Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 24, 2019 | |
Document and Entity Information | ||
Entity Registrant Name | ROYAL CARIBBEAN CRUISES LTD | |
Entity Central Index Key | 0000884887 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 209,647,874 | |
Document Fiscal Year Focus | 2019 | |
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, 2019 | Mar. 31, 2018 | |
Total revenues | $ 2,439,767 | $ 2,027,756 |
Cruise operating expenses: | ||
Total cruise operating expenses | 1,413,704 | 1,176,019 |
Marketing, selling and administrative expenses | 414,947 | 337,361 |
Depreciation and amortization expenses | 292,285 | 240,230 |
Operating Income | 318,831 | 274,146 |
Other income (expense): | ||
Interest income | 9,784 | 7,733 |
Interest expense, net of interest capitalized | (100,415) | (67,878) |
Equity investment income | 33,694 | 28,752 |
Other expense | (5,088) | (24,100) |
Total other income (expense) | (62,025) | (55,493) |
Net Income | 256,806 | 218,653 |
Less: Net Income attributable to noncontrolling interest | 7,125 | 0 |
Net Income attributable to Royal Caribbean Cruises Ltd. | $ 249,681 | $ 218,653 |
Earnings per Share: | ||
Basic (in dollars per share) | $ 1.19 | $ 1.03 |
Diluted (in dollars per share) | $ 1.19 | $ 1.02 |
Weighted-Average Shares Outstanding: | ||
Basic (in shares) | 209,322 | 212,610 |
Diluted (in shares) | 209,874 | 213,602 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | $ 564 | $ 1,160 |
Change in defined benefit plans | (653) | 7,760 |
Gain on cash flow derivative hedges | 48,843 | 142,530 |
Total other comprehensive income | 48,754 | 151,450 |
Comprehensive Income | 305,560 | 370,103 |
Less: Comprehensive Income attributable to noncontrolling interest | 7,125 | 0 |
Comprehensive Income attributable to Royal Caribbean Cruises Ltd. | 298,435 | 370,103 |
Passenger ticket revenues | ||
Total revenues | 1,709,984 | 1,425,644 |
Onboard and other revenues | ||
Total revenues | 729,783 | 602,112 |
Cruise operating expenses: | ||
Total cruise operating expenses | 135,170 | 99,537 |
Commissions, transportation and other | ||
Cruise operating expenses: | ||
Total cruise operating expenses | 363,155 | 290,609 |
Payroll and related | ||
Cruise operating expenses: | ||
Total cruise operating expenses | 269,532 | 227,156 |
Food | ||
Cruise operating expenses: | ||
Total cruise operating expenses | 139,534 | 119,642 |
Fuel | ||
Cruise operating expenses: | ||
Total cruise operating expenses | 160,171 | 160,341 |
Other operating | ||
Cruise operating expenses: | ||
Total cruise operating expenses | $ 346,142 | $ 278,734 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 248,197 | $ 287,852 |
Trade and other receivables, net | 374,982 | 324,507 |
Inventories | 157,939 | 153,573 |
Prepaid expenses and other assets | 491,553 | 456,547 |
Derivative financial instruments | 60,451 | 19,565 |
Total current assets | 1,333,122 | 1,242,044 |
Property and equipment, net | 23,641,251 | 23,466,163 |
Operating lease right-of-use assets | 777,551 | |
Goodwill | 1,378,362 | 1,378,353 |
Other assets | 1,589,763 | 1,611,710 |
Total assets | 28,720,049 | 27,698,270 |
Current liabilities | ||
Current portion of debt | 1,646,324 | 1,646,841 |
Commercial paper | 1,112,030 | 775,488 |
Current portion of operating lease liabilities | 88,497 | |
Accounts payable | 497,180 | 488,212 |
Accrued interest | 120,131 | 74,550 |
Accrued expenses and other liabilities | 823,097 | 899,761 |
Derivative financial instruments | 89,023 | 78,476 |
Customer deposits | 3,729,661 | 3,148,837 |
Total current liabilities | 8,105,943 | 7,112,165 |
Long-term debt | 7,526,330 | 8,355,370 |
Long-term operating lease liabilities | 708,371 | |
Other long-term liabilities | 560,690 | 583,254 |
Total liabilities | 16,901,334 | 16,050,789 |
Commitments and contingencies (Note 11) | ||
Redeemable noncontrolling interest | 549,645 | 542,020 |
Shareholders’ equity | ||
Preferred stock ($0.01 par value; 20,000,000 shares authorized; none outstanding) | 0 | 0 |
Common stock ($0.01 par value; 500,000,000 shares authorized; 236,380,544 and 235,847,683 shares issued, March 31, 2019 and December 31, 2018, respectively) | 2,364 | 2,358 |
Paid-in capital | 3,432,419 | 3,420,900 |
Retained earnings | 10,366,612 | 10,263,282 |
Accumulated other comprehensive loss | (578,980) | (627,734) |
Treasury stock (26,830,765 common shares at cost, at both March 31, 2019 and December 31, 2018) | (1,953,345) | (1,953,345) |
Total shareholders’ equity | 11,269,070 | 11,105,461 |
Total liabilities, redeemable noncontrolling interest and shareholders’ equity | $ 28,720,049 | $ 27,698,270 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
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) | 236,380,544 | 235,847,683 |
Treasury stock, common shares (in shares) | 26,830,765 | 26,830,765 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Operating Activities | |||
Net income | $ 256,806 | $ 218,653 | |
Adjustments: | |||
Depreciation and amortization | 292,285 | 240,230 | |
Impairment losses | 0 | 23,343 | |
Net deferred income tax expense (benefit) | 2,983 | (1,504) | |
Gain on derivative instruments not designated as hedges | (4,780) | (7,810) | |
Share-based compensation expense | 27,322 | 20,164 | |
Equity investment income | (33,694) | (28,752) | |
Amortization of debt issuance costs | 10,366 | 10,108 | |
Changes in operating assets and liabilities: | |||
Increase in trade and other receivables, net | (44,382) | (10,181) | |
(Increase) decrease in inventories | (4,366) | 567 | |
Increase in prepaid expenses and other assets | (12,323) | (89,725) | |
Increase in accounts payable | 8,843 | 110,467 | |
Increase in accrued interest | 45,581 | 42,919 | |
Decrease in accrued expenses and other liabilities | (68,688) | (109,136) | |
Increase in customer deposits | 580,735 | 477,878 | |
Dividends received from unconsolidated affiliates | [1] | 42,435 | 37,918 |
Other, net | (20,669) | (11,017) | |
Net cash provided by operating activities | 1,078,454 | 924,122 | |
Investing Activities | |||
Purchases of property and equipment | (470,116) | (1,720,232) | |
Cash received on settlement of derivative financial instruments | 5,803 | 64,487 | |
Cash paid on settlement of derivative financial instruments | (678) | 0 | |
Cash received on loans to unconsolidated affiliates | 11,824 | 13,953 | |
Other, net | 2,719 | (3,353) | |
Net cash used in investing activities | (450,448) | (1,645,145) | |
Financing Activities | |||
Debt proceeds | 316,810 | 2,544,737 | |
Debt issuance costs | (3,675) | (41,344) | |
Repayments of debt | (1,146,674) | (1,394,222) | |
Proceeds from issuance of commercial paper notes | 5,039,834 | 0 | |
Repayments of commercial paper notes | (4,711,208) | 0 | |
Purchases of treasury stock | 0 | (275,038) | |
Dividends paid | (146,817) | (127,840) | |
Proceeds from exercise of common stock options | 241 | 3,863 | |
Other, net | (16,192) | 1,697 | |
Net cash (used in) provided by financing activities | (667,681) | 711,853 | |
Effect of exchange rate changes on cash | 20 | 303 | |
Net decrease in cash and cash equivalents | (39,655) | (8,867) | |
Cash and cash equivalents at beginning of period | 287,852 | 120,112 | |
Cash and cash equivalents at end of period | 248,197 | 111,245 | |
Cash paid during the period for: | |||
Interest, net of amount capitalized | $ 37,103 | $ 16,953 | |
[1] | For the quarter ended March 31, 2019, amount includes a €50.0 million dividend from TUI Cruises, net of tax withholdings. |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Beginning balance at Dec. 31, 2017 | $ 10,702,303 | $ 2,352 | $ 3,390,117 | $ 9,022,405 | $ (334,265) | $ (1,378,306) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Activity related to employee stock plans | (57) | 5 | (62) | |||
Common stock dividends | (127,038) | (127,038) | ||||
Changes related to cash flow derivative hedges | 142,530 | 142,530 | ||||
Change in defined benefit plans | 7,760 | 7,760 | ||||
Foreign currency translation adjustments | 1,160 | 1,160 | ||||
Net Income attributable to Royal Caribbean Cruises Ltd. | 218,653 | 218,653 | ||||
Purchases of treasury stock | (275,039) | (275,039) | ||||
Ending balance at Mar. 31, 2018 | 10,646,796 | 2,357 | 3,390,055 | 9,090,544 | (182,815) | (1,653,345) |
Beginning balance at Dec. 31, 2017 | 10,702,303 | 2,352 | 3,390,117 | 9,022,405 | (334,265) | (1,378,306) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Purchases of treasury stock | (300,000) | |||||
Ending balance at Dec. 31, 2018 | 11,105,461 | 2,358 | 3,420,900 | 10,263,282 | (627,734) | (1,953,345) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Activity related to employee stock plans | 11,525 | 6 | 11,519 | |||
Common stock dividends | (146,351) | (146,351) | ||||
Changes related to cash flow derivative hedges | 48,843 | 48,843 | ||||
Change in defined benefit plans | (653) | (653) | ||||
Foreign currency translation adjustments | 564 | 564 | ||||
Net Income attributable to Royal Caribbean Cruises Ltd. | 249,681 | 249,681 | ||||
Ending balance at Mar. 31, 2019 | $ 11,269,070 | $ 2,364 | $ 3,432,419 | $ 10,366,612 | $ (578,980) | $ (1,953,345) |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |||
Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||||
Common stock dividends declared (in dollars per share) | $ 0.70 | $ 0.70 | $ 0.6 | $ 0.60 |
General
General | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | General Description of Business We are a global cruise company. As of March 31, 2019 , we control and operate four global cruise brands: Royal Caribbean International, Celebrity Cruises, Azamara Club Cruises and Silversea Cruises (collectively, our "Global Brands"). We also own a 50% joint venture interest in the German brand TUI Cruises and a 49% interest in the Spanish brand Pullmantur (collectively, our "Partner Brands"). We account for our investments in our Partner Brands under the equity method 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 items 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 these principles. 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, 2018 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 7 . Other Assets for further information regarding our variable interest entities. We consolidate the operating results of Silversea Cruises on a three -month reporting lag to allow for more timely preparation of our consolidated financial statements. No material events or other transactions involving Silversea Cruises have occurred from December 31, 2018 through March 31, 2019 that would require further disclosure or adjustment to our consolidated financial statements as of and for the quarter ended March 31, 2019 . 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, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Adoption of Accounting Pronouncements Leases On January 1, 2019, we adopted the guidance codified in Accounting Standard Codification ("ASC") 842, Leases , ("ASC 842") using the modified retrospective approach and elected the optional transition method, which allows entities to initially apply the standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Upon adoption, we applied the guidance to all existing leases. For leases with a term greater than 12 months, the new guidance requires the lease rights and obligations arising from the leasing arrangements, including operating leases, to be recognized as assets and liabilities on the balance sheet. Upon adoption of the new guidance, the most significant impact was the recognition of right-of-use assets and lease liabilities relating to operating leases in the amounts of $801.8 million and $820.5 million , respectively, reported within Operating lease right-of-use assets and Long-term operating lease liabilities, respectively, with the current portion of the liability reported within Current portion of operating lease liabilities , in our consolidated balance sheet as of January 1, 2019. Accounting for finance leases remained substantially unchanged and continues to be reported within Property and equipmen t, net and Long-term debt, with the current portion of the debt reported within Current portion of debt , in our consolidated balance sheets. There was no cumulative effect of applying the new standard and accordingly there was no adjustment to our retained earnings upon adoption. The comparative information presented has not been restated and continues to be reported under the accounting standards in effect for those periods. For further information on leases, refer to Note 9 . Leases . This guidance did not have a material impact to our consolidated statements of comprehensive income (loss), consolidated statements of cash flows and our debt-covenants calculations under our current agreements. |
Business Combination
Business Combination | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Business Combination | Business Combination On July 31, 2018, we acquired a 66.7% equity stake in Silversea Cruise Holding Ltd. ("Silversea Cruises"), an ultra-luxury and expedition cruise line with nine ships, from Silversea Cruises Group Ltd. ("SCG"). Silversea Cruises enhances our presence in the ultra-luxury and expedition markets and provides us with an opportunity to drive long-term capacity growth in these markets. The purchase price consisted of $1.02 billion in cash, net of assumed liabilities, and contingent consideration that can range from zero up to a maximum of approximately 472,000 shares of our common stock, and is payable upon achievement of certain 2019-2020 performance metrics by Silversea Cruises. The fair value of the contingent consideration at the acquisition date was $44.0 million and is recorded within Other long-term liabilities in our consolidated balance sheets. Changes in the fair value of the contingent consideration are recorded in our results of operations, if any, in the period of the change. Refer to Note 14 . Fair Value Measurements and Derivative Instruments for further information on the valuation of the contingent consideration. To finance a portion of the purchase price, we drew in full on a $700 million unsecured credit agreement and the remainder of the transaction consideration was financed through the use of our revolving credit facilities. We have accounted for this transaction under the provisions of ASC 805, Business Combinations. The purchase price for the Silversea Cruises acquisition was allocated based on estimates of the fair value of assets acquired and liabilities assumed at the acquisition date, with the excess allocated to goodwill. Goodwill is not deductible for tax purposes and consisted primarily of the opportunity to expand our cruise operations in strategic growth areas. For reporting purposes, we include Silversea Cruises’ results of operations on a three -month reporting lag from October 1, 2018 through December 31, 2018. We have included Silversea Cruises' balance sheet as of December 31, 2018 in our consolidated balance sheet as of March 31, 2019 . Refer to Note 1 . General for further information on this three -month reporting lag. Our purchase price allocation was final as of March 31, 2019. There were no measurement period adjustments recorded during the quarter ended March 31, 2019. Pro-forma financial results relating to the Silversea Cruises acquisition are not presented, as this acquisition was not material to our consolidated results of operations. |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2019 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets consist of finite and indefinite life assets and are reported within Other assets in our consolidated balance sheets. The following is a summary of our intangible assets as of March 31, 2019 and December 31, 2018 (in thousands): March 31, 2019 Gross Carrying Value Accumulated Amortization Net Carrying Value Finite-life intangible assets: Customer relationships $ 97,400 $ 2,706 $ 94,694 Galapagos operating license 47,669 4,553 43,116 Other finite-life intangible assets 11,560 2,408 9,152 Total finite-life intangible assets 156,629 9,667 146,962 Indefinite-life intangible assets 351,725 — 351,725 Total intangible assets, net $ 508,354 $ 9,667 $ 498,687 December 31, 2018 Gross Carrying Value Accumulated Amortization Net Carrying Value Finite-life intangible assets: Customer relationships $ 97,400 $ 1,082 $ 96,318 Galapagos operating license 47,669 4,206 43,463 Other finite-life intangible assets 11,560 963 10,597 Total finite-life intangible assets 156,629 6,251 150,378 Indefinite-life intangible assets 351,725 — 351,725 Total intangible assets, net $ 508,354 $ 6,251 $ 502,103 Amortization expense for finite-life intangible assets was immaterial for the quarters ended March 31, 2019 and March 31, 2018. The estimated future amortization for finite-life intangible assets for each of the next five years is as follows (in thousands): Year Remainder of 2019 $ 10,469 2020 $ 12,995 2021 $ 8,179 2022 $ 8,179 2023 $ 8,179 2024 $ 8,179 |
Revenues
Revenues | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | 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 generally range from two to 25 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 $152.0 million and $136.7 million for the quarters ended March 31, 2019 and 2018 , 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. Disaggregated Revenues The following table disaggregates our total revenues by geographic regions where we provide cruise itineraries (in thousands): Quarter Ended March 31, 2019 2018 Revenues by itinerary North America (1) $ 1,681,058 $ 1,347,260 Asia/Pacific (2) 490,075 532,979 Europe (3) 7,982 — Other regions (4) 162,505 77,185 Total revenues by itinerary 2,341,620 1,957,424 Other revenues (5) 98,147 70,332 Total revenues $ 2,439,767 $ 2,027,756 (1) Includes the United States, Canada, Mexico and the Caribbean. (2) Includes Southeast Asia (e.g., Singapore, Thailand and the Philippines), East Asia (e.g., China and Japan), South Asia (e.g., India and Pakistan) and Oceania (e.g., Australia and Fiji Islands) regions. (3) Includes European countries (e.g., Nordics, Germany, France, Italy, Spain and the United Kingdom). (4) Includes seasonality impacted itineraries primarily in South and Latin American countries. (5) Includes revenues primarily related to cancellation fees, vacation protection insurance, pre- and post-cruise tours and fees for operating certain port facilities. Amounts also include revenues related to our bareboat charter, procurement and management related services we perform on behalf of our unconsolidated affiliates. Refer to Note 7 . Other Assets for more information on our unconsolidated affiliates. Passenger ticket revenues are attributed to geographic areas based on where the reservation originates. For the quarters ended March 31, 2019 and 2018 , our guests were sourced from the following areas: Quarter Ended March 31, 2019 2018 Passenger ticket revenues: United States 66 % 60 % Australia 8 % 13 % All other countries (1) 26 % 27 % (1) No other individual country's revenue exceeded 10% for the quarters ended March 31, 2019 and 2018 . 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, Revenues from Contracts with Customers , 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 $2.2 billion and $1.9 billion as of March 31, 2019 and December 31, 2018 , respectively. Substantially all of our contract liabilities as of December 31, 2018 were recognized and reported within Total revenues in our consolidated statement of comprehensive income (loss) for the quarter ended March 31, 2019 . 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 sourced 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, 2019 and December 31, 2018 , our contract assets were $57.2 million and $57.8 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 were $182.9 million and $153.5 million as of March 31, 2019 and December 31, 2018 , respectively. Substantially all of our prepaid travel agent commissions at December 31, 2018 were expensed and reported within Commissions, transportation and other in our consolidated statements of comprehensive income (loss) for the quarter ended March 31, 2019 . |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 2018 Net Income attributable to Royal Caribbean Cruises Ltd. for basic and diluted earnings per share $ 249,681 $ 218,653 Weighted-average common shares outstanding 209,322 212,610 Dilutive effect of stock-based awards 552 992 Diluted weighted-average shares outstanding 209,874 213,602 Basic earnings per share $ 1.19 $ 1.03 Diluted earnings per share $ 1.19 $ 1.02 There were no antidilutive shares for the quarters ended March 31, 2019 and 2018 . |
Other Assets
Other Assets | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 , the net book value of our investment in TUI Cruises was $537.5 million , primarily consisting of $370.4 million in equity and a loan of €146.6 million , or approximately $164.6 million based on the exchange rate at March 31, 2019 . As of December 31, 2018 , the net book value of our investment in TUI Cruises was $578.1 million , primarily consisting of $403.0 million in equity and a loan of €150.6 million , or approximately $172.2 million based on the exchange rate at December 31, 2018 . 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, 2019 , the outstanding principal amount of the loan was €34.4 million , or approximately $38.6 million based on the exchange rate at March 31, 2019 . The loan amortizes quarterly and is currently secured by a first mortgage on Mein Schiff Herz . Based on current facts and circumstances, we do not believe potential obligations under our guarantee of this bank loan are probable. In addition to our guarantee of the bank loan, TUI Cruises has various ship construction and financing agreements which 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 May 2031. 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. We have determined that Pullmantur Holdings S.L. ("Pullmantur Holdings"), in which we have a 49% noncontrolling interest and Springwater Capital LLC has a 51% 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, 2019 and December 31, 2018 , our maximum exposure to loss in Pullmantur Holdings was $63.7 million and $58.5 million , respectively, 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 $16.8 million based on the exchange rate at March 31, 2019 . Proceeds of the facility, which were available to be drawn through December 2018 accrue interest at an interest rate of 6.5% per annum and are payable through 2022. An affiliate of Springwater Capital LLC has guaranteed repayment of 51% of the outstanding amounts under the facility. As of March 31, 2019 , €14.0 million , or approximately $15.7 million , based on the exchange rate at March 31, 2019 , was outstanding under this facility. As of December 31, 2018 , €14.0 million , or approximately $16.0 million , based on the exchange rate at December 31, 2018 , was outstanding under 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 quarters ended March 31, 2019 and 2018 , we made payments of $40.3 million and $22.3 million , respectively, 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, 2019 , the net book value of our investment in Grand Bahama was $64.1 million , consisting of $51.2 million in equity and a loan of $12.9 million . As of December 31, 2018 , the net book value of our investment in Grand Bahama was $56.1 million , consisting of $41.4 million in equity and a loan of $14.6 million . These amounts represent our maximum exposure to loss related to our investment in Grand Bahama. Our loan to Grand Bahama matures in March 2025 and bears interest at the lower of (i) LIBOR plus 3.50% and (ii) 5.50% . Interest payable on the loan is due on a semi-annual basis. During the quarters ended March 31, 2019 and 2018 , we received principal and interest payments of $6.6 million and $3.0 million , respectively. The loan balance is included within Other assets in our consolidated balance sheets. The loan is currently accruing interest under the effective yield method. 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, 2019 . In March 2018, we and Ctrip.com International Ltd. ("Ctrip") announced the decision to end the Skysea Holding International Ltd. ("Skysea Holding") venture in which we have a 36% ownership interest. As a result, we reviewed the recoverability of our investment in Skysea Holding and determined that our investment, debt facility and other receivables due from the brand were impaired and recognized an impairment charge of $23.3 million , which was included within Other expense in our consolidated statement of comprehensive income (loss) for the quarter ended March 31, 2018 . The charge reflected a full impairment of our investment in Skysea Holding and other receivables due to us and reduced the debt facility and the related accrued interest due to us from Skysea Holding to its net realizable value. In December 2018, the Golden Era, the ship operated by SkySea Cruises, and owned by a wholly-owned subsidiary of Skysea Holding, was sold to an affiliate of TUI AG. Proceeds from the sale were distributed to Ctrip and us, which eliminated our net receivable balance due from Skysea Holding, resulting in no further impairment charges. As of March 31, 2019 and December 31, 2018 , we do not have any material exposures to loss related to our investment in Skysea Holding. 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, 2019 2018 Share of equity income from investments $ 33,694 $ 28,752 Dividends received (1) $ 42,435 $ 37,918 (1) For the quarter ended March 31, 2019 , amount includes a €50.0 million dividend from TUI Cruises, net of tax withholdings. As of March 31, 2019 As of December 31, 2018 Total notes receivable due from equity investments $ 193,351 $ 201,979 Less-current portion (1) 19,681 19,075 Long-term portion (2) $ 173,670 $ 182,904 (1) Included within Trade and other receivables, net in our consolidated balance sheets. (2) Included within Other assets in our consolidated balance sheets. We also provide ship management services to TUI Cruises GmbH, Pullmantur Holdings and Skysea Holding (which ceased cruising operations in September 2018). 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, 2019 2018 Revenues $ 11,882 $ 14,073 Expenses $ 974 $ 3,638 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt In June 2018, we established a commercial paper program pursuant to which we may issue short-term unsecured notes from time to time in an aggregate amount of up to $1.2 billion . The interest rate for the commercial paper notes varies based on duration, market conditions and our credit ratings. The maturities of the commercial paper notes can vary, but cannot exceed 397 days from the date of issuance. We use the proceeds from our commercial paper notes for general corporate purposes. The commercial paper issued is backstopped by our revolving credit facilities. As of March 31, 2019 , we had $1.1 billion of commercial paper notes outstanding with a weighted average interest rate of 3.04% and a weighted average maturity of approximately 34 days. As of December 31, 2018 , we had $777.0 million of commercial paper notes outstanding with a weighted average interest rate of 3.19% and a weighted average maturity of approximately 23 days. In April 2019, we amended our $1.4 billion unsecured revolving credit facility due in 2020 to extend the termination date through April 2024 and increase the facility size to $1.7 billion . The interest rate and facility fee vary with our senior debt rating and are currently set at LIBOR plus 1.0% per annum and 0.125% per annum, respectively. These amendments did not result in the extinguishment of debt. In April 2019, we entered into and drew in full on an unsecured three -year term loan agreement in the amount of $1.0 billion . The loan accrues interest at a floating rate of LIBOR plus an applicable margin, which varies with our senior debt rating, and is currently 1.075% per annum. Proceeds of this loan were used to repay the $700 million 364 -day loan due July 2019 related to the acquisition of Silversea Cruises and the remaining balance of the unsecured term loan originally incurred in 2010 to purchase Allure of the Seas . The repayment of these loans resulted in a total loss on the extinguishment of debt of approximately $6.5 million , which will be recognized in the statement of comprehensive income (loss) subsequent to March 31, 2019 . In April 2019, we took delivery of Spectrum of the Seas . To finance the purchase, we borrowed $908.0 million under a previously committed unsecured term loan which is 95% guaranteed by Euler Hermes Deutschland AG, the official export credit agency of Germany. The loan amortizes semi-annually over 12 years and bears interest at a fixed rate of 3.45% per annum. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases Our operating leases primarily relate to preferred berthing arrangements, real estate and shipboard equipment and are included within Operating lease right-of-use assets , and Long-term operating lease liabilities with the current portion of the liability included within Current portion of operating lease liabilities in our consolidated balance sheet as of March 31, 2019 . Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet. We recognize lease expense for these leases on a straight-line basis over the lease term. Refer to Note 2 . Summary of Significant Accounting Policies , for further information on the adoption of ASC 842. Our finance leases primarily relate to two ships, Silver Whisper and Silver Explorer, operated by Silversea Cruises. Finance leases are included within Property and equipment, net and Long-term debt, with the current portion of the debt reported within Current portion of debt , in our consolidated balance sheets. The finance lease for Silver Whisper will expire in 2022, subject to an option to purchase the ship, and the finance lease for Silver Explorer will expire in 2021, subject to an option to extend the lease for up to an additional six years. For some of our real estate leases and berthing agreements, we do have the option to extend our current lease term. For those lease agreements with renewal options, the renewal periods for real estate leases range from one to 10 years and the renewal periods for berthing agreements range from one to 20 years. Generally, we do not include renewal options as a component of our present value calculation for berthing agreements. However, for certain real estate leases, we include them. Additionally, we do have a residual value guarantee associated with our lease of a terminal at PortMiami in Miami, Florida that approximates a percentage of cost of the asset as of the inception of the lease. We consider the possibility of incurring costs associated with the residual value guarantee to be remote. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate in determining the present value of lease payments. We estimate our incremental borrowing rates based on LIBOR and U.S. Treasury note rates corresponding to lease terms increased by the Company’s credit risk spread and reduced by the estimated impact of collateral. We used the incremental borrowing rate as of the adoption date for operating leases that commenced prior to that date. In addition, we have lease agreements with lease and non-lease components, which are generally accounted for separately. However, for berthing agreements, we account for the lease and non-lease components as a single lease component. 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 in 2016. We account for the bareboat charters of these vessels as operating leases for which we are the lessor. The remaining payments and term of these leases are immaterial to our consolidated financial statements. Supplemental balance sheet information for leases was as follows (in thousands): As of March 31, 2019 Lease assets: Finance lease right-of-use assets, net: Property and equipment, gross $ 246,682 Accumulated depreciation (39,882 ) Property and equipment, net 206,800 Operating lease right-of-use assets 777,551 Total lease assets $ 984,351 Lease liabilities: Finance lease liabilities: Current portion of debt $ 33,068 Long-term debt 94,127 Total finance lease liabilities 127,195 Operating lease liabilities: Current portion of operating lease liabilities 88,497 Long-term operating lease liabilities 708,371 Total operating lease liabilities 796,868 Total lease liabilities $ 924,063 The components of lease expense were as follows (in thousands): Consolidated Statement of Comprehensive Income (Loss) Classification Quarter Ended March 31, 2019 Lease costs: Operating lease costs Commission, transportation and other $ 19,056 Operating lease costs Other operating expenses 6,931 Operating lease costs Marketing, selling and administrative expenses 5,679 Financial lease costs: Amortization of right-of-use-assets Depreciation and amortization expenses 3,195 Interest on lease liabilities Interest expense, net of interest capitalized 596 Total lease costs $ 35,457 In addition, certain of our berth agreements include variable lease costs based on the number of passengers berthed. During the quarter ended March 31, 2019 , we had $34.3 million of variable lease costs recorded within Commission, transportation and other in our consolidated statement of comprehensive income (loss). Weighted average of the remaining lease terms and weighted average discount rates are as follows: As of March 31, 2019 Weighted average of the remaining lease term Operating leases 10.8 years Finance leases 3.6 years Weighted average discount rate Operating leases 4.6 % Finance leases 3.8 % Supplemental cash flow information related to leases is as follows (in thousands): Quarter Ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 31,981 Operating cash flows from finance leases $ 596 Financing cash flows from finance leases $ 3,606 As of March 31, 2019 , maturities related to lease liabilities were as follows (in thousands): Year Operating Leases Finance Leases Remainder of 2019 $ 95,927 $ 32,468 2020 126,959 36,334 2021 114,278 39,139 2022 107,885 16,097 2023 105,846 5,089 Thereafter 522,270 10,413 Total lease payments 1,073,165 139,540 Less: Interest (276,297 ) (12,345 ) Present value of lease liabilities $ 796,868 $ 127,195 Operating lease payments include $41.0 million related to options to extend lease terms that are reasonably certain of being exercised. Under ASC 840, Leases , future minimum lease payments under noncancelable operating leases as of December 31, 2018 were as follows (in thousands): Year 2019 $ 67,682 2020 64,237 2021 56,142 2022 52,759 2023 52,522 Thereafter 383,974 $ 677,316 |
Leases | Leases Our operating leases primarily relate to preferred berthing arrangements, real estate and shipboard equipment and are included within Operating lease right-of-use assets , and Long-term operating lease liabilities with the current portion of the liability included within Current portion of operating lease liabilities in our consolidated balance sheet as of March 31, 2019 . Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet. We recognize lease expense for these leases on a straight-line basis over the lease term. Refer to Note 2 . Summary of Significant Accounting Policies , for further information on the adoption of ASC 842. Our finance leases primarily relate to two ships, Silver Whisper and Silver Explorer, operated by Silversea Cruises. Finance leases are included within Property and equipment, net and Long-term debt, with the current portion of the debt reported within Current portion of debt , in our consolidated balance sheets. The finance lease for Silver Whisper will expire in 2022, subject to an option to purchase the ship, and the finance lease for Silver Explorer will expire in 2021, subject to an option to extend the lease for up to an additional six years. For some of our real estate leases and berthing agreements, we do have the option to extend our current lease term. For those lease agreements with renewal options, the renewal periods for real estate leases range from one to 10 years and the renewal periods for berthing agreements range from one to 20 years. Generally, we do not include renewal options as a component of our present value calculation for berthing agreements. However, for certain real estate leases, we include them. Additionally, we do have a residual value guarantee associated with our lease of a terminal at PortMiami in Miami, Florida that approximates a percentage of cost of the asset as of the inception of the lease. We consider the possibility of incurring costs associated with the residual value guarantee to be remote. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate in determining the present value of lease payments. We estimate our incremental borrowing rates based on LIBOR and U.S. Treasury note rates corresponding to lease terms increased by the Company’s credit risk spread and reduced by the estimated impact of collateral. We used the incremental borrowing rate as of the adoption date for operating leases that commenced prior to that date. In addition, we have lease agreements with lease and non-lease components, which are generally accounted for separately. However, for berthing agreements, we account for the lease and non-lease components as a single lease component. 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 in 2016. We account for the bareboat charters of these vessels as operating leases for which we are the lessor. The remaining payments and term of these leases are immaterial to our consolidated financial statements. Supplemental balance sheet information for leases was as follows (in thousands): As of March 31, 2019 Lease assets: Finance lease right-of-use assets, net: Property and equipment, gross $ 246,682 Accumulated depreciation (39,882 ) Property and equipment, net 206,800 Operating lease right-of-use assets 777,551 Total lease assets $ 984,351 Lease liabilities: Finance lease liabilities: Current portion of debt $ 33,068 Long-term debt 94,127 Total finance lease liabilities 127,195 Operating lease liabilities: Current portion of operating lease liabilities 88,497 Long-term operating lease liabilities 708,371 Total operating lease liabilities 796,868 Total lease liabilities $ 924,063 The components of lease expense were as follows (in thousands): Consolidated Statement of Comprehensive Income (Loss) Classification Quarter Ended March 31, 2019 Lease costs: Operating lease costs Commission, transportation and other $ 19,056 Operating lease costs Other operating expenses 6,931 Operating lease costs Marketing, selling and administrative expenses 5,679 Financial lease costs: Amortization of right-of-use-assets Depreciation and amortization expenses 3,195 Interest on lease liabilities Interest expense, net of interest capitalized 596 Total lease costs $ 35,457 In addition, certain of our berth agreements include variable lease costs based on the number of passengers berthed. During the quarter ended March 31, 2019 , we had $34.3 million of variable lease costs recorded within Commission, transportation and other in our consolidated statement of comprehensive income (loss). Weighted average of the remaining lease terms and weighted average discount rates are as follows: As of March 31, 2019 Weighted average of the remaining lease term Operating leases 10.8 years Finance leases 3.6 years Weighted average discount rate Operating leases 4.6 % Finance leases 3.8 % Supplemental cash flow information related to leases is as follows (in thousands): Quarter Ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 31,981 Operating cash flows from finance leases $ 596 Financing cash flows from finance leases $ 3,606 As of March 31, 2019 , maturities related to lease liabilities were as follows (in thousands): Year Operating Leases Finance Leases Remainder of 2019 $ 95,927 $ 32,468 2020 126,959 36,334 2021 114,278 39,139 2022 107,885 16,097 2023 105,846 5,089 Thereafter 522,270 10,413 Total lease payments 1,073,165 139,540 Less: Interest (276,297 ) (12,345 ) Present value of lease liabilities $ 796,868 $ 127,195 Operating lease payments include $41.0 million related to options to extend lease terms that are reasonably certain of being exercised. Under ASC 840, Leases , future minimum lease payments under noncancelable operating leases as of December 31, 2018 were as follows (in thousands): Year 2019 $ 67,682 2020 64,237 2021 56,142 2022 52,759 2023 52,522 Thereafter 383,974 $ 677,316 |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interest | 3 Months Ended |
Mar. 31, 2019 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interest | Redeemable Noncontrolling Interest In connection with the acquisition of Silversea Cruises, we recorded a redeemable noncontrolling interest of $537.8 million due to the put options held by SCG. The put options may require us to purchase SCG's remaining interest, or 33.3% of Silversea Cruises, upon the occurrence or nonoccurrence of certain future events that are not solely within our control. At the acquisition date, the estimated fair value of the redeemable noncontrolling interest was based on 33.3% of Silversea Cruises' equity value, which was determined based on the transaction price paid for 66.7% of Silversea Cruises. As of March 31, 2019 , SCG's interest is presented as Redeemable noncontrolling interest and is classified outside of shareholders' equity in our consolidated balance sheets. Additionally, the noncontrolling interest's share in the net earnings (loss) and contractual accretion requirements associated with the put options are included in Net Income attributable to noncontrolling interest in our consolidated statements of comprehensive income (loss). The following table presents changes in the redeemable noncontrolling interest as of March 31, 2019 (in thousands): Beginning balance January 1, 2019 $ 542,020 Net income attributable to noncontrolling interest, including the contractual accretion of the put options 7,125 Other 500 Ending balance March 31, 2019 $ 549,645 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 , 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 25,300 berths. As of March 31, 2019 , we have three Edge-class ships and a ship designed for the Galapagos Islands on order for our Celebrity Cruises brand with an aggregate capacity of approximately 9,400 berths. Additionally, as of March 31, 2019 , we have three ships on order for our Silversea Cruises brand with an aggregate capacity of approximately 1,200 berths. In September 2018, Silversea Cruises signed a memorandum of understanding with Meyer Werft (the "MOU") to build two ships of a new generation of ships. The ships are expected to have an aggregate capacity of approximately 1,200 berths and are expected to enter service in 2022 and 2023, respectively. The MOU with Meyer Werft was contingent upon the completion of final documentation, which was completed in April 2019. In February 2019, we entered into an agreement with Chantiers de l’Atlantique to build the sixth Oasis-class ship for Royal Caribbean International. The ship is expected to have an aggregate capacity of approximately 5,700 berths and is expected to enter service in the fourth quarter of 2023. The order with Chantiers de l’Atlantique is contingent upon completion of conditions precedent and financing, which is expected to be completed in 2019. In April 2019, we entered into an agreement with Chantiers de l’Atlantique to build the fifth Edge-class ship for Celebrity Cruises. The ship is expected to have an aggregate capacity of approximately 3,200 berths and is expected to enter service in the fourth quarter of 2024. The order with Chantiers de l’Atlantique is contingent upon completion of conditions precedent and financing. As of March 31, 2019 , the aggregate cost of our ships on order, not including any ships on order by our Partner Brands, and the two ships under the MOU for Silversea Cruises and the sixth Oasis-class ship for Royal Caribbean International that remain contingent upon the items discussed above, was $11.4 billion , of which we had deposited $667.8 million . Approximately 54.0% of the aggregate cost was exposed to fluctuations in the Euro exchange rate at March 31, 2019 . Refer to Note 14 . 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 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 our board of directors is no longer comprised of individuals who were members of our board of directors 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, 2019 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity During the first quarter of 2019 , we declared a cash dividend on our common stock of $0.70 per share, which was paid in April 2019 . During the first quarter of 2019 , we also paid a cash dividend on our common stock of $0.70 per share, which was declared during the fourth quarter of 2018. 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. In May 2018, our board of directors authorized a 24 -month common stock repurchase program for up to $1.0 billion . The timing and number of shares to be repurchased will depend on a variety of factors, including price and market conditions. Repurchases under the program may be made at management's discretion from time to time on the open market or through privately negotiated transactions. During the first quarter of 2019 , there were no common stock repurchases under this program. During the year ended December 31, 2018, we repurchased 2.8 million shares of our common stock under this program, for a total of $300.0 million , in open market transactions. As of March 31, 2019 , we have approximately $700.0 million that remains available for future stock repurchase transactions under our Board authorized program. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 and 2018 (in thousands): Accumulated Other Comprehensive Income (Loss) for the Quarter Ended March 31, 2019 Accumulated Other Comprehensive Income (Loss) for the Quarter Ended March 31, 2018 Changes related to cash flow derivative hedges Changes in defined benefit plans Foreign currency translation adjustments Accumulated other comprehensive loss Changes related to cash flow derivative hedges Changes in defined benefit plans Foreign currency translation adjustments Accumulated other comprehensive loss Accumulated comprehensive loss at beginning of the year $ (537,216 ) $ (26,023 ) $ (64,495 ) $ (627,734 ) $ (250,355 ) $ (33,666 ) $ (50,244 ) $ (334,265 ) Other comprehensive income (loss) before reclassifications 61,565 (841 ) 564 61,288 127,616 7,417 1,160 136,193 Amounts reclassified from accumulated other comprehensive loss (12,722 ) 188 — (12,534 ) 14,914 343 — 15,257 Net current-period other comprehensive income (loss) 48,843 (653 ) 564 48,754 142,530 7,760 1,160 151,450 Ending balance $ (488,373 ) $ (26,676 ) $ (63,931 ) $ (578,980 ) $ (107,825 ) $ (25,906 ) $ (49,084 ) $ (182,815 ) The following table presents reclassifications out of accumulated other comprehensive income (loss) for the quarters ended March 31, 2019 and 2018 (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, 2019 Quarter Ended March 31, 2018 Affected Line Item in Statements of Gain (loss) on cash flow derivative hedges: Interest rate swaps $ (391 ) $ (6,838 ) Interest expense, net of interest capitalized Foreign currency forward contracts (3,334 ) (3,312 ) Depreciation and amortization expenses Foreign currency forward contracts (1,315 ) 42 Other income (expense) Foreign currency collar options — — Depreciation and amortization expenses Fuel swaps (256 ) 325 Other income (expense) Fuel swaps 18,018 (5,131 ) Fuel 12,722 (14,914 ) Amortization of defined benefit plans: Actuarial loss (188 ) (343 ) Payroll and related (188 ) (343 ) Total reclassifications for the period $ 12,534 $ (15,257 ) |
Fair Value Measurements and Der
Fair Value Measurements and Derivative Instruments | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 Using Fair Value Measurements at December 31, 2018 Using Description Total Carrying Amount Total Fair Value Level 1 (1) Level 2 (2) Level 3 (3) Total Carrying Amount Total Fair Value Level 1 (1) Level 2 (2) Level 3 (3) Assets: Cash and cash equivalents (4) $ 248,197 $ 248,197 $ 248,197 $ — $ — $ 287,852 $ 287,852 $ 287,852 $ — $ — Total Assets $ 248,197 $ 248,197 $ 248,197 $ — $ — $ 287,852 $ 287,852 $ 287,852 $ — $ — Liabilities: Long-term debt (including current portion of debt) (5) $ 9,045,459 $ 9,581,920 $ — $ 9,581,920 $ — $ 9,871,267 $ 10,244,214 $ — $ 10,244,214 $ — Total Liabilities $ 9,045,459 $ 9,581,920 $ — $ 9,581,920 $ — $ 9,871,267 $ 10,244,214 $ — $ 10,244,214 $ — (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, 2019 and December 31, 2018 . (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. These amounts do not include our capital lease obligations or commercial paper. Other Financial Instruments The carrying amounts of accounts receivable, accounts payable, accrued interest, accrued expenses and commercial paper approximate fair value at March 31, 2019 and December 31, 2018 . 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, 2019 Using Fair Value Measurements at December 31, 2018 Using Description Total Level 1 (1) Level 2 (2) Level 3 (3) Total Level 1 (1) Level 2 (2) Level 3 (3) Assets: Derivative financial instruments (4) $ 119,082 $ — $ 119,082 $ — $ 65,297 $ — $ 65,297 $ — Total Assets $ 119,082 $ — $ 119,082 $ — $ 65,297 $ — $ 65,297 $ — Liabilities: Derivative financial instruments (5) $ 210,426 $ — $ 210,426 $ — $ 201,812 $ — $ 201,812 $ — Contingent consideration (6) 44,000 — — 44,000 44,000 — — 44,000 Total Liabilities $ 254,426 $ — $ 210,426 $ 44,000 $ 245,812 $ — $ 201,812 $ 44,000 (1) Inputs based on quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access. Valuation of these items does not entail a significant amount of judgment. (2) Inputs other than quoted prices included 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. Derivative instrument fair values take into account the creditworthiness of the counterparty and the Company. (3) Inputs that are unobservable. (4) Consists of foreign currency forward contracts, interest rate swaps and fuel swaps. Refer to the “Fair Value of Derivative Instruments” table for breakdown by instrument type. (5) Consists of foreign currency forward contracts, interest rate swaps and fuel swaps. Refer to the “Fair Value of Derivative Instruments” table for breakdown by instrument type. (6) The contingent consideration related to the Silversea Cruises acquisition was estimated by applying a Monte-Carlo simulation method using our closing stock price along with significant inputs not observable in the market, including the probability of achieving the milestones and estimated future operating results. The Monte-Carlo simulation is a generally accepted statistical technique used to generate a defined number of valuation paths in order to develop a reasonable estimate of fair value. Refer to Note 3. Business Combination for further information on the Silversea Cruises acquisition. 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, 2019 or December 31, 2018 , or that will be realized in the future, and do not include expenses that could be incurred in an actual sale or settlement. We have master International Swaps and Derivatives Association (“ISDA”) agreements in place with our derivative instrument counterparties. These ISDA agreements generally 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 (in thousands): Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements As of March 31, 2019 As of December 31, 2018 Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheet Gross Amount of Eligible Offsetting 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 Derivatives subject to master netting agreements $ 119,082 $ (100,198 ) $ — $ 18,884 $ 65,297 $ (60,303 ) $ — $ 4,994 Total $ 119,082 $ (100,198 ) $ — $ 18,884 $ 65,297 $ (60,303 ) $ — $ 4,994 The following table presents information about the Company’s offsetting of financial liabilities under master netting agreements with derivative counterparties (in thousands): Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements As of March 31, 2019 As of December 31, 2018 Gross Amount of Derivative 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 Derivatives subject to master netting agreements $ (210,426 ) $ 100,198 $ — $ (110,228 ) $ (201,812 ) $ 60,303 $ — $ (141,509 ) Total $ (210,426 ) $ 100,198 $ — $ (110,228 ) $ (201,812 ) $ 60,303 $ — $ (141,509 ) 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, 2019 and December 31, 2018 , we had counterparty credit risk exposure under our derivative instruments of $19.2 million and $5.6 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. Interest Rate Risk Our exposure to market risk for changes in interest rates primarily relates to our debt obligations including future interest payments. At March 31, 2019 and December 31, 2018 , approximately 61.3% and 59.1% , respectively, of our 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 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, 2019 and December 31, 2018 , we maintained interest rate swap agreements on the following fixed-rate debt instruments: Debt Instrument Swap Notional as of March 31, 2019 (In thousands) Maturity Debt Fixed Rate Swap Floating Rate: LIBOR plus All-in Swap Floating Rate as of March 31, 2019 Oasis of the Seas term loan $ 105,000 October 2021 5.41% 3.87% 6.63% Unsecured senior notes 650,000 November 2022 5.25% 3.63% 6.32% $ 755,000 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, 2019 and December 31, 2018 , we maintained interest rate swap agreements on the following floating-rate debt instruments: Debt Instrument Swap Notional as of March 31, 2019 (In thousands) Maturity Debt Floating Rate All-in Swap Fixed Rate Celebrity Reflection term loan $ 327,250 October 2024 LIBOR plus 0.40% 2.85% Quantum of the Seas term loan 490,000 October 2026 LIBOR plus 1.30% 3.74% Anthem of the Seas term loan 513,542 April 2027 LIBOR plus 1.30% 3.86% Ovation of the Seas term loan 657,083 April 2028 LIBOR plus 1.00% 3.16% Harmony of the Seas term loan (1) 616,242 May 2028 EURIBOR plus 1.15% 2.26% $ 2,604,117 (1) Interest rate swap agreements hedging the Euro-denominated term loan for Harmony of the Seas include EURIBOR zero-floor matching the hedged debt EURIBOR zero-floor. Amount presented is based on the exchange rate as of March 31, 2019 . 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 both March 31, 2019 and December 31, 2018 was $3.4 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, 2019 , the aggregate cost of our ships on order, not including any ships on order by our Partner Brands and the two ships under the MOU for Silversea Cruises and the sixth Oasis-class ship for Royal Caribbean International that remain contingent upon certain conditions precedent, was $11.4 billion , of which we had deposited $667.8 million as of such date. At March 31, 2019 and December 31, 2018 , approximately 54.0% and 53.5% , respectively, of the aggregate cost of the ships under construction was exposed to fluctuations in the Euro exchange rate. Our foreign currency forward contract agreements are accounted for as cash flow 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 and collar options 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 2019 , we maintained an average of approximately $663.6 million of these foreign currency forward contracts. These instruments are not designated as hedging instruments. For the quarters ended March 31, 2019 and 2018 , changes in the fair value of the foreign currency forward contracts resulted in a gain of $5.0 million and $5.6 million , respectively. These amounts were recognized in earnings within Other income (expense) in our consolidated statements of comprehensive income (loss). We consider our investments in our foreign operations to be denominated in relatively stable currencies and to be of a long-term nature. As of March 31, 2019 , 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 $113.4 million based on the exchange rate at March 31, 2019 . These forward currency contracts mature in October 2021. The notional amount of outstanding foreign exchange contracts, excluding the forward contracts entered into to minimize remeasurement volatility, as of both March 31, 2019 and December 31, 2018 was $3.7 billion . 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 €279.0 million , or approximately $313.2 million , as of March 31, 2019 . As of December 31, 2018 , we had designated debt as a hedge of our net investments in TUI Cruises of €280.0 million , or approximately $320.2 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 generally accounted for as cash flow hedges. At March 31, 2019 , we have hedged the variability in future cash flows for certain forecasted fuel transactions occurring through 2023 . As of March 31, 2019 and December 31, 2018 , we had the following outstanding fuel swap agreements: Fuel Swap Agreements As of March 31, 2019 As of December 31, 2018 (metric tons) 2019 648,400 856,800 2020 830,500 830,500 2021 488,900 488,900 2022 322,900 322,900 2023 — — Fuel Swap Agreements As of March 31, 2019 As of December 31, 2018 (% hedged) Projected fuel purchases: 2019 58 % 58 % 2020 54 % 54 % 2021 29 % 28 % 2022 18 % 19 % 2023 — % — % At March 31, 2019 , $45.9 million of estimated unrealized net gain (loss) associated with our cash flow hedges pertaining to fuel swap agreements is 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 (in thousands): Fair Value of Derivative Instruments Asset Derivatives Liability Derivatives Balance Sheet Location As of March 31, 2019 As of December 31, 2018 Balance Sheet Location As of March 31, 2019 As of December 31, 2018 Fair Value Fair Value Fair Value Fair Value Derivatives designated as hedging instruments under ASC 815-20 (1) Interest rate swaps Other assets $ 6,010 $ 23,518 Other long-term liabilities $ 43,351 $ 40,467 Foreign currency forward contracts Derivative financial instruments 6,605 4,044 Derivative financial instruments 80,989 39,665 Foreign currency forward contracts Other assets 5,838 10,844 Other long-term liabilities 58,929 16,854 Fuel swaps Derivative financial instruments 53,470 10,966 Derivative financial instruments 7,757 37,627 Fuel swaps Other assets 46,783 9,204 Other long-term liabilities 19,123 65,182 Total derivatives designated as hedging instruments under 815-20 118,706 58,576 210,149 199,795 Derivatives not designated as hedging instruments under ASC 815-20 Foreign currency forward contracts Derivative financial instruments $ — $ 1,751 Derivative financial instruments $ — $ 808 Foreign currency forward contracts Other assets — 1,579 Other long-term liabilities — 833 Fuel swaps Derivative financial instruments 376 2,804 Derivative financial instruments 277 376 Fuel swaps Other Assets — 587 Other long-term liabilities — — Total derivatives not designated as hedging instruments under 815-20 376 6,721 277 2,017 Total derivatives $ 119,082 $ 65,297 $ 210,426 $ 201,812 (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, 2019 Quarter Ended March 31, 2018 Fuel Expense Depreciation and Amortization Expenses Interest Income (Expense) Other Income (Expense) Fuel Expense Depreciation and Amortization Expenses Interest Income (Expense) Other Income (Expense) Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded $160,171 $292,285 $(90,631) $(5,088) $160,341 $240,230 $(60,145) $(24,100) The effects of fair value and cash flow hedging: Gain or (loss) on fair value hedging relationships in Subtopic 815-20 Interest contracts Hedged items n/a n/a $(8,459) $— n/a n/a 13,182 $— Derivatives designated as hedging instruments n/a n/a $(2,257) $— n/a n/a $(12,570) $— Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 Interest contracts Amount of gain or (loss) reclassified from accumulated other comprehensive income (loss) into income n/a n/a $(391) n/a n/a n/a $(6,838) n/a Commodity contracts Amount of gain or (loss) reclassified from accumulated other comprehensive income (loss) into income $18,018 n/a n/a $(256) $(5,131) n/a n/a $325 Foreign exchange contracts Amount of gain or (loss) reclassified from accumulated other comprehensive income (loss) into income n/a $(3,334) n/a $(1,315) n/a $(3,312) n/a $42 The carrying value and line item caption of non-derivative instruments designated as hedging instruments recorded within our consolidated balance sheets were as follows (in thousands): Carrying Value Non-derivative instrument designated as Balance Sheet Location As of March 31, 2019 As of December 31, 2018 Foreign currency debt Current portion of debt $ 73,536 $ 38,168 Foreign currency debt Long-term debt 239,669 281,984 $ 313,205 $ 320,152 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 (in thousands): 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, 2019 Quarter Ended March 31, 2018 Quarter Ended March 31, 2019 Quarter Ended March 31, 2018 Interest rate swaps Interest expense, net of interest capitalized $ (2,257 ) $ (12,570 ) $ (8,459 ) $ 13,182 Interest rate swaps Other income (expense) 8,092 — — — $ 5,835 $ (12,570 ) $ (8,459 ) $ 13,182 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 Position Where the Hedged Item is Included Carrying Amount of the Hedged Liabilities Cumulative amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liabilities As of March 31, 2019 As of December 31, 2018 As of March 31, 2019 As of December 31, 2018 Current portion of debt and Long-term debt $ 734,266 $ 725,486 $ (16,306 ) $ (24,766 ) $ 734,266 $ 725,486 $ (16,306 ) $ (24,766 ) The effect of derivative instruments qualifying and designated as cash flow hedging instruments on the consolidated financial statements was as follows (in thousands): Derivatives Amount of Gain (Loss) Recognized in Location of Amount of Gain (Loss) Reclassified from Quarter Ended March 31, 2019 Quarter Ended March 31, 2018 Quarter Ended March 31, 2019 Quarter Ended March 31, 2018 Interest rate swaps $ (28,329 ) $ 37,191 Interest expense, net of interest capitalized $ (391 ) $ (6,838 ) Foreign currency forward contracts (90,144 ) 95,366 Depreciation and amortization expenses (3,334 ) (3,312 ) Foreign currency forward contracts — — Other income (expense) (1,315 ) 42 Fuel swaps — — Other income (expense) (256 ) 325 Fuel swaps 180,038 (4,941 ) Fuel 18,018 (5,131 ) $ 61,565 $ 127,616 $ 12,722 $ (14,914 ) The table below represents amounts excluded from the assessment of effectiveness for our net investment hedging instruments for which the difference between changes in fair value and periodic amortization is recorded in accumulated other comprehensive income (loss) (in thousands): Gain (Loss) Recognized in Income (Net Investment Excluded Components) Three Months Ended March 31, 2019 Net inception fair value at January 1, 2019 $ (8,359 ) Amount of gain recognized in income on derivatives for the period ended March 31, 2019 744 Amount of loss remaining to be amortized in accumulated other comprehensive loss, as of March 31, 2019 (656 ) Fair value at March 31, 2019 $ (8,271 ) The effect of non-derivative instruments qualifying and designated as net investment hedging instruments on the consolidated financial statements was as follows (in thousands): Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) Non-derivative instruments under ASC 815-20 Net Quarter Ended March 31, 2019 Quarter Ended March 31, 2018 Foreign Currency Debt $ 5,702 $ (8,244 ) $ 5,702 $ (8,244 ) There was no amount recognized in income (ineffective portion and amount excluded from effectiveness testing) for the quarters ended March 31, 2019 and 2018 . The effect of derivatives not designated as hedging instruments on the consolidated financial statements was as follows (in thousands): Amount of Gain (Loss) Recognized in Income on Derivatives Derivatives Not Designated as Hedging Location of Quarter Ended March 31, 2019 Quarter Ended March 31, 2018 Foreign currency forward contracts Other income (expense) $ 5,014 $ 5,635 Fuel swaps Fuel (136 ) (30 ) Fuel swaps Other income (expense) (98 ) 2,205 $ 4,780 $ 7,810 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, 2019 , five of our interest rate derivative instruments had reached their fifth anniversary; however, our senior unsecured debt credit rating was Baa2 by Moody’s and BBB- by Standard & Poor’s and, accordingly, we were not required to post any collateral as of such date. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis for Preparation of Consolidated Financial Statements | 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 items 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 these principles. 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, 2018 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 7 . Other Assets for further information regarding our variable interest entities. We consolidate the operating results of Silversea Cruises on a three -month reporting lag to allow for more timely preparation of our consolidated financial statements. No material events or other transactions involving Silversea Cruises have occurred from December 31, 2018 through March 31, 2019 that would require further disclosure or adjustment to our consolidated financial statements as of and for the quarter ended March 31, 2019 . 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 | Adoption of Accounting Pronouncements Leases On January 1, 2019, we adopted the guidance codified in Accounting Standard Codification ("ASC") 842, Leases , ("ASC 842") using the modified retrospective approach and elected the optional transition method, which allows entities to initially apply the standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Upon adoption, we applied the guidance to all existing leases. For leases with a term greater than 12 months, the new guidance requires the lease rights and obligations arising from the leasing arrangements, including operating leases, to be recognized as assets and liabilities on the balance sheet. Upon adoption of the new guidance, the most significant impact was the recognition of right-of-use assets and lease liabilities relating to operating leases in the amounts of $801.8 million and $820.5 million , respectively, reported within Operating lease right-of-use assets and Long-term operating lease liabilities, respectively, with the current portion of the liability reported within Current portion of operating lease liabilities , in our consolidated balance sheet as of January 1, 2019. Accounting for finance leases remained substantially unchanged and continues to be reported within Property and equipmen t, net and Long-term debt, with the current portion of the debt reported within Current portion of debt , in our consolidated balance sheets. There was no cumulative effect of applying the new standard and accordingly there was no adjustment to our retained earnings upon adoption. The comparative information presented has not been restated and continues to be reported under the accounting standards in effect for those periods. For further information on leases, refer to Note 9 . Leases . This guidance did not have a material impact to our consolidated statements of comprehensive income (loss), consolidated statements of cash flows and our debt-covenants calculations under our current agreements. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Schedule of Intangible Assets | The following is a summary of our intangible assets as of March 31, 2019 and December 31, 2018 (in thousands): March 31, 2019 Gross Carrying Value Accumulated Amortization Net Carrying Value Finite-life intangible assets: Customer relationships $ 97,400 $ 2,706 $ 94,694 Galapagos operating license 47,669 4,553 43,116 Other finite-life intangible assets 11,560 2,408 9,152 Total finite-life intangible assets 156,629 9,667 146,962 Indefinite-life intangible assets 351,725 — 351,725 Total intangible assets, net $ 508,354 $ 9,667 $ 498,687 December 31, 2018 Gross Carrying Value Accumulated Amortization Net Carrying Value Finite-life intangible assets: Customer relationships $ 97,400 $ 1,082 $ 96,318 Galapagos operating license 47,669 4,206 43,463 Other finite-life intangible assets 11,560 963 10,597 Total finite-life intangible assets 156,629 6,251 150,378 Indefinite-life intangible assets 351,725 — 351,725 Total intangible assets, net $ 508,354 $ 6,251 $ 502,103 |
Finite-lived Intangible Asset Amortization Expense | The estimated future amortization for finite-life intangible assets for each of the next five years is as follows (in thousands): Year Remainder of 2019 $ 10,469 2020 $ 12,995 2021 $ 8,179 2022 $ 8,179 2023 $ 8,179 2024 $ 8,179 |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 2018 Revenues by itinerary North America (1) $ 1,681,058 $ 1,347,260 Asia/Pacific (2) 490,075 532,979 Europe (3) 7,982 — Other regions (4) 162,505 77,185 Total revenues by itinerary 2,341,620 1,957,424 Other revenues (5) 98,147 70,332 Total revenues $ 2,439,767 $ 2,027,756 (1) Includes the United States, Canada, Mexico and the Caribbean. (2) Includes Southeast Asia (e.g., Singapore, Thailand and the Philippines), East Asia (e.g., China and Japan), South Asia (e.g., India and Pakistan) and Oceania (e.g., Australia and Fiji Islands) regions. (3) Includes European countries (e.g., Nordics, Germany, France, Italy, Spain and the United Kingdom). (4) Includes seasonality impacted itineraries primarily in South and Latin American countries. (5) Includes revenues primarily related to cancellation fees, vacation protection insurance, pre- and post-cruise tours and fees for operating certain port facilities. Amounts also include revenues related to our bareboat charter, procurement and management related services we perform on behalf of our unconsolidated affiliates. Refer to Note 7 . Other Assets for more information on our unconsolidated affiliates. Passenger ticket revenues are attributed to geographic areas based on where the reservation originates. For the quarters ended March 31, 2019 and 2018 , our guests were sourced from the following areas: Quarter Ended March 31, 2019 2018 Passenger ticket revenues: United States 66 % 60 % Australia 8 % 13 % All other countries (1) 26 % 27 % (1) No other individual country's revenue exceeded 10% for the quarters ended March 31, 2019 and 2018 . |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 2018 Net Income attributable to Royal Caribbean Cruises Ltd. for basic and diluted earnings per share $ 249,681 $ 218,653 Weighted-average common shares outstanding 209,322 212,610 Dilutive effect of stock-based awards 552 992 Diluted weighted-average shares outstanding 209,874 213,602 Basic earnings per share $ 1.19 $ 1.03 Diluted earnings per share $ 1.19 $ 1.02 |
Other Assets (Tables)
Other Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 2018 Share of equity income from investments $ 33,694 $ 28,752 Dividends received (1) $ 42,435 $ 37,918 (1) For the quarter ended March 31, 2019 , amount includes a €50.0 million dividend from TUI Cruises, net of tax withholdings. |
Schedule of Related Party Transactions | 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, 2019 2018 Revenues $ 11,882 $ 14,073 Expenses $ 974 $ 3,638 As of March 31, 2019 As of December 31, 2018 Total notes receivable due from equity investments $ 193,351 $ 201,979 Less-current portion (1) 19,681 19,075 Long-term portion (2) $ 173,670 $ 182,904 (1) Included within Trade and other receivables, net in our consolidated balance sheets. (2) Included within Other assets in our consolidated balance sheets. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Schedule of Supplemental Balance Sheet Information | Supplemental balance sheet information for leases was as follows (in thousands): As of March 31, 2019 Lease assets: Finance lease right-of-use assets, net: Property and equipment, gross $ 246,682 Accumulated depreciation (39,882 ) Property and equipment, net 206,800 Operating lease right-of-use assets 777,551 Total lease assets $ 984,351 Lease liabilities: Finance lease liabilities: Current portion of debt $ 33,068 Long-term debt 94,127 Total finance lease liabilities 127,195 Operating lease liabilities: Current portion of operating lease liabilities 88,497 Long-term operating lease liabilities 708,371 Total operating lease liabilities 796,868 Total lease liabilities $ 924,063 |
Schedule of Lease Expense and Cash Flow Information | Supplemental cash flow information related to leases is as follows (in thousands): Quarter Ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 31,981 Operating cash flows from finance leases $ 596 Financing cash flows from finance leases $ 3,606 The components of lease expense were as follows (in thousands): Consolidated Statement of Comprehensive Income (Loss) Classification Quarter Ended March 31, 2019 Lease costs: Operating lease costs Commission, transportation and other $ 19,056 Operating lease costs Other operating expenses 6,931 Operating lease costs Marketing, selling and administrative expenses 5,679 Financial lease costs: Amortization of right-of-use-assets Depreciation and amortization expenses 3,195 Interest on lease liabilities Interest expense, net of interest capitalized 596 Total lease costs $ 35,457 |
Schedule of Lease Terms and Discount Rates | Weighted average of the remaining lease terms and weighted average discount rates are as follows: As of March 31, 2019 Weighted average of the remaining lease term Operating leases 10.8 years Finance leases 3.6 years Weighted average discount rate Operating leases 4.6 % Finance leases 3.8 % |
Schedule of Maturities, Operating Leases | As of March 31, 2019 , maturities related to lease liabilities were as follows (in thousands): Year Operating Leases Finance Leases Remainder of 2019 $ 95,927 $ 32,468 2020 126,959 36,334 2021 114,278 39,139 2022 107,885 16,097 2023 105,846 5,089 Thereafter 522,270 10,413 Total lease payments 1,073,165 139,540 Less: Interest (276,297 ) (12,345 ) Present value of lease liabilities $ 796,868 $ 127,195 Operating lease payments include $41.0 million related to options to extend lease terms that are reasonably certain of being exercised. Under ASC 840, Leases , future minimum lease payments under noncancelable operating leases as of December 31, 2018 were as follows (in thousands): Year 2019 $ 67,682 2020 64,237 2021 56,142 2022 52,759 2023 52,522 Thereafter 383,974 $ 677,316 |
Schedule of Maturities, Financial Leases | As of March 31, 2019 , maturities related to lease liabilities were as follows (in thousands): Year Operating Leases Finance Leases Remainder of 2019 $ 95,927 $ 32,468 2020 126,959 36,334 2021 114,278 39,139 2022 107,885 16,097 2023 105,846 5,089 Thereafter 522,270 10,413 Total lease payments 1,073,165 139,540 Less: Interest (276,297 ) (12,345 ) Present value of lease liabilities $ 796,868 $ 127,195 |
Redeemable Noncontrolling Int_2
Redeemable Noncontrolling Interest (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Noncontrolling Interest [Abstract] | |
Schedule of Redeemable Noncontrolling Interest | The following table presents changes in the redeemable noncontrolling interest as of March 31, 2019 (in thousands): Beginning balance January 1, 2019 $ 542,020 Net income attributable to noncontrolling interest, including the contractual accretion of the put options 7,125 Other 500 Ending balance March 31, 2019 $ 549,645 |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive (Loss) Income (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 and 2018 (in thousands): Accumulated Other Comprehensive Income (Loss) for the Quarter Ended March 31, 2019 Accumulated Other Comprehensive Income (Loss) for the Quarter Ended March 31, 2018 Changes related to cash flow derivative hedges Changes in defined benefit plans Foreign currency translation adjustments Accumulated other comprehensive loss Changes related to cash flow derivative hedges Changes in defined benefit plans Foreign currency translation adjustments Accumulated other comprehensive loss Accumulated comprehensive loss at beginning of the year $ (537,216 ) $ (26,023 ) $ (64,495 ) $ (627,734 ) $ (250,355 ) $ (33,666 ) $ (50,244 ) $ (334,265 ) Other comprehensive income (loss) before reclassifications 61,565 (841 ) 564 61,288 127,616 7,417 1,160 136,193 Amounts reclassified from accumulated other comprehensive loss (12,722 ) 188 — (12,534 ) 14,914 343 — 15,257 Net current-period other comprehensive income (loss) 48,843 (653 ) 564 48,754 142,530 7,760 1,160 151,450 Ending balance $ (488,373 ) $ (26,676 ) $ (63,931 ) $ (578,980 ) $ (107,825 ) $ (25,906 ) $ (49,084 ) $ (182,815 ) |
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, 2019 and 2018 (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, 2019 Quarter Ended March 31, 2018 Affected Line Item in Statements of Gain (loss) on cash flow derivative hedges: Interest rate swaps $ (391 ) $ (6,838 ) Interest expense, net of interest capitalized Foreign currency forward contracts (3,334 ) (3,312 ) Depreciation and amortization expenses Foreign currency forward contracts (1,315 ) 42 Other income (expense) Foreign currency collar options — — Depreciation and amortization expenses Fuel swaps (256 ) 325 Other income (expense) Fuel swaps 18,018 (5,131 ) Fuel 12,722 (14,914 ) Amortization of defined benefit plans: Actuarial loss (188 ) (343 ) Payroll and related (188 ) (343 ) Total reclassifications for the period $ 12,534 $ (15,257 ) |
Fair Value Measurements and D_2
Fair Value Measurements and Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 Using Fair Value Measurements at December 31, 2018 Using Description Total Carrying Amount Total Fair Value Level 1 (1) Level 2 (2) Level 3 (3) Total Carrying Amount Total Fair Value Level 1 (1) Level 2 (2) Level 3 (3) Assets: Cash and cash equivalents (4) $ 248,197 $ 248,197 $ 248,197 $ — $ — $ 287,852 $ 287,852 $ 287,852 $ — $ — Total Assets $ 248,197 $ 248,197 $ 248,197 $ — $ — $ 287,852 $ 287,852 $ 287,852 $ — $ — Liabilities: Long-term debt (including current portion of debt) (5) $ 9,045,459 $ 9,581,920 $ — $ 9,581,920 $ — $ 9,871,267 $ 10,244,214 $ — $ 10,244,214 $ — Total Liabilities $ 9,045,459 $ 9,581,920 $ — $ 9,581,920 $ — $ 9,871,267 $ 10,244,214 $ — $ 10,244,214 $ — (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, 2019 and December 31, 2018 . (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. These amounts do not include our capital lease obligations or commercial paper. |
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, 2019 Using Fair Value Measurements at December 31, 2018 Using Description Total Level 1 (1) Level 2 (2) Level 3 (3) Total Level 1 (1) Level 2 (2) Level 3 (3) Assets: Derivative financial instruments (4) $ 119,082 $ — $ 119,082 $ — $ 65,297 $ — $ 65,297 $ — Total Assets $ 119,082 $ — $ 119,082 $ — $ 65,297 $ — $ 65,297 $ — Liabilities: Derivative financial instruments (5) $ 210,426 $ — $ 210,426 $ — $ 201,812 $ — $ 201,812 $ — Contingent consideration (6) 44,000 — — 44,000 44,000 — — 44,000 Total Liabilities $ 254,426 $ — $ 210,426 $ 44,000 $ 245,812 $ — $ 201,812 $ 44,000 (1) Inputs based on quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access. Valuation of these items does not entail a significant amount of judgment. (2) Inputs other than quoted prices included 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. Derivative instrument fair values take into account the creditworthiness of the counterparty and the Company. (3) Inputs that are unobservable. (4) Consists of foreign currency forward contracts, interest rate swaps and fuel swaps. Refer to the “Fair Value of Derivative Instruments” table for breakdown by instrument type. (5) Consists of foreign currency forward contracts, interest rate swaps and fuel swaps. Refer to the “Fair Value of Derivative Instruments” table for breakdown by instrument type. (6) The contingent consideration related to the Silversea Cruises acquisition was estimated by applying a Monte-Carlo simulation method using our closing stock price along with significant inputs not observable in the market, including the probability of achieving the milestones and estimated future operating results. The Monte-Carlo simulation is a generally accepted statistical technique used to generate a defined number of valuation paths in order to develop a reasonable estimate of fair value. Refer to Note 3. Business Combination for further information on the Silversea Cruises acquisition. |
Offsetting Assets | The following table presents information about the Company’s offsetting of financial assets under master netting agreements with derivative counterparties (in thousands): Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements As of March 31, 2019 As of December 31, 2018 Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheet Gross Amount of Eligible Offsetting 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 Derivatives subject to master netting agreements $ 119,082 $ (100,198 ) $ — $ 18,884 $ 65,297 $ (60,303 ) $ — $ 4,994 Total $ 119,082 $ (100,198 ) $ — $ 18,884 $ 65,297 $ (60,303 ) $ — $ 4,994 |
Offsetting Liabilities | The following table presents information about the Company’s offsetting of financial liabilities under master netting agreements with derivative counterparties (in thousands): Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements As of March 31, 2019 As of December 31, 2018 Gross Amount of Derivative 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 Derivatives subject to master netting agreements $ (210,426 ) $ 100,198 $ — $ (110,228 ) $ (201,812 ) $ 60,303 $ — $ (141,509 ) Total $ (210,426 ) $ 100,198 $ — $ (110,228 ) $ (201,812 ) $ 60,303 $ — $ (141,509 ) |
Schedule of Price Risk Derivatives | As of March 31, 2019 and December 31, 2018 , we had the following outstanding fuel swap agreements: Fuel Swap Agreements As of March 31, 2019 As of December 31, 2018 (metric tons) 2019 648,400 856,800 2020 830,500 830,500 2021 488,900 488,900 2022 322,900 322,900 2023 — — Fuel Swap Agreements As of March 31, 2019 As of December 31, 2018 (% hedged) Projected fuel purchases: 2019 58 % 58 % 2020 54 % 54 % 2021 29 % 28 % 2022 18 % 19 % 2023 — % — % |
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 Position Where the Hedged Item is Included Carrying Amount of the Hedged Liabilities Cumulative amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liabilities As of March 31, 2019 As of December 31, 2018 As of March 31, 2019 As of December 31, 2018 Current portion of debt and Long-term debt $ 734,266 $ 725,486 $ (16,306 ) $ (24,766 ) $ 734,266 $ 725,486 $ (16,306 ) $ (24,766 ) The fair value and line item caption of derivative instruments recorded within our consolidated balance sheets were as follows (in thousands): Fair Value of Derivative Instruments Asset Derivatives Liability Derivatives Balance Sheet Location As of March 31, 2019 As of December 31, 2018 Balance Sheet Location As of March 31, 2019 As of December 31, 2018 Fair Value Fair Value Fair Value Fair Value Derivatives designated as hedging instruments under ASC 815-20 (1) Interest rate swaps Other assets $ 6,010 $ 23,518 Other long-term liabilities $ 43,351 $ 40,467 Foreign currency forward contracts Derivative financial instruments 6,605 4,044 Derivative financial instruments 80,989 39,665 Foreign currency forward contracts Other assets 5,838 10,844 Other long-term liabilities 58,929 16,854 Fuel swaps Derivative financial instruments 53,470 10,966 Derivative financial instruments 7,757 37,627 Fuel swaps Other assets 46,783 9,204 Other long-term liabilities 19,123 65,182 Total derivatives designated as hedging instruments under 815-20 118,706 58,576 210,149 199,795 Derivatives not designated as hedging instruments under ASC 815-20 Foreign currency forward contracts Derivative financial instruments $ — $ 1,751 Derivative financial instruments $ — $ 808 Foreign currency forward contracts Other assets — 1,579 Other long-term liabilities — 833 Fuel swaps Derivative financial instruments 376 2,804 Derivative financial instruments 277 376 Fuel swaps Other Assets — 587 Other long-term liabilities — — Total derivatives not designated as hedging instruments under 815-20 376 6,721 277 2,017 Total derivatives $ 119,082 $ 65,297 $ 210,426 $ 201,812 (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, 2019 Quarter Ended March 31, 2018 Fuel Expense Depreciation and Amortization Expenses Interest Income (Expense) Other Income (Expense) Fuel Expense Depreciation and Amortization Expenses Interest Income (Expense) Other Income (Expense) Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded $160,171 $292,285 $(90,631) $(5,088) $160,341 $240,230 $(60,145) $(24,100) The effects of fair value and cash flow hedging: Gain or (loss) on fair value hedging relationships in Subtopic 815-20 Interest contracts Hedged items n/a n/a $(8,459) $— n/a n/a 13,182 $— Derivatives designated as hedging instruments n/a n/a $(2,257) $— n/a n/a $(12,570) $— Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 Interest contracts Amount of gain or (loss) reclassified from accumulated other comprehensive income (loss) into income n/a n/a $(391) n/a n/a n/a $(6,838) n/a Commodity contracts Amount of gain or (loss) reclassified from accumulated other comprehensive income (loss) into income $18,018 n/a n/a $(256) $(5,131) n/a n/a $325 Foreign exchange contracts Amount of gain or (loss) reclassified from accumulated other comprehensive income (loss) into income n/a $(3,334) n/a $(1,315) n/a $(3,312) n/a $42 |
Fair Value and Line Item Caption of Non-derivative Instruments | The carrying value and line item caption of non-derivative instruments designated as hedging instruments recorded within our consolidated balance sheets were as follows (in thousands): Carrying Value Non-derivative instrument designated as Balance Sheet Location As of March 31, 2019 As of December 31, 2018 Foreign currency debt Current portion of debt $ 73,536 $ 38,168 Foreign currency debt Long-term debt 239,669 281,984 $ 313,205 $ 320,152 |
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 (in thousands): Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) Non-derivative instruments under ASC 815-20 Net Quarter Ended March 31, 2019 Quarter Ended March 31, 2018 Foreign Currency Debt $ 5,702 $ (8,244 ) $ 5,702 $ (8,244 ) |
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 (in thousands): Amount of Gain (Loss) Recognized in Income on Derivatives Derivatives Not Designated as Hedging Location of Quarter Ended March 31, 2019 Quarter Ended March 31, 2018 Foreign currency forward contracts Other income (expense) $ 5,014 $ 5,635 Fuel swaps Fuel (136 ) (30 ) Fuel swaps Other income (expense) (98 ) 2,205 $ 4,780 $ 7,810 |
Fair Value Hedging | |
Derivative Instruments | |
Schedule of Interest Rate Derivatives | At March 31, 2019 and December 31, 2018 , we maintained interest rate swap agreements on the following fixed-rate debt instruments: Debt Instrument Swap Notional as of March 31, 2019 (In thousands) Maturity Debt Fixed Rate Swap Floating Rate: LIBOR plus All-in Swap Floating Rate as of March 31, 2019 Oasis of the Seas term loan $ 105,000 October 2021 5.41% 3.87% 6.63% Unsecured senior notes 650,000 November 2022 5.25% 3.63% 6.32% $ 755,000 |
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 (in thousands): 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, 2019 Quarter Ended March 31, 2018 Quarter Ended March 31, 2019 Quarter Ended March 31, 2018 Interest rate swaps Interest expense, net of interest capitalized $ (2,257 ) $ (12,570 ) $ (8,459 ) $ 13,182 Interest rate swaps Other income (expense) 8,092 — — — $ 5,835 $ (12,570 ) $ (8,459 ) $ 13,182 |
Cash flow hedge | |
Derivative Instruments | |
Schedule of Interest Rate Derivatives | At March 31, 2019 and December 31, 2018 , we maintained interest rate swap agreements on the following floating-rate debt instruments: Debt Instrument Swap Notional as of March 31, 2019 (In thousands) Maturity Debt Floating Rate All-in Swap Fixed Rate Celebrity Reflection term loan $ 327,250 October 2024 LIBOR plus 0.40% 2.85% Quantum of the Seas term loan 490,000 October 2026 LIBOR plus 1.30% 3.74% Anthem of the Seas term loan 513,542 April 2027 LIBOR plus 1.30% 3.86% Ovation of the Seas term loan 657,083 April 2028 LIBOR plus 1.00% 3.16% Harmony of the Seas term loan (1) 616,242 May 2028 EURIBOR plus 1.15% 2.26% $ 2,604,117 (1) Interest rate swap agreements hedging the Euro-denominated term loan for Harmony of the Seas include EURIBOR zero-floor matching the hedged debt EURIBOR zero-floor. Amount presented is based on the exchange rate as of March 31, 2019 . |
Derivative Instruments, Gain (Loss) | The table below represents amounts excluded from the assessment of effectiveness for our net investment hedging instruments for which the difference between changes in fair value and periodic amortization is recorded in accumulated other comprehensive income (loss) (in thousands): Gain (Loss) Recognized in Income (Net Investment Excluded Components) Three Months Ended March 31, 2019 Net inception fair value at January 1, 2019 $ (8,359 ) Amount of gain recognized in income on derivatives for the period ended March 31, 2019 744 Amount of loss remaining to be amortized in accumulated other comprehensive loss, as of March 31, 2019 (656 ) Fair value at March 31, 2019 $ (8,271 ) The effect of derivative instruments qualifying and designated as cash flow hedging instruments on the consolidated financial statements was as follows (in thousands): Derivatives Amount of Gain (Loss) Recognized in Location of Amount of Gain (Loss) Reclassified from Quarter Ended March 31, 2019 Quarter Ended March 31, 2018 Quarter Ended March 31, 2019 Quarter Ended March 31, 2018 Interest rate swaps $ (28,329 ) $ 37,191 Interest expense, net of interest capitalized $ (391 ) $ (6,838 ) Foreign currency forward contracts (90,144 ) 95,366 Depreciation and amortization expenses (3,334 ) (3,312 ) Foreign currency forward contracts — — Other income (expense) (1,315 ) 42 Fuel swaps — — Other income (expense) (256 ) 325 Fuel swaps 180,038 (4,941 ) Fuel 18,018 (5,131 ) $ 61,565 $ 127,616 $ 12,722 $ (14,914 ) |
General (Details)
General (Details) | Mar. 31, 2019brand |
Schedule of Equity Method Investments [Line Items] | |
Number of cruise brands | 4 |
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% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) $ in Thousands | Mar. 31, 2019USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Operating lease right-of-use assets | $ 777,551 |
Lease liabilities | 796,868 |
Accounting Standards Update 2016-02 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Operating lease right-of-use assets | 801,800 |
Lease liabilities | $ 820,500 |
Business Combination (Details)
Business Combination (Details) - Silversea Cruises | Jul. 31, 2018USD ($)ship | Jul. 31, 2018USD ($)shipshares |
Business Acquisition [Line Items] | ||
Percentage of interests acquired | 66.70% | 66.70% |
Number of cruise ships acquired | ship | 9 | 9 |
Payments to acquire business | $ 1,020,000,000 | |
Contingent consideration | 44,000,000 | $ 44,000,000 |
Silversea Cruises | ||
Business Acquisition [Line Items] | ||
Long-term debt | $ 700,000,000 | $ 700,000,000 |
Minimum | ||
Business Acquisition [Line Items] | ||
Contingent consideration, shares (in shares) | shares | 0 | |
Maximum | ||
Business Acquisition [Line Items] | ||
Contingent consideration, shares (in shares) | shares | 472,000 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-life intangible assets, gross carrying value | $ 156,629 | $ 156,629 |
Accumulated Amortization | 9,667 | 6,251 |
Finite-life intangible assets, net carrying value | 146,962 | 150,378 |
Indefinite-life intangible assets | 351,725 | 351,725 |
Gross Carrying Value | 508,354 | 508,354 |
Net Carrying Value | 498,687 | 502,103 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-life intangible assets, gross carrying value | 97,400 | 97,400 |
Accumulated Amortization | 2,706 | 1,082 |
Finite-life intangible assets, net carrying value | 94,694 | 96,318 |
Galapagos operating license | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-life intangible assets, gross carrying value | 47,669 | 47,669 |
Accumulated Amortization | 4,553 | 4,206 |
Finite-life intangible assets, net carrying value | 43,116 | 43,463 |
Other finite-life intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-life intangible assets, gross carrying value | 11,560 | 11,560 |
Accumulated Amortization | 2,408 | 963 |
Finite-life intangible assets, net carrying value | $ 9,152 | $ 10,597 |
Intangible Assets - Finite-live
Intangible Assets - Finite-lived Intangible Assets Amortization Expense (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Remainder of 2019 | $ 10,469 |
2020 | 12,995 |
2021 | 8,179 |
2022 | 8,179 |
2023 | 8,179 |
2024 | $ 8,179 |
Revenues - Narrative (Details)
Revenues - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Capitalized Contract Cost [Line Items] | |||
Passenger ticket revenues | $ 2,439,767 | $ 2,027,756 | |
Contract liability | 2,200,000 | $ 1,900,000 | |
Contract asset | 57,200 | 57,800 | |
Commission, transportation and other | |||
Capitalized Contract Cost [Line Items] | |||
Prepaid travel agent commissions | $ 182,900 | $ 153,500 | |
Minimum | |||
Capitalized Contract Cost [Line Items] | |||
Length of cruise | 2 days | ||
Maximum | |||
Capitalized Contract Cost [Line Items] | |||
Length of cruise | 25 days | ||
Port Costs | |||
Capitalized Contract Cost [Line Items] | |||
Passenger ticket revenues | $ 152,000 | $ 136,700 |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 2,439,767 | $ 2,027,756 | |
Cruise Itinerary | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 2,341,620 | 1,957,424 | |
Cruise Itinerary | North America | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | [1] | 1,681,058 | 1,347,260 |
Cruise Itinerary | Asia Pacific | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | [2] | 490,075 | 532,979 |
Cruise Itinerary | Europe | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | [3] | 7,982 | 0 |
Cruise Itinerary | Other regions | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | [4] | 162,505 | 77,185 |
Other Revenues | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | [5] | $ 98,147 | $ 70,332 |
Passenger Ticket | Other regions | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of revenues by country | [6] | 26.00% | 27.00% |
Passenger Ticket | United States | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of revenues by country | 66.00% | 60.00% | |
Passenger Ticket | Australia | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of revenues by country | 8.00% | 13.00% | |
[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). | ||
[4] | Includes seasonality impacted itineraries primarily in South and Latin American countries. | ||
[5] | Includes revenues primarily related to cancellation fees, vacation protection insurance, pre- and post-cruise tours and fees for operating certain port facilities. Amounts also include revenues related to our bareboat charter, procurement and management related services we perform on behalf of our unconsolidated affiliates. Refer to Note 7. Other Assets for more information on our unconsolidated affiliates. | ||
[6] | No other individual country's revenue exceeded 10% for the quarters ended March 31, 2019 and 2018. |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Net Income attributable to Royal Caribbean Cruises Ltd. for basic and diluted earnings per share | $ 249,681 | $ 218,653 |
Weighted-average common shares outstanding (in shares) | 209,322,000 | 212,610,000 |
Dilutive effect of stock-based awards and stock options (in shares) | 552,000 | 992,000 |
Diluted weighted-average shares outstanding (in shares) | 209,874,000 | 213,602,000 |
Basic earnings per share (in dollars per share) | $ 1.19 | $ 1.03 |
Diluted earnings per share (in dollars per share) | $ 1.19 | $ 1.02 |
Antidilutive securities (in shares) | 0 | 0 |
Other Assets - Narrative (Detai
Other Assets - Narrative (Details) $ in Thousands, € in Millions | 1 Months Ended | 3 Months Ended | ||||
Apr. 30, 2016 | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2019EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2018EUR (€) | |
Other Assets | ||||||
Proceeds from collection of advance to affiliate | $ 11,824 | $ 13,953 | ||||
TUI Cruises GmbH joint venture | ||||||
Other Assets | ||||||
Percentage of ownership interest | 50.00% | 50.00% | ||||
Investments in entity | $ 537,500 | $ 578,100 | ||||
Underlying equity in net assets | 370,400 | 403,000 | ||||
Advances to affiliate | $ 164,600 | € 146.6 | 172,200 | € 150.6 | ||
Debt, guaranteed percentage | 50.00% | |||||
Additional amount outstanding on line of credit provided to TUI Cruises | $ 38,600 | € 34.4 | ||||
TUI Cruises GmbH joint venture | TUI cruise ships | ||||||
Other Assets | ||||||
Restriction on reduction of current ownership interest (as a percent) | 37.55% | 37.55% | ||||
TUI Cruises GmbH joint venture | Splendour of the Seas | ||||||
Other Assets | ||||||
Long term debt, term | 10 years | |||||
Pullmantur and CDF Croisieres de France | ||||||
Other Assets | ||||||
Percentage of ownership interest | 49.00% | 49.00% | ||||
Advances to affiliate | $ 16,800 | € 15 | ||||
Interest rate on loan provided to related party (as a percent) | 6.50% | 6.50% | ||||
Debt, guaranteed percentage | 51.00% | |||||
Retained ownership percentage of subsidiary after sale | 49.00% | |||||
Maximum loss exposure | $ 63,700 | 58,500 | ||||
Proceeds from credit facility | $ 15,700 | € 14 | 16,000 | € 14 | ||
Percentage of subsidiary which has been sold | 51.00% | 51.00% | ||||
Grand Bahamas Shipyard Ltd. | ||||||
Other Assets | ||||||
Proceeds from collection of advance to affiliate | $ 6,600 | 3,000 | ||||
Grand Bahamas Shipyard Ltd. | Not Primary Beneficiary | ||||||
Other Assets | ||||||
Percentage of ownership interest | 40.00% | 40.00% | ||||
Investments in entity | $ 64,100 | 56,100 | ||||
Underlying equity in net assets | 51,200 | 41,400 | ||||
Related party transaction, payment amount for ship repair and maintenance | 40,300 | 22,300 | ||||
Grand Bahamas Shipyard Ltd. | Not Primary Beneficiary | Non-accrual status of advances to affiliates | ||||||
Other Assets | ||||||
Advances to affiliate | $ 12,900 | $ 14,600 | ||||
Interest rate on loan provided to related party (as a percent) | 5.50% | 5.50% | ||||
Grand Bahamas Shipyard Ltd. | Not Primary Beneficiary | Non-accrual status of advances to affiliates | LIBOR | ||||||
Other Assets | ||||||
Debt instrument, basis spread on variable rate | 3.50% | |||||
Skysea Holding | ||||||
Other Assets | ||||||
Impairment charge | $ 23,300 | |||||
Skysea Holding | Not Primary Beneficiary | ||||||
Other Assets | ||||||
Percentage of ownership interest | 36.00% | |||||
Splendour of the Seas | TUI Cruises GmbH joint venture | ||||||
Other Assets | ||||||
Interest rate on loan provided to related party (as a percent) | 6.25% | |||||
Debt, guaranteed percentage | 50.00% | |||||
Springwater Capital LLC | Pullmantur and CDF Croisieres de France | ||||||
Other Assets | ||||||
Percentage of ownership interest | 51.00% | 51.00% |
Other Assets - Share of Equity
Other Assets - Share of Equity Income From Investments (Details) $ in Thousands, € in Millions | 3 Months Ended | |||
Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2018EUR (€) | ||
Schedule of Investments [Line Items] | ||||
Share of equity income from investments | $ 33,694 | $ 28,752 | ||
Dividends received (1) | [1] | $ 42,435 | $ 37,918 | |
TUI Cruises | ||||
Schedule of Investments [Line Items] | ||||
Dividends received (1) | € | [1] | € 50 | ||
[1] | For the quarter ended March 31, 2019, amount includes a €50.0 million dividend from TUI Cruises, net of tax withholdings. |
Other Assets - Notes Receivable
Other Assets - Notes Receivable Due From Equity Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Total notes receivable due from equity investments | $ 193,351 | $ 201,979 | |
Less-current portion | [1] | 19,681 | 19,075 |
Long-term portion | [2] | $ 173,670 | $ 182,904 |
[1] | Included within Trade and other receivables, net in our consolidated balance sheets. | ||
[2] | Included within Other assets in our consolidated balance sheets. |
Other Assets - Related Party Tr
Other Assets - Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Other Assets [Abstract] | ||
Revenues | $ 11,882 | $ 14,073 |
Expenses | $ 974 | $ 3,638 |
Debt (Details)
Debt (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
May 01, 2019 | Apr. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2019 | Dec. 31, 2018 | |
Long-Term Debt | |||||
Short-term debt amount outstanding | $ 1,200,000,000 | ||||
Commercial Paper | |||||
Long-Term Debt | |||||
Borrowings outstanding | $ 1,100,000,000 | $ 777,000,000 | |||
Weighted average interest rate | 3.04% | 3.19% | |||
Long term debt, term | 34 days | 23 days | |||
$1.4 billion Unsecured Revolving Credit Facility | Revolving Credit Facility | |||||
Long-Term Debt | |||||
Long-term debt | $ 1,400,000,000 | ||||
Facility fee | 0.125% | ||||
Subsequent Event | Loans Payable | |||||
Long-Term Debt | |||||
Loss on debt extinguishment | $ 6,500,000 | ||||
Subsequent Event | $1.4 billion Unsecured Revolving Credit Facility | Revolving Credit Facility | |||||
Long-Term Debt | |||||
Long-term debt | $ 1,700,000,000 | ||||
Subsequent Event | Term Loan | Loans Payable | |||||
Long-Term Debt | |||||
Long term debt, term | 3 years | ||||
Long-term debt | $ 1,000,000,000 | ||||
Subsequent Event | Silversea Cruises | |||||
Long-Term Debt | |||||
Long-term debt | $ 700,000,000 | ||||
Subsequent Event | Novation Agreement | Unsecured Debt | |||||
Long-Term Debt | |||||
Long term debt, term | 12 years | ||||
Unsecured debt | $ 908,000,000 | ||||
Interest rate | 3.45% | ||||
LIBOR | $1.4 billion Unsecured Revolving Credit Facility | Revolving Credit Facility | |||||
Long-Term Debt | |||||
Debt instrument, basis spread on variable rate | 1.00% | ||||
LIBOR | Subsequent Event | Term Loan | Loans Payable | |||||
Long-Term Debt | |||||
Debt instrument, basis spread on variable rate | 1.075% | ||||
Euler Hermes | Subsequent Event | Novation Agreement | Unsecured Debt | |||||
Long-Term Debt | |||||
Percentage guaranteed by export credit agency | 95.00% |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($)ship | |
Lessee, Lease, Description [Line Items] | |
Number of ships under finance leases | ship | 2 |
Additional lease term | 6 years |
Variable lease cost | $ 34.3 |
Option to extend, value | $ 41 |
Pullmantur and CDF Croisieres de France | |
Lessee, Lease, Description [Line Items] | |
Percentage of subsidiary which has been sold | 51.00% |
Minimum | Real Estate | |
Lessee, Lease, Description [Line Items] | |
Renewal term | 1 year |
Minimum | Berthing Agreement | |
Lessee, Lease, Description [Line Items] | |
Renewal term | 1 year |
Maximum | Real Estate | |
Lessee, Lease, Description [Line Items] | |
Renewal term | 10 years |
Maximum | Berthing Agreement | |
Lessee, Lease, Description [Line Items] | |
Renewal term | 20 years |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Finance lease right-of-use assets, net | |
Property and equipment, gross | $ 246,682 |
Accumulated depreciation | (39,882) |
Property and equipment, net | 206,800 |
Operating lease right-of-use assets | 777,551 |
Total lease assets | 984,351 |
Finance lease liabilities | |
Current portion of debt | 33,068 |
Long-term debt | 94,127 |
Total finance lease liabilities | 127,195 |
Operating lease liabilities | |
Current portion of operating lease liabilities | 88,497 |
Long-term operating lease liabilities | 708,371 |
Total operating lease liabilities | 796,868 |
Total lease liabilities | $ 924,063 |
Leases - Schedule of Lease Expe
Leases - Schedule of Lease Expense (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Financial lease costs | |
Amortization of right-of-use-assets | $ 3,195 |
Interest on lease liabilities | 596 |
Total lease costs | 35,457 |
Commission, transportation and other | |
Lessee, Lease, Description [Line Items] | |
Operating lease costs | 19,056 |
Other operating expenses | |
Lessee, Lease, Description [Line Items] | |
Operating lease costs | 6,931 |
Marketing, selling and administrative expenses | |
Lessee, Lease, Description [Line Items] | |
Operating lease costs | $ 5,679 |
Leases - Schedule of Lease Term
Leases - Schedule of Lease Terms and Discount Rates (Details) | Mar. 31, 2019 |
Weighted average of the remaining lease term | |
Operating leases | 10 years 10 months 2 days |
Finance leases | 3 years 7 months 6 days |
Weighted average discount rate | |
Operating leases | 4.60% |
Finance leases | 3.80% |
Leases - Supplemental Noncash I
Leases - Supplemental Noncash Information (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 31,981 |
Operating cash flows from finance leases | 596 |
Financing cash flows from finance leases | $ 3,606 |
Leases - Schedule of Lease Matu
Leases - Schedule of Lease Maturities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Operating Leases | ||
Remainder of 2019 | $ 95,927 | |
2020 | 126,959 | |
2021 | 114,278 | |
2022 | 107,885 | |
2023 | 105,846 | |
Thereafter | 522,270 | |
Total lease payments | 1,073,165 | |
Less: Interest | (276,297) | |
Present value of lease liabilities | 796,868 | |
Finance Leases | ||
Remainder of 2019 | 32,468 | |
2020 | 36,334 | |
2021 | 39,139 | |
2022 | 16,097 | |
2023 | 5,089 | |
Thereafter | 10,413 | |
Total lease payments | 139,540 | |
Less: Interest | (12,345) | |
Present value of lease liabilities | $ 127,195 | |
Operating Leases | ||
2019 | $ 67,682 | |
2020 | 64,237 | |
2021 | 56,142 | |
2022 | 52,759 | |
2023 | 52,522 | |
Thereafter | 383,974 | |
Total | $ 677,316 |
Redeemable Noncontrolling Int_3
Redeemable Noncontrolling Interest - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Jul. 31, 2018 |
Royal Caribbean International | Silversea Cruises Group | ||
Redeemable Noncontrolling Interest [Line Items] | ||
Ownership percentage by noncontrolling owners | 33.30% | |
Silversea Cruises | ||
Redeemable Noncontrolling Interest [Line Items] | ||
Redeemable noncontrolling interest | $ 537.8 | |
Percentage of business acquired | 66.70% |
Redeemable Noncontrolling Int_4
Redeemable Noncontrolling Interest - Schedule of Redeemable Noncontrolling Interest (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||
Beginning balance January 1, 2019 | $ 542,020 | |
Net income attributable to noncontrolling interest, including the contractual accretion of the put options | 7,125 | $ 0 |
Other | 500 | |
Ending balance March 31, 2019 | $ 549,645 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 3 Months Ended | ||||
Mar. 31, 2019USD ($)shipberth | Apr. 30, 2019berth | Feb. 28, 2019berth | Dec. 31, 2018 | Sep. 30, 2018shipberth | |
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 | $ | $ 11,400 | ||||
Deposit for the purchase of ships expected to enter service | $ | $ 667.8 | ||||
Percentage of aggregate cost exposed to fluctuations in the euro exchange rate | 54.00% | 53.50% | |||
Silversea Cruises | Cruise ships on order | |||||
Commitments and Contingencies | |||||
Number of ships under construction | ship | 3 | ||||
Ship passenger capacity berths | berth | 1,200 | ||||
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 | ship | 2 | ||||
Royal Caribbean International Cruise Ships | Oasis Class Ship | Cruise ships on order | |||||
Commitments and Contingencies | |||||
Number of ships under construction | ship | 1 | ||||
Ship passenger capacity berths | berth | 5,700 | ||||
Royal Caribbean International Cruise Ships | Project Icon ships | Cruise ships on order | |||||
Commitments and Contingencies | |||||
Number of ships under construction | ship | 2 | ||||
Ship passenger capacity berths | berth | 25,300 | ||||
Royal Caribbean International Cruise Ships | Silversea Cruises | Cruise ships on order | |||||
Commitments and Contingencies | |||||
Number of ships under construction | ship | 2 | 2 | |||
Ship passenger capacity berths | berth | 1,200 | ||||
Celebrity Cruise Ships | Project Edge Class Ships | Cruise ships on order | |||||
Commitments and Contingencies | |||||
Number of ships under construction | ship | 3 | ||||
Ship passenger capacity berths | berth | 9,400 | ||||
Subsequent Event | Royal Caribbean International Cruise Ships | Project Edge Class Ships | Cruise ships on order | |||||
Commitments and Contingencies | |||||
Ship passenger capacity berths | berth | 3,200 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Apr. 30, 2019 | May 31, 2018 | Apr. 30, 2018 | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | |
Subsequent Event [Line Items] | ||||||||
Dividend declared (in dollars per share) | $ 0.70 | $ 0.70 | $ 0.6 | $ 0.60 | ||||
Common stock, dividends, per share, cash paid (in dollars per share) | $ 0.6 | $ 0.7 | $ 0.6 | |||||
Length of repurchase program | 24 months | |||||||
Common stock repurchase program, authorized amount | $ 1,000,000,000 | |||||||
Treasury stock, shares, acquired (in shares) | 0 | 2,800,000 | ||||||
Treasury stock, value, acquired, cost method | $ 275,039,000 | $ 300,000,000 | ||||||
Remaining authorized repurchase amount | $ 700,000,000 | |||||||
Scenario, Forecast | Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Common stock, dividends, per share, cash paid (in dollars per share) | $ 0.7 |
Changes in Accumulated Other _3
Changes in Accumulated Other Comprehensive (Loss) Income - Changes in AOCI by Component (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Changes in accumulated other comprehensive loss by component | ||
Total other comprehensive income | $ 48,754 | $ 151,450 |
Changes related to cash flow derivative hedges | ||
Changes in accumulated other comprehensive loss by component | ||
Accumulated comprehensive loss at beginning of the year | (537,216) | (250,355) |
Other comprehensive income (loss) before reclassifications | 61,565 | 127,616 |
Amounts reclassified from accumulated other comprehensive loss | (12,722) | 14,914 |
Total other comprehensive income | 48,843 | 142,530 |
Ending balance | (488,373) | (107,825) |
Changes in defined benefit plans | ||
Changes in accumulated other comprehensive loss by component | ||
Accumulated comprehensive loss at beginning of the year | (26,023) | (33,666) |
Other comprehensive income (loss) before reclassifications | (841) | 7,417 |
Amounts reclassified from accumulated other comprehensive loss | 188 | 343 |
Total other comprehensive income | (653) | 7,760 |
Ending balance | (26,676) | (25,906) |
Foreign currency translation adjustments | ||
Changes in accumulated other comprehensive loss by component | ||
Accumulated comprehensive loss at beginning of the year | (64,495) | (50,244) |
Other comprehensive income (loss) before reclassifications | 564 | 1,160 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Total other comprehensive income | 564 | 1,160 |
Ending balance | (63,931) | (49,084) |
Accumulated other comprehensive loss | ||
Changes in accumulated other comprehensive loss by component | ||
Accumulated comprehensive loss at beginning of the year | (627,734) | (334,265) |
Other comprehensive income (loss) before reclassifications | 61,288 | 136,193 |
Amounts reclassified from accumulated other comprehensive loss | (12,534) | 15,257 |
Total other comprehensive income | 48,754 | 151,450 |
Ending balance | $ (578,980) | $ (182,815) |
Changes in Accumulated Other _4
Changes in Accumulated Other Comprehensive (Loss) Income - Reclassifications (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Reclassifications out of accumulated other comprehensive loss | ||
Interest expense, net of interest capitalized | $ 100,415 | $ 67,878 |
Depreciation and amortization | 292,285 | 240,230 |
Other income (expense) | (5,088) | (24,100) |
Fuel | 160,171 | 160,341 |
Net income | 249,681 | 218,653 |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | ||
Reclassifications out of accumulated other comprehensive loss | ||
Net income | 12,534 | (15,257) |
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 | 12,722 | (14,914) |
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 | (391) | (6,838) |
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 | (3,334) | (3,312) |
Other income (expense) | (1,315) | 42 |
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 | 0 | 0 |
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 income (expense) | (256) | 325 |
Fuel | 18,018 | (5,131) |
Actuarial loss | Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | ||
Reclassifications out of accumulated other comprehensive loss | ||
Payroll and related | (188) | (343) |
Changes in defined benefit plans | Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | ||
Reclassifications out of accumulated other comprehensive loss | ||
Net income | $ (188) | $ (343) |
Fair Value Measurements and D_3
Fair Value Measurements and Derivative Instruments - Estimated Fair Value (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | |
Level 1 | |||
Assets: | |||
Cash and cash equivalents | [1],[2] | $ 248,197 | $ 287,852 |
Total Assets | [2] | 248,197 | 287,852 |
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] | 9,581,920 | 10,244,214 |
Total Liabilities | [4] | 9,581,920 | 10,244,214 |
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] | 248,197 | 287,852 |
Total Assets | 248,197 | 287,852 | |
Liabilities: | |||
Long-term debt (including current portion of long-term debt) | [3] | 9,045,459 | 9,871,267 |
Total Liabilities | 9,045,459 | 9,871,267 | |
Total Fair Value | |||
Assets: | |||
Cash and cash equivalents | [1] | 248,197 | 287,852 |
Total Assets | 248,197 | 287,852 | |
Liabilities: | |||
Long-term debt (including current portion of long-term debt) | [3] | 9,581,920 | 10,244,214 |
Total Liabilities | $ 9,581,920 | $ 10,244,214 | |
[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. These amounts do not include our capital lease obligations or commercial paper. | ||
[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, 2019 and December 31, 2018. |
Fair Value Measurements and D_4
Fair Value Measurements and Derivative Instruments - Recurring (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | |
Assets: | |||
Derivative financial instruments | $ 18,884 | $ 4,994 | |
Liabilities: | |||
Derivative financial instruments | 110,228 | 141,509 | |
Fair Value, Measurements, Recurring | Level 1 | |||
Assets: | |||
Derivative financial instruments | [1],[2] | 0 | 0 |
Total Assets | [2] | 0 | 0 |
Liabilities: | |||
Derivative financial instruments | [2],[3] | 0 | 0 |
Contingent consideration | [2],[4] | 0 | 0 |
Total Liabilities | [2] | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | |||
Assets: | |||
Derivative financial instruments | [1],[5] | 119,082 | 65,297 |
Total Assets | [5] | 119,082 | 65,297 |
Liabilities: | |||
Derivative financial instruments | [3],[5] | 210,426 | 201,812 |
Contingent consideration | [4],[5] | 0 | 0 |
Total Liabilities | [5] | 210,426 | 201,812 |
Fair Value, Measurements, Recurring | Level 3 | |||
Assets: | |||
Derivative financial instruments | [1],[6] | 0 | 0 |
Total Assets | [6] | 0 | 0 |
Liabilities: | |||
Derivative financial instruments | [3],[6] | 0 | 0 |
Contingent consideration | [4],[6] | 44,000 | 44,000 |
Total Liabilities | [6] | 44,000 | 44,000 |
Total | Fair Value, Measurements, Recurring | |||
Assets: | |||
Derivative financial instruments | [1] | 119,082 | 65,297 |
Total Assets | 119,082 | 65,297 | |
Liabilities: | |||
Derivative financial instruments | [3] | 210,426 | 201,812 |
Contingent consideration | [4] | 44,000 | 44,000 |
Total Liabilities | $ 254,426 | $ 245,812 | |
[1] | Consists of foreign currency forward contracts, interest rate swaps and fuel swaps. Refer to the “Fair Value of Derivative Instruments” table for breakdown by instrument type. | ||
[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 foreign currency forward contracts, interest rate swaps and fuel swaps. Refer to the “Fair Value of Derivative Instruments” table for breakdown by instrument type. | ||
[4] | The contingent consideration related to the Silversea Cruises acquisition was estimated by applying a Monte-Carlo simulation method using our closing stock price along with significant inputs not observable in the market, including the probability of achieving the milestones and estimated future operating results. The Monte-Carlo simulation is a generally accepted statistical technique used to generate a defined number of valuation paths in order to develop a reasonable estimate of fair value. Refer to Note 3. Business Combination for further information on the Silversea Cruises acquisition. | ||
[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. Derivative instrument fair values take into account the creditworthiness of the counterparty and the Company. | ||
[6] | Inputs that are unobservable. |
Fair Value Measurements and D_5
Fair Value Measurements and Derivative Instruments - Offsetting of Derivative Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Offsetting of Financial Assets under Master Netting Agreements [Abstract] | ||
Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheet | $ 119,082 | $ 65,297 |
Gross Amount of Eligible Offsetting Recognized Derivative Liabilities | (100,198) | (60,303) |
Cash Collateral Received | 0 | 0 |
Net Amount of Derivative Assets | 18,884 | 4,994 |
Offsetting of Financial Liabilities under Master Netting Agreements [Abstract] | ||
Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheet | (210,426) | (201,812) |
Gross Amount of Eligible Offsetting Recognized Derivative Assets | 100,198 | 60,303 |
Cash Collateral Pledged | 0 | 0 |
Net Amount of Derivative Liabilities | $ (110,228) | $ (141,509) |
Fair Value Measurements and D_6
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, 2019USD ($)ship | Mar. 31, 2019EUR (€) | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018EUR (€) | Mar. 31, 2019EUR (€)ship | Sep. 30, 2018ship | |
Gains and losses from derivatives involved in hedging relationships | |||||||
Derivative instrument, credit risk exposure | $ 19,200 | $ 5,600 | |||||
Maximum length of time hedged in derivative contract | 3 years | 3 years | |||||
Percentage of debt bearing fixed interest | 61.30% | 59.10% | 61.30% | ||||
Interest rate swaps | |||||||
Gains and losses from derivatives involved in hedging relationships | |||||||
Derivative, notional amount | $ 3,400,000 | $ 3,400,000 | |||||
Forward Contracts | |||||||
Gains and losses from derivatives involved in hedging relationships | |||||||
Change in fair value of foreign currency forward contracts recognized in earnings | 5,000 | $ 5,600 | |||||
Forward Contracts | Not Designated | |||||||
Gains and losses from derivatives involved in hedging relationships | |||||||
Derivative, notional amount | 663,600 | ||||||
Foreign exchange contracts | |||||||
Gains and losses from derivatives involved in hedging relationships | |||||||
Derivative, notional amount | 3,700,000 | $ 3,700,000 | |||||
Cruise ships on order | |||||||
Gains and losses from derivatives involved in hedging relationships | |||||||
Aggregate cost of ships on order, not including partner brands on order | 11,400,000 | ||||||
Amount deposited for cost of ships on order | $ 667,800 | ||||||
Percentage of aggregate cost exposed to fluctuations in the euro exchange rate | 54.00% | 53.50% | 54.00% | ||||
TUI Cruises | Forward Contracts | Designated as Hedging Instrument | |||||||
Gains and losses from derivatives involved in hedging relationships | |||||||
Derivative, notional amount | $ 113,400 | € 101 | |||||
Foreign currency debt | |||||||
Gains and losses from derivatives involved in hedging relationships | |||||||
Carrying value of non-derivative instrument designated as hedging instrument | 313,205 | $ 320,152 | |||||
Foreign currency debt | TUI Cruises | |||||||
Gains and losses from derivatives involved in hedging relationships | |||||||
Carrying value of non-derivative instrument designated as hedging instrument | $ 313,200 | € 279 | $ 320,200 | € 280 | |||
Silversea Cruises | Cruise ships on order | |||||||
Gains and losses from derivatives involved in hedging relationships | |||||||
Number of ships under construction | ship | 3 | 3 | |||||
Royal Caribbean International Cruise Ships | Silversea Cruises | Cruise ships on order | |||||||
Gains and losses from derivatives involved in hedging relationships | |||||||
Number of ships under construction | ship | 2 | 2 | 2 |
Fair Value Measurements and D_7
Fair Value Measurements and Derivative Instruments - Interest Rate Risk (Details) - Interest rate swaps | 3 Months Ended | |
Mar. 31, 2019USD ($) | ||
Fair Value Hedging | ||
Interest Rate Fair Value Hedges [Abstract] | ||
Long-term debt | $ 755,000,000 | |
Fair Value Hedging | Oasis of the Seas term loan | ||
Interest Rate Fair Value Hedges [Abstract] | ||
Long-term debt | $ 105,000,000 | |
Debt Fixed Rate | 5.41% | |
Fair Value Hedging | Unsecured senior notes | ||
Interest Rate Fair Value Hedges [Abstract] | ||
Long-term debt | $ 650,000,000 | |
Debt Fixed Rate | 5.25% | |
Cash flow hedge | ||
Interest Rate Cash Flow Hedges [Abstract] | ||
Swap notional amount | $ 2,604,117,000 | |
Cash flow hedge | Celebrity Reflection term loan | ||
Interest Rate Cash Flow Hedges [Abstract] | ||
Swap notional amount | $ 327,250,000 | |
All-in Swap Fixed Rate | 2.85% | |
Cash flow hedge | Quantum of the Seas term loan | ||
Interest Rate Cash Flow Hedges [Abstract] | ||
Swap notional amount | $ 490,000,000 | |
All-in Swap Fixed Rate | 3.74% | |
Cash flow hedge | Anthem of the Seas term loan | ||
Interest Rate Cash Flow Hedges [Abstract] | ||
Swap notional amount | $ 513,542,000 | |
All-in Swap Fixed Rate | 3.86% | |
Cash flow hedge | Ovation of the Seas term loan | ||
Interest Rate Cash Flow Hedges [Abstract] | ||
Swap notional amount | $ 657,083,000 | |
All-in Swap Fixed Rate | 3.16% | |
Cash flow hedge | Harmony of the Seas term loan | ||
Interest Rate Cash Flow Hedges [Abstract] | ||
Swap notional amount | $ 616,242,000 | [1] |
All-in Swap Fixed Rate | 2.26% | [1] |
LIBOR | Fair Value Hedging | Oasis of the Seas term loan | ||
Interest Rate Fair Value Hedges [Abstract] | ||
Swap Floating Rate: LIBOR plus | 3.87% | |
All-in swap floating rate | 6.63% | |
LIBOR | Fair Value Hedging | Unsecured senior notes | ||
Interest Rate Fair Value Hedges [Abstract] | ||
Swap Floating Rate: LIBOR plus | 3.63% | |
All-in swap floating rate | 6.32% | |
LIBOR | Cash flow hedge | Celebrity Reflection term loan | ||
Interest Rate Cash Flow Hedges [Abstract] | ||
Debt Floating Rate | 0.40% | |
LIBOR | Cash flow hedge | Quantum of the Seas term loan | ||
Interest Rate Cash Flow Hedges [Abstract] | ||
Debt Floating Rate | 1.30% | |
LIBOR | Cash flow hedge | Anthem of the Seas term loan | ||
Interest Rate Cash Flow Hedges [Abstract] | ||
Debt Floating Rate | 1.30% | |
LIBOR | Cash flow hedge | Ovation of the Seas term loan | ||
Interest Rate Cash Flow Hedges [Abstract] | ||
Debt Floating Rate | 1.00% | |
EURIBOR | Cash flow hedge | Harmony of the Seas 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, 2019. |
Fair Value Measurements and D_8
Fair Value Measurements and Derivative Instruments - Fuel Price Risk (Details) - Fuel Swap Agreements $ in Millions | Mar. 31, 2019USD ($)T | Dec. 31, 2018T |
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 | $ | $ 45.9 | |
2019 | ||
Derivative Instruments | ||
Fuel swap agreements (metric tons) | 648,400 | 856,800 |
Percentage of projected requirements | 58.00% | 58.00% |
2020 | ||
Derivative Instruments | ||
Fuel swap agreements (metric tons) | 830,500 | 830,500 |
Percentage of projected requirements | 54.00% | 54.00% |
2021 | ||
Derivative Instruments | ||
Fuel swap agreements (metric tons) | 488,900 | 488,900 |
Percentage of projected requirements | 29.00% | 28.00% |
2022 | ||
Derivative Instruments | ||
Fuel swap agreements (metric tons) | 322,900 | 322,900 |
Percentage of projected requirements | 18.00% | 19.00% |
2023 | ||
Derivative Instruments | ||
Fuel swap agreements (metric tons) | 0 | 0 |
Percentage of projected requirements | 0.00% | 0.00% |
Fair Value Measurements and D_9
Fair Value Measurements and Derivative Instruments - Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | |
Asset Derivatives | |||
Asset Derivatives | $ 119,082 | $ 65,297 | |
Liability Derivatives | |||
Liability Derivatives | 210,426 | 201,812 | |
Designated as Hedging Instrument | |||
Asset Derivatives | |||
Asset Derivatives | [1] | 118,706 | 58,576 |
Liability Derivatives | |||
Liability Derivatives | [1] | 210,149 | 199,795 |
Notional Disclosures | |||
Carrying Amount of the Hedged Liabilities | 734,266 | 725,486 | |
Cumulative amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liabilities | (16,306) | (24,766) | |
Not Designated as Hedging Instrument | |||
Asset Derivatives | |||
Asset Derivatives | 376 | 6,721 | |
Liability Derivatives | |||
Liability Derivatives | 277 | 2,017 | |
Interest rate swaps | Designated as Hedging Instrument | Other assets | |||
Asset Derivatives | |||
Asset Derivatives | [1] | 6,010 | 23,518 |
Interest rate swaps | Designated as Hedging Instrument | Other long-term liabilities | |||
Liability Derivatives | |||
Liability Derivatives | [1] | 43,351 | 40,467 |
Foreign currency forward contracts | Designated as Hedging Instrument | Other assets | |||
Asset Derivatives | |||
Asset Derivatives | [1] | 5,838 | 10,844 |
Foreign currency forward contracts | Designated as Hedging Instrument | Derivative financial instruments | |||
Asset Derivatives | |||
Asset Derivatives | [1] | 6,605 | 4,044 |
Liability Derivatives | |||
Liability Derivatives | [1] | 80,989 | 39,665 |
Foreign currency forward contracts | Designated as Hedging Instrument | Other long-term liabilities | |||
Liability Derivatives | |||
Liability Derivatives | [1] | 58,929 | 16,854 |
Foreign currency forward contracts | Not Designated as Hedging Instrument | Other assets | |||
Asset Derivatives | |||
Asset Derivatives | 0 | 1,579 | |
Foreign currency forward contracts | Not Designated as Hedging Instrument | Derivative financial instruments | |||
Asset Derivatives | |||
Asset Derivatives | 0 | 1,751 | |
Liability Derivatives | |||
Liability Derivatives | 0 | 808 | |
Foreign currency forward contracts | Not Designated as Hedging Instrument | Other long-term liabilities | |||
Liability Derivatives | |||
Liability Derivatives | 0 | 833 | |
Fuel swaps | Designated as Hedging Instrument | Other assets | |||
Asset Derivatives | |||
Asset Derivatives | [1] | 46,783 | 9,204 |
Fuel swaps | Designated as Hedging Instrument | Derivative financial instruments | |||
Asset Derivatives | |||
Asset Derivatives | [1] | 53,470 | 10,966 |
Liability Derivatives | |||
Liability Derivatives | [1] | 7,757 | 37,627 |
Fuel swaps | Designated as Hedging Instrument | Other long-term liabilities | |||
Liability Derivatives | |||
Liability Derivatives | [1] | 19,123 | 65,182 |
Fuel swaps | Not Designated as Hedging Instrument | Other assets | |||
Asset Derivatives | |||
Asset Derivatives | 0 | 587 | |
Fuel swaps | Not Designated as Hedging Instrument | Derivative financial instruments | |||
Asset Derivatives | |||
Asset Derivatives | 376 | 2,804 | |
Liability Derivatives | |||
Liability Derivatives | 277 | 376 | |
Fuel swaps | Not Designated as Hedging Instrument | Other long-term liabilities | |||
Liability Derivatives | |||
Liability Derivatives | $ 0 | $ 0 | |
[1] | Accounting Standard Codification 815-20 “Derivatives and Hedging.” |
Fair Value Measurements and _10
Fair Value Measurements and Derivative Instruments - Income Statement Hedging Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||
Fuel | $ 160,171 | $ 160,341 |
Depreciation and amortization | 292,285 | 240,230 |
Interest Income (Expense) | (90,631) | (60,145) |
Other income (expense) | (5,088) | (24,100) |
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 4,780 | 7,810 |
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 | (136) | (30) |
Fuel swaps | Other income (expense) | ||
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | (98) | 2,205 |
Fair Value Hedging | ||
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Recognized in Income on Derivative | 5,835 | (12,570) |
Amount of Gain (Loss) Recognized in Income on Hedged Item | (8,459) | 13,182 |
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 Derivative | (2,257) | (12,570) |
Amount of Gain (Loss) Recognized in Income on Hedged Item | (8,459) | 13,182 |
Fair Value Hedging | Interest Contracts | Other income (expense) | ||
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Recognized in Income on Derivative | 0 | 0 |
Amount of Gain (Loss) Recognized in Income on Hedged Item | 0 | 0 |
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 Derivative | (2,257) | (12,570) |
Amount of Gain (Loss) Recognized in Income on Hedged Item | (8,459) | 13,182 |
Fair Value Hedging | Interest rate swaps | Other income (expense) | ||
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Recognized in Income on Derivative | 8,092 | 0 |
Amount of Gain (Loss) Recognized in Income on Hedged Item | 0 | 0 |
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) | (391) | (6,838) |
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) | 18,018 | (5,131) |
Cash flow hedge | Fuel swaps | Other income (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) | (256) | 325 |
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) | (3,334) | (3,312) |
Cash flow hedge | Foreign exchange contracts | Other income (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) | $ (1,315) | $ 42 |
Fair Value Measurements and _11
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, 2019 | Dec. 31, 2018 | |
Derivative Instruments | ||
Carrying value of non-derivative instrument designated as hedging instrument | $ 313,205 | $ 320,152 |
Current portion of debt | ||
Derivative Instruments | ||
Carrying value of non-derivative instrument designated as hedging instrument | 73,536 | 38,168 |
Long-term debt | ||
Derivative Instruments | ||
Carrying value of non-derivative instrument designated as hedging instrument | $ 239,669 | $ 281,984 |
Fair Value Measurements and _12
Fair Value Measurements and Derivative Instruments - Designated Cash Flow Hedges (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Effect of derivative instruments involved in hedging on the consolidated financial statements | |||
Depreciation and amortization | $ 292,285 | $ 240,230 | |
Other income (expense) | (5,088) | (24,100) | |
Fuel | 160,171 | 160,341 | |
Net income | 249,681 | 218,653 | |
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net [Abstract] | |||
Net inception fair value at January 1, 2019 | $ (8,359) | ||
Amount of gain recognized in income on derivatives for the period ended March 31, 2019 | 744 | ||
Amount of loss remaining to be amortized in accumulated other comprehensive loss, as of March 31, 2019 | (656) | ||
Fair value at March 31, 2019 | (8,271) | ||
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 | 61,565 | 127,616 | |
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 | (28,329) | 37,191 | |
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 | (90,144) | 95,366 | |
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 | 0 | 0 | |
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 | 0 | 0 | |
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 | 180,038 | (4,941) | |
Reclassification out of Accumulated Other Comprehensive Income | |||
Effect of derivative instruments involved in hedging on the consolidated financial statements | |||
Net income | 12,534 | (15,257) | |
Reclassification out of Accumulated Other Comprehensive Income | Changes related to cash flow derivative hedges | |||
Effect of derivative instruments involved in hedging on the consolidated financial statements | |||
Net income | 12,722 | (14,914) | |
Reclassification out of Accumulated Other Comprehensive Income | Changes related to cash flow derivative hedges | Interest rate swaps | |||
Effect of derivative instruments involved in hedging on the consolidated financial statements | |||
Interest expense, net of interest capitalized | (391) | (6,838) | |
Reclassification out of Accumulated Other Comprehensive Income | Changes related to cash flow derivative hedges | Foreign currency forward contracts | |||
Effect of derivative instruments involved in hedging on the consolidated financial statements | |||
Depreciation and amortization | (3,334) | (3,312) | |
Other income (expense) | (1,315) | 42 | |
Reclassification out of Accumulated Other Comprehensive Income | Changes related to cash flow derivative hedges | Foreign currency forward contracts | |||
Effect of derivative instruments involved in hedging on the consolidated financial statements | |||
Other income (expense) | (1,315) | 42 | |
Reclassification out of Accumulated Other Comprehensive Income | Changes related to cash flow derivative hedges | Fuel swaps | |||
Effect of derivative instruments involved in hedging on the consolidated financial statements | |||
Other income (expense) | (256) | 325 | |
Fuel | 18,018 | (5,131) | |
Reclassification out of Accumulated Other Comprehensive Income | Changes related to cash flow derivative hedges | Fuel Swap | |||
Effect of derivative instruments involved in hedging on the consolidated financial statements | |||
Fuel | $ 18,018 | $ (5,131) |
Fair Value Measurements and _13
Fair Value Measurements and Derivative Instruments - Non-Derivative Net Investment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Foreign currency debt | ||
Net investment hedge | ||
Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) | $ 5,702 | $ (8,244) |
Fair Value Measurements and _14
Fair Value Measurements and Derivative Instruments - Derivatives Not Designated as Hedging Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Derivative Instruments | ||
Amount of gain (loss) recognized in income on derivatives | $ 4,780 | $ 7,810 |
Foreign currency forward contracts | Other income (expense) | ||
Derivative Instruments | ||
Amount of gain (loss) recognized in income on derivatives | 5,014 | 5,635 |
Fuel swaps | Other income (expense) | ||
Derivative Instruments | ||
Amount of gain (loss) recognized in income on derivatives | (98) | 2,205 |
Fuel swaps | Fuel cost | ||
Derivative Instruments | ||
Amount of gain (loss) recognized in income on derivatives | $ (136) | $ (30) |
Fair Value Measurements and _15
Fair Value Measurements and Derivative Instruments - Credit Features (Details) | Mar. 31, 2019derivative |
Fair Value Disclosures [Abstract] | |
Number of derivatives matured | 5 |
Uncategorized Items - rcl-20190
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (23,476,000) |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (23,476,000) |