Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 30, 2017 | |
Document and Entity Information | ||
Entity Registrant Name | ROYAL CARIBBEAN CRUISES LTD | |
Entity Central Index Key | 884,887 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 214,088,950 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Statement [Abstract] | ||||
Passenger ticket revenues | $ 1,893,152 | $ 1,899,956 | $ 4,892,760 | $ 4,794,653 |
Onboard and other revenues | 676,392 | 663,785 | 1,880,618 | 1,792,145 |
Total revenues | 2,569,544 | 2,563,741 | 6,773,378 | 6,586,798 |
Cruise operating expenses: | ||||
Commissions, transportation and other | 409,597 | 400,933 | 1,060,176 | 1,060,391 |
Onboard and other | 157,041 | 159,887 | 395,472 | 399,739 |
Payroll and related | 210,764 | 214,081 | 636,861 | 671,955 |
Food | 126,223 | 125,732 | 369,198 | 371,759 |
Fuel | 160,752 | 178,772 | 508,914 | 531,283 |
Other operating | 253,892 | 260,718 | 780,257 | 857,161 |
Total cruise operating expenses | 1,318,269 | 1,340,123 | 3,750,878 | 3,892,288 |
Marketing, selling and administrative expenses | 273,637 | 259,327 | 874,957 | 852,435 |
Depreciation and amortization expenses | 240,150 | 229,328 | 710,836 | 661,712 |
Operating Income | 737,488 | 734,963 | 1,436,707 | 1,180,363 |
Other income (expense): | ||||
Interest income | 4,693 | 6,472 | 16,756 | 14,875 |
Interest expense, net of interest capitalized | (73,233) | (82,610) | (230,182) | (226,803) |
Equity investment income | 85,120 | 46,539 | 120,359 | 94,832 |
Other expense (including a $21.7 million loss related to the first quarter 2016 elimination of the Pullmantur reporting lag) | (1,226) | (12,107) | (6,546) | (40,965) |
Total other income (expense) | 15,354 | (41,706) | (99,613) | (158,061) |
Net Income | $ 752,842 | $ 693,257 | $ 1,337,094 | $ 1,022,302 |
Earnings per Share: | ||||
Basic (in dollars per share) | $ 3.51 | $ 3.23 | $ 6.22 | $ 4.74 |
Diluted (in dollars per share) | $ 3.49 | $ 3.21 | $ 6.19 | $ 4.72 |
Weighted-Average Shares Outstanding: | ||||
Basic (in shares) | 214,694 | 214,819 | 214,882 | 215,663 |
Diluted (in shares) | 215,824 | 215,667 | 215,905 | 216,575 |
Comprehensive Income | ||||
Net Income | $ 752,842 | $ 693,257 | $ 1,337,094 | $ 1,022,302 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | 5,889 | 4,043 | 14,210 | 8,423 |
Change in defined benefit plans | (1,990) | (5,051) | (6,280) | (12,148) |
Gain on cash flow derivative hedges | 230,245 | 95,536 | 381,660 | 254,624 |
Total other comprehensive income | 234,144 | 94,528 | 389,590 | 250,899 |
Comprehensive Income | $ 986,986 | $ 787,785 | $ 1,726,684 | $ 1,273,201 |
CONSOLIDATED STATEMENTS OF COM3
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - Parenthetical $ in Millions | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Other income (expense) | Pullmantur and CDF Croisieres de France | |
Income (loss) from Subsidiaries (two months lag elimination) | $ 21.7 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 139,950 | $ 132,603 |
Trade and other receivables, net | 285,332 | 291,899 |
Inventories | 119,949 | 114,087 |
Prepaid expenses and other assets | 200,125 | 209,716 |
Derivative financial instruments | 52,796 | 0 |
Total current assets | 798,152 | 748,305 |
Property and equipment, net | 19,688,872 | 20,161,427 |
Goodwill | 288,517 | 288,386 |
Other assets | 1,323,773 | 1,112,206 |
Total assets | 22,099,314 | 22,310,324 |
Current liabilities | ||
Current portion of long-term debt | 1,515,708 | 1,285,735 |
Accounts payable | 384,536 | 305,313 |
Accrued interest | 92,914 | 46,166 |
Accrued expenses and other liabilities | 748,442 | 692,322 |
Derivative financial instruments | 89,333 | 146,592 |
Customer deposits | 2,226,179 | 1,965,473 |
Total current liabilities | 5,057,112 | 4,441,601 |
Long-term debt | 6,076,499 | 8,101,701 |
Other long-term liabilities | 530,215 | 645,610 |
Commitments and contingencies (Note 7) | ||
Shareholders’ equity | ||
Preferred stock ($0.01 par value; 20,000,000 shares authorized; none outstanding) | 0 | 0 |
Common stock ($0.01 par value; 500,000,000 shares authorized; 235,134,180 and 234,613,486 shares issued, September 30, 2017 and December 31, 2016, respectively) | 2,351 | 2,346 |
Paid-in capital | 3,375,969 | 3,328,517 |
Retained earnings | 8,862,369 | 7,860,341 |
Accumulated other comprehensive loss | (526,894) | (916,484) |
Treasury stock (21,059,191 and 20,019,237 common shares at cost, September 30, 2017 and December 31, 2016, respectively) | (1,278,307) | (1,153,308) |
Total shareholders’ equity | 10,435,488 | 9,121,412 |
Total liabilities and shareholders' equity | $ 22,099,314 | $ 22,310,324 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 235,134,180 | 234,613,486 |
Treasury stock, common shares (in shares) | 21,059,191 | 20,019,237 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | ||
Operating Activities | |||
Net Income | $ 1,337,094 | $ 1,022,302 | |
Adjustments: | |||
Depreciation and amortization | 710,836 | 661,712 | |
Net deferred income tax expense | 516 | 1,601 | |
(Gain) loss on derivative instruments not designated as hedges | (56,836) | 6,353 | |
Share-based compensation expense | 52,469 | 22,041 | |
Equity investment income | (120,359) | (94,832) | |
Amortization of debt issuance costs | 37,562 | 39,425 | |
Gain on sale of property and equipment | (30,902) | 0 | |
Changes in operating assets and liabilities: | |||
Decrease in trade and other receivables, net | 16,245 | 9,823 | |
Increase in inventories | (6,131) | (6,379) | |
Decrease (increase) in prepaid expenses and other assets | 10,211 | (8,794) | |
Increase (decrease) in accounts payable | 77,436 | (17,313) | |
Increase in accrued interest | 46,748 | 56,787 | |
Increase in accrued expenses and other liabilities | 12,870 | 17,929 | |
Increase in customer deposits | 256,855 | 197,277 | |
Dividends received from unconsolidated affiliates | 107,267 | 71,370 | |
Other, net | 2,720 | 21,650 | |
Net cash provided by operating activities | 2,454,601 | 2,000,952 | |
Investing Activities | |||
Purchases of property and equipment | (387,335) | (2,313,831) | |
Cash received (paid) on settlement of derivative financial instruments | 57,004 | (172,878) | |
Investments in and loans to unconsolidated affiliates | 0 | (8,611) | |
Cash received on loans to unconsolidated affiliates | 31,633 | 22,470 | |
Proceeds from the sale of property and equipment | 230,000 | 0 | |
Other, net (1) | [1] | (9,313) | (44,709) |
Net cash used in investing activities | (78,011) | (2,517,559) | |
Financing Activities | |||
Debt proceeds | 3,682,000 | 6,038,560 | |
Debt issuance costs | (25,987) | (83,793) | |
Repayments of debt | (5,598,198) | (4,818,262) | |
Purchases of treasury stock | (124,999) | (299,959) | |
Dividends paid | (309,162) | (243,557) | |
Proceeds from exercise of common stock options | 2,499 | 1,782 | |
Other, net | 4,137 | 2,179 | |
Net cash (used in) provided by financing activities | (2,369,710) | 596,950 | |
Effect of exchange rate changes on cash | 467 | (23,480) | |
Net increase in cash and cash equivalents | 7,347 | 56,863 | |
Cash and cash equivalents at beginning of period | 132,603 | 121,565 | |
Cash and cash equivalent at end of period | 139,950 | 178,428 | |
Cash paid during the period for: | |||
Interest, net of amount capitalized | 147,789 | 140,335 | |
Non-cash Investing Activities | |||
Notes receivable issued upon sale of property and equipment | $ 0 | 213,042 | |
Cash from divestiture in Pullmantur Holdings | $ 26,000 | ||
[1] | Amount includes $26.0 million in 2016 related to cash included in the divestiture of our 51% interest in Pullmantur Holdings. |
General
General | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | General Description of Business We are a global cruise company. As of September 30, 2017 , we own and operate three global cruise brands: Royal Caribbean International, Celebrity Cruises and Azamara Club Cruises (collectively, our "Global Brands"). We also own a 50% joint venture interest in the German brand TUI Cruises, a 49% interest in the Spanish brand Pullmantur and have a minority interest in the Chinese brand SkySea Cruises (collectively, our "Partner Brands"). We account for our investments in our Partner Brands under the equity method of accounting. Prior to August 2016, Pullmantur Holdings S.L. ("Pullmantur Holdings"), the parent company of the Pullmantur brand (formerly known as Royal Caribbean Holdings de España S.L.), was wholly owned by us. Effective July 31, 2016, we sold 51% of our interest in Pullmantur Holdings. We retain a 49% interest in Pullmantur Holdings as well as full ownership of the four vessels currently operated by the Pullmantur brand under bareboat charter arrangements. We account for the bareboat charters of the vessels to Pullmantur Holdings as operating leases. We also provide certain ship management services and other related services to Pullmantur Holdings. Basis for Preparation of Consolidated Financial Statements The unaudited consolidated financial statements are presented pursuant to the rules and regulations of the Securities and Exchange Commission. In our opinion, these statements include all adjustments necessary for a fair statement of the results of the interim periods reported herein. Adjustments consist only of normal recurring items, except for any discussed in the notes below. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted as permitted by such rules and regulations. Estimates are required for the preparation of financial statements in accordance with GAAP and actual results could differ from these estimates. Refer to Note 2. Summary of Significant Accounting Policies in this Quarterly Report on Form 10-Q and in our Annual Report on Form 10-K for the year ended December 31, 2016 for a discussion of our significant accounting policies. All significant intercompany accounts and transactions are eliminated in consolidation. We consolidate entities over which we have control, usually evidenced by a direct ownership interest of greater than 50% , and variable interest entities where we are determined to be the primary beneficiary. Refer to Note 5. Other Assets for further information regarding our variable interest entities. For affiliates we do not control but over which we have significant influence on financial and operating policies, usually evidenced by a direct ownership interest from 20% to 50% , the investment is accounted for using the equity method. Prior to January 1, 2016, we consolidated the operating results of Pullmantur Holdings on a two -month reporting lag to allow for more timely preparation of our consolidated financial statements. Effective January 1, 2016, we eliminated the two-month reporting lag to reflect Pullmantur Holding's financial position, results of operations and cash flows concurrently and consistently with the fiscal calendar of the Company (the "elimination of the Pullmantur reporting lag"). The elimination of the Pullmantur reporting lag represented a change in accounting principle which we believed to be preferable because it provided more current information to the users of our financial statements. A change in accounting principle requires retrospective application, if material. The impact of the elimination of the Pullmantur reporting lag was immaterial to prior periods and was immaterial for our fiscal year ended December 31, 2016. As a result, we have accounted for this change in accounting principle in our consolidated results for the first quarter of 2016. Accordingly, the results of Pullmantur Holdings for November and December 2015 are included in our statement of comprehensive income (loss) for the nine months ended September 30, 2016 . The effect of this change was a decrease to net income of $21.7 million , which has been reported within Other expense in our consolidated statements of comprehensive income (loss) for the nine months ended September 30, 2016 . |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Recent Accounting Pronouncements Revenue from Contracts with Customers In May 2014, amended GAAP guidance was issued to clarify the principles used to recognize revenue for all entities. The guidance also requires more detailed disclosures and provides additional guidance for transactions that were not comprehensively addressed in the prior accounting guidance. This guidance must be applied using one of two retrospective application methods and will be effective for our annual reporting period beginning after December 15, 2017, including interim periods therein. We have made significant progress toward completing our evaluation of potential changes to our core revenues using the five-step model supported by the new revenue standard. Currently, we are in the process of finalizing our analysis and quantifying the effects of adoption, if any, on how we account for our customer loyalty programs and promotional offerings, as the new standard has changed the method of accounting for loyalty points from a cost-based model to a revenue deferral model using a relative stand-alone selling price method. We expect to complete this analysis and conclude our evaluation on the impact of adopting this new standard on our consolidated financial statements during the fourth quarter of fiscal 2017. Based on our assessment to date, we do not expect the adoption of the new standard to materially change the timing of recognition of our core revenues, but we do anticipate enhancing our disclosures with respect to our revenue recognition policies in compliance with the new standard. Upon adoption, we intend to elect the modified retrospective method. This will involve applying the guidance retrospectively only to the most current period presented in the consolidated financial statements and recognizing the cumulative effect of initially applying the guidance as an adjustment to the January 1, 2018 opening balance of retained earnings. Leases In February 2016, amended GAAP guidance was issued to increase the transparency and comparability of lease accounting among organizations. For leases with a term greater than 12 months, the amendments require the lease rights and obligations arising from the leasing arrangements, including operating leases, to be recognized as assets and liabilities on the balance sheet. The amendments also expand the required disclosures surrounding leasing arrangements. The guidance must be applied using a retrospective application method and will be effective for financial statements issued for fiscal years beginning after December 15, 2018 and interim periods within those years. Early adoption is permitted. We are currently evaluating the impact of the adoption of this newly issued guidance to our consolidated financial statements. Classification of Certain Cash Receipts and Cash Payments In August 2016, amended GAAP guidance was issued to clarify how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments are aimed at reducing the existing diversity in practice. The guidance should be applied using a retrospective transition method to each period presented and will be effective for annual periods beginning after December 15, 2017 and interim periods within those annual periods. Early adoption is permitted, including adoption in an interim period. We intend to adopt the guidance on the date of initial application, January 1, 2018. The adoption of this newly issued guidance is not expected to have a material impact to our consolidated financial statements. Intra-Entity Transfers of Assets Other Than Inventory In October 2016, amended GAAP guidance was issued that requires the income tax consequences of an intra-entity transfer of an asset, other than inventory, to be recognized at the time that the transfer occurs, rather than when the asset is sold to an outside party. The new guidance is effective for annual and interim reporting periods beginning after December 15, 2017. Early adoption is permitted as of the beginning of an annual period for which financial statements have not been issued. The guidance is required to be adopted retrospectively by recording a cumulative-effect adjustment to retained earnings as of the beginning of the adoption period. The adoption of this newly issued guidance is not expected to have a material impact to our consolidated financial statements. Service Concession Arrangements In May 2017, amended GAAP guidance was issued to clarify who should be viewed as the customer under service concession arrangements. A service concession arrangement is an arrangement under which a public sector entity (“grantor”), such as a Port Authority, grants a private entity (“operator”), such as the Company, the right to operate the grantor's infrastructure for a specified period of time. The amended guidance will require the Company to evaluate the relationship with the grantor and identify the multiple performance obligations that may exist under these concession arrangements, including consideration of construction services that may be performed, operational services, and any other maintenance or ancillary services performed under the service concession. In addition, the amended guidance will require that all revenue streams identified under such arrangements be evaluated with the grantor as the customer, irrespective of whether some of the revenues are paid by third-party users of the infrastructure under concession. The clarification will enable a more consistent application of the new Revenue from Contracts with Customers guidance, which along with this clarification guidance, will be effective for our annual reporting period beginning after December 15, 2017, including interim periods therein. This guidance must be applied using one of two retrospective application methods. We are currently evaluating the impact of the adoption of this newly issued guidance to our consolidated financial statements. Derivatives and Hedging In August 2017, amended GAAP guidance was issued to simplify and improve the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities in its financial statements. In addition to changes in designation and measurement for qualifying hedge relationships, the guidance requires an entity to report the earnings effect of the hedging instrument in the same income statement line item in which the earnings effect of the hedged item is reported. As a result, hedge ineffectiveness will no longer be separately measured or reported. This guidance will be effective for our annual reporting period beginning after December 15, 2018, including interim periods therein. Early adoption is permitted in any interim period after issuance of this guidance. All transition requirements and elections should be applied to hedging relationships existing on the date of adoption. The effect of the adoption should be reflected as of the beginning of the fiscal year of adoption. We are currently evaluating the impact of the adoption of this newly issued guidance to our consolidated financial statements. Other 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 $135.9 million and $158.7 million for the third quarters of 2017 and 2016 , respectively, and $413.7 million and $443.1 million for the nine months ended September 30, 2017 and 2016 , respectively. Reclassifications For the third quarter and nine months ended September 30, 2016 , restructuring charges of $1.9 million and $6.6 million , respectively, have been reclassified into Marketing, selling and administrative expenses in the consolidated statements of comprehensive income (loss) in order to conform to the current year presentation. For the nine months ended September 30, 2016 , share-based compensation expense of $22.0 million , equity investment income of $94.8 million and amortization of debt issuance costs of $22.9 million , have been reclassified in the consolidated statements of cash flows from Other, net to Share-based compensation expense , Equity investment income and Amortization of debt issuance costs , respectively, within Net cash provided by operating activities in order to conform to the current year presentation. Additionally, for the nine months ended September 30, 2016 , amortization of debt issuance costs of $11.3 million and $5.3 million , have been reclassified from Decrease (increase) in prepaid expenses and other assets and from Increase in accrued expenses and other liabilities , respectively, in the consolidated statements of cash flows to Amortization of debt issuance costs , within Net cash provided by operating activities in order to conform to the current year presentation. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share A reconciliation between basic and diluted earnings per share is as follows (in thousands, except per share data): Quarter Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Net income for basic and diluted earnings per share $ 752,842 $ 693,257 $ 1,337,094 $ 1,022,302 Weighted-average common shares outstanding 214,694 214,819 214,882 215,663 Dilutive effect of stock options, performance share awards and restricted stock awards 1,130 848 1,023 912 Diluted weighted-average shares outstanding 215,824 215,667 215,905 216,575 Basic earnings per share $ 3.51 $ 3.23 $ 6.22 $ 4.74 Diluted earnings per share $ 3.49 $ 3.21 $ 6.19 $ 4.72 There were no antidilutive shares for the quarters and nine month periods ended September 30, 2017 and September 30, 2016 . |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment In March 2017, we sold Legend of the Seas to an affiliate of TUI AG, our joint venture partner in TUI Cruises. The sale resulted in a gain of $30.9 million and is reported within Other operating within Cruise operating expenses in our consolidated statements of comprehensive income (loss) for the nine months ended September 30, 2017 . In April 2016, we sold Splendour of the Seas to TUI Cruises. Concurrent with the acquisition, TUI Cruises leased the ship to the same TUI AG affiliate mentioned above, which now operates the ship. The gain recognized did not have a material effect to our consolidated financial statements and was also reported in Other operating within Cruise operating expenses in our consolidated statements of comprehensive income (loss) for the nine months ended September 30, 2016 . |
Other Assets
Other Assets | 9 Months Ended |
Sep. 30, 2017 | |
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 September 30, 2017 , the net book value of our investment in TUI Cruises was approximately $582.5 million , primarily consisting of $379.3 million in equity and a loan of €170.4 million , or approximately $201.5 million based on the exchange rate at September 30, 2017 . As of December 31, 2016 , the net book value of our investment in TUI Cruises was approximately $517.0 million , primarily consisting of $323.5 million in equity and a loan of €182.3 million , or approximately $192.4 million based on the exchange rate at December 31, 2016 . The loan, which was made in connection with the sale of Splendour of the Seas in April 2016, accrues interest at a rate of 6.25% per annum and is payable over 10 years . This loan is 50% guaranteed by TUI AG, our joint venture partner in TUI Cruises, and is secured by a first priority mortgage on the ship. Refer to Note 4. Property and Equipment for further information. The majority of these amounts were included within Other assets in our consolidated balance sheets. In addition, we and TUI AG have each guaranteed the repayment by TUI Cruises of 50% of a bank loan. As of September 30, 2017 , the outstanding principal amount of the loan was €100.4 million , or approximately $118.7 million based on the exchange rate at September 30, 2017 . While this loan matures in May 2022, the lenders have agreed to release each shareholder's guarantee if certain conditions are met by April 2018. The loan amortizes quarterly and is 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. Our investment amount, outstanding term loan and the potential obligations under the bank loan guarantee are substantially our maximum exposure to loss in connection with our investment in TUI Cruises. We have determined that we are not the primary beneficiary of TUI Cruises. We believe that the power to direct the activities that most significantly impact TUI Cruises’ economic performance are shared between ourselves and TUI AG. All the significant operating and financial decisions of TUI Cruises require the consent of both parties, which we believe creates shared power over TUI Cruises. Accordingly, we do not consolidate this entity and account for this investment under the equity method of accounting. TUI Cruises has two newbuild ships on order scheduled to be delivered in each of 2018 and 2019. TUI Cruises has in place agreements for the secured financing of each of the ships on order for up to 80% of the contract price. The remaining portion of the contract price of the ships is expected to be funded through an existing €150.0 million bank facility and TUI Cruises’ cash flows from operations. The various ship construction and financing agreements include certain restrictions on each of our and TUI AG’s ability to reduce our current ownership interest in TUI Cruises below 37.55% through 2021. We have determined that Pullmantur Holdings, in which we have a 49% noncontrolling interest, is a VIE for which we are not the primary beneficiary, as we do not have the power to direct the activities that most significantly impact the entity's economic performance. Accordingly, following the sale of our 51% interest in Pullmantur Holdings to Springwater Capital LLC ("Springwater"), we do not consolidate this entity and we account for this investment under the equity method of accounting. As of September 30, 2017 , our maximum exposure to loss in Pullmantur Holdings was approximately $50.9 million consisting of loans and other receivables. As of December 31, 2016 , our maximum exposure to loss in Pullmantur Holdings was approximately $40.3 million consisting of loans and other receivables. These amounts were included within Trade and other receivables, net and Other assets in our consolidated balance sheets. In conjunction with the sale of our 51% interest in Pullmantur Holdings, we agreed to provide a non-revolving working capital facility to a Pullmantur Holdings subsidiary in the amount of up to €15.0 million or approximately $17.7 million based on the exchange rate at September 30, 2017 . Proceeds of the facility, which may be drawn through July 2018, will bear interest at the rate of 6.5% per annum and are payable through 2022. Springwater has guaranteed repayment of 51% of the outstanding amounts under the facility. As of September 30, 2017 , no amounts had been drawn on this facility. We have determined that Grand Bahama Shipyard Ltd. (“Grand Bahama”), a ship repair and maintenance facility in which we have a 40% noncontrolling interest, is a VIE. This facility serves cruise and cargo ships, oil and gas tankers and offshore units. We utilize this facility, among other ship repair facilities, for our regularly scheduled drydocks and certain emergency repairs as may be required. During the quarter and nine months ended September 30, 2017 , we made payments of $1.9 million and $7.5 million , respectively, to Grand Bahama for ship repair and maintenance services. We have determined that we are not the primary beneficiary of this facility as we do not have the power to direct the activities that most significantly impact the facility’s economic performance. Accordingly, we do not consolidate this entity and we account for this investment under the equity method of accounting. As of September 30, 2017 , the net book value of our investment in Grand Bahama was approximately $50.4 million , consisting of $30.8 million in equity and a loan of $19.6 million . As of December 31, 2016 , the net book value of our investment in Grand Bahama was approximately $47.0 million , consisting of $23.2 million in equity and a loan of $23.8 million . These amounts represent our maximum exposure to loss related to our investment in Grand Bahama. Our debt agreement with Grand Bahama was amended during the quarter ended March 31, 2016 to extend the maturity by 10 years and increase the applicable interest rate to the lower of (i) LIBOR plus 3.50% and (ii) 5.5% . Interest payable on the loan is due on a semi-annual basis. We continue to classify the loan, as modified, as non-accrual status. The loan balance is included within Other assets in our consolidated balance sheets. We monitor credit risk associated with the loan through our participation on Grand Bahama’s board of directors along with our review of Grand Bahama’s financial statements and projected cash flows. Based on this review, we believe the risk of loss associated with the outstanding loan is not probable as of September 30, 2017 . We have determined that Skysea Holding International Ltd. ("Skysea Holding"), in which we have a 36% noncontrolling interest, is a VIE. During the second quarter of 2017, we made an equity contribution of $7.1 million which increased our equity interest from 35% to 36% . The contribution was made pursuant to a funding arrangement in which the entity's three largest investors agreed to contribute a total of $30.0 million in proportion to their equity interest in a series of installments. We have determined that we are not the primary beneficiary of Skysea Holding as we do not have the power to direct the activities that most significantly impact the entity's economic performance. Accordingly, we do not consolidate this entity and we account for this investment under the equity method of accounting. In December 2014, we and Ctrip.com International Ltd, which also owns 36% of Skysea Holding, each provided a debt facility to a wholly owned subsidiary of Skysea Holding in the amount of $80.0 million . Interest under these facilities, which mature in January 2030, currently accrues at a rate of 6.5% per annum. The facilities, which are pari passu to each other, are each 100% guaranteed by Skysea Holding and are secured by first priority mortgages on the ship, Golden Era. As of September 30, 2017 , the net book value of our investment in Skysea Holding and its subsidiaries was approximately $97.3 million , consisting of $6.5 million in equity and loans and other receivables of $90.8 million . As of December 31, 2016 , the net book value of our investment in Skysea Holding and its subsidiaries was approximately $98.0 million , consisting of $9.2 million in equity and loans and other receivables of $88.8 million . The majority of these amounts were included within Other assets in our consolidated balance sheets and represent our maximum exposure to loss related to our investment in Skysea Holding. The following table sets forth information regarding our investments accounted for under the equity method of accounting, including the entities discussed above, (in thousands): Quarter Ended September 30, 2017 Quarter Ended September 30, 2016 Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 Share of equity income from investments $ 85,120 $ 46,539 $ 120,359 $ 94,832 Dividends received $ 49,865 $ 47,491 $ 107,267 $ 71,370 We also provide ship management services to TUI Cruises GmbH, Pullmantur Holdings and Skysea Holding. Additionally, we bareboat charter to Pullmantur Holdings the vessels currently operated by its brands, which were retained by us following the sale of our 51% interest in Pullmantur Holdings. We recorded the following as it relates to these services in our operating results within our consolidated statements of comprehensive income (loss) (in thousands): Quarter Ended September 30, 2017 Quarter Ended September 30, 2016 Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 Revenues $ 14,054 $ 9,300 $ 39,987 $ 17,888 Expenses $ 3,770 $ 2,410 $ 11,503 $ 8,930 |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt In October 2017, we amended and restated our $1.2 billion unsecured revolving credit facility due August 2018. The amendment reduced the applicable margin and extended the termination date to October 2022. The applicable margin and facility fee vary with our debt rating and are currently 1.175% and 0.20% , respectively. We have the ability to increase the capacity of the amended facility by an additional $500 million , subject to the receipt of additional or increased lender commitments, and to extend the termination date by up to two years, subject to lender consent. These amendments did not result in the extinguishment of debt. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Ship Purchase Obligations Our future capital commitments consist primarily of new ship orders. As of September 30, 2017 , we had two Quantum-class ships, two Oasis-class ships and two ships of a new generation of ships, known as "Project Icon," on order for our Royal Caribbean International brand with an aggregate capacity of approximately 30,500 berths. Additionally, as of September 30, 2017 , we have four Edge-class ships on order for our Celebrity Cruises brand with an aggregate capacity of approximately 11,600 berths. The following provides further information on recent developments with respect to our ship orders. During the second quarter of 2017, we entered into agreements with Meyer Turku to build two "Project Icon" ships. Subsequently, in October 2017, we entered into credit agreements for the unsecured financing of these ships for up to 80% of each ship’s contract price. For each ship, the official Finnish export credit agency, Finnvera, plc, has agreed to guarantee to the lenders a substantial majority of the financing, with a smaller portion of the financing to be 95% guaranteed by Euler Hermes, the official German export credit agency. The maximum loan amount under each facility is not to exceed €1.4 billion , or approximately $1.7 billion , based on the exchange rate at September 30, 2017 . Interest on approximately 75% of each loan will accrue at a fixed rate of 3.56% and 3.76% for the first and the second Icon-class ships, respectively, and the balance will accrue interest at a floating rate ranging from LIBOR plus 1.10% to 1.15% and LIBOR plus 1.15% to 1.20% for the first and the second Icon-class ships, respectively. Each loan will amortize semi-annually and will mature 12 years following delivery of each ship. The first and second Icon-class ships will each have a capacity of approximately 5,650 berths and are expected to enter service in the second quarters of 2022 and 2024, respectively. In July 2017, we entered into credit agreements for the unsecured financing of the third and fourth Edge-class ships and the fifth Oasis-class ship for up to 80% of each ship’s contract price through facilities to be guaranteed 100% by Bpifrance Assurance Export, the official export credit agency of France. Under these financing arrangements, we have the right, but not the obligation, to satisfy the obligations to be incurred upon delivery and acceptance of each ship under the shipbuilding contract by assuming, at delivery and acceptance, the debt indirectly incurred by the shipbuilder during the construction of each ship. The maximum loan amount under each facility is not to exceed €684.2 million in the case of the third Edge-class ship and the United States dollar equivalent of €714.6 million and €1.1 billion in the case of the fourth Edge-class ship and fifth Oasis-class ship, or approximately $844.7 million and $1.3 billion , respectively, based on the exchange rate at September 30, 2017 . The loans will amortize semi-annually and will mature 12 years following delivery of each ship. Interest on the loans will accrue at a fixed rate of 1.28% for the third Edge-class ship and at a fixed rate of 3.18% for both, the fourth Edge-class ship and the fifth Oasis-class ship. The third and fourth Edge-class ships, each of which will have a capacity of approximately 2,900 berths, are expected to enter service in the fourth quarters of 2021 and 2022, respectively. The fifth Oasis-class ship will have a capacity of approximately 5,450 berths and is expected to enter service in the second quarter of 2021. In September 2017, we entered into an agreement to purchase a ship for our Azamara Club Cruises brand. The sale is expected to be completed with the delivery of the ship scheduled for March 2018. As of September 30, 2017 , the aggregate cost of our ships on order, not including any ships on order by our Partner Brands, was approximately $13.0 billion , of which we had deposited $323.2 million as of such date. Approximately 53.8% of the aggregate cost was exposed to fluctuations in the Euro exchange rate at September 30, 2017 . Refer to Note 10. Fair Value Measurements and Derivative Instruments for further information. Litigation We are routinely involved in claims typical within the cruise vacation industry. The majority of these claims are covered by insurance. We believe the outcome of such claims, net of expected insurance recoveries, will not have a material adverse impact on our financial condition or results of operations and cash flows. Other If any person acquires ownership of more than 50% of our common stock or, subject to certain exceptions, during any 24 -month period, a majority of the Board is no longer comprised of individuals who were members of the Board on the first day of such period, we may be obligated to prepay indebtedness outstanding under our credit facilities, which we may be unable to replace on similar terms. Our public debt securities also contain change of control provisions that would be triggered by a third-party acquisition of greater than 50% of our common stock coupled with a ratings downgrade. If this were to occur, it would have an adverse impact on our liquidity and operations. |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity In September 2017 , we declared a cash dividend on our common stock of $0.60 per share which was paid in October 2017 . During the first and second quarters of 2017 , we declared a cash dividend on our common stock of $0.48 per share which was paid in April 2017 and July 2017, respectively. During the first quarter of 2017 , we also paid a cash dividend on our common stock of $0.48 per share which was declared during the fourth quarter of 2016. During the third quarter of 2016, we declared a cash dividend on our common stock of $0.48 per share which was paid in October 2016. During the first and second quarters of 2016, we declared and paid a cash dividend on our common stock of $0.375 per share. During the first quarter of 2016, we also paid a cash dividend on our common stock of $0.375 per share which was declared during the fourth quarter of 2015. In April 2017, our board of directors authorized a 12-month common stock repurchase program for up to $500 million . The timing and number of shares to be repurchased will depend on a variety of factors including price and market conditions. Repurchases under the program may be made at management's discretion from time to time on the open market or through privately negotiated transactions. During the third quarter of 2017 , we repurchased 1.0 million shares of our common stock for a total of $125.0 million in open market transactions that were recorded within Treasury stock in our consolidated balance sheets. With these repurchases, we have $375.0 million that remain available for future stock repurchase transactions under our Board approved program. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2017 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Changes in Accumulated Other Comprehensive Income (Loss) | Changes in Accumulated Other Comprehensive Income (Loss) The following table presents the changes in accumulated other comprehensive income (loss) by component for the nine months ended September 30, 2017 and 2016 (in thousands): Accumulated Other Comprehensive Income (Loss) for the Nine Months Ended September 30, 2017 Accumulated Other Comprehensive Income (Loss) for the Nine Months Ended September 30, 2016 Changes Changes in Foreign Accumulated other Changes Changes in Foreign Accumulated other Accumulated comprehensive loss at beginning of the year $ (820,850 ) $ (28,083 ) $ (67,551 ) $ (916,484 ) $ (1,232,073 ) $ (26,447 ) $ (69,913 ) $ (1,328,433 ) Other comprehensive income (loss) before reclassifications 230,341 (7,130 ) 14,210 237,421 (9,150 ) (13,521 ) 8,423 (14,248 ) Amounts reclassified from accumulated other comprehensive loss 151,319 850 — 152,169 263,774 1,373 — 265,147 Net current-period other comprehensive income (loss) 381,660 (6,280 ) 14,210 389,590 254,624 (12,148 ) 8,423 250,899 Ending balance $ (439,190 ) $ (34,363 ) $ (53,341 ) $ (526,894 ) $ (977,449 ) $ (38,595 ) $ (61,490 ) $ (1,077,534 ) The following table presents reclassifications out of accumulated other comprehensive income (loss) for the quarters and nine months ended September 30, 2017 and 2016 (in thousands): Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income Details About Accumulated Other Comprehensive Income (Loss) Components Quarter Ended September 30, 2017 Quarter Ended September 30, 2016 Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 Affected Line Item in Statements of Loss on cash flow derivative hedges: Interest rate swaps $ (7,860 ) $ (11,953 ) $ (24,580 ) $ (32,019 ) Interest expense, net of interest capitalized Foreign currency forward contracts (2,710 ) (2,710 ) (8,130 ) (5,408 ) Depreciation and amortization expenses Foreign currency forward contracts (1,512 ) (3,465 ) (9,187 ) (10,206 ) Other expense Foreign currency forward contracts — — — (207 ) Other operating Foreign currency collar options (602 ) (601 ) (1,806 ) (1,806 ) Depreciation and amortization expenses Fuel swaps 1,758 2,760 6,533 9,356 Other expense Fuel swaps (32,386 ) (64,654 ) (114,149 ) (223,484 ) Fuel (43,312 ) (80,623 ) (151,319 ) (263,774 ) Amortization of defined benefit plans: Actuarial loss (293 ) (285 ) (850 ) (1,373 ) Payroll and related (293 ) (285 ) (850 ) (1,373 ) Total reclassifications for the period $ (43,605 ) $ (80,908 ) $ (152,169 ) $ (265,147 ) |
Fair Value Measurements and Der
Fair Value Measurements and Derivative Instruments | 9 Months Ended |
Sep. 30, 2017 | |
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 September 30, 2017 Using Fair Value Measurements at December 31, 2016 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) $ 139,950 $ 139,950 $ 139,950 $ — $ — $ 132,603 $ 132,603 $ 132,603 $ — $ — Total Assets $ 139,950 $ 139,950 $ 139,950 $ — $ — $ 132,603 $ 132,603 $ 132,603 $ — $ — Liabilities: Long-term debt (including current portion of long-term debt) (5) $ 7,557,801 $ 8,111,168 $ — $ 8,111,168 $ — $ 9,347,051 $ 9,859,266 $ — $ 9,859,266 $ — Total Liabilities $ 7,557,801 $ 8,111,168 $ — $ 8,111,168 $ — $ 9,347,051 $ 9,859,266 $ — $ 9,859,266 $ — (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 September 30, 2017 and December 31, 2016 . (4) Consists of cash and marketable securities with original maturities of less than 90 days. (5) Consists of unsecured revolving credit facilities, senior notes, senior debentures and term loans. This does not include our capital lease obligations. Other Financial Instruments The carrying amounts of accounts receivable, accounts payable, accrued interest and accrued expenses approximate fair value at September 30, 2017 and December 31, 2016 . 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 September 30, 2017 Using Fair Value Measurements at December 31, 2016 Using Description Total Level 1 (1) Level 2 (2) Level 3 (3) Total Level 1 (1) Level 2 (2) Level 3 (3) Assets: Derivative financial instruments (4) $ 221,258 $ — $ 221,258 $ — $ 19,397 $ — $ 19,397 $ — Investments (5) $ 3,237 3,237 — — $ 3,576 3,576 — — Total Assets $ 224,495 $ 3,237 $ 221,258 $ — $ 22,973 $ 3,576 $ 19,397 $ — Liabilities: Derivative financial instruments (6) $ 189,163 $ — $ 189,163 $ — $ 373,497 $ — $ 373,497 $ — Total Liabilities $ 189,163 $ — $ 189,163 $ — $ 373,497 $ — $ 373,497 $ — (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 September 30, 2017 and December 31, 2016 . (4) Consists of foreign currency forward contracts, interest rate swaps and fuel swaps. Please refer to the “Fair Value of Derivative Instruments” table for breakdown by instrument type. (5) Consists of exchange-traded equity securities and mutual funds reported within Other assets in our consolidated balance sheets. (6) Consists of foreign currency forward contracts, interest rate swaps and fuel swaps. Please refer to the “Fair Value of Derivative Instruments” table for breakdown by instrument type. The reported fair values are based on a variety of factors and assumptions. Accordingly, the fair values may not represent actual values of the financial instruments that could have been realized as of September 30, 2017 or December 31, 2016 , or that will be realized in the future, and do not include expenses that could be incurred in an actual sale or settlement. We have master International Swaps and Derivatives Association (“ISDA”) agreements in place with our derivative instrument counterparties. These ISDA agreements provide for final close out netting with our counterparties for all positions in the case of default or termination of the ISDA agreement. We have determined that our ISDA agreements provide us with rights of setoff on the fair value of derivative instruments in a gain position and those in a loss position with the same counterparty. We have elected not to offset such derivative instrument fair values in our consolidated balance sheets. See Credit Related Contingent Features for further discussion on contingent collateral requirements for our derivative instruments. The following table presents information about the Company’s offsetting of financial assets under master netting agreements with derivative counterparties: Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements As of September 30, 2017 As of December 31, 2016 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 $ 221,258 $ (117,065 ) $ — $ 104,193 $ 19,397 $ (19,397 ) $ — $ — Total $ 221,258 $ (117,065 ) $ — $ 104,193 $ 19,397 $ (19,397 ) $ — $ — 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 September 30, 2017 As of December 31, 2016 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 $ (189,163 ) $ 117,065 $ — $ (72,098 ) $ (373,497 ) $ 19,397 $ 7,213 $ (346,887 ) Total $ (189,163 ) $ 117,065 $ — $ (72,098 ) $ (373,497 ) $ 19,397 $ 7,213 $ (346,887 ) 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 September 30, 2017 , we had counterparty credit risk exposure under our derivative instruments of approximately $101.6 million , which was limited to the cost of replacing the contracts in the event of non-performance by the counterparties to the contracts, the majority of which are currently our lending banks. As of December 31, 2016 , 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. Derivative Instruments We are exposed to market risk attributable to changes in interest rates, foreign currency exchange rates and fuel prices. We try to mitigate these risks through a combination of our normal operating and financing activities and through the use of derivative financial instruments pursuant to our hedging practices and policies. The financial impact of these hedging instruments is primarily offset by corresponding changes in the underlying exposures being hedged. We achieve this by closely matching the notional amount, term and conditions of the derivative instrument with the underlying risk being hedged. Although certain of our derivative financial instruments do not qualify or are not accounted for under hedge accounting, our objective is not to hold or issue derivative financial instruments for trading or other speculative purposes. We enter into various forward, swap and option contracts to manage our interest rate exposure and to limit our exposure to fluctuations in foreign currency exchange rates and fuel prices. These instruments are recorded on the balance sheet at their fair value and the vast majority are designated as hedges. We also use non-derivative financial instruments designated as hedges of our net investment in our foreign operations and investments. At inception of the hedge relationship, a derivative instrument that hedges the exposure to changes in the fair value of a firm commitment or a recognized asset or liability is designated as a fair value hedge. A derivative instrument that hedges a forecasted transaction or the variability of cash flows related to a recognized asset or liability is designated as a cash flow hedge. Changes in the fair value of derivatives that are designated as fair value hedges are offset against changes in the fair value of the underlying hedged assets, liabilities or firm commitments. Gains and losses on derivatives that are designated as cash flow hedges are recorded as a component of Accumulated other comprehensive loss until the underlying hedged transactions are recognized in earnings. The foreign currency transaction gain or loss of our non-derivative financial instruments and the changes in the fair value of derivatives designated as hedges of our net investment in foreign operations and investments are recognized as a component of Accumulated other comprehensive loss along with the associated foreign currency translation adjustment of the foreign operation or investment. 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 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 September 30, 2017 and December 31, 2016 , approximately 48.8% and 40.5% , respectively, of our long-term debt was effectively fixed. We use interest rate swap agreements to modify our exposure to interest rate movements and to manage our interest expense. Market risk associated with our long-term fixed rate debt is the potential increase in fair value resulting from a decrease in interest rates. We use interest rate swap agreements that effectively convert a portion of our fixed-rate debt to a floating-rate basis to manage this risk. At September 30, 2017 and December 31, 2016 , we maintained interest rate swap agreements on the following fixed-rate debt instruments: Debt Instrument Swap Notional as of September 30, 2017 (In thousands) Maturity Debt Fixed Rate Swap Floating Rate: LIBOR plus All-in Swap Floating Rate as of September 30, 2017 Oasis of the Seas term loan $ 157,500 October 2021 5.41% 3.87% 5.29% Unsecured senior notes 650,000 November 2022 5.25% 3.63% 4.95% $ 807,500 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 September 30, 2017 and December 31, 2016 , we maintained interest rate swap agreements on the following floating-rate debt instruments: Debt Instrument Swap Notional as of September 30, 2017 (In thousands) Maturity Debt Floating Rate All-in Swap Fixed Rate Celebrity Reflection term loan $ 409,063 October 2024 LIBOR plus 0.40% 2.85% Quantum of the Seas term loan 581,875 October 2026 LIBOR plus 1.30% 3.74% Anthem of the Seas term loan 604,167 April 2027 LIBOR plus 1.30% 3.86% Ovation of the Seas term loan 760,833 April 2028 LIBOR plus 1.00% 3.16% Harmony of the Seas term loan (1) 751,362 May 2028 EURIBOR plus 1.15% 2.26% $ 3,107,300 (1) Interest rate swap agreements hedging the Euro-denominated term loan for Harmony of the Seas include EURIBOR zero-floors matching the hedged debt EURIBOR zero-floor. Amount presented is based on the exchange rate as of September 30, 2017 . These interest rate swap agreements are accounted for as cash flow hedges. The notional amount of interest rate swap agreements related to outstanding debt as of September 30, 2017 and December 31, 2016 was $3.9 billion and $4.0 billion , respectively. Foreign Currency Exchange Rate Risk Derivative Instruments Our primary exposure to foreign currency exchange rate risk relates to our ship construction contracts denominated in Euros, our foreign currency denominated debt and our international business operations. We enter into foreign currency forward contracts, collar options and cross currency swap agreements to manage portions of the exposure to movements in foreign currency exchange rates. As of September 30, 2017 , the aggregate cost of our ships on order, not including the TUI Cruises' ships on order and those subject to conditions to effectiveness, was approximately $13.0 billion , of which we had deposited $323.2 million as of such date. At September 30, 2017 and December 31, 2016 , approximately 53.8% and 66.7% , respectively, of the aggregate cost of the ships under construction was exposed to fluctuations in the Euro exchange rate. The majority of our foreign currency forward contracts, collar options and cross currency swap agreements are accounted for as cash flow, fair value or net investment hedges depending on the designation of the related hedge. On a regular basis, we enter into foreign currency forward contracts and, from time to time, we utilize cross-currency swap agreements to minimize the volatility resulting from the remeasurement of net monetary assets and liabilities denominated in a currency other than our functional currency or the functional currencies of our foreign subsidiaries. During the third quarter of 2017 , we maintained an average of approximately $823.0 million of these foreign currency forward contracts. These instruments are not designated as hedging instruments. Changes in the fair value of the foreign currency forward contracts resulted in a gain (loss), of approximately $22.0 million and $(2.5) million during the quarters ended September 30, 2017 and September 30, 2016 , respectively, and approximately $57.1 million and $(11.8) million , during the nine months ended September 30, 2017 and September 30, 2016 , respectively, that were recognized in earnings within Other expense in our consolidated statements of comprehensive income (loss). We consider our investments in our foreign operations to be denominated in relatively stable currencies and of a long-term nature. As of September 30, 2017 , we maintained foreign currency forward contracts and designated them as hedges of a portion of our net investment in TUI cruises of €101.0 million , or approximately $119.4 million based on the exchange rate at September 30, 2017 . These forward currency contracts mature in October 2021. The notional amount of outstanding foreign exchange contracts including our forward contracts as of September 30, 2017 and December 31, 2016 was $4.1 billion and $1.3 billion , respectively. Non-Derivative Instruments We also address the exposure of our investments in foreign operations by denominating a portion of our debt in our subsidiaries’ and investments’ functional currencies and designating it as a hedge of these subsidiaries and investments. We had designated debt as a hedge of our net investments in TUI Cruises of approximately €241.0 million , or approximately $284.9 million , as of September 30, 2017 . Fuel Price Risk Our exposure to market risk for changes in fuel prices relates primarily to the consumption of fuel on our ships. We use fuel swap agreements to mitigate the financial impact of fluctuations in fuel prices. Our fuel swap agreements are accounted for as cash flow hedges. At September 30, 2017 , we have hedged the variability in future cash flows for certain forecasted fuel transactions occurring through 2021 . As of September 30, 2017 and December 31, 2016 , we had the following outstanding fuel swap agreements: Fuel Swap Agreements As of September 30, 2017 As of December 31, 2016 (metric tons) 2017 218,600 799,065 2018 756,700 616,300 2019 668,500 521,000 2020 531,200 306,500 2021 224,900 — Fuel Swap Agreements As of September 30, 2017 As of December 31, 2016 (% hedged) Projected fuel purchases: 2017 65 % 60 % 2018 56 % 44 % 2019 47 % 35 % 2020 36 % 20 % 2021 14 % — At September 30, 2017 and December 31, 2016 , $81.7 million and $138.5 million , respectively, of estimated unrealized net loss associated with our cash flow hedges pertaining to fuel swap agreements were expected to be reclassified to earnings from Accumulated other comprehensive loss within the next twelve months. Reclassification is expected to occur as the result of fuel consumption associated with our hedged forecasted fuel purchases. The fair value and line item caption of derivative instruments recorded within our consolidated balance sheets were as follows: Fair Value of Derivative Instruments Asset Derivatives Liability Derivatives Balance Sheet Location As of September 30, 2017 As of December 31, 2016 Balance Sheet Location As of September 30, 2017 As of December 31, 2016 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 $ 1,760 $ 5,246 Other long-term liabilities $ 52,611 $ 57,679 Foreign currency forward contracts Derivative financial instruments 45,583 — Derivative financial instruments — 5,574 Foreign currency forward contracts Other assets 136,534 — Other long-term liabilities 4,479 68,165 Fuel swaps Derivative financial instruments 7,213 — Derivative financial instruments 81,981 129,486 Fuel swaps Other assets 29,721 13,608 Other long-term liabilities 40,517 95,125 Total derivatives designated as hedging instruments under 815-20 220,811 18,854 179,588 356,029 Derivatives not designated as hedging instruments under ASC 815-20 Fuel swaps Derivative financial instruments — — Derivative financial instruments 7,352 11,532 Fuel swaps Other Assets 447 543 Other long-term liabilities 2,223 5,936 Total derivatives not designated as hedging instruments under 815-20 447 543 9,575 17,468 Total derivatives $ 221,258 $ 19,397 $ 189,163 $ 373,497 (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 September 30, 2017 As of December 31, 2016 (In thousands) Foreign currency debt Current portion of long-term debt $ 69,023 $ 61,601 Foreign currency debt Long-term debt 215,863 249,624 $ 284,886 $ 311,225 The effect of derivative instruments qualifying and designated as hedging instruments and the related hedged items in fair value hedges on the consolidated statements of comprehensive income (loss) was as follows: Derivatives and Related Hedged Items under ASC 815-20 Fair Value Hedging Relationships Location of Gain (Loss) Recognized in Income on Derivative and Hedged Item Amount of Gain (Loss) Amount of Gain (Loss) Quarter Ended September 30, 2017 Quarter Ended September 30, 2016 Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 Quarter Ended September 30, 2017 Quarter Ended September 30, 2016 Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 (In thousands) Interest rate swaps Interest expense, net of interest capitalized $ 600 $ 1,737 $ 2,642 $ 6,075 $ — $ — $ — $ 7,203 Interest rate swaps Other expense (545 ) (7,662 ) 3,275 28,592 1,013 7,423 (841 ) (24,878 ) $ 55 $ (5,925 ) $ 5,917 $ 34,667 $ 1,013 $ 7,423 $ (841 ) $ (17,675 ) The effect of derivative instruments qualifying and designated as cash flow hedging instruments on the consolidated financial statements was as follows: Derivatives Amount of Gain (Loss) Recognized in (Effective Portion) Location of Amount of Gain (Loss) Reclassified from Quarter Ended September 30, 2017 Quarter Ended September 30, 2016 Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 Quarter Ended September 30, 2017 Quarter Ended September 30, 2016 Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 (In thousands) Interest rate swaps $ (3,154 ) $ 6,598 $ (24,703 ) $ (126,505 ) Interest expense, net of interest capitalized $ (7,860 ) $ (11,953 ) $ (24,580 ) $ (32,019 ) Foreign currency forward contracts 122,211 11,405 221,861 22,715 Depreciation and amortization expenses (2,710 ) (2,710 ) (8,130 ) (5,408 ) Foreign currency forward contracts — — — — Other expense (1,512 ) (3,465 ) (9,187 ) (10,206 ) Foreign currency forward contracts — — — — Other operating — — — (207 ) Foreign currency collar options — — — — Depreciation and amortization expenses (602 ) (601 ) (1,806 ) (1,806 ) Fuel swaps — — — — Other expense 1,758 2,760 6,533 9,356 Fuel swaps 67,878 (3,090 ) 33,183 94,640 Fuel (32,386 ) (64,654 ) (114,149 ) (223,484 ) $ 186,935 $ 14,913 $ 230,341 $ (9,150 ) $ (43,312 ) $ (80,623 ) $ (151,319 ) $ (263,774 ) Derivatives under ASC 815-20 Cash Flow Hedging Relationships Location of Gain (Loss) Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) Quarter Ended September 30, 2017 Quarter Ended September 30, 2016 Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 (In thousands) Interest rate swaps Other expense — 90 — (1,152 ) Foreign currency forward contracts Other expense 75 — 100 (57 ) Fuel swaps Other expense 3,351 (8 ) 1,014 (3,949 ) $ 3,426 $ 82 $ 1,114 $ (5,158 ) The effect of non-derivative instruments qualifying and designated as net investment hedging instruments on the consolidated financial statements was as follows: Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) (Effective Portion) Non-derivative instruments under ASC 815-20 Net Quarter Ended September 30, 2017 Quarter Ended September 30, 2016 Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 (In thousands) Foreign Currency Debt $ 7,949 $ (3,382 ) $ 34,206 $ 1,313 $ 7,949 $ (3,382 ) $ 34,206 $ 1,313 There was no amount recognized in income (ineffective portion and amount excluded from effectiveness testing) for the quarters and nine months ended September 30, 2017 and September 30, 2016 , respectively. The effect of derivatives not designated as hedging instruments on the consolidated financial statements was as follows: Amount of Gain (Loss) Recognized in Income on Derivatives Derivatives Not Designated as Hedging Location of Quarter Ended September 30, 2017 Quarter Ended September 30, 2016 Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 (In thousands) Foreign currency forward contracts Other expense $ 21,951 $ (2,464 ) $ 57,019 $ (11,712 ) Fuel swaps Other expense (175 ) (1,172 ) (255 ) (1,224 ) $ 21,776 $ (3,636 ) $ 56,764 $ (12,936 ) Credit Related Contingent Features Our current interest rate derivative instruments may require us to post collateral if our Standard & Poor’s and Moody’s credit ratings are below specified levels. Specifically, if on the fifth anniversary of executing a derivative instrument, or on any succeeding fifth-year anniversary, our credit ratings for our senior unsecured debt were to be rated below BBB- by Standard & Poor’s and Baa3 by Moody’s, then the counterparty may periodically demand that we post collateral in an amount equal to the difference between (i) the net market value of all derivative transactions with such counterparty that have reached their fifth year anniversary, to the extent negative, and (ii) the applicable minimum call amount. The amount of collateral required to be posted following such event will change as, and to the extent, our net liability position increases or decreases by more than the applicable minimum call amount. If our credit rating for our senior unsecured debt is subsequently equal to or above BBB- by Standard & Poor’s or Baa3 by Moody’s, then any collateral posted at such time will be released to us and we will no longer be required to post collateral unless we meet the collateral trigger requirement at the next fifth-year anniversary. At September 30, 2017 , four of our interest rate derivative instruments had reached their fifth anniversary; however, our senior unsecured debt credit rating was BBB- by Standard & Poor’s and Baa3 by Moody’s and, accordingly, we were not required to post any collateral as of such date. As of December 31, 2016, two of our interest rate derivative instruments had reached their fifth anniversary. As our unsecured debt credit rating at December 31, 2016 was below BBB-/Baa3, we had posted $7.2 million in collateral as of such date. Consistent with the provisions of our interest rate derivatives instruments, all collateral that was posted with our counterparties was returned upon reaching investment grade. |
Summary of Significant Accoun17
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Accounting | Basis for Preparation of Consolidated Financial Statements The unaudited consolidated financial statements are presented pursuant to the rules and regulations of the Securities and Exchange Commission. In our opinion, these statements include all adjustments necessary for a fair statement of the results of the interim periods reported herein. Adjustments consist only of normal recurring items, except for any discussed in the notes below. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted as permitted by such rules and regulations. Estimates are required for the preparation of financial statements in accordance with GAAP and actual results could differ from these estimates. Refer to Note 2. Summary of Significant Accounting Policies in this Quarterly Report on Form 10-Q and in our Annual Report on Form 10-K for the year ended December 31, 2016 for a discussion of our significant accounting policies. |
Basis of Consolidation | All significant intercompany accounts and transactions are eliminated in consolidation. We consolidate entities over which we have control, usually evidenced by a direct ownership interest of greater than 50% , and variable interest entities where we are determined to be the primary beneficiary. Refer to Note 5. Other Assets for further information regarding our variable interest entities. For affiliates we do not control but over which we have significant influence on financial and operating policies, usually evidenced by a direct ownership interest from 20% to 50% , the investment is accounted for using the equity method. Prior to January 1, 2016, we consolidated the operating results of Pullmantur Holdings on a two -month reporting lag to allow for more timely preparation of our consolidated financial statements. Effective January 1, 2016, we eliminated the two-month reporting lag to reflect Pullmantur Holding's financial position, results of operations and cash flows concurrently and consistently with the fiscal calendar of the Company (the "elimination of the Pullmantur reporting lag"). The elimination of the Pullmantur reporting lag represented a change in accounting principle which we believed to be preferable because it provided more current information to the users of our financial statements. A change in accounting principle requires retrospective application, if material. The impact of the elimination of the Pullmantur reporting lag was immaterial to prior periods and was immaterial for our fiscal year ended December 31, 2016. As a result, we have accounted for this change in accounting principle in our consolidated results for the first quarter of 2016. Accordingly, the results of Pullmantur Holdings for November and December 2015 are included in our statement of comprehensive income (loss) for the nine months ended September 30, 2016 . The effect of this change was a decrease to net income of $21.7 million , which has been reported within Other expense in our consolidated statements of comprehensive income (loss) for the nine months ended September 30, 2016 . |
New Accounting Pronouncements | Recent Accounting Pronouncements Revenue from Contracts with Customers In May 2014, amended GAAP guidance was issued to clarify the principles used to recognize revenue for all entities. The guidance also requires more detailed disclosures and provides additional guidance for transactions that were not comprehensively addressed in the prior accounting guidance. This guidance must be applied using one of two retrospective application methods and will be effective for our annual reporting period beginning after December 15, 2017, including interim periods therein. We have made significant progress toward completing our evaluation of potential changes to our core revenues using the five-step model supported by the new revenue standard. Currently, we are in the process of finalizing our analysis and quantifying the effects of adoption, if any, on how we account for our customer loyalty programs and promotional offerings, as the new standard has changed the method of accounting for loyalty points from a cost-based model to a revenue deferral model using a relative stand-alone selling price method. We expect to complete this analysis and conclude our evaluation on the impact of adopting this new standard on our consolidated financial statements during the fourth quarter of fiscal 2017. Based on our assessment to date, we do not expect the adoption of the new standard to materially change the timing of recognition of our core revenues, but we do anticipate enhancing our disclosures with respect to our revenue recognition policies in compliance with the new standard. Upon adoption, we intend to elect the modified retrospective method. This will involve applying the guidance retrospectively only to the most current period presented in the consolidated financial statements and recognizing the cumulative effect of initially applying the guidance as an adjustment to the January 1, 2018 opening balance of retained earnings. Leases In February 2016, amended GAAP guidance was issued to increase the transparency and comparability of lease accounting among organizations. For leases with a term greater than 12 months, the amendments require the lease rights and obligations arising from the leasing arrangements, including operating leases, to be recognized as assets and liabilities on the balance sheet. The amendments also expand the required disclosures surrounding leasing arrangements. The guidance must be applied using a retrospective application method and will be effective for financial statements issued for fiscal years beginning after December 15, 2018 and interim periods within those years. Early adoption is permitted. We are currently evaluating the impact of the adoption of this newly issued guidance to our consolidated financial statements. Classification of Certain Cash Receipts and Cash Payments In August 2016, amended GAAP guidance was issued to clarify how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments are aimed at reducing the existing diversity in practice. The guidance should be applied using a retrospective transition method to each period presented and will be effective for annual periods beginning after December 15, 2017 and interim periods within those annual periods. Early adoption is permitted, including adoption in an interim period. We intend to adopt the guidance on the date of initial application, January 1, 2018. The adoption of this newly issued guidance is not expected to have a material impact to our consolidated financial statements. Intra-Entity Transfers of Assets Other Than Inventory In October 2016, amended GAAP guidance was issued that requires the income tax consequences of an intra-entity transfer of an asset, other than inventory, to be recognized at the time that the transfer occurs, rather than when the asset is sold to an outside party. The new guidance is effective for annual and interim reporting periods beginning after December 15, 2017. Early adoption is permitted as of the beginning of an annual period for which financial statements have not been issued. The guidance is required to be adopted retrospectively by recording a cumulative-effect adjustment to retained earnings as of the beginning of the adoption period. The adoption of this newly issued guidance is not expected to have a material impact to our consolidated financial statements. Service Concession Arrangements In May 2017, amended GAAP guidance was issued to clarify who should be viewed as the customer under service concession arrangements. A service concession arrangement is an arrangement under which a public sector entity (“grantor”), such as a Port Authority, grants a private entity (“operator”), such as the Company, the right to operate the grantor's infrastructure for a specified period of time. The amended guidance will require the Company to evaluate the relationship with the grantor and identify the multiple performance obligations that may exist under these concession arrangements, including consideration of construction services that may be performed, operational services, and any other maintenance or ancillary services performed under the service concession. In addition, the amended guidance will require that all revenue streams identified under such arrangements be evaluated with the grantor as the customer, irrespective of whether some of the revenues are paid by third-party users of the infrastructure under concession. The clarification will enable a more consistent application of the new Revenue from Contracts with Customers guidance, which along with this clarification guidance, will be effective for our annual reporting period beginning after December 15, 2017, including interim periods therein. This guidance must be applied using one of two retrospective application methods. We are currently evaluating the impact of the adoption of this newly issued guidance to our consolidated financial statements. Derivatives and Hedging In August 2017, amended GAAP guidance was issued to simplify and improve the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities in its financial statements. In addition to changes in designation and measurement for qualifying hedge relationships, the guidance requires an entity to report the earnings effect of the hedging instrument in the same income statement line item in which the earnings effect of the hedged item is reported. As a result, hedge ineffectiveness will no longer be separately measured or reported. This guidance will be effective for our annual reporting period beginning after December 15, 2018, including interim periods therein. Early adoption is permitted in any interim period after issuance of this guidance. All transition requirements and elections should be applied to hedging relationships existing on the date of adoption. The effect of the adoption should be reflected as of the beginning of the fiscal year of adoption. We are currently evaluating the impact of the adoption of this newly issued guidance to our consolidated financial statements. |
Other | Other Revenues and expenses include port costs that vary with guest head counts. |
Reclassification | Reclassifications For the third quarter and nine months ended September 30, 2016 , restructuring charges of $1.9 million and $6.6 million , respectively, have been reclassified into Marketing, selling and administrative expenses in the consolidated statements of comprehensive income (loss) in order to conform to the current year presentation. For the nine months ended September 30, 2016 , share-based compensation expense of $22.0 million , equity investment income of $94.8 million and amortization of debt issuance costs of $22.9 million , have been reclassified in the consolidated statements of cash flows from Other, net to Share-based compensation expense , Equity investment income and Amortization of debt issuance costs , respectively, within Net cash provided by operating activities in order to conform to the current year presentation. Additionally, for the nine months ended September 30, 2016 , amortization of debt issuance costs of $11.3 million and $5.3 million , have been reclassified from Decrease (increase) in prepaid expenses and other assets and from Increase in accrued expenses and other liabilities , respectively, in the consolidated statements of cash flows to Amortization of debt issuance costs , within Net cash provided by operating activities in order to conform to the current year presentation. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Reconciliation Between Basic and Diluted Earnings Per Share | A reconciliation between basic and diluted earnings per share is as follows (in thousands, except per share data): Quarter Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Net income for basic and diluted earnings per share $ 752,842 $ 693,257 $ 1,337,094 $ 1,022,302 Weighted-average common shares outstanding 214,694 214,819 214,882 215,663 Dilutive effect of stock options, performance share awards and restricted stock awards 1,130 848 1,023 912 Diluted weighted-average shares outstanding 215,824 215,667 215,905 216,575 Basic earnings per share $ 3.51 $ 3.23 $ 6.22 $ 4.74 Diluted earnings per share $ 3.49 $ 3.21 $ 6.19 $ 4.72 |
Other Assets Other Assets (Tabl
Other Assets Other Assets (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Other Assets [Abstract] | |
Schedule of Other Nonoperating Income (Expense) | The following table sets forth information regarding our investments accounted for under the equity method of accounting, including the entities discussed above, (in thousands): Quarter Ended September 30, 2017 Quarter Ended September 30, 2016 Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 Share of equity income from investments $ 85,120 $ 46,539 $ 120,359 $ 94,832 Dividends received $ 49,865 $ 47,491 $ 107,267 $ 71,370 |
Schedule of Related Party Transactions | We recorded the following as it relates to these services in our operating results within our consolidated statements of comprehensive income (loss) (in thousands): Quarter Ended September 30, 2017 Quarter Ended September 30, 2016 Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 Revenues $ 14,054 $ 9,300 $ 39,987 $ 17,888 Expenses $ 3,770 $ 2,410 $ 11,503 $ 8,930 |
Changes in Accumulated Other 20
Changes in Accumulated Other Comprehensive (Loss) Income (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Schedule of changes in accumulated other comprehensive income (loss) by component | The following table presents the changes in accumulated other comprehensive income (loss) by component for the nine months ended September 30, 2017 and 2016 (in thousands): Accumulated Other Comprehensive Income (Loss) for the Nine Months Ended September 30, 2017 Accumulated Other Comprehensive Income (Loss) for the Nine Months Ended September 30, 2016 Changes Changes in Foreign Accumulated other Changes Changes in Foreign Accumulated other Accumulated comprehensive loss at beginning of the year $ (820,850 ) $ (28,083 ) $ (67,551 ) $ (916,484 ) $ (1,232,073 ) $ (26,447 ) $ (69,913 ) $ (1,328,433 ) Other comprehensive income (loss) before reclassifications 230,341 (7,130 ) 14,210 237,421 (9,150 ) (13,521 ) 8,423 (14,248 ) Amounts reclassified from accumulated other comprehensive loss 151,319 850 — 152,169 263,774 1,373 — 265,147 Net current-period other comprehensive income (loss) 381,660 (6,280 ) 14,210 389,590 254,624 (12,148 ) 8,423 250,899 Ending balance $ (439,190 ) $ (34,363 ) $ (53,341 ) $ (526,894 ) $ (977,449 ) $ (38,595 ) $ (61,490 ) $ (1,077,534 ) |
Schedule of reclassifications out of accumulated other comprehensive income (loss) | The following table presents reclassifications out of accumulated other comprehensive income (loss) for the quarters and nine months ended September 30, 2017 and 2016 (in thousands): Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income Details About Accumulated Other Comprehensive Income (Loss) Components Quarter Ended September 30, 2017 Quarter Ended September 30, 2016 Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 Affected Line Item in Statements of Loss on cash flow derivative hedges: Interest rate swaps $ (7,860 ) $ (11,953 ) $ (24,580 ) $ (32,019 ) Interest expense, net of interest capitalized Foreign currency forward contracts (2,710 ) (2,710 ) (8,130 ) (5,408 ) Depreciation and amortization expenses Foreign currency forward contracts (1,512 ) (3,465 ) (9,187 ) (10,206 ) Other expense Foreign currency forward contracts — — — (207 ) Other operating Foreign currency collar options (602 ) (601 ) (1,806 ) (1,806 ) Depreciation and amortization expenses Fuel swaps 1,758 2,760 6,533 9,356 Other expense Fuel swaps (32,386 ) (64,654 ) (114,149 ) (223,484 ) Fuel (43,312 ) (80,623 ) (151,319 ) (263,774 ) Amortization of defined benefit plans: Actuarial loss (293 ) (285 ) (850 ) (1,373 ) Payroll and related (293 ) (285 ) (850 ) (1,373 ) Total reclassifications for the period $ (43,605 ) $ (80,908 ) $ (152,169 ) $ (265,147 ) |
Fair Value Measurements and D21
Fair Value Measurements and Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments | |
Fair Value Measurements, Nonrecurring | The estimated fair value of our financial instruments that are not measured at fair value, categorized based upon the fair value hierarchy, are as follows (in thousands): Fair Value Measurements at September 30, 2017 Using Fair Value Measurements at December 31, 2016 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) $ 139,950 $ 139,950 $ 139,950 $ — $ — $ 132,603 $ 132,603 $ 132,603 $ — $ — Total Assets $ 139,950 $ 139,950 $ 139,950 $ — $ — $ 132,603 $ 132,603 $ 132,603 $ — $ — Liabilities: Long-term debt (including current portion of long-term debt) (5) $ 7,557,801 $ 8,111,168 $ — $ 8,111,168 $ — $ 9,347,051 $ 9,859,266 $ — $ 9,859,266 $ — Total Liabilities $ 7,557,801 $ 8,111,168 $ — $ 8,111,168 $ — $ 9,347,051 $ 9,859,266 $ — $ 9,859,266 $ — (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 September 30, 2017 and December 31, 2016 . (4) Consists of cash and marketable securities with original maturities of less than 90 days. (5) Consists of unsecured revolving credit facilities, senior notes, senior debentures and term loans. This does not include our capital lease obligations. |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Assets and liabilities that are recorded at fair value have been categorized based upon the fair value hierarchy. The following table presents information about the Company’s financial instruments recorded at fair value on a recurring basis (in thousands): Fair Value Measurements at September 30, 2017 Using Fair Value Measurements at December 31, 2016 Using Description Total Level 1 (1) Level 2 (2) Level 3 (3) Total Level 1 (1) Level 2 (2) Level 3 (3) Assets: Derivative financial instruments (4) $ 221,258 $ — $ 221,258 $ — $ 19,397 $ — $ 19,397 $ — Investments (5) $ 3,237 3,237 — — $ 3,576 3,576 — — Total Assets $ 224,495 $ 3,237 $ 221,258 $ — $ 22,973 $ 3,576 $ 19,397 $ — Liabilities: Derivative financial instruments (6) $ 189,163 $ — $ 189,163 $ — $ 373,497 $ — $ 373,497 $ — Total Liabilities $ 189,163 $ — $ 189,163 $ — $ 373,497 $ — $ 373,497 $ — (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 September 30, 2017 and December 31, 2016 . (4) Consists of foreign currency forward contracts, interest rate swaps and fuel swaps. Please refer to the “Fair Value of Derivative Instruments” table for breakdown by instrument type. (5) Consists of exchange-traded equity securities and mutual funds reported within Other assets in our consolidated balance sheets. (6) Consists of foreign currency forward contracts, interest rate swaps and fuel swaps. Please refer to the “Fair Value of Derivative Instruments” table for breakdown by instrument type. |
Offsetting Assets | The following table presents information about the Company’s offsetting of financial assets under master netting agreements with derivative counterparties: Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements As of September 30, 2017 As of December 31, 2016 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 $ 221,258 $ (117,065 ) $ — $ 104,193 $ 19,397 $ (19,397 ) $ — $ — Total $ 221,258 $ (117,065 ) $ — $ 104,193 $ 19,397 $ (19,397 ) $ — $ — |
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 September 30, 2017 As of December 31, 2016 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 $ (189,163 ) $ 117,065 $ — $ (72,098 ) $ (373,497 ) $ 19,397 $ 7,213 $ (346,887 ) Total $ (189,163 ) $ 117,065 $ — $ (72,098 ) $ (373,497 ) $ 19,397 $ 7,213 $ (346,887 ) |
Schedule of Price Risk Derivatives | As of September 30, 2017 and December 31, 2016 , we had the following outstanding fuel swap agreements: Fuel Swap Agreements As of September 30, 2017 As of December 31, 2016 (metric tons) 2017 218,600 799,065 2018 756,700 616,300 2019 668,500 521,000 2020 531,200 306,500 2021 224,900 — Fuel Swap Agreements As of September 30, 2017 As of December 31, 2016 (% hedged) Projected fuel purchases: 2017 65 % 60 % 2018 56 % 44 % 2019 47 % 35 % 2020 36 % 20 % 2021 14 % — |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The fair value and line item caption of derivative instruments recorded within our consolidated balance sheets were as follows: Fair Value of Derivative Instruments Asset Derivatives Liability Derivatives Balance Sheet Location As of September 30, 2017 As of December 31, 2016 Balance Sheet Location As of September 30, 2017 As of December 31, 2016 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 $ 1,760 $ 5,246 Other long-term liabilities $ 52,611 $ 57,679 Foreign currency forward contracts Derivative financial instruments 45,583 — Derivative financial instruments — 5,574 Foreign currency forward contracts Other assets 136,534 — Other long-term liabilities 4,479 68,165 Fuel swaps Derivative financial instruments 7,213 — Derivative financial instruments 81,981 129,486 Fuel swaps Other assets 29,721 13,608 Other long-term liabilities 40,517 95,125 Total derivatives designated as hedging instruments under 815-20 220,811 18,854 179,588 356,029 Derivatives not designated as hedging instruments under ASC 815-20 Fuel swaps Derivative financial instruments — — Derivative financial instruments 7,352 11,532 Fuel swaps Other Assets 447 543 Other long-term liabilities 2,223 5,936 Total derivatives not designated as hedging instruments under 815-20 447 543 9,575 17,468 Total derivatives $ 221,258 $ 19,397 $ 189,163 $ 373,497 (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 September 30, 2017 As of December 31, 2016 (In thousands) Foreign currency debt Current portion of long-term debt $ 69,023 $ 61,601 Foreign currency debt Long-term debt 215,863 249,624 $ 284,886 $ 311,225 |
Non Derivative Instruments Qualifying and Designated as Hedging Instruments in Net Investment Hedges | The effect of non-derivative instruments qualifying and designated as net investment hedging instruments on the consolidated financial statements was as follows: Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) (Effective Portion) Non-derivative instruments under ASC 815-20 Net Quarter Ended September 30, 2017 Quarter Ended September 30, 2016 Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 (In thousands) Foreign Currency Debt $ 7,949 $ (3,382 ) $ 34,206 $ 1,313 $ 7,949 $ (3,382 ) $ 34,206 $ 1,313 |
Not Designated as Hedging Instrument | |
Derivative Instruments | |
Derivative Instruments, Gain (Loss) | The effect of derivatives not designated as hedging instruments on the consolidated financial statements was as follows: Amount of Gain (Loss) Recognized in Income on Derivatives Derivatives Not Designated as Hedging Location of Quarter Ended September 30, 2017 Quarter Ended September 30, 2016 Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 (In thousands) Foreign currency forward contracts Other expense $ 21,951 $ (2,464 ) $ 57,019 $ (11,712 ) Fuel swaps Other expense (175 ) (1,172 ) (255 ) (1,224 ) $ 21,776 $ (3,636 ) $ 56,764 $ (12,936 ) |
Fair Value Hedging | |
Derivative Instruments | |
Schedule of Interest Rate Derivatives | At September 30, 2017 and December 31, 2016 , we maintained interest rate swap agreements on the following fixed-rate debt instruments: Debt Instrument Swap Notional as of September 30, 2017 (In thousands) Maturity Debt Fixed Rate Swap Floating Rate: LIBOR plus All-in Swap Floating Rate as of September 30, 2017 Oasis of the Seas term loan $ 157,500 October 2021 5.41% 3.87% 5.29% Unsecured senior notes 650,000 November 2022 5.25% 3.63% 4.95% $ 807,500 |
Derivative Instruments, Gain (Loss) | The effect of derivative instruments qualifying and designated as hedging instruments and the related hedged items in fair value hedges on the consolidated statements of comprehensive income (loss) was as follows: Derivatives and Related Hedged Items under ASC 815-20 Fair Value Hedging Relationships Location of Gain (Loss) Recognized in Income on Derivative and Hedged Item Amount of Gain (Loss) Amount of Gain (Loss) Quarter Ended September 30, 2017 Quarter Ended September 30, 2016 Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 Quarter Ended September 30, 2017 Quarter Ended September 30, 2016 Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 (In thousands) Interest rate swaps Interest expense, net of interest capitalized $ 600 $ 1,737 $ 2,642 $ 6,075 $ — $ — $ — $ 7,203 Interest rate swaps Other expense (545 ) (7,662 ) 3,275 28,592 1,013 7,423 (841 ) (24,878 ) $ 55 $ (5,925 ) $ 5,917 $ 34,667 $ 1,013 $ 7,423 $ (841 ) $ (17,675 ) |
Cash flow hedge | |
Derivative Instruments | |
Schedule of Interest Rate Derivatives | At September 30, 2017 and December 31, 2016 , we maintained interest rate swap agreements on the following floating-rate debt instruments: Debt Instrument Swap Notional as of September 30, 2017 (In thousands) Maturity Debt Floating Rate All-in Swap Fixed Rate Celebrity Reflection term loan $ 409,063 October 2024 LIBOR plus 0.40% 2.85% Quantum of the Seas term loan 581,875 October 2026 LIBOR plus 1.30% 3.74% Anthem of the Seas term loan 604,167 April 2027 LIBOR plus 1.30% 3.86% Ovation of the Seas term loan 760,833 April 2028 LIBOR plus 1.00% 3.16% Harmony of the Seas term loan (1) 751,362 May 2028 EURIBOR plus 1.15% 2.26% $ 3,107,300 (1) Interest rate swap agreements hedging the Euro-denominated term loan for Harmony of the Seas include EURIBOR zero-floors matching the hedged debt EURIBOR zero-floor. Amount presented is based on the exchange rate as of September 30, 2017 . |
Derivative Instruments, Gain (Loss) | Derivatives under ASC 815-20 Cash Flow Hedging Relationships Location of Gain (Loss) Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) Quarter Ended September 30, 2017 Quarter Ended September 30, 2016 Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 (In thousands) Interest rate swaps Other expense — 90 — (1,152 ) Foreign currency forward contracts Other expense 75 — 100 (57 ) Fuel swaps Other expense 3,351 (8 ) 1,014 (3,949 ) $ 3,426 $ 82 $ 1,114 $ (5,158 ) The effect of derivative instruments qualifying and designated as cash flow hedging instruments on the consolidated financial statements was as follows: Derivatives Amount of Gain (Loss) Recognized in (Effective Portion) Location of Amount of Gain (Loss) Reclassified from Quarter Ended September 30, 2017 Quarter Ended September 30, 2016 Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 Quarter Ended September 30, 2017 Quarter Ended September 30, 2016 Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 (In thousands) Interest rate swaps $ (3,154 ) $ 6,598 $ (24,703 ) $ (126,505 ) Interest expense, net of interest capitalized $ (7,860 ) $ (11,953 ) $ (24,580 ) $ (32,019 ) Foreign currency forward contracts 122,211 11,405 221,861 22,715 Depreciation and amortization expenses (2,710 ) (2,710 ) (8,130 ) (5,408 ) Foreign currency forward contracts — — — — Other expense (1,512 ) (3,465 ) (9,187 ) (10,206 ) Foreign currency forward contracts — — — — Other operating — — — (207 ) Foreign currency collar options — — — — Depreciation and amortization expenses (602 ) (601 ) (1,806 ) (1,806 ) Fuel swaps — — — — Other expense 1,758 2,760 6,533 9,356 Fuel swaps 67,878 (3,090 ) 33,183 94,640 Fuel (32,386 ) (64,654 ) (114,149 ) (223,484 ) $ 186,935 $ 14,913 $ 230,341 $ (9,150 ) $ (43,312 ) $ (80,623 ) $ (151,319 ) $ (263,774 ) |
General - Narrative (Details)
General - Narrative (Details) $ in Millions | 1 Months Ended | 9 Months Ended | 12 Months Ended | |
Jul. 31, 2016 | Sep. 30, 2017shipbrand | Sep. 30, 2016USD ($) | Dec. 31, 2015 | |
Schedule of Equity Method Investments [Line Items] | ||||
Number of cruise brands | brand | 3 | |||
Maximum | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Investment in a joint venture, percentage of interest | 50.00% | |||
Minimum | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Investment in a joint venture, percentage of interest | 20.00% | |||
TUI Cruises | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Investment in a joint venture, percentage of interest | 50.00% | |||
Pullmantur and CDF Croisieres de France | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Investment in a joint venture, percentage of interest | 49.00% | |||
Percentage of subsidiary which has been sold | 51.00% | |||
Retained ownership percentage of subsidiary after sale | 49.00% | 49.00% | ||
Number of cruise ships | ship | 4 | |||
Time lag in consolidation | 2 months | |||
Other income (expense) | Pullmantur and CDF Croisieres de France | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Income (loss) from Subsidiaries (two months lag elimination) | $ | $ (21.7) |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Gross amount of port costs included in passenger ticket revenues | $ 135,900 | $ 158,700 | $ 413,700 | $ 443,100 |
Share-based compensation expense | (52,469) | (22,041) | ||
Equity investment income | $ (85,120) | (46,539) | (120,359) | (94,832) |
Amortization of debt issuance costs | $ (37,562) | (39,425) | ||
Reclassification adjustment | Reclassification to Marketing, Selling and Administrative Expenses | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Restructuring charges | $ 1,900 | 6,600 | ||
Reclassification adjustment | Share-based Compensation Expense (Cash Flows-Operating Activities) | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Share-based compensation expense | (22,000) | |||
Reclassification adjustment | Equity Investment Income (Cash Flows-Operating Activities) | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Equity investment income | (94,800) | |||
Reclassification adjustment | Amortization of Debt Issuance Costs (Cash Flows-Operating Activities) | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Amortization of debt issuance costs | (22,900) | |||
Reclassification adjustment | Other, net (Cash Flows-Operating Activities) [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Share-based compensation expense | 22,000 | |||
Equity investment income | 94,800 | |||
Amortization of debt issuance costs | 22,900 | |||
Reclassification adjustment | Reclassification From Decrease (Increase) In Prepaid Expenses And Other Assets [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Amortization of debt issuance costs | 11,300 | |||
Reclassification adjustment | Reclassification From Increase In Accrued Expenses and Other Liabilities [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Amortization of debt issuance costs | 5,300 | |||
Reclassification From Decrease (Increase) In Prepaid Expenses And Other Assets [Member] | Amortization of Debt Issuance Costs (Cash Flows-Operating Activities) | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Amortization of debt issuance costs | (11,300) | |||
Reclassification From Increase In Accrued Expenses and Other Liabilities [Member] | Amortization of Debt Issuance Costs (Cash Flows-Operating Activities) | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Amortization of debt issuance costs | $ (5,300) |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Net income for basic and diluted earnings per share | $ 752,842 | $ 693,257 | $ 1,337,094 | $ 1,022,302 |
Weighted-average common shares outstanding (shares) | 214,694,000 | 214,819,000 | 214,882,000 | 215,663,000 |
Dilutive effect of stock options, performance share awards and restricted stock awards (shares) | 1,130,000 | 848,000 | 1,023,000 | 912,000 |
Diluted weighted-average shares outstanding (shares) | 215,824,000 | 215,667,000 | 215,905,000 | 216,575,000 |
Basic earnings per share (in dollars per share) | $ 3.51 | $ 3.23 | $ 6.22 | $ 4.74 |
Diluted earnings per share (in dollars per share) | $ 3.49 | $ 3.21 | $ 6.19 | $ 4.72 |
Antidilutive securities (shares) | 0 | 0 | 0 | 0 |
Property and Equipment Narrativ
Property and Equipment Narrative (Details) $ in Millions | 1 Months Ended |
Mar. 31, 2017USD ($) | |
Legend of the Seas | |
Property, Plant and Equipment [Line Items] | |
Gain (loss) on sale of cruise ship | $ 30.9 |
Other Assets - Narrative (Detai
Other Assets - Narrative (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||
Jul. 31, 2016 | Apr. 30, 2016 | Dec. 31, 2014USD ($) | Sep. 30, 2017USD ($)ship | Jun. 30, 2017USD ($) | Mar. 31, 2016 | Sep. 30, 2017USD ($)ship | Sep. 30, 2017EUR (€)ship | Mar. 31, 2017 | Dec. 31, 2016USD ($) | Dec. 31, 2016EUR (€) | |
TUI Cruises GmbH joint venture | |||||||||||
Other Assets | |||||||||||
Percentage of ownership interest | 50.00% | 50.00% | 50.00% | ||||||||
Investments in entity | $ 582.5 | $ 582.5 | $ 517 | ||||||||
Underlying equity in net assets | 379.3 | 379.3 | 323.5 | ||||||||
Advances to affiliate | 201.5 | $ 201.5 | € 170,400,000 | 192.4 | € 182,300,000 | ||||||
Debt, guaranteed percentage | 50.00% | ||||||||||
Additional amount outstanding on line of credit provided to TUI Cruises | $ 118.7 | $ 118.7 | € 100,400,000 | ||||||||
Pullmantur and CDF Croisieres de France | |||||||||||
Other Assets | |||||||||||
Percentage of ownership interest | 49.00% | 49.00% | 49.00% | ||||||||
Advances to affiliate | $ 17.7 | $ 17.7 | € 15,000,000 | ||||||||
Interest rate on loan provided to related party (as a percent) | 6.50% | 6.50% | 6.50% | ||||||||
Debt, guaranteed percentage | 51.00% | ||||||||||
Retained ownership percentage of subsidiary after sale | 49.00% | 49.00% | |||||||||
Percentage of subsidiary which has been sold | 51.00% | 51.00% | 51.00% | ||||||||
Maximum loss exposure | $ 50.9 | $ 50.9 | 40.3 | ||||||||
Grand Bahamas Shipyard Ltd. | Not Primary Beneficiary | |||||||||||
Other Assets | |||||||||||
Percentage of ownership interest | 40.00% | 40.00% | 40.00% | ||||||||
Investments in entity | $ 50.4 | $ 50.4 | 47 | ||||||||
Underlying equity in net assets | 30.8 | 30.8 | 23.2 | ||||||||
Related party transaction, payment amount for ship repair and maintenance | $ 1.9 | $ 7.5 | |||||||||
Skysea Holding | Not Primary Beneficiary | |||||||||||
Other Assets | |||||||||||
Percentage of ownership interest | 36.00% | 36.00% | 36.00% | 36.00% | 35.00% | ||||||
Investments in entity | $ 97.3 | $ 97.3 | 98 | ||||||||
Underlying equity in net assets | $ 6.5 | $ 6.5 | 9.2 | ||||||||
Advances to affiliate | $ 80 | ||||||||||
Interest rate on loan provided to related party (as a percent) | 6.50% | 6.50% | 6.50% | ||||||||
Debt, guaranteed percentage | 100.00% | ||||||||||
Other receivables due from affiliate | $ 90.8 | $ 90.8 | 88.8 | ||||||||
Payments to acquire equity method investments | $ 7.1 | ||||||||||
Contractual amount under funding agreement for variable interest entity for all investors | 30 | 30 | |||||||||
Splendour of the Seas | TUI Cruises GmbH joint venture | |||||||||||
Other Assets | |||||||||||
Interest rate on loan provided to related party (as a percent) | 6.25% | ||||||||||
Long term debt, term | 10 years | ||||||||||
Debt, guaranteed percentage | 50.00% | ||||||||||
Non-accrual status of advances to affiliates | Grand Bahamas Shipyard Ltd. | Not Primary Beneficiary | |||||||||||
Other Assets | |||||||||||
Advances to affiliate | $ 19.6 | $ 19.6 | $ 23.8 | ||||||||
Interest rate on loan provided to related party (as a percent) | 5.50% | ||||||||||
Long term debt, term | 10 years | ||||||||||
LIBOR | Non-accrual status of advances to affiliates | Grand Bahamas Shipyard Ltd. | Not Primary Beneficiary | |||||||||||
Other Assets | |||||||||||
Debt instrument, basis spread on variable rate | 3.50% | ||||||||||
TUI cruise ships | TUI Cruises GmbH joint venture | |||||||||||
Other Assets | |||||||||||
Number of ships on order | ship | 2 | 2 | 2 | ||||||||
Percentage of bank committed financing | 80.00% | 80.00% | 80.00% | ||||||||
Unsecured term loan | € | € 150,000,000 | ||||||||||
Restriction on reduction of current ownership interest (as a percent) | 37.55% | 37.55% | 37.55% |
Other Assets Share of equity in
Other Assets Share of equity income from investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Other Assets [Abstract] | ||||
Share of equity income from investments | $ 85,120 | $ 46,539 | $ 120,359 | $ 94,832 |
Dividends received | $ 49,865 | $ 47,491 | $ 107,267 | $ 71,370 |
Other Assets Related party tran
Other Assets Related party transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Other Assets [Abstract] | ||||
Revenues | $ 14,054 | $ 9,300 | $ 39,987 | $ 17,888 |
Expenses | $ 3,770 | $ 2,410 | $ 11,503 | $ 8,930 |
Long-Term Debt (Details)
Long-Term Debt (Details) - Subsequent Event - Revolving Credit Facility | 1 Months Ended |
Oct. 31, 2017USD ($) | |
Long-Term Debt | |
Credit facility borrowing capacity | $ 1,200,000,000 |
Margin on floating rate base | 1.175% |
Facility fee percentage | 0.20% |
Optional additional borrowing capacity | $ 500,000,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) € in Millions, $ in Millions | 1 Months Ended | 9 Months Ended | ||||
Oct. 31, 2017USD ($) | Jul. 31, 2017EUR (€)berth | Sep. 30, 2017USD ($)shipberth | Oct. 31, 2017EUR (€) | Dec. 31, 2016 | Sep. 30, 2016USD ($) | |
Commitments and Contingencies | ||||||
Percentage of loan bearing fixed interest rate | 48.80% | 40.50% | ||||
Number of months considered to determine requirement of prepayment of debts | 24 months | |||||
Cruise ships on order | ||||||
Commitments and Contingencies | ||||||
Aggregate cost of ships on order, not including TUI cruises on order | $ | $ 13,000 | |||||
Deposit for the purchase of ships expected to enter service | $ | $ 323.2 | |||||
Percentage of aggregate cost exposed to fluctuations in the euro exchange rate | 53.80% | 66.70% | ||||
Unsecured Term Loan Maturing Twelve Years After Ship Delivery [Member] | ||||||
Commitments and Contingencies | ||||||
Debt instrument, amortization period | 12 years | |||||
Loan Facility | Minimum | ||||||
Commitments and Contingencies | ||||||
Debt instrument covenant, minimum percentage of ownership by a person | 50.00% | |||||
Debt Securities | Minimum | ||||||
Commitments and Contingencies | ||||||
Debt instrument covenant, minimum percentage of ownership by a person | 50.00% | |||||
Royal Caribbean International Cruise Ships | Cruise ships on order | ||||||
Commitments and Contingencies | ||||||
Ship passenger capacity berths | berth | 30,500 | |||||
Quantum Class Ship | Royal Caribbean International Cruise Ships | Cruise ships on order | ||||||
Commitments and Contingencies | ||||||
Number of ships under construction | ship | 2 | |||||
Oasis Class Ship | Royal Caribbean International Cruise Ships | Cruise ships on order | ||||||
Commitments and Contingencies | ||||||
Number of ships under construction | ship | 2 | |||||
Project Icon | Cruise ships on order | ||||||
Commitments and Contingencies | ||||||
Number of ships under construction | ship | 2 | |||||
Project Icon | Royal Caribbean International Cruise Ships | ||||||
Commitments and Contingencies | ||||||
Ship passenger capacity berths | berth | 5,650 | |||||
Project Icon | Royal Caribbean International Cruise Ships | Cruise ships on order | ||||||
Commitments and Contingencies | ||||||
Number of ships under construction | ship | 2 | |||||
Project Edge Class Ship | Celebrity Cruise Ships | Cruise ships on order | ||||||
Commitments and Contingencies | ||||||
Number of ships under construction | ship | 4 | |||||
Ship passenger capacity berths | berth | 11,600 | |||||
Third and Fourth Edge Class Ships and Fifth Oasis Class Ship | ||||||
Commitments and Contingencies | ||||||
Percentage of bank committed financing | 80.00% | |||||
Guarantee percent | 100.00% | |||||
Third Edge Class Ship | Unsecured Term Loan Maturing Twelve Years After Ship Delivery [Member] | ||||||
Commitments and Contingencies | ||||||
Unsecured term loan maximum borrowing commitment | € | € 684.2 | |||||
Debt Fixed Rate | 1.28% | |||||
Third Edge Class Ship | Celebrity Cruise Ships | ||||||
Commitments and Contingencies | ||||||
Ship passenger capacity berths | berth | 2,900 | |||||
Fourth Edge Class Ship | Unsecured Term Loan Maturing Twelve Years After Ship Delivery [Member] | ||||||
Commitments and Contingencies | ||||||
Unsecured term loan maximum borrowing commitment | € 714.6 | $ 844.7 | ||||
Fifth Oasis Class Ship | Unsecured Term Loan Maturing Twelve Years After Ship Delivery [Member] | ||||||
Commitments and Contingencies | ||||||
Unsecured term loan maximum borrowing commitment | € 1,100 | $ 1,300 | ||||
Fifth Oasis Class Ship | Royal Caribbean International Cruise Ships | ||||||
Commitments and Contingencies | ||||||
Ship passenger capacity berths | berth | 5,450 | |||||
Fourth Edge and Fifth Oasis Class Ships | Unsecured Term Loan Maturing Twelve Years After Ship Delivery [Member] | ||||||
Commitments and Contingencies | ||||||
Debt Fixed Rate | 3.18% | |||||
Subsequent Event | Project Icon | Unsecured Term Loan Maturing Twelve Years After Ship Delivery [Member] | ||||||
Commitments and Contingencies | ||||||
Unsecured term loan maximum borrowing commitment | $ 1,700 | € 1,400 | ||||
Percentage of loan bearing fixed interest rate | 75.00% | 75.00% | ||||
Debt instrument, amortization period | 12 years | |||||
Subsequent Event | Project Icon | Royal Caribbean International Cruise Ships | ||||||
Commitments and Contingencies | ||||||
Percentage of bank committed financing | 80.00% | 80.00% | ||||
Subsequent Event | Project Icon | Euler Hermes | ||||||
Commitments and Contingencies | ||||||
Guarantee percent | 95.00% | |||||
Subsequent Event | First Project Icon Class Ship | Unsecured Term Loan Maturing Twelve Years After Ship Delivery [Member] | ||||||
Commitments and Contingencies | ||||||
Debt Fixed Rate | 3.56% | 3.56% | ||||
Subsequent Event | Second Project Icon Class Ship | Unsecured Term Loan Maturing Twelve Years After Ship Delivery [Member] | ||||||
Commitments and Contingencies | ||||||
Debt Fixed Rate | 3.76% | 3.76% | ||||
LIBOR | Subsequent Event | First Project Icon Class Ship | Unsecured Term Loan Maturing Twelve Years After Ship Delivery [Member] | Minimum | ||||||
Commitments and Contingencies | ||||||
Debt instrument, basis spread on variable rate | 1.10% | |||||
LIBOR | Subsequent Event | First Project Icon Class Ship | Unsecured Term Loan Maturing Twelve Years After Ship Delivery [Member] | Maximum | ||||||
Commitments and Contingencies | ||||||
Debt instrument, basis spread on variable rate | 1.15% | |||||
LIBOR | Subsequent Event | Second Project Icon Class Ship | Unsecured Term Loan Maturing Twelve Years After Ship Delivery [Member] | Minimum | ||||||
Commitments and Contingencies | ||||||
Debt instrument, basis spread on variable rate | 1.15% | |||||
LIBOR | Subsequent Event | Second Project Icon Class Ship | Unsecured Term Loan Maturing Twelve Years After Ship Delivery [Member] | Maximum | ||||||
Commitments and Contingencies | ||||||
Debt instrument, basis spread on variable rate | 1.20% |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, shares in Millions | 1 Months Ended | 3 Months Ended | ||||||||||||
Oct. 31, 2017 | Sep. 30, 2017 | Jul. 31, 2017 | Apr. 30, 2017 | Oct. 31, 2016 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Apr. 28, 2017 | |
Class of Stock [Line Items] | ||||||||||||||
Dividend declared (in dollars per share) | $ 0.6 | $ 0.48 | $ 0.48 | $ 0.48 | $ 0.48 | $ 0.375 | $ 0.375 | $ 0.375 | ||||||
Common stock, dividends, cash paid (in dollars per share) | $ 0.375 | 0.375 | ||||||||||||
Common stock, dividends, cash paid for dividends declared in prior period (in dollars per share) | $ 0.48 | $ 0.48 | $ 0.48 | $ 0.48 | $ 0.375 | |||||||||
Common stock repurchase program, authorized amount | $ 500,000,000 | |||||||||||||
Shares repurchased (shares) | 1 | |||||||||||||
Treasury stock value | $ 125,000,000 | |||||||||||||
Remaining stock available for repurchase (shares) | $ 375,000,000 | $ 375,000,000 | ||||||||||||
Subsequent Event | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Common stock, dividends, cash paid for dividends declared in prior period (in dollars per share) | $ 0 |
Changes in Accumulated Other 32
Changes in Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Changes in accumulated other comprehensive loss by component | ||||
Other comprehensive income (loss) before reclassifications | $ 237,421 | $ (14,248) | ||
Amounts reclassified from accumulated other comprehensive loss | $ 43,605 | $ 80,908 | 152,169 | 265,147 |
Total other comprehensive income | 234,144 | 94,528 | 389,590 | 250,899 |
Changes related to cash flow derivative hedges | ||||
Changes in accumulated other comprehensive loss by component | ||||
Accumulated comprehensive loss at beginning of the year | (820,850) | (1,232,073) | ||
Other comprehensive income (loss) before reclassifications | 230,341 | (9,150) | ||
Amounts reclassified from accumulated other comprehensive loss | 151,319 | 263,774 | ||
Total other comprehensive income | 381,660 | 254,624 | ||
Ending balance | (439,190) | (977,449) | (439,190) | (977,449) |
Changes in defined benefit plans | ||||
Changes in accumulated other comprehensive loss by component | ||||
Accumulated comprehensive loss at beginning of the year | (28,083) | (26,447) | ||
Other comprehensive income (loss) before reclassifications | (7,130) | (13,521) | ||
Amounts reclassified from accumulated other comprehensive loss | 293 | 285 | 850 | 1,373 |
Total other comprehensive income | (6,280) | (12,148) | ||
Ending balance | (34,363) | (38,595) | (34,363) | (38,595) |
Foreign currency translation adjustments | ||||
Changes in accumulated other comprehensive loss by component | ||||
Accumulated comprehensive loss at beginning of the year | (67,551) | (69,913) | ||
Other comprehensive income (loss) before reclassifications | 14,210 | 8,423 | ||
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | ||
Total other comprehensive income | 14,210 | 8,423 | ||
Ending balance | (53,341) | (61,490) | (53,341) | (61,490) |
Accumulated other comprehensive loss | ||||
Changes in accumulated other comprehensive loss by component | ||||
Accumulated comprehensive loss at beginning of the year | (916,484) | (1,328,433) | ||
Ending balance | $ (526,894) | $ (1,077,534) | $ (526,894) | $ (1,077,534) |
Changes in Accumulated Other 33
Changes in Accumulated Other Comprehensive (Loss) Income - Reclassifications (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Reclassifications out of accumulated other comprehensive loss | ||||
Interest expense, net of interest capitalized | $ (73,233) | $ (82,610) | $ (230,182) | $ (226,803) |
Depreciation and amortization expenses | (240,150) | (229,328) | (710,836) | (661,712) |
Other expense | 15,354 | (41,706) | (99,613) | (158,061) |
Other operating | (253,892) | (260,718) | (780,257) | (857,161) |
Fuel | (160,752) | (178,772) | (508,914) | (531,283) |
Net income | 752,842 | 693,257 | 1,337,094 | 1,022,302 |
Amounts reclassified from accumulated other comprehensive income (loss) | (43,605) | (80,908) | (152,169) | (265,147) |
Loss on cash flow derivative hedges: | ||||
Reclassifications out of accumulated other comprehensive loss | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | (151,319) | (263,774) | ||
Loss on cash flow derivative hedges: | Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | ||||
Reclassifications out of accumulated other comprehensive loss | ||||
Net income | (43,312) | (80,623) | (151,319) | (263,774) |
Loss on cash flow derivative hedges: | Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | Interest rate swaps | ||||
Reclassifications out of accumulated other comprehensive loss | ||||
Interest expense, net of interest capitalized | (7,860) | (11,953) | (24,580) | (32,019) |
Loss on cash flow derivative hedges: | Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | Foreign currency forward contracts | ||||
Reclassifications out of accumulated other comprehensive loss | ||||
Depreciation and amortization expenses | (2,710) | (2,710) | (8,130) | (5,408) |
Other expense | (1,512) | (3,465) | (9,187) | (10,206) |
Other operating | 0 | 0 | 0 | (207) |
Loss on cash flow derivative hedges: | Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | Foreign currency collar options | ||||
Reclassifications out of accumulated other comprehensive loss | ||||
Depreciation and amortization expenses | (602) | (601) | (1,806) | (1,806) |
Loss on cash flow derivative hedges: | Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | Fuel swaps | ||||
Reclassifications out of accumulated other comprehensive loss | ||||
Other expense | 1,758 | 2,760 | 6,533 | 9,356 |
Fuel | (32,386) | (64,654) | (114,149) | (223,484) |
Actuarial loss | ||||
Reclassifications out of accumulated other comprehensive loss | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | (293) | (285) | (850) | (1,373) |
Amortization of defined benefit plans: | ||||
Reclassifications out of accumulated other comprehensive loss | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | $ (293) | $ (285) | $ (850) | $ (1,373) |
Fair Value Measurements and D34
Fair Value Measurements and Derivative Instruments (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | |
Level 1 | |||
Assets: | |||
Cash and cash equivalents | [1],[2] | $ 139,950 | $ 132,603 |
Total Assets | [2] | 139,950 | 132,603 |
Liabilities: | |||
Long-term debt (including current portion of long-term debt) | [2],[3] | 0 | 0 |
Total Liabilities | [2] | 0 | 0 |
Level 2 | |||
Assets: | |||
Cash and cash equivalents | [1],[4] | 0 | 0 |
Total Assets | [4] | 0 | 0 |
Liabilities: | |||
Long-term debt (including current portion of long-term debt) | [3],[4] | 8,111,168 | 9,859,266 |
Total Liabilities | [4] | 8,111,168 | 9,859,266 |
Level 3 | |||
Assets: | |||
Cash and cash equivalents | [1],[5] | 0 | 0 |
Total Assets | [5] | 0 | 0 |
Liabilities: | |||
Long-term debt (including current portion of long-term debt) | [3],[5] | 0 | 0 |
Total Liabilities | [5] | 0 | 0 |
Total Carrying Amount | |||
Assets: | |||
Cash and cash equivalents | [1] | 139,950 | 132,603 |
Total Assets | 139,950 | 132,603 | |
Liabilities: | |||
Long-term debt (including current portion of long-term debt) | [3] | 7,557,801 | 9,347,051 |
Total Liabilities | 7,557,801 | 9,347,051 | |
Total Fair Value | |||
Assets: | |||
Cash and cash equivalents | [1] | 139,950 | 132,603 |
Total Assets | 139,950 | 132,603 | |
Liabilities: | |||
Long-term debt (including current portion of long-term debt) | [3] | 8,111,168 | 9,859,266 |
Total Liabilities | $ 8,111,168 | $ 9,859,266 | |
[1] | Consists of cash and marketable securities with original maturities of less than 90 days. | ||
[2] | Inputs based on quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access. Valuation of these items does not entail a significant amount of judgment. | ||
[3] | Consists of unsecured revolving credit facilities, senior notes, senior debentures and term loans. This does not include our capital lease obligations. | ||
[4] | Inputs other than quoted prices included within Level 1 that are observable for the liability, either directly or indirectly. For unsecured revolving credit facilities and unsecured term loans, fair value is determined utilizing the income valuation approach. This valuation model takes into account the contract terms of our debt such as the debt maturity and the interest rate on the debt. The valuation model also takes into account the creditworthiness of the Company. | ||
[5] | Inputs that are unobservable. The Company did not use any Level 3 inputs as of September 30, 2017 and December 31, 2016. |
Fair Value Measurements and D35
Fair Value Measurements and Derivative Instruments - Recurring (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | |
Assets: | |||
Derivative financial instruments | $ 104,193 | $ 0 | |
Liabilities: | |||
Derivative financial instruments | 72,098 | 346,887 | |
Fair Value, Measurements, Recurring | Level 1 | |||
Assets: | |||
Derivative financial instruments | [1],[2] | 0 | 0 |
Investments | [2],[3] | 3,237 | 3,576 |
Total Assets | [2] | 3,237 | 3,576 |
Liabilities: | |||
Derivative financial instruments | [2],[4] | 0 | 0 |
Total Liabilities | [2] | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | |||
Assets: | |||
Derivative financial instruments | [1],[5] | 221,258 | 19,397 |
Investments | [3],[5] | 0 | 0 |
Total Assets | [5] | 221,258 | 19,397 |
Liabilities: | |||
Derivative financial instruments | [4],[5] | 189,163 | 373,497 |
Total Liabilities | [5] | 189,163 | 373,497 |
Fair Value, Measurements, Recurring | Level 3 | |||
Assets: | |||
Derivative financial instruments | [1],[6] | 0 | 0 |
Investments | [3],[6] | 0 | 0 |
Total Assets | [6] | 0 | 0 |
Liabilities: | |||
Derivative financial instruments | [4],[6] | 0 | 0 |
Total Liabilities | [6] | 0 | 0 |
Total | Fair Value, Measurements, Recurring | |||
Assets: | |||
Derivative financial instruments | [1] | 221,258 | 19,397 |
Investments | [3] | 3,237 | 3,576 |
Total Assets | 224,495 | 22,973 | |
Liabilities: | |||
Derivative financial instruments | [4] | 189,163 | 373,497 |
Total Liabilities | $ 189,163 | $ 373,497 | |
[1] | Consists of foreign currency forward contracts, interest rate swaps and fuel swaps. Please refer to the “Fair Value of Derivative Instruments” table for breakdown by instrument type. | ||
[2] | Inputs based on quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access. Valuation of these items does not entail a significant amount of judgment. | ||
[3] | Consists of exchange-traded equity securities and mutual funds reported within Other assets in our consolidated balance sheets. | ||
[4] | Consists of foreign currency forward contracts, interest rate swaps and fuel swaps. Please refer to the “Fair Value of Derivative Instruments” table for breakdown by instrument type. | ||
[5] | Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. For foreign currency forward contracts, interest rate swaps, 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. | ||
[6] | Inputs that are unobservable. The Company did not use any Level 3 inputs as of September 30, 2017 and December 31, 2016. |
Fair Value Measurements and D36
Fair Value Measurements and Derivative Instruments - Offsetting of Derivative Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Offsetting of Financial Assets under Master Netting Agreements [Abstract] | ||
Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheet | $ 221,258 | $ 19,397 |
Gross Amount of Eligible Offsetting Recognized Derivative Liabilities | (117,065) | (19,397) |
Net Amount of Derivative Assets | 104,193 | 0 |
Offsetting of Financial Liabilities under Master Netting Agreements [Abstract] | ||
Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheet | (189,163) | (373,497) |
Gross Amount of Eligible Offsetting Recognized Derivative Assets | 117,065 | 19,397 |
Cash Collateral Pledged | 0 | 7,213 |
Net Amount of Derivative Liabilities | $ (72,098) | $ (346,887) |
Fair Value Measurements and D37
Fair Value Measurements and Derivative Instruments - Derivative Instruments, Interest Rate Risk, Foreign Currency Exchange Rate Risk (Narrative) (Details) € in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2017EUR (€) | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2017EUR (€) | |
Fair Value Disclosures [Abstract] | |||||||
Credit risk exposure on derivative instruments | $ 101,600,000 | $ 0 | |||||
Gains and losses from derivatives involved in hedging relationships | |||||||
Maximum length of time hedged in derivative contract | 3 years | 3 years | |||||
Interest rate swaps | |||||||
Gains and losses from derivatives involved in hedging relationships | |||||||
Notional amount | $ 3,900,000,000 | $ 3,900,000,000 | 4,000,000,000 | ||||
Forward Contracts | |||||||
Gains and losses from derivatives involved in hedging relationships | |||||||
Change in fair value of foreign currency forward contracts recognized in earnings | 22,000,000 | $ (2,500,000) | 57,100,000 | $ (11,800,000) | |||
Forward Contracts | Not Designated | |||||||
Gains and losses from derivatives involved in hedging relationships | |||||||
Notional amount | 823,000,000 | 823,000,000 | |||||
Forward Contracts | Designated as Hedging Instrument | |||||||
Gains and losses from derivatives involved in hedging relationships | |||||||
Notional amount | 119,400,000 | 119,400,000 | € 101 | ||||
Foreign exchange contracts | |||||||
Gains and losses from derivatives involved in hedging relationships | |||||||
Notional amount | 4,100,000,000 | 4,100,000,000 | $ 1,300,000,000 | ||||
Cruise ships on order | |||||||
Gains and losses from derivatives involved in hedging relationships | |||||||
Aggregate cost of ships on order, not including TUI cruises on order | 13,000,000,000 | ||||||
Amount deposited for cost of ships on order | $ 323,200,000 | $ 323,200,000 | |||||
Percentage of aggregate cost exposed to fluctuations in the euro exchange rate | 53.80% | 53.80% | 66.70% | 53.80% | |||
Foreign currency debt | |||||||
Gains and losses from derivatives involved in hedging relationships | |||||||
Carrying Value of Non-derivative instrument Designated as hedging instrument | $ 284,886,000 | $ 311,225,000 | |||||
Foreign currency debt | TUI Cruises | |||||||
Gains and losses from derivatives involved in hedging relationships | |||||||
Carrying Value of Non-derivative instrument Designated as hedging instrument | $ 284,900,000 | € 241 |
Fair Value Measurements and D38
Fair Value Measurements and Derivative Instruments - Interest Rate Risk (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2017 | Dec. 31, 2016 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Percentage of debt bearing fixed interest rate | 48.80% | 40.50% | |
Interest rate swaps | Fair Value Hedging | |||
Interest Rate Fair Value Hedges [Abstract] | |||
Long-term Debt | $ 807,500,000 | ||
Interest rate swaps | Fair Value Hedging | Oasis of the Seas term loan | |||
Interest Rate Fair Value Hedges [Abstract] | |||
Long-term Debt | $ 157,500,000 | ||
Debt Fixed Rate | 5.41% | ||
Interest rate swaps | Fair Value Hedging | Senior Fixed Rate 5.25% | |||
Interest Rate Fair Value Hedges [Abstract] | |||
Unsecured term loan | $ 650,000,000 | ||
Debt Fixed Rate | 5.25% | ||
Interest rate swaps | Cash flow hedge | |||
Interest Rate Cash Flow Hedges [Abstract] | |||
Swap Notional Amount | $ 3,107,300,000 | ||
Interest rate swaps | Cash flow hedge | Celebrity Reflection term loan | |||
Interest Rate Cash Flow Hedges [Abstract] | |||
Swap Notional Amount | $ 409,063,000 | ||
All-in Swap Fixed Rate | 2.85% | ||
Interest rate swaps | Cash flow hedge | Quantum of the Seas Unsecured Term Loan | |||
Interest Rate Cash Flow Hedges [Abstract] | |||
Swap Notional Amount | $ 581,875,000 | ||
All-in Swap Fixed Rate | 3.74% | ||
Interest rate swaps | Cash flow hedge | Anthem of the Seas Unsecured Term Loan | |||
Interest Rate Cash Flow Hedges [Abstract] | |||
Swap Notional Amount | $ 604,167,000 | ||
All-in Swap Fixed Rate | 3.86% | ||
Interest rate swaps | Cash flow hedge | Ovation of the Seas Unsecured Term Loan | |||
Interest Rate Cash Flow Hedges [Abstract] | |||
Swap Notional Amount | $ 760,833,000 | ||
All-in Swap Fixed Rate | 3.16% | ||
Interest rate swaps | Cash flow hedge | Harmony of the Seas Unsecured Term Loan | |||
Interest Rate Cash Flow Hedges [Abstract] | |||
Swap Notional Amount | [1] | $ 751,362,000 | |
All-in Swap Fixed Rate | [1] | 2.26% | |
LIBOR | Interest rate swaps | Fair Value Hedging | Oasis of the Seas term loan | |||
Interest Rate Fair Value Hedges [Abstract] | |||
Swap Floating Rate: LIBOR plus | 3.87% | ||
All-in Swap Floating Rate | 5.29% | ||
LIBOR | Interest rate swaps | Fair Value Hedging | Senior Fixed Rate 5.25% | |||
Interest Rate Fair Value Hedges [Abstract] | |||
Swap Floating Rate: LIBOR plus | 3.63% | ||
All-in Swap Floating Rate | 4.95% | ||
LIBOR | Interest rate swaps | Cash flow hedge | Celebrity Reflection term loan | |||
Interest Rate Cash Flow Hedges [Abstract] | |||
Margin on floating rate base | 0.40% | ||
LIBOR | Interest rate swaps | Cash flow hedge | Quantum of the Seas Unsecured Term Loan | |||
Interest Rate Cash Flow Hedges [Abstract] | |||
Margin on floating rate base | 1.30% | ||
LIBOR | Interest rate swaps | Cash flow hedge | Anthem of the Seas Unsecured Term Loan | |||
Interest Rate Cash Flow Hedges [Abstract] | |||
Margin on floating rate base | 1.30% | ||
LIBOR | Interest rate swaps | Cash flow hedge | Ovation of the Seas Unsecured Term Loan | |||
Interest Rate Cash Flow Hedges [Abstract] | |||
Margin on floating rate base | 1.00% | ||
EURIBOR | Interest rate swaps | Cash flow hedge | Harmony of the Seas Unsecured Term Loan | |||
Interest Rate Cash Flow Hedges [Abstract] | |||
Margin on floating rate base | [1] | 1.15% | |
[1] | Interest rate swap agreements hedging the Euro-denominated term loan for Harmony of the Seas include EURIBOR zero-floors matching the hedged debt EURIBOR zero-floor. Amount presented is based on the exchange rate as of September 30, 2017. |
Fair Value Measurements and D39
Fair Value Measurements and Derivative Instruments - Fuel Price Risk (Details) - Fuel Price Risk $ in Millions | Sep. 30, 2017USD ($)T | Dec. 31, 2016USD ($)T |
Derivative Instruments | ||
Estimated unrealized net loss associated with cash flow hedges pertaining to fuel swap agreements expected to be reclassified to earnings from accumulated other comprehensive income loss | $ | $ 81.7 | $ 138.5 |
Swaps 2,017 | ||
Derivative Instruments | ||
Fuel Swap Agreements (metric tons) | 218,600 | 799,065 |
Percentage of projected requirements | 65.00% | 60.00% |
Swaps 2,018 | ||
Derivative Instruments | ||
Fuel Swap Agreements (metric tons) | 756,700 | 616,300 |
Percentage of projected requirements | 56.00% | 44.00% |
Swaps 2,019 | ||
Derivative Instruments | ||
Fuel Swap Agreements (metric tons) | 668,500 | 521,000 |
Percentage of projected requirements | 47.00% | 35.00% |
Swaps 2,020 | ||
Derivative Instruments | ||
Fuel Swap Agreements (metric tons) | 531,200 | 306,500 |
Percentage of projected requirements | 36.00% | 20.00% |
Swaps 2,021 | ||
Derivative Instruments | ||
Fuel Swap Agreements (metric tons) | 224,900 | 0 |
Percentage of projected requirements | 14.00% | 0.00% |
Fair Value Measurements and D40
Fair Value Measurements and Derivative Instruments - Balance Sheet (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | |
Asset Derivatives | |||
Asset Derivatives | $ 221,258 | $ 19,397 | |
Liability Derivatives | |||
Liability Derivatives | 189,163 | 373,497 | |
Designated as Hedging Instrument | |||
Asset Derivatives | |||
Asset Derivatives | [1] | 220,811 | 18,854 |
Liability Derivatives | |||
Liability Derivatives | [1] | 179,588 | 356,029 |
Not Designated as Hedging Instrument | |||
Asset Derivatives | |||
Asset Derivatives | 447 | 543 | |
Liability Derivatives | |||
Liability Derivatives | 9,575 | 17,468 | |
Interest rate swaps | Designated as Hedging Instrument | Other assets | |||
Asset Derivatives | |||
Asset Derivatives | [1] | 1,760 | 5,246 |
Interest rate swaps | Designated as Hedging Instrument | Other long-term Liabilities | |||
Liability Derivatives | |||
Liability Derivatives | [1] | 52,611 | 57,679 |
Foreign currency forward contracts | Designated as Hedging Instrument | Other assets | |||
Asset Derivatives | |||
Asset Derivatives | [1] | 136,534 | 0 |
Foreign currency forward contracts | Designated as Hedging Instrument | Derivative Financial Instruments, Assets | |||
Asset Derivatives | |||
Asset Derivatives | [1] | 45,583 | 0 |
Foreign currency forward contracts | Designated as Hedging Instrument | Other long-term Liabilities | |||
Liability Derivatives | |||
Liability Derivatives | [1] | 4,479 | 68,165 |
Foreign currency forward contracts | Designated as Hedging Instrument | Derivative Financial Instruments, Liabilities | |||
Liability Derivatives | |||
Liability Derivatives | [1] | 0 | 5,574 |
Fuel swaps | Designated as Hedging Instrument | Other assets | |||
Asset Derivatives | |||
Asset Derivatives | [1] | 29,721 | 13,608 |
Fuel swaps | Designated as Hedging Instrument | Derivative Financial Instruments, Assets | |||
Asset Derivatives | |||
Asset Derivatives | [1] | 7,213 | 0 |
Fuel swaps | Designated as Hedging Instrument | Other long-term Liabilities | |||
Liability Derivatives | |||
Liability Derivatives | [1] | 40,517 | 95,125 |
Fuel swaps | Designated as Hedging Instrument | Derivative Financial Instruments, Liabilities | |||
Liability Derivatives | |||
Liability Derivatives | [1] | 81,981 | 129,486 |
Fuel swaps | Not Designated as Hedging Instrument | Other assets | |||
Asset Derivatives | |||
Asset Derivatives | 447 | 543 | |
Fuel swaps | Not Designated as Hedging Instrument | Derivative Financial Instruments, Assets | |||
Asset Derivatives | |||
Asset Derivatives | 0 | 0 | |
Fuel swaps | Not Designated as Hedging Instrument | Other long-term Liabilities | |||
Liability Derivatives | |||
Liability Derivatives | 2,223 | 5,936 | |
Fuel swaps | Not Designated as Hedging Instrument | Derivative Financial Instruments, Liabilities | |||
Liability Derivatives | |||
Liability Derivatives | $ 7,352 | $ 11,532 | |
[1] | Accounting Standard Codification 815-20 “Derivatives and Hedging.” |
Fair Value Measurements and D41
Fair Value Measurements and Derivative Instruments - Balance Sheet Hedging Instruments (Details) - Foreign currency debt - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Derivative Instruments | ||
Carrying Value of Non-derivative instrument Designated as hedging instrument | $ 284,886 | $ 311,225 |
Long Term Debt Current | ||
Derivative Instruments | ||
Carrying Value of Non-derivative instrument Designated as hedging instrument | 69,023 | 61,601 |
Long-term Debt | ||
Derivative Instruments | ||
Carrying Value of Non-derivative instrument Designated as hedging instrument | $ 215,863 | $ 249,624 |
Fair Value Measurements and D42
Fair Value Measurements and Derivative Instruments - Income Statement Hedging Instruments (Details) - Fair Value Hedging - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||||
Amount of Gain (Loss) Recognized in Income on Derivative | $ 55 | $ (5,925) | $ 5,917 | $ 34,667 |
Amount of Gain (Loss) Recognized in Income on Hedged Item | 1,013 | 7,423 | (841) | (17,675) |
Interest rate swaps | Interest expense, net of interest capitalized | ||||
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||||
Amount of Gain (Loss) Recognized in Income on Derivative | 600 | 1,737 | 2,642 | 6,075 |
Amount of Gain (Loss) Recognized in Income on Hedged Item | 0 | 0 | 0 | 7,203 |
Interest rate swaps | Other income (expense) | ||||
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||||
Amount of Gain (Loss) Recognized in Income on Derivative | (545) | (7,662) | 3,275 | 28,592 |
Amount of Gain (Loss) Recognized in Income on Hedged Item | $ 1,013 | $ 7,423 | $ (841) | $ (24,878) |
Fair Value Measurements and D43
Fair Value Measurements and Derivative Instruments - Designated Cash Flow Hedges (Details) - Cash flow hedge - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivative (Effective Portion) | $ 186,935 | $ 14,913 | $ 230,341 | $ (9,150) |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Effective Portion) | (43,312) | (80,623) | (151,319) | (263,774) |
Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 3,426 | 82 | 1,114 | (5,158) |
Interest rate swaps | ||||
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivative (Effective Portion) | (3,154) | 6,598 | (24,703) | (126,505) |
Interest rate swaps | Interest expense, net of interest capitalized | ||||
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Effective Portion) | (7,860) | (11,953) | (24,580) | (32,019) |
Interest rate swaps | Other expense | ||||
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||||
Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | 90 | 0 | (1,152) |
Foreign currency forward contracts | ||||
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivative (Effective Portion) | 122,211 | 11,405 | 221,861 | 22,715 |
Foreign currency forward contracts | Depreciation and amortization expenses | ||||
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Effective Portion) | (2,710) | (2,710) | (8,130) | (5,408) |
Foreign currency forward contracts | Other expense | ||||
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Effective Portion) | (1,512) | (3,465) | (9,187) | (10,206) |
Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 75 | 0 | 100 | (57) |
Foreign currency forward contracts | Other Operating Expenses | ||||
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Effective Portion) | 0 | 0 | 0 | (207) |
Foreign currency collar options | Depreciation and amortization expenses | ||||
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Effective Portion) | (602) | (601) | (1,806) | (1,806) |
Fuel swaps | ||||
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivative (Effective Portion) | 67,878 | (3,090) | 33,183 | 94,640 |
Fuel swaps | Other expense | ||||
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Effective Portion) | 1,758 | 2,760 | 6,533 | 9,356 |
Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 3,351 | (8) | 1,014 | (3,949) |
Fuel swaps | Fuel cost | ||||
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Effective Portion) | $ (32,386) | $ (64,654) | $ (114,149) | $ (223,484) |
Fair Value Measurements and D44
Fair Value Measurements and Derivative Instruments - Non-Derivative Net Investment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Foreign currency debt | ||||
Net investment hedge | ||||
Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) (Effective Portion) | $ 7,949 | $ (3,382) | $ 34,206 | $ 1,313 |
Fair Value Measurements and D45
Fair Value Measurements and Derivative Instruments - Derivatives Not Designated as Hedging Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Derivative Instruments | ||||
Amount of Gain (Loss) Recognized in Income on Derivatives | $ 56,836 | $ (6,353) | ||
Other expense | ||||
Derivative Instruments | ||||
Amount of Gain (Loss) Recognized in Income on Derivatives | $ 21,776 | $ (3,636) | 56,764 | (12,936) |
Foreign currency forward contracts | Other expense | ||||
Derivative Instruments | ||||
Amount of Gain (Loss) Recognized in Income on Derivatives | 21,951 | (2,464) | 57,019 | (11,712) |
Fuel swaps | Other expense | ||||
Derivative Instruments | ||||
Amount of Gain (Loss) Recognized in Income on Derivatives | $ (175) | $ (1,172) | $ (255) | $ (1,224) |
Fair Value Measurements and D46
Fair Value Measurements and Derivative Instruments - Credit Features (Details) $ in Millions | 9 Months Ended | |
Sep. 30, 2017derivative | Dec. 31, 2016USD ($)derivative | |
Derivative Instruments | ||
Number of derivatives matured | derivative | 4 | 2 |
Posted collateral | $ | $ 7.2 | |
Moody's, Baa3 Rating | ||
Derivative Instruments | ||
Credit ratings for senior debt | Baa3 | |
Moody's, Ba1 Rating | ||
Derivative Instruments | ||
Credit ratings for senior debt | Baa3 | |
Standard & Poor's, BBB- Rating | Minimum | ||
Derivative Instruments | ||
Credit ratings for senior debt | BBB- | |
Standard & Poor's, BB Plus Rating | ||
Derivative Instruments | ||
Credit ratings for senior debt | BBB- |