Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 24, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 1-11884 | ||
Entity Registrant Name | ROYAL CARIBBEAN CRUISES LTD | ||
Entity Incorporation, State or Country Code | N0 | ||
Entity Tax Identification Number | 98-0081645 | ||
Entity Address, Address Line One | 1050 Caribbean Way | ||
Entity Address, City or Town | Miami | ||
Entity Address, State or Province | FL | ||
Entity Address, Postal Zip Code | 33132 | ||
City Area Code | 305 | ||
Local Phone Number | 539-6000 | ||
Title of 12(b) Security | Common Stock, par value $.01 per share | ||
Trading Symbol | RCL | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 21.7 | ||
Entity Common Stock, Shares Outstanding | 255,002,771 | ||
Documents Incorporated by Reference | Portions of the registrant's Definitive Proxy Statement relating to its 2022 Annual Meeting of Shareholders are incorporated by reference in Part III, Items 10-14 of this Annual Report on Form 10-K as indicated herein. | ||
Entity Central Index Key | 0000884887 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Firm ID | 238 |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Hallandale Beach, Florida |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Total revenues | $ 1,532,133 | $ 2,208,805 | $ 10,950,661 | |
Cruise operating expenses: | ||||
Total cruise operating expenses | 2,657,512 | 2,765,108 | 6,062,765 | |
Marketing, selling and administrative expenses | 1,370,076 | 1,199,620 | 1,559,253 | |
Depreciation and amortization expenses | 1,292,878 | 1,279,254 | 1,245,942 | |
Impairment and credit losses | 82,001 | 1,566,380 | 0 | |
Operating (Loss) Income | (3,870,334) | (4,601,557) | 2,082,701 | |
Other income (expense): | ||||
Interest income | 16,773 | 21,036 | 26,945 | |
Interest expense, net of interest capitalized | (1,291,753) | (844,238) | (408,513) | |
Equity investment (loss) income | (135,469) | (213,286) | 230,980 | |
Other income (expense) | [1] | 20,284 | (137,085) | (24,513) |
Total other income (expense) | (1,390,165) | (1,173,573) | (175,101) | |
Net (Loss) Income | (5,260,499) | (5,775,130) | 1,907,600 | |
Less: Net Income attributable to noncontrolling interest | 0 | 22,332 | 28,713 | |
Net (Loss) Income attributable to Royal Caribbean Cruises Ltd. | $ (5,260,499) | $ (5,797,462) | $ 1,878,887 | |
(Loss) Earnings per Share: | ||||
Basic (in dollars per share) | $ (20.89) | $ (27.05) | $ 8.97 | |
Diluted (in dollars per share) | $ (20.89) | $ (27.05) | $ 8.95 | |
Comprehensive (Loss) Income | ||||
Net (Loss) Income | $ (5,260,499) | $ (5,775,130) | $ 1,907,600 | |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | 15,703 | 40,346 | 869 | |
Change in defined benefit plans | 8,707 | (19,984) | (19,535) | |
Gain (loss) on cash flow derivative hedges | 4,046 | 38,010 | (151,313) | |
Total other comprehensive income (loss) | 28,456 | 58,372 | (169,979) | |
Comprehensive (Loss) Income | (5,232,043) | (5,716,758) | 1,737,621 | |
Less: Comprehensive Income attributable to noncontrolling interest | 0 | 22,332 | 28,713 | |
Comprehensive (Loss) Income attributable to Royal Caribbean Cruises Ltd. | (5,232,043) | (5,739,090) | 1,708,908 | |
Passenger ticket revenues | ||||
Total revenues | 941,175 | 1,504,569 | 7,857,057 | |
Onboard and other revenues | ||||
Total revenues | 590,958 | 704,236 | 3,093,604 | |
Cruise operating expenses: | ||||
Total cruise operating expenses | 116,946 | 157,213 | 639,782 | |
Commissions, transportation and other | ||||
Cruise operating expenses: | ||||
Total cruise operating expenses | 207,562 | 344,625 | 1,656,297 | |
Payroll and related | ||||
Cruise operating expenses: | ||||
Total cruise operating expenses | 838,088 | 788,273 | 1,079,121 | |
Food | ||||
Cruise operating expenses: | ||||
Total cruise operating expenses | 164,389 | 161,750 | 583,905 | |
Fuel | ||||
Cruise operating expenses: | ||||
Total cruise operating expenses | 385,322 | 371,015 | 697,962 | |
Other operating | ||||
Cruise operating expenses: | ||||
Total cruise operating expenses | $ 945,205 | $ 942,232 | $ 1,405,698 | |
[1] | Including a $62.6 million net loss related to the 2021 elimination of the Silversea Cruises reporting lag. |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Other Income (Expense) | [1] | $ 20,284 | $ (137,085) | $ (24,513) |
Elimination Of Silversea Reporting Lag | ||||
Other Income (Expense) | $ (62,600) | |||
[1] | Including a $62.6 million net loss related to the 2021 elimination of the Silversea Cruises reporting lag. |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 2,701,770 | $ 3,684,474 |
Trade and other receivables, net of allowances of $13,411 and $3,867 at December 31, 2021 and December 31, 2020, respectively | 408,067 | 284,149 |
Inventories | 150,224 | 118,703 |
Prepaid expenses and other assets | 286,026 | 154,339 |
Derivative financial instruments | 54,184 | 70,082 |
Total current assets | 3,600,271 | 4,311,747 |
Property and equipment, net | 25,907,949 | 25,246,595 |
Operating lease right-of-use assets | 542,128 | 599,985 |
Goodwill | 809,383 | 809,480 |
Other assets, net of allowances of $86,781 and $81,580 at December 31, 2021 and December 31, 2020, respectively | 1,398,624 | 1,497,380 |
Total assets | 32,258,355 | 32,465,187 |
Current liabilities | ||
Current portion of long-term debt | 2,243,131 | 961,768 |
Commercial paper | 0 | 409,319 |
Current portion of operating lease liabilities | 68,922 | 102,677 |
Accounts payable | 545,978 | 353,422 |
Accrued interest | 251,974 | 252,668 |
Accrued expenses and other liabilities | 887,575 | 615,750 |
Derivative financial instruments | 127,236 | 56,685 |
Customer deposits | 3,160,867 | 1,784,832 |
Total current liabilities | 7,285,683 | 4,537,121 |
Long-term debt | 18,847,209 | 17,957,956 |
Long-term operating lease liabilities | 534,726 | 563,876 |
Other long-term liabilities | 505,181 | 645,565 |
Total liabilities | 27,172,799 | 23,704,518 |
Commitments and Contingencies (Note 17) | ||
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; 282,703,246 and 265,198,371 shares issued, December 31, 2021 and December 31, 2020, respectively) | 2,827 | 2,652 |
Paid-in capital | 7,557,297 | 5,998,574 |
Retained earnings | 302,276 | 5,562,775 |
Accumulated other comprehensive loss | (710,885) | (739,341) |
Treasury stock (27,882,987 and 27,799,775 common shares at cost, December 31, 2021 and December 31, 2020, respectively) | (2,065,959) | (2,063,991) |
Total shareholders' equity | 5,085,556 | 8,760,669 |
Total liabilities and shareholders’ equity | $ 32,258,355 | $ 32,465,187 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Trade and other receivables, allowance for credit loss | $ 13,411 | $ 3,867 |
Other assets, allowance for credit loss | $ 86,781 | $ 81,580 |
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) | 282,703,246 | 265,198,371 |
Treasury stock, common shares (in shares) | 27,882,987 | 27,799,775 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Cash Flows [Abstract] | |||
Net (Loss) Income | $ (5,260,499) | $ (5,775,130) | $ 1,907,600 |
Adjustments: | |||
Depreciation and amortization | 1,292,878 | 1,279,254 | 1,245,942 |
Impairment and credit losses | 82,001 | 1,566,380 | 0 |
Net deferred income tax (benefit) expense | (42,979) | (8,791) | 7,745 |
(Gain) loss on derivative instruments not designated as hedges | (1,492) | 49,316 | (1,431) |
Share-based compensation expense | 63,638 | 39,779 | 75,930 |
Equity investment loss (income) | 135,469 | 213,286 | (230,980) |
Amortization of debt issuance costs | 125,116 | 89,442 | 31,991 |
Amortization of debt discounts and premiums | 123,439 | 66,776 | 31,616 |
Loss on extinguishment of debt | 138,759 | 41,109 | 6,326 |
Currency translation adjustment losses | 0 | 69,044 | 0 |
Change in fair value of contingent consideration | 0 | (45,126) | 18,400 |
Changes in operating assets and liabilities: | |||
(Increase) decrease in trade and other receivables, net | (181,707) | 121,055 | (9,898) |
(Increase) decrease in inventories | (34,527) | 27,077 | (8,533) |
(Increase) decrease in prepaid expenses and other assets | (152,071) | 295,876 | 15,669 |
Increase (decrease) in accounts payable | 188,518 | (133,815) | 75,281 |
(Decrease) increase in accrued interest | (694) | 182,578 | (4,460) |
Increase (decrease) in accrued expenses and other liabilities | 235,446 | (180,479) | 96,490 |
Increase (decrease) in customer deposits | 1,426,647 | (1,643,560) | 280,139 |
Dividends received from unconsolidated affiliates | 0 | 2,215 | 150,177 |
Other, net | (15,757) | 12,061 | 28,362 |
Net cash (used in) provided by operating activities | (1,877,815) | (3,731,653) | 3,716,366 |
Investing Activities | |||
Purchases of property and equipment | (2,229,704) | (1,965,131) | (3,024,663) |
Cash received on settlement of derivative financial instruments | 44,492 | 15,874 | 7,621 |
Cash paid on settlement of derivative financial instruments | (74,249) | (161,335) | (68,836) |
Investments in and loans to unconsolidated affiliates | (70,228) | (100,609) | (25,569) |
Cash received on loans to unconsolidated affiliates | 31,334 | 21,086 | 32,870 |
Proceeds from the sale of property and equipment and other assets | 176,039 | 27,796 | 0 |
Other, net | (22,423) | (16,247) | (12,829) |
Net cash used in investing activities | (2,144,739) | (2,178,566) | (3,091,406) |
Financing Activities | |||
Debt proceeds | 4,467,789 | 13,547,189 | 3,525,564 |
Debt issuance costs | (201,698) | (374,715) | (50,348) |
Repayments of debt | (2,296,990) | (3,845,133) | (4,060,244) |
Premium on repayment of debt | (135,372) | 0 | 0 |
Proceeds from issuance of commercial paper notes | 0 | 6,765,816 | 26,240,540 |
Repayments of commercial paper notes | (414,570) | (7,837,635) | (25,613,111) |
Purchase of treasury stock | 0 | 0 | (99,582) |
Dividends paid | 0 | (326,421) | (602,674) |
Proceeds from common stock issuances | 1,621,860 | 1,431,375 | 0 |
Other, net | (442) | (10,688) | (10,516) |
Net cash provided by (used in) financing activities | 3,040,577 | 9,349,788 | (670,371) |
Effect of exchange rate changes on cash | (727) | 1,167 | 1,297 |
Net (decrease) increase in cash and cash equivalents | (982,704) | 3,440,736 | (44,114) |
Cash and cash equivalents at beginning of year | 3,684,474 | 243,738 | 287,852 |
Cash and cash equivalents at end of year | 2,701,770 | 3,684,474 | 243,738 |
Cash paid during the year for: | |||
Interest, net of amount capitalized | 834,245 | 418,164 | 246,312 |
Non-Cash Investing Activities | |||
Notes receivable issued upon sale of property and equipment and other assets | 16,000 | 53,419 | 0 |
Purchases of property and equipment included in accounts payable and accrued expenses and other liabilities | 14,097 | 16,189 | 86,155 |
Non-Cash Financing Activities | |||
Purchase of Silversea Cruises non-controlling interest | 0 | 592,313 | 0 |
Termination of Silversea Cruises contingent consideration obligation | 0 | 16,564 | 0 |
Common stock issuances pending cash settlement and included in trade receivables | $ 0 | $ 121,352 | $ 0 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Balance at Dec. 31, 2018 | $ 11,105,461 | $ 2,358 | $ 3,420,900 | $ 10,263,282 | $ (627,734) | $ (1,953,345) |
Increase (Decrease) in Stockholders' Equity | ||||||
Activity related to employee stock plans | 67,902 | 7 | 73,059 | (5,164) | ||
Common stock dividends | (618,843) | (618,843) | ||||
Changes related to cash flow derivative hedges | (151,313) | (151,313) | ||||
Change in defined benefit plans | (19,535) | (19,535) | ||||
Foreign currency translation adjustments | 869 | 869 | ||||
Purchases of treasury stock | (99,582) | (99,582) | ||||
Net Income (Loss) attributable to Royal Caribbean Cruises Ltd. | 1,878,887 | 1,878,887 | ||||
Balance at Dec. 31, 2019 | 12,163,846 | 2,365 | 3,493,959 | 11,523,326 | (797,713) | (2,058,091) |
Increase (Decrease) in Stockholders' Equity | ||||||
Activity related to employee stock plans | 29,759 | 9 | 29,750 | |||
Common stock issuance | 1,552,726 | 226 | 1,552,500 | |||
Common stock dividends | (163,089) | (163,089) | ||||
Changes related to cash flow derivative hedges | 38,010 | 38,010 | ||||
Change in defined benefit plans | (19,984) | (19,984) | ||||
Foreign currency translation adjustments | 40,346 | 40,346 | ||||
Purchases of treasury stock | 0 | 5,900 | (5,900) | |||
Net Income (Loss) attributable to Royal Caribbean Cruises Ltd. | (5,797,462) | (5,797,462) | ||||
Equity component of convertible notes, net of issuance costs | 307,640 | 307,640 | ||||
Acquisition of Silversea non-controlling interest | 608,877 | 52 | 608,825 | |||
Balance at Dec. 31, 2020 | 8,760,669 | 2,652 | 5,998,574 | 5,562,775 | (739,341) | (2,063,991) |
Increase (Decrease) in Stockholders' Equity | ||||||
Activity related to employee stock plans | 62,996 | 5 | 62,991 | |||
Common stock issuance | 1,495,902 | 170 | 1,495,732 | |||
Changes related to cash flow derivative hedges | 4,046 | 4,046 | ||||
Change in defined benefit plans | 8,707 | 8,707 | ||||
Foreign currency translation adjustments | 15,703 | 15,703 | ||||
Purchases of treasury stock | (1,968) | (1,968) | ||||
Net Income (Loss) attributable to Royal Caribbean Cruises Ltd. | (5,260,499) | (5,260,499) | ||||
Balance at Dec. 31, 2021 | $ 5,085,556 | $ 2,827 | $ 7,557,297 | $ 302,276 | $ (710,885) | $ (2,065,959) |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||||
Common stock dividends declared (in dollars per share) | $ 0.78 | $ 0.78 | $ 0.78 | $ 2.96 |
General
General | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | Note 1 . General Description of Business We are a global cruise company. We own and operate three global cruise brands: Royal Caribbean International, Celebrity Cruises and Silversea Cruises (collectively, our "Global Brands"). We also own a 50% joint venture interest in TUI Cruises GmbH ("TUIC"), which operates the German brands TUI Cruises and Hapag-Lloyd Cruises (collectively, our "Partner Brands"). We account for our investments in our Partner Brands under the equity method of accounting. Together, our Global Brands and our Partner Brands operated a combined 61 ships as of December 31, 2021. Our ships offer a selection of worldwide itineraries that call on more than 1,000 destinations on all seven continents. Management's Plan and Liquidity We have restarted our global cruise operations in a phased manner, following our voluntary suspension of global cruise operations that commenced in March of 2020 in response to the COVID-19 pandemic. Our return to service efforts incorporate our enhanced health and safety protocols, and the requirements of regulatory agencies, which has resulted in reduced guest occupancy, modified itineraries and vaccination protocols. By the end of December 2021, we operated 50 of our Global and Partner Brand ships, representing over 85% of our fleet's capacity, and carried approximately 1.3 million guests since we resumed operations. We expect to operate approximately 95% of our planned capacity in the first quarter of 2022. Additionally, we expect that the rest of the fleet will return to operations before the summer season. Uncertainties remain as to the specifics, timing and costs of administering and implementing our health and safety measures, some of which may be significant. Based on our assessment of these requirements and recommendations, the status of COVID-19 infection, and its related variants, and/or vaccination rates in the U.S. or globally or for other reasons, we may determine it necessary to cancel or modify certain of our Global Brands’ cruise sailings. We believe the impact to our global bookings resulting from COVID-19 will continue to have a material negative impact on our results of operations and liquidity, which may be prolonged beyond containment of the disease and its variants. Significant events affecting travel, including COVID-19 and our gradual resumption of cruise operations, typically have an impact on the booking pattern for cruise vacations, with the full extent of the impact generally determined by the length of time the event influences travel decisions. The estimation of our future liquidity requirements include numerous assumptions that are subject to various risks and uncertainties. The principal assumptions used to estimate our future liquidity requirements consist of: • Expected continued gradual resumption of cruise operations; • Expected sustained increase in revenue per available passenger cruise day during our continued resumption of cruise operations; • Expected lower than comparable historical occupancy levels during our continued resumption of cruise operations, increasing over time until we reach historical occupancy levels; and • Expected spend during our continued resumption of cruise operations, including returning our crew members to our vessels and maintaining enhanced health and safety protocols. There can be no assurance that our assumptions and estimates are accurate due to possible variables, including, but not limited to, the uncertainties associated with regulatory requirements and recommendations, subsequent changes to and/or enforceability of those requirements and recommendations, our ability to meet the requirements and recommendations, and whether efforts by countries to contain the disease and its variants will further restrict our ability to resume operations. We have implemented a number of proactive measures to mitigate the financial and operational impacts of COVID-19, including reduction of capital expenditures and operating expenses, the issuance of debt and shares of our common stock, the amendment of credit agreements to defer payments, the waiver and/or modification of covenant requirements and the suspension of dividend payments. Additionally, we expect to continue to pursue refinancing opportunities to reduce interest expense and extend maturities. As of December 31, 2021, we had liquidity of $3.5 billion, including $0.1 billion of undrawn revolving credit facility capacity, $2.7 billion in cash and cash equivalents and a $0.7 billion commitment for a 364-day term loan facility. Our revolving credit facilities were mostly utilized through a combination of amounts drawn and letters of credit issued under the facilities as of December 31, 2021. We temporarily applied the net proceeds of the $1.0 billion January 2022 Unsecured Notes to repay borrowings under our revolving credit facilities, bringing our undrawn revolving credit facility capacity to $1.1 billion as of the date of the issuance of this report, from $0.1 billion as of December 31, 2021. During the fourth quarter of 2021, we amended $7.3 billion of outstanding export-credit financing plus committed export-credit facilities to modify financial covenant levels for 2023 and 2024, following the waiver period through and including the fourth quarter of 2022. Refer to Note 8. Debt for further discussion on the $1.0 billion senior notes issued in January of 2022, our 2021 financing activities, and for further information regarding the amendments made to our debt facilities and credit card processing agreements, including related covenants. As of December 31, 2021, we were in compliance with our financial covenants. Based on our assumptions regarding the impact of COVID-19 and our resumption of operations, as well as our present financial condition, we believe that we have sufficient financial resources to fund our obligations for at least the next twelve months from the issuance of these financial statements. Beyond the next 12 months, in June of 2023, approximately $3.2 billion of long- term debt will need to be refinanced in order to maintain the Company's liquidity position. In February 2022, we entered into certain agreements with Morgan Stanley & Co., LLC (“MS”) where MS agrees to provide backstop committed financing to refinance, repurchase and/or repay in whole or in part our existing and outstanding 10.875% Senior Secured Notes due 2023, 9.125% Priority Guaranteed Notes due 2023, and 4.25% Convertible Notes due 2023. Pursuant to the agreements, we may, at our sole option, issue and sell to MS (subject to the satisfaction of certain conditions) five-year senior unsecured notes with gross proceeds of up to $3.15 billion at any time between April 1, 2023 and June 29, 2023, to refinance the afo rementioned notes. If the Company is unable to maintain the required minimum level of liquidity or negotiate its minimum liquidity requirements, it could have a significant adverse effect on the Company’s business, financial condition and operating results. Basis for Preparation of Consolidated Financial Statements The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Estimates are required for the preparation of financial statements in accordance with these principles. Actual results could differ from these estimates. Refer to Note 2 . Summary of Significant Accounting Policies for a discussion of our significant accounting policies. All significant intercompany accounts and transactions are eliminated in consolidation. We consolidate entities over which we have control, usually evidenced by a direct ownership interest of greater than 50%, and variable interest entities where we are determined to be the primary beneficiary. Refer to Note 7 . 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. Effective March 19, 2021, we sold our wholly-owned brand, Azamara Cruises ("Azamara"), including its three-ship fleet and associated intellectual property, to Sycamore Partners for $201 million, before closing adjustments. The sale of Azamara does not represent a strategic shift that will have a major effect on our operations and financial results, as we continue to provide similar itineraries to and source passengers from the markets served by the Azamara business. Therefore, the sale of Azamara did not meet the criteria for discontinued operations reporting. Effective March 19, 2021, we no longer consolidate Azamara's balance sheet nor recognize its results of operations in our consolidated financial statements. We recognized an immaterial gain on the sale during the quarter ended March 31, 2021 and have agreed to provide certain transition services to Azamara for a period of time for a fee. On July 9, 2020, we acquired the remaining 33.3% interest in Silversea Cruises that we did not already own from Heritage Cruise Holding Ltd. As a result of the acquisition of the noncontrolling interest, Silversea Cruises is now a wholly owned cruise brand. As consideration for the noncontrolling interest, we issued to Heritage 5.2 million shares of common stock, par value $0.01 per share, of Royal Caribbean Cruises Ltd. Pursuant to the agreement governing the acquisition, among other things, the parties terminated any existing obligation to issue Heritage any contingent consideration, at fair value, in connection with our acquisition of a 66.7% interest in Silversea Cruises on July 31, 2018. The share purchase did not result in a change of control. The purchase was accounted for as an equity transaction and no gain or loss was recognized in earnings. Prior to October 1, 2021, we consolidated the operating results of Silversea Cruises on a three-month reporting lag to allow for more timely preparation of our consolidated financial statements. Effective October 1, 2021, we eliminated the three-month reporting lag to reflect Silversea Cruises' financial position, results of operations and cash flows concurrently and consistently with the fiscal calendar of the Company ("elimination of the Silversea reporting lag"). The elimination of the Silversea reporting lag represents a change in accounting principle which we believe to be preferable because it provides 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 reporting lag was immaterial to prior periods and is immaterial for our fiscal year ended December 31, 2021. As a result, we have accounted for this change in accounting principle in our consolidated results for the year ended December 31, 2021. Accordingly, the results of Silversea Cruises from October 1, 2020 to December 31, 2021 are included in our consolidated statement of comprehensive loss for the year ended December 31, 2021. To effect the change, we have reflected the third quarter 2021 operating results for Silversea Cruises, which were a net loss of $62.6 million within Other income (expense) in our consolidated statement of comprehensive loss for the year ended December 31, 2021. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 . Summary of Significant Accounting Policies Revenues and Expenses Deposits received on sales of passenger cruises are initially recorded as customer deposit liabilities on our balance sheet. Customer deposits are subsequently recognized as passenger ticket revenues, together with revenues from onboard and other goods and services and all associated cruise operating expenses of a voyage. For further information on revenue recognition, refer to Note 3 . Revenue . Cash and Cash Equivalents Cash and cash equivalents include cash and marketable securities with original maturities of less than 90 days. Inventories Inventories consist of provisions, supplies and fuel carried at the lower of cost (weighted-average) or net realizable value. Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. We capitalize interest as part of the cost of acquiring certain assets. Improvement costs that we believe add value to our ships are capitalized as additions to the ship, the useful lives of the improvements are estimated and depreciated over the shorter of the improvements' estimated useful lives or that of the associated ship, and the replaced assets are disposed of on a net cost basis. The estimated cost and accumulated depreciation of replaced or refurbished ship components are written off and any resulting losses are recognized in Cruise operating expenses . Liquidated damages received from shipyards as a result of the late delivery of a new ship are recorded as reductions to the cost basis of the ship. Depreciation of property and equipment is computed using the straight-line method over the estimated useful life of the asset. The useful lives of our ships are generally 30-35 years, net of a 10%-15% projected residual value. The 30-35-year useful life and 10%-15% residual value are based on the weighted-average of all major components of a ship. Our useful life and residual value estimates take into consideration the impact of anticipated technological changes, long-term cruise and vacation market conditions and historical useful lives of similarly-built ships. In addition, we take into consideration our estimates of the weighted-average useful lives of the ships' major component systems, such as hull, superstructure, main electric, engines and cabins. We employ a cost allocation methodology at the component level, in order to support the estimated weighted-average useful lives and residual values, as well as to determine the net cost basis of assets being replaced. Given the very large and complex nature of our ships, our accounting estimates related to ships and determinations of ship improvement costs to be capitalized require considerable judgment and are inherently uncertain. Depreciation for assets under finance leases is computed using the shorter of the lease term or related asset life, unless the asset is a finance lease due to title transferring or a purchase option that is reasonably certain of being exercised, in which case the asset is depreciated over the related asset life. Depreciation of property and equipment is computed utilizing the following useful lives: Years Ships generally, 30-35 Ship improvements 3-25 Buildings and improvements 10-40 Computer hardware and software 3-10 Transportation equipment and other 3-30 Leasehold improvements Shorter of remaining lease term or useful life 3-30 We periodically review estimated useful lives and residual values for ongoing reasonableness, considering long term views on our intended use of each class of ships and the planned level of improvements to maintain and enhance vessels within those classes. In the event a factor is identified that may trigger a change in the estimated useful lives and residual values of our ships, a review of the estimate is completed. We review long-lived assets for impairment whenever events or changes in circumstances indicate, based on estimated undiscounted future cash flows, that the carrying value of these assets may not be fully recoverable. For purposes of recognition and measurement of an impairment loss, long-lived assets are grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. The lowest level for which we maintain identifiable cash flows that are independent of the cash flows of other assets and liabilities is at the ship level for our ships. If estimated future cash flows are less than the carrying value of an asset, an impairment charge is recognized to the extent its carrying value exceeds fair value. Refer to Note 6 . Property and Equipment for further information on determination of fair value for long-lived assets. We use the deferral method to account for drydocking costs. Under the deferral method, drydocking costs incurred are deferred and charged to expense on a straight-line basis over the period to the next scheduled drydock, which we estimate to be a period of thirty Goodwill Goodwill represents the excess of cost over the fair value of net tangible and identifiable intangible assets acquired. We review goodwill for impairment at the reporting unit level annually or, when events or circumstances dictate, more frequently. The impairment review for goodwill consists of a qualitative assessment of whether it is more-likely-than-not that a reporting unit's fair value is less than its carrying value, and if necessary, a goodwill impairment test. Factors to consider when performing the qualitative assessment include general economic conditions, limitations on accessing capital, changes in forecasted operating results, changes in fuel prices and fluctuations in foreign exchange rates. If the qualitative assessment demonstrates that it is more-likely-than-not that the estimated fair value of the reporting unit exceeds its carrying value, it is not necessary to perform the goodwill impairment test. We may elect to bypass the qualitative assessment and proceed directly to step one, for any reporting unit, in any period. On a periodic basis, we elect to bypass the qualitative assessment and proceed to step one to corroborate the results of recent years' qualitative assessments. We can resume the qualitative assessment for any reporting unit in any subsequent period. The goodwill impairment analysis consists of a comparison of the fair value of the reporting unit with its carrying value. We typically estimate the fair value of our reporting units using a discounted cash flow model, which may also include a combination of a market-based valuation approach. The estimation of fair value utilizing discounted expected future cash flows includes numerous uncertainties which require our significant judgment when making assumptions of expected revenues, operating costs, marketing, selling and administrative expenses, interest rates, ship additions and retirements as well as assumptions regarding the cruise vacation industry's competitive environment and general economic and business conditions, among other factors. The principal assumptions used in the discounted cash flow model for our 2021 impairment assessments were: (i) forecasted net revenues, primarily the timing of returning to normalized operations, occupancy rates from existing and expected ship deliveries, and terminal growth rate; and (ii) weighted average cost of capital (i.e., discount rate). The discounted cash flow model uses the most current projected operating results for the upcoming fiscal year as a base. We discount the projected cash flows using rates specific to the reporting unit based on its weighted-average cost of capital. If the fair value of the reporting unit exceeds its carrying value, no write-down of goodwill is required. If the fair value of the reporting unit is less than the carrying value of its net assets, an impairment is recognized based on the amount by which the carrying value of a reporting unit exceeds its fair value, not to exceed the total amount of goodwill allocated to such reporting unit. Intangible Assets In connection with our acquisitions, we have acquired certain intangible assets to which value has been assigned based on our estimates. Intangible assets that are deemed to have an indefinite life are not amortized, but are subject to an annual impairment test, or when events or circumstances dictate, more frequently. The impairment review for indefinite-life intangible assets can be performed using a qualitative or quantitative impairment assessment. The quantitative assessment consists of a comparison of the fair value of the asset with its carrying value. We estimate the fair value of these assets using a discounted cash flow model and various valuation methods depending on the nature of the intangible asset, such as the relief-from-royalty method for trademarks and trade names. The principal assumptions used in the discounted cash flows model for our 2021 impairment assessments were: (i) forecasted net revenues, primarily the timing of returning to normalized operations, occupancy rates from existing and expected ship deliveries, and terminal growth rate; (ii) royalty rate; and (iii) weighted average cost of capital (i.e., discount rate). If the carrying value exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. If the fair value exceeds its carrying value, the indefinite-life intangible asset is not considered impaired. Other intangible assets assigned finite useful lives are amortized on a straight-line basis over their estimated useful lives. Contingencies — Litigation On an ongoing basis, we assess the potential liabilities related to any lawsuits or claims brought against us. While it is typically difficult to determine the timing and ultimate outcome of such actions, we use our best judgment to determine if it is probable that we will incur an expense related to the settlement or final adjudication of such matters and whether a reasonable estimation of such probable loss, if any, can be made. In assessing probable losses, we take into consideration estimates of the amount of insurance recoveries, if any, which are recorded as assets when recoverability is probable. We accrue a liability when we believe a loss is probable and the amount of loss can be reasonably estimated. Due to the inherent uncertainties related to the eventual outcome of litigation and potential insurance recoveries, it is possible that certain matters may be resolved for amounts materially different from any provisions or disclosures that we have previously made. Advertising Costs Advertising costs are expensed as incurred except those costs which result in tangible assets, such as brochures, which are treated as prepaid expenses and charged to expense as consumed. Advertising costs consist of media and online advertising as well as brochure, production and direct mail costs. Media advertising was $303.2 million, $138.1 million and $309.4 million, and brochure, production and direct mail costs were $88.9 million, $69.1 million and $156.0 million for the years ended December 31, 2021, 2020 and 2019, respectively. Derivative Instruments We enter into various forward, swap and option contracts to manage our interest rate exposure and to limit our exposure to fluctuations in foreign currency exchange rates and fuel prices. These instruments are recorded on the balance sheet at their fair value and the vast majority are designated as hedges. We also use non-derivative financial instruments designated as hedges of our net investment in our foreign operations and investments. Although certain of our derivative financial instruments do not qualify or are not accounted for under hedge accounting, our objective is not to hold or issue derivative financial instruments for trading or other speculative purposes. At inception of the hedge relationship, a derivative instrument that hedges the exposure to changes in the fair value of a firm commitment or a recognized asset or liability is designated as a fair value hedge. A derivative instrument that hedges a forecasted transaction or the variability of cash flows related to a recognized asset or liability is designated as a cash flow hedge. Changes in the fair value of derivatives that are designated as fair value hedges are offset against changes in the fair value of the underlying hedged assets, liabilities or firm commitments. Gains and losses on derivatives that are designated as cash flow hedges are recorded as a component of Accumulated other comprehensive loss until the underlying hedged transactions are recognized in earnings. The foreign currency transaction gain or loss of our non-derivative financial instruments 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. In certain hedges of our net investment in foreign operations and investments, we exclude forward points from the assessment of hedge effectiveness and we amortize the related amounts directly into earnings. On an ongoing basis, we assess whether derivatives used in hedging transactions are "highly effective" in offsetting changes in the fair value or cash flow of hedged items. For our net investment hedges, we use the dollar offset method to measure effectiveness. For all other hedging programs, we use the long-haul method to assess hedge effectiveness using regression analysis for each hedge relationship. The methodology for assessing hedge effectiveness is applied on a consistent basis for each one of our hedging programs (i.e., interest rate, foreign currency ship construction, foreign currency net investment and fuel). For our regression analyses, we use an observation period of up to three years, utilizing market data relevant to the hedge horizon of each hedge relationship. High effectiveness is achieved when a statistically valid relationship reflects a high degree of offset and correlation between the changes in the fair values of the derivative instrument and the hedged item. If it is determined that a derivative is not highly effective as a hedge or hedge accounting is discontinued, any change in fair value of the derivative since the last date at which it was determined to be effective is recognized in earnings. Cash flows from derivative instruments that are designated as fair value or cash flow hedges are classified in the same category as the cash flows from the underlying hedged items. In the event that hedge accounting is discontinued, cash flows subsequent to the date of discontinuance are classified within investing activities. Cash flows from derivative instruments not designated as hedging instruments are classified as investing activities. We consider the classification of the underlying hedged item’s cash flows in determining the classification for the designated derivative instrument’s cash flows. We classify derivative instrument cash flows from hedges of benchmark interest rate or hedges of fuel expense as operating activities due to the nature of the hedged item. Likewise, we classify derivative instrument cash flows from hedges of foreign currency risk on our newbuild ship payments as investing activities. Foreign Currency Translations and Transactions We translate assets and liabilities of our foreign subsidiaries whose functional currency is the local currency, at exchange rates in effect at the balance sheet date. We translate revenues and expenses at weighted-average exchange rates for the period. Equity is translated at historical rates and the resulting foreign currency translation adjustments are included as a component of Accumulated other comprehensive loss , which is reflected as a separate component of Shareholders' equity . Exchange gains or losses arising from the remeasurement of monetary assets and liabilities denominated in a currency other than the functional currency of the entity involved are immediately included in our earnings, except for certain liabilities that have been designated to act as a hedge of a net investment in a foreign operation or investment. Exchange gains (losses) were $24.3 million, $(1.5) million and $0.4 million for the years ended December 31, 2021, 2020 and 2019, respectively, and were recorded within Other income (expense) . The majority of our transactions are settled in United States dollars. Gains or losses resulting from transactions denominated in other currencies are recognized in income at each balance sheet date. Concentrations of Credit Risk We monitor our credit risk associated with financial and other institutions with which we conduct significant business and, to minimize these risks, we select counterparties with credit risks acceptable to us and we seek to limit our exposure to an individual counterparty. Credit risk, including but not limited to counterparty nonperformance under derivative instruments, our credit facilities and new ship progress payment guarantees, is not considered significant, as we primarily conduct business with large, well-established financial institutions, insurance companies and export credit agencies many of which we have long-term relationships with and which have credit risks acceptable to us or where the credit risk is spread out among a large number of counterparties. As of December 31, 2021 and December 31, 2020, we had counterparty credit risk exposure under our derivative instruments of $1.9 million and $26.9 million respectively, 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. 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. (Loss) Earnings Per Share Basic (loss) earnings per share is computed by dividing Net (Loss) Income attributable to Royal Caribbean Cruises Ltd. by the weighted-average number of shares of common stock outstanding during each period. Diluted (loss) earnings per share incorporates the incremental shares issuable upon the assumed exercise of stock options and conversion of potentially dilutive securities. Stock-Based Employee Compensation We measure and recognize compensation expense at the estimated fair value of employee stock awards. Compensation expense for awards and the related tax effects are recognized as they vest. We use the estimated amount of expected forfeitures to calculate compensation costs for all outstanding awards. Segment Reporting As of December 31, 2021, we controlled and operated three global cruise brands: Royal Caribbean International, Celebrity Cruises and Silversea Cruises. We also own a 50% joint venture interest in TUIC, that operates the German brands TUI Cruises and Hapag-Lloyd Cruises. We believe our brands possess the versatility to enter multiple cruise market segments within the cruise vacation industry. Although each of these brands has its own marketing style as well as ships and crews of various sizes, the nature of the products sold and services delivered by these brands share a common base (i.e., the sale and provision of cruise vacations). Our brands also have similar itineraries as well as similar cost and revenue components. In addition, our brands source passengers from similar markets around the world and operate in similar economic environments with a significant degree of commercial overlap. As a result, our brands have been aggregated as a single reportable segment based on the similarity of their economic characteristics, types of consumers, regulatory environment, maintenance requirements, supporting systems and processes as well as products and services provided. Our Chief Executive Officer has been identified as the chief operating decision-maker and all significant operating decisions including the allocation of resources are based upon the analyses of the Company as one segment. Refer to Note 3 . Revenue for passenger ticket revenue information by geographic area. Recent Accounting Pronouncements In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848), which provides optional expedients and exceptions to the current guidance on contract modifications and hedging relationships to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative reference rates. Subsequently, in January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848), which presents amendments to clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The guidance in both ASUs was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. We are currently evaluating the impact of the new guidance on our consolidated financial statements. The impact, if any, will be dependent on the terms of any future contract modifications related to a change in reference rate. In August 2020, the FASB issued ASU No. 2020-06 |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Note 3 . Revenue Revenue Recognition Revenues are measured based on consideration specified in our contracts with customers and are recognized as the related performance obligations are satisfied. The majority of our revenues are derived from passenger cruise contracts which are reported within Passenger ticket revenues in our consolidated statements of comprehensive income (loss). Our performance obligation under these contracts is to provide a cruise vacation in exchange for the ticket price. We satisfy this performance obligation and recognize revenue over the duration of each cruise, which generally range from one Passenger ticket revenues include charges to our guests for port costs that vary with passenger head counts. These types of port costs, along with port costs that do not vary by passenger head counts, are included in our operating expenses. The amounts of port costs charged to our guests and included within Passenger ticket revenues on a gross basis were $104.8 million,$125.0 million and $666.8 million for the years ended December 31, 2021, 2020 and 2019, respectively. Our total revenues also include Onboard and other revenues , which consist primarily of revenues from the sale of goods and services onboard our ships that are not included in passenger ticket prices. We receive payment before or concurrently with the transfer of these goods and services to passengers during a cruise and recognize revenue at the time of transfer over the duration of the related cruise. As a practical expedient, we have omitted disclosures on our remaining performance obligations as the duration of our contracts with customers is less than a year. Disaggregated Revenues The following table disaggregates our total revenues by geographic regions where we provide cruise itineraries (in thousands): Year Ended December 31, 2021 2020 2019 Revenues by itinerary North America(1) $ 1,039,783 $ 1,342,429 $ 6,392,354 Asia/Pacific(2) 128,348 411,865 1,529,898 Europe(3) 180,256 18,604 1,942,057 Other regions 77,985 241,590 567,904 Total revenues by itinerary 1,426,372 2,014,488 10,432,213 Other revenues(4) 105,761 194,317 518,448 Total revenues $ 1,532,133 $ 2,208,805 $ 10,950,661 (1) Includes the United States, Canada, Mexico and the Caribbean. (2) Includes Southeast Asia (e.g., Singapore, Thailand and the Philippines), East Asia (e.g., China and Japan), South Asia (e.g., India and Pakistan) and Oceania (e.g., Australia and Fiji Islands) regions. (3) Includes European countries (e.g., the Nordics, Germany, France, Italy, Spain and the United Kingdom). (4) Includes revenues primarily related to cancellation fees, vacation protection insurance and pre- and post-cruise tours and fees for operating certain port facilities. Amounts also include revenues related to our bareboat charter, procurement and management related services we perform on behalf of our unconsolidated affiliates. Refer to Note 7 . Other Assets for more information on our unconsolidated affiliates. Passenger ticket revenues are attributed to geographic areas based on where the reservation originates. For the years ended December 31, 2021, 2020 and 2019, our guests were sourced from the following areas: Year Ended December 31, 2021 2020 2019 Passenger ticket revenues: United States 76 % 67 % 65 % All other countries (1) 24 % 33 % 35 % (1) No other individual country's revenue exceeded 10% for the years ended December 31, 2021, 2020 and 2019. Customer Deposits and Contract Liabilities Our payment terms generally require an upfront deposit to confirm a reservation, with the balance due prior to the cruise. Deposits received on sales of passenger cruises are initially recorded as Customer deposits in our consolidated balance sheets and subsequently recognized as passenger ticket revenues during the duration of the cruise. Additionally, refunds payable to guests who have elected cash refunds for cancelled sailings are recorded in Accounts Payable . ASC 606, Revenues from Contracts with Customers , defines a “contract liability” as an entity’s obligation to transfer goods or services to a customer for which the entity has received consideration from the customer. We do not consider customer deposits to be a contract liability until the customer no longer retains the unilateral right, resulting from the passage of time, to cancel such customer's reservation and receive a full refund. The reduction in demand for cruising due to the COVID-19 pandemic resulted in lower than historical levels of advance bookings and the associated customer deposits received. At the same time, we experienced significant cancellations as a result of the COVID-19 pandemic, which led to issuance of refunds to customers, while the remainder have been rebooked on future cruises or received credits in lieu of cash refunds. As of December 31, 2021, refunds due to customers mostly as a result of cancelling their sailings were $38.8 million compared to $95.8 million as of December 31, 2020 and are included within Accounts payable in our consolidated balance sheets. Customer deposits also include deposits related to cancelled cruises prior to the election of a cash refund by guests. Due to the uncertainty related to the timing and pace of our return for cruising, we are unable to estimate the amount of the December 31, 2021 customer deposits that will be recognized in earnings compared to amounts that will be refunded to customers or issued as a credit for future travel through the end of 2022. Customer deposits presented in our consolidated balance sheets include contract liabilities of $814.3 million and $124.8 million as of December 31, 2021 and December 31, 2020, respectively. We have provided flexibility to guests with bookings on sailings cancelled due to COVID-19 by allowing guests to receive future cruise credits (“FCC”) or elect to receive refunds in cash. As of December 31, 2021, our customer deposit balance includes approximately $600.0 million of unredeemed FCCs. As of December 31, 2021, the expiration date of the FCCs was extended until April 2022 for sailings departing on or before December 2022. Given the uncertainty of travel demand caused by COVID-19 and lack of comparable historical experience of FCC redemptions, we are unable to estimate the number of FCCs that may expire unused in future periods and get recognized as breakage. We will update our breakage analysis as future information is received. Contract Receivables and Contract Assets Although we generally require full payment from our customers prior to their cruise, we grant credit terms to a relatively small portion of our revenue sourced in select markets outside of the United States. As a result, we have outstanding receivables from passenger cruise contracts in those markets. We also have receivables from credit card merchants for cruise ticket purchases and goods and services sold to guests during cruises that are collected before, during or shortly after the cruise voyage. In addition, we have receivables due from concessionaires onboard our vessels. These receivables are included within Trade and other receivables, net in our consolidated balance sheets. We have contract assets that are conditional rights to consideration for satisfying the construction services performance obligations under a service concession arrangement. As of December 31, 2021 and 2020, our contract assets were $52.9 million and $53.7 million, respectively, and were included within Other assets in our consolidated balance sheets. Given the short duration of our cruises and our collection terms, we do not have any other significant contract assets. Assets Recognized from the Costs to Obtain a Contract with a Customer Prepaid travel advisor commissions are an incremental cost of obtaining contracts with customers that we recognize as an asset and include within Prepaid expenses and other assets in our consolidated balance sheets. Prepaid travel advisor commissions were $75.4 million and $1.1 million as of December 31, 2021 and 2020, respectively. Our prepaid travel advisor commissions at December 31, 2020 were expensed and reported primarily within Other operating in our consolidated statements of comprehensive income (loss) during the year ended December 31, 2021. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Note 4 . Goodwill The impact of COVID-19 on our operating plans and projected cash flows resulted in the completion of interim impairment assessments in respect of certain reporting units as of March 31, 2020 and June 30, 2020, in addition to our annual goodwill impairment assessments performed as of November 30, 2020, and November 30, 2021. Refer to Note 1. General for further information regarding COVID-19 and its impact to the Company. In respect to the Royal Caribbean International reporting unit, we determined that the fair value of the Royal Caribbean International reporting unit exceeded its carrying value as of March 31, 2020 and June 30, 2020 by approximately 30% and 8%, respectively, resulting in no impairment to the Royal Caribbean International goodwill in those periods. We did not perform an interim impairment evaluation of Royal Caribbean International's goodwill during the quarter ended September 30, 2020 as no triggering events were identified. As of November 30, 2020, we performed our annual goodwill impairment review and determined the fair value of the Royal Caribbean International reporting unit exceeded its carrying value by approximately 14%. We did not perform interim impairment evaluations during the quarters ended March 31, 2021, June 30, 2021, and September 30, 2021 as no triggering events were identified. In respect to the Silversea Cruises reporting unit, we determined the carrying value of the reporting unit exceeded its fair value as of March 31, 2020. Accordingly, we recognized a goodwill impairment charge of $576.2 million for the quarter ended March 31, 2020. We did not perform interim impairment evaluations of Silversea Cruises' reporting unit during the quarters ended June 30, 2020 and September 30, 2020 as no triggering events were identified. As of November 30, 2020, we performed our annual goodwill impairment review and determined the fair value of the Silversea Cruises reporting unit exceeded its carrying value by approximately 12%. We did not perform interim impairment evaluations during the quarters ended March 31, 2021, June 30, 2021, and September 30, 2021 as no triggering events were identified. As of November 30, 2021, we performed our annual goodwill impairment reviews and determined no incremental impairment losses existed at the date of this annual assessment. We determined the fair value of the Royal Caribbean International and Silversea Cruises reporting units exceeded their carrying values by approximately 38% and 35%, respectively, at the date of this annual assessment. The gradual resumption of cruise operations, as further discussed in Note 1. General , and possibility of further delays or suspensions create uncertainty in forecasting operating cash flows. The fair value of the Royal Caribbean International reporting unit as of March 31, 2020 was determined using a probability-weighted discounted cash flow model. For the June 30, 2020 and November 30, 2020 assessments, we used a probability-weighted discounted cash flow model in combination with a market-based valuation approach. For the Silversea reporting unit, a probability-weighted discounted cash flow model in combination with a market-based valuation approach was used for all periods assessed in 2020. As of November 30, 2021, a discounted cash flow model was used in combination with a market-based valuation approach for both reporting units. This requires the use of assumptions that are subject to risk and uncertainties. The principal assumptions used in the discounted cash flow analyses that support our Royal Caribbean International and Silversea Cruises reporting unit impairment assessments consisted of: • Forecasted net revenues, primarily the timing of returning to normalized operations, occupancy rates from existing and expected ship deliveries, and terminal growth rate; and • Weighted average cost of capital (i.e., discount rate). The adverse impact COVID-19 will continue to have on our business, operating results, cash flows and overall financial condition is uncertain and may result in changes to the assumptions used in the impairment tests discussed above, which may result in impairments to these assets in the future. The carrying value of goodwill attributable to our Royal Caribbean International, Celebrity Cruises and Silversea Cruises reporting units and the changes in such balances during the years ended December 31, 2021 and 2020 were as follows (in thousands): Royal Caribbean International Celebrity Cruises Silversea Cruises (1) Total Balance at December 31, 2019 $ 299,226 $ 1,632 $ 1,084,786 $ 1,385,644 Impairment charge — — (576,208) (576,208) Transfer of goodwill attributable to the 2019 purchase of photo operations onboard our ships (2) (2,694) 2,694 — — Foreign currency translation adjustment 44 — — 44 Balance at December 31, 2020 296,576 4,326 508,578 809,480 Foreign currency translation adjustment (97) — — (97) Balance at December 31, 2021 $ 296,479 $ 4,326 $ 508,578 $ 809,383 __________________________________________________ (1) In 2018, we acquired a 66.7% equity stake in Silversea Cruises. Our controlling interest purchase price allocation was final during 2019. In 2020, we acquired the remaining 33.3% minority interest, making Silversea Cruises a wholly owned brand. Refer to Note 1. General for further information. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Intangible Assets | Note 5. Intangible Assets Intangible assets consist of finite and indefinite life assets and are reported within Other assets in our consolidated balance sheets. The impact of COVID-19 on our operating plans and projected cash flows resulted in the completion of an interim impairment assessment for the Silversea Cruises trade name as of March 31, 2020, in addition to our annual indefinite-lived intangible asset impairment assessments performed as of November 30, 2020 and November 30, 2021. Refer to Note 1. General for further information regarding COVID-19 and its impact to the Company. As a result of our evaluation, we determined the carrying value of the Silversea Cruises trade name exceeded its fair value as of March 31, 2020. Accordingly, we recognized an impairment charge of $30.8 million for the quarter ended March 31, 2020. We did not perform interim impairment evaluations of Silversea Cruises' trade name during the quarters ended June 30, 2020 and September 30, 2020, as no triggering events were identified. As of November 30, 2020, we performed our annual trade name impairment review and determined the fair value of the Silversea Cruise trade name exceeded its carrying value by approximately 3%. We did not perform interim impairment evaluations of Silversea Cruises' trade name during the quarters ended March 31, 2021, June 30, 2021, and September 30, 2021 as no triggering events were identified. As of November 30, 2021, we performed our annual trade name impairment review and determined no incremental impairment losses existed at the date of this annual assessment. We determined the fair value of the Silversea Cruises trade name exceeded its carrying value by approximately 19% at the date of this annual assessment. The adverse impact COVID-19 will continue to have on our business, operating results, cash flows and overall financial condition is uncertain and may result in changes to the assumptions used in the impairment tests discussed above. In addition, delays in achieving occupancy levels at historical levels or changes to our planned ship deliveries could adversely impact our expected occupancy rates and may result in additional impairment charges of the Silversea Cruises trade name in the future. The gradual resumption of cruise operations, as further discussed in Note 1. General , and possibility of further delays or suspensions create uncertainty in forecasting operating cash flows. The determination of our trade name fair values using a discounted cash flow model and various valuation methods depending on the nature of the intangible asset, such as the relief-from-royalty method, require the use of assumptions that are subject to risk and uncertainties. The principal assumptions used in the discounted cash flow analyses that support the Silversea Cruises trade name impairment assessments consisted of: • Forecasted net revenues, primarily the timing of returning to normalized operations, occupancy rates from existing and expected ship deliveries, and terminal growth rate; • Royalty rate; and • Weighted average cost of capital (i.e., discount rate). The following is a summary of our intangible assets as of December 31, 2021 (in thousands, except weighted average amortization period), with Silversea Cruises' trade name representing approximately $318.7 million of the indefinite-lived intangible asset balance: As of December 31, 2021 Remaining Weighted Average Amortization Period (Years) Gross Carrying Value Accumulated Amortization Accumulated Impairment Losses Net Carrying Value Finite-life intangible assets: Customer relationships 11.6 $ 97,400 $ 22,186 $ — $ 75,214 Galapagos operating license 22.6 47,669 9,802 — 37,867 Other finite-life intangible assets 0 11,560 11,560 — — Total finite-life intangible assets 156,629 43,548 — 113,081 Indefinite-life intangible assets (1) 352,275 — 30,800 321,475 Total intangible assets, net $ 508,904 $ 43,548 $ 30,800 $ 434,556 (1) Primarily relates to the Silversea Cruises trade name. The following is a summary of our intangible assets as of December 31, 2020 (in thousands, except weighted average amortization period): As of December 31, 2020 Remaining Weighted Average Amortization Period (Years) Gross Carrying Value Accumulated Amortization Accumulated Impairment Losses Net Carrying Value Finite-life intangible assets: Customer relationships 12.8 $ 97,400 $ 14,069 $ — $ 83,331 Galapagos operating license 23.8 47,669 7,621 — 40,048 Other finite-life intangible assets 0 11,560 11,560 — — Total finite-life intangible assets 156,629 33,250 — 123,379 Indefinite-life intangible assets (1) 352,275 — 30,800 321,475 Total intangible assets, net $ 508,904 $ 33,250 $ 30,800 $ 444,854 (1) Primarily relates to the Silversea Cruises trade name. The estimated future amortization for finite-life intangible assets for each of the next five years is as follows (in thousands): Year 2022 $ 8,179 2023 $ 8,179 2024 $ 8,179 2025 $ 8,179 2026 $ 8,179 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Note 6 . Property and Equipment Property and equipment consists of the following (in thousands): As of December 31, 2021 2020 Ships $ 31,357,703 $ 29,872,655 Ship improvements 2,152,457 2,108,922 Ships under construction 1,180,486 1,078,243 Land, buildings and improvements, including leasehold improvements and port facilities 746,785 524,849 Computer hardware and software, transportation equipment and other 1,650,249 1,678,903 Total property and equipment 37,087,680 35,263,572 Less—accumulated depreciation and amortization (1) (11,179,731) (10,016,977) $ 25,907,949 $ 25,246,595 (1) Amount includes accumulated depreciation and amortization for assets in service. Ships under construction include progress payments for the construction of new ships as well as planning, design, capitalized interest and other associated costs. We capitalized interest costs of $58.8 million, $59.1 million, and $56.5 million for the years ended December 31, 2021, 2020 and 2019, respectively. During 2021, we took delivery of Odyssey of the Seas , Silver Dawn and, with our joint venture partner TUIC, we took delivery of Hanseatic Spirit. The November 2021 delivery and related financing for the Silver Dawn was reported in our consolidated financial statements as of and for the year ended December 31, 2021, as a result of the elimination of the Silversea Cruises three month reporting lag. In January of 2022, we took delivery of Wonder of the Seas. Refer to Note 8 . Debt for further information on the financings for Odyssey of the Seas and Wonder of the Seas and to Note 9. Leases on the financing for Silver Dawn . During the first quarter 2020, we determined that the lease for Silver Explorer , operated by Silversea Cruises and previously classified as a finance lease, was an operating lease based on modification of the terms of the lease. Accordingly, Silver Explorer is included within Operating lease right-of use assets , Current portion of operating lease liabilities , and Long term lease liabilities in our consolidated balance sheets. Refer to Note 9 . Leases for further information. Long-lived Assets impairments We review our long-lived assets for impairment whenever events or circumstances indicate potential impairment losses exist. The impact of COVID-19 on our expected future operating cash flows, as well as decisions to dispose of certain vessels, resulted in the identification of impairment triggers for certain vessels in 2020. Refer to Note 1. General for further information regarding COVID-19 and its impact to the Company. We estimated the recoverability of certain vessels using undiscounted cash flow analyses at interim dates throughout 2020 and at December 31, 2020. A number of vessels were found to have net carrying values in excess of their estimated undiscounted future cash flows and, as such, were subject to fair value assessments. Fair value was determined based on our intended use of the identified vessels and, as such, we used a combination of discounted cash flows, replacement cost, scrap and residual value techniques to estimate fair value. Differences between the estimated fair values and the net carrying values were recorded as an impairment charge within the period the loss was identified. Consequently, we recorded $635.5 million of impairment losses during the year ended 2020. Included in this 2020 amount are $171.3 million impairment losses recorded for the three ships that we chartered to Pullmantur Holdings, prior to its filing for reorganization. Refer to Note 7 . Other Assets for further information regarding Pullmantur's reorganization. During the quarter ended September 30, 2020, we sold the ships previously chartered to Pullmantur Holdings to third parties for amounts approximating their carrying values and no further impairment was recorded. Also included in the $635.5 million impairment loss for the year ended December 31, 2020, is a $166.8 million impairment charge for the three Azamara ships included in the sale of the Azamara brand, effective March 19, 2021. There were no vessel impairment charges for the year ended December 31, 2021. The suspension of operations, as discussed in Note 1. General , and the possibility of further suspensions create uncertainty in forecasting undiscounted cash flows, which are used to determine if a vessel is at risk of impairment and in estimating the fair value of our ships. Our principal assumptions used in our undiscounted cash flows consisted of: • The timing of our return to service, changes in market conditions and port or other restrictions; • Forecasted net revenues, primarily the timing of returning to normalized operations, and occupancy rates; and • Intended use of the vessel for the remaining useful life. The adverse impact COVID-19 will continue to have on our business, operating results, cash flows and overall financial condition is uncertain and may result in changes to the assumptions used in the impairment tests discussed above, which may result in additional impairments to these assets in the future. During the years ended December 31, 2021 and 2020, we also determined that certain construction in progress projects would be reduced in scope or would no longer be completed as a result of our capital cost containment measures in response to the COVID-19 impact on our liquidity. We recorded property and equipment impairment charges of $55.2 million and $91.5 million, during the years ended December 31, 2021 and December 31, 2020, respectively, which primarily related to construction in progress assets. These impairment charges were reported within Impairment and Credit Losses in our consolidated statements of comprehensive (loss) income. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2021 | |
Other Assets [Abstract] | |
Other Assets | Note 7 . 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 ("TUIC"), our 50%-owned joint venture, which operates the brands TUI Cruises and Hapag-Lloyd Cruises, is a VIE. We have determined that we are not the primary beneficiary of TUIC. We believe that the power to direct the activities that most significantly impact TUIC’s economic performance are shared between ourselves and TUI AG, our joint venture partner. All the significant operating and financial decisions of TUIC require the consent of both parties, which we believe creates shared power over TUIC. Accordingly, we do not consolidate this entity and account for this investment under the equity method of accounting. On June 30, 2020, TUIC acquired Hapag-Lloyd Cruises, a luxury and expedition brand for German-speaking guests, from TUI AG for approximately €1.2 billion, or approximately $1.3 billion as of the purchase date. Hapag-Lloyd Cruises operates two luxury liners and two smaller expedition ships. We and TUI AG each made an equity contribution of €75.0 million, or approximately $84.2 million to TUIC to fund a portion of the purchase price, the remainder of which was financed by third-party financing. As of December 31, 2021, the net book value of our investment in TUIC was $444.4 million, primarily consisting of $322.4 million in equity and a loan of €103.0 million, or approximately $117.2 million, based on the exchange rate at December 31, 2021. As of December 31, 2020, the net book value of our investment in TUIC was $538.4 million, primarily consisting of $387.5 million in equity and a loan of €118.9 million, or approximately $145.5 million, based on the exchange rate at December 31, 2020. 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 and is secured by a first priority mortgage on the ship. The majority of these amounts were included within Other assets in our consolidated balance sheets. During the quarter ended March 31, 2021, we and TUI AG each contributed €59.5 million, or approximately $69.9 million based on the exchange rate at March 31, 2021, of additional equity through a combination of cash contributions and conversion of existing receivables. In June 2021, Hapag-Lloyd Cruises received delivery of the Hanseatic Spirit , a 230 berth luxury expedition cruise vessel. TUIC has various ship construction and financing agreements which include certain restrictions on each of our and TUI AG’s ability to reduce our current ownership interest in TUIC below 37.55% through May 2033. Our investment amount and outstanding term loan are substantially our maximum exposure to loss in connection with our investment in TUIC. We have determined that Pullmantur Holdings, in which we have a 49% noncontrolling interest and Springwater Capital LLC has a 51% interest, is a VIE for which we are not the primary beneficiary as we do not have the power to direct the activities that most significantly impact the entity's economic performance. In 2020, Pullmantur Holdings and certain of its subsidiaries filed for reorganization under the terms of the Spanish insolvency laws due to the negative impact of the COVID-19 pandemic on the companies, and on July 15, 2021, Pullmantur Holdings and certain of its subsidiaries filed for liquidation. We suspended the equity method of accounting for Pullmantur Holdings during the second quarter of 2020 as we do not intend to fund the entity's future losses and lost our ability to exert significant influence over the entity's activities as a result of the reorganization and liquidation process. In connection with the reorganization, we terminated the agreements chartering three of our ships to Pullmantur Holdings and sold the ships to third parties during the quarter ended September 30, 2020 for amounts approximating their carrying values. Refer to Note 6. Property and Equipment for further discussion on the impact of the ships' sale on our consolidated financial statements. In addition, we recognized a loss of $69.0 million within Other expense in our consolidated statements of comprehensive (loss) income, during the quarter ended June 30, 2020 representing deferred currency translation adjustment losses, net of hedging, as we no longer had significant involvement in the Pullmantur operation. During the quarter ended June 30, 2020, we entered into an agreement with Springwater Capital LLC to settle the guarantees previously issued by them and for costs that we incurred as a result of Pullmantur S.A.'s reorganization. As part of this settlement, we agreed to provide Pullmantur guests the option to apply their paid deposits toward a Royal Caribbean International or Celebrity Cruises sailing, or request a cash refund. The estimated total cash refunds expected to be paid to Pullmantur guests and other expenses incurred as part of the liquidation were approximately $10.2 million and $21.6 million for the years ended December 31, 2021 and 2020, respectively. These amounts were recorded in Other operating and in Other expense in our consolidated statements of comprehensive (loss) income for the years ended December 31, 2021 and 2020. 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 years ended December 31, 2021 and 2020, we made payments of $9.3 million and $0.2 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. Given the impact of the COVID-19 pandemic to our business, we evaluated whether our equity method investments were other than temporarily impaired. During the quarter ended March 31, 2020, we performed an impairment evaluation on our investment in Grand Bahama. As a result of the evaluation, we did not deem our investment balance to be recoverable and recorded an impairment charge of $30.1 million. The impairment assessment and the resulting charge on our equity method investment in Grand Bahama were determined based on management’s estimates and projections. We are currently recognizing our share of net accumulated equity method losses against the carrying value of our loans receivable from Grand Bahama, for which there were no impairments during 2021. For further information on the measurements used to estimate the fair value of our equity investments, refer to Note 16. Fair Value Measurements and Derivative Instruments. As of December 31, 2021, we had exposure to credit loss in Grand Bahama consisting of a $11.1 million loan. Our loan to Grand Bahama matures March of 2026 and bears interest at LIBOR plus 3.5% to 3.75%, capped at 5.75%. Interest payable on the loan is due on a semi-annual basis. During the year ended December 31, 2021, we received principal and interest payments of $8.9 million related to a term loan that had fully matured. We did not receive any principal and interest payments during the year ended December 31, 2020. The remaining 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. Effective April 1, 2020, we placed the loan in non-accrual status based on our review of Grand Bahama's projected cash flows which have been adversely affected by impacts to their operations caused by the 2019 crane accident related to Oasis of the Seas , Hurricane Dorian and most recently, COVID-19. During the year ended December 31, 2021, no credit losses were recorded related to the fully matured loan, nor the outstanding loan. The following tables set forth information regarding our investments accounted for under the equity method of accounting, including the entities discussed above, (in thousands): Year ended December 31, 2021 2020 2019 Share of equity (loss) income from investments $ (135,469) $ (213,286) $ 230,980 Dividends received (1) $ — $ 2,215 $ 150,177 (1) For the year ended December 31, 2019, TUI Cruises paid us dividends totaling €170.0 million, or approximately $190.3 million, based on the exchange rates at the time of the transactions. There were no dividends received from TUI Cruises for the years ended December 31, 2021 and 2020, respectively. The amounts included in the table above are net of tax withholdings. As of December 31, 2021 2020 Total notes receivable due from equity investments $ 130,587 $ 164,596 Less-current portion (1) 21,508 29,501 Long-term portion (2) $ 109,079 $ 135,095 ___________________________________________________________________ (1) Included within Trade and other receivables, net in our consolidated balance sheets. (2) Included within Other assets in our consolidated balance sheets. We also provide ship management services to TUI Cruises GmbH and provided management services to Pullmantur Holdings (which filed for reorganization, and liquidation in Spain in 2020). Additionally, we bareboat chartered to Pullmantur Holdings the vessels previously operated by its brands, which were retained by us following the sale of our 51% interest in Pullmantur Holdings. These bareboat charters were terminated when Pullmantur Holdings filed for reorganization in Spain. We recorded the following as it relates to these services in our operating results within our consolidated statements of comprehensive income (loss) (in thousands): Year ended December 31, 2021 2020 2019 Revenues $ 24,568 $ 21,372 $ 47,242 Expenses $ 6,275 $ 4,986 $ 4,304 Summarized financial information for our affiliates accounted for under the equity method of accounting was as follows (in thousands): As of December 31, 2021 2020 Current assets $ 736,263 $ 488,329 Non-current assets 5,241,302 5,456,061 Total assets $ 5,977,565 $ 5,944,390 Current liabilities $ 1,225,032 $ 1,106,700 Non- current liabilities 3,860,646 3,771,992 Total liabilities $ 5,085,678 $ 4,878,692 Year ended December 31, 2021 2020 2019 Total revenues $ 679,137 $ 619,795 $ 2,354,744 Total expenses (897,308) (939,481) (1,875,952) Net (loss) income $ (218,171) $ (319,686) $ 478,792 Credit Losses We reviewed our notes receivable for credit losses in connection with the preparation of our financial statements. In evaluating the credit loss allowance, management considered factors such as historical loss experience, the types of loans and the amount of loans in the loan portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, peer group information and prevailing economic conditions. Based on these credit loss estimation factors, during the year ended December 31, 2021, we recorded a loss provision of $43.8 million. The 2021 loss provision was primarily related to a note receivable of approximately $24.3 million due from an investment previously reported under the equity-method of accounting, which we subsequently determined was no longer recoverable and wrote the amount off from our credit loss allowance. The 2021 credit loss provision also includes $12.6 million of other receivable balances primarily related to loans due from travel advisors. Our credit loss allowance beginning balance as of January 1, 2021 primarily relates to credit losses recognized during 2020 on notes receivable for the previous sale of our property and equipment of $81.6 million. The following table summarizes our credit loss allowance related to receivables for the year ended December 31, 2021 (in thousands): Credit Loss Allowance Balance at January 1, 2021 $ 85,447 Loss provision for receivables 43,822 Write-offs $ (29,077) Balance at December 31, 2021 $ 100,192 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Note 8 . Debt Debt consists of the following (in thousands): As of December 31, Interest Rate (1) Maturities Through 2021 2020 Fixed rate debt: Unsecured senior notes 3.70% - 9.13% 2022 - 2028 $ 5,604,498 $ 2,464,994 Secured senior notes 10.88% - 11.50% 2023 - 2025 2,354,037 3,895,166 Unsecured term loans 2.53% - 5.41% 2028 - 2032 2,860,567 3,210,161 Convertible notes 2.88% - 4.25% 2023 1,558,780 1,454,488 Total fixed rate debt 12,377,882 11,024,809 Variable rate debt: Unsecured revolving credit facilities (2) 1.51% -1.91% 2022 - 2024 2,899,342 3,289,000 Unsecured UK Commercial paper 2021 — 409,319 USD unsecured term loan 0.71% - 3.17% 2022 - 2033 5,018,740 4,002,249 Euro unsecured term loan 1.74% -2.25% 2022 - 2028 685,633 705,064 Total variable rate debt 8,603,715 8,405,632 Finance lease liabilities 472,275 213,365 Total debt (3) 21,453,872 19,643,806 Less: unamortized debt issuance costs (363,532) (314,763) Total debt, net of unamortized debt issuance costs 21,090,340 19,329,043 Less—current portion including commercial paper (2,243,131) (1,371,087) Long-term portion $ 18,847,209 $ 17,957,956 (1) Interest rates based on outstanding loan balance as of December 31, 2021 and, for variable rate debt, includes either LIBOR or EURIBOR plus the applicable margin. (2) Includes $1.9 billion facility and $1.3 billion facility, the vast majority of which is due in 2024. Our $1.9 billion facility accrues interest at LIBOR plus a maximum interest rate margin of 1.30%, which interest rate was 1.51%, as of December 31, 2021 and is subject to a facility fee of 0.20%. Our $1.3 billion facility accrues interest at LIBOR plus a maximum interest rate margin of 1.70%, which interest was 1.91% as of December 31, 2021 and is subject to a facility fee of a maximum of 0.30%. (3) At December 31, 2021 and 2020, the weighted average interest rate for total debt was 5.47% and 6.02%, respectively. In March 2021, we amended our $1.55 billion unsecured revolving credit facility due October 2022 and our $1.0 billion unsecured term loan due April 2022. These amendments, among other things, extend the maturity date or termination date of certain of the advances and commitments, as applicable, under the facilities held by consenting lenders by 18 months and increase the interest rate margin and/or the facility fee, as applicable, with respect to advances and commitments held by such lenders. Consenting lenders also received a prepayment and commitment reduction equal to 20% of their respective outstanding advances and commitments. Following these amendments, the aggregate revolving capacity of the revolving credit facility is approximately $1.3 billion, with approximately $0.2 billion terminating in October 2022 and approximately $1.1 billion terminating in April 2024 and the aggregate principal balance of the term loan is approximately $0.9 billion, with approximately $0.3 billion maturing in April 2022 and approximately $0.6 billion maturing in October 2023. As of December 31, 2021, our aggregate revolving borrowing capacity was $3.2 billion and was mostly utilized through a combination of amounts drawn and letters of credit issued under the facilities. Certain of our surety agreements with third party providers for the benefit of certain agencies and associations that provide travel related bonds, allow the sureties to request collateral. We also have agreements with our credit card processors relating to customer deposits received by us for future voyages. These agreements allow the credit card processors to require us, under certain circumstances, to maintain a reserve that can be satisfied by posting collateral. As of December 31, 2021, we have posted letters of credit as collateral with our sureties and credit card processors under our revolving credit facilities in the amount of $193.3 million. Executed amendments are in place for the majority of our credit card processors, waiving reserve requirements tied to breach of our financial covenants through at least September 30, 2022, with modified covenants thereafter, and as such, we do not anticipate any incremental collateral requirements for the processors covered by these waivers in the next 12 months. We have a reserve with a processor where the agreement was amended in the first quarter of 2021, such that proceeds are held in reserve until the sailing takes place or the funds are refunded to the customer. The maximum projected cash exposure with the processor, including amounts currently held and reported in Trade and other receivables, is approximately $285.0 million. The amount and timing are dependent on future factors that are uncertain, such as the pace of resumption of cruise operations, volume of future deposits and whether we transfer our business to other processors. If we require additional waivers on the credit card processing agreements and are not able to obtain them, this could lead to the termination of these agreements or the trigger of reserve requirements. In March 2021, we took delivery of Odyssey of the Seas . To finance the purchase, we borrowed $994.1 million under a previously committed unsecured term loan which is 95% guaranteed by Euler Hermes Aktiengesellschaft (“Hermes”), the official export credit agency of Germany. The loan amortizes semi-annually over 12 years and bears interest at a floating rate equal to LIBOR plus a margin of 0.96%. Prior to delivery during the first quarter of 2021, we amended the credit agreement to (i) increase the maximum loan amount under the facility to make available to us a maximum amount equal to the US dollar equivalent of 80% of the vessel purchase price plus 100% of the premium payable to Hermes and (ii) defer the payment of all principal payments due between April 2021 and April 2022, which amounts will be repayable semi-annually over a five year period starting in April 2022. In March 2021, we issued $1.50 billion of senior unsecured notes that mature in 2028, for net proceeds of $1.48 billion. Interest on the senior notes accrues at 5.5% per annum and is payable semi-annually. We used the proceeds from the notes to repay principal payments on debt maturing or required to be paid in 2021 and 2022, and the remaining for general corporate purposes. In March 2021, we extended our binding commitment from Morgan Stanley Senior Funding Inc. for a $700.0 million term loan facility by one year. The commitment was initially obtained in August 2020, and as amended, we may draw on the facility at any time prior to August 12, 2022. Once drawn, the loan will bear interest at LIBOR plus 3.75% and will mature 364 days from funding. In addition, the facility, once drawn, will be guaranteed by RCI Holdings, LLC, our wholly owned subsidiary that owns the equity interests in subsidiaries that own seven of our vessels. We have the ability to increase the capacity of the facility by an additional $300.0 million from time to time subject to the receipt of additional or increased commitments and the issuance of guarantees from additional subsidiaries. In June 2021, we issued $650.0 million of senior unsecured notes due in 2026 (the "June Unsecured Notes") for net proceeds of approximately $640.6 million. Interest accrues on the June Unsecured Notes at a fixed rate of 4.25% per annum and is payable semi-annually in arrears. We fully repaid the Silversea Cruises 7.25% senior secured notes due in 2025 (the "Silversea Notes"), in the amount of $619.8 million, with a portion of the proceeds from the June Unsecured Notes. We also funded call premiums, fees and expenses in connection with the redemption of the Silversea Notes with proceeds from the June Unsecured Notes. Additionally, during the second quarter of 2021, we repaid in full a $130 million term loan. In August 2021, we issued $1.0 billion of senior notes due in 2026 (the "August Unsecured Notes") for net proceeds of approximately $986.0 million. Interest accrues on the August Unsecured Notes at a fixed rate of 5.50% per annum and is payable semi-annually in arrears. We used the proceeds of the August Unsecured Notes to replenish our capital as a result of the redemption of a portion of the 11.50% senior secured notes due 2025, in the amount of $928.0 million plus accrued interest and premiums. The repayment of the 11.50% senior secured notes due 2025 resulted in a total loss on the extinguishment of debt of $141.9 million, which was recognized within Interest expense, net of interest capitalized within our consolidated statements of comprehensive loss for the year ended December 31, 2021. In January 2022, we took delivery of Wonder of the Seas. To finance the delivery, we borrowed a total of $1.3 billion under a credit agreement novated to us in July of 2017, resulting in an unsecured term loan which is 100% guaranteed by Bpifrance Assurance Export ("BpiFAE"), the official export credit agency of France. The unsecured loan amortizes semi-annually over 12 years and bears interest at a fixed rate of 3.18%. In January 2022, we issued $1.0 billion of senior notes (the "January 2022 Unsecured Notes") due in 2027 for net proceeds of approximately $990.0 million. Interest accrues on the January 2022 Unsecured Notes at a fixed rate of 5.375% per annum and is payable semi-annually in arrears. The proceeds from the January 2022 Unsecured Notes will be used to repay principal payments on debt maturing in 2022. Pending such debt maturities, we have temporarily applied the proceeds to repay borrowings under our revolving credit facilities, bringing our undrawn revolving credit facility capacity to $1.1 billion as of the date of the issuance of this report from $0.1 billion as of December 31, 2021. In February 2022, we entered into certain agreements with Morgan Stanley & Co., LLC (“MS”) where MS agrees to provide backstop committed financing to refinance, repurchase and/or repay in whole or in part our existing and outstanding 10.875% Senior Secured Notes due 2023, 9.125% Priority Guaranteed Notes due 2023, and 4.25% Convertible Notes due 2023. Pursuant to the agreements, we may, at our sole option, issue and sell to MS (subject to the satisfaction of certain conditions) five-year senior unsecured notes with gross proceeds of up to $3.15 billion at any time between April 1, 2023 and June 29, 2023, to refinance the afo rementioned notes. During 2020, we amended all of our export credit facilities, all of our non-export credit facilities and certain of our credit card processing agreements which contain financial covenants to extend the financial covenant waiver through and including the fourth quarter of 2021. During the first quarter of 2021, we amended $4.9 billion of our non-export credit facilities and certain of our credit card processing agreements to extend the waiver of the financial covenants through and including the third quarter of 2022 or, if earlier, that date falling after January 1, 2022 on which we elect to comply with the modified covenants. Pursuant to the amendments, we have modified the manner in which such covenants are calculated (temporarily in certain cases and permanently in others) as well as the levels at which our net debt to capitalization covenant will be tested during the period commencing immediately following the end of the waiver period and continuing through the end of 2023. As of December 31, 2021, the monthly-tested minimum liquidity covenant was $350 million for the duration of the waiver period. As of the date of these financial statements, we were in compliance with the applicable minimum liquidity covenant. Pursuant to these amendments, the restrictions on paying cash dividends and effectuating share repurchases were extended through and including the third quarter of 2022. During the first quarter of 2021, we also amended $6.3 billion of our export credit facilities to extend the waiver of the financial covenants through and including at least the end of the third quarter of 2022, and during the third quarter of 2021, we entered into a letter agreement to extend the waiver period to the end of the fourth quarter of 2022. During the fourth quarter of 2021, we amended $7.3 billion of outstanding export-credit financing plus committed export-credit facilities to modify financial covenant levels for 2023 and 2024, following the waiver period through and including the fourth quarter of 2022. These amendments deferred $1.15 billion of principal payments due between April 2021 and April 2022. The deferred amounts will be repayable semi-annually over a five-year period starting in April 2022. Pursuant to these amendments, we have agreed to implement the same liquidity covenant that applies in our non-export credit facilities. The amendments also provide for mandatory prepayment of the deferred amounts upon the taking of certain actions. Subject to a number of carve outs, these include, but are not limited to, issuance of dividends, completion of share repurchases, issuances of debt other than for crisis and recovery purposes, the making of loans and the sale of assets other than at arm’s length In the fourth quarter of 2020 and the first quarter of 2021, we entered into amendments to our outstanding and committed export-credit facilities to provide for the issuance of guarantees in satisfaction of existing obligations under these facilities. Following issuance (which, in the case of the undrawn facilities, will occur once the debt is drawn), the guarantees will be released under certain circumstances as other debt is repaid or refinanced on an unsecured and unguaranteed basis. In connection with and following the issuance of the guarantees, the guarantor subsidiaries are restricted from issuing additional guarantees in favor of lenders (other than those lenders who are party to the ECA facilities), and certain of the guarantor subsidiaries are restricted from incurring additional debt. In addition, the ECA facilities will benefit from guarantees to be issued by intermediary parent companies of subsidiaries that take delivery of any new vessels subject to export-credit backed financing. Except for the term loans we incurred to acquire Celebrity Flora and Silver Moon , all of our unsecured ship financing term loans are guaranteed by the export credit agency in the respective country in which the ship is constructed. For the majority of the loans as of December 31, 2021, we pay to the applicable export credit agency, depending on the financing agreement, an upfront fee of 2.35% to 5.48% of the maximum loan amount in consideration for these guarantees. We amortize the fees that are paid upfront over the life of the loan. We classify these fees within Amortization of debt issuance costs in our consolidated statements of cash flows. Prior to the loan being drawn, we present these fees within Other assets in our consolidated balance sheets. Once the loan is drawn, such fees are classified as a discount to the related loan, or contra-liability account, within Current portion of long-term debt or long-term debt . In March 2020, we increased the capacity of our $1.7 billion and $1.2 billion unsecured revolving credit facilities due in 2024 and 2022, by $200 million and $400 million, respectively, utilizing their respective accordion features. As of December 31, 2020, our aggregate revolving borrowing capacity was $3.5 billion and was fully utilized through a combination of amounts drawn and letters of credit issued under the facilities. Certain of our surety agreements with third party providers for the benefit of certain agencies and associations that provide travel related bonds allow the surety to request collateral in the form of cash or letters of credit. As of December 31, 2020, we posted collateral in the amount of approximately $91 million. In March 2020, we took delivery of Celebrity Apex . To finance the purchase, we borrowed $722.2 million under a previously committed unsecured term loan which is 100% guaranteed by BpiFrance Assurance Export, the official export credit agency of France. The loan amortizes semi-annually over 12 years and bears interest at a fixed rate of 3.23% per annum. In the second quarter of 2020 and the first quarter of 2021, we amended the agreement to defer the payment of all principal payments due between April 2020 and March 2022. The deferred amounts will be repayable starting in 2022 over a five year period. In March 2020, we borrowed $2.2 billion pursuant to a 364-day senior secured term loan agreement. In May 2020, this secured term loan was increased by an additional $150 million through the exercise of the accordion feature. The increased secured term loan balance was repaid with proceeds from the $3.32 billion Secured Notes (as described below) issued in May 2020. This secured term loan would have matured 364 days after funding and could have been extended at our option for an additional 364 days subject to customary conditions, including the payment of a 1.00% extension fee. Interest accrued at LIBOR plus a margin of 2.25% which would have increased to 2.50% and 2.75% at 180 days and 365 days, respectively, after funding. We would have also been required to pay a duration fee in an amount equal to 0.25% of the aggregate loan principal amount every 60 days. Additionally, two of our board members each purchased a participation interest equal to $100 million. The repayment of this secured term loan in May 2020 resulted in a total loss on the extinguishment of debt of $41.1 million, which was recognized within Interest expense, net of interest capitalized within our consolidated statements of comprehensive income (loss). In May 2020, we issued $3.32 billion of senior secured notes (the "Secured Notes") for net proceeds of approximately $3.2 billion. We repaid the $2.35 billion, 364-day senior secured term loan in its entirety with a portion of the proceeds of the Secured Notes. $1.0 billion of the notes accrue interest at 10.875% and mature in June of 2023 (the "2023 Secured Notes"). The remaining $2.32 billion of the Secured Notes accrue interest at 11.5% and mature in June of 2025 (the "2025 Secured Notes"). The Secured Notes are fully and unconditionally guaranteed by Celebrity Cruises Holdings Inc., Celebrity Cruises Inc., and certain of our wholly-owned vessel-owning subsidiaries. $1.66 billion of the obligations under the Secured Notes and the related guarantees are secured by first priority security interests in the collateral (which generally includes certain of our material intellectual property, a pledge of 100% of the equity interests of certain of our vessel-owning subsidiaries , the collateral account established pursuant to the indenture governing the Secured Notes (the "Secured Notes Indenture") , mortgages on the 28 vessels owned by such subsidiaries, and an assignment of insurance and earnings in respect of such vessels, subject to permitted liens and certain exclusions and release provisions), subject to certain adjustments after the date of issuance based on our debt rating as of the date of issuance and our lien basket amount in certain of our credit facilities. Prior to March 1, 2023, we may, at our option, redeem some or all of the 2023 Secured Notes at 100% of the principal amount thereof plus accrued and unpaid interest plus the applicable “make-whole premium” described in the Secured Notes Indenture. On or after March 1, 2023, we may, at our option, redeem some or all of the 2023 Secured Notes at a redemption price equal to 100% of the principal amount of the 2023 Secured Notes to be redeemed plus accrued and unpaid interest, if any, to, but excluding, the redemption date. Prior to June 1, 2022, we may, at our option, redeem some or all of the 2025 Secured Notes at 100% of the principal amount plus accrued and unpaid interest plus the applicable “make-whole premium” described in the Secured Notes Indenture. On or after June 1, 2022, we may, at our option, redeem some or all of the 2025 Secured Notes at the applicable redemption prices set forth in the Secured Notes Indenture. In addition, on or prior to June 1, 2022, we may, at our option, redeem up to 40% of the 2025 Secured Notes with the proceeds from certain equity offerings at the redemption price listed in the Secured Notes Indenture. In addition, we may redeem all, but not part, of the Secured Notes upon the occurrence of specified tax events set forth in the Secured Notes Indenture. In June 2020, we issued $1.0 billion of senior unsecured notes which accrue interest at 9.125% and mature in June of 2023. The notes are fully and unconditionally guaranteed by RCI Holdings LLC, which owns 100% of the equity interests in certain of our wholly-owned vessel-owning subsidiaries. In June 2020, RCL Cruises Ltd., our subsidiary that operates and manages our business in the United Kingdom, established a commercial paper facility for the purpose of issuing short-term, unsecured Sterling-denominated notes that are eligible for purchase under the Joint HM Treasury and Bank of England’s COVID Corporate Financing Facility commercial paper program in an aggregate principal amount up to £300.0 million. The maturities of the commercial paper notes can vary by note, but cannot exceed 364 days from the date of issuance. As of December 31, 2020, we had £300.0 million, or approximately $409.9 million, based on the exchange rate at December 31, 2020, of commercial paper notes outstanding under this program. During the first quarter of 2021, we repaid in full the £300.0 million notes issued under the Joint HM Treasury and Bank of England’s COVID Corporate Financing Facility. In June 2020, we issued $1.15 billion of convertible notes which accrue interest at 4.25% and mature in June of 2023. If note holders elect to convert, the notes will be converted into our shares of common stock, cash, or a combination of common stock and cash, at our discretion. The initial conversion rate per $1,000 principal amount of the convertible notes is 13.8672 shares of our common stock, which is equivalent to an initial conversion price of approximately $72.11 per share, subject to adjustment in certain circumstances. Prior to March 15, 2023, the convertible notes will be convertible at the option of holders during certain periods, and only under the following conditions: • during any calendar quarter after September 30, 2020, if the last reported sale price per share of our common stock for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; • the trading price per $1,000 principal amount of notes is less than 98% of the product of the last reported sale price per share of our common stock and the conversation rate for ten consecutive trading days (in which case the notes are convertible at any time during the five business day period following the 10 consecutive trading day period); • if we call the notes for a tax redemption; or • upon the occurrence of specified corporate events. On or after March 15, 2023, the convertible notes will be convertible at any time until the close of business on the second scheduled trading day immediately preceding their maturity date. Holders of the convertible notes may require us, upon the occurrence of certain events that constitute a fundamental change under the indenture, to offer to repurchase the convertible notes at a repurchase price equal to 100% of the principal amount thereof, plus accrued and unpaid interest. We allocated $907.9 million of the convertible notes' proceeds, net of debt issue costs, to Long-term debt and $209.0 million to Paid-in-capital on our Consolidated Balance Sheet. We recognized the equity component by ascribing the difference between the proceeds and the fair value of the convertible notes' debt component to Paid-in-capital and the corresponding debt discount will be amortized to interest expense over the term of the convertible notes using the straight-line method, which approximates the effective interest method. The fair value of the convertible notes' debt component was determined utilizing a present value calculation. Debt issuance costs on the convertible notes were allocated to the debt and equity components in proportion to the allocation of proceeds to those components. We incurred total debt issue costs of $33.1 million on the issuance of the debt and allocated $6.2 million to Paid-in-capital . Debt issuance costs attributable to debt will be amortized to interest expense over the term of the convertible notes. In October 2020, we issued $575 million of senior convertible notes which accrue interest at 2.875% and mature in November of 2023. If note holders elect to convert, the notes will be converted into our shares of common stock, cash, or a combination of common stock and cash, at our discretion. The initial conversion rate per $1,000 principal amount of the convertible notes is 12.1212 shares of our common stock, which is equivalent to an initial conversion price of approximately $82.50 per share, subject to adjustment in certain circumstances. Prior to August 15, 2023, the convertible notes will be convertible at the option of holders during certain periods, and only under the following conditions: • during any calendar quarter after December 31, 2020, if the last reported sale price per share of our common stock for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; • the trading price per $1,000 principal amount of notes is less than 98% of the product of the last reported sale price per share of our common stock and the conversation rate for ten consecutive trading days (in which case the notes are convertible at any time during the five business day period following the ten consecutive trading day period); • if we call the notes for a tax redemption; or • upon the occurrence of specified corporate events. On or after August 15, 2023, the convertible notes will be convertible at any time until the close of business on the second scheduled trading day immediately preceding their maturity date. Holders of the convertible notes may require us, upon the occurrence of certain events that constitute a fundamental change under the indenture, to offer to repurchase the convertible notes at a repurchase price equal to 100% of the principal amount thereof, plus accrued and unpaid interest. We allocated $463.0 million of the convertible notes' proceeds, net of debt issue costs, to Long-term debt and $101.9 million to Paid-in-capital on our Consolidated Balance Sheet. We recognized the equity component by ascribing the difference between the proceeds and the fair value of the convertible notes' debt component to Paid-in-capital and the corresponding debt discount will be amortized to interest expense over the term of the convertible notes using the straight-line method, which approximates the effective interest method. The fair value of the convertible notes' debt component was determined utilizing a present value calculation. Debt issuance costs on the convertible notes were allocated to the debt and equity components in proportion to the allocation of proceeds to those components. We incurred total debt issue costs of $10.1 million on the issuance of the debt and allocated $1.8 million to Paid-in-capital . Debt issuance costs attributable to debt will be amortized to interest expense over the term of the convertible notes. The net carrying value of the liability component of the convertible notes was as follows: (in thousands) As of December 31, 2021 As of December 31,2020 Principal $ 1,725,000 1,725,000 Less: Unamortized debt discount and transaction costs 188,764 312,117 $ 1,536,236 $ 1,412,883 The interest expense recognized related to the convertible notes was as follows: (in thousands) As of December 31, 2021 As of December 31, 2020 Contractual interest expense $ 65,406 30,832 Amortization of debt discount and transaction costs 118,566 52,518 $ 183,972 $ 83,350 In October 2020, we took delivery of Silver Moon . To finance the purchase, Silversea Cruise Holding Ltd., our wholly owned subsidiary, borrowed $300 million under a previously committed unsecured term loan facility, guaranteed by us, to pay a portion of the ship's contract price. The loan is due and payable at maturity in June 2028, provided however, that each lender may elect to cause us to repay the outstanding amount of any advances held by such lender on June 2026 upon 90 days advance notice. The loan amortizes semi-annually starting six months after funding, with 1/24th of the outstanding principal payable every six months and the balance payable upon maturity. Interest on the loan currently accrues at LIBOR plus 2.00%. During 2020, we amended certain export-credit backed ship debt facilities to benefit from a 12-month debt amortization deferral (the "Debt Deferral"). Under the Debt Deferral, deferred debt amortization of approximately $0.9 billion will be paid over a period of 4 years after the 12-month deferral period. The Debt Deferral was offered by certain export credit agencies as a result of the current impact to cruise-line borrowers as a result of COVID-19. During the first quarter of 2021, we further amended our export-credit backed ship debt facilities and deferred an additional $0.8 billion of principal payments due under these export facilities between April 2021 and March 2022. The new amounts being deferred are scheduled to be repaid over a five year period starting in April 2022. Under certain of our agreements, the contractual interest rate, facility fee and/or export credit agency fee vary with our debt rating. On February 25, 2021, S&P Global downgraded our senior unsecured rating from B+ to B, which had no financial impact, and downgraded our 10.875% senior secured notes due 2023 and our 11.50% senior secured notes due 2025 (collectively, "the "Secured Notes") and our Silversea Notes which were fully repaid in June 2021 with proceeds from the $650 million June Unsecured Notes, from BB to BB-. This downgrade had no impact on the terms of the notes. Following is a schedule of annual maturities on our total debt net of debt issuance costs and including finance leases, as of December 31, 2021 for each of the next five years (in thousands): Year 2022 $ 2,243,131 2023 5,376,305 2024 4,026,746 2025 2,293,638 2026 2,533,027 Thereafter 4,617,493 $ 21,090,340 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | Note 9 . Leases Operating leases Our operating leases primarily relate to preferred berthing arrangements, real estate and shipboard equipment and are included within Operating lease right-of-use assets, and Long-term operating lease liabilities with the current portion of the liability included within Current portion of operating lease liabilities in our consolidated balance sheet as of December 31, 2021. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet. We recognize lease expense for these leases on a straight-line basis over the lease term. Our operating leases include Silver Explorer, operated by Silversea Cruises. The operating lease for Silver Explorer will expire in 2023. For some of our real estate leases and berthing agreements, we do have the option to extend our current lease term. For those lease agreements with renewal options, the renewal periods for real estate leases range from one In June of 2021, we exercised our option under our operating lease with SMBC Leasing and Finance, Inc (the "Lessor") to purchase Terminal A at PortMiami in July 2021 for the pre-agreed purchase price of $220.0 million. Upon purchase of the terminal lease in July 2021, the underlying asset was recorded as a leasehold improvement within Property and equipment, net . Our July 2021 purchase of the Port of Miami terminal eliminated the residual value guarantee and a requirement under the lease to post $181.1 million of cash collateral. Additionally, we remeasured the ground lease related to the Terminal A lease based on a reassessed lease term resulting from our purchase option exercise. We determined that the ground lease should remain as an operating lease with adjustments to the operating lease liability and the related right-of-use asset in our Consolidated Balance Sheet. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate in determining the present value of lease payments. We estimate our incremental borrowing rates based on LIBOR and U.S. Treasury note rates corresponding to lease terms increased by the Company’s credit risk spread and reduced by the estimated impact of collateral. In addition, we have lease agreements with lease and non-lease components, which are generally accounted for separately. However, for berthing agreements, we account for the lease and non-lease components as a single lease component. Commencing in 2016 when we sold our 51% interest in the Pullmantur brand to Pullmantur Holdings, and continuing through the quarter ended June 30, 2020, we bareboat chartered to Pullmantur Holdings the vessels operated by the Pullmantur brand. On June 22, 2020, Pullmantur S.A., a subsidiary of Pullmantur Holdings, filed for reorganization in Spain, at which time we terminated these bareboat charters. See Note 7. Other Assets for further discussion of Pullmantur Holdings. We accounted for the bareboat charters of these vessels as operating leases for which we were the lessor. Finance Leases Silversea Cruises operates the Silver Dawn under a finance lease. We received delivery of the Silver Dawn in November of 2021 under a sale-leaseback agreement with a bargain purchase option at the end of the 15 year lease term. Due to the bargain purchase option at the end of the lease term, whereby Silversea Cruises is reasonably certain of obtaining ownership of the ship, Silver Dawn is accounted for as a finance lease. The lease includes other purchase options beginning in year three, none of which are reasonably certain of being exercised at this time. The carrying amount of the ship is reported within Property and Equipment, net in our Consolidated Balance Sheet as of December 31, 2021. The ship has a useful life and residual value of 30 years and 15%, respectively. The total aggregate amount of finance lease liabilities recorded for this ship are $283.7 million and are reflected in Current portion of long-term debt and Long-term debt in our Consolidated Balance Sheet as of December 31, 2021. Silversea Cruises operates Silver Whisper under a finance lease. In May 2021, the finance lease for the Silver Whisper expiring in 2022 was amended to extend its expiration by 12 months and will now expire in 2023, subject to an option to purchase the ship. Additionally, certain scheduled payments have been deferred and are reflected in Long-term debt in our Consolidated Balance Sheet as of December 31, 2021. The total aggregate amount of finance lease liabilities recorded for this ship was $24.1 million and $31.5 million at December 31, 2021 and December 31, 2020, respectively. The lease payments on the Silver Whisper are subject to adjustments based on the LIBOR rate. Supplemental balance sheet information for leases was as follows (in thousands): As of December 31, 2021 As of December 31, 2020 Lease assets: Finance lease right-of-use assets, net: Property and equipment, gross $ 737,444 $ 364,910 Accumulated depreciation (94,729) (71,288) Property and equipment, net 642,715 293,622 Operating lease right-of-use assets 542,128 599,985 Total lease assets $ 1,184,843 $ 893,607 Lease liabilities: Finance lease liabilities: Current portion of debt $ 51,470 $ 51,856 Long-term debt 420,805 161,509 Total finance lease liabilities 472,275 213,365 Operating lease liabilities: Current portion of operating lease liabilities 68,922 102,677 Long-term operating lease liabilities 534,726 563,876 Total operating lease liabilities 603,648 666,553 Total lease liabilities $ 1,075,923 $ 879,918 The components of lease expense were as follows (in thousands): Consolidated Statement of Comprehensive Income (Loss) Classification Year ended December 31, 2021 Year ended December 31, 2020 Year ended December 31, 2019 Lease costs: Operating lease costs Commission, transportation and other $ 18,860 $ 38,349 $ 76,226 Operating lease costs Other operating expenses 23,261 30,955 27,868 Operating lease costs Marketing, selling and administrative expenses 18,027 21,971 18,837 Finance lease costs: Amortization of right-of-use-assets Depreciation and amortization expenses 16,814 6,901 22,044 Interest on lease liabilities Interest expense, net of interest capitalized 2,593 4,429 8,355 Total lease costs $ 79,555 $ 102,605 $ 153,330 In addition, certain of our berth agreements include variable lease costs based on the number of passengers berthed. During the twelve months ended December 31, 2021, we had no variable lease costs recorded within Commission, transportation and other in our consolidated statement of comprehensive income (loss). Weighted average of the remaining lease terms and weighted average discount rates are as follows: As of December 31, 2021 As of December 31, 2020 Weighted average of the remaining lease term Operating leases 18.18 7.8 Finance leases 23.96 41.2 Weighted average discount rate Operating leases 6.52 % 4.59 % Finance leases 5.54 % 6.89 % Supplemental cash flow information related to leases is as follows (in thousands): Year ended December 31, 2021 Year ended December 31, 2020 Year ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 42,759 $ 89,179 $ 125,307 Operating cash flows from finance leases $ 2,593 $ 4,429 $ 8,355 Financing cash flows from finance leases $ 23,522 $ 19,778 $ 32,090 As of December 31, 2021, maturities related to lease liabilities were as follows (in thousands): Years Operating Leases Finance Leases 2022 $ 101,445 $ 72,076 2023 104,585 52,340 2024 85,463 43,497 2025 80,182 43,089 2026 74,626 37,900 Thereafter 826,226 632,709 Total lease payments 1,272,527 881,611 Less: Interest (668,879) (409,336) Present value of lease liabilities $ 603,648 $ 472,275 Operating lease payments do not include any costs related to options to extend lease terms as none are reasonably certain of being exercised. Right-of-use assets impairments |
Leases | Note 9 . Leases Operating leases Our operating leases primarily relate to preferred berthing arrangements, real estate and shipboard equipment and are included within Operating lease right-of-use assets, and Long-term operating lease liabilities with the current portion of the liability included within Current portion of operating lease liabilities in our consolidated balance sheet as of December 31, 2021. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet. We recognize lease expense for these leases on a straight-line basis over the lease term. Our operating leases include Silver Explorer, operated by Silversea Cruises. The operating lease for Silver Explorer will expire in 2023. For some of our real estate leases and berthing agreements, we do have the option to extend our current lease term. For those lease agreements with renewal options, the renewal periods for real estate leases range from one In June of 2021, we exercised our option under our operating lease with SMBC Leasing and Finance, Inc (the "Lessor") to purchase Terminal A at PortMiami in July 2021 for the pre-agreed purchase price of $220.0 million. Upon purchase of the terminal lease in July 2021, the underlying asset was recorded as a leasehold improvement within Property and equipment, net . Our July 2021 purchase of the Port of Miami terminal eliminated the residual value guarantee and a requirement under the lease to post $181.1 million of cash collateral. Additionally, we remeasured the ground lease related to the Terminal A lease based on a reassessed lease term resulting from our purchase option exercise. We determined that the ground lease should remain as an operating lease with adjustments to the operating lease liability and the related right-of-use asset in our Consolidated Balance Sheet. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate in determining the present value of lease payments. We estimate our incremental borrowing rates based on LIBOR and U.S. Treasury note rates corresponding to lease terms increased by the Company’s credit risk spread and reduced by the estimated impact of collateral. In addition, we have lease agreements with lease and non-lease components, which are generally accounted for separately. However, for berthing agreements, we account for the lease and non-lease components as a single lease component. Commencing in 2016 when we sold our 51% interest in the Pullmantur brand to Pullmantur Holdings, and continuing through the quarter ended June 30, 2020, we bareboat chartered to Pullmantur Holdings the vessels operated by the Pullmantur brand. On June 22, 2020, Pullmantur S.A., a subsidiary of Pullmantur Holdings, filed for reorganization in Spain, at which time we terminated these bareboat charters. See Note 7. Other Assets for further discussion of Pullmantur Holdings. We accounted for the bareboat charters of these vessels as operating leases for which we were the lessor. Finance Leases Silversea Cruises operates the Silver Dawn under a finance lease. We received delivery of the Silver Dawn in November of 2021 under a sale-leaseback agreement with a bargain purchase option at the end of the 15 year lease term. Due to the bargain purchase option at the end of the lease term, whereby Silversea Cruises is reasonably certain of obtaining ownership of the ship, Silver Dawn is accounted for as a finance lease. The lease includes other purchase options beginning in year three, none of which are reasonably certain of being exercised at this time. The carrying amount of the ship is reported within Property and Equipment, net in our Consolidated Balance Sheet as of December 31, 2021. The ship has a useful life and residual value of 30 years and 15%, respectively. The total aggregate amount of finance lease liabilities recorded for this ship are $283.7 million and are reflected in Current portion of long-term debt and Long-term debt in our Consolidated Balance Sheet as of December 31, 2021. Silversea Cruises operates Silver Whisper under a finance lease. In May 2021, the finance lease for the Silver Whisper expiring in 2022 was amended to extend its expiration by 12 months and will now expire in 2023, subject to an option to purchase the ship. Additionally, certain scheduled payments have been deferred and are reflected in Long-term debt in our Consolidated Balance Sheet as of December 31, 2021. The total aggregate amount of finance lease liabilities recorded for this ship was $24.1 million and $31.5 million at December 31, 2021 and December 31, 2020, respectively. The lease payments on the Silver Whisper are subject to adjustments based on the LIBOR rate. Supplemental balance sheet information for leases was as follows (in thousands): As of December 31, 2021 As of December 31, 2020 Lease assets: Finance lease right-of-use assets, net: Property and equipment, gross $ 737,444 $ 364,910 Accumulated depreciation (94,729) (71,288) Property and equipment, net 642,715 293,622 Operating lease right-of-use assets 542,128 599,985 Total lease assets $ 1,184,843 $ 893,607 Lease liabilities: Finance lease liabilities: Current portion of debt $ 51,470 $ 51,856 Long-term debt 420,805 161,509 Total finance lease liabilities 472,275 213,365 Operating lease liabilities: Current portion of operating lease liabilities 68,922 102,677 Long-term operating lease liabilities 534,726 563,876 Total operating lease liabilities 603,648 666,553 Total lease liabilities $ 1,075,923 $ 879,918 The components of lease expense were as follows (in thousands): Consolidated Statement of Comprehensive Income (Loss) Classification Year ended December 31, 2021 Year ended December 31, 2020 Year ended December 31, 2019 Lease costs: Operating lease costs Commission, transportation and other $ 18,860 $ 38,349 $ 76,226 Operating lease costs Other operating expenses 23,261 30,955 27,868 Operating lease costs Marketing, selling and administrative expenses 18,027 21,971 18,837 Finance lease costs: Amortization of right-of-use-assets Depreciation and amortization expenses 16,814 6,901 22,044 Interest on lease liabilities Interest expense, net of interest capitalized 2,593 4,429 8,355 Total lease costs $ 79,555 $ 102,605 $ 153,330 In addition, certain of our berth agreements include variable lease costs based on the number of passengers berthed. During the twelve months ended December 31, 2021, we had no variable lease costs recorded within Commission, transportation and other in our consolidated statement of comprehensive income (loss). Weighted average of the remaining lease terms and weighted average discount rates are as follows: As of December 31, 2021 As of December 31, 2020 Weighted average of the remaining lease term Operating leases 18.18 7.8 Finance leases 23.96 41.2 Weighted average discount rate Operating leases 6.52 % 4.59 % Finance leases 5.54 % 6.89 % Supplemental cash flow information related to leases is as follows (in thousands): Year ended December 31, 2021 Year ended December 31, 2020 Year ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 42,759 $ 89,179 $ 125,307 Operating cash flows from finance leases $ 2,593 $ 4,429 $ 8,355 Financing cash flows from finance leases $ 23,522 $ 19,778 $ 32,090 As of December 31, 2021, maturities related to lease liabilities were as follows (in thousands): Years Operating Leases Finance Leases 2022 $ 101,445 $ 72,076 2023 104,585 52,340 2024 85,463 43,497 2025 80,182 43,089 2026 74,626 37,900 Thereafter 826,226 632,709 Total lease payments 1,272,527 881,611 Less: Interest (668,879) (409,336) Present value of lease liabilities $ 603,648 $ 472,275 Operating lease payments do not include any costs related to options to extend lease terms as none are reasonably certain of being exercised. Right-of-use assets impairments |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Shareholders' Equity | Note 10. Shareholders' Equity Common Stock Issued During March 2021, we issued 16.9 million shares of common stock, par value $0.01 per share, at a price of $91.00 per share. We received net proceeds of $1.5 billion from the sale of our common stock, after deducting the estimated offering expenses payable by us. During October 2020, we issued 9.6 million shares of common stock, par value $0.01 per share, at a price of $60.00 per share. We received net proceeds of $557.4 million from the sale of our common stock, after deducting the underwriters’ discount and the estimated offering expenses payable by us. During December 2020, we issued 13.0 million shares of common stock, par value $0.01 per share, at an average price of $76.65 per share. We received net proceeds of $994.6 million after deducting the underwriters’ discount and the estimated offering expenses payable by us. Of the total proceeds, $868.6 million was received as of December 31, 2020 and the remainder was received in January of 2021. Dividends Declared During the first quarter of 2020 we declared a cash dividend on our common stock of $0.78 per share which was paid in the second quarter of 2020. During the first quarter of 2020, we also paid a cash dividend on our common stock of $0.78 per share, which was declared during the fourth quarter of 2019. During the second quarter of 2020, we agreed with certain of our lenders not to pay dividends or engage in common stock repurchases for so long as our debt covenant waivers are in effect. In addition, in the event we declare a dividend or engage in share repurchases, we will need to repay the amounts deferred under our export credit facilities. Accordingly, we did not declare a dividend from the second quarter of 2020. Pursuant to amendments made to these agreements during the first quarter of 2021, the restrictions on paying cash dividends and effectuating share repurchases were extended through and including the third quarter of 2022. Common Stock Repurchase Program |
Stock-Based Employee Compensati
Stock-Based Employee Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Employee Compensation | Note 11 . Stock-Based Employee Compensation We currently have awards outstanding under one stock-based compensation plan, our 2008 Equity Plan, which provides for awards to our officers, directors and key employees. The 2008 Equity Plan, as amended, provides for the issuance of up to 14,000,000 shares of our common stock pursuant to grants of (i) incentive and non-qualified stock options, (ii) stock appreciation rights, (iii) stock awards (including time-based and/or performance-based stock awards) and (iv) restricted stock units (including time-based and performance-based restricted stock units). During any calendar year, no one individual (other than non-employee members of our board of directors) may be granted awards of more than 500,000 shares and no non-employee member of our board of directors may be granted awards with a value in excess of $500,000 at the grant date. Options and restricted stock units outstanding as of December 31, 2021, generally vest in equal installments over four years from the date of grant. In addition, performance shares and performance share units generally vest in three years. With certain limited exceptions, awards are forfeited if the recipient ceases to be an employee before the shares vest. Prior to 2012, our officers received a combination of stock options and restricted stock units. Beginning in 2012, our officers instead receive their long-term incentive awards through a combination of performance share units and restricted stock units. Each performance share unit award is expressed as a target number of performance share units based upon the fair market value of our common stock on the date the award is issued. The actual number of shares underlying each award (not to exceed 200% of the target number of performance share units) will be determined based upon the Company's achievement of a specified performance target range. In 2021, we issued a target number of 296,798 performance share units, which will vest approximately three years following the award issue date. The performance payout of these grants will be based on return on the Company's invested capital ("ROIC"), earnings per share ("EPS") and leverage for the year ended December 31, 2023, as may be adjusted by the Talent and Compensation Committee of our board of directors in early 2024 for events that are outside of management's control. Beginning in 2016, our senior officers meeting certain minimum age and service criteria receive their long-term incentive awards through a combination of restricted stock awards and restricted stock units. The restricted stock awards are subject to both performance and time-based vesting criteria while the restricted stock units are subject only to time-based vesting criteria. Each restricted stock award is issued in an amount equal to 200% of the target number of shares underlying the award based upon the fair market value of our common stock on the date the award is issued. Declared dividends accrue (but do not get paid) on the restricted stock awards during the vesting period, with the accrued amounts to be paid out following vesting only on the number of shares underlying the award which actually vest based on satisfaction of the performance criteria. The actual number of shares that vest (not to exceed 200% of the shares) will be determined based upon the Company's achievement of a specified performance target range. In 2021, we issued 350,996 restricted stock awards, representing 200% of the target number of shares underlying the award, all of which are considered issued and outstanding from the date of issuance, however; grantees will only retain those shares earned as the result of the Company achieving the performance goals during the measurement period. The performance payout of the 2021 awards will be based on the Company's ROIC, EPS and leverage for the year ended December 31, 2023, as may be adjusted by the Talent and Compensation Committee of our board of directors in early 2024 for events that are outside of management's control. On January 24, 2018, the Company issued a one-time bonus award for all non-officer employees. These awards vested, in equal installments, over the 3 years following the award issue date. For shoreside eligible employees, awards were issued as equity-settled restricted stock units. As of December 31, 2020, these awards have fully vested. We also provide an Employee Stock Purchase Plan ("ESPP") to facilitate the purchase by employees of up to 2,800,000 shares of common stock in the aggregate. Offerings to employees are made on a quarterly basis. Subject to certain limitations, the purchase price for each share of common stock is equal to 85% of the average of the market prices of the common stock as reported on the New York Stock Exchange on the first business day of the purchase period and the last business day of each month of the purchase period. During the years ended December 31, 2021, 2020 and 2019, 136,480, 184,936 and 91,586 shares of our common stock were purchased under the ESPP at a weighted-average price of $70.95, $48.08 and $98.20, respectively. Total compensation expense recognized for employee stock-based compensation for the years ended December 31, 2021, 2020 and 2019 was as follows (in thousands): Employee Stock-Based Compensation Classification of expense 2021 2020 2019 Marketing, selling and administrative expenses $ 63,638 $ 39,780 $ 75,930 Total compensation expense $ 63,638 $ 39,780 $ 75,930 The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option pricing model. The estimated fair value of stock options, less estimated forfeitures, is amortized over the vesting period using the graded-vesting method. We did not issue any stock options during the years ended December 31, 2021, 2020 and 2019. Stock option activity and information about stock options outstanding are summarized in the following table: Stock Option Activity Number of Weighted- Weighted- Aggregate Intrinsic Value (1) (years) (in thousands) Outstanding at January 1, 2021 49,647 $ 46.18 0.11 $ 1,355 Granted — — — — Exercised (49,647) $ 46.18 — — Canceled — $ — — — Outstanding at December 31, 2021 — $ — — $ — Vested at December 31, 2021 — $ — — $ — Options Exercisable at December 31, 2021 — $ — — $ — ___________________________________________________________________ (1) The intrinsic value represents the amount by which the fair value of stock exceeds the option exercise price. The total intrinsic value of stock options exercised during the years ended December 31, 2021, 2020 and 2019 was $1.3 million, $1.5 million and $8.1 million, respectively. As of December 31, 2021, there was no unrecognized compensation cost, net of estimated forfeitures, related to stock options granted under our stock incentive plan. Additionally, there were no stock options outstanding as of December 31, 2021. Restricted stock units are converted into shares of common stock upon vesting or, if applicable, are settled on a one-for-one basis. The cost of these awards is determined using the fair value of our common stock on the date of the grant, and compensation expense is recognized over the vesting period. Restricted stock activity is summarized in the following table: Restricted Stock Units Activity Number of Weighted- Non-vested share units as of January 1, 2021 972,592 $ 91.26 Granted 568,107 $ 85.08 Vested (448,469) $ 90.90 Canceled (97,192) $ 89.73 Non-vested share units as of December 31, 2021 995,038 $ 88.19 The weighted-average estimated fair value of restricted stock units granted during the years ended December 31, 2020 and 2019 was $78.51 and $112.13, respectively. The total fair value of shares released on the vesting of restricted stock units during the years ended December 31, 2021, 2020 and 2019 was $36.1 million, $31.2 million, and $30.8 million, respectively. As of December 31, 2021, we had $42.3 million of total unrecognized compensation expense, net of estimated forfeitures, related to restricted stock unit grants, which will be recognized over the weighted-average period of 1.16 years. Performance share units are converted into shares of common stock upon vesting on a one-for-one basis. We estimate the fair value of each performance share when the grant is authorized and the related service period has commenced. We remeasure the fair value of our performance shares in each subsequent reporting period until the grant date has occurred, which is the date when the performance conditions are satisfied. We recognize compensation cost over the vesting period based on the probability of the service and performance conditions being achieved adjusted for each subsequent fair value measurement until the grant date. If the specified service and performance conditions are not met, compensation expense will not be recognized and any previously recognized compensation expense will be reversed. Performance share units activity is summarized in the following table: Performance Share Units Activity Number of Weighted- Non-vested share units as of January 1, 2021 267,722 $ 109.34 Granted 296,798 $ 84.83 Vested (66,377) $ 123.49 Canceled (31,791) $ 98.78 Non-vested share units as of December 31, 2021 466,352 $ 92.45 The weighted-average estimated fair value of performance share units granted during the years ended December 31, 2020 and 2019 was $95.81 and $87.39 respectively. The total fair value of shares released on the vesting of performance share units during the years ended December 31, 2021, 2020 and 2019 was $5.6 million, $24.6 million and $23.0 million, respectively. As of December 31, 2021, we had $14.8 million of total unrecognized compensation expense, net of estimated forfeitures, related to performance share unit grants, which will be recognized over the weighted-average period of 1.51 year. The shares underlying our restricted stock awards to age and service eligible senior officers are issued as of the grant date in an amount equal to 200% of the target number of shares. Following the vesting date, the restrictions will lift with respect to the number of shares for which the performance criteria was met and any excess shares will be canceled. Dividends will accrue on the issued restricted shares during the vesting period, but will not be paid to the recipient until the awards vest and the final number of shares underlying the award is determined, at which point, the dividends will be paid in cash only on the earned shares. We estimate the fair value of each restricted stock award when the grant is authorized and the related service period has commenced. We remeasure the fair value of these restricted stock awards in each subsequent reporting period until the grant date has occurred, which is the date when the performance conditions are satisfied. We recognize compensation cost over the vesting period based on the probability of the service and performance conditions being achieved adjusted for each subsequent fair value measurement until the grant date. If the specified service and performance conditions are not met, compensation expense will not be recognized, any previously recognized compensation expense will be reversed, and any unearned shares will be returned to the Company. Restricted stock awards activity is summarized in the following table: Restricted Stock Awards Activity Number of Weighted- Non-vested share units as of January 1, 2021 575,432 $ 116.83 Granted 350,996 $ 84.83 Vested (60,011) $ 129.23 Canceled (69,205) $ 123.33 Non-vested share units as of December 31, 2021 797,212 $ 101.25 The weighted-average estimated fair value of restricted stock awards granted during the years ended December 31, 2020 and 2019 was $110.21 and $118.08, respectively. As of December 31, 2021, we had $3.3 million of total unrecognized compensation expense, net of estimated forfeitures, related to restricted stock award grants, which will be recognized over the weighted-average period of 1.36 years. |
(Loss) Earnings Per Share
(Loss) Earnings Per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
(Loss) Earnings Per Share | Note 12 . (Loss) Earnings Per Share A reconciliation between basic and diluted earnings per share is as follows (in thousands, except per share data): Year Ended December 31, 2021 2020 2019 Net (Loss) Income attributable to Royal Caribbean Cruises Ltd. for basic and diluted (loss) earnings per share $ (5,260,499) $ (5,797,462) $ 1,878,887 Weighted-average common shares outstanding 251,812 214,335 209,405 Dilutive effect of stock-based awards — — 525 Diluted weighted-average shares outstanding 251,812 214,335 209,930 Basic (loss) earnings per share $ (20.89) $ (27.05) $ 8.97 Diluted (loss) earnings per share $ (20.89) $ (27.05) $ 8.95 There were approximately 504,250 and 282,118 antidilutive shares for the years ended December 31, 2021 and 2020, respectively. There were no antidilutive shares for the year ended December 31, 2019. While the criteria for conversion of our convertible notes has not been met, the shares that would be issued upon conversion of the notes would be antidilutive for the year ended December 31, 2021. |
Retirement Plan
Retirement Plan | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Retirement Plan | Note 13 . Retirement Plan We maintain a defined contribution plan covering shoreside employees. Effective January 1, 2016, we commenced annual, non-elective contributions to the plan on behalf of all eligible participants equal to 3% of participants' eligible earnings. Additional annual contributions to the plan are discretionary and are based on fixed percentages of participants' salaries and years of service, not to exceed certain maximums. Contribution expenses were $17.9 million, $18.4 million and $21.2 million for the years ended December 31, 2021, 2020 and 2019, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 14 . Income Taxes We are subject to corporate income taxes in countries where we have operations or subsidiaries. We and the majority of our ship-operating and vessel-owning subsidiaries are currently exempt from U.S. corporate income tax on U.S. source income from the international operation of ships pursuant to Section 883 of the Internal Revenue Code. Regulations under Section 883 have limited the activities that are considered the international operation of a ship or incidental thereto. Accordingly, our provision for U.S. federal and state income taxes includes taxes on certain activities not considered incidental to the international operation of our ships. Additionally, one of our ship-operating subsidiaries is subject to tax under the tonnage tax regime of the United Kingdom. Under this regime, income from qualifying activities is subject to corporate income tax, but the tax is computed by reference to the tonnage of the ship or ships registered under the relevant provisions of the tax regimes (the "relevant shipping profits"), which replaces the regular taxable income base. Income from activities not considered qualifying activities, which we do not consider significant, remains subject to United-Kingdom corporate income tax. For the year ended December 31, 2021, we had an income tax benefit of approximately $45.2 million primarily driven by items not qualifying under Section 883. For the year ended December 31, 2020 we had an income tax benefit of approximately $15.0 million and for year ended December 31, 2019 income tax expense was $32.6 million, for items not qualifying under Section 883, tonnage tax and income taxes for the remainder of our subsidiaries. Income taxes are recorded within Other income (expense) . In addition, all interest expense and penalties related to income tax liabilities are classified as income tax expense within Other income (expense) . For a majority of our subsidiaries, we do not expect to incur income taxes on future distributions of undistributed earnings. Accordingly, no deferred income taxes have been provided for the distribution of these earnings. Where we do expect to incur income taxes on future distributions of undistributed earnings, we have provided for deferred taxes, which we do not consider significant to our operations. As of December 31, 2021, the Company had deferred tax assets for U.S. and foreign net operating losses (“NOLs”) of approximately $56.4 million. We have provided a valuation allowance for approximately $20.8 million of these NOLs. $11.6 million of the NOLs are subject to expire between 2022 and 2033. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2021 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Changes in Accumulated Other Comprehensive Income (Loss) | Note 15 . Changes in Accumulated Other Comprehensive Income (Loss) The following table presents the changes in accumulated other comprehensive loss by component for the years ended December 31, 2021, 2020 and 2019 (in thousands): Changes related to cash flow derivative hedges Changes in defined Foreign currency translation adjustments Accumulated other comprehensive (loss) income Accumulated comprehensive loss at January 1, 2019 $ (537,216) $ (26,023) $ (64,495) $ (627,734) Other comprehensive income (loss) before reclassifications (146,108) (20,314) 869 (165,553) Amounts reclassified from accumulated other comprehensive loss (5,205) 779 — (4,426) Net current-period other comprehensive income (loss) (151,313) (19,535) 869 (169,979) Accumulated comprehensive loss at January 1, 2020 (688,529) (45,558) (63,626) (797,713) Other comprehensive income (loss) before reclassifications (41,109) (22,051) (28,698) (91,858) Amounts reclassified from accumulated other comprehensive loss 79,119 2,067 69,044 150,230 Net current-period other comprehensive (loss) income 38,010 (19,984) 40,346 58,372 Accumulated comprehensive loss at January 1, 2021 (650,519) (65,542) (23,280) (739,341) Other comprehensive (loss) income before reclassifications (16,667) 4,790 15,703 3,826 Amounts reclassified from accumulated other comprehensive loss 20,713 3,917 — 24,630 Net current-period other comprehensive (loss) income 4,046 8,707 15,703 28,456 Accumulated comprehensive loss at December 31, 2021 $ (646,473) $ (56,835) $ (7,577) $ (710,885) The following table presents reclassifications out of accumulated other comprehensive loss for the years ended December 31, 2021, 2020 and 2019 (in thousands): Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into (Loss) Income Details about Accumulated Other Comprehensive Loss Components Year Ended December 31, 2021 Year Ended December 31, 2020 Year Ended December 31, 2019 Affected Line Item in Statements of Comprehensive Income (Loss) Gain (loss) on cash flow derivative hedges: Interest rate swaps (43,185) (25,267) (4,289) Interest expense, net of interest capitalized Foreign currency forward contracts (15,359) (14,679) (14,063) Depreciation and amortization expenses Foreign currency forward contracts (2,797) (7,315) (5,080) Other income (expense) Fuel swaps (409) 3,549 (1,292) Other income (expense) Fuel swaps 41,037 (35,407) 29,929 Fuel (20,713) (79,119) 5,205 Amortization of defined benefit plans: Actuarial loss (3,917) (2,067) (779) Payroll and related (3,917) (2,067) (779) Release of foreign cumulative translation due to sale or liquidation of businesses: Foreign cumulative translation — (69,044) — Other operating Total reclassifications for the period $ (24,630) $ (150,230) $ 4,426 During the year ended December 31, 2020, a $69.0 million net loss was recorded within Other expense in our consolidated statements of comprehensive (loss) income, consisting of a $92.6 million loss resulting from the recognition of a currency translation adjustment, partially offset by the recognition of a deferred $23.6 million foreign exchange gain related to the Pullmantur net investment hedge. In connection with the Pullmantur reorganization in 2020, we no longer have significant involvement in the Pullmantur operations and these amounts previously deferred in Accumulated other comprehensive loss |
Fair Value Measurements and Der
Fair Value Measurements and Derivative Instruments | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Derivative Instruments | Note 16. Fair Value Measurements and Derivative Instruments Fair Value Measurements The estimated fair value of our financial instruments that are not measured at fair value, categorized based upon the fair value hierarchy, are as follows (in thousands): Fair Value Measurements at December 31, 2021 Fair Value Measurements at December 31, 2020 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) $ 2,701,770 $ 2,701,770 $ 2,701,770 — — $ 3,684,474 $ 3,684,474 $ 3,684,474 — — Total Assets $ 2,701,770 $ 2,701,770 $ 2,701,770 $ — $ — $ 3,684,474 $ 3,684,474 $ 3,684,474 $ — $ — Liabilities: Long-term debt (including current portion of long-term debt)(5) $ 20,618,065 $ 22,376,480 — $ 22,376,480 — $ 18,706,359 $ 20,981,040 — $ 20,981,040 — Total Liabilities $ 20,618,065 $ 22,376,480 $ — $ 22,376,480 $ — $ 18,706,359 $ 20,981,040 $ — $ 20,981,040 $ — ___________________________________________________________________ (1) Inputs based on quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access. Valuation of these items does not entail a significant amount of judgment. (2) Inputs other than quoted prices included within Level 1 that are observable for the liability, either directly or indirectly. For unsecured revolving credit facilities and unsecured term loans, fair value is determined utilizing the income valuation approach. This valuation model takes into account the contract terms of our debt such as the debt maturity and the interest rate on the debt. The valuation model also takes into account the creditworthiness of the Company. (3) Inputs that are unobservable. The Company did not use any Level 3 inputs as of December 31, 2021 and 2020. (4) Consists of cash and marketable securities with original maturities of less than 90 days. (5) Consists of unsecured revolving credit facilities, senior notes, term loans and convertible notes. These amounts do not include our finance lease obligations or commercial paper. Other Financial Instruments The carrying amounts of accounts receivable, accounts payable, accrued interest, accrued expenses and commercial paper approximate fair value as of December 31, 2021 and 2020. Assets and liabilities that are recorded at fair value have been categorized based upon the fair value hierarchy. The following table presents information about the Company's financial instruments recorded at fair value on a recurring basis (in thousands): Fair Value Measurements at December 31, 2021 Fair Value Measurements at December 31, 2020 Description Total Fair Value Level 1 (1) Level 2 (2) Level 3 (3) Total Fair Value Level 1 (1) Level 2 (2) Level 3 (3) Assets: Derivative financial instruments (4) $ 69,808 $ — $ 69,808 $ — $ 108,539 $ — $ 108,539 $ — Total Assets $ 69,808 $ — $ 69,808 $ — $ 108,539 $ — $ 108,539 $ — Liabilities: Derivative financial instruments (5) $ 200,541 $ — $ 200,541 $ — $ 259,705 $ — $ 259,705 $ — Total Liabilities $ 200,541 $ — $ 200,541 $ — $ 259,705 $ — $ 259,705 $ — ___________________________________________________________________ (1) Inputs based on quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access. Valuation of these items does not entail a significant amount of judgment. (2) Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. For foreign currency forward contracts, interest rate swaps and fuel swaps, fair value is derived using valuation models that utilize the income valuation approach. These valuation models take into account the contract terms, such as maturity as well as other inputs, such as foreign exchange rates and curves, fuel types, fuel curves and interest rate yield curves. Derivative instrument fair values take into account the creditworthiness of the counterparty and the Company. (3) Inputs that are unobservable. No Level 3 inputs were used in fair value measurements of Other financial instruments as of December 31, 2021 and December 31, 2020 (4) Consists of foreign currency forward contracts, interest rate swaps and fuel swaps. Refer to the "Fair Value of Derivative Instruments" table for breakdown by instrument type. (5) Consists of foreign currency forward contracts, interest rate swaps and fuel swaps. Refer to the "Fair Value of Derivative Instruments" table for breakdown by instrument type. The reported fair values are based on a variety of factors and assumptions. Accordingly, the fair values may not represent actual values of the financial instruments that could have been realized as of December 31, 2021 or 2020, or that will be realized in the future, and do not include expenses that could be incurred in an actual sale or settlement. Nonfinancial Instruments Recorded at Fair Value on a Nonrecurring Basis The following tables presents information about the Company’s nonfinancial instruments recorded at fair value on a nonrecurring basis (in thousands): Fair Value Measurements at December 31, 2021 Description Total Carrying Amount Total Fair Value Level 3 Total Impairment for the year ended December 31, 2021 (1) Long-lived assets — — — 55,213 Total — — — 55,213 (1) Amount is primarily composed of construction in progress assets that were impaired during the year ended 2021 due to a reduction in scope or the decision to not complete the projects. The impairments were calculated based on orderly liquidation values. The fair value of these assets was estimated as of the date the assets were last impaired. Fair Value Measurement at December 31, 2020 Description Total Carrying Amount Total Fair Value Level 3 Total Impairment for the year ended December 31, 2020 Silversea Goodwill(1) 508,578 508,578 508,578 576,208 Indefinite-life intangible asset(2) 318,700 318,700 318,700 30,800 Long-lived assets(3) 577,193 577,193 577,193 727,063 Right-of-use assets(4) 67,265 67,265 67,265 65,909 Equity-method investments(5) — — — 39,735 Total 1,471,736 1,471,736 1,471,736 1,439,715 ___________________________________________________________________________________________________ (1) We estimated the fair value of the Silversea Cruises reporting unit using a probability-weighted discounted cash flow model in combination with a market-based valuation approach. The principal assumptions used in the discounted cash flow model were (i) forecasted net revenues, primarily the timing of returning to normalized operations, occupancy rates from existing and expected ship deliveries, and terminal growth rate; and (ii) weighted average cost of capital (i.e., discount rate). The probability-weighted discounted cash flow model used our most current projected operating results for the upcoming fiscal year as a base. To that base we added future years’ cash flows through 2030 assuming multiple revenue and expense scenarios that reflect the impact of different global economic environments for this period on the Silversea Cruises' reporting unit. We assigned a probability to each revenue and expense scenario. We discounted the projected cash flows using rates specific to the Silversea Cruises' reporting unit based on its weighted-average cost of capital, which was determined to be 12.75%. The fair value of Silversea Cruises’ goodwill was estimated as of March 31, 2020, the date the asset was last impaired. (2) Amount represents the Silversea Cruises trade name which makes up the majority of our indefinite-life intangible assets, totaling $321.5 million. We estimated the fair value of the Silversea Cruises trade name using a discounted cash flow model and the relief-from-roy alty method and used a discount ra te of 13.25%. S ignificant inputs in performing the fair value assessment for the trade name were (i) forecasted net revenues, primarily the timing of returning to normalized operations, occupancy rates from existing and expected ship deliveries, including options, and terminal growth rate; (ii) the royalty rate of '3.0%; and (iii) weighted average cost of capital (i.e., discount rate). The fair value of the Silversea Cruises trade name was estimated as of March 31, 2020, the date the asset was last impaired. (3) Impairments primarily relate to certain vessels during 2020. In addition, certain construction in progress projects generated impairments during 2020. For the vessels impaired during the quarter ended March 31, 2020, we estimated the fair value of two of our vessels using a blended indication from the income and cost approaches and the fair value of the remaining vessels was estimated primarily based on their orderly liquidation values. For the vessels impaired during the quarter ended June 30, 2020, we estimated the fair value of the vessels using a modified market approach based on the carrying values and orderly liquidation values of the vessels. For the vessels impaired during the quarter ended December 31, 2020, we estimated the fair value of the three Azamara vessels using a market approach. A significant input in performing the fair value assessments for these vessels was management's expected use of the vessels, which takes into consideration forecasted operating results. During the quarter ended September 30, 2020 and quarter ended December 31, 2020, construction in progress assets were impaired due to a reduction in scope or the decision to not complete the projects. The impairment was calculated based on orderly liquidation values. The fair value of these assets was estimated as of the date the asset was last impaired. (4) Impairments to our right-of-use assets relate to certain of our berthing arrangements and a ship operating lease. We estimated the fair value of the berthing arrangements using estimated projected discounted cash flows and the fair value of the ship operating lease was estimated using a market approach. The fair value of the berthing arrangements was estimated as of March 31, 2020, the date these assets were last impaired. A significant input in performing the fair value assessments for these assets was our expected passenger headcount. The fair value of the ship operating lease was estimated as of December 31, 2020, the date this asset was last impaired, and significant inputs in performing the fair value assessment using the market approach for this asset were the expected rate of return and remaining lease payments. (5) We estimated the fair value of our other than temporarily impaired equity-method investments using a discounted cash flow model. A significant input in performing the fair value assessments for these assets was forecaste d operating results for these investments. The fair value of these equity-method investments was estimated as of March 31, 2020, the date these assets were last impaired. For further information on our equity method investments, refer to Note 7 . Other Assets. Master Netting Agreements We have master International Swaps and Derivatives Association (“ISDA”) agreements in place with our derivative instrument counterparties. These ISDA agreements generally provide for final close out netting with our counterparties for all positions in the case of default or termination of the ISDA agreement. We have determined that our ISDA agreements provide us with rights of setoff on the fair value of derivative instruments in a gain position and those in a loss position with the same counterparty. We have elected not to offset such derivative instrument fair values in our consolidated balance sheets. See Credit Related Contingent Features for further discussion on contingent collateral requirements for our derivative instruments. The following table presents information about the Company’s offsetting of financial assets under master netting agreements with derivative counterparties (in thousands): Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements As of December 31, 2021 As of December 31, 2020 Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheet Gross Amount of Eligible Offsetting Cash Collateral Net Amount of Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheet Gross Amount of Eligible Offsetting Cash Collateral Net Amount of Derivatives subject to master netting agreements $ 69,808 $ (67,995) $ — $ 1,813 $ 108,539 $ (80,743) $ — $ 27,796 Total $ 69,808 $ (67,995) $ — $ 1,813 $ 108,539 $ (80,743) $ — $ 27,796 The following table presents information about the Company’s offsetting of financial liabilities under master netting agreements with derivative counterparties (in thousands): Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements As of December 31, 2021 As of December 31, 2020 Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheet Gross Amount of Eligible Offsetting Cash Collateral Net Amount of Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheet Gross Amount of Eligible Offsetting Cash Collateral Net Amount of Derivatives subject to master netting agreements $ (200,541) $ 67,995 $ 44,411 $ (88,135) $ (259,705) $ 80,743 $ 57,273 $ (121,689) Total $ (200,541) $ 67,995 $ 44,411 $ (88,135) $ (259,705) $ 80,743 $ 57,273 $ (121,689) Concentrations of Credit Risk We monitor our credit risk associated with financial and other institutions with which we conduct significant business and, to minimize these risks, we select counterparties with credit risks acceptable to us and we seek to limit our exposure to an individual counterparty. Credit risk, including but not limited to counterparty nonperformance under derivative instruments, our credit facilities and new ship progress payment guarantees, is not considered significant, as we primarily conduct business with large, well-established financial institutions, insurance companies and export credit agencies many of which we have long-term relationships with and which have credit risks acceptable to us or where the credit risk is spread out among a large number of counterparties. As of December 31, 2021, we had counterparty credit risk exposure under our derivative instruments of $1.9 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. 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. In certain hedges of our net investment in foreign operations and investments, we exclude forward points from the assessment of hedge effectiveness and we amortize the related amounts directly into earnings. On an ongoing basis, we assess whether derivatives used in hedging transactions are "highly effective" in offsetting changes in the fair value or cash flow of hedged items. For our net investment hedges, we use the dollar offset method to measure effectiveness. For all other hedging programs, we use the long-haul method to assess hedge effectiveness using regression analysis for each hedge relationship. The methodology for assessing hedge effectiveness is applied on a consistent basis for each one of our hedging programs (i.e., interest rate, foreign currency ship construction, foreign currency net investment and fuel). For our regression analyses, we use an observation period of up to three years, utilizing market data relevant to the hedge horizon of each hedge relationship. High effectiveness is achieved when a statistically valid relationship reflects a high degree of offset and correlation between the changes in the fair values of the derivative instrument and the hedged item. If it is determined that a derivative is not highly effective as a hedge or hedge accounting is discontinued, any change in fair value of the derivative since the last date at which it was determined to be effective is recognized in earnings. Cash flows from derivative instruments that are designated as fair value or cash flow hedges are classified in the same category as the cash flows from the underlying hedged items. In the event that hedge accounting is discontinued, cash flows subsequent to the date of discontinuance are classified within investing activities. Cash flows from derivative instruments not designated as hedging instruments are classified as investing activities. We consider the classification of the underlying hedged item’s cash flows in determining the classification for the designated derivative instrument’s cash flows. We classify derivative instrument cash flows from hedges of benchmark interest rate or hedges of fuel expense as operating activities due to the nature of the hedged item. Likewise, we classify derivative instrument cash flows from hedges of foreign currency risk on our newbuild ship payments as investing activities. Interest Rate Risk Our exposure to market risk for changes in interest rates primarily relates to our debt obligations including future interest payments. At December 31, 2021 and 2020, approximately 65.7% and 64.5%, respectively, of our debt was effectively fixed. We use interest rate swap agreements to modify our exposure to interest rate movements and to manage our interest expense. Market risk associated with our fixed rate debt is the potential increase in fair value resulting from a decrease in interest rates. We use interest rate swap agreements that effectively convert a portion of our fixed-rate debt to a floating-rate basis to manage this risk. At December 31, 2021, we maintained interest rate swap agreements on the following fixed-rate debt instruments: Debt Instrument Swap Notional as of December 31, 2021 (In thousands) Maturity Debt Fixed Rate Swap Floating Rate: LIBOR plus All-in Swap Floating Rate as of December 31, 2021 Unsecured senior notes 650,000 November 2022 5.25% 3.63% 3.79% $ 650,000 These interest rate swap agreements are accounted for as fair value hedges. Market risk associated with our long-term floating rate debt is the potential increase in interest expense from an increase in interest rates. We use interest rate swap agreements that effectively convert a portion of our floating-rate debt to a fixed-rate basis to manage this risk. At December 31, 2021, we maintained interest rate swap agreements on the following floating-rate debt instruments: Debt Instrument Swap Notional as of December 31, 2021 (In thousands) Maturity Debt Floating Rate All-in Swap Fixed Rate Celebrity Reflection term loan $ 163,625 October 2024 LIBOR plus 0.40% 2.85% Quantum of the Seas term loan 306,250 October 2026 LIBOR plus 1.30% 3.74% Anthem of the Seas term loan 332,292 April 2027 LIBOR plus 1.30% 3.86% Ovation of the Seas term loan 449,583 April 2028 LIBOR plus 1.00% 3.16% Harmony of the Seas term loan (1) 427,142 May 2028 EURIBOR plus 1.15% 2.26% Odyssey of the Seas term loan (2) 421,667 October 2032 LIBOR plus 0.96% 3.21% Odyssey of the Seas term loan (2) 191,667 October 2032 LIBOR plus 0.96% 2.84% $ 2,292,226 ___________________________________________________________________ (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 December 31, 2021. (2) Interest rate swap agreements hedging the term loan of Odyssey of the Seas include LIBOR zero-floors matching the debt LIBOR zero-floor. The effective dates of the $421.7 million and $191.7 million interest rate swap agreements are October 2020 and October 2022, respectively. The unsecured term loan for the financing of Odyssey of the Seas was drawn on March 2021. These interest rate swap agreements are accounted for as cash flow hedges. The notional amount of interest rate swap agreements related to outstanding debt and our current unfunded financing arrangements as of December 31, 2021 and 2020 was $2.9 billion and $3.4 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 to manage portions of the exposure to movements in foreign currency exchange rates. As of December 31, 2021, the aggregate cost of our ships on order, was $12.4 billion, of which we had deposited $800.2 million as of such date. These amounts do not include any ships placed on order that are contingent upon completion of conditions precedent and/or financing, any ships on order by our Partner Brands. Refer to Note 17. Commitments and Contingencies , for further information on our ships on order. At December 31, 2021 and 2020, approximately 59.0% and 66.3%, respectively, of the aggregate cost of the ships under construction was exposed to fluctuations in the Euro exchange rate. Our foreign currency forward contract agreements are accounted for as cash flow or net investment hedges depending on the designation of the related hedge. On a regular basis, we enter into foreign currency forward contracts and, from time to time, we utilize cross-currency swap agreements and collar options to minimize the volatility resulting from the remeasurement of net monetary assets and liabilities denominated in a currency other than our functional currency or the functional currencies of our foreign subsidiaries. During the year ended December 31, 2021, we maintained an average of approximately $483.2 million of these foreign currency forward contracts. These instruments are not designated as hedging instruments. For the years ended December 31, 2021, 2020 and 2019, changes in the fair value of the foreign currency forward contracts resulted in gains (losses) of $(30.9) million, $(19.0) million and $1.4 million, respectively, which offset gains (losses) arising from the remeasurement of monetary assets and liabilities denominated in foreign currencies in those same years of $24.3 million, $(1.5) million and $0.4 million, respectively. These amounts were recognized in earnings within Other income (expense) in our consolidated statements of comprehensive income (loss). We consider our investments in our foreign operations to be denominated in relatively stable currencies and of a long-term nature. As of December 31, 2021, we maintained a foreign currency forward contract and designated it as a hedge of a portion of our net investments in TUI Cruises of €245.0 million, or approximately $278.6 million based on the exchange rate at December 31, 2021. This forward currency contract matures in April 2022. The notional amount of outstanding foreign exchange contracts, excluding the forward contracts entered into to minimize remeasurement volatility, as of December 31, 2021 and 2020 was $3.4 billion and $3.1 billion, respectively. Non-Derivative Instruments We also address the exposure of our investments in foreign operations by denominating a portion of our debt in our subsidiaries' and investments' functional currencies and designating it as a hedge of these subsidiaries and investments. We had designated debt as a hedge of our net investments primarily in TUI Cruises of €97.0 million, or approximately $110.3 million, as of December 31, 2021. As of December 31, 2020, we had designated debt as a hedge of our net investments primarily in TUI Cruises of €215.0 million, or approximately $263.0 million. Fuel Price Risk Our exposure to market risk for changes in fuel prices relates primarily to the consumption of fuel on our ships. We use fuel swap agreements to mitigate the financial impact of fluctuations in fuel prices. Our fuel swap agreements are generally accounted for as cash flow hedges. In the case that our hedged forecasted fuel consumption is not probable of occurring, hedge accounting will be discontinued and the related accumulated other comprehensive gain or loss will be reclassified to Other income (expense) immediately. For hedged forecasted fuel consumption that remains possible of occurring, hedge accounting will be discontinued and the related accumulated other comprehensive gain or loss will remain in accumulated other comprehensive gain or loss until the underlying hedged transactions are recognized in earnings or the related hedged forecasted fuel consumption is deemed probable of not occurring. The prior suspension of our cruise operations due to the COVID-19 pandemic and our gradual resumption of cruise operations has resulted in reductions to our forecasted fuel purchases. During the year ended December 31, 2021, we discontinued cash flow hedge accounting on 0.2 million metric tons of our fuel swap agreements maturing in 2021 and 2022, which resulted in the reclassification of a net $0.7 million loss from Accumulated other comprehensive loss to Other income (expense) . During the year ended December 31, 2020, we discontinued cash flow hedge accounting on 0.6 million metric tons of our fuel swap agreements maturing in 2020 and 2021, which resulted in the reclassification of a net $104.4 million loss from Accumulated other comprehensive loss to Other income (expense) . Changes in the fair value of fuel swaps for which cash flow hedge accounting was discontinued are currently recognized in Other income (expense) each reporting period through the maturity dates of the fuel swaps. Future s uspension of our operations or modifications to our itineraries may affect our expected forecasted fuel purchases which could result in further discontinuance of fuel swap cash flow hedge accounting and the reclassification of deferred gains or losses from Accumulated other comprehensive loss into earnings . Refer to Risk Factors in Part 1, Item 1A. for further discussion on risks related to the COVID-19 pandemic. At December 31, 2021, we have hedged the variability in future cash flows for certain forecasted fuel transactions occurring through 2023. As of December 31, 2021 and December 31, 2020, we had the following outstanding fuel swap agreements Fuel Swap Agreements As of December 31, 2021 As of December 31, 2020 (metric tons) Designated as hedges: 2022 821,850 389,650 2023 249,050 82,400 Fuel Swap Agreements As of December 31, 2021 As of December 31, 2020 (% hedged) Designated hedges as a % of projected fuel purchases: 2022 54 % 23 % 2023 15 % 5 % Fuel Swap Agreements As of December 31, 2021 As of December 31, 2020 (metric tons) Not designated as hedges: 2022 (1) 231,900 14,650 (1) As of December 31, 2021, 115,950 metric tons relate to fuel swap agreements with discontinued hedge accounting, in which we effectively pay fixed prices for our fuel purchases and receive floating prices from the counterparty. The remaining 115,950 tons relate to fuel swap agreements that were not designated as hedges since inception, in which we effectively pay floating prices for our fuel purchases and receive fixed prices from the counterparty. At December 31, 2021 there was $23.8 million of estimated unrealized net gain associated with our cash flow hedges pertaining to fuel swap agreements to be reclassified to earnings from Accumulated other comprehensive loss within the next twelve months when compared to $13.1 million of estimated unrealized net loss at December 31, 2020. Reclassification is expected to occur as the result of fuel consumption associated with our hedged forecasted fuel purchases. The fair value and line item caption of derivative instruments recorded within our consolidated balance sheets were as follows (in thousands): Fair Value of Derivative Instruments Asset Derivatives Liability Derivatives Balance Sheet As of December 31, 2021 As of December 31, 2020 Balance Sheet As of December 31, 2021 As of December 31, 2020 Fair Value Fair Value Fair Value Fair Value Derivatives designated as hedging instruments under ASC 815-20 (1) Interest rate swaps Other assets $ — $ 17,271 Other long-term liabilities $ 62,080 $ 144,653 Interest rate swaps Derivative financial instruments 6,478 261 Derivative Financial Instruments — — Foreign currency forward contracts Derivative financial instruments 7,357 63,894 Derivative financial instruments 116,027 13,294 Foreign currency forward contracts Other assets 2,070 20,836 Other long-term liabilities 8,813 7,306 Fuel swaps Derivative financial instruments 31,919 5,093 Derivative financial instruments 7,944 25,203 Fuel swaps Other assets 13,452 350 Other long-term liabilities 1,202 50,117 Total derivatives designated as hedging instruments under ASC 815-20 61,276 107,705 196,066 240,573 Derivatives not designated as hedging instruments under ASC 815-20 Foreign currency forward contracts Derivative financial Instruments — — Derivative financial instruments — 160 Foreign currency forward contracts Other assets — — Other long-term liabilities — — Fuel swaps Derivative financial instruments 8,430 834 Derivative financial instruments 3,264 18,028 Fuel swaps Other assets 102 — Other long-term liabilities 1,211 944 Total derivatives not designated as hedging instruments under ASC 815-20 8,532 834 4,475 19,132 Total derivatives $ 69,808 $ 108,539 $ 200,541 $ 259,705 ___________________________________________________________________ (1) Accounting Standard Codification 815-20 " Derivatives and Hedging." The location and amount of gain or (loss) recognized in income on fair value and cash flow hedging relationships were as follows (in thousands) Year Ended December 31, 2021 Year Ended December 31, 2020 Fuel Expense Depreciation and Amortization Expenses Interest Income (Expense) Other Income (Expense) Fuel Expense Depreciation and Amortization Expenses Interest Income (Expense) Other Income (Expense) Total amounts of income and expense line items presented in the s |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 17. Commitments and Contingencies Ship Purchase Obligations Our future capital commitments consist primarily of new ship orders. As of December 31, 2021, we had two Oasis-class ships and three ships of a new generation, known as our Icon-class, on order for our Royal Caribbean International brand with an aggregate capacity of approximately 28,200 berths. As of December 31, 2021, we had two Edge-class ships on order for our Celebrity brand with an aggregate capacity of approximately 6,500 berths. Additionally as of December 31, 2021, we had two ships on order with an aggregate capacity of approximately 1,460 berths for our Silversea Cruises brand. The following provides further information on recent developments with respect to our ship orders. In September 2019, Silversea Cruises entered into two credit agreements, guaranteed by us, for the unsecured financing of the first and second Evolution-class ships for an amount of up to 80% of each ship's contract price through facilities to be guaranteed 95% by Euler Hermes, the official export credit agency of Germany. The maximum loan amount under each facility is not to exceed the United States dollar equivalent of €351.6 million in the case of the first Evolution-class ship and €359.0 million in the case of the second Evolution-class ship, or approximately $399.9 million and $408.3 million, respectively, based on the exchange rate at December 31, 2021. Each loan, once funded, will amortize semi-annually and will mature 12 years following the delivery of each ship. At our election, interest on each loan will accrue either (1) at a fixed rate of 4.14% and 4.18%, respectively (inclusive of the applicable margin) or (2) at a floating rate equal to LIBOR plus 0.79% and 0.83%, respectively. The first and second Evolution-class ships will each have a capacity of approximately 730 berths. In December 2019, we entered into a credit agreement for the unsecured financing of the sixth Oasis-class ship for up to 80% of the ship’s contract price through a facility to be guaranteed 100% by BpiFrance Assurance Export, the official export credit agency of France. Under the financing arrangement, we have the right, but not the obligation, to satisfy the obligations to be incurred upon delivery and acceptance of the ship under the shipbuilding contract by assuming, at delivery and acceptance, the debt indirectly incurred by the shipbuilder during the construction of the ship. The maximum loan amount under the facility is not to exceed the United States dollar equivalent of €1.3 billion, or approximately $1.5 billion based on the exchange rate at December 31, 2021. The loan will amortize semi-annually and will mature 12 years following delivery of the ship. Interest on the loan will accrue at a fixed rate of 3.00% (inclusive of margin). The sixth Oasis-class ship will have a capacity of approximately 5,700 berths. In December 2019, we entered into a credit agreement for the unsecured financing of the third Icon-class ship for up to 80% of the ship’s contract price. Finnvera plc, the official export credit agency of Finland, has agreed to guarantee 95% of the 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 the facility is not to exceed the United States dollar equivalent of €1.4 billion, or approximately $1.6 billion based on the exchange rate at December 31, 2021. The loan, once funded, will amortize semi-annually and will mature 12 years following the delivery of the ship. Approximately 60% of the loan will accrue interest at a fixed rate of 3.29%. The balance of the loan will accrue interest at a floating rate of LIBOR plus 0.85%. The third Icon-class ship will have a capacity of approximately 5,600 berths During 2017, we entered into credit agreements for the unsecured financing of the two Icon-class 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 100% of a substantial majority of the financing to the lenders, 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 $1.6 billion, based on the exchange rate at December 31, 2021. 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 5,600 berths. During 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 $812.7 million and $1.3 billion, respectively, based on the exchange rate at December 31, 2021. 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 3,250 berths. The fifth Oasis-class ship will have a capacity of approximately 5,700 berths. Our future capital commitments consist primarily of new ship orders. COVID-19 has impacted shipyard operations which have and may continue to result in delays of our previously contracted ship deliveries. As of December 31, 2021, the dates that ships on order by our Global and Partner Brands are expected to be delivered, subject to change in the event of construction delays, and their approximate berths are as follows: Ship Shipyard Expected to be delivered Approximate Royal Caribbean International — Oasis-class: Wonder of the Seas Chantiers de l’Atlantique 1st Quarter 2022 5,700 Unnamed Chantiers de l’Atlantique 2nd Quarter 2024 5,700 Icon-class: Icon of the Seas Meyer Turku Oy 3rd Quarter 2023 5,600 Unnamed Meyer Turku Oy 2nd Quarter 2025 5,600 Unnamed Meyer Turku Oy 2nd Quarter 2026 5,600 Celebrity Cruises — Edge-class: Celebrity Beyond Chantiers de l’Atlantique 2nd Quarter 2022 3,250 Celebrity Ascent Chantiers de l’Atlantique 4th Quarter 2023 3,250 Silversea Cruises — Evolution-class: Silver Nova Meyer Werft 2nd Quarter 2023 730 Unnamed Meyer Werft 2nd Quarter 2024 730 TUI Cruises (50% joint venture) — Mein Schiff 7 Meyer Turku Oy 2nd Quarter 2024 2,900 Unnamed Fincantieri 4th Quarter 2024 4,100 Unnamed Fincantieri 2nd Quarter 2026 4,100 Total Berths 47,260 We took delivery of Wonder of the Seas in January of 2022. In addition, as of December 31, 2021, we have an agreement in place with Chantiers de l’Atlantique to build an additional Edge-class ship for delivery in 2025, which is contingent upon completion of conditions precedent and financing. In September 2021, we amended the credit agreements for the first and second Evolution-class ships to increase their maximum loan amounts by €175.6 million on an aggregate basis, or approximately $199.7 million based on the exchange rate at December 31, 2021. The increase in the loan amounts will finance ship design modifications that incorporate innovative sustainability features and additional premium cabins, increasing the capacity for each ship to 730 berths. At our election, interest on incremental portion of each loan will accrue either (1) at a fixed rate of 4.34% and 4.38%, respectively (inclusive of the applicable margin) or (2) at a floating rate equal to LIBOR plus 0.99% and 1.03%, respectively. As of December 31, 2021, the aggregate cost of our ships on order, presented in the above table, not including any ships on order by our Partner Brands, was approximately $12.4 billion, of which we had deposited $800.2 million as of such date. Approximately 59.0% of the aggregate cost was exposed to fluctuations in the Euro exchange rate at December 31, 2021. Refer to Note 16. Fair Value Measurements and Derivative Instruments for further information. Litigation As previously reported, two lawsuits were filed against us in August 2019 in the U.S. District Court for the Southern District of Florida (the "Court") under Title III of the Cuban Liberty and Democratic Solidarity Act, also known as the Helms-Burton Act. The complaint filed by Havana Docks Corporation ("Havana Docks Action") alleges it holds an interest in the Havana Cruise Port Terminal, and the complaint filed by Javier Garcia-Bengochea (the "Port of Santiago Action") alleges that he holds an interest in the Port of Santiago, Cuba, both of which were expropriated by the Cuban government. The complaints further allege that we trafficked in those properties by embarking and disembarking passengers at these facilities. The plaintiffs seek all available statutory remedies, including the value of the expropriated property, plus interest, treble damages, attorneys’ fees and costs. In the Havana Docks Action, we and the plaintiff have filed motions for summary judgment, which were heard by the Court in January 2022. The Havana Docks Action is scheduled for trial on May 23, 2022. The Court dismissed the Port of Santiago Action with prejudice on the basis that the plaintiff lacked standing, and the plaintiff’s appeal of the dismissal is awaiting a decision by the appellate court. We believe we have meritorious defenses to the claims alleged in both the Havana Docks Action and the Port of Santiago Action, and we intend to vigorously defend ourselves against them. The outcome of litigation is inherently unpredictable and subject to significant uncertainties, and there can be no assurances that the final outcome of either case will not be material. We are routinely involved in claims, typical within the travel and tourism 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 Some of the contracts that we enter into include indemnification provisions that obligate us to make payments to the counterparty if certain events occur. These contingencies generally relate to changes in taxes, increased lender capital costs and other similar costs. The indemnification clauses are often standard contractual terms and are entered into in the normal course of business. There are no stated or notional amounts included in the indemnification clauses and we are not able to estimate the maximum potential amount of future payments, if any, under these indemnification clauses. We have not been required to make any payments under such indemnification clauses in the past and, under current circumstances, we do not believe an indemnification in any material amount is probable. If any person acquires ownership of more than 50% of our common stock or, subject to certain exceptions, during any 24-month period, a majority of our board of directors is no longer comprised of individuals who were members of our board of directors on the first day of such period, we may be obligated to prepay indebtedness outstanding under our credit facilities, which we may be unable to replace on similar terms. Our public debt securities also contain change of control provisions that would be triggered by a third-party acquisition of greater than 50% of our common stock coupled with a ratings downgrade. If this were to occur, it would have an adverse impact on our liquidity and operations. At December 31, 2021, we have future commitments to pay for our usage of certain port facilities, marine consumables, services and maintenance contracts as follows (in thousands): Year 2022 $ 154,552 2023 86,532 2024 75,868 2025 33,981 2026 29,518 Thereafter 154,033 $ 534,484 |
Restructuring Charges
Restructuring Charges | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Note 18 . Restructuring Charges In April 2020, we reduced our US shoreside workforce by approximately 23% through permanent layoffs. We incurred severance costs of $28.0 million during the year ended December 31, 2020. The following table summarizes our restructuring costs during the twelve months ended December 31, 2021 as it relates to the April 2020 reduction in our workforce (in thousands): Beginning Balance January 1, 2021 Accruals Payments Ending Balance December 31, 2021 Cumulative Charges Incurred Termination benefits $ 4,257 $ 682 $ 4,626 $ 313 $ 28,635 Total $ 4,257 $ 682 $ 4,626 $ 313 $ 28,635 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis for Preparation of Consolidated Financial Statements | Basis for Preparation of Consolidated Financial Statements The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Estimates are required for the preparation of financial statements in accordance with these principles. Actual results could differ from these estimates. Refer to Note 2 . Summary of Significant Accounting Policies for a discussion of our significant accounting policies. |
Consolidation | All significant intercompany accounts and transactions are eliminated in consolidation. We consolidate entities over which we have control, usually evidenced by a direct ownership interest of greater than 50%, and variable interest entities where we are determined to be the primary beneficiary. Refer to Note 7 . Other Assets |
Revenues and Expenses | Revenues and ExpensesDeposits received on sales of passenger cruises are initially recorded as customer deposit liabilities on our balance sheet. Customer deposits are subsequently recognized as passenger ticket revenues, together with revenues from onboard and other goods and services and all associated cruise operating expenses of a voyage. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash and marketable securities with original maturities of less than 90 days. |
Inventories | Inventories Inventories consist of provisions, supplies and fuel carried at the lower of cost (weighted-average) or net realizable value. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. We capitalize interest as part of the cost of acquiring certain assets. Improvement costs that we believe add value to our ships are capitalized as additions to the ship, the useful lives of the improvements are estimated and depreciated over the shorter of the improvements' estimated useful lives or that of the associated ship, and the replaced assets are disposed of on a net cost basis. The estimated cost and accumulated depreciation of replaced or refurbished ship components are written off and any resulting losses are recognized in Cruise operating expenses . Liquidated damages received from shipyards as a result of the late delivery of a new ship are recorded as reductions to the cost basis of the ship. Depreciation of property and equipment is computed using the straight-line method over the estimated useful life of the asset. The useful lives of our ships are generally 30-35 years, net of a 10%-15% projected residual value. The 30-35-year useful life and 10%-15% residual value are based on the weighted-average of all major components of a ship. Our useful life and residual value estimates take into consideration the impact of anticipated technological changes, long-term cruise and vacation market conditions and historical useful lives of similarly-built ships. In addition, we take into consideration our estimates of the weighted-average useful lives of the ships' major component systems, such as hull, superstructure, main electric, engines and cabins. We employ a cost allocation methodology at the component level, in order to support the estimated weighted-average useful lives and residual values, as well as to determine the net cost basis of assets being replaced. Given the very large and complex nature of our ships, our accounting estimates related to ships and determinations of ship improvement costs to be capitalized require considerable judgment and are inherently uncertain. Depreciation for assets under finance leases is computed using the shorter of the lease term or related asset life, unless the asset is a finance lease due to title transferring or a purchase option that is reasonably certain of being exercised, in which case the asset is depreciated over the related asset life. Depreciation of property and equipment is computed utilizing the following useful lives: Years Ships generally, 30-35 Ship improvements 3-25 Buildings and improvements 10-40 Computer hardware and software 3-10 Transportation equipment and other 3-30 Leasehold improvements Shorter of remaining lease term or useful life 3-30 We periodically review estimated useful lives and residual values for ongoing reasonableness, considering long term views on our intended use of each class of ships and the planned level of improvements to maintain and enhance vessels within those classes. In the event a factor is identified that may trigger a change in the estimated useful lives and residual values of our ships, a review of the estimate is completed. We review long-lived assets for impairment whenever events or changes in circumstances indicate, based on estimated undiscounted future cash flows, that the carrying value of these assets may not be fully recoverable. For purposes of recognition and measurement of an impairment loss, long-lived assets are grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. The lowest level for which we maintain identifiable cash flows that are independent of the cash flows of other assets and liabilities is at the ship level for our ships. If estimated future cash flows are less than the carrying value of an asset, an impairment charge is recognized to the extent its carrying value exceeds fair value. Refer to Note 6 . Property and Equipment for further information on determination of fair value for long-lived assets. We use the deferral method to account for drydocking costs. Under the deferral method, drydocking costs incurred are deferred and charged to expense on a straight-line basis over the period to the next scheduled drydock, which we estimate to be a period of thirty |
Goodwill | Goodwill Goodwill represents the excess of cost over the fair value of net tangible and identifiable intangible assets acquired. We review goodwill for impairment at the reporting unit level annually or, when events or circumstances dictate, more frequently. The impairment review for goodwill consists of a qualitative assessment of whether it is more-likely-than-not that a reporting unit's fair value is less than its carrying value, and if necessary, a goodwill impairment test. Factors to consider when performing the qualitative assessment include general economic conditions, limitations on accessing capital, changes in forecasted operating results, changes in fuel prices and fluctuations in foreign exchange rates. If the qualitative assessment demonstrates that it is more-likely-than-not that the estimated fair value of the reporting unit exceeds its carrying value, it is not necessary to perform the goodwill impairment test. We may elect to bypass the qualitative assessment and proceed directly to step one, for any reporting unit, in any period. On a periodic basis, we elect to bypass the qualitative assessment and proceed to step one to corroborate the results of recent years' qualitative assessments. We can resume the qualitative assessment for any reporting unit in any subsequent period. The goodwill impairment analysis consists of a comparison of the fair value of the reporting unit with its carrying value. We typically estimate the fair value of our reporting units using a discounted cash flow model, which may also include a combination of a market-based valuation approach. The estimation of fair value utilizing discounted expected future cash flows includes numerous uncertainties which require our significant judgment when making assumptions of expected revenues, operating costs, marketing, selling and administrative expenses, interest rates, ship additions and retirements as well as |
Intangible Assets | Intangible Assets In connection with our acquisitions, we have acquired certain intangible assets to which value has been assigned based on our estimates. Intangible assets that are deemed to have an indefinite life are not amortized, but are subject to an annual impairment test, or when events or circumstances dictate, more frequently. The impairment review for indefinite-life intangible assets can be performed using a qualitative or quantitative impairment assessment. The quantitative assessment consists of a comparison of the fair value of the asset with its carrying value. We estimate the fair value of these assets using a discounted cash flow model and various valuation methods depending on the nature of the intangible asset, such as the relief-from-royalty method for trademarks and trade names. The principal assumptions used in the discounted cash flows model for our 2021 impairment assessments were: (i) forecasted net revenues, primarily the timing of returning to normalized operations, occupancy rates from existing and expected ship deliveries, and terminal growth rate; (ii) royalty rate; and (iii) weighted average cost of capital (i.e., discount rate). If the carrying value exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. If the fair value exceeds its carrying value, the indefinite-life intangible asset is not considered impaired. Other intangible assets assigned finite useful lives are amortized on a straight-line basis over their estimated useful lives. |
Contingencies - Litigation | Contingencies — Litigation On an ongoing basis, we assess the potential liabilities related to any lawsuits or claims brought against us. While it is typically difficult to determine the timing and ultimate outcome of such actions, we use our best judgment to determine if it is probable that we will incur an expense related to the settlement or final adjudication of such matters and whether a reasonable estimation of such probable loss, if any, can be made. In assessing probable losses, we take into consideration estimates of the amount of insurance recoveries, if any, which are recorded as assets when recoverability is probable. We accrue a liability when we believe a loss is probable and the amount of loss can be reasonably estimated. Due to the inherent uncertainties related to the eventual outcome of litigation and potential insurance recoveries, it is possible that certain matters may be resolved for amounts materially different from any provisions or disclosures that we have previously made. |
Advertising Costs | Advertising CostsAdvertising costs are expensed as incurred except those costs which result in tangible assets, such as brochures, which are treated as prepaid expenses and charged to expense as consumed. Advertising costs consist of media and online advertising as well as brochure, production and direct mail costs. |
Derivative Instruments | Derivative Instruments We enter into various forward, swap and option contracts to manage our interest rate exposure and to limit our exposure to fluctuations in foreign currency exchange rates and fuel prices. These instruments are recorded on the balance sheet at their fair value and the vast majority are designated as hedges. We also use non-derivative financial instruments designated as hedges of our net investment in our foreign operations and investments. Although certain of our derivative financial instruments do not qualify or are not accounted for under hedge accounting, our objective is not to hold or issue derivative financial instruments for trading or other speculative purposes. At inception of the hedge relationship, a derivative instrument that hedges the exposure to changes in the fair value of a firm commitment or a recognized asset or liability is designated as a fair value hedge. A derivative instrument that hedges a forecasted transaction or the variability of cash flows related to a recognized asset or liability is designated as a cash flow hedge. Changes in the fair value of derivatives that are designated as fair value hedges are offset against changes in the fair value of the underlying hedged assets, liabilities or firm commitments. Gains and losses on derivatives that are designated as cash flow hedges are recorded as a component of Accumulated other comprehensive loss until the underlying hedged transactions are recognized in earnings. The foreign currency transaction gain or loss of our non-derivative financial instruments 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. In certain hedges of our net investment in foreign operations and investments, we exclude forward points from the assessment of hedge effectiveness and we amortize the related amounts directly into earnings. On an ongoing basis, we assess whether derivatives used in hedging transactions are "highly effective" in offsetting changes in the fair value or cash flow of hedged items. For our net investment hedges, we use the dollar offset method to measure effectiveness. For all other hedging programs, we use the long-haul method to assess hedge effectiveness using regression analysis for each hedge relationship. The methodology for assessing hedge effectiveness is applied on a consistent basis for each one of our hedging programs (i.e., interest rate, foreign currency ship construction, foreign currency net investment and fuel). For our regression analyses, we use an observation period of up to three years, utilizing market data relevant to the hedge horizon of each hedge relationship. High effectiveness is achieved when a statistically valid relationship reflects a high degree of offset and correlation between the changes in the fair values of the derivative instrument and the hedged item. If it is determined that a derivative is not highly effective as a hedge or hedge accounting is discontinued, any change in fair value of the derivative since the last date at which it was determined to be effective is recognized in earnings. Cash flows from derivative instruments that are designated as fair value or cash flow hedges are classified in the same category as the cash flows from the underlying hedged items. In the event that hedge accounting is discontinued, cash flows subsequent to the date of discontinuance are classified within investing activities. Cash flows from derivative instruments not designated as hedging instruments are classified as investing activities. We consider the classification of the underlying hedged item’s cash flows in determining the classification for the designated derivative instrument’s cash flows. We classify derivative instrument cash flows from hedges of benchmark interest rate or hedges of fuel expense as operating activities due to the nature of the hedged item. Likewise, we classify derivative instrument cash flows from hedges of foreign currency risk on our newbuild ship payments as investing activities. |
Foreign Currency Translations and Transactions | Foreign Currency Translations and Transactions We translate assets and liabilities of our foreign subsidiaries whose functional currency is the local currency, at exchange rates in effect at the balance sheet date. We translate revenues and expenses at weighted-average exchange rates for the period. Equity is translated at historical rates and the resulting foreign currency translation adjustments are included as a component of Accumulated other comprehensive loss , which is reflected as a separate component of Shareholders' equity . Exchange gains or losses arising from the remeasurement of monetary assets and liabilities denominated in a currency other than the functional currency of the entity involved are immediately included in our earnings, except for certain liabilities that have been designated to act as a hedge of a net investment in a foreign operation or investment. Exchange gains (losses) were $24.3 million, $(1.5) million and $0.4 million for the years ended December 31, 2021, 2020 and 2019, respectively, and were recorded within Other income (expense) . The majority of our transactions are settled in United States dollars. Gains or losses resulting from transactions denominated in other currencies are recognized in income at each balance sheet date. |
Concentrations of Credit Risk | Concentrations of Credit Risk We monitor our credit risk associated with financial and other institutions with which we conduct significant business and, to minimize these risks, we select counterparties with credit risks acceptable to us and we seek to limit our exposure to an individual counterparty. Credit risk, including but not limited to counterparty nonperformance under derivative instruments, our credit facilities and new ship progress payment guarantees, is not considered significant, as we primarily conduct business with large, well-established financial institutions, insurance companies and export credit agencies many of which we have long-term relationships with and which have credit risks acceptable to us or where the credit risk is spread out among a large number of counterparties. As of December 31, 2021 and December 31, 2020, we had counterparty credit risk exposure under our derivative instruments of $1.9 million and $26.9 million respectively, 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. 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. |
(Loss) Earnings Per Share | (Loss) Earnings Per Share Basic (loss) earnings per share is computed by dividing Net (Loss) Income attributable to Royal Caribbean Cruises Ltd. |
Stock-Based Employee Compensation | Stock-Based Employee Compensation We measure and recognize compensation expense at the estimated fair value of employee stock awards. Compensation expense for awards and the related tax effects are recognized as they vest. We use the estimated amount of expected forfeitures to calculate compensation costs for all outstanding awards. |
Segment Reporting | Segment Reporting As of December 31, 2021, we controlled and operated three global cruise brands: Royal Caribbean International, Celebrity Cruises and Silversea Cruises. We also own a 50% joint venture interest in TUIC, that operates the German brands TUI Cruises and Hapag-Lloyd Cruises. We believe our brands possess the versatility to enter multiple cruise market segments within the cruise vacation industry. Although each of these brands has its own marketing style as well as ships and crews of various sizes, the nature of the products sold and services delivered by these brands share a common base (i.e., the sale and provision of cruise vacations). Our brands also have similar itineraries as well as similar cost and revenue components. In addition, our brands source passengers from similar markets around the world and operate in similar economic environments with a significant degree of commercial overlap. As a result, our brands have been aggregated as a single reportable segment based on the similarity of their economic characteristics, types of consumers, regulatory environment, maintenance requirements, supporting systems and processes as well as products and services provided. Our Chief Executive Officer has been identified as the chief operating decision-maker and all significant operating decisions including the allocation of resources are based upon the analyses of the Company as one segment. Refer to Note 3 . Revenue for passenger ticket revenue information by geographic area. |
Adoption of Accounting Pronouncements | Recent Accounting Pronouncements In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848), which provides optional expedients and exceptions to the current guidance on contract modifications and hedging relationships to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative reference rates. Subsequently, in January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848), which presents amendments to clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The guidance in both ASUs was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. We are currently evaluating the impact of the new guidance on our consolidated financial statements. The impact, if any, will be dependent on the terms of any future contract modifications related to a change in reference rate. In August 2020, the FASB issued ASU No. 2020-06 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Useful Lives of Property and Equipment Used in Computation of Depreciation | Depreciation of property and equipment is computed utilizing the following useful lives: Years Ships generally, 30-35 Ship improvements 3-25 Buildings and improvements 10-40 Computer hardware and software 3-10 Transportation equipment and other 3-30 Leasehold improvements Shorter of remaining lease term or useful life 3-30 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table disaggregates our total revenues by geographic regions where we provide cruise itineraries (in thousands): Year Ended December 31, 2021 2020 2019 Revenues by itinerary North America(1) $ 1,039,783 $ 1,342,429 $ 6,392,354 Asia/Pacific(2) 128,348 411,865 1,529,898 Europe(3) 180,256 18,604 1,942,057 Other regions 77,985 241,590 567,904 Total revenues by itinerary 1,426,372 2,014,488 10,432,213 Other revenues(4) 105,761 194,317 518,448 Total revenues $ 1,532,133 $ 2,208,805 $ 10,950,661 (1) Includes the United States, Canada, Mexico and the Caribbean. (2) Includes Southeast Asia (e.g., Singapore, Thailand and the Philippines), East Asia (e.g., China and Japan), South Asia (e.g., India and Pakistan) and Oceania (e.g., Australia and Fiji Islands) regions. (3) Includes European countries (e.g., the Nordics, Germany, France, Italy, Spain and the United Kingdom). (4) Includes revenues primarily related to cancellation fees, vacation protection insurance and pre- and post-cruise tours and fees for operating certain port facilities. Amounts also include revenues related to our bareboat charter, procurement and management related services we perform on behalf of our unconsolidated affiliates. Refer to Note 7 . Other Assets for more information on our unconsolidated affiliates. Year Ended December 31, 2021 2020 2019 Passenger ticket revenues: United States 76 % 67 % 65 % All other countries (1) 24 % 33 % 35 % (1) No other individual country's revenue exceeded 10% for the years ended December 31, 2021, 2020 and 2019. |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Carrying Amount of Goodwill | The carrying value of goodwill attributable to our Royal Caribbean International, Celebrity Cruises and Silversea Cruises reporting units and the changes in such balances during the years ended December 31, 2021 and 2020 were as follows (in thousands): Royal Caribbean International Celebrity Cruises Silversea Cruises (1) Total Balance at December 31, 2019 $ 299,226 $ 1,632 $ 1,084,786 $ 1,385,644 Impairment charge — — (576,208) (576,208) Transfer of goodwill attributable to the 2019 purchase of photo operations onboard our ships (2) (2,694) 2,694 — — Foreign currency translation adjustment 44 — — 44 Balance at December 31, 2020 296,576 4,326 508,578 809,480 Foreign currency translation adjustment (97) — — (97) Balance at December 31, 2021 $ 296,479 $ 4,326 $ 508,578 $ 809,383 __________________________________________________ (1) In 2018, we acquired a 66.7% equity stake in Silversea Cruises. Our controlling interest purchase price allocation was final during 2019. In 2020, we acquired the remaining 33.3% minority interest, making Silversea Cruises a wholly owned brand. Refer to Note 1. General for further information. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Schedule of Intangible Assets | The following is a summary of our intangible assets as of December 31, 2021 (in thousands, except weighted average amortization period), with Silversea Cruises' trade name representing approximately $318.7 million of the indefinite-lived intangible asset balance: As of December 31, 2021 Remaining Weighted Average Amortization Period (Years) Gross Carrying Value Accumulated Amortization Accumulated Impairment Losses Net Carrying Value Finite-life intangible assets: Customer relationships 11.6 $ 97,400 $ 22,186 $ — $ 75,214 Galapagos operating license 22.6 47,669 9,802 — 37,867 Other finite-life intangible assets 0 11,560 11,560 — — Total finite-life intangible assets 156,629 43,548 — 113,081 Indefinite-life intangible assets (1) 352,275 — 30,800 321,475 Total intangible assets, net $ 508,904 $ 43,548 $ 30,800 $ 434,556 (1) Primarily relates to the Silversea Cruises trade name. The following is a summary of our intangible assets as of December 31, 2020 (in thousands, except weighted average amortization period): As of December 31, 2020 Remaining Weighted Average Amortization Period (Years) Gross Carrying Value Accumulated Amortization Accumulated Impairment Losses Net Carrying Value Finite-life intangible assets: Customer relationships 12.8 $ 97,400 $ 14,069 $ — $ 83,331 Galapagos operating license 23.8 47,669 7,621 — 40,048 Other finite-life intangible assets 0 11,560 11,560 — — Total finite-life intangible assets 156,629 33,250 — 123,379 Indefinite-life intangible assets (1) 352,275 — 30,800 321,475 Total intangible assets, net $ 508,904 $ 33,250 $ 30,800 $ 444,854 (1) Primarily relates to the Silversea Cruises trade name. |
Schedule of Future Amortization Expense | The estimated future amortization for finite-life intangible assets for each of the next five years is as follows (in thousands): Year 2022 $ 8,179 2023 $ 8,179 2024 $ 8,179 2025 $ 8,179 2026 $ 8,179 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment | Property and equipment consists of the following (in thousands): As of December 31, 2021 2020 Ships $ 31,357,703 $ 29,872,655 Ship improvements 2,152,457 2,108,922 Ships under construction 1,180,486 1,078,243 Land, buildings and improvements, including leasehold improvements and port facilities 746,785 524,849 Computer hardware and software, transportation equipment and other 1,650,249 1,678,903 Total property and equipment 37,087,680 35,263,572 Less—accumulated depreciation and amortization (1) (11,179,731) (10,016,977) $ 25,907,949 $ 25,246,595 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Assets [Abstract] | |
Schedule of other non-operating income | The following tables set forth information regarding our investments accounted for under the equity method of accounting, including the entities discussed above, (in thousands): Year ended December 31, 2021 2020 2019 Share of equity (loss) income from investments $ (135,469) $ (213,286) $ 230,980 Dividends received (1) $ — $ 2,215 $ 150,177 |
Related party transactions | As of December 31, 2021 2020 Total notes receivable due from equity investments $ 130,587 $ 164,596 Less-current portion (1) 21,508 29,501 Long-term portion (2) $ 109,079 $ 135,095 ___________________________________________________________________ (1) Included within Trade and other receivables, net in our consolidated balance sheets. (2) Included within Other assets in our consolidated balance sheets. Year ended December 31, 2021 2020 2019 Revenues $ 24,568 $ 21,372 $ 47,242 Expenses $ 6,275 $ 4,986 $ 4,304 |
Summarized balance sheet information of affiliates accounted for under the equity method of accounting | Summarized financial information for our affiliates accounted for under the equity method of accounting was as follows (in thousands): As of December 31, 2021 2020 Current assets $ 736,263 $ 488,329 Non-current assets 5,241,302 5,456,061 Total assets $ 5,977,565 $ 5,944,390 Current liabilities $ 1,225,032 $ 1,106,700 Non- current liabilities 3,860,646 3,771,992 Total liabilities $ 5,085,678 $ 4,878,692 |
Summarized income statement sheet information of affiliates accounted for under the equity method of accounting | Year ended December 31, 2021 2020 2019 Total revenues $ 679,137 $ 619,795 $ 2,354,744 Total expenses (897,308) (939,481) (1,875,952) Net (loss) income $ (218,171) $ (319,686) $ 478,792 |
Summary of credit loss allowance | The following table summarizes our credit loss allowance related to receivables for the year ended December 31, 2021 (in thousands): Credit Loss Allowance Balance at January 1, 2021 $ 85,447 Loss provision for receivables 43,822 Write-offs $ (29,077) Balance at December 31, 2021 $ 100,192 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long Term Debt | Debt consists of the following (in thousands): As of December 31, Interest Rate (1) Maturities Through 2021 2020 Fixed rate debt: Unsecured senior notes 3.70% - 9.13% 2022 - 2028 $ 5,604,498 $ 2,464,994 Secured senior notes 10.88% - 11.50% 2023 - 2025 2,354,037 3,895,166 Unsecured term loans 2.53% - 5.41% 2028 - 2032 2,860,567 3,210,161 Convertible notes 2.88% - 4.25% 2023 1,558,780 1,454,488 Total fixed rate debt 12,377,882 11,024,809 Variable rate debt: Unsecured revolving credit facilities (2) 1.51% -1.91% 2022 - 2024 2,899,342 3,289,000 Unsecured UK Commercial paper 2021 — 409,319 USD unsecured term loan 0.71% - 3.17% 2022 - 2033 5,018,740 4,002,249 Euro unsecured term loan 1.74% -2.25% 2022 - 2028 685,633 705,064 Total variable rate debt 8,603,715 8,405,632 Finance lease liabilities 472,275 213,365 Total debt (3) 21,453,872 19,643,806 Less: unamortized debt issuance costs (363,532) (314,763) Total debt, net of unamortized debt issuance costs 21,090,340 19,329,043 Less—current portion including commercial paper (2,243,131) (1,371,087) Long-term portion $ 18,847,209 $ 17,957,956 (1) Interest rates based on outstanding loan balance as of December 31, 2021 and, for variable rate debt, includes either LIBOR or EURIBOR plus the applicable margin. (2) Includes $1.9 billion facility and $1.3 billion facility, the vast majority of which is due in 2024. Our $1.9 billion facility accrues interest at LIBOR plus a maximum interest rate margin of 1.30%, which interest rate was 1.51%, as of December 31, 2021 and is subject to a facility fee of 0.20%. Our $1.3 billion facility accrues interest at LIBOR plus a maximum interest rate margin of 1.70%, which interest was 1.91% as of December 31, 2021 and is subject to a facility fee of a maximum of 0.30%. (3) At December 31, 2021 and 2020, the weighted average interest rate for total debt was 5.47% and 6.02%, respectively. |
Schedule of Convertible Debt | The net carrying value of the liability component of the convertible notes was as follows: (in thousands) As of December 31, 2021 As of December 31,2020 Principal $ 1,725,000 1,725,000 Less: Unamortized debt discount and transaction costs 188,764 312,117 $ 1,536,236 $ 1,412,883 The interest expense recognized related to the convertible notes was as follows: (in thousands) As of December 31, 2021 As of December 31, 2020 Contractual interest expense $ 65,406 30,832 Amortization of debt discount and transaction costs 118,566 52,518 $ 183,972 $ 83,350 |
Schedule of Annual Maturities on Long-Term Debt Including Capital Leases | Following is a schedule of annual maturities on our total debt net of debt issuance costs and including finance leases, as of December 31, 2021 for each of the next five years (in thousands): Year 2022 $ 2,243,131 2023 5,376,305 2024 4,026,746 2025 2,293,638 2026 2,533,027 Thereafter 4,617,493 $ 21,090,340 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Schedule of Supplemental Balance Sheet Information | Supplemental balance sheet information for leases was as follows (in thousands): As of December 31, 2021 As of December 31, 2020 Lease assets: Finance lease right-of-use assets, net: Property and equipment, gross $ 737,444 $ 364,910 Accumulated depreciation (94,729) (71,288) Property and equipment, net 642,715 293,622 Operating lease right-of-use assets 542,128 599,985 Total lease assets $ 1,184,843 $ 893,607 Lease liabilities: Finance lease liabilities: Current portion of debt $ 51,470 $ 51,856 Long-term debt 420,805 161,509 Total finance lease liabilities 472,275 213,365 Operating lease liabilities: Current portion of operating lease liabilities 68,922 102,677 Long-term operating lease liabilities 534,726 563,876 Total operating lease liabilities 603,648 666,553 Total lease liabilities $ 1,075,923 $ 879,918 |
Schedule of Lease Expense and Cash Flow Information | The components of lease expense were as follows (in thousands): Consolidated Statement of Comprehensive Income (Loss) Classification Year ended December 31, 2021 Year ended December 31, 2020 Year ended December 31, 2019 Lease costs: Operating lease costs Commission, transportation and other $ 18,860 $ 38,349 $ 76,226 Operating lease costs Other operating expenses 23,261 30,955 27,868 Operating lease costs Marketing, selling and administrative expenses 18,027 21,971 18,837 Finance lease costs: Amortization of right-of-use-assets Depreciation and amortization expenses 16,814 6,901 22,044 Interest on lease liabilities Interest expense, net of interest capitalized 2,593 4,429 8,355 Total lease costs $ 79,555 $ 102,605 $ 153,330 Weighted average of the remaining lease terms and weighted average discount rates are as follows: As of December 31, 2021 As of December 31, 2020 Weighted average of the remaining lease term Operating leases 18.18 7.8 Finance leases 23.96 41.2 Weighted average discount rate Operating leases 6.52 % 4.59 % Finance leases 5.54 % 6.89 % Supplemental cash flow information related to leases is as follows (in thousands): Year ended December 31, 2021 Year ended December 31, 2020 Year ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 42,759 $ 89,179 $ 125,307 Operating cash flows from finance leases $ 2,593 $ 4,429 $ 8,355 Financing cash flows from finance leases $ 23,522 $ 19,778 $ 32,090 |
Schedule of Maturities, Financing Leases | As of December 31, 2021, maturities related to lease liabilities were as follows (in thousands): Years Operating Leases Finance Leases 2022 $ 101,445 $ 72,076 2023 104,585 52,340 2024 85,463 43,497 2025 80,182 43,089 2026 74,626 37,900 Thereafter 826,226 632,709 Total lease payments 1,272,527 881,611 Less: Interest (668,879) (409,336) Present value of lease liabilities $ 603,648 $ 472,275 |
Schedule of Maturities, Operating Leases | As of December 31, 2021, maturities related to lease liabilities were as follows (in thousands): Years Operating Leases Finance Leases 2022 $ 101,445 $ 72,076 2023 104,585 52,340 2024 85,463 43,497 2025 80,182 43,089 2026 74,626 37,900 Thereafter 826,226 632,709 Total lease payments 1,272,527 881,611 Less: Interest (668,879) (409,336) Present value of lease liabilities $ 603,648 $ 472,275 |
Stock-Based Employee Compensa_2
Stock-Based Employee Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total Compensation Expense Recognized for Employee Stock-based Compensation | Total compensation expense recognized for employee stock-based compensation for the years ended December 31, 2021, 2020 and 2019 was as follows (in thousands): Employee Stock-Based Compensation Classification of expense 2021 2020 2019 Marketing, selling and administrative expenses $ 63,638 $ 39,780 $ 75,930 Total compensation expense $ 63,638 $ 39,780 $ 75,930 |
Summary Stock Option Activity | Stock option activity and information about stock options outstanding are summarized in the following table: Stock Option Activity Number of Weighted- Weighted- Aggregate Intrinsic Value (1) (years) (in thousands) Outstanding at January 1, 2021 49,647 $ 46.18 0.11 $ 1,355 Granted — — — — Exercised (49,647) $ 46.18 — — Canceled — $ — — — Outstanding at December 31, 2021 — $ — — $ — Vested at December 31, 2021 — $ — — $ — Options Exercisable at December 31, 2021 — $ — — $ — ___________________________________________________________________ (1) The intrinsic value represents the amount by which the fair value of stock exceeds the option exercise price. |
Summary of Restricted Stock Activity | Restricted stock activity is summarized in the following table: Restricted Stock Units Activity Number of Weighted- Non-vested share units as of January 1, 2021 972,592 $ 91.26 Granted 568,107 $ 85.08 Vested (448,469) $ 90.90 Canceled (97,192) $ 89.73 Non-vested share units as of December 31, 2021 995,038 $ 88.19 |
Summary of Performance share activity | Performance share units activity is summarized in the following table: Performance Share Units Activity Number of Weighted- Non-vested share units as of January 1, 2021 267,722 $ 109.34 Granted 296,798 $ 84.83 Vested (66,377) $ 123.49 Canceled (31,791) $ 98.78 Non-vested share units as of December 31, 2021 466,352 $ 92.45 |
Senior Officers | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Restricted Stock Activity | Restricted stock awards activity is summarized in the following table: Restricted Stock Awards Activity Number of Weighted- Non-vested share units as of January 1, 2021 575,432 $ 116.83 Granted 350,996 $ 84.83 Vested (60,011) $ 129.23 Canceled (69,205) $ 123.33 Non-vested share units as of December 31, 2021 797,212 $ 101.25 |
(Loss) Earnings Per Share (Tabl
(Loss) Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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): Year Ended December 31, 2021 2020 2019 Net (Loss) Income attributable to Royal Caribbean Cruises Ltd. for basic and diluted (loss) earnings per share $ (5,260,499) $ (5,797,462) $ 1,878,887 Weighted-average common shares outstanding 251,812 214,335 209,405 Dilutive effect of stock-based awards — — 525 Diluted weighted-average shares outstanding 251,812 214,335 209,930 Basic (loss) earnings per share $ (20.89) $ (27.05) $ 8.97 Diluted (loss) earnings per share $ (20.89) $ (27.05) $ 8.95 |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents the changes in accumulated other comprehensive loss by component for the years ended December 31, 2021, 2020 and 2019 (in thousands): Changes related to cash flow derivative hedges Changes in defined Foreign currency translation adjustments Accumulated other comprehensive (loss) income Accumulated comprehensive loss at January 1, 2019 $ (537,216) $ (26,023) $ (64,495) $ (627,734) Other comprehensive income (loss) before reclassifications (146,108) (20,314) 869 (165,553) Amounts reclassified from accumulated other comprehensive loss (5,205) 779 — (4,426) Net current-period other comprehensive income (loss) (151,313) (19,535) 869 (169,979) Accumulated comprehensive loss at January 1, 2020 (688,529) (45,558) (63,626) (797,713) Other comprehensive income (loss) before reclassifications (41,109) (22,051) (28,698) (91,858) Amounts reclassified from accumulated other comprehensive loss 79,119 2,067 69,044 150,230 Net current-period other comprehensive (loss) income 38,010 (19,984) 40,346 58,372 Accumulated comprehensive loss at January 1, 2021 (650,519) (65,542) (23,280) (739,341) Other comprehensive (loss) income before reclassifications (16,667) 4,790 15,703 3,826 Amounts reclassified from accumulated other comprehensive loss 20,713 3,917 — 24,630 Net current-period other comprehensive (loss) income 4,046 8,707 15,703 28,456 Accumulated comprehensive loss at December 31, 2021 $ (646,473) $ (56,835) $ (7,577) $ (710,885) |
Reclassification out of Accumulated Other Comprehensive Income | The following table presents reclassifications out of accumulated other comprehensive loss for the years ended December 31, 2021, 2020 and 2019 (in thousands): Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into (Loss) Income Details about Accumulated Other Comprehensive Loss Components Year Ended December 31, 2021 Year Ended December 31, 2020 Year Ended December 31, 2019 Affected Line Item in Statements of Comprehensive Income (Loss) Gain (loss) on cash flow derivative hedges: Interest rate swaps (43,185) (25,267) (4,289) Interest expense, net of interest capitalized Foreign currency forward contracts (15,359) (14,679) (14,063) Depreciation and amortization expenses Foreign currency forward contracts (2,797) (7,315) (5,080) Other income (expense) Fuel swaps (409) 3,549 (1,292) Other income (expense) Fuel swaps 41,037 (35,407) 29,929 Fuel (20,713) (79,119) 5,205 Amortization of defined benefit plans: Actuarial loss (3,917) (2,067) (779) Payroll and related (3,917) (2,067) (779) Release of foreign cumulative translation due to sale or liquidation of businesses: Foreign cumulative translation — (69,044) — Other operating Total reclassifications for the period $ (24,630) $ (150,230) $ 4,426 |
Fair Value Measurements and D_2
Fair Value Measurements and Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Derivative instruments disclosure | |
Estimated Fair Value of Financial Instruments that are not Measured at Fair Value on Recurring Basis | The estimated fair value of our financial instruments that are not measured at fair value, categorized based upon the fair value hierarchy, are as follows (in thousands): Fair Value Measurements at December 31, 2021 Fair Value Measurements at December 31, 2020 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) $ 2,701,770 $ 2,701,770 $ 2,701,770 — — $ 3,684,474 $ 3,684,474 $ 3,684,474 — — Total Assets $ 2,701,770 $ 2,701,770 $ 2,701,770 $ — $ — $ 3,684,474 $ 3,684,474 $ 3,684,474 $ — $ — Liabilities: Long-term debt (including current portion of long-term debt)(5) $ 20,618,065 $ 22,376,480 — $ 22,376,480 — $ 18,706,359 $ 20,981,040 — $ 20,981,040 — Total Liabilities $ 20,618,065 $ 22,376,480 $ — $ 22,376,480 $ — $ 18,706,359 $ 20,981,040 $ — $ 20,981,040 $ — ___________________________________________________________________ (1) Inputs based on quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access. Valuation of these items does not entail a significant amount of judgment. (2) Inputs other than quoted prices included within Level 1 that are observable for the liability, either directly or indirectly. For unsecured revolving credit facilities and unsecured term loans, fair value is determined utilizing the income valuation approach. This valuation model takes into account the contract terms of our debt such as the debt maturity and the interest rate on the debt. The valuation model also takes into account the creditworthiness of the Company. (3) Inputs that are unobservable. The Company did not use any Level 3 inputs as of December 31, 2021 and 2020. (4) Consists of cash and marketable securities with original maturities of less than 90 days. (5) Consists of unsecured revolving credit facilities, senior notes, term loans and convertible notes. These amounts do not include our finance lease obligations or commercial paper. The following tables presents information about the Company’s nonfinancial instruments recorded at fair value on a nonrecurring basis (in thousands): Fair Value Measurements at December 31, 2021 Description Total Carrying Amount Total Fair Value Level 3 Total Impairment for the year ended December 31, 2021 (1) Long-lived assets — — — 55,213 Total — — — 55,213 (1) Amount is primarily composed of construction in progress assets that were impaired during the year ended 2021 due to a reduction in scope or the decision to not complete the projects. The impairments were calculated based on orderly liquidation values. The fair value of these assets was estimated as of the date the assets were last impaired. Fair Value Measurement at December 31, 2020 Description Total Carrying Amount Total Fair Value Level 3 Total Impairment for the year ended December 31, 2020 Silversea Goodwill(1) 508,578 508,578 508,578 576,208 Indefinite-life intangible asset(2) 318,700 318,700 318,700 30,800 Long-lived assets(3) 577,193 577,193 577,193 727,063 Right-of-use assets(4) 67,265 67,265 67,265 65,909 Equity-method investments(5) — — — 39,735 Total 1,471,736 1,471,736 1,471,736 1,439,715 ___________________________________________________________________________________________________ (1) We estimated the fair value of the Silversea Cruises reporting unit using a probability-weighted discounted cash flow model in combination with a market-based valuation approach. The principal assumptions used in the discounted cash flow model were (i) forecasted net revenues, primarily the timing of returning to normalized operations, occupancy rates from existing and expected ship deliveries, and terminal growth rate; and (ii) weighted average cost of capital (i.e., discount rate). The probability-weighted discounted cash flow model used our most current projected operating results for the upcoming fiscal year as a base. To that base we added future years’ cash flows through 2030 assuming multiple revenue and expense scenarios that reflect the impact of different global economic environments for this period on the Silversea Cruises' reporting unit. We assigned a probability to each revenue and expense scenario. We discounted the projected cash flows using rates specific to the Silversea Cruises' reporting unit based on its weighted-average cost of capital, which was determined to be 12.75%. The fair value of Silversea Cruises’ goodwill was estimated as of March 31, 2020, the date the asset was last impaired. (2) Amount represents the Silversea Cruises trade name which makes up the majority of our indefinite-life intangible assets, totaling $321.5 million. We estimated the fair value of the Silversea Cruises trade name using a discounted cash flow model and the relief-from-roy alty method and used a discount ra te of 13.25%. S ignificant inputs in performing the fair value assessment for the trade name were (i) forecasted net revenues, primarily the timing of returning to normalized operations, occupancy rates from existing and expected ship deliveries, including options, and terminal growth rate; (ii) the royalty rate of '3.0%; and (iii) weighted average cost of capital (i.e., discount rate). The fair value of the Silversea Cruises trade name was estimated as of March 31, 2020, the date the asset was last impaired. (3) Impairments primarily relate to certain vessels during 2020. In addition, certain construction in progress projects generated impairments during 2020. For the vessels impaired during the quarter ended March 31, 2020, we estimated the fair value of two of our vessels using a blended indication from the income and cost approaches and the fair value of the remaining vessels was estimated primarily based on their orderly liquidation values. For the vessels impaired during the quarter ended June 30, 2020, we estimated the fair value of the vessels using a modified market approach based on the carrying values and orderly liquidation values of the vessels. For the vessels impaired during the quarter ended December 31, 2020, we estimated the fair value of the three Azamara vessels using a market approach. A significant input in performing the fair value assessments for these vessels was management's expected use of the vessels, which takes into consideration forecasted operating results. During the quarter ended September 30, 2020 and quarter ended December 31, 2020, construction in progress assets were impaired due to a reduction in scope or the decision to not complete the projects. The impairment was calculated based on orderly liquidation values. The fair value of these assets was estimated as of the date the asset was last impaired. (4) Impairments to our right-of-use assets relate to certain of our berthing arrangements and a ship operating lease. We estimated the fair value of the berthing arrangements using estimated projected discounted cash flows and the fair value of the ship operating lease was estimated using a market approach. The fair value of the berthing arrangements was estimated as of March 31, 2020, the date these assets were last impaired. A significant input in performing the fair value assessments for these assets was our expected passenger headcount. The fair value of the ship operating lease was estimated as of December 31, 2020, the date this asset was last impaired, and significant inputs in performing the fair value assessment using the market approach for this asset were the expected rate of return and remaining lease payments. (5) We estimated the fair value of our other than temporarily impaired equity-method investments using a discounted cash flow model. A significant input in performing the fair value assessments for these assets was forecaste d operating results for these investments. The fair value of these equity-method investments was estimated as of March 31, 2020, the date these assets were last impaired. For further information on our equity method investments, refer to Note 7 |
Company's Financial Instruments Recorded at Fair Value on Recurring Basis | The following table presents information about the Company's financial instruments recorded at fair value on a recurring basis (in thousands): Fair Value Measurements at December 31, 2021 Fair Value Measurements at December 31, 2020 Description Total Fair Value Level 1 (1) Level 2 (2) Level 3 (3) Total Fair Value Level 1 (1) Level 2 (2) Level 3 (3) Assets: Derivative financial instruments (4) $ 69,808 $ — $ 69,808 $ — $ 108,539 $ — $ 108,539 $ — Total Assets $ 69,808 $ — $ 69,808 $ — $ 108,539 $ — $ 108,539 $ — Liabilities: Derivative financial instruments (5) $ 200,541 $ — $ 200,541 $ — $ 259,705 $ — $ 259,705 $ — Total Liabilities $ 200,541 $ — $ 200,541 $ — $ 259,705 $ — $ 259,705 $ — ___________________________________________________________________ (1) Inputs based on quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access. Valuation of these items does not entail a significant amount of judgment. (2) Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. For foreign currency forward contracts, interest rate swaps and fuel swaps, fair value is derived using valuation models that utilize the income valuation approach. These valuation models take into account the contract terms, such as maturity as well as other inputs, such as foreign exchange rates and curves, fuel types, fuel curves and interest rate yield curves. Derivative instrument fair values take into account the creditworthiness of the counterparty and the Company. (3) Inputs that are unobservable. No Level 3 inputs were used in fair value measurements of Other financial instruments as of December 31, 2021 and December 31, 2020 (4) Consists of foreign currency forward contracts, interest rate swaps and fuel swaps. Refer to the "Fair Value of Derivative Instruments" table for breakdown by instrument type. (5) Consists of foreign currency forward contracts, interest rate swaps and fuel swaps. Refer to the "Fair Value of Derivative Instruments" table for breakdown by instrument type. |
Offsetting Assets | The following table presents information about the Company’s offsetting of financial assets under master netting agreements with derivative counterparties (in thousands): Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements As of December 31, 2021 As of December 31, 2020 Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheet Gross Amount of Eligible Offsetting Cash Collateral Net Amount of Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheet Gross Amount of Eligible Offsetting Cash Collateral Net Amount of Derivatives subject to master netting agreements $ 69,808 $ (67,995) $ — $ 1,813 $ 108,539 $ (80,743) $ — $ 27,796 Total $ 69,808 $ (67,995) $ — $ 1,813 $ 108,539 $ (80,743) $ — $ 27,796 |
Offsetting Liabilities | The following table presents information about the Company’s offsetting of financial liabilities under master netting agreements with derivative counterparties (in thousands): Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements As of December 31, 2021 As of December 31, 2020 Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheet Gross Amount of Eligible Offsetting Cash Collateral Net Amount of Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheet Gross Amount of Eligible Offsetting Cash Collateral Net Amount of Derivatives subject to master netting agreements $ (200,541) $ 67,995 $ 44,411 $ (88,135) $ (259,705) $ 80,743 $ 57,273 $ (121,689) Total $ (200,541) $ 67,995 $ 44,411 $ (88,135) $ (259,705) $ 80,743 $ 57,273 $ (121,689) |
Fuel Swap Agreements | As of December 31, 2021 and December 31, 2020, we had the following outstanding fuel swap agreements Fuel Swap Agreements As of December 31, 2021 As of December 31, 2020 (metric tons) Designated as hedges: 2022 821,850 389,650 2023 249,050 82,400 Fuel Swap Agreements As of December 31, 2021 As of December 31, 2020 (% hedged) Designated hedges as a % of projected fuel purchases: 2022 54 % 23 % 2023 15 % 5 % Fuel Swap Agreements As of December 31, 2021 As of December 31, 2020 (metric tons) Not designated as hedges: 2022 (1) 231,900 14,650 (1) As of December 31, 2021, 115,950 metric tons relate to fuel swap agreements with discontinued hedge accounting, in which we effectively pay fixed prices for our fuel purchases and receive floating prices from the counterparty. The remaining 115,950 tons relate to fuel swap agreements that were not designated as hedges since inception, in which we effectively pay floating prices for our fuel purchases and receive fixed prices from the counterparty. |
Fair Value And Line item Caption of Derivative Instruments | The fair value and line item caption of derivative instruments recorded within our consolidated balance sheets were as follows (in thousands): Fair Value of Derivative Instruments Asset Derivatives Liability Derivatives Balance Sheet As of December 31, 2021 As of December 31, 2020 Balance Sheet As of December 31, 2021 As of December 31, 2020 Fair Value Fair Value Fair Value Fair Value Derivatives designated as hedging instruments under ASC 815-20 (1) Interest rate swaps Other assets $ — $ 17,271 Other long-term liabilities $ 62,080 $ 144,653 Interest rate swaps Derivative financial instruments 6,478 261 Derivative Financial Instruments — — Foreign currency forward contracts Derivative financial instruments 7,357 63,894 Derivative financial instruments 116,027 13,294 Foreign currency forward contracts Other assets 2,070 20,836 Other long-term liabilities 8,813 7,306 Fuel swaps Derivative financial instruments 31,919 5,093 Derivative financial instruments 7,944 25,203 Fuel swaps Other assets 13,452 350 Other long-term liabilities 1,202 50,117 Total derivatives designated as hedging instruments under ASC 815-20 61,276 107,705 196,066 240,573 Derivatives not designated as hedging instruments under ASC 815-20 Foreign currency forward contracts Derivative financial Instruments — — Derivative financial instruments — 160 Foreign currency forward contracts Other assets — — Other long-term liabilities — — Fuel swaps Derivative financial instruments 8,430 834 Derivative financial instruments 3,264 18,028 Fuel swaps Other assets 102 — Other long-term liabilities 1,211 944 Total derivatives not designated as hedging instruments under ASC 815-20 8,532 834 4,475 19,132 Total derivatives $ 69,808 $ 108,539 $ 200,541 $ 259,705 ___________________________________________________________________ (1) Accounting Standard Codification 815-20 " Derivatives and Hedging." The fair value and line item caption of derivative instruments recorded within our consolidated balance sheets for the cumulative basis adjustment for fair value hedges were as follows (in thousands): Line Item in the Statement of Financial Position Where the Hedged Item is Included Carrying Amount of the Hedged Liabilities Cumulative amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liabilities As of December 31, 2021 As of December 31, 2020 As of December 31, 2021 As of December 31, 2020 Current portion of long-term debt and Long-term debt $ 655,502 $ 700,331 $ 6,428 $ 17,512 $ 655,502 $ 700,331 $ 6,428 $ 17,512 |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The location and amount of gain or (loss) recognized in income on fair value and cash flow hedging relationships were as follows (in thousands) Year Ended December 31, 2021 Year Ended December 31, 2020 Fuel Expense Depreciation and Amortization Expenses Interest Income (Expense) Other Income (Expense) Fuel Expense Depreciation and Amortization Expenses Interest Income (Expense) Other Income (Expense) Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded $385,322 $1,292,878 $(1,274,980) $20,284 $371,015 $1,279,254 $(823,202) $(137,085) The effects of fair value and cash flow hedging: Gain or (loss) on fair value hedging relationships in Subtopic 815-20 Interest contracts Hedged items n/a n/a $11,083 — n/a n/a $(18,813) $— Derivatives designated as hedging instruments n/a n/a $(1,349) — n/a n/a $23,819 $— Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 Interest contracts Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income n/a n/a $(43,185) n/a n/a n/a $(25,267) n/a Commodity contracts Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income $41,037 n/a n/a $(409) $(35,407) n/a n/a $3,549 Foreign exchange contracts Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income n/a $(15,359) n/a $(2,797) n/a $(14,679) n/a $(7,315) Year Ended December 31, 2019 Fuel Expense Depreciation and Amortization Expenses Interest Income (Expense) Other Income (Expense) Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded $697,962 $1,245,942 $(381,568) $(24,513) The effects of fair value and cash flow hedging: Gain or (loss) on fair value hedging relationships in Subtopic 815-20 Interest contracts Hedged items n/a n/a $(23,464) $— Derivatives designated as hedging instruments n/a n/a $16,607 $— Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 Interest contracts Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income n/a n/a $(4,289) n/a Commodity contracts Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income $29,929 n/a n/a $(1,292) Foreign exchange contracts Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income n/a $(14,063) n/a $(5,080) |
Fair Value and Line Item Caption of Non-derivative Instruments | The carrying value and line item caption of non-derivative instruments designated as hedging instruments recorded within our consolidated balance sheets were as follows (in thousands): Carrying Value Non-derivative instrument designated as Balance Sheet Location As of December 31, 2021 As of December 31, 2020 Foreign currency debt Current portion of long-term debt $ 75,518 $ 43,696 Foreign currency debt Long-term debt 34,795 219,335 $ 110,313 $ 263,031 |
Effect of Non-derivative Instruments Qualifying and Designated as Hedging Instruments in Net Investment Hedges on Consolidated Financial Statements | The effect of non-derivative instruments qualifying and designated as net investment hedging instruments on the consolidated financial statements was as follows (in thousands): Amount of Gain (Loss) Non-derivative instruments under ASC 815-20 Year Ended December 31, 2021 Year Ended December 31, 2020 Year Ended December 31, 2019 Foreign Currency Debt $ 7,837 $ (28,062) $ 6,111 $ 7,837 $ (28,062) $ 6,111 |
Not Designated as Hedging Instrument | |
Derivative instruments disclosure | |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The effect of derivatives not designated as hedging instruments on the consolidated financial statements was as follows (in thousands): Amount of Gain (Loss) Recognized Derivatives Not Designated as Hedging Location of Gain (Loss) Year Ended December 31, 2021 Year Ended December 31, 2020 Year Ended December 31, 2019 Foreign currency forward contracts Other income (expense) $ (30,903) $ (18,961) $ 1,356 Fuel swaps Fuel — — (37) Fuel swaps Other income (expense) 33,720 (102,740) 112 $ 2,817 $ (121,701) $ 1,431 |
Fair value hedging | |
Derivative instruments disclosure | |
Schedule of Interest Rate Derivatives | At December 31, 2021, we maintained interest rate swap agreements on the following fixed-rate debt instruments: Debt Instrument Swap Notional as of December 31, 2021 (In thousands) Maturity Debt Fixed Rate Swap Floating Rate: LIBOR plus All-in Swap Floating Rate as of December 31, 2021 Unsecured senior notes 650,000 November 2022 5.25% 3.63% 3.79% $ 650,000 |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The effect of derivative instruments qualifying and designated as hedging instruments and the related hedged items in fair value hedges on the consolidated statements of comprehensive income (loss) was as follows (in thousands): Location of Gain (Loss) Recognized in Income on Derivative and Hedged Item Amount of Gain (Loss) Recognized in Income on Derivative Amount of Gain (Loss) Recognized in Income on Hedged Item Derivatives and related Hedged Items under ASC 815-20 Fair Value Hedging Relationships Year Ended December 31, 2021 Year Ended December 31, 2020 Year Ended December 31, 2019 Year Ended December 31, 2021 Year Ended December 31, 2020 Year Ended December 31, 2019 Interest rate swaps Interest expense (income), net of interest capitalized $ (1,349) $ 23,819 $ 16,607 $ 11,083 $ (18,813) $ (23,464) $ (1,349) $ 23,819 $ 16,607 $ 11,083 $ (18,813) $ (23,464) |
Cash flow hedge | |
Derivative instruments disclosure | |
Schedule of Interest Rate Derivatives | At December 31, 2021, we maintained interest rate swap agreements on the following floating-rate debt instruments: Debt Instrument Swap Notional as of December 31, 2021 (In thousands) Maturity Debt Floating Rate All-in Swap Fixed Rate Celebrity Reflection term loan $ 163,625 October 2024 LIBOR plus 0.40% 2.85% Quantum of the Seas term loan 306,250 October 2026 LIBOR plus 1.30% 3.74% Anthem of the Seas term loan 332,292 April 2027 LIBOR plus 1.30% 3.86% Ovation of the Seas term loan 449,583 April 2028 LIBOR plus 1.00% 3.16% Harmony of the Seas term loan (1) 427,142 May 2028 EURIBOR plus 1.15% 2.26% Odyssey of the Seas term loan (2) 421,667 October 2032 LIBOR plus 0.96% 3.21% Odyssey of the Seas term loan (2) 191,667 October 2032 LIBOR plus 0.96% 2.84% $ 2,292,226 ___________________________________________________________________ (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 December 31, 2021. (2) Interest rate swap agreements hedging the term loan of Odyssey of the Seas include LIBOR zero-floors matching the debt LIBOR zero-floor. The effective dates of the $421.7 million and $191.7 million interest rate swap agreements are October 2020 and October 2022, respectively. The unsecured term loan for the financing of Odyssey of the Seas was drawn on March 2021. |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The effect of derivative instruments qualifying and designated as cash flow hedging instruments on the consolidated financial statements was as follows (in thousands): Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivative Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income Derivatives under ASC 815-20 Cash Flow Hedging Relationships Year Ended December 31, 2021 Year Ended December 31, 2020 Year Ended December 31, 2019 Year Ended December 31, 2021 Year Ended December 31, 2020 Year Ended December 31, 2019 Interest rate swaps $ 45,572 $ (112,960) $ (72,732) Interest expense $ (43,185) $ (25,267) $ (4,289) Foreign currency forward contracts (203,129) 130,426 (148,881) Depreciation and amortization expenses (15,359) (14,679) (14,063) Foreign currency forward contracts — — — Other income (expense) (2,797) (7,315) (5,080) Fuel swaps — — — Other income (expense) (409) 3,549 (1,292) Fuel swaps 140,890 (58,575) 75,505 Fuel 41,037 (35,407) 29,929 $ (16,667) $ (41,109) $ (146,108) $ (20,713) $ (79,119) $ 5,205 The table below represents amounts excluded from the assessment of effectiveness for our net investment hedging instruments for which the difference between changes in fair value and periodic amortization is recorded in accumulated other comprehensive income (loss) (in thousands): Gain (Loss) Recognized in Income (Net Investment Excluded Components) Year Ended December 31, 2021 Net inception fair value at January 1, 2021 $ (1,916) Amount of gain recognized in income on derivatives for the year ended December 31, 2021 5,810 Amount of loss remaining to be amortized in accumulated other comprehensive loss as of December 31, 2021 (4,448) Fair value at December 31, 2021 $ (554) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of capital commitments | As of December 31, 2021, the dates that ships on order by our Global and Partner Brands are expected to be delivered, subject to change in the event of construction delays, and their approximate berths are as follows: Ship Shipyard Expected to be delivered Approximate Royal Caribbean International — Oasis-class: Wonder of the Seas Chantiers de l’Atlantique 1st Quarter 2022 5,700 Unnamed Chantiers de l’Atlantique 2nd Quarter 2024 5,700 Icon-class: Icon of the Seas Meyer Turku Oy 3rd Quarter 2023 5,600 Unnamed Meyer Turku Oy 2nd Quarter 2025 5,600 Unnamed Meyer Turku Oy 2nd Quarter 2026 5,600 Celebrity Cruises — Edge-class: Celebrity Beyond Chantiers de l’Atlantique 2nd Quarter 2022 3,250 Celebrity Ascent Chantiers de l’Atlantique 4th Quarter 2023 3,250 Silversea Cruises — Evolution-class: Silver Nova Meyer Werft 2nd Quarter 2023 730 Unnamed Meyer Werft 2nd Quarter 2024 730 TUI Cruises (50% joint venture) — Mein Schiff 7 Meyer Turku Oy 2nd Quarter 2024 2,900 Unnamed Fincantieri 4th Quarter 2024 4,100 Unnamed Fincantieri 2nd Quarter 2026 4,100 Total Berths 47,260 |
Schedule of future commitments to pay for usage of port facilities, marine consumables, services and maintenance contracts | At December 31, 2021, we have future commitments to pay for our usage of certain port facilities, marine consumables, services and maintenance contracts as follows (in thousands): Year 2022 $ 154,552 2023 86,532 2024 75,868 2025 33,981 2026 29,518 Thereafter 154,033 $ 534,484 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Charges | The following table summarizes our restructuring costs during the twelve months ended December 31, 2021 as it relates to the April 2020 reduction in our workforce (in thousands): Beginning Balance January 1, 2021 Accruals Payments Ending Balance December 31, 2021 Cumulative Charges Incurred Termination benefits $ 4,257 $ 682 $ 4,626 $ 313 $ 28,635 Total $ 4,257 $ 682 $ 4,626 $ 313 $ 28,635 |
General (Details)
General (Details) $ / shares in Units, destination in Thousands, passenger in Millions | Jul. 09, 2020$ / sharesshares | Jun. 30, 2023USD ($) | Feb. 28, 2022USD ($) | Dec. 31, 2021USD ($)destinationshipcontinentpassengerbrand$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($) | Mar. 31, 2022 | Jan. 31, 2022USD ($) | Mar. 31, 2021USD ($)$ / shares | Mar. 19, 2021USD ($)ship | Oct. 31, 2020$ / shares | Jun. 30, 2020USD ($) | May 31, 2020USD ($) | Dec. 31, 2018 | Jul. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||
Number of cruise brands | brand | 3 | |||||||||||||||
Number of ships in operation | ship | 61 | |||||||||||||||
Number of destinations | destination | 1 | |||||||||||||||
Number of continents | continent | 7 | |||||||||||||||
Number of ships that have resumed or announced intention to resume sailing | ship | 50 | |||||||||||||||
Number of ships that have resumed or announced intention to resume sailing, percentage | 85.00% | |||||||||||||||
Number of passengers that have sailed since resuming operations | passenger | 1.3 | |||||||||||||||
Liquidity | $ 3,500,000,000 | |||||||||||||||
Cash and cash equivalents | $ 2,701,770,000 | $ 3,684,474,000 | ||||||||||||||
Common stock, shares issued (in shares) | shares | 282,703,246 | 265,198,371 | ||||||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||||||
Other income (expense) | [1] | $ 20,284,000 | $ (137,085,000) | $ (24,513,000) | ||||||||||||
Elimination Of Silversea Reporting Lag | ||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||
Other income (expense) | (62,600,000) | |||||||||||||||
Convertible notes | ||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||
Principal | 1,725,000,000 | $ 1,725,000,000 | ||||||||||||||
Revolving Credit Facility | ||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||
Maximum borrowing capacity | 100,000,000 | |||||||||||||||
Revolving Credit Facility | Subsequent event | ||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||
Maximum borrowing capacity | $ 1,100,000,000 | |||||||||||||||
Scenario, Forecast | ||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||
Number of ships that have resumed or announced intention to resume sailing, percentage | 95.00% | |||||||||||||||
Long-term debt to be refinanced | $ 3,200,000,000 | |||||||||||||||
Term Loan Facility, $700 Million | Credit agreement | ||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||
Maximum borrowing capacity | 700,000,000 | $ 700,000,000 | ||||||||||||||
Senior Notes Due 2027 | Unsecured senior notes | Subsequent event | ||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||
Interest rate | 5.375% | |||||||||||||||
Principal | $ 1,000,000,000 | |||||||||||||||
Export Credit Facilities | ||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||
Long-term debt | $ 7,300,000,000 | $ 6,300,000,000 | ||||||||||||||
Senior Secured Notes Due 2023 | Secured senior notes | ||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||
Interest rate | 10.875% | 10.875% | ||||||||||||||
Principal | $ 1,000,000,000 | |||||||||||||||
Senior Guaranteed Notes | Unsecured senior notes | ||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||
Interest rate | 9.125% | 9.125% | ||||||||||||||
Principal | $ 1,000,000,000 | |||||||||||||||
Convertible Notes Due 2023 | Convertible notes | ||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||
Interest rate | 4.25% | 4.25% | ||||||||||||||
Principal | $ 1,150,000,000 | |||||||||||||||
Senior Unsecured Note, Backstop Committed Financing | Subsequent event | ||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||
Debt instrument, term | 5 years | |||||||||||||||
Principal | $ 3,150,000,000 | |||||||||||||||
Azamara | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||
Number of ships disposed of | ship | 3 | |||||||||||||||
Proceeds from disposal | $ 201,000,000 | |||||||||||||||
Minimum | ||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||
Investment in a joint venture, percentage of interest | 20.00% | |||||||||||||||
Minimum | Secured senior notes | ||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||
Interest rate | 10.88% | |||||||||||||||
Minimum | Unsecured senior notes | ||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||
Interest rate | 3.70% | |||||||||||||||
Minimum | Convertible notes | ||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||
Interest rate | 2.88% | |||||||||||||||
Maximum | ||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||
Investment in a joint venture, percentage of interest | 50.00% | |||||||||||||||
Maximum | Secured senior notes | ||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||
Interest rate | 11.50% | |||||||||||||||
Maximum | Unsecured senior notes | ||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||
Interest rate | 9.13% | |||||||||||||||
Maximum | Convertible notes | ||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||
Interest rate | 4.25% | |||||||||||||||
Silversea Cruises (1) | ||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||
Interest acquired | 33.30% | |||||||||||||||
Common stock, shares issued (in shares) | shares | 5,200,000 | |||||||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | |||||||||||||||
Percentage of business acquired | 66.70% | 66.70% | ||||||||||||||
[1] | Including a $62.6 million net loss related to the 2021 elimination of the Silversea Cruises reporting lag. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($)brandsegment | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Exchange gains (losses) recorded in other income (expense) | $ 24,300 | $ (1,500) | $ 400 |
Derivative instrument, credit risk exposure | $ 1,900 | 26,900 | |
Number of cruise brands | brand | 3 | ||
Number of operating segments | segment | 1 | ||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2020-06 [Member] | ||
Decrease to retained earnings | $ (302,276) | (5,562,775) | |
Cumulative Effect, Period of Adoption, Adjustment | Pro Forma | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Decrease to retained earnings | 146,000 | ||
Decrease to additional paid in capital | 308,000 | ||
Increase to long-term debt | $ 162,000 | ||
Lower Limit | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Investment in a joint venture, percentage of interest | 20.00% | ||
Upper Limit | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Investment in a joint venture, percentage of interest | 50.00% | ||
Ships | Lower Limit | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Property, plant and equipment, useful life | 30 years | ||
Residual value, percentage | 10.00% | ||
Drydock services period | 30 months | ||
Ships | Upper Limit | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Property, plant and equipment, useful life | 35 years | ||
Residual value, percentage | 15.00% | ||
Drydock services period | 60 months | ||
Media advertising | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Advertising costs | $ 303,200 | 138,100 | 309,400 |
Brochure, production and direct mail costs | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Advertising costs | $ 88,900 | $ 69,100 | $ 156,000 |
TUI Cruises | Not Primary Beneficiary | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Investment in a joint venture, percentage of interest | 50.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Useful Lives of Property and Equipment) (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Ships | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 30 years |
Ships | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 35 years |
Ship improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Ship improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 25 years |
Buildings and improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 10 years |
Buildings and improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 40 years |
Computer hardware and software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Computer hardware and software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 10 years |
Transportation equipment and other | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Transportation equipment and other | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 30 years |
Leasehold improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Leasehold improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 30 years |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Capitalized Contract Cost [Line Items] | |||
Total revenues | $ 1,532,133 | $ 2,208,805 | $ 10,950,661 |
Refunds | 38,800 | 95,800 | |
Contract liabilities | 814,300 | 124,800 | |
Contract assets | 52,900 | 53,700 | |
Contract With Customer, Liability, Future Cruise Credits | 600,000 | ||
Commissions, transportation and other | |||
Capitalized Contract Cost [Line Items] | |||
Capitalized contract costs | $ 75,400 | 1,100 | |
Minimum | |||
Capitalized Contract Cost [Line Items] | |||
Duration of cruises | 1 day | ||
Maximum | |||
Capitalized Contract Cost [Line Items] | |||
Duration of cruises | 25 days | ||
Port Costs | |||
Capitalized Contract Cost [Line Items] | |||
Total revenues | $ 104,800 | $ 125,000 | $ 666,800 |
Revenue (Disaggregation of Reve
Revenue (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 1,532,133 | $ 2,208,805 | $ 10,950,661 |
Cruise itinerary | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 1,426,372 | 2,014,488 | 10,432,213 |
Cruise itinerary | North America | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 1,039,783 | 1,342,429 | 6,392,354 |
Cruise itinerary | Asia/Pacific | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 128,348 | 411,865 | 1,529,898 |
Cruise itinerary | Europe | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 180,256 | 18,604 | 1,942,057 |
Cruise itinerary | Other regions | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 77,985 | 241,590 | 567,904 |
Other revenues | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 105,761 | $ 194,317 | $ 518,448 |
Passenger ticket | Other regions | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of revenues by country | 24.00% | 33.00% | 35.00% |
Passenger ticket | United States | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of revenues by country | 76.00% | 67.00% | 65.00% |
Goodwill (Narrative) (Details)
Goodwill (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2020 | Dec. 31, 2020 | Nov. 30, 2021 | Nov. 30, 2020 | Jun. 30, 2020 | |
Goodwill [Line Items] | |||||
Impairment charge | $ 576,208 | ||||
Royal Caribbean International | |||||
Goodwill [Line Items] | |||||
Percentage of fair value excess of carrying amount | 30.00% | 38.00% | 14.00% | 8.00% | |
Impairment charge | 0 | ||||
Silversea Cruises (1) | |||||
Goodwill [Line Items] | |||||
Percentage of fair value excess of carrying amount | 35.00% | 12.00% | |||
Impairment charge | $ 576,200 | $ 576,208 |
Goodwill (Schedule of Goodwill)
Goodwill (Schedule of Goodwill) (Details) - USD ($) $ in Thousands | Jul. 09, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2018 | Jul. 31, 2018 |
Goodwill [Roll Forward] | ||||||
Beginning balance | $ 1,385,644 | $ 809,480 | $ 1,385,644 | |||
Impairment charge | (576,208) | |||||
Transfer of goodwill attributable to the 2019 purchase of photo operations onboard our ships | 0 | |||||
Foreign currency translation adjustment | (97) | 44 | ||||
Ending balance | 809,383 | $ 809,480 | ||||
Silversea Cruises (1) | ||||||
Goodwill [Roll Forward] | ||||||
Interest acquired | 33.30% | |||||
Silversea Cruises (1) | ||||||
Goodwill [Roll Forward] | ||||||
Percentage of business acquired | 66.70% | 66.70% | ||||
Interest acquired | 33.30% | |||||
Royal Caribbean International | ||||||
Goodwill [Roll Forward] | ||||||
Beginning balance | 299,226 | 296,576 | $ 299,226 | |||
Impairment charge | 0 | |||||
Transfer of goodwill attributable to the 2019 purchase of photo operations onboard our ships | (2,694) | |||||
Foreign currency translation adjustment | (97) | 44 | ||||
Ending balance | 296,479 | 296,576 | ||||
Celebrity Cruises | ||||||
Goodwill [Roll Forward] | ||||||
Beginning balance | 1,632 | 4,326 | 1,632 | |||
Impairment charge | 0 | |||||
Transfer of goodwill attributable to the 2019 purchase of photo operations onboard our ships | 2,694 | |||||
Foreign currency translation adjustment | 0 | 0 | ||||
Ending balance | 4,326 | 4,326 | ||||
Silversea Cruises (1) | ||||||
Goodwill [Roll Forward] | ||||||
Beginning balance | 1,084,786 | 508,578 | 1,084,786 | |||
Impairment charge | $ (576,200) | (576,208) | ||||
Transfer of goodwill attributable to the 2019 purchase of photo operations onboard our ships | 0 | |||||
Foreign currency translation adjustment | 0 | 0 | ||||
Ending balance | $ 508,578 | $ 508,578 |
Intangible Assets (Narrative) (
Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2020 | Dec. 31, 2021 | Nov. 30, 2021 | Dec. 31, 2020 | Nov. 30, 2020 | |
Acquired Indefinite-lived Intangible Assets [Line Items] | |||||
Indefinite-life intangible assets, net carrying value | $ 321,475 | $ 321,475 | |||
Trade Names | |||||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||||
Impairment charge | $ 30,800 | ||||
Percentage of fair value in excess of carrying amount | 19.00% | 3.00% | |||
Indefinite-life intangible assets, net carrying value | $ 318,700 |
Intangible Assets (Schedule of
Intangible Assets (Schedule of Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-life intangible assets, gross carrying value | $ 156,629 | $ 156,629 |
Finite-life intangible assets, accumulated amortization | 43,548 | 33,250 |
Finite-life intangible assets, accumulated impairment losses | 0 | 0 |
Finite-life intangible assets, net carrying value | 113,081 | 123,379 |
Indefinite-life intangible assets, gross carrying value | 352,275 | 352,275 |
Indefinite-life intangible assets, accumulated impairment losses | 30,800 | 30,800 |
Indefinite-life intangible assets, net carrying value | 321,475 | 321,475 |
Gross Carrying Value | 508,904 | 508,904 |
Accumulated Impairment Losses | 30,800 | 30,800 |
Net Carrying Value | 434,556 | 444,854 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-life intangible assets, gross carrying value | 97,400 | 97,400 |
Finite-life intangible assets, accumulated amortization | 22,186 | 14,069 |
Finite-life intangible assets, accumulated impairment losses | 0 | 0 |
Finite-life intangible assets, net carrying value | $ 75,214 | $ 83,331 |
Customer relationships | Weighted Average | ||
Finite-Lived Intangible Assets [Line Items] | ||
Remaining Weighted Average Amortization Period (Years) | 11 years 7 months 6 days | 12 years 9 months 18 days |
Galapagos operating license | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-life intangible assets, gross carrying value | $ 47,669 | $ 47,669 |
Finite-life intangible assets, accumulated amortization | 9,802 | 7,621 |
Finite-life intangible assets, accumulated impairment losses | 0 | 0 |
Finite-life intangible assets, net carrying value | $ 37,867 | $ 40,048 |
Galapagos operating license | Weighted Average | ||
Finite-Lived Intangible Assets [Line Items] | ||
Remaining Weighted Average Amortization Period (Years) | 22 years 7 months 6 days | 23 years 9 months 18 days |
Other finite-life intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-life intangible assets, gross carrying value | $ 11,560 | $ 11,560 |
Finite-life intangible assets, accumulated amortization | 11,560 | 11,560 |
Finite-life intangible assets, accumulated impairment losses | 0 | 0 |
Finite-life intangible assets, net carrying value | $ 0 | $ 0 |
Intangible Assets (Future Amort
Intangible Assets (Future Amortization Expense) (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
2022 | $ 8,179 |
2023 | 8,179 |
2024 | 8,179 |
2025 | 8,179 |
2026 | $ 8,179 |
Property and Equipment (Schedul
Property and Equipment (Schedule of Property and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Abstract] | ||
Ships | $ 31,357,703 | $ 29,872,655 |
Ship improvements | 2,152,457 | 2,108,922 |
Ships under construction | 1,180,486 | 1,078,243 |
Land, buildings and improvements, including leasehold improvements and port facilities | 746,785 | 524,849 |
Computer hardware and software, transportation equipment and other | 1,650,249 | 1,678,903 |
Total property and equipment | 37,087,680 | 35,263,572 |
Less-accumulated depreciation and amortization | (11,179,731) | (10,016,977) |
Property and equipment, net | $ 25,907,949 | $ 25,246,595 |
Property and Equipment (Narrati
Property and Equipment (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($)ship | Dec. 31, 2019USD ($) | |
Property and Equipment | |||
Capitalized interest cost | $ 58.8 | $ 59.1 | $ 56.5 |
Impairment losses | 635.5 | ||
Three Pullmantur Ships | Disposal Group, Held-for-sale, Not Discontinued Operations | |||
Property and Equipment | |||
Impairment losses | $ 171.3 | ||
Number of ships impaired, held-for-sale | ship | 3 | ||
Construction in Progress | |||
Property and Equipment | |||
Long-lived asset impairment | $ 55.2 | $ 91.5 | |
Azamara | Disposal Group, Held-for-sale, Not Discontinued Operations | |||
Property and Equipment | |||
Impairment losses | $ 166.8 | ||
Number of ships impaired, held-for-sale | ship | 3 |
Other Assets (Narrative) (Detai
Other Assets (Narrative) (Details) $ in Thousands, € in Millions | Jun. 30, 2020USD ($)ship | Jun. 30, 2020EUR (€)ship | Apr. 30, 2016 | Mar. 31, 2021USD ($) | Mar. 31, 2021EUR (€) | Jun. 30, 2020USD ($)ship | Mar. 31, 2020USD ($) | Dec. 31, 2021USD ($)berth | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2021EUR (€)berth | Jun. 30, 2021berth | Dec. 31, 2020EUR (€) | Sep. 30, 2020ship | Dec. 31, 2017 |
Other Assets | |||||||||||||||
Approximate berths | berth | 47,260 | 47,260 | |||||||||||||
Number of cruise ships held-for-sale | ship | 3 | ||||||||||||||
Impairment losses | $ 635,500 | ||||||||||||||
Principal and Interest payments received | $ 31,334 | 21,086 | $ 32,870 | ||||||||||||
Loss provision for receivables | 43,822 | 81,600 | |||||||||||||
Notes receivable | $ 24,300 | ||||||||||||||
Minimum | |||||||||||||||
Other Assets | |||||||||||||||
Investment in a joint venture, percentage of interest | 20.00% | 20.00% | |||||||||||||
Ownership interest retained, percent | 20.00% | 20.00% | |||||||||||||
Maximum | |||||||||||||||
Other Assets | |||||||||||||||
Investment in a joint venture, percentage of interest | 50.00% | 50.00% | |||||||||||||
Ownership interest retained, percent | 50.00% | 50.00% | |||||||||||||
TUI Cruises GmbH joint venture | |||||||||||||||
Other Assets | |||||||||||||||
Equity and loans due from equity method investee | $ 444,400 | 538,400 | |||||||||||||
Equity investment | 322,400 | 387,500 | |||||||||||||
Loan investment | $ 117,200 | 145,500 | € 103 | € 118.9 | |||||||||||
TUI Cruises GmbH joint venture | TUI cruise ships | |||||||||||||||
Other Assets | |||||||||||||||
Reduction of current ownership interest, minimum allowed (as a percent) | 37.55% | 37.55% | |||||||||||||
TUI Cruises GmbH joint venture | Not Primary Beneficiary | |||||||||||||||
Other Assets | |||||||||||||||
Investment in a joint venture, percentage of interest | 50.00% | 50.00% | |||||||||||||
Equity contribution | $ 84,200 | € 75 | $ 69,900 | € 59.5 | |||||||||||
Ownership interest retained, percent | 50.00% | 50.00% | |||||||||||||
Pullmantur | |||||||||||||||
Other Assets | |||||||||||||||
Impairment losses | $ 69,000 | ||||||||||||||
Reorganization items | $ 10,200 | 21,600 | |||||||||||||
Percentage of subsidiary which has been sold | 51.00% | 51.00% | 51.00% | ||||||||||||
Loss provision for receivables | $ 12,600 | ||||||||||||||
Pullmantur | Not Primary Beneficiary | |||||||||||||||
Other Assets | |||||||||||||||
Retained ownership percentage of subsidiary after sale | 49.00% | ||||||||||||||
Grand Bahamas Shipyard Ltd. | |||||||||||||||
Other Assets | |||||||||||||||
Equity method investment impairment | $ 30,100 | ||||||||||||||
Grand Bahamas Shipyard Ltd. | Not Primary Beneficiary | |||||||||||||||
Other Assets | |||||||||||||||
Investment in a joint venture, percentage of interest | 40.00% | 40.00% | |||||||||||||
Ownership interest retained, percent | 40.00% | 40.00% | |||||||||||||
Payments to related parties for services provided | $ 9,300 | $ 200 | |||||||||||||
Grand Bahamas Shipyard Ltd. | Non-accrual status of advances to affiliates | Not Primary Beneficiary | |||||||||||||||
Other Assets | |||||||||||||||
Interest rate on debt facility provided to related party (as a percent) | 5.75% | 5.75% | |||||||||||||
Principal and Interest payments received | $ 8,900 | ||||||||||||||
Grand Bahamas Shipyard Ltd. | Loans Receivable | Not Primary Beneficiary | |||||||||||||||
Other Assets | |||||||||||||||
Loan investment | $ 11,100 | ||||||||||||||
London Interbank Offered Rate (LIBOR) | Grand Bahamas Shipyard Ltd. | Non-accrual status of advances to affiliates | Minimum | Not Primary Beneficiary | |||||||||||||||
Other Assets | |||||||||||||||
Margin on floating rate base (as a percent) | 3.50% | ||||||||||||||
London Interbank Offered Rate (LIBOR) | Grand Bahamas Shipyard Ltd. | Non-accrual status of advances to affiliates | Maximum | Not Primary Beneficiary | |||||||||||||||
Other Assets | |||||||||||||||
Margin on floating rate base (as a percent) | 3.75% | ||||||||||||||
Splendor of the Seas | TUI Cruises GmbH joint venture | |||||||||||||||
Other Assets | |||||||||||||||
Interest rate on debt facility provided to related party (as a percent) | 6.25% | ||||||||||||||
Debt instrument, term | 10 years | ||||||||||||||
Related party guarantor obligation percentage | 50.00% | ||||||||||||||
TUI Cruises GmbH joint venture | Hapag-Lloyd Cruises | |||||||||||||||
Other Assets | |||||||||||||||
Purchase price | $ 1,300,000 | € 1,200 | |||||||||||||
Springwater Capital LLC | Pullmantur | |||||||||||||||
Other Assets | |||||||||||||||
Investment in a joint venture, percentage of interest | 51.00% | 51.00% | |||||||||||||
Ownership interest retained, percent | 51.00% | 51.00% | |||||||||||||
Luxury Liners | TUI Cruises GmbH joint venture | Hapag-Lloyd Cruises | |||||||||||||||
Other Assets | |||||||||||||||
Number of ships acquired | ship | 2 | 2 | 2 | ||||||||||||
Expedition Ships | TUI Cruises GmbH joint venture | Hapag-Lloyd Cruises | |||||||||||||||
Other Assets | |||||||||||||||
Number of ships acquired | ship | 2 | 2 | 2 | ||||||||||||
Hanseatic Spirit | Hapag-Lloyd Cruises | |||||||||||||||
Other Assets | |||||||||||||||
Approximate berths | berth | 230 |
Other Assets (Share of equity i
Other Assets (Share of equity income from investments) (Details) $ in Thousands, € in Millions | 12 Months Ended | |||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019EUR (€) | |
Schedule of Equity Method Investments [Line Items] | ||||
Share of equity (loss) income from investments | $ (135,469) | $ (213,286) | $ 230,980 | |
Dividends received | 0 | 2,215 | 150,177 | |
TUI Cruises | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Dividends received | $ 0 | $ 0 | $ 190,300 | € 170 |
Other Assets (Notes Receivable
Other Assets (Notes Receivable Due From Equity Investments) (Details) - Equity Investment - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total notes receivable due from equity investments | $ 130,587 | $ 164,596 |
Less-current portion | 21,508 | 29,501 |
Long-term portion | $ 109,079 | $ 135,095 |
Other Assets (Related party tra
Other Assets (Related party transactions) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other Assets [Abstract] | |||
Revenues | $ 24,568 | $ 21,372 | $ 47,242 |
Expenses | $ 6,275 | $ 4,986 | $ 4,304 |
Other Assets (Equity Method Inv
Other Assets (Equity Method Investee) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Assets | |||
Current assets | $ 3,600,271 | $ 4,311,747 | |
Total assets | 32,258,355 | 32,465,187 | |
Liabilities [Abstract] | |||
Current liabilities | 7,285,683 | 4,537,121 | |
Total liabilities | 27,172,799 | 23,704,518 | |
Income Statement [Abstract] | |||
Net (Loss) Income | (5,260,499) | (5,775,130) | $ 1,907,600 |
Affiliates | |||
Assets | |||
Current assets | 736,263 | 488,329 | |
Non-current assets | 5,241,302 | 5,456,061 | |
Total assets | 5,977,565 | 5,944,390 | |
Liabilities [Abstract] | |||
Current liabilities | 1,225,032 | 1,106,700 | |
Non- current liabilities | 3,860,646 | 3,771,992 | |
Total liabilities | 5,085,678 | 4,878,692 | |
Income Statement [Abstract] | |||
Total revenues | 679,137 | 619,795 | 2,354,744 |
Total expenses | (897,308) | (939,481) | (1,875,952) |
Net (Loss) Income | $ (218,171) | $ (319,686) | $ 478,792 |
Other Assets (Summary of Credit
Other Assets (Summary of Credit Loss Allowance) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at January 1, 2021 | $ 85,447 | |
Loss provision for receivables | 43,822 | $ 81,600 |
Write-offs | (29,077) | |
Balance at December 31, 2021 | $ 100,192 | $ 85,447 |
Debt (Schedule of Long-Term Deb
Debt (Schedule of Long-Term Debt) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Feb. 29, 2020 | |
Long-Term Debt | |||
Total debt | $ 21,453,872,000 | $ 19,643,806,000 | |
Less: unamortized debt issuance costs | (363,532,000) | (314,763,000) | |
Total debt, net of unamortized debt issuance costs | 21,090,340,000 | 19,329,043,000 | |
Less—current portion including commercial paper | (2,243,131,000) | (1,371,087,000) | |
Long-term portion | $ 18,847,209,000 | $ 17,957,956,000 | |
Weighted average interest rate | 5.47% | 6.02% | |
Unsecured UK Commercial paper | |||
Long-Term Debt | |||
Long-term debt | $ 0 | $ 409,319,000 | |
Fixed rate debt: | |||
Long-Term Debt | |||
Long-term debt | 12,377,882,000 | 11,024,809,000 | |
Unsecured senior notes | |||
Long-Term Debt | |||
Long-term debt | 5,604,498,000 | 2,464,994,000 | |
Secured senior notes | |||
Long-Term Debt | |||
Long-term debt | 2,354,037,000 | 3,895,166,000 | |
Unsecured term loans | |||
Long-Term Debt | |||
Long-term debt | 2,860,567,000 | 3,210,161,000 | |
Convertible notes | |||
Long-Term Debt | |||
Long-term debt | 1,558,780,000 | 1,454,488,000 | |
Total variable rate debt | |||
Long-Term Debt | |||
Long-term debt | 8,603,715,000 | 8,405,632,000 | |
Unsecured revolving credit facilities | |||
Long-Term Debt | |||
Long-term debt | $ 2,899,342,000 | 3,289,000,000 | |
Maximum borrowing capacity | 3,500,000,000 | ||
Unsecured revolving credit facilities | Unsecured Revolving Credit Facility Due 2024, $1.9 billion | |||
Long-Term Debt | |||
Long term debt, current interest rate (as a percent) | 1.51% | ||
Maximum borrowing capacity | $ 1,900,000,000 | $ 1,700,000,000 | |
Long term debt, facility fee (as a percent) | 0.20% | ||
Unsecured revolving credit facilities | Unsecured Revolving Credit Facility due 2024, $1.3 billion | |||
Long-Term Debt | |||
Long term debt, current interest rate (as a percent) | 1.91% | ||
Maximum borrowing capacity | $ 1,300,000,000 | ||
USD unsecured term loan | |||
Long-Term Debt | |||
Long-term debt | 5,018,740,000 | 4,002,249,000 | |
Euro unsecured term loan | |||
Long-Term Debt | |||
Long-term debt | 685,633,000 | 705,064,000 | |
Finance lease liabilities | |||
Long-Term Debt | |||
Long-term debt | $ 472,275,000 | $ 213,365,000 | |
LIBOR | Unsecured revolving credit facilities | Unsecured Revolving Credit Facility Due 2024, $1.9 billion | |||
Long-Term Debt | |||
Margin on floating rate base (as a percent) | 1.30% | ||
Minimum | Unsecured senior notes | |||
Long-Term Debt | |||
Long term debt, stated interest rate (as a percent) | 3.70% | ||
Minimum | Secured senior notes | |||
Long-Term Debt | |||
Long term debt, stated interest rate (as a percent) | 10.88% | ||
Minimum | Unsecured term loans | |||
Long-Term Debt | |||
Long term debt, stated interest rate (as a percent) | 2.53% | ||
Minimum | Convertible notes | |||
Long-Term Debt | |||
Long term debt, stated interest rate (as a percent) | 2.88% | ||
Minimum | Unsecured revolving credit facilities | |||
Long-Term Debt | |||
Long term debt, current interest rate (as a percent) | 1.51% | ||
Minimum | USD unsecured term loan | |||
Long-Term Debt | |||
Long term debt, current interest rate (as a percent) | 0.71% | ||
Minimum | Euro unsecured term loan | |||
Long-Term Debt | |||
Long term debt, current interest rate (as a percent) | 1.74% | ||
Maximum | Unsecured senior notes | |||
Long-Term Debt | |||
Long term debt, stated interest rate (as a percent) | 9.13% | ||
Maximum | Secured senior notes | |||
Long-Term Debt | |||
Long term debt, stated interest rate (as a percent) | 11.50% | ||
Maximum | Unsecured term loans | |||
Long-Term Debt | |||
Long term debt, stated interest rate (as a percent) | 5.41% | ||
Maximum | Convertible notes | |||
Long-Term Debt | |||
Long term debt, stated interest rate (as a percent) | 4.25% | ||
Maximum | Unsecured revolving credit facilities | |||
Long-Term Debt | |||
Long term debt, current interest rate (as a percent) | 1.91% | ||
Maximum | Unsecured revolving credit facilities | Unsecured Revolving Credit Facility due 2024, $1.3 billion | |||
Long-Term Debt | |||
Long term debt, facility fee (as a percent) | 0.30% | ||
Maximum | USD unsecured term loan | |||
Long-Term Debt | |||
Long term debt, current interest rate (as a percent) | 3.17% | ||
Maximum | Euro unsecured term loan | |||
Long-Term Debt | |||
Long term debt, current interest rate (as a percent) | 2.25% | ||
Maximum | LIBOR | Unsecured revolving credit facilities | Unsecured Revolving Credit Facility due 2024, $1.3 billion | |||
Long-Term Debt | |||
Margin on floating rate base (as a percent) | 1.70% |
Debt (Narrative) (Details)
Debt (Narrative) (Details) | Oct. 01, 2020 | Apr. 30, 2024USD ($) | Oct. 31, 2023USD ($) | Oct. 31, 2022USD ($) | Apr. 30, 2022USD ($) | Feb. 28, 2022USD ($) | Jan. 31, 2022USD ($) | Aug. 31, 2021USD ($) | Jun. 30, 2021USD ($) | Mar. 31, 2021USD ($)ship | Oct. 31, 2020USD ($)$ / shares | Sep. 30, 2020 | Jun. 30, 2020USD ($)$ / shares | Jun. 30, 2020GBP (£) | May 31, 2020USD ($)ship | Mar. 31, 2020USD ($)board_member | Sep. 30, 2019 | Jul. 31, 2017USD ($) | Jun. 30, 2021USD ($) | Mar. 31, 2021GBP (£) | Dec. 31, 2023 | Dec. 31, 2021USD ($)ship | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2017 | May 31, 2022 | Mar. 14, 2023day | Aug. 14, 2023day | Mar. 14, 2023day | Aug. 14, 2023day | Feb. 28, 2023 | Dec. 31, 2025 | Jun. 30, 2026 | Jun. 30, 2028 | Mar. 31, 2022USD ($) | Dec. 31, 2020GBP (£) | Feb. 29, 2020USD ($) |
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Credit card processor agreement, maximum exposure | $ 285,000,000 | ||||||||||||||||||||||||||||||||||||
Number of ships in operation | ship | 61 | ||||||||||||||||||||||||||||||||||||
Repayment of debt | £ | £ 300,000,000 | ||||||||||||||||||||||||||||||||||||
Loss on extinguishment of debt | $ 138,759,000 | $ 41,109,000 | $ 6,326,000 | ||||||||||||||||||||||||||||||||||
Debt covenant, minimum monthly liquidity requirement | 350,000,000 | ||||||||||||||||||||||||||||||||||||
Collateral | $ 91,000,000 | ||||||||||||||||||||||||||||||||||||
Short-term debt amount outstanding | £ | £ 300,000,000 | ||||||||||||||||||||||||||||||||||||
Deferred amortization of debt, debt holiday | $ 900,000,000 | ||||||||||||||||||||||||||||||||||||
Deferred debt amortization period | 4 years | ||||||||||||||||||||||||||||||||||||
Unsecured UK Commercial paper | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Borrowings outstanding | $ 409,900,000 | £ 300,000,000 | |||||||||||||||||||||||||||||||||||
Minimum | Up-front payment arrangement | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Credit agency fees, percentage of loan amount payable | 2.35% | ||||||||||||||||||||||||||||||||||||
Maximum | Up-front payment arrangement | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Credit agency fees, percentage of loan amount payable | 5.48% | ||||||||||||||||||||||||||||||||||||
Scenario, Forecast | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Deferred principal payments, repayment period | 5 years | ||||||||||||||||||||||||||||||||||||
Deferred amortization of debt, debt holiday | $ 800,000,000 | ||||||||||||||||||||||||||||||||||||
Deferred debt amortization period | 5 years | ||||||||||||||||||||||||||||||||||||
RCI Holdings LLC | Subsidiaries | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Number of ships in operation | ship | 7 | ||||||||||||||||||||||||||||||||||||
Unsecured term loans | Minimum | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Long term debt, stated interest rate (as a percent) | 2.53% | ||||||||||||||||||||||||||||||||||||
Unsecured term loans | Maximum | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Long term debt, stated interest rate (as a percent) | 5.41% | ||||||||||||||||||||||||||||||||||||
Unsecured term loans | Euler Hermes | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Percentage of unsecured term loan guaranteed by an export credit agency | 95.00% | 95.00% | |||||||||||||||||||||||||||||||||||
Unsecured senior notes | Minimum | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Long term debt, stated interest rate (as a percent) | 3.70% | ||||||||||||||||||||||||||||||||||||
Unsecured senior notes | Maximum | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Long term debt, stated interest rate (as a percent) | 9.13% | ||||||||||||||||||||||||||||||||||||
Secured senior notes | Minimum | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Long term debt, stated interest rate (as a percent) | 10.88% | ||||||||||||||||||||||||||||||||||||
Secured senior notes | Maximum | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Long term debt, stated interest rate (as a percent) | 11.50% | ||||||||||||||||||||||||||||||||||||
Convertible notes | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Principal | $ 1,725,000,000 | 1,725,000,000 | |||||||||||||||||||||||||||||||||||
Convertible notes | Minimum | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Long term debt, stated interest rate (as a percent) | 2.88% | ||||||||||||||||||||||||||||||||||||
Convertible notes | Maximum | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Long term debt, stated interest rate (as a percent) | 4.25% | ||||||||||||||||||||||||||||||||||||
Revolving Credit Facility | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Maximum borrowing capacity | $ 3,500,000,000 | ||||||||||||||||||||||||||||||||||||
Unsecured Revolving Credit Facility due 2024, $1.3 billion | Revolving Credit Facility | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Maximum borrowing capacity | $ 1,300,000,000 | ||||||||||||||||||||||||||||||||||||
Unsecured Revolving Credit Facility due 2024, $1.3 billion | Revolving Credit Facility | LIBOR | Maximum | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Margin on floating rate base (as a percent) | 1.70% | ||||||||||||||||||||||||||||||||||||
Unsecured Term Loan Agreement | Unsecured term loans | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Principal | $ 1,000,000,000 | ||||||||||||||||||||||||||||||||||||
Extension term | 18 months | ||||||||||||||||||||||||||||||||||||
Prepayment and commitment reduction, as a percentage of outstanding advances and commitments | 20.00% | ||||||||||||||||||||||||||||||||||||
Long-term debt | $ 900,000,000 | ||||||||||||||||||||||||||||||||||||
Unsecured Term Loan Agreement | Unsecured term loans | Scenario, Forecast | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Debt terminated | $ 600,000,000 | $ 300,000,000 | |||||||||||||||||||||||||||||||||||
Novation Agreement | Unsecured term loans | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Proceeds from unsecured debt | $ 994,100,000 | ||||||||||||||||||||||||||||||||||||
Debt instrument, term | 12 years | ||||||||||||||||||||||||||||||||||||
Bank financing commitment percentage | 80.00% | ||||||||||||||||||||||||||||||||||||
Percentage of premium payable | 100.00% | ||||||||||||||||||||||||||||||||||||
Novation Agreement | Unsecured term loans | LIBOR | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Margin on floating rate base (as a percent) | 0.96% | ||||||||||||||||||||||||||||||||||||
Novation Agreement | Unsecured term loans | Euler Hermes | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Percentage of unsecured term loan guaranteed by an export credit agency | 95.00% | ||||||||||||||||||||||||||||||||||||
Senior Unsecured Notes Due 2028 | Unsecured senior notes | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Principal | $ 1,500,000,000 | ||||||||||||||||||||||||||||||||||||
Proceeds from issuance | $ 1,480,000,000 | ||||||||||||||||||||||||||||||||||||
Long term debt, stated interest rate (as a percent) | 5.50% | ||||||||||||||||||||||||||||||||||||
Term Loan | Unsecured term loans | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Repayment of debt | $ 130,000,000 | ||||||||||||||||||||||||||||||||||||
Senior Unsecured Notes Due 2026 | Unsecured senior notes | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Principal | $ 650,000,000 | $ 650,000,000 | $ 650,000,000 | ||||||||||||||||||||||||||||||||||
Proceeds from unsecured debt | $ 640,600,000 | ||||||||||||||||||||||||||||||||||||
Long term debt, stated interest rate (as a percent) | 4.25% | 4.25% | |||||||||||||||||||||||||||||||||||
Silversea Notes | Secured senior notes | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Long term debt, stated interest rate (as a percent) | 7.25% | 7.25% | |||||||||||||||||||||||||||||||||||
Repayment of debt | $ 619,800,000 | ||||||||||||||||||||||||||||||||||||
August Unsecured Notes | Unsecured senior notes | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Principal | $ 1,000,000,000 | ||||||||||||||||||||||||||||||||||||
Proceeds from unsecured debt | $ 986,000,000 | ||||||||||||||||||||||||||||||||||||
Long term debt, stated interest rate (as a percent) | 5.50% | ||||||||||||||||||||||||||||||||||||
Senior Secured Notes Due 2025 | Secured senior notes | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Principal | $ 2,320,000,000 | ||||||||||||||||||||||||||||||||||||
Long term debt, stated interest rate (as a percent) | 11.50% | 11.50% | |||||||||||||||||||||||||||||||||||
Repayment of debt | $ 928,000,000 | ||||||||||||||||||||||||||||||||||||
Loss on extinguishment of debt | $ 141,900,000 | ||||||||||||||||||||||||||||||||||||
Senior Secured Notes Due 2025 | Secured senior notes | Scenario, Forecast | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Percentage of principal amount to be redeemed | 100.00% | 40.00% | |||||||||||||||||||||||||||||||||||
Novation Agreement, July 2017 | BpiFAE | Wonder of the Seas | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Percentage of unsecured term loan guaranteed by an export credit agency | 100.00% | ||||||||||||||||||||||||||||||||||||
Novation Agreement, July 2017 | Unsecured term loans | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Proceeds from unsecured debt | $ 1,300,000,000 | ||||||||||||||||||||||||||||||||||||
Debt instrument, term | 12 years | ||||||||||||||||||||||||||||||||||||
Long term debt, stated interest rate (as a percent) | 3.18% | ||||||||||||||||||||||||||||||||||||
Senior Notes Due 2027 | Unsecured senior notes | Subsequent event | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Principal | $ 1,000,000,000 | ||||||||||||||||||||||||||||||||||||
Long term debt, stated interest rate (as a percent) | 5.375% | ||||||||||||||||||||||||||||||||||||
Proceeds from issuance of senior notes | $ 990,000,000 | ||||||||||||||||||||||||||||||||||||
Senior Unsecured Note, Backstop Committed Financing | Subsequent event | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Principal | $ 3,150,000,000 | ||||||||||||||||||||||||||||||||||||
Debt instrument, term | 5 years | ||||||||||||||||||||||||||||||||||||
Senior Secured Notes Due 2023 | Secured senior notes | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Principal | $ 1,000,000,000 | ||||||||||||||||||||||||||||||||||||
Long term debt, stated interest rate (as a percent) | 10.875% | 10.875% | |||||||||||||||||||||||||||||||||||
Senior Secured Notes Due 2023 | Secured senior notes | Scenario, Forecast | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Percentage of principal amount to be redeemed | 100.00% | 100.00% | |||||||||||||||||||||||||||||||||||
Senior Guaranteed Notes | Unsecured senior notes | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Principal | $ 1,000,000,000 | ||||||||||||||||||||||||||||||||||||
Long term debt, stated interest rate (as a percent) | 9.125% | 9.125% | |||||||||||||||||||||||||||||||||||
Percentage of equity interests pledged as collateral | 100.00% | ||||||||||||||||||||||||||||||||||||
Convertible Notes Due 2023 | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Proceeds allocated to paid-in-capital | $ 209,000,000 | ||||||||||||||||||||||||||||||||||||
Debt issuance costs | 33,100,000 | ||||||||||||||||||||||||||||||||||||
Issuance costs allocated to paid-in capital | 6,200,000 | ||||||||||||||||||||||||||||||||||||
Convertible Notes Due 2023 | Long-term debt | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Proceeds from debt issuance | 907,900,000 | ||||||||||||||||||||||||||||||||||||
Convertible Notes Due 2023 | Convertible notes | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Principal | $ 1,150,000,000 | ||||||||||||||||||||||||||||||||||||
Long term debt, stated interest rate (as a percent) | 4.25% | 4.25% | |||||||||||||||||||||||||||||||||||
Percentage of principal amount to be redeemed | 100.00% | 100.00% | |||||||||||||||||||||||||||||||||||
Conversion ratio | 0.0138672 | 0.0138672 | |||||||||||||||||||||||||||||||||||
Conversion price (in dollars per share) | $ / shares | $ 72.11 | ||||||||||||||||||||||||||||||||||||
Convertible Notes Due 2023 | Convertible notes | Scenario, Forecast | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Number of trading days | day | 20 | ||||||||||||||||||||||||||||||||||||
Consecutive trading days | day | 30 | 10 | |||||||||||||||||||||||||||||||||||
Percentage of stock price | 130.00% | 98.00% | |||||||||||||||||||||||||||||||||||
Number of days to convert debt | day | 5 | ||||||||||||||||||||||||||||||||||||
Non-Export Credit Facilities | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Long-term debt | $ 4,900,000,000 | ||||||||||||||||||||||||||||||||||||
Export Credit Facilities | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Long-term debt | 6,300,000,000 | $ 7,300,000,000 | |||||||||||||||||||||||||||||||||||
Deferred principal payments | $ 1,150,000,000 | ||||||||||||||||||||||||||||||||||||
Export Credit Facilities | Scenario, Forecast | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Deferred principal payments, repayment period | 5 years | ||||||||||||||||||||||||||||||||||||
10.875% Senior Secured Notes Due 2023 | Secured senior notes | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Principal | $ 3,320,000,000 | ||||||||||||||||||||||||||||||||||||
Long term debt, stated interest rate (as a percent) | 10.875% | ||||||||||||||||||||||||||||||||||||
Net proceeds from debt | $ 3,200,000,000 | ||||||||||||||||||||||||||||||||||||
Percentage of equity interests pledged as collateral | 100.00% | ||||||||||||||||||||||||||||||||||||
Number of ships owned by subsidiaries | ship | 28 | ||||||||||||||||||||||||||||||||||||
10.875% Senior Secured Notes Due 2023 | Secured senior notes | Maximum | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Collateral | $ 1,660,000,000 | ||||||||||||||||||||||||||||||||||||
Unsecured Revolving Credit Facility Due 2024, $1.9 billion | Revolving Credit Facility | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Maximum borrowing capacity | $ 1,900,000,000 | $ 1,700,000,000 | |||||||||||||||||||||||||||||||||||
Increase in borrowing capacity | $ 200,000,000 | ||||||||||||||||||||||||||||||||||||
Unsecured Revolving Credit Facility Due 2024, $1.9 billion | Revolving Credit Facility | LIBOR | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Margin on floating rate base (as a percent) | 1.30% | ||||||||||||||||||||||||||||||||||||
Unsecured Revolving Credit Facility Due 2022 | Revolving Credit Facility | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Maximum borrowing capacity | $ 1,200,000,000 | ||||||||||||||||||||||||||||||||||||
Increase in borrowing capacity | $ 400,000,000 | ||||||||||||||||||||||||||||||||||||
Celebrity Apex Unsecured Term Loan | BpiFAE | Celebrity Apex | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Percentage of unsecured term loan guaranteed by an export credit agency | 100.00% | ||||||||||||||||||||||||||||||||||||
Celebrity Apex Unsecured Term Loan | Unsecured term loans | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Proceeds from unsecured debt | $ 722,200,000 | ||||||||||||||||||||||||||||||||||||
Debt instrument, term | 12 years | ||||||||||||||||||||||||||||||||||||
Long term debt, stated interest rate (as a percent) | 3.23% | ||||||||||||||||||||||||||||||||||||
Secured Term Loan | USD Secured Term Loan | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Principal | 2,350,000,000 | $ 2,200,000,000 | |||||||||||||||||||||||||||||||||||
Debt instrument, term | 364 days | ||||||||||||||||||||||||||||||||||||
Loss on extinguishment of debt | $ 41,100,000 | ||||||||||||||||||||||||||||||||||||
Increase in borrowing capacity | $ 150,000,000 | ||||||||||||||||||||||||||||||||||||
Extension term | 364 days | ||||||||||||||||||||||||||||||||||||
Extension fee percentage | 1.00% | ||||||||||||||||||||||||||||||||||||
Duration fee percentage | 0.25% | ||||||||||||||||||||||||||||||||||||
Number of board members | board_member | 2 | ||||||||||||||||||||||||||||||||||||
Secured Term Loan | USD Secured Term Loan | Board Member One | Director | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Payments to related parties for services provided | $ 100,000,000 | ||||||||||||||||||||||||||||||||||||
Secured Term Loan | USD Secured Term Loan | Board Member Two | Director | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Payments to related parties for services provided | $ 100,000,000 | ||||||||||||||||||||||||||||||||||||
Secured Term Loan | USD Secured Term Loan | LIBOR | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Margin on floating rate base (as a percent) | 2.75% | 2.50% | 2.25% | ||||||||||||||||||||||||||||||||||
Senior Convertible Notes Due 2023 | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Proceeds allocated to paid-in-capital | $ 101,900,000 | ||||||||||||||||||||||||||||||||||||
Debt issuance costs | 10,100,000 | ||||||||||||||||||||||||||||||||||||
Issuance costs allocated to paid-in capital | 1,800,000 | ||||||||||||||||||||||||||||||||||||
Senior Convertible Notes Due 2023 | Long-term debt | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Proceeds from debt issuance | $ 463,000,000 | ||||||||||||||||||||||||||||||||||||
Senior Convertible Notes Due 2023 | Convertible notes | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Principal | $ 575,000,000 | ||||||||||||||||||||||||||||||||||||
Long term debt, stated interest rate (as a percent) | 2.875% | ||||||||||||||||||||||||||||||||||||
Percentage of principal amount to be redeemed | 100.00% | ||||||||||||||||||||||||||||||||||||
Conversion ratio | 0.0121212 | ||||||||||||||||||||||||||||||||||||
Conversion price (in dollars per share) | $ / shares | $ 82.50 | ||||||||||||||||||||||||||||||||||||
Senior Convertible Notes Due 2023 | Convertible notes | Scenario, Forecast | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Number of trading days | day | 20 | ||||||||||||||||||||||||||||||||||||
Consecutive trading days | day | 30 | 10 | |||||||||||||||||||||||||||||||||||
Percentage of stock price | 130.00% | 98.00% | |||||||||||||||||||||||||||||||||||
Number of days to convert debt | day | 5 | ||||||||||||||||||||||||||||||||||||
Silver Moon Credit Agreement | Unsecured term loans | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Principal | $ 300,000,000 | ||||||||||||||||||||||||||||||||||||
Silver Moon Credit Agreement | Unsecured term loans | Scenario, Forecast | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Repayment advance notice | 90 days | ||||||||||||||||||||||||||||||||||||
Periodic payment, percentage of principal | 4.17% | ||||||||||||||||||||||||||||||||||||
Silver Moon Credit Agreement | Unsecured term loans | LIBOR | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Margin on floating rate base (as a percent) | 2.00% | ||||||||||||||||||||||||||||||||||||
Revolving Credit Facility | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Maximum borrowing capacity | 100,000,000 | ||||||||||||||||||||||||||||||||||||
Revolving Credit Facility | Subsequent event | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Maximum borrowing capacity | $ 1,100,000,000 | ||||||||||||||||||||||||||||||||||||
Revolving Credit Facility | Credit agreement | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Maximum borrowing capacity | 3,200,000,000 | ||||||||||||||||||||||||||||||||||||
Revolving Credit Facility | Unsecured Revolving Credit Facility due 2024, $1.3 billion | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Maximum borrowing capacity | $ 1,550,000,000 | ||||||||||||||||||||||||||||||||||||
Extension term | 18 months | ||||||||||||||||||||||||||||||||||||
Prepayment and commitment reduction, as a percentage of outstanding advances and commitments | 20.00% | ||||||||||||||||||||||||||||||||||||
Aggregate borrowing capacity | 1,300,000,000 | ||||||||||||||||||||||||||||||||||||
Revolving Credit Facility | Unsecured Revolving Credit Facility due 2024, $1.3 billion | Scenario, Forecast | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Line of credit terminated | $ 1,100,000,000 | $ 200,000,000 | |||||||||||||||||||||||||||||||||||
Letter of Credit | Credit agreement | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Maximum borrowing capacity | 193,300,000 | ||||||||||||||||||||||||||||||||||||
Credit agreement | Term Loan Facility, $700 Million | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Maximum borrowing capacity | $ 700,000,000 | $ 700,000,000 | |||||||||||||||||||||||||||||||||||
Extension term | 1 year | ||||||||||||||||||||||||||||||||||||
Term loan facility increase limit | $ 300,000,000 | ||||||||||||||||||||||||||||||||||||
Credit agreement | Term Loan Facility, $700 Million | LIBOR | |||||||||||||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||||||||||||
Margin on floating rate base (as a percent) | 3.75% |
Debt (Schedule of Convertible N
Debt (Schedule of Convertible Notes) (Details) - Convertible notes - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Long-Term Debt | ||
Principal | $ 1,725,000 | $ 1,725,000 |
Less: Unamortized debt discount and transaction costs | 188,764 | 312,117 |
Carrying value | 1,536,236 | 1,412,883 |
Contractual interest expense | 65,406 | 30,832 |
Amortization of debt discount and transaction costs | 118,566 | 52,518 |
Interest expense | $ 183,972 | $ 83,350 |
Debt (Debt Maturities) (Details
Debt (Debt Maturities) (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Debt Disclosure [Abstract] | |
2022 | $ 2,243,131 |
2023 | 5,376,305 |
2024 | 4,026,746 |
2025 | 2,293,638 |
2026 | 2,533,027 |
Thereafter | 4,617,493 |
Long term debt obligations | $ 21,090,340 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Nov. 12, 2021 | Jul. 31, 2021 | Dec. 31, 2017 | |
Lessee, Lease, Description [Line Items] | ||||||
Present value of lease liabilities | $ 472,275,000 | $ 213,365,000 | ||||
Finance lease obligation | 24,100,000 | 31,500,000 | ||||
Variable lease cost | 0 | |||||
Lease, right-of-use asset impairment | $ 0 | $ 65,900,000 | ||||
Pullmantur | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Percentage of subsidiary which has been sold | 51.00% | 51.00% | ||||
Building | Minimum | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Renewal term | 1 year | |||||
Building | Maximum | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Renewal term | 10 years | |||||
Berthing Agreement | Minimum | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Renewal term | 1 year | |||||
Berthing Agreement | Maximum | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Renewal term | 20 years | |||||
Port Terminal | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Purchase price | $ 220,000,000 | |||||
Cash collateral eliminated | $ 181,100,000 | |||||
Ships | Silver Dawn | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Finance lease term | 15 years | |||||
Property, plant and equipment, useful life | 30 years | |||||
Residual value | 15.00% | |||||
Present value of lease liabilities | $ 283,700,000 | |||||
Ships | Minimum | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Property, plant and equipment, useful life | 30 years | |||||
Ships | Maximum | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Property, plant and equipment, useful life | 35 years |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Finance lease right-of-use assets, net: | ||
Property and equipment, gross | $ 737,444 | $ 364,910 |
Accumulated depreciation | (94,729) | (71,288) |
Property and equipment, net | $ 642,715 | $ 293,622 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property and equipment, net | Property and equipment, net |
Operating lease right-of-use assets | $ 542,128 | $ 599,985 |
Total lease assets | 1,184,843 | 893,607 |
Finance lease liabilities: | ||
Current portion of debt | $ 51,470 | $ 51,856 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Current portion of long-term debt | Current portion of long-term debt |
Long-term debt | $ 420,805 | $ 161,509 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Long-term debt | Long-term debt |
Total finance lease liabilities | $ 472,275 | $ 213,365 |
Operating lease liabilities: | ||
Current portion of operating lease liabilities | 68,922 | 102,677 |
Long-term operating lease liabilities | 534,726 | 563,876 |
Total operating lease liabilities | 603,648 | 666,553 |
Total lease liabilities | $ 1,075,923 | $ 879,918 |
Leases - Lease Expense (Details
Leases - Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | |||
Amortization of right-of-use-assets | $ 16,814 | $ 6,901 | $ 22,044 |
Interest on lease liabilities | 2,593 | 4,429 | 8,355 |
Total lease costs | 79,555 | 102,605 | 153,330 |
Commissions, transportation and other | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease costs | 18,860 | 38,349 | 76,226 |
Other operating expenses | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease costs | 23,261 | 30,955 | 27,868 |
Marketing, selling and administrative expenses | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease costs | $ 18,027 | $ 21,971 | $ 18,837 |
Leases - Lease Terms and Discou
Leases - Lease Terms and Discount Rates (Details) | Dec. 31, 2021 | Dec. 31, 2020 |
Weighted average of the remaining lease term | ||
Operating leases | 18 years 2 months 4 days | 7 years 9 months 18 days |
Finance leases | 23 years 11 months 15 days | 41 years 2 months 12 days |
Weighted average discount rate | ||
Operating leases | 6.52% | 4.59% |
Finance leases | 5.54% | 6.89% |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ 42,759 | $ 89,179 | $ 125,307 |
Operating cash flows from finance leases | 2,593 | 4,429 | 8,355 |
Financing cash flows from finance leases | $ 23,522 | $ 19,778 | $ 32,090 |
Leases - Lease Maturities (Deta
Leases - Lease Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Operating Leases | ||
2022 | $ 101,445 | |
2023 | 104,585 | |
2024 | 85,463 | |
2025 | 80,182 | |
2026 | 74,626 | |
Thereafter | 826,226 | |
Total lease payments | 1,272,527 | |
Less: Interest | (668,879) | |
Present value of lease liabilities | 603,648 | $ 666,553 |
Finance Leases | ||
2022 | 72,076 | |
2023 | 52,340 | |
2024 | 43,497 | |
2025 | 43,089 | |
2026 | 37,900 | |
Thereafter | 632,709 | |
Total lease payments | 881,611 | |
Less: Interest | (409,336) | |
Present value of lease liabilities | $ 472,275 | $ 213,365 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Dec. 31, 2020 | May 09, 2018 | Mar. 31, 2021 | Dec. 31, 2020 | Oct. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2021 |
Equity [Abstract] | |||||||||||
Common stock issued (in shares) | 16.9 | 13 | 9.6 | ||||||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |||||
Common stock, price per share (in dollars per share) | $ 76.65 | $ 91 | $ 76.65 | $ 60 | 76.65 | ||||||
Proceeds from sale of stock | $ 868.6 | $ 1,500 | $ 994.6 | $ 557.4 | |||||||
Common stock dividends declared (in dollars per share) | $ 0.78 | $ 0.78 | $ 0.78 | $ 2.96 | |||||||
Common stock, dividends paid (in dollars per share) | $ 0.78 | $ 0.78 | |||||||||
Term of stock repurchase program | 24 months |
Stock-Based Employee Compensa_3
Stock-Based Employee Compensation (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2021USD ($)plan$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of stock-based compensation plans | plan | 1 | ||
Maximum number of award to be granted per individual (in shares) | 500,000 | ||
Maximum aggregate number of shares available under the employee stock purchase plan (in shares) | 2,800,000 | ||
Purchase price for each share of common stock as percentage of the average of the market price | 85.00% | ||
Shares of common stock issued under the ESPP plan (in shares) | 136,480 | 184,936 | 91,586 |
Weighted-average price of shares of common stock issued under the ESPP plan (in dollars per share) | $ / shares | $ 70.95 | $ 48.08 | $ 98.20 |
Total intrinsic value of stock options exercised | $ | $ 1,300,000 | $ 1,500,000 | $ 8,100,000 |
Stock options outstanding (in shares) | 0 | 49,647 | |
Director | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum value of awards that can be granted to participant in any fiscal year | $ | $ 500,000 | ||
Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
Total unrecognized compensation cost | $ | $ 0 | ||
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Maximum actual number of shares underlying each performance share award as a percentage of target performance shares | 200.00% | ||
Shares issued (in shares) | 296,798 | ||
Total unrecognized compensation cost | $ | $ 14,800,000 | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Maximum actual number of shares underlying each performance share award as a percentage of target performance shares | 200.00% | ||
Shares issued (in shares) | 350,996 | ||
Total unrecognized compensation cost | $ | $ 3,300,000 | ||
2008 Equity Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum number of shares authorized for issuance under stock-based compensation plans (in shares) | 14,000,000 |
Stock-Based Employee Compensa_4
Stock-Based Employee Compensation (Expense Recognized) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | |||
Employee stock-base compensation expense | $ 63,638 | $ 39,780 | $ 75,930 |
Marketing, selling and administrative expenses | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | |||
Employee stock-base compensation expense | $ 63,638 | $ 39,780 | $ 75,930 |
Stock-Based Employee Compensa_5
Stock-Based Employee Compensation (Options Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Number of Options | ||
Outstanding, beginning balance (in shares) | 49,647 | |
Granted (in shares) | 0 | |
Exercised (in shares) | (49,647) | |
Canceled (in shares) | 0 | |
Outstanding, ending balance (in shares) | 0 | 49,647 |
Vested at December 31, 2020 (in shares) | 0 | |
Options Exercisable at December 31, 2020 (in shares) | 0 | |
Weighted-Average Exercise Price | ||
Outstanding, beginning balance (in dollars per share) | $ 46.18 | |
Granted (in dollars per share) | 0 | |
Exercised (in dollars per share) | 46.18 | |
Canceled (in dollars per share) | 0 | |
Outstanding, ending balance (in dollars per share) | 0 | $ 46.18 |
Vested at December 31, 2020 (in dollars per share) | 0 | |
Options Exercisable at December 31, 2020 (in dollars per share) | $ 0 | |
Weighted-Average Remaining Contractual Term | ||
Outstanding (Years) | 1 month 9 days | |
Aggregate Intrinsic Value | ||
Outstanding | $ 0 | $ 1,355 |
Vested at December 31, 2020 | 0 | |
Options Exercisable at December 31, 2020 | $ 0 |
Stock-Based Employee Compensa_6
Stock-Based Employee Compensation (Other Equity) (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / shares | |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based awards conversion ratio | 1 | ||
Number of Awards | |||
Non-vested share units, beginning balance (in shares) | shares | 972,592 | ||
Granted (in shares) | shares | 568,107 | ||
Vested (in shares) | shares | (448,469) | ||
Canceled (in shares) | shares | (97,192) | ||
Non-vested share units, ending balance (in shares) | shares | 995,038 | 972,592 | |
Weighted-Average Grant Date Fair Value | |||
Non-vested share units, beginning balance (in dollars per share) | $ 91.26 | ||
Granted (in dollars per share) | 85.08 | $ 78.51 | $ 112.13 |
Vested (in dollars per share) | 90.90 | ||
Canceled (in dollars per share) | 89.73 | ||
Non-vested share units, ending balance (in dollars per share) | 88.19 | 91.26 | |
Weighted-average estimated fair value of restricted stock units granted (in dollars per share) | $ 85.08 | $ 78.51 | $ 112.13 |
Fair value of shares released on vesting of restricted stock units | $ | $ 36.1 | $ 31.2 | $ 30.8 |
Total unrecognized compensation cost | $ | $ 42.3 | ||
Weighted-average period of unrecognized compensation cost to be recognized (Years) | 1 year 1 month 28 days | ||
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based awards conversion ratio | 1 | ||
Number of Awards | |||
Non-vested share units, beginning balance (in shares) | shares | 267,722 | ||
Granted (in shares) | shares | 296,798 | ||
Vested (in shares) | shares | (66,377) | ||
Canceled (in shares) | shares | (31,791) | ||
Non-vested share units, ending balance (in shares) | shares | 466,352 | 267,722 | |
Weighted-Average Grant Date Fair Value | |||
Non-vested share units, beginning balance (in dollars per share) | $ 109.34 | ||
Granted (in dollars per share) | 84.83 | $ 95.81 | $ 87.39 |
Vested (in dollars per share) | 123.49 | ||
Canceled (in dollars per share) | 98.78 | ||
Non-vested share units, ending balance (in dollars per share) | 92.45 | 109.34 | |
Weighted-average estimated fair value of restricted stock units granted (in dollars per share) | $ 84.83 | $ 95.81 | $ 87.39 |
Fair value of shares released on vesting of restricted stock units | $ | $ 5.6 | $ 24.6 | $ 23 |
Total unrecognized compensation cost | $ | $ 14.8 | ||
Weighted-average period of unrecognized compensation cost to be recognized (Years) | 1 year 6 months 3 days | ||
Maximum actual number of shares underlying each performance share award as a percentage of target performance shares | 200.00% | ||
Restricted Stock | |||
Weighted-Average Grant Date Fair Value | |||
Granted (in dollars per share) | $ 110.21 | $ 118.08 | |
Weighted-average estimated fair value of restricted stock units granted (in dollars per share) | $ 110.21 | $ 118.08 | |
Total unrecognized compensation cost | $ | $ 3.3 | ||
Weighted-average period of unrecognized compensation cost to be recognized (Years) | 1 year 4 months 9 days | ||
Maximum actual number of shares underlying each performance share award as a percentage of target performance shares | 200.00% | ||
Restricted Stock | Senior Officers | |||
Number of Awards | |||
Non-vested share units, beginning balance (in shares) | shares | 575,432 | ||
Granted (in shares) | shares | 350,996 | ||
Vested (in shares) | shares | (60,011) | ||
Canceled (in shares) | shares | (69,205) | ||
Non-vested share units, ending balance (in shares) | shares | 797,212 | 575,432 | |
Weighted-Average Grant Date Fair Value | |||
Non-vested share units, beginning balance (in dollars per share) | $ 116.83 | ||
Granted (in dollars per share) | 84.83 | ||
Vested (in dollars per share) | 129.23 | ||
Canceled (in dollars per share) | 123.33 | ||
Non-vested share units, ending balance (in dollars per share) | 101.25 | $ 116.83 | |
Weighted-average estimated fair value of restricted stock units granted (in dollars per share) | $ 84.83 |
(Loss) Earnings Per Share (Reco
(Loss) Earnings Per Share (Reconciliation of Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |||
Net (Loss) Income attributable to Royal Caribbean Cruises Ltd. for basic and diluted (loss) earnings per share | $ (5,260,499) | $ (5,797,462) | $ 1,878,887 |
Weighted-average common shares outstanding (in shares) | 251,812 | 214,335 | 209,405 |
Dilutive effect of stock-based awards (in shares) | 0 | 0 | 525 |
Diluted weighted-average shares outstanding (in shares) | 251,812 | 214,335 | 209,930 |
Basic (loss) earnings per share (in dollars per share) | $ (20.89) | $ (27.05) | $ 8.97 |
Diluted (loss) earnings per share (in dollars per share) | $ (20.89) | $ (27.05) | $ 8.95 |
(Loss) Earnings Per Share (Anti
(Loss) Earnings Per Share (Antidilutive Shares) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |||
Antidilutive shares (in shares) | 504,250,000 | 282,118,000 | 0 |
Retirement Plan (Details)
Retirement Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |||
Non-elective annual employer contribution, percentage of participants' eligible earnings | 3.00% | ||
Pension expenses | $ 17.9 | $ 18.4 | $ 21.2 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Taxes | |||
Foreign operating loss carryforwards | $ 56.4 | ||
Valuation allowance | 20.8 | ||
Net operating losses subject to expiration | 11.6 | ||
Other Income (Expense) | |||
Income Taxes | |||
Income tax expense (benefit) | $ (45.2) | $ (15) | $ 32.6 |
Changes in Accumulated Other _3
Changes in Accumulated Other Comprehensive Income (Loss) (Changes by Component) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance | $ 8,760,669 | $ 12,163,846 | $ 11,105,461 |
Other comprehensive (loss) income before reclassifications | 3,826 | (91,858) | (165,553) |
Amounts reclassified from accumulated other comprehensive loss | 24,630 | 150,230 | (4,426) |
Net current-period other comprehensive (loss) income | 28,456 | 58,372 | (169,979) |
Balance | 5,085,556 | 8,760,669 | 12,163,846 |
Changes related to cash flow derivative hedges | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance | (650,519) | (688,529) | (537,216) |
Other comprehensive (loss) income before reclassifications | (16,667) | (41,109) | (146,108) |
Amounts reclassified from accumulated other comprehensive loss | 20,713 | 79,119 | (5,205) |
Net current-period other comprehensive (loss) income | 4,046 | 38,010 | (151,313) |
Balance | (646,473) | (650,519) | (688,529) |
Changes in defined benefit plans | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance | (65,542) | (45,558) | (26,023) |
Other comprehensive (loss) income before reclassifications | 4,790 | (22,051) | (20,314) |
Amounts reclassified from accumulated other comprehensive loss | 3,917 | 2,067 | 779 |
Net current-period other comprehensive (loss) income | 8,707 | (19,984) | (19,535) |
Balance | (56,835) | (65,542) | (45,558) |
Foreign currency translation adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance | (23,280) | (63,626) | (64,495) |
Other comprehensive (loss) income before reclassifications | 15,703 | (28,698) | 869 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 69,044 | 0 |
Net current-period other comprehensive (loss) income | 15,703 | 40,346 | 869 |
Balance | (7,577) | (23,280) | (63,626) |
Accumulated other comprehensive (loss) income | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance | (739,341) | (797,713) | (627,734) |
Balance | $ (710,885) | $ (739,341) | $ (797,713) |
Changes in Accumulated Other _4
Changes in Accumulated Other Comprehensive Income (Loss) (Reclassifications) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Interest expense, net of interest capitalized | $ (1,291,753) | $ (844,238) | $ (408,513) | |||
Depreciation and amortization expenses | (1,292,878) | (1,279,254) | (1,245,942) | |||
Other income (expense) | [1] | 20,284 | (137,085) | (24,513) | ||
Fuel | (385,322) | (371,015) | (697,962) | |||
Other operating | (2,657,512) | (2,765,108) | (6,062,765) | |||
Other operating | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Other operating | (945,205) | (942,232) | (1,405,698) | |||
Reclassification out of accumulated other comprehensive income (loss) | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Total reclassifications for the period | (24,630) | (150,230) | 4,426 | |||
Reclassification out of accumulated other comprehensive income (loss) | Gain (loss) on cash flow derivative hedges: | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Total reclassifications for the period | (20,713) | (79,119) | 5,205 | |||
Reclassification out of accumulated other comprehensive income (loss) | Gain (loss) on cash flow derivative hedges: | Interest rate swaps | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Interest expense, net of interest capitalized | (43,185) | (25,267) | (4,289) | |||
Reclassification out of accumulated other comprehensive income (loss) | Gain (loss) on cash flow derivative hedges: | Foreign currency forward contracts | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Depreciation and amortization expenses | (15,359) | (14,679) | (14,063) | |||
Other income (expense) | (2,797) | (7,315) | (5,080) | |||
Reclassification out of accumulated other comprehensive income (loss) | Gain (loss) on cash flow derivative hedges: | Fuel swaps | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Other income (expense) | (409) | 3,549 | (1,292) | |||
Fuel | 41,037 | (35,407) | 29,929 | |||
Reclassification out of accumulated other comprehensive income (loss) | Actuarial loss | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Payroll and related | (3,917) | (2,067) | (779) | |||
Reclassification out of accumulated other comprehensive income (loss) | Amortization of defined benefit plans: | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Total reclassifications for the period | (3,917) | $ (2,067) | $ (779) | |||
Reclassification out of accumulated other comprehensive income (loss) | Foreign currency translation adjustments | Other operating | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Other operating | $ 0 | $ (69,044) | $ 0 | |||
[1] | Including a $62.6 million net loss related to the 2021 elimination of the Silversea Cruises reporting lag. |
Changes in Accumulated Other _5
Changes in Accumulated Other Comprehensive Income (Loss) (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Gain recognized | $ 5,810 | |
Pullmantur | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other expense | $ 69,000 | |
Deferred currency translation loss | 92,600 | |
Gain recognized | $ 23,600 |
Fair Value Measurements and D_3
Fair Value Measurements and Derivative Instruments (Nonrecurring) (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Level 1 | ||
Assets: | ||
Cash and cash equivalents | $ 2,701,770 | $ 3,684,474 |
Total Assets | 2,701,770 | 3,684,474 |
Liabilities: | ||
Long-term debt (including current portion of long-term debt) | 0 | 0 |
Total Liabilities | 0 | 0 |
Level 2 | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Total Assets | 0 | 0 |
Liabilities: | ||
Long-term debt (including current portion of long-term debt) | 22,376,480 | 20,981,040 |
Total Liabilities | 22,376,480 | 20,981,040 |
Level 3 | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Total Assets | 0 | 0 |
Liabilities: | ||
Long-term debt (including current portion of long-term debt) | 0 | 0 |
Total Liabilities | 0 | 0 |
Total Carrying Amount | ||
Assets: | ||
Cash and cash equivalents | 2,701,770 | 3,684,474 |
Total Assets | 2,701,770 | 3,684,474 |
Liabilities: | ||
Long-term debt (including current portion of long-term debt) | 20,618,065 | 18,706,359 |
Total Liabilities | 20,618,065 | 18,706,359 |
Total Fair Value | ||
Assets: | ||
Cash and cash equivalents | 2,701,770 | 3,684,474 |
Total Assets | 2,701,770 | 3,684,474 |
Liabilities: | ||
Long-term debt (including current portion of long-term debt) | 22,376,480 | 20,981,040 |
Total Liabilities | $ 22,376,480 | $ 20,981,040 |
Fair Value Measurements and D_4
Fair Value Measurements and Derivative Instruments (Recurring) (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Total Fair Value | ||
Assets: | ||
Derivative financial instruments | $ 69,808 | $ 108,539 |
Total Assets | 69,808 | 108,539 |
Liabilities: | ||
Derivative financial instruments | 200,541 | 259,705 |
Total Liabilities | 200,541 | 259,705 |
Level 1 | ||
Assets: | ||
Derivative financial instruments | 0 | 0 |
Total Assets | 0 | 0 |
Liabilities: | ||
Derivative financial instruments | 0 | 0 |
Total Liabilities | 0 | 0 |
Level 2 | ||
Assets: | ||
Derivative financial instruments | 69,808 | 108,539 |
Total Assets | 69,808 | 108,539 |
Liabilities: | ||
Derivative financial instruments | 200,541 | 259,705 |
Total Liabilities | 200,541 | 259,705 |
Level 3 | ||
Assets: | ||
Derivative financial instruments | 0 | 0 |
Total Assets | 0 | 0 |
Liabilities: | ||
Derivative financial instruments | 0 | 0 |
Total Liabilities | $ 0 | $ 0 |
Fair Value Measurements and D_5
Fair Value Measurements and Derivative Instruments (Nonfinancial Instruments) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Silversea goodwill, impairment | $ 576,208,000 | ||||
Right-of-use assets, impairment | $ 0 | 65,900,000 | |||
Total, impairment | 82,001,000 | 1,566,380,000 | $ 0 | ||
Indefinite-life intangible assets, net carrying value | $ 321,475,000 | 321,475,000 | 321,475,000 | ||
Silversea Cruises (1) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Silversea goodwill, impairment | $ 576,200,000 | 576,208,000 | |||
Fair Value, Measurements, Nonrecurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Indefinite-life intangible asset, impairment | 30,800,000 | ||||
Long-lived assets, impairment | 55,213,000 | 727,063,000 | |||
Right-of-use assets, impairment | 65,909,000 | ||||
Equity method investments, impairment | 39,735,000 | ||||
Total, impairment | 55,213,000 | 1,439,715,000 | |||
Fair Value, Measurements, Nonrecurring | Silversea Cruises (1) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Silversea goodwill, impairment | 576,208,000 | ||||
Fair Value, Measurements, Nonrecurring | Total Carrying Amount | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Indefinite-life intangible asset | 318,700,000 | ||||
Long-lived assets | 0 | 0 | 577,193,000 | ||
Right-of-use assets | 67,265,000 | ||||
Equity method investments | 0 | ||||
Total | 0 | 0 | 1,471,736,000 | ||
Fair Value, Measurements, Nonrecurring | Total Carrying Amount | Silversea Cruises (1) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Silversea Goodwill | 508,578,000 | ||||
Fair Value, Measurements, Nonrecurring | Total Fair Value | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Indefinite-life intangible asset | 318,700,000 | ||||
Long-lived assets | 0 | 0 | 577,193,000 | ||
Right-of-use assets | 67,265,000 | ||||
Equity method investments | 0 | ||||
Total | 0 | 0 | 1,471,736,000 | ||
Fair Value, Measurements, Nonrecurring | Total Fair Value | Silversea Cruises (1) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Silversea Goodwill | 508,578,000 | ||||
Fair Value, Measurements, Nonrecurring | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Indefinite-life intangible asset | 318,700,000 | ||||
Long-lived assets | 0 | 0 | 577,193,000 | ||
Right-of-use assets | 67,265,000 | ||||
Equity method investments | 0 | ||||
Total | $ 0 | $ 0 | 1,471,736,000 | ||
Fair Value, Measurements, Nonrecurring | Level 3 | Discount rate | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Indefinite-lived intangible assets, measurement input | 13.25% | 13.25% | |||
Fair Value, Measurements, Nonrecurring | Level 3 | Royalty fee percentage | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Indefinite-lived intangible assets, measurement input | 3.00% | 3.00% | |||
Fair Value, Measurements, Nonrecurring | Level 3 | Silversea Cruises (1) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Silversea Goodwill | $ 508,578,000 | ||||
Fair Value, Measurements, Nonrecurring | Level 3 | Silversea Cruises (1) | Weighted average cost of capital | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Goodwill, measurement input | 12.75% | 12.75% |
Fair Value Measurements and D_6
Fair Value Measurements and Derivative Instruments (Offsetting of Derivative Instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Offsetting of Financial Assets under Master Netting Agreements [Abstract] | ||
Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheet | $ 69,808 | $ 108,539 |
Gross Amount of Eligible Offsetting Recognized Derivative Liabilities | (67,995) | (80,743) |
Cash Collateral Received | 0 | 0 |
Net Amount of Derivative Assets | 1,813 | 27,796 |
Offsetting of Financial Liabilities under Master Netting Agreements [Abstract] | ||
Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheet | (200,541) | (259,705) |
Gross Amount of Eligible Offsetting Recognized Derivative Assets | 67,995 | 80,743 |
Cash Collateral Pledged | 44,411 | 57,273 |
Net Amount of Derivative Liabilities | $ (88,135) | $ (121,689) |
Fair Value Measurements and D_7
Fair Value Measurements and Derivative Instruments (Concentrations of Credit Risk) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative instrument, credit risk exposure | $ 1.9 | $ 26.9 |
Fair Value Measurements and D_8
Fair Value Measurements and Derivative Instruments (Derivative Instruments) (Details) € in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2021EUR (€) | |
Fair Value Disclosures [Abstract] | ||||
Maximum length of time hedged in derivative contract | 3 years | |||
Derivative instruments disclosure | ||||
Aggregate cost of ships expected to enter service | $ 12,400 | |||
Deposit for the purchase of ships expected to enter service | $ 800.2 | |||
Percentage of aggregate cost exposed to fluctuations in the euro exchange rate | 59.00% | 66.30% | 59.00% | |
Exchange gains (losses) recorded in other income (expense) | $ 24.3 | $ (1.5) | $ 0.4 | |
Foreign currency forward | Not Designated as Hedging Instrument | ||||
Derivative instruments disclosure | ||||
Notional amount | 483.2 | |||
Change in fair value of foreign currency forward contracts recognized in earnings | (30.9) | (19) | 1.4 | |
Exchange gains (losses) recorded in other income (expense) | (1.5) | $ 0.4 | ||
Foreign currency forward | Designated as Hedging Instrument | ||||
Derivative instruments disclosure | ||||
Notional amount | 278.6 | € 245 | ||
Foreign exchange contracts | ||||
Derivative instruments disclosure | ||||
Notional amount | $ 3,400 | $ 3,100 |
Fair Value Measurements and D_9
Fair Value Measurements and Derivative Instruments (Interest Rate Risk) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed interest rate on long-term debt | 65.70% | 64.50% |
Interest rate swaps | ||
Interest Rate Cash Flow Hedges [Abstract] | ||
Notional amount | $ 2,900,000 | $ 3,400,000 |
Fair value hedging | Interest rate swaps | ||
Interest Rate Fair Value Hedges [Abstract] | ||
Long-term debt | 650,000 | |
Cash flow hedge | Interest rate swaps | ||
Interest Rate Cash Flow Hedges [Abstract] | ||
Notional Amount | 2,292,226 | |
Fixed Rate 5.25% Debt | Fair value hedging | Interest rate swaps | ||
Interest Rate Fair Value Hedges [Abstract] | ||
Long-term debt | $ 650,000 | |
Long term debt, stated interest rate (as a percent) | 5.25% | |
Celebrity Reflection term loan | Cash flow hedge | Interest rate swaps | ||
Interest Rate Cash Flow Hedges [Abstract] | ||
Notional Amount | $ 163,625 | |
All-in Swap Fixed Rate | 2.85% | |
Quantum of the Seas term loan | Cash flow hedge | Interest rate swaps | ||
Interest Rate Cash Flow Hedges [Abstract] | ||
Notional Amount | $ 306,250 | |
All-in Swap Fixed Rate | 3.74% | |
Anthem of the Seas term loan | Cash flow hedge | Interest rate swaps | ||
Interest Rate Cash Flow Hedges [Abstract] | ||
Notional Amount | $ 332,292 | |
All-in Swap Fixed Rate | 3.86% | |
Ovation of the Seas term loan | Cash flow hedge | Interest rate swaps | ||
Interest Rate Cash Flow Hedges [Abstract] | ||
Notional Amount | $ 449,583 | |
All-in Swap Fixed Rate | 3.16% | |
Harmony of the Seas term loan | Cash flow hedge | Interest rate swaps | ||
Interest Rate Cash Flow Hedges [Abstract] | ||
Notional Amount | $ 427,142 | |
All-in Swap Fixed Rate | 2.26% | |
Odyssey of the Seas term loan | Cash flow hedge | Interest rate swaps | ||
Interest Rate Cash Flow Hedges [Abstract] | ||
Notional Amount | $ 421,667 | |
All-in Swap Fixed Rate | 3.21% | |
Odyssey of the Seas term loan | Cash flow hedge | Interest rate swaps | ||
Interest Rate Cash Flow Hedges [Abstract] | ||
Notional Amount | $ 191,667 | |
All-in Swap Fixed Rate | 2.84% | |
London Interbank Offered Rate (LIBOR) | Fixed Rate 5.25% Debt | Fair value hedging | Interest rate swaps | ||
Interest Rate Fair Value Hedges [Abstract] | ||
Swap Floating Rate: LIBOR plus | 3.63% | |
All-in Swap Floating Rate | 3.79% | |
London Interbank Offered Rate (LIBOR) | Celebrity Reflection term loan | Cash flow hedge | Interest rate swaps | ||
Interest Rate Cash Flow Hedges [Abstract] | ||
Debt Floating Rate | 0.40% | |
London Interbank Offered Rate (LIBOR) | Quantum of the Seas term loan | Cash flow hedge | Interest rate swaps | ||
Interest Rate Cash Flow Hedges [Abstract] | ||
Debt Floating Rate | 1.30% | |
London Interbank Offered Rate (LIBOR) | Anthem of the Seas term loan | Cash flow hedge | Interest rate swaps | ||
Interest Rate Cash Flow Hedges [Abstract] | ||
Debt Floating Rate | 1.30% | |
London Interbank Offered Rate (LIBOR) | Ovation of the Seas term loan | Cash flow hedge | Interest rate swaps | ||
Interest Rate Cash Flow Hedges [Abstract] | ||
Debt Floating Rate | 1.00% | |
London Interbank Offered Rate (LIBOR) | Odyssey of the Seas term loan | Cash flow hedge | Interest rate swaps | ||
Interest Rate Cash Flow Hedges [Abstract] | ||
Debt Floating Rate | 0.96% | |
London Interbank Offered Rate (LIBOR) | Odyssey of the Seas term loan | Cash flow hedge | Interest rate swaps | ||
Interest Rate Cash Flow Hedges [Abstract] | ||
Debt Floating Rate | 0.96% | |
Euro Interbank Offered Rate (EURIBOR) | Harmony of the Seas term loan | Cash flow hedge | Interest rate swaps | ||
Interest Rate Cash Flow Hedges [Abstract] | ||
Debt Floating Rate | 1.15% |
Fair Value Measurements and _10
Fair Value Measurements and Derivative Instruments (Non-Derivative Instruments) (Details) - Foreign currency debt $ in Thousands, € in Millions | 12 Months Ended | |||
Dec. 31, 2021EUR (€) | Dec. 31, 2021USD ($) | Dec. 31, 2020EUR (€) | Dec. 31, 2020USD ($) | |
Net investment hedge | ||||
Carrying Value of Non-derivative instrument Designated as hedging instrument | $ 110,313 | $ 263,031 | ||
Pullmantur and TUI Cruises | ||||
Net investment hedge | ||||
Carrying Value of Non-derivative instrument Designated as hedging instrument | € 97 | $ 110,300 | € 215 | $ 263,000 |
Fair Value Measurements and _11
Fair Value Measurements and Derivative Instruments (Fuel Price Risk) (Details) - Fuel Price Risk $ in Millions | 12 Months Ended | |
Dec. 31, 2021USD ($)tT | Dec. 31, 2020USD ($)tT | |
Derivative instruments disclosure | ||
Discontinued cash flow hedge, nonmonetary amount | T | 200,000 | 600,000 |
Estimated unrealized net gains (losses) associated with cash flow hedges pertaining to fuel swap agreements expected to be reclassified to earnings from other accumulated comprehensive income (loss) | $ | $ 23.8 | $ (13.1) |
Other income (expense) | ||
Derivative instruments disclosure | ||
Discontinued cash flow hedge, reclassification loss | $ | $ 0.7 | $ 104.4 |
2022 | ||
Derivative instruments disclosure | ||
Fuel Swap Agreements (metric tons) | T | 821,850,000 | 389,650,000 |
Percentage of projected requirements | 54.00% | 23.00% |
2022 | Not Designated as Hedging Instrument | ||
Derivative instruments disclosure | ||
Discontinued cash flow hedge, nonmonetary amount | t | 115,950 | |
Fuel Swap Agreements (metric tons) | t | 231,900,000 | 14,650,000 |
Nonmonetary amount since inception | t | 115,950 | |
2023 | ||
Derivative instruments disclosure | ||
Fuel Swap Agreements (metric tons) | T | 249,050,000 | 82,400,000 |
Percentage of projected requirements | 15.00% | 5.00% |
Fair Value Measurements and _12
Fair Value Measurements and Derivative Instruments (Balance Sheet) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Asset Derivatives | ||
Asset Derivatives | $ 69,808 | $ 108,539 |
Liability Derivatives | ||
Liability Derivatives | 200,541 | 259,705 |
Designated as Hedging Instrument | ||
Asset Derivatives | ||
Asset Derivatives | 61,276 | 107,705 |
Liability Derivatives | ||
Liability Derivatives | 196,066 | 240,573 |
Not Designated as Hedging Instrument | ||
Asset Derivatives | ||
Asset Derivatives | 8,532 | 834 |
Liability Derivatives | ||
Liability Derivatives | 4,475 | 19,132 |
Interest rate swaps | Designated as Hedging Instrument | Other Assets | ||
Asset Derivatives | ||
Asset Derivatives | 0 | 17,271 |
Interest rate swaps | Designated as Hedging Instrument | Derivative Financial Instruments | ||
Asset Derivatives | ||
Asset Derivatives | 6,478 | 261 |
Liability Derivatives | ||
Liability Derivatives | 0 | 0 |
Interest rate swaps | Designated as Hedging Instrument | Other long-term Liabilities | ||
Liability Derivatives | ||
Liability Derivatives | 62,080 | 144,653 |
Foreign currency forward contracts | Designated as Hedging Instrument | Other Assets | ||
Asset Derivatives | ||
Asset Derivatives | 2,070 | 20,836 |
Foreign currency forward contracts | Designated as Hedging Instrument | Derivative Financial Instruments | ||
Asset Derivatives | ||
Asset Derivatives | 7,357 | 63,894 |
Liability Derivatives | ||
Liability Derivatives | 116,027 | 13,294 |
Foreign currency forward contracts | Designated as Hedging Instrument | Other long-term Liabilities | ||
Liability Derivatives | ||
Liability Derivatives | 8,813 | 7,306 |
Foreign currency forward contracts | Not Designated as Hedging Instrument | Other Assets | ||
Asset Derivatives | ||
Asset Derivatives | 0 | 0 |
Foreign currency forward contracts | Not Designated as Hedging Instrument | Derivative Financial Instruments | ||
Asset Derivatives | ||
Asset Derivatives | 0 | 0 |
Liability Derivatives | ||
Liability Derivatives | 0 | 160 |
Foreign currency forward contracts | Not Designated as Hedging Instrument | Other long-term Liabilities | ||
Liability Derivatives | ||
Liability Derivatives | 0 | 0 |
Fuel swaps | Designated as Hedging Instrument | Other Assets | ||
Asset Derivatives | ||
Asset Derivatives | 13,452 | 350 |
Fuel swaps | Designated as Hedging Instrument | Derivative Financial Instruments | ||
Asset Derivatives | ||
Asset Derivatives | 31,919 | 5,093 |
Liability Derivatives | ||
Liability Derivatives | 7,944 | 25,203 |
Fuel swaps | Designated as Hedging Instrument | Other long-term Liabilities | ||
Liability Derivatives | ||
Liability Derivatives | 1,202 | 50,117 |
Fuel swaps | Not Designated as Hedging Instrument | Other Assets | ||
Asset Derivatives | ||
Asset Derivatives | 102 | 0 |
Fuel swaps | Not Designated as Hedging Instrument | Derivative Financial Instruments | ||
Asset Derivatives | ||
Asset Derivatives | 8,430 | 834 |
Liability Derivatives | ||
Liability Derivatives | 3,264 | 18,028 |
Fuel swaps | Not Designated as Hedging Instrument | Other long-term Liabilities | ||
Liability Derivatives | ||
Liability Derivatives | $ 1,211 | $ 944 |
Fair Value Measurements and _13
Fair Value Measurements and Derivative Instruments (Income Statement) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fuel Expense | $ 385,322 | $ 371,015 | $ 697,962 | |
Depreciation and amortization expenses | 1,292,878 | 1,279,254 | 1,245,942 | |
Interest Income (Expense) | (1,274,980) | (823,202) | (381,568) | |
Other Income (Expense) | [1] | 20,284 | (137,085) | (24,513) |
Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income | (20,713) | (79,119) | ||
Interest contracts | Interest Income (Expense) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income | (43,185) | (25,267) | ||
Fuel swaps | Other Income (Expense) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income | (409) | 3,549 | ||
Fuel swaps | Fuel Expense | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income | 41,037 | (35,407) | ||
Foreign exchange contracts | Other Income (Expense) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income | (2,797) | (7,315) | ||
Foreign exchange contracts | Depreciation and Amortization Expenses | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income | (15,359) | (14,679) | ||
Fair value hedging | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gain (loss) on fair value hedge | 11,083 | (18,813) | (23,464) | |
Change in unrealized gain (loss) on fair value hedging instruments | (1,349) | 23,819 | 16,607 | |
Fair value hedging | Interest contracts | Interest Income (Expense) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gain (loss) on fair value hedge | 11,083 | (18,813) | (23,464) | |
Change in unrealized gain (loss) on fair value hedging instruments | (1,349) | 23,819 | 16,607 | |
Fair value hedging | Interest contracts | Other Income (Expense) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gain (loss) on fair value hedge | 0 | 0 | 0 | |
Change in unrealized gain (loss) on fair value hedging instruments | $ 0 | $ 0 | 0 | |
Cash flow hedge | Interest contracts | Interest Income (Expense) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income | (4,289) | |||
Cash flow hedge | Fuel swaps | Other Income (Expense) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income | (1,292) | |||
Cash flow hedge | Fuel swaps | Fuel Expense | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income | 29,929 | |||
Cash flow hedge | Foreign exchange contracts | Other Income (Expense) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income | (5,080) | |||
Cash flow hedge | Foreign exchange contracts | Depreciation and Amortization Expenses | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income | $ (14,063) | |||
[1] | Including a $62.6 million net loss related to the 2021 elimination of the Silversea Cruises reporting lag. |
Fair Value Measurements and _14
Fair Value Measurements and Derivative Instruments (Non-Derivative Balance Sheet) (Details) - Foreign currency debt - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative instruments disclosure | ||
Carrying Value | $ 110,313 | $ 263,031 |
Current portion of long-term debt | ||
Derivative instruments disclosure | ||
Carrying Value | 75,518 | 43,696 |
Long-term debt | ||
Derivative instruments disclosure | ||
Carrying Value | $ 34,795 | $ 219,335 |
Fair Value Measurements and _15
Fair Value Measurements and Derivative Instruments (Income Statement Hedging Instruments) (Details) - Fair value hedging - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements | |||
Amount of Gain (Loss) Recognized in Income on Derivative | $ (1,349) | $ 23,819 | $ 16,607 |
Amount of Gain (Loss) Recognized in Income on Hedged Item | 11,083 | (18,813) | (23,464) |
Interest rate swaps | Interest expense (income), net of interest capitalized | |||
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements | |||
Amount of Gain (Loss) Recognized in Income on Derivative | (1,349) | 23,819 | 16,607 |
Amount of Gain (Loss) Recognized in Income on Hedged Item | $ 11,083 | $ (18,813) | $ (23,464) |
Fair Value Measurements and _16
Fair Value Measurements and Derivative Instruments (Long-term debt) (Details) - Designated as Hedging Instrument - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Amount of the Hedged Liabilities | $ 655,502 | $ 700,331 |
Cumulative amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liabilities | $ 6,428 | $ 17,512 |
Fair Value Measurements and _17
Fair Value Measurements and Derivative Instruments (Designated Cash Flow Hedges) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements | ||||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivative | $ (16,667) | $ (41,109) | ||
Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income | (20,713) | (79,119) | ||
Interest expense | (1,291,753) | (844,238) | $ (408,513) | |
Depreciation and amortization expenses | (1,292,878) | (1,279,254) | (1,245,942) | |
Other Income (Expense) | [1] | 20,284 | (137,085) | (24,513) |
Fuel | (385,322) | (371,015) | (697,962) | |
Net Income (loss) | (5,260,499) | (5,797,462) | 1,878,887 | |
Interest rate swaps | ||||
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements | ||||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivative | 45,572 | (112,960) | ||
Interest rate swaps | Interest Income (Expense) | ||||
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements | ||||
Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income | (43,185) | (25,267) | ||
Foreign currency forward contracts | ||||
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements | ||||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivative | (203,129) | 130,426 | ||
Foreign currency forward contracts | Depreciation and Amortization Expenses | ||||
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements | ||||
Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income | (15,359) | (14,679) | ||
Foreign currency forward contracts | ||||
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements | ||||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivative | 0 | 0 | ||
Foreign currency forward contracts | Other income (expense) | ||||
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements | ||||
Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income | (2,797) | (7,315) | ||
Fuel swaps | ||||
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements | ||||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivative | 0 | 0 | ||
Fuel swaps | Other income (expense) | ||||
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements | ||||
Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income | (409) | 3,549 | ||
Fuel swaps | Fuel | ||||
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements | ||||
Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income | 41,037 | (35,407) | ||
Fuel swaps | ||||
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements | ||||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivative | 140,890 | (58,575) | ||
Fuel swaps | Fuel | ||||
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements | ||||
Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income | 41,037 | (35,407) | ||
Cash flow hedge | ||||
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements | ||||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivative | (146,108) | |||
Cash flow hedge | Interest rate swaps | ||||
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements | ||||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivative | (72,732) | |||
Cash flow hedge | Foreign currency forward contracts | ||||
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements | ||||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivative | (148,881) | |||
Cash flow hedge | Foreign currency forward contracts | ||||
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements | ||||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivative | 0 | |||
Cash flow hedge | Fuel swaps | ||||
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements | ||||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivative | 0 | |||
Cash flow hedge | Fuel swaps | ||||
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements | ||||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivative | 75,505 | |||
Reclassification out of accumulated other comprehensive income (loss) | Gain (loss) on cash flow derivative hedges: | ||||
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements | ||||
Net Income (loss) | 5,205 | |||
Reclassification out of accumulated other comprehensive income (loss) | Gain (loss) on cash flow derivative hedges: | Interest rate swaps | ||||
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements | ||||
Interest expense | (43,185) | (25,267) | (4,289) | |
Reclassification out of accumulated other comprehensive income (loss) | Gain (loss) on cash flow derivative hedges: | Foreign currency forward contracts | ||||
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements | ||||
Depreciation and amortization expenses | (15,359) | (14,679) | (14,063) | |
Other Income (Expense) | (2,797) | (7,315) | (5,080) | |
Reclassification out of accumulated other comprehensive income (loss) | Gain (loss) on cash flow derivative hedges: | Foreign currency forward contracts | ||||
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements | ||||
Other Income (Expense) | (5,080) | |||
Reclassification out of accumulated other comprehensive income (loss) | Gain (loss) on cash flow derivative hedges: | Fuel swaps | ||||
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements | ||||
Other Income (Expense) | (409) | 3,549 | (1,292) | |
Fuel | $ 41,037 | $ (35,407) | 29,929 | |
Reclassification out of accumulated other comprehensive income (loss) | Gain (loss) on cash flow derivative hedges: | Fuel swaps | ||||
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements | ||||
Fuel | $ 29,929 | |||
[1] | Including a $62.6 million net loss related to the 2021 elimination of the Silversea Cruises reporting lag. |
Fair Value Measurements and _18
Fair Value Measurements and Derivative Instruments (Net Investment Excluded) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net [Abstract] | ||
Net inception fair value at January 1, 2021 | $ (1,916) | |
Amount of gain recognized in income on derivatives for the year ended December 31, 2021 | $ 5,810 | |
Amount of loss remaining to be amortized in accumulated other comprehensive loss as of December 31, 2021 | (4,448) | |
Fair value at December 31, 2021 | $ (554) |
Fair Value Measurements and _19
Fair Value Measurements and Derivative Instruments (Non-Derivative Net Investment) (Details) - Foreign currency debt - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net investment hedge | |||
Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) | $ 7,837 | $ (28,062) | |
Amount of Gain (Loss) Recognized In Other Comprehensive Income (Loss) | $ 6,111 |
Fair Value Measurements and _20
Fair Value Measurements and Derivative Instruments (Derivatives Not Designated as Hedging Instruments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative instruments disclosure | |||
Amount of Gain (Loss) Recognized in Income on Derivative | $ 2,817 | $ (121,701) | $ 1,431 |
Foreign exchange contracts | Other Income (Expense) | |||
Derivative instruments disclosure | |||
Amount of Gain (Loss) Recognized in Income on Derivative | (30,903) | (18,961) | 1,356 |
Fuel swaps | Other Income (Expense) | |||
Derivative instruments disclosure | |||
Amount of Gain (Loss) Recognized in Income on Derivative | 33,720 | (102,740) | 112 |
Fuel swaps | Fuel | |||
Derivative instruments disclosure | |||
Amount of Gain (Loss) Recognized in Income on Derivative | $ 0 | $ 0 | $ (37) |
Fair Value Measurements and _21
Fair Value Measurements and Derivative Instruments (Credit Features) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($)derivative | |
Derivative instruments disclosure | |
Collateral | $ 91 |
Interest contracts | |
Derivative instruments disclosure | |
Number of derivatives requiring collateral to be posted | derivative | 6 |
Term of contract (at least) | 5 years |
Collateral | $ 44.4 |
Commitments and Contingencies_2
Commitments and Contingencies (Narrative) (Details) | 1 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2021EUR (€)berth | Dec. 31, 2019 | Sep. 30, 2019agreement | Aug. 31, 2019lawsuit | Dec. 31, 2021USD ($)shipberth | Dec. 31, 2017EUR (€)ship | Dec. 31, 2021EUR (€)shipberth | Dec. 31, 2020 | |
Commitments and Contingencies | ||||||||
Approximate berths | 47,260 | 47,260 | ||||||
Aggregate cost of ships expected to enter service | $ | $ 12,400,000,000 | |||||||
Deposit for the purchase of ships expected to enter service | $ | $ 800,200,000 | |||||||
Percentage of aggregate cost exposed to fluctuations in the euro exchange rate | 59.00% | 59.00% | 66.30% | |||||
Number of claims filed | lawsuit | 2 | |||||||
Icon-class ships | ||||||||
Commitments and Contingencies | ||||||||
Number of ships under construction | ship | 2 | |||||||
Icon of the Seas | ||||||||
Commitments and Contingencies | ||||||||
Approximate berths | 5,600 | 5,600 | ||||||
Icon Class, Unnamed Ship Two | ||||||||
Commitments and Contingencies | ||||||||
Approximate berths | 5,600 | 5,600 | ||||||
Third and Fourth Edge Class Ships and Fifth Oasis Class Ship | ||||||||
Commitments and Contingencies | ||||||||
Bank financing commitment percentage | 80.00% | |||||||
Third Edge Class Ship | ||||||||
Commitments and Contingencies | ||||||||
Approximate berths | 3,250 | 3,250 | ||||||
Fourth Edge Class Ship | ||||||||
Commitments and Contingencies | ||||||||
Approximate berths | 3,250 | 3,250 | ||||||
Fifth Oasis Class Ship | ||||||||
Commitments and Contingencies | ||||||||
Approximate berths | 5,700 | 5,700 | ||||||
Credit agreement | ||||||||
Commitments and Contingencies | ||||||||
Number of months considered to determine requirement of prepayment of debts | 24 months | |||||||
Sixth Oasis Class Ship Term Loan | Sixth Oasis Class Ship | ||||||||
Commitments and Contingencies | ||||||||
Bank financing commitment percentage | 80.00% | |||||||
Third Icon Class Ship Term Loan | Third Icon Class Ship | ||||||||
Commitments and Contingencies | ||||||||
Bank financing commitment percentage | 80.00% | |||||||
Royal Caribbean International | Sixth Oasis Class Ship | ||||||||
Commitments and Contingencies | ||||||||
Approximate berths | 5,700 | 5,700 | ||||||
Royal Caribbean International | Third Icon Class Ship | ||||||||
Commitments and Contingencies | ||||||||
Approximate berths | 5,600 | 5,600 | ||||||
Royal Caribbean International | Cruise ships on order | Oasis-class ship | ||||||||
Commitments and Contingencies | ||||||||
Number of ships under construction | ship | 2 | 2 | ||||||
Royal Caribbean International | Cruise ships on order | Icon-class ships | ||||||||
Commitments and Contingencies | ||||||||
Number of ships under construction | ship | 3 | 3 | ||||||
Approximate berths | 28,200 | 28,200 | ||||||
Royal Caribbean International | Cruise ships on order | Silversea Cruises (1) | ||||||||
Commitments and Contingencies | ||||||||
Number of ships under construction | ship | 2 | 2 | ||||||
Approximate berths | 1,460 | 1,460 | ||||||
Celebrity Cruise Ships | Cruise ships on order | Three project edge class ships | ||||||||
Commitments and Contingencies | ||||||||
Number of ships under construction | ship | 2 | 2 | ||||||
Approximate berths | 6,500 | 6,500 | ||||||
Silversea Cruises (1) | Silver Nova | ||||||||
Commitments and Contingencies | ||||||||
Approximate berths | 730 | 730 | ||||||
Silversea Cruises (1) | Evolution Class, Unnamed Ship Two | ||||||||
Commitments and Contingencies | ||||||||
Approximate berths | 730 | 730 | ||||||
Euler Hermes | Third Icon Class Ship | ||||||||
Commitments and Contingencies | ||||||||
Percentage of unsecured term loan guaranteed by an export credit agency | 95.00% | |||||||
BpiFAE | Sixth Oasis Class Ship | ||||||||
Commitments and Contingencies | ||||||||
Percentage of unsecured term loan guaranteed by an export credit agency | 100.00% | |||||||
BpiFAE | Third and Fourth Edge Class Ships and Fifth Oasis Class Ship | ||||||||
Commitments and Contingencies | ||||||||
Percentage of unsecured term loan guaranteed by an export credit agency | 100.00% | |||||||
Finnvera | Third Icon Class Ship | ||||||||
Commitments and Contingencies | ||||||||
Percentage of unsecured term loan guaranteed by an export credit agency | 95.00% | |||||||
Finnvera | Icon of the Seas | ||||||||
Commitments and Contingencies | ||||||||
Percentage of unsecured term loan guaranteed by an export credit agency | 100.00% | |||||||
Minimum | Credit agreement | ||||||||
Commitments and Contingencies | ||||||||
Debt instrument covenant, minimum percentage of ownership by a person | 50.00% | 50.00% | ||||||
Minimum | Debt Securities | ||||||||
Commitments and Contingencies | ||||||||
Debt instrument covenant, minimum percentage of ownership by a person | 50.00% | 50.00% | ||||||
Unsecured term loans | Silver Nova | ||||||||
Commitments and Contingencies | ||||||||
Approximate berths | 730 | |||||||
Unsecured term loans | Evolution Class, Unnamed Ship Two | ||||||||
Commitments and Contingencies | ||||||||
Approximate berths | 730 | |||||||
Unsecured term loans | Credit agreement | ||||||||
Commitments and Contingencies | ||||||||
Increase in credit agreements | € 175,600,000 | $ 199,700,000 | ||||||
Unsecured term loans | Evolution Class, Ship One Credit Agreement | ||||||||
Commitments and Contingencies | ||||||||
Long term debt, stated interest rate (as a percent) | 4.34% | |||||||
Unsecured term loans | Evolution Class Ship Two Credit Agreement | ||||||||
Commitments and Contingencies | ||||||||
Long term debt, stated interest rate (as a percent) | 4.38% | |||||||
Unsecured term loans | Sixth Oasis Class Ship Term Loan | Sixth Oasis Class Ship | ||||||||
Commitments and Contingencies | ||||||||
Unsecured term loan, construction financing commitment per ship | $ 1,500,000,000 | € 1,300,000,000 | ||||||
Unsecured term loan, amortization period | 12 years | |||||||
Long term debt, stated interest rate (as a percent) | 3.00% | 3.00% | ||||||
Unsecured term loans | Third Icon Class Ship Term Loan | Third Icon Class Ship | ||||||||
Commitments and Contingencies | ||||||||
Unsecured term loan, construction financing commitment per ship | $ 1,600,000,000 | € 1,400,000,000 | ||||||
Unsecured term loan, amortization period | 12 years | |||||||
Long term debt, stated interest rate (as a percent) | 3.29% | 3.29% | ||||||
Percentage of debt bearing fixed interest | 60.00% | 60.00% | ||||||
Unsecured term loans | Icon Class, Ship One Credit Agreement | Icon of the Seas | ||||||||
Commitments and Contingencies | ||||||||
Bank financing commitment percentage | 80.00% | |||||||
Unsecured term loan, amortization period | 12 years | |||||||
Long term debt, stated interest rate (as a percent) | 3.56% | 3.56% | ||||||
Percentage of debt bearing fixed interest | 75.00% | 75.00% | ||||||
Maximum borrowing capacity | $ 1,600,000,000 | € 1,400,000,000 | ||||||
Unsecured term loans | Icon Class, Ship Two Credit Agreement | Icon Class, Unnamed Ship Two | ||||||||
Commitments and Contingencies | ||||||||
Bank financing commitment percentage | 80.00% | |||||||
Unsecured term loan, amortization period | 12 years | |||||||
Long term debt, stated interest rate (as a percent) | 3.76% | 3.76% | ||||||
Percentage of debt bearing fixed interest | 75.00% | 75.00% | ||||||
Maximum borrowing capacity | $ 1,600,000,000 | € 1,400,000,000 | ||||||
Unsecured term loans | Third and Fourth Edge-class ships and Fifth Oasis-class ship | ||||||||
Commitments and Contingencies | ||||||||
Unsecured term loan, amortization period | 12 years | |||||||
Unsecured term loans | Third and Fourth Edge-class ships and Fifth Oasis-class ship | Third Edge Class Ship | ||||||||
Commitments and Contingencies | ||||||||
Long term debt, stated interest rate (as a percent) | 1.28% | 1.28% | ||||||
Maximum borrowing capacity | € | € 684,200,000 | |||||||
Unsecured term loans | Third and Fourth Edge-class ships and Fifth Oasis-class ship | Fourth Edge Class Ship | ||||||||
Commitments and Contingencies | ||||||||
Long term debt, stated interest rate (as a percent) | 3.18% | 3.18% | ||||||
Maximum borrowing capacity | $ 812,700,000 | € 714,600,000 | ||||||
Unsecured term loans | Third and Fourth Edge-class ships and Fifth Oasis-class ship | Fifth Oasis Class Ship | ||||||||
Commitments and Contingencies | ||||||||
Long term debt, stated interest rate (as a percent) | 3.18% | 3.18% | ||||||
Maximum borrowing capacity | $ 1,300,000,000 | € 1,100,000,000 | ||||||
Unsecured term loans | LIBOR | Evolution Class, Ship One Credit Agreement | ||||||||
Commitments and Contingencies | ||||||||
Margin on floating rate base (as a percent) | 0.99% | |||||||
Unsecured term loans | LIBOR | Evolution Class Ship Two Credit Agreement | ||||||||
Commitments and Contingencies | ||||||||
Margin on floating rate base (as a percent) | 1.03% | |||||||
Unsecured term loans | LIBOR | Third Icon Class Ship Term Loan | Third Icon Class Ship | ||||||||
Commitments and Contingencies | ||||||||
Margin on floating rate base (as a percent) | 0.85% | |||||||
Unsecured term loans | Silversea Cruises (1) | Credit agreement | ||||||||
Commitments and Contingencies | ||||||||
Number of credit agreements | agreement | 2 | |||||||
Unsecured term loans | Silversea Cruises (1) | Evolution Class, Ship One Credit Agreement | Silver Nova | ||||||||
Commitments and Contingencies | ||||||||
Bank financing commitment percentage | 80.00% | |||||||
Unsecured term loan, construction financing commitment per ship | $ 399,900,000 | € 351,600,000 | ||||||
Unsecured term loan, amortization period | 12 years | |||||||
Long term debt, stated interest rate (as a percent) | 4.14% | 4.14% | ||||||
Unsecured term loans | Silversea Cruises (1) | Evolution Class Ship Two Credit Agreement | Evolution Class, Unnamed Ship Two | ||||||||
Commitments and Contingencies | ||||||||
Bank financing commitment percentage | 80.00% | |||||||
Unsecured term loan, construction financing commitment per ship | $ 408,300,000 | € 359,000,000 | ||||||
Unsecured term loan, amortization period | 12 years | |||||||
Long term debt, stated interest rate (as a percent) | 4.18% | 4.18% | ||||||
Unsecured term loans | Silversea Cruises (1) | LIBOR | Evolution Class, Ship One Credit Agreement | Silver Nova | ||||||||
Commitments and Contingencies | ||||||||
Margin on floating rate base (as a percent) | 0.79% | |||||||
Unsecured term loans | Silversea Cruises (1) | LIBOR | Evolution Class Ship Two Credit Agreement | Evolution Class, Unnamed Ship Two | ||||||||
Commitments and Contingencies | ||||||||
Margin on floating rate base (as a percent) | 0.83% | |||||||
Unsecured term loans | Euler Hermes | ||||||||
Commitments and Contingencies | ||||||||
Percentage of unsecured term loan guaranteed by an export credit agency | 95.00% | 95.00% | ||||||
Unsecured term loans | Minimum | ||||||||
Commitments and Contingencies | ||||||||
Long term debt, stated interest rate (as a percent) | 2.53% | 2.53% | ||||||
Unsecured term loans | Minimum | LIBOR | Icon Class, Ship One Credit Agreement | Icon of the Seas | ||||||||
Commitments and Contingencies | ||||||||
Margin on floating rate base (as a percent) | 1.10% | |||||||
Unsecured term loans | Minimum | LIBOR | Icon Class, Ship Two Credit Agreement | Icon Class, Unnamed Ship Two | ||||||||
Commitments and Contingencies | ||||||||
Margin on floating rate base (as a percent) | 1.15% | |||||||
Unsecured term loans | Maximum | ||||||||
Commitments and Contingencies | ||||||||
Long term debt, stated interest rate (as a percent) | 5.41% | 5.41% | ||||||
Unsecured term loans | Maximum | LIBOR | Icon Class, Ship One Credit Agreement | Icon of the Seas | ||||||||
Commitments and Contingencies | ||||||||
Margin on floating rate base (as a percent) | 1.15% | |||||||
Unsecured term loans | Maximum | LIBOR | Icon Class, Ship Two Credit Agreement | Icon Class, Unnamed Ship Two | ||||||||
Commitments and Contingencies | ||||||||
Margin on floating rate base (as a percent) | 1.20% |
Commitment and Contingencies (F
Commitment and Contingencies (Future Commitments) (Details) | Dec. 31, 2021berth |
Long-term Purchase Commitment [Line Items] | |
Ship passenger capacity berths | 47,260 |
Icon of the Seas | |
Long-term Purchase Commitment [Line Items] | |
Ship passenger capacity berths | 5,600 |
Icon Class, Unnamed Ship Two | |
Long-term Purchase Commitment [Line Items] | |
Ship passenger capacity berths | 5,600 |
Royal Caribbean International | Wonder of the Seas | |
Long-term Purchase Commitment [Line Items] | |
Ship passenger capacity berths | 5,700 |
Royal Caribbean International | Oasis-class ship | |
Long-term Purchase Commitment [Line Items] | |
Ship passenger capacity berths | 5,700 |
Royal Caribbean International | Icon of the Seas | |
Long-term Purchase Commitment [Line Items] | |
Ship passenger capacity berths | 5,600 |
Royal Caribbean International | Icon Class, Unnamed Ship Two | |
Long-term Purchase Commitment [Line Items] | |
Ship passenger capacity berths | 5,600 |
Royal Caribbean International | Third Icon Class Ship | |
Long-term Purchase Commitment [Line Items] | |
Ship passenger capacity berths | 5,600 |
Celebrity Cruises | Celebrity Beyond | |
Long-term Purchase Commitment [Line Items] | |
Ship passenger capacity berths | 3,250 |
Celebrity Cruises | Celebrity Ascent | |
Long-term Purchase Commitment [Line Items] | |
Ship passenger capacity berths | 3,250 |
Silversea Cruises (1) | Silver Nova | |
Long-term Purchase Commitment [Line Items] | |
Ship passenger capacity berths | 730 |
Silversea Cruises (1) | Evolution Class, Unnamed Ship Two | |
Long-term Purchase Commitment [Line Items] | |
Ship passenger capacity berths | 730 |
TUI Cruises | Mein Schiff 7 | |
Long-term Purchase Commitment [Line Items] | |
Ship passenger capacity berths | 2,900 |
TUI Cruises | TUI Cruises, Unnamed Ship One | |
Long-term Purchase Commitment [Line Items] | |
Ship passenger capacity berths | 4,100 |
TUI Cruises | TUI Cruises, Unnamed Ship Two | |
Long-term Purchase Commitment [Line Items] | |
Ship passenger capacity berths | 4,100 |
Commitment and Contingencies _2
Commitment and Contingencies (Future Non-Cancelable Purchase Commitments) (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2022 | $ 154,552 |
2023 | 86,532 |
2024 | 75,868 |
2025 | 33,981 |
2026 | 29,518 |
Thereafter | 154,033 |
Future noncancelable purchase commitments, Total | $ 534,484 |
Restructuring Charges (Narrativ
Restructuring Charges (Narrative) (Details) - Workforce Reduction Plan - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended |
Apr. 30, 2020 | Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||
Percentage of positions eliminated or furloughed | 23.00% | |
Severance costs | $ 28 |
Restructuring Charges (Summary
Restructuring Charges (Summary of Restructuring Costs) (Details) - Workforce Reduction Plan $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Restructuring Reserve [Roll Forward] | |
Balance at the beginning of the period | $ 4,257 |
Accruals | 682 |
Payments | 4,626 |
Balance at the end of the period | 313 |
Cumulative Charges Incurred | 28,635 |
Termination benefits | |
Restructuring Reserve [Roll Forward] | |
Balance at the beginning of the period | 4,257 |
Accruals | 682 |
Payments | 4,626 |
Balance at the end of the period | 313 |
Cumulative Charges Incurred | $ 28,635 |