Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 12, 2016 | Jun. 30, 2015 | |
Document and Entity Information | |||
Entity Registrant Name | ROYAL CARIBBEAN CRUISES LTD | ||
Entity Central Index Key | 884,887 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 14.4 | ||
Entity Common Stock, Shares Outstanding | 217,408,741 | ||
Document Fiscal Year Focus | 2,014 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||
Passenger ticket revenues | $ 6,058,821 | $ 5,893,847 | $ 5,722,718 |
Onboard and other revenues | 2,240,253 | 2,180,008 | 2,237,176 |
Total revenues | 8,299,074 | 8,073,855 | 7,959,894 |
Cruise operating expenses: | |||
Commissions, transportation and other | 1,400,778 | 1,372,785 | 1,314,595 |
Onboard and other | 553,104 | 582,750 | 568,615 |
Payroll and related | 861,775 | 847,641 | 841,737 |
Food | 480,009 | 478,130 | 469,653 |
Fuel | 795,801 | 947,391 | 924,414 |
Other operating | 1,007,926 | 1,077,584 | 1,186,256 |
Total cruise operating expenses | 5,099,393 | 5,306,281 | 5,305,270 |
Marketing, selling and administrative expenses | 1,086,504 | 1,048,952 | 1,044,819 |
Depreciation and amortization expenses | 827,008 | 772,445 | 754,711 |
Impairment of Pullmantur related assets | 411,267 | ||
Restructuring and related impairment charges | 0 | 4,318 | 56,946 |
Total operating costs | 7,424,172 | 7,131,996 | 7,161,746 |
Operating Income | 874,902 | 941,859 | 798,148 |
Other income (expense): | |||
Interest income | 12,025 | 10,344 | 13,898 |
Interest expense, net of interest capitalized | (277,725) | (258,299) | (332,422) |
Extinguishment of unsecured senior notes | (4,206) | ||
Other income (expense) (including $12.0 million net deferred tax benefit related to impairments in 2015 and $33.5 million deferred tax benefit related to the reversal of a valuation allowance in 2014) | 56,581 | 70,242 | (1,726) |
Total other income (expense) | (209,119) | (177,713) | (324,456) |
Net Income | $ 665,783 | $ 764,146 | $ 473,692 |
Basic Earnings per Share: | |||
Net income (in dollars per share) | $ 3.03 | $ 3.45 | $ 2.16 |
Diluted Earnings per Share: | |||
Net income (in dollars per share) | $ 3.02 | $ 3.43 | $ 2.14 |
Comprehensive Income (Loss) | |||
Net income | $ 665,783 | $ 764,146 | $ 473,692 |
Other comprehensive (loss) income: | |||
Foreign currency translation adjustments | (30,152) | (26,102) | 1,529 |
Change in defined benefit plans | 4,760 | (7,213) | 10,829 |
(Loss) gain on cash flow derivative hedges | (406,047) | (869,350) | 127,829 |
Total other comprehensive (loss) income | (431,439) | (902,665) | 140,187 |
Comprehensive Income (Loss) | $ 234,344 | $ (138,519) | $ 613,879 |
CONSOLIDATED STATEMENTS OF COM3
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Net deferred income tax benefit | $ 10,001 |
Trademarks and trade names | Pullmantur | |
Net deferred income tax benefit | $ 12,000 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets | ||
Cash and cash equivalents | $ 121,565 | $ 189,241 |
Trade and other receivables, net | 238,972 | 261,392 |
Inventories | 121,332 | 123,490 |
Prepaid expenses and other assets | 220,579 | 226,960 |
Derivative financial instruments | 134,574 | |
Total current assets | 837,022 | 801,083 |
Property and equipment, net | 18,777,778 | 18,193,627 |
Goodwill | 286,764 | 420,542 |
Other assets | 1,020,291 | 1,297,938 |
Total assets | 20,921,855 | 20,713,190 |
Current liabilities | ||
Current portion of long-term debt | 899,677 | 799,630 |
Accounts payable | 302,072 | 331,505 |
Accrued interest | 38,325 | 49,074 |
Accrued expenses and other liabilities | 658,601 | 635,138 |
Derivative financial instruments | 651,866 | 266,986 |
Customer deposits | 1,742,286 | 1,766,914 |
Total current liabilities | 4,292,827 | 3,849,247 |
Long-term debt | 7,767,378 | 7,644,318 |
Other long-term liabilities | $ 798,611 | $ 935,266 |
Commitments and contingencies | ||
Preferred stock ($0.01 par value; 20,000,000 shares authorized; none outstanding) | $ 0 | $ 0 |
Shareholders' equity | ||
Common stock ($0.01 par value; 500,000,000 shares authorized; 233,905,166 and 233,106,019 shares issued, December 31, 2015 and December 31, 2014, respectively) | 2,339 | 2,331 |
Paid-in capital | 3,297,619 | 3,253,552 |
Retained earnings | 6,944,862 | 6,575,248 |
Accumulated other comprehensive loss | (1,328,433) | (896,994) |
Treasury stock (15,911,971 and 13,808,683 common shares at cost, December 31, 2015 and December 31, 2014, respectively) | (853,348) | (649,778) |
Total shareholders' equity | 8,063,039 | 8,284,359 |
Total liabilities and shareholders' equity | $ 20,921,855 | $ 20,713,190 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 233,905,166 | 233,106,019 |
Treasury stock, common shares | 15,911,971 | 13,808,683 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Activities | |||
Net income | $ 665,783 | $ 764,146 | $ 473,692 |
Adjustments: | |||
Depreciation and amortization | 827,008 | 772,445 | 754,711 |
Impairment of Pullmantur related assets | 411,267 | ||
Restructuring related impairments | 0 | 0 | 33,514 |
Net deferred income tax (benefit) expense | (10,001) | (41,003) | 1,481 |
Loss on sale of property and equipment | 0 | 17,401 | 0 |
Loss on derivative instruments not designated as hedges | 59,162 | 48,637 | 19,287 |
Loss on extinguishment of unsecured senior notes | 4,206 | ||
Changes in operating assets and liabilities: | |||
Decrease in trade and other receivables, net | 63,102 | 100,095 | 95,401 |
Decrease (increase) in inventories | 1,197 | 26,254 | (4,321) |
Decrease (increase) in prepaid expenses and other assets | 14,905 | 41,077 | (22,657) |
(Decrease) increase in accounts payable | (25,278) | (40,651) | 18,957 |
Decrease in accrued interest | (10,749) | (53,951) | (3,341) |
Increase (decrease) in accrued expenses and other liabilities | 41,754 | 70,565 | (6,714) |
(Decrease) increase in customer deposits | (92,849) | 14,885 | 37,077 |
Dividends received from unconsolidated affiliates | 33,338 | 5,814 | 5,093 |
Other, net | (32,273) | 18,045 | 5,682 |
Net cash provided by operating activities | 1,946,366 | 1,743,759 | 1,412,068 |
Investing Activities | |||
Purchases of property and equipment | (1,613,340) | (1,811,398) | (763,777) |
Cash paid on settlement of derivative financial instruments | (178,597) | (68,098) | (17,338) |
Investments in and loans to unconsolidated affiliates | (56,163) | (188,595) | (70,626) |
Cash received on loans to unconsolidated affiliates | 124,253 | 76,167 | 23,372 |
Proceeds from sale of property and equipment | 220,000 | ||
Other, net | (19,128) | 1,546 | 3,831 |
Net cash used in investing activities | (1,742,975) | (1,770,378) | (824,538) |
Financing Activities | |||
Debt proceeds | 4,399,501 | 4,153,958 | 2,449,464 |
Debt issuance costs | (68,020) | (72,974) | (57,622) |
Repayments of debt | (4,118,553) | (3,724,218) | (2,856,481) |
Purchase of treasury stock | (200,000) | (236,074) | 0 |
Dividends paid | (280,212) | (198,952) | (143,629) |
Proceeds from exercise of common stock options | 11,252 | 70,879 | 30,125 |
Cash received on settlement of derivative financial instruments | 0 | 22,835 | 0 |
Other, net | 2,520 | 2,026 | 1,517 |
Net cash (used in) provided by financing activities | (253,512) | 17,480 | (576,626) |
Effect of exchange rate changes on cash | (17,555) | (6,307) | (1,072) |
Net (decrease) increase in cash and cash equivalents | (67,676) | (15,446) | 9,832 |
Cash and cash equivalents at beginning of year | 189,241 | 204,687 | 194,855 |
Cash and cash equivalents at end of year | 121,565 | 189,241 | 204,687 |
Cash paid during the year for: | |||
Interest, net of amount capitalized | 248,611 | $ 276,933 | 319,476 |
Non-Cash Investing Activities | |||
Purchase of property and equipment through asset trade-in | $ 0 | $ 46,375 |
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 | |
Balance at Dec. 31, 2012 | $ 8,308,749 | $ 2,291 | $ 3,109,887 | $ 5,744,791 | $ (134,516) | $ (413,704) | |
Increase (Decrease) in Stockholders' Equity | |||||||
Issuance under employee related plans | 49,168 | 17 | 49,151 | ||||
Common Stock dividends | (162,727) | (162,727) | |||||
Dividends declared by non-controlling interest | [1] | (804) | (804) | ||||
Changes related to cash flow derivative hedges | 127,829 | 127,829 | |||||
Change in defined benefit plans | 10,829 | 10,829 | |||||
Foreign currency translation adjustments | 1,529 | 1,529 | |||||
Net income | 473,692 | 473,692 | |||||
Balance at Dec. 31, 2013 | 8,808,265 | 2,308 | 3,159,038 | 6,054,952 | 5,671 | (413,704) | |
Increase (Decrease) in Stockholders' Equity | |||||||
Issuance under employee related plans | 94,537 | 23 | 94,514 | ||||
Common Stock dividends | (243,550) | (243,550) | |||||
Dividends declared by non-controlling interest | [1] | (300) | (300) | ||||
Changes related to cash flow derivative hedges | (869,350) | (869,350) | |||||
Change in defined benefit plans | (7,213) | (7,213) | |||||
Foreign currency translation adjustments | (26,102) | (26,102) | |||||
Purchases of Treasury Stock | (236,074) | (236,074) | |||||
Net income | 764,146 | 764,146 | |||||
Balance at Dec. 31, 2014 | 8,284,359 | 2,331 | 3,253,552 | 6,575,248 | (896,994) | (649,778) | |
Increase (Decrease) in Stockholders' Equity | |||||||
Issuance under employee related plans | 40,505 | 8 | 40,497 | ||||
Common Stock dividends | (296,169) | (296,169) | |||||
Changes related to cash flow derivative hedges | (406,047) | (406,047) | |||||
Change in defined benefit plans | 4,760 | 4,760 | |||||
Foreign currency translation adjustments | (30,152) | (30,152) | |||||
Purchases of Treasury Stock | (200,000) | 3,570 | (203,570) | ||||
Net income | 665,783 | 665,783 | |||||
Balance at Dec. 31, 2015 | $ 8,063,039 | $ 2,339 | $ 3,297,619 | $ 6,944,862 | $ (1,328,433) | $ (853,348) | |
[1] | Dividends declared by Pullmantur Air, S.A. to its non-controlling shareholder. |
CONSOLIDATED STATEMENTS OF SHA8
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Accumulated net gain (loss) on cash flow derivative hedges at beginning of year | $ (826,026) | $ 43,324 | $ (84,505) |
Net (loss) gain on cash flow derivative hedges | (697,671) | (919,094) | 188,073 |
Net (gain) loss reclassified into earnings | 291,624 | 49,744 | (60,244) |
Accumulated net gain (loss) on cash flow derivative hedges at end of year | $ (1,232,073) | $ (826,026) | $ 43,324 |
General
General | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | General Description of Business We are a global cruise company. We own Royal Caribbean International, Celebrity Cruises, Pullmantur, Azamara Club Cruises, CDF Croisières de France and a 50% joint venture interest in TUI Cruises. Together, these six brands operate a combined 44 ships as of December 31, 2015 . Our ships operate on a selection of worldwide itineraries that call on approximately 490 destinations on all seven continents. Basis for Preparation of Consolidated Financial Statements The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Estimates are required for the preparation of financial statements in accordance with these principles. Actual results could differ from these estimates. Refer to Note 2. Summary of Significant Accounting Policies for a discussion of our significant accounting policies. All significant intercompany accounts and transactions are eliminated in consolidation. We consolidate entities over which we have control, usually evidenced by a direct ownership interest of greater than 50% , and variable interest entities where we are determined to be the primary beneficiary. Refer to Note 6. Other Assets for further information regarding our variable interest entities. For affiliates we do not control but over which we have significant influence on financial and operating policies, usually evidenced by a direct ownership interest from 20% to 50% , the investment is accounted for using the equity method. We consolidate the operating results of Pullmantur and CDF Croisières de France on a two-month lag to allow for more timely preparation of our consolidated financial statements. No material events or transactions affecting Pullmantur or CDF Croisières de France have occurred during the two -month lag period of November and December 2015 that would require disclosure or adjustment to our consolidated financial statements as of December 31, 2015 . |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Revenues and Expenses Deposits received on sales of passenger cruises are initially recorded as customer deposit liabilities on our balance sheet. Customer deposits are subsequently recognized as passenger ticket revenues, together with revenues from onboard and other goods and services and all associated cruise operating expenses of a voyage. Historically, we recognized revenues and cruise operating expenses for our shorter voyages (voyages of ten days or less) upon voyage completion while we recognized revenues and cruise operating expenses for voyages in excess of ten days on a pro-rata basis. We followed this completed voyage recognition approach on our shorter voyages because the difference between prorating revenue from such voyages and recognizing such revenue at the completion of the voyage was immaterial to our consolidated financial statements. As of September 30, 2014, we changed our methodology and recognized passenger ticket revenues, revenues from onboard and other goods and services and all associated cruise operating expenses for all of our uncompleted voyages on a pro-rata basis. We believe that recognizing revenues and cruise operating expenses on a pro-rata basis for all voyages is preferable as revenues and expenses are recorded in the period in which the revenue generating activities are performed. The effect of this change was an increase to Passenger ticket revenues and Onboard and other revenues , as well as an increase to our Cruise operating expenses . The change was not individually material to our revenues or any of our cruise operating expenses, and resulted in an aggregate increase to operating income and net income of $53.2 million for the year ended December 31, 2014. In addition, the change has not been retrospectively applied to prior periods, as the impact of prorating all voyages was immaterial to the respective periods presented. Revenues and expenses include port costs that vary with guest head counts. The amounts of such port costs included in Passenger ticket revenues on a gross basis were $561.1 million , $546.6 million and $494.2 million for the years 2015 , 2014 and 2013 , respectively. Cash and Cash Equivalents Cash and cash equivalents include cash and marketable securities with original maturities of less than 90 days. Inventories Inventories consist of provisions, supplies and fuel carried at the lower of cost (weighted-average) or market. Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. We capitalize interest as part of the cost of acquiring certain assets. Improvement costs that we believe add value to our ships are capitalized as additions to the ship and depreciated over the shorter of the improvements' estimated useful lives or that of the associated ship. The estimated cost and accumulated depreciation of replaced or refurbished ship components are written off and any resulting losses are recognized in Cruise operating expenses . Liquidated damages received from shipyards as a result of the late delivery of a new ship are recorded as reductions to the cost basis of the ship. Depreciation of property and equipment is computed using the straight-line method over the estimated useful life of the asset. The useful lives of our ships are generally 30 years , net of a 15% projected residual value. The 30-year useful life of our newly constructed ships and 15% associated residual value are both based on the weighted-average of all major components of a ship. Our useful life and residual value estimates take into consideration the impact of anticipated technological changes, long-term cruise and vacation market conditions and historical useful lives of similarly-built ships. In addition, we take into consideration our estimates of the weighted-average useful lives of the ships' major component systems, such as hull, superstructure, main electric, engines and cabins. Depreciation for assets under capital leases is computed using the shorter of the lease term or related asset life. Depreciation of property and equipment is computed utilizing the following useful lives: Years Ships generally 30 Ship improvements 3-20 Buildings and improvements 10-40 Computer hardware and software 3-5 Transportation equipment and other 3-30 Leasehold improvements Shorter of remaining lease term or useful life 3-30 We review long-lived assets for impairment whenever events or changes in circumstances indicate, based on estimated undiscounted future cash flows, that the carrying amount of these assets may not be fully recoverable. For purposes of recognition and measurement of an impairment loss, long-lived assets are grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. The lowest level for which we maintain identifiable cash flows that are independent of the cash flows of other assets and liabilities is at the ship level for our ships and at the aggregated asset group level for our aircraft. If estimated future cash flows are less than the carrying value of an asset, an impairment charge is recognized to the extent its carrying value exceeds fair value. We use the deferral method to account for drydocking costs. Under the deferral method, drydocking costs incurred are deferred and charged to expense on a straight-line basis over the period to the next scheduled drydock, which we estimate to be a period of thirty to sixty months based on the vessel's age as required by Class. Deferred drydock costs consist of the costs to drydock the vessel and other costs incurred in connection with the drydock which are necessary to maintain the vessel's Class certification. Class certification is necessary in order for our cruise ships to be flagged in a specific country, obtain liability insurance and legally operate as passenger cruise ships. The activities associated with those drydocking costs cannot be performed while the vessel is in service and, as such, are done during a drydock as a planned major maintenance activity. The significant deferred drydock costs consist of hauling and wharfage services provided by the drydock facility, hull inspection and related activities (e.g., scraping, pressure cleaning, bottom painting), maintenance to steering propulsion, thruster equipment and ballast tanks, port services such as tugs, pilotage and line handling, and freight associated with these items. We perform a detailed analysis of the various activities performed for each drydock and only defer those costs that are directly related to planned major maintenance activities necessary to maintain Class. The costs deferred are not otherwise routinely periodically performed to maintain a vessel's designed and intended operating capability. Repairs and maintenance activities are charged to expense as incurred. Goodwill Goodwill represents the excess of cost over the fair value of net tangible and identifiable intangible assets acquired. We review goodwill for impairment at the reporting unit level annually or, when events or circumstances dictate, more frequently. The impairment review for goodwill consists of a qualitative assessment of whether it is more-likely-than-not that a reporting unit's fair value is less than its carrying amount, and if necessary, a two-step goodwill impairment test. Factors to consider when performing the qualitative assessment include general economic conditions, limitations on accessing capital, changes in forecasted operating results, changes in fuel prices and fluctuations in foreign exchange rates. If the qualitative assessment demonstrates that it is more-likely-than-not that the estimated fair value of the reporting unit exceeds its carrying value, it is not necessary to perform the two-step goodwill impairment test. We may elect to bypass the qualitative assessment and proceed directly to step one, for any reporting unit, in any period. On a periodic basis, we elect to bypass the qualitative assessment and proceed to step one to corroborate the results of recent years' qualitative assessments. We can resume the qualitative assessment for any reporting unit in any subsequent period. When performing the two-step goodwill impairment test, the fair value of the reporting unit is determined and compared to the carrying value of the net assets allocated to the reporting unit. If the fair value of the reporting unit exceeds its carrying value, no further analysis or write-down of goodwill is required. If the fair value of the reporting unit is less than the carrying value of its net assets, the implied fair value of the reporting unit is allocated to all its underlying assets and liabilities, including both recognized and unrecognized tangible and intangible assets, based on their fair value. If necessary, goodwill is then written down to its implied fair value. Intangible Assets In connection with our acquisitions, we have acquired certain intangible assets to which value has been assigned based on our estimates. Intangible assets that are deemed to have an indefinite life are not amortized, but are subject to an annual impairment test, or when events or circumstances dictate, more frequently. The indefinite-life intangible asset impairment test consists of a comparison of the fair value of the indefinite-life intangible asset with its carrying amount. If the carrying amount exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. If the fair value exceeds its carrying amount, the indefinite-life intangible asset is not considered impaired. Other intangible assets assigned finite useful lives are amortized on a straight-line basis over their estimated useful lives. Contingencies —Litigation On an ongoing basis, we assess the potential liabilities related to any lawsuits or claims brought against us. While it is typically very difficult to determine the timing and ultimate outcome of such actions, we use our best judgment to determine if it is probable that we will incur an expense related to the settlement or final adjudication of such matters and whether a reasonable estimation of such probable loss, if any, can be made. In assessing probable losses, we take into consideration estimates of the amount of insurance recoveries, if any, which are recorded as assets when recoverability is probable. We accrue a liability when we believe a loss is probable and the amount of loss can be reasonably estimated. Due to the inherent uncertainties related to the eventual outcome of litigation and potential insurance recoveries, it is possible that certain matters may be resolved for amounts materially different from any provisions or disclosures that we have previously made. Advertising Costs Advertising costs are expensed as incurred except those costs which result in tangible assets, such as brochures, which are treated as prepaid expenses and charged to expense as consumed. Advertising costs consist of media advertising as well as brochure, production and direct mail costs. Media advertising was $242.8 million , $205.2 million and $205.8 million , and brochure, production and direct mail costs were $127.1 million , $136.7 million and $137.1 million for the years 2015 , 2014 and 2013 , respectively. Derivative Instruments We enter into various forward, swap and option contracts to manage our interest rate exposure and to limit our exposure to fluctuations in foreign currency exchange rates and fuel prices. These instruments are recorded on the balance sheet at their fair value and the vast majority are designated as hedges. We also use non-derivative financial instruments designated as hedges of our net investment in our foreign operations and investments. Although certain of our derivative financial instruments do not qualify or are not accounted for under hedge accounting, we do not hold or issue derivative financial instruments for trading or other speculative purposes. At inception of the hedge relationship, a derivative instrument that hedges the exposure to changes in the fair value of a firm commitment or a recognized asset or liability is designated as a fair value hedge. A derivative instrument that hedges a forecasted transaction or the variability of cash flows related to a recognized asset or liability is designated as a cash flow hedge. Changes in the fair value of derivatives that are designated as fair value hedges are offset against changes in the fair value of the underlying hedged assets, liabilities or firm commitments. Gains and losses on derivatives that are designated as cash flow hedges are recorded as a component of Accumulated other comprehensive loss until the underlying hedged transactions are recognized in earnings. The foreign currency transaction gain or loss of our non-derivative financial instruments designated as hedges of our net investment in foreign operations and investments are recognized as a component of Accumulated other comprehensive loss along with the associated foreign currency translation adjustment of the foreign operation. On an ongoing basis, we assess whether derivatives used in hedging transactions are "highly effective" in offsetting changes in the fair value or cash flow of hedged items. We use the long-haul method to assess hedge effectiveness using regression analysis for each hedge relationship under our interest rate, foreign currency and fuel hedging programs. We apply the same methodology on a consistent basis for assessing hedge effectiveness to all hedges within each hedging program (i.e., interest rate, foreign currency and fuel). We perform regression analyses over an observation period of up to three years, utilizing market data relevant to the hedge horizon of each hedge relationship. High effectiveness is achieved when a statistically valid relationship reflects a high degree of offset and correlation between the changes in the fair values of the derivative instrument and the hedged item. The determination of ineffectiveness is based on the amount of dollar offset between the change in fair value of the derivative instrument and the change in fair value of the hedged item at the end of the reporting period. If it is determined that a derivative is not highly effective as a hedge or hedge accounting is discontinued, any change in fair value of the derivative since the last date at which it was determined to be effective is recognized in earnings. In addition, the ineffective portion of our highly effective hedges is immediately recognized in earnings and reported in Other income (expense) in our consolidated statements of comprehensive income (loss). Cash flows from derivative instruments that are designated as fair value or cash flow hedges are classified in the same category as the cash flows from the underlying hedged items. In the event that hedge accounting is discontinued, cash flows subsequent to the date of discontinuance are classified within investing activities. Cash flows from derivative instruments not designated as hedging instruments are classified as investing activities. We consider the classification of the underlying hedged item’s cash flows in determining the classification for the designated derivative instrument’s cash flows. We classify derivative instrument cash flows from hedges of benchmark interest rate or hedges of fuel expense as operating activities due to the nature of the hedged item. Likewise, we classify derivative instrument cash flows from hedges of foreign currency risk on our newbuild ship payments as investing activities and derivative instrument cash flows from hedges of foreign currency risk on debt payments as financing activities. Foreign Currency Translations and Transactions We translate assets and liabilities of our foreign subsidiaries whose functional currency is the local currency, at exchange rates in effect at the balance sheet date. We translate revenues and expenses at weighted-average exchange rates for the period. Equity is translated at historical rates and the resulting foreign currency translation adjustments are included as a component of Accumulated other comprehensive loss , which is reflected as a separate component of Shareholders' equity . Exchange gains or losses arising from the remeasurement of monetary assets and liabilities denominated in a currency other than the functional currency of the entity involved are immediately included in our earnings, except for certain liabilities that have been designated to act as a hedge of a net investment in a foreign operation or investment. Exchange gains were $34.6 million , $49.5 million and $13.4 million for the years 2015 , 2014 and 2013 , respectively, and were recorded within Other income (expense) . The majority of our transactions are settled in United States dollars. Gains or losses resulting from transactions denominated in other currencies are recognized in income at each balance sheet date. Concentrations of Credit Risk We monitor our credit risk associated with financial and other institutions with which we conduct significant business and, to minimize these risks, we select counterparties with credit risks acceptable to us and we seek to limit our exposure to an individual counterparty. Credit risk, including but not limited to counterparty nonperformance under derivative instruments, our credit facilities and new ship progress payment guarantees, is not considered significant, as we primarily conduct business with large, well-established financial institutions, insurance companies and export credit agencies many of which we have long-term relationships with and which have credit risks acceptable to us or where the credit risk is spread out among a large number of counterparties. As of December 31, 2015, we had counterparty credit risk exposure under our derivative instruments of approximately $4.8 million , which was limited to the cost of replacing the contracts in the event of non-performance by the counterparties to the contracts, all of which are currently our lending banks. As of December 31, 2014, we did not have any exposure under our derivative instruments. We do not anticipate nonperformance by any of our significant counterparties. In addition, we have established guidelines we follow regarding credit ratings and instrument maturities to maintain safety and liquidity. We do not normally require collateral or other security to support credit relationships; however, in certain circumstances this option is available to us. Earnings Per Share Basic earnings per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during each period. Diluted earnings per share incorporates the incremental shares issuable upon the assumed exercise of stock options and conversion of potentially dilutive securities. Stock-Based Employee Compensation We measure and recognize compensation expense at the estimated fair value of employee stock awards. Compensation expense for awards and the related tax effects are recognized as they vest. We use the estimated amount of expected forfeitures to calculate compensation costs for all outstanding awards. Segment Reporting We operate five wholly-owned cruise brands, Royal Caribbean International, Celebrity Cruises, Azamara Club Cruises, Pullmantur and CDF Croisières de France. In addition, we have a 50% investment in a joint venture with TUI AG which operates the brand TUI Cruises. We believe our global brands possess the versatility to enter multiple cruise market segments within the cruise vacation industry. Although each of our brands has its own marketing style as well as ships and crews of various sizes, the nature of the products sold and services delivered by our brands share a common base (i.e., the sale and provision of cruise vacations). Our brands also have similar itineraries as well as similar cost and revenue components. In addition, our brands source passengers from similar markets around the world and operate in similar economic environments with a significant degree of commercial overlap. As a result, our brands (including TUI Cruises) have been aggregated as a single reportable segment based on the similarity of their economic characteristics, types of consumers, regulatory environment, maintenance requirements, supporting systems and processes as well as products and services provided. Our Chairman and Chief Executive Officer has been identified as the chief operating decision-maker and all significant operating decisions including the allocation of resources are based upon the analyses of the Company as one segment. Information by geographic area is shown in the table below. Passenger ticket revenues are attributed to geographic areas based on where the reservation originates. 2015 2014 2013 Passenger ticket revenues: United States 55% 53% 52% All other countries 45% 47% 48% Recent Accounting Pronouncements In May 2014, amended GAAP guidance was issued to clarify the principles used to recognize revenue for all entities. The guidance is based on the principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard also requires more detailed disclosures and provides additional guidance for transactions that were not comprehensively addressed in the prior accounting guidance. This guidance must be applied using one of two retrospective application methods. In August 2015, the effective date of this guidance was deferred by one year and will now be effective for our annual reporting period beginning after December 15, 2017, including interim periods therein. Early adoption is permitted for our annual reporting period beginning after December 15, 2016, including interim periods therein. We are currently evaluating the impact, if any, of the adoption of this newly issued guidance to our consolidated financial statements. In August 2014, GAAP guidance was issued requiring management to evaluate, at each annual and interim reporting period, whether there are conditions or events that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date the financial statements are issued and provide related disclosures. This guidance will be effective for our annual reporting period ending after December 15, 2016 and for annual periods and interim periods thereafter. Early adoption is permitted. The adoption of this newly issued guidance is not expected to have an impact to our consolidated financial statements. In January 2015, amended GAAP guidance was issued changing the requirements for reporting extraordinary and unusual items in the income statement. The update eliminates the concept of extraordinary items. The presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained and will be expanded to include items that are both unusual in nature and infrequently occurring. A reporting entity may apply the amendments prospectively or retrospectively to all periods presented in the financial statements. The guidance will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The adoption of this newly issued guidance is not expected to have an impact to our consolidated financial statements. In February 2015, amended GAAP guidance was issued affecting current consolidation guidance. The guidance changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. This guidance must be applied using one of two retrospective application methods and will be effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in any interim period. The adoption of this newly issued guidance is not expected to have an impact to our consolidated financial statements. In April 2015, amended GAAP guidance was issued simplifying the presentation of debt issuance costs. The guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by these amendments. Additionally, in August 2015, amended GAAP guidance was issued to clarify the presentation of debt issuance costs associated with line-of-credit arrangements. The amendments continue to allow an entity to present debt issuance costs as an asset with subsequent amortization over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. This guidance should be applied on a retrospective basis, wherein the balance sheet of each individual period presented should be adjusted to reflect the period-specific effects of applying the new guidance. The guidance will be effective for financial statements issued for fiscal years beginning after December 15, 2015 and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been previously issued. The adoption of this newly issued guidance is not expected to have an impact to our consolidated financial statements, with the exception of reclassifying debt issuance costs from Other assets to be reflected as a reduction of our current and long-term liabilities. In April 2015, amended GAAP guidance was issued to provide a practical expedient for the measurement date of an employer's defined benefit obligation and plan assets. The guidance provides a practical expedient for entities with a fiscal year-end that does not coincide with a month-end and for contributions or significant events that occur between the month-end date and an entity's fiscal year end. The guidance will be effective for financial statements issued for fiscal years beginning after December 15, 2015 and interim periods within those fiscal years. Earlier application is permitted. The adoption of this newly issued guidance is not expected to have an impact to our consolidated financial statements. In April 2015, amended GAAP guidance was issued to clarify a customer’s accounting for fees paid in a cloud computing arrangement. The amendments provide guidance to customers about whether a cloud computing arrangement includes a software license or if the arrangement should be accounted for as a service contract. This guidance will impact the accounting of software licenses but will not change a customer’s accounting for service contracts. The guidance will be effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. An entity can elect to adopt the amendments either prospectively or retrospectively. The adoption of this newly issued guidance is not expected to have a material impact to our consolidated financial statements. In July 2015, amended GAAP guidance was issued to simplify the measurement of inventory for all entities. The amendments apply to all inventory that is measured using first-in, first-out or average cost. The guidance requires an entity to measure inventory at the lower of cost and net realizable value. The guidance must be applied prospectively and will be effective for our interim and annual reporting periods beginning after December 15, 2016. Early adoption is permitted as of the beginning of an interim or annual reporting period. The adoption of this newly issued guidance is not expected to have a material impact to our consolidated financial statements. In September 2015, amended GAAP guidance was issued to simplify the accounting for measurement-period adjustments related to business combinations. The amendments require that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustments are determined and eliminates the requirement to retroactively adjust the provisional amounts recognized at the acquisition date. The guidance will be effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The amendments should be applied prospectively to measurement period adjustments that occur after the effective date. Early adoption is permitted for financial statements that have not been issued. The adoption of this newly issued guidance is not expected to have a material impact to our consolidated financial statements. In November 2015, amended GAAP guidance was issued to simplify the presentation of deferred income taxes. The amendments require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position and eliminates the classification between current and noncurrent amounts. The guidance will be effective for financial statements issued for fiscal years beginning after December 15, 2016 and interim periods within those fiscal years. An entity can elect to adopt the amendments either prospectively or retrospectively. Early adoption is permitted as of the beginning of an interim or annual reporting period. The adoption of this newly issued guidance is not expected to have a material impact to our consolidated financial statements. In January 2016, amended GAAP guidance was issued to address certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The amendments primarily impact the accounting for certain equity investments, the accounting for financial liabilities subject to the fair value option, the presentation and disclosure requirements for financial instruments and change the assessment of valuation allowances related to recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. The guidance will be effective for financial statements issued for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Early adoption is permitted for financial statements of fiscal years and interim periods that have not yet been issued or that have not yet been made available for issuance as of the beginning of the fiscal year of adoption. The adoption of this newly issued guidance is not expected to have a material impact to our consolidated financial statements. Reclassifications On January 1, 2015, we adopted ASC 853, Service Concession Arrangements ("ASC 853"), using the modified retrospective approach. Due to the adoption of ASC 853, $41.9 million has been reclassified in the consolidated balance sheet, as of December 31, 2014, from Property and equipment, net to Other assets in order to conform to the current year presentation. The adoption of this guidance did not have a material impact to our consolidated financial statements as of and for the year ended December 31, 2015. For the year ended December 31, 2014 and December 31, 2013, a net deferred income tax expense of $3.4 million and $3.3 million , respectively, has been reclassified in the consolidated statements of cash flows from Other, net to Net deferred income tax (benefit) expense within Net cash provided by operating activities in order to conform to the current year presentation. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill [Abstract] | |
Goodwill | Goodwill The carrying amount of goodwill attributable to our Royal Caribbean International and Pullmantur reporting units and the changes in such balances during the years ended December 31, 2015 and 2014 were as follows (in thousands): Royal Pullmantur Total Balance at December 31, 2013 $ 287,124 $ 152,107 $ 439,231 Foreign currency translation adjustment (166 ) (18,523 ) (18,689 ) Balance at December 31, 2014 286,958 133,584 420,542 Impairment charge — (123,814 ) (123,814 ) Foreign currency translation adjustment (194 ) (9,770 ) (9,964 ) Balance at December 31, 2015 $ 286,764 $ — $ 286,764 During the fourth quarter of 2015, we performed our annual impairment review of goodwill for the Royal Caribbean International reporting unit. We elected to bypass the qualitative assessment and proceeded directly to step one of the two-step goodwill impairment test to corroborate the results of recent years' qualitative assessments. As a result of the test, we determined the fair value of the Royal Caribbean International reporting unit exceeded its carrying value by approximately 90% resulting in no impairment to Royal Caribbean International goodwill. Additionally, we performed an interim impairment evaluation of Pullmantur's goodwill in connection with the preparation of our financial statements during the quarter ended September 30, 2015. We estimated the fair value of the Pullmantur reporting unit using a probability-weighted discounted cash flow model. The estimation of future cash flows requires our significant judgment when making assumptions of expected revenues, operating costs, marketing, selling and administrative expenses, interest rates, ship additions and retirements as well as assumptions regarding the cruise vacation industry’s competitive environment and general and economic business conditions, among other factors. Pullmantur is a brand that historically targeted primarily the Spanish and Latin American markets. These markets have experienced significant volatility and the brand has adopted various changes to its operating strategy as a result. Most recently, in response to favorable economic expectations in Latin America, especially Brazil, management undertook a positioning of the brand to increase sourcing of guests and to deliver deployment for Latin American consumers; transferring newer and more efficient capacity to the brand; and selling Pullmantur’s non-core businesses to allow the brand to focus on the core cruise business. However, the Latin American resurgence was short lived and the core Latin American economies, including Brazil, Mexico, Argentina and Venezuela, have regressed and their currencies have materially depreciated versus the US dollar. Most notably, the Brazilian Real devalued by approximately 22% relative to the US dollar during the third quarter of 2015. In light of the increased challenges facing Pullmantur’s Latin American strategy, we made a decision to significantly change that strategy from growing the brand through vessel transfers to a right-sizing strategy during the third quarter of 2015. This right-sizing strategy includes reducing our exposure to Latin America, refocusing on the brand’s core market of Spain and, consequently, reducing the size of Pullmantur’s fleet. This strategic change includes a decision to redeploy Pullmantur’s Empress to the Royal Caribbean International brand as well as a decision to cancel the intended transfer of the Majesty of the Seas to Pullmantur. As we previously disclosed, the planned growth of the Pullmantur fleet through the transfer of vessels into the brand has been the most significant assumption within Pullmantur's projected cash flows supporting the recoverability of the Pullmantur reporting unit’s goodwill and trademarks and trade names. Our decision to reduce the size of Pullmantur’s fleet significantly decreases the cash flow projections which have been the basis of our impairment analysis. During the third quarter of 2015, due to the previously described market conditions and our recent decision to reduce our exposure to Latin America, refocus on the brand’s core Spanish market and reduce the brand's overall capacity, we reviewed the two-step goodwill impairment test based on the updated cash flow projections. As a result of this analysis, we determined that the carrying value of the Pullmantur reporting unit exceeded its fair value. Accordingly, upon the completion of the two-step impairment test, we recognized a goodwill impairment charge of $123.8 million . The charge reflects the full carrying amount of the goodwill leaving Pullmantur with no goodwill on its books. This impairment charge was recognized in earnings during the third quarter of 2015 and is reported within Impairment of Pullmantur related assets within our consolidated statements of comprehensive income (loss). Refer to Note 14. Fair Value Measurements and Derivative Instruments for further discussion. For the years ended December 31, 2014 and December 31, 2013, we did not record an impairment of goodwill for our reporting units. Accumulated goodwill impairment losses as of December 31, 2015 were $443.0 million attributable to our Pullmantur reporting unit. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets are reported in Other assets in our consolidated balance sheets and consist of the following (in thousands): 2015 2014 Indefinite-life intangible asset—Pullmantur trademarks and trade names $ 188,038 $ 214,112 Impairment charge (174,285 ) — Foreign currency translation adjustment (13,753 ) (26,074 ) Total $ — $ 188,038 As described in Note 3. Goodwill , the increased challenges facing Pullmantur's Latin American strategy led to our decision to significantly change Pullmantur's strategy from growing the brand through vessel transfers to a right-sizing strategy causing us to negatively adjust our cash flow projections for the Pullmantur reporting unit. As a result, during the third quarter of 2015 , we performed an interim impairment evaluation of Pullmantur's trademarks and trade names using a discounted cash flow model and the relief-from-royalty method to compare the fair value of these indefinite-lived intangible assets to its carrying value. We used a discount rate comparable to the rate used in valuing the Pullmantur reporting unit in our goodwill impairment test. Based on our updated cash flow projections, we determined that the fair value of Pullmantur’s trademarks and trade names no longer exceeded their carrying value. Accordingly, we recognized an impairment charge of approximately $174.3 million to write down trademarks and trade names to their fair value. The charge reflects the full carrying amount of the trademark and trade names leaving Pullmantur with no intangible assets on its books. This impairment charge was recognized in earnings during the third quarter of 2015 and is reported within Impairment of Pullmantur related assets within our consolidated statements of comprehensive income (loss). Refer to Note 14. Fair Value Measurements and Derivative Instruments for further discussion. For the years ended December 31, 2014 and December 31, 2013, we did not record an impairment of Pullmantur's trademark and trade names. Finite-life intangible assets had a net carrying amount of zero as of December 31, 2015 , December 31, 2014 and December 31, 2013. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consists of the following (in thousands): 2015 2014 Ships $ 22,102,025 $ 21,620,336 Ship improvements 2,019,294 1,904,524 Ships under construction 734,998 561,779 Land, buildings and improvements, including leasehold improvements and port facilities 337,109 303,394 Computer hardware and software, transportation equipment and other 1,025,264 889,579 Total property and equipment 26,218,690 25,279,612 Less—accumulated depreciation and amortization (7,440,912 ) (7,085,985 ) $ 18,777,778 $ 18,193,627 Ships under construction include progress payments for the construction of new ships as well as planning, design, interest and other associated costs. We capitalized interest costs of $26.5 million , $28.8 million and $17.9 million for the years 2015 , 2014 and 2013 , respectively. We review our long-lived assets for impairment whenever events or changes in circumstances indicate potential impairment. In conjunction with performing the two-step goodwill impairment test for the Pullmantur reporting unit, we identified that the estimated fair value of certain long-lived assets, consisting of two ships and three aircraft were less than their carrying values. As a result of this determination, we evaluated these assets pursuant to our long-lived asset impairment test. The decision to significantly reduce our exposure to the Latin American market negatively impacted the expected undiscounted cash flows of these vessels and aircraft and resulted in an impairment charge of $113.2 million to write down these assets to their estimated fair values. This impairment charge was recognized in earnings during the third quarter of 2015 and is reported within Impairment of Pullmantur related assets within our consolidated statements of comprehensive income (loss). Additionally, during 2013, the fair value of Pullmantur's aircraft were determined to be less than their carrying value which led to a restructuring related impairment charge of $13.5 million . Furthermore, Pullmantur's non-core businesses met the accounting criteria to be classified as held for sale during the fourth quarter of 2013 which led to restructuring related impairment charges of $18.2 million to adjust the carrying value of property and equipment held for sale to its fair value, less cost to sell. These impairment charges were reported within Restructuring and related impairment charges in our consolidated statements of comprehensive income (loss). During 2015 , our conditional agreements with STX France to build two ships of a new generation of Celebrity Cruises ships, known as "Project Edge" became effective. In addition, our conditional agreement with Meyer Werft to build the fourth and fifth Quantum-class ships for Royal Caribbean International became effective. Refer to Note 15. Commitments and Contingencies for further information. During 2015, Pullmantur sold Ocean Dream to an unrelated third party for $34.6 million . The purchase price was paid via a secured promissory note, payable over a nine year period. The buyer's obligations under this loan accrues interest at the rate of 6.0% per annum and are secured by a first priority mortgage on the ship. The sale resulted in an immaterial gain that will be deferred and is expected to be recognized at the end of the nine year term. During 2014, we sold Celebrity Century to a subsidiary of Skysea Holding International Ltd. ("Skysea Holding") for $220.0 million in cash. We agreed to charter the Celebrity Century from the buyer until April 2015 to fulfill existing passenger commitments. The sale resulted in a loss of $17.4 million that was recognized in earnings during the third quarter of 2014 and is reported within Other operating expenses in our consolidated statements of comprehensive income (loss). We subsequently acquired a 35% equity stake in Skysea Holding in November 2014. Refer to Note 6. Other Assets for further discussion. In December 2014, we terminated the leasing of Brilliance of the Seas under the 25 year operating lease originally entered into in July 2002, denominated in British pound sterling. As part of the agreement, we purchased the Brilliance of the Seas for a net settlement purchase price of approximately £175.4 million or $275.4 million . At the date of purchase, the total carrying amount of the ship, including capital improvements previously accounted for as leasehold improvements, was $330.5 million which approximated the estimated fair market value of the ship. We funded the purchase using proceeds from our $1.2 billion unsecured revolving credit facility. Refer to Note 7. Long-Term Debt for further information. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2015 | |
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 December 31, 2015 and December 31, 2014, our investment, including equity and loans, in TUI Cruises was approximately $293.8 million and $370.1 million , respectively. This amount was included within Other assets in our consolidated balance sheets. In addition, we and TUI AG, our joint venture partner, have each guaranteed the repayment of 50% of a bank loan originally borrowed by TUI Cruises in 2011 and refinanced in May 2015. As of December 31, 2015, the outstanding principal amount of the loan was €137.4 million , or approximately $149.4 million based on the exchange rate at December 31, 2015. In addition the maturity date was extended from May 2016 to May 2022. Notwithstanding this, the lenders have agreed to release each shareholder's guarantee in 2018. The loan continues to amortize quarterly and to be secured by first mortgages on the Mein Schiff 1 and Mein Schiff 2 vessels. Based on current facts and circumstances, we do not believe potential obligations under our guarantee of this bank loan are probable. A portion of the additional proceeds received by TUI Cruises in connection with the refinancing of the bank loan discussed above were used during the second quarter of 2015 to repay in full the outstanding balance of the debt facility we originally provided to TUI Cruises in 2011 in connection with our sale of Celebrity Mercury . Our investment amount and the potential obligations under the bank loan guarantee are substantially our maximum exposure to loss. We have determined that we are not the primary beneficiary of TUI Cruises. We believe that the power to direct the activities that most significantly impact TUI Cruises’ economic performance are shared between ourselves and TUI AG. All the significant operating and financial decisions of TUI Cruises require the consent of both parties, which we believe creates shared power over TUI Cruises. Accordingly, we do not consolidate this entity and account for this investment under the equity method of accounting. TUI Cruises has four newbuild ships on order with Meyer Turku scheduled to be delivered in each of 2016, 2017, 2018 and 2019. TUI Cruises received commitments for the secured financing of the ships for up to 80% of the contract price of each ship on order. Finnvera has agreed to guarantee to the lenders payment of 95% of the financing. The remaining portion of the contract price of the ships will be funded through an existing €150.0 million bank facility and TUI Cruises’ cash flows from operations. The various ship construction and credit agreements include certain restrictions on each of our and TUI AG’s ability to reduce our current ownership interest in TUI Cruises below 37.55% through 2021. In March 2015, we announced the pending sale of Splendour of the Seas to TUI Cruises. The sale for €188.0 million is scheduled to be completed in April 2016 in order to retain the future revenues to be generated for sailings through that date. After the sale, TUI Cruises will lease the ship to Thomson Cruises, a subsidiary of TUI AG, which will operate the ship. The purchase price will be financed by us under a secured credit agreement to be repaid over 10 years. The resulting term loan will be 50% guaranteed by TUI AG and will be secured by a first mortgage on the ship. Interest will accrue at the rate of 6.25% per annum. We executed certain forward contracts to lock in the sales price of the ship at approximately $213 million . We expect to recognize a gain on the sale, which we do not expect will have a material effect to our consolidated financial statements. We have determined that Grand Bahama Shipyard Ltd. ("Grand Bahama"), a ship repair and maintenance facility in which we have a 40% noncontrolling interest, is a VIE. The facility serves cruise and cargo ships, oil and gas tankers, and offshore units. We utilize this facility, among other ship repair facilities, for our regularly scheduled drydocks and certain emergency repairs as may be required. During the year ended December 31, 2015, we made payments of $21.7 million to Grand Bahama for ship repair and maintenance services. We have determined that we are not the primary beneficiary of this facility, as we do not have the power to direct the activities that most significantly impact the facility's economic performance. Accordingly, we do not consolidate this entity and we account for this investment under the equity method of accounting. As of December 31, 2015 , the net book value of our investment in Grand Bahama was approximately $51.2 million , consisting of $12.6 million in equity and $38.6 million in loans. As of December 31, 2014 , the net book value of our investment in Grand Bahama was approximately $53.8 million , consisting of $7.7 million in equity and $46.1 million in loans. These amounts represent our maximum exposure to loss. During 2015 and 2014, we received approximately $3.1 million and $3.6 million , respectively, in principal and interest payments related to a loan in accrual status from Grand Bahama, which was paid in full during 2015. The remaining amount of our loan to Grand Bahama is in non-accrual status and is included within Other assets in our consolidated balance sheets for which we received payments of approximately $4.4 million during 2015 . We monitor credit risk associated with this 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 December 31, 2015 . We have determined that Skysea Holding, in which we have a 35% noncontrolling interest, is a VIE for which we are not the primary beneficiary, as we do not have the power to direct the activities that most significantly impact the entity's economic performance. Accordingly, we do not consolidate this entity and we account for this investment under the equity method of accounting. In addition, we and Ctrip.com International Ltd, which also owns 35% of Skysea Holding, each provided a debt facility to a wholly owned subsidiary of Skysea Holding in the amount of $80.0 million . Interest under these facilities, which mature in January 2030, initially accrues at a rate of 3.0% per annum with an increase of at least 0.5% every two years through maturity. The facilities, which are pari passu to each other, are each 100% guaranteed by Skysea Holding and are secured by a first priority mortgage on the ship Golden Era , formerly known as Celebrity Century , which we sold to a wholly owned subsidiary of Skysea Holding in September 2014. As of December 31, 2015 and December 31, 2014, our investment in Skysea Holding and its subsidiaries, including equity and loans, was approximately $99.8 million and $106.3 million , respectively. These amounts were included within Other assets in our consolidated balance sheets and represent our maximum exposure to loss. During 2015, Skysea Holding and its subsidiaries commenced operations through the brand SkySea Cruises. Our share of income from investments accounted for under the equity method of accounting, including the entities discussed above, was $81.0 million , $51.6 million and $32.0 million for the years ended December 31, 2015 , 2014 and 2013 , respectively, and was recorded within Other income (expense) . Additionally, we received $33.3 million , $5.8 million and $5.1 million of dividends from our equity method investees for the years ended December 31, 2015 , 2014 and 2013 , respectively. Also, we provide ship management and procurement services to TUI Cruises GmbH and Skysea Holding and recorded $20.2 million , $8.5 million and $9.1 million in revenues and $15.7 million , $4.0 million and $4.5 million in expenses for these services during the years ended December 31, 2015, 2014 and 2013, respectively, which was recorded within Onboard and other revenues and Other operating expenses , respectively . Summarized financial information for our affiliates accounted for under the equity method of accounting was as follows (in thousands): As of December 31, 2015 2014 Current Assets $ 315,264 $ 325,527 Non Current Assets 2,246,809 1,929,182 Total Assets $ 2,562,073 $ 2,254,709 Current Liabilities $ 585,887 $ 513,842 Non Current Liabilities 1,231,262 958,988 Total Liabilities $ 1,817,149 $ 1,472,830 Equity Attributable to: Noncontrolling Interest $ 1,683 $ 2,795 For the period ended December 31, 2015 2014 2013 Total Revenues $ 990,172 $ 797,441 $ 605,293 Total Expenses (830,898 ) (682,430 ) (538,922 ) Net Income $ 159,274 $ 115,011 $ 66,371 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | e following (in thousands): 2015 2014 $1.4 billion unsecured revolving credit facility, LIBOR plus 1.50%, currently 1.92% and a facility fee of 0.25%, due 2020 $ 945,000 $ 713,000 $1.2 billion unsecured revolving credit facility, LIBOR plus 1.50%, currently 1.89% and a facility fee of 0.25%, due 2018 895,000 778,000 Unsecured senior notes and senior debentures, 5.25% to 7.50%, due 2016, 2018, 2022 and 2027 1,434,542 1,721,190 $742.1 million unsecured senior notes, LIBOR plus 1.30%, currently 1.83%, due through 2027 711,180 — $530 million unsecured term loan, LIBOR plus 0.51%, due through 2015 — 37,857 $519 million unsecured term loan, LIBOR plus 0.45%, currently 0.98%, due through 2020 216,311 259,573 $420 million unsecured term loan, 5.41%, due through 2021 207,223 241,827 $420 million unsecured term loan, LIBOR plus 1.85%, currently 2.38%, due through 2021 210,000 245,000 €159.4 million unsecured term loan, EURIBOR plus 1.58%, currently 1.60%, due through 2021 86,650 112,540 $524.5 million unsecured term loan, LIBOR plus 0.50%, currently 0.96%, due through 2021 262,250 305,958 $566.1 million unsecured term loan, LIBOR plus 0.37%, currently 0.89%, due through 2022 306,621 353,793 $1.1 billion unsecured term loan, LIBOR plus 1.85%, currently 2.38%, due through 2022 537,426 614,203 $632.0 million unsecured term loan, LIBOR plus 0.40%, currently 0.86%, due through 2023 421,306 473,969 $673.5 million unsecured term loan, LIBOR plus 0.40%, currently 0.93%, due through 2024 505,106 561,228 $65.0 million unsecured term loan, LIBOR plus 1.75%, currently 2.17%, due through 2019 71,500 51,100 $1.0 million unsecured term loan, 3.00%, due through 2015 — 750 $380.0 million unsecured term loan, LIBOR plus 1.75%, currently 2.17%, due 2018 380,000 380,000 $791.1 million unsecured term loan, LIBOR plus 1.30%, currently 1.83%, due through 2026 725,182 791,108 $290.0 million unsecured term loan, LIBOR plus 1.75%, currently 2.17%, due 2018 290,000 290,000 €365 million unsecured term loan, EURIBOR plus 1.75%, currently 1.75%, due 2017 396,755 441,687 $7.3 million unsecured term loan, LIBOR plus 2.5%, currently 3.02%, due through 2023 4,440 4,915 $30.3 million unsecured term loan, LIBOR plus 3.75%, currently 4.24%, due through 2021 11,793 13,603 Capital lease obligations 48,770 52,647 8,667,055 8,443,948 Less—current portion (899,677 ) (799,630 ) Long-term portion $ 7,767,378 $ 7,644,318 In April 2015, we took delivery of Anthem of the Seas . To finance the purchase, we borrowed $742.1 million under a previously committed unsecured term loan which is 95% guaranteed by Euler Hermes Deutschland AG ("Hermes"), the official export credit agency of Germany. The loan amortizes semi-annually over 12 years and bears interest at LIBOR plus a margin of 1.30% , totaling 1.83% as of December 31, 2015. Refer to Note 14. Fair Value Measurements and Derivative Instruments for information regarding interest rate swap agreements related to this loan. In June 2015, we amended and restated our $1.1 billion unsecured revolving credit facility due July 2016. The amendment reduced the applicable margin and facility fee and extended the termination date to June 2020. The applicable margin and facility fee vary with our debt rating and were 1.50% and 0.25% , respectively, as of December 31, 2015 . We have the right to extend the termination date by up to two years, subject to lender consent. Furthermore, in October 2015, we received increased lender commitments in the amount of $300.0 million , bringing our total capacity under this facility to $1.4 billion . In July 2015, we also amended our $1.2 billion unsecured revolving credit facility due August 2018 to reduce pricing in line with the amended pricing of the $1.1 billion unsecured revolving credit facility. These amendments did not result in the extinguishment of debt. Accordingly, as of December 31, 2015, we have an aggregate revolving borrowing capacity of $2.6 billion . In July 2015, we also amended our $380.0 million , €365.0 million , $290.0 million and $65.0 million unsecured term loans due at various dates from 2016 through 2019 to reduce the applicable margins. The margins are currently 1.75% for each loan based on our debt rating as of December 31, 2015. The termination date of the $290 million unsecured term loan was extended from February 2016 to February 2018. None of these amendments resulted in the extinguishment of debt. In February 2016, we amended our unsecured term loans for Oasis of the Seas and Allure of the Seas primarily to reduce the margins on those facilities. The interest rate on both the $420.0 million floating rate tranche of the Oasis of the Seas term loan and the $1.1 billion Allure of the Seas term loan was reduced from LIBOR plus 1.85% to LIBOR plus 1.65% . These amendments did not result in the extinguishment of debt. Certain of our unsecured ship financing term loans are guaranteed by the export credit agency in the respective country in which the ship is constructed. In consideration for these guarantees, depending on the financing arrangement, we pay to the applicable export credit agency fees from (1) 1.48% per annum based on the outstanding loan balance semi-annually over the term of the loan (subject to adjustment under certain of our facilities based upon our credit ratings) or (2) an upfront fee of 2.35% to 2.37% of the maximum loan amount. We amortize the fees that are paid upfront over the life of the loan and those that are paid semi-annually over each respective payment period. We classify these fees within Debt issuance costs in our consolidated statements of cash flows and within Other assets in our consolidated balance sheets. Under certain of our agreements, the contractual interest rate, facility fee and/or export credit agency fee vary with our debt rating. The unsecured senior notes and senior debentures are not redeemable prior to maturity, except that certain series may be redeemed upon the payment of a make-whole premium. Following is a schedule of annual maturities on long-term debt including capital leases as of December 31, 2015 for each of the next five years (in thousands): Year 2016 $ 899,677 2017 938,036 2018 2,252,577 2019 609,901 2020 1,483,728 Thereafter 2,483,136 $ 8,667,055 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders' Equity During the fourth and third quarters of 2015, we declared a cash dividend on our common stock of $0.375 per share which was paid in the first quarter of 2016 and fourth quarter of 2015 , respectively. We also declared and paid a cash dividend on our common stock of $0.30 per share during the first and second quarters of 2015 . During the fourth and third quarters of 2014 , we declared a cash dividend on our common stock of $0.30 per share which was paid in the first quarter of 2015 and fourth quarter of 2014 , respectively. We also declared and paid a cash dividend on our common stock of $0.25 per share during the first and second quarters of 2014 . During the first quarter of 2014 , we also paid a cash dividend on our common stock of $0.25 per share which was declared during the fourth quarter of 2013 . In October 2015, our board of directors authorized a common stock repurchase program for up to $500 million . The timing and number of shares purchased will depend on a variety of factors including price and market conditions. Subsequently, in 2015, we executed an agreement with an investment bank to purchase a total of $200 million , of the $500 million authorized amount, of our common stock under an accelerated stock repurchase (ASR) transaction. Under the terms of the ASR agreement, on October 23, 2015, we received 1.6 million shares of our common stock to be repurchased based on current market prices in exchange for a prepayment of $200 million . The ASR transaction was settled on November 30, 2015 and an additional 0.5 million shares were delivered to us. In total, we repurchased 2.1 million shares at an average price of $95.09 per share. The final number of shares repurchased was determined upon settlement based on the average of the daily volume-weighted average prices of our common stock during the term of the transaction, less a discount. The initial shares received upon prepayment and additional shares received at settlement were recorded within Shareholders’ equity . Future stock repurchase transactions could include open market purchases or additional accelerated share repurchases. We expect to complete the program by the end of 2016. During February 2016, we repurchased an additional 2.1 million shares for a total of $150.0 million in open market transactions resulting in $150 million available for future stock repurchases. During the fourth quarter of 2014, we repurchased from A. Wilhelmsen AS, our largest shareholder, 3.5 million shares of our common stock directly from them in a private transaction at $67.45 per share, which was equal to the price paid by a third-party financial institution for the simultaneous purchase of an additional 3.5 million shares from A. Wilhelmsen AS. Total consideration paid to repurchase such shares was approximately $236.1 million and was recorded within Shareholders' equity as a component of treasury stock. |
Stock-Based Employee Compensati
Stock-Based Employee Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Employee Compensation | Stock-Based Employee Compensation We currently have awards outstanding under two stock-based compensation plans, which provide for awards to our officers, directors and key employees. The plans consist of a 2000 Stock Award Plan and a 2008 Equity Plan. Our ability to issue new awards under the 2000 Stock Award Plan terminated in accordance with the terms of the plan in September 2009. The 2008 Equity Plan, as amended, provides for the issuance of up to 11,000,000 shares of our common stock pursuant to grants of (i) incentive and non-qualified stock options, (ii) stock appreciation rights, (iii) restricted stock, (iv) restricted stock units and (v) performance shares. During any calendar year, no one individual shall be granted awards of more than 500,000 shares. Options and restricted stock units outstanding as of December 31, 2015 generally vest in equal installments over four years from the date of grant. In addition, performance shares generally vest in three years. With certain limited exceptions, options, restricted stock units and performance shares are forfeited if the recipient ceases to be a director or employee before the shares vest. Options are granted at a price not less than the fair value of the shares on the date of grant and expire not later than ten years after the date of grant. Prior to 2012, our officers received a combination of stock options and restricted stock units. Beginning in 2012, our officers instead receive their long-term incentive awards through a combination of performance share unit and restricted stock units. Each performance share unit award is expressed as a target number of performance share units based upon the fair market value of our common stock on the date the award is issued. The actual number of shares underlying each award (not to exceed 200% of the target number of performance share unit) will be determined based upon the Company's achievement of a specified performance target range. In 2015, we issued a target number of 161,479 performance share units, which will vest approximately three years following the award issue date. The performance payout of these grants will be based on return on invested capital ("ROIC") and earnings per share (“EPS”) for the year ended December 31, 2017, as may be adjusted by the Compensation Committee of our Board of Directors in early 2018 for events that are outside of management's control. In 2014, we also issued a one-time performance-based equity award to our Chairman & Chief Executive Officer in a target amount of 63,771 performance share units, with the actual number of shares payable under the grant to range from 0% to 200% of target based on our 2015 ROIC performance. In February 2016, the Compensation Committee set the payout level for this grant at 165% of target. The shares issued in settlement of this award vested in February 2016 but remain subject to restrictions on transfer until December 2017, the third anniversary of the award issuance date. We also provide an Employee Stock Purchase Plan ("ESPP") to facilitate the purchase by employees of up to 506,322 shares of common stock in the aggregate. Offerings to employees are made on a quarterly basis. Subject to certain limitations, the purchase price for each share of common stock is equal to 85% of the average of the market prices of the common stock as reported on the New York Stock Exchange on the first business day of the purchase period and the last business day of each month of the purchase period. During 2015 , 2014 and 2013 , 28,724 , 26,921 and 27,036 shares of our common stock were issued under the ESPP at a weighted-average price of $72.52 , $52.08 and $33.16 , respectively. In 1994, we granted to our Chairman and Chief Executive Officer an award of common stock, issuable in quarterly installments of 10,086 shares until the earlier of the termination of his employment or June 2014. In furtherance of this grant, we issued an aggregate of 40,344 shares of common stock in 2013 and an aggregate of 20,172 shares of common stock in 2014. Total compensation expense recognized for employee stock-based compensation for the years ended December 31, 2015 , 2014 and 2013 was as follows: Employee Stock-Based Compensation Classification of expense 2015 2014 2013 (In thousands) Marketing, selling and administrative expenses $ 36,073 $ 26,116 $ 21,178 Total compensation expense $ 36,073 $ 26,116 $ 21,178 The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option pricing model. The estimated fair value of stock options, less estimated forfeitures, is amortized over the vesting period using the graded-vesting method. We did not issue any stock options in 2015, 2014 and 2013. Stock option activity and information about stock options outstanding are summarized in the following table: Stock Option Activity Number of Weighted- Weighted- Aggregate (1) (years) (in thousands) Outstanding at January 1, 2015 706,051 $ 36.03 3.64 $ 33,182 Granted — — — — Exercised (287,379 ) $ 39.12 — — Canceled (6,863 ) $ 47.05 — — Outstanding at December 31, 2015 411,809 $ 33.69 3.12 $ 28,111 Vested and expected to vest at December 31, 2015 411,807 $ 33.69 3.12 $ 28,110 Options Exercisable at December 31, 2015 409,915 $ 33.73 3.11 $ 27,967 ___________________________________ (1) The intrinsic value represents the amount by which the fair value of stock exceeds the option exercise price as of December 31, 2015 . The total intrinsic value of stock options exercised during the years ended December 31, 2015 , 2014 and 2013 was $13.8 million , $35.9 million and $17.5 million , respectively. As of December 31, 2015, there was immaterial unrecognized compensation cost, net of estimated forfeitures, related to stock options granted under our stock incentive plan which is expected to be recognized over a weighted-average period of 0.01 years. Restricted stock units are converted into shares of common stock upon vesting or, if applicable, settle on a one -for-one basis. The cost of these awards is determined using the fair value of our common stock on the date of the grant, and compensation expense is recognized over the vesting period. Restricted stock activity is summarized in the following table: Restricted Stock Activity Number of Weighted- Non-vested share units at January 1, 2015 981,553 $ 42.68 Granted 298,998 $ 73.98 Vested (361,843 ) $ 40.04 Canceled (98,059 ) $ 45.07 Non-vested share units expected to vest as of December 31, 2015 820,649 $ 54.98 The weighted-average estimated fair value of restricted stock units granted during the year ended 2014 and 2013 was $54.60 and $36.07 , respectively. The total fair value of shares released on the vesting of restricted stock units during the years ended December 31, 2015 , 2014 and 2013 was $27.6 million , $20.7 million and $19.2 million , respectively. As of December 31, 2015 , we had $14.4 million of total unrecognized compensation expense, net of estimated forfeitures, related to restricted stock unit grants, which will be recognized over the weighted-average period of 1.13 years. Performance share awards are converted into shares of common stock upon vesting on a one -for-one basis. We estimate the fair value of each performance share when the grant is authorized and the related service period has commenced. We remeasure the fair value of our performance shares in each subsequent reporting period until the grant date has occurred, which is the date when the performance conditions are satisfied. We recognize compensation cost over the vesting period based on the probability of the service and performance conditions being achieved adjusted for each subsequent fair value measurement until the grant date. If the specified service and performance conditions are not met, compensation expense will not be recognized and any previously recognized compensation expense will be reversed. Performance stock activity is summarized in the following table: Performance Stock Activity Number of Weighted- Non-vested share units at January 1, 2015 658,886 $ 40.21 Granted 161,479 $ 71.36 Vested (241,288 ) $ 33.94 Canceled (74,866 ) $ 37.59 Non-vested share units expected to vest as of December 31, 2015 504,211 $ 53.57 The weighted-average estimated fair value of performance share units granted during the year ended 2014 and 2013 was $56.72 and $35.98 , respectively. The total fair value of shares released on the vesting of performance share units during the years ended December 31, 2015 , 2014 and 2013 was $18.3 million , $0.4 million and $0.1 million , respectively. As of December 31, 2015 , we had $11.4 million of total unrecognized compensation expense, net of estimated forfeitures, related to performance share unit grants, which will be recognized over the weighted-average period of 0.81 years. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share A reconciliation between basic and diluted earnings per share is as follows (in thousands, except per share data): Year Ended December 31, 2015 2014 2013 Net income for basic and diluted earnings per share $ 665,783 $ 764,146 $ 473,692 Weighted-average common shares outstanding 219,537 221,658 219,638 Dilutive effect of stock options, performance share awards and restricted stock awards 1,152 1,386 1,303 Diluted weighted-average shares outstanding 220,689 223,044 220,941 Basic earnings per share: Net income $ 3.03 $ 3.45 $ 2.16 Diluted earnings per share: Net income $ 3.02 $ 3.43 $ 2.14 Diluted earnings per share did not reflect options to purchase an aggregate of 1.9 million shares for the year ended December 31, 2013 because the effect of including them would have been antidilutive. There were no antidilutive shares for the year ended December 31, 2015 and December 31, 2014 . |
Retirement Plan
Retirement Plan | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Retirement Plan | Retirement Plan We maintain a defined contribution plan covering full-time shoreside employees who have completed the minimum period of continuous service. Annual contributions to the plan are discretionary and are based on fixed percentages of participants' salaries and years of service, not to exceed certain maximums. Contribution expenses were $16.8 million , $15.4 million and $13.0 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We are subject to corporate income taxes in countries where we have operations or subsidiaries. We and the majority of our ship-operating and vessel-owning subsidiaries are currently exempt from United States corporate tax on United States source income from the international operation of ships pursuant to Section 883 of the Internal Revenue Code. Regulations under Section 883 have limited the activities that are considered the international operation of a ship or incidental thereto. Accordingly, our provision for United States federal and state income taxes includes taxes on certain activities not considered incidental to the international operation of our ships. Additionally, some of our ship-operating subsidiaries are subject to income tax under the tonnage tax regimes of Malta or the United Kingdom. Under these regimes, income from qualifying activities is subject to corporate income tax, but the tax is computed by reference to the tonnage of the ship or ships registered under the relevant provisions of the tax regimes (the "relevant shipping profits"), which replaces the regular taxable income base. Income from activities not considered qualifying activities, which we do not consider significant, remains subject to Maltese or United Kingdom corporate income tax. Income tax expense (benefit) for items not qualifying under Section 883, tonnage taxes and income taxes for the remainder of our subsidiaries was approximately $11.1 million , $(20.9) million and $24.9 million and was recorded within Other income (expense) for the years ended December 31, 2015, 2014 and 2013 , respectively. In addition, all interest expense and penalties related to income tax liabilities are classified as income tax expense within Other income (expense) . For a majority of our subsidiaries, we do not expect to incur income taxes on future distributions of undistributed earnings of foreign subsidiaries. Accordingly, no deferred income taxes have been provided for the distribution of these earnings. Where we do expect to incur income taxes on future distributions of undistributed earnings, we have provided for deferred taxes, which we do not consider significant to our operations. As of December 31, 2015, the Company had Net Operating Losses (“NOLs”) in foreign jurisdictions of $309.7 million . Of these NOLs, $259.7 million carryforward indefinitely, although there are limitations to the amount of NOLs that can be utilized on an annual basis. If not utilized, $50.0 million of NOLs are subject to expiration between 2016 and 2028. The Company has not recognized any benefits related to these NOLs, as all NOLs have full valuation allowances. Net deferred tax assets and deferred tax liabilities and corresponding valuation allowances related to our operations were not material as of December 31, 2015 and 2014 . We regularly review deferred tax assets for recoverability based on our history of earnings, expectations of future earnings, and tax planning strategies. Realization of deferred tax assets ultimately depends on the existence of sufficient taxable income to support the amount of deferred taxes. A valuation allowance is recorded in those circumstances in which we conclude it is not more-likely-than-not we will recover the deferred tax assets prior to their expiration. During the fourth quarter of 2014, Spain adopted tax reform legislation, which included among other things, a reduction of the corporate income tax rate from 30% to 28% in 2015 and a further reduction to 25% in 2016. As a result, we adjusted our deferred tax assets and deferred tax liabilities in Spain to reflect the new tax rate at which we believe they will be realized. This change resulted in a net deferred income tax benefit of $10.0 million . The tax reform also amended the net operating loss carryforward rules by changing the carryforward period from 18 years to unlimited and by changing the annual utilization limitation from 25% of taxable income to 70% of taxable income for certain taxpayers, including Pullmantur. As a result of the change of the net operating loss carryforward period, we reversed a portion of the valuation allowance recorded in 2012 to the extent of 70% of the rate-adjusted deferred tax liability recorded for the basis difference between the tax and book values of the trademarks and trade names recorded at the time of the Pullmantur acquisition and other indefinite lived assets recorded. The amount of the valuation allowance reversed in the fourth quarter of 2014 was $33.5 million which was recorded as a deferred tax benefit. These deferred tax adjustments were reported within Other income (expense) in our consolidated statements of comprehensive income (loss). During the third quarter of 2015, the trademark and trade names were impaired, and therefore there is no longer a difference between the book and tax basis of the trademark and trade names. As a result of the impairment of the trademark/name, we reversed the deferred tax liability of $43.4 million and increased the deferred tax asset valuation allowance by $31.4 million , or to 100% of the deferred tax asset balance. The resulting net $12.0 million deferred tax benefit is recorded as part of our income tax provision and is reported within Other income (expense) in our consolidated statements of comprehensive income (loss). |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2015 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Changes in Accumulated Other Comprehensive Income (Loss) | Changes in Accumulated Other Comprehensive Income (Loss) The following table presents the changes in accumulated other comprehensive income (loss) by component for the years ended December 31, 2015 and 2014 (in thousands): Changes related to cash flow derivative hedges Changes in defined Foreign currency translation adjustments Accumulated other comprehensive income (loss) Accumulated comprehensive loss at January 1, 2013 $ (84,505 ) $ (34,823 ) $ (15,188 ) $ (134,516 ) Other comprehensive income before reclassifications 188,073 8,240 1,529 197,842 Amounts reclassified from accumulated other comprehensive income (loss) (60,244 ) 2,589 — (57,655 ) Net current-period other comprehensive income 127,829 10,829 1,529 140,187 Accumulated comprehensive income (loss) at January 1, 2014 43,324 (23,994 ) (13,659 ) 5,671 Other comprehensive loss before reclassifications (919,094 ) (8,937 ) (28,099 ) (956,130 ) Amounts reclassified from accumulated other comprehensive income (loss) 49,744 1,724 1,997 53,465 Net current-period other comprehensive loss (869,350 ) (7,213 ) (26,102 ) (902,665 ) Accumulated comprehensive loss at January 1, 2015 (826,026 ) (31,207 ) (39,761 ) (896,994 ) Other comprehensive (loss) income before reclassifications (697,671 ) 3,053 (25,952 ) (720,570 ) Amounts reclassified from accumulated other comprehensive income (loss) 291,624 1,707 (4,200 ) 289,131 Net current-period other comprehensive (loss) income (406,047 ) 4,760 (30,152 ) (431,439 ) Accumulated comprehensive loss at December 31, 2015 $ (1,232,073 ) $ (26,447 ) $ (69,913 ) $ (1,328,433 ) The following table presents reclassifications out of accumulated other comprehensive income (loss) for the years ended December 31, 2015 and 2014 (in thousands): Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income Details about Accumulated Other Comprehensive Income (Loss) Components Year Ended December 31, 2015 Year Ended December 31, 2014 Year Ended December 31, 2013 Affected Line Item in Statements of Comprehensive Income (Loss) (Loss) gain on cash flow derivative hedges: Cross currency swaps $ — $ (261 ) $ (3,531 ) Interest expense, net of interest capitalized Interest rate swaps (36,401 ) (15,264 ) (9,355 ) Interest expense, net of interest capitalized Foreign currency forward contracts (2,871 ) (1,887 ) (1,797 ) Depreciation and amortization expenses Foreign currency forward contracts 7,580 (4,291 ) 27,423 Other income (expense) Foreign currency forward contracts — (57 ) (440 ) Interest expense, net of interest capitalized Foreign currency collar options (1,605 ) — — Depreciation and amortization expenses Fuel swaps (9,583 ) — — Other income (expense) Fuel swaps (248,744 ) (27,984 ) 47,944 Fuel (291,624 ) (49,744 ) 60,244 Amortization of defined benefit plans: Actuarial loss (1,414 ) (888 ) (1,753 ) Payroll and related (293 ) (836 ) (836 ) (1,707 ) (1,724 ) (2,589 ) Release of foreign cumulative translation due to sale or liquidation of businesses: Foreign cumulative translation 4,200 (1,997 ) — Other operating Total reclassifications for the period $ (289,131 ) $ (53,465 ) $ 57,655 |
Fair Value Measurements and Der
Fair Value Measurements and Derivative Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Derivative Instruments | Fair Value Measurements and Derivative Instruments Fair Value Measurements The estimated fair value of our financial instruments that are not measured at fair value, categorized based upon the fair value hierarchy, are as follows (in thousands): Fair Value Measurements at December 31, 2015 Using Fair Value Measurements at December 31, 2014 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) $ 121,565 $ 121,565 $ 121,565 $ — $ — $ 189,241 $ 189,241 $ 189,241 $ — $ — Total Assets $ 121,565 $ 121,565 $ 121,565 $ — $ — $ 189,241 $ 189,241 $ 189,241 $ — $ — Liabilities: Long-term debt (including current portion of long-term debt) (5) $ 8,618,285 $ 8,895,009 $ 1,536,629 $ 7,358,380 $ — $ 8,391,301 $ 8,761,414 $ 1,859,361 $ 6,902,053 $ — Total Liabilities $ 8,618,285 $ 8,895,009 $ 1,536,629 $ 7,358,380 $ — $ 8,391,301 $ 8,761,414 $ 1,859,361 $ 6,902,053 $ — ___________________________________ (1) Inputs based on quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access. Valuation of these items does not entail a significant amount of judgment. (2) Inputs other than quoted prices included within Level 1 that are observable for the liability, either directly or indirectly. For unsecured revolving credit facilities and unsecured term loans, fair value is determined utilizing the income valuation approach. This valuation model takes into account the contract terms of our debt such as the debt maturity and the interest rate on the debt. The valuation model also takes into account the creditworthiness of the Company. (3) Inputs that are unobservable. The Company did not use any Level 3 inputs as of December 31, 2015 and December 31, 2014 . (4) Consists of cash and marketable securities with original maturities of less than 90 days. (5) Consists of unsecured revolving credit facilities, senior notes, senior debentures and term loans. Does not include our capital lease obligations. Other Financial Instruments The carrying amounts of accounts receivable, accounts payable, accrued interest and accrued expenses approximate fair value at December 31, 2015 and December 31, 2014 . Assets and liabilities that are recorded at fair value have been categorized based upon the fair value hierarchy. The following table presents information about the Company's financial instruments recorded at fair value on a recurring basis (in thousands): Fair Value Measurements at December 31, 2015 Using Fair Value Measurements at December 31, 2014 Using Description Total Fair Value Level 1 (1) Level 2 (2) Level 3 (3) Total Fair Value Level 1 (1) Level 2 (2) Level 3 (3) Assets: Derivative financial instruments (4) $ 134,574 $ — $ 134,574 $ — $ 63,981 $ — $ 63,981 $ — Investments (5) $ 3,965 3,965 — — $ 5,531 5,531 — — Total Assets $ 138,539 $ 3,965 $ 134,574 $ — $ 69,512 $ 5,531 $ 63,981 $ — Liabilities: Derivative financial instruments (6) $ 1,044,292 $ — $ 1,044,292 $ — $ 767,635 $ — $ 767,635 $ — Total Liabilities $ 1,044,292 $ — $ 1,044,292 $ — $ 767,635 $ — $ 767,635 $ — ___________________________________ (1) Inputs based on quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access. Valuation of these items does not entail a significant amount of judgment. (2) Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. For foreign currency forward contracts, interest rate swaps, cross currency swaps and fuel swaps, fair value is derived using valuation models that utilize the income valuation approach. These valuation models take into account the contract terms, such as maturity as well as other inputs, such as foreign exchange rates and curves, fuel types, fuel curves and interest rate yield curves. Fair value for foreign currency collar options is determined by using standard option pricing models with inputs based on the options' contract terms, such as exercise price and maturity, and readily available public market data, such as foreign exchange curves, foreign exchange volatility levels and discount rates. All derivative instrument fair values take into account the creditworthiness of the counterparty and the Company. (3) Inputs that are unobservable. The Company did not use any Level 3 inputs as of December 31, 2015 and December 31, 2014 . (4) Consists of foreign currency forward contracts and fuel swaps. Please refer to the "Fair Value of Derivative Instruments" table for breakdown by instrument type. (5) Consists of exchange-traded equity securities and mutual funds reported within Other assets in our consolidated balance sheets. (6) Consists of interest rate swaps, fuel swaps, foreign currency forward contracts and foreign currency collar options. Please refer to the "Fair Value of Derivative Instruments" table for breakdown by instrument type. The reported fair values are based on a variety of factors and assumptions. Accordingly, the fair values may not represent actual values of the financial instruments that could have been realized as of December 31, 2015 or December 31, 2014 , or that will be realized in the future, and do not include expenses that could be incurred in an actual sale or settlement. The following table presents information about the Company's goodwill, indefinite-life intangible assets and long-lived assets for our Pullmantur reporting unit, further discussed in Note 3. Goodwill and Note 4. Intangible Assets , recorded at fair value on a nonrecurring basis (in thousands): Fair Value Measurements at December 31, 2015 Using Description Total Carrying Amount Total Fair Value Level 3 Total Impairment Pullmantur Goodwill (1) $ — $ — $ — $ 123,814 Indefinite-life intangible asset-Pullmantur trademarks and trade names (2) — — — $ 174,285 Long-lived assets — Pullmantur aircraft and vessels (3) 140,846 140,846 140,846 $ 113,168 Total $ 140,846 $ 140,846 $ 140,846 $ 411,267 ___________________________________ (1) We estimated the fair value of the Pullmantur reporting unit using a probability-weighted discounted cash flow model. The principal assumptions used in the discounted cash flow model are projected operating results, weighted-average cost of capital and terminal value. Significantly impacting these assumptions was the decision to reduce the size of Pullmantur's fleet. The discounted cash flow model used our 2016 projected operating results as a base. To that base we added future years’ cash flows through 2020 assuming multiple revenue and expense scenarios that reflect the impact of different global economic environments for this period on Pullmantur’s reporting unit. We assigned a probability to each revenue and expense scenario. We discounted the projected cash flows using rates specific to Pullmantur’s reporting unit based on its weighted-average cost of capital, which was determined to be 11% . The fair value of Pullmantur's goodwill was estimated as of August 31, 2015, the date of the last impairment test, at which point it was fully impaired. (2) We estimated the fair value of our indefinite-life intangible asset using a discounted cash flow model and the relief-from-royalty method. These trademarks and trade names relate to Pullmantur and we have used a discount rate of 11.5% , comparable to the rate used in valuing the Pullmantur reporting unit. The fair value of these assets were estimated as of August 31, 2015, the date of the last impairment test, at which point they were fully impaired. (3) We estimated the fair value of our long-lived assets using the market approach for the aircraft and a blended indication from the cost and market approaches for the vessels as of August 31, 2015, the date of the last impairment test, including depreciation through December 31, 2015. We believe this amount estimates fair value as of December 31, 2015. A significant input in performing the fair value assessments for these assets was comparable market transactions. We have master International Swaps and Derivatives Association (“ISDA”) agreements in place with our derivative instrument counterparties. These ISDA agreements provide for final close out netting with our counterparties for all positions in the case of default or termination of the ISDA agreement. We have determined that our ISDA agreements provide us with rights of setoff on the fair value of derivative instruments in a gain position and those in a loss position with the same counterparty. We have elected not to offset such derivative instrument fair values in our consolidated balance sheets. As of December 31, 2015 and December 31, 2014 , no cash collateral was received or pledged under our ISDA agreements. See Credit Related Contingent Features for further discussion on contingent collateral requirements for our derivative instruments. The following table presents information about the Company’s offsetting of financial assets under master netting agreements with derivative counterparties: Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements As of December 31, 2015 As of December 31, 2014 Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheet Gross Amount of Eligible Offsetting Cash Collateral Net Amount of Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheet Gross Amount of Eligible Offsetting Cash Collateral Net Amount of (In thousands) Derivatives subject to master netting agreements $ 134,574 $ (129,815 ) $ — $ 4,759 $ 63,981 $ (63,981 ) $ — $ — Total $ 134,574 $ (129,815 ) $ — $ 4,759 $ 63,981 $ (63,981 ) $ — $ — The following table presents information about the Company’s offsetting of financial liabilities under master netting agreements with derivative counterparties: Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements As of December 31, 2015 As of December 31, 2014 Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheet Gross Amount of Eligible Offsetting Cash Collateral Net Amount of Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheet Gross Amount of Eligible Offsetting Cash Collateral Net Amount of (In thousands) Derivatives subject to master netting agreements $ (1,044,292 ) $ 129,815 $ — $ (914,477 ) $ (767,635 ) $ 63,981 $ — $ (703,654 ) Total $ (1,044,292 ) $ 129,815 $ — $ (914,477 ) $ (767,635 ) $ 63,981 $ — $ (703,654 ) Derivative Instruments We are exposed to market risk attributable to changes in interest rates, foreign currency exchange rates and fuel prices. We manage these risks through a combination of our normal operating and financing activities and through the use of derivative financial instruments pursuant to our hedging practices and policies. The financial impact of these hedging instruments is primarily offset by corresponding changes in the underlying exposures being hedged. We achieve this by closely matching the 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, we do not hold or issue derivative financial instruments for trading or other speculative purposes. We monitor our derivative positions using techniques including market valuations and sensitivity analyses. We enter into various forward, swap and option contracts to manage our interest rate exposure and to limit our exposure to fluctuations in foreign currency exchange rates and fuel prices. These instruments are recorded on the balance sheet at their fair value and the vast majority are designated as hedges. We also 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. On an ongoing basis, we assess whether derivatives used in hedging transactions are "highly effective" in offsetting changes in the fair value or cash flow of hedged items. We use the long-haul method to assess hedge effectiveness using regression analysis for each hedge relationship under our interest rate, foreign currency and fuel hedging programs. We apply the same methodology on a consistent basis for assessing hedge effectiveness to all hedges within each hedging program (i.e., interest rate, foreign currency and fuel). We perform regression analyses over an observation period of up to three years, utilizing market data relevant to the hedge horizon of each hedge relationship. High effectiveness is achieved when a statistically valid relationship reflects a high degree of offset and correlation between the changes in the fair values of the derivative instrument and the hedged item. The determination of ineffectiveness is based on the amount of dollar offset between the change in fair value of the derivative instrument and the change in fair value of the hedged item at the end of the reporting period. If it is determined that a derivative is not highly effective as a hedge or hedge accounting is discontinued, any change in fair value of the derivative since the last date at which it was determined to be effective is recognized in earnings. In addition, the ineffective portion of our highly effective hedges is immediately recognized in earnings and reported in Other income (expense) in our consolidated statements of comprehensive income (loss). Cash flows from derivative instruments that are designated as fair value or cash flow hedges are classified in the same category as the cash flows from the underlying hedged items. In the event that hedge accounting is discontinued, cash flows subsequent to the date of discontinuance are classified within investing activities. Cash flows from derivative instruments not designated as hedging instruments are classified as investing activities. We consider the classification of the underlying hedged item’s cash flows in determining the classification for the designated derivative instrument’s cash flows. We classify derivative instrument cash flows from hedges of benchmark interest rate or hedges of fuel expense as operating activities due to the nature of the hedged item. Likewise, we classify derivative instrument cash flows from hedges of foreign currency risk on our newbuild ship payments as investing activities and derivative instrument cash flows from hedges of foreign currency risk on debt payments as financing activities. Interest Rate Risk Our exposure to market risk for changes in interest rates relates to our long-term debt obligations including future interest payments. At December 31, 2015 , approximately 31.2% of our long-term debt was effectively fixed as compared to 28.5% as of December 31, 2014 . We use interest rate swap agreements to modify our exposure to interest rate movements and to manage our interest expense. Market risk associated with our long-term fixed rate debt is the potential increase in fair value resulting from a decrease in interest rates. We use interest rate swap agreements that effectively convert a portion of our fixed-rate debt to a floating-rate basis to manage this risk. At December 31, 2015 and December 31, 2014 , we maintained interest rate swap agreements on the $420.0 million fixed rate portion of our Oasis of the Seas unsecured amortizing term loan and on the $650.0 million unsecured senior notes due 2022. The interest rate swap agreements on Oasis of the Seas debt effectively changed the interest rate on the balance of the unsecured term loan, which was $210.0 million as of December 31, 2015 , from a fixed rate of 5.41% to a LIBOR-based floating rate equal to LIBOR plus 3.87% , currently approximately 4.40% . The interest rate swap agreements on the $650.0 million unsecured senior notes effectively changed the interest rate of the unsecured senior notes from a fixed rate of 5.25% to a LIBOR-based floating rate equal to LIBOR plus 3.63% , currently approximately 3.99% . These interest rate swap agreements are accounted for as fair value hedges. Market risk associated with our long-term floating rate debt is the potential increase in interest expense from an increase in interest rates. We use interest rate swap agreements that effectively convert a portion of our floating-rate debt to a fixed-rate basis to manage this risk. At December 31, 2015 , we maintained forward-starting interest rate swap agreements that hedge the anticipated unsecured Euro amortizing term loan that will finance a portion of our purchase of Harmony of the Seas . Forward-starting interest rate swaps hedging the Harmony of the Seas loan will effectively convert the interest rate for €693.4 million , or approximately $753.7 million based on the exchange rate at December 31, 2015, of the anticipated loan balance from EURIBOR plus 1.15% to a fixed rate of 2.26% (inclusive of margin) beginning in May 2016. In addition, at December 31, 2015, we maintained forward-starting interest rate swap agreements that hedge the anticipated unsecured amortizing term loan that will finance our purchase of Ovation of the Seas . Forward-starting interest rate swaps hedging the Ovation of the Seas loan will effectively convert the interest rate for $830.0 million of the anticipated loan balance from LIBOR plus 1.00% to a fixed rate of 3.16% (inclusive of margin) beginning in April 2016. These interest rate swap agreements are accounted for as cash flow hedges. In addition, at December 31, 2015 and December 31, 2014 , we maintained interest rate swap agreements on our Celebrity Reflection term loan. Our interest rate swap agreements effectively converted the interest rate on a portion of the Celebrity Reflection unsecured amortizing term loan balance of approximately $490.9 million from LIBOR plus 0.40% to a fixed rate (including applicable margin) of 2.85% through the term of the loan. Additionally, at December 31, 2015 and December 31, 2014, we maintained interest rate swap agreements on our Quantum of the Seas term loan. Our interest rate swap agreements effectively converted the interest rate on a portion of the Quantum of the Seas unsecured amortizing term loan balance of approximately $673.8 million from LIBOR plus 1.30% to a fixed rate of 3.74% (inclusive of margin) through the term of the loan. Furthermore, at December 31, 2015 and December 31, 2014, we maintained interest rate swap agreements on our Anthem of the Seas term loan. Our interest rate swap agreements effectively converted the interest rate on a portion of the Anthem of the Seas unsecured amortizing term loan balance of approximately $694.8 million from LIBOR plus 1.30% to a fixed rate of 3.86% (inclusive of margin) through the term of the loan. These interest rate swap agreements are accounted for as cash flow hedges. The notional amount of interest rate swap agreements related to outstanding debt and on our current unfunded financing arrangements as of December 31, 2015 and 2014 was $4.3 billion and $2.9 billion , respectively. Foreign Currency Exchange Rate Risk Derivative Instruments Our primary exposure to foreign currency exchange rate risk relates to our ship construction contracts denominated in Euros, our foreign currency denominated debt and our international business operations. We enter into foreign currency forward contracts, collar options and cross currency swap agreements to manage portions of the exposure to movements in foreign currency exchange rates. As of December 31, 2015 , the aggregate cost of our ships on order, not including the TUI Cruises' ships on order, was approximately $7.8 billion , of which we had deposited $546.5 million as of such date. Approximately 58.2% and 28.8% of the aggregate cost of the ships under construction was exposed to fluctuations in the Euro exchange rate at December 31, 2015 and 2014 , respectively. The majority of our foreign currency forward contracts, collar options and cross currency swap agreements are accounted for as cash flow, fair value or net investment hedges depending on the designation of the related hedge. On a regular basis, we enter into foreign currency forward contracts and, from time to time, we utilize cross-currency swap agreements to minimize the volatility resulting from the remeasurement of net monetary assets and liabilities denominated in a currency other than our functional currency or the functional currencies of our foreign subsidiaries. During 2015 , we maintained an average of approximately $514.4 million of these foreign currency forward contracts. These instruments are not designated as hedging instruments. In 2015 , 2014 and 2013 changes in the fair value of the foreign currency forward contracts were losses of approximately $55.5 million , $48.6 million and $19.3 million , respectively, which offset gains arising from the remeasurement of monetary assets and liabilities denominated in foreign currencies in those same years of $34.6 million , $49.5 million and $13.4 million , respectively. These changes were recognized in earnings within Other income (expense) in our consolidated statements of comprehensive income (loss). We consider our investments in our foreign operations to be denominated in relatively stable currencies and of a long-term nature. As of December 31, 2015, we maintained foreign currency forward contracts and designated them as hedges of a portion of our net investment in TUI Cruises of €302.0 million , or approximately $328.3 million , based on the exchange rate at December 31, 2015 . These forward currency contracts mature in April 2016. The notional amount of outstanding foreign exchange contracts, including our forward contracts and collar options, as of December 31, 2015 and 2014 was $2.4 billion and $3.0 billion , respectively. Non-Derivative Instruments We also address the exposure of our investments in foreign operations by denominating a portion of our debt in our subsidiaries' and investments' functional currencies and designating it as a hedge of these subsidiaries and investments. We designated debt as a hedge of our net investments in Pullmantur and TUI Cruises for €139.4 million , or approximately $168.7 million , through December 31, 2014 . As of December 31, 2015, no debt was designated as a hedge of our net investments in Pullmantur and TUI Cruises. Fuel Price Risk Our exposure to market risk for changes in fuel prices relates primarily to the consumption of fuel on our ships. We use fuel swap agreements and fuel call options to mitigate the financial impact of fluctuations in fuel prices. Our fuel swap agreements are accounted for as cash flow hedges. At December 31, 2015 , we have hedged the variability in future cash flows for certain forecasted fuel transactions occurring through 2019 . As of December 31, 2015 and 2014 , we had the following outstanding fuel swap agreements: Fuel Swap Agreements As of December 31, 2015 As of December 31, 2014 (metric tons) 2015 — 806,000 2016 930,000 802,000 2017 854,000 525,000 2018 583,000 226,000 2019 231,000 — Fuel Swap Agreements As of December 31, 2015 As of December 31, 2014 (% hedged) Projected fuel purchases for year: 2015 — 58 % 2016 65 % 55 % 2017 59 % 35 % 2018 40 % 15 % 2019 15 % — % At December 31, 2015 and 2014 , $321.0 million and $223.1 million , respectively, of estimated unrealized net loss associated with our cash flow hedges pertaining to fuel swap agreements were expected to be reclassified to earnings from Accumulated other comprehensive loss within the next twelve months. Reclassification is expected to occur as the result of fuel consumption associated with our hedged forecasted fuel purchases. The fair value and line item caption of derivative instruments recorded within our consolidated balance sheets were as follows: Fair Value of Derivative Instruments Asset Derivatives Liability Derivatives Balance Sheet As of December 31, 2015 As of December 31, 2014 Balance Sheet As of December 31, 2015 As of December 31, 2014 Fair Value Fair Value Fair Value Fair Value (In thousands) Derivatives designated as hedging instruments under ASC 815-20 (1) Interest rate swaps Other assets $ — $ — Other long-term liabilities $ 67,371 $ 65,768 Foreign currency forward contracts Derivative financial instruments 93,996 — Derivative financial instruments 320,873 17,619 Foreign currency forward contracts Other assets — 63,981 Other long-term liabilities — 164,627 Foreign currency collar options Derivative financial instruments — — Derivative financial instruments — 21,855 Fuel swaps Derivative financial instruments — — Derivative financial instruments 307,475 227,512 Fuel swaps Other assets — — Other long-term liabilities 325,055 270,254 Total derivatives designated as hedging instruments under ASC 815-20 93,996 63,981 1,020,774 767,635 Derivatives not designated as hedging instruments under ASC 815-20 Foreign currency forward contracts Derivative Financial Instruments 32,339 — Derivative financial instruments — — Fuel swaps Derivative financial instruments 8,239 — Derivative financial instruments 23,518 — Total derivatives not designated as hedging instruments under ASC 815-20 40,578 — 23,518 — Total derivatives $ 134,574 $ 63,981 $ 1,044,292 $ 767,635 ___________________________________ (1) Accounting Standard Codification 815-20 " Derivatives and Hedging." The carrying value and line item caption of non-derivative instruments designated as hedging instruments recorded within our consolidated balance sheets were as follows: Carrying Value Non-derivative instrument designated as Balance Sheet Location As of December 31, 2015 As of December 31, 2014 (In thousands) Foreign currency debt Long-term debt $ — $ 168,718 $ — $ 168,718 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) were as follows: Location of Gain Amount of Gain (Loss) Amount of Gain (Loss) Derivatives and related Hedged Items Year Ended December 31, 2015 Year Ended December 31, 2014 Year Ended December 31, 2015 Year Ended December 31, 2014 (In thousands) Interest rate swaps Interest expense, net of interest capitalized $ 11,276 $ 12,217 $ 15,743 $ 17,403 Interest rate swaps Other income (expense) 10,779 42,530 (7,533 ) (34,304 ) $ 22,055 $ 54,747 $ 8,210 $ (16,901 ) The effect of derivative instruments qualifying and designated as cash flow hedging instruments on the consolidated financial statements was as follows: Amount of Gain (Loss) Location of Gain Amount of Gain (Loss) Location of Gain Amount of Gain (Loss) Derivatives under Year Ended December 31, 2015 Year Ended December 31, 2014 Year Ended December 31, 2015 Year Ended December 31, 2014 Year Ended December 31, 2015 Year Ended December 31, 2014 (In thousands) Cross currency swaps $ — $ — Interest expense $ — $ (261 ) Other income (expense) $ — $ — Interest rate swaps (52,602 ) (113,116 ) Interest expense (36,401 ) (15,264 ) Other income (expense) 38 (99 ) Foreign currency forward contracts (141,470 ) (246,627 ) Depreciation and amortization expenses (2,871 ) (1,887 ) Other income (expense) — (34 ) Foreign currency forward contracts — — Other income (expense) 7,580 (4,291 ) Other income (expense) — — Foreign currency forward contracts — — Interest expense — (57 ) Other income (expense) — — Foreign currency collar options (64,559 ) (44,028 ) Depreciation and amortization expenses (1,605 ) — Other income (expense) — — Fuel swaps — — Other income (expense) (9,583 ) — Other income (expense) — — Fuel swaps (439,040 ) (515,324 ) Fuel (248,744 ) (27,984 ) Other income (expense) (487 ) (14,936 ) $ (697,671 ) $ (919,095 ) $ (291,624 ) $ (49,744 ) $ (449 ) $ (15,069 ) The effect of non-derivative instruments qualifying and designated as net investment hedging instruments on the consolidated financial statements was as follows: Amount of Gain (Loss) Location of Gain Amount of Gain (Loss) Recognized in Income (Ineffective Portion and Non-derivative instruments under ASC 815-20 Year Ended December 31, 2015 Year Ended December 31, 2014 Year Ended December 31, 2015 Year Ended December 31, 2014 (In thousands) Foreign Currency Debt $ 8,955 $ 25,382 Other income (expense) $ — $ — $ 8,955 $ 25,382 $ — $ — The effect of derivatives not designated as hedging instruments on the consolidated financial statements was as follows: Amount of Gain (Loss) Recognized Derivatives Not Designated as Hedging Location of Gain (Loss) Year Ended December 31, 2015 Year Ended December 31, 2014 (In thousands) Foreign currency forward contracts Other income (expense) $ (55,489 ) $ (48,791 ) Fuel swaps Other income (expense) (175 ) (1,795 ) $ (55,664 ) $ (50,586 ) Credit Related Contingent Features Our current interest rate derivative instruments may require us to post collateral if our Standard & Poor's and Moody's credit ratings remain below specified levels. Specifically, if on the fifth anniversary of entering into a derivative transaction or on any succeeding fifth-year anniversary our credit ratings for our senior unsecured debt were to be rated below BBB- by Standard & Poor's and Baa3 by Moody's, then each counterparty to such derivative transaction with whom we are in a net liability position that exceeds the applicable minimum call amount may demand that we post collateral in an amount equal to the net liability position. The amount of collateral required to be posted following such event will change each time our net liability position increases or decreases by more than the applicable minimum call amount. If our credit rating for our senior unsecured debt is subsequently equal to, or above BBB- by Standard & Poor's or Baa3 by Moody's, then any collateral posted at such time will be released to us and we will no longer be required to post collateral unless we meet the collateral trigger requirement at the next fifth-year anniversary. Currently, our senior unsecured debt credit rating is BB+ with a stable outlook by Standard & Poor's and Ba1 with a stable outlook by Moody's. We currently have seven interest rate derivative hedges that have a term of at least five years . The aggregate fair values of all derivative instruments with such credit-related contingent features in net liability positions as of December 31, 2015 and December 31, 2014 were $67.4 million and $65.8 million , respectively, which do not include the impact of any such derivatives in net asset positions. The earliest that any of the seven interest rate derivative hedges will reach their fifth anniversary is November 2016. Therefore, as of December 31, 2015 , we were not required to post collateral for any of our derivative transactions. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Capital Expenditures Our future capital commitments consist primarily of new ship orders. As of December 31, 2015 , we had three Quantum-class ships and two Oasis-class ships on order for our Royal Caribbean International brand with an aggregate capacity of approximately 23,350 berths. Additionally, we have two "Project Edge" ships on order for our Celebrity Cruises brand with an aggregate capacity of approximately 5,800 berths. The following provides further information on our ship orders: During 2014, our conditional agreement with STX France to build the fourth Oasis-class ship for Royal Caribbean International became effective. We received commitments for the unsecured financing of the ship for up to 80% of the ship’s contract price through a facility to be guaranteed 100% by COFACE, the official export credit agency of France. The ship will have a capacity of approximately 5,450 berths and is expected to enter service in the second quarter of 2018. In January 2015, we entered into a financing arrangement for the US dollar financing of this ship. Through the financing arrangement, we have the right, but not the obligation, to satisfy the obligations to be incurred upon delivery and acceptance of the vessel under the shipbuilding contract by assuming, at delivery and acceptance, the debt indirectly incurred by the shipbuilder during the construction of the ship. The amount assumed under this arrangement is not to exceed the US dollar equivalent of €931.2 million , or approximately $1.0 billion , based on the exchange rate at December 31, 2015. The loan, if we were to elect assumption at the date of actual delivery, will amortize semi-annually and will mature 12 years following delivery of the ship. Interest on the loan will accrue at a fixed rate of 3.82% (inclusive of the applicable margin). In 2015, we entered into agreements with Meyer Werft to build the fourth and fifth Quantum-class ships for Royal Caribbean International. We received commitments for the unsecured financing of the ships for up to 80% of each of the ship’s contract price. Hermes has agreed to guarantee to the lenders payment of 95% of the financing. The ships will each have a capacity of approximately 4,150 berths and is expected to enter service in the second quarter of 2019 and the fourth quarter of 2020, respectively. In 2015, our conditional agreements with STX France to build two ships of a new generation of Celebrity Cruises ships, known as "Project Edge" became effective. We received commitments for the unsecured financing of the ships for up to 80% of the ship’s contract price through a facility to be guaranteed 100% by COFACE. The ships will each have a capacity of approximately 2,900 berths and are expected to enter service in the second half of 2018 and the first half of 2020, respectively. In 2014, we entered into a credit agreement for the US dollar financing of a portion of the third Oasis-class ship. The credit agreement makes available to us an unsecured term loan in an amount up to the US dollar equivalent of €178.4 million , or approximately $193.9 million , based on the exchange rate at December 31, 2015 . The loan amortizes semi-annually and will mature 12 years following delivery of the ship. At our election, prior to the ship delivery, interest on the loan will accrue either (1) at a fixed rate of 2.53% (inclusive of the applicable margin) or (2) at a floating rate equal to LIBOR plus 1.20% . In connection with this credit agreement, we amended the €892.2 million credit agreement, originally entered into in 2013 to finance the ship, reducing the maximum facility amount to approximately €713.8 million . Both of the facilities are 100% guaranteed by COFACE. As of December 31, 2015 , the aggregate cost of our ships on order, not including the TUI Cruises' ships on order, was approximately $7.8 billion , of which we had deposited $546.5 million as of such date. Approximately 58.2% of the aggregate cost was exposed to fluctuations in the Euro exchange rate at December 31, 2015 . (Refer to Note 14. Fair Value Measurements and Derivative Instruments ). Litigation A class action complaint was filed in June 2011 against Royal Caribbean Cruises Ltd. in the United States District Court for the Southern District of Florida on behalf of a purported class of stateroom attendants employed onboard Royal Caribbean International cruise vessels. The complaint alleged that the stateroom attendants were required to pay other crew members to help with their duties and that certain stateroom attendants were required to work back of house assignments without the ability to earn gratuities, in each case in violation of the U.S. Seaman’s Wage Act. In May 2012, the district court granted our motion to dismiss the complaint on the basis that the applicable collective bargaining agreement requires any such claims to be arbitrated. The United States Court of Appeals, 11th Circuit, affirmed the district court’s dismissal and denied the plaintiffs’ petition for re-hearing and re-hearing en banc. In October 2014, the United States Supreme Court denied the plaintiffs’ request to review the order compelling arbitration. Subsequently, approximately 575 crew members submitted demands for arbitration. The demands make substantially the same allegations as in the federal court complaint and are similarly seeking damages, wage penalties and interest in an indeterminate amount. Unlike the federal court complaint, the demands for arbitration are being brought individually by each of the crew members and not on behalf of a purported class of stateroom attendants. In February 2016, we settled this matter as to all demanding crew members in exchange for our payment in the aggregate of an immaterial amount. The settlement is subject to finalization of all settlement documents. In April 2015, the Alaska Department of Environmental Conservation issued Notices of Violation to Royal Caribbean International and Celebrity Cruises seeking monetary penalties for alleged violations of the Alaska Marine Visible Emission Standards that occurred over the past five years on certain of our vessels. We believe we have meritorious defenses to the allegations and we are cooperating with the state of Alaska. We do not believe that the ultimate outcome of these claims will have a material adverse impact on our financial condition or results of operations and cash flows. We are routinely involved in other claims typical within the cruise vacation industry. The majority of these claims are covered by insurance. We believe the outcome of such claims, net of expected insurance recoveries, will not have a material adverse impact on our financial condition or results of operations and cash flows. Operating Leases In July 2002, we entered into an operating lease denominated in British pound sterling for the Brilliance of the Seas . In December 2014, we terminated the leasing of Brilliance of the Seas and, as part of the agreement, purchased the ship for a net settlement purchase price of approximately £175.4 million or $275.4 million . Refer to Note 5. Property and Equipment for further discussion on the transaction. Prior to the purchase, the lease payments varied based on sterling LIBOR and were included in Other operating expenses in our consolidated statements of comprehensive income (loss). Brilliance of the Seas lease expense amounts were approximately £11.7 million and £12.3 million , or approximately $19.3 million and $19.1 million for the years ended December 31, 2014 and 2013 , respectively. We are obligated under other noncancelable operating leases primarily for offices, warehouses and motor vehicles. As of December 31, 2015 , future minimum lease payments under noncancelable operating leases were as follows (in thousands): Year 2016 $ 22,229 2017 18,774 2018 15,432 2019 12,323 2020 10,806 Thereafter 146,951 $ 226,515 Total expense for all operating leases amounted to $29.7 million , $52.0 million and $57.5 million for the years 2015 , 2014 and 2013 , respectively. Other Some of the contracts that we enter into include indemnification provisions that obligate us to make payments to the counterparty if certain events occur. These contingencies generally relate to changes in taxes, increased lender capital costs and other similar costs. The indemnification clauses are often standard contractual terms and are entered into in the normal course of business. There are no stated or notional amounts included in the indemnification clauses and we are not able to estimate the maximum potential amount of future payments, if any, under these indemnification clauses. We have not been required to make any payments under such indemnification clauses in the past and, under current circumstances, we do not believe an indemnification in any material amount is probable. If (i) any person other than A. Wilhelmsen AS. and Cruise Associates and their respective affiliates (the "Applicable Group") acquires ownership of more than 33% of our common stock and the Applicable Group owns less of our common stock than such person, or (ii) subject to certain exceptions, during any 24 -month period, a majority of the Board is no longer comprised of individuals who were members of the Board on the first day of such period, we may be obligated to prepay indebtedness outstanding under our ship financing facilities, which we may be unable to replace on similar terms. Our other debt agreements also contain change of control provisions that would be triggered by the acquisition of greater than 50% of our common stock by (i) any person or (ii) in the case of our public debt securities, by a person other than a member of the Applicable Group coupled with a ratings downgrade. If this were to occur, it would have an adverse impact on our liquidity and operations. At December 31, 2015 , we have future commitments to pay for our usage of certain port facilities, marine consumables, services and maintenance contracts as follows (in thousands): Year 2016 $ 60,064 2017 60,964 2018 28,437 2019 100,048 2020 28,665 Thereafter 86,556 $ 364,734 |
Restructuring and Related Charg
Restructuring and Related Charges | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Charges | Restructuring and Related Impairment Charges For the years ended December 31, 2014 and December 31, 2013, we incurred the following restructuring and related impairment charges in connection with our profitability initiatives (in thousands): 2014 2013 Restructuring exit costs $ 4,318 $ 23,432 Impairment charges — 33,514 Restructuring and related impairment charges $ 4,318 $ 56,946 The following are the profitability initiatives: Consolidation of Global Sales, Marketing, General and Administrative Structure One of our profitability initiatives related to restructuring and consolidation of our global sales, marketing and general and administrative structure. Activities related to this initiative include the consolidation of most of our call centers located outside of the United States and the establishment of brand dedicated sales, marketing and revenue management teams in key priority markets. This resulted in the elimination of approximately 500 shore-side positions in 2013, primarily from our international markets, resulting in the recognition of a liability for one-time termination benefits during the year ended December 31, 2013. Additionally, we incurred contract termination costs and other related costs consisting of legal and consulting fees to implement this initiative. As a result of these actions, we incurred restructuring exit costs of $1.1 million and $18.2 million for the years ended December 31, 2014 and December 31, 2013, respectively, which are reported in Restructuring and related impairment charges in our consolidated statements of comprehensive income (loss). The costs incurred in 2014 are mainly related to discretionary bonus payments paid to persons whose positions were eliminated as part of our restructuring activities. In connection with this initiative, we incurred approximately $7.4 million of other costs during 2014 that primarily consisted of call center transition costs and accelerated depreciation on lease hold improvements and were classified within Marketing, selling and administrative expenses and Depreciation and amortization expenses, respectively, in our consolidated statements of comprehensive income (loss). During 2014, we completed the restructuring activities related to this initiative. Pullmantur Restructuring Restructuring Exit Costs In the fourth quarter of 2013, we moved forward with an initiative related to Pullmantur’s focus on its cruise business and its expansion in Latin America. Activities related to this initiative included the sale of Pullmantur's non-core businesses. This resulted in the elimination of approximately 100 Pullmantur shore-side positions and the recognition of a liability for one-time termination benefits during the fourth quarter of 2013. In the second quarter of 2014, we elected not to execute the dismissal of approximately 30 of the positions which resulted in a partial reversal of the liability. Additionally, we incurred contract termination costs and other related costs consisting of legal and consulting fees to implement this initiative. As a result of these actions, we incurred restructuring exit costs of $3.2 million and $5.3 million for the years ended December 31, 2014 and December 31, 2013, respectively, which are reported in Restructuring and related impairment charges in our consolidated statements of comprehensive income (loss). In connection with this initiative, we incurred approximately $8.9 million of other costs during 2014, associated with placing operating management closer to the Latin American market that was classified within Marketing, selling and administrative expenses in our consolidated statements of comprehensive income (loss). During 2014, we completed the restructuring activities related to this initiative. Sale of Pullmantur Non-core Businesses As part of our Pullmantur related initiatives, on March 31, 2014, Pullmantur sold the majority of its interest in its non-core businesses. These non-core businesses included Pullmantur’s land-based tour operations, travel agency and 49% interest in its air business. In connection with the sale agreement, we retained a 19% interest in each of the non-core businesses as well as 100% ownership of the aircraft which are being dry leased to Pullmantur Air. Consistent with our Pullmantur two-month lag reporting period, we reported the impact of the sale in the second quarter of 2014. Refer to Note 1. General for information on the basis on which we prepare our consolidated financial statements. The sale resulted in a gain of $0.6 million recognized during the year ended December 31, 2014, inclusive of the release of cumulative translation adjustment losses, which is classified within Other operating expenses in our consolidated statements of comprehensive income (loss). As part of the sale, we agreed to maintain commercial and bank guarantees on behalf of the buyer for a maximum period of twelve months and extended a term loan facility to Nautalia due June 30, 2016. We recorded the fair value of the guarantees and a loss reserve for the loan amount drawn, offsetting the gain recognized by $5.5 million . Refer to Note 13. Changes in Accumulated Other Comprehensive Income (Loss) for further information on the release of the foreign currency translation losses. The non-core businesses met the accounting criteria to be classified as held for sale during the fourth quarter of 2013 which resulted in restructuring related impairment charges of $20.0 million in 2013 to adjust the carrying value of assets held for sale to their fair value, less cost to sell. Additionally, the fair value of Pullmantur's aircraft were determined to be less than their carrying value and a restructuring related impairment charge of $13.5 million was also recognized in earnings during the fourth quarter of 2013. These impairment charges were reported within Restructuring and related impairment charges in our consolidated statements of comprehensive income (loss). As of December 31, 2013, assets and liabilities held for sale were not material to our consolidated balance sheet and no longer exist as of December 31, 2014. The businesses did not meet the criteria for discontinued operations reporting as a result of our significant continuing involvement. |
Quarterly Selected Financial Da
Quarterly Selected Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Selected Financial Data (Unaudited) | Quarterly Selected Financial Data (Unaudited) (In thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter 2015 2014 2015 2014 2015 2014 2015 2014 Total revenues (1) $ 1,815,599 $ 1,887,224 $ 2,058,322 $ 1,980,043 $ 2,523,100 $ 2,388,762 $ 1,902,053 $ 1,817,826 Operating income (2)(3) $ 105,682 $ 97,466 $ 261,297 $ 195,587 $ 258,005 $ 529,462 $ 249,918 $ 119,344 Net income (2)(3)(4) $ 45,230 $ 26,457 $ 184,967 $ 137,673 $ 228,787 $ 490,248 $ 206,799 $ 109,768 Earnings per share: Basic $ 0.21 $ 0.12 $ 0.84 $ 0.62 $ 1.04 $ 2.20 $ 0.95 $ 0.50 Diluted $ 0.20 $ 0.12 $ 0.84 $ 0.62 $ 1.03 $ 2.19 $ 0.94 $ 0.49 Dividends declared per share $ 0.30 $ 0.25 $ 0.30 $ 0.25 $ 0.38 $ 0.30 $ 0.38 $ 0.30 ___________________________________ (1) Our revenues are seasonal based on the demand for cruises. Demand is strongest for cruises during the Northern Hemisphere's summer months and holidays. (2) Amounts for the third quarter of 2015 include an impairment charge of $411.3 million to write down Pullmantur's goodwill, trademarks and trade names and certain long-lived assets to their fair value. Amounts for the third quarter of 2014 include a loss of $17.4 million due to the sale of Celebrity Century . (3) Amounts for the third and fourth quarters of 2014 include an aggregate increase to operating income and net income of $16.3 million and $36.8 million , respectively, due to the change in our voyage proration methodology as of September 30, 2014. Refer to Note 2. Summary of Significant Accounting Policies for further information. (4) Amount for the third quarter of 2015 includes a tax benefit of $12.0 million related to the Pullmantur impairment. Amount for the fourth quarter of 2014 includes a $33.5 million tax benefit related to the reversal of a deferred tax asset valuation allowance due to Spanish tax reform. Refer to Note 12. Income Taxes for further information. |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis for Preparation of Consolidated Financial Statements | Basis for Preparation of Consolidated Financial Statements The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Estimates are required for the preparation of financial statements in accordance with these principles. Actual results could differ from these estimates. Refer to Note 2. Summary of Significant Accounting Policies for a discussion of our significant accounting policies. |
Revenues and Expenses | Revenues and Expenses Deposits received on sales of passenger cruises are initially recorded as customer deposit liabilities on our balance sheet. Customer deposits are subsequently recognized as passenger ticket revenues, together with revenues from onboard and other goods and services and all associated cruise operating expenses of a voyage. Historically, we recognized revenues and cruise operating expenses for our shorter voyages (voyages of ten days or less) upon voyage completion while we recognized revenues and cruise operating expenses for voyages in excess of ten days on a pro-rata basis. We followed this completed voyage recognition approach on our shorter voyages because the difference between prorating revenue from such voyages and recognizing such revenue at the completion of the voyage was immaterial to our consolidated financial statements. As of September 30, 2014, we changed our methodology and recognized passenger ticket revenues, revenues from onboard and other goods and services and all associated cruise operating expenses for all of our uncompleted voyages on a pro-rata basis. We believe that recognizing revenues and cruise operating expenses on a pro-rata basis for all voyages is preferable as revenues and expenses are recorded in the period in which the revenue generating activities are performed. The effect of this change was an increase to Passenger ticket revenues and Onboard and other revenues , as well as an increase to our Cruise operating expenses . The change was not individually material to our revenues or any of our cruise operating expenses, and resulted in an aggregate increase to operating income and net income of $53.2 million for the year ended December 31, 2014. In addition, the change has not been retrospectively applied to prior periods, as the impact of prorating all voyages was immaterial to the respective periods presented. Revenues and expenses include port costs that vary with guest head counts. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash and marketable securities with original maturities of less than 90 days. |
Inventories | Inventories Inventories consist of provisions, supplies and fuel carried at the lower of cost (weighted-average) or market. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. We capitalize interest as part of the cost of acquiring certain assets. Improvement costs that we believe add value to our ships are capitalized as additions to the ship and depreciated over the shorter of the improvements' estimated useful lives or that of the associated ship. The estimated cost and accumulated depreciation of replaced or refurbished ship components are written off and any resulting losses are recognized in Cruise operating expenses . Liquidated damages received from shipyards as a result of the late delivery of a new ship are recorded as reductions to the cost basis of the ship. Depreciation of property and equipment is computed using the straight-line method over the estimated useful life of the asset. The useful lives of our ships are generally 30 years , net of a 15% projected residual value. The 30-year useful life of our newly constructed ships and 15% associated residual value are both based on the weighted-average of all major components of a ship. Our useful life and residual value estimates take into consideration the impact of anticipated technological changes, long-term cruise and vacation market conditions and historical useful lives of similarly-built ships. In addition, we take into consideration our estimates of the weighted-average useful lives of the ships' major component systems, such as hull, superstructure, main electric, engines and cabins. Depreciation for assets under capital leases is computed using the shorter of the lease term or related asset life. Depreciation of property and equipment is computed utilizing the following useful lives: Years Ships generally 30 Ship improvements 3-20 Buildings and improvements 10-40 Computer hardware and software 3-5 Transportation equipment and other 3-30 Leasehold improvements Shorter of remaining lease term or useful life 3-30 We review long-lived assets for impairment whenever events or changes in circumstances indicate, based on estimated undiscounted future cash flows, that the carrying amount of these assets may not be fully recoverable. For purposes of recognition and measurement of an impairment loss, long-lived assets are grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. The lowest level for which we maintain identifiable cash flows that are independent of the cash flows of other assets and liabilities is at the ship level for our ships and at the aggregated asset group level for our aircraft. If estimated future cash flows are less than the carrying value of an asset, an impairment charge is recognized to the extent its carrying value exceeds fair value. We use the deferral method to account for drydocking costs. Under the deferral method, drydocking costs incurred are deferred and charged to expense on a straight-line basis over the period to the next scheduled drydock, which we estimate to be a period of thirty to sixty months based on the vessel's age as required by Class. Deferred drydock costs consist of the costs to drydock the vessel and other costs incurred in connection with the drydock which are necessary to maintain the vessel's Class certification. Class certification is necessary in order for our cruise ships to be flagged in a specific country, obtain liability insurance and legally operate as passenger cruise ships. The activities associated with those drydocking costs cannot be performed while the vessel is in service and, as such, are done during a drydock as a planned major maintenance activity. The significant deferred drydock costs consist of hauling and wharfage services provided by the drydock facility, hull inspection and related activities (e.g., scraping, pressure cleaning, bottom painting), maintenance to steering propulsion, thruster equipment and ballast tanks, port services such as tugs, pilotage and line handling, and freight associated with these items. We perform a detailed analysis of the various activities performed for each drydock and only defer those costs that are directly related to planned major maintenance activities necessary to maintain Class. The costs deferred are not otherwise routinely periodically performed to maintain a vessel's designed and intended operating capability. Repairs and maintenance activities are charged to expense as incurred. |
Goodwill | Goodwill Goodwill represents the excess of cost over the fair value of net tangible and identifiable intangible assets acquired. We review goodwill for impairment at the reporting unit level annually or, when events or circumstances dictate, more frequently. The impairment review for goodwill consists of a qualitative assessment of whether it is more-likely-than-not that a reporting unit's fair value is less than its carrying amount, and if necessary, a two-step goodwill impairment test. Factors to consider when performing the qualitative assessment include general economic conditions, limitations on accessing capital, changes in forecasted operating results, changes in fuel prices and fluctuations in foreign exchange rates. If the qualitative assessment demonstrates that it is more-likely-than-not that the estimated fair value of the reporting unit exceeds its carrying value, it is not necessary to perform the two-step goodwill impairment test. We may elect to bypass the qualitative assessment and proceed directly to step one, for any reporting unit, in any period. On a periodic basis, we elect to bypass the qualitative assessment and proceed to step one to corroborate the results of recent years' qualitative assessments. We can resume the qualitative assessment for any reporting unit in any subsequent period. When performing the two-step goodwill impairment test, the fair value of the reporting unit is determined and compared to the carrying value of the net assets allocated to the reporting unit. If the fair value of the reporting unit exceeds its carrying value, no further analysis or write-down of goodwill is required. If the fair value of the reporting unit is less than the carrying value of its net assets, the implied fair value of the reporting unit is allocated to all its underlying assets and liabilities, including both recognized and unrecognized tangible and intangible assets, based on their fair value. If necessary, goodwill is then written down to its implied fair value. |
Intangible Assets | Intangible Assets In connection with our acquisitions, we have acquired certain intangible assets to which value has been assigned based on our estimates. Intangible assets that are deemed to have an indefinite life are not amortized, but are subject to an annual impairment test, or when events or circumstances dictate, more frequently. The indefinite-life intangible asset impairment test consists of a comparison of the fair value of the indefinite-life intangible asset with its carrying amount. If the carrying amount exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. If the fair value exceeds its carrying amount, the indefinite-life intangible asset is not considered impaired. Other intangible assets assigned finite useful lives are amortized on a straight-line basis over their estimated useful lives. |
Contingencies - Litigation | Contingencies —Litigation On an ongoing basis, we assess the potential liabilities related to any lawsuits or claims brought against us. While it is typically very difficult to determine the timing and ultimate outcome of such actions, we use our best judgment to determine if it is probable that we will incur an expense related to the settlement or final adjudication of such matters and whether a reasonable estimation of such probable loss, if any, can be made. In assessing probable losses, we take into consideration estimates of the amount of insurance recoveries, if any, which are recorded as assets when recoverability is probable. We accrue a liability when we believe a loss is probable and the amount of loss can be reasonably estimated. Due to the inherent uncertainties related to the eventual outcome of litigation and potential insurance recoveries, it is possible that certain matters may be resolved for amounts materially different from any provisions or disclosures that we have previously made. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred except those costs which result in tangible assets, such as brochures, which are treated as prepaid expenses and charged to expense as consumed. Advertising costs consist of media advertising as well as brochure, production and direct mail costs. |
Derivative Instruments | Derivative Instruments We enter into various forward, swap and option contracts to manage our interest rate exposure and to limit our exposure to fluctuations in foreign currency exchange rates and fuel prices. These instruments are recorded on the balance sheet at their fair value and the vast majority are designated as hedges. We also use non-derivative financial instruments designated as hedges of our net investment in our foreign operations and investments. Although certain of our derivative financial instruments do not qualify or are not accounted for under hedge accounting, we do not hold or issue derivative financial instruments for trading or other speculative purposes. At inception of the hedge relationship, a derivative instrument that hedges the exposure to changes in the fair value of a firm commitment or a recognized asset or liability is designated as a fair value hedge. A derivative instrument that hedges a forecasted transaction or the variability of cash flows related to a recognized asset or liability is designated as a cash flow hedge. Changes in the fair value of derivatives that are designated as fair value hedges are offset against changes in the fair value of the underlying hedged assets, liabilities or firm commitments. Gains and losses on derivatives that are designated as cash flow hedges are recorded as a component of Accumulated other comprehensive loss until the underlying hedged transactions are recognized in earnings. The foreign currency transaction gain or loss of our non-derivative financial instruments designated as hedges of our net investment in foreign operations and investments are recognized as a component of Accumulated other comprehensive loss along with the associated foreign currency translation adjustment of the foreign operation. On an ongoing basis, we assess whether derivatives used in hedging transactions are "highly effective" in offsetting changes in the fair value or cash flow of hedged items. We use the long-haul method to assess hedge effectiveness using regression analysis for each hedge relationship under our interest rate, foreign currency and fuel hedging programs. We apply the same methodology on a consistent basis for assessing hedge effectiveness to all hedges within each hedging program (i.e., interest rate, foreign currency and fuel). We perform regression analyses over an observation period of up to three years, utilizing market data relevant to the hedge horizon of each hedge relationship. High effectiveness is achieved when a statistically valid relationship reflects a high degree of offset and correlation between the changes in the fair values of the derivative instrument and the hedged item. The determination of ineffectiveness is based on the amount of dollar offset between the change in fair value of the derivative instrument and the change in fair value of the hedged item at the end of the reporting period. If it is determined that a derivative is not highly effective as a hedge or hedge accounting is discontinued, any change in fair value of the derivative since the last date at which it was determined to be effective is recognized in earnings. In addition, the ineffective portion of our highly effective hedges is immediately recognized in earnings and reported in Other income (expense) in our consolidated statements of comprehensive income (loss). Cash flows from derivative instruments that are designated as fair value or cash flow hedges are classified in the same category as the cash flows from the underlying hedged items. In the event that hedge accounting is discontinued, cash flows subsequent to the date of discontinuance are classified within investing activities. Cash flows from derivative instruments not designated as hedging instruments are classified as investing activities. We consider the classification of the underlying hedged item’s cash flows in determining the classification for the designated derivative instrument’s cash flows. We classify derivative instrument cash flows from hedges of benchmark interest rate or hedges of fuel expense as operating activities due to the nature of the hedged item. Likewise, we classify derivative instrument cash flows from hedges of foreign currency risk on our newbuild ship payments as investing activities and derivative instrument cash flows from hedges of foreign currency risk on debt payments as financing activities. |
Foreign Currency Translations and Transactions | Foreign Currency Translations and Transactions We translate assets and liabilities of our foreign subsidiaries whose functional currency is the local currency, at exchange rates in effect at the balance sheet date. We translate revenues and expenses at weighted-average exchange rates for the period. Equity is translated at historical rates and the resulting foreign currency translation adjustments are included as a component of Accumulated other comprehensive loss , which is reflected as a separate component of Shareholders' equity . Exchange gains or losses arising from the remeasurement of monetary assets and liabilities denominated in a currency other than the functional currency of the entity involved are immediately included in our earnings, except for certain liabilities that have been designated to act as a hedge of a net investment in a foreign operation or investment. Exchange gains were $34.6 million , $49.5 million and $13.4 million for the years 2015 , 2014 and 2013 , respectively, and were recorded within Other income (expense) . The majority of our transactions are settled in United States dollars. Gains or losses resulting from transactions denominated in other currencies are recognized in income at each balance sheet date. |
Concentrations of Credit Risk | Concentrations of Credit Risk We monitor our credit risk associated with financial and other institutions with which we conduct significant business and, to minimize these risks, we select counterparties with credit risks acceptable to us and we seek to limit our exposure to an individual counterparty. Credit risk, including but not limited to counterparty nonperformance under derivative instruments, our credit facilities and new ship progress payment guarantees, is not considered significant, as we primarily conduct business with large, well-established financial institutions, insurance companies and export credit agencies many of which we have long-term relationships with and which have credit risks acceptable to us or where the credit risk is spread out among a large number of counterparties. As of December 31, 2015, we had counterparty credit risk exposure under our derivative instruments of approximately $4.8 million , which was limited to the cost of replacing the contracts in the event of non-performance by the counterparties to the contracts, all of which are currently our lending banks. As of December 31, 2014, we did not have any exposure under our derivative instruments. We do not anticipate nonperformance by any of our significant counterparties. In addition, we have established guidelines we follow regarding credit ratings and instrument maturities to maintain safety and liquidity. We do not normally require collateral or other security to support credit relationships; however, in certain circumstances this option is available to us. |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during each period. Diluted earnings per share incorporates the incremental shares issuable upon the assumed exercise of stock options and conversion of potentially dilutive securities. |
Stock-Based Employee Compensation | Stock-Based Employee Compensation We measure and recognize compensation expense at the estimated fair value of employee stock awards. Compensation expense for awards and the related tax effects are recognized as they vest. We use the estimated amount of expected forfeitures to calculate compensation costs for all outstanding awards. |
Segment Reporting | Segment Reporting We operate five wholly-owned cruise brands, Royal Caribbean International, Celebrity Cruises, Azamara Club Cruises, Pullmantur and CDF Croisières de France. In addition, we have a 50% investment in a joint venture with TUI AG which operates the brand TUI Cruises. We believe our global brands possess the versatility to enter multiple cruise market segments within the cruise vacation industry. Although each of our brands has its own marketing style as well as ships and crews of various sizes, the nature of the products sold and services delivered by our brands share a common base (i.e., the sale and provision of cruise vacations). Our brands also have similar itineraries as well as similar cost and revenue components. In addition, our brands source passengers from similar markets around the world and operate in similar economic environments with a significant degree of commercial overlap. As a result, our brands (including TUI Cruises) have been aggregated as a single reportable segment based on the similarity of their economic characteristics, types of consumers, regulatory environment, maintenance requirements, supporting systems and processes as well as products and services provided. Our Chairman and Chief Executive Officer has been identified as the chief operating decision-maker and all significant operating decisions including the allocation of resources are based upon the analyses of the Company as one segment. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, amended GAAP guidance was issued to clarify the principles used to recognize revenue for all entities. The guidance is based on the principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard also requires more detailed disclosures and provides additional guidance for transactions that were not comprehensively addressed in the prior accounting guidance. This guidance must be applied using one of two retrospective application methods. In August 2015, the effective date of this guidance was deferred by one year and will now be effective for our annual reporting period beginning after December 15, 2017, including interim periods therein. Early adoption is permitted for our annual reporting period beginning after December 15, 2016, including interim periods therein. We are currently evaluating the impact, if any, of the adoption of this newly issued guidance to our consolidated financial statements. In August 2014, GAAP guidance was issued requiring management to evaluate, at each annual and interim reporting period, whether there are conditions or events that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date the financial statements are issued and provide related disclosures. This guidance will be effective for our annual reporting period ending after December 15, 2016 and for annual periods and interim periods thereafter. Early adoption is permitted. The adoption of this newly issued guidance is not expected to have an impact to our consolidated financial statements. In January 2015, amended GAAP guidance was issued changing the requirements for reporting extraordinary and unusual items in the income statement. The update eliminates the concept of extraordinary items. The presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained and will be expanded to include items that are both unusual in nature and infrequently occurring. A reporting entity may apply the amendments prospectively or retrospectively to all periods presented in the financial statements. The guidance will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The adoption of this newly issued guidance is not expected to have an impact to our consolidated financial statements. In February 2015, amended GAAP guidance was issued affecting current consolidation guidance. The guidance changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. This guidance must be applied using one of two retrospective application methods and will be effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in any interim period. The adoption of this newly issued guidance is not expected to have an impact to our consolidated financial statements. In April 2015, amended GAAP guidance was issued simplifying the presentation of debt issuance costs. The guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by these amendments. Additionally, in August 2015, amended GAAP guidance was issued to clarify the presentation of debt issuance costs associated with line-of-credit arrangements. The amendments continue to allow an entity to present debt issuance costs as an asset with subsequent amortization over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. This guidance should be applied on a retrospective basis, wherein the balance sheet of each individual period presented should be adjusted to reflect the period-specific effects of applying the new guidance. The guidance will be effective for financial statements issued for fiscal years beginning after December 15, 2015 and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been previously issued. The adoption of this newly issued guidance is not expected to have an impact to our consolidated financial statements, with the exception of reclassifying debt issuance costs from Other assets to be reflected as a reduction of our current and long-term liabilities. In April 2015, amended GAAP guidance was issued to provide a practical expedient for the measurement date of an employer's defined benefit obligation and plan assets. The guidance provides a practical expedient for entities with a fiscal year-end that does not coincide with a month-end and for contributions or significant events that occur between the month-end date and an entity's fiscal year end. The guidance will be effective for financial statements issued for fiscal years beginning after December 15, 2015 and interim periods within those fiscal years. Earlier application is permitted. The adoption of this newly issued guidance is not expected to have an impact to our consolidated financial statements. In April 2015, amended GAAP guidance was issued to clarify a customer’s accounting for fees paid in a cloud computing arrangement. The amendments provide guidance to customers about whether a cloud computing arrangement includes a software license or if the arrangement should be accounted for as a service contract. This guidance will impact the accounting of software licenses but will not change a customer’s accounting for service contracts. The guidance will be effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. An entity can elect to adopt the amendments either prospectively or retrospectively. The adoption of this newly issued guidance is not expected to have a material impact to our consolidated financial statements. In July 2015, amended GAAP guidance was issued to simplify the measurement of inventory for all entities. The amendments apply to all inventory that is measured using first-in, first-out or average cost. The guidance requires an entity to measure inventory at the lower of cost and net realizable value. The guidance must be applied prospectively and will be effective for our interim and annual reporting periods beginning after December 15, 2016. Early adoption is permitted as of the beginning of an interim or annual reporting period. The adoption of this newly issued guidance is not expected to have a material impact to our consolidated financial statements. In September 2015, amended GAAP guidance was issued to simplify the accounting for measurement-period adjustments related to business combinations. The amendments require that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustments are determined and eliminates the requirement to retroactively adjust the provisional amounts recognized at the acquisition date. The guidance will be effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The amendments should be applied prospectively to measurement period adjustments that occur after the effective date. Early adoption is permitted for financial statements that have not been issued. The adoption of this newly issued guidance is not expected to have a material impact to our consolidated financial statements. In November 2015, amended GAAP guidance was issued to simplify the presentation of deferred income taxes. The amendments require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position and eliminates the classification between current and noncurrent amounts. The guidance will be effective for financial statements issued for fiscal years beginning after December 15, 2016 and interim periods within those fiscal years. An entity can elect to adopt the amendments either prospectively or retrospectively. Early adoption is permitted as of the beginning of an interim or annual reporting period. The adoption of this newly issued guidance is not expected to have a material impact to our consolidated financial statements. In January 2016, amended GAAP guidance was issued to address certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The amendments primarily impact the accounting for certain equity investments, the accounting for financial liabilities subject to the fair value option, the presentation and disclosure requirements for financial instruments and change the assessment of valuation allowances related to recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. The guidance will be effective for financial statements issued for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Early adoption is permitted for financial statements of fiscal years and interim periods that have not yet been issued or that have not yet been made available for issuance as of the beginning of the fiscal year of adoption. The adoption of this newly issued guidance is not expected to have a material impact to our consolidated financial statements. |
Reclassifications | Reclassifications On January 1, 2015, we adopted ASC 853, Service Concession Arrangements ("ASC 853"), using the modified retrospective approach. Due to the adoption of ASC 853, $41.9 million has been reclassified in the consolidated balance sheet, as of December 31, 2014, from Property and equipment, net to Other assets in order to conform to the current year presentation. The adoption of this guidance did not have a material impact to our consolidated financial statements as of and for the year ended December 31, 2015. For the year ended December 31, 2014 and December 31, 2013, a net deferred income tax expense of $3.4 million and $3.3 million , respectively, has been reclassified in the consolidated statements of cash flows from Other, net to Net deferred income tax (benefit) expense within Net cash provided by operating activities in order to conform to the current year presentation. |
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 6. Other Assets for further information regarding our variable interest entities. For affiliates we do not control but over which we have significant influence on financial and operating policies, usually evidenced by a direct ownership interest from 20% to 50% , the investment is accounted for using the equity method. We consolidate the operating results of Pullmantur and CDF Croisières de France on a two-month lag to allow for more timely preparation of our consolidated financial statements. No material events or transactions affecting Pullmantur or CDF Croisières de France have occurred during the two -month lag period of November and December 2015 that would require disclosure or adjustment to our consolidated financial statements as of December 31, 2015 . |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Useful Lives of Property and Equipment Used in Computation of Depreciation | Depreciation of property and equipment is computed utilizing the following useful lives: Years Ships generally 30 Ship improvements 3-20 Buildings and improvements 10-40 Computer hardware and software 3-5 Transportation equipment and other 3-30 Leasehold improvements Shorter of remaining lease term or useful life 3-30 |
Passenger Ticket Revenues Attributed to Geographic Areas Based on Where Reservation Originates | Information by geographic area is shown in the table below. Passenger ticket revenues are attributed to geographic areas based on where the reservation originates. 2015 2014 2013 Passenger ticket revenues: United States 55% 53% 52% All other countries 45% 47% 48% |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill [Abstract] | |
Carrying Amount of Goodwill | The carrying amount of goodwill attributable to our Royal Caribbean International and Pullmantur reporting units and the changes in such balances during the years ended December 31, 2015 and 2014 were as follows (in thousands): Royal Pullmantur Total Balance at December 31, 2013 $ 287,124 $ 152,107 $ 439,231 Foreign currency translation adjustment (166 ) (18,523 ) (18,689 ) Balance at December 31, 2014 286,958 133,584 420,542 Impairment charge — (123,814 ) (123,814 ) Foreign currency translation adjustment (194 ) (9,770 ) (9,964 ) Balance at December 31, 2015 $ 286,764 $ — $ 286,764 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Indefinite-Lived intangible assets | Intangible assets are reported in Other assets in our consolidated balance sheets and consist of the following (in thousands): 2015 2014 Indefinite-life intangible asset—Pullmantur trademarks and trade names $ 188,038 $ 214,112 Impairment charge (174,285 ) — Foreign currency translation adjustment (13,753 ) (26,074 ) Total $ — $ 188,038 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment | Property and equipment consists of the following (in thousands): 2015 2014 Ships $ 22,102,025 $ 21,620,336 Ship improvements 2,019,294 1,904,524 Ships under construction 734,998 561,779 Land, buildings and improvements, including leasehold improvements and port facilities 337,109 303,394 Computer hardware and software, transportation equipment and other 1,025,264 889,579 Total property and equipment 26,218,690 25,279,612 Less—accumulated depreciation and amortization (7,440,912 ) (7,085,985 ) $ 18,777,778 $ 18,193,627 |
Other Assets Other Assets (Tabl
Other Assets Other Assets (Table) | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summarized balance sheet information of affiliates accounted for under the equity method of accounting | As of December 31, 2015 2014 Current Assets $ 315,264 $ 325,527 Non Current Assets 2,246,809 1,929,182 Total Assets $ 2,562,073 $ 2,254,709 Current Liabilities $ 585,887 $ 513,842 Non Current Liabilities 1,231,262 958,988 Total Liabilities $ 1,817,149 $ 1,472,830 Equity Attributable to: Noncontrolling Interest $ 1,683 $ 2,795 |
Summarized income statement sheet information of affiliates accounted for under the equity method of accounting | For the period ended December 31, 2015 2014 2013 Total Revenues $ 990,172 $ 797,441 $ 605,293 Total Expenses (830,898 ) (682,430 ) (538,922 ) Net Income $ 159,274 $ 115,011 $ 66,371 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Long Term Debt | e following (in thousands): 2015 2014 $1.4 billion unsecured revolving credit facility, LIBOR plus 1.50%, currently 1.92% and a facility fee of 0.25%, due 2020 $ 945,000 $ 713,000 $1.2 billion unsecured revolving credit facility, LIBOR plus 1.50%, currently 1.89% and a facility fee of 0.25%, due 2018 895,000 778,000 Unsecured senior notes and senior debentures, 5.25% to 7.50%, due 2016, 2018, 2022 and 2027 1,434,542 1,721,190 $742.1 million unsecured senior notes, LIBOR plus 1.30%, currently 1.83%, due through 2027 711,180 — $530 million unsecured term loan, LIBOR plus 0.51%, due through 2015 — 37,857 $519 million unsecured term loan, LIBOR plus 0.45%, currently 0.98%, due through 2020 216,311 259,573 $420 million unsecured term loan, 5.41%, due through 2021 207,223 241,827 $420 million unsecured term loan, LIBOR plus 1.85%, currently 2.38%, due through 2021 210,000 245,000 €159.4 million unsecured term loan, EURIBOR plus 1.58%, currently 1.60%, due through 2021 86,650 112,540 $524.5 million unsecured term loan, LIBOR plus 0.50%, currently 0.96%, due through 2021 262,250 305,958 $566.1 million unsecured term loan, LIBOR plus 0.37%, currently 0.89%, due through 2022 306,621 353,793 $1.1 billion unsecured term loan, LIBOR plus 1.85%, currently 2.38%, due through 2022 537,426 614,203 $632.0 million unsecured term loan, LIBOR plus 0.40%, currently 0.86%, due through 2023 421,306 473,969 $673.5 million unsecured term loan, LIBOR plus 0.40%, currently 0.93%, due through 2024 505,106 561,228 $65.0 million unsecured term loan, LIBOR plus 1.75%, currently 2.17%, due through 2019 71,500 51,100 $1.0 million unsecured term loan, 3.00%, due through 2015 — 750 $380.0 million unsecured term loan, LIBOR plus 1.75%, currently 2.17%, due 2018 380,000 380,000 $791.1 million unsecured term loan, LIBOR plus 1.30%, currently 1.83%, due through 2026 725,182 791,108 $290.0 million unsecured term loan, LIBOR plus 1.75%, currently 2.17%, due 2018 290,000 290,000 €365 million unsecured term loan, EURIBOR plus 1.75%, currently 1.75%, due 2017 396,755 441,687 $7.3 million unsecured term loan, LIBOR plus 2.5%, currently 3.02%, due through 2023 4,440 4,915 $30.3 million unsecured term loan, LIBOR plus 3.75%, currently 4.24%, due through 2021 11,793 13,603 Capital lease obligations 48,770 52,647 8,667,055 8,443,948 Less—current portion (899,677 ) (799,630 ) Long-term portion $ 7,767,378 $ 7,644,318 |
Schedule of Annual Maturities on Long-Term Debt Including Capital Leases | Following is a schedule of annual maturities on long-term debt including capital leases as of December 31, 2015 for each of the next five years (in thousands): Year 2016 $ 899,677 2017 938,036 2018 2,252,577 2019 609,901 2020 1,483,728 Thereafter 2,483,136 $ 8,667,055 |
Stock-Based Employee Compensa33
Stock-Based Employee Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Total Compensation Expense Recognized for Employee Stock-based Compensation | Total compensation expense recognized for employee stock-based compensation for the years ended December 31, 2015 , 2014 and 2013 was as follows: Employee Stock-Based Compensation Classification of expense 2015 2014 2013 (In thousands) Marketing, selling and administrative expenses $ 36,073 $ 26,116 $ 21,178 Total compensation expense $ 36,073 $ 26,116 $ 21,178 |
Summary Stock Option Activity | Stock option activity and information about stock options outstanding are summarized in the following table: Stock Option Activity Number of Weighted- Weighted- Aggregate (1) (years) (in thousands) Outstanding at January 1, 2015 706,051 $ 36.03 3.64 $ 33,182 Granted — — — — Exercised (287,379 ) $ 39.12 — — Canceled (6,863 ) $ 47.05 — — Outstanding at December 31, 2015 411,809 $ 33.69 3.12 $ 28,111 Vested and expected to vest at December 31, 2015 411,807 $ 33.69 3.12 $ 28,110 Options Exercisable at December 31, 2015 409,915 $ 33.73 3.11 $ 27,967 ___________________________________ (1) The intrinsic value represents the amount by which the fair value of stock exceeds the option exercise price as of December 31, 2015 |
Summary of Restricted Stock Activity | Restricted stock activity is summarized in the following table: Restricted Stock Activity Number of Weighted- Non-vested share units at January 1, 2015 981,553 $ 42.68 Granted 298,998 $ 73.98 Vested (361,843 ) $ 40.04 Canceled (98,059 ) $ 45.07 Non-vested share units expected to vest as of December 31, 2015 820,649 $ 54.98 |
Summary of Performance share activity | Performance stock activity is summarized in the following table: Performance Stock Activity Number of Weighted- Non-vested share units at January 1, 2015 658,886 $ 40.21 Granted 161,479 $ 71.36 Vested (241,288 ) $ 33.94 Canceled (74,866 ) $ 37.59 Non-vested share units expected to vest as of December 31, 2015 504,211 $ 53.57 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Reconciliation Between Basic and Diluted Earnings Per Share | Year Ended December 31, 2015 2014 2013 Net income for basic and diluted earnings per share $ 665,783 $ 764,146 $ 473,692 Weighted-average common shares outstanding 219,537 221,658 219,638 Dilutive effect of stock options, performance share awards and restricted stock awards 1,152 1,386 1,303 Diluted weighted-average shares outstanding 220,689 223,044 220,941 Basic earnings per share: Net income $ 3.03 $ 3.45 $ 2.16 Diluted earnings per share: Net income $ 3.02 $ 3.43 $ 2.14 |
Changes in Accumulated Other 35
Changes in Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents the changes in accumulated other comprehensive income (loss) by component for the years ended December 31, 2015 and 2014 (in thousands): Changes related to cash flow derivative hedges Changes in defined Foreign currency translation adjustments Accumulated other comprehensive income (loss) Accumulated comprehensive loss at January 1, 2013 $ (84,505 ) $ (34,823 ) $ (15,188 ) $ (134,516 ) Other comprehensive income before reclassifications 188,073 8,240 1,529 197,842 Amounts reclassified from accumulated other comprehensive income (loss) (60,244 ) 2,589 — (57,655 ) Net current-period other comprehensive income 127,829 10,829 1,529 140,187 Accumulated comprehensive income (loss) at January 1, 2014 43,324 (23,994 ) (13,659 ) 5,671 Other comprehensive loss before reclassifications (919,094 ) (8,937 ) (28,099 ) (956,130 ) Amounts reclassified from accumulated other comprehensive income (loss) 49,744 1,724 1,997 53,465 Net current-period other comprehensive loss (869,350 ) (7,213 ) (26,102 ) (902,665 ) Accumulated comprehensive loss at January 1, 2015 (826,026 ) (31,207 ) (39,761 ) (896,994 ) Other comprehensive (loss) income before reclassifications (697,671 ) 3,053 (25,952 ) (720,570 ) Amounts reclassified from accumulated other comprehensive income (loss) 291,624 1,707 (4,200 ) 289,131 Net current-period other comprehensive (loss) income (406,047 ) 4,760 (30,152 ) (431,439 ) Accumulated comprehensive loss at December 31, 2015 $ (1,232,073 ) $ (26,447 ) $ (69,913 ) $ (1,328,433 ) |
Reclassification out of Accumulated Other Comprehensive Income | The following table presents reclassifications out of accumulated other comprehensive income (loss) for the years ended December 31, 2015 and 2014 (in thousands): Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income Details about Accumulated Other Comprehensive Income (Loss) Components Year Ended December 31, 2015 Year Ended December 31, 2014 Year Ended December 31, 2013 Affected Line Item in Statements of Comprehensive Income (Loss) (Loss) gain on cash flow derivative hedges: Cross currency swaps $ — $ (261 ) $ (3,531 ) Interest expense, net of interest capitalized Interest rate swaps (36,401 ) (15,264 ) (9,355 ) Interest expense, net of interest capitalized Foreign currency forward contracts (2,871 ) (1,887 ) (1,797 ) Depreciation and amortization expenses Foreign currency forward contracts 7,580 (4,291 ) 27,423 Other income (expense) Foreign currency forward contracts — (57 ) (440 ) Interest expense, net of interest capitalized Foreign currency collar options (1,605 ) — — Depreciation and amortization expenses Fuel swaps (9,583 ) — — Other income (expense) Fuel swaps (248,744 ) (27,984 ) 47,944 Fuel (291,624 ) (49,744 ) 60,244 Amortization of defined benefit plans: Actuarial loss (1,414 ) (888 ) (1,753 ) Payroll and related (293 ) (836 ) (836 ) (1,707 ) (1,724 ) (2,589 ) Release of foreign cumulative translation due to sale or liquidation of businesses: Foreign cumulative translation 4,200 (1,997 ) — Other operating Total reclassifications for the period $ (289,131 ) $ (53,465 ) $ 57,655 |
Fair Value Measurements and D36
Fair Value Measurements and Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Estimated Fair Value of Financial Instruments that are not Measured at Fair Value on Recurring Basis | The estimated fair value of our financial instruments that are not measured at fair value, categorized based upon the fair value hierarchy, are as follows (in thousands): Fair Value Measurements at December 31, 2015 Using Fair Value Measurements at December 31, 2014 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) $ 121,565 $ 121,565 $ 121,565 $ — $ — $ 189,241 $ 189,241 $ 189,241 $ — $ — Total Assets $ 121,565 $ 121,565 $ 121,565 $ — $ — $ 189,241 $ 189,241 $ 189,241 $ — $ — Liabilities: Long-term debt (including current portion of long-term debt) (5) $ 8,618,285 $ 8,895,009 $ 1,536,629 $ 7,358,380 $ — $ 8,391,301 $ 8,761,414 $ 1,859,361 $ 6,902,053 $ — Total Liabilities $ 8,618,285 $ 8,895,009 $ 1,536,629 $ 7,358,380 $ — $ 8,391,301 $ 8,761,414 $ 1,859,361 $ 6,902,053 $ — ___________________________________ (1) Inputs based on quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access. Valuation of these items does not entail a significant amount of judgment. (2) Inputs other than quoted prices included within Level 1 that are observable for the liability, either directly or indirectly. For unsecured revolving credit facilities and unsecured term loans, fair value is determined utilizing the income valuation approach. This valuation model takes into account the contract terms of our debt such as the debt maturity and the interest rate on the debt. The valuation model also takes into account the creditworthiness of the Company. (3) Inputs that are unobservable. The Company did not use any Level 3 inputs as of December 31, 2015 and December 31, 2014 . (4) Consists of cash and marketable securities with original maturities of less than 90 days. (5) Consists of unsecured revolving credit facilities, senior notes, senior debentures and term loans. Does not include our capital lease obligations. |
Company's Financial Instruments Recorded at Fair Value on Recurring Basis | The following table presents information about the Company's financial instruments recorded at fair value on a recurring basis (in thousands): Fair Value Measurements at December 31, 2015 Using Fair Value Measurements at December 31, 2014 Using Description Total Fair Value Level 1 (1) Level 2 (2) Level 3 (3) Total Fair Value Level 1 (1) Level 2 (2) Level 3 (3) Assets: Derivative financial instruments (4) $ 134,574 $ — $ 134,574 $ — $ 63,981 $ — $ 63,981 $ — Investments (5) $ 3,965 3,965 — — $ 5,531 5,531 — — Total Assets $ 138,539 $ 3,965 $ 134,574 $ — $ 69,512 $ 5,531 $ 63,981 $ — Liabilities: Derivative financial instruments (6) $ 1,044,292 $ — $ 1,044,292 $ — $ 767,635 $ — $ 767,635 $ — Total Liabilities $ 1,044,292 $ — $ 1,044,292 $ — $ 767,635 $ — $ 767,635 $ — ___________________________________ (1) Inputs based on quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access. Valuation of these items does not entail a significant amount of judgment. (2) Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. For foreign currency forward contracts, interest rate swaps, cross currency swaps and fuel swaps, fair value is derived using valuation models that utilize the income valuation approach. These valuation models take into account the contract terms, such as maturity as well as other inputs, such as foreign exchange rates and curves, fuel types, fuel curves and interest rate yield curves. Fair value for foreign currency collar options is determined by using standard option pricing models with inputs based on the options' contract terms, such as exercise price and maturity, and readily available public market data, such as foreign exchange curves, foreign exchange volatility levels and discount rates. All derivative instrument fair values take into account the creditworthiness of the counterparty and the Company. (3) Inputs that are unobservable. The Company did not use any Level 3 inputs as of December 31, 2015 and December 31, 2014 . (4) Consists of foreign currency forward contracts and fuel swaps. Please refer to the "Fair Value of Derivative Instruments" table for breakdown by instrument type. (5) Consists of exchange-traded equity securities and mutual funds reported within Other assets in our consolidated balance sheets. (6) Consists of interest rate swaps, fuel swaps, foreign currency forward contracts and foreign currency collar options. Please refer to the "Fair Value of Derivative Instruments" table for breakdown by instrument type. |
Schedule of the Company's goodwill, indefinite-life intangible assets and long-lived assets for Pullmantur reporting unit recorded at fair value on a nonrecurring basis | The following table presents information about the Company's goodwill, indefinite-life intangible assets and long-lived assets for our Pullmantur reporting unit, further discussed in Note 3. Goodwill and Note 4. Intangible Assets , recorded at fair value on a nonrecurring basis (in thousands): Fair Value Measurements at December 31, 2015 Using Description Total Carrying Amount Total Fair Value Level 3 Total Impairment Pullmantur Goodwill (1) $ — $ — $ — $ 123,814 Indefinite-life intangible asset-Pullmantur trademarks and trade names (2) — — — $ 174,285 Long-lived assets — Pullmantur aircraft and vessels (3) 140,846 140,846 140,846 $ 113,168 Total $ 140,846 $ 140,846 $ 140,846 $ 411,267 ___________________________________ (1) We estimated the fair value of the Pullmantur reporting unit using a probability-weighted discounted cash flow model. The principal assumptions used in the discounted cash flow model are projected operating results, weighted-average cost of capital and terminal value. Significantly impacting these assumptions was the decision to reduce the size of Pullmantur's fleet. The discounted cash flow model used our 2016 projected operating results as a base. To that base we added future years’ cash flows through 2020 assuming multiple revenue and expense scenarios that reflect the impact of different global economic environments for this period on Pullmantur’s reporting unit. We assigned a probability to each revenue and expense scenario. We discounted the projected cash flows using rates specific to Pullmantur’s reporting unit based on its weighted-average cost of capital, which was determined to be 11% . The fair value of Pullmantur's goodwill was estimated as of August 31, 2015, the date of the last impairment test, at which point it was fully impaired. (2) We estimated the fair value of our indefinite-life intangible asset using a discounted cash flow model and the relief-from-royalty method. These trademarks and trade names relate to Pullmantur and we have used a discount rate of 11.5% , comparable to the rate used in valuing the Pullmantur reporting unit. The fair value of these assets were estimated as of August 31, 2015, the date of the last impairment test, at which point they were fully impaired. (3) We estimated the fair value of our long-lived assets using the market approach for the aircraft and a blended indication from the cost and market approaches for the vessels as of August 31, 2015, the date of the last impairment test, including depreciation through December 31, 2015. We believe this amount estimates fair value as of December 31, 2015. A significant input in performing the fair value assessments for these assets was comparable market transactions. |
Fuel Swap Agreements | As of December 31, 2015 and 2014 , we had the following outstanding fuel swap agreements: Fuel Swap Agreements As of December 31, 2015 As of December 31, 2014 (metric tons) 2015 — 806,000 2016 930,000 802,000 2017 854,000 525,000 2018 583,000 226,000 2019 231,000 — Fuel Swap Agreements As of December 31, 2015 As of December 31, 2014 (% hedged) Projected fuel purchases for year: 2015 — 58 % 2016 65 % 55 % 2017 59 % 35 % 2018 40 % 15 % 2019 15 % — % |
Fair Value And Line item Caption of Derivative Instruments | The fair value and line item caption of derivative instruments recorded within our consolidated balance sheets were as follows: Fair Value of Derivative Instruments Asset Derivatives Liability Derivatives Balance Sheet As of December 31, 2015 As of December 31, 2014 Balance Sheet As of December 31, 2015 As of December 31, 2014 Fair Value Fair Value Fair Value Fair Value (In thousands) Derivatives designated as hedging instruments under ASC 815-20 (1) Interest rate swaps Other assets $ — $ — Other long-term liabilities $ 67,371 $ 65,768 Foreign currency forward contracts Derivative financial instruments 93,996 — Derivative financial instruments 320,873 17,619 Foreign currency forward contracts Other assets — 63,981 Other long-term liabilities — 164,627 Foreign currency collar options Derivative financial instruments — — Derivative financial instruments — 21,855 Fuel swaps Derivative financial instruments — — Derivative financial instruments 307,475 227,512 Fuel swaps Other assets — — Other long-term liabilities 325,055 270,254 Total derivatives designated as hedging instruments under ASC 815-20 93,996 63,981 1,020,774 767,635 Derivatives not designated as hedging instruments under ASC 815-20 Foreign currency forward contracts Derivative Financial Instruments 32,339 — Derivative financial instruments — — Fuel swaps Derivative financial instruments 8,239 — Derivative financial instruments 23,518 — Total derivatives not designated as hedging instruments under ASC 815-20 40,578 — 23,518 — Total derivatives $ 134,574 $ 63,981 $ 1,044,292 $ 767,635 ___________________________________ (1) Accounting Standard Codification 815-20 " Derivatives and Hedging." |
Fair Value and Line Item Caption of Non-derivative Instruments | The carrying value and line item caption of non-derivative instruments designated as hedging instruments recorded within our consolidated balance sheets were as follows: Carrying Value Non-derivative instrument designated as Balance Sheet Location As of December 31, 2015 As of December 31, 2014 (In thousands) Foreign currency debt Long-term debt $ — $ 168,718 $ — $ 168,718 |
Effect of Non-derivative Instruments Qualifying and Designated as Hedging Instruments in Net Investment Hedges on Consolidated Financial Statements | The effect of non-derivative instruments qualifying and designated as net investment hedging instruments on the consolidated financial statements was as follows: Amount of Gain (Loss) Location of Gain Amount of Gain (Loss) Recognized in Income (Ineffective Portion and Non-derivative instruments under ASC 815-20 Year Ended December 31, 2015 Year Ended December 31, 2014 Year Ended December 31, 2015 Year Ended December 31, 2014 (In thousands) Foreign Currency Debt $ 8,955 $ 25,382 Other income (expense) $ — $ — $ 8,955 $ 25,382 $ — $ — |
Derivative instruments disclosure | |
Offsetting Assets | Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements As of December 31, 2015 As of December 31, 2014 Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheet Gross Amount of Eligible Offsetting Cash Collateral Net Amount of Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheet Gross Amount of Eligible Offsetting Cash Collateral Net Amount of (In thousands) Derivatives subject to master netting agreements $ 134,574 $ (129,815 ) $ — $ 4,759 $ 63,981 $ (63,981 ) $ — $ — Total $ 134,574 $ (129,815 ) $ — $ 4,759 $ 63,981 $ (63,981 ) $ — $ — |
Offsetting Liabilities | The following table presents information about the Company’s offsetting of financial liabilities under master netting agreements with derivative counterparties: Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements As of December 31, 2015 As of December 31, 2014 Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheet Gross Amount of Eligible Offsetting Cash Collateral Net Amount of Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheet Gross Amount of Eligible Offsetting Cash Collateral Net Amount of (In thousands) Derivatives subject to master netting agreements $ (1,044,292 ) $ 129,815 $ — $ (914,477 ) $ (767,635 ) $ 63,981 $ — $ (703,654 ) Total $ (1,044,292 ) $ 129,815 $ — $ (914,477 ) $ (767,635 ) $ 63,981 $ — $ (703,654 ) |
Not Designated as Hedging Instrument | |
Derivative instruments disclosure | |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The effect of derivatives not designated as hedging instruments on the consolidated financial statements was as follows: Amount of Gain (Loss) Recognized Derivatives Not Designated as Hedging Location of Gain (Loss) Year Ended December 31, 2015 Year Ended December 31, 2014 (In thousands) Foreign currency forward contracts Other income (expense) $ (55,489 ) $ (48,791 ) Fuel swaps Other income (expense) (175 ) (1,795 ) $ (55,664 ) $ (50,586 ) |
Fair Value Hedging | |
Derivative instruments disclosure | |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The effect of derivative instruments qualifying and designated as hedging instruments and the related hedged items in fair value hedges on the consolidated statements of comprehensive income (loss) were as follows: Location of Gain Amount of Gain (Loss) Amount of Gain (Loss) Derivatives and related Hedged Items Year Ended December 31, 2015 Year Ended December 31, 2014 Year Ended December 31, 2015 Year Ended December 31, 2014 (In thousands) Interest rate swaps Interest expense, net of interest capitalized $ 11,276 $ 12,217 $ 15,743 $ 17,403 Interest rate swaps Other income (expense) 10,779 42,530 (7,533 ) (34,304 ) $ 22,055 $ 54,747 $ 8,210 $ (16,901 ) |
Cash flow hedge | |
Derivative instruments disclosure | |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The effect of derivative instruments qualifying and designated as cash flow hedging instruments on the consolidated financial statements was as follows: Amount of Gain (Loss) Location of Gain Amount of Gain (Loss) Location of Gain Amount of Gain (Loss) Derivatives under Year Ended December 31, 2015 Year Ended December 31, 2014 Year Ended December 31, 2015 Year Ended December 31, 2014 Year Ended December 31, 2015 Year Ended December 31, 2014 (In thousands) Cross currency swaps $ — $ — Interest expense $ — $ (261 ) Other income (expense) $ — $ — Interest rate swaps (52,602 ) (113,116 ) Interest expense (36,401 ) (15,264 ) Other income (expense) 38 (99 ) Foreign currency forward contracts (141,470 ) (246,627 ) Depreciation and amortization expenses (2,871 ) (1,887 ) Other income (expense) — (34 ) Foreign currency forward contracts — — Other income (expense) 7,580 (4,291 ) Other income (expense) — — Foreign currency forward contracts — — Interest expense — (57 ) Other income (expense) — — Foreign currency collar options (64,559 ) (44,028 ) Depreciation and amortization expenses (1,605 ) — Other income (expense) — — Fuel swaps — — Other income (expense) (9,583 ) — Other income (expense) — — Fuel swaps (439,040 ) (515,324 ) Fuel (248,744 ) (27,984 ) Other income (expense) (487 ) (14,936 ) $ (697,671 ) $ (919,095 ) $ (291,624 ) $ (49,744 ) $ (449 ) $ (15,069 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum lease payments under noncancelable operating leases | As of December 31, 2015 , future minimum lease payments under noncancelable operating leases were as follows (in thousands): Year 2016 $ 22,229 2017 18,774 2018 15,432 2019 12,323 2020 10,806 Thereafter 146,951 $ 226,515 |
Schedule of future commitments to pay for usage of port facilities, marine consumables, services and maintenance contracts | At December 31, 2015 , we have future commitments to pay for our usage of certain port facilities, marine consumables, services and maintenance contracts as follows (in thousands): Year 2016 $ 60,064 2017 60,964 2018 28,437 2019 100,048 2020 28,665 Thereafter 86,556 $ 364,734 |
Restructuring and Related Cha38
Restructuring and Related Charges (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | For the years ended December 31, 2014 and December 31, 2013, we incurred the following restructuring and related impairment charges in connection with our profitability initiatives (in thousands): 2014 2013 Restructuring exit costs $ 4,318 $ 23,432 Impairment charges — 33,514 Restructuring and related impairment charges $ 4,318 $ 56,946 |
Quarterly Selected Financial 39
Quarterly Selected Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Selected Financial Data | (In thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter 2015 2014 2015 2014 2015 2014 2015 2014 Total revenues (1) $ 1,815,599 $ 1,887,224 $ 2,058,322 $ 1,980,043 $ 2,523,100 $ 2,388,762 $ 1,902,053 $ 1,817,826 Operating income (2)(3) $ 105,682 $ 97,466 $ 261,297 $ 195,587 $ 258,005 $ 529,462 $ 249,918 $ 119,344 Net income (2)(3)(4) $ 45,230 $ 26,457 $ 184,967 $ 137,673 $ 228,787 $ 490,248 $ 206,799 $ 109,768 Earnings per share: Basic $ 0.21 $ 0.12 $ 0.84 $ 0.62 $ 1.04 $ 2.20 $ 0.95 $ 0.50 Diluted $ 0.20 $ 0.12 $ 0.84 $ 0.62 $ 1.03 $ 2.19 $ 0.94 $ 0.49 Dividends declared per share $ 0.30 $ 0.25 $ 0.30 $ 0.25 $ 0.38 $ 0.30 $ 0.38 $ 0.30 ___________________________________ (1) Our revenues are seasonal based on the demand for cruises. Demand is strongest for cruises during the Northern Hemisphere's summer months and holidays. (2) Amounts for the third quarter of 2015 include an impairment charge of $411.3 million to write down Pullmantur's goodwill, trademarks and trade names and certain long-lived assets to their fair value. Amounts for the third quarter of 2014 include a loss of $17.4 million due to the sale of Celebrity Century . (3) Amounts for the third and fourth quarters of 2014 include an aggregate increase to operating income and net income of $16.3 million and $36.8 million , respectively, due to the change in our voyage proration methodology as of September 30, 2014. Refer to Note 2. Summary of Significant Accounting Policies for further information. (4) Amount for the third quarter of 2015 includes a tax benefit of $12.0 million related to the Pullmantur impairment. Amount for the fourth quarter of 2014 includes a $33.5 million tax benefit related to the reversal of a deferred tax asset valuation allowance due to Spanish tax reform. Refer to Note 12. Income Taxes for further information. |
General (Details)
General (Details) | 12 Months Ended |
Dec. 31, 2015shipcontinentdestinationbrand | |
General | |
Investment in a joint venture, percentage of interest | 50.00% |
Number of cruise brands | brand | 6 |
Number of ships in operation | ship | 44 |
Current Fiscal Year End Date | --12-31 |
Number of destinations | destination | 490 |
Number of continents | continent | 7 |
Document Fiscal Year Focus | 2,014 |
Minimum | |
General | |
Investment in a joint venture, percentage of interest | 20.00% |
Maximum | |
General | |
Investment in a joint venture, percentage of interest | 50.00% |
TUI Cruises | |
General | |
Investment in a joint venture, percentage of interest | 50.00% |
Pullmantur and CDF Croisieres de France | |
General | |
Time lag in consolidation | 2 months |
Summary of Significant Accoun41
Summary of Significant Accounting Policies (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Dec. 31, 2015USD ($)ship | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Significant Accounting Policies [Line Items] | |||||
Impact of voyage proration change, increase in Operating and Net Income | $ 36.8 | $ 16.3 | $ 53.2 | ||
Gross amount of port costs included in passenger ticket revenues | $ 561.1 | $ 546.6 | $ 494.2 | ||
Number of Cruise Ships | ship | 44 | ||||
Exchange gains (losses) recorded in other income (expense) | $ 34.6 | 49.5 | 13.4 | ||
Exposure under foreign currency forward contracts, foreign currency collar options, fuel call options, interest rate and fuel swap agreements | $ 4.8 | 4.8 | |||
Adjustments for New Accounting Pronouncement | Other Assets | |||||
Significant Accounting Policies [Line Items] | |||||
Reclassification to conform to current year presentation | 41.9 | ||||
Adjustments for New Accounting Pronouncement | Net deferred income tax (benefit) expense | |||||
Significant Accounting Policies [Line Items] | |||||
Reclassification to conform to current year presentation | 3.4 | 3.3 | |||
Ships | |||||
Significant Accounting Policies [Line Items] | |||||
Property, plant and equipment, useful life | 30 years | ||||
Projected residual value | 15.00% | ||||
Ships | Lower Limit | |||||
Significant Accounting Policies [Line Items] | |||||
Drydock services period | 30 months | ||||
Ships | Upper Limit | |||||
Significant Accounting Policies [Line Items] | |||||
Drydock services period | 60 months | ||||
Media advertising | |||||
Significant Accounting Policies [Line Items] | |||||
Advertising costs | $ 242.8 | 205.2 | 205.8 | ||
Brochure, production and direct mail costs | |||||
Significant Accounting Policies [Line Items] | |||||
Advertising costs | $ 127.1 | $ 136.7 | $ 137.1 |
Summary of Significant Accoun42
Summary of Significant Accounting Policies (Useful Lives of Property and Equipment) (Details) | 12 Months Ended |
Dec. 31, 2015ship | |
Property, Plant and Equipment [Line Items] | |
Number of Cruise Ships | 44 |
Ships | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 30 years |
Ship improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Ship improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 20 years |
Buildings and improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 10 years |
Buildings and improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 40 years |
Computer hardware and software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Computer hardware and software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Transportation equipment and other | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Transportation equipment and other | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 30 years |
Leasehold improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Leasehold improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 30 years |
Summary of Significant Accoun43
Summary of Significant Accounting Policies (Passenger Ticket Revenues) (Details) | 12 Months Ended | ||
Dec. 31, 2015brandsegment | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||
Number of cruise brands wholly owned | brand | 5 | ||
Investment in a joint venture, percentage of interest | 50.00% | ||
Number of operating segments | segment | 1 | ||
United States | |||
Passengers ticket revenue, percentage | |||
Passengers ticket revenue, percentage | 55.00% | 53.00% | 52.00% |
All other countries | |||
Passengers ticket revenue, percentage | |||
Passengers ticket revenue, percentage | 45.00% | 47.00% | 48.00% |
TUI Cruises | |||
Segment Reporting Information [Line Items] | |||
Investment in a joint venture, percentage of interest | 50.00% |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill [Roll Forward] | |||
Beginning balance | $ 420,542 | ||
Ending balance | 286,764 | $ 420,542 | |
Royal Caribbean International | |||
Goodwill | |||
Impairment charge | 0 | ||
Goodwill [Roll Forward] | |||
Beginning balance | 286,958 | 287,124 | |
Foreign currency translation adjustment | (194) | (166) | |
Ending balance | 286,764 | 286,958 | |
Pullmantur | |||
Goodwill | |||
Impairment charge | (123,814) | ||
Goodwill [Roll Forward] | |||
Beginning balance | 133,584 | 152,107 | |
Foreign currency translation adjustment | (9,770) | (18,523) | |
Ending balance | 0 | 133,584 | |
Royal Caribbean International & Pullmantur Cruises | |||
Goodwill | |||
Impairment charge | (123,814) | ||
Goodwill [Roll Forward] | |||
Beginning balance | 420,542 | 439,231 | |
Foreign currency translation adjustment | (9,964) | (18,689) | |
Ending balance | $ 286,764 | $ 420,542 | |
Goodwill | Royal Caribbean International | |||
Goodwill | |||
Fair Value in excess of carrying value, percent | 90.00% | ||
Goodwill | Pullmantur | |||
Goodwill | |||
Impairment charge | $ (123,800) | ||
Goodwill, Impaired, Accumulated Impairment Loss | $ 443,000 | ||
Brazil, Brazil Real | |||
Goodwill | |||
Currency Devaluation | 22.00% |
Indefinite-Lived Intangible Ass
Indefinite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Pullmantur | Trademarks and trade names | ||
Indefinite-lived Intangible Assets [Roll Forward] | ||
Indefinite-life intangible asset—Pullmantur trademarks and trade names | $ 188,038 | $ 214,112 |
Impairment charge | (174,285) | 0 |
Foreign currency translation adjustment | (13,753) | (26,074) |
Total | 0 | $ 188,038 |
Pullmantur | ||
Indefinite-lived Intangible Assets [Roll Forward] | ||
Impairment charge | $ (174,285) |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Abstract] | ||
Ships | $ 22,102,025 | $ 21,620,336 |
Ship improvements | 2,019,294 | 1,904,524 |
Ships under construction | 734,998 | 561,779 |
Land, buildings and improvements, including leasehold improvements and port facilities | 337,109 | 303,394 |
Computer hardware and software, transportation equipment and other | 1,025,264 | 889,579 |
Total property and equipment | 26,218,690 | 25,279,612 |
Less-accumulated depreciation and amortization | (7,440,912) | (7,085,985) |
Property and equipment, net | $ 18,777,778 | $ 18,193,627 |
Property and Equipment (Narrati
Property and Equipment (Narrative) (Details) $ in Thousands, £ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2014USD ($) | Dec. 31, 2014GBP (£) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2014GBP (£) | Dec. 31, 2013USD ($) | Nov. 30, 2014 | |
Property and Equipment | ||||||||||
Capitalized interest cost | $ 26,500 | $ 28,800 | $ 17,900 | |||||||
Proceeds from sale of property and equipment | 220,000 | |||||||||
Loss on sale of property and equipment | $ 17,400 | $ 0 | 17,401 | 0 | ||||||
Investment in a joint venture, percentage of interest | 50.00% | |||||||||
Skysea Holding | ||||||||||
Property and Equipment | ||||||||||
Investment in a joint venture, percentage of interest | 35.00% | |||||||||
Pullmantur Cruise | ||||||||||
Property and Equipment | ||||||||||
Restructuring related impairments | $ 18,200 | |||||||||
Pullmantur's Aircraft | ||||||||||
Property and Equipment | ||||||||||
Impairment of Pullmantur related assets held for use | $ 113,200 | $ 13,500 | ||||||||
Revolving credit facility due in August 2018 | ||||||||||
Property and Equipment | ||||||||||
Borrowing capacity, funds used for the purchase of Brilliance of the Seas | $ 1,200,000 | 1,200,000 | ||||||||
Ocean Dream Ship | ||||||||||
Property and Equipment | ||||||||||
Promissory note receivable for the sale of Ocean Dream | $ 34,600 | |||||||||
Debt Instrument, Term | 9 years | |||||||||
Long term debt, stated interest rate (as a percent) | 6.00% | |||||||||
Time at which the immaterial gain due to sale of ship will be recognized | 9 years | |||||||||
Celebrity Century Ship | ||||||||||
Property and Equipment | ||||||||||
Proceeds from sale of property and equipment | 220,000 | |||||||||
Loss on sale of property and equipment | $ 17,400 | |||||||||
Brilliance of the Seas Vessel Lease | ||||||||||
Property and Equipment | ||||||||||
Initial Lease Term | 25 years | 25 years | ||||||||
Brilliance of the Seas | ||||||||||
Property and Equipment | ||||||||||
Purchase price of Brilliance of the Seas, PPE addition | $ 275,400 | £ 175.4 | $ 275,400 | £ 175.4 | ||||||
Asset Carrying Amount, Brilliance of the Seas, Including Improvements | $ 330,500 |
Other Assets (Details)
Other Assets (Details) $ in Thousands, € in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
May. 31, 2015 | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($)ship | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2015EUR (€)ship | Mar. 31, 2015EUR (€) | Nov. 30, 2014 | |
Other Assets | ||||||||
Investment in a joint venture, percentage of interest | 50.00% | 50.00% | ||||||
Current Fiscal Year End Date | --12-31 | |||||||
Principal and Interest payments received from Grand Bahama (VIE) | $ 124,253 | $ 76,167 | $ 23,372 | |||||
Income (Loss) from Equity Method Investments | 81,000 | 51,600 | 32,000 | |||||
Cash Dividends Paid to Parent Company by Unconsolidated Subsidiaries | 33,338 | 5,814 | 5,093 | |||||
Related Party Transaction, Other Revenues from Transactions with Related Party | 20,200 | 8,500 | 9,100 | |||||
Related Party Transaction, Expenses from Transactions with Related Party | $ 15,700 | 4,000 | $ 4,500 | |||||
Grand Bahamas Shipyard Ltd. | Not Primary Beneficiary | ||||||||
Other Assets | ||||||||
Investment in a joint venture, percentage of interest | 40.00% | 40.00% | ||||||
Payments to related parties for services provided | $ 21,700 | |||||||
Net book value of investments | 51,200 | 53,800 | ||||||
Grand Bahamas Shipyard Ltd. | Not Primary Beneficiary | Accrual status of advances to affiliates | ||||||||
Other Assets | ||||||||
Principal and Interest payments received from Grand Bahama (VIE) | 3,100 | 3,600 | ||||||
Grand Bahamas Shipyard Ltd. | Not Primary Beneficiary | non-accrual status of advances to affiliates | ||||||||
Other Assets | ||||||||
Principal and Interest payments received from Grand Bahama (VIE) | 4,400 | |||||||
Grand Bahamas Shipyard Ltd. | Not Primary Beneficiary | Equity | ||||||||
Other Assets | ||||||||
Equity investment | 12,600 | 7,700 | ||||||
Grand Bahamas Shipyard Ltd. | Not Primary Beneficiary | Loans Receivable | ||||||||
Other Assets | ||||||||
Loan investment | $ 38,600 | $ 46,100 | ||||||
TUI Cruises GmbH joint venture | ||||||||
Other Assets | ||||||||
Related Party Guarantor Obligation Percentage | 50.00% | |||||||
Investment in a joint venture, percentage of interest | 50.00% | 50.00% | ||||||
Number of Ships on Order | ship | 4 | 4 | ||||||
Long term debt, principal amount | € | € 150 | |||||||
Conditional guarantee commitment percentage | 95.00% | |||||||
Amount outstanding under line of credit provided to TUI Cruises | $ 149,400 | € 137.4 | ||||||
Bank financing commitment percentage | 80.00% | 80.00% | ||||||
Reduction of current ownership interest, minimum allowed (as a percent) | 37.55% | 37.55% | ||||||
TUI Cruises GmbH joint venture | Not Primary Beneficiary | ||||||||
Other Assets | ||||||||
Investment in a joint venture, percentage of interest | 50.00% | 50.00% | ||||||
Net book value of investments | $ 293,800 | $ 370,100 | ||||||
Skysea Holding | ||||||||
Other Assets | ||||||||
Investment in a joint venture, percentage of interest | 35.00% | |||||||
Skysea Holding | Not Primary Beneficiary | ||||||||
Other Assets | ||||||||
Investment in a joint venture, percentage of interest | 35.00% | 35.00% | ||||||
Net book value of investments | $ 99,800 | $ 106,300 | ||||||
Loan investment | $ 80,000 | |||||||
Interest rate on debt facility provided to related party (as a percent) | 3.00% | 3.00% | ||||||
Conditional guarantee commitment percentage | 100.00% | |||||||
Debt instrument, interest rate, incremental increase (decrease), future periods | 0.50% | |||||||
Splendour of the Seas [Domain] | TUI Cruises GmbH joint venture | ||||||||
Other Assets | ||||||||
Debt Instrument, Term | 10 years | |||||||
Related Party Guarantor Obligation Percentage | 50.00% | |||||||
Interest rate on debt facility provided to related party (as a percent) | 6.25% | 6.25% | ||||||
Hedged sales price of ship | $ 213,000 | |||||||
Expected sales price of ship | € | € 188 |
Other Assets Equity Method Inve
Other Assets Equity Method Investee (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Equity Method Investment, Summarized Financial Information [Abstract] | |||
Current Assets | $ 315,264 | $ 325,527 | |
Noncurrent Assets | 2,246,809 | 1,929,182 | |
Total Assets | 2,562,073 | 2,254,709 | |
Current Liabilities | 585,887 | 513,842 | |
Noncurrent Liabilities | 1,231,262 | 958,988 | |
Total Liabilities | 1,817,149 | 1,472,830 | |
Equity in noncontrolling interest | 1,683 | 2,795 | |
Total Revenue | 990,172 | 797,441 | $ 605,293 |
Total Expenses | (830,898) | (682,430) | (538,922) |
Net Income (Loss) | $ 159,274 | $ 115,011 | $ 66,371 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Long-Term Debt | ||
Long Term Debt and Capital lease obligations | $ 8,667,055 | $ 8,443,948 |
Less - current portion | (899,677) | (799,630) |
Long-term portion | 7,767,378 | 7,644,318 |
$1.4 billion unsecured revolving credit facility, LIBOR plus 1.50%, currently 1.92% and a facility fee of 0.25%, due 2020 | ||
Long-Term Debt | ||
Long Term Debt | 945,000 | 713,000 |
$1.2 billion unsecured revolving credit facility, LIBOR plus 1.50%, currently 1.89% and a facility fee of 0.25%, due 2018 | ||
Long-Term Debt | ||
Long Term Debt | 895,000 | 778,000 |
Unsecured senior notes and senior debentures, 5.25% to 7.50%, due 2016, 2018, 2022 and 2027 | ||
Long-Term Debt | ||
Long Term Debt | 1,434,542 | 1,721,190 |
$742.1 million unsecured senior notes, LIBOR plus 1.30%, currently 1.83%, due through 2027 | ||
Long-Term Debt | ||
Long Term Debt | 711,180 | 0 |
$530 million unsecured term loan, LIBOR plus 0.51%, due through 2015 | ||
Long-Term Debt | ||
Long Term Debt | 0 | 37,857 |
$519 million unsecured term loan, LIBOR plus 0.45%, currently 0.98%, due through 2020 | ||
Long-Term Debt | ||
Long Term Debt | 216,311 | 259,573 |
$420 million unsecured term loan, 5.41%, due through 2021 | ||
Long-Term Debt | ||
Long Term Debt | 207,223 | 241,827 |
$420 million unsecured term loan, LIBOR plus 1.85%, currently 2.38%, due through 2021 | ||
Long-Term Debt | ||
Long Term Debt | 210,000 | 245,000 |
€159.4 million unsecured term loan, EURIBOR plus 1.58%, currently 1.60%, due through 2021 | ||
Long-Term Debt | ||
Long Term Debt | 86,650 | 112,540 |
$524.5 million unsecured term loan, LIBOR plus 0.50%, currently 0.96%, due through 2021 | ||
Long-Term Debt | ||
Long Term Debt | 262,250 | 305,958 |
$566.1 million unsecured term loan, LIBOR plus 0.37%, currently 0.89%, due through 2022 | ||
Long-Term Debt | ||
Long Term Debt | 306,621 | 353,793 |
$1.1 billion unsecured term loan, LIBOR plus 1.85%, currently 2.38%, due through 2022 | ||
Long-Term Debt | ||
Long Term Debt | 537,426 | 614,203 |
$632.0 million unsecured term loan, LIBOR plus 0.40%, currently 0.86%, due through 2023 | ||
Long-Term Debt | ||
Long Term Debt | 421,306 | 473,969 |
$673.5 million unsecured term loan, LIBOR plus 0.40%, currently 0.93%, due through 2024 | ||
Long-Term Debt | ||
Long Term Debt | 505,106 | 561,228 |
$65.0 million unsecured term loan, LIBOR plus 1.75%, currently 2.17%, due through 2019 | ||
Long-Term Debt | ||
Long Term Debt | 71,500 | 51,100 |
$1.0 million unsecured term loan, 3.00%, due through 2015 | ||
Long-Term Debt | ||
Long Term Debt | 0 | 750 |
$380.0 million unsecured term loan, LIBOR plus 1.75%, currently 2.17%, due through 2018 | ||
Long-Term Debt | ||
Long Term Debt | 380,000 | 380,000 |
$791.1 million unsecured term loan, LIBOR plus 1.30%, currently 1.83%, due through 2026 | ||
Long-Term Debt | ||
Long Term Debt | 725,182 | 791,108 |
$290.0 million unsecured term loan, LIBOR plus 1.75%, currently 2.17%, due 2018 | ||
Long-Term Debt | ||
Long Term Debt | 290,000 | 290,000 |
€365 million unsecured term loan, EURIBOR plus 1.75%, currently 1.75%, due 2017 | ||
Long-Term Debt | ||
Long Term Debt | 396,755 | 441,687 |
$7.3 million unsecured term loan, LIBOR plus 2.5%, currently 3.02%, due through 2023 | ||
Long-Term Debt | ||
Long Term Debt | 4,440 | 4,915 |
$30.3 million unsecured term loan, LIBOR plus 3.75%, currently 4.24%, due through 2021 | ||
Long-Term Debt | ||
Long Term Debt | 11,793 | 13,603 |
Capital lease obligations | ||
Long-Term Debt | ||
Capital Lease Obligations | $ 48,770 | $ 52,647 |
Long-Term Debt (Long-Term Debt
Long-Term Debt (Long-Term Debt Phantom) (Details) | 12 Months Ended | |
Dec. 31, 2015USD ($) | Dec. 31, 2015EUR (€) | |
EURIBOR | ||
Long-Term Debt | ||
Debt Instrument, Description of Variable Rate Basis | EURIBOR | |
LIBOR | ||
Long-Term Debt | ||
Debt Instrument, Description of Variable Rate Basis | LIBOR | |
$1.4 billion unsecured revolving credit facility, LIBOR plus 1.50%, currently 1.92% and a facility fee of 0.25%, due 2020 | ||
Long-Term Debt | ||
Long term debt, principal amount | $ 1,400,000,000 | |
Long term debt, current interest rate (as a percent) | 1.92% | 1.92% |
Long term debt, facility fee (as a percent) | 0.25% | |
Margin on floating rate base (as a percent) | 1.50% | |
Long term debt, due date (year) | 2,020 | |
$1.2 billion unsecured revolving credit facility, LIBOR plus 1.50%, currently 1.89% and a facility fee of 0.25%, due 2018 | ||
Long-Term Debt | ||
Long term debt, principal amount | $ 1,200,000,000 | |
Long term debt, current interest rate (as a percent) | 1.89% | 1.89% |
Long term debt, facility fee (as a percent) | 0.25% | |
Margin on floating rate base (as a percent) | 1.50% | |
Long term debt, due date (year) | 2,018 | |
Unsecured senior notes and senior debentures, 5.25% to 7.50%, due 2016, 2018, 2022 and 2027 | ||
Long-Term Debt | ||
Long term debt, minimum stated interest rate | 5.25% | |
Long term debt, maximum stated interest rate | 7.50% | |
Unsecured senior notes and senior debentures, 5.25% to 7.50%, due 2016, 2018, 2022 and 2027 | Period 1 | ||
Long-Term Debt | ||
Long term debt, minimum stated interest rate | 5.25% | |
Long term debt, maximum stated interest rate | 7.50% | |
Unsecured senior notes and senior debentures, 5.25% to 7.50%, due 2016, 2018, 2022 and 2027 | Period 2 | ||
Long-Term Debt | ||
Long term debt, minimum stated interest rate | 5.25% | |
Long term debt, maximum stated interest rate | 7.50% | |
Unsecured senior notes and senior debentures, 5.25% to 7.50%, due 2016, 2018, 2022 and 2027 | Period 3 | ||
Long-Term Debt | ||
Long term debt, minimum stated interest rate | 5.25% | |
Long term debt, maximum stated interest rate | 7.50% | |
Unsecured senior notes and senior debentures, 5.25% to 7.50%, due 2016, 2018, 2022 and 2027 | Period 4 | ||
Long-Term Debt | ||
Long term debt, minimum stated interest rate | 5.25% | |
Long term debt, maximum stated interest rate | 7.50% | |
Unsecured senior notes and senior debentures, 5.25% to 7.50%, due 2016, 2018, 2022 and 2027 | Upper Limit | Period 1 | ||
Long-Term Debt | ||
Long term debt, due date (year) | 2,016 | |
Unsecured senior notes and senior debentures, 5.25% to 7.50%, due 2016, 2018, 2022 and 2027 | Upper Limit | Period 2 | ||
Long-Term Debt | ||
Long term debt, due date (year) | 2,018 | |
Unsecured senior notes and senior debentures, 5.25% to 7.50%, due 2016, 2018, 2022 and 2027 | Upper Limit | Period 3 | ||
Long-Term Debt | ||
Long term debt, due date (year) | 2,022 | |
Unsecured senior notes and senior debentures, 5.25% to 7.50%, due 2016, 2018, 2022 and 2027 | Upper Limit | Period 4 | ||
Long-Term Debt | ||
Long term debt, due date (year) | 2,027 | |
$742.1 million unsecured senior notes, LIBOR plus 1.30%, currently 1.83%, due through 2027 | ||
Long-Term Debt | ||
Long term debt, principal amount | € | € 742,100,000 | |
Long term debt, current interest rate (as a percent) | 1.83% | 1.83% |
Margin on floating rate base (as a percent) | 1.30% | |
Long term debt, due date (year) | 2,027 | |
$530 million unsecured term loan, LIBOR plus 0.51%, due through 2015 | ||
Long-Term Debt | ||
Long term debt, principal amount | $ 530,000,000 | |
Margin on floating rate base (as a percent) | 0.51% | |
Long term debt, due date (year) | 2,015 | |
$519 million unsecured term loan, LIBOR plus 0.45%, currently 0.98%, due through 2020 | ||
Long-Term Debt | ||
Long term debt, principal amount | $ 519,000,000 | |
Long term debt, current interest rate (as a percent) | 0.98% | 0.98% |
Margin on floating rate base (as a percent) | 0.45% | |
Long term debt, due date (year) | 2,020 | |
$420 million unsecured term loan, 5.41%, due through 2021 | ||
Long-Term Debt | ||
Long term debt, principal amount | $ 420,000,000 | |
Long term debt, stated interest rate (as a percent) | 5.41% | 5.41% |
Long term debt, due date (year) | 2,021 | |
$420 million unsecured term loan, LIBOR plus 1.85%, currently 2.38%, due through 2021 | ||
Long-Term Debt | ||
Long term debt, principal amount | $ 420,000,000 | |
Long term debt, current interest rate (as a percent) | 2.38% | 2.38% |
Margin on floating rate base (as a percent) | 1.85% | |
Long term debt, due date (year) | 2,021 | |
€159.4 million unsecured term loan, EURIBOR plus 1.58%, currently 1.60%, due through 2021 | ||
Long-Term Debt | ||
Long term debt, principal amount | € | € 159,400,000 | |
Long term debt, current interest rate (as a percent) | 1.60% | 1.60% |
Margin on floating rate base (as a percent) | 1.58% | |
Long term debt, due date (year) | 2,021 | |
$524.5 million unsecured term loan, LIBOR plus 0.50%, currently 0.96%, due through 2021 | ||
Long-Term Debt | ||
Long term debt, principal amount | $ 524,500,000 | |
Long term debt, current interest rate (as a percent) | 0.96% | 0.96% |
Margin on floating rate base (as a percent) | 0.50% | |
Long term debt, due date (year) | 2,021 | |
$566.1 million unsecured term loan, LIBOR plus 0.37%, currently 0.89%, due through 2022 | ||
Long-Term Debt | ||
Long term debt, principal amount | $ 566,100,000 | |
Long term debt, current interest rate (as a percent) | 0.89% | 0.89% |
Margin on floating rate base (as a percent) | 0.37% | |
Long term debt, due date (year) | 2,022 | |
$1.1 billion unsecured term loan, LIBOR plus 1.85%, currently 2.38%, due through 2022 | ||
Long-Term Debt | ||
Long term debt, principal amount | $ 1,100,000,000 | |
Long term debt, current interest rate (as a percent) | 2.38% | 2.38% |
Margin on floating rate base (as a percent) | 1.85% | |
Long term debt, due date (year) | 2,022 | |
$632.0 million unsecured term loan, LIBOR plus 0.40%, currently 0.86%, due through 2023 | ||
Long-Term Debt | ||
Long term debt, principal amount | $ 632,000,000 | |
Long term debt, current interest rate (as a percent) | 0.86% | 0.86% |
Margin on floating rate base (as a percent) | 0.40% | |
Long term debt, due date (year) | 2,023 | |
$673.5 million unsecured term loan, LIBOR plus 0.40%, currently 0.93%, due through 2024 | ||
Long-Term Debt | ||
Long term debt, principal amount | $ 673,500,000 | |
Long term debt, current interest rate (as a percent) | 0.93% | 0.93% |
Margin on floating rate base (as a percent) | 0.40% | |
Long term debt, due date (year) | 2,024 | |
$65.0 million unsecured term loan, LIBOR plus 1.75%, currently 2.17%, due through 2019 | ||
Long-Term Debt | ||
Long term debt, principal amount | $ 65,000,000 | |
Long term debt, current interest rate (as a percent) | 2.17% | 2.17% |
Margin on floating rate base (as a percent) | 1.75% | |
Long term debt, due date (year) | 2,019 | |
$1.0 million unsecured term loan, 3.00%, due through 2015 | ||
Long-Term Debt | ||
Long term debt, principal amount | $ 1,000,000,000 | |
Long term debt, stated interest rate (as a percent) | 3.00% | 3.00% |
Long term debt, due date (year) | 2,015 | |
$380.0 million unsecured term loan, LIBOR plus 1.75%, currently 2.17%, due through 2018 | ||
Long-Term Debt | ||
Long term debt, principal amount | $ 380,000,000 | |
Long term debt, current interest rate (as a percent) | 2.17% | 2.17% |
Margin on floating rate base (as a percent) | 1.75% | |
Long term debt, due date (year) | 2,018 | |
$380.0 million unsecured term loan, LIBOR plus 1.75%, currently 2.17%, due through 2018 | LIBOR | ||
Long-Term Debt | ||
Margin on floating rate base (as a percent) | 1.75% | |
$791.1 million unsecured term loan, LIBOR plus 1.30%, currently 1.83%, due through 2026 | ||
Long-Term Debt | ||
Long term debt, principal amount | $ 791,100,000 | |
Long term debt, current interest rate (as a percent) | 1.83% | 1.83% |
Margin on floating rate base (as a percent) | 1.30% | |
Long term debt, due date (year) | 2,026 | |
$290.0 million unsecured term loan, LIBOR plus 1.75%, currently 2.17%, due 2018 | ||
Long-Term Debt | ||
Long term debt, principal amount | $ 290,000,000 | |
Long term debt, current interest rate (as a percent) | 2.17% | 2.17% |
Margin on floating rate base (as a percent) | 1.75% | |
Long term debt, due date (year) | 2,018 | |
€365 million unsecured term loan, EURIBOR plus 1.75%, currently 1.75%, due 2017 | ||
Long-Term Debt | ||
Long term debt, principal amount | € | € 365,000,000 | |
Long term debt, current interest rate (as a percent) | 1.75% | 1.75% |
Margin on floating rate base (as a percent) | 1.75% | |
Long term debt, due date (year) | 2,017 | |
$7.3 million unsecured term loan, LIBOR plus 2.5%, currently 3.02%, due through 2023 | ||
Long-Term Debt | ||
Long term debt, principal amount | $ 7,300,000 | |
Long term debt, current interest rate (as a percent) | 3.02% | 3.02% |
Margin on floating rate base (as a percent) | 2.50% | |
Long term debt, due date (year) | 2,023 | |
$30.3 million unsecured term loan, LIBOR plus 3.75%, currently 4.24%, due through 2021 | ||
Long-Term Debt | ||
Long term debt, principal amount | $ 30,300,000 | |
Long term debt, current interest rate (as a percent) | 4.24% | 4.24% |
Margin on floating rate base (as a percent) | 3.75% | |
Long term debt, due date (year) | 2,021 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) | 1 Months Ended | 12 Months Ended | ||||||
Feb. 18, 2016 | Dec. 31, 2015USD ($) | Dec. 31, 2015EUR (€) | Oct. 31, 2015USD ($) | Jul. 31, 2015USD ($) | Jul. 31, 2015EUR (€) | Jun. 30, 2015USD ($) | Dec. 31, 2014USD ($) | |
LIBOR | ||||||||
Long-Term Debt | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,600,000,000 | |||||||
Anthem of the Seas Unsecured Term Loan | ||||||||
Long-Term Debt | ||||||||
Maximum borrowing capacity under credit agreement | $ 742,100,000 | |||||||
Conditional guarantee commitment percentage | 95.00% | |||||||
Long term debt, current interest rate (as a percent) | 1.83% | 1.83% | ||||||
Anthem of the Seas Unsecured Term Loan | LIBOR | ||||||||
Long-Term Debt | ||||||||
Margin on floating rate base (as a percent) | 1.30% | |||||||
Allure of the Seas term loan | ||||||||
Long-Term Debt | ||||||||
Unsecured Term Loan Maximum Borrowing Commintment Per Ship | $ 1,100,000,000 | |||||||
Allure of the Seas term loan | LIBOR | ||||||||
Long-Term Debt | ||||||||
Margin on floating rate base (as a percent) | 1.85% | |||||||
Revolving Credit Facility Due in June 2020 | LIBOR | ||||||||
Long-Term Debt | ||||||||
Margin on floating rate base (as a percent) | 1.50% | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,400,000,000 | |||||||
Credit agency fees, percentage of outstanding loan balance | 0.25% | |||||||
Additional amount allowed to increase credit facility | $ 300,000,000 | |||||||
Revolving credit facility due in August 2018 | ||||||||
Long-Term Debt | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,200,000,000 | |||||||
Revolving credit facility due in August 2018 | LIBOR | ||||||||
Long-Term Debt | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,200,000,000 | |||||||
Revolving credit facility due July 2016 | LIBOR | ||||||||
Long-Term Debt | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,100,000,000 | $ 1,100,000,000 | ||||||
Unsecured term loan maturing 12 years after ship delivery | ||||||||
Long-Term Debt | ||||||||
Debt Instrument, Term | 12 years | |||||||
Unsecured term loans guaranteed by an export credit agency | Maximum | ||||||||
Long-Term Debt | ||||||||
Credit agency fees, percentage of outstanding loan balance | 1.48% | |||||||
Unsecured term loans guaranteed by an export credit agency | Up-front Payment Arrangement | Minimum | ||||||||
Long-Term Debt | ||||||||
Credit agency fees, percentage of loan amount payable | 2.35% | |||||||
Unsecured term loans guaranteed by an export credit agency | Up-front Payment Arrangement | Maximum | ||||||||
Long-Term Debt | ||||||||
Credit agency fees, percentage of loan amount payable | 2.37% | |||||||
$380.0 million unsecured term loan, LIBOR plus 1.75%, currently 2.17%, due through 2018 | ||||||||
Long-Term Debt | ||||||||
Margin on floating rate base (as a percent) | 1.75% | |||||||
Long term debt, principal amount | $ 380,000,000 | |||||||
Long term debt, current interest rate (as a percent) | 2.17% | 2.17% | ||||||
$380.0 million unsecured term loan, LIBOR plus 1.75%, currently 2.17%, due through 2018 | LIBOR | ||||||||
Long-Term Debt | ||||||||
Maximum borrowing capacity under credit agreement | 380,000,000 | |||||||
Margin on floating rate base (as a percent) | 1.75% | |||||||
€365 million unsecured term loan, EURIBOR plus 1.75%, currently 1.75%, due 2017 | ||||||||
Long-Term Debt | ||||||||
Margin on floating rate base (as a percent) | 1.75% | |||||||
Long term debt, principal amount | € | € 365,000,000 | |||||||
Long term debt, current interest rate (as a percent) | 1.75% | 1.75% | ||||||
€365 million unsecured term loan, EURIBOR plus 1.75%, currently 1.75%, due 2017 | EURIBOR | ||||||||
Long-Term Debt | ||||||||
Maximum borrowing capacity under credit agreement | € | € 365,000,000 | |||||||
Unsecured Term Loan LIBOR Plus 1 Point 75 Percent Due February 2018 | LIBOR | ||||||||
Long-Term Debt | ||||||||
Maximum borrowing capacity under credit agreement | 290,000,000 | |||||||
Oasis of the Seas Term Loan [Member] | ||||||||
Long-Term Debt | ||||||||
Unsecured Term Loan Maximum Borrowing Commintment Per Ship | $ 420,000,000 | |||||||
Oasis of the Seas Term Loan [Member] | LIBOR | ||||||||
Long-Term Debt | ||||||||
Margin on floating rate base (as a percent) | 1.85% | |||||||
$65.0 million unsecured term loan, LIBOR plus 1.75%, currently 2.17%, due through 2019 | ||||||||
Long-Term Debt | ||||||||
Margin on floating rate base (as a percent) | 1.75% | |||||||
Long term debt, principal amount | $ 65,000,000 | |||||||
Long term debt, current interest rate (as a percent) | 2.17% | 2.17% | ||||||
$65.0 million unsecured term loan, LIBOR plus 1.75%, currently 2.17%, due through 2019 | LIBOR | ||||||||
Long-Term Debt | ||||||||
Maximum borrowing capacity under credit agreement | $ 65,000,000 | |||||||
Subsequent event | Allure of the Seas term loan | LIBOR | ||||||||
Long-Term Debt | ||||||||
Margin on floating rate base (as a percent) | 1.65% | |||||||
Subsequent event | Oasis of the Seas Term Loan [Member] | LIBOR | ||||||||
Long-Term Debt | ||||||||
Margin on floating rate base (as a percent) | 1.65% |
Long-Term Debt (Debt Maturities
Long-Term Debt (Debt Maturities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Disclosure [Abstract] | ||
2,016 | $ 899,677 | |
2,017 | 938,036 | |
2,018 | 2,252,577 | |
2,019 | 609,901 | |
2,020 | 1,483,728 | |
Thereafter | 2,483,136 | |
Long Term Debt and Capital lease obligations | $ 8,667,055 | $ 8,443,948 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||
Feb. 18, 2016 | Oct. 23, 2015 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Oct. 01, 2015 | |
Shareholders' Equity | |||||||||||||||
Common Stock, Dividend Declared Prior Quarter Paid Current Quarter (in dollars per share) | $ 0.375 | $ 0.30 | $ 0.30 | $ 0.25 | |||||||||||
Treasury stock, shares acquired | 3.5 | ||||||||||||||
Treasury stock acquired, price per share | $ 67.45 | ||||||||||||||
Number of shares sold to a third party investor by the shareholder | 3.5 | ||||||||||||||
Total cost of treasury stock, acquired during the period | $ 200,000 | $ 236,074 | |||||||||||||
Document Fiscal Year Focus | 2,014 | ||||||||||||||
Common Stock Dividend Declared And Paid During The Same Period | $ 0.30 | 0.30 | $ 0.25 | 0.25 | |||||||||||
Common stock dividends declared (in dollars per share) | $ 0.375 | $ 0.375 | $ 0.3 | $ 0.3 | $ 0.3 | $ 0.3 | $ 0.25 | $ 0.25 | $ 0.25 | ||||||
October 2015 Stock Repurchase | |||||||||||||||
Shareholders' Equity | |||||||||||||||
Stock Repurchase Program, Authorized Amount | $ 500,000 | ||||||||||||||
Accelerated stock repurchase agreement October 23, 2015 | October 2015 Stock Repurchase | |||||||||||||||
Shareholders' Equity | |||||||||||||||
Stock Repurchase Program, Authorized Amount | $ 200,000 | ||||||||||||||
Accelerated Share Repurchases, Settlement (Payment) or Receipt | $ 200,000 | ||||||||||||||
Treasury stock, shares acquired | 1.6 | ||||||||||||||
Accelerated stock repurchase agreement October 23, 2015 | November 2015 Stock Repurchase | |||||||||||||||
Shareholders' Equity | |||||||||||||||
Treasury stock, shares acquired | 0.5 | ||||||||||||||
Accelerated stock repurchase agreement October 23, 2015 | Total stock repurchased during the period | |||||||||||||||
Shareholders' Equity | |||||||||||||||
Treasury stock, shares acquired | 2.1 | ||||||||||||||
Treasury stock acquired, price per share | $ 95.09 | ||||||||||||||
Subsequent event | |||||||||||||||
Shareholders' Equity | |||||||||||||||
Common Stock, Dividend Declared Prior Quarter Paid Current Quarter (in dollars per share) | $ 0.375 | ||||||||||||||
Subsequent event | October 2015 Stock Repurchase | |||||||||||||||
Shareholders' Equity | |||||||||||||||
Treasury stock, shares acquired | 2.1 | ||||||||||||||
Total cost of treasury stock, acquired during the period | $ 150,000 | ||||||||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 150,000 |
Stock-Based Employee Compensa55
Stock-Based Employee Compensation (Details) | 12 Months Ended | |||
Dec. 31, 2015plan$ / sharesshares | Dec. 31, 2014$ / sharesshares | Dec. 31, 2013$ / sharesshares | Feb. 01, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of stock-based compensation plans | plan | 2 | |||
Maximum number of award to be granted per individual | 500,000 | |||
Maximum aggregate number of shares available under the employee stock purchase plan | 506,322 | |||
Purchase price for each share of common stock as percentage of the average of the market price | 85.00% | |||
Shares of common stock issued under the ESPP plan | 28,724 | 26,921 | 27,036 | |
Weighted-average price of shares of common stock issued under the ESPP plan | $ / shares | $ 72.52 | $ 52.08 | $ 33.16 | |
Chief Executive Officer | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Quarterly issuance of common stock to Chief Executive Officer (shares) | 10,086 | 10,086 | ||
Annually issuance of common stock to Chief Executive Officer (shares) | 20,172 | 40,344 | ||
Lower Limit | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Vesting period for options and restricted stock | 4 years | |||
Upper Limit | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Maximum expiry period for options | 10 years | |||
Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Maximum actual number of shares underlying each performance share award as a percentage of target performance shares | 200.00% | 200.00% | ||
Number of target performance shares issued (Shares) | 161,479 | 63,771 | ||
Minimum actual number of shares underlying each performance share award as a percentage of target performance shares | 0.00% | |||
2008 Equity Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Maximum number of shares authorized for issuance under stock-based compensation plans | 11,000,000 | |||
Subsequent event | Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Actual payout as percentage of target for performance shares issued in period | 165.00% |
Stock-Based Employee Compensa56
Stock-Based Employee Compensation (Expense Recognized) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | |||
Employee stock-base compensation expense | $ 36,073 | $ 26,116 | $ 21,178 |
Marketing, selling and administrative expenses | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | |||
Employee stock-base compensation expense | $ 36,073 | $ 26,116 | $ 21,178 |
Stock-Based Employee Compensa57
Stock-Based Employee Compensation (Options Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Number of Options | |||
Outstanding at January 1, 2015 (Options) | 706,051 | ||
Granted (Options) | 0 | ||
Exercised (Options) | (287,379) | ||
Canceled (Options) | (6,863) | ||
Outstanding at December 31, 2015 (Options) | 411,809 | 706,051 | |
Vested and expected to vest at December 31, 2015 (Options) | 411,807 | ||
Options Exercisable at December 31, 2015 (Options) | 409,915 | ||
Weighted-Average Exercise Price | |||
Outstanding at January 1, 2015 (Price per Share) | $ 36.03 | ||
Granted (Price per Share) | 0 | ||
Exercised (Price per Share) | 39.12 | ||
Canceled (Price per Share) | 47.05 | ||
Outstanding at December 31, 2015 (Price per Share) | 33.69 | $ 36.03 | |
Vested and expected to vest at December 31, 2015 (Price per Share) | 33.69 | ||
Options Exercisable at December 31, 2015 (Price per Share) | $ 33.73 | ||
Weighted-Average Remaining Contractual Term | |||
Outstanding at January 1, 2015 (Years) | 3 years 1 month 12 days | 3 years 7 months 21 days | |
Outstanding at December 31, 2015 (Years) | 3 years 1 month 12 days | 3 years 7 months 21 days | |
Vested and expected to vest at December 31, 2015 (Years) | 3 years 1 month 12 days | ||
Options Exercisable at December 31, 2015 (Years) | 3 years 1 month 11 days | ||
Aggregate Intrinsic Value | |||
Outstanding at January 1, 2015 | $ 33,182 | ||
Outstanding at December 31, 2015 | 28,111 | $ 33,182 | |
Vested and expected to vest at December 31, 2015 | 28,110 | ||
Options Exercisable at December 31, 2015 | 27,967 | ||
Total intrinsic value of stock options exercised | $ 13,800 | $ 35,900 | $ 17,500 |
Stock Option | |||
Aggregate Intrinsic Value | |||
Weighted-average period of unrecognized compensation cost to be recognized (Years) | 5 days |
Stock-Based Employee Compensa58
Stock-Based Employee Compensation (Other Equity) (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2013USD ($)$ / shares | |
Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock-based awards conversion ratio | 1 | ||
Number of Awards | |||
Non-vested share units at January 1, 2015 (Share Units) | shares | 981,553 | ||
Granted (Share Units) | shares | 298,998 | ||
Vested (Share Units) | shares | (361,843) | ||
Canceled (Share Units) | shares | (98,059) | ||
Non-vested share units expected to vest as of December 31, 2015 (Share Units) | shares | 820,649 | 981,553 | |
Weighted-Average Grant Date Fair Value | |||
Non-vested share units at January 1, 2015 (Price per Share) | $ 42.68 | ||
Granted (Price per Share) | 73.98 | $ 54.60 | $ 36.07 |
Vested (Price per Share) | 40.04 | ||
Canceled (Price per Share) | 45.07 | ||
Non-vested share units expected to vest as of December 31, 2015 (Price per Share) | 54.98 | 42.68 | |
Weighted-average estimated fair value of restricted stock units granted (Price per Share) | $ 73.98 | $ 54.60 | $ 36.07 |
Fair value of shares released on vesting of restricted stock units | $ | $ 27.6 | $ 20.7 | $ 19.2 |
Total unrecognized compensation cost | $ | $ 14.4 | ||
Weighted-average period of unrecognized compensation cost to be recognized (Years) | 1 year 1 month 18 days | ||
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock-based awards conversion ratio | 1 | ||
Number of Awards | |||
Non-vested share units at January 1, 2015 (Share Units) | shares | 658,886 | ||
Granted (Share Units) | shares | 161,479 | 63,771 | |
Vested (Share Units) | shares | (241,288) | ||
Canceled (Share Units) | shares | (74,866) | ||
Non-vested share units expected to vest as of December 31, 2015 (Share Units) | shares | 504,211 | 658,886 | |
Weighted-Average Grant Date Fair Value | |||
Non-vested share units at January 1, 2015 (Price per Share) | $ 40.21 | ||
Granted (Price per Share) | 71.36 | $ 56.72 | $ 35.98 |
Vested (Price per Share) | 33.94 | ||
Canceled (Price per Share) | 37.59 | ||
Non-vested share units expected to vest as of December 31, 2015 (Price per Share) | 53.57 | 40.21 | |
Weighted-average estimated fair value of restricted stock units granted (Price per Share) | $ 71.36 | $ 56.72 | $ 35.98 |
Fair value of shares released on vesting of restricted stock units | $ | $ 18.3 | $ 0.4 | $ 0.1 |
Total unrecognized compensation cost | $ | $ 11.4 | ||
Weighted-average period of unrecognized compensation cost to be recognized (Years) | 9 months 23 days |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share [Abstract] | |||||||||||
Net income for basic and diluted earnings per share | $ 206,799 | $ 228,787 | $ 184,967 | $ 45,230 | $ 109,768 | $ 490,248 | $ 137,673 | $ 26,457 | $ 665,783 | $ 764,146 | $ 473,692 |
Weighted-average common shares outstanding (in shares) | 219,537 | 221,658 | 219,638 | ||||||||
Dilutive effect of stock options, performance stock awards and restricted stock awards (in shares) | 1,152 | 1,386 | 1,303 | ||||||||
Diluted weighted-average shares outstanding | 220,689 | 223,044 | 220,941 | ||||||||
Basic earnings per share (in dollars per share) | $ 0.95 | $ 1.04 | $ 0.84 | $ 0.21 | $ 0.50 | $ 2.20 | $ 0.62 | $ 0.12 | $ 3.03 | $ 3.45 | $ 2.16 |
Diluted earnings per share (in dollars per share) | $ 0.94 | $ 1.03 | $ 0.84 | $ 0.20 | $ 0.49 | $ 2.19 | $ 0.62 | $ 0.12 | $ 3.02 | $ 3.43 | $ 2.14 |
Earnings Per Share (Antidilutiv
Earnings Per Share (Antidilutive Shares) (Details) shares in Millions | 12 Months Ended |
Dec. 31, 2013shares | |
Options and performance shares | |
Antidilutive securities excluded from computation of earnings per share | |
Shares not included in diluted earnings per share | 1.9 |
Retirement Plan (Details)
Retirement Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | |||
Pension expenses | $ 16.8 | $ 15.4 | $ 13 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes | ||||||
Operating Loss Carryforwards | $ 309.7 | |||||
Pullmantur | ||||||
Income Taxes | ||||||
Valuation allowance adjustment, deferred tax expense (benefit) | $ (33.5) | |||||
Deferred Income Tax Expense (Benefit) | $ (12) | |||||
Adjustment of valuation allowance (as a percent) | 70.00% | 70.00% | ||||
Pullmantur | Tax benefit due to change in Spanish Tax Reform | ||||||
Income Taxes | ||||||
Valuation allowance adjustment, deferred tax expense (benefit) | $ (33.5) | $ (33.5) | ||||
Deferred Income Tax Expense (Benefit) | (10) | |||||
Pullmantur | Trademarks and trade names | ||||||
Income Taxes | ||||||
Valuation allowance required as per projections (as a percent) | 100.00% | |||||
Valuation allowance adjustment, deferred tax expense (benefit) | $ 31.4 | |||||
Deferred Tax Liabilities, Intangible Assets | $ 43.4 | 43.4 | ||||
Deferred Income Tax Expense (Benefit) | $ (12) | |||||
Other income (expense) | ||||||
Income Taxes | ||||||
Income tax expense (benefit) | 11.1 | $ (20.9) | $ 24.9 | |||
Tax year 2014 | Pullmantur | ||||||
Income Taxes | ||||||
Corporate income tax rate | 30.00% | |||||
Operating loss carryforward (period) | 18 years | |||||
Annual limitation of taxable income for NOL carryforward (as a percent) | 25.00% | |||||
Tax year 2015 | Pullmantur | ||||||
Income Taxes | ||||||
Corporate income tax rate | 28.00% | |||||
Annual limitation of taxable income for NOL carryforward (as a percent) | 70.00% | |||||
Tax year 2016 | Pullmantur | ||||||
Income Taxes | ||||||
Corporate income tax rate | 25.00% | |||||
Tax years between 2016 and 2028 | ||||||
Income Taxes | ||||||
Operating Loss Carryforwards | 50 | |||||
Tax period-Indefinite | ||||||
Income Taxes | ||||||
Operating Loss Carryforwards | $ 259.7 |
Changes in Accumulated Other 63
Changes in Accumulated Other Comprehensive Income (Loss) (Changes by Component)(Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Accumulated comprehensive loss at beginning of period | $ (896,994) | $ 5,671 | $ (134,516) |
Other comprehensive loss before reclassifications | (720,570) | (956,130) | 197,842 |
Amounts reclassified from accumulated other comprehensive income (loss) | 289,131 | 53,465 | (57,655) |
Total other comprehensive (loss) income | (431,439) | (902,665) | 140,187 |
Accumulated comprehensive loss at end of period | (1,328,433) | (896,994) | 5,671 |
Changes related to cash flow derivative hedges | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Accumulated comprehensive loss at beginning of period | (826,026) | 43,324 | (84,505) |
Other comprehensive loss before reclassifications | (697,671) | (919,094) | 188,073 |
Amounts reclassified from accumulated other comprehensive income (loss) | 291,624 | 49,744 | (60,244) |
Total other comprehensive (loss) income | (406,047) | (869,350) | 127,829 |
Accumulated comprehensive loss at end of period | (1,232,073) | (826,026) | 43,324 |
Changes in defined benefit plans | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Accumulated comprehensive loss at beginning of period | (31,207) | (23,994) | (34,823) |
Other comprehensive loss before reclassifications | 3,053 | (8,937) | 8,240 |
Amounts reclassified from accumulated other comprehensive income (loss) | 1,707 | 1,724 | 2,589 |
Total other comprehensive (loss) income | 4,760 | (7,213) | 10,829 |
Accumulated comprehensive loss at end of period | (26,447) | (31,207) | (23,994) |
Foreign currency translation adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Accumulated comprehensive loss at beginning of period | (39,761) | (13,659) | (15,188) |
Other comprehensive loss before reclassifications | (25,952) | (28,099) | 1,529 |
Amounts reclassified from accumulated other comprehensive income (loss) | (4,200) | 1,997 | 0 |
Total other comprehensive (loss) income | (30,152) | (26,102) | 1,529 |
Accumulated comprehensive loss at end of period | $ (69,913) | $ (39,761) | $ (13,659) |
Changes in Accumulated Other 64
Changes in Accumulated Other Comprehensive Income (Loss) (Reclassifications) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Other income (expense) | $ 209,119 | $ 177,713 | $ 324,456 | ||||||||
Interest expense, net of interest capitalized | (277,725) | (258,299) | (332,422) | ||||||||
Depreciation and amortization expenses | (827,008) | (772,445) | (754,711) | ||||||||
Fuel | (795,801) | (947,391) | (924,414) | ||||||||
Net income | $ 206,799 | $ 228,787 | $ 184,967 | $ 45,230 | $ 109,768 | $ 490,248 | $ 137,673 | $ 26,457 | 665,783 | 764,146 | 473,692 |
Reclassification out of accumulated other comprehensive income (loss) | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net income | (289,131) | (53,465) | 57,655 | ||||||||
Reclassification out of accumulated other comprehensive income (loss) | (Loss) gain on cash flow derivative hedges: | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net income | (291,624) | (49,744) | 60,244 | ||||||||
Reclassification out of accumulated other comprehensive income (loss) | (Loss) gain on cash flow derivative hedges: | Cross currency swaps | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Interest expense, net of interest capitalized | 0 | (261) | (3,531) | ||||||||
Reclassification out of accumulated other comprehensive income (loss) | (Loss) gain on cash flow derivative hedges: | Foreign currency forward contracts | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Other income (expense) | 7,580 | (4,291) | 27,423 | ||||||||
Interest expense, net of interest capitalized | 0 | (57) | (440) | ||||||||
Depreciation and amortization expenses | (2,871) | (1,887) | (1,797) | ||||||||
Reclassification out of accumulated other comprehensive income (loss) | (Loss) gain on cash flow derivative hedges: | Interest rate swaps | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Interest expense, net of interest capitalized | (36,401) | (15,264) | (9,355) | ||||||||
Reclassification out of accumulated other comprehensive income (loss) | (Loss) gain on cash flow derivative hedges: | Fuel contracts | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Other income (expense) | (9,583) | 0 | 0 | ||||||||
Fuel | (248,744) | (27,984) | 47,944 | ||||||||
Reclassification out of accumulated other comprehensive income (loss) | (Loss) gain on cash flow derivative hedges: | Collars | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Depreciation and amortization expenses | (1,605) | 0 | 0 | ||||||||
Reclassification out of accumulated other comprehensive income (loss) | Amortization of defined benefit plans: | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Actuarial loss | (1,414) | (888) | (1,753) | ||||||||
Prior service costs | (293) | (836) | (836) | ||||||||
Net income | (1,707) | (1,724) | (2,589) | ||||||||
Reclassification out of accumulated other comprehensive income (loss) | Foreign currency translation adjustments | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Other income (expense) | $ (4,200) | $ (1,997) | $ 0 |
Fair Value Measurements and D65
Fair Value Measurements and Derivative Instruments (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Level 1 | ||
Assets: | ||
Cash and cash equivalents | $ 121,565 | $ 189,241 |
Total Assets | 121,565 | 189,241 |
Liabilities: | ||
Long-term debt (including current portion of long-term debt) | 1,536,629 | 1,859,361 |
Total Liabilities | 1,536,629 | 1,859,361 |
Level 2 | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Total Assets | 0 | 0 |
Liabilities: | ||
Long-term debt (including current portion of long-term debt) | 7,358,380 | 6,902,053 |
Total Liabilities | 7,358,380 | 6,902,053 |
Level 3 | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Total Assets | 0 | 0 |
Liabilities: | ||
Long-term debt (including current portion of long-term debt) | 0 | 0 |
Total Liabilities | 0 | 0 |
Total Carrying Amount | ||
Assets: | ||
Cash and cash equivalents | 121,565 | 189,241 |
Total Assets | 121,565 | 189,241 |
Liabilities: | ||
Long-term debt (including current portion of long-term debt) | 8,618,285 | 8,391,301 |
Total Liabilities | 8,618,285 | 8,391,301 |
Total Fair Value | ||
Assets: | ||
Cash and cash equivalents | 121,565 | 189,241 |
Total Assets | 121,565 | 189,241 |
Liabilities: | ||
Long-term debt (including current portion of long-term debt) | 8,895,009 | 8,761,414 |
Total Liabilities | $ 8,895,009 | $ 8,761,414 |
Fair Value Measurements and D66
Fair Value Measurements and Derivative Instruments (Recurring) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Assets: | ||
Derivative financial instruments | $ 4,759 | $ 0 |
Liabilities: | ||
Derivative financial instruments | 914,477 | 703,654 |
Fair Value, Measurements, Recurring | Total Fair Value | ||
Assets: | ||
Derivative financial instruments | 134,574 | 63,981 |
Investments | 3,965 | 5,531 |
Total Assets | 138,539 | 69,512 |
Liabilities: | ||
Derivative financial instruments | 1,044,292 | 767,635 |
Total Liabilities | 1,044,292 | 767,635 |
Fair Value, Measurements, Recurring | Level 1 | ||
Assets: | ||
Derivative financial instruments | 0 | 0 |
Investments | 3,965 | 5,531 |
Total Assets | 3,965 | 5,531 |
Liabilities: | ||
Derivative financial instruments | 0 | 0 |
Total Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | ||
Assets: | ||
Derivative financial instruments | 134,574 | 63,981 |
Investments | 0 | 0 |
Total Assets | 134,574 | 63,981 |
Liabilities: | ||
Derivative financial instruments | 1,044,292 | 767,635 |
Total Liabilities | 1,044,292 | 767,635 |
Fair Value, Measurements, Recurring | Level 3 | ||
Assets: | ||
Derivative financial instruments | 0 | 0 |
Investments | 0 | 0 |
Total Assets | 0 | 0 |
Liabilities: | ||
Derivative financial instruments | 0 | 0 |
Total Liabilities | $ 0 | $ 0 |
Fair Value Measurements and D67
Fair Value Measurements and Derivative Instruments (Intangible and Long-lived Assets) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Asset Impairment Charges [Abstract] | |||
Total, Total Impairment | $ 411,267 | ||
Fair Value, Measurements, Nonrecurring | Level 3 | |||
Assets and liabilities measured on a recurring basis | |||
Total Assets | 0 | $ 0 | |
Total Carrying Amount | Fair Value, Measurements, Nonrecurring | |||
Assets and liabilities measured on a recurring basis | |||
Total Assets | 121,565 | 189,241 | |
Total Fair Value | Fair Value, Measurements, Nonrecurring | |||
Assets and liabilities measured on a recurring basis | |||
Total Assets | 121,565 | $ 189,241 | |
Pullmantur | |||
Asset Impairment Charges [Abstract] | |||
Pullmantur Goodwill, Total Impairment | 123,814 | ||
Indefinite-life intangible asset-Pullmantur trademarks and trade names, Total Impairment | 174,285 | ||
Long-lived assets-Pullmantur aircraft and vessels, Total Impairment | 113,168 | ||
Total, Total Impairment | 411,267 | ||
Pullmantur | Goodwill | |||
Fair Value Inputs [Abstract] | |||
Discount rate | 11.00% | ||
Pullmantur | Intangible Assets | |||
Fair Value Inputs [Abstract] | |||
Discount rate | 11.50% | ||
Pullmantur | Fair Value, Measurements, Nonrecurring | Level 3 | |||
Assets and liabilities measured on a recurring basis | |||
Pullmantur Goodwill | 0 | ||
Indefinite-life intangible assets-Pullmantur trademarks and trade names | 0 | ||
Long-lived assets-Pullmantur aircraft and vessels | 140,846 | ||
Total Assets | 140,846 | ||
Pullmantur | Total Carrying Amount | Fair Value, Measurements, Nonrecurring | |||
Assets and liabilities measured on a recurring basis | |||
Pullmantur Goodwill | 0 | ||
Indefinite-life intangible assets-Pullmantur trademarks and trade names | 0 | ||
Long-lived assets-Pullmantur aircraft and vessels | 140,846 | ||
Total Assets | 140,846 | ||
Pullmantur | Total Fair Value | Fair Value, Measurements, Nonrecurring | |||
Assets and liabilities measured on a recurring basis | |||
Pullmantur Goodwill | 0 | ||
Indefinite-life intangible assets-Pullmantur trademarks and trade names | 0 | ||
Long-lived assets-Pullmantur aircraft and vessels | 140,846 | ||
Total Assets | $ 140,846 |
Fair Value Measurements and D68
Fair Value Measurements and Derivative Instruments (Offsetting of Derivative Instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Offsetting of Financial Liabilities under Master Netting Agreements [Abstract] | ||
Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheet | $ (1,044,292) | $ (767,635) |
Gross Amount of Eligible Offsetting Recognized Derivative Assets | 129,815 | 63,981 |
Net Amount of Derivative Liabilities | (914,477) | (703,654) |
Offsetting of Financial Assets under Master Netting Agreements [Abstract] | ||
Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheet | 134,574 | 63,981 |
Gross Amount of Eligible Offsetting Recognized Derivative Liabilities | (129,815) | (63,981) |
Net Amount of Derivative Assets | $ 4,759 | $ 0 |
Fair Value Measurements and D69
Fair Value Measurements and Derivative Instruments (Interest Rate Risk) (Details) € in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2015EUR (€) | Dec. 31, 2014USD ($) | |
Derivative instruments disclosure | |||
Document Fiscal Year Focus | 2,014 | ||
Percentage of long-term debt with fixed interest rate | 31.20% | 31.20% | 28.50% |
Interest rate swaps | |||
Derivative instruments disclosure | |||
Notional amount of derivative | $ 4,300,000,000 | $ 2,900,000,000 | |
Interest rate swaps | Fair Value Hedging | 5.41% Fixed rate debt | |||
Derivative instruments disclosure | |||
Unsecured term loan, face amount | 420,000,000 | 420,000,000 | |
Interest rate swaps | Fair Value Hedging | 5.25% Fixed rate debt | |||
Derivative instruments disclosure | |||
Unsecured term loan, face amount | $ 650,000,000 | ||
Interest rate on hedged debt (as a percent) | 5.25% | 5.25% | |
Derivative variable rate of interest (as a percent) | 3.99% | 3.99% | |
Interest rate swaps | Fair Value Hedging | Oasis of the Seas facility | |||
Derivative instruments disclosure | |||
Interest rate on hedged debt (as a percent) | 5.41% | 5.41% | |
Derivative variable rate of interest (as a percent) | 4.40% | 4.40% | |
Unsecured term loan, carrying value | $ 210,000,000 | ||
Interest rate swaps | Cash flow hedge | Quantum of the Seas facility | |||
Derivative instruments disclosure | |||
Fixed rate on converted debt (as a percent) | 3.74% | 3.74% | |
Unsecured term loan, carrying value | $ 673,800,000 | ||
Interest rate swaps | Cash flow hedge | Anthem of the Seas facility | |||
Derivative instruments disclosure | |||
Fixed rate on converted debt (as a percent) | 3.86% | 3.86% | |
Unsecured term loan, carrying value | $ 694,800,000 | ||
Interest rate swaps | Cash flow hedge | Celebrity Reflection floating rate debt | |||
Derivative instruments disclosure | |||
Fixed rate on converted debt (as a percent) | 2.85% | 2.85% | |
Unsecured term loan, carrying value | $ 490,900,000 | ||
Interest rate swaps | Cash flow hedge | Harmony of the Seas facility | |||
Derivative instruments disclosure | |||
Anticipated loan balance | $ 753,700,000 | € 693.4 | |
Fixed rate on converted debt (as a percent) | 2.26% | 2.26% | |
Interest rate swaps | Cash flow hedge | Ovation of the Seas facility | |||
Derivative instruments disclosure | |||
Anticipated loan balance | $ 830,000,000 | ||
Fixed rate on converted debt (as a percent) | 3.16% | 3.16% | |
Foreign exchange contracts | |||
Derivative instruments disclosure | |||
Notional amount of derivative | $ 2,400,000,000 | $ 3,000,000,000 | |
LIBOR | Anthem of the Seas facility | |||
Derivative instruments disclosure | |||
Additional interest above LIBOR rate (as a percent) | 1.30% | ||
LIBOR | Interest rate swaps | Fair Value Hedging | 5.25% Fixed rate debt | |||
Derivative instruments disclosure | |||
Additional interest above LIBOR rate (as a percent) | 3.63% | 3.63% | |
LIBOR | Interest rate swaps | Fair Value Hedging | Oasis of the Seas facility | |||
Derivative instruments disclosure | |||
Additional interest above LIBOR rate (as a percent) | 3.87% | 3.87% | |
LIBOR | Interest rate swaps | Cash flow hedge | Quantum of the Seas facility | |||
Derivative instruments disclosure | |||
Additional interest above LIBOR rate (as a percent) | 1.30% | ||
LIBOR | Interest rate swaps | Cash flow hedge | Anthem of the Seas facility | |||
Derivative instruments disclosure | |||
Additional interest above LIBOR rate (as a percent) | 1.30% | ||
LIBOR | Interest rate swaps | Cash flow hedge | Celebrity Reflection floating rate debt | |||
Derivative instruments disclosure | |||
Additional interest above LIBOR rate (as a percent) | 0.40% | ||
LIBOR | Interest rate swaps | Cash flow hedge | Ovation of the Seas facility | |||
Derivative instruments disclosure | |||
Additional interest above LIBOR rate (as a percent) | 1.00% | ||
EURIBOR | Interest rate swaps | Cash flow hedge | Harmony of the Seas facility | |||
Derivative instruments disclosure | |||
Additional interest above LIBOR rate (as a percent) | 1.15% |
Fair Value Measurements and D70
Fair Value Measurements and Derivative Instruments (Derivative Instruments) (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2015EUR (€) | |
Derivative instruments disclosure | ||||
Aggregate cost of ships on order | $ 7,800 | |||
Amount deposited for cost of ships on order | $ 546.5 | |||
Percentage of aggregate cost exposed to fluctuations in the euro exchange rate | 58.20% | 28.80% | 58.20% | |
Exchange gains (losses) recorded in other income (expense) | $ 34.6 | $ 49.5 | $ 13.4 | |
Foreign currency forward | Not Designated | ||||
Derivative instruments disclosure | ||||
Notional amount | 514.4 | |||
Change in fair value of foreign currency forward contracts recognized in earnings | (55.5) | (48.6) | (19.3) | |
Exchange gains (losses) recorded in other income (expense) | 34.6 | 49.5 | $ 13.4 | |
Foreign exchange contracts | ||||
Derivative instruments disclosure | ||||
Notional amount | 2,400 | $ 3,000 | ||
Forward Contracts | Designated as Hedging Instrument | Pullmantur and TUI Cruises | ||||
Derivative instruments disclosure | ||||
Notional amount | $ 328.3 | € 302,000,000 | ||
$742.1 million unsecured senior notes, LIBOR plus 1.30%, currently 1.83%, due through 2027 | ||||
Derivative instruments disclosure | ||||
Unsecured term loan, face amount | € | € 742,100,000 |
Fair Value Measurements and D71
Fair Value Measurements and Derivative Instruments (Non-Derivative Instruments) (Details) - Foreign currency debt $ in Thousands, € in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2014EUR (€) | |
Net investment hedge | |||
Carrying Value of Non-derivative instrument Designated as hedging instrument | $ 0 | $ 168,718 | |
Long-term debt | |||
Net investment hedge | |||
Carrying Value of Non-derivative instrument Designated as hedging instrument | $ 0 | 168,718 | |
Pullmantur and TUI Cruises | |||
Net investment hedge | |||
Carrying Value of Non-derivative instrument Designated as hedging instrument | $ 168,700 | € 139.4 |
Fair Value Measurements and D72
Fair Value Measurements and Derivative Instruments (Fuel Price Risk) (Details) - Fuel Price Risk - Fuel Swaps $ in Millions | Dec. 31, 2015USD ($)T | Dec. 31, 2014USD ($)T |
Derivative instruments disclosure | ||
Estimated unrealized net gains associated with cash flow hedges pertaining to fuel swap agreements expected to be reclassified to earnings from other accumulated comprehensive income (loss) | $ | $ (321) | $ (223.1) |
2,015 | ||
Derivative instruments disclosure | ||
Fuel Swap Agreements (metric tons) | 0 | 806,000 |
Percentage of projected requirements | 0.00% | 58.00% |
2,016 | ||
Derivative instruments disclosure | ||
Fuel Swap Agreements (metric tons) | 930,000 | 802,000 |
Percentage of projected requirements | 65.00% | 55.00% |
2,017 | ||
Derivative instruments disclosure | ||
Fuel Swap Agreements (metric tons) | 854,000 | 525,000 |
Percentage of projected requirements | 59.00% | 35.00% |
2,018 | ||
Derivative instruments disclosure | ||
Fuel Swap Agreements (metric tons) | 583,000 | 226,000 |
Percentage of projected requirements | 40.00% | 15.00% |
2,019 | ||
Derivative instruments disclosure | ||
Fuel Swap Agreements (metric tons) | 231,000 | 0 |
Percentage of projected requirements | 15.00% | 0.00% |
Fair Value Measurements and D73
Fair Value Measurements and Derivative Instruments (Balance Sheet) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Asset Derivatives | ||
Asset Derivatives | $ 134,574 | $ 63,981 |
Liability Derivatives | ||
Liability Derivatives | 1,044,292 | 767,635 |
Designated as Hedging Instrument | ||
Asset Derivatives | ||
Asset Derivatives | 93,996 | 63,981 |
Liability Derivatives | ||
Liability Derivatives | 1,020,774 | 767,635 |
Designated as Hedging Instrument | Collars | Derivative Financial Instruments | ||
Liability Derivatives | ||
Liability Derivatives | 0 | 21,855 |
Not Designated as Hedging Instrument | ||
Asset Derivatives | ||
Asset Derivatives | 40,578 | 0 |
Liability Derivatives | ||
Liability Derivatives | 23,518 | 0 |
Interest rate swaps | Designated as Hedging Instrument | Other Assets | ||
Asset Derivatives | ||
Asset Derivatives | 0 | 0 |
Interest rate swaps | Designated as Hedging Instrument | Other long-term Liabilities | ||
Liability Derivatives | ||
Liability Derivatives | 67,371 | 65,768 |
Foreign currency forward contracts | Designated as Hedging Instrument | Other Assets | ||
Asset Derivatives | ||
Asset Derivatives | 0 | 63,981 |
Foreign currency forward contracts | Designated as Hedging Instrument | Derivative Financial Instruments | ||
Asset Derivatives | ||
Asset Derivatives | 93,996 | 0 |
Liability Derivatives | ||
Liability Derivatives | 320,873 | 17,619 |
Foreign currency forward contracts | Designated as Hedging Instrument | Other long-term Liabilities | ||
Liability Derivatives | ||
Liability Derivatives | 0 | 164,627 |
Foreign currency forward contracts | Not Designated as Hedging Instrument | ||
Liability Derivatives | ||
Liability Derivatives | 0 | 0 |
Foreign currency forward contracts | Not Designated as Hedging Instrument | Derivative Financial Instruments | ||
Asset Derivatives | ||
Asset Derivatives | 32,339 | 0 |
Fuel contracts | Designated as Hedging Instrument | Fuel Swaps | Other Assets | ||
Asset Derivatives | ||
Asset Derivatives | 0 | 0 |
Fuel contracts | Designated as Hedging Instrument | Fuel Swaps | Derivative Financial Instruments | ||
Asset Derivatives | ||
Asset Derivatives | 0 | 0 |
Liability Derivatives | ||
Liability Derivatives | 307,475 | 227,512 |
Fuel contracts | Designated as Hedging Instrument | Fuel Swaps | Other long-term Liabilities | ||
Liability Derivatives | ||
Liability Derivatives | 325,055 | 270,254 |
Fuel contracts | Not Designated as Hedging Instrument | Fuel Swaps | Derivative Financial Instruments | ||
Asset Derivatives | ||
Asset Derivatives | 8,239 | 0 |
Liability Derivatives | ||
Liability Derivatives | $ 23,518 | $ 0 |
Fair Value Measurements and D74
Fair Value Measurements and Derivative Instruments (Income Statement Hedging Instruments) (Details) - Fair Value Hedging - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Recognized in Income on Derivative | $ 22,055 | $ 54,747 |
Amount of Gain (Loss) Recognized in Income on Hedged Item | 8,210 | (16,901) |
Interest rate swaps | Interest expense, net of interest capitalized | ||
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Recognized in Income on Derivative | 11,276 | 12,217 |
Amount of Gain (Loss) Recognized in Income on Hedged Item | 15,743 | 17,403 |
Interest rate swaps | Other income (expense) | ||
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Recognized in Income on Derivative | 10,779 | 42,530 |
Amount of Gain (Loss) Recognized in Income on Hedged Item | $ (7,533) | $ (34,304) |
Fair Value Measurements and D75
Fair Value Measurements and Derivative Instruments (Designated Cash Flow Hedges) (Details) - Cash flow hedge - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | $ (697,671) | $ (919,095) |
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | (291,624) | (49,744) |
Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness testing) | (449) | (15,069) |
Cross currency swaps | ||
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | 0 | 0 |
Cross currency swaps | Other income (expense) | ||
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness testing) | 0 | 0 |
Cross currency swaps | Interest Expense | ||
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 0 | (261) |
Interest rate swaps | ||
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | (52,602) | (113,116) |
Interest rate swaps | Other income (expense) | ||
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness testing) | 38 | (99) |
Interest rate swaps | Interest Expense | ||
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | (36,401) | (15,264) |
Foreign currency forward contracts | ||
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | (141,470) | (246,627) |
Foreign currency forward contracts | Other income (expense) | ||
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 7,580 | (4,291) |
Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness testing) | 0 | (34) |
Foreign currency forward contracts | Interest Expense | ||
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | (57) | |
Foreign currency forward contracts | Depreciation and amortization expenses | ||
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | (2,871) | (1,887) |
Foreign currency collar options | ||
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | (64,559) | (44,028) |
Foreign currency collar options | Depreciation and amortization expenses | ||
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | (1,605) | 0 |
Fuel Swaps | ||
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | (439,040) | (515,324) |
Fuel Swaps | Other income (expense) | ||
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | (9,583) | 0 |
Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness testing) | (487) | (14,936) |
Fuel Swaps | Fuel cost | ||
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | $ (248,744) | $ (27,984) |
Fair Value Measurements and D76
Fair Value Measurements and Derivative Instruments (Non-Derivative Net Investment) (Details) - Foreign currency debt - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Net investment hedge | ||
Amount of Gain (Loss) Recognized in OCI (Effective Portion) | $ 8,955 | $ 25,382 |
Amount of Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | 0 |
Other income (expense) | ||
Net investment hedge | ||
Amount of Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | $ 0 | $ 0 |
Fair Value Measurements and D77
Fair Value Measurements and Derivative Instruments (Derivatives Not Designated as Hedging Instruments) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative instruments disclosure | ||
Amount of Gain (Loss) Recognized in Income on Derivative | $ (55,664) | $ (50,586) |
Foreign exchange contracts | Other income (expense) | ||
Derivative instruments disclosure | ||
Amount of Gain (Loss) Recognized in Income on Derivative | (55,489) | (48,791) |
Fuel contracts | Fuel swaps | Other income (expense) | ||
Derivative instruments disclosure | ||
Amount of Gain (Loss) Recognized in Income on Derivative | $ (175) | $ (1,795) |
Fair Value Measurements and D78
Fair Value Measurements and Derivative Instruments (Credit Features) (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2015USD ($)derivative | Dec. 31, 2014USD ($) | |
Maturity of at least five years | Lower Limit | ||
Derivative instruments disclosure | ||
Interest rate instrument term | 5 years | |
Interest rate contracts | ||
Derivative instruments disclosure | ||
Number of derivative instruments | derivative | 7 | |
Aggregate fair value of all derivative instruments with credit-related contingent features in net liability positions | $ | $ 67.4 | $ 65.8 |
Standard & Poor's, BBB- Rating | Lower Limit | ||
Derivative instruments disclosure | ||
Credit ratings for senior debt | BBB- | |
Standard & Poor's, BB Rating | ||
Derivative instruments disclosure | ||
Credit ratings for senior debt | BB+ | |
Moody's, Ba1 Rating | ||
Derivative instruments disclosure | ||
Credit ratings for senior debt | Ba1 | |
Moody's, Baa3 Rating | ||
Derivative instruments disclosure | ||
Credit ratings for senior debt | Baa3 |
Commitments and Contingencies79
Commitments and Contingencies (Details) € in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)shipcrew_memberberth | Dec. 31, 2014EUR (€)berth | Dec. 31, 2015EUR (€)shipberth | |
Commitments and Contingencies | |||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2,014 | ||
Aggregate cost of ships expected to enter service | $ | $ 7,800 | ||
Deposit for the purchase of ships expected to enter service | $ | $ 546.5 | ||
Percentage of aggregate cost exposed to fluctuations in the euro exchange rate | 58.20% | 28.80% | 58.20% |
Oasis class ship term loans | Oasis-third class ship | |||
Commitments and Contingencies | |||
Unsecured term loan, construction financing commitment per ship | € | € 892.2 | € 713.8 | |
Percentage of unsecured term loan guaranteed by an export credit agency | 100.00% | ||
Unsecured term loan, amortization period | 12 years | ||
Long term debt, stated interest rate (as a percent) | 2.53% | 2.53% | |
Oasis class ship term loans | Oasis-fourth class ship | |||
Commitments and Contingencies | |||
Bank financing commitment percentage | 80.00% | ||
Percentage of unsecured term loan guaranteed by an export credit agency | 100.00% | ||
Unsecured term loan, amortization period | 12 years | ||
Long term debt, stated interest rate (as a percent) | 3.82% | 3.82% | |
Unsecured term loan maturing twelve years after ship delivery | Oasis-third class ship | |||
Commitments and Contingencies | |||
Unsecured term loan, construction financing commitment per ship | $ 193.9 | € 178.4 | |
Unsecured term loan maturing twelve years after ship delivery | Oasis-fourth class ship | |||
Commitments and Contingencies | |||
Unsecured term loan, construction financing commitment per ship | $ 1,000 | € 931.2 | |
Project Edge Class Ship Term Loans | Project edge-class ship | |||
Commitments and Contingencies | |||
Bank financing commitment percentage | 80.00% | 80.00% | |
Percentage of unsecured term loan guaranteed by an export credit agency | 100.00% | ||
Quantum of the Seas term loan | Quantum-class ship | |||
Commitments and Contingencies | |||
Bank financing commitment percentage | 80.00% | 80.00% | |
Percentage of unsecured term loan guaranteed by an export credit agency | 95.00% | ||
LIBOR | Oasis class ship term loans | Oasis-third class ship | |||
Commitments and Contingencies | |||
Margin on floating rate base (as a percent) | 1.20% | ||
Celebrity Cruise Ships | Project edge-class ship | |||
Commitments and Contingencies | |||
Approximate Berths | 2,900 | 2,900 | |
Celebrity Cruise Ships | Two Project Edge Class Ships | |||
Commitments and Contingencies | |||
Approximate Berths | 5,800 | 5,800 | |
Royal Caribbean International | Quantum-class ship | |||
Commitments and Contingencies | |||
Number of ships under construction | ship | 3 | 3 | |
Approximate Berths | 4,150 | 4,150 | |
Royal Caribbean International | Oasis-class ship | |||
Commitments and Contingencies | |||
Number of ships under construction | ship | 2 | 2 | |
Royal Caribbean International | Oasis-fourth class ship | |||
Commitments and Contingencies | |||
Approximate Berths | 5,450 | ||
Royal Caribbean International | Cruise ships on order | |||
Commitments and Contingencies | |||
Approximate Berths | 23,350 | 23,350 | |
Class Action Complaint | |||
Commitments and Contingencies | |||
Number of Crew Members Submitting Demands for Arbitration | crew_member | 575 |
Commitments and Contingencies80
Commitments and Contingencies (Leases) (Details) £ in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | |||||
Dec. 31, 2014USD ($) | Dec. 31, 2014GBP (£) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2014GBP (£) | Dec. 31, 2013USD ($) | Dec. 31, 2013GBP (£) | |
Commitments and Contingencies | |||||||
Expenses related to operating leases | $ 29.7 | $ 52 | $ 57.5 | ||||
Brilliance of the Seas Vessel Lease | |||||||
Commitments and Contingencies | |||||||
Expenses related to operating leases | 19.3 | £ 11.7 | $ 19.1 | £ 12.3 | |||
Brilliance of the Seas | |||||||
Commitments and Contingencies | |||||||
Purchase price of Brilliance of the Seas, PPE addition | $ 275.4 | £ 175.4 | $ 275.4 | £ 175.4 |
Commitments and Contingencies81
Commitments and Contingencies (Future Payments) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Future minimum lease payments under noncancelable operating leases | |
2,016 | $ 22,229 |
2,017 | 18,774 |
2,018 | 15,432 |
2,019 | 12,323 |
2,020 | 10,806 |
Thereafter | 146,951 |
Future minimum lease payments under noncancelable operating leases, Total | 226,515 |
Future noncancelable purchase commitments | |
2,016 | 60,064 |
2,017 | 60,964 |
2,018 | 28,437 |
2,019 | 100,048 |
2,020 | 28,665 |
Thereafter | 86,556 |
Future noncancelable purchase commitments, Total | $ 364,734 |
Credit agreement | |
Change of control provisions in debt covenants | |
Number of months considered to determine requirement of prepayment of debts | 24 months |
Lower Limit | Credit agreement | |
Change of control provisions in debt covenants | |
Debt instrument covenant, minimum percentage of ownership by a person | 33.00% |
Lower Limit | Debt Securities | |
Change of control provisions in debt covenants | |
Debt instrument covenant, minimum percentage of ownership by a person | 50.00% |
Restructuring and Related Cha82
Restructuring and Related Charges (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Sep. 30, 2015USD ($) | Jun. 30, 2014shore_side_position | Dec. 31, 2013shore_side_position | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($)shore_side_position | |
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring exit costs | $ 4,318 | $ 23,432 | ||||
Restructuring related impairments | $ 0 | 0 | 33,514 | |||
Restructuring and related impairment charges | $ 0 | 4,318 | $ 56,946 | |||
Ownership interest retained, percent | 50.00% | |||||
Consolidation of Structure | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Number of shore-side positions eliminated | shore_side_position | 500 | |||||
Consolidation of Structure | Marketing, Selling and Administrative and Depreciation and Amortization Expenses | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring exit costs | 7,400 | |||||
Consolidation of Structure | Restructuring and Related Impairment Charges | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring exit costs | 1,100 | $ 18,200 | ||||
Pullmantur | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Number of shore-side positions eliminated | shore_side_position | 100 | |||||
Restructuring and Related Cost, Number of Positions not Executed | shore_side_position | 30 | |||||
Pullmantur | Marketing, Selling and Administrative and Depreciation and Amortization Expenses | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring exit costs | 8,900 | |||||
Pullmantur | Restructuring and Related Impairment Charges | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring exit costs | $ 3,200 | $ 5,300 | ||||
Pullmantur Air | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Percentage of Ownership on Aircraft | 100.00% | |||||
Pullmantur Air and Nautalia Viajes, S.L. | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 49.00% | 49.00% | ||||
Ownership interest retained, percent | 19.00% | |||||
Pullmantur Air and Nautalia Viajes, S.L. | Restructuring and Related Impairment Charges | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring related impairments | $ 20,000 | |||||
Pullmantur's Aircraft | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Impairment of Pullmantur related assets held for use | $ 113,200 | $ 13,500 | ||||
Other Operating Expenses [Member] | Pullmantur Air and Nautalia Viajes, S.L. | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Gain (Loss) on Disposition of Business | $ 600 | |||||
Guarantee Type, Other [Member] | Other Operating Expenses [Member] | Pullmantur Air and Nautalia Viajes, S.L. | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Gain (Loss) on Disposition of Business | $ 5,500 |
Quarterly Selected Financial 83
Quarterly Selected Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||
Total revenues | $ 1,902,053 | $ 2,523,100 | $ 2,058,322 | $ 1,815,599 | $ 1,817,826 | $ 2,388,762 | $ 1,980,043 | $ 1,887,224 | $ 8,299,074 | $ 8,073,855 | $ 7,959,894 | |
Operating income | 249,918 | 258,005 | 261,297 | 105,682 | 119,344 | 529,462 | 195,587 | 97,466 | 874,902 | 941,859 | 798,148 | |
Net income | $ 206,799 | $ 228,787 | $ 184,967 | $ 45,230 | $ 109,768 | $ 490,248 | $ 137,673 | $ 26,457 | $ 665,783 | $ 764,146 | $ 473,692 | |
Earnings per share: | ||||||||||||
Basic (in dollars per share) | $ 0.95 | $ 1.04 | $ 0.84 | $ 0.21 | $ 0.50 | $ 2.20 | $ 0.62 | $ 0.12 | $ 3.03 | $ 3.45 | $ 2.16 | |
Diluted (in dollars per share) | 0.94 | 1.03 | 0.84 | 0.20 | 0.49 | 2.19 | 0.62 | 0.12 | $ 3.02 | $ 3.43 | $ 2.14 | |
Dividends declared per share (in dollars per share) | $ 0.375 | $ 0.375 | $ 0.3 | $ 0.3 | $ 0.3 | $ 0.3 | $ 0.25 | $ 0.25 | $ 0.25 | |||
Condensed Income Statements, Captions [Line Items] | ||||||||||||
Impairment of Pullmantur related assets | $ 411,267 | |||||||||||
Impact of voyage proration change, increase in Operating and Net Income | $ 36,800 | $ 16,300 | 53,200 | |||||||||
Gain (Loss) on Disposition of Property, Plant, and Equipment | $ (17,400) | $ 0 | $ (17,401) | $ 0 | ||||||||
Pullmantur | ||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||
Impairment of Pullmantur related assets | $ 411,300 | |||||||||||
Deferred Income Tax Expense (Benefit) | $ (12,000) | |||||||||||
Valuation allowance adjustment, deferred tax expense (benefit) | $ (33,500) |