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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 
FORM 10-Q 
(Mark One) 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended June 30, 2019
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the transition period from            to            
Commission File Number: 1-11884
ROYAL CARIBBEAN CRUISES LTD.
(Exact name of registrant as specified in its charter) 
Republic of
Liberia
 
98-0081645
(State or other jurisdiction of incorporation or organization)
 
(I.R.S. Employer Identification No.)
 

1050 Caribbean Way, Miami, Florida 33132
(Address of principal executive offices) (zip code) 
(305) 539-6000
(Registrant’s telephone number, including area code) 
N/A
(Former name, former address and former fiscal year, if changed since last report) 
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
 
Trading Symbol(s)
 
Name of each exchange on which registered
Common stock, par value $0.01 per share
 
RCL
 
New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes   No 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes   No 
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. 
Large accelerated filer
Accelerated filer
Non-accelerated filer  
Smaller reporting company
 
 
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes   No  
There were 209,561,071 shares of common stock outstanding as of July 18, 2019.
 



ROYAL CARIBBEAN CRUISES LTD.
TABLE OF CONTENTS




PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
ROYAL CARIBBEAN CRUISES LTD.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(unaudited; in thousands, except per share data)
 
Quarter Ended June 30,
 
2019
 
2018
Passenger ticket revenues
$
2,017,836

 
$
1,672,570

Onboard and other revenues
788,795

 
665,035

Total revenues
2,806,631

 
2,337,605

Cruise operating expenses:
 

 
 

Commissions, transportation and other
426,934

 
358,305

Onboard and other
174,429

 
142,240

Payroll and related
265,569

 
226,315

Food
146,847

 
128,383

Fuel
181,924

 
172,309

Other operating
348,801

 
286,859

Total cruise operating expenses
1,544,504

 
1,314,411

Marketing, selling and administrative expenses
376,874

 
312,923

Depreciation and amortization expenses
311,600

 
253,376

Operating Income
573,653

 
456,895

Other income (expense):
 

 
 

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

 
(93,698
)
 
9,400

Net Income
479,955

 
466,295

Less: Net Income attributable to noncontrolling interest
7,125

 

Net Income attributable to Royal Caribbean Cruises Ltd.
$
472,830

 
$
466,295

Earnings per Share:
 

 
 

Basic
$
2.26

 
$
2.20

Diluted
$
2.25

 
$
2.19

Weighted-Average Shares Outstanding:
 

 
 

Basic
209,531

 
211,673

Diluted
210,052

 
212,509

Comprehensive Income
 

 
 

Net Income
$
479,955

 
$
466,295

Other comprehensive income (loss):
 

 
 

Foreign currency translation adjustments
7,263

 
(11,521
)
Change in defined benefit plans
(9,722
)
 
(1,964
)
Loss on cash flow derivative hedges
(71,734
)
 
(68,900
)
Total other comprehensive loss
(74,193
)
 
(82,385
)
Comprehensive Income
405,762

 
383,910

Less: Comprehensive Income attributable to noncontrolling interest
7,125

 

Comprehensive Income attributable to Royal Caribbean Cruises Ltd.
$
398,637

 
$
383,910


The accompanying notes are an integral part of these consolidated financial statements.

1


ROYAL CARIBBEAN CRUISES LTD.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(unaudited; in thousands, except per share data)
 
Six Months Ended June 30,
 
2019
 
2018
Passenger ticket revenues
$
3,727,820

 
$
3,098,214

Onboard and other revenues
1,518,578

 
1,267,147

Total revenues
5,246,398

 
4,365,361

Cruise operating expenses:
 

 
 

Commissions, transportation and other
790,089

 
648,914

Onboard and other
309,599

 
241,777

Payroll and related
535,101

 
453,471

Food
286,381

 
248,025

Fuel
342,095

 
332,650

Other operating
694,943

 
565,593

Total cruise operating expenses
2,958,208

 
2,490,430

Marketing, selling and administrative expenses
791,821

 
650,284

Depreciation and amortization expenses
603,885

 
493,606

Operating Income
892,484

 
731,041

Other income (expense):
 

 
 

Interest income
16,126

 
20,831

Interest expense, net of interest capitalized
(211,719
)
 
(149,742
)
Equity investment income
66,739

 
73,063

Other (expense) income
(26,869
)
 
9,755

 
(155,723
)
 
(46,093
)
Net Income
736,761

 
684,948

Less: Net Income attributable to noncontrolling interest
14,250

 

Net Income attributable to Royal Caribbean Cruises Ltd.
$
722,511

 
$
684,948

Earnings per Share:
 

 
 

Basic
$
3.45

 
$
3.23

Diluted
$
3.44

 
$
3.21

Weighted-Average Shares Outstanding:
 

 
 

Basic
209,427

 
212,139

Diluted
209,962

 
213,079

Comprehensive Income
 

 
 

Net Income
$
736,761

 
$
684,948

Other comprehensive income (loss):
 

 
 

Foreign currency translation adjustments
7,827

 
(10,361
)
Change in defined benefit plans
(10,375
)
 
5,796

(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

 

Comprehensive Income attributable to Royal Caribbean Cruises Ltd.
$
697,072

 
$
754,013

The accompanying notes are an integral part of these consolidated financial statements.

2


ROYAL CARIBBEAN CRUISES LTD.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
 
As of
 
June 30,
 
December 31,
 
2019
 
2018
 
(unaudited)
 
 
Assets
 

 
 

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


The accompanying notes are an integral part of these consolidated financial statements.


3


ROYAL CARIBBEAN CRUISES LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited; in thousands)
 
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



The accompanying notes are an integral part of these consolidated financial statements.

4


ROYAL CARIBBEAN CRUISES LTD.
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
(unaudited; in thousands)
 
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














The accompanying notes are an integral part of these consolidated financial statements.

5


ROYAL CARIBBEAN CRUISES LTD.
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY -Continued
(unaudited; in thousands)
 
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












The accompanying notes are an integral part of these consolidated financial statements.


6


ROYAL CARIBBEAN CRUISES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
As used in this Quarterly Report on Form 10-Q, the terms “Royal Caribbean,” the “Company,” “we,” “our” and “us” refer to Royal Caribbean Cruises Ltd. and, depending on the context, Royal Caribbean Cruises Ltd.’s consolidated subsidiaries and/or affiliates. The terms “Royal Caribbean International,” “Celebrity Cruises,” “Azamara Club Cruises” and "Silversea Cruises" refer to our wholly- or majority-owned global cruise brands. Throughout this report, we also refer to regional brands in which we hold an ownership interest, including “TUI Cruises” and “Pullmantur.” However, because these regional brands are unconsolidated investments, our operating results and other disclosures herein do not include these brands unless otherwise specified. In accordance with cruise vacation industry practice, the term “berths” is determined based on double occupancy per cabin even though many cabins can accommodate three or more passengers. This report should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2018, including the audited consolidated financial statements and related notes included therein.
This Quarterly Report on Form 10-Q also includes trademarks, trade names and service marks of other companies.  Use or display by us of other parties’ trademarks, trade names or service marks is not intended to and does not imply a relationship with, or endorsement or sponsorship of us by, these other parties other than as described herein.
Note 1. General
Description of Business 
We are a global cruise company. As of June 30, 2019, we control and operate four global cruise brands: Royal Caribbean International, Celebrity Cruises, Azamara Club Cruises and Silversea Cruises (collectively, our "Global Brands").
We also own a 50% joint venture interest in the German brand TUI Cruises and a 49% interest in the Spanish brand Pullmantur (collectively, our "Partner Brands"). We account for our investments in our Partner Brands under the equity method of accounting.
Basis for Preparation of Consolidated Financial Statements
The unaudited consolidated financial statements are presented pursuant to the rules and regulations of the Securities and Exchange Commission. In our opinion, these statements include all adjustments necessary for a fair statement of the results of the interim periods reported herein. Adjustments consist only of normal recurring items, except for any items discussed in the notes below. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted as permitted by such rules and regulations. Estimates are required for the preparation of financial statements in accordance with these principles. Actual results could differ from these estimates. Refer to Note 2. Summary of Significant Accounting Policies in this Quarterly Report on Form 10-Q and in our Annual Report on Form 10-K for the year ended December 31, 2018 for a discussion of our significant accounting policies.
All significant intercompany accounts and transactions are eliminated in consolidation. We consolidate entities over which we have control, usually evidenced by a direct ownership interest of greater than 50%, and variable interest entities where we are determined to be the primary beneficiary. Refer to Note 7. Other Assets for further information regarding our variable interest entities. We consolidate the operating results of Silversea Cruises on a three-month reporting lag to allow for more timely preparation of our consolidated financial statements. No material events or other transactions involving Silversea Cruises have occurred from March 31, 2019 through June 30, 2019 that would require further disclosure or adjustment to our consolidated financial statements as of and for the quarter ended June 30, 2019. For affiliates we do not control but over which we have significant influence on financial and operating policies, usually evidenced by a direct ownership interest from 20% to 50%, the investment is accounted for using the equity method.
Note 2. Summary of Significant Accounting Policies
Adoption of Accounting Pronouncements
Leases
On January 1, 2019, we adopted the guidance codified in Accounting Standard Codification ("ASC") 842, Leases ("ASC 842") using the modified retrospective approach and elected the optional transition method, which allows entities to initially apply the standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Upon adoption, we applied the guidance to all existing leases.

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For leases with a term greater than 12 months, the new guidance requires the lease rights and obligations arising from the leasing arrangements, including operating leases, to be recognized as assets and liabilities on the balance sheet. Upon adoption of the new guidance, the most significant impact was the recognition of right-of-use assets and lease liabilities relating to operating leases in the amounts of $801.8 million and $820.5 million, respectively, reported within Operating lease right-of-use assets and Long-term operating lease liabilities, respectively, with the current portion of the liability reported within Current portion of operating lease liabilities, in our consolidated balance sheet as of January 1, 2019. Accounting for finance leases remained substantially unchanged and continues to be reported within Property and equipment, net and Long-term debt, with the current portion of the debt reported within Current portion of debt, in our consolidated balance sheets. There was no cumulative effect of applying the new standard and accordingly there was no adjustment to our retained earnings upon adoption. The comparative information presented has not been restated and continues to be reported under the accounting standards in effect for those periods. For further information on leases, refer to Note 9. Leases.
This guidance did not have a material impact to our consolidated statements of comprehensive income (loss), consolidated statements of cash flows and our debt-covenants calculations under our current agreements.
Note 3. Business Combination
On July 31, 2018, we acquired a 66.7% equity stake in Silversea Cruise Holding Ltd. ("Silversea Cruises"), an ultra-luxury and expedition cruise line, from Heritage Cruise Holding Ltd. ("HCH"), previously known as Silversea Cruises Group Ltd. Silversea Cruises enhances our presence in the ultra-luxury and expedition markets and provides us with an opportunity to drive long-term capacity growth in these markets.
The purchase price consisted of $1.02 billion in cash, net of assumed liabilities, and contingent consideration that can range from zero up to a maximum of approximately 472,000 shares of our common stock, and is payable upon achievement of certain 2019-2020 performance metrics by Silversea Cruises. The fair value of the contingent consideration at the acquisition date was $44.0 million and is recorded within Other long-term liabilities in our consolidated balance sheets. Changes in the fair value of the contingent consideration are recorded in our results of operations, if any, in the period of the change. Refer to Note 14. Fair Value Measurements and Derivative Instruments for further information on the valuation of the contingent consideration.
To finance a portion of the purchase price, we drew in full on a $700 million unsecured credit agreement and the remainder of the transaction consideration was financed through the use of our revolving credit facilities.
We have accounted for this transaction under the provisions of ASC 805, Business Combinations. The purchase price for the Silversea Cruises acquisition was allocated based on estimates of the fair value of assets acquired and liabilities assumed at the acquisition date, with the excess allocated to goodwill. Goodwill is not deductible for tax purposes and consisted primarily of the opportunity to expand our cruise operations in strategic growth areas.
For reporting purposes, we include Silversea Cruises’ results of operations on a three-month reporting lag from 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. We have included Silversea Cruises' balance sheet as of March 31, 2019 in our consolidated balance sheet as of June 30, 2019. Refer to Note 1. General for further information on this three-month reporting lag.
Our purchase price allocation was final as of March 31, 2019. There were no material measurement period adjustments recorded during the six months ended June 30, 2019.
Pro-forma financial results relating to the Silversea Cruises acquisition are not presented, as this acquisition was not material to our consolidated results of operations.

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Note 4. Intangible Assets
Intangible assets consist of finite and indefinite life assets and are reported within Other assets in our consolidated balance sheets.
The following is a summary of our intangible assets as of June 30, 2019 and December 31, 2018 (in thousands):
 
 
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: