Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 19, 2018 | |
Document and Entity Information | ||
Entity Registrant Name | ROYAL CARIBBEAN CRUISES LTD | |
Entity Central Index Key | 884,887 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 211,746,787 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement [Abstract] | ||
Passenger ticket revenues | $ 1,425,644 | $ 1,418,223 |
Onboard and other revenues | 602,112 | 590,337 |
Total revenues | 2,027,756 | 2,008,560 |
Cruise operating expenses: | ||
Commissions, transportation and other | 290,609 | 310,248 |
Onboard and other | 99,537 | 105,994 |
Payroll and related | 227,156 | 215,735 |
Food | 119,642 | 121,211 |
Fuel | 160,341 | 177,414 |
Other operating | 278,734 | 245,222 |
Total cruise operating expenses | 1,176,019 | 1,175,824 |
Marketing, selling and administrative expenses | 337,361 | 317,465 |
Depreciation and amortization expenses | 240,230 | 235,749 |
Operating Income | 274,146 | 279,522 |
Other income (expense): | ||
Interest income | 7,733 | 6,252 |
Interest expense, net of interest capitalized | (67,878) | (80,317) |
Equity investment income | 28,752 | 11,880 |
Impairment loss related to Skysea Holding | 23,343 | 0 |
Other expense | (757) | (2,611) |
Total other income (expense) | (55,493) | (64,796) |
Net Income | $ 218,653 | $ 214,726 |
Earnings per Share: | ||
Basic (in dollars per share) | $ 1.03 | $ 1 |
Diluted (in dollars per share) | $ 1.02 | $ 0.99 |
Weighted-Average Shares Outstanding: | ||
Basic (in shares) | 212,610 | 214,870 |
Diluted (in shares) | 213,602 | 215,813 |
Comprehensive Income | ||
Net Income | $ 218,653 | $ 214,726 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | 1,160 | 2,342 |
Change in defined benefit plans | 7,760 | (641) |
Gain on cash flow derivative hedges | 142,530 | 22,461 |
Total other comprehensive income | 151,450 | 24,162 |
Comprehensive Income | $ 370,103 | $ 238,888 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 111,245 | $ 120,112 |
Trade and other receivables, net | 387,862 | 318,641 |
Inventories | 110,826 | 111,393 |
Prepaid expenses and other assets | 350,653 | 258,171 |
Derivative financial instruments | 73,940 | 99,320 |
Total current assets | 1,034,526 | 907,637 |
Property and equipment, net | 21,207,786 | 19,735,180 |
Goodwill | 288,479 | 288,512 |
Other assets | 1,440,181 | 1,429,597 |
Total assets | 23,970,972 | 22,360,926 |
Current liabilities | ||
Current portion of long-term debt | 1,144,017 | 1,188,514 |
Accounts payable | 454,576 | 360,113 |
Accrued interest | 90,388 | 47,469 |
Accrued expenses and other liabilities | 680,397 | 903,022 |
Derivative financial instruments | 40,314 | 47,464 |
Customer deposits | 2,785,462 | 2,308,291 |
Total current liabilities | 5,195,154 | 4,854,873 |
Long-term debt | 7,664,722 | 6,350,937 |
Other long-term liabilities | 464,300 | 452,813 |
Commitments and contingencies (Note 7) | ||
Shareholders’ equity | ||
Preferred stock ($0.01 par value; 20,000,000 shares authorized; none outstanding) | 0 | 0 |
Common stock ($0.01 par value; 500,000,000 shares authorized; 235,738,538 and 235,198,901 shares issued, March 31, 2018 and December 31, 2017, respectively) | 2,357 | 2,352 |
Paid-in capital | 3,390,055 | 3,390,117 |
Retained earnings | 9,090,544 | 9,022,405 |
Accumulated other comprehensive loss | (182,815) | (334,265) |
Treasury stock (24,008,342 and 21,861,308 common shares at cost, March 31, 2018 and December 31, 2017, respectively) | (1,653,345) | (1,378,306) |
Total shareholders’ equity | 10,646,796 | 10,702,303 |
Total liabilities and shareholders' equity | $ 23,970,972 | $ 22,360,926 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 235,738,538 | 235,198,901 |
Treasury stock, common shares (in shares) | 24,008,342 | 21,861,308 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Operating Activities | ||
Net income | $ 218,653 | $ 214,726 |
Adjustments: | ||
Depreciation and amortization | 240,230 | 235,749 |
Impairment loss related to Skysea Holding | 23,343 | 0 |
Net deferred income tax (benefit) expense | (1,504) | 610 |
Gain on derivative instruments not designated as hedges | (7,810) | (13,812) |
Share-based compensation expense | 20,164 | 17,262 |
Equity investment income | (28,752) | (11,880) |
Amortization of debt issuance costs | 10,108 | 13,256 |
Gain on sale of property and equipment | 0 | (30,902) |
Changes in operating assets and liabilities: | ||
Increase in trade and other receivables, net | (10,181) | (828) |
Decrease in inventories | 567 | 5,391 |
Increase in prepaid expenses and other assets | (89,725) | (32,083) |
Increase in accounts payable | 110,467 | 56,373 |
Increase in accrued interest | 42,919 | 45,206 |
Decrease in accrued expenses and other liabilities | (109,136) | (57,344) |
Increase in customer deposits | 477,878 | 333,735 |
Dividends received from unconsolidated affiliates | 37,918 | 27,997 |
Other, net | (11,017) | (6,930) |
Net cash provided by operating activities | 924,122 | 796,526 |
Investing Activities | ||
Purchases of property and equipment | (1,720,232) | (122,783) |
Cash received on settlement of derivative financial instruments | 64,487 | 13,812 |
Cash received on loans to unconsolidated affiliates | 13,953 | 5,011 |
Proceeds from the sale of property and equipment | 0 | 230,000 |
Other, net | (3,353) | (2,440) |
Net cash (used in) provided by investing activities | (1,645,145) | 123,600 |
Financing Activities | ||
Debt proceeds | 2,544,737 | 1,006,000 |
Debt issuance costs | (41,344) | (10,383) |
Repayments of debt | (1,394,222) | (1,840,402) |
Purchases of treasury stock | (275,038) | 0 |
Dividends paid | (127,840) | (102,942) |
Proceeds from exercise of common stock options | 3,863 | 2,100 |
Other, net | 1,697 | 1,233 |
Net cash provided by (used in) financing activities | 711,853 | (944,394) |
Effect of exchange rate changes on cash | 303 | 974 |
Net decrease in cash and cash equivalents | (8,867) | (23,294) |
Cash and cash equivalents at beginning of period | 120,112 | 132,603 |
Cash and cash equivalents at end of period | 111,245 | 109,309 |
Cash paid during the period for: | ||
Interest, net of amount capitalized | $ 16,953 | $ 24,296 |
General
General | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | General Description of Business We are a global cruise company. As of March 31, 2018 , we own and operate three global cruise brands: Royal Caribbean International, Celebrity Cruises and Azamara Club Cruises (collectively, our "Global Brands"). We also own a 50% joint venture interest in the German brand TUI Cruises, a 49% interest in the Spanish brand Pullmantur and a 36% interest in the Chinese brand SkySea Cruises (collectively, our "Partner Brands"). We account for our investments in our Partner Brands under the equity method of accounting. In March 2018, we and Ctrip.com International Ltd. ("Ctrip") announced the decision to end the Skysea Holding International Ltd. ("Skysea Holding") venture. Skysea Holding expects to cease business operations by the end of 2018. The Golden Era , the ship operated by SkySea Cruises and owned by a wholly owned subsidiary of Skysea Holding, is expected to be sold to an affiliate of TUI AG, our joint venture partner in TUI Cruises, and is expected to be delivered in December 2018. Refer to Note 5. Other Assets for further information regarding our investment in SkySea Holding. Basis for Preparation of Consolidated Financial Statements The unaudited consolidated financial statements are presented pursuant to the rules and regulations of the Securities and Exchange Commission. In our opinion, these statements include all adjustments necessary for a fair statement of the results of the interim periods reported herein. Adjustments consist only of normal recurring items, except for any discussed in the notes below. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted as permitted by such rules and regulations. Estimates are required for the preparation of financial statements in accordance with GAAP and actual results could differ from these estimates. Refer to Note 2. Summary of Significant Accounting Policies in this Quarterly Report on Form 10-Q and in our Annual Report on Form 10-K for the year ended December 31, 2017 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. Refer to Note 5. 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Adoption of Accounting Pronouncements On January 1, 2018, we adopted the guidance in Accounting Standard Codification 606 ("ASC 606"), Revenue from Contracts with Customers , and applied the guidance to all contracts using the modified retrospective method. The new standard converged wide-ranging revenue recognition concepts and requirements that lead to diversity in application for particular industries and transactions into a single revenue standard containing comprehensive principles for recognizing revenue. The cumulative effect of applying the newly issued guidance was not material and accordingly there was no adjustment made to our retained earnings upon adoption on January 1, 2018. We do not expect the newly issued guidance to have a material impact on our consolidated financial statements on an ongoing basis. The comparative information presented has not been restated and continues to be reported under the accounting standards in effect for those periods; however, due to the adoption of ASC 606, we currently present prepaid commissions as an asset within Prepaid expenses and other assets. Prior to adoption, prepaid commissions were netted against our customer deposits in our consolidated balance sheets. In order to conform to current year presentation, as of December 31, 2017, we have reclassified prepaid commissions of $64.6 million from Customer deposits to Prepaid expenses and other assets in our consolidated balance sheets . Refer to Note 3. Revenues for disclosures with respect to our revenue recognition policies. On January 1, 2018, we adopted the guidance in Accounting Standard Update ("ASU") 2016-16, Income Taxes 740: Intra-Entity Transfers of Assets Other Than Inventory , w hich requires the income tax consequences of an intra-entity transfer of an asset, other than inventory, to be recognized at the time that the transfer occurs, rather than when the asset is sold to an outside party. We adopted the standard using the modified retrospective method and recorded a cumulative-effect adjustment to reduce retained earnings as of January 1, 2018 by $6.6 million , which reflects the elimination of the deferred tax asset related to intercompany asset transfers. On January 1, 2018, we adopted the guidance in ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities , that was issued to simplify and align the financial reporting of hedging relationships to the economic results of an entity’s risk management activities. We adopted the amended guidance using the modified retrospective approach. Adoption of the guidance allowed us to modify the designated risk in our fair value interest rate hedges to the benchmark interest rate component, resulting in changes to the cumulative and ongoing fair value measurement for the hedged debt. Upon adoption, we also elected to hedge the contractually specified components of our commodities purchase contracts. For our cash flow hedges, there will be no periodic measurement or recognition of ineffectiveness. For all hedges, the earnings effect of the hedging instrument will be reported in the same period and in the same income statement line item in which the earnings effect of the hedged item is reported. As a result of the adoption of this guidance, we recorded a cumulative-effect adjustment to reduce retained earnings as of January 1, 2018 by $16.9 million . The cumulative-effect adjustment includes an increase to the debt carrying value of $14.4 million for our fair value interest rate hedges as of January 1, 2018, which reflects the cumulative fair value measurement change to debt at adoption resulting from the modified designated risk. The cumulative-effect adjustment also includes an increase to other comprehensive income of $2.5 million , which represents an increase to the deferred gain on active cash flow hedges at adoption. Additionally, the new standard requires modifications to existing presentation and disclosure requirements on a prospective basis. As such, certain disclosures for the quarter ended March 31, 2018 conform to these disclosure requirements. Refer to Note 9. Changes in Accumulated Other Comprehensive Income (Loss) and Note 10. Fair Value Measurements and Derivative Instruments for additional information. Recent Accounting Pronouncements Leases In February 2016, amended GAAP guidance was issued to increase the transparency and comparability of lease accounting among organizations. For leases with a term greater than 12 months, the amendments require the lease rights and obligations arising from the leasing arrangements, including operating leases, to be recognized as assets and liabilities on the balance sheet. The amendments also expand the required disclosures surrounding leasing arrangements. The guidance must be applied using a retrospective application method and will be effective for financial statements issued for fiscal years beginning after December 15, 2018 and interim periods within those years. Early adoption is permitted. We are currently evaluating the impact of the adoption of this newly issued guidance to our consolidated financial statements. Change in Accounting Principle - Stock-based Compensation In January 2018, we elected to change our accounting policy for recognizing stock-based compensation expense from the graded attribution method to the straight-line attribution method for time-based stock awards. The adoption of the straight-line attribution method for time-based stock awards represents a change in accounting principle which we believe to be preferable because it is the predominant method used in our industry. A change in accounting principle requires retrospective application, if material. The impact of the adoption of the straight-line attribution method to our time-based awards was immaterial to prior periods and is expected to be immaterial for our fiscal year ended December 31, 2018. As a result, we have accounted for this change in accounting principle in our consolidated results for the first quarter of 2018. The effect of this change was an increase to net income of $9.2 million , or $0.04 per share for basic and diluted earnings per share, and is reported within Marketing, selling and administrative expenses in our consolidated statements of comprehensive income (loss) for the quarter ended March 31, 2018. |
Revenues
Revenues | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenues Revenue Recognition Revenues are measured based on consideration specified in our contracts with customers and are recognized as the related performance obligations are satisfied. The majority of our revenues are derived from passenger cruise contracts which are reported within Passenger ticket revenues in our Consolidated Statements of Comprehensive Income (Loss). Our performance obligation under these contracts is to provide a cruise vacation in exchange for the ticket price. We satisfy this performance obligation and recognize revenue over the duration of each cruise, which range from two to 23 nights. Passenger ticket revenues include charges to our guests for port costs that vary with passenger head counts. These type of port costs, along with port costs that do not vary by passenger head counts, are included in our operating expenses. The amounts of port costs charged to our guests and included within Passenger ticket revenues on a gross basis were $136.7 million and $134.5 million for the first quarter of 2018 and 2017, respectively. Our total revenues also include onboard and other revenues, which consist primarily of revenues from the sale of goods and services onboard our ships that are not included in passenger ticket prices. We receive payment before or concurrently with the transfer of these goods and services to passengers during a cruise and recognize revenue at the time of transfer over the duration of the related cruise. As a practical expedient, we have omitted disclosures on our remaining performance obligations as the duration of our contracts with customers is less than a year. Disaggregated Revenues The following table disaggregates our total revenues by geographic regions where we provide cruise itineraries (in thousands): Quarter Ended March 31, 2018 2017 Total revenues by itinerary North America (1) $ 1,347,260 $ 1,352,169 Asia/Pacific (2) 532,979 525,856 Europe (3) — — Other regions 77,185 65,232 Total revenues by itinerary 1,957,424 1,943,257 Other revenues (4) 70,332 65,303 Total revenues $ 2,027,756 $ 2,008,560 (1) Includes the United States, Canada, Mexico and the Caribbean. (2) Includes Southeast Asia (e.g., Singapore, Thailand and the Philippines), East Asia (e.g., China and Japan), South Asia (e.g., India and Pakistan) and Oceania (e.g., Australia and Fiji Islands) regions. (3) Includes European countries (e.g., Nordics, Germany, France, Italy, Spain and the United Kingdom). During the quarters ended March 31, 2018 and 2017, there were no cruise itineraries in Europe. (4) Includes revenues of $47.4 million and $42.6 million for the quarter ended March 31 2018 and 2017, respectively, related to cancellation fees, sales of vacation protection insurance and pre- and post-cruise tours and revenues of $23.0 million and $21.8 million for the quarter ended March 31 2018 and 2017, respectively, primarily related to our bareboat charter, procurement and management related services we perform on behalf of our unconsolidated affiliates. Passenger ticket revenues are attributed to geographic areas based on where the reservation originates. For the quarter ended March 31, 2018 and March 31, 2017, our guests were sourced from the following areas: Quarter Ended March 31, 2018 2017 Passenger ticket revenues: United States 60 % 60 % Australia 13 % 12 % All other countries (1) 27 % 28 % (1) No other individual country's revenue exceeded 10% for the quarter ended March 31, 2018 and 2017, respectively. Customer Deposits and Contract Liabilities Our payment terms generally require an upfront deposit to confirm a reservation, with the balance due prior to the cruise. Deposits received on sales of passenger cruises are initially recorded as Customer deposits in our consolidated balance sheets and subsequently recognized as passenger ticket revenues during the duration of the cruise. ASC 606 defines a “contract liability” as an entity’s obligation to transfer goods or services to a customer for which the entity has received consideration from the customer. We do not consider customer deposits to be a contract liability until the customer no longer retains the unilateral right, resulting from the passage of time, to cancel such customer's reservation and receive a full refund. Customer deposits presented in our consolidated balance sheets include contract liabilities of $1.8 billion and $1.4 billion as of March 31, 2018 and December 31, 2017, respectively. During the quarter ended March 31, 2018, we recognized revenues related to our contract liabilities as of December 31, 2017 of $1.3 billion . Contract Receivables and Contract Assets Although we generally require full payment from our customers prior to their cruise, we grant credit terms to a relatively small portion of our revenue source in select markets outside of the United States. As a result, we have outstanding receivables from passenger cruise contracts in those markets. We also have receivables from credit card merchants for cruise ticket purchases and goods and services sold to guests during cruises that are collected before, during or shortly after the cruise voyage. In addition, we have receivables due from concessionaires onboard our vessels. These receivables are included within Trade and other receivables, net in our consolidated balance sheets. We have contract assets that are conditional rights to consideration for satisfying the construction services performance obligations under a service concession arrangement. As of March 31, 2018 and December 31, 2017, our contract assets were $59.5 million and $60.1 million , respectively, and were included within Other assets in our consolidated balance sheets. Given the short duration of our cruises and our collection terms, we do not have any other significant contract assets. Assets Recognized from the Costs to Obtain a Contract with a Customer Prepaid travel agent commissions are an incremental cost of obtaining contracts with customers that we recognize as an asset and include within Prepaid expenses and other assets in our consolidated balance sheets. Prepaid travel agent commissions increased to $80.2 million at March 31, 2018 from $64.6 million at December 31, 2017 because of increased bookings in the first quarter of 2018. Primarily all of our prepaid travel agent commissions at December 31, 2017 were expensed and reported within Commissions, transportation and other in our consolidated statements of comprehensive income (loss) for the quarter ended March 31, 2018. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2018 | |
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): Quarter Ended March 31, 2018 2017 Net income for basic and diluted earnings per share $ 218,653 $ 214,726 Weighted-average common shares outstanding 212,610 214,870 Dilutive effect of stock-based awards and stock options 992 943 Diluted weighted-average shares outstanding 213,602 215,813 Basic earnings per share $ 1.03 $ 1.00 Diluted earnings per share $ 1.02 $ 0.99 There were no antidilutive shares for the quarters ended March 31, 2018 and March 31, 2017 . |
Other Assets
Other Assets | 3 Months Ended |
Mar. 31, 2018 | |
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 TUI Cruises GmbH, our 50% -owned joint venture, which operates the brand TUI Cruises, is a VIE. As of March 31, 2018 , the net book value of our investment in TUI Cruises was approximately $627.5 million , primarily consisting of $425.4 million in equity and a loan of €162.5 million , or approximately $199.9 million based on the exchange rate at March 31, 2018. As of December 31, 2017 , the net book value of our investment in TUI Cruises was approximately $624.5 million , primarily consisting of $422.8 million in equity and a loan of €166.5 million , or approximately $199.8 million based on the exchange rate at December 31, 2017. The loan, which was made in connection with the sale of Splendour of the Seas in April 2016, accrues interest at a rate of 6.25% per annum and is payable over 10 years . This loan is 50% guaranteed by TUI AG, our joint venture partner in TUI Cruises, and is secured by a first priority mortgage on the ship. The majority of these amounts were included within Other assets in our consolidated balance sheets. In addition, we and TUI AG have each guaranteed the repayment by TUI Cruises of 50% of a bank loan. As of March 31, 2018 , the outstanding principal amount of the loan was €89.1 million , or approximately $109.6 million based on the exchange rate at March 31, 2018 . The loan amortizes quarterly and is secured by first mortgages on the Mein Schiff 1 and Mein Schiff 2 vessels. In April 2018, Mein Schiff 1 was sold to an affiliate of TUI AG. The proceeds were used to repay €44.2 million of the bank loan and secure the release of the first mortgage on Mein Schiff 1 . Based on current facts and circumstances, we do not believe potential obligations under our guarantee of this bank loan are probable. Our investment amount, outstanding term loan an d the potential obligations under the bank loan guarantee are subs tantially our maximum exposure to loss in connection with our investment in TUI Cruises. 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. TUI Cruises has two newbuild ships on order scheduled to be delivered in each of 2018 and 2019. TUI Cruises has in place agreements for the secured financing of each of the ships on order for up to 80% of the contract price. The remaining portion of the contract price of the ships is expected to be funded through an existing €150.0 million , or approximately $184.5 million based on the exchange rate at March 31, 2018 , bank facility and TUI Cruises’ cash flows from operations. The various ship construction and financing agreements include certain restrictions on each of our and TUI AG’s ability to reduce our current ownership interest in TUI Cruises below 37.55% through 2021. We have determined that Pullmantur Holdings S.L. ("Pullmantur Holdings"), in which we have a 49% noncontrolling interest, is a VIE for which 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 and we account for this investment under the equity method of accounting. As of March 31, 2018 , our maximum exposure to loss in Pullmantur Holdings was approximately $54.6 million consisting of loans and other receivables. As of December 31, 2017 , our maximum exposure to loss in Pullmantur Holdings was approximately $53.7 million consisting of loans and other receivables. These amounts were included within Trade and other receivables, net and Other assets in our consolidated balance sheets. We have provided a non-revolving working capital facility to a Pullmantur Holdings subsidiary in the amount of up to €15.0 million or approximately $18.5 million based on the exchange rate at March 31, 2018 . Proceeds of the facility, which may be drawn through July 2018, will bear interest at the rate of 6.5% per annum and are payable through 2022. Springwater Capital LLC, 51% owner of Pullmantur Holdings, has guaranteed repayment of 51% of the outstanding amounts under the facility. As of March 31, 2018 , no amounts had been drawn on this facility. 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. This 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. During the quarter ended March 31, 2018 and March 31, 2017, we made payments of $22.3 million and $1.7 million to Grand Bahama for ship repair and maintenance services. 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 March 31, 2018 , the net book value of our investment in Grand Bahama was approximately $55.6 million , consisting of $38.7 million in equity and a loan of $16.9 million . As of December 31, 2017 , the net book value of our investment in Grand Bahama was approximately $49.4 million , consisting of $32.4 million in equity and a loan of $17.0 million . These amounts represent our maximum exposure to loss related to our investment in Grand Bahama. Our loan with Grand Bahama matures on March 2025 and bears interest at the lower of (i) LIBOR plus 3.50% and (ii) 5.5% . Interest payable on the loan is due on a semi-annual basis. We have experienced strong payment performance on the loan since its amendment in 2016, and as a result completed an evaluation and review of the loan resulting in a reclassification of the loan to accrual status as of October 2017. During the quarter ended March 31, 2018 , we received principal and interest payments of approximately $3.0 million . During the quarter ended March 31, 2017, we received principal payments of approximately $0.3 million . The loan balance is included within Other assets in our consolidated balance sheets. The loan is currently accruing interest under the effective yield method, which includes the recognition of previously unrecognized interest that accumulated while the loan was in non-accrual status. We monitor credit risk associated with the loan 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 the outstanding loan is not probable as of March 31, 2018 . We have determined that Skysea Holding International Ltd. ("Skysea Holding"), in which we currently have a 36% noncontrolling interest, is a VIE for which 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 and we account for this investment under the equity method of accounting. In December 2014, we and Ctrip, which also owns 36% of Skysea Holding, each provided a debt facility to a wholly owned subsidiary of Skysea Holding in the amount of $80.0 million , with an applicable interest rate of 6.5% per annum, which originally matured in January 2030. The facilities, which are pari passu to each other, are each 100% guaranteed by Skysea Holding and are secured by first priority mortgages on the ship, Golden Era. Due to payment performance, the loans were classified to non-accrual status in 2017. In March 2018, the Skysea Holding's board of directors agreed to exit the business given increasing challenges faced by the brand. We expect Skysea Holding will cease business operations by the end of 2018. In connection with the decision to dissolve the brand, SkySea Holding has agreed to sell the Golden Era to an affiliate of TUI AG, our joint venture partner in TUI Cruises. We review our equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amount of the investment may not be recoverable. Given SkySea Holding’s planned dissolution and sale of Golden Era, we reviewed the recoverability of our investment, debt facility and other receivables due from the brand. As a result of this analysis, we determined that our investment in SkySea Holding and the carrying value of our debt facility and other receivables due from the brand were impaired as of March 31, 2018 and recognized an impairment charge of $23.3 million . This impairment charge was recognized in Impairment loss related to Skysea Holding within our consolidated statements of comprehensive income (loss) for the quarter ended March 31, 2018. The charge reflects a full impairment of our investment in SkySea Holding and other receivables due to us and reduces the debt facility and the related accrued interest due to us from SkySea Holding to its net realizable value. Refer to Note 10. Fair Value Measurements and Derivative Instruments for further information on the fair value calculation of the debt facility. As of March 31, 2018 , the net book value of our investment in Skysea Holding and its subsidiaries was approximately $69.6 million , consisting of the remaining balance of the $80.0 million debt facility and its related accrued interest. Due to the expected sale of Golden Era in December of 2018, the amount was included within Trade and other receivables, net and represents our maximum exposure to loss related to our investment in Skysea Holding as of March 31, 2018. As of December 31, 2017 , the net book value of our investment in Skysea Holding and its subsidiaries was approximately $96.0 million , which consisted of $4.4 million in equity and loans and other receivables of $91.6 million . The majority of these amounts were included within Other assets in our consolidated balance sheets and represented our maximum exposure to loss related to our investment in Skysea Holding as of December 31, 2017. The following tables set forth information regarding our investments accounted for under the equity method of accounting, including the entities discussed above (in thousands): Quarter Ended March 31, 2018 Quarter Ended March 31, 2017 Share of equity income from investments $ 28,752 $ 11,880 Dividends received $ 37,918 $ 27,997 As of March 31, 2018 As of December 31, 2017 Total notes receivable due from equity investments $ 291,116 $ 314,323 Less-current portion (1) 95,865 38,658 Long-term portion (2) $ 195,251 $ 275,665 (1) Included within Trade and other receivables, net in our consolidated balance sheets. (2) Included within Other assets in our consolidated balance sheets. We also provide ship management services to TUI Cruises GmbH, Pullmantur Holdings and Skysea Holding. Additionally, we bareboat charter to Pullmantur Holdings the vessels currently operated by its brands, which were retained by us following the sale of our 51% interest in Pullmantur Holdings. We recorded the following as it relates to these services in our operating results within our consolidated statements of comprehensive income (loss) (in thousands): Quarter Ended March 31, 2018 Quarter Ended March 31, 2017 Revenues $ 14,073 $ 12,615 Expenses $ 3,638 $ 3,713 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt In March 2018, we took delivery of Symphony of the Seas . We had previously entered into a financing arrangement for the United States dollar financing of this ship in January 2015. Through the financing arrangement, we had the right, but not the obligation, to satisfy the obligations to be incurred upon delivery and acceptance of the vessel under the shipbuilding contract by assuming through a novation agreement, at delivery and acceptance, the debt indirectly incurred by the shipbuilder during the construction of the ship. We borrowed a total of $1.2 billion under our previously committed unsecured term loan, which includes the execution of the novation to satisfy a portion of our final obligation under our shipbuilding agreement. The loan amortizes semi-annually over 12 years and bears interest at a fixed rate of 3.82% . In our consolidated statement of cash flows for the quarter ended March 31, 2018, the acceptance of the ship and satisfaction of our obligation under the shipbuilding contract was classified as an outflow and constructive disbursement within Investing Activities while the amounts novated and effectively advanced from our lender under our previously committed unsecured term loan were classified as an inflow and constructive receipt within Financing Activities . In March 2018, we entered into and drew in full on a credit agreement in the amount of $130.0 million due January 2023. The loan accrues interest at a floating rate of LIBOR plus an applicable margin. The applicable margin varies with our debt rating and was 1.32% as of March 31, 2018. Amounts from the issuance of this loan were used for capital expenditures. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Ship Purchase Obligations Our future capital commitments consist primarily of new ship orders. As of March 31, 2018 , we had two Quantum-class ships, one Oasis-class ship and two ships of a new generation of ships, known as our Icon-class, on order for our Royal Caribbean International brand with an aggregate capacity of approximately 25,250 berths. Additionally, as of March 31, 2018 , we have four ships of a new generation of ships, known as our Edge-class, and a ship designed for the Galapagos Islands on order for our Celebrity Cruises brand with an aggregate capacity of approximately 12,200 berths. As of March 31, 2018 , the aggregate cost of our ships on order, not including any ships on order by our Partner Brands, was approximately $11.7 billion , of which we had deposited $419.0 million as of such date. Approximately 55.9% of the aggregate cost was exposed to fluctuations in the Euro exchange rate at March 31, 2018 . Refer to Note 10. Fair Value Measurements and Derivative Instruments for further information. Litigation We are routinely involved in 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. Other In July 2016, we executed an agreement with Miami Dade County (“MDC”), which was simultaneously assigned to Sumitomo Banking Corporation (“SMBC”), to lease land from MDC and construct a new cruise terminal at PortMiami in Miami, Florida. The terminal is expected to be approximately 170,000 square feet and will serve as a homeport. During the construction period, SMBC will fund the costs of the terminal’s construction and land lease. Upon completion of the terminal's construction, we will operate and lease the terminal from SMBC for a five -year term. We determined that the lease arrangement between SMBC and us should be accounted for as an operating lease upon completion of the terminal. If any person acquires ownership of more than 50% of our common stock or, 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 our credit facilities, which we may be unable to replace on similar terms. Our public debt securities also contain change of control provisions that would be triggered by a third-party acquisition of greater than 50% of our common stock coupled with a ratings downgrade. If this were to occur, it would have an adverse impact on our liquidity and operations. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity During the first quarter of 2018 , we declared a cash dividend on our common stock of $0.60 per share which was paid in April 2018 . During the first quarter of 2018, we also paid a cash dividend on our common stock of $0.60 per share which was declared during the fourth quarter of 2017. During the first quarter of 2017, we declared a cash dividend on our common stock of $0.48 per share which was paid in April 2017. During the first quarter of 2017, we also paid a cash dividend on our common stock of $0.48 per share which was declared during the fourth quarter of 2016. In April 2017, our board of directors authorized a 12-month common stock repurchase program for up to $500.0 million that was completed in February 2018. During the first quarter of 2018, we repurchased 2.1 million shares of our common stock for a total of $275.0 million in open market transactions that were recorded within Treasury stock in our consolidated balance sheet. Our repurchases under this program, including the 1.8 million shares repurchased for $225.0 million during 2017, totaled $500.0 million . |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2018 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [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 quarters ended March 31, 2018 and 2017 (in thousands): Accumulated Other Comprehensive Income (Loss) for the Quarter Ended March 31, 2018 Accumulated Other Comprehensive Income (Loss) for the Quarter Ended March 31, 2017 Changes Changes in Foreign Accumulated other Changes Changes in Foreign Accumulated other Accumulated comprehensive loss at beginning of the year $ (250,355 ) $ (33,666 ) $ (50,244 ) $ (334,265 ) $ (820,850 ) $ (28,083 ) $ (67,551 ) $ (916,484 ) Other comprehensive income (loss) before reclassifications 127,616 7,417 1,160 136,193 (30,929 ) (904 ) 2,342 (29,491 ) Amounts reclassified from accumulated other comprehensive loss 14,914 343 — 15,257 53,390 263 — 53,653 Net current-period other comprehensive income (loss) 142,530 7,760 1,160 151,450 22,461 (641 ) 2,342 24,162 Ending balance $ (107,825 ) $ (25,906 ) $ (49,084 ) $ (182,815 ) $ (798,389 ) $ (28,724 ) $ (65,209 ) $ (892,322 ) The following table presents reclassifications out of accumulated other comprehensive income (loss) for the quarters ended March 31, 2018 and 2017 (in thousands): Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income Details About Accumulated Other Comprehensive Income (Loss) Components Quarter Ended March 31, 2018 Quarter Ended March 31, 2017 Affected Line Item in Statements of Loss on cash flow derivative hedges: Interest rate swaps $ (6,838 ) $ (8,857 ) Interest expense, net of interest capitalized Foreign currency forward contracts (3,312 ) (2,710 ) Depreciation and amortization expenses Foreign currency forward contracts 42 (3,570 ) Other expense Foreign currency collar options — (602 ) Depreciation and amortization expenses Fuel swaps 325 2,277 Other expense Fuel swaps (5,131 ) (39,928 ) Fuel (14,914 ) (53,390 ) Amortization of defined benefit plans: Actuarial loss (343 ) (263 ) Payroll and related (343 ) (263 ) Total reclassifications for the period $ (15,257 ) $ (53,653 ) |
Fair Value Measurements and Der
Fair Value Measurements and Derivative Instruments | 3 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018 Using Fair Value Measurements at December 31, 2017 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) $ 111,245 $ 111,245 $ 111,245 $ — $ — $ 120,112 $ 120,112 $ 120,112 $ — $ — Total Assets $ 111,245 $ 111,245 $ 111,245 $ — $ — $ 120,112 $ 120,112 $ 120,112 $ — $ — Liabilities: Long-term debt (including current portion of long-term debt) (5) $ 8,762,052 $ 9,333,745 $ — $ 9,333,745 $ — $ 7,506,312 $ 8,038,092 $ — $ 8,038,092 $ — Total Liabilities $ 8,762,052 $ 9,333,745 $ — $ 9,333,745 $ — $ 7,506,312 $ 8,038,092 $ — $ 8,038,092 $ — (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 March 31, 2018 and December 31, 2017 . (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. This 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 March 31, 2018 and December 31, 2017 . 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 March 31, 2018 Using Fair Value Measurements at December 31, 2017 Using Description Total Level 1 (1) Level 2 (2) Level 3 (3) Total Level 1 (1) Level 2 (2) Level 3 (3) Assets: Derivative financial instruments (4) $ 391,116 $ — $ 391,116 $ — $ 320,385 $ — $ 320,385 $ — Investments (5) $ 5 5 — — $ 3,340 3,340 — — Total Assets $ 391,121 $ 5 $ 391,116 $ — $ 323,725 $ 3,340 $ 320,385 $ — Liabilities: Derivative financial instruments (6) $ 118,117 $ — $ 118,117 $ — $ 115,961 $ — $ 115,961 $ — Total Liabilities $ 118,117 $ — $ 118,117 $ — $ 115,961 $ — $ 115,961 $ — (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 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. 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 March 31, 2018 and December 31, 2017 . (4) Consists of foreign currency forward contracts, 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 reported within Other assets in our consolidated balance sheets. (6) Consists of foreign currency forward contracts, interest rate swaps and fuel swaps. 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 March 31, 2018 or December 31, 2017 , 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 fair value of our equity method investment and note and other receivables due related to SkySea Holding, further discussed in Note 5. Other Assets, recorded at fair value on a nonrecurring basis (in thousands): Fair Value Measurements at March 31, 2018 Using Description Total Carrying Amount Total Fair Value Level 3 Total Impairment Equity-method investment- SkySea Holding (1) $ — $ — $ — $ 509 Debt facility and other receivables due from Skysea Holding (2) $ 69,562 $ 69,562 $ 69,562 $ 22,834 Total $ 69,562 $ 69,562 $ 69,562 $ 23,343 (1) Due to the expectation that Skysea Holding will cease business operations by the end of 2018, we do not deem our investment balance to be recoverable and therefore, we estimated the fair value of our investment to be zero as of March 31, 2018. (2) We estimated the fair value of our debt facility and other receivables due from Skysea Holding based on the fair value of the collateral of the debt facility, Skysea Holding's ship, Golden Era. During the quarter ended March 31, 2018, Skysea Holding agreed to sell Golden Era to an affiliate of TUI AG, our joint venture partner in TUI Cruises. The fair value of the ship represents the net realizable value based on the agreed upon sale price of the ship. The sale of the ship is expected to be completed in December 2018. For further information on the Skysea Holding impairment, refer to Note 5. Other Assets . 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. 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 March 31, 2018 As of December 31, 2017 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 (In thousands) Derivatives subject to master netting agreements $ 391,116 $ (110,989 ) $ — $ 280,127 $ 320,385 $ (104,751 ) $ — $ 215,634 Total $ 391,116 $ (110,989 ) $ — $ 280,127 $ 320,385 $ (104,751 ) $ — $ 215,634 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 March 31, 2018 As of December 31, 2017 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 (In thousands) Derivatives subject to master netting agreements $ (118,117 ) $ 110,989 $ — $ (7,128 ) $ (115,961 ) $ 104,751 $ — $ (11,210 ) Total $ (118,117 ) $ 110,989 $ — $ (7,128 ) $ (115,961 ) $ 104,751 $ — $ (11,210 ) 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 March 31, 2018 and December 31, 2017 , we had counterparty credit risk exposure under our derivative instruments of approximately $273.4 million and $212.8 million , respectively, which were limited to the cost of replacing the contracts in the event of non-performance by the counterparties to the contracts, the majority 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. Derivative Instruments We are exposed to market risk attributable to changes in interest rates, foreign currency exchange rates and fuel prices. We try to mitigate 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 notional 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, our objective is not to hold or issue derivative financial instruments for trading or other speculative purposes. 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 use 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 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 along with the associated foreign currency translation adjustment of the foreign operation or investment, with the amortization of excluded components affecting earnings. 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. 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. 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 March 31, 2018 and December 31, 2017 , approximately 60.9% and 57.4% , respectively, of our long-term debt was effectively fixed. 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 March 31, 2018 and December 31, 2017 , we maintained interest rate swap agreements on the following fixed-rate debt instruments: Debt Instrument Swap Notional as of March 31, 2018 (In thousands) Maturity Debt Fixed Rate Swap Floating Rate: LIBOR plus All-in Swap Floating Rate as of March 31, 2018 Oasis of the Seas term loan $ 140,000 October 2021 5.41% 3.87% 5.44% Unsecured senior notes 650,000 November 2022 5.25% 3.63% 5.47% $ 790,000 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 March 31, 2018 and December 31, 2017 , we maintained interest rate swap agreements on the following floating-rate debt instruments: Debt Instrument Swap Notional as of March 31, 2018 (In thousands) Maturity Debt Floating Rate All-in Swap Fixed Rate Celebrity Reflection term loan $ 381,792 October 2024 LIBOR plus 0.40% 2.85% Quantum of the Seas term loan 551,250 October 2026 LIBOR plus 1.30% 3.74% Anthem of the Seas term loan 573,958 April 2027 LIBOR plus 1.30% 3.86% Ovation of the Seas term loan 726,250 April 2028 LIBOR plus 1.00% 3.16% Harmony of the Seas term loan (1) 746,332 May 2028 EURIBOR plus 1.15% 2.26% $ 2,979,582 (1) Interest rate swap agreements hedging the Euro-denominated term loan for Harmony of the Seas include EURIBOR zero-floor matching the hedged debt EURIBOR zero-floor. Amount presented is based on the exchange rate as of March 31, 2018 . These interest rate swap agreements are accounted for as cash flow hedges. The notional amount of interest rate swap agreements related to outstanding debt as of March 31, 2018 and December 31, 2017 was $3.8 billion . 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, to manage portions of the exposure to movements in foreign currency exchange rates. As of March 31, 2018 , the aggregate cost of our ships on order, not including any ships on order by our Partner Brands, was approximately $11.7 billion , of which we had deposited $419.0 million as of such date. At March 31, 2018 and December 31, 2017 , approximately 55.9% and 54.0% , respectively, of the aggregate cost of the ships under construction was exposed to fluctuations in the Euro exchange rate. 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. 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 the first quarter of 2018 , we maintained an average of approximately $770.5 million of these foreign currency forward contracts. These instruments are not designated as hedging instruments. Changes in the fair value of the foreign currency forward contracts resulted in a gain, of approximately $5.6 million and $13.8 million during the quarters ended March 31, 2018 and March 31, 2017 , respectively, that were recognized in earnings within Other 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. As of March 31, 2018 , we maintained foreign currency forward contracts and designated them as hedges of a portion of our net investments primarily in TUI cruises of €101.0 million , or approximately $124.2 million based on the exchange rate at March 31, 2018 . These forward currency contracts mature in October 2021. The notional amount of outstanding foreign exchange contracts including our forward contracts as of March 31, 2018 and December 31, 2017 was $4.0 billion and $4.6 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 had designated debt as a hedge of our net investments primarily in TUI Cruises of approximately €301.0 million , or approximately $370.6 million , as of March 31, 2018 . As of December 31, 2017 , we had designated debt as a hedge of our net investments in TUI Cruises of approximately €246.0 million , or approximately $295.3 million . 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 to mitigate the financial impact of fluctuations in fuel prices. Our fuel swap agreements are accounted for as cash flow hedges. At March 31, 2018 , we have hedged the variability in future cash flows for certain forecasted fuel transactions occurring through 2022 . As of March 31, 2018 and December 31, 2017 , we had the following outstanding fuel swap agreements: Fuel Swap Agreements As of March 31, 2018 As of December 31, 2017 (metric tons) 2018 512,800 673,700 2019 668,500 668,500 2020 531,200 531,200 2021 224,900 224,900 2022 — — Fuel Swap Agreements As of March 31, 2018 As of December 31, 2017 (% hedged) Projected fuel purchases: 2018 50 % 50 % 2019 47 % 46 % 2020 36 % 36 % 2021 14 % 14 % 2022 — — At March 31, 2018 and December 31, 2017 , $19.7 million and $23.7 million , respectively, of estimated unrealized net loss associated with our cash flow hedges pertaining to fuel swap agreements were expected to be reclassified to earnings from Accumulated other comprehensive loss 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 Location As of March 31, 2018 As of December 31, 2017 Balance Sheet Location As of March 31, 2018 As of December 31, 2017 Fair Value Fair Value Fair Value Fair Value (In thousands) Derivatives designated as hedging instruments under ASC 815-20 (1) Interest rate swaps Other assets $ 38,096 $ 7,330 Other long-term liabilities $ 47,251 $ 46,509 Foreign currency forward contracts Derivative financial instruments 42,688 68,352 Derivative financial instruments 1,390 — Foreign currency forward contracts Other assets 235,802 158,879 Other long-term liabilities 12,426 6,625 Fuel swaps Derivative financial instruments 22,061 13,137 Derivative financial instruments 31,235 38,488 Fuel swaps Other assets 38,562 51,265 Other long-term liabilities 15,180 13,411 Total derivatives designated as hedging instruments under 815-20 377,209 298,963 107,482 105,033 Derivatives not designated as hedging instruments under ASC 815-20 Foreign currency forward contracts Derivative financial instruments $ 4,361 $ 9,945 Derivative financial instruments $ 2,369 $ 2,933 Foreign currency forward contracts Other assets 4,413 2,793 Other long-term liabilities 2,762 1,139 Fuel swaps Derivative financial instruments 4,830 7,886 Derivative financial instruments 5,320 6,043 Fuel swaps Other Assets 303 798 Other long-term liabilities 184 813 Total derivatives not designated as hedging instruments under 815-20 13,907 21,422 10,635 10,928 Total derivatives $ 391,116 $ 320,385 $ 118,117 $ 115,961 (1) Accounting Standard Codification 815-20 “ Derivatives and Hedging.” The location and amount of gain or (loss) recognized in income on fair value and cash flow hedging relationships were as follows (in thousands): Quarter Ended March 31, 2018 Quarter Ended March 31, 2017 Fuel Expense Depreciation and Amortization Expenses Interest Income (Expense) Other Income (Expense) Fuel Expense Depreciation and Amortization Expenses Interest Income (Expense) Other Income (Expense) Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded 160,341 240,230 (60,145) (757 ) 177,414 235,749 (74,065) (2,611 ) The effects of fair value and cash flow hedging: Gain or (loss) on fair value hedging relationships in Subtopic 815-20 Interest contracts Hedged items n/a n/a 13,182 n/a n/a n/a n/a 2,457 Derivatives designated as hedging instruments n/a n/a (12,570) n/a n/a n/a 1,173 (1,531 ) Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 Interest contracts Amount of gain or (loss) reclassified from accumulated other comprehensive income into income n/a n/a (6,838) n/a n/a n/a (8,857) n/a Amount of gain or (loss) reclassified from accumulated other comprehensive income into income as a result that a forecasted transaction is no longer probable of occurring n/a n/a n/a n/a n/a n/a n/a n/a Commodity contracts Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income (5,131) n/a n/a 325 (39,928) n/a n/a 2,277 Amount excluded from effectiveness testing recognized in earnings based on changes in fair value n/a n/a n/a n/a n/a n/a n/a n/a Foreign exchange contracts Amount of gain or (loss) reclassified from accumulated other comprehensive income into income n/a (3,312) n/a 42 n/a (3,312) n/a (3,570 ) Amount excluded from effectiveness testing recognized in earnings based on changes in fair value n/a n/a n/a n/a n/a n/a n/a n/a 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 March 31, 2018 As of December 31, 2017 (In thousands) Foreign currency debt Current portion of long-term debt $ 88,353 $ 70,097 Foreign currency debt Long-term debt 281,907 225,226 $ 370,260 $ 295,323 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: Derivatives and Related Hedged Items under ASC 815-20 Fair Value Hedging Relationships Location of Gain (Loss) Recognized in Income on Derivative and Hedged Item Amount of Gain (Loss) Amount of Gain (Loss) Quarter Ended March 31, 2018 Quarter Ended March 31, 2017 Quarter Ended March 31, 2018 Quarter Ended March 31, 2017 (In thousands) Interest rate swaps Interest expense, net of interest capitalized $ (12,570 ) $ 1,173 $ 13,182 $ — Interest rate swaps Other expense — (1,531 ) — 2,457 $ (12,570 ) $ (358 ) $ 13,182 $ 2,457 The fair value and line item caption of derivative instruments recorded within our consolidated balance sheets for the cumulative basis adjustment for fair value hedges were as follows (in thousands): Line Item in the Statement of Financial PositionWhere the Hedged Item is Included Carrying Amount of the Hedged Assets/(Liabilities) Cumulative amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) As of March 31, 2018 As of December 31, 2017 As of March 31, 2018 As of December 31, 2017 Current portion of long-term debt and Long-term debt $ 751,014 $ 749,155 $ (33,274 ) $ (34,813 ) $ 751,014 $ 749,155 $ (33,274 ) $ (34,813 ) The effect of derivative instruments qualifying and designated as cash flow hedging instruments on the consolidated financial statements was as follows: Derivatives Amount of Gain (Loss) Recognized in (Effective Portion) Location of Amount of Gain (Loss) Reclassified from Quarter Ended March 31, 2018 Quarter Ended March 31, 2017 Quarter Ended March 31, 2018 Quarter Ended March 31, 2017 (In thousands) Interest rate swaps $ 37,191 $ (2,489 ) Interest expense, net of interest capitalized $ (6,838 ) $ (8,857 ) Foreign currency forward contracts 95,366 2,129 Depreciation and amortization expenses (3,312 ) (2,710 ) Foreign currency forward contracts — — Other expense 42 (3,570 ) Foreign currency collar options — — Depreciation and amortization expenses — (602 ) Fuel swaps — — Other expense 325 2,277 Fuel swaps (4,941 ) (30,569 ) Fuel (5,131 ) (39,928 ) $ 127,616 $ (30,929 ) $ (14,914 ) $ (53,390 ) Gain (Loss) Recognized in Income (Net Investment Excluded Components) (1) (In thousands) Net inception fair value at January 1, 2018 $ (11,335 ) Fair value at March 31, 2018 (8,861 ) Change in fair value at March 31, 2018 (2,474 ) Amount of gain recognized in income for the quarter ended March 31, 2018 744 Amount of gain recognized in accumulated other comprehensive loss $ (1,730 ) (1) Represents amounts excluded from the assessment of effectiveness for which the difference between changes in fair value and periodic amortization is recorded in other comprehensive income. 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) Recognized in Other Comprehensive Income (Loss) Non-derivative instruments under ASC 815-20 Net Quarter Ended March 31, 2018 Quarter Ended March 31, 2017 (In thousands) Foreign Currency Debt $ (8,244 ) $ 4,369 $ (8,244 ) $ 4,369 There was no amount recognized in income (ineffective portion and amount excluded from effectiveness testing) for the quarters March 31, 2018 and March 31, 2017 , respectively. 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 Derivatives Derivatives Not Designated as Hedging Location of Quarter Ended March 31, 2018 Quarter Ended March 31, 2017 (In thousands) Foreign currency forward contracts Other expense $ 5,635 $ 13,812 Fuel swaps Other expense (30 ) (60 ) Fuel swaps Fuel 2,205 — $ 7,810 $ 13,752 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 are below specified levels. Specifically, if on the fifth anniversary of executing a derivative instrument, or on any succeeding fifth-year anniversary, our credit ratings for our senior unsecured debt were to be rated below BBB- by Standard & Poor’s and Baa3 by Moody’s, then the counterparty may periodically demand that we post collateral in an amount equal to the difference between (i) the net market value of all derivative transactions with such counterparty that have reached their fifth year anniversary, to the extent negative, and (ii) the applicable minimum call amount. The amount of collateral required to be posted following such event will change as, and to the extent, 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. At March 31, 2018 , four of our interest rate derivative instruments had reached their fifth anniversary; however, our senior unsecured debt credit rating was BBB- by Standard & Poor’s and Baa3 by Moody’s and, accordingly, we were not required to post any collateral as of such date. |
Summary of Significant Accoun16
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Accounting | Basis for Preparation of Consolidated Financial Statements The unaudited consolidated financial statements are presented pursuant to the rules and regulations of the Securities and Exchange Commission. In our opinion, these statements include all adjustments necessary for a fair statement of the results of the interim periods reported herein. Adjustments consist only of normal recurring items, except for any discussed in the notes below. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted as permitted by such rules and regulations. Estimates are required for the preparation of financial statements in accordance with GAAP and actual results could differ from these estimates. Refer to Note 2. Summary of Significant Accounting Policies in this Quarterly Report on Form 10-Q and in our Annual Report on Form 10-K for the year ended December 31, 2017 for a discussion of our significant accounting policies. |
Basis of 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. Refer to Note 5. 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. |
Adoption of Accounting Pronouncements and Recent Accounting Pronouncements | Adoption of Accounting Pronouncements On January 1, 2018, we adopted the guidance in Accounting Standard Codification 606 ("ASC 606"), Revenue from Contracts with Customers , and applied the guidance to all contracts using the modified retrospective method. The new standard converged wide-ranging revenue recognition concepts and requirements that lead to diversity in application for particular industries and transactions into a single revenue standard containing comprehensive principles for recognizing revenue. The cumulative effect of applying the newly issued guidance was not material and accordingly there was no adjustment made to our retained earnings upon adoption on January 1, 2018. We do not expect the newly issued guidance to have a material impact on our consolidated financial statements on an ongoing basis. The comparative information presented has not been restated and continues to be reported under the accounting standards in effect for those periods; however, due to the adoption of ASC 606, we currently present prepaid commissions as an asset within Prepaid expenses and other assets. Prior to adoption, prepaid commissions were netted against our customer deposits in our consolidated balance sheets. In order to conform to current year presentation, as of December 31, 2017, we have reclassified prepaid commissions of $64.6 million from Customer deposits to Prepaid expenses and other assets in our consolidated balance sheets . Refer to Note 3. Revenues for disclosures with respect to our revenue recognition policies. On January 1, 2018, we adopted the guidance in Accounting Standard Update ("ASU") 2016-16, Income Taxes 740: Intra-Entity Transfers of Assets Other Than Inventory , w hich requires the income tax consequences of an intra-entity transfer of an asset, other than inventory, to be recognized at the time that the transfer occurs, rather than when the asset is sold to an outside party. We adopted the standard using the modified retrospective method and recorded a cumulative-effect adjustment to reduce retained earnings as of January 1, 2018 by $6.6 million , which reflects the elimination of the deferred tax asset related to intercompany asset transfers. On January 1, 2018, we adopted the guidance in ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities , that was issued to simplify and align the financial reporting of hedging relationships to the economic results of an entity’s risk management activities. We adopted the amended guidance using the modified retrospective approach. Adoption of the guidance allowed us to modify the designated risk in our fair value interest rate hedges to the benchmark interest rate component, resulting in changes to the cumulative and ongoing fair value measurement for the hedged debt. Upon adoption, we also elected to hedge the contractually specified components of our commodities purchase contracts. For our cash flow hedges, there will be no periodic measurement or recognition of ineffectiveness. For all hedges, the earnings effect of the hedging instrument will be reported in the same period and in the same income statement line item in which the earnings effect of the hedged item is reported. As a result of the adoption of this guidance, we recorded a cumulative-effect adjustment to reduce retained earnings as of January 1, 2018 by $16.9 million . The cumulative-effect adjustment includes an increase to the debt carrying value of $14.4 million for our fair value interest rate hedges as of January 1, 2018, which reflects the cumulative fair value measurement change to debt at adoption resulting from the modified designated risk. The cumulative-effect adjustment also includes an increase to other comprehensive income of $2.5 million , which represents an increase to the deferred gain on active cash flow hedges at adoption. Additionally, the new standard requires modifications to existing presentation and disclosure requirements on a prospective basis. As such, certain disclosures for the quarter ended March 31, 2018 conform to these disclosure requirements. Refer to Note 9. Changes in Accumulated Other Comprehensive Income (Loss) and Note 10. Fair Value Measurements and Derivative Instruments for additional information. Recent Accounting Pronouncements Leases In February 2016, amended GAAP guidance was issued to increase the transparency and comparability of lease accounting among organizations. For leases with a term greater than 12 months, the amendments require the lease rights and obligations arising from the leasing arrangements, including operating leases, to be recognized as assets and liabilities on the balance sheet. The amendments also expand the required disclosures surrounding leasing arrangements. The guidance must be applied using a retrospective application method and will be effective for financial statements issued for fiscal years beginning after December 15, 2018 and interim periods within those years. Early adoption is permitted. We are currently evaluating the impact of the adoption of this newly issued guidance to our consolidated financial statements. |
Change in Accounting Principle - Stock-based Compensation | Change in Accounting Principle - Stock-based Compensation In January 2018, we elected to change our accounting policy for recognizing stock-based compensation expense from the graded attribution method to the straight-line attribution method for time-based stock awards. The adoption of the straight-line attribution method for time-based stock awards represents a change in accounting principle which we believe to be preferable because it is the predominant method used in our industry. A change in accounting principle requires retrospective application, if material. The impact of the adoption of the straight-line attribution method to our time-based awards was immaterial to prior periods and is expected to be immaterial for our fiscal year ended December 31, 2018. As a result, we have accounted for this change in accounting principle in our consolidated results for the first quarter of 2018. The effect of this change was an increase to net income of $9.2 million , or $0.04 per share for basic and diluted earnings per share, and is reported within Marketing, selling and administrative expenses in our consolidated statements of comprehensive income (loss) for the quarter ended March 31, 2018. |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table disaggregates our total revenues by geographic regions where we provide cruise itineraries (in thousands): Quarter Ended March 31, 2018 2017 Total revenues by itinerary North America (1) $ 1,347,260 $ 1,352,169 Asia/Pacific (2) 532,979 525,856 Europe (3) — — Other regions 77,185 65,232 Total revenues by itinerary 1,957,424 1,943,257 Other revenues (4) 70,332 65,303 Total revenues $ 2,027,756 $ 2,008,560 (1) Includes the United States, Canada, Mexico and the Caribbean. (2) Includes Southeast Asia (e.g., Singapore, Thailand and the Philippines), East Asia (e.g., China and Japan), South Asia (e.g., India and Pakistan) and Oceania (e.g., Australia and Fiji Islands) regions. (3) Includes European countries (e.g., Nordics, Germany, France, Italy, Spain and the United Kingdom). During the quarters ended March 31, 2018 and 2017, there were no cruise itineraries in Europe. (4) Includes revenues of $47.4 million and $42.6 million for the quarter ended March 31 2018 and 2017, respectively, related to cancellation fees, sales of vacation protection insurance and pre- and post-cruise tours and revenues of $23.0 million and $21.8 million for the quarter ended March 31 2018 and 2017, respectively, primarily related to our bareboat charter, procurement and management related services we perform on behalf of our unconsolidated affiliates. Passenger ticket revenues are attributed to geographic areas based on where the reservation originates. For the quarter ended March 31, 2018 and March 31, 2017, our guests were sourced from the following areas: Quarter Ended March 31, 2018 2017 Passenger ticket revenues: United States 60 % 60 % Australia 13 % 12 % All other countries (1) 27 % 28 % (1) No other individual country's revenue exceeded 10% for the quarter ended March 31, 2018 and 2017, respectively. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Reconciliation Between Basic and Diluted Earnings Per Share | A reconciliation between basic and diluted earnings per share is as follows (in thousands, except per share data): Quarter Ended March 31, 2018 2017 Net income for basic and diluted earnings per share $ 218,653 $ 214,726 Weighted-average common shares outstanding 212,610 214,870 Dilutive effect of stock-based awards and stock options 992 943 Diluted weighted-average shares outstanding 213,602 215,813 Basic earnings per share $ 1.03 $ 1.00 Diluted earnings per share $ 1.02 $ 0.99 |
Other Assets (Tables)
Other Assets (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Other Assets [Abstract] | |
Schedule of Other Nonoperating Income (Expense) | The following tables set forth information regarding our investments accounted for under the equity method of accounting, including the entities discussed above (in thousands): Quarter Ended March 31, 2018 Quarter Ended March 31, 2017 Share of equity income from investments $ 28,752 $ 11,880 Dividends received $ 37,918 $ 27,997 |
Schedule of Related Party Transactions | As of March 31, 2018 As of December 31, 2017 Total notes receivable due from equity investments $ 291,116 $ 314,323 Less-current portion (1) 95,865 38,658 Long-term portion (2) $ 195,251 $ 275,665 (1) Included within Trade and other receivables, net in our consolidated balance sheets. (2) Included within Other assets in our consolidated balance sheets. We recorded the following as it relates to these services in our operating results within our consolidated statements of comprehensive income (loss) (in thousands): Quarter Ended March 31, 2018 Quarter Ended March 31, 2017 Revenues $ 14,073 $ 12,615 Expenses $ 3,638 $ 3,713 |
Changes in Accumulated Other 20
Changes in Accumulated Other Comprehensive (Loss) Income (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Schedule of changes in accumulated other comprehensive income (loss) by component | The following table presents the changes in accumulated other comprehensive income (loss) by component for the quarters ended March 31, 2018 and 2017 (in thousands): Accumulated Other Comprehensive Income (Loss) for the Quarter Ended March 31, 2018 Accumulated Other Comprehensive Income (Loss) for the Quarter Ended March 31, 2017 Changes Changes in Foreign Accumulated other Changes Changes in Foreign Accumulated other Accumulated comprehensive loss at beginning of the year $ (250,355 ) $ (33,666 ) $ (50,244 ) $ (334,265 ) $ (820,850 ) $ (28,083 ) $ (67,551 ) $ (916,484 ) Other comprehensive income (loss) before reclassifications 127,616 7,417 1,160 136,193 (30,929 ) (904 ) 2,342 (29,491 ) Amounts reclassified from accumulated other comprehensive loss 14,914 343 — 15,257 53,390 263 — 53,653 Net current-period other comprehensive income (loss) 142,530 7,760 1,160 151,450 22,461 (641 ) 2,342 24,162 Ending balance $ (107,825 ) $ (25,906 ) $ (49,084 ) $ (182,815 ) $ (798,389 ) $ (28,724 ) $ (65,209 ) $ (892,322 ) |
Schedule of reclassifications out of accumulated other comprehensive income (loss) | The following table presents reclassifications out of accumulated other comprehensive income (loss) for the quarters ended March 31, 2018 and 2017 (in thousands): Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income Details About Accumulated Other Comprehensive Income (Loss) Components Quarter Ended March 31, 2018 Quarter Ended March 31, 2017 Affected Line Item in Statements of Loss on cash flow derivative hedges: Interest rate swaps $ (6,838 ) $ (8,857 ) Interest expense, net of interest capitalized Foreign currency forward contracts (3,312 ) (2,710 ) Depreciation and amortization expenses Foreign currency forward contracts 42 (3,570 ) Other expense Foreign currency collar options — (602 ) Depreciation and amortization expenses Fuel swaps 325 2,277 Other expense Fuel swaps (5,131 ) (39,928 ) Fuel (14,914 ) (53,390 ) Amortization of defined benefit plans: Actuarial loss (343 ) (263 ) Payroll and related (343 ) (263 ) Total reclassifications for the period $ (15,257 ) $ (53,653 ) |
Fair Value Measurements and D21
Fair Value Measurements and Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments | |
Fair Value Measurements, Nonrecurring | 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 March 31, 2018 Using Fair Value Measurements at December 31, 2017 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) $ 111,245 $ 111,245 $ 111,245 $ — $ — $ 120,112 $ 120,112 $ 120,112 $ — $ — Total Assets $ 111,245 $ 111,245 $ 111,245 $ — $ — $ 120,112 $ 120,112 $ 120,112 $ — $ — Liabilities: Long-term debt (including current portion of long-term debt) (5) $ 8,762,052 $ 9,333,745 $ — $ 9,333,745 $ — $ 7,506,312 $ 8,038,092 $ — $ 8,038,092 $ — Total Liabilities $ 8,762,052 $ 9,333,745 $ — $ 9,333,745 $ — $ 7,506,312 $ 8,038,092 $ — $ 8,038,092 $ — (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 March 31, 2018 and December 31, 2017 . (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. This does not include our capital lease obligations. The following table presents information about the fair value of our equity method investment and note and other receivables due related to SkySea Holding, further discussed in Note 5. Other Assets, recorded at fair value on a nonrecurring basis (in thousands): Fair Value Measurements at March 31, 2018 Using Description Total Carrying Amount Total Fair Value Level 3 Total Impairment Equity-method investment- SkySea Holding (1) $ — $ — $ — $ 509 Debt facility and other receivables due from Skysea Holding (2) $ 69,562 $ 69,562 $ 69,562 $ 22,834 Total $ 69,562 $ 69,562 $ 69,562 $ 23,343 (1) Due to the expectation that Skysea Holding will cease business operations by the end of 2018, we do not deem our investment balance to be recoverable and therefore, we estimated the fair value of our investment to be zero as of March 31, 2018. (2) We estimated the fair value of our debt facility and other receivables due from Skysea Holding based on the fair value of the collateral of the debt facility, Skysea Holding's ship, Golden Era. During the quarter ended March 31, 2018, Skysea Holding agreed to sell Golden Era to an affiliate of TUI AG, our joint venture partner in TUI Cruises. The fair value of the ship represents the net realizable value based on the agreed upon sale price of the ship. The sale of the ship is expected to be completed in December 2018. For further information on the Skysea Holding impairment, refer to Note 5. Other Assets . |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | 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 March 31, 2018 Using Fair Value Measurements at December 31, 2017 Using Description Total Level 1 (1) Level 2 (2) Level 3 (3) Total Level 1 (1) Level 2 (2) Level 3 (3) Assets: Derivative financial instruments (4) $ 391,116 $ — $ 391,116 $ — $ 320,385 $ — $ 320,385 $ — Investments (5) $ 5 5 — — $ 3,340 3,340 — — Total Assets $ 391,121 $ 5 $ 391,116 $ — $ 323,725 $ 3,340 $ 320,385 $ — Liabilities: Derivative financial instruments (6) $ 118,117 $ — $ 118,117 $ — $ 115,961 $ — $ 115,961 $ — Total Liabilities $ 118,117 $ — $ 118,117 $ — $ 115,961 $ — $ 115,961 $ — (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 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. 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 March 31, 2018 and December 31, 2017 . (4) Consists of foreign currency forward contracts, 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 reported within Other assets in our consolidated balance sheets. (6) Consists of foreign currency forward contracts, interest rate swaps and fuel swaps. Please refer to the “Fair Value of Derivative Instruments” table for breakdown by instrument type. |
Offsetting Assets | 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 March 31, 2018 As of December 31, 2017 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 (In thousands) Derivatives subject to master netting agreements $ 391,116 $ (110,989 ) $ — $ 280,127 $ 320,385 $ (104,751 ) $ — $ 215,634 Total $ 391,116 $ (110,989 ) $ — $ 280,127 $ 320,385 $ (104,751 ) $ — $ 215,634 |
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 March 31, 2018 As of December 31, 2017 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 (In thousands) Derivatives subject to master netting agreements $ (118,117 ) $ 110,989 $ — $ (7,128 ) $ (115,961 ) $ 104,751 $ — $ (11,210 ) Total $ (118,117 ) $ 110,989 $ — $ (7,128 ) $ (115,961 ) $ 104,751 $ — $ (11,210 ) |
Schedule of Price Risk Derivatives | As of March 31, 2018 and December 31, 2017 , we had the following outstanding fuel swap agreements: Fuel Swap Agreements As of March 31, 2018 As of December 31, 2017 (metric tons) 2018 512,800 673,700 2019 668,500 668,500 2020 531,200 531,200 2021 224,900 224,900 2022 — — Fuel Swap Agreements As of March 31, 2018 As of December 31, 2017 (% hedged) Projected fuel purchases: 2018 50 % 50 % 2019 47 % 46 % 2020 36 % 36 % 2021 14 % 14 % 2022 — — |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The fair value and line item caption of derivative instruments recorded within our consolidated balance sheets for the cumulative basis adjustment for fair value hedges were as follows (in thousands): Line Item in the Statement of Financial PositionWhere the Hedged Item is Included Carrying Amount of the Hedged Assets/(Liabilities) Cumulative amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) As of March 31, 2018 As of December 31, 2017 As of March 31, 2018 As of December 31, 2017 Current portion of long-term debt and Long-term debt $ 751,014 $ 749,155 $ (33,274 ) $ (34,813 ) $ 751,014 $ 749,155 $ (33,274 ) $ (34,813 ) 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 Location As of March 31, 2018 As of December 31, 2017 Balance Sheet Location As of March 31, 2018 As of December 31, 2017 Fair Value Fair Value Fair Value Fair Value (In thousands) Derivatives designated as hedging instruments under ASC 815-20 (1) Interest rate swaps Other assets $ 38,096 $ 7,330 Other long-term liabilities $ 47,251 $ 46,509 Foreign currency forward contracts Derivative financial instruments 42,688 68,352 Derivative financial instruments 1,390 — Foreign currency forward contracts Other assets 235,802 158,879 Other long-term liabilities 12,426 6,625 Fuel swaps Derivative financial instruments 22,061 13,137 Derivative financial instruments 31,235 38,488 Fuel swaps Other assets 38,562 51,265 Other long-term liabilities 15,180 13,411 Total derivatives designated as hedging instruments under 815-20 377,209 298,963 107,482 105,033 Derivatives not designated as hedging instruments under ASC 815-20 Foreign currency forward contracts Derivative financial instruments $ 4,361 $ 9,945 Derivative financial instruments $ 2,369 $ 2,933 Foreign currency forward contracts Other assets 4,413 2,793 Other long-term liabilities 2,762 1,139 Fuel swaps Derivative financial instruments 4,830 7,886 Derivative financial instruments 5,320 6,043 Fuel swaps Other Assets 303 798 Other long-term liabilities 184 813 Total derivatives not designated as hedging instruments under 815-20 13,907 21,422 10,635 10,928 Total derivatives $ 391,116 $ 320,385 $ 118,117 $ 115,961 (1) Accounting Standard Codification 815-20 “ Derivatives and Hedging.” |
Derivative Instruments, Gain (Loss) | The location and amount of gain or (loss) recognized in income on fair value and cash flow hedging relationships were as follows (in thousands): Quarter Ended March 31, 2018 Quarter Ended March 31, 2017 Fuel Expense Depreciation and Amortization Expenses Interest Income (Expense) Other Income (Expense) Fuel Expense Depreciation and Amortization Expenses Interest Income (Expense) Other Income (Expense) Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded 160,341 240,230 (60,145) (757 ) 177,414 235,749 (74,065) (2,611 ) The effects of fair value and cash flow hedging: Gain or (loss) on fair value hedging relationships in Subtopic 815-20 Interest contracts Hedged items n/a n/a 13,182 n/a n/a n/a n/a 2,457 Derivatives designated as hedging instruments n/a n/a (12,570) n/a n/a n/a 1,173 (1,531 ) Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 Interest contracts Amount of gain or (loss) reclassified from accumulated other comprehensive income into income n/a n/a (6,838) n/a n/a n/a (8,857) n/a Amount of gain or (loss) reclassified from accumulated other comprehensive income into income as a result that a forecasted transaction is no longer probable of occurring n/a n/a n/a n/a n/a n/a n/a n/a Commodity contracts Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income (5,131) n/a n/a 325 (39,928) n/a n/a 2,277 Amount excluded from effectiveness testing recognized in earnings based on changes in fair value n/a n/a n/a n/a n/a n/a n/a n/a Foreign exchange contracts Amount of gain or (loss) reclassified from accumulated other comprehensive income into income n/a (3,312) n/a 42 n/a (3,312) n/a (3,570 ) Amount excluded from effectiveness testing recognized in earnings based on changes in fair value n/a n/a n/a n/a n/a n/a n/a n/a |
Fair Value and Line Item Caption of Non-derivative Instruments | Carrying Value Non-derivative instrument designated as Balance Sheet Location As of March 31, 2018 As of December 31, 2017 (In thousands) Foreign currency debt Current portion of long-term debt $ 88,353 $ 70,097 Foreign currency debt Long-term debt 281,907 225,226 $ 370,260 $ 295,323 |
Non Derivative Instruments Qualifying and Designated as Hedging Instruments in Net Investment Hedges | 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) Recognized in Other Comprehensive Income (Loss) Non-derivative instruments under ASC 815-20 Net Quarter Ended March 31, 2018 Quarter Ended March 31, 2017 (In thousands) Foreign Currency Debt $ (8,244 ) $ 4,369 $ (8,244 ) $ 4,369 |
Not Designated as Hedging Instrument | |
Derivative Instruments | |
Derivative Instruments, Gain (Loss) | 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 Derivatives Derivatives Not Designated as Hedging Location of Quarter Ended March 31, 2018 Quarter Ended March 31, 2017 (In thousands) Foreign currency forward contracts Other expense $ 5,635 $ 13,812 Fuel swaps Other expense (30 ) (60 ) Fuel swaps Fuel 2,205 — $ 7,810 $ 13,752 |
Fair Value Hedging | |
Derivative Instruments | |
Schedule of Interest Rate Derivatives | At March 31, 2018 and December 31, 2017 , we maintained interest rate swap agreements on the following fixed-rate debt instruments: Debt Instrument Swap Notional as of March 31, 2018 (In thousands) Maturity Debt Fixed Rate Swap Floating Rate: LIBOR plus All-in Swap Floating Rate as of March 31, 2018 Oasis of the Seas term loan $ 140,000 October 2021 5.41% 3.87% 5.44% Unsecured senior notes 650,000 November 2022 5.25% 3.63% 5.47% $ 790,000 |
Derivative Instruments, Gain (Loss) | 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: Derivatives and Related Hedged Items under ASC 815-20 Fair Value Hedging Relationships Location of Gain (Loss) Recognized in Income on Derivative and Hedged Item Amount of Gain (Loss) Amount of Gain (Loss) Quarter Ended March 31, 2018 Quarter Ended March 31, 2017 Quarter Ended March 31, 2018 Quarter Ended March 31, 2017 (In thousands) Interest rate swaps Interest expense, net of interest capitalized $ (12,570 ) $ 1,173 $ 13,182 $ — Interest rate swaps Other expense — (1,531 ) — 2,457 $ (12,570 ) $ (358 ) $ 13,182 $ 2,457 |
Cash flow hedge | |
Derivative Instruments | |
Schedule of Interest Rate Derivatives | At March 31, 2018 and December 31, 2017 , we maintained interest rate swap agreements on the following floating-rate debt instruments: Debt Instrument Swap Notional as of March 31, 2018 (In thousands) Maturity Debt Floating Rate All-in Swap Fixed Rate Celebrity Reflection term loan $ 381,792 October 2024 LIBOR plus 0.40% 2.85% Quantum of the Seas term loan 551,250 October 2026 LIBOR plus 1.30% 3.74% Anthem of the Seas term loan 573,958 April 2027 LIBOR plus 1.30% 3.86% Ovation of the Seas term loan 726,250 April 2028 LIBOR plus 1.00% 3.16% Harmony of the Seas term loan (1) 746,332 May 2028 EURIBOR plus 1.15% 2.26% $ 2,979,582 (1) Interest rate swap agreements hedging the Euro-denominated term loan for Harmony of the Seas include EURIBOR zero-floor matching the hedged debt EURIBOR zero-floor. Amount presented is based on the exchange rate as of March 31, 2018 . |
Derivative Instruments, Gain (Loss) | Gain (Loss) Recognized in Income (Net Investment Excluded Components) (1) (In thousands) Net inception fair value at January 1, 2018 $ (11,335 ) Fair value at March 31, 2018 (8,861 ) Change in fair value at March 31, 2018 (2,474 ) Amount of gain recognized in income for the quarter ended March 31, 2018 744 Amount of gain recognized in accumulated other comprehensive loss $ (1,730 ) (1) Represents amounts excluded from the assessment of effectiveness for which the difference between changes in fair value and periodic amortization is recorded in other comprehensive income. The effect of derivative instruments qualifying and designated as cash flow hedging instruments on the consolidated financial statements was as follows: Derivatives Amount of Gain (Loss) Recognized in (Effective Portion) Location of Amount of Gain (Loss) Reclassified from Quarter Ended March 31, 2018 Quarter Ended March 31, 2017 Quarter Ended March 31, 2018 Quarter Ended March 31, 2017 (In thousands) Interest rate swaps $ 37,191 $ (2,489 ) Interest expense, net of interest capitalized $ (6,838 ) $ (8,857 ) Foreign currency forward contracts 95,366 2,129 Depreciation and amortization expenses (3,312 ) (2,710 ) Foreign currency forward contracts — — Other expense 42 (3,570 ) Foreign currency collar options — — Depreciation and amortization expenses — (602 ) Fuel swaps — — Other expense 325 2,277 Fuel swaps (4,941 ) (30,569 ) Fuel (5,131 ) (39,928 ) $ 127,616 $ (30,929 ) $ (14,914 ) $ (53,390 ) |
General - Narrative (Details)
General - Narrative (Details) | Mar. 31, 2018brand |
Schedule of Equity Method Investments [Line Items] | |
Number of cruise brands | 3 |
Maximum | |
Schedule of Equity Method Investments [Line Items] | |
Investment in a joint venture, percentage of interest | 50.00% |
Minimum | |
Schedule of Equity Method Investments [Line Items] | |
Investment in a joint venture, percentage of interest | 20.00% |
TUI Cruises | |
Schedule of Equity Method Investments [Line Items] | |
Investment in a joint venture, percentage of interest | 50.00% |
Pullmantur and CDF Croisieres de France | |
Schedule of Equity Method Investments [Line Items] | |
Investment in a joint venture, percentage of interest | 49.00% |
SkySea Cruises [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Investment in a joint venture, percentage of interest | 36.00% |
Summary of Significant Accoun23
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Effect of change on net income | $ 9.2 | ||
Effect of change on basic earnings per share (in dollars per share) | $ 0.04 | ||
Effect of change on diluted earnings per share (in dollars per share) | $ 0.04 | ||
Contract liability | $ (1,800) | $ (1,400) | |
Debt | Accounting Standards Update 2017-12 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect of new accounting principle in period of adoption | $ (14.4) | ||
AOCI Attributable to Parent | Accounting Standards Update 2017-12 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect of new accounting principle in period of adoption | (2.5) | ||
Retained Earnings | Accounting Standards Update 2016-16 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect of new accounting principle in period of adoption | 6.6 | ||
Retained Earnings | Accounting Standards Update 2017-12 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect of new accounting principle in period of adoption | 16.9 | ||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Prepaid Expense and Other Assets | 64.6 | ||
Contract liability | $ 64.6 |
Revenues - Narrative (Details)
Revenues - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Capitalized Contract Cost [Line Items] | |||
Port costs included in revenues | $ 136.7 | $ 134.5 | |
Contract liability | 1,800 | $ 1,400 | |
Contract with customer, liability, revenue recognized | 1,300 | ||
Contract asset | 59.5 | 60.1 | |
Travel Agent Sales Commissions | |||
Capitalized Contract Cost [Line Items] | |||
Capitalized Contract Cost, Gross | $ 80.2 | $ 64.6 | |
Minimum | |||
Capitalized Contract Cost [Line Items] | |||
Length of cruise | 2 days | ||
Maximum | |||
Capitalized Contract Cost [Line Items] | |||
Length of cruise | 23 days |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 2,027,756 | $ 2,008,560 | |
Cruise Itinerary | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 1,957,424 | 1,943,257 | |
Cruise Itinerary | North America | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | [1] | 1,347,260 | 1,352,169 |
Cruise Itinerary | Asia Pacific | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | [2] | 532,979 | 525,856 |
Cruise Itinerary | Europe | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | [3] | 0 | 0 |
Cruise Itinerary | Other regions | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 77,185 | 65,232 | |
Other Revenues | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | [4] | 70,332 | 65,303 |
Onboard Revenues | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 47,400 | 42,600 | |
Bareboat Charter, Procurement And Management | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 23,000 | $ 21,800 | |
Passenger Ticket | Other regions | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of Total Revenues by Country | [5] | 27.00% | 28.00% |
Passenger Ticket | United States | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of Total Revenues by Country | 60.00% | 60.00% | |
Passenger Ticket | Australia | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of Total Revenues by Country | 13.00% | 12.00% | |
[1] | Includes the United States, Canada, Mexico and the Caribbean. | ||
[2] | Includes Southeast Asia (e.g., Singapore, Thailand and the Philippines), East Asia (e.g., China and Japan), South Asia (e.g., India and Pakistan) and Oceania (e.g., Australia and Fiji Islands) regions. | ||
[3] | Includes European countries (e.g., Nordics, Germany, France, Italy, Spain and the United Kingdom). During the quarters ended March 31, 2018 and 2017, there were no cruise itineraries in Europe. | ||
[4] | Includes revenues of $47.4 million and $42.6 million for the quarter ended March 31 2018 and 2017, respectively, related to cancellation fees, sales of vacation protection insurance and pre- and post-cruise tours and revenues of $23.0 million and $21.8 million for the quarter ended March 31 2018 and 2017, respectively, primarily related to our bareboat charter, procurement and management related services we perform on behalf of our unconsolidated affiliates | ||
[5] | No other individual country's revenue exceeded 10% for the quarter ended March 31, 2018 and 2017, respectively. |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Net income for basic and diluted earnings per share | $ 218,653 | $ 214,726 |
Weighted-average common shares outstanding (in shares) | 212,610,000 | 214,870,000 |
Dilutive effect of stock-based awards and stock options (in shares) | 992,000 | 943,000 |
Diluted weighted-average shares outstanding (in shares) | 213,602,000 | 215,813,000 |
Basic earnings per share (in dollars per share) | $ 1.03 | $ 1 |
Diluted earnings per share (in dollars per share) | $ 1.02 | $ 0.99 |
Antidilutive securities (in shares) | 0 | 0 |
Other Assets - Narrative (Detai
Other Assets - Narrative (Details) | 1 Months Ended | 3 Months Ended | ||||||||
Apr. 30, 2018EUR (€) | Mar. 31, 2018USD ($)ship | Apr. 30, 2016 | Mar. 31, 2018USD ($)ship | Mar. 31, 2017USD ($) | Mar. 31, 2016 | Mar. 31, 2018EUR (€)ship | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2014USD ($) | |
Other Assets | ||||||||||
Advances to affiliate | € | € 162,500,000 | € 166,500,000 | ||||||||
Proceeds from credit facility | $ 0 | $ 0 | ||||||||
Debt instrument, basis spread on variable rate | 1.32% | |||||||||
Proceeds from collection of advance to affiliate | $ 13,953,000 | $ 5,011,000 | ||||||||
TUI Cruises GmbH joint venture | ||||||||||
Other Assets | ||||||||||
Percentage of ownership interest | 50.00% | 50.00% | 50.00% | |||||||
Investments in entity | $ 627,500,000 | $ 627,500,000 | $ 624,500,000 | |||||||
Underlying equity in net assets | 425,400,000 | 425,400,000 | 422,800,000 | |||||||
Advances to affiliate | 199,900,000 | $ 199,900,000 | 199,800,000 | |||||||
Debt, guaranteed percentage | 50.00% | |||||||||
Additional amount outstanding on line of credit provided to TUI Cruises | $ 109,600,000 | $ 109,600,000 | € 89,100,000 | |||||||
Pullmantur and CDF Croisieres de France | ||||||||||
Other Assets | ||||||||||
Percentage of ownership interest | 49.00% | 49.00% | 49.00% | |||||||
Advances to affiliate | $ 18,500,000 | $ 18,500,000 | € 15,000,000 | |||||||
Interest rate on loan provided to related party (as a percent) | 6.50% | 6.50% | 6.50% | |||||||
Debt, guaranteed percentage | 51.00% | |||||||||
Retained ownership percentage of subsidiary after sale | 49.00% | |||||||||
Percentage of subsidiary which has been sold | 51.00% | 51.00% | 51.00% | |||||||
Maximum loss exposure | $ 54,600,000 | $ 54,600,000 | 53,700,000 | |||||||
Grand Bahamas Shipyard Ltd. | ||||||||||
Other Assets | ||||||||||
Proceeds from collection of advance to affiliate | $ 3,000,000 | 300,000 | ||||||||
Grand Bahamas Shipyard Ltd. | Not Primary Beneficiary | ||||||||||
Other Assets | ||||||||||
Percentage of ownership interest | 40.00% | 40.00% | 40.00% | |||||||
Investments in entity | $ 55,600,000 | $ 55,600,000 | 49,400,000 | |||||||
Underlying equity in net assets | $ 38,700,000 | 38,700,000 | 32,400,000 | |||||||
Related party transaction, payment amount for ship repair and maintenance | 22,300,000 | $ 1,700,000 | ||||||||
Skysea Holding | ||||||||||
Other Assets | ||||||||||
Equity Method Investment, Other than Temporary Impairment | $ 23,300,000 | |||||||||
Skysea Holding | Not Primary Beneficiary | ||||||||||
Other Assets | ||||||||||
Percentage of ownership interest | 36.00% | 36.00% | 36.00% | 36.00% | ||||||
Investments in entity | $ 69,600,000 | $ 69,600,000 | 96,000,000 | |||||||
Underlying equity in net assets | 4,400,000 | |||||||||
Advances to affiliate | 80,000,000 | $ 80,000,000 | 91,600,000 | $ 80,000,000 | ||||||
Interest rate on loan provided to related party (as a percent) | 6.50% | |||||||||
Debt, guaranteed percentage | 100.00% | |||||||||
Splendour of the Seas | TUI Cruises GmbH joint venture | ||||||||||
Other Assets | ||||||||||
Interest rate on loan provided to related party (as a percent) | 6.25% | |||||||||
Long term debt, term | 10 years | |||||||||
Debt, guaranteed percentage | 50.00% | |||||||||
Non-accrual status of advances to affiliates | Grand Bahamas Shipyard Ltd. | Not Primary Beneficiary | ||||||||||
Other Assets | ||||||||||
Advances to affiliate | $ 16,900,000 | $ 16,900,000 | $ 17,000,000 | |||||||
Interest rate on loan provided to related party (as a percent) | 5.50% | |||||||||
LIBOR | Non-accrual status of advances to affiliates | Grand Bahamas Shipyard Ltd. | Not Primary Beneficiary | ||||||||||
Other Assets | ||||||||||
Debt instrument, basis spread on variable rate | 3.50% | |||||||||
TUI cruise ships | TUI Cruises GmbH joint venture | ||||||||||
Other Assets | ||||||||||
Number of ships on order | ship | 2 | 2 | 2 | |||||||
Percentage of bank committed financing | 80.00% | 80.00% | 80.00% | |||||||
Unsecured term loan | $ 184,500,000 | $ 184,500,000 | € 150,000,000 | |||||||
Restriction on reduction of current ownership interest (as a percent) | 37.55% | 37.55% | 37.55% | |||||||
Springwater Capital LLC | Pullmantur and CDF Croisieres de France | ||||||||||
Other Assets | ||||||||||
Percentage of ownership interest | 51.00% | 51.00% | 51.00% | |||||||
Subsequent Event | TUI Cruises GmbH joint venture | ||||||||||
Other Assets | ||||||||||
Repayments of related party debt | € | € 44,200,000 |
Other Assets - Share of equity
Other Assets - Share of equity income from investments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Other Assets [Abstract] | ||
Share of equity income from investments | $ 28,752 | $ 11,880 |
Dividends received | $ 37,918 | $ 27,997 |
Other Assets - Notes receivable
Other Assets - Notes receivable due from equity instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Total notes receivable due from equity investments | $ 291,116 | $ 314,323 | |
Less-current portion | [1] | 95,865 | 38,658 |
Long-term portion | [2] | $ 195,251 | $ 275,665 |
[1] | Included within Trade and other receivables, net in our consolidated balance sheets. | ||
[2] | Included within Other assets in our consolidated balance sheets. |
Other Assets - Related party tr
Other Assets - Related party transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Other Assets [Abstract] | ||
Revenues | $ 14,073 | $ 12,615 |
Expenses | $ 3,638 | $ 3,713 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) $ in Millions | 1 Months Ended |
Mar. 31, 2018USD ($) | |
Long-Term Debt | |
Unsecured term loan maximum borrowing capacity | $ 130 |
Debt Floating Rate | 1.32% |
Symphony of the Seas | |
Long-Term Debt | |
Unsecured term loan maximum borrowing capacity | $ 1,200 |
Long term debt, term | 12 years |
Fixed interest rate | 3.82% |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Millions | Jul. 31, 2016ft² | Mar. 31, 2018USD ($)shipberth | Dec. 31, 2017 |
Commitments and Contingencies | |||
Number of months considered to determine requirement of prepayment of debts | 24 months | ||
Cruise ships on order | |||
Commitments and Contingencies | |||
Aggregate cost of ships on order, not including TUI cruises on order | $ | $ 11,700 | ||
Deposit for the purchase of ships expected to enter service | $ | $ 419 | ||
Percentage of aggregate cost exposed to fluctuations in the euro exchange rate | 55.90% | 54.00% | |
Line of Credit | Minimum | |||
Commitments and Contingencies | |||
Debt instrument covenant, minimum percentage of ownership by a person | 50.00% | ||
Debt Securities | Minimum | |||
Commitments and Contingencies | |||
Debt instrument covenant, minimum percentage of ownership by a person | 50.00% | ||
Royal Caribbean International Cruise Ships | Quantum Class Ship | Cruise ships on order | |||
Commitments and Contingencies | |||
Number of ships under construction | 2 | ||
Royal Caribbean International Cruise Ships | Oasis Class Ship | Cruise ships on order | |||
Commitments and Contingencies | |||
Number of ships under construction | 1 | ||
Royal Caribbean International Cruise Ships | Project Icon ships | Cruise ships on order | |||
Commitments and Contingencies | |||
Number of ships under construction | 2 | ||
Ship passenger capacity berths | berth | 25,250 | ||
Celebrity Cruise Ships | Project Edge Class Ships | Cruise ships on order | |||
Commitments and Contingencies | |||
Number of ships under construction | 4 | ||
Ship passenger capacity berths | berth | 12,200 | ||
Port of Miami Terminal [Member] | |||
Commitments and Contingencies | |||
Area of real estate property | ft² | 170,000 | ||
Operating lease term | 5 years |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Apr. 30, 2018 | Apr. 30, 2017 | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | |
Subsequent Event [Line Items] | |||||||
Dividend declared (in dollars per share) | $ 0.60 | $ 0.60 | $ 0.48 | $ 0.48 | |||
Common stock, dividends, per share, cash paid (in dollars per share) | $ 0.48 | $ 0.60 | $ 0.48 | ||||
Common stock repurchase program, authorized amount | $ 500,000,000 | ||||||
Treasury stock, shares, acquired (in shares) | 2,100,000 | 1,800,000 | |||||
Treasury stock, value, acquired, cost method | $ 275,000,000 | $ 500,000,000 | $ 225,000,000 | ||||
Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Common stock, dividends, per share, cash paid (in dollars per share) | $ 0.60 |
Changes in Accumulated Other 34
Changes in Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Changes in accumulated other comprehensive loss by component | ||
Amounts reclassified from accumulated other comprehensive loss | $ 15,257 | $ 53,653 |
Total other comprehensive income | 151,450 | 24,162 |
Changes related to cash flow derivative hedges | ||
Changes in accumulated other comprehensive loss by component | ||
Accumulated comprehensive loss at beginning of the year | (250,355) | (820,850) |
Other comprehensive income (loss) before reclassifications | 127,616 | (30,929) |
Amounts reclassified from accumulated other comprehensive loss | 14,914 | 53,390 |
Total other comprehensive income | 142,530 | 22,461 |
Ending balance | (107,825) | (798,389) |
Changes in defined benefit plans | ||
Changes in accumulated other comprehensive loss by component | ||
Accumulated comprehensive loss at beginning of the year | (33,666) | (28,083) |
Other comprehensive income (loss) before reclassifications | 7,417 | (904) |
Amounts reclassified from accumulated other comprehensive loss | 343 | 263 |
Total other comprehensive income | 7,760 | (641) |
Ending balance | (25,906) | (28,724) |
Foreign currency translation adjustments | ||
Changes in accumulated other comprehensive loss by component | ||
Accumulated comprehensive loss at beginning of the year | (50,244) | (67,551) |
Other comprehensive income (loss) before reclassifications | 1,160 | 2,342 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Total other comprehensive income | 1,160 | 2,342 |
Ending balance | (49,084) | (65,209) |
Accumulated other comprehensive loss | ||
Changes in accumulated other comprehensive loss by component | ||
Accumulated comprehensive loss at beginning of the year | (334,265) | (916,484) |
Other comprehensive income (loss) before reclassifications | 136,193 | (29,491) |
Amounts reclassified from accumulated other comprehensive loss | 15,257 | 53,653 |
Total other comprehensive income | 151,450 | 24,162 |
Ending balance | $ (182,815) | $ (892,322) |
Changes in Accumulated Other 35
Changes in Accumulated Other Comprehensive (Loss) Income - Reclassifications (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Reclassifications out of accumulated other comprehensive loss | ||
Interest expense, net of interest capitalized | $ (67,878) | $ (80,317) |
Depreciation and amortization expenses | (240,230) | (235,749) |
Other expense | 55,493 | 64,796 |
Fuel | (160,341) | (177,414) |
Net income | 218,653 | 214,726 |
Amounts reclassified from accumulated other comprehensive income (loss) | (15,257) | (53,653) |
Loss on cash flow derivative hedges | ||
Reclassifications out of accumulated other comprehensive loss | ||
Amounts reclassified from accumulated other comprehensive income (loss) | (14,914) | (53,390) |
Loss on cash flow derivative hedges | Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | ||
Reclassifications out of accumulated other comprehensive loss | ||
Net income | (14,914) | (53,390) |
Loss on cash flow derivative hedges | Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | Interest rate swaps | ||
Reclassifications out of accumulated other comprehensive loss | ||
Interest expense, net of interest capitalized | (6,838) | (8,857) |
Loss on cash flow derivative hedges | Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | Foreign currency forward contracts | ||
Reclassifications out of accumulated other comprehensive loss | ||
Depreciation and amortization expenses | (3,312) | (2,710) |
Other expense | 42 | (3,570) |
Loss on cash flow derivative hedges | Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | Foreign currency collar options | ||
Reclassifications out of accumulated other comprehensive loss | ||
Depreciation and amortization expenses | 0 | (602) |
Loss on cash flow derivative hedges | Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | Fuel swaps | ||
Reclassifications out of accumulated other comprehensive loss | ||
Other expense | 325 | 2,277 |
Fuel | (5,131) | (39,928) |
Actuarial loss | ||
Reclassifications out of accumulated other comprehensive loss | ||
Amounts reclassified from accumulated other comprehensive income (loss) | (343) | (263) |
Amortization of defined benefit plans | ||
Reclassifications out of accumulated other comprehensive loss | ||
Amounts reclassified from accumulated other comprehensive income (loss) | $ (343) | $ (263) |
Fair Value Measurements and D36
Fair Value Measurements and Derivative Instruments (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | |
Level 1 | |||
Assets: | |||
Cash and cash equivalents | [1],[2] | $ 111,245 | $ 120,112 |
Total Assets | [2] | 111,245 | 120,112 |
Liabilities: | |||
Long-term debt (including current portion of long-term debt) | [2],[3] | 0 | 0 |
Total Liabilities | [2] | 0 | 0 |
Level 2 | |||
Assets: | |||
Cash and cash equivalents | [1],[4] | 0 | 0 |
Total Assets | [4] | 0 | 0 |
Liabilities: | |||
Long-term debt (including current portion of long-term debt) | [3],[4] | 9,333,745 | 8,038,092 |
Total Liabilities | [4] | 9,333,745 | 8,038,092 |
Level 3 | |||
Assets: | |||
Cash and cash equivalents | [1],[5] | 0 | 0 |
Total Assets | [5] | 0 | 0 |
Liabilities: | |||
Long-term debt (including current portion of long-term debt) | [3],[5] | 0 | 0 |
Total Liabilities | [5] | 0 | 0 |
Total Carrying Amount | |||
Assets: | |||
Cash and cash equivalents | [1] | 111,245 | 120,112 |
Total Assets | 111,245 | 120,112 | |
Liabilities: | |||
Long-term debt (including current portion of long-term debt) | [3] | 8,762,052 | 7,506,312 |
Total Liabilities | 8,762,052 | 7,506,312 | |
Total Fair Value | |||
Assets: | |||
Cash and cash equivalents | [1] | 111,245 | 120,112 |
Total Assets | 111,245 | 120,112 | |
Liabilities: | |||
Long-term debt (including current portion of long-term debt) | [3] | 9,333,745 | 8,038,092 |
Total Liabilities | $ 9,333,745 | $ 8,038,092 | |
[1] | Consists of cash and marketable securities with original maturities of less than 90 days. | ||
[2] | 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. | ||
[3] | Consists of unsecured revolving credit facilities, senior notes, senior debentures and term loans. This does not include our capital lease obligations. | ||
[4] | 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. | ||
[5] | Inputs that are unobservable. The Company did not use any Level 3 inputs as of March 31, 2018 and December 31, 2017. |
Fair Value Measurements and D37
Fair Value Measurements and Derivative Instruments - Recurring (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | |
Assets: | |||
Derivative financial instruments | $ 280,127 | $ 215,634 | |
Liabilities: | |||
Derivative financial instruments | 7,128 | 11,210 | |
Fair Value, Measurements, Recurring | Level 1 | |||
Assets: | |||
Derivative financial instruments | [1],[2] | 0 | 0 |
Investments | [2],[3] | 5 | 3,340 |
Total Assets | [2] | 5 | 3,340 |
Liabilities: | |||
Derivative financial instruments | [2],[4] | 0 | 0 |
Total Liabilities | [2] | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | |||
Assets: | |||
Derivative financial instruments | [1],[5] | 391,116 | 320,385 |
Investments | [3],[5] | 0 | 0 |
Total Assets | [5] | 391,116 | 320,385 |
Liabilities: | |||
Derivative financial instruments | [4],[5] | 118,117 | 115,961 |
Total Liabilities | [5] | 118,117 | 115,961 |
Fair Value, Measurements, Recurring | Level 3 | |||
Assets: | |||
Derivative financial instruments | [1],[6] | 0 | 0 |
Investments | [3],[6] | 0 | 0 |
Total Assets | [6] | 0 | 0 |
Liabilities: | |||
Derivative financial instruments | [4],[6] | 0 | 0 |
Total Liabilities | [6] | 0 | 0 |
Total | Fair Value, Measurements, Recurring | |||
Assets: | |||
Derivative financial instruments | [1] | 391,116 | 320,385 |
Investments | [3] | 5 | 3,340 |
Total Assets | 391,121 | 323,725 | |
Liabilities: | |||
Derivative financial instruments | [4] | 118,117 | 115,961 |
Total Liabilities | $ 118,117 | $ 115,961 | |
[1] | Consists of foreign currency forward contracts, interest rate swaps and fuel swaps. Please refer to the “Fair Value of Derivative Instruments” table for breakdown by instrument type. | ||
[2] | 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. | ||
[3] | Consists of exchange-traded equity securities and mutual funds reported within Other assets in our consolidated balance sheets. | ||
[4] | Consists of foreign currency forward contracts, interest rate swaps and fuel swaps. Please refer to the “Fair Value of Derivative Instruments” table for breakdown by instrument type. | ||
[5] | 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 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. All derivative instrument fair values take into account the creditworthiness of the counterparty and the Company. | ||
[6] | Inputs that are unobservable. The Company did not use any Level 3 inputs as of March 31, 2018 and December 31, 2017. |
Fair Value Measurements and D38
Fair Value Measurements and Derivative Instruments - Equity Method Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt facility and other receivables due from Skysea Holding | $ 291,116 | $ 314,323 | |
Fair Value, Measurements, Nonrecurring | Total Carrying Amount | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity-method investment- SkySea Holding | [1] | 0 | |
Debt facility and other receivables due from Skysea Holding | [2] | 69,562 | |
Total | 69,562 | ||
Fair Value, Measurements, Nonrecurring | Total Fair Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity-method investment- SkySea Holding | [1] | 0 | |
Debt facility and other receivables due from Skysea Holding | [2] | 69,562 | |
Total | 69,562 | ||
Fair Value, Measurements, Nonrecurring | Total Fair Value | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity-method investment- SkySea Holding | [1] | 0 | |
Debt facility and other receivables due from Skysea Holding | [2] | 69,562 | |
Total | 69,562 | ||
Fair Value, Measurements, Nonrecurring | Total Impairment | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity-method investment- SkySea Holding | [1] | 509 | |
Debt facility and other receivables due from Skysea Holding | [2] | 22,834 | |
Total | $ 23,343 | ||
[1] | Due to the expectation that Skysea Holding will cease business operations by the end of 2018, we do not deem our investment balance to be recoverable and therefore, we estimated the fair value of our investment to be zero as of March 31, 2018. | ||
[2] | We estimated the fair value of our debt facility and other receivables due from Skysea Holding based on the fair value of the collateral of the debt facility, Skysea Holding's ship, Golden Era. During the quarter ended March 31, 2018, Skysea Holding agreed to sell Golden Era to an affiliate of TUI AG, our joint venture partner in TUI Cruises. The fair value of the ship represents the net realizable value based on the agreed upon sale price of the ship. The sale of the ship is expected to be completed in December 2018. For further information on the Skysea Holding impairment, refer to Note 5. Other Assets. |
Fair Value Measurements and D39
Fair Value Measurements and Derivative Instruments - Offsetting of Derivative Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Offsetting of Financial Assets under Master Netting Agreements [Abstract] | ||
Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheet | $ 391,116 | $ 320,385 |
Gross Amount of Eligible Offsetting Recognized Derivative Liabilities | (110,989) | (104,751) |
Cash Collateral Received | 0 | 0 |
Net Amount of Derivative Assets | 280,127 | 215,634 |
Offsetting of Financial Liabilities under Master Netting Agreements [Abstract] | ||
Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheet | (118,117) | (115,961) |
Gross Amount of Eligible Offsetting Recognized Derivative Assets | 110,989 | 104,751 |
Cash Collateral Pledged | 0 | 0 |
Net Amount of Derivative Liabilities | $ (7,128) | $ (11,210) |
Fair Value Measurements and D40
Fair Value Measurements and Derivative Instruments - Derivative Instruments, Interest Rate Risk, Foreign Currency Exchange Rate Risk (Narrative) (Details) $ in Thousands, € in Millions | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2018USD ($) | Mar. 31, 2018EUR (€) | Dec. 31, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | Mar. 31, 2018EUR (€) | |
Gains and losses from derivatives involved in hedging relationships | |||||||
Derivative instrument, credit risk exposure | $ 273,400 | $ 212,800 | |||||
Maximum length of time hedged in derivative contract | 3 years | 3 years | |||||
Percentage of debt bearing fixed interest | 60.90% | 57.40% | 57.40% | 60.90% | |||
Interest rate swaps | |||||||
Gains and losses from derivatives involved in hedging relationships | |||||||
Derivative, notional amount | $ 3,800,000 | $ 3,800,000 | |||||
Forward Contracts | |||||||
Gains and losses from derivatives involved in hedging relationships | |||||||
Change in fair value of foreign currency forward contracts recognized in earnings | $ 5,600 | $ 13,800 | |||||
Forward Contracts | Not Designated | |||||||
Gains and losses from derivatives involved in hedging relationships | |||||||
Derivative, notional amount | 770,500 | ||||||
Foreign exchange contracts | |||||||
Gains and losses from derivatives involved in hedging relationships | |||||||
Derivative, notional amount | 4,000,000 | $ 4,600,000 | $ 4,600,000 | ||||
Cruise ships on order | |||||||
Gains and losses from derivatives involved in hedging relationships | |||||||
Aggregate cost of ships on order, not including TUI cruises on order | 11,700,000 | ||||||
Amount deposited for cost of ships on order | $ 419,000 | ||||||
Percentage of aggregate cost exposed to fluctuations in the euro exchange rate | 55.90% | 54.00% | 54.00% | 55.90% | |||
TUI Cruises | Forward Contracts | Designated as Hedging Instrument | |||||||
Gains and losses from derivatives involved in hedging relationships | |||||||
Derivative, notional amount | $ 124,200 | € 101 | |||||
Foreign currency debt | |||||||
Gains and losses from derivatives involved in hedging relationships | |||||||
Carrying value of non-derivative instrument designated as hedging instrument | 370,260 | $ 295,323 | |||||
Foreign currency debt | TUI Cruises | |||||||
Gains and losses from derivatives involved in hedging relationships | |||||||
Carrying value of non-derivative instrument designated as hedging instrument | $ 370,600 | € 301 | $ 295,300 | € 246 |
Fair Value Measurements and D41
Fair Value Measurements and Derivative Instruments - Interest Rate Risk (Details) | 1 Months Ended | 3 Months Ended | ||
Mar. 31, 2018USD ($) | Mar. 31, 2018USD ($) | |||
Interest Rate Cash Flow Hedges [Abstract] | ||||
Debt Floating Rate | 1.32% | |||
Interest rate swaps | Fair Value Hedging | ||||
Interest Rate Fair Value Hedges [Abstract] | ||||
Long-term debt | $ 790,000,000 | $ 790,000,000 | ||
Interest rate swaps | Fair Value Hedging | Oasis of the Seas term loan | ||||
Interest Rate Fair Value Hedges [Abstract] | ||||
Long-term debt | $ 140,000,000 | $ 140,000,000 | ||
Debt Fixed Rate | 5.41% | 5.41% | ||
Interest rate swaps | Fair Value Hedging | Unsecured senior notes | ||||
Interest Rate Fair Value Hedges [Abstract] | ||||
Unsecured term loan | $ 650,000,000 | $ 650,000,000 | ||
Debt Fixed Rate | 5.25% | 5.25% | ||
Interest rate swaps | Cash flow hedge | ||||
Interest Rate Cash Flow Hedges [Abstract] | ||||
Swap notional amount | $ 2,979,582,000 | $ 2,979,582,000 | ||
Interest rate swaps | Cash flow hedge | Celebrity Reflection term loan | ||||
Interest Rate Cash Flow Hedges [Abstract] | ||||
Swap notional amount | $ 381,792,000 | $ 381,792,000 | ||
All-in Swap Fixed Rate | 2.85% | 2.85% | ||
Interest rate swaps | Cash flow hedge | Quantum of the Seas term loan | ||||
Interest Rate Cash Flow Hedges [Abstract] | ||||
Swap notional amount | $ 551,250,000 | $ 551,250,000 | ||
All-in Swap Fixed Rate | 3.74% | 3.74% | ||
Interest rate swaps | Cash flow hedge | Anthem of the Seas term loan | ||||
Interest Rate Cash Flow Hedges [Abstract] | ||||
Swap notional amount | $ 573,958,000 | $ 573,958,000 | ||
All-in Swap Fixed Rate | 3.86% | 3.86% | ||
Interest rate swaps | Cash flow hedge | Ovation of the Seas term loan | ||||
Interest Rate Cash Flow Hedges [Abstract] | ||||
Swap notional amount | $ 726,250,000 | $ 726,250,000 | ||
All-in Swap Fixed Rate | 3.16% | 3.16% | ||
Interest rate swaps | Cash flow hedge | Harmony of the Seas Unsecured Term Loan | ||||
Interest Rate Cash Flow Hedges [Abstract] | ||||
Swap notional amount | $ 746,332,000 | [1] | $ 746,332,000 | [1] |
All-in Swap Fixed Rate | 2.26% | [1] | 2.26% | [1] |
LIBOR | Interest rate swaps | Fair Value Hedging | Oasis of the Seas term loan | ||||
Interest Rate Fair Value Hedges [Abstract] | ||||
Swap Floating Rate: LIBOR plus | 3.87% | 3.87% | ||
All-in swap floating rate | 5.44% | 5.44% | ||
LIBOR | Interest rate swaps | Fair Value Hedging | Unsecured senior notes | ||||
Interest Rate Fair Value Hedges [Abstract] | ||||
Swap Floating Rate: LIBOR plus | 3.63% | 3.63% | ||
All-in swap floating rate | 5.47% | 5.47% | ||
LIBOR | Interest rate swaps | Cash flow hedge | Celebrity Reflection term loan | ||||
Interest Rate Cash Flow Hedges [Abstract] | ||||
Debt Floating Rate | 0.40% | |||
LIBOR | Interest rate swaps | Cash flow hedge | Quantum of the Seas term loan | ||||
Interest Rate Cash Flow Hedges [Abstract] | ||||
Debt Floating Rate | 1.30% | |||
LIBOR | Interest rate swaps | Cash flow hedge | Anthem of the Seas term loan | ||||
Interest Rate Cash Flow Hedges [Abstract] | ||||
Debt Floating Rate | 1.30% | |||
LIBOR | Interest rate swaps | Cash flow hedge | Ovation of the Seas term loan | ||||
Interest Rate Cash Flow Hedges [Abstract] | ||||
Debt Floating Rate | 1.00% | |||
EURIBOR | Interest rate swaps | Cash flow hedge | Harmony of the Seas Unsecured Term Loan | ||||
Interest Rate Cash Flow Hedges [Abstract] | ||||
Debt Floating Rate | 1.15% | [1] | ||
[1] | Interest rate swap agreements hedging the Euro-denominated term loan for Harmony of the Seas include EURIBOR zero-floor matching the hedged debt EURIBOR zero-floor. Amount presented is based on the exchange rate as of March 31, 2018. |
Fair Value Measurements and D42
Fair Value Measurements and Derivative Instruments - Fuel Price Risk (Details) - Fuel Swap Agreements $ in Millions | Mar. 31, 2018USD ($)T | Dec. 31, 2017USD ($)T |
Derivative Instruments | ||
Estimated unrealized net loss associated with cash flow hedges pertaining to fuel swap agreements expected to be reclassified to earnings from accumulated other comprehensive income loss | $ | $ 19.7 | $ 23.7 |
2,018 | ||
Derivative Instruments | ||
Fuel swap agreements (metric tons) | 512,800 | 673,700 |
Percentage of projected requirements | 50.00% | 50.00% |
2,019 | ||
Derivative Instruments | ||
Fuel swap agreements (metric tons) | 668,500 | 668,500 |
Percentage of projected requirements | 47.00% | 46.00% |
2,020 | ||
Derivative Instruments | ||
Fuel swap agreements (metric tons) | 531,200 | 531,200 |
Percentage of projected requirements | 36.00% | 36.00% |
2,021 | ||
Derivative Instruments | ||
Fuel swap agreements (metric tons) | 224,900 | 224,900 |
Percentage of projected requirements | 14.00% | 14.00% |
2,022 | ||
Derivative Instruments | ||
Fuel swap agreements (metric tons) | 0 | 0 |
Percentage of projected requirements | 0.00% | 0.00% |
Fair Value Measurements and D43
Fair Value Measurements and Derivative Instruments - Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | |
Asset Derivatives | |||
Asset Derivatives | $ 391,116 | $ 320,385 | |
Liability Derivatives | |||
Liability Derivatives | 118,117 | 115,961 | |
Designated as Hedging Instrument | |||
Asset Derivatives | |||
Asset Derivatives | [1] | 377,209 | 298,963 |
Liability Derivatives | |||
Liability Derivatives | [1] | 107,482 | 105,033 |
Notional Disclosures | |||
Carrying Amount of the Hedged Assets/(Liabilities) | 751,014 | 749,155 | |
Cumulative amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) | (33,274) | (34,813) | |
Not Designated as Hedging Instrument | |||
Asset Derivatives | |||
Asset Derivatives | 13,907 | 21,422 | |
Liability Derivatives | |||
Liability Derivatives | 10,635 | 10,928 | |
Interest rate swaps | Designated as Hedging Instrument | Other assets | |||
Asset Derivatives | |||
Asset Derivatives | [1] | 38,096 | 7,330 |
Interest rate swaps | Designated as Hedging Instrument | Other long-term liabilities | |||
Liability Derivatives | |||
Liability Derivatives | [1] | 47,251 | 46,509 |
Foreign currency forward contracts | Designated as Hedging Instrument | Other assets | |||
Asset Derivatives | |||
Asset Derivatives | [1] | 235,802 | 158,879 |
Foreign currency forward contracts | Designated as Hedging Instrument | Derivative financial instruments | |||
Asset Derivatives | |||
Asset Derivatives | [1] | 42,688 | 68,352 |
Liability Derivatives | |||
Liability Derivatives | [1] | 1,390 | 0 |
Foreign currency forward contracts | Designated as Hedging Instrument | Other long-term liabilities | |||
Liability Derivatives | |||
Liability Derivatives | [1] | 12,426 | 6,625 |
Foreign currency forward contracts | Not Designated as Hedging Instrument | Other assets | |||
Asset Derivatives | |||
Asset Derivatives | 4,413 | 2,793 | |
Foreign currency forward contracts | Not Designated as Hedging Instrument | Derivative financial instruments | |||
Asset Derivatives | |||
Asset Derivatives | 4,361 | 9,945 | |
Liability Derivatives | |||
Liability Derivatives | 2,369 | 2,933 | |
Foreign currency forward contracts | Not Designated as Hedging Instrument | Other long-term liabilities | |||
Liability Derivatives | |||
Liability Derivatives | 2,762 | 1,139 | |
Fuel swaps | Designated as Hedging Instrument | Other assets | |||
Asset Derivatives | |||
Asset Derivatives | [1] | 38,562 | 51,265 |
Fuel swaps | Designated as Hedging Instrument | Derivative financial instruments | |||
Asset Derivatives | |||
Asset Derivatives | [1] | 22,061 | 13,137 |
Liability Derivatives | |||
Liability Derivatives | [1] | 31,235 | 38,488 |
Fuel swaps | Designated as Hedging Instrument | Other long-term liabilities | |||
Liability Derivatives | |||
Liability Derivatives | [1] | 15,180 | 13,411 |
Fuel swaps | Not Designated as Hedging Instrument | Other assets | |||
Asset Derivatives | |||
Asset Derivatives | 303 | 798 | |
Fuel swaps | Not Designated as Hedging Instrument | Derivative financial instruments | |||
Asset Derivatives | |||
Asset Derivatives | 4,830 | 7,886 | |
Liability Derivatives | |||
Liability Derivatives | 5,320 | 6,043 | |
Fuel swaps | Not Designated as Hedging Instrument | Other long-term liabilities | |||
Liability Derivatives | |||
Liability Derivatives | $ 184 | $ 813 | |
[1] | Accounting Standard Codification 815-20 “Derivatives and Hedging.” |
Fair Value Measurements and D44
Fair Value Measurements and Derivative Instruments - Balance Sheet Hedging Instruments (Details) - Foreign currency debt - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments | ||
Carrying value of non-derivative instrument designated as hedging instrument | $ 370,260 | $ 295,323 |
Current portion of long-term debt | ||
Derivative Instruments | ||
Carrying value of non-derivative instrument designated as hedging instrument | 88,353 | 70,097 |
Long-term debt | ||
Derivative Instruments | ||
Carrying value of non-derivative instrument designated as hedging instrument | $ 281,907 | $ 225,226 |
Fair Value Measurements and D45
Fair Value Measurements and Derivative Instruments - Income Statement Hedging Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||
Fuel | $ 160,341 | $ 177,414 |
Depreciation and amortization | 240,230 | 235,749 |
Interest Income (Expense) | (60,145) | (74,065) |
Other expense | (757) | (2,611) |
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 7,810 | 13,812 |
Other expense | ||
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 7,810 | 13,752 |
Fuel swaps | Other expense | ||
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | (30) | (60) |
Fuel swaps | Fuel cost | ||
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 2,205 | 0 |
Foreign currency forward contracts | Other expense | ||
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 5,635 | 13,812 |
Fair Value Hedging | ||
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Recognized in Income on Hedged Item | 13,182 | 2,457 |
Amount of Gain (Loss) Recognized in Income on Derivative | (12,570) | (358) |
Fair Value Hedging | Interest Contracts | Interest expense, net of interest capitalized | ||
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Recognized in Income on Hedged Item | 13,182 | |
Amount of Gain (Loss) Recognized in Income on Derivative | (12,570) | 1,173 |
Fair Value Hedging | Interest Contracts | Other expense | ||
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Recognized in Income on Hedged Item | 2,457 | |
Amount of Gain (Loss) Recognized in Income on Derivative | (1,531) | |
Fair Value Hedging | Interest rate swaps | Interest expense, net of interest capitalized | ||
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Recognized in Income on Hedged Item | 13,182 | 0 |
Amount of Gain (Loss) Recognized in Income on Derivative | (12,570) | 1,173 |
Fair Value Hedging | Interest rate swaps | Other expense | ||
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Recognized in Income on Hedged Item | 0 | 2,457 |
Amount of Gain (Loss) Recognized in Income on Derivative | 0 | (1,531) |
Cash flow hedge | ||
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Effective Portion) | (14,914) | (53,390) |
Cash flow hedge | Interest Contracts | Interest expense, net of interest capitalized | ||
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Effective Portion) | (6,838) | (8,857) |
Cash flow hedge | Interest rate swaps | Interest expense, net of interest capitalized | ||
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Effective Portion) | (6,838) | (8,857) |
Cash flow hedge | Fuel swaps | Other expense | ||
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Effective Portion) | 325 | 2,277 |
Cash flow hedge | Fuel swaps | Fuel cost | ||
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Effective Portion) | (5,131) | (39,928) |
Cash flow hedge | Foreign exchange contracts | Depreciation and amortization expenses | ||
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Effective Portion) | (3,312) | (3,312) |
Cash flow hedge | Foreign currency forward contracts | Depreciation and amortization expenses | ||
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Effective Portion) | (3,312) | (2,710) |
Cash flow hedge | Foreign currency forward contracts | Other expense | ||
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Effective Portion) | $ 42 | $ (3,570) |
Fair Value Measurements and D46
Fair Value Measurements and Derivative Instruments - Designated Cash Flow Hedges (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Jan. 01, 2018 | |
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net [Abstract] | |||
Cash flow hedges, fair value | $ (8,861) | $ (11,335) | |
Change in fair value at March 31, 2018 | (2,474) | ||
Amount of gain recognized in income for the quarter ended March 31, 2018 | 744 | ||
Amount of gain recognized in accumulated other comprehensive loss | 1,730 | ||
Cash flow hedge | |||
Effect of derivative instruments involved in hedging on the consolidated financial statements | |||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivative (Effective Portion) | 127,616 | $ (30,929) | |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Effective Portion) | (14,914) | (53,390) | |
Cash flow hedge | Interest rate swaps | |||
Effect of derivative instruments involved in hedging on the consolidated financial statements | |||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivative (Effective Portion) | 37,191 | (2,489) | |
Cash flow hedge | Interest rate swaps | Interest expense, net of interest capitalized | |||
Effect of derivative instruments involved in hedging on the consolidated financial statements | |||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Effective Portion) | (6,838) | (8,857) | |
Cash flow hedge | Foreign currency forward contracts | |||
Effect of derivative instruments involved in hedging on the consolidated financial statements | |||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivative (Effective Portion) | 95,366 | 2,129 | |
Cash flow hedge | Foreign currency forward contracts | Depreciation and amortization expenses | |||
Effect of derivative instruments involved in hedging on the consolidated financial statements | |||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Effective Portion) | (3,312) | (2,710) | |
Cash flow hedge | Foreign currency forward contracts | Other expense | |||
Effect of derivative instruments involved in hedging on the consolidated financial statements | |||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Effective Portion) | 42 | (3,570) | |
Cash flow hedge | Foreign Currency Forward | |||
Effect of derivative instruments involved in hedging on the consolidated financial statements | |||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivative (Effective Portion) | 0 | 0 | |
Cash flow hedge | Foreign currency collar options | |||
Effect of derivative instruments involved in hedging on the consolidated financial statements | |||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivative (Effective Portion) | 0 | 0 | |
Cash flow hedge | Foreign currency collar options | Depreciation and amortization expenses | |||
Effect of derivative instruments involved in hedging on the consolidated financial statements | |||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Effective Portion) | 0 | (602) | |
Cash flow hedge | Fuel swaps | |||
Effect of derivative instruments involved in hedging on the consolidated financial statements | |||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivative (Effective Portion) | 0 | 0 | |
Cash flow hedge | Fuel swaps | Other expense | |||
Effect of derivative instruments involved in hedging on the consolidated financial statements | |||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Effective Portion) | 325 | 2,277 | |
Cash flow hedge | Fuel swaps | Fuel cost | |||
Effect of derivative instruments involved in hedging on the consolidated financial statements | |||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Effective Portion) | (5,131) | (39,928) | |
Cash flow hedge | Fuel Swap | |||
Effect of derivative instruments involved in hedging on the consolidated financial statements | |||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivative (Effective Portion) | $ (4,941) | $ (30,569) |
Fair Value Measurements and D47
Fair Value Measurements and Derivative Instruments - Non-Derivative Net Investment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Foreign currency debt | ||
Net investment hedge | ||
Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) | $ (8,244) | $ 4,369 |
Fair Value Measurements and D48
Fair Value Measurements and Derivative Instruments - Derivatives Not Designated as Hedging Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Derivative Instruments | ||
Amount of gain (loss) recognized in income on derivatives | $ 7,810 | $ 13,812 |
Other expense | ||
Derivative Instruments | ||
Amount of gain (loss) recognized in income on derivatives | 7,810 | 13,752 |
Foreign currency forward contracts | Other expense | ||
Derivative Instruments | ||
Amount of gain (loss) recognized in income on derivatives | 5,635 | 13,812 |
Fuel swaps | Other expense | ||
Derivative Instruments | ||
Amount of gain (loss) recognized in income on derivatives | (30) | (60) |
Fuel swaps | Fuel cost | ||
Derivative Instruments | ||
Amount of gain (loss) recognized in income on derivatives | $ 2,205 | $ 0 |
Fair Value Measurements and D49
Fair Value Measurements and Derivative Instruments - Credit Features (Details) | 3 Months Ended |
Mar. 31, 2018derivative | |
Derivative Instruments | |
Number of derivatives matured | 4 |
Moody's, Baa3 Rating | |
Derivative Instruments | |
Credit ratings for senior debt | Baa3 |
Standard & Poor's, BBB- Rating | Minimum | |
Derivative Instruments | |
Credit ratings for senior debt | BBB- |