i.e., interest rate, foreign currency and fuel). We perform regression analyses over an observation period of up to three years, utilizing market data relevant to the hedge horizon of each hedge relationship. High effectiveness is achieved when a statistically valid relationship reflects a high degree of offset and correlation between the changes in the fair values of the derivative instrument and the hedged item. The determination of ineffectiveness is based on the amount of dollar offset between the change in fair value of the derivative instrument and the change in fair value of the hedged item at the end of the reporting period. If it is determined that a derivative is not highly effective as a hedge or hedge accounting is discontinued, any change in fair value of the derivative since the last date at which it was determined to be effective is recognized in earnings. In addition, the ineffective portion of our highly effective hedges is immediately recognized in earnings and reported in Other income (expense) in our consolidated statements of comprehensive income (loss). | ||
Cash flows from derivative instruments that are designated as fair value or cash flow hedges are classified in the same category as the cash flows from the underlying hedged items. In the event that hedge accounting is discontinued, cash flows subsequent to the date of discontinuance are classified within investing activities. Cash flows from derivative instruments not designated as hedging instruments are classified as investing activities. | ||
We consider the classification of the underlying hedged item’s cash flows in determining the classification for the designated derivative instrument’s cash flows. We classify derivative instrument cash flows from hedges of benchmark interest rate or hedges of fuel expense as operating activities due to the nature of the hedged item. Likewise, we classify derivative instrument cash flows from hedges of foreign currency risk on our newbuild ship payments as investing activities and derivative instrument cash flows from hedges of foreign currency risk on debt payments as financing activities. | ||
Foreign Currency Translations and Transactions | Foreign Currency Translations and Transactions | |
We translate assets and liabilities of our foreign subsidiaries whose functional currency is the local currency, at exchange rates in effect at the balance sheet date. We translate revenues and expenses at weighted-average exchange rates for the period. Equity is translated at historical rates and the resulting foreign currency translation adjustments are included as a component of Accumulated other comprehensive (loss) income, which is reflected as a separate component of Shareholders' equity. Exchange gains or losses arising from the remeasurement of monetary assets and liabilities denominated in a currency other than the functional currency of the entity involved are immediately included in our earnings, except for certain liabilities that have been designated to act as a hedge of a net investment in a foreign operation or investment. Exchange gains (losses) were $49.5 million, $13.4 million and $(11.8) million for the years 2014, 2013 and 2012, respectively, and were recorded within Other income (expense). The majority of our transactions are settled in United States dollars. Gains or losses resulting from transactions denominated in other currencies are recognized in income at each balance sheet date. | ||
Concentrations of Credit Risk | Concentrations of Credit Risk | |
We monitor our credit risk associated with financial and other institutions with which we conduct significant business and, to minimize these risks, we select counterparties with credit risks acceptable to us and we seek to limit our exposure to an individual counterparty. Credit risk, including but not limited to counterparty nonperformance under derivative instruments, our credit facilities and new ship progress payment guarantees, is not considered significant, as we primarily conduct business with large, well-established financial institutions, insurance companies and export credit agencies many of which we have long-term relationships with and which have credit risks acceptable to us or where the credit risk is spread out among a large number of counterparties. As of December 31, 2014, we did not have any counterparty credit risk exposure under our derivative instruments. As of December 31, 2013, we had counterparty credit risk exposure under our derivative instruments of approximately $92.5 million, which was limited to the cost of replacing the contracts in the event of non-performance by the counterparties to the contracts, all of which are currently our lending banks. We do not anticipate nonperformance by any of our significant counterparties. In addition, we have established guidelines we follow regarding credit ratings and instrument maturities to maintain safety and liquidity. We do not normally require collateral or other security to support credit relationships; however, in certain circumstances this option is available to us. | ||
Earnings Per Share | Earnings Per Share | |
Basic earnings per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during each period. Diluted earnings per share incorporates the incremental shares issuable upon the assumed exercise of stock options and conversion of potentially dilutive securities. | ||
Stock-Based Employee Compensation | Stock-Based Employee Compensation | |
We measure and recognize compensation expense at the estimated fair value of employee stock awards. Compensation expense for awards and the related tax effects are recognized as they vest. We use the estimated amount of expected forfeitures to calculate compensation costs for all outstanding awards. | ||
Segment Reporting | Segment Reporting | |
We operate five wholly-owned cruise brands, Royal Caribbean International, Celebrity Cruises, Azamara Club Cruises, Pullmantur and CDF Croisières de France. In addition, we have a 50% investment in a joint venture with TUI AG which operates the brand TUI Cruises. We believe our global brands possess the versatility to enter multiple cruise market segments within the cruise vacation industry. Although each of our brands has its own marketing style as well as ships and crews of various sizes, the nature of the products sold and services delivered by our brands share a common base (i.e., the sale and provision of cruise vacations). Our brands also have similar itineraries as well as similar cost and revenue components. In addition, our brands source passengers from similar markets around the world and operate in similar economic environments with a significant degree of commercial overlap. As a result, our brands (including TUI Cruises) have been aggregated as a single reportable segment based on the similarity of their economic characteristics, types of consumers, regulatory environment, maintenance requirements, supporting systems and processes as well as products and services provided. Our Chairman and Chief Executive Officer has been identified as the chief operating decision-maker and all significant operating decisions including the allocation of resources are based upon the analyses of the Company as one segment. | ||
Recent Accounting Pronouncements | Recent Accounting Pronouncements | |
In January 2014, amended guidance was issued regarding the accounting for service concession arrangements. The new guidance defines a service concession as an arrangement between a public-sector entity grantor and an operating entity under which the operating entity operates and maintains the grantor’s infrastructure for a specified period of time and in return receives payments from the grantor and or third-party user for use of the infrastructure. The guidance prohibits the operating entity from accounting for a service concession arrangement as a lease and from recording the infrastructure used in the arrangement within property, plant and equipment. This guidance must be applied using a modified retrospective approach and will be effective for our interim and annual reporting periods beginning after December 15, 2014. Early adoption is permitted. The adoption of this newly issued guidance is not expected to have a material impact to our consolidated financial statements. | ||
In April 2014, amended guidance was issued changing the requirements for reporting discontinued operations and enhancing the disclosures in this area. The new guidance requires a disposal of a component of an entity or a group of components of an entity to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity's operations and financial results. The guidance will be effective prospectively for our interim and annual reporting periods beginning after December 15, 2014. The guidance will impact the reporting and disclosures of future disposals, if any. | ||
In May 2014, amended guidance was issued to clarify the principles used to recognize revenue for all entities. The guidance is based on the principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard also requires more detailed disclosures and provides additional guidance for transactions that were not comprehensively addressed in the prior accounting guidance. This guidance must be applied using one of two retrospective application methods and will be effective for our interim and annual reporting periods beginning after December 15, 2016. Early adoption is not permitted. We are currently evaluating the impact of the adoption of this newly issued guidance to our consolidated financial statements. | ||
In August 2014, guidance was issued requiring management to evaluate, at each annual and interim reporting period, whether there are conditions or events that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date the financial statements are issued and provide related disclosures. This guidance will be effective for our annual reporting period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early adoption is permitted. The adoption of this newly issued guidance is not expected to have an impact to our consolidated financial statements. | ||
In January 2015, amended guidance was issued changing the requirements for reporting extraordinary and unusual items in the income statement. The update eliminates the concept of extraordinary items. The presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained and will be expanded to include items that are both unusual in nature and infrequently occurring. A reporting entity may apply the amendments prospectively or retrospectively to all periods presented in the financial statements. The guidance will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The adoption of this newly issued guidance is not expected to have an impact to our consolidated financial statements. | ||
In February 2015, amended guidance was issued affecting current consolidation guidance. The guidance changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. This guidance must be applied using one of two retrospective application methods and will be effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in any interim period. We are currently evaluating the impact, if any, of the adoption of this newly issued guidance to our consolidated financial statements. | ||
Basis for Preparation of Consolidated Financial Statements | Basis for Preparation of Consolidated Financial Statements | |
The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Estimates are required for the preparation of financial statements in accordance with these principles. Actual results could differ from these estimates. See Note 2. Summary of Significant Accounting Policies for a discussion of our significant accounting policies. | ||
Reclassifications | Reclassifications | |
As of December 31, 2013, $24.3 million has been reclassified in the consolidated balance sheet from Accrued expenses and other liabilities to Derivative financial instruments within Total current liabilities in order to conform to the current year presentation. | ||
Consolidation | All significant intercompany accounts and transactions are eliminated in consolidation. We consolidate entities over which we have control, usually evidenced by a direct ownership interest of greater than 50%, and variable interest entities where we are determined to be the primary beneficiary. See Note 6. Other Assets for further information regarding our variable interest entities. For affiliates we do not control but over which we have significant influence on financial and operating policies, usually evidenced by a direct ownership interest from 20% to 50%, the investment is accounted for using the equity method. We consolidate the operating results of Pullmantur and CDF Croisières de France on a two-month lag to allow for more timely preparation of our consolidated financial statements. On March 31, 2014, Pullmantur sold the majority of its interest in its non-core businesses. These non-core businesses included Pullmantur’s land-based tour operations, travel agency and 49% interest in its air business. See Note 16. Restructuring Charges and Related Impairment Charges for further discussion on the Pullmantur sales transaction. No material events or transactions affecting Pullmantur or CDF Croisières de France have occurred during the two-month lag period of November and December 2014 that would require disclosure or adjustment to our consolidated financial statements as of December 31, 2014. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Accounting Policies [Abstract] | ||||||
Useful Lives of Property and Equipment Used in Computation of Depreciation | Depreciation of property and equipment is computed utilizing the following useful lives: | |||||
Years | ||||||
Ships | generally 30 | |||||
Ship improvements | 20-Mar | |||||
Buildings and improvements | Oct-40 | |||||
Computer hardware and software | 5-Mar | |||||
Transportation equipment and other | 30-Mar | |||||
Leasehold improvements | Shorter of remaining lease term or useful life 3-30 | |||||
Passenger Ticket Revenues Attributed to Geographic Areas Based on Where Reservation Originates | Information by geographic area is shown in the table below. Passenger ticket revenues are attributed to geographic areas based on where the reservation originates. | |||||
2014 | 2013 | 2012 | ||||
Passenger ticket revenues: | ||||||
United States | 53% | 52% | 51% | |||
All other countries | 47% | 48% | 49% | |||
Goodwill_Tables
Goodwill (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Goodwill [Abstract] | ||||||||||||
Carrying Amount of Goodwill | The carrying amount of goodwill attributable to our Royal Caribbean International and Pullmantur reporting units was as follows (in thousands): | |||||||||||
Royal | Pullmantur | Total | ||||||||||
Caribbean | ||||||||||||
International | ||||||||||||
Balance at December 31, 2012 | $ | 287,436 | $ | 145,539 | $ | 432,975 | ||||||
Foreign currency translation adjustment | (312 | ) | 6,568 | 6,256 | ||||||||
Balance at December 31, 2013 | $ | 287,124 | $ | 152,107 | $ | 439,231 | ||||||
Foreign currency translation adjustment | (166 | ) | (18,523 | ) | (18,689 | ) | ||||||
Balance at December 31, 2014 | $ | 286,958 | $ | 133,584 | $ | 420,542 | ||||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||||||||
Intangible assets | Intangible assets are reported in Other assets in our consolidated balance sheets and consist of the following (in thousands): | |||||||
2014 | 2013 | |||||||
Indefinite-life intangible asset—Pullmantur trademarks and trade names | $ | 214,112 | $ | 204,866 | ||||
Foreign currency translation adjustment | (26,074 | ) | 9,246 | |||||
Total | $ | 188,038 | $ | 214,112 | ||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property and equipment | Property and equipment consists of the following (in thousands): | |||||||
2014 | 2013 | |||||||
Ships | $ | 21,620,336 | $ | 20,858,553 | ||||
Ship improvements | 1,904,524 | 1,683,644 | ||||||
Ships under construction | 561,779 | 563,676 | ||||||
Land, buildings and improvements, including leasehold improvements and port facilities | 349,339 | 394,120 | ||||||
Computer hardware and software, transportation equipment and other | 889,579 | 771,304 | ||||||
Total property and equipment | 25,325,557 | 24,271,297 | ||||||
Less—accumulated depreciation and amortization | (7,089,989 | ) | (6,753,545 | ) | ||||
$ | 18,235,568 | $ | 17,517,752 | |||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Long Term Debt | Long-term debt consists of the following (in thousands): | |||||||
2014 | 2013 | |||||||
$1.1 billion unsecured revolving credit facility, LIBOR plus 1.75%, currently 1.92% and a facility fee of 0.37%, due 2016 | $ | 713,000 | $ | 435,000 | ||||
$1.2 billion unsecured revolving credit facility, LIBOR plus 1.75%, currently 1.91% and a facility fee of 0.37%, due 2018 | 778,000 | 295,000 | ||||||
Unsecured senior notes and senior debentures, 5.25% to 11.88%, due 2015, 2016, 2018, 2022 and 2027 | 1,721,190 | 1,703,040 | ||||||
€745 million unsecured senior notes, 5.63%, due 2014 | — | 1,028,126 | ||||||
$589 million unsecured term loan, 4.47%, due through 2014 | — | 42,071 | ||||||
$530 million unsecured term loan, LIBOR plus 0.51%, currently 0.83%, due through 2015 | 37,857 | 113,571 | ||||||
$519 million unsecured term loan, LIBOR plus 0.45%, currently 0.77%, due through 2020 | 259,573 | 302,835 | ||||||
$420 million unsecured term loan, 5.41%, due through 2021 | 241,827 | 274,974 | ||||||
$420 million unsecured term loan, LIBOR plus 1.85%, currently 2.17%, due through 2021 | 245,000 | 280,000 | ||||||
€159.4 million unsecured term loan, EURIBOR plus 1.58%, currently 1.77%, due through 2021 | 112,540 | 146,452 | ||||||
$524.5 million unsecured term loan, LIBOR plus 0.50%, currently 0.83%, due through 2021 | 305,958 | 349,667 | ||||||
$566.1 million unsecured term loan, LIBOR plus 0.37%, currently 0.69%, due through 2022 | 353,793 | 400,966 | ||||||
$1.1 billion unsecured term loan, LIBOR plus 1.85%, currently 2.17%, due through 2022 | 614,203 | 690,978 | ||||||
$632.0 million unsecured term loan, LIBOR plus 0.40%, currently 0.73%, due through 2023 | 473,969 | 526,632 | ||||||
$673.5 million unsecured term loan, LIBOR plus 0.40%, currently 0.73%, due through 2024 | 561,228 | 617,351 | ||||||
$65.0 million unsecured term loan, LIBOR plus 2.12%, currently 2.29%, due through 2019 | 51,100 | — | ||||||
$1.0 million unsecured term loan, 3.00%, due through 2015 | 750 | — | ||||||
$380.0 million unsecured term loan, LIBOR plus 2.12%, currently 2.29%, due through 2018 | 380,000 | — | ||||||
$791.1 million unsecured term loan, LIBOR plus 1.30%, currently 1.62%, due through 2026 | 791,108 | — | ||||||
$290.0 million unsecured term loan, LIBOR plus 2.5%, currently 2.67%, due 2016 | 290,000 | 290,000 | ||||||
€365 million unsecured term loan, EURIBOR plus 2.30%, currently 2.32%, due 2017 | 441,687 | 502,934 | ||||||
$7.3 million unsecured term loan, LIBOR plus 2.5%, currently 2.82%, due through 2023 | 4,915 | 5,391 | ||||||
$30.3 million unsecured term loan, LIBOR plus 3.75%, currently 3.99%, due through 2021 | 13,603 | 15,073 | ||||||
Capital lease obligations | 52,647 | 54,743 | ||||||
8,443,948 | 8,074,804 | |||||||
Less—current portion | (799,630 | ) | (1,563,378 | ) | ||||
Long-term portion | $ | 7,644,318 | $ | 6,511,426 | ||||
Schedule of Annual Maturities on Long-Term Debt Including Capital Leases | Following is a schedule of annual maturities on long-term debt including capital leases as of December 31, 2014 for each of the next five years (in thousands): | |||||||
Year | ||||||||
2015 | $ | 799,630 | ||||||
2016 | 1,856,302 | |||||||
2017 | 920,687 | |||||||
2018 | 1,785,083 | |||||||
2019 | 529,197 | |||||||
Thereafter | 2,553,049 | |||||||
$ | 8,443,948 | |||||||
StockBased_Employee_Compensati1
Stock-Based Employee Compensation (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||
Total Compensation Expense Recognized for Employee Stock-based Compensation | Total compensation expense recognized for employee stock-based compensation for the years ended December 31, 2014, 2013 and 2012 was as follows: | |||||||||||||
Employee Stock-Based Compensation | ||||||||||||||
Classification of expense | 2014 | 2013 | 2012 | |||||||||||
(In thousands) | ||||||||||||||
Marketing, selling and administrative expenses | $ | 26,116 | $ | 21,178 | $ | 24,153 | ||||||||
Total compensation expense | $ | 26,116 | $ | 21,178 | $ | 24,153 | ||||||||
Assumptions Used in Black-Scholes Option-pricing Model | The assumptions used in the Black-Scholes option-pricing model are as follows: | |||||||||||||
2012 | ||||||||||||||
Dividend yield | 1.50% | |||||||||||||
Expected stock price volatility | 46.00% | |||||||||||||
Risk-free interest rate | 1.10% | |||||||||||||
Expected option life | 6 years | |||||||||||||
Summary Stock Option Activity | Stock option activity and information about stock options outstanding are summarized in the following table: | |||||||||||||
Stock Option Activity | Number of | Weighted- | Weighted- | Aggregate | ||||||||||
Options | Average | Average | Intrinsic | |||||||||||
Exercise | Remaining | Value(1) | ||||||||||||
Price | Contractual | |||||||||||||
Term | ||||||||||||||
(years) | (in thousands) | |||||||||||||
Outstanding at January 1, 2014 | 2,694,872 | $ | 36.3 | 3.83 | $ | 30,080 | ||||||||
Granted | — | $ | — | — | — | |||||||||
Exercised | (1,941,365 | ) | $ | 36.22 | — | — | ||||||||
Canceled | (47,456 | ) | $ | 43.02 | — | — | ||||||||
Outstanding at December 31, 2014 | 706,051 | $ | 36.03 | 3.64 | $ | 33,182 | ||||||||
Vested and expected to vest at December 31, 2014 | 704,796 | $ | 36.02 | 3.63 | $ | 33,130 | ||||||||
Options Exercisable at December 31, 2014 | 622,168 | $ | 34.85 | 3.31 | $ | 29,970 | ||||||||
___________________________________ | ||||||||||||||
-1 | The intrinsic value represents the amount by which the fair value of stock exceeds the option exercise price as of December 31, 2014 | |||||||||||||
Summary of Restricted Stock Activity | Restricted stock activity is summarized in the following table: | |||||||||||||
Restricted Stock Activity | Number of | Weighted- | ||||||||||||
Awards | Average | |||||||||||||
Grant Date | ||||||||||||||
Fair Value | ||||||||||||||
Non-vested share units at January 1, 2014 | 989,005 | $ | 9.26 | |||||||||||
Granted | 472,150 | $ | 54.6 | |||||||||||
Vested | (405,001 | ) | $ | 51.24 | ||||||||||
Canceled | (74,601 | ) | $ | 55.3 | ||||||||||
Non-vested share units expected to vest as of December 31, 2014 | 981,553 | $ | 10.25 | |||||||||||
Summary of Performance share activity | Performance stock activity is summarized in the following table: | |||||||||||||
Performance Stock Activity | Number of | Weighted- | ||||||||||||
Awards | Average | |||||||||||||
Grant Date | ||||||||||||||
Fair Value | ||||||||||||||
Non-vested share units at January 1, 2014 | 459,929 | $ | 32.36 | |||||||||||
Granted | 233,831 | $ | 56.72 | |||||||||||
Vested | (7,301 | ) | $ | 53.81 | ||||||||||
Canceled | (27,573 | ) | $ | 54.11 | ||||||||||
Non-vested share units expected to vest as of December 31, 2014 | 658,886 | $ | 39.86 | |||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Reconciliation Between Basic and Diluted Earnings Per Share | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Net income for basic and diluted earnings per share | $ | 764,146 | $ | 473,692 | $ | 18,287 | ||||||
Weighted-average common shares outstanding | 221,658 | 219,638 | 217,930 | |||||||||
Dilutive effect of stock options, performance share awards and restricted stock awards | 1,386 | 1,303 | 1,527 | |||||||||
Diluted weighted-average shares outstanding | 223,044 | 220,941 | 219,457 | |||||||||
Basic earnings per share: | ||||||||||||
Net income | $ | 3.45 | $ | 2.16 | $ | 0.08 | ||||||
Diluted earnings per share: | ||||||||||||
Net income | $ | 3.43 | $ | 2.14 | $ | 0.08 | ||||||
Changes_in_Accumulated_Other_C1
Changes in Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents the changes in accumulated other comprehensive income (loss) by component for the years ended December 31, 2014 and 2013 (in thousands): | |||||||||||||||
Changes related to cash flow derivative hedges | Changes in defined | Foreign currency translation adjustments | Accumulated other comprehensive (loss) income | |||||||||||||
benefit plans | ||||||||||||||||
Accumulated comprehensive loss at January 1, 2013 | $ | (84,505 | ) | $ | (34,823 | ) | $ | (15,188 | ) | $ | (134,516 | ) | ||||
Other comprehensive income before reclassifications | 197,428 | 8,240 | 1,529 | 207,197 | ||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (69,599 | ) | 2,589 | — | (67,010 | ) | ||||||||||
Net current-period other comprehensive income | 127,829 | 10,829 | 1,529 | 140,187 | ||||||||||||
Accumulated comprehensive income (loss) at January 1, 2014 | 43,324 | (23,994 | ) | (13,659 | ) | 5,671 | ||||||||||
Other comprehensive loss before reclassifications | (903,830 | ) | (8,937 | ) | (28,099 | ) | (940,866 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 34,480 | 1,724 | 1,997 | 38,201 | ||||||||||||
Net current-period other comprehensive loss | (869,350 | ) | (7,213 | ) | (26,102 | ) | (902,665 | ) | ||||||||
Accumulated comprehensive loss at December 31, 2014 | $ | (826,026 | ) | $ | (31,207 | ) | $ | (39,761 | ) | $ | (896,994 | ) | ||||
Reclassification out of Accumulated Other Comprehensive Income | The following table presents reclassifications out of accumulated other comprehensive (loss) income for the years ended December 31, 2014 and 2013 (in thousands): | |||||||||||||||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive (Loss) Income into Income | ||||||||||||||||
Details about Accumulated Other Comprehensive Income (Loss) Components | Year Ended December 31, 2014 | Year Ended December 31, 2013 | Affected Line Item in Statements of Comprehensive Income (Loss) | |||||||||||||
Gain (loss) on cash flow derivative hedges: | ||||||||||||||||
Cross currency swaps | $ | (261 | ) | $ | (3,531 | ) | Interest expense, net of interest capitalized | |||||||||
Foreign currency forward contracts | (1,887 | ) | (1,797 | ) | Depreciation and amortization expenses | |||||||||||
Foreign currency forward contracts | (4,291 | ) | 27,423 | Other (expense) income | ||||||||||||
Foreign currency forward contracts | (57 | ) | (440 | ) | Interest expense, net of interest capitalized | |||||||||||
Fuel swaps | (27,984 | ) | 47,944 | Fuel | ||||||||||||
(34,480 | ) | 69,599 | ||||||||||||||
Amortization of defined benefit plans: | ||||||||||||||||
Actuarial loss | (888 | ) | (1,753 | ) | Payroll and related | |||||||||||
Prior service costs | (836 | ) | (836 | ) | Payroll and related | |||||||||||
(1,724 | ) | (2,589 | ) | |||||||||||||
Release of foreign cumulative translation due to sale of Pullmantur's non-core businesses: | ||||||||||||||||
Foreign cumulative translation | (1,997 | ) | — | Other operating | ||||||||||||
Total reclassifications for the period | $ | (38,201 | ) | $ | 67,010 | |||||||||||
Fair_Value_Measurements_and_De1
Fair Value Measurements and Derivative Instruments (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||
Estimated Fair Value of Financial Instruments that are not Measured at Fair Value on Recurring Basis | The estimated fair value of our financial instruments that are not measured at fair value, categorized based upon the fair value hierarchy, are as follows (in thousands): | |||||||||||||||||||||||||||||||||||||||
Fair Value Measurements at December 31, 2014 Using | Fair Value Measurements at December 31, 2013 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) | ||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents(4) | $ | 189,241 | $ | 189,241 | $ | 189,241 | $ | — | $ | — | $ | 204,687 | $ | 204,687 | $ | 204,687 | $ | — | $ | — | ||||||||||||||||||||
Total Assets | $ | 189,241 | $ | 189,241 | $ | 189,241 | $ | — | $ | — | $ | 204,687 | $ | 204,687 | $ | 204,687 | $ | — | $ | — | ||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||||||
Long-term debt (including current portion of long-term debt)(5) | $ | 8,391,301 | $ | 8,761,414 | $ | 1,859,361 | $ | 6,902,053 | $ | — | $ | 8,020,061 | $ | 8,431,220 | $ | 2,888,255 | $ | 5,542,965 | $ | — | ||||||||||||||||||||
Total Liabilities | $ | 8,391,301 | $ | 8,761,414 | $ | 1,859,361 | $ | 6,902,053 | $ | — | $ | 8,020,061 | $ | 8,431,220 | $ | 2,888,255 | $ | 5,542,965 | $ | — | ||||||||||||||||||||
___________________________________ | ||||||||||||||||||||||||||||||||||||||||
-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 within Level 1 that are observable for the liability, either directly or indirectly. For unsecured revolving credit facilities and unsecured term loans, fair value is determined utilizing the income valuation approach. This valuation model takes into account the contract terms of our debt such as the debt maturity and the interest rate on the debt. The valuation model also takes into account the creditworthiness of the Company. | |||||||||||||||||||||||||||||||||||||||
-3 | Inputs that are unobservable. The Company did not use any Level 3 inputs as of December 31, 2014 and December 31, 2013. | |||||||||||||||||||||||||||||||||||||||
-4 | Consists of cash and marketable securities with original maturities of less than 90 days. | |||||||||||||||||||||||||||||||||||||||
-5 | Consists of unsecured revolving credit facilities, senior notes, senior debentures and term loans. Does not include our capital lease obligations. | |||||||||||||||||||||||||||||||||||||||
Company's Financial Instruments Recorded at Fair Value on Recurring Basis | The following table presents information about the Company's financial instruments recorded at fair value on a recurring basis (in thousands): | |||||||||||||||||||||||||||||||||||||||
Fair Value Measurements at December 31, 2014 Using | Fair Value Measurements at December 31, 2013 Using | |||||||||||||||||||||||||||||||||||||||
Description | Total Fair Value | Level 1(1) | Level 2(2) | Level 3(3) | Total Fair Value | Level 1(1) | Level 2(2) | Level 3(3) | ||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||||||
Derivative financial instruments(4) | $ | 63,981 | $ | — | $ | 63,981 | $ | — | $ | 188,576 | $ | — | $ | 188,576 | $ | — | ||||||||||||||||||||||||
Investments(5) | $ | 5,531 | 5,531 | — | — | $ | 6,044 | 6,044 | — | — | ||||||||||||||||||||||||||||||
Total Assets | $ | 69,512 | $ | 5,531 | $ | 63,981 | $ | — | $ | 194,620 | $ | 6,044 | $ | 188,576 | $ | — | ||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||||||
Derivative financial instruments(6) | $ | 767,635 | $ | — | $ | 767,635 | $ | — | $ | 100,260 | $ | — | $ | 100,260 | $ | — | ||||||||||||||||||||||||
Total Liabilities | $ | 767,635 | $ | — | $ | 767,635 | $ | — | $ | 100,260 | $ | — | $ | 100,260 | $ | — | ||||||||||||||||||||||||
___________________________________ | ||||||||||||||||||||||||||||||||||||||||
-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 within Level 1 that are observable for the asset or liability, either directly or indirectly. For foreign currency forward contracts, interest rate swaps, cross currency swaps and fuel swaps, fair value is derived using valuation models that utilize the income valuation approach. These valuation models take into account the contract terms, such as maturity as well as other inputs, such as foreign exchange rates and curves, fuel types, fuel curves and interest rate yield curves. Fair value for foreign currency collar options is determined by using standard option pricing models with inputs based on the options' contract terms, such as exercise price and maturity, and readily available public market data, such as foreign exchange curves, foreign exchange volatility levels and discount rates. All derivative instrument fair values take into account the creditworthiness of the counterparty and the Company. | |||||||||||||||||||||||||||||||||||||||
-3 | Inputs that are unobservable. The Company did not use any Level 3 inputs as of December 31, 2014 and December 31, 2013. | |||||||||||||||||||||||||||||||||||||||
-4 | Consists of foreign currency forward contracts, foreign currency collar options, interest rate swaps and fuel swaps. Please refer to the "Fair Value of Derivative Instruments" table for breakdown by instrument type. | |||||||||||||||||||||||||||||||||||||||
-5 | Consists of exchange-traded equity securities and mutual funds. | |||||||||||||||||||||||||||||||||||||||
-6 | Consists of interest rate swaps, fuel swaps, foreign currency forward contracts and foreign currency collar options. Please refer to the "Fair Value of Derivative Instruments" table for breakdown by instrument type. | |||||||||||||||||||||||||||||||||||||||
Schedule of the Company's goodwill, indefinite-life intangible assets and long-lived assets for Pullmantur reporting unit recorded at fair value on a nonrecurring basis | The following table presents information about the Company's long-lived assets for our Pullmantur reporting unit and assets held for sale recorded at fair value on a nonrecurring basis (in thousands): | |||||||||||||||||||||||||||||||||||||||
Fair Value Measurements at December 31, 2013 Using | ||||||||||||||||||||||||||||||||||||||||
Description | Total Carrying Amount | Total Fair Value | Level 3 | Total Impairment | ||||||||||||||||||||||||||||||||||||
Long-lived assets — Pullmantur aircraft(1) | $ | 49,507 | $ | 49,507 | $ | 49,507 | $ | 13,529 | ||||||||||||||||||||||||||||||||
Assets held for sale(2) | $ | — | $ | — | $ | — | $ | 19,985 | ||||||||||||||||||||||||||||||||
___________________________________ | ||||||||||||||||||||||||||||||||||||||||
-1 | For 2013, we estimated the fair value of our long-lived assets using an undiscounted cash flow model. A significant assumption in performing the undiscounted cash flow test was the number of years during which we expect to use these aircraft. Additionally, as of December 31, 2013, the expected operating use of the aircraft modified the expected cash flows. | |||||||||||||||||||||||||||||||||||||||
-2 | For 2013, we estimated the fair value of assets held for sale related to the sale of Pullmantur's non-core businesses. This resulted in an impairment of $20.0 million mostly consisting of $18.2 million for property and equipment. See Note 16. Restructuring and Related Impairment Charges for further discussion. | |||||||||||||||||||||||||||||||||||||||
Fuel Swap Agreements | As of December 31, 2014 and 2013, we had the following outstanding fuel swap agreements: | |||||||||||||||||||||||||||||||||||||||
Fuel Swap Agreements | ||||||||||||||||||||||||||||||||||||||||
As of December 31, 2014 | As of December 31, 2013 | |||||||||||||||||||||||||||||||||||||||
(metric tons) | ||||||||||||||||||||||||||||||||||||||||
2014 | — | 762,000 | ||||||||||||||||||||||||||||||||||||||
2015 | 806,000 | 665,000 | ||||||||||||||||||||||||||||||||||||||
2016 | 802,000 | 372,000 | ||||||||||||||||||||||||||||||||||||||
2017 | 525,000 | 74,000 | ||||||||||||||||||||||||||||||||||||||
2018 | 226,000 | — | ||||||||||||||||||||||||||||||||||||||
Fuel Swap Agreements | ||||||||||||||||||||||||||||||||||||||||
As of December 31, 2014 | As of December 31, 2013 | |||||||||||||||||||||||||||||||||||||||
(% hedged) | ||||||||||||||||||||||||||||||||||||||||
Projected fuel purchases for year: | ||||||||||||||||||||||||||||||||||||||||
2014 | — | 57 | % | |||||||||||||||||||||||||||||||||||||
2015 | 58 | % | 45 | % | ||||||||||||||||||||||||||||||||||||
2016 | 55 | % | 25 | % | ||||||||||||||||||||||||||||||||||||
2017 | 35 | % | 5 | % | ||||||||||||||||||||||||||||||||||||
2018 | 15 | % | — | % | ||||||||||||||||||||||||||||||||||||
Fair Value And Line item Caption of Derivative Instruments | The fair value and line item caption of derivative instruments recorded within our consolidated balance sheets were as follows: | |||||||||||||||||||||||||||||||||||||||
Fair Value of Derivative Instruments | ||||||||||||||||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||||||||||||||||||
Balance Sheet | As of December 31, 2014 | As of December 31, 2013 | Balance Sheet | As of December 31, 2014 | As of December 31, 2013 | |||||||||||||||||||||||||||||||||||
Location | Fair Value | Fair Value | Location | Fair Value | Fair Value | |||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments under ASC 815-20(1) | ||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | Other assets | $ | — | $ | 56,571 | Other long-term liabilities | $ | 65,768 | $ | 66,920 | ||||||||||||||||||||||||||||||
Foreign currency forward contracts | Derivative financial instruments | — | 61,596 | Derivative financial instruments | 17,619 | — | ||||||||||||||||||||||||||||||||||
Foreign currency forward contracts | Other assets | 63,981 | 13,783 | Other long-term liabilities | 164,627 | — | ||||||||||||||||||||||||||||||||||
Foreign currency collar options | Other assets | — | 22,172 | Other long-term liabilities | — | — | ||||||||||||||||||||||||||||||||||
Foreign currency collar options | Derivative financial instruments | — | — | Derivative financial instruments | 21,855 | — | ||||||||||||||||||||||||||||||||||
Fuel swaps | Derivative financial instruments | — | 10,902 | Derivative financial instruments | 227,512 | 1,657 | ||||||||||||||||||||||||||||||||||
Fuel swaps | Other assets | — | 8,205 | Other long-term liabilities | 270,254 | 9,052 | ||||||||||||||||||||||||||||||||||
Total derivatives designated as hedging instruments under ASC 815-20 | 63,981 | 173,229 | 767,635 | 77,629 | ||||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments under ASC 815-20 | ||||||||||||||||||||||||||||||||||||||||
Foreign currency forward contracts | Derivative Financial Instruments | — | 15,347 | Derivative financial instruments | — | 22,631 | ||||||||||||||||||||||||||||||||||
Total derivatives not designated as hedging instruments under ASC 815-20 | — | 15,347 | — | 22,631 | ||||||||||||||||||||||||||||||||||||
Total derivatives | $ | 63,981 | $ | 188,576 | $ | 767,635 | $ | 100,260 | ||||||||||||||||||||||||||||||||
___________________________________ | ||||||||||||||||||||||||||||||||||||||||
-1 | Accounting Standard Codification 815-20 "Derivatives and Hedging." | |||||||||||||||||||||||||||||||||||||||
Fair Value and Line Item Caption of Non-derivative Instruments | The carrying value and line item caption of non-derivative instruments designated as hedging instruments recorded within our consolidated balance sheets were as follows: | |||||||||||||||||||||||||||||||||||||||
Carrying Value | ||||||||||||||||||||||||||||||||||||||||
Non-derivative instrument designated as | Balance Sheet Location | As of December 31, 2014 | As of December 31, 2013 | |||||||||||||||||||||||||||||||||||||
hedging instrument under ASC 815-20 | ||||||||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||||
Foreign currency debt | Current portion of long-term debt | $ | — | $ | 477,442 | |||||||||||||||||||||||||||||||||||
Foreign currency debt | Long-term debt | 168,718 | 273,354 | |||||||||||||||||||||||||||||||||||||
$ | 168,718 | $ | 750,796 | |||||||||||||||||||||||||||||||||||||
Effect of Non-derivative Instruments Qualifying and Designated as Hedging Instruments in Net Investment Hedges on Consolidated Financial Statements | The effect of non-derivative instruments qualifying and designated as net investment hedging instruments on the consolidated financial statements was as follows: | |||||||||||||||||||||||||||||||||||||||
Amount of Gain (Loss) | Location of Gain | Amount of Gain (Loss) Recognized in Income | ||||||||||||||||||||||||||||||||||||||
Recognized in OCI | (Loss) in Income | (Ineffective Portion and | ||||||||||||||||||||||||||||||||||||||
(Effective Portion) | (Ineffective Portion | Amount Excluded from | ||||||||||||||||||||||||||||||||||||||
and Amount | Effectiveness Testing) | |||||||||||||||||||||||||||||||||||||||
Excluded from | ||||||||||||||||||||||||||||||||||||||||
Non-derivative instruments under ASC 815-20 | Year Ended December 31, 2014 | Year Ended December 31, 2013 | Effectiveness Testing) | Year Ended December 31, 2014 | Year Ended December 31, 2013 | |||||||||||||||||||||||||||||||||||
Net Investment Hedging Relationships | ||||||||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||||
Foreign Currency Debt | $ | 25,382 | $ | (34,295 | ) | Other income (expense) | $ | — | $ | — | ||||||||||||||||||||||||||||||
$ | 25,382 | $ | (34,295 | ) | $ | — | $ | — | ||||||||||||||||||||||||||||||||
Derivative instruments disclosure | ||||||||||||||||||||||||||||||||||||||||
Offsetting Assets | ||||||||||||||||||||||||||||||||||||||||
Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements | ||||||||||||||||||||||||||||||||||||||||
As of December 31, 2014 | As of December 31, 2013 | |||||||||||||||||||||||||||||||||||||||
Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheet | Gross Amount of Eligible Offsetting | Cash Collateral | Net Amount of | Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheet | Gross Amount of Eligible Offsetting | Cash Collateral | Net Amount of | |||||||||||||||||||||||||||||||||
Recognized | Received | Derivative Assets | Recognized | Received | Derivative Assets | |||||||||||||||||||||||||||||||||||
Derivative Liabilities | Derivative Assets | |||||||||||||||||||||||||||||||||||||||
(In thousands of dollars) | ||||||||||||||||||||||||||||||||||||||||
Derivatives subject to master netting agreements | $ | 63,981 | $ | (63,981 | ) | $ | — | $ | — | $ | 188,576 | $ | (91,627 | ) | $ | — | $ | 96,949 | ||||||||||||||||||||||
Total | $ | 63,981 | $ | (63,981 | ) | $ | — | $ | — | $ | 188,576 | $ | (91,627 | ) | $ | — | $ | 96,949 | ||||||||||||||||||||||
Offsetting Liabilities | The following table presents information about the Company’s offsetting of financial liabilities under master netting agreements with derivative counterparties: | |||||||||||||||||||||||||||||||||||||||
Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements | ||||||||||||||||||||||||||||||||||||||||
As of December 31, 2014 | As of December 31, 2013 | |||||||||||||||||||||||||||||||||||||||
Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheet | Gross Amount of Eligible Offsetting | Cash Collateral | Net Amount of | Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheet | Gross Amount of Eligible Offsetting | Cash Collateral | Net Amount of | |||||||||||||||||||||||||||||||||
Recognized | Pledged | Derivative Liabilities | Recognized | Pledged | Derivative Liabilities | |||||||||||||||||||||||||||||||||||
Derivative Assets | Derivative Liabilities | |||||||||||||||||||||||||||||||||||||||
(In thousands of dollars) | ||||||||||||||||||||||||||||||||||||||||
Derivatives subject to master netting agreements | $ | (767,635 | ) | $ | 63,981 | $ | — | $ | (703,654 | ) | $ | (100,260 | ) | $ | 91,627 | $ | — | $ | (8,633 | ) | ||||||||||||||||||||
Total | $ | (767,635 | ) | $ | 63,981 | $ | — | $ | (703,654 | ) | $ | (100,260 | ) | $ | 91,627 | $ | — | $ | (8,633 | ) | ||||||||||||||||||||
Not Designated as Hedging Instrument | ||||||||||||||||||||||||||||||||||||||||
Derivative instruments disclosure | ||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The effect of derivatives not designated as hedging instruments on the consolidated financial statements was as follows: | |||||||||||||||||||||||||||||||||||||||
Amount of Gain (Loss) Recognized | ||||||||||||||||||||||||||||||||||||||||
in Income on Derivative | ||||||||||||||||||||||||||||||||||||||||
Derivatives Not Designated as Hedging | Location of Gain (Loss) | Year Ended December 31, 2014 | Year Ended December 31, 2013 | |||||||||||||||||||||||||||||||||||||
Instruments under ASC 815-20 | Recognized in Income | |||||||||||||||||||||||||||||||||||||||
on Derivative | ||||||||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||||
Foreign currency forward contracts | Other income (expense) | $ | (48,791 | ) | $ | (21,244 | ) | |||||||||||||||||||||||||||||||||
Fuel swaps | Other income (expense) | (1,795 | ) | 243 | ||||||||||||||||||||||||||||||||||||
Fuel call options | Other income (expense) | — | (23 | ) | ||||||||||||||||||||||||||||||||||||
$ | (50,586 | ) | $ | (21,024 | ) | |||||||||||||||||||||||||||||||||||
Fair Value Hedging | ||||||||||||||||||||||||||||||||||||||||
Derivative instruments disclosure | ||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The effect of derivative instruments qualifying and designated as hedging instruments and the related hedged items in fair value hedges on the consolidated statements of comprehensive income (loss) was as follows: | |||||||||||||||||||||||||||||||||||||||
Location of Gain | Amount of Gain (Loss) | Amount of (Loss) Gain | ||||||||||||||||||||||||||||||||||||||
(Loss) | Recognized in | Recognized in | ||||||||||||||||||||||||||||||||||||||
Recognized in | Income on Derivative | Income on Hedged Item | ||||||||||||||||||||||||||||||||||||||
Income on | ||||||||||||||||||||||||||||||||||||||||
Derivative and | ||||||||||||||||||||||||||||||||||||||||
Derivatives and related Hedged Items | Hedged Item | Year Ended December 31, 2014 | Year Ended December 31, 2013 | Year Ended December 31, 2014 | Year Ended December 31, 2013 | |||||||||||||||||||||||||||||||||||
under ASC 815-20 Fair Value Hedging | ||||||||||||||||||||||||||||||||||||||||
Relationships | ||||||||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | Interest expense, net of interest capitalized | $ | 12,217 | $ | 9,354 | $ | 17,403 | $ | 37,745 | |||||||||||||||||||||||||||||||
Interest rate swaps | Other income (expense) | 42,530 | (71,630 | ) | (34,304 | ) | 68,743 | |||||||||||||||||||||||||||||||||
$ | 54,747 | $ | (62,276 | ) | $ | (16,901 | ) | $ | 106,488 | |||||||||||||||||||||||||||||||
Cash flow hedge | ||||||||||||||||||||||||||||||||||||||||
Derivative instruments disclosure | ||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The effect of derivative instruments qualifying and designated as cash flow hedging instruments on the consolidated financial statements was as follows: | |||||||||||||||||||||||||||||||||||||||
Amount of (Loss) Gain | Location of | Amount of (Loss) Gain | Location of | Amount of (Loss) Gain | ||||||||||||||||||||||||||||||||||||
Recognized in OCI | (Loss) Gain Reclassified | Reclassified from Accumulated | (Loss) Gain Recognized | Recognized in Income | ||||||||||||||||||||||||||||||||||||
on Derivative | from Accumulated | OCI into Income | in Income on | on Derivative (Ineffective | ||||||||||||||||||||||||||||||||||||
(Effective Portion) | OCI into Income | (Effective Portion) | Derivative | Portion and | ||||||||||||||||||||||||||||||||||||
(Effective Portion) | (Ineffective | Amount | ||||||||||||||||||||||||||||||||||||||
Portion and Amount Excluded from | Excluded from | |||||||||||||||||||||||||||||||||||||||
Effectiveness | Effectiveness testing) | |||||||||||||||||||||||||||||||||||||||
Derivatives under | Year Ended December 31, 2014 | Year Ended December 31, 2013 | Year Ended December 31, 2014 | Year Ended December 31, 2013 | Testing) | Year Ended December 31, 2014 | Year Ended December 31, 2013 | |||||||||||||||||||||||||||||||||
ASC 815-20 Cash Flow | ||||||||||||||||||||||||||||||||||||||||
Hedging Relationships | ||||||||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||||
Cross currency swaps | $ | — | $ | — | Interest Expense | $ | (261 | ) | $ | (3,531 | ) | Other income (expense) | $ | — | $ | — | ||||||||||||||||||||||||
Interest rate swaps | (97,851 | ) | 111,223 | Other income (expense) | — | — | Other income (expense) | (99 | ) | 431 | ||||||||||||||||||||||||||||||
Foreign currency forward contracts | (246,627 | ) | 68,364 | Depreciation and amortization expenses | (1,887 | ) | (1,797 | ) | Other income (expense) | (34 | ) | 9 | ||||||||||||||||||||||||||||
Foreign currency forward contracts | — | — | Other income (expense) | (4,291 | ) | 27,423 | Other income (expense) | — | — | |||||||||||||||||||||||||||||||
Foreign currency forward contracts | — | — | Interest expense | (57 | ) | (440 | ) | Other income (expense) | — | — | ||||||||||||||||||||||||||||||
Foreign currency collar options | (44,028 | ) | 13,199 | Depreciation and amortization expenses | — | — | Other income (expense) | — | — | |||||||||||||||||||||||||||||||
Fuel swaps | (515,324 | ) | 4,642 | Fuel | (27,984 | ) | 47,944 | Other income (expense) | (14,936 | ) | (3,413 | ) | ||||||||||||||||||||||||||||
$ | (903,830 | ) | $ | 197,428 | $ | (34,480 | ) | $ | 69,599 | $ | (15,069 | ) | $ | (2,973 | ) | |||||||||||||||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Schedule of future minimum lease payments under noncancelable operating leases | As of December 31, 2014, future minimum lease payments under noncancelable operating leases were as follows (in thousands): | |||
Year | ||||
2015 | $ | 18,154 | ||
2016 | 16,279 | |||
2017 | 12,471 | |||
2018 | 9,919 | |||
2019 | 7,699 | |||
Thereafter | 124,997 | |||
$ | 189,519 | |||
Schedule of future commitments to pay for usage of port facilities, marine consumables, services and maintenance contracts | At December 31, 2014, we have future commitments to pay for our usage of certain port facilities, marine consumables, services and maintenance contracts as follows (in thousands): | |||
Year | ||||
2015 | $ | 214,817 | ||
2016 | 149,336 | |||
2017 | 154,253 | |||
2018 | 82,010 | |||
2019 | 115,002 | |||
Thereafter | 127,843 | |||
$ | 843,261 | |||
Restructuring_and_Related_Char1
Restructuring and Related Charges (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||||||||||||||||||||
Restructuring and Related Costs | For the years ended December 31, 2014 and December 31, 2013, we incurred the following restructuring and related impairment charges in connection with our profitability initiatives (in thousands): | |||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||
Restructuring exit costs | $ | 4,318 | $ | 23,432 | ||||||||||||||||||||||||||||||||
Impairment charges | — | 33,514 | ||||||||||||||||||||||||||||||||||
Restructuring and related impairment charges | $ | 4,318 | $ | 56,946 | ||||||||||||||||||||||||||||||||
Consolidation of Structure | ||||||||||||||||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||||||||||||||||||||
Restructuring and Related Costs | The following table summarizes our restructuring exit costs related to the above initiative (in thousands): | |||||||||||||||||||||||||||||||||||
Beginning | Accruals | Payments | Beginning | Accruals | Payments | Ending Balance December 31, 2014 | Cumulative | Expected | ||||||||||||||||||||||||||||
Balance | Balance | Charges | Additional | |||||||||||||||||||||||||||||||||
1-Jan-13 | 1-Jan-14 | Incurred | Expenses | |||||||||||||||||||||||||||||||||
to be | ||||||||||||||||||||||||||||||||||||
Incurred | ||||||||||||||||||||||||||||||||||||
Termination benefits | $ | — | $ | 9,638 | $ | 1,323 | $ | 8,315 | $ | 917 | $ | 8,926 | $ | 306 | $ | 10,555 | $ | — | ||||||||||||||||||
Contract termination costs | — | 4,142 | 4,016 | 126 | (58 | ) | 68 | — | 4,084 | — | ||||||||||||||||||||||||||
Other related costs | — | 4,379 | 2,982 | 1,397 | 234 | 1,334 | 297 | 4,613 | — | |||||||||||||||||||||||||||
Total | $ | — | $ | 18,159 | $ | 8,321 | $ | 9,838 | $ | 1,093 | $ | 10,328 | $ | 603 | $ | 19,252 | $ | — | ||||||||||||||||||
Pullmantur | ||||||||||||||||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||||||||||||||||||||
Restructuring and Related Costs | The following table summarizes our restructuring exit costs related to the above initiative (in thousands): | |||||||||||||||||||||||||||||||||||
Beginning | Accruals | Payments | Beginning | Accruals | Payments | Ending Balance December 31, 2014 | Cumulative | Expected | ||||||||||||||||||||||||||||
Balance | Balance | Charges | Additional | |||||||||||||||||||||||||||||||||
1-Jan-13 | January 1, | Incurred | Expenses | |||||||||||||||||||||||||||||||||
2014 | to be | |||||||||||||||||||||||||||||||||||
Incurred(2) | ||||||||||||||||||||||||||||||||||||
Termination benefits | $ | — | $ | 3,910 | $ | — | $ | 3,910 | $ | 3,084 | $ | 4,879 | $ | 2,115 | $ | 6,994 | $ | — | ||||||||||||||||||
Contract termination costs | — | 847 | — | 847 | (607 | ) | — | 240 | 240 | — | ||||||||||||||||||||||||||
Other related costs | — | 516 | — | 516 | 748 | 1,264 | — | 1,264 | — | |||||||||||||||||||||||||||
Total | $ | — | $ | 5,273 | $ | — | $ | 5,273 | $ | 3,225 | $ | 6,143 | $ | 2,355 | $ | 8,498 | $ | — | ||||||||||||||||||
Quarterly_Selected_Financial_D1
Quarterly Selected Financial Data (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||||||||||||
Quarterly Selected Financial Data | ||||||||||||||||||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||
Total revenues(1) | $ | 1,887,224 | $ | 1,911,220 | $ | 1,980,043 | $ | 1,882,767 | $ | 2,388,762 | $ | 2,311,749 | $ | 1,817,826 | $ | 1,854,158 | ||||||||||||||||
Operating income(2)(3)(4) | $ | 97,466 | $ | 165,632 | $ | 195,587 | $ | 113,338 | $ | 529,462 | $ | 444,209 | $ | 119,344 | $ | 74,969 | ||||||||||||||||
Net income(2)(3)(4) | $ | 26,457 | $ | 76,226 | $ | 137,673 | $ | 24,747 | $ | 490,248 | $ | 365,701 | $ | 109,768 | $ | 7,018 | ||||||||||||||||
Earnings per share: | ||||||||||||||||||||||||||||||||
Basic | $ | 0.12 | $ | 0.35 | $ | 0.62 | $ | 0.11 | $ | 2.2 | $ | 1.66 | $ | 0.5 | $ | 0.03 | ||||||||||||||||
Diluted | $ | 0.12 | $ | 0.35 | $ | 0.62 | $ | 0.11 | $ | 2.19 | $ | 1.65 | $ | 0.49 | $ | 0.03 | ||||||||||||||||
Dividends declared per share | $ | 0.25 | $ | 0.12 | $ | 0.25 | $ | 0.12 | $ | 0.3 | $ | 0.25 | $ | 0.3 | $ | 0.25 | ||||||||||||||||
___________________________________ | ||||||||||||||||||||||||||||||||
-1 | Our revenues are seasonal based on the demand for cruises. Demand is strongest for cruises during the Northern Hemisphere's summer months and holidays. | |||||||||||||||||||||||||||||||
-2 | Amounts for the fourth quarter of 2013 include an impairment charge of $33.5 million to write down the assets held for sale related to the businesses to be sold and certain long-lived assets, consisting of aircraft owned and operated by Pullmantur Air, to their fair value. | |||||||||||||||||||||||||||||||
-3 | Amounts for the third and fourth quarters of 2014 include an aggregate increase to operating income and net income of $16.3 million and $36.8 million, respectively, due to the change in our voyage proration methodology as of September 30, 2014. Amounts for the third quarter of 2014 also include a loss of $17.4 million due to the sale of Celebrity Century. | |||||||||||||||||||||||||||||||
-4 | Amounts for the fourth quarter of 2014 include a $33.5 million tax benefit related to the reversal of a deferred tax asset valuation allowance due to Spanish tax reform. See Note 12. Income Taxes for further information. |
General_Details
General (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | |
General | |||
Investment in a joint venture, percentage of interest | 50.00% | ||
Number of cruise brands | 6 | ||
Number of ships in operation | 43 | ||
Number of destinations | 480 | ||
Number of continents | 7 | ||
Minimum | |||
General | |||
Investment in a joint venture, percentage of interest | 20.00% | ||
Maximum | |||
General | |||
Investment in a joint venture, percentage of interest | 50.00% | ||
TUI Cruises | |||
General | |||
Investment in a joint venture, percentage of interest | 50.00% | ||
Pullmantur and CDF Croisieres de France | |||
General | |||
Time lag in consolidation | 2 months | ||
Pullmantur Air | |||
General | |||
Noncontrolling Interest, Ownership Percentage by Parent | 19.00% | 49.00% |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
ship | ship | ||||||||||
Significant Accounting Policies [Line Items] | |||||||||||
Impact of voyage proration change, increase in Operating and Net Income | $36,800,000 | $16,300,000 | $53,200,000 | ||||||||
EPS impact of voyage proration change, increase (in dollars per share) | $0.24 | ||||||||||
Gross amount of port costs included in passenger ticket revenues | 546,600,000 | 494,200,000 | 459,800,000 | ||||||||
Number of Cruise Ships | 43 | 43 | |||||||||
Operating income | 119,344,000 | 529,462,000 | 195,587,000 | 97,466,000 | 74,969,000 | 444,209,000 | 113,338,000 | 165,632,000 | 941,859,000 | 798,148,000 | 403,110,000 |
Basic earnings per share (in dollars per share) | $0.50 | $2.20 | $0.62 | $0.12 | $0.03 | $1.66 | $0.11 | $0.35 | $3.45 | $2.16 | $0.08 |
Net income | 109,768,000 | 490,248,000 | 137,673,000 | 26,457,000 | 7,018,000 | 365,701,000 | 24,747,000 | 76,226,000 | 764,146,000 | 473,692,000 | 18,287,000 |
Diluted earnings per share (in dollars per share) | $0.49 | $2.19 | $0.62 | $0.12 | $0.03 | $1.65 | $0.11 | $0.35 | $3.43 | $2.14 | $0.08 |
Exchange gains (losses) recorded in other income (expense) | 49,500,000 | 13,400,000 | -11,800,000 | ||||||||
Exposure under foreign currency forward contracts, foreign currency collar options, fuel call options, interest rate and fuel swap agreements | 92,500,000 | 92,500,000 | |||||||||
Document Fiscal Year Focus | 2014 | ||||||||||
Cash Flow Statement | |||||||||||
Significant Accounting Policies [Line Items] | |||||||||||
Reclassification to conform to current year presentation | 1,800,000 | -500,000 | |||||||||
Balance Sheet Statement | |||||||||||
Significant Accounting Policies [Line Items] | |||||||||||
Reclassification to conform to current year presentation | 24,300,000 | ||||||||||
Ships | |||||||||||
Significant Accounting Policies [Line Items] | |||||||||||
Property, plant and equipment, useful life | 30 years | ||||||||||
Projected residual value | 15.00% | 15.00% | |||||||||
Ships | Lower Limit | |||||||||||
Significant Accounting Policies [Line Items] | |||||||||||
Drydock services period | 30 months | ||||||||||
Ships | Upper Limit | |||||||||||
Significant Accounting Policies [Line Items] | |||||||||||
Drydock services period | 60 months | ||||||||||
Ships in Last Third of Useful Life | |||||||||||
Significant Accounting Policies [Line Items] | |||||||||||
Property, plant and equipment, useful life | 35 years | ||||||||||
Projected residual value | 10.00% | 10.00% | |||||||||
Number of Cruise Ships | 5 | 5 | |||||||||
Operating income | 11,000,000 | ||||||||||
Basic earnings per share (in dollars per share) | $0.05 | ||||||||||
Net income | 11,000,000 | ||||||||||
Diluted earnings per share (in dollars per share) | $0.05 | ||||||||||
Media advertising | |||||||||||
Significant Accounting Policies [Line Items] | |||||||||||
Advertising costs | 205,200,000 | 205,800,000 | 200,900,000 | ||||||||
Brochure, production and direct mail costs | |||||||||||
Significant Accounting Policies [Line Items] | |||||||||||
Advertising costs | $136,700,000 | $137,100,000 | $130,400,000 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Useful Lives of Property and Equipment) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |
Number of Cruise Ships | 43 |
Ships | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 30 years |
Ship improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Ship improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 20 years |
Buildings and improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 10 years |
Buildings and improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 40 years |
Computer hardware and software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Computer hardware and software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Transportation equipment and other | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Transportation equipment and other | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 30 years |
Leasehold improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Leasehold improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 30 years |
Ships in Last Third of Useful Life | |
Property, Plant and Equipment [Line Items] | |
Number of Cruise Ships | 5 |
Property, plant and equipment, useful life | 35 years |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Passenger Ticket Revenues) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Segment Reporting Information [Line Items] | |||
Document Fiscal Year Focus | 2014 | ||
Number of cruise brands wholly owned | 5 | ||
Investment in a joint venture, percentage of interest | 50.00% | ||
Number of operating segments | 1 | ||
United States | |||
Passengers ticket revenue, percentage | |||
Passengers ticket revenue, percentage | 53.00% | 52.00% | 51.00% |
All other countries | |||
Passengers ticket revenue, percentage | |||
Passengers ticket revenue, percentage | 47.00% | 48.00% | 49.00% |
TUI Cruises | |||
Segment Reporting Information [Line Items] | |||
Investment in a joint venture, percentage of interest | 50.00% |
Goodwill_Details
Goodwill (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Goodwill [Roll Forward] | |||
Ending balance | $420,542,000 | $439,231,000 | |
Royal Caribbean International | |||
Goodwill [Roll Forward] | |||
Beginning balance | 287,124,000 | 287,436,000 | |
Foreign currency translation adjustment | -166,000 | -312,000 | |
Ending balance | 286,958,000 | 287,124,000 | |
Pullmantur | |||
Goodwill [Roll Forward] | |||
Beginning balance | 152,107,000 | 145,539,000 | |
Foreign currency translation adjustment | -18,523,000 | 6,568,000 | |
Ending balance | 133,584,000 | 152,107,000 | |
Total | |||
Goodwill [Roll Forward] | |||
Beginning balance | 439,231,000 | 432,975,000 | |
Foreign currency translation adjustment | -18,689,000 | 6,256,000 | |
Ending balance | 420,542,000 | 439,231,000 | |
Goodwill | Pullmantur | |||
Goodwill | |||
Impairment charge | 319,200,000 | ||
Goodwill, Fair Value Disclosure | $145,500,000 | ||
Fair Value in excess of carrying value, percent | 52.00% |
Intangible_Assets_Details
Intangible Assets (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Document Fiscal Year Focus | 2014 | ||
Pullmantur | Trademarks and trade names | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Intangible Assets, Percentage of Fair Value in Excess of Carrying Amount | 4.00% | ||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $17,400,000 | ||
Indefinite-lived Intangible Assets [Roll Forward] | |||
Indefinite-life intangible assetbPullmantur trademarks and trade names | 214,112,000 | 204,866,000 | |
Foreign currency translation adjustment | -26,074,000 | 9,246,000 | |
Total | $188,038,000 | $214,112,000 | $204,866,000 |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Abstract] | ||
Ships | $21,620,336 | $20,858,553 |
Ship improvements | 1,904,524 | 1,683,644 |
Ships under construction | 561,779 | 563,676 |
Land, buildings and improvements, including leasehold improvements and port facilities | 349,339 | 394,120 |
Computer hardware and software, transportation equipment and other | 889,579 | 771,304 |
Total property and equipment | 25,325,557 | 24,271,297 |
Less-accumulated depreciation and amortization | -7,089,989 | -6,753,545 |
Property and equipment, net | $18,235,568 | $17,517,752 |
Property_and_Equipment_Narrati
Property and Equipment (Narrative) (Details) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | |||||||
Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | |
USD ($) | USD ($) | USD ($) | USD ($) | Skysea Holding | Pullmantur Cruise | Pullmantur's Aircraft | Pullmantur's Aircraft | Revolving credit facility due in August 2018 | Celebrity Century | Brilliance of the Seas Vessel Lease | Brilliance of the Seas | Brilliance of the Seas | Revolving credit facility due in August 2018 | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | GBP (£) | USD ($) | |||||||
Property and Equipment | ||||||||||||||
Capitalized interest cost | $28,800,000 | $17,900,000 | $13,300,000 | |||||||||||
Document Fiscal Year Focus | 2014 | |||||||||||||
Proceeds from sale of ships | 220,000,000 | 9,811,000 | 220,000,000 | |||||||||||
Gain (Loss) on Disposition of Property, Plant, and Equipment | -17,400,000 | -17,401,000 | 0 | 0 | -17,400,000 | |||||||||
Investment in a joint venture, percentage of interest | 50.00% | 35.00% | ||||||||||||
Initial Lease Term | 25 years | |||||||||||||
Purchase price of Brilliance of the Seas, PPE addition | 275,400,000 | 175,400,000 | ||||||||||||
Asset Carrying Amount, Brilliance of the Seas, Including Improvements | 330,500,000 | |||||||||||||
Borrowing capacity, funds used for the purchase of Brilliance of the Seas | 1,200,000,000 | 1,200,000,000 | ||||||||||||
Impairment of Pullmantur related assets held for use | 13,500,000 | 48,900,000 | ||||||||||||
Restructuring related impairments | $18,200,000 |
Other_Assets_Details
Other Assets (Details) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2011 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | |
USD ($) | USD ($) | USD ($) | Nautalia Viajes, S.L. [Member] | Pullmantur Air | Grand Bahamas Shipyard Ltd. | Grand Bahamas Shipyard Ltd. | Grand Bahamas Shipyard Ltd. | Grand Bahamas Shipyard Ltd. | Grand Bahamas Shipyard Ltd. | Grand Bahamas Shipyard Ltd. | Pullmantur Air | Pullmantur Air | Pullmantur Air | Pullmantur | TUI Cruises GmbH joint venture | TUI Cruises GmbH joint venture | TUI Cruises GmbH joint venture | TUI Cruises GmbH joint venture | TUI Cruises GmbH joint venture | Skysea Holding | Exquisite Marine Ltd, Skysea Holding | |
Not Primary Beneficiary | Not Primary Beneficiary | Not Primary Beneficiary | Not Primary Beneficiary | Not Primary Beneficiary | Not Primary Beneficiary | aircraft | USD ($) | EUR (€) | EUR (€) | Not Primary Beneficiary | Not Primary Beneficiary | USD ($) | USD ($) | |||||||||
USD ($) | USD ($) | Equity | Equity | Loans Receivable | Loans Receivable | USD ($) | USD ($) | |||||||||||||||
USD ($) | USD ($) | USD ($) | USD ($) | |||||||||||||||||||
Other Assets | ||||||||||||||||||||||
Investment in a joint venture, percentage of interest | 50.00% | 40.00% | 50.00% | 50.00% | 50.00% | 35.00% | ||||||||||||||||
Net book value of investments | $53,800,000 | $56,100,000 | $370,100,000 | $354,300,000 | ||||||||||||||||||
Equity investment | 7,700,000 | 6,400,000 | 26,300,000 | |||||||||||||||||||
Loan investment | 46,100,000 | 49,700,000 | 80,000,000 | |||||||||||||||||||
Principal and Interest payments received from Grand Bahama (VIE) | 76,167,000 | 23,372,000 | 23,512,000 | 3,600,000 | 6,200,000 | |||||||||||||||||
Ownership interest in air business, percentage | 19.00% | 49.00% | 19.00% | 49.00% | ||||||||||||||||||
Number of aircraft | 4 | |||||||||||||||||||||
Percentage of Ownership on Aircraft | 100.00% | 100.00% | ||||||||||||||||||||
Debt, guaranteed percentage | 50.00% | 50.00% | ||||||||||||||||||||
Long term debt, principal amount | 180,000,000 | |||||||||||||||||||||
Amount outstanding on bank loan | 141,600,000 | 117,000,000 | ||||||||||||||||||||
Line of credit provided to related party | 125,000,000 | 90,000,000 | ||||||||||||||||||||
Interest rate on debt facility provided to related party (as a percent) | 5.00% | 5.00% | 3.00% | |||||||||||||||||||
Conditional guarantee commitment percentage | 50.00% | 50.00% | 100.00% | |||||||||||||||||||
Amount outstanding under line of credit provided to TUI Cruises | $67,400,000 | € 55,700,000 | ||||||||||||||||||||
Bank financing commitment percentage | 80.00% | 80.00% | ||||||||||||||||||||
Reduction of current ownership interest, minimum allowed (as a percent) | 37.50% | 37.50% | ||||||||||||||||||||
Debt instrument, interest rate, incremental increase (decrease), future periods | 0.50% |
LongTerm_Debt_Details
Long-Term Debt (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Long-Term Debt | ||
Long Term Debt and Capital lease obligations | $8,443,948 | $8,074,804 |
Less - current portion | -799,630 | -1,563,378 |
Long-term portion | 7,644,318 | 6,511,426 |
$1.1 billion unsecured revolving credit facility, LIBOR plus 1.75%, currently 1.92% and a facility fee of 0.3675%, due 2016 | ||
Long-Term Debt | ||
Long Term Debt | 713,000 | 435,000 |
$1.2 billion unsecured revolving credit facility, LIBOR plus 1.75%, currently 1.91% and a facility fee of 0.3675%, due 2018 | ||
Long-Term Debt | ||
Long Term Debt | 778,000 | 295,000 |
Unsecured senior notes and senior debentures, 5.25% to 11.88%, due 2015, 2016, 2018, 2022 and 2027 | ||
Long-Term Debt | ||
Long Term Debt | 1,721,190 | 1,703,040 |
€745 million unsecured senior notes, 5.63%, due 2014 | ||
Long-Term Debt | ||
Long Term Debt | 0 | 1,028,126 |
$589 million unsecured term loan, 4.47%, due through 2014 | ||
Long-Term Debt | ||
Long Term Debt | 0 | 42,071 |
$530 million unsecured term loan, LIBOR plus 0.51%, currently 0.83%, due through 2015 | ||
Long-Term Debt | ||
Long Term Debt | 37,857 | 113,571 |
$519 million unsecured term loan, LIBOR plus 0.45%, currently 0.77%, due through 2020 | ||
Long-Term Debt | ||
Long Term Debt | 259,573 | 302,835 |
$420 million unsecured term loan, 5.41%, due through 2021 | ||
Long-Term Debt | ||
Long Term Debt | 241,827 | 274,974 |
$420 million unsecured term loan, LIBOR plus 1.85%, currently 2.17%, due through 2021 | ||
Long-Term Debt | ||
Long Term Debt | 245,000 | 280,000 |
€159.4 million unsecured term loan, EURIBOR plus 1.58%, currently 1.77%, due through 2021 | ||
Long-Term Debt | ||
Long Term Debt | 112,540 | 146,452 |
$524.5 million unsecured term loan, LIBOR plus 0.50%, currently 0.83%, due through 2021 | ||
Long-Term Debt | ||
Long Term Debt | 305,958 | 349,667 |
$566.1 million unsecured term loan, LIBOR plus 0.37%, currently 0.69%, due through 2022 | ||
Long-Term Debt | ||
Long Term Debt | 353,793 | 400,966 |
$1.1 billion unsecured term loan, LIBOR plus 1.85%, currently 2.17%, due through 2022 | ||
Long-Term Debt | ||
Long Term Debt | 614,203 | 690,978 |
$632.0 million unsecured term loan, LIBOR plus 0.40%, currently 0.73%, due through 2023 | ||
Long-Term Debt | ||
Long Term Debt | 473,969 | 526,632 |
$673.5 million unsecured term loan, LIBOR plus 0.40%, currently 0.73%, due through 2024 | ||
Long-Term Debt | ||
Long Term Debt | 561,228 | 617,351 |
$65.0 million unsecured term loan, LIBOR plus 2.12%, currently 2.29%, due through 2019 | ||
Long-Term Debt | ||
Long Term Debt | 51,100 | 0 |
$1.0 million unsecured term loan, 3.00%, due through 2015 | ||
Long-Term Debt | ||
Long Term Debt | 750 | 0 |
$380.0 million unsecured term loan, LIBOR plus 2.12%, currently 2.29%, due through 2018 | ||
Long-Term Debt | ||
Long Term Debt | 380,000 | 0 |
$791.1 million unsecured term loan, LIBOR plus 1.30%, currently 1.62%, due through 2026 | ||
Long-Term Debt | ||
Long Term Debt | 791,108 | 0 |
$290.0 million unsecured term loan, LIBOR plus 2.5%, currently 2.67%, due 2016 | ||
Long-Term Debt | ||
Long Term Debt | 290,000 | 290,000 |
€365.0 million unsecured term loan, EURIBOR plus 2.30%, currently 2.32%, due 2017 | ||
Long-Term Debt | ||
Long Term Debt | 441,687 | 502,934 |
$7.3 million unsecured term loan, LIBOR plus 2.5%, currently 2.82%, due through 2023 | ||
Long-Term Debt | ||
Long Term Debt | 4,915 | 5,391 |
$30.3 million unsecured term loan, LIBOR plus 3.75%, currently 3.99%, due through 2021 | ||
Long-Term Debt | ||
Long Term Debt | 13,603 | 15,073 |
Capital lease obligations | ||
Long-Term Debt | ||
Capital Lease Obligations | $52,647 | $54,743 |
LongTerm_Debt_LongTerm_Debt_Ph
Long-Term Debt (Long-Term Debt Phantom) (Details) | 12 Months Ended | |||||||||||||||||||||||||||||||||
Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | |
EURIBOR | LIBOR | $1.1 billion unsecured revolving credit facility, LIBOR plus 1.75%, currently 1.92% and a facility fee of 0.3675%, due 2016 | $1.2 billion unsecured revolving credit facility, LIBOR plus 1.75%, currently 1.91% and a facility fee of 0.3675%, due 2018 | Unsecured senior notes and senior debentures, 5.25% to 11.88%, due 2015, 2016, 2018, 2022 and 2027 | Unsecured senior notes and senior debentures, 5.25% to 11.88%, due 2015, 2016, 2018, 2022 and 2027 | Unsecured senior notes and senior debentures, 5.25% to 11.88%, due 2015, 2016, 2018, 2022 and 2027 | Unsecured senior notes and senior debentures, 5.25% to 11.88%, due 2015, 2016, 2018, 2022 and 2027 | Unsecured senior notes and senior debentures, 5.25% to 11.88%, due 2015, 2016, 2018, 2022 and 2027 | Unsecured senior notes and senior debentures, 5.25% to 11.88%, due 2015, 2016, 2018, 2022 and 2027 | Unsecured senior notes and senior debentures, 5.25% to 11.88%, due 2015, 2016, 2018, 2022 and 2027 | Unsecured senior notes and senior debentures, 5.25% to 11.88%, due 2015, 2016, 2018, 2022 and 2027 | Unsecured senior notes and senior debentures, 5.25% to 11.88%, due 2015, 2016, 2018, 2022 and 2027 | Unsecured senior notes and senior debentures, 5.25% to 11.88%, due 2015, 2016, 2018, 2022 and 2027 | €745 million unsecured senior notes, 5.63%, due 2014 | $589 million unsecured term loan, 4.47%, due through 2014 | $530 million unsecured term loan, LIBOR plus 0.51%, currently 0.83%, due through 2015 | $519 million unsecured term loan, LIBOR plus 0.45%, currently 0.77%, due through 2020 | $420 million unsecured term loan, 5.41%, due through 2021 | $420 million unsecured term loan, LIBOR plus 1.85%, currently 2.17%, due through 2021 | €159.4 million unsecured term loan, EURIBOR plus 1.58%, currently 1.77%, due through 2021 | $524.5 million unsecured term loan, LIBOR plus 0.50%, currently 0.83%, due through 2021 | $566.1 million unsecured term loan, LIBOR plus 0.37%, currently 0.69%, due through 2022 | $1.1 billion unsecured term loan, LIBOR plus 1.85%, currently 2.17%, due through 2022 | $632.0 million unsecured term loan, LIBOR plus 0.40%, currently 0.73%, due through 2023 | $673.5 million unsecured term loan, LIBOR plus 0.40%, currently 0.73%, due through 2024 | $65.0 million unsecured term loan, LIBOR plus 2.12%, currently 2.29%, due through 2019 | $1.0 million unsecured term loan, 3.00%, due through 2015 | $380.0 million unsecured term loan, LIBOR plus 2.12%, currently 2.29%, due through 2018 | $791.1 million unsecured term loan, LIBOR plus 1.30%, currently 1.62%, due through 2026 | $290.0 million unsecured term loan, LIBOR plus 2.5%, currently 2.67%, due 2016 | €365.0 million unsecured term loan, EURIBOR plus 2.30%, currently 2.32%, due 2017 | $7.3 million unsecured term loan, LIBOR plus 2.5%, currently 2.82%, due through 2023 | $30.3 million unsecured term loan, LIBOR plus 3.75%, currently 3.99%, due through 2021 | |
USD ($) | USD ($) | Period 1 | Period 2 | Period 3 | Period 4 | Lower Limit | Upper Limit | Upper Limit | Upper Limit | Upper Limit | EUR (€) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | USD ($) | USD ($) | ||||
Period 1 | Period 2 | Period 3 | Period 4 | |||||||||||||||||||||||||||||||
Long-Term Debt | ||||||||||||||||||||||||||||||||||
Long term debt, principal amount | $1,100,000,000 | $1,200,000,000 | € 745,000,000 | $589,000,000 | $530,000,000 | $519,000,000 | $420,000,000 | $420,000,000 | € 159,400,000 | $524,500,000 | $566,100,000 | $1,100,000,000 | $632,000,000 | $673,500,000 | $65,000,000 | $1,000,000,000 | $380,000,000 | $791,100,000 | $290,000,000 | € 365,000,000 | $7,300,000 | $30,300,000 | ||||||||||||
Long term debt, stated interest rate (as a percent) | 5.63% | 4.47% | 5.41% | 3.00% | ||||||||||||||||||||||||||||||
Long term debt, current interest rate (as a percent) | 1.92% | 1.91% | 0.83% | 0.77% | 2.17% | 1.77% | 0.83% | 0.69% | 2.17% | 0.73% | 0.73% | 2.29% | 2.29% | 1.62% | 2.67% | 2.32% | 2.82% | 3.99% | ||||||||||||||||
Long term debt, facility fee | 0.37% | 3.68% | ||||||||||||||||||||||||||||||||
Margin on floating rate base (as a percent) | 1.75% | 1.75% | 0.51% | 0.45% | 1.85% | 1.58% | 0.50% | 0.37% | 1.85% | 0.40% | 0.40% | 2.12% | 2.12% | 1.30% | 2.50% | 2.30% | 2.50% | 3.75% | ||||||||||||||||
Long term debt, due date (year) | 2016 | 2018 | 2015 | 2016 | 2018 | 2022 | 2027 | 2014 | 2014 | 2015 | 2020 | 2021 | 2021 | 2021 | 2021 | 2022 | 2022 | 2023 | 2024 | 2019 | 2015 | 2018 | 2026 | 2016 | 2017 | 2023 | 2021 | |||||||
Long term debt, minimum stated interest rate | 5.25% | 5.25% | 5.25% | 5.25% | 5.25% | |||||||||||||||||||||||||||||
Long term debt, maximum stated interest rate | 11.88% | 11.88% | 11.88% | 11.88% | 11.88% | |||||||||||||||||||||||||||||
Debt Instrument, Description of Variable Rate Basis | EURIBOR | LIBOR |
LongTerm_Debt_Narrative_Detail
Long-Term Debt (Narrative) (Details) | Jan. 31, 2014 | Dec. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 |
Unsecured term loan due in August 2018 | Unsecured term loan due in August 2018 | Unsecured senior notes due in January 2014 | Unsecured term loan due in July 2017 | Unsecured term loan due in July 2017 | Unsecured term loan due in July 2017 | Oasis of the Seas term loan | Oasis of the Seas term loan | Oasis of the Seas term loan | Allure of the Seas term loan | Allure of the Seas term loan | Allure of the Seas term loan | Quantum of the Seas term loan | Quantum of the Seas term loan | Unsecured term loan maturing 12 years after ship delivery | Credit agreement | Revolving credit facility due in August 2018 | Revolving credit facility due July 2016 | Unsecured term loans guaranteed by an export credit agency | Unsecured term loans guaranteed by an export credit agency | Unsecured term loans guaranteed by an export credit agency | Unsecured term loans guaranteed by an export credit agency | |
USD ($) | LIBOR | EUR (€) | EUR (€) | EURIBOR | EURIBOR | USD ($) | LIBOR | LIBOR | USD ($) | LIBOR | LIBOR | USD ($) | LIBOR | USD ($) | USD ($) | USD ($) | Minimum | Maximum | Up-front Payment Arrangement | Up-front Payment Arrangement | ||
Minimum | Maximum | |||||||||||||||||||||
Long-Term Debt | ||||||||||||||||||||||
Maximum borrowing capacity under credit agreement | $380,000,000 | € 365,000,000 | $420,000,000 | $1,100,000,000 | $791,100,000 | |||||||||||||||||
Margin on floating rate base (as a percent) | 2.12% | 2.30% | 3.00% | 1.85% | 2.10% | 1.85% | 2.10% | 1.30% | ||||||||||||||
Long term debt, principal amount | 745,000,000 | |||||||||||||||||||||
Interest rate on debt instrument (as a percent) | 5.63% | |||||||||||||||||||||
Conditional guarantee commitment percentage | 95.00% | |||||||||||||||||||||
Debt Instrument, Term | 12 years | |||||||||||||||||||||
Long term debt, current interest rate (as a percent) | 1.62% | |||||||||||||||||||||
Derivative, Fixed Interest Rate | 3.74% | |||||||||||||||||||||
Increase in capacity | 300,000,000 | |||||||||||||||||||||
Borrowing capacity | $2,300,000,000 | $1,200,000,000 | $1,100,000,000 | |||||||||||||||||||
Credit agency fees, percentage of outstanding loan balance | 0.88% | 1.48% | ||||||||||||||||||||
Credit agency fees, percentage of maximum loan amount payable | 2.30% | 2.37% |
LongTerm_Debt_Debt_Maturities_
Long-Term Debt (Debt Maturities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Disclosure [Abstract] | ||
2015 | $799,630 | |
2016 | 1,856,302 | |
2017 | 920,687 | |
2018 | 1,785,083 | |
2019 | 529,197 | |
Thereafter | 2,553,049 | |
Long Term Debt and Capital lease obligations | $8,443,948 | $8,074,804 |
Shareholders_Equity_Details
Shareholders' Equity (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | ||||||||
In Thousands, except Share data in Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Mar. 31, 2015 |
Shareholders' Equity | |||||||||||
Current quarter dividend declared and paid (in dollars per share) | $0.25 | $0.25 | $0.12 | $0.12 | |||||||
Common Stock, Dividend Declared Prior Quarter Paid Current Quarter (in dollars per share) | $0.30 | $0.25 | $0.25 | $0.12 | |||||||
Treasury stock, shares acquired | 3.5 | ||||||||||
Treasury stock acquired, price per share | $67.45 | ||||||||||
Number of shares sold to a third party investor by the shareholder | 3.5 | ||||||||||
Total cost of treasury stock, acquired in current period | $236,100 | $236,074 | |||||||||
Document Fiscal Year Focus | 2014 | ||||||||||
Common stock dividends declared (in dollars per share) | $0.30 | $0.30 | $0.25 | $0.25 | $0.25 | $0.25 | $0.12 | $0.12 | $0.12 | ||
Subsequent event | |||||||||||
Shareholders' Equity | |||||||||||
Common Stock, Dividend Declared Prior Quarter Paid Current Quarter (in dollars per share) | $0.30 |
StockBased_Employee_Compensati2
Stock-Based Employee Compensation (Details) (USD $) | 12 Months Ended | 6 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2014 | |
plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of stock-based compensation plans | 2 | |||
Maximum number of award to be granted per individual | 500,000 | |||
Maximum aggregate number of shares available under the employee stock purchase plan | 1,300,000 | |||
Purchase price for each share of common stock as percentage of the average of the market price | 85.00% | |||
Shares of common stock issued under the ESPP plan | 26,921 | 27,036 | 35,927 | |
Weighted-average price of shares of common stock issued under the ESPP plan | $52.08 | $33.16 | $25.58 | |
Chief Executive Officer | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Quarterly issuance of common stock to Chief Executive Officer (shares) | 10,086 | 10,086 | 10,086 | |
Annually issuance of common stock to Chief Executive Officer (shares) | 40,344 | 40,344 | 20,172 | |
Lower Limit | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Vesting period for options and restricted stock | 4 years | |||
Upper Limit | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Maximum expiry period for options | 10 years | |||
Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Maximum actual number of shares underlying each performance share award as a percentage of target performance shares | 200.00% | |||
Number of target performance shares issued (Shares) | 233,831 | |||
Actual payout as percentage of target for performance shares issued in period | 119.00% | |||
2008 Equity Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Maximum number of shares authorized for issuance under stock-based compensation plans | 11,000,000 |
StockBased_Employee_Compensati3
Stock-Based Employee Compensation (Expense Recognized) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | |||
Employee stock-base compensation expense | $26,116 | $21,178 | $24,153 |
Marketing, selling and administrative expenses | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | |||
Employee stock-base compensation expense | $26,116 | $21,178 | $24,153 |
StockBased_Employee_Compensati4
Stock-Based Employee Compensation (Assumptions) (Details) | 12 Months Ended |
Dec. 31, 2012 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Dividend yield | 1.50% |
Expected stock price volatility | 46.00% |
Risk-free interest rate | 1.10% |
Expected option life | 6 years |
StockBased_Employee_Compensati5
Stock-Based Employee Compensation (Options Activity) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Number of Options | |||
Outstanding at January 1, 2014 (Options) | 2,694,872 | ||
Granted (Options) | 0 | ||
Exercised (Options) | -1,941,365 | ||
Canceled (Options) | -47,456 | ||
Outstanding at December 31, 2014 (Options) | 706,051 | 2,694,872 | |
Vested and expected to vest at December 31, 2014 (Options) | 704,796 | ||
Options Exercisable at December 31, 2014 (Options) | 622,168 | ||
Weighted-Average Exercise Price | |||
Outstanding at January 1, 2014 (Price per Share) | $36.30 | ||
Granted (Price per Share) | $0 | ||
Exercised (Price per Share) | $36.22 | ||
Canceled (Price per Share) | $43.02 | ||
Outstanding at December 31, 2014 (Price per Share) | $36.03 | $36.30 | |
Vested and expected to vest at December 31, 2014 (Price per Share) | $36.02 | ||
Options Exercisable at December 31, 2014 (Price per Share) | $34.85 | ||
Weighted-Average Remaining Contractual Term | |||
Outstanding at January 1, 2014 (Years) | 3 years 7 months 21 days | 3 years 9 months 29 days | |
Outstanding at December 31, 2014 (Years) | 3 years 7 months 21 days | 3 years 9 months 29 days | |
Vested and expected to vest at December 31, 2014 (Years) | 3 years 7 months 17 days | ||
Options Exercisable at December 31, 2014 (Years) | 3 years 3 months 22 days | ||
Aggregate Intrinsic Value | |||
Outstanding at January 1, 2014 | $30,080,000 | ||
Outstanding at December 31, 2014 | 33,182,000 | 30,080,000 | |
Vested and expected to vest at December 31, 2014 | 33,130,000 | ||
Options Exercisable at December 31, 2014 | 29,970,000 | ||
Weighted-average estimated fair value of stock options granted (Price per Share) | $9.90 | ||
Total intrinsic value of stock options exercised | 35,900,000 | 17,500,000 | 15,300,000 |
Stock Option | |||
Aggregate Intrinsic Value | |||
Total unrecognized compensation cost | $100,000 | ||
Weighted-average period of unrecognized compensation cost to be recognized (Years) | 0 years 1 month 21 days |
StockBased_Employee_Compensati6
Stock-Based Employee Compensation (Other Equity) (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock-based awards conversion ratio | 1 | ||
Number of Awards | |||
Non-vested share units at January 1, 2014 (Share Units) | 989,005 | ||
Granted (Share Units) | 472,150 | ||
Vested (Share Units) | -405,001 | ||
Canceled (Share Units) | -74,601 | ||
Non-vested share units expected to vest as of December 31, 2014 (Share Units) | 981,553 | 989,005 | |
Weighted-Average Grant Date Fair Value | |||
Non-vested share units at January 1, 2014 (Price per Share) | $9.26 | ||
Granted (Price per Share) | $54.60 | $36.07 | $30.03 |
Vested (Price per Share) | $51.24 | ||
Canceled (Price per Share) | $55.30 | ||
Non-vested share units expected to vest as of December 31, 2014 (Price per Share) | $10.25 | $9.26 | |
Weighted-average estimated fair value of restricted stock units granted (Price per Share) | $54.60 | $36.07 | $30.03 |
Fair value of shares released on vesting of restricted stock units | $20.70 | $19.20 | $18.80 |
Total unrecognized compensation cost | 14.6 | ||
Weighted-average period of unrecognized compensation cost to be recognized (Years) | 1 year 3 months 7 days | ||
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock-based awards conversion ratio | 1 | ||
Number of Awards | |||
Non-vested share units at January 1, 2014 (Share Units) | 459,929 | ||
Granted (Share Units) | 233,831 | ||
Vested (Share Units) | -7,301 | ||
Canceled (Share Units) | -27,573 | ||
Non-vested share units expected to vest as of December 31, 2014 (Share Units) | 658,886 | ||
Weighted-Average Grant Date Fair Value | |||
Non-vested share units at January 1, 2014 (Price per Share) | $32.36 | ||
Granted (Price per Share) | $56.72 | ||
Vested (Price per Share) | $53.81 | ||
Canceled (Price per Share) | $54.11 | ||
Non-vested share units expected to vest as of December 31, 2014 (Price per Share) | $39.86 | ||
Weighted-average estimated fair value of restricted stock units granted (Price per Share) | $56.72 | ||
Total unrecognized compensation cost | $12.90 | ||
Weighted-average period of unrecognized compensation cost to be recognized (Years) | 0 years 10 months 21 days |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share [Abstract] | |||||||||||
Net income for basic and diluted earnings per share | $109,768 | $490,248 | $137,673 | $26,457 | $7,018 | $365,701 | $24,747 | $76,226 | $764,146 | $473,692 | $18,287 |
Weighted-average common shares outstanding (in shares) | 221,658 | 219,638 | 217,930 | ||||||||
Dilutive effect of stock options, performance stock awards and restricted stock awards (in shares) | 1,386 | 1,303 | 1,527 | ||||||||
Diluted weighted-average shares outstanding | 223,044 | 220,941 | 219,457 | ||||||||
Basic earnings per share (in dollars per share) | $0.50 | $2.20 | $0.62 | $0.12 | $0.03 | $1.66 | $0.11 | $0.35 | $3.45 | $2.16 | $0.08 |
Diluted earnings per share (in dollars per share) | $0.49 | $2.19 | $0.62 | $0.12 | $0.03 | $1.65 | $0.11 | $0.35 | $3.43 | $2.14 | $0.08 |
Earnings_Per_Share_Antidilutiv
Earnings Per Share (Antidilutive Shares) (Details) (Options and performance shares) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Options and performance shares | ||
Antidilutive securities excluded from computation of earnings per share | ||
Shares not included in diluted earnings per share | 1.9 | 3.1 |
Retirement_Plan_Details
Retirement Plan (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Compensation and Retirement Disclosure [Abstract] | |||
Pension expenses | $15.40 | $13 | $15.20 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | 3 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | |
Income Taxes | ||||
Net deferred income tax (benefit) expense | ($44,437,000) | ($1,842,000) | $28,939,000 | |
Pullmantur | ||||
Income Taxes | ||||
Valuation allowance adjustment, deferred tax expense (benefit) | -33,500,000 | -33,500,000 | ||
Net deferred income tax (benefit) expense | 28,500,000 | |||
Adjustment of valuation allowance (as a percent) | 70.00% | 70.00% | ||
Pullmantur | Valuation Allowance of Deferred Tax Assets | ||||
Income Taxes | ||||
Valuation allowance required as per projections (as a percent) | 100.00% | |||
Valuation allowance adjustment, deferred tax expense (benefit) | 33,700,000 | |||
Pullmantur | Valuation Allowance of Deferred Tax Liability | ||||
Income Taxes | ||||
Income Tax Expense (Benefit) Adjustment of Deferred Tax Asset [Liability] | 5,200,000 | |||
Pullmantur | Tax benefit due to change in Spanish Tax Reform | ||||
Income Taxes | ||||
Valuation allowance adjustment, deferred tax expense (benefit) | -33,500,000 | |||
Deferred Income Tax Expense (Benefit) | -10,000,000 | |||
Other income (expense) | ||||
Income Taxes | ||||
Income tax expense (benefit) | ($20,900,000) | $24,900,000 | $55,500,000 | |
Tax year 2014 | Pullmantur | ||||
Income Taxes | ||||
Corporate income tax rate | 30.00% | |||
Operating loss carryforward (period) | 18 years | |||
Annual limitation of taxable income for NOL carryforward (as a percent) | 25.00% | |||
Tax year 2015 | Pullmantur | ||||
Income Taxes | ||||
Corporate income tax rate | 28.00% | |||
Annual limitation of taxable income for NOL carryforward (as a percent) | 70.00% | |||
Tax year 2016 | Pullmantur | ||||
Income Taxes | ||||
Corporate income tax rate | 25.00% |
Changes_in_Accumulated_Other_C2
Changes in Accumulated Other Comprehensive Income (Loss) (Changes by Component)(Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Accumulated comprehensive loss at January 1, 2014, January 1, 2013 | $5,671 | ($134,516) | |
Other comprehensive income before reclassifications | -940,866 | 207,197 | |
Amounts reclassified from accumulated other comprehensive income (loss) | 38,201 | -67,010 | |
Total other comprehensive (loss) income | -902,665 | 140,187 | -58,578 |
Accumulated comprehensive loss at December 31, 2014, December 31, 2013 | -896,994 | 5,671 | -134,516 |
Changes related to cash flow derivative hedges | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Accumulated comprehensive loss at January 1, 2014, January 1, 2013 | 43,324 | -84,505 | |
Other comprehensive income before reclassifications | -903,830 | 197,428 | |
Amounts reclassified from accumulated other comprehensive income (loss) | 34,480 | -69,599 | |
Total other comprehensive (loss) income | -869,350 | 127,829 | |
Accumulated comprehensive loss at December 31, 2014, December 31, 2013 | -826,026 | 43,324 | |
Changes in defined benefit plans | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Accumulated comprehensive loss at January 1, 2014, January 1, 2013 | -23,994 | -34,823 | |
Other comprehensive income before reclassifications | -8,937 | 8,240 | |
Amounts reclassified from accumulated other comprehensive income (loss) | 1,724 | 2,589 | |
Total other comprehensive (loss) income | -7,213 | 10,829 | |
Accumulated comprehensive loss at December 31, 2014, December 31, 2013 | -31,207 | -23,994 | |
Foreign currency translation adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Accumulated comprehensive loss at January 1, 2014, January 1, 2013 | -13,659 | -15,188 | |
Other comprehensive income before reclassifications | -28,099 | 1,529 | |
Amounts reclassified from accumulated other comprehensive income (loss) | 1,997 | 0 | |
Total other comprehensive (loss) income | -26,102 | 1,529 | |
Accumulated comprehensive loss at December 31, 2014, December 31, 2013 | ($39,761) | ($13,659) |
Changes_in_Accumulated_Other_C3
Changes in Accumulated Other Comprehensive Income (Loss) (Reclassifications) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Other income (expense) | ($177,713) | ($324,456) | ($384,823) | ||||||||
Interest expense, net of interest capitalized | -258,299 | -332,422 | -355,785 | ||||||||
Depreciation and amortization expenses | -772,445 | -754,711 | -730,493 | ||||||||
Fuel | -947,391 | -924,414 | -909,691 | ||||||||
Net income | 109,768 | 490,248 | 137,673 | 26,457 | 7,018 | 365,701 | 24,747 | 76,226 | 764,146 | 473,692 | 18,287 |
Reclassification out of accumulated other comprehensive income (loss) | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net income | -38,201 | 67,010 | |||||||||
Reclassification out of accumulated other comprehensive income (loss) | Gain (loss) on cash flow derivative hedges: | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net income | -34,480 | 69,599 | |||||||||
Reclassification out of accumulated other comprehensive income (loss) | Gain (loss) on cash flow derivative hedges: | Cross currency swaps | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Interest expense, net of interest capitalized | -261 | -3,531 | |||||||||
Reclassification out of accumulated other comprehensive income (loss) | Gain (loss) on cash flow derivative hedges: | Foreign currency forward contracts | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Other income (expense) | -4,291 | 27,423 | |||||||||
Interest expense, net of interest capitalized | -57 | -440 | |||||||||
Depreciation and amortization expenses | -1,887 | -1,797 | |||||||||
Reclassification out of accumulated other comprehensive income (loss) | Gain (loss) on cash flow derivative hedges: | Fuel contracts | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Fuel | -27,984 | 47,944 | |||||||||
Reclassification out of accumulated other comprehensive income (loss) | Amortization of defined benefit plans: | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Actuarial loss | -888 | -1,753 | |||||||||
Prior service costs | -836 | -836 | |||||||||
Net income | -1,724 | -2,589 | |||||||||
Reclassification out of accumulated other comprehensive income (loss) | Foreign currency translation adjustments | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Other income (expense) | ($1,997) | $0 |
Fair_Value_Measurements_and_De2
Fair Value Measurements and Derivative Instruments (Details) (Fair Value, Measurements, Nonrecurring, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Level 1 | ||
Assets: | ||
Cash and cash equivalents | $189,241 | $204,687 |
Total Assets | 189,241 | 204,687 |
Liabilities: | ||
Long-term debt (including current portion of long-term debt) | 1,859,361 | 2,888,255 |
Total Liabilities | 1,859,361 | 2,888,255 |
Level 2 | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Total Assets | 0 | 0 |
Liabilities: | ||
Long-term debt (including current portion of long-term debt) | 6,902,053 | 5,542,965 |
Total Liabilities | 6,902,053 | 5,542,965 |
Level 3 | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Total Assets | 0 | 0 |
Liabilities: | ||
Long-term debt (including current portion of long-term debt) | 0 | 0 |
Total Liabilities | 0 | 0 |
Total | ||
Assets: | ||
Cash and cash equivalents | 189,241 | 204,687 |
Total Assets | 189,241 | 204,687 |
Liabilities: | ||
Long-term debt (including current portion of long-term debt) | 8,761,414 | 8,431,220 |
Total Liabilities | 8,761,414 | 8,431,220 |
Reported Value Measurement | ||
Assets: | ||
Cash and cash equivalents | 189,241 | 204,687 |
Total Assets | 189,241 | 204,687 |
Liabilities: | ||
Long-term debt (including current portion of long-term debt) | 8,391,301 | 8,020,061 |
Total Liabilities | $8,391,301 | $8,020,061 |
Fair_Value_Measurements_and_De3
Fair Value Measurements and Derivative Instruments (Recurring) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets: | ||
Derivative financial instruments | $0 | $96,949 |
Liabilities: | ||
Derivative financial instruments | 703,654 | 8,633 |
Fair Value, Measurements, Recurring | Total | ||
Assets: | ||
Derivative financial instruments | 63,981 | 188,576 |
Investments | 5,531 | 6,044 |
Total Assets | 69,512 | 194,620 |
Liabilities: | ||
Derivative financial instruments | 767,635 | 100,260 |
Total Liabilities | 767,635 | 100,260 |
Fair Value, Measurements, Recurring | Level 1 | ||
Assets: | ||
Derivative financial instruments | 0 | 0 |
Investments | 5,531 | 6,044 |
Total Assets | 5,531 | 6,044 |
Liabilities: | ||
Derivative financial instruments | 0 | 0 |
Total Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | ||
Assets: | ||
Derivative financial instruments | 63,981 | 188,576 |
Investments | 0 | 0 |
Total Assets | 63,981 | 188,576 |
Liabilities: | ||
Derivative financial instruments | 767,635 | 100,260 |
Total Liabilities | 767,635 | 100,260 |
Fair Value, Measurements, Recurring | Level 3 | ||
Assets: | ||
Derivative financial instruments | 0 | 0 |
Investments | 0 | 0 |
Total Assets | 0 | 0 |
Liabilities: | ||
Derivative financial instruments | 0 | 0 |
Total Liabilities | $0 | $0 |
Fair_Value_Measurements_and_De4
Fair Value Measurements and Derivative Instruments (Intangible and Long-lived Assets) (Details) (USD $) | 12 Months Ended | 3 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2012 |
Assets and Liabilities not measured on a recurring basis | ||||
Long-lived assets, carrying value | $17,517,752 | $17,517,752 | $18,235,568 | |
Carrying value of goodwill | 439,231 | 439,231 | 420,542 | |
Pullmantur | ||||
Assets and Liabilities not measured on a recurring basis | ||||
Carrying value of goodwill | 152,107 | 152,107 | 133,584 | 145,539 |
Pullmantur | Aircraft | ||||
Assets and Liabilities not measured on a recurring basis | ||||
Long-lived assets, carrying value | 63,000 | 63,000 | ||
Pullmantur | Trademarks and trade names | ||||
Assets and Liabilities not measured on a recurring basis | ||||
Carrying value of indefinite-life intangible assets | 214,112 | 214,112 | 188,038 | 204,866 |
Fair Value, Measurements, Nonrecurring | Pullmantur | ||||
Assets and Liabilities not measured on a recurring basis | ||||
Restructuring related impairments | 19,985 | |||
Fair Value, Measurements, Nonrecurring | Pullmantur | Level 3 | ||||
Assets and Liabilities not measured on a recurring basis | ||||
Assets held for sale | 0 | 0 | ||
Fair Value, Measurements, Nonrecurring | Pullmantur | Aircraft | ||||
Assets and Liabilities not measured on a recurring basis | ||||
Long-lived assets, Impairment | 13,529 | |||
Fair Value, Measurements, Nonrecurring | Pullmantur | Aircraft | Level 3 | ||||
Assets and Liabilities not measured on a recurring basis | ||||
Long-lived assets - aircraft | 49,507 | 49,507 | ||
Fair Value, Measurements, Nonrecurring | Pullmantur | Property and equipment | ||||
Assets and Liabilities not measured on a recurring basis | ||||
Restructuring related impairments | 18,200 | |||
Reported Value Measurement | Fair Value, Measurements, Nonrecurring | Pullmantur | ||||
Assets and Liabilities not measured on a recurring basis | ||||
Assets held for sale | 0 | 0 | ||
Reported Value Measurement | Fair Value, Measurements, Nonrecurring | Pullmantur | Aircraft | ||||
Assets and Liabilities not measured on a recurring basis | ||||
Long-lived assets - aircraft | 49,507 | 49,507 | ||
Total | Fair Value, Measurements, Nonrecurring | Pullmantur | ||||
Assets and Liabilities not measured on a recurring basis | ||||
Assets held for sale | 0 | 0 | ||
Total | Fair Value, Measurements, Nonrecurring | Pullmantur | Aircraft | ||||
Assets and Liabilities not measured on a recurring basis | ||||
Long-lived assets - aircraft | 49,507 | 49,507 | ||
Pullmantur Cruise | ||||
Assets and Liabilities not measured on a recurring basis | ||||
Restructuring related impairments | $18,200 |
Fair_Value_Measurements_and_De5
Fair Value Measurements and Derivative Instruments (Offsetting of Derivative Instruments) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Offsetting of Financial Assets under Master Netting Agreements [Abstract] | ||
Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheet | $63,981 | $188,576 |
Gross Amount of Eligible Offsetting Recognized Derivative Liabilities | -63,981 | -91,627 |
Net Amount of Derivative Assets | 0 | 96,949 |
Offsetting of Financial Liabilities under Master Netting Agreements [Abstract] | ||
Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheet | -767,635 | -100,260 |
Gross Amount of Eligible Offsetting Recognized Derivative Assets | 63,981 | 91,627 |
Net Amount of Derivative Liabilities | ($703,654) | ($8,633) |
Fair_Value_Measurements_and_De6
Fair Value Measurements and Derivative Instruments (Interest Rate Risk) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Derivative instruments disclosure | ||
Percentage of long-term debt with fixed interest rate | 28.50% | 34.60% |
Interest rate swaps | ||
Derivative instruments disclosure | ||
Notional amount of derivative | 2,900,000,000 | 3,000,000,000 |
Interest rate swaps | Quantum of the Seas facility | ||
Derivative instruments disclosure | ||
Fixed rate on converted debt (as a percent) | 3.74% | |
Interest rate swaps | Anthem of the Seas facility | ||
Derivative instruments disclosure | ||
Fixed rate on converted debt (as a percent) | 3.86% | |
Interest rate swaps | Fair Value Hedging | 5.41% Fixed rate debt | ||
Derivative instruments disclosure | ||
Unsecured term loan | 420,000,000 | 420,000,000 |
Debt amount | 245,000,000 | |
Interest rate on hedged debt (as a percent) | 5.41% | |
Derivative variable rate of interest (as a percent) | 4.20% | |
Interest rate swaps | Fair Value Hedging | 5.25% Fixed rate debt | ||
Derivative instruments disclosure | ||
Unsecured term loan | 650,000,000 | |
Interest rate on hedged debt (as a percent) | 5.25% | |
Derivative variable rate of interest (as a percent) | 3.86% | |
Interest rate swaps | Cash flow hedge | Quantum of the Seas facility | ||
Derivative instruments disclosure | ||
Anticipated loan balance | 735,000,000 | |
Interest rate swaps | Cash flow hedge | Anthem of the Seas facility | ||
Derivative instruments disclosure | ||
Anticipated loan balance | 725,000,000 | |
Interest rate swaps | Cash flow hedge | Celebrity Reflection floating rate debt | ||
Derivative instruments disclosure | ||
Anticipated loan balance | 545,400,000 | |
Fixed rate on converted debt (as a percent) | 2.85% | |
Foreign exchange contracts | ||
Derivative instruments disclosure | ||
Notional amount of derivative | 3,000,000,000 | 2,500,000,000 |
LIBOR | Interest rate swaps | Fair Value Hedging | 5.41% Fixed rate debt | ||
Derivative instruments disclosure | ||
Additional interest above LIBOR rate (as a percent) | 3.87% | |
LIBOR | Interest rate swaps | Fair Value Hedging | 5.25% Fixed rate debt | ||
Derivative instruments disclosure | ||
Additional interest above LIBOR rate (as a percent) | 3.63% | |
LIBOR | Interest rate swaps | Cash flow hedge | Quantum of the Seas facility | ||
Derivative instruments disclosure | ||
Additional interest above LIBOR rate (as a percent) | 1.30% | |
LIBOR | Interest rate swaps | Cash flow hedge | Anthem of the Seas facility | ||
Derivative instruments disclosure | ||
Additional interest above LIBOR rate (as a percent) | 1.30% | |
LIBOR | Interest rate swaps | Cash flow hedge | Celebrity Reflection floating rate debt | ||
Derivative instruments disclosure | ||
Additional interest above LIBOR rate (as a percent) | 0.40% |
Fair_Value_Measurements_and_De7
Fair Value Measurements and Derivative Instruments (Derivative Instruments) (Details) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | |
USD ($) | USD ($) | USD ($) | Foreign currency forward | Foreign currency forward | Foreign currency forward | Foreign exchange contracts | Foreign exchange contracts | Forward Contracts | Forward Contracts | Cash flow hedge | €745 million unsecured senior notes, 5.63%, due 2014 | |
Not Designated | Not Designated | Not Designated | USD ($) | USD ($) | Designated as Hedging Instrument | Designated as Hedging Instrument | Foreign currency forward | EUR (€) | ||||
USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | EUR (€) | |||||||
Derivative instruments disclosure | ||||||||||||
Aggregate cost of ships on order | $5,000,000,000 | |||||||||||
Amount deposited for cost of ships on order | 394,400,000 | |||||||||||
Percentage of aggregate cost exposed to fluctuations in the euro exchange rate | 28.80% | 36.30% | ||||||||||
Notional amount | 474,000,000 | 3,000,000,000 | 2,500,000,000 | 502,900,000 | 415,600,000 | 365,000,000 | ||||||
Unsecured term loan | 745,000,000 | |||||||||||
Interest rate on hedged debt (as a percent) | 5.63% | |||||||||||
Change in fair value of foreign currency forward contracts recognized in earnings | -48,600,000 | -19,300,000 | 7,700,000 | |||||||||
Exchange gains (losses) recorded in other income (expense) | $49,500,000 | $13,400,000 | ($11,800,000) | $49,500,000 | $13,400,000 | ($11,800,000) |
Fair_Value_Measurements_and_De8
Fair Value Measurements and Derivative Instruments (Fuel Price Risk) (Details) (Fuel Price Risk, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivative instruments disclosure | ||
Estimated unrealized net gains associated with cash flow hedges pertaining to fuel swap agreements expected to be reclassified to earnings from other accumulated comprehensive income (loss) | ($223.10) | $9.50 |
Fuel Swaps | 2014 | ||
Derivative instruments disclosure | ||
Fuel Swap Agreements (metric tons) | 0 | 762,000 |
Percentage of projected requirements | 0.00% | 57.00% |
Fuel Swaps | 2015 | ||
Derivative instruments disclosure | ||
Fuel Swap Agreements (metric tons) | 806,000 | 665,000 |
Percentage of projected requirements | 58.00% | 45.00% |
Fuel Swaps | 2016 | ||
Derivative instruments disclosure | ||
Fuel Swap Agreements (metric tons) | 802,000 | 372,000 |
Percentage of projected requirements | 55.00% | 25.00% |
Fuel Swaps | 2017 | ||
Derivative instruments disclosure | ||
Fuel Swap Agreements (metric tons) | 525,000 | 74,000 |
Percentage of projected requirements | 35.00% | 5.00% |
Fuel Swaps | 2018 | ||
Derivative instruments disclosure | ||
Fuel Swap Agreements (metric tons) | 226,000 | 0 |
Percentage of projected requirements | 15.00% | 0.00% |
Fair_Value_Measurements_and_De9
Fair Value Measurements and Derivative Instruments (Balance Sheet) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Asset Derivatives | ||
Asset Derivatives | $63,981 | $188,576 |
Liability Derivatives | ||
Liability Derivatives | 767,635 | 100,260 |
Designated as Hedging Instrument | ||
Asset Derivatives | ||
Asset Derivatives | 63,981 | 173,229 |
Liability Derivatives | ||
Liability Derivatives | 767,635 | 77,629 |
Designated as Hedging Instrument | Collars | Other Assets | ||
Asset Derivatives | ||
Asset Derivatives | 0 | 22,172 |
Designated as Hedging Instrument | Collars | Derivative Financial Instruments | ||
Liability Derivatives | ||
Liability Derivatives | 21,855 | 0 |
Designated as Hedging Instrument | Collars | Other long-term Liabilities | ||
Liability Derivatives | ||
Liability Derivatives | 0 | 0 |
Not Designated as Hedging Instrument | ||
Asset Derivatives | ||
Asset Derivatives | 0 | 15,347 |
Liability Derivatives | ||
Liability Derivatives | 0 | 22,631 |
Interest rate swaps | Designated as Hedging Instrument | Other Assets | ||
Asset Derivatives | ||
Asset Derivatives | 0 | 56,571 |
Interest rate swaps | Designated as Hedging Instrument | Other long-term Liabilities | ||
Liability Derivatives | ||
Liability Derivatives | 65,768 | 66,920 |
Foreign currency forward contracts | Designated as Hedging Instrument | Other Assets | ||
Asset Derivatives | ||
Asset Derivatives | 63,981 | 13,783 |
Foreign currency forward contracts | Designated as Hedging Instrument | Derivative Financial Instruments | ||
Asset Derivatives | ||
Asset Derivatives | 0 | 61,596 |
Liability Derivatives | ||
Liability Derivatives | 17,619 | 0 |
Foreign currency forward contracts | Designated as Hedging Instrument | Other long-term Liabilities | ||
Liability Derivatives | ||
Liability Derivatives | 164,627 | 0 |
Foreign currency forward contracts | Not Designated as Hedging Instrument | ||
Liability Derivatives | ||
Liability Derivatives | 0 | 22,631 |
Foreign currency forward contracts | Not Designated as Hedging Instrument | Derivative Financial Instruments | ||
Asset Derivatives | ||
Asset Derivatives | 0 | 15,347 |
Fuel contracts | Designated as Hedging Instrument | Fuel Swaps | Other Assets | ||
Asset Derivatives | ||
Asset Derivatives | 0 | 8,205 |
Fuel contracts | Designated as Hedging Instrument | Fuel Swaps | Derivative Financial Instruments | ||
Asset Derivatives | ||
Asset Derivatives | 0 | 10,902 |
Liability Derivatives | ||
Liability Derivatives | 227,512 | 1,657 |
Fuel contracts | Designated as Hedging Instrument | Fuel Swaps | Other long-term Liabilities | ||
Liability Derivatives | ||
Liability Derivatives | $270,254 | $9,052 |
Recovered_Sheet1
Fair Value Measurements and Derivative Instruments (Non-Derivative Instruments) (Details) (Foreign currency debt) | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 |
USD ($) | USD ($) | Current portion of long-term debt | Current portion of long-term debt | Long-term debt | Long-term debt | Pullmantur and TUI Cruises | Pullmantur and TUI Cruises | Pullmantur and TUI Cruises | Pullmantur and TUI Cruises | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | USD ($) | EUR (€) | |||
Net investment hedge | ||||||||||
Carrying Value of Non-derivative instrument Designated as hedging instrument | $168,718 | $750,796 | $0 | $477,442 | $168,718 | $273,354 | $168,700 | € 139,400 | $750,800 | € 544,900 |
Recovered_Sheet2
Fair Value Measurements and Derivative Instruments (Income Statement Hedging Instruments) (Details) (Fair Value Hedging, USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Recognized in Income on Derivative | $54,747 | ($62,276) |
Amount of Gain (Loss) Recognized in Income on Hedged Item | -16,901 | 106,488 |
Interest rate swaps | Interest expense, net of interest capitalized | ||
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Recognized in Income on Derivative | 12,217 | 9,354 |
Amount of Gain (Loss) Recognized in Income on Hedged Item | 17,403 | 37,745 |
Interest rate swaps | Other income (expense) | ||
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Recognized in Income on Derivative | 42,530 | -71,630 |
Amount of Gain (Loss) Recognized in Income on Hedged Item | ($34,304) | $68,743 |
Recovered_Sheet3
Fair Value Measurements and Derivative Instruments (Designated Cash Flow Hedges) (Details) (Cash flow hedge, USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | ($903,830) | $197,428 |
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | -34,480 | 69,599 |
Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness testing) | -15,069 | -2,973 |
Cross currency swaps | Other income (expense) | ||
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness testing) | 0 | 0 |
Cross currency swaps | Interest Expense | ||
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | 0 | 0 |
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | -261 | -3,531 |
Interest rate swaps | Other income (expense) | ||
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | -97,851 | 111,223 |
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 0 | 0 |
Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness testing) | -99 | 431 |
Foreign currency forward contracts | Other income (expense) | ||
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | 0 | 0 |
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | -4,291 | 27,423 |
Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness testing) | 0 | 0 |
Foreign currency forward contracts | Interest Expense | ||
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | 0 | 0 |
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | -57 | -440 |
Foreign currency forward contracts | Depreciation and amortization expenses | ||
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | -246,627 | 68,364 |
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | -1,887 | -1,797 |
Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness testing) | -34 | 9 |
Foreign currency collar options | Other income (expense) | ||
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness testing) | 0 | 0 |
Foreign currency collar options | Depreciation and amortization expenses | ||
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | -44,028 | 13,199 |
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 0 | 0 |
Fuel Swaps | Other income (expense) | ||
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness testing) | -14,936 | -3,413 |
Fuel Swaps | Fuel cost | ||
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | -515,324 | 4,642 |
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | ($27,984) | $47,944 |
Recovered_Sheet4
Fair Value Measurements and Derivative Instruments (Non-Derivative Net Investment) (Details) (Foreign currency debt, USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Net investment hedge | ||
Amount of Gain (Loss) Recognized in OCI (Effective Portion) | $25,382 | ($34,295) |
Amount of Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | 0 |
Other income (expense) | ||
Net investment hedge | ||
Amount of Gain (Loss) Recognized in OCI (Effective Portion) | 25,382 | -34,295 |
Amount of Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | $0 | $0 |
Recovered_Sheet5
Fair Value Measurements and Derivative Instruments (Derivatives Not Designated as Hedging Instruments) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Derivative instruments disclosure | ||
Amount of Gain (Loss) Recognized in Income on Derivative | ($50,586) | ($21,024) |
Foreign exchange contracts | Other income (expense) | ||
Derivative instruments disclosure | ||
Amount of Gain (Loss) Recognized in Income on Derivative | -48,791 | -21,244 |
Fuel contracts | Fuel swaps | Other income (expense) | ||
Derivative instruments disclosure | ||
Amount of Gain (Loss) Recognized in Income on Derivative | -1,795 | 243 |
Fuel contracts | Options | Other income (expense) | ||
Derivative instruments disclosure | ||
Amount of Gain (Loss) Recognized in Income on Derivative | $0 | ($23) |
Recovered_Sheet6
Fair Value Measurements and Derivative Instruments (Credit Features) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Maturity of at least five years | Lower Limit | ||
Derivative instruments disclosure | ||
Interest rate instrument term | 5 years | |
Interest rate contracts | ||
Derivative instruments disclosure | ||
Number of derivative instruments | 5 | |
Aggregate fair value of all derivative instruments with credit-related contingent features in net liability positions | 65.8 | $66.90 |
Standard & Poor's, BBB- Rating | Lower Limit | ||
Derivative instruments disclosure | ||
Credit ratings for senior debt | BBB- | |
Standard & Poor's, BB Rating | ||
Derivative instruments disclosure | ||
Credit ratings for senior debt | BB | |
Moody's, Ba1 Rating | ||
Derivative instruments disclosure | ||
Credit ratings for senior debt | Ba1 | |
Moody's, Baa3 Rating | ||
Derivative instruments disclosure | ||
Credit ratings for senior debt | Baa3 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | |||||||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Jan. 31, 2015 | Jan. 31, 2015 | Jan. 31, 2015 | Jan. 31, 2015 | |
USD ($) | Oasis class ship term loans | Oasis class ship term loans | Oasis class ship term loans | Unsecured term loan maturing twelve years after ship delivery | Unsecured term loan maturing twelve years after ship delivery | LIBOR | Celebrity Cruise Ships | Royal Caribbean International | Royal Caribbean International | Royal Caribbean International | Royal Caribbean International | Class Action Complaint | Subsequent event | Subsequent event | Subsequent event | Subsequent event | ||
Oasis-third class ship | Oasis-third class ship | Oasis-fourth class ship | Oasis-third class ship | Oasis-third class ship | Oasis class ship term loans | Project edge-class ship | Quantum-class ship | Oasis-class ship | Oasis-fourth class ship | Cruise ships on order | crew_member | Oasis class ship term loans | Unsecured term loan maturing twelve years after ship delivery | Unsecured term loan maturing twelve years after ship delivery | LIBOR | |||
EUR (€) | EUR (€) | USD ($) | EUR (€) | Oasis-third class ship | berth | ship | ship | berth | berth | Oasis-fourth class ship | Oasis-fourth class ship | Oasis-fourth class ship | Oasis class ship term loans | |||||
USD ($) | EUR (€) | Oasis-fourth class ship | ||||||||||||||||
Commitments and Contingencies | ||||||||||||||||||
Number of ships under construction | 2 | 2 | ||||||||||||||||
Approximate Berths | 2,900 | 5,450 | 19,200 | |||||||||||||||
Bank financing commitment percentage | 80.00% | |||||||||||||||||
Unsecured term loan, construction financing commitment per ship | € 713,800,000 | € 892,200,000 | $215,900,000 | € 178,400,000 | $1,100,000,000 | € 931,200,000 | ||||||||||||
Percentage of unsecured term loan guaranteed by an export credit agency | 100.00% | 100.00% | ||||||||||||||||
Unsecured term loan, amortization period | 12 years | 12 years | ||||||||||||||||
Interest rate on debt instrument (as a percent) | 2.53% | 3.82% | ||||||||||||||||
Margin on floating rate base (as a percent) | 1.20% | 1.10% | ||||||||||||||||
Aggregate cost of ships expected to enter service | 5,000,000,000 | |||||||||||||||||
Deposit for the purchase of ships expected to enter service | $394,400,000 | |||||||||||||||||
Percentage of aggregate cost exposed to fluctuations in the euro exchange rate | 28.80% | 36.30% | ||||||||||||||||
Number of Crew Members Submitting Demands for Arbitration | 575 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Leases) (Details) | 12 Months Ended | 3 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 |
USD ($) | USD ($) | USD ($) | Brilliance of the Seas Vessel Lease | Brilliance of the Seas Vessel Lease | Brilliance of the Seas Vessel Lease | Brilliance of the Seas Vessel Lease | Brilliance of the Seas Vessel Lease | Brilliance of the Seas Vessel Lease | Brilliance of the Seas | Brilliance of the Seas | |
USD ($) | GBP (£) | USD ($) | GBP (£) | USD ($) | GBP (£) | USD ($) | GBP (£) | ||||
Commitments and Contingencies | |||||||||||
Purchase price of Brilliance of the Seas, PPE addition | $275.40 | £ 175.4 | |||||||||
Expenses related to operating leases | $52 | $57.50 | $61.60 | $19.30 | £ 11.7 | $19.10 | £ 12.3 | $23.30 | £ 14.6 |
Commitments_and_Contingencies_3
Commitments and Contingencies (Future Payments) (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Future minimum lease payments under noncancelable operating leases | |
2015 | 18,154 |
2016 | 16,279 |
2017 | 12,471 |
2018 | 9,919 |
2019 | 7,699 |
Thereafter | 124,997 |
Future minimum lease payments under noncancelable operating leases, Total | 189,519 |
Future noncancelable purchase commitments | |
2015 | 214,817 |
2016 | 149,336 |
2017 | 154,253 |
2018 | 82,010 |
2019 | 115,002 |
Thereafter | 127,843 |
Future noncancelable purchase commitments, Total | 843,261 |
Credit agreement | |
Change of control provisions in debt covenants | |
Number of months considered to determine requirement of prepayment of debts | 24 months |
Lower Limit | Credit agreement | |
Change of control provisions in debt covenants | |
Debt instrument covenant, minimum percentage of ownership by a person | 33.00% |
Lower Limit | Debt Securities | |
Change of control provisions in debt covenants | |
Debt instrument covenant, minimum percentage of ownership by a person | 50.00% |
Restructuring_and_Related_Char2
Restructuring and Related Charges (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring exit costs | $4,318,000 | $23,432,000 | ||
Asset Impairment Charges Related to Restructuring | 0 | 33,514,000 | 0 | |
Restructuring and related impairment charges | 4,318,000 | 56,946,000 | ||
Ownership interest retained, percent | 50.00% | |||
Consolidation of Structure | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Number of shore-side positions eliminated | 500 | |||
Consolidation of Structure | Marketing, Selling and Administrative and Depreciation and Amortization Expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring exit costs | 7,400,000 | |||
Consolidation of Structure | Restructuring and Related Impairment Charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring exit costs | 1,093,000 | 18,159,000 | ||
Pullmantur | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Number of shore-side positions eliminated | 100 | |||
Restructuring and Related Cost, Number of Positions not Executed | 30 | |||
Pullmantur | Marketing, Selling and Administrative and Depreciation and Amortization Expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring exit costs | 8,900,000 | |||
Pullmantur | Restructuring and Related Impairment Charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring exit costs | 3,225,000 | 5,273,000 | ||
Pullmantur | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Percentage of Ownership on Aircraft | 100.00% | |||
Pullmantur Air | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Noncontrolling Interest, Ownership Percentage by Parent | 49.00% | 19.00% | ||
Percentage of Ownership on Aircraft | 100.00% | |||
Pullmantur Air and Nautalia Viajes, S.L. | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Noncontrolling Interest, Ownership Percentage by Parent | 49.00% | |||
Ownership interest retained, percent | 19.00% | |||
Pullmantur Air and Nautalia Viajes, S.L. | Restructuring and Related Impairment Charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring related impairments | 20,000,000 | |||
Other Operating Expenses [Member] | Pullmantur Air and Nautalia Viajes, S.L. | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Gain (Loss) on Disposition of Business | 600,000 | |||
Guarantee Type, Other [Member] | Other Operating Expenses [Member] | Pullmantur Air and Nautalia Viajes, S.L. | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Gain (Loss) on Disposition of Business | $5,500,000 |
Restructuring_and_Related_Char3
Restructuring and Related Charges (Rollforwards) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Restructuring Reserve [Roll Forward] | ||
Accruals | $4,318 | $23,432 |
Termination benefits | Consolidation of Structure | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance January 1, | 8,315 | 0 |
Accruals | 917 | 9,638 |
Payments | 8,926 | 1,323 |
Ending Balance December 31, | 306 | 8,315 |
Cumulative Charges Incurred | 10,555 | |
Expected Additional Expenses to be Incurred | 0 | |
Termination benefits | Pullmantur | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance January 1, | 3,910 | 0 |
Accruals | 3,084 | 3,910 |
Payments | 4,879 | 0 |
Ending Balance December 31, | 2,115 | 3,910 |
Cumulative Charges Incurred | 6,994 | |
Expected Additional Expenses to be Incurred | 0 | |
Contract termination costs | Consolidation of Structure | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance January 1, | 126 | 0 |
Accruals | -58 | 4,142 |
Payments | 68 | 4,016 |
Ending Balance December 31, | 0 | 126 |
Cumulative Charges Incurred | 4,084 | |
Expected Additional Expenses to be Incurred | 0 | |
Contract termination costs | Pullmantur | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance January 1, | 847 | 0 |
Accruals | -607 | 847 |
Payments | 0 | 0 |
Ending Balance December 31, | 240 | 847 |
Cumulative Charges Incurred | 240 | |
Expected Additional Expenses to be Incurred | 0 | |
Other related costs | Consolidation of Structure | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance January 1, | 1,397 | 0 |
Accruals | 234 | 4,379 |
Payments | 1,334 | 2,982 |
Ending Balance December 31, | 297 | 1,397 |
Cumulative Charges Incurred | 4,613 | |
Expected Additional Expenses to be Incurred | 0 | |
Other related costs | Pullmantur | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance January 1, | 516 | 0 |
Accruals | 748 | 516 |
Payments | 1,264 | 0 |
Ending Balance December 31, | 0 | 516 |
Cumulative Charges Incurred | 1,264 | |
Expected Additional Expenses to be Incurred | 0 | |
Restructuring and Related Impairment Charges | Consolidation of Structure | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance January 1, | 9,838 | 0 |
Accruals | 1,093 | 18,159 |
Payments | 10,328 | 8,321 |
Ending Balance December 31, | 603 | 9,838 |
Cumulative Charges Incurred | 19,252 | |
Expected Additional Expenses to be Incurred | 0 | |
Restructuring and Related Impairment Charges | Pullmantur | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance January 1, | 5,273 | 0 |
Accruals | 3,225 | 5,273 |
Payments | 6,143 | 0 |
Ending Balance December 31, | 2,355 | 5,273 |
Cumulative Charges Incurred | 8,498 | |
Expected Additional Expenses to be Incurred | $0 |
Quarterly_Selected_Financial_D2
Quarterly Selected Financial Data (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||
Total revenues | $1,817,826,000 | $2,388,762,000 | $1,980,043,000 | $1,887,224,000 | $1,854,158,000 | $2,311,749,000 | $1,882,767,000 | $1,911,220,000 | $8,073,855,000 | $7,959,894,000 | $7,688,024,000 | |
Operating income | 119,344,000 | 529,462,000 | 195,587,000 | 97,466,000 | 74,969,000 | 444,209,000 | 113,338,000 | 165,632,000 | 941,859,000 | 798,148,000 | 403,110,000 | |
Net income | 109,768,000 | 490,248,000 | 137,673,000 | 26,457,000 | 7,018,000 | 365,701,000 | 24,747,000 | 76,226,000 | 764,146,000 | 473,692,000 | 18,287,000 | |
Earnings per share: | ||||||||||||
Basic (in dollars per share) | $0.50 | $2.20 | $0.62 | $0.12 | $0.03 | $1.66 | $0.11 | $0.35 | $3.45 | $2.16 | $0.08 | |
Diluted (in dollars per share) | $0.49 | $2.19 | $0.62 | $0.12 | $0.03 | $1.65 | $0.11 | $0.35 | $3.43 | $2.14 | $0.08 | |
Dividends declared per share | $0.30 | $0.30 | $0.25 | $0.25 | $0.25 | $0.25 | $0.12 | $0.12 | $0.12 | |||
Condensed Income Statements, Captions [Line Items] | ||||||||||||
Restructuring exit costs | 4,318,000 | 23,432,000 | ||||||||||
Impairment of Pullmantur related assets | 385,444,000 | |||||||||||
Impact of voyage proration change, increase in Operating and Net Income | 36,800,000 | 16,300,000 | 53,200,000 | |||||||||
Gain (Loss) on Disposition of Property, Plant, and Equipment | -17,400,000 | -17,401,000 | 0 | 0 | ||||||||
Pullmantur | ||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||
Impairment of Pullmantur related assets | 33,500,000 | |||||||||||
Valuation allowance adjustment, deferred tax expense (benefit) | ($33,500,000) | ($33,500,000) |