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☒
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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☐
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Republic of
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Liberia
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98-0081645
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Common stock, par value $0.01 per share
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RCL
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New York Stock Exchange
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Large accelerated filer
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☒
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Accelerated filer
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☐
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Non-accelerated filer
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☐
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Smaller reporting company
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☐
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Emerging growth company
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☐
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Page
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Quarter Ended June 30,
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||||||
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2019
|
|
2018
|
||||
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Passenger ticket revenues
|
$
|
2,017,836
|
|
|
$
|
1,672,570
|
|
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Onboard and other revenues
|
788,795
|
|
|
665,035
|
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||
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Total revenues
|
2,806,631
|
|
|
2,337,605
|
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||
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Cruise operating expenses:
|
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|
|
|
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Commissions, transportation and other
|
426,934
|
|
|
358,305
|
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||
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Onboard and other
|
174,429
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|
|
142,240
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||
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Payroll and related
|
265,569
|
|
|
226,315
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||
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Food
|
146,847
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|
|
128,383
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||
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Fuel
|
181,924
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|
172,309
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||
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Other operating
|
348,801
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|
|
286,859
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Total cruise operating expenses
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1,544,504
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|
|
1,314,411
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||
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Marketing, selling and administrative expenses
|
376,874
|
|
|
312,923
|
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||
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Depreciation and amortization expenses
|
311,600
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|
|
253,376
|
|
||
|
Operating Income
|
573,653
|
|
|
456,895
|
|
||
|
Other income (expense):
|
|
|
|
|
|
||
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Interest income
|
6,342
|
|
|
13,098
|
|
||
|
Interest expense, net of interest capitalized
|
(111,304
|
)
|
|
(81,864
|
)
|
||
|
Equity investment income
|
33,045
|
|
|
44,311
|
|
||
|
Other (expense) income
|
(21,781
|
)
|
|
33,855
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|
||
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(93,698
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)
|
|
9,400
|
|
||
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Net Income
|
479,955
|
|
|
466,295
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||
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Less: Net Income attributable to noncontrolling interest
|
7,125
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—
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Net Income attributable to Royal Caribbean Cruises Ltd.
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$
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472,830
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$
|
466,295
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Earnings per Share:
|
|
|
|
|
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Basic
|
$
|
2.26
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$
|
2.20
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Diluted
|
$
|
2.25
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|
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$
|
2.19
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Weighted-Average Shares Outstanding:
|
|
|
|
|
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||
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Basic
|
209,531
|
|
|
211,673
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||
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Diluted
|
210,052
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|
|
212,509
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||
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Comprehensive Income
|
|
|
|
|
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Net Income
|
$
|
479,955
|
|
|
$
|
466,295
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|
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Other comprehensive income (loss):
|
|
|
|
|
|
||
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Foreign currency translation adjustments
|
7,263
|
|
|
(11,521
|
)
|
||
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Change in defined benefit plans
|
(9,722
|
)
|
|
(1,964
|
)
|
||
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Loss on cash flow derivative hedges
|
(71,734
|
)
|
|
(68,900
|
)
|
||
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Total other comprehensive loss
|
(74,193
|
)
|
|
(82,385
|
)
|
||
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Comprehensive Income
|
405,762
|
|
|
383,910
|
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||
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Less: Comprehensive Income attributable to noncontrolling interest
|
7,125
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—
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|
||
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Comprehensive Income attributable to Royal Caribbean Cruises Ltd.
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$
|
398,637
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$
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383,910
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Six Months Ended June 30,
|
||||||
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2019
|
|
2018
|
||||
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Passenger ticket revenues
|
$
|
3,727,820
|
|
|
$
|
3,098,214
|
|
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Onboard and other revenues
|
1,518,578
|
|
|
1,267,147
|
|
||
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Total revenues
|
5,246,398
|
|
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4,365,361
|
|
||
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Cruise operating expenses:
|
|
|
|
|
|
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Commissions, transportation and other
|
790,089
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|
|
648,914
|
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||
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Onboard and other
|
309,599
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|
|
241,777
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||
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Payroll and related
|
535,101
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|
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453,471
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||
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Food
|
286,381
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|
|
248,025
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Fuel
|
342,095
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|
332,650
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||
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Other operating
|
694,943
|
|
|
565,593
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|
||
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Total cruise operating expenses
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2,958,208
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|
|
2,490,430
|
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Marketing, selling and administrative expenses
|
791,821
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|
|
650,284
|
|
||
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Depreciation and amortization expenses
|
603,885
|
|
|
493,606
|
|
||
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Operating Income
|
892,484
|
|
|
731,041
|
|
||
|
Other income (expense):
|
|
|
|
|
|
||
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Interest income
|
16,126
|
|
|
20,831
|
|
||
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Interest expense, net of interest capitalized
|
(211,719
|
)
|
|
(149,742
|
)
|
||
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Equity investment income
|
66,739
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|
|
73,063
|
|
||
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Other (expense) income
|
(26,869
|
)
|
|
9,755
|
|
||
|
|
(155,723
|
)
|
|
(46,093
|
)
|
||
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Net Income
|
736,761
|
|
|
684,948
|
|
||
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Less: Net Income attributable to noncontrolling interest
|
14,250
|
|
|
—
|
|
||
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Net Income attributable to Royal Caribbean Cruises Ltd.
|
$
|
722,511
|
|
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$
|
684,948
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|
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Earnings per Share:
|
|
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Basic
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$
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3.45
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|
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$
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3.23
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Diluted
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$
|
3.44
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|
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$
|
3.21
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|
|
Weighted-Average Shares Outstanding:
|
|
|
|
|
|
||
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Basic
|
209,427
|
|
|
212,139
|
|
||
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Diluted
|
209,962
|
|
|
213,079
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|
||
|
Comprehensive Income
|
|
|
|
|
|
||
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Net Income
|
$
|
736,761
|
|
|
$
|
684,948
|
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
||
|
Foreign currency translation adjustments
|
7,827
|
|
|
(10,361
|
)
|
||
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Change in defined benefit plans
|
(10,375
|
)
|
|
5,796
|
|
||
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(Loss) gain on cash flow derivative hedges
|
(22,891
|
)
|
|
73,630
|
|
||
|
Total other comprehensive (loss) income
|
(25,439
|
)
|
|
69,065
|
|
||
|
Comprehensive Income
|
711,322
|
|
|
754,013
|
|
||
|
Less: Comprehensive Income attributable to noncontrolling interest
|
14,250
|
|
|
—
|
|
||
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Comprehensive Income attributable to Royal Caribbean Cruises Ltd.
|
$
|
697,072
|
|
|
$
|
754,013
|
|
|
|
As of
|
||||||
|
|
June 30,
|
|
December 31,
|
||||
|
|
2019
|
|
2018
|
||||
|
|
(unaudited)
|
|
|
||||
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Assets
|
|
|
|
|
|
||
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Current assets
|
|
|
|
|
|
||
|
Cash and cash equivalents
|
$
|
235,001
|
|
|
$
|
287,852
|
|
|
Trade and other receivables, net
|
340,921
|
|
|
324,507
|
|
||
|
Inventories
|
168,009
|
|
|
153,573
|
|
||
|
Prepaid expenses and other assets
|
500,477
|
|
|
456,547
|
|
||
|
Derivative financial instruments
|
38,559
|
|
|
19,565
|
|
||
|
Total current assets
|
1,282,967
|
|
|
1,242,044
|
|
||
|
Property and equipment, net
|
24,855,174
|
|
|
23,466,163
|
|
||
|
Operating lease right-of-use assets
|
720,854
|
|
|
—
|
|
||
|
Goodwill
|
1,373,124
|
|
|
1,378,353
|
|
||
|
Other assets
|
1,576,843
|
|
|
1,611,710
|
|
||
|
Total assets
|
$
|
29,808,962
|
|
|
$
|
27,698,270
|
|
|
Liabilities, Redeemable Noncontrolling Interest and Shareholders’ Equity
|
|
|
|
|
|
||
|
Current liabilities
|
|
|
|
||||
|
Current portion of debt
|
$
|
946,227
|
|
|
$
|
1,646,841
|
|
|
Commercial paper
|
1,046,587
|
|
|
775,488
|
|
||
|
Current portion of operating lease liabilities
|
92,523
|
|
|
—
|
|
||
|
Accounts payable
|
531,788
|
|
|
488,212
|
|
||
|
Accrued interest
|
75,313
|
|
|
74,550
|
|
||
|
Accrued expenses and other liabilities
|
946,530
|
|
|
899,761
|
|
||
|
Derivative financial instruments
|
37,718
|
|
|
78,476
|
|
||
|
Customer deposits
|
3,909,454
|
|
|
3,148,837
|
|
||
|
Total current liabilities
|
7,586,140
|
|
|
7,112,165
|
|
||
|
Long-term debt
|
8,922,011
|
|
|
8,355,370
|
|
||
|
Long-term operating lease liabilities
|
644,088
|
|
|
—
|
|
||
|
Other long-term liabilities
|
561,550
|
|
|
583,254
|
|
||
|
Total liabilities
|
17,713,789
|
|
|
16,050,789
|
|
||
|
Commitments and contingencies (Note 11)
|
|
|
|
|
|
||
|
Redeemable noncontrolling interest
|
556,770
|
|
|
542,020
|
|
||
|
Shareholders’ equity
|
|
|
|
|
|
||
|
Preferred stock ($0.01 par value; 20,000,000 shares authorized; none outstanding)
|
—
|
|
|
—
|
|
||
|
Common stock ($0.01 par value; 500,000,000 shares authorized; 236,405,705 and 235,847,683 shares issued, June 30, 2019 and December 31, 2018, respectively)
|
2,364
|
|
|
2,358
|
|
||
|
Paid-in capital
|
3,454,831
|
|
|
3,420,900
|
|
||
|
Retained earnings
|
10,692,890
|
|
|
10,263,282
|
|
||
|
Accumulated other comprehensive loss
|
(653,173
|
)
|
|
(627,734
|
)
|
||
|
Treasury stock (26,887,147 and 26,830,765 common shares at cost, at June 30, 2019 and December 31, 2018, respectively)
|
(1,958,509
|
)
|
|
(1,953,345
|
)
|
||
|
Total shareholders’ equity
|
11,538,403
|
|
|
11,105,461
|
|
||
|
Total liabilities, redeemable noncontrolling interest and shareholders’ equity
|
$
|
29,808,962
|
|
|
$
|
27,698,270
|
|
|
|
Six Months Ended June 30,
|
||||||
|
|
2019
|
|
2018
|
||||
|
Operating Activities
|
|
|
|
|
|
||
|
Net income
|
$
|
736,761
|
|
|
$
|
684,948
|
|
|
Adjustments:
|
|
|
|
|
|
||
|
Depreciation and amortization
|
603,885
|
|
|
493,606
|
|
||
|
Impairment losses
|
—
|
|
|
33,651
|
|
||
|
Net deferred income tax expense (benefit)
|
3,794
|
|
|
(893
|
)
|
||
|
(Gain) loss on derivative instruments not designated as hedges
|
(713
|
)
|
|
29,750
|
|
||
|
Share-based compensation expense
|
41,974
|
|
|
31,819
|
|
||
|
Equity investment income
|
(66,739
|
)
|
|
(73,063
|
)
|
||
|
Amortization of debt issuance costs
|
20,467
|
|
|
16,283
|
|
||
|
Loss on extinguishment of debt
|
6,326
|
|
|
—
|
|
||
|
Change in fair value of contingent consideration
|
10,700
|
|
|
—
|
|
||
|
Gain on sale of unconsolidated affiliate
|
—
|
|
|
(13,680
|
)
|
||
|
Recognition of deferred gain
|
—
|
|
|
(21,794
|
)
|
||
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
||
|
(Increase) decrease in trade and other receivables, net
|
(14,262
|
)
|
|
16,162
|
|
||
|
Increase in inventories
|
(14,436
|
)
|
|
(10,485
|
)
|
||
|
Increase in prepaid expenses and other assets
|
(51,443
|
)
|
|
(152,626
|
)
|
||
|
Increase in accounts payable
|
43,594
|
|
|
58,842
|
|
||
|
Increase in accrued interest
|
763
|
|
|
13,706
|
|
||
|
Increase (decrease) in accrued expenses and other liabilities
|
34,056
|
|
|
(71,254
|
)
|
||
|
Increase in customer deposits
|
760,435
|
|
|
740,420
|
|
||
|
Dividends received from unconsolidated affiliates
|
80,572
|
|
|
158,942
|
|
||
|
Other, net
|
(207
|
)
|
|
(2,748
|
)
|
||
|
Net cash provided by operating activities
|
2,195,527
|
|
|
1,931,586
|
|
||
|
Investing Activities
|
|
|
|
|
|
||
|
Purchases of property and equipment
|
(1,866,141
|
)
|
|
(2,212,880
|
)
|
||
|
Cash received on settlement of derivative financial instruments
|
6,204
|
|
|
69,195
|
|
||
|
Cash paid on settlement of derivative financial instruments
|
(55,758
|
)
|
|
(34,898
|
)
|
||
|
Investments in and loans to unconsolidated affiliates
|
(3,046
|
)
|
|
—
|
|
||
|
Cash received on loans to unconsolidated affiliates
|
19,509
|
|
|
37,607
|
|
||
|
Proceeds from the sale of unconsolidated affiliate
|
—
|
|
|
13,215
|
|
||
|
Other, net
|
(173
|
)
|
|
(13,220
|
)
|
||
|
Net cash used in investing activities
|
(1,899,405
|
)
|
|
(2,140,981
|
)
|
||
|
Financing Activities
|
|
|
|
|
|
||
|
Debt proceeds
|
2,749,564
|
|
|
3,929,322
|
|
||
|
Debt issuance costs
|
(35,454
|
)
|
|
(48,535
|
)
|
||
|
Repayments of debt
|
(3,008,893
|
)
|
|
(3,029,944
|
)
|
||
|
Proceeds from issuance of commercial paper notes
|
13,335,536
|
|
|
—
|
|
||
|
Repayments of commercial paper notes
|
(13,080,788
|
)
|
|
—
|
|
||
|
Purchases of treasury stock
|
—
|
|
|
(369,476
|
)
|
||
|
Dividends paid
|
(293,197
|
)
|
|
(254,645
|
)
|
||
|
Proceeds from exercise of common stock options
|
265
|
|
|
4,062
|
|
||
|
Other, net
|
(15,930
|
)
|
|
(16,827
|
)
|
||
|
Net cash (used in) provided by financing activities
|
(348,897
|
)
|
|
213,957
|
|
||
|
Effect of exchange rate changes on cash
|
(76
|
)
|
|
(15,676
|
)
|
||
|
Net decrease in cash and cash equivalents
|
(52,851
|
)
|
|
(11,114
|
)
|
||
|
Cash and cash equivalents at beginning of period
|
287,852
|
|
|
120,112
|
|
||
|
Cash and cash equivalents at end of period
|
$
|
235,001
|
|
|
$
|
108,998
|
|
|
Supplemental Disclosure
|
|
|
|
|
|
||
|
Cash paid during the period for:
|
|
|
|
|
|
||
|
Interest, net of amount capitalized
|
$
|
141,961
|
|
|
$
|
114,061
|
|
|
|
Common Stock
|
|
Paid-in Capital
|
|
Retained Earnings
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
Treasury Stock
|
|
Total Shareholders' Equity
|
||||||||||||
|
Balance at April 1, 2019
|
$
|
2,364
|
|
|
$
|
3,432,419
|
|
|
$
|
10,366,612
|
|
|
$
|
(578,980
|
)
|
|
$
|
(1,953,345
|
)
|
|
$
|
11,269,070
|
|
|
Activity related to employee stock plans
|
—
|
|
|
22,412
|
|
|
—
|
|
|
—
|
|
|
(5,164
|
)
|
|
17,248
|
|
||||||
|
Common stock dividends, $0.70 per share
|
—
|
|
|
—
|
|
|
(146,552
|
)
|
|
—
|
|
|
—
|
|
|
(146,552
|
)
|
||||||
|
Changes related to cash flow derivative hedges
|
—
|
|
|
—
|
|
|
—
|
|
|
(71,734
|
)
|
|
—
|
|
|
(71,734
|
)
|
||||||
|
Change in defined benefit plans
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,722
|
)
|
|
—
|
|
|
(9,722
|
)
|
||||||
|
Foreign currency translation adjustments
|
—
|
|
|
—
|
|
|
—
|
|
|
7,263
|
|
|
—
|
|
|
7,263
|
|
||||||
|
Net Income attributable to Royal Caribbean Cruises Ltd.
|
—
|
|
|
—
|
|
|
472,830
|
|
|
—
|
|
|
—
|
|
|
472,830
|
|
||||||
|
Balance at June 30, 2019
|
$
|
2,364
|
|
|
$
|
3,454,831
|
|
|
$
|
10,692,890
|
|
|
$
|
(653,173
|
)
|
|
$
|
(1,958,509
|
)
|
|
$
|
11,538,403
|
|
|
|
Common Stock
|
|
Paid-in Capital
|
|
Retained Earnings
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
Treasury Stock
|
|
Total Shareholders' Equity
|
||||||||||||
|
Balance at January 1, 2019
|
$
|
2,358
|
|
|
$
|
3,420,900
|
|
|
$
|
10,263,282
|
|
|
$
|
(627,734
|
)
|
|
$
|
(1,953,345
|
)
|
|
$
|
11,105,461
|
|
|
Activity related to employee stock plans
|
6
|
|
|
33,931
|
|
|
—
|
|
|
—
|
|
|
(5,164
|
)
|
|
28,773
|
|
||||||
|
Common stock dividends, $1.40 per share
|
—
|
|
|
—
|
|
|
(292,903
|
)
|
|
—
|
|
|
—
|
|
|
(292,903
|
)
|
||||||
|
Changes related to cash flow derivative hedges
|
—
|
|
|
—
|
|
|
—
|
|
|
(22,891
|
)
|
|
—
|
|
|
(22,891
|
)
|
||||||
|
Change in defined benefit plans
|
—
|
|
|
—
|
|
|
—
|
|
|
(10,375
|
)
|
|
—
|
|
|
(10,375
|
)
|
||||||
|
Foreign currency translation adjustments
|
—
|
|
|
—
|
|
|
—
|
|
|
7,827
|
|
|
—
|
|
|
7,827
|
|
||||||
|
Net Income attributable to Royal Caribbean Cruises Ltd.
|
—
|
|
|
—
|
|
|
722,511
|
|
|
—
|
|
|
—
|
|
|
722,511
|
|
||||||
|
Balance at June 30, 2019
|
$
|
2,364
|
|
|
$
|
3,454,831
|
|
|
$
|
10,692,890
|
|
|
$
|
(653,173
|
)
|
|
$
|
(1,958,509
|
)
|
|
$
|
11,538,403
|
|
|
|
Common Stock
|
|
Paid-in Capital
|
|
Retained Earnings
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
Treasury Stock
|
|
Total Shareholders' Equity
|
||||||||||||
|
Balance at April 1, 2018
|
$
|
2,357
|
|
|
$
|
3,390,055
|
|
|
$
|
9,090,544
|
|
|
$
|
(182,815
|
)
|
|
$
|
(1,653,345
|
)
|
|
$
|
10,646,796
|
|
|
Activity related to employee stock plans
|
1
|
|
|
7,506
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,507
|
|
||||||
|
Common stock dividends, $0.60 per share
|
—
|
|
|
—
|
|
|
(127,055
|
)
|
|
—
|
|
|
—
|
|
|
(127,055
|
)
|
||||||
|
Changes related to cash flow derivative hedges
|
—
|
|
|
—
|
|
|
—
|
|
|
(68,900
|
)
|
|
—
|
|
|
(68,900
|
)
|
||||||
|
Change in defined benefit plans
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,964
|
)
|
|
—
|
|
|
(1,964
|
)
|
||||||
|
Foreign currency translation adjustments
|
—
|
|
|
—
|
|
|
—
|
|
|
(11,521
|
)
|
|
—
|
|
|
(11,521
|
)
|
||||||
|
Purchases of treasury stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(137,460
|
)
|
|
(137,460
|
)
|
||||||
|
Net Income attributable to Royal Caribbean Cruises Ltd.
|
—
|
|
|
—
|
|
|
466,295
|
|
|
—
|
|
|
—
|
|
|
466,295
|
|
||||||
|
Balance at June 30, 2018
|
$
|
2,358
|
|
|
$
|
3,397,561
|
|
|
$
|
9,429,784
|
|
|
$
|
(265,200
|
)
|
|
$
|
(1,790,805
|
)
|
|
$
|
10,773,698
|
|
|
|
Common Stock
|
|
Paid-in Capital
|
|
Retained Earnings
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
Treasury Stock
|
|
Total Shareholders' Equity
|
||||||||||||
|
Balance at January 1, 2018
|
$
|
2,352
|
|
|
$
|
3,390,117
|
|
|
$
|
9,022,405
|
|
|
$
|
(334,265
|
)
|
|
$
|
(1,378,306
|
)
|
|
$
|
10,702,303
|
|
|
Cumulative effect of accounting changes
|
—
|
|
|
—
|
|
|
(23,476
|
)
|
|
—
|
|
|
—
|
|
|
(23,476
|
)
|
||||||
|
Activity related to employee stock plans
|
6
|
|
|
7,444
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,450
|
|
||||||
|
Common stock dividends, $1.20 per share
|
—
|
|
|
—
|
|
|
(254,093
|
)
|
|
—
|
|
|
—
|
|
|
(254,093
|
)
|
||||||
|
Changes related to cash flow derivative hedges
|
—
|
|
|
—
|
|
|
—
|
|
|
73,630
|
|
|
—
|
|
|
73,630
|
|
||||||
|
Change in defined benefit plans
|
—
|
|
|
—
|
|
|
—
|
|
|
5,796
|
|
|
—
|
|
|
5,796
|
|
||||||
|
Foreign currency translation adjustments
|
—
|
|
|
—
|
|
|
—
|
|
|
(10,361
|
)
|
|
—
|
|
|
(10,361
|
)
|
||||||
|
Purchases of treasury stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(412,499
|
)
|
|
(412,499
|
)
|
||||||
|
Net Income attributable to Royal Caribbean Cruises Ltd.
|
—
|
|
|
—
|
|
|
684,948
|
|
|
—
|
|
|
—
|
|
|
684,948
|
|
||||||
|
Balance at June 30, 2018
|
$
|
2,358
|
|
|
$
|
3,397,561
|
|
|
$
|
9,429,784
|
|
|
$
|
(265,200
|
)
|
|
$
|
(1,790,805
|
)
|
|
$
|
10,773,698
|
|
|
|
|
June 30, 2019
|
||||||||||
|
|
|
Gross Carrying Value
|
|
Accumulated Amortization
|
|
Net Carrying Value
|
||||||
|
Finite-life intangible assets:
|
|
|
|
|
|
|
||||||
|
Customer relationships
|
|
$
|
97,400
|
|
|
$
|
4,329
|
|
|
$
|
93,071
|
|
|
Galapagos operating license
|
|
47,669
|
|
|
5,049
|
|
|
42,620
|
|
|||
|
Other finite-life intangible assets
|
|
11,560
|
|
|
3,853
|
|
|
7,707
|
|
|||
|
Total finite-life intangible assets
|
|
156,629
|
|
|
13,231
|
|
|
143,398
|
|
|||
|
Indefinite-life intangible assets
|
|
351,725
|
|
|
—
|
|
|
351,725
|
|
|||
|
Total intangible assets, net
|
|
$
|
508,354
|
|
|
$
|
13,231
|
|
|
$
|
495,123
|
|
|
|
|
December 31, 2018
|
||||||||||
|
|
|
Gross Carrying Value
|
|
Accumulated Amortization
|
|
Net Carrying Value
|
||||||
|
Finite-life intangible assets:
|
|
|
|
|
|
|
||||||
|
Customer relationships
|
|
$
|
97,400
|
|
|
$
|
1,082
|
|
|
$
|
96,318
|
|
|
Galapagos operating license
|
|
47,669
|
|
|
4,206
|
|
|
43,463
|
|
|||
|
Other finite-life intangible assets
|
|
11,560
|
|
|
963
|
|
|
10,597
|
|
|||
|
Total finite-life intangible assets
|
|
156,629
|
|
|
6,251
|
|
|
150,378
|
|
|||
|
Indefinite-life intangible assets
|
|
351,725
|
|
|
—
|
|
|
351,725
|
|
|||
|
Total intangible assets, net
|
|
$
|
508,354
|
|
|
$
|
6,251
|
|
|
$
|
502,103
|
|
|
Year
|
|
||
|
Remainder of 2019
|
$
|
6,979
|
|
|
2020
|
$
|
12,995
|
|
|
2021
|
$
|
8,179
|
|
|
2022
|
$
|
8,179
|
|
|
2023
|
$
|
8,179
|
|
|
2024
|
$
|
8,179
|
|
|
|
Quarter Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
Revenues by itinerary
|
|
|
|
|
|
|
|
||||||||
|
North America(1)
|
$
|
1,571,769
|
|
|
$
|
1,264,167
|
|
|
$
|
3,252,827
|
|
|
$
|
2,611,427
|
|
|
Asia/Pacific(2)
|
327,777
|
|
|
283,198
|
|
|
817,852
|
|
|
816,177
|
|
||||
|
Europe(3)
|
594,712
|
|
|
597,399
|
|
|
602,694
|
|
|
597,399
|
|
||||
|
Other regions(4)
|
196,504
|
|
|
101,631
|
|
|
359,009
|
|
|
178,816
|
|
||||
|
Total revenues by itinerary
|
2,690,762
|
|
|
2,246,395
|
|
|
5,032,382
|
|
|
4,203,819
|
|
||||
|
Other revenues(5)
|
115,869
|
|
|
91,210
|
|
|
214,016
|
|
|
161,542
|
|
||||
|
Total revenues
|
$
|
2,806,631
|
|
|
$
|
2,337,605
|
|
|
$
|
5,246,398
|
|
|
$
|
4,365,361
|
|
|
(1)
|
Includes the United States, Canada, Mexico and the Caribbean.
|
|
(2)
|
Includes Southeast Asia (e.g., Singapore, Thailand and the Philippines), East Asia (e.g., China and Japan), South Asia (e.g., India and Pakistan) and Oceania (e.g., Australia and Fiji Islands) regions.
|
|
(3)
|
Includes European countries (e.g., Nordics, Germany, France, Italy, Spain and the United Kingdom).
|
|
(4)
|
Includes seasonality impacted itineraries primarily in South and Latin American countries.
|
|
(5)
|
Includes revenues primarily related to cancellation fees, vacation protection insurance, pre- and post-cruise tours and fees for operating certain port facilities. Amounts also include revenues related to our bareboat charter, procurement and management related services we perform on behalf of our unconsolidated affiliates. Refer to Note 7. Other Assets for more information on our unconsolidated affiliates.
|
|
|
Quarter Ended June 30,
|
||||
|
|
2019
|
|
2018
|
||
|
Passenger ticket revenues:
|
|
|
|
||
|
United States
|
67
|
%
|
|
63
|
%
|
|
United Kingdom
|
9
|
%
|
|
10
|
%
|
|
All other countries (1)
|
24
|
%
|
|
27
|
%
|
|
|
Six Months Ended June 30,
|
||||
|
|
2019
|
|
2018
|
||
|
Passenger ticket revenues:
|
|
|
|
||
|
United States
|
66
|
%
|
|
60
|
%
|
|
All other countries (1)
|
34
|
%
|
|
40
|
%
|
|
(1)
|
No other individual country's revenue exceeded 10% for the quarters and six months ended June 30, 2019 and 2018.
|
|
|
Quarter Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
Net Income attributable to Royal Caribbean Cruises Ltd. for basic and diluted earnings per share
|
$
|
472,830
|
|
|
$
|
466,295
|
|
|
$
|
722,511
|
|
|
$
|
684,948
|
|
|
Weighted-average common shares outstanding
|
209,531
|
|
|
211,673
|
|
|
209,427
|
|
|
212,139
|
|
||||
|
Dilutive effect of stock-based awards
|
521
|
|
|
836
|
|
|
535
|
|
|
940
|
|
||||
|
Diluted weighted-average shares outstanding
|
210,052
|
|
|
212,509
|
|
|
209,962
|
|
|
213,079
|
|
||||
|
Basic earnings per share
|
$
|
2.26
|
|
|
$
|
2.20
|
|
|
$
|
3.45
|
|
|
$
|
3.23
|
|
|
Diluted earnings per share
|
$
|
2.25
|
|
|
$
|
2.19
|
|
|
$
|
3.44
|
|
|
$
|
3.21
|
|
|
|
|
Quarter Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
Share of equity income from investments
|
|
$
|
33,045
|
|
|
$
|
44,311
|
|
|
$
|
66,739
|
|
|
$
|
73,063
|
|
|
Dividends received (1)
|
|
$
|
38,137
|
|
|
$
|
121,024
|
|
|
$
|
80,572
|
|
|
$
|
158,942
|
|
|
(1)
|
For the quarter ended June 30, 2019, TUI Cruises paid us a dividend of €40.0 million, or approximately $45.6 million, based on the exchange rate at the time of the transaction. For the six months ended June 30, 2019, TUI Cruises paid us dividends totaling €90.0 million, or approximately $101.8 million, based on the exchange rates at the time of the transactions. The amounts included in the table above are net of tax withholdings.
|
|
|
|
As of June 30, 2019
|
|
As of December 31, 2018
|
||||
|
Total notes receivable due from equity investments
|
|
$
|
193,334
|
|
|
$
|
201,979
|
|
|
Less-current portion(1)
|
|
23,651
|
|
|
19,075
|
|
||
|
Long-term portion(2)
|
|
$
|
169,683
|
|
|
$
|
182,904
|
|
|
(1)
|
Included within Trade and other receivables, net in our consolidated balance sheets.
|
|
(2)
|
Included within Other assets in our consolidated balance sheets.
|
|
|
|
Quarter Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
Revenues
|
|
$
|
11,975
|
|
|
$
|
14,157
|
|
|
$
|
23,857
|
|
|
$
|
28,230
|
|
|
Expenses
|
|
$
|
1,111
|
|
|
$
|
3,270
|
|
|
$
|
2,085
|
|
|
$
|
6,908
|
|
|
|
As of June 30, 2019
|
||
|
Lease assets:
|
|
||
|
Finance lease right-of-use assets, net:
|
|
||
|
Property and equipment, gross
|
$
|
373,867
|
|
|
Accumulated depreciation
|
(45,412
|
)
|
|
|
Property and equipment, net
|
328,455
|
|
|
|
Operating lease right-of-use assets
|
720,854
|
|
|
|
Total lease assets
|
$
|
1,049,309
|
|
|
Lease liabilities:
|
|
||
|
Finance lease liabilities:
|
|
||
|
Current portion of debt
|
$
|
24,573
|
|
|
Long-term debt
|
218,106
|
|
|
|
Total finance lease liabilities
|
242,679
|
|
|
|
Operating lease liabilities:
|
|
||
|
Current portion of operating lease liabilities
|
92,523
|
|
|
|
Long-term operating lease liabilities
|
644,088
|
|
|
|
Total operating lease liabilities
|
736,611
|
|
|
|
Total lease liabilities
|
$
|
979,290
|
|
|
|
Consolidated Statement of Comprehensive Income (Loss) Classification
|
Quarter Ended June 30, 2019
|
Six Months Ended June 30, 2019
|
||||
|
Lease costs:
|
|
|
|
||||
|
Operating lease costs
|
Commission, transportation and other
|
$
|
19,057
|
|
$
|
38,113
|
|
|
Operating lease costs
|
Other operating expenses
|
6,930
|
|
13,861
|
|
||
|
Operating lease costs
|
Marketing, selling and administrative expenses
|
5,018
|
|
10,225
|
|
||
|
Finance lease costs:
|
|
|
|
||||
|
Amortization of right-of-use-assets
|
Depreciation and amortization expenses
|
5,529
|
|
8,724
|
|
||
|
Interest on lease liabilities
|
Interest expense, net of interest capitalized
|
1,570
|
|
2,166
|
|
||
|
Total lease costs
|
|
$
|
38,104
|
|
$
|
73,089
|
|
|
|
As of June 30, 2019
|
|
|
Weighted average of the remaining lease term
|
|
|
|
Operating leases
|
10.7 years
|
|
|
Finance leases
|
28.6 years
|
|
|
Weighted average discount rate
|
|
|
|
Operating leases
|
4.65
|
%
|
|
Finance leases
|
4.40
|
%
|
|
|
Six Months Ended June 30, 2019
|
||
|
Cash paid for amounts included in the measurement of lease liabilities:
|
|
||
|
Operating cash flows from operating leases
|
$
|
63,221
|
|
|
Operating cash flows from finance leases
|
$
|
2,166
|
|
|
Financing cash flows from finance leases
|
$
|
14,607
|
|
|
Supplemental noncash information:
|
|
||
|
Right-of-use assets obtained in exchange for lease obligations:
|
|
||
|
Finance leases
|
$
|
122,237
|
|
|
Year
|
Operating Leases
|
|
Finance Leases
|
||||
|
Remainder of 2019
|
$
|
61,702
|
|
|
$
|
23,619
|
|
|
2020
|
122,781
|
|
|
43,411
|
|
||
|
2021
|
110,025
|
|
|
45,934
|
|
||
|
2022
|
103,561
|
|
|
22,832
|
|
||
|
2023
|
101,442
|
|
|
11,891
|
|
||
|
Thereafter
|
492,551
|
|
|
414,104
|
|
||
|
Total lease payments
|
992,062
|
|
|
561,791
|
|
||
|
Less: Interest
|
(255,451
|
)
|
|
(319,112
|
)
|
||
|
Present value of lease liabilities
|
$
|
736,611
|
|
|
$
|
242,679
|
|
|
Year
|
|
||
|
2019
|
$
|
67,682
|
|
|
2020
|
64,237
|
|
|
|
2021
|
56,142
|
|
|
|
2022
|
52,759
|
|
|
|
2023
|
52,522
|
|
|
|
Thereafter
|
383,974
|
|
|
|
|
$
|
677,316
|
|
|
Beginning balance January 1, 2019
|
$
|
542,020
|
|
|
Net income attributable to noncontrolling interest, including the contractual accretion of the put options
|
14,250
|
|
|
|
Other
|
500
|
|
|
|
Ending balance June 30, 2019
|
$
|
556,770
|
|
|
Ship
|
|
Shipyard
|
|
Expected to Enter
Service |
|
Approximate
Berths |
|
Royal Caribbean International —
|
|
|
|
|
|
|
|
Oasis-class:
|
|
|
|
|
|
|
|
Unnamed
|
|
Chantiers de l’Atlantique
|
|
2nd Quarter 2021
|
|
5,700
|
|
Quantum-class:
|
|
|
|
|
|
|
|
Odyssey of the Seas
|
|
Meyer Werft GmbH
|
|
4th Quarter 2020
|
|
4,200
|
|
Icon-class:
|
|
|
|
|
|
|
|
Unnamed
|
|
Meyer Turku Oy
|
|
2nd Quarter 2022
|
|
5,600
|
|
Unnamed
|
|
Meyer Turku Oy
|
|
2nd Quarter 2024
|
|
5,600
|
|
Celebrity Cruises —
|
|
|
|
|
|
|
|
Edge-class:
|
|
|
|
|
|
|
|
Celebrity Apex
|
|
Chantiers de l’Atlantique
|
|
2nd Quarter 2020
|
|
2,900
|
|
Unnamed
|
|
Chantiers de l’Atlantique
|
|
4th Quarter 2021
|
|
3,250
|
|
Unnamed
|
|
Chantiers de l’Atlantique
|
|
4th Quarter 2022
|
|
3,250
|
|
Silversea Cruises —
|
|
|
|
|
|
|
|
Silver Origin
|
|
De Hoop
|
|
2nd Quarter 2020
|
|
100
|
|
Silver Moon
|
|
Fincantieri
|
|
3rd Quarter 2020
|
|
550
|
|
Silver Dawn
|
|
Fincantieri
|
|
3rd Quarter 2021
|
|
550
|
|
Total Berths
|
|
|
|
|
|
31,700
|
|
Ship
|
|
Shipyard
|
|
Expected to Enter
Service |
|
Approximate
Berths |
|
Royal Caribbean International —
|
|
|
|
|
|
|
|
Oasis-class:
|
|
|
|
|
|
|
|
Unnamed
|
|
Chantiers de l’Atlantique
|
|
4th Quarter 2023
|
|
5,700
|
|
Icon-class:
|
|
|
|
|
|
|
|
Unnamed
|
|
Meyer Turku Oy
|
|
2nd Quarter 2025
|
|
5,600
|
|
Celebrity Cruises —
|
|
|
|
|
|
|
|
Edge-class:
|
|
|
|
|
|
|
|
Unnamed
|
|
Chantiers de l’Atlantique
|
|
4th Quarter 2024
|
|
3,250
|
|
|
Accumulated Other Comprehensive Income (Loss) for the Six Months Ended June 30, 2019
|
|
Accumulated Other Comprehensive Income (Loss) for the Six Months Ended June 30, 2018
|
||||||||||||||||||||||||||||
|
|
Changes related to cash flow derivative hedges
|
|
Changes in defined benefit plans
|
|
Foreign currency translation adjustments
|
|
Accumulated other comprehensive loss
|
|
Changes related to cash flow derivative hedges
|
|
Changes in defined benefit plans
|
|
Foreign currency translation adjustments
|
|
Accumulated other comprehensive loss
|
||||||||||||||||
|
Accumulated comprehensive loss at beginning of the year
|
$
|
(537,216
|
)
|
|
$
|
(26,023
|
)
|
|
$
|
(64,495
|
)
|
|
$
|
(627,734
|
)
|
|
$
|
(250,355
|
)
|
|
$
|
(33,666
|
)
|
|
$
|
(50,244
|
)
|
|
$
|
(334,265
|
)
|
|
Other comprehensive income (loss) before reclassifications
|
(3,249
|
)
|
|
(10,758
|
)
|
|
7,827
|
|
|
(6,180
|
)
|
|
69,932
|
|
|
5,082
|
|
|
(10,361
|
)
|
|
64,653
|
|
||||||||
|
Amounts reclassified from accumulated other comprehensive loss
|
(19,642
|
)
|
|
383
|
|
|
—
|
|
|
(19,259
|
)
|
|
3,698
|
|
|
714
|
|
|
—
|
|
|
4,412
|
|
||||||||
|
Net current-period other comprehensive income (loss)
|
(22,891
|
)
|
|
(10,375
|
)
|
|
7,827
|
|
|
(25,439
|
)
|
|
73,630
|
|
|
5,796
|
|
|
(10,361
|
)
|
|
69,065
|
|
||||||||
|
Ending balance
|
$
|
(560,107
|
)
|
|
$
|
(36,398
|
)
|
|
$
|
(56,668
|
)
|
|
$
|
(653,173
|
)
|
|
$
|
(176,725
|
)
|
|
$
|
(27,870
|
)
|
|
$
|
(60,605
|
)
|
|
$
|
(265,200
|
)
|
|
|
|
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income
|
|
|
||||||||||||||
|
Details About Accumulated Other Comprehensive Income (Loss) Components
|
|
Quarter Ended June 30, 2019
|
|
Quarter Ended June 30, 2018
|
|
Six Months Ended June 30, 2019
|
|
Six Months Ended June 30, 2018
|
|
Affected Line Item in Statements of
Comprehensive Income (Loss) |
||||||||
|
Gain (loss) on cash flow derivative hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Interest rate swaps
|
|
$
|
(409
|
)
|
|
$
|
(2,138
|
)
|
|
$
|
(800
|
)
|
|
$
|
(8,976
|
)
|
|
Interest expense, net of interest capitalized
|
|
Foreign currency forward contracts
|
|
(3,545
|
)
|
|
(3,156
|
)
|
|
(6,879
|
)
|
|
(6,468
|
)
|
|
Depreciation and amortization expenses
|
||||
|
Foreign currency forward contracts
|
|
(1,300
|
)
|
|
14,601
|
|
|
(2,615
|
)
|
|
14,643
|
|
|
Other income (expense)
|
||||
|
Fuel swaps
|
|
(1,188
|
)
|
|
(133
|
)
|
|
(1,444
|
)
|
|
192
|
|
|
Other income (expense)
|
||||
|
Fuel swaps
|
|
13,362
|
|
|
2,043
|
|
|
31,380
|
|
|
(3,089
|
)
|
|
Fuel
|
||||
|
|
|
6,920
|
|
|
11,217
|
|
|
19,642
|
|
|
(3,698
|
)
|
|
|
||||
|
Amortization of defined benefit plans:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Actuarial loss
|
|
(195
|
)
|
|
(372
|
)
|
|
(383
|
)
|
|
(714
|
)
|
|
Payroll and related
|
||||
|
|
|
(195
|
)
|
|
(372
|
)
|
|
(383
|
)
|
|
(714
|
)
|
|
|
||||
|
Foreign cumulative translation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Other operating
|
||||
|
Total reclassifications for the period
|
|
$
|
6,725
|
|
|
$
|
10,845
|
|
|
$
|
19,259
|
|
|
$
|
(4,412
|
)
|
|
|
|
|
|
Fair Value Measurements at June 30, 2019 Using
|
|
Fair Value Measurements at December 31, 2018 Using
|
||||||||||||||||||||||||||||||||||||
|
Description
|
|
Total Carrying Amount
|
|
Total Fair Value
|
|
Level 1(1)
|
|
Level 2(2)
|
|
Level 3(3)
|
|
Total Carrying Amount
|
|
Total Fair Value
|
|
Level 1(1)
|
|
Level 2(2)
|
|
Level 3(3)
|
||||||||||||||||||||
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
Cash and cash equivalents(4)
|
|
$
|
235,001
|
|
|
$
|
235,001
|
|
|
$
|
235,001
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
287,852
|
|
|
$
|
287,852
|
|
|
$
|
287,852
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Total Assets
|
|
$
|
235,001
|
|
|
$
|
235,001
|
|
|
$
|
235,001
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
287,852
|
|
|
$
|
287,852
|
|
|
$
|
287,852
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
Long-term debt (including current portion of debt)(5)
|
|
$
|
9,625,559
|
|
|
$
|
10,337,397
|
|
|
$
|
—
|
|
|
$
|
10,337,397
|
|
|
$
|
—
|
|
|
$
|
9,871,267
|
|
|
$
|
10,244,214
|
|
|
$
|
—
|
|
|
$
|
10,244,214
|
|
|
$
|
—
|
|
|
Total Liabilities
|
|
$
|
9,625,559
|
|
|
$
|
10,337,397
|
|
|
$
|
—
|
|
|
$
|
10,337,397
|
|
|
$
|
—
|
|
|
$
|
9,871,267
|
|
|
$
|
10,244,214
|
|
|
$
|
—
|
|
|
$
|
10,244,214
|
|
|
$
|
—
|
|
|
|
|
Fair Value Measurements at June 30, 2019 Using
|
|
Fair Value Measurements at December 31, 2018 Using
|
||||||||||||||||||||||||||||
|
Description
|
|
Total
|
|
Level 1(1)
|
|
Level 2(2)
|
|
Level 3(3)
|
|
Total
|
|
Level 1(1)
|
|
Level 2(2)
|
|
Level 3(3)
|
||||||||||||||||
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Derivative financial instruments(4)
|
|
$
|
78,441
|
|
|
$
|
—
|
|
|
$
|
78,441
|
|
|
$
|
—
|
|
|
$
|
65,297
|
|
|
$
|
—
|
|
|
$
|
65,297
|
|
|
$
|
—
|
|
|
Total Assets
|
|
$
|
78,441
|
|
|
$
|
—
|
|
|
$
|
78,441
|
|
|
$
|
—
|
|
|
$
|
65,297
|
|
|
$
|
—
|
|
|
$
|
65,297
|
|
|
$
|
—
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Derivative financial instruments(5)
|
|
$
|
185,733
|
|
|
$
|
—
|
|
|
$
|
185,733
|
|
|
$
|
—
|
|
|
$
|
201,812
|
|
|
$
|
—
|
|
|
$
|
201,812
|
|
|
$
|
—
|
|
|
Contingent consideration (6)
|
|
54,700
|
|
|
—
|
|
|
—
|
|
|
54,700
|
|
|
44,000
|
|
|
—
|
|
|
—
|
|
|
44,000
|
|
||||||||
|
Total Liabilities
|
|
$
|
240,433
|
|
|
$
|
—
|
|
|
$
|
185,733
|
|
|
$
|
54,700
|
|
|
$
|
245,812
|
|
|
$
|
—
|
|
|
$
|
201,812
|
|
|
$
|
44,000
|
|
|
(1)
|
Inputs based on quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access. Valuation of these items does not entail a significant amount of judgment.
|
|
(2)
|
Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. For foreign currency forward contracts, interest rate swaps and fuel swaps, fair value is derived using valuation models that utilize the income valuation approach. These valuation models take into account the contract terms, such as maturity, as well as other inputs, such as foreign exchange rates and curves, fuel types, fuel curves and interest rate yield curves. Derivative instrument fair values take into account the creditworthiness of the counterparty and the Company.
|
|
(3)
|
Inputs that are unobservable.
|
|
(4)
|
Consists of foreign currency forward contracts, interest rate swaps and fuel swaps. Refer to the “Fair Value of Derivative Instruments” table for breakdown by instrument type.
|
|
(5)
|
Consists of foreign currency forward contracts, interest rate swaps and fuel swaps. Refer to the “Fair Value of Derivative Instruments” table for breakdown by instrument type.
|
|
(6)
|
The contingent consideration related to the Silversea Cruises acquisition is estimated by applying a Monte-Carlo simulation method using our closing stock price along with significant inputs not observable in the market, including the probability of achieving the milestones and estimated future operating results. The Monte-Carlo simulation is a generally accepted statistical technique used to generate a defined number of valuation paths in order to develop a reasonable estimate of fair value. Refer to Note 3. Business Combination for further information on the Silversea Cruises acquisition. For the quarter and six months ended June 30, 2019, we recorded a contingent consideration expense of $10.7 million recorded within Other (expense) income in our consolidated statements of comprehensive income (loss).
|
|
|
|
Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements
|
||||||||||||||||||||||||||||||
|
|
|
As of June 30, 2019
|
|
As of December 31, 2018
|
||||||||||||||||||||||||||||
|
|
|
Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheet
|
|
Gross Amount of Eligible Offsetting
Recognized Derivative Liabilities |
|
Cash Collateral
Received |
|
Net Amount of
Derivative Assets |
|
Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheet
|
|
Gross Amount of Eligible Offsetting
Recognized Derivative Assets |
|
Cash Collateral
Received |
|
Net Amount of
Derivative Assets |
||||||||||||||||
|
Derivatives subject to master netting agreements
|
|
$
|
78,441
|
|
|
$
|
(76,389
|
)
|
|
$
|
—
|
|
|
$
|
2,052
|
|
|
$
|
65,297
|
|
|
$
|
(60,303
|
)
|
|
$
|
—
|
|
|
$
|
4,994
|
|
|
Total
|
|
$
|
78,441
|
|
|
$
|
(76,389
|
)
|
|
$
|
—
|
|
|
$
|
2,052
|
|
|
$
|
65,297
|
|
|
$
|
(60,303
|
)
|
|
$
|
—
|
|
|
$
|
4,994
|
|
|
|
|
Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements
|
||||||||||||||||||||||||||||||
|
|
|
As of June 30, 2019
|
|
As of December 31, 2018
|
||||||||||||||||||||||||||||
|
|
|
Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheet
|
|
Gross Amount of Eligible Offsetting
Recognized Derivative Assets |
|
Cash Collateral
Pledged |
|
Net Amount of
Derivative Liabilities |
|
Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheet
|
|
Gross Amount of Eligible Offsetting
Recognized Derivative Liabilities |
|
Cash Collateral
Pledged |
|
Net Amount of
Derivative Liabilities |
||||||||||||||||
|
Derivatives subject to master netting agreements
|
|
$
|
(185,733
|
)
|
|
$
|
76,389
|
|
|
$
|
—
|
|
|
$
|
(109,344
|
)
|
|
$
|
(201,812
|
)
|
|
$
|
60,303
|
|
|
$
|
—
|
|
|
$
|
(141,509
|
)
|
|
Total
|
|
$
|
(185,733
|
)
|
|
$
|
76,389
|
|
|
$
|
—
|
|
|
$
|
(109,344
|
)
|
|
$
|
(201,812
|
)
|
|
$
|
60,303
|
|
|
$
|
—
|
|
|
$
|
(141,509
|
)
|
|
Debt Instrument
|
Swap Notional as of June 30, 2019 (In thousands)
|
Maturity
|
Debt Fixed Rate
|
Swap Floating Rate: LIBOR plus
|
All-in Swap Floating Rate as of June 30, 2019
|
||
|
Oasis of the Seas term loan
|
$
|
87,500
|
|
October 2021
|
5.41%
|
3.87%
|
6.49%
|
|
Unsecured senior notes
|
650,000
|
|
November 2022
|
5.25%
|
3.63%
|
6.15%
|
|
|
|
$
|
737,500
|
|
|
|
|
|
|
Debt Instrument
|
Swap Notional as of June 30, 2019 (In thousands)
|
Maturity
|
Debt Floating Rate
|
All-in Swap Fixed Rate
|
|||
|
Celebrity Reflection term loan
|
$
|
299,979
|
|
October 2024
|
LIBOR plus
|
0.40%
|
2.85%
|
|
Quantum of the Seas term loan
|
459,375
|
|
October 2026
|
LIBOR plus
|
1.30%
|
3.74%
|
|
|
Anthem of the Seas term loan
|
483,333
|
|
April 2027
|
LIBOR plus
|
1.30%
|
3.86%
|
|
|
Ovation of the Seas term loan
|
622,500
|
|
April 2028
|
LIBOR plus
|
1.00%
|
3.16%
|
|
|
Harmony of the Seas term loan (1)
|
592,129
|
|
May 2028
|
EURIBOR plus
|
1.15%
|
2.26%
|
|
|
Odyssey of the Seas term loan (2)
|
460,000
|
|
October 2032
|
LIBOR plus
|
0.95%
|
3.20%
|
|
|
|
$
|
2,917,316
|
|
|
|
|
|
|
(1)
|
Interest rate swap agreements hedging the Euro-denominated term loan for Harmony of the Seas include EURIBOR zero-floor matching the hedged debt EURIBOR zero-floor. Amount presented is based on the exchange rate as of June 30, 2019.
|
|
(2)
|
Interest rate swap agreements hedging the term loan for Odyssey of the Seas includes a LIBOR zero-floor matching the hedged debt zero-floor. The anticipated unsecured term loan for the financing of Odyssey of the Seas is expected to be drawn in October 2020.
|
|
|
Fuel Swap Agreements
|
||||
|
|
As of June 30, 2019
|
|
As of December 31, 2018
|
||
|
|
(% hedged)
|
||||
|
Projected fuel purchases:
|
|
|
|
|
|
|
2019
|
59
|
%
|
|
58
|
%
|
|
2020
|
55
|
%
|
|
54
|
%
|
|
2021
|
30
|
%
|
|
28
|
%
|
|
2022
|
19
|
%
|
|
19
|
%
|
|
2023
|
5
|
%
|
|
—
|
%
|
|
|
|
Fair Value of Derivative Instruments
|
||||||||||||||||||
|
|
|
Asset Derivatives
|
|
Liability Derivatives
|
||||||||||||||||
|
|
|
Balance Sheet Location
|
|
As of June 30, 2019
|
|
As of December 31, 2018
|
|
Balance Sheet Location
|
|
As of June 30, 2019
|
|
As of December 31, 2018
|
||||||||
|
|
|
|
Fair Value
|
|
Fair Value
|
|
|
Fair Value
|
|
Fair Value
|
||||||||||
|
Derivatives designated as hedging instruments under ASC 815-20(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Interest rate swaps
|
|
Other assets
|
|
$
|
—
|
|
|
$
|
23,518
|
|
|
Other long-term liabilities
|
|
$
|
64,442
|
|
|
$
|
40,467
|
|
|
Foreign currency forward contracts
|
|
Derivative financial instruments
|
|
4,343
|
|
|
4,044
|
|
|
Derivative financial instruments
|
|
24,742
|
|
|
39,665
|
|
||||
|
Foreign currency forward contracts
|
|
Other assets
|
|
9,514
|
|
|
10,844
|
|
|
Other long-term liabilities
|
|
54,632
|
|
|
16,854
|
|
||||
|
Fuel swaps
|
|
Derivative financial instruments
|
|
32,520
|
|
|
10,966
|
|
|
Derivative financial instruments
|
|
12,956
|
|
|
37,627
|
|
||||
|
Fuel swaps
|
|
Other assets
|
|
30,361
|
|
|
9,204
|
|
|
Other long-term liabilities
|
|
28,926
|
|
|
65,182
|
|
||||
|
Total derivatives designated as hedging instruments under 815-20
|
|
|
|
76,738
|
|
|
58,576
|
|
|
|
|
185,698
|
|
|
199,795
|
|
||||
|
Derivatives not designated as hedging instruments under ASC 815-20
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Foreign currency forward contracts
|
|
Derivative financial instruments
|
|
$
|
—
|
|
|
$
|
1,751
|
|
|
Derivative financial instruments
|
|
$
|
—
|
|
|
$
|
808
|
|
|
Foreign currency forward contracts
|
|
Other assets
|
|
—
|
|
|
1,579
|
|
|
Other long-term liabilities
|
|
—
|
|
|
833
|
|
||||
|
Fuel swaps
|
|
Derivative financial instruments
|
|
1,696
|
|
|
2,804
|
|
|
Derivative financial instruments
|
|
20
|
|
|
376
|
|
||||
|
Fuel swaps
|
|
Other Assets
|
|
7
|
|
|
587
|
|
|
Other long-term liabilities
|
|
15
|
|
|
—
|
|
||||
|
Total derivatives not designated as hedging instruments under 815-20
|
|
|
|
1,703
|
|
|
6,721
|
|
|
|
|
35
|
|
|
2,017
|
|
||||
|
Total derivatives
|
|
|
|
$
|
78,441
|
|
|
$
|
65,297
|
|
|
|
|
$
|
185,733
|
|
|
$
|
201,812
|
|
|
(1)
|
Accounting Standard Codification 815-20 “Derivatives and Hedging.”
|
|
|
|
|
|
Quarter Ended June 30, 2019
|
|
Quarter Ended June 30, 2018
|
||||||||||||||
|
|
|
|
|
|
Fuel Expense
|
|
Depreciation and Amortization Expenses
|
|
Interest Income (Expense)
|
|
Other Income (Expense)
|
|
|
Fuel Expense
|
|
Depreciation and Amortization Expenses
|
|
Interest Income (Expense)
|
|
Other Income (Expense)
|
|
Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded
|
|
$181,924
|
|
$311,600
|
|
$(104,962)
|
|
$(21,781)
|
|
|
$172,309
|
|
$253,376
|
|
$(68,766)
|
|
$33,855
|
|||
|
The effects of fair value and cash flow hedging:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Gain or (loss) on fair value hedging relationships in Subtopic 815-20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
Interest contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hedged items
|
|
n/a
|
|
n/a
|
|
$(13,287)
|
|
$—
|
|
|
n/a
|
|
n/a
|
|
$3,374
|
|
$—
|
|
|
|
|
Derivatives designated as hedging instruments
|
|
n/a
|
|
n/a
|
|
$10,944
|
|
$—
|
|
|
n/a
|
|
n/a
|
|
$(5,310)
|
|
$—
|
|
|
Gain or (loss) on cash flow hedging relationships in Subtopic 815-20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
Interest contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount of gain or (loss) reclassified from accumulated other comprehensive income (loss) into income
|
|
n/a
|
|
n/a
|
|
$(409)
|
|
n/a
|
|
|
n/a
|
|
n/a
|
|
$(2,138)
|
|
n/a
|
|
|
|
Commodity contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount of gain or (loss) reclassified from accumulated other comprehensive income (loss) into income
|
|
$13,362
|
|
n/a
|
|
n/a
|
|
$(1,188)
|
|
|
$2,043
|
|
n/a
|
|
n/a
|
|
$(133)
|
|
|
|
Foreign exchange contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount of gain or (loss) reclassified from accumulated other comprehensive income (loss) into income
|
|
n/a
|
|
$(3,545)
|
|
n/a
|
|
$(1,300)
|
|
|
n/a
|
|
$(3,156)
|
|
n/a
|
|
$14,601
|
|
|
|
|
|
Six Months Ended June 30, 2019
|
|
Six Months Ended June 30, 2018
|
||||||||||||||
|
|
|
|
|
|
Fuel Expense
|
|
Depreciation and Amortization Expenses
|
|
Interest Income (Expense)
|
|
Other Income (Expense)
|
|
|
Fuel Expense
|
|
Depreciation and Amortization Expenses
|
|
Interest Income (Expense)
|
|
Other Income (Expense)
|
|
Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded
|
|
$342,095
|
|
$603,885
|
|
$(195,593)
|
|
$(26,869)
|
|
|
$332,650
|
|
$493,606
|
|
$(128,911)
|
|
$9,755
|
|||
|
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
|
|
$(21,746)
|
|
—
|
|
|
n/a
|
|
n/a
|
|
$16,556
|
|
—
|
|
|
|
|
Derivatives designated as hedging instruments
|
|
n/a
|
|
n/a
|
|
$16,779
|
|
—
|
|
|
n/a
|
|
n/a
|
|
$(17,880)
|
|
—
|
|
|
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
|
|
$(800)
|
|
n/a
|
|
|
n/a
|
|
n/a
|
|
$(8,976)
|
|
n/a
|
|
|
|
Commodity contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income
|
|
$31,380
|
|
n/a
|
|
n/a
|
|
$(1,444)
|
|
|
$(3,089)
|
|
n/a
|
|
n/a
|
|
$192
|
|
|
|
Foreign exchange contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income
|
|
n/a
|
|
$(6,879)
|
|
n/a
|
|
$(2,615)
|
|
|
n/a
|
|
$(6,468)
|
|
n/a
|
|
$14,643
|
|
|
|
|
|
Carrying Value
|
||||||
|
Non-derivative instrument designated as
hedging instrument under ASC 815-20 |
|
Balance Sheet Location
|
|
As of June 30, 2019
|
|
As of December 31, 2018
|
||||
|
Foreign currency debt
|
|
Current portion of debt
|
|
$
|
(75,697
|
)
|
|
$
|
38,168
|
|
|
Foreign currency debt
|
|
Long-term debt
|
|
(149,177
|
)
|
|
281,984
|
|
||
|
|
|
|
|
$
|
(224,874
|
)
|
|
$
|
320,152
|
|
|
Derivatives and Related Hedged Items under ASC 815-20 Fair Value Hedging Relationships
|
|
Location of Gain (Loss) Recognized in Income on Derivative and Hedged Item
|
|
Amount of Gain (Loss)
Recognized in Income on Derivative |
|
Amount of Gain (Loss)
Recognized in Income on Hedged Item |
||||||||||||||||||||||||||||
|
Quarter Ended June 30, 2019
|
|
Quarter Ended June 30, 2018
|
|
Six Months Ended June 30, 2019
|
|
Six Months Ended June 30, 2018
|
|
Quarter Ended June 30, 2019
|
|
Quarter Ended June 30, 2018
|
|
Six Months Ended June 30, 2019
|
|
Six Months Ended June 30, 2018
|
||||||||||||||||||||
|
Interest rate swaps
|
|
Interest expense, net of interest capitalized
|
|
$
|
10,944
|
|
|
$
|
(5,310
|
)
|
|
$
|
16,779
|
|
|
$
|
(17,880
|
)
|
|
$
|
(13,287
|
)
|
|
$
|
3,374
|
|
|
$
|
(21,746
|
)
|
|
$
|
16,556
|
|
|
|
|
|
|
$
|
10,944
|
|
|
$
|
(5,310
|
)
|
|
$
|
16,779
|
|
|
$
|
(17,880
|
)
|
|
$
|
(13,287
|
)
|
|
$
|
3,374
|
|
|
$
|
(21,746
|
)
|
|
$
|
16,556
|
|
|
Derivatives
under ASC 815-20 Cash Flow Hedging Relationships |
|
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 (Loss) into Income |
||||||||||||||||||||||||||||
|
Quarter Ended June 30, 2019
|
|
Quarter Ended June 30, 2018
|
|
Six Months Ended June 30, 2019
|
|
Six Months Ended June 30, 2018
|
|
|
Quarter Ended June 30, 2019
|
|
Quarter Ended June 30, 2018
|
|
Six Months Ended June 30, 2019
|
|
Six Months Ended June 30, 2018
|
|||||||||||||||||||
|
Interest rate swaps
|
|
$
|
(40,132
|
)
|
|
$
|
8,867
|
|
|
$
|
(68,461
|
)
|
|
$
|
46,058
|
|
|
Interest expense, net of interest capitalized
|
|
$
|
(409
|
)
|
|
$
|
(2,138
|
)
|
|
$
|
(800
|
)
|
|
$
|
(8,976
|
)
|
|
Foreign currency forward contracts
|
|
19,394
|
|
|
(193,329
|
)
|
|
(70,750
|
)
|
|
(97,963
|
)
|
|
Depreciation and amortization expenses
|
|
(3,545
|
)
|
|
(3,156
|
)
|
|
(6,879
|
)
|
|
(6,468
|
)
|
||||||||
|
Foreign currency forward contracts
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Other income (expense)
|
|
(1,300
|
)
|
|
14,601
|
|
|
(2,615
|
)
|
|
14,643
|
|
||||||||
|
Fuel swaps
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Other income (expense)
|
|
(1,188
|
)
|
|
(133
|
)
|
|
(1,444
|
)
|
|
192
|
|
||||||||
|
Fuel swaps
|
|
(44,076
|
)
|
|
126,778
|
|
|
135,962
|
|
|
121,837
|
|
|
Fuel
|
|
13,362
|
|
|
2,043
|
|
|
31,380
|
|
|
(3,089
|
)
|
||||||||
|
|
|
$
|
(64,814
|
)
|
|
$
|
(57,684
|
)
|
|
$
|
(3,249
|
)
|
|
$
|
69,932
|
|
|
|
|
$
|
6,920
|
|
|
$
|
11,217
|
|
|
$
|
19,642
|
|
|
$
|
(3,698
|
)
|
|
Gain (Loss) Recognized in Income (Net Investment Excluded Components)
|
|
Six Months Ended June 30, 2019
|
||
|
Net inception fair value at January 1, 2019
|
|
$
|
(8,359
|
)
|
|
Amount of gain recognized in income on derivatives for the period ended June 30, 2019
|
|
1,556
|
|
|
|
Amount of loss remaining to be amortized in accumulated other comprehensive loss, as of June 30, 2019
|
|
(4,518
|
)
|
|
|
Fair value at June 30, 2019
|
|
$
|
(11,321
|
)
|
|
|
|
Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss)
|
|
||||||||||||||
|
Non-derivative instruments under ASC 815-20
Net Investment Hedging Relationships
|
|
Quarter Ended June 30, 2019
|
|
Quarter Ended June 30, 2018
|
|
Six Months Ended June 30, 2019
|
|
Six Months Ended June 30, 2018
|
|
||||||||
|
Foreign Currency Debt
|
|
$
|
(2,994
|
)
|
|
$
|
15,853
|
|
|
$
|
2,708
|
|
|
$
|
7,609
|
|
|
|
|
|
$
|
(2,994
|
)
|
|
$
|
15,853
|
|
|
$
|
2,708
|
|
|
$
|
7,609
|
|
|
|
|
|
|
|
Amount of Gain (Loss) Recognized in Income on Derivatives
|
||||||||||||||
|
Derivatives Not Designated as Hedging
Instruments under ASC 815-20 |
|
Location of
Gain (Loss) Recognized in Income on Derivatives |
|
Quarter Ended June 30, 2019
|
|
Quarter Ended June 30, 2018
|
|
Six Months Ended June 30, 2019
|
|
Six Months Ended June 30, 2018
|
||||||||
|
Foreign currency forward contracts
|
|
Other income (expense)
|
|
$
|
(4,168
|
)
|
|
$
|
(36,894
|
)
|
|
$
|
846
|
|
|
$
|
(31,259
|
)
|
|
Fuel swaps
|
|
Fuel
|
|
122
|
|
|
(881
|
)
|
|
(14
|
)
|
|
1,326
|
|
||||
|
Fuel swaps
|
|
Other income (expense)
|
|
(21
|
)
|
|
213
|
|
|
(119
|
)
|
|
183
|
|
||||
|
|
|
|
|
$
|
(4,067
|
)
|
|
$
|
(37,562
|
)
|
|
$
|
713
|
|
|
$
|
(29,750
|
)
|
|
•
|
a review of our financial presentation, including discussion of certain operational and financial metrics we utilize to assist us in managing our business;
|
|
•
|
a discussion of our results of operations for the quarter and six months ended June 30, 2019 compared to the same periods in 2018;
|
|
•
|
a discussion of our business outlook, including our expectations for selected financial items for the third quarter and full year of 2019; and
|
|
•
|
a discussion of our liquidity and capital resources, including our future capital and contractual commitments and potential funding sources.
|
|
•
|
Passenger ticket revenues, which consist of revenue recognized from the sale of passenger tickets and the sale of air transportation to and from our ships; and
|
|
•
|
Onboard and other revenues, which consist primarily of revenues from the sale of goods and/or services onboard our ships not included in passenger ticket prices, cancellation fees, sales of vacation protection insurance, pre- and post-cruise tours and fees for operating certain port facilities. Onboard and other revenues also include revenues we receive from independent third party concessionaires that pay us a percentage of their revenues in exchange for the right to provide selected goods and/or services onboard our ships as well as revenues received for our bareboat charter, procurement and management related services we perform on behalf of our unconsolidated affiliates.
|
|
•
|
Commissions, transportation and other expenses, which consist of those costs directly associated with passenger ticket revenues, including travel agent commissions, air and other transportation expenses, port costs that vary with passenger head counts and related credit card fees;
|
|
•
|
Onboard and other expenses, which consist of the direct costs associated with onboard and other revenues, including the costs of products sold onboard our ships, vacation protection insurance premiums, costs associated with pre- and post-cruise tours and related credit card fees as well as the minimal costs associated with concession revenues, as the costs are mostly incurred by third-party concessionaires, and costs incurred for the procurement and management related services we perform on behalf of our unconsolidated affiliates;
|
|
•
|
Payroll and related expenses, which consist of costs for shipboard personnel (costs associated with our shoreside personnel are included in Marketing, selling and administrative expenses);
|
|
•
|
Food expenses, which include food costs for both guests and crew;
|
|
•
|
Fuel expenses, which include fuel and related delivery, storage and emission consumable costs and the financial impact of fuel swap agreements; and
|
|
•
|
Other operating expenses, which consist primarily of operating costs such as repairs and maintenance, port costs that do not vary with passenger head counts, vessel related insurance, entertainment and gains and /or losses related to the sale of our ships, if any.
|
|
•
|
Total revenues, excluding the effect of changes in foreign currency exchange rates, increased $502.0 million and $959.0 million for the quarter and six months ended June 30, 2019 respectively, as compared to the same periods in 2018. The increase was primarily due to an increase in capacity and an increase in ticket prices and onboard spending on a per passenger basis, which are further discussed below.
|
|
•
|
The effect of changes in foreign currency exchange rates related to our passenger ticket and onboard and other revenue transactions, denominated in currencies other than the United States dollar, resulted in a decrease in total revenues of $32.9 million and $77.9 million for the quarter and six months ended June 30, 2019 compared to the same periods in 2018.
|
|
•
|
Total cruise operating expenses, excluding the effect of changes in foreign currency exchange rates, increased $239.8 million and $488.8 million for the quarter and six months ended June 30, 2019 as compared to the same periods in 2018. The increase was primarily due to an increase in capacity and the addition of Silversea Cruises, which are further discussed below.
|
|
•
|
The effect of changes in foreign currency exchange rates related to our cruise operating expenses, denominated in currencies other than the United States dollar, resulted in a decrease in total operating expenses of $9.7 million and $21.1 million for the quarter and six months ended June 30, 2019 compared to the same periods in 2018.
|
|
•
|
The estimated negative impact resulting from the Grand Bahama drydock structure incident involving Oasis of the Seas and our share of the write-off of the related drydock by Grand Bahama is approximately $0.26 per share on a diluted basis to our Net Income attributable to Royal Caribbean Cruises Ltd. for the quarter and six months ended June 30, 2019.
|
|
•
|
Effective June 5th, 2019, we stopped sailings to Cuba as the U.S government rescinded authorized travel to Cuba under the People-to-People program and prohibited travel to Cuba via cruise ships. The estimated negative impact resulting from this regulatory change is approximately $0.04 per share on a diluted basis to our Net Income attributable to Royal Caribbean Cruises Ltd. for the quarter and six months ended June 30, 2019.
|
|
•
|
In April 2019, we entered into and drew in full on an unsecured three-year term loan agreement in the amount of $1.0 billion. Proceeds of this loan were used to repay the $700 million 364-day loan due July 2019 related to the acquisition of Silversea Cruises and the remaining balance of the unsecured term loan originally incurred in 2010 to purchase Allure of the Seas. The repayment of these loans resulted in a total loss on the extinguishment of debt of $6.3 million, which was recognized within Other (expense) income within our consolidated statements of comprehensive income (loss) for the quarter and six months ended June 30, 2019.
|
|
•
|
In February 2019, TUI Cruises, our 50% joint venture, took delivery of a new Mein Schiff 2 and the existing Mein Schiff 2 was renamed Mein Schiff Herz.
|
|
•
|
During the second quarter of 2019, we took delivery of Spectrum of the Seas and Celebrity Flora. To finance the purchases, we borrowed $908.0 million and €80.0 million, or approximately $91.1 million based on the exchange rate at June 30, 2019, respectively, under previously committed unsecured term loans. Refer to Note 8. Debt to our consolidated financial statements for further information. Spectrum of the Seas and Celebrity Flora entered service in April 2019 and at the end of June 2019, respectively.
|
|
•
|
In April 2019, we amended our $1.4 billion unsecured revolving credit facility due in 2020 to extend the termination date through April 2024, increase the facility size to $1.7 billion and reduce pricing. Refer to Note 8. Debt to our consolidated financial statements for further information.
|
|
•
|
In May 2019, we amended our $1.15 billion unsecured revolving credit facility due in 2022 to reduce pricing to match pricing on our $1.7 billion unsecured revolving credit facility due in 2024.
|
|
•
|
In April 2019, Silversea Cruises entered into an agreement with Meyer Werft to build two ships of a new generation, known as the Evolution-class. Refer to Note 11. Commitments and Contingencies to our consolidated financial statements for further information.
|
|
•
|
In June 2019, we entered into a $300 million unsecured term loan facility for the financing of Silversea Cruises' Silver Moon. Refer to Note 8. Debt to our consolidated financial statements for further information.
|
|
|
Quarter Ended June 30,
|
||||||||||||
|
|
2019
|
|
2018
|
||||||||||
|
|
|
|
% of Total
Revenues |
|
|
|
% of Total
Revenues |
||||||
|
Passenger ticket revenues
|
$
|
2,017,836
|
|
|
71.9
|
%
|
|
$
|
1,672,570
|
|
|
71.6
|
%
|
|
Onboard and other revenues
|
788,795
|
|
|
28.1
|
%
|
|
665,035
|
|
|
28.4
|
%
|
||
|
Total revenues
|
2,806,631
|
|
|
100.0
|
%
|
|
2,337,605
|
|
|
100.0
|
%
|
||
|
Cruise operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Commissions, transportation and other
|
426,934
|
|
|
15.2
|
%
|
|
358,305
|
|
|
15.3
|
%
|
||
|
Onboard and other
|
174,429
|
|
|
6.2
|
%
|
|
142,240
|
|
|
6.1
|
%
|
||
|
Payroll and related
|
265,569
|
|
|
9.5
|
%
|
|
226,315
|
|
|
9.7
|
%
|
||
|
Food
|
146,847
|
|
|
5.2
|
%
|
|
128,383
|
|
|
5.5
|
%
|
||
|
Fuel
|
181,924
|
|
|
6.5
|
%
|
|
172,309
|
|
|
7.4
|
%
|
||
|
Other operating
|
348,801
|
|
|
12.4
|
%
|
|
286,859
|
|
|
12.3
|
%
|
||
|
Total cruise operating expenses
|
1,544,504
|
|
|
55.0
|
%
|
|
1,314,411
|
|
|
56.2
|
%
|
||
|
Marketing, selling and administrative expenses
|
376,874
|
|
|
13.4
|
%
|
|
312,923
|
|
|
13.4
|
%
|
||
|
Depreciation and amortization expenses
|
311,600
|
|
|
11.1
|
%
|
|
253,376
|
|
|
10.8
|
%
|
||
|
Operating Income
|
573,653
|
|
|
20.4
|
%
|
|
456,895
|
|
|
19.5
|
%
|
||
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Interest income
|
6,342
|
|
|
0.2
|
%
|
|
13,098
|
|
|
0.6
|
%
|
||
|
Interest expense, net of interest capitalized
|
(111,304
|
)
|
|
(4.0
|
)%
|
|
(81,864
|
)
|
|
(3.5
|
)%
|
||
|
Equity investment income
|
33,045
|
|
|
1.2
|
%
|
|
44,311
|
|
|
1.9
|
%
|
||
|
Other (expense) income
|
(21,781
|
)
|
|
(0.8
|
)%
|
|
33,855
|
|
|
1.4
|
%
|
||
|
|
(93,698
|
)
|
|
(3.3
|
)%
|
|
9,400
|
|
|
0.4
|
%
|
||
|
Net Income
|
479,955
|
|
|
17.1
|
%
|
|
466,295
|
|
|
19.9
|
%
|
||
|
Less: Net Income attributable to noncontrolling interest
|
7,125
|
|
|
0.3
|
%
|
|
—
|
|
|
—
|
%
|
||
|
Net Income attributable to Royal Caribbean Cruises Ltd.
|
$
|
472,830
|
|
|
16.8
|
%
|
|
$
|
466,295
|
|
|
19.9
|
%
|
|
Diluted Earnings per Share
|
$
|
2.25
|
|
|
|
|
|
$
|
2.19
|
|
|
|
|
|
|
Six months ended June 30,
|
||||||||||||
|
|
2019
|
|
2018
|
||||||||||
|
|
|
|
% of Total
Revenues |
|
|
|
% of Total
Revenues |
||||||
|
Passenger ticket revenues
|
$
|
3,727,820
|
|
|
71.1
|
%
|
|
$
|
3,098,214
|
|
|
71.0
|
%
|
|
Onboard and other revenues
|
1,518,578
|
|
|
28.9
|
%
|
|
1,267,147
|
|
|
29.0
|
%
|
||
|
Total revenues
|
5,246,398
|
|
|
100.0
|
%
|
|
4,365,361
|
|
|
100.0
|
%
|
||
|
Cruise operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Commissions, transportation and other
|
790,089
|
|
|
15.1
|
%
|
|
648,914
|
|
|
14.9
|
%
|
||
|
Onboard and other
|
309,599
|
|
|
5.9
|
%
|
|
241,777
|
|
|
5.5
|
%
|
||
|
Payroll and related
|
535,101
|
|
|
10.2
|
%
|
|
453,471
|
|
|
10.4
|
%
|
||
|
Food
|
286,381
|
|
|
5.5
|
%
|
|
248,025
|
|
|
5.7
|
%
|
||
|
Fuel
|
342,095
|
|
|
6.5
|
%
|
|
332,650
|
|
|
7.6
|
%
|
||
|
Other operating
|
694,943
|
|
|
13.2
|
%
|
|
565,593
|
|
|
13.0
|
%
|
||
|
Total cruise operating expenses
|
2,958,208
|
|
|
56.4
|
%
|
|
2,490,430
|
|
|
57.0
|
%
|
||
|
Marketing, selling and administrative expenses
|
791,821
|
|
|
15.1
|
%
|
|
650,284
|
|
|
14.9
|
%
|
||
|
Depreciation and amortization expenses
|
603,885
|
|
|
11.5
|
%
|
|
493,606
|
|
|
11.3
|
%
|
||
|
Operating Income
|
892,484
|
|
|
17.0
|
%
|
|
731,041
|
|
|
16.7
|
%
|
||
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Interest income
|
16,126
|
|
|
0.3
|
%
|
|
20,831
|
|
|
0.5
|
%
|
||
|
Interest expense, net of interest capitalized
|
(211,719
|
)
|
|
(4.0
|
)%
|
|
(149,742
|
)
|
|
(3.4
|
)%
|
||
|
Equity investment income
|
66,739
|
|
|
1.3
|
%
|
|
73,063
|
|
|
1.7
|
%
|
||
|
Other (expense) income
|
(26,869
|
)
|
|
(0.5
|
)%
|
|
9,755
|
|
|
0.2
|
%
|
||
|
|
(155,723
|
)
|
|
(3.0
|
)%
|
|
(46,093
|
)
|
|
(1.1
|
)%
|
||
|
Net Income
|
736,761
|
|
|
14.0
|
%
|
|
684,948
|
|
|
15.7
|
%
|
||
|
Less: Net Income attributable to noncontrolling interest
|
14,250
|
|
|
0.3
|
%
|
|
—
|
|
|
—
|
%
|
||
|
Net Income attributable to Royal Caribbean Cruises Ltd.
|
$
|
722,511
|
|
|
13.8
|
%
|
|
$
|
684,948
|
|
|
15.7
|
%
|
|
Diluted Earnings per Share
|
$
|
3.44
|
|
|
|
|
|
$
|
3.21
|
|
|
|
|
|
|
Quarter Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
Net Income attributable to Royal Caribbean Cruises Ltd.
|
$
|
472,830
|
|
|
$
|
466,295
|
|
|
$
|
722,511
|
|
|
$
|
684,948
|
|
|
Adjusted Net Income attributable to Royal Caribbean Cruises Ltd.
|
532,735
|
|
|
482,221
|
|
|
808,582
|
|
|
714,979
|
|
||||
|
Net Adjustments to Net Income attributable to Royal Caribbean Cruises Ltd. - Increase
|
$
|
59,905
|
|
|
$
|
15,926
|
|
|
$
|
86,071
|
|
|
$
|
30,031
|
|
|
Adjustments to Net Income attributable to Royal Caribbean Cruises Ltd.:
|
|
|
|
|
|
|
|
||||||||
|
Grand Bahama's drydock write-off(1)
|
$
|
15,121
|
|
|
$
|
—
|
|
|
$
|
15,121
|
|
|
$
|
—
|
|
|
Noncontrolling interest adjustment(2)
|
12,663
|
|
|
—
|
|
|
34,574
|
|
|
—
|
|
||||
|
Oasis of the Seas incident(3)
|
12,026
|
|
|
—
|
|
|
12,026
|
|
|
—
|
|
||||
|
Change in the fair value of contingent consideration related to Silversea Cruises acquisition(4)
|
10,700
|
|
|
—
|
|
|
10,700
|
|
|
—
|
|
||||
|
Loss on extinguishment of debt
|
6,326
|
|
|
—
|
|
|
6,326
|
|
|
—
|
|
||||
|
Amortization of Silversea Cruises intangible assets resulting from the acquisition(4)
|
3,069
|
|
|
—
|
|
|
6,138
|
|
|
—
|
|
||||
|
Transaction costs related to Silversea Cruises acquisition(4)
|
—
|
|
|
4,671
|
|
|
1,186
|
|
|
4,671
|
|
||||
|
Impairment and other costs related to exit of tour operations business(5)
|
—
|
|
|
11,255
|
|
|
—
|
|
|
11,255
|
|
||||
|
Impairment loss related to Skysea Holding(6)
|
—
|
|
|
—
|
|
|
—
|
|
|
23,343
|
|
||||
|
Impact of change in accounting principle(7)
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,238
|
)
|
||||
|
Net Adjustments to Net Income attributable to Royal Caribbean Cruises Ltd. - Increase
|
$
|
59,905
|
|
|
$
|
15,926
|
|
|
$
|
86,071
|
|
|
$
|
30,031
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Basic:
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Earnings per Share
|
$
|
2.26
|
|
|
$
|
2.20
|
|
|
$
|
3.45
|
|
|
$
|
3.23
|
|
|
Adjusted Earnings per Share
|
$
|
2.54
|
|
|
$
|
2.28
|
|
|
$
|
3.86
|
|
|
$
|
3.37
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Diluted:
|
|
|
|
|
|
|
|
||||||||
|
Earnings per Share
|
$
|
2.25
|
|
|
$
|
2.19
|
|
|
$
|
3.44
|
|
|
$
|
3.21
|
|
|
Adjusted Earnings per Share
|
$
|
2.54
|
|
|
$
|
2.27
|
|
|
$
|
3.85
|
|
|
$
|
3.36
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Weighted-Average Shares Outstanding:
|
|
|
|
|
|
|
|
||||||||
|
Basic
|
209,531
|
|
|
211,673
|
|
|
209,427
|
|
|
212,139
|
|
||||
|
Diluted
|
210,052
|
|
|
212,509
|
|
|
209,962
|
|
|
213,079
|
|
||||
|
(1)
|
Refer to Note 7. Other Assets to our consolidated financial statements for information on the Grand Bahama's incident involving one of its drydocks.
|
|
(2)
|
Adjustment made to exclude the impact of the contractual accretion requirements associated with the put option held by Heritage Cruise Holding Ltd.'s (previously known as Silversea Cruises Group Ltd.) noncontrolling interest. Refer to Note 10. Redeemable Noncontrolling Interest to our consolidated financial statements for further information on the noncontrolling interest.
|
|
(3)
|
Represents incidental costs related to the collapse of the drydock structure at the Grand Bahama Shipyard involving Oasis of the Seas, which were reported primarily within Other operating expenses in our consolidated statements of comprehensive income (loss) for the quarter and six months ended June 30, 2019.
|
|
(4)
|
Refer to Note 3. Business Combination to our consolidated financial statements for information on the Silversea Cruises acquisition.
|
|
(5)
|
In 2014, we created a tour operations business that focused on developing, marketing and selling land based tours around the world through an e-commerce platform. During the second quarter of 2018, we decided to cease operations and exit this business. As a result, we incurred exit costs, primarily consisting of fixed asset impairment charges and severance expense.
|
|
(6)
|
Refer to Note 7. Other Assets to our consolidated financial statements for information on the impairment loss related to Skysea Holding.
|
|
(7)
|
In January 2018, we elected to change our accounting policy for recognizing stock-based compensation expense from the graded attribution method to the straight-line attribution method for time-based stock awards, resulting in an increase to Net Income attributable to Royal Caribbean Cruises Ltd. of $9.2 million, which is reported within Marketing, selling and administrative expenses in our consolidated statements of comprehensive income (loss) for the six months ended June 30, 2018.
|
|
|
Quarter Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||
|
|
2019(1)
|
|
2018
|
|
2019(1)
|
|
2018
|
||||
|
Passengers Carried
|
1,663,900
|
|
|
1,461,055
|
|
|
3,197,126
|
|
|
2,866,006
|
|
|
Passenger Cruise Days
|
11,321,528
|
|
|
10,213,067
|
|
|
21,883,345
|
|
|
19,838,849
|
|
|
APCD
|
10,437,420
|
|
|
9,402,736
|
|
|
20,298,020
|
|
|
18,318,442
|
|
|
Occupancy
|
108.5
|
%
|
|
108.6
|
%
|
|
107.8
|
%
|
|
108.3
|
%
|
|
(1)
|
Due to the three-month reporting lag, we include Silversea Cruises' result of operations from January 1, 2019 through March 31, 2019 for the quarter ended June 30, 2019 and from October 1, 2018 through March 31, 2019 for the six months ended June 30, 2019. Refer to Note 1. General and Note 3. Business Combination to our consolidated financial statements for more information on the three-month reporting lag and the Silversea Cruises acquisition.
|
|
|
Quarter Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||||||
|
|
2019
|
|
2019 On a Constant Currency Basis
|
|
2018
|
|
2019
|
|
2019 On a Constant Currency Basis
|
|
2018
|
||||||||||||
|
Passenger ticket revenues
|
$
|
2,017,836
|
|
|
$
|
2,046,816
|
|
|
$
|
1,672,570
|
|
|
$
|
3,727,820
|
|
|
$
|
3,796,109
|
|
|
$
|
3,098,214
|
|
|
Onboard and other revenues
|
788,795
|
|
|
792,755
|
|
|
665,035
|
|
|
1,518,578
|
|
|
1,528,221
|
|
|
1,267,147
|
|
||||||
|
Total revenues
|
2,806,631
|
|
|
2,839,571
|
|
|
2,337,605
|
|
|
5,246,398
|
|
|
5,324,330
|
|
|
4,365,361
|
|
||||||
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Commissions, transportation and other
|
426,934
|
|
|
431,763
|
|
|
358,305
|
|
|
790,089
|
|
|
800,874
|
|
|
648,914
|
|
||||||
|
Onboard and other
|
174,429
|
|
|
175,484
|
|
|
142,240
|
|
|
309,599
|
|
|
311,167
|
|
|
241,777
|
|
||||||
|
Net Revenues
|
$
|
2,205,268
|
|
|
$
|
2,232,324
|
|
|
$
|
1,837,060
|
|
|
$
|
4,146,710
|
|
|
$
|
4,212,289
|
|
|
$
|
3,474,670
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
APCD
|
10,437,420
|
|
|
10,437,420
|
|
|
9,402,736
|
|
|
20,298,020
|
|
|
20,298,020
|
|
|
18,318,442
|
|
||||||
|
Gross Yields
|
$
|
268.90
|
|
|
$
|
272.06
|
|
|
$
|
248.61
|
|
|
$
|
258.47
|
|
|
$
|
262.31
|
|
|
$
|
238.30
|
|
|
Net Yields
|
$
|
211.28
|
|
|
$
|
213.88
|
|
|
$
|
195.38
|
|
|
$
|
204.29
|
|
|
$
|
207.52
|
|
|
$
|
189.68
|
|
|
|
Quarter Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||||||
|
|
2019
|
|
2019 On a Constant Currency Basis
|
|
2018
|
|
2019
|
|
2019 On a Constant Currency Basis
|
|
2018
|
||||||||||||
|
Total cruise operating expenses
|
$
|
1,544,504
|
|
|
$
|
1,554,172
|
|
|
$
|
1,314,411
|
|
|
$
|
2,958,208
|
|
|
$
|
2,979,273
|
|
|
$
|
2,490,430
|
|
|
Marketing, selling and administrative expenses (1) (2)
|
376,874
|
|
|
380,520
|
|
|
296,997
|
|
|
790,635
|
|
|
798,877
|
|
|
643,596
|
|
||||||
|
Gross Cruise Costs
|
1,921,378
|
|
|
1,934,692
|
|
|
1,611,408
|
|
|
3,748,843
|
|
|
3,778,150
|
|
|
3,134,026
|
|
||||||
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Commissions, transportation and other
|
426,934
|
|
|
431,763
|
|
|
358,305
|
|
|
790,089
|
|
|
800,874
|
|
|
648,914
|
|
||||||
|
Onboard and other
|
174,429
|
|
|
175,484
|
|
|
142,240
|
|
|
309,599
|
|
|
311,167
|
|
|
241,777
|
|
||||||
|
Net Cruise Costs including other costs
|
1,320,015
|
|
|
1,327,445
|
|
|
1,110,863
|
|
|
2,649,155
|
|
|
2,666,109
|
|
|
2,243,335
|
|
||||||
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Incidental costs related to the Oasis of the Seas incident included within cruise operating expenses
|
12,026
|
|
|
12,026
|
|
|
—
|
|
|
12,026
|
|
|
12,026
|
|
|
—
|
|
||||||
|
Net Cruise Costs
|
1,307,989
|
|
|
1,315,419
|
|
|
1,110,863
|
|
|
2,637,129
|
|
|
2,654,083
|
|
|
2,243,335
|
|
||||||
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Fuel(3)
|
181,228
|
|
|
181,233
|
|
|
172,309
|
|
|
341,399
|
|
|
341,417
|
|
|
332,650
|
|
||||||
|
Net Cruise Costs Excluding Fuel
|
$
|
1,126,761
|
|
|
$
|
1,134,186
|
|
|
$
|
938,554
|
|
|
$
|
2,295,730
|
|
|
$
|
2,312,666
|
|
|
$
|
1,910,685
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
APCD
|
10,437,420
|
|
|
10,437,420
|
|
|
9,402,736
|
|
|
20,298,020
|
|
|
20,298,020
|
|
|
18,318,442
|
|
||||||
|
Gross Cruise Costs per APCD
|
$
|
184.09
|
|
|
$
|
185.36
|
|
|
$
|
171.38
|
|
|
$
|
184.69
|
|
|
$
|
186.13
|
|
|
$
|
171.09
|
|
|
Net Cruise Costs per APCD
|
$
|
125.32
|
|
|
$
|
126.03
|
|
|
$
|
118.14
|
|
|
$
|
129.92
|
|
|
$
|
130.76
|
|
|
$
|
122.46
|
|
|
Net Cruise Costs Excluding Fuel per APCD
|
$
|
107.95
|
|
|
$
|
108.67
|
|
|
$
|
99.82
|
|
|
$
|
113.10
|
|
|
$
|
113.94
|
|
|
$
|
104.30
|
|
|
(1)
|
For the six months ended June 30, 2019, the amount does not include the transaction costs related to the Silversea Cruises acquisition of $1.2 million. For the quarter and six months ended June 30, 2018, the amount does not include the impairment and other costs related to the exit of our tour operations business of $11.3 million and transaction costs related to the Silversea Cruises acquisition of $4.7 million.
|
|
(2)
|
For the six months ended June 30, 2018, the amount does not include the impact of the change in accounting principle related to the recognition of stock-based compensation expense, which resulted in an increase to Net Income attributable to Royal Caribbean Cruises Ltd. of $9.2 million.
|
|
(3)
|
For the quarter and six months ended June 30, 2019, the amount does not include incremental fuel expenses incurred of $0.7 million related to the collapse of the drydock structure at the Grand Bahama Shipyard involving Oasis of the Seas.
|
|
|
As Reported
|
Constant Currency
|
|
Net Yields
|
6.5% to 7.0%
|
7.75% to 8.25%
|
|
Net Cruise Costs per APCD
|
Approx. 7.0%
|
Approx. 7.5%
|
|
Net Cruise Costs per APCD, Excluding Fuel
|
9.5% to 10.0%
|
10.0% to 10.5%
|
|
Capacity Change
|
8.1%
|
|
|
Depreciation and Amortization
|
$1,238 to $1,246 million
|
|
|
Interest Expense, net
|
$374 to $380 million
|
|
|
Fuel Consumption (metric tons)
|
1,476,300
|
|
|
Fuel Expenses
|
$703 million
|
|
|
Percent Hedged (fwd consumption)
|
59%
|
|
|
Adjusted Earnings per Share-Diluted
|
$9.55 to $9.65
|
|
|
|
Remaining Periods 2019
|
|
1% Change in Currency
|
$11 million
|
|
1% Change in Net Yields
|
$43 million
|
|
1% Change in NCC x Fuel
|
$20 million
|
|
100 basis pt. Change in LIBOR
|
$14 million
|
|
10% Change in Fuel Prices
|
$19 million
|
|
|
As Reported
|
Constant Currency
|
|
Net Yields
|
5.5% to 6.0%
|
Approx. 6.5%
|
|
Net Cruise Costs per APCD
|
7.0% to 7.5%
|
Approx. 7.5%
|
|
Net Cruise Costs per APCD, Excluding Fuel
|
Approx. 10.5%
|
Approx. 11.0%
|
|
Capacity Change
|
9.1%
|
|
|
Depreciation and Amortization
|
$316 to $320 million
|
|
|
Interest Expense, net
|
$94 to $98 million
|
|
|
Fuel Consumption (metric tons)
|
372,000
|
|
|
Fuel Expenses
|
$179 million
|
|
|
Percent Hedged (fwd consumption)
|
58%
|
|
|
Adjusted Earnings per Share-Diluted
|
Approx. $4.35
|
|
|
|
Third Quarter 2019
|
|
1% Change in Currency
|
$7 million
|
|
1% Change in Net Yields
|
$24 million
|
|
1% Change in NCC x Fuel
|
$10 million
|
|
100 basis pt. Change in LIBOR
|
$5 million
|
|
10% Change in Fuel Prices
|
$9 million
|
|
(1)
|
Due to the three-month reporting lag, Silversea Cruises does not impact the sensitivity analysis above for the third quarter 2019.
|
|
Ranking
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
FY 2019
|
|
1
|
|
AUD
|
|
GBP
|
|
GBP
|
|
AUD
|
|
GBP
|
|
2
|
|
CAD
|
|
CAD
|
|
CNH
|
|
GBP
|
|
AUD
|
|
3
|
|
GBP
|
|
AUD
|
|
EUR
|
|
CAD
|
|
CAD
|
|
4
|
|
CNH
|
|
CNH
|
|
CAD
|
|
EUR
|
|
CNH
|
|
5
|
|
EUR
|
|
MXN
|
|
AUD
|
|
CNH
|
|
EUR
|
|
Currency Abbreviation
|
|
Currency
|
|
AUD
|
|
Australian Dollar
|
|
CAD
|
|
Canadian Dollar
|
|
CNH
|
|
Chinese Yuan
|
|
EUR
|
|
Euro
|
|
GBP
|
|
British Pound
|
|
MXN
|
|
Mexican Peso
|
|
•
|
an 11.0% increase in capacity, which increased Passenger ticket revenues by $184.1 million, primarily due to the additions of Spectrum of the Seas in the second quarter of 2019, Azamara Pursuit in the third quarter of 2018, Celebrity Edge in the fourth quarter of 2018 and the addition of Silversea Cruises to our fleet in the second half of 2018; and
|
|
•
|
an increase of $190.0 million in ticket prices primarily driven by the improvement in our ticket price on a per passenger basis due to the addition of Silversea Cruises to our fleet in the second half of 2018, the additions of Spectrum of the Seas, Azamara Pursuit and Celebrity Edge, and higher pricing on our Caribbean and Asia/Pacific sailings.
|
|
•
|
a $71.6 million increase attributable to the 11.0% increase in capacity noted above;
|
|
•
|
a $38.4 million increase in onboard revenue attributable to higher spending on a per passenger basis primarily due to our revenue enhancing initiatives, including shore excursions, Perfect Day at CocoCay, specialty restaurants, internet services, beverage package sales and promotions, gaming initiatives and new programs and activities offered to our guests; and
|
|
•
|
a $17.7 million increase in other revenue primarily due to revenue associated with our new cruise terminal at PortMiami and cancellation fees associated with non-refundable deposits and higher pricing.
|
|
•
|
the 11.0% increase in capacity noted above, which increased cruise operating expenses by $143.2 million; and
|
|
•
|
a $101.8 million increase in total cruise operating expenses, excluding the impact of the increase in capacity and the decrease in fuel expense, was primarily due to the addition of Silversea Cruises to our fleet in the second half of 2018 and incidental costs related to the collapse of the drydock structure at the Grand Bahama Shipyard involving Oasis of the Seas.
|
|
•
|
a $9.2 million decrease in fuel expenses, excluding the impact of the increase in capacity. Our cost of fuel (net of the financial impact of fuel swap agreements) for 2019 decreased 5.0% per metric ton compared to 2018; and
|
|
•
|
a favorable effect of changes in foreign currency exchange rates related to our cruise operating expenses denominated in currencies other than the United States dollar of $9.7 million.
|
|
•
|
a 10.8% increase in capacity, which increased passenger ticket revenues by $334.9 million, primarily due to the additions of Spectrum of the Seas in the second quarter of 2019, Symphony of the Seas in the second quarter of 2018, Azamara Pursuit in the third quarter of 2018 and Celebrity Edge in the fourth quarter of 2018 and the addition of Silversea Cruises to our fleet in the second half of 2018; and
|
|
•
|
an increase of $363.0 million in ticket prices primarily driven by the improvement in our ticket price on a per passenger basis due to the addition of Silversea Cruises to our fleet in the second half of 2018, the additions of Spectrum of the Seas, Symphony of the Seas, Azamara Pursuit and Celebrity Edge, and higher pricing on our Caribbean and Asia/Pacific sailings.
|
|
•
|
a $133.9 million increase attributable to the 10.8% increase in capacity noted above;
|
|
•
|
an $85.7 million increase in onboard revenue attributable to higher spending on a per passenger basis primarily due to our revenue enhancing initiatives, including shore excursions, Perfect Day at CocoCay, specialty restaurants, internet services, beverage package sales and promotions, gaming initiatives and new programs and activities offered to our guests; and
|
|
•
|
a $41.5 million increase in other revenues primarily due to revenue associated with our new cruise terminal at PortMiami and cancellation fees associated with non-refundable deposits and higher pricing.
|
|
•
|
the 10.8% increase in capacity noted above, which increased cruise operating expenses by $266.8 million; and
|
|
•
|
a $248.3 million increase in total cruise operating expenses, excluding the impact of the increase in capacity and the decrease in fuel expense, was primarily due to the addition of Silversea Cruises to our fleet in the second half of 2018 as well as incidental costs related to the collapse of the drydock structure at the Grand Bahama Shipyard involving Oasis of the Seas, expenses associated with our new cruise terminal at PortMiami and Perfect Day at CocoCay and an increase in commission expense primarily due to a decrease in direct sales.
|
|
•
|
a $26.2 million decrease in fuel expenses, excluding the impact of the increase in capacity. Our cost of fuel (net of the financial impact of fuel swap agreements) for 2019 decreased 7.1% per metric ton compared to 2018; and
|
|
•
|
a favorable effect of changes in foreign currency exchange rates related to our expense transactions denominated in currencies other than the United States dollar of $21.1 million.
|
|
Ship
|
|
Shipyard
|
|
Expected to Enter
Service |
|
Approximate
Berths |
|
Royal Caribbean International —
|
|
|
|
|
|
|
|
Oasis-class:
|
|
|
|
|
|
|
|
Unnamed
|
|
Chantiers de l’Atlantique
|
|
2nd Quarter 2021
|
|
5,700
|
|
Quantum-class:
|
|
|
|
|
|
|
|
Odyssey of the Seas
|
|
Meyer Werft GmbH
|
|
4th Quarter 2020
|
|
4,200
|
|
Icon-class:
|
|
|
|
|
|
|
|
Unnamed
|
|
Meyer Turku Oy
|
|
2nd Quarter 2022
|
|
5,600
|
|
Unnamed
|
|
Meyer Turku Oy
|
|
2nd Quarter 2024
|
|
5,600
|
|
Celebrity Cruises —
|
|
|
|
|
|
|
|
Edge-class:
|
|
|
|
|
|
|
|
Celebrity Apex
|
|
Chantiers de l’Atlantique
|
|
2nd Quarter 2020
|
|
2,900
|
|
Unnamed
|
|
Chantiers de l’Atlantique
|
|
4th Quarter 2021
|
|
3,250
|
|
Unnamed
|
|
Chantiers de l’Atlantique
|
|
4th Quarter 2022
|
|
3,250
|
|
Silversea Cruises —
|
|
|
|
|
|
|
|
Silver Origin
|
|
De Hoop
|
|
2nd Quarter 2020
|
|
100
|
|
Silver Moon
|
|
Fincantieri
|
|
3rd Quarter 2020
|
|
550
|
|
Silver Dawn
|
|
Fincantieri
|
|
3rd Quarter 2021
|
|
550
|
|
TUI Cruises (50% joint venture) —
|
|
|
|
|
|
|
|
Mein Schiff 7
|
|
Meyer Turku Oy
|
|
2nd Quarter 2023
|
|
2,850
|
|
Unnamed
|
|
Fincantieri
|
|
3rd Quarter 2024
|
|
4,100
|
|
Unnamed
|
|
Fincantieri
|
|
1st Quarter 2026
|
|
4,100
|
|
Total Berths
|
|
|
|
|
|
42,750
|
|
Ship
|
|
Shipyard
|
|
Expected to Enter
Service |
|
Approximate
Berths |
|
Royal Caribbean International —
|
|
|
|
|
|
|
|
Oasis-class:
|
|
|
|
|
|
|
|
Unnamed
|
|
Chantiers de l’Atlantique
|
|
4th Quarter 2023
|
|
5,700
|
|
Icon-class:
|
|
|
|
|
|
|
|
Unnamed
|
|
Meyer Turku Oy
|
|
2nd Quarter 2025
|
|
5,600
|
|
Celebrity Cruises —
|
|
|
|
|
|
|
|
Edge-class:
|
|
|
|
|
|
|
|
Unnamed
|
|
Chantiers de l’Atlantique
|
|
4th Quarter 2024
|
|
3,250
|
|
|
Payments due by period
|
||||||||||||||||||
|
|
|
|
Less than
|
|
1-3
|
|
3-5
|
|
More than
|
||||||||||
|
|
Total
|
|
1 year
|
|
years
|
|
years
|
|
5 years
|
||||||||||
|
Operating Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Operating lease obligations(1)
|
$
|
992,062
|
|
|
$
|
123,565
|
|
|
$
|
222,886
|
|
|
$
|
194,204
|
|
|
$
|
451,407
|
|
|
Interest on debt(2)
|
2,088,454
|
|
|
369,588
|
|
|
637,367
|
|
|
417,716
|
|
|
663,783
|
|
|||||
|
Other(3)
|
491,609
|
|
|
188,731
|
|
|
231,712
|
|
|
35,808
|
|
|
35,358
|
|
|||||
|
Investing Activities:
|
0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Ship purchase obligations(4)
|
8,018,377
|
|
|
1,061,961
|
|
|
4,882,773
|
|
|
2,073,643
|
|
|
—
|
|
|||||
|
Financing Activities:
|
0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Commercial paper(5)
|
1,046,587
|
|
|
1,046,587
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
|
Debt obligations(6)
|
9,625,559
|
|
|
911,897
|
|
|
2,866,788
|
|
|
2,010,691
|
|
|
3,836,183
|
|
|||||
|
Finance lease obligations(7)
|
242,679
|
|
|
34,330
|
|
|
65,894
|
|
|
10,235
|
|
|
132,220
|
|
|||||
|
Other(8)
|
17,737
|
|
|
5,230
|
|
|
8,228
|
|
|
4,279
|
|
|
—
|
|
|||||
|
Total
|
$
|
22,523,064
|
|
|
$
|
3,741,889
|
|
|
$
|
8,915,648
|
|
|
$
|
4,746,576
|
|
|
$
|
5,118,951
|
|
|
(1)
|
We are obligated under noncancelable operating leases primarily for preferred berthing arrangements, real estate and shipboard equipment. Amounts represent contractual obligations with initial terms in excess of one year.
|
|
(2)
|
Long-term debt obligations mature at various dates through fiscal year 2036 and bear interest at fixed and variable rates. Interest on variable-rate debt is calculated based on forecasted debt balances, including the impact of interest rate swap agreements using the applicable rate at June 30, 2019. Debt denominated in other currencies is calculated based on the
|
|
(3)
|
Amounts primarily represent future commitments with remaining terms in excess of one year to pay for marine consumables, services and maintenance contracts, and our usage of certain port facilities.
|
|
(4)
|
Amounts do not include potential obligations which remain subject to cancellation at our sole discretion or any agreements entered for ships on order that remain contingent upon completion of conditions precedent. Additionally, amounts do not include activity related to Silversea Cruises, including ships placed on order, during the three-month reporting lag period. Refer to the Capital Expenditures section.
|
|
(5)
|
Refer to Note 8. Debt to our consolidated financial statements for further information.
|
|
(6)
|
Amounts represent debt obligations with initial terms in excess of one year. Debt denominated in other currencies is calculated based on the applicable exchange rate at June 30, 2019. In addition, debt obligations presented above are net of debt issuance costs of $182.9 million as of June 30, 2019.
|
|
(7)
|
Amounts represent finance lease obligations with initial terms in excess of one year, net of imputed interest.
|
|
(8)
|
Amounts represent fees payable to sovereign guarantors in connection with certain of our export credit debt facilities and facility fees on our revolving credit facilities.
|
|
Period
|
Total number of shares purchased (1)
|
|
Average price paid per share
|
|
Total number of shares purchased as part of publicly announced plans or programs
|
|
Approximate dollar value of shares that may yet be purchased under the plans or programs
|
|
April 1, 2019 - April 30, 2019
|
56,382
|
|
$91.60
|
|
—
|
|
$700,000,000
|
|
May 1, 2019 - May 31, 2019
|
—
|
|
$—
|
|
—
|
|
$700,000,000
|
|
June 1, 2019 - June 30, 2019
|
—
|
|
$—
|
|
—
|
|
$700,000,000
|
|
Total
|
56,382
|
|
|
|
—
|
|
|
|
(1)
|
Includes shares related to employee stock plans, primarily withheld by us to cover withholding taxes due at the election of certain holders.
|
|
10.1
|
|
|
|
|
|
|
|
|
|
10.2
|
|
|
|
|
|
|
|
|
|
10.3
|
|
|
|
|
|
|
|
|
|
31.1
|
|
|
|
|
|
|
|
|
|
31.2
|
|
|
|
|
|
|
|
|
|
32.1
|
|
|
|
|
*
|
|
Filed herewith
|
|
**
|
|
Furnished herewith
|
|
(i)
|
the Consolidated Statements of Comprehensive Income (Loss) (Unaudited) for the quarter and six months ended June 30, 2019 and 2018;
|
|
(ii)
|
the Consolidated Balance Sheets at June 30, 2019 (Unaudited) and December 31, 2018;
|
|
(iii)
|
the Consolidated Statements of Cash Flows (Unaudited) for the six months ended June 30, 2019 and 2018;
|
|
(iv)
|
the Consolidated Statements of Shareholders' Equity (Unaudited) for the the quarter and six months ended June 30, 2019 and 2018; and
|
|
|
|
ROYAL CARIBBEAN CRUISES LTD.
|
|
|
|
(Registrant)
|
|
|
|
|
|
|
|
|
|
|
|
/s/ JASON T. LIBERTY
|
|
|
|
Jason T. Liberty
|
|
|
|
Executive Vice President, Chief Financial Officer
|
|
July 25, 2019
|
|
(Principal Financial Officer and duly authorized signatory)
|
|
(a)
|
The definitions of “Applicable Margin” and Applicable Percentage” in Section 1.1 are restated in full to read as follows:
|
|
Senior Debt Rating
S&P/Moody’s
|
Applicable Margin for Base Rate Advances
|
Applicable Margin for LIBO Rate Advances and Swing Line Advances
|
|
Level 1
A- or A3 (or higher)
|
0.000%
|
0.795%
|
|
Level 2
BBB+ or Baa1
|
0.000%
|
0.900%
|
|
Level 3
BBB or Baa2
|
0.000%
|
1.000%
|
|
Level 4
BBB- or Baa3
|
0.100%
|
1.100%
|
|
Level 5
BB+ or Ba1 (or lower)
|
0.300%
|
1.300%
|
|
Senior Debt Rating
S&P/Moody’s
|
Applicable
Percentage
|
|
Level 1
A- or A3 (or higher)
|
0.080%
|
|
Level 2
BBB+ or Baa1
|
0.100%
|
|
Level 3
BBB or Baa2
|
0.125%
|
|
Level 4
BBB- or Baa3
|
0.150%
|
|
Level 5
BB+ or Ba1 (or lower)
|
0.200%
|
|
(b)
|
Clause (c)(i) of the definition of “Base Rate” in Section 1.1 is restated in full to read as follows:
|
|
(c)
|
Section 1.1 is amended by including the following terms in appropriate alphabetical order:
|
|
(d)
|
Section 1.4 is amended by restating the last sentence thereof in full to read as follows:
|
|
(e)
|
Section 2.8 is amended by including the following clause (c), which shall read as follows:
|
|
(f)
|
Section 6.2.2 is amended by including the following clause (e), which shall read as follows:
|
|
(g)
|
Section 6.2.3 is amended by including the following clause (t), which shall read as follows:
|
|
(h)
|
The Disclosure Schedule is restated in full in the form attached to this Amendment as Exhibit A.
|
|
By /s/ Kan Chen
Name: Kan Chen
Title: Director
|
By /s/ Gang Duan
Name: Gang Duan
Title: Executive Director
|
|
By /s/ Christian Jagenberg
Name: Christian Jagenberg
Title: Executive Vice President
|
By /s/ Gerhard A. Winklmeier
Name: Gerhard A. Winklmeier
Title: Senior Vice President
|
|
Vessel
|
Owner
|
Flag
|
|
Sovereign
|
RCL Sovereign LLC
|
Malta
|
|
Empress of the Seas
|
Nordic Empress Shipping Inc.
|
Bahamas
|
|
Monarch
|
RCL Monarch LLC
|
Malta
|
|
Majesty of the Seas
|
Majesty of the Seas Inc.
|
Bahamas
|
|
Grandeur of the Seas
|
Grandeur of the Seas Inc.
|
Bahamas
|
|
Rhapsody of the Seas
|
Rhapsody of the Seas Inc.
|
Bahamas
|
|
Enchantment of the Seas
|
Enchantment of the Seas Inc.
|
Bahamas
|
|
Vision of the Seas
|
Vision of the Seas Inc.
|
Bahamas
|
|
Voyager of the Seas
|
Voyager of the Seas Inc.
|
Bahamas
|
|
Horizon
|
RCL Horizon LLC
|
Malta
|
|
Zenith
|
RCL Zenith LLC
|
Malta
|
|
Mariner of the Seas
|
Mariner of the Seas Inc.
|
Bahamas
|
|
Celebrity Millennium
|
Millennium Inc.
|
Malta
|
|
Explorer of the Seas
|
Explorer of the Seas Inc.
|
Bahamas
|
|
Celebrity Infinity
|
Infinity Inc.
|
Malta
|
|
Radiance of the Seas
|
Radiance of the Seas Inc.
|
Bahamas
|
|
Celebrity Summit
|
Summit Inc.
|
Malta
|
|
Adventure of the Seas
|
Adventure of the Seas Inc.
|
Bahamas
|
|
Navigator of the Seas
|
Navigator of the Seas Inc.
|
Bahamas
|
|
Celebrity Constellation
|
Constellation Inc.
|
Malta
|
|
Serenade of the Seas
|
Serenade of the Seas Inc.
|
Bahamas
|
|
Jewel of the Seas
|
Jewel of the Seas Inc.
|
Bahamas
|
|
Celebrity Xpedition
|
Islas Galapagos Turismo y Vapores CA
|
Ecuador
|
|
Freedom of the Seas
|
Freedom of the Seas Inc.
|
Bahamas
|
|
Azamara Journey
|
Azamara Journey Inc.
|
Malta
|
|
Azamara Quest
|
Azamara Quest Inc.
|
Malta
|
|
Liberty of the Seas
|
Liberty of the Seas Inc.
|
Bahamas
|
|
Independence of the Seas
|
Independence of the Seas Inc.
|
Bahamas
|
|
Celebrity Solstice
|
Celebrity Solstice Inc.
|
Malta
|
|
Celebrity Equinox
|
Celebrity Equinox Inc.
|
Malta
|
|
Vessel
|
Owner
|
Flag
|
|
Oasis of the Seas
|
Oasis of the Seas Inc.
|
Bahamas
|
|
Celebrity Eclipse
|
Celebrity Eclipse Inc.
|
Malta
|
|
Allure of the Seas
|
Allure of the Seas Inc.
|
Bahamas
|
|
Celebrity Silhouette
|
Celebrity Silhouette Inc.
|
Malta
|
|
Celebrity Reflection
|
Celebrity Reflection Inc.
|
Malta
|
|
Quantum of the Seas
|
Quantum of the Seas Inc.
|
Bahamas
|
|
Brilliance of the Seas
|
Brilliance of the Seas Shipping Inc.
|
Bahamas
|
|
Anthem of the Seas
|
Anthem of the Seas Inc.
|
Bahamas
|
|
Celebrity Xperience
|
Oceanadventures S.A.
|
Ecuador
|
|
Celebrity Xploration
|
Oceanadventures S.A.
|
Ecuador
|
|
Ovation of the Seas
|
Ovation of the Seas Inc.
|
Bahamas
|
|
Harmony of the Seas
|
Harmony of the Seas Inc.
|
Bahamas
|
|
Symphony of the Seas
|
Symphony of the Seas Inc.
|
Bahamas
|
|
Celebrity Edge
|
Celebrity Edge Inc.
|
Malta
|
|
Azamara Pursuit
|
Azamara Pursuit Inc.
|
Malta
|
|
Silver Cloud
|
Silver Cloud Shipping Co. Ltd.
|
Bahamas
|
|
Silver Wind
|
Silver Wind Shipping Ltd.
|
Bahamas
|
|
Silver Shadow
|
Silver Shadow Shipping Co. Ltd.
|
Bahamas
|
|
Silver Spirit
|
Silver Spirit Shipping Co. Ltd.
|
Bahamas
|
|
Silver Muse
|
Silver Muse Shipping Co. Ltd.
|
Bahamas
|
|
Silver Galapagos
|
Conodros CL
|
Ecuador
|
|
Name of the Subsidiary
|
Jurisdiction of Organization
|
|
Jewel of the Seas Inc.
|
Liberia
|
|
Majesty of the Seas Inc.
|
Liberia
|
|
Grandeur of the Seas Inc.
|
Liberia
|
|
Enchantment of the Seas Inc.
|
Liberia
|
|
Rhapsody of the Seas Inc.
|
Liberia
|
|
Vision of the Seas Inc.
|
Liberia
|
|
Name of the Subsidiary
|
Jurisdiction of Organization
|
|
Voyager of the Seas Inc.
|
Liberia
|
|
Explorer of the Seas Inc.
|
Liberia
|
|
Radiance of the Seas Inc.
|
Liberia
|
|
Adventure of the Seas Inc.
|
Liberia
|
|
Navigator of the Seas Inc.
|
Liberia
|
|
Serenade of the Seas Inc.
|
Liberia
|
|
Mariner of the Seas Inc.
|
Liberia
|
|
Millennium Inc.
|
Liberia
|
|
Infinity Inc.
|
Liberia
|
|
Summit Inc.
|
Liberia
|
|
Constellation Inc.
|
Liberia
|
|
Islas Galápagos Turismo y Vapores C.A.
|
Ecuador
|
|
Freedom of the Seas Inc.
|
Liberia
|
|
Azamara Journey Inc.
|
Liberia
|
|
Azamara Quest Inc.
|
Liberia
|
|
RCL Zenith LLC
|
Liberia
|
|
Nordic Empress Shipping Inc.
|
Liberia
|
|
Liberty of the Seas Inc.
|
Liberia
|
|
Independence of the Seas Inc.
|
Liberia
|
|
Celebrity Solstice Inc.
|
Liberia
|
|
Oasis of the Seas Inc.
|
Liberia
|
|
Celebrity Eclipse Inc.
|
Liberia
|
|
Celebrity Equinox Inc.
|
Liberia
|
|
RCL Horizon LLC
|
Liberia
|
|
RCL Sovereign LLC
|
Liberia
|
|
Allure of the Seas Inc.
|
Liberia
|
|
Celebrity Silhouette Inc.
|
Liberia
|
|
Celebrity Reflection Inc.
|
Liberia
|
|
RCL Monarch LLC
|
Liberia
|
|
Quantum of the Seas Inc.
|
Liberia
|
|
Brilliance of the Seas Shipping Inc.
|
Liberia
|
|
Anthem of the Seas Inc.
|
Liberia
|
|
Oceanadventures S.A.
|
Ecuador
|
|
Name of the Subsidiary
|
Jurisdiction of Organization
|
|
Ovation of the Seas Inc.
|
Liberia
|
|
Harmony of the Seas Inc.
|
Liberia
|
|
Symphony of the Seas Inc.
|
Liberia
|
|
Celebrity Edge Inc.
|
Liberia
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Azamara Pursuit Inc.
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Liberia
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Silver Cloud Shipping Co. Ltd.
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Bahamas
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Silver Wind Shipping Ltd.
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Bahamas
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Silver Shadow Shipping Co. Ltd.
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Bahamas
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Silver Spirit Shipping Co. Ltd.
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Bahamas
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Silver Muse Shipping Co. Ltd.
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Bahamas
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Conodros CL
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Ecuador
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Date: July 25, 2019
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/s/
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RICHARD D. FAIN
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Richard D. Fain
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Chairman and
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Chief Executive Officer
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(Principal Executive Officer)
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Date: July 25, 2019
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/s/
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JASON T. LIBERTY
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Jason T. Liberty
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Executive Vice President, Chief Financial Officer
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(Principal Financial Officer)
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Date: July 25, 2019
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By:
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/s/
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RICHARD D. FAIN
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Richard D. Fain
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Chairman and
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Chief Executive Officer
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(Principal Executive Officer)
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By:
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/s/
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JASON T. LIBERTY
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Jason T. Liberty
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Executive Vice President, Chief Financial Officer
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(Principal Financial Officer)
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