QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Republic of | ||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Accelerated filer ☐ | Non-accelerated filer ☐ | Smaller reporting company | ||||||||||||||||||
Emerging growth company |
Page | |||||
Quarter Ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
Passenger ticket revenues | $ | $ | |||||||||
Onboard and other revenues | ( | ||||||||||
Total revenues | ( | ||||||||||
Cruise operating expenses: | |||||||||||
Commissions, transportation and other | ( | ||||||||||
Onboard and other | |||||||||||
Payroll and related | |||||||||||
Food | |||||||||||
Fuel | |||||||||||
Other operating | |||||||||||
Total cruise operating expenses | |||||||||||
Marketing, selling and administrative expenses | |||||||||||
Depreciation and amortization expenses | |||||||||||
Impairment and credit losses | |||||||||||
Operating (Loss) Income | ( | ||||||||||
Other expense: | |||||||||||
Interest income | |||||||||||
Interest expense, net of interest capitalized | ( | ( | |||||||||
Equity investment (loss) income | ( | ||||||||||
Other expense | ( | ( | |||||||||
( | ( | ||||||||||
Net (Loss) Income | ( | ||||||||||
Less: Net Income attributable to noncontrolling interest | |||||||||||
Net (Loss) Income attributable to Royal Caribbean Cruises Ltd. | $ | ( | $ | ||||||||
(Loss) Earnings per Share: | |||||||||||
Basic | $ | ( | $ | ||||||||
Diluted | $ | ( | $ | ||||||||
Weighted-Average Shares Outstanding: | |||||||||||
Basic | |||||||||||
Diluted | |||||||||||
Comprehensive (Loss) Income | |||||||||||
Net (Loss) Income | $ | ( | $ | ||||||||
Other comprehensive income (loss): | |||||||||||
Foreign currency translation adjustments | ( | ||||||||||
Change in defined benefit plans | ( | ( | |||||||||
Gain (loss) on cash flow derivative hedges | ( | ||||||||||
Total other comprehensive income (loss) | ( | ||||||||||
Comprehensive (Loss) Income | ( | ||||||||||
Less: Comprehensive Income attributable to noncontrolling interest | |||||||||||
Comprehensive (Loss) Income attributable to Royal Caribbean Cruises Ltd. | $ | ( | $ |
Nine Months Ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
Passenger ticket revenues | $ | $ | |||||||||
Onboard and other revenues | |||||||||||
Total revenues | |||||||||||
Cruise operating expenses: | |||||||||||
Commissions, transportation and other | |||||||||||
Onboard and other | |||||||||||
Payroll and related | |||||||||||
Food | |||||||||||
Fuel | |||||||||||
Other operating | |||||||||||
Total cruise operating expenses | |||||||||||
Marketing, selling and administrative expenses | |||||||||||
Depreciation and amortization expenses | |||||||||||
Impairment and credit losses | |||||||||||
Operating (Loss) Income | ( | ||||||||||
Other expense: | |||||||||||
Interest income | |||||||||||
Interest expense, net of interest capitalized | ( | ( | |||||||||
Equity investment (loss) income | ( | ||||||||||
Other expense | ( | ( | |||||||||
( | ( | ||||||||||
Net (Loss) Income | ( | ||||||||||
Less: Net Income attributable to noncontrolling interest | |||||||||||
Net (Loss) Income attributable to Royal Caribbean Cruises Ltd. | $ | ( | $ | ||||||||
(Loss) Earnings per Share: | |||||||||||
Basic | $ | ( | $ | ||||||||
Diluted | $ | ( | $ | ||||||||
Weighted-Average Shares Outstanding: | |||||||||||
Basic | |||||||||||
Diluted | |||||||||||
Comprehensive (Loss) Income | |||||||||||
Net (Loss) Income | $ | ( | $ | ||||||||
Other comprehensive (loss) income: | |||||||||||
Foreign currency translation adjustments | ( | ||||||||||
Change in defined benefit plans | ( | ( | |||||||||
Loss on cash flow derivative hedges | ( | ( | |||||||||
Total other comprehensive (loss) | ( | ( | |||||||||
Comprehensive (Loss) Income | ( | ||||||||||
Less: Comprehensive Income attributable to noncontrolling interest | |||||||||||
Comprehensive (Loss) Income attributable to Royal Caribbean Cruises Ltd. | $ | ( | $ |
As of | |||||||||||
September 30, | December 31, | ||||||||||
2020 | 2019 | ||||||||||
(unaudited) | |||||||||||
Assets | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Trade and other receivables, net of allowances of $ at September 30, 2020 and December 31, 2019, respectively | |||||||||||
Inventories | |||||||||||
Prepaid expenses and other assets | |||||||||||
Derivative financial instruments | |||||||||||
Total current assets | |||||||||||
Property and equipment, net | |||||||||||
Operating lease right-of-use assets | |||||||||||
Goodwill | |||||||||||
Other assets, net of allowances of $ and December 31, 2019, respectively | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities, Redeemable Noncontrolling Interest and Shareholders’ Equity | |||||||||||
Current liabilities | |||||||||||
Current portion of debt | $ | $ | |||||||||
Commercial paper | |||||||||||
Current portion of operating lease liabilities | |||||||||||
Accounts payable | |||||||||||
Accrued interest | |||||||||||
Accrued expenses and other liabilities | |||||||||||
Derivative financial instruments | |||||||||||
Customer deposits | |||||||||||
Total current liabilities | |||||||||||
Long-term debt | |||||||||||
Long-term operating lease liabilities | |||||||||||
Other long-term liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (Note 10) | |||||||||||
Redeemable noncontrolling interest | |||||||||||
Shareholders’ equity | |||||||||||
Preferred stock ($ | |||||||||||
Common stock ($ | |||||||||||
Paid-in capital | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Treasury stock ( | ( | ( | |||||||||
Total shareholders’ equity | |||||||||||
Total liabilities, redeemable noncontrolling interest and shareholders’ equity | $ | $ |
Nine Months Ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
Operating Activities | |||||||||||
Net (loss) income | $ | ( | $ | ||||||||
Adjustments: | |||||||||||
Depreciation and amortization | |||||||||||
Impairment and credit losses | |||||||||||
Net deferred income tax (benefit) expense | ( | ||||||||||
Loss on derivative instruments not designated as hedges | |||||||||||
Share-based compensation expense | |||||||||||
Equity investment loss (income) | ( | ||||||||||
Amortization of debt issuance costs | |||||||||||
Amortization of commercial paper notes discount | |||||||||||
Amortization of debt discounts and premiums | |||||||||||
Loss on extinguishment of secured senior term loan | |||||||||||
Currency translation adjustment losses | |||||||||||
Change in fair value of contingent consideration | ( | ||||||||||
Changes in operating assets and liabilities: | |||||||||||
Decrease (increase) in trade and other receivables, net | ( | ||||||||||
Decrease (increase) in inventories | ( | ||||||||||
Decrease in prepaid expenses and other assets | |||||||||||
(Decrease) increase in accounts payable | ( | ||||||||||
Increase in accrued interest | |||||||||||
(Decrease) increase in accrued expenses and other liabilities | ( | ||||||||||
(Decrease) increase in customer deposits | ( | ||||||||||
Dividends received from unconsolidated affiliates | |||||||||||
Other, net | ( | ( | |||||||||
Net cash (used in) provided by operating activities | ( | ||||||||||
Investing Activities | |||||||||||
Purchases of property and equipment | ( | ( | |||||||||
Cash received on settlement of derivative financial instruments | |||||||||||
Cash paid on settlement of derivative financial instruments | ( | ( | |||||||||
Investments in and loans to unconsolidated affiliates | ( | ( | |||||||||
Cash received on loans to unconsolidated affiliates | |||||||||||
Other, net | ( | ( | |||||||||
Net cash used in investing activities | ( | ( | |||||||||
Financing Activities | |||||||||||
Debt proceeds | |||||||||||
Debt issuance costs | ( | ( | |||||||||
Repayments of debt | ( | ( | |||||||||
Proceeds from issuance of commercial paper notes | |||||||||||
Repayments of commercial paper notes | ( | ( | |||||||||
Dividends paid | ( | ( | |||||||||
Proceeds from exercise of common stock options | |||||||||||
Other, net | ( | ( | |||||||||
Net cash provided by (used in) financing activities | ( | ||||||||||
Effect of exchange rate changes on cash | ( | ( | |||||||||
Net increase (decrease) in cash and cash equivalents | ( | ||||||||||
Cash and cash equivalents at beginning of period | |||||||||||
Cash and cash equivalents at end of period | $ | $ |
Nine Months Ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
Supplemental Disclosure | |||||||||||
Cash paid during the period for: | |||||||||||
Interest, net of amount capitalized | $ | $ | |||||||||
Non-cash Investing Activities | |||||||||||
Notes receivable issued upon sale of property and equipment | $ | ||||||||||
Purchase of property and equipment included in accounts payable and accrued expenses and other liabilities | $ | ||||||||||
Non-cash Financing Activities | |||||||||||
Purchase of Silversea Cruises non-controlling interest | $ | ||||||||||
Termination of Silversea Cruises contingent consideration obligation | $ |
Common Stock | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Total Shareholders' Equity | ||||||||||||||||||||||||||||||
Balance at July 1, 2020 | ( | ( | |||||||||||||||||||||||||||||||||
Activity related to employee stock plans | — | — | — | ||||||||||||||||||||||||||||||||
Silversea acquisition | |||||||||||||||||||||||||||||||||||
Changes related to cash flow derivative hedges | — | — | — | — | |||||||||||||||||||||||||||||||
Change in defined benefit plans | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | ||||||||||||||||||||||||||||||||
Net loss attributable to Royal Caribbean Cruises Ltd. | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Balance at September 30, 2020 | $ | $ | $ | $ | ( | $ | ( | $ |
Common Stock | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Total Shareholders' Equity | ||||||||||||||||||||||||||||||
Balance at January 1, 2020 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||
Activity related to employee stock plans | — | — | — | ||||||||||||||||||||||||||||||||
Equity component of convertible notes, net of issuance costs | — | — | — | — | |||||||||||||||||||||||||||||||
Silversea acquisition | — | — | — | ||||||||||||||||||||||||||||||||
Common stock dividends, $ | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Changes related to cash flow derivative hedges | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Change in defined benefit plans | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | |||||||||||||||||||||||||||||||
Purchases of treasury stock | — | — | — | ( | |||||||||||||||||||||||||||||||
Net loss attributable to Royal Caribbean Cruises Ltd. | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Balance at September 30, 2020 | $ | $ | $ | $ | ( | $ | ( | $ |
Common Stock | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Total Shareholders' Equity | ||||||||||||||||||||||||||||||
Balance at July 1, 2019 | ( | ( | |||||||||||||||||||||||||||||||||
Activity related to employee stock plans | — | — | |||||||||||||||||||||||||||||||||
Common stock dividends, $ | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Changes related to cash flow derivative hedges | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Change in defined benefit plans | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Net Income attributable to Royal Caribbean Cruises Ltd. | — | — | — | — | |||||||||||||||||||||||||||||||
Balance at September 30, 2019 | $ | $ | $ | $ | ( | $ | ( | $ |
Common Stock | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Total Shareholders' Equity | ||||||||||||||||||||||||||||||
Balance at January 1, 2019 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||
Activity related to employee stock plans | — | — | ( | ||||||||||||||||||||||||||||||||
Common stock dividends, $ | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Changes related to cash flow derivative hedges | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Change in defined benefit plans | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Net Income attributable to Royal Caribbean Cruises Ltd. | — | — | — | — | |||||||||||||||||||||||||||||||
Balance at September 30, 2019 | $ | $ | $ | $ | ( | $ | ( | $ |
Royal Caribbean International | Celebrity Cruises | Silversea Cruises | Total | ||||||||||||||||||||
Balance at January 1, 2020 | $ | $ | $ | $ | |||||||||||||||||||
Impairment charge | ( | ( | |||||||||||||||||||||
Transfer of goodwill attributable to the 2019 purchase of photo operations onboard our ships | ( | ||||||||||||||||||||||
Foreign currency translation adjustment | |||||||||||||||||||||||
Balance at September 30, 2020 | $ | $ | $ | $ |
September 30, 2020 | ||||||||||||||||||||||||||
Gross Carrying Value | Accumulated Amortization | Accumulated Impairment losses | Net Carrying Value | |||||||||||||||||||||||
Finite-life intangible assets: | ||||||||||||||||||||||||||
Customer relationships | $ | $ | $ | $ | ||||||||||||||||||||||
Galapagos operating license | ||||||||||||||||||||||||||
Other finite-life intangible assets | ||||||||||||||||||||||||||
Total finite-life intangible assets | ||||||||||||||||||||||||||
Indefinite-life intangible assets | — | |||||||||||||||||||||||||
Total intangible assets, net | $ | $ | $ | $ |
December 31, 2019 | ||||||||||||||||||||
Gross Carrying Value | Accumulated Amortization | Net Carrying Value | ||||||||||||||||||
Finite-life intangible assets: | ||||||||||||||||||||
Customer relationships | $ | $ | $ | |||||||||||||||||
Galapagos operating license | ||||||||||||||||||||
Other finite-life intangible assets | ||||||||||||||||||||
Total finite-life intangible assets | ||||||||||||||||||||
Indefinite-life intangible assets | — | |||||||||||||||||||
Total intangible assets, net | $ | $ | $ |
Credit Loss Allowance | ||||||||
Balance at January 1, 2020 | $ | |||||||
Loss provision for receivables | ||||||||
Write-offs | ( | |||||||
Balance at September 30, 2020 | $ |
Quarter Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Revenues by itinerary | |||||||||||||||||||||||
North America(1) | $ | ( | $ | $ | $ | ||||||||||||||||||
Asia/Pacific(2) | ( | ||||||||||||||||||||||
Europe(3) | |||||||||||||||||||||||
Other regions(4) | |||||||||||||||||||||||
Total revenues by itinerary | ( | ||||||||||||||||||||||
Other revenues(5) | ( | ||||||||||||||||||||||
Total revenues | $ | ( | $ | $ | $ |
Quarter Ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
Passenger ticket revenues: | |||||||||||
United States | % | % | |||||||||
United Kingdom | % | % | |||||||||
All other countries (1) | % | % |
Nine Months Ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
Passenger ticket revenues: | |||||||||||
United States | % | % | |||||||||
All other countries (1) | % | % |
Quarter Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Net (Loss) Income attributable to Royal Caribbean Cruises Ltd. for basic and diluted earnings per share | $ | ( | $ | ( | |||||||||||||||||||
Weighted-average common shares outstanding | |||||||||||||||||||||||
Dilutive effect of stock-based awards | |||||||||||||||||||||||
Diluted weighted-average shares outstanding | |||||||||||||||||||||||
Basic (loss) earnings per share | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Diluted (loss) earnings per share | $ | ( | $ | $ | ( | $ |
Quarter Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
Share of equity (loss) income from investments | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||
Dividends received (1) | $ | $ | $ | $ |
As of September 30, 2020 | As of December 31, 2019 | |||||||||||||
Total notes receivable due from equity investments | $ | $ | ||||||||||||
Less-current portion (1) | ||||||||||||||
Long-term portion (2) | $ | $ |
Quarter Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
Revenues | $ | $ | $ | $ | ||||||||||||||||||||||
Expenses | $ | $ | $ | $ |
Interest Rate(1) | Maturities Through | As of September 30, 2020 | As of December 31, 2019 | |||||||||||||||||||||||
Fixed rate debt: | ||||||||||||||||||||||||||
Unsecured senior notes | 2020 - 2028 | $ | $ | |||||||||||||||||||||||
Secured senior notes | 2023 - 2025 | |||||||||||||||||||||||||
Unsecured term loans | 2021 - 2032 | |||||||||||||||||||||||||
Convertible notes | 2023 | |||||||||||||||||||||||||
Total fixed rate debt | ||||||||||||||||||||||||||
Variable rate debt: | ||||||||||||||||||||||||||
Unsecured revolving credit facilities(2) | 2022 - 2024 | |||||||||||||||||||||||||
Unsecured UK Commercial paper | 2021 | |||||||||||||||||||||||||
USD Commercial paper | — | |||||||||||||||||||||||||
USD Unsecured term loan | 2020- 2028 | |||||||||||||||||||||||||
Euro Unsecured term loan | 2021 - 2028 | |||||||||||||||||||||||||
Total variable rate debt | ||||||||||||||||||||||||||
Finance lease liabilities | ||||||||||||||||||||||||||
Total debt (3) | ||||||||||||||||||||||||||
Less: unamortized debt issuance costs | ( | ( | ||||||||||||||||||||||||
Total debt, net of unamortized debt issuance costs | ||||||||||||||||||||||||||
Less—current portion including commercial paper | $ | ( | $ | ( | ||||||||||||||||||||||
Long-term portion |
(in thousands) | As of September 30, 2020 | ||||
Principal | |||||
Less: Unamortized debt discount and transaction costs | |||||
$ |
(in thousands) | Nine Months Ended September 30, 2020 | ||||
Contractual interest expense | |||||
Amortization of debt discount and transaction costs | |||||
$ |
Year | |||||
Remainder of 2020 | |||||
2021 | |||||
2022 | |||||
2023 | |||||
2024 | |||||
Thereafter | |||||
Consolidated Statement of Comprehensive Income (Loss) Classification | Quarter Ended September 30, 2020 | Nine Months Ended September 30, 2020 | ||||||||||||
Lease costs: | ||||||||||||||
Operating lease costs | Commission, transportation and other | $ | $ | |||||||||||
Operating lease costs | Other operating expenses | |||||||||||||
Operating lease costs | Marketing, selling and administrative expenses | |||||||||||||
Financial lease costs: | ||||||||||||||
Amortization of right-of-use-assets | Depreciation and amortization expenses | |||||||||||||
Interest on lease liabilities | Interest expense, net of interest capitalized | |||||||||||||
Total lease costs | $ | $ |
As of September 30, 2020 | ||||||||
Weighted average years of the remaining lease term | ||||||||
Operating leases | ||||||||
Finance leases | ||||||||
Weighted average discount rate | ||||||||
Operating leases | % | |||||||
Finance leases | % |
Nine Months Ended September 30, 2020 | |||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||
Operating cash flows from operating leases | $ | ||||
Operating cash flows from finance leases | $ | ||||
Financing cash flows from finance leases | $ | ||||
Year | Operating Leases | Finance Leases | |||||||||
Remainder of 2020 | $ | $ | |||||||||
2021 | |||||||||||
2022 | |||||||||||
2023 | |||||||||||
2024 | |||||||||||
Thereafter | |||||||||||
Total lease payments | |||||||||||
Less: Interest | ( | ( | |||||||||
Present value of lease liabilities | $ | $ |
Beginning balance at July 1, 2020 | $ | ||||
Net income attributable to noncontrolling interest, including the contractual accretion of the put options | |||||
Acquisition of noncontrolling interest | ( | ||||
Balance at September 30, 2020 | $ |
Beginning balance at January 1, 2020 | $ | ||||
Net income attributable to noncontrolling interest, including the contractual accretion of the put options | |||||
Acquisition of noncontrolling interest | ( | ||||
Ending balance September 30, 2020 | $ |
Beginning balance at July 1, 2019 | $ | ||||
Net income attributable to noncontrolling interest, including the contractual accretion of the put options | |||||
Distribution to noncontrolling interest | ( | ||||
Ending balance at September 30, 2019 | $ |
Beginning balance at January 1, 2019 | $ | ||||
Net income attributable to noncontrolling interest, including the contractual accretion of the put options | |||||
Distribution to noncontrolling interest | ( | ||||
Other | |||||
Ending balance at September 30, 2019 | $ |
Ship | Shipyard | Contractual Delivery Date | Approximate Berths | ||||||||||||||||||||
Royal Caribbean International — | |||||||||||||||||||||||
Oasis-class: | |||||||||||||||||||||||
Wonder of the Seas | Chantiers de l'Atlantique | 2nd Quarter 2021 | |||||||||||||||||||||
Unnamed | Chantiers de l'Atlantique | 4th Quarter 2023 | |||||||||||||||||||||
Quantum-class: | |||||||||||||||||||||||
Odyssey of the Seas | Meyer Werft | 4th Quarter 2020 | |||||||||||||||||||||
Icon-class: | |||||||||||||||||||||||
Unnamed | Meyer Turku Oy | 2nd Quarter 2022 | |||||||||||||||||||||
Unnamed | Meyer Turku Oy | 2nd Quarter 2024 | |||||||||||||||||||||
Unnamed | Meyer Turku Oy | 2nd Quarter 2025 | |||||||||||||||||||||
Celebrity Cruises — | |||||||||||||||||||||||
Edge-class: | |||||||||||||||||||||||
Celebrity Beyond | Chantiers de l'Atlantique | 4th Quarter 2021 | |||||||||||||||||||||
Unnamed | Chantiers de l'Atlantique | 4th Quarter 2022 | |||||||||||||||||||||
Silversea Cruises — | |||||||||||||||||||||||
Muse-Class: | |||||||||||||||||||||||
Silver Moon (1) | Fincantieri | 4th Quarter 2020 | |||||||||||||||||||||
Silver Dawn | Fincantieri | 4th Quarter 2021 | |||||||||||||||||||||
Evolution Class: | |||||||||||||||||||||||
Unnamed | Meyer Werft | 1st Quarter 2022 | |||||||||||||||||||||
Unnamed | Meyer Werft | 1st Quarter 2023 | |||||||||||||||||||||
TUI Cruises (50% joint venture) — | |||||||||||||||||||||||
Mein Schiff 7 | Meyer Turku Oy | 2nd Quarter 2023 | |||||||||||||||||||||
Unnamed | Fincantieri | 3rd Quarter 2024 | |||||||||||||||||||||
Unnamed | Fincantieri | 1st Quarter 2026 | |||||||||||||||||||||
Hapag-Lloyd Cruises (50% joint venture) — | |||||||||||||||||||||||
Hanseatic Spirit | Vard | 2nd Quarter 2021 | |||||||||||||||||||||
Total Berths |
Accumulated Other Comprehensive Income (Loss) for the nine months ended September 30, 2020 | Accumulated Other Comprehensive Income (Loss) for the Nine Months Ended September 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||
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 | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | ( | ( | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Net current-period other comprehensive income (loss) | ( | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | ||||||||||||||||||||||||||||||||
Details About Accumulated Other Comprehensive Income (Loss) Components | Quarter Ended September 30, 2020 | Quarter Ended September 30, 2019 | Nine Months Ended September 30, 2020 | Nine Months Ended September 30, 2019 | Affected Line Item in Statements of Comprehensive Income (Loss) | |||||||||||||||||||||||||||
Gain (loss) on cash flow derivative hedges: | ||||||||||||||||||||||||||||||||
Interest rate swaps | $ | ( | $ | ( | $ | ( | $ | ( | Interest expense, net of interest capitalized | |||||||||||||||||||||||
Foreign currency forward contracts | ( | ( | ( | ( | Depreciation and amortization expenses | |||||||||||||||||||||||||||
Foreign currency forward contracts | ( | ( | ( | ( | Other income (expense) | |||||||||||||||||||||||||||
Fuel swaps | ( | ( | Other income (expense) | |||||||||||||||||||||||||||||
Fuel swaps | ( | ( | Fuel | |||||||||||||||||||||||||||||
( | ( | ( | ||||||||||||||||||||||||||||||
Amortization of defined benefit plans: | ||||||||||||||||||||||||||||||||
Actuarial loss | ( | ( | ( | ( | Payroll and related | |||||||||||||||||||||||||||
( | ( | ( | ( | |||||||||||||||||||||||||||||
Release of net foreign cumulative translation due to sale or liquidation of businesses: | ||||||||||||||||||||||||||||||||
Foreign cumulative translation | ( | ( | Other expense | |||||||||||||||||||||||||||||
Total reclassifications for the period | $ | ( | $ | ( | $ | ( | $ |
Fair Value Measurements at September 30, 2020 Using | Fair Value Measurements at December 31, 2019 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) | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Assets | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt (including current portion of debt)(5) | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Liabilities | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ |
Fair Value Measurements at September 30, 2020 Using | Fair Value Measurements at December 31, 2019 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) | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Total Assets | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative financial instruments(5) | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Contingent consideration (6) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total Liabilities | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements at September 30, 2020 Using | |||||||||||||||||
Description | Total Carrying Amount | Total Fair Value | Level 3 | Total Impairment for the Quarter ended September 30, 2020 | Total Impairment for the Nine Months ended September 30, 2020 | ||||||||||||
Silversea Cruises Goodwill (1) | $ | $ | $ | $ | |||||||||||||
Indefinite-life intangible asset (2) | $ | $ | $ | $ | |||||||||||||
Long-lived assets - property and equipment, net(3) | $ | $ | $ | $ | |||||||||||||
Long-lived assets - right-of-use assets(4) | $ | $ | $ | $ | |||||||||||||
Equity-method investments(5) | $ | ||||||||||||||||
Total | $ | $ | $ | $ |
Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements | ||||||||||||||||||||||||||||||||||||||||||||||||||
As of September 30, 2020 | As of December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||
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 Liabilities | Cash Collateral Received | Net Amount of Derivative Assets | |||||||||||||||||||||||||||||||||||||||||||
Derivatives subject to master netting agreements | $ | $ | ( | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | ( | $ | $ | $ | $ | ( | $ | $ |
Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements | ||||||||||||||||||||||||||||||||||||||||||||||||||
As of September 30, 2020 | As of December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||
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 Assets | Cash Collateral Pledged | Net Amount of Derivative Liabilities | |||||||||||||||||||||||||||||||||||||||||||
Derivatives subject to master netting agreements | $ | ( | $ | $ | $ | ( | $ | ( | $ | $ | $ | ( | ||||||||||||||||||||||||||||||||||||||
Total | $ | ( | $ | $ | $ | ( | $ | ( | $ | $ | $ | ( |
Debt Instrument | Swap Notional as of September 30, 2020 (In thousands) | Maturity | Debt Fixed Rate | Swap Floating Rate: LIBOR plus | All-in Swap Floating Rate as of September 30, 2020 | ||||||||||||
Oasis of the Seas term loan | $ | October 2021 | |||||||||||||||
Unsecured senior notes | November 2022 | ||||||||||||||||
$ |
Debt Instrument | Swap Notional as of September 30, 2020 (In thousands) | Maturity | Debt Floating Rate | All-in Swap Fixed Rate | |||||||||||||
Celebrity Reflection term loan | $ | October 2024 | LIBOR plus | ||||||||||||||
Quantum of the Seas term loan | October 2026 | LIBOR plus | |||||||||||||||
Anthem of the Seas term loan | April 2027 | LIBOR plus | |||||||||||||||
Ovation of the Seas term loan | April 2028 | LIBOR plus | |||||||||||||||
Harmony of the Seas term loan (1) | May 2028 | EURIBOR plus | |||||||||||||||
Odyssey of the Seas term loan (2) | October 2032 | LIBOR plus | |||||||||||||||
Odyssey of the Seas term loan (2) | October 2032 | LIBOR plus | |||||||||||||||
$ |
Fuel Swap Agreements | |||||||||||
As of September 30, 2020 | As of December 31, 2019 | ||||||||||
Designated as hedges: | (metric tons) | ||||||||||
2020 | |||||||||||
2021 | |||||||||||
2022 | |||||||||||
2023 | |||||||||||
Fuel Swap Agreements | |||||||||||
As of September 30, 2020 | As of December 31, 2019 | ||||||||||
(% hedged) | |||||||||||
Designated hedges as a % of projected fuel purchases: | |||||||||||
2020 | % | % | |||||||||
2021 | % | % | |||||||||
2022 | % | % | |||||||||
2023 | % | % | |||||||||
Fuel Swap Agreements | |||||||||||
As of September 30, 2020 | As of December 31, 2019 | ||||||||||
Not designated as hedges: | (metric tons) | ||||||||||
2020 | |||||||||||
2021 | |||||||||||
Fair Value of Derivative Instruments | ||||||||||||||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||||||||||||||||
Balance Sheet Location | As of September 30, 2020 | As of December 31, 2019 | Balance Sheet Location | As of September 30, 2020 | As of December 31, 2019 | |||||||||||||||||||||||||||||||||
Fair Value | Fair Value | Fair Value | Fair Value | |||||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments under ASC 815-20(1) | ||||||||||||||||||||||||||||||||||||||
Interest rate swaps | Other assets | $ | $ | Other long-term liabilities | $ | $ | ||||||||||||||||||||||||||||||||
Foreign currency forward contracts | Derivative financial instruments | Derivative financial instruments | ||||||||||||||||||||||||||||||||||||
Foreign currency forward contracts | Other assets | Other long-term liabilities | ||||||||||||||||||||||||||||||||||||
Fuel swaps | Derivative financial instruments | Derivative financial instruments | ||||||||||||||||||||||||||||||||||||
Fuel swaps | Other assets | Other long-term liabilities | ||||||||||||||||||||||||||||||||||||
Total derivatives designated as hedging instruments under 815-20 | ||||||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments under ASC 815-20 | ||||||||||||||||||||||||||||||||||||||
Foreign currency forward contracts | Derivative financial instruments | $ | $ | Derivative financial instruments | $ | $ | ||||||||||||||||||||||||||||||||
Fuel swaps | Derivative financial instruments | Derivative financial instruments | ||||||||||||||||||||||||||||||||||||
Fuel swaps | Other Assets | Other long-term liabilities | ||||||||||||||||||||||||||||||||||||
Total derivatives not designated as hedging instruments under 815-20 | ||||||||||||||||||||||||||||||||||||||
Total derivatives | $ | $ | $ | $ |
Quarter Ended September 30, 2020 | Quarter Ended September 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | $ | $ | $( | $( | $ | $ | $( | $( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | $ | $ | n/a | n/a | $( | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments | n/a | n/a | $ | $ | n/a | n/a | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | $( | n/a | n/a | n/a | $( | n/a | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commodity contracts | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income (loss) into income | $( | n/a | n/a | $ | $ | n/a | n/a | $( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income (loss) into income | n/a | $( | n/a | $( | n/a | $( | n/a | $( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2020 | Nine Months Ended September 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | $ | $ | $( | $( | $ | $ | $( | $( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | $( | n/a | n/a | ( | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments | n/a | n/a | $ | n/a | n/a | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | $( | n/a | n/a | n/a | $( | n/a | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commodity contracts | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income | $( | n/a | n/a | $ | $ | n/a | n/a | $( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income | n/a | $( | n/a | $( | n/a | $( | n/a | $( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying Value | ||||||||||||||||||||
Non-derivative instrument designated as hedging instrument under ASC 815-20 | Balance Sheet Location | As of September 30, 2020 | As of December 31, 2019 | |||||||||||||||||
Foreign currency debt | Current portion of debt | $ | $ | |||||||||||||||||
Foreign currency debt | Long-term debt | |||||||||||||||||||
$ | $ |
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 September 30, 2020 | Quarter Ended September 30, 2019 | Nine Months Ended September 30, 2020 | Nine Months Ended September 30, 2019 | Quarter Ended September 30, 2020 | Quarter Ended September 30, 2019 | Nine Months Ended September 30, 2020 | Nine Months Ended September 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | Interest expense, net of interest capitalized | $ | $ | $ | $ | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | ( | $ | ( | $ | ( |
Line Item in the Statement of Financial Position Where the Hedged Item is Included | Carrying Amount of the Hedged Liabilities | Cumulative amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liabilities | ||||||||||||||||||||||||
As of September 30, 2020 | As of December 31, 2019 | As of September 30, 2020 | As of December 31, 2019 | |||||||||||||||||||||||
Current portion of debt and Long-term debt | $ | $ | $ | $ | ( | |||||||||||||||||||||
$ | $ | $ | $ | ( |
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 September 30, 2020 | Quarter Ended September 30, 2019 | Nine Months Ended September 30, 2020 | Nine Months Ended September 30, 2019 | Quarter Ended September 30, 2020 | Quarter Ended September 30, 2019 | Nine Months Ended September 30, 2020 | Nine Months Ended September 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | $ | ( | $ | ( | $ | ( | $ | ( | Interest expense, net of interest capitalized | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||||||||||||||||||||
Foreign currency forward contracts | ( | ( | Depreciation and amortization expenses | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency forward contracts | Other income (expense) | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Fuel swaps | Other income (expense) | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Fuel swaps | ( | ( | ( | Fuel | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
$ | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ |
Gain (Loss) Recognized in Income (Net Investment Excluded Components) | Nine Months Ended September 30, 2020 | |||||||
Net inception fair value at January 1, 2020 | $ | ( | ||||||
Amount of gain recognized in income on derivatives for the period ended September 30, 2020 | ||||||||
Amount of gain (loss) remaining to be amortized in accumulated other comprehensive loss, as of September 30, 2020 | ||||||||
Fair value at September 30, 2020 | $ | ( |
Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) | ||||||||||||||||||||||||||
Non-derivative instruments under ASC 815-20 Net Investment Hedging Relationships | Quarter Ended September 30, 2020 | Quarter Ended September 30, 2019 | Nine Months Ended September 30, 2020 | Nine Months Ended September 30, 2019 | ||||||||||||||||||||||
Foreign Currency Debt | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||
$ | ( | $ | $ | ( | $ |
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 September 30, 2020 | Quarter Ended September 30, 2019 | Nine Months Ended September 30, 2020 | Nine Months Ended September 30, 2019 | |||||||||||||||||||||||||||
Foreign currency forward contracts | Other income (expense) | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||||||||||
Fuel swaps | Fuel | ( | ||||||||||||||||||||||||||||||
Fuel swaps | Other income (expense) | ( | ( | |||||||||||||||||||||||||||||
$ | ( | $ | ( | $ | ( | $ | ( |
Beginning balance January 1, 2020 | Accruals | Payments | Ending balance September 30, 2020 | Cumulative Charges Incurred | Expected Additional Expenses to be Incurred | ||||||||||||||||||||||||||||||
Termination benefits | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Contract termination costs | |||||||||||||||||||||||||||||||||||
Other related costs | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
Beginning balance January 1, 2020 | Accruals | Payments | Ending balance September 30, 2020 | Cumulative Charges Incurred | Expected Additional Expenses to be Incurred | ||||||||||||||||||||||||||||||
Termination benefits | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Contract termination costs | |||||||||||||||||||||||||||||||||||
Other related costs | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
Quarter Ended September 30, | |||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||
% of Total Revenues | % of Total Revenues | ||||||||||||||||||||||
Passenger ticket revenues | $ | 3,204 | (9.5) | % | $ | 2,344,779 | 73.6 | % | |||||||||||||||
Onboard and other revenues | (36,892) | 109.5 | % | 842,071 | 26.4 | % | |||||||||||||||||
Total revenues | (33,688) | 100.0 | % | 3,186,850 | 100.0 | % | |||||||||||||||||
Cruise operating expenses: | |||||||||||||||||||||||
Commissions, transportation and other | (3,321) | 9.9 | % | 488,921 | 15.3 | % | |||||||||||||||||
Onboard and other | 6,036 | (17.9) | % | 200,656 | 6.3 | % | |||||||||||||||||
Payroll and related | 119,213 | (353.9) | % | 263,993 | 8.3 | % | |||||||||||||||||
Food | 5,640 | (16.7) | % | 149,621 | 4.7 | % | |||||||||||||||||
Fuel | 53,815 | (159.7) | % | 177,677 | 5.6 | % | |||||||||||||||||
Other operating | 127,226 | (377.7) | % | 342,170 | 10.7 | % | |||||||||||||||||
Total cruise operating expenses | 308,609 | (916.1) | % | 1,623,038 | 50.9 | % | |||||||||||||||||
Marketing, selling and administrative expenses | 246,779 | (732.5) | % | 352,725 | 11.1 | % | |||||||||||||||||
Depreciation and amortization expenses | 317,139 | (941.4) | % | 320,295 | 10.1 | % | |||||||||||||||||
Impairment and credit losses | 89,899 | (266.9) | % | — | — | % | |||||||||||||||||
Operating (Loss) Income | (996,114) | 2,956.9 | % | 890,792 | 28.0 | % | |||||||||||||||||
Other (expense) income: | |||||||||||||||||||||||
Interest income | 5,017 | (14.9) | % | 5,625 | 0.2 | % | |||||||||||||||||
Interest expense, net of interest capitalized | (259,349) | 769.9 | % | (102,038) | (3.2) | % | |||||||||||||||||
Equity investment (loss) income | (78,013) | 231.6 | % | 103,654 | 3.3 | % | |||||||||||||||||
Other expense | (10,853) | 32.2 | % | (7,668) | (0.2) | % | |||||||||||||||||
(343,198) | 1,018.8 | % | (427) | — | % | ||||||||||||||||||
Net (Loss) Income | (1,339,312) | 3,975.6 | % | 890,365 | 27.9 | % | |||||||||||||||||
Less: Net Income attributable to noncontrolling interest | 7,444 | (22.1) | % | 7,125 | 0.2 | % | |||||||||||||||||
Net (Loss) Income attributable to Royal Caribbean Cruises Ltd. | $ | (1,346,756) | 3,997.7 | % | $ | 883,240 | 27.7 | % | |||||||||||||||
Diluted (Loss) Earnings per Share | $ | (6.29) | $ | 4.20 |
Nine Months Ended September 30, | |||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||
% of Total Revenues | % of Total Revenues | ||||||||||||||||||||||
Passenger ticket revenues | $ | 1,487,077 | 68.4 | % | $ | 6,072,599 | 72.0 | % | |||||||||||||||
Onboard and other revenues | 687,590 | 31.6 | % | 2,360,649 | 28.0 | % | |||||||||||||||||
Total revenues | 2,174,667 | 100.0 | % | 8,433,248 | 100.0 | % | |||||||||||||||||
Cruise operating expenses: | |||||||||||||||||||||||
Commissions, transportation and other | 342,632 | 15.8 | % | 1,279,010 | 15.2 | % | |||||||||||||||||
Onboard and other | 151,333 | 7.0 | % | 510,255 | 6.1 | % | |||||||||||||||||
Payroll and related | 693,480 | 31.9 | % | 799,094 | 9.5 | % | |||||||||||||||||
Food | 154,439 | 7.1 | % | 436,002 | 5.2 | % | |||||||||||||||||
Fuel | 327,275 | 15.0 | % | 519,772 | 6.2 | % | |||||||||||||||||
Other operating | 830,689 | 38.2 | % | 1,037,113 | 12.3 | % | |||||||||||||||||
Total cruise operating expenses | 2,499,848 | 115.0 | % | 4,581,246 | 54.3 | % | |||||||||||||||||
Marketing, selling and administrative expenses | 944,087 | 43.4 | % | 1,144,546 | 13.6 | % | |||||||||||||||||
Depreciation and amortization expenses | 961,226 | 44.2 | % | 924,180 | 11.0 | % | |||||||||||||||||
Impairment and credit losses | 1,354,514 | 62.3 | % | — | — | % | |||||||||||||||||
Operating (Loss) Income | (3,585,008) | (164.9) | % | 1,783,276 | 21.1 | % | |||||||||||||||||
Other (expense) income: | |||||||||||||||||||||||
Interest income | 15,757 | 0.7 | % | 21,751 | 0.3 | % | |||||||||||||||||
Interest expense, net of interest capitalized | (571,149) | (26.3) | % | (313,757) | (3.7) | % | |||||||||||||||||
Equity investment (loss) income | (140,258) | (6.4) | % | 170,393 | 2.0 | % | |||||||||||||||||
Other expense | (127,537) | (5.9) | % | (34,537) | (0.4) | % | |||||||||||||||||
(823,187) | (37.9) | % | (156,150) | (1.9) | % | ||||||||||||||||||
Net (Loss) Income | $ | (4,408,195) | (202.7) | % | $ | 1,627,126 | 19.3 | % | |||||||||||||||
Less: Net Income attributable to noncontrolling interest | 22,332 | 1.0 | % | 21,375 | 0.3 | % | |||||||||||||||||
Net (Loss) Income attributable to Royal Caribbean Cruises Ltd. | $ | (4,430,527) | (203.7) | % | $ | 1,605,751 | 19.0 | % | |||||||||||||||
Diluted (Loss) Earnings per Share | $ | (21.01) | $ | 7.65 |
Quarter Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Net (Loss) Income attributable to Royal Caribbean Cruises Ltd. | $ | (1,346,756) | $ | 883,240 | $ | (4,430,527) | $ | 1,605,751 | |||||||||||||||
Adjusted Net (Loss) Income attributable to Royal Caribbean Cruises Ltd. | (1,204,350) | 896,838 | (2,797,335) | 1,705,420 | |||||||||||||||||||
Net Adjustments to Net (Loss) Income attributable to Royal Caribbean Cruises Ltd. | $ | 142,406 | $ | 13,598 | $ | 1,633,192 | $ | 99,669 | |||||||||||||||
Adjustments to Net (Loss) Income attributable to Royal Caribbean Cruises Ltd.: | |||||||||||||||||||||||
Impairment and credit losses (1) | $ | 89,899 | $ | — | 1,354,514 | $ | — | ||||||||||||||||
Equity investment impairment (2) | — | — | 39,735 | — | |||||||||||||||||||
Currency translation adjustment losses (3) | — | — | 69,044 | — | |||||||||||||||||||
Pullmantur reorganization settlement (4) | — | — | 21,637 | — | |||||||||||||||||||
Restructuring charges and other initiatives expense (5) | 5,720 | — | 50,745 | — | |||||||||||||||||||
Convertible debt amortization of debt discount (6) | 17,750 | — | 21,934 | — | |||||||||||||||||||
Loss on extinguishment of debt (7) | 774 | — | 41,109 | 6,326 | |||||||||||||||||||
Amortization of Silversea Cruises intangible assets resulting from the 2018 Silversea Cruises acquisition (8) | 3,069 | 3,069 | 9,207 | 9,207 | |||||||||||||||||||
Noncontrolling interest adjustment (9) | 25,715 | 8,508 | 72,331 | 43,082 | |||||||||||||||||||
Change in fair value of the Silversea contingent consideration (8) | (521) | — | (45,126) | 10,700 | |||||||||||||||||||
Net insurance recoveries of Oasis of the Seas incident (10) | — | 2,021 | (1,938) | 29,168 | |||||||||||||||||||
Transaction costs related to the 2018 Silversea Cruises acquisition (8) | — | — | — | 1,186 | |||||||||||||||||||
Net Adjustments to Net (Loss) Income attributable to Royal Caribbean Cruises Ltd. | $ | 142,406 | $ | 13,598 | $ | 1,633,192 | $ | 99,669 | |||||||||||||||
Basic: | |||||||||||||||||||||||
(Loss) Earnings per Share | $ | (6.29) | $ | 4.21 | $ | (21.01) | $ | 7.67 | |||||||||||||||
Adjusted (Loss) Earnings per Share | $ | (5.62) | $ | 4.28 | $ | (13.26) | $ | 8.14 | |||||||||||||||
Diluted: | |||||||||||||||||||||||
(Loss) Earnings per Share | $ | (6.29) | $ | 4.20 | $ | (21.01) | $ | 7.65 | |||||||||||||||
Adjusted (Loss) Earnings per Share | $ | (5.62) | $ | 4.27 | $ | (13.26) | $ | 8.12 | |||||||||||||||
Weighted-Average Shares Outstanding: | |||||||||||||||||||||||
Basic | 214,163 | 209,575 | 210,894 | 209,477 | |||||||||||||||||||
Diluted | 214,163 | 210,121 | 210,894 | 210,032 |
Quarter Ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Passengers Carried | 1,230 | 1,728,997 | 1,261,075 | 4,926,123 | |||||||||||||||||||
Passenger Cruise Days | 5,424 | 11,863,189 | 8,653,799 | 33,746,534 | |||||||||||||||||||
APCD | 5,424 | 10,733,254 | 8,437,003 | 31,031,274 | |||||||||||||||||||
Occupancy | 100.0 | % | 110.5 | % | 102.6 | % | 108.8 | % |
Ship | Shipyard | Contractual Delivery Date | Approximate Berths | |||||||||||
Royal Caribbean International — | ||||||||||||||
Oasis-class: | ||||||||||||||
Wonder of the Seas | Chantiers de l'Atlantique | 2nd Quarter 2021 | 5,700 | |||||||||||
Unnamed | Chantiers de l'Atlantique | 4th Quarter 2023 | 5,700 | |||||||||||
Quantum-class: | ||||||||||||||
Odyssey of the Seas | Meyer Werft | 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 | |||||||||||
Unnamed | Meyer Turku Oy | 2nd Quarter 2025 | 5,600 | |||||||||||
Celebrity Cruises — | ||||||||||||||
Edge-class: | ||||||||||||||
Celebrity Beyond | Chantiers de l'Atlantique | 4th Quarter 2021 | 3,250 | |||||||||||
Unnamed | Chantiers de l'Atlantique | 4th Quarter 2022 | 3,250 | |||||||||||
Silversea Cruises — | ||||||||||||||
Muse-Class: | ||||||||||||||
Silver Moon (1) | Fincantieri | 3rd Quarter 2020 | 550 | |||||||||||
Silver Dawn | Fincantieri | 4th Quarter 2021 | 550 | |||||||||||
Evolution Class: | ||||||||||||||
Unnamed | Meyer Werft | 1st Quarter 2022 | 600 | |||||||||||
Unnamed | Meyer Werft | 1st Quarter 2023 | 600 | |||||||||||
TUI Cruises (50% joint venture) — | ||||||||||||||
Mein Schiff 7 | Meyer Turku Oy | 2nd Quarter 2023 | 2,900 | |||||||||||
Unnamed | Fincantieri | 3rd Quarter 2024 | 4,100 | |||||||||||
Unnamed | Fincantieri | 1st Quarter 2026 | 4,100 | |||||||||||
Hapag-Lloyd Cruises (50% joint venture) — | ||||||||||||||
Hanseatic Spirit | VARD | 2nd Quarter 2021 | 230 | |||||||||||
Total Berths | 52,530 |
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) | $ | 863,516 | $ | 125,300 | $ | 219,666 | $ | 84,186 | $ | 434,364 | |||||||||||||||||||
Interest on debt(2) | 3,842,616 | 893,146 | 1,573,354 | 836,295 | 539,821 | ||||||||||||||||||||||||
Other(3) | 620,741 | 200,123 | 373,183 | 24,083 | 23,352 | ||||||||||||||||||||||||
Investing Activities: | 0 | ||||||||||||||||||||||||||||
Ship purchase obligations(4) | 11,304,988 | 3,023,432 | 4,291,486 | 3,990,070 | — | ||||||||||||||||||||||||
Financing Activities: | 0 | ||||||||||||||||||||||||||||
Commercial paper(5) | 386,683 | 386,683 | — | — | — | ||||||||||||||||||||||||
Debt obligations(6) | 18,286,811 | 823,514 | 8,122,072 | 6,417,986 | 2,923,239 | ||||||||||||||||||||||||
Finance lease obligations(7) | 216,953 | 46,513 | 29,479 | 10,914 | 130,047 | ||||||||||||||||||||||||
Other(8) | 13,765 | 5,647 | 6,861 | 1,257 | — | ||||||||||||||||||||||||
Total | $ | 35,536,073 | $ | 5,504,358 | $ | 14,616,101 | $ | 11,364,791 | $ | 4,050,823 |
10.1 | ||||||||
10.2 | ||||||||
10.3 | ||||||||
10.4 | ||||||||
10.5 | ||||||||
10.6 | ||||||||
10.7 | ||||||||
10.8 | ||||||||
10.9 | ||||||||
10.10 | ||||||||
10.11 | ||||||||
10.12 | ||||||||
10.13 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 |
* | Filed herewith | |||||||
** | Furnished herewith |
ROYAL CARIBBEAN CRUISES LTD. | ||||||||
(Registrant) | ||||||||
/s/ JASON T. LIBERTY | ||||||||
Jason T. Liberty | ||||||||
Executive Vice President, Chief Financial Officer | ||||||||
November 4, 2020 | (Principal Financial Officer and duly authorized signatory) |
SECTION 1: Existing Indebtedness of Silversea (a) The obligations of the Borrower or its Subsidiaries in connection with those certain Bareboat Charterparties with respect to (i) the vessel SILVER EXPLORER dated July 22, 2011 between Silversea Cruises Ltd. and Hammonia Adventure and Cruise Shipping Company Ltd. and (ii) the vessel SILVER WHISPER dated March 15, 2012 between Whisper S.p.A. and various lessors, and the replacement, extension, renewal or amendment of each of the foregoing without increase in the amount or change in any direct or contingent obligor of such obligations, (the “Existing Silversea Leases”); (b) Indebtedness arising pursuant to that certain Bareboat Charterparty dated May 17, 2018 by and between Hai Xing 1702 Limited and Silversea New Build Eight Ltd., as such agreement may be amended from time to time; and (c) Indebtedness secured by Liens of the type described in Section 2 of this Exhibit F. SECTION 2: Existing Liens of Silversea (a) Liens securing the $620,000,000 in principal amount of 7.25% senior secured notes due 2025 issued by Silversea Cruise Finance Ltd. pursuant that certain Indenture dated as of January 30, 2017; (b) Liens on the vessels SILVER WHISPER and SILVER EXPLORER existing as of 29 April 2020 and securing the Existing Silversea Leases (and any Lien on such vessels securing any refinancing of the Existing Silversea Leases, so long as such Vessel was subject to a Lien securing the Indebtedness being refinanced immediately prior to such refinancing); (c) Liens on the Vessel with Hull 6280 built or being built at Fincantieri S.p.A. and arising pursuant to that certain Bareboat Charterparty dated May 17, 2018 by and between Hai Xing 1702 Limited and Silversea New Build Eight Ltd., as such agreement may be amended from time to time (and any Lien on such Vessel securing any refinancing of such bareboat charterparty); and (d) Liens securing Indebtedness of the type described in Section 1 of this Exhibit F. |
SECTION 1: Existing Indebtedness of Silversea (a) The obligations of the Borrower or its Subsidiaries in connection with those certain Bareboat Charterparties with respect to (i) the vessel SILVER EXPLORER dated July 22, 2011 between Silversea Cruises Ltd. and Hammonia Adventure and Cruise Shipping Company Ltd. and (ii) the vessel SILVER WHISPER dated March 15, 2012 between Whisper S.p.A. and various lessors, and the replacement, extension, renewal or amendment of each of the foregoing without increase in the amount or change in any direct or contingent obligor of such obligations, (the “Existing Silversea Leases”); (b) Indebtedness arising pursuant to that certain Bareboat Charterparty dated May 17, 2018 by and between Hai Xing 1702 Limited and Silversea New Build Eight Ltd., as such agreement may be amended from time to time; and (c) Indebtedness secured by Liens of the type described in Section 2 of this Exhibit F. SECTION 2: Existing Liens of Silversea (a) Liens securing the $620,000,000 in principal amount of 7.25% senior secured notes due 2025 issued by Silversea Cruise Finance Ltd. pursuant that certain Indenture dated as of January 30, 2017; (b) Liens on the vessels SILVER WHISPER and SILVER EXPLORER existing as of 29 April 2020 and securing the Existing Silversea Leases (and any Lien on such vessels securing any refinancing of the Existing Silversea Leases, so long as such Vessel was subject to a Lien securing the Indebtedness being refinanced immediately prior to such refinancing); (c) Liens on the Vessel with Hull 6280 built or being built at Fincantieri S.p.A. and arising pursuant to that certain Bareboat Charterparty dated May 17, 2018 by and between Hai Xing 1702 Limited and Silversea New Build Eight Ltd., as such agreement may be amended from time to time (and any Lien on such Vessel securing any refinancing of such bareboat charterparty); and (d) Liens securing Indebtedness of the type described in Section 1 of this Exhibit F. |
SECTION 1: Existing Indebtedness of Silversea (a) The obligations of the Borrower or its Subsidiaries in connection with those certain Bareboat Charterparties with respect to (i) the vessel SILVER EXPLORER dated July 22, 2011 between Silversea Cruises Ltd. and Hammonia Adventure and Cruise Shipping Company Ltd. and (ii) the vessel SILVER WHISPER dated March 15, 2012 between Whisper S.p.A. and various lessors, and the replacement, extension, renewal or amendment of each of the foregoing without increase in the amount or change in any direct or contingent obligor of such obligations, (the “Existing Silversea Leases”); (b) Indebtedness arising pursuant to that certain Bareboat Charterparty dated May 17, 2018 by and between Hai Xing 1702 Limited and Silversea New Build Eight Ltd., as such agreement may be amended from time to time; and (c) Indebtedness secured by Liens of the type described in Section 2 of this Exhibit F. SECTION 2: Existing Liens of Silversea (a) Liens securing the $620,000,000 in principal amount of 7.25% senior secured notes due 2025 issued by Silversea Cruise Finance Ltd. pursuant that certain Indenture dated as of January 30, 2017; (b) Liens on the vessels SILVER WHISPER and SILVER EXPLORER existing as of 29 April 2020 and securing the Existing Silversea Leases (and any Lien on such vessels securing any refinancing of the Existing Silversea Leases, so long as such Vessel was subject to a Lien securing the Indebtedness being refinanced immediately prior to such refinancing); (c) Liens on the Vessel with Hull 6280 built or being built at Fincantieri S.p.A. and arising pursuant to that certain Bareboat Charterparty dated May 17, 2018 by and between Hai Xing 1702 Limited and Silversea New Build Eight Ltd., as such agreement may be amended from time to time (and any Lien on such Vessel securing any refinancing of such bareboat charterparty); and (d) Liens securing Indebtedness of the type described in Section 1 of this Exhibit F. |
SECTION 1: Existing Indebtedness of Silversea (a) The obligations of the Borrower or its Subsidiaries in connection with those certain Bareboat Charterparties with respect to (i) the vessel SILVER EXPLORER dated July 22, 2011 between Silversea Cruises Ltd. and Hammonia Adventure and Cruise Shipping Company Ltd. and (ii) the vessel SILVER WHISPER dated March 15, 2012 between Whisper S.p.A. and various lessors, and the replacement, extension, renewal or amendment of each of the foregoing without increase in the amount or change in any direct or contingent obligor of such obligations, (the “Existing Silversea Leases”); (b) Indebtedness arising pursuant to that certain Bareboat Charterparty dated May 17, 2018 by and between Hai Xing 1702 Limited and Silversea New Build Eight Ltd., as such agreement may be amended from time to time; and (c) Indebtedness secured by Liens of the type described in Section 2 of this Exhibit F. SECTION 2: Existing Liens of Silversea (a) Liens securing the $620,000,000 in principal amount of 7.25% senior secured notes due 2025 issued by Silversea Cruise Finance Ltd. pursuant that certain Indenture dated as of January 30, 2017; (b) Liens on the vessels SILVER WHISPER and SILVER EXPLORER existing as of 29 April 2020 and securing the Existing Silversea Leases (and any Lien on such vessels securing any refinancing of the Existing Silversea Leases, so long as such Vessel was subject to a Lien securing the Indebtedness being refinanced immediately prior to such refinancing); (c) Liens on the Vessel with Hull 6280 built or being built at Fincantieri S.p.A. and arising pursuant to that certain Bareboat Charterparty dated May 17, 2018 by and between Hai Xing 1702 Limited and Silversea New Build Eight Ltd., as such agreement may be amended from time to time (and any Lien on such Vessel securing any refinancing of such bareboat charterparty); and (d) Liens securing Indebtedness of the type described in Section 1 of this Exhibit F. |
Date: | November 4, 2020 | |||||||
/s/ Richard D. Fain | ||||||||
Richard D. Fain | ||||||||
Chairman and | ||||||||
Chief Executive Officer | ||||||||
(Principal Executive Officer) |
Date: | November 4, 2020 | |||||||
/s/ Jason T. Liberty | ||||||||
Jason T. Liberty | ||||||||
Executive Vice President, Chief Financial Officer | ||||||||
(Principal Financial Officer) |
Date: | November 4, 2020 | ||||||||||
By: | /s/ Richard D. Fain | ||||||||||
Richard D. Fain | |||||||||||
Chairman and | |||||||||||
Chief Executive Officer | |||||||||||
(Principal Executive Officer) | |||||||||||
By: | /s/ Jason T. Liberty | ||||||||||
Jason T. Liberty | |||||||||||
Executive Vice President, Chief Financial Officer | |||||||||||
(Principal Financial Officer) |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Trade and other receivables, allowance for credit loss | $ 7,673 | $ 5,635 |
Other assets, allowance for credit loss | $ 73,156 | $ 0 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 242,502,983 | 236,547,842 |
Treasury stock, common shares (in shares) | 27,799,775 | 27,746,848 |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands |
Total |
Common Stock |
Paid-in Capital |
Retained Earnings |
Accumulated Other Comprehensive Loss |
Treasury Stock |
---|---|---|---|---|---|---|
Beginning balance at Dec. 31, 2018 | $ 11,105,461 | $ 2,358 | $ 3,420,900 | $ 10,263,282 | $ (627,734) | $ (1,953,345) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Activity related to employee stock plans | 40,584 | 7 | 45,741 | (5,164) | ||
Changes related to cash flow derivative hedges | (288,115) | (288,115) | ||||
Change in defined benefit plans | (22,831) | (22,831) | ||||
Foreign currency translation adjustments | (7,683) | (7,683) | ||||
Net Income attributable to Royal Caribbean Cruises Ltd. | 1,605,751 | 1,605,751 | ||||
Common stock dividends | (456,260) | (456,260) | ||||
Ending balance at Sep. 30, 2019 | 11,976,907 | 2,365 | 3,466,641 | 11,412,773 | (946,363) | (1,958,509) |
Beginning balance at Jun. 30, 2019 | 11,538,403 | 2,364 | 3,454,831 | 10,692,890 | (653,173) | (1,958,509) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Activity related to employee stock plans | 11,811 | 1 | 11,810 | 0 | ||
Changes related to cash flow derivative hedges | (265,224) | (265,224) | ||||
Change in defined benefit plans | (12,456) | (12,456) | ||||
Foreign currency translation adjustments | (15,510) | (15,510) | ||||
Net Income attributable to Royal Caribbean Cruises Ltd. | 883,240 | 883,240 | ||||
Common stock dividends | (163,357) | (163,357) | ||||
Ending balance at Sep. 30, 2019 | 11,976,907 | 2,365 | 3,466,641 | 11,412,773 | (946,363) | (1,958,509) |
Beginning balance at Dec. 31, 2019 | 12,163,846 | 2,365 | 3,493,959 | 11,523,326 | (797,713) | (2,058,091) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Activity related to employee stock plans | 11,894 | 8 | 11,886 | |||
Silversea acquisition | 608,876 | 52 | 608,824 | |||
Changes related to cash flow derivative hedges | (110,139) | (110,139) | ||||
Change in defined benefit plans | (16,953) | (16,953) | ||||
Foreign currency translation adjustments | 55,698 | 55,698 | ||||
Net Income attributable to Royal Caribbean Cruises Ltd. | (4,430,527) | (4,430,527) | ||||
Equity component of convertible notes, net of issuance costs | 208,988 | 208,988 | ||||
Common stock dividends | (163,089) | (163,089) | ||||
Purchases of treasury stock | 0 | 5,900 | (5,900) | |||
Ending balance at Sep. 30, 2020 | 8,328,594 | 2,425 | 4,329,557 | 6,929,710 | (869,107) | (2,063,991) |
Beginning balance at Jun. 30, 2020 | 8,963,905 | 2,372 | 3,700,288 | 8,276,463 | (951,227) | (2,063,991) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Activity related to employee stock plans | 20,446 | 1 | 20,445 | |||
Silversea acquisition | 608,876 | 52 | 608,824 | |||
Changes related to cash flow derivative hedges | 66,135 | 66,135 | ||||
Change in defined benefit plans | (3,086) | (3,086) | ||||
Foreign currency translation adjustments | 19,074 | 3 | 19,071 | |||
Net Income attributable to Royal Caribbean Cruises Ltd. | (1,346,756) | (1,346,756) | ||||
Ending balance at Sep. 30, 2020 | $ 8,328,594 | $ 2,425 | $ 4,329,557 | $ 6,929,710 | $ (869,107) | $ (2,063,991) |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares |
1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 |
Mar. 31, 2020 |
Dec. 31, 2019 |
Sep. 30, 2019 |
Jun. 30, 2019 |
Mar. 31, 2019 |
Dec. 31, 2018 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Statement of Stockholders' Equity [Abstract] | |||||||||
Common stock dividends declared (in dollars per share) | $ 0.78 | $ 0.78 | $ 0.78 | $ 0.78 | $ 0.70 | $ 0.70 | $ 0.70 | $ 0.78 | $ 2.18 |
General |
9 Months Ended |
---|---|
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | General Description of Business We are a global cruise company. As of September 30, 2020, we control and operate four global cruise brands: Royal Caribbean International, Celebrity Cruises, Azamara, and Silversea Cruises (collectively, our "Global Brands"). We also own a 50% joint venture interest in TUI Cruises GmbH ("TUIC"), our 50%-owned joint venture that operates the German brands TUI Cruises and Hapag-Lloyd Cruises (collectively, our "Partner Brands"). On June 30, 2020, TUIC acquired Hapag-Lloyd Cruises, a luxury and expedition brand for German-speaking guests, from TUI AG for approximately €1.2 billion, or $1.3 billion. See Note 6. Other Assets for further information on the acquisition. We account for our investments in our Partner Brands under the equity method of accounting. On June 22, 2020, Pullmantur S.A, a subsidiary of Pullmantur Holdings S.L. ("Pullmantur Holdings"), in which we own a 49% non-controlling interest, filed for reorganization under the terms of the Spanish insolvency laws (the "Pullmantur reorganization") due to the negative impact of the COVID-19 pandemic on the company. Subsequently, Pullmantur Holdings and certain of its other subsidiaries filed for reorganization in Spain. The Pullmantur brand has cancelled all of its ship operations until, at least, November 15, 2020. We suspended equity method accounting for Pullmantur Holdings during the second quarter of 2020. Refer to Note 6. Other Assets for further information regarding Pullmantur's reorganization filing and its impact to the Company. On July 9, 2020, we acquired the 33.3% interest in Silversea Cruises that we did not already own (the "noncontrolling interest") from Heritage Cruise Holding Ltd. ("Heritage"). As a result of the acquisition, Silversea Cruises is now a wholly owned cruise brand. As consideration for the noncontrolling interest, we issued to Heritage 5.2 million shares of common stock, par value $0.01 per share, of Royal Caribbean Cruises Ltd. Pursuant to the agreement governing the acquisition, among other things, the parties terminated any existing obligation to issue Heritage any contingent consideration, at fair value, in connection with our acquisition of a 66.7% interest in Silversea Cruises on July 31, 2018. The share purchase did not result in a change of control. The purchase was accounted for as an equity transaction and no gain or loss was recognized in earnings. See Note 9. Redeemable Noncontrolling Interest for further information regarding our acquisition of Silversea Cruises' noncontrolling interest. Management's Plan and Liquidity As part of the global containment effort for the COVID-19 pandemic, we implemented a voluntary suspension of our Global Brands' cruise operations effective March 13, 2020 which has been extended through at least December 31, 2020, excluding sailings from Singapore. Celebrity Cruises also suspended its full 2020/21 Winter program in Australia and Asia. Additionally, Azamara suspended its 2020/21 Winter sailings throughout Australia and New Zealand, South Africa and South America. On March 14, 2020, concurrent with our and the broader cruise industry’s suspension, the U.S. Centers for Disease Control and Prevention (“CDC”) issued a No Sail Order, which expired on October 31, 2020. On and effective as of October 30, 2020, the CDC issued a Framework for Conditional Sailing Order (the “Conditional Order”) that will conditionally permit cruise ship passenger operations in U.S. waters under certain conditions and using a phased approach. The phases contemplated in the Conditional Order are subject to further interpretation and guidance by the CDC and to change based on public health considerations and the ability of the Company and other cruise ship operators’ to mitigate COVID-19 risks. The Conditional Order shall remain in effect until the earlier of (1) the expiration of the Secretary of Health and Human Services’ declaration that COVID-19 constitutes a public health emergency; (2) the CDC Director rescinds or modifies the Conditional Order based on specific public health or other considerations, or (3) November 1, 2021. We are currently reviewing the Conditional Order and assessing the uncertainties relating to the Conditional Order’s requirements. Based on our initial assessment of these conditions or for other reasons, we may determine it necessary to further extend our voluntary suspension of our Global Brands’ cruise sailings which currently extends through at least December 31, 2020. Significant events affecting travel, including COVID-19, typically have an impact on the booking pattern for cruise vacations, with the full extent of the impact generally determined by the length of time the event influences travel decisions. Based on our assumptions and estimates and our financial condition, we believe that the liquidity described in the following paragraphs will be sufficient to fund our liquidity requirements for at least the next twelve months from the issuance of these financial statements. However, there can be no assurance that our assumptions and estimates are accurate due to possible variables, including, but not limited to, the uncertainties associated with the CDC’s interpretation and application of the requirements in the Conditional Order and subsequent changes to those requirements, our ability to meet the requirements of the Conditional Order and the costs associated with compliance, some of which may be significant, and whether efforts by other countries to contain the disease will further restrict our ability to commence operations. The suspension of our operations and the impact to our global bookings resulting from the COVID-19 pandemic will continue to have a material negative impact on our results of operations and liquidity, which may be prolonged beyond containment of the disease. We have undertaken several proactive measures to mitigate the financial and operational impacts of COVID-19, including reduction of capital expenditures and operating expenses, furloughing staff and laying up of vessels. As of September 30, 2020, we had liquidity of $3.7 billion, consisting of cash and cash equivalents of $3.0 billion and a $0.7 billion one-year commitment for a 364-day term loan facility. As of September 30, 2020, our revolving credit facilities were fully utilized through a combination of amounts drawn and letters of credit issued under the facilities. Through the nine months ended September 30, 2020, we executed and amended various financing arrangements, as described in Note 7. Debt, which have resulted in $8.1 billion of incremental liquidity, including: •a $0.6 billion increase in the capacity available under our revolving credit facilities; •additional liquidity of $6.2 billion through the issuance of new debt, net of repayments, and the securing of a one-year $700 million commitment for a 364-day term loan facility; •£300.0 million, or $387.9 million, based on exchange rates as of September 30, 2020, of available and issued liquidity under an unsecured government commercial paper program with the Bank of England; and •the deferral of $0.9 billion of existing debt amortization under our export-credit backed ship debt facilities through April 2021. In October 2020, we issued $575 million of 2.875% senior convertible notes due 2023. See Note 7. Debt for further information on the debt issuance. Concurrently, we issued 9.6 million shares of common stock at a price of $60.00 per share, for approximately $575 million. See Note 11. Shareholders' Equity for further information on the common stock issuance. Additionally, as of June 30, 2020, we amended our export credit facilities and our non-export credit facilities, totaling an outstanding principal amount of $11.0 billion, and certain of our credit card processing agreements to suspend the testing of financial covenants through and including the first quarter of 2021. As of September 30, 2020, we further extended the financial covenant waiver on our export credit facilities, certain of our non-export credit facilities and our credit card processor agreements through and including the fourth quarter of 2021. Certain of these amended agreements impose a monthly-tested liquidity covenant. The minimum liquidity requirement was $500.0 million as of September 30, 2020; however, this amount was subsequently reduced to $350.0 million upon completion of our capital raising activities in October. Pursuant to these amendments, we have also agreed that we will not pay cash dividends or effectuate share repurchases during the waiver period unless we are in compliance with the fixed charge coverage covenant as of the end of the most recently completed quarter for the duration of the waiver period. As of September 30, 2020, we were in compliance with the applicable minimum liquidity covenant and we estimate that we will be in compliance for at least the next twelve months. Refer to Note 7. Debt for further information regarding our debt covenants. Certain of our credit card processing agreements that govern the terms to advance passenger ticket deposits require under certain circumstances, including existence of a material adverse change, excessive chargebacks and other triggering events, that we maintain a reserve which could be satisfied by posting collateral. We have executed amendments to these agreements, such that certain covenant and collateral requirements are waived for a period through December 2021. Based on the triggers in the various agreements, we do not believe any incremental collateral will be required, although the maximum additional collateral or reserves we could potentially need to provide under these agreements in the next twelve months is approximately $75 million. Any further covenant waivers may lead to increased costs, increased interest rates, additional restrictive covenants and other available lender protections as may be agreed with our lenders. There can be no assurance that we would be able to obtain additional waivers in a timely manner, or on acceptable terms. If we require additional waivers and are not able to obtain them or repay the debt facilities, this would lead to an event of default and potential acceleration of amounts due under all of our outstanding debt and derivative contracts. If we require additional waivers on the credit card processing agreements and are not able to obtain them, this could lead to the termination of these agreements or the trigger of reserve requirements. Certain of our surety agreements with third party providers for the benefit of certain agencies and associations that provide travel related bonds allow the surety to request collateral in the form of cash or letters of credit. Several of these agreements are currently up for renewal. We expect that our current and/or new providers will request collateral in the amount of approximately $80 million based on the exchange rate at September 30, 2020. 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, 2019, as updated by our Current Report on Form 8-K dated May 13, 2020, for a discussion of our significant accounting policies. All significant intercompany accounts and transactions are eliminated in consolidation. We consolidate entities over which we have control, usually evidenced by a direct ownership interest of greater than 50%, and variable interest entities where we are determined to be the primary beneficiary. Refer to Note 6. Other Assets for further information regarding our variable interest entities. 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 July 1, 2020 through September 30, 2020 that would require further disclosure or adjustment to our consolidated financial statements as of and for the quarter ended September 30, 2020, with the exception of our July 2020 acquisition of the noncontrolling interest, which was accounted for in our consolidated financial statements as of September 30, 2020. 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.
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Summary of Significant Accounting Policies |
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Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Adoption of Accounting Pronouncements In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2016-13, Financial Instruments - Credit Losses (Topic 326); Measurement of Credit Losses on Financial Instruments. This ASU, along with subsequent ASUs issued to clarify certain of its provisions, introduces new guidance which makes substantive changes to the accounting model for financial assets subject to credit losses that are measured at amortized cost, as well as certain off-balance sheet credit exposures. The updates include the introduction of a new current expected credit loss (“CECL”) model that is based on expected rather than incurred losses. On January 1, 2020, we adopted these updates using the modified retrospective approach. The adoption did not have a material impact to our consolidated financial statements. Recent Accounting Pronouncements In January 2020, the FASB issued ASU No. 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivative and Hedging (Topic 815), which clarifies the interaction of rules for equity securities, the equity method of accounting, and forward contracts and purchase options on certain types of securities. The guidance clarifies how to account for the transition into and out of the equity method of accounting when considering observable transactions under the measurement alternative. The ASU is effective for annual reporting periods beginning after December 15, 2020, including interim reporting periods within those annual periods, with early adoption permitted. We are currently evaluating the impact of the new guidance on our consolidated financial statements. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848), which provides optional expedients and exceptions to the current guidance on contract modifications and hedging relationships to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative reference rates. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. We are currently evaluating the impact of the new guidance on our consolidated financial statements. In August 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40), which simplifies the accounting for convertible instruments. The guidance removes certain accounting models which separate the embedded conversion features from the host contract for convertible instruments, requiring bifurcation only if the convertible debt feature qualifies as a derivative under ASC 815 or for convertible debt issued at a substantial premium. The ASU removes certain settlement conditions required for equity contracts to qualify for the derivative scope exception, permitting more contracts to qualify for it. In addition, the guidance eliminates the treasury stock method to calculate diluted earnings per share for convertible instruments and requires the use of the if-converted method. The ASU is effective for annual reporting periods beginning after December 15, 2021, including interim reporting periods within those annual periods, with early adoption permitted no earlier than the fiscal year beginning after December 15, 2020. The guidance is expected to have an impact on our consolidated financial statements given the recent issuance of convertible notes, however, we are still evaluating the magnitude of the new guidance on our consolidated financial statements.
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Impairment and Credit Losses |
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Impairment and Credit Losses | Impairment and Credit Losses The increased challenges related to COVID-19 have significantly impacted our expected investments, operating plans and projected cash flows. Refer to Note 1. General for further information regarding COVID-19 and its impact to the Company. As a result of these developments, we performed interim impairment evaluations in 2020 on certain assets as further discussed below. Goodwill & Intangible Assets The following are the carrying amounts of goodwill attributable to our Royal Caribbean International, Celebrity Cruises and Silversea Cruises reporting units and the changes in such balances during the quarter and nine months ended September 30, 2020 (in thousands) are as follows:
We performed interim impairment evaluations of Royal Caribbean International’s goodwill in connection with the preparation of our quarterly financial statements for the periods ended March 31, 2020 and June 30, 2020 due to the significant impact that COVID-19 has had on our projected cash flows and triggering events identified in those quarters. Our extended suspension of our operations and the possibility of further extensions created some uncertainty in forecasting the operating results and future cash flows used in our impairment analyses. As a result of our evaluations, we determined that the fair value of the Royal Caribbean International reporting unit exceeded its carrying value as of March 31, 2020 and June 30, 2020 by approximately 30% and 8%, respectively, resulting in no impairment to the Royal Caribbean International goodwill. We did not perform an interim impairment evaluation of Royal Caribbean International's goodwill during the quarter ended September 30, 2020 as no triggering events were identified. We will assess Royal Caribbean International's goodwill during our annual impairment evaluation to be performed in the fourth quarter of 2020 for any additional adverse impact of COVID-19 that may result in changes to the assumptions used in the June 30, 2020 impairment testing. For the quarters ended March 31, 2020 and June 30, 2020, we estimated the fair value of the Royal Caribbean International reporting unit using a probability-weighted discounted cash flow model in combination with a market-based valuation approach. Significant assumptions used in these valuations include the weighted average cost of capital discount factor, revenue base, revenue growth rate and terminal rate. As of the three months ended September 30, 2020, the carrying amount of goodwill attributable to our Royal Caribbean International reporting unit was $296.6 million. We also performed an interim impairment evaluation of Silversea Cruises’ goodwill and trade name in connection with the preparation of our financial statements for the quarter ended March 31, 2020. We estimated the fair value of the Silversea Cruises reporting unit using a probability-weighted discounted cash flow model in combination with a market-based valuation approach. Significant assumptions used in these valuations include the weighted average cost of capital discount factor, revenue growth rates and royalty rate. As a result of the analysis, we determined that the carrying value of the Silversea Cruises reporting unit exceeded its fair value as of March 31, 2020. Accordingly, we recognized a goodwill impairment charge of $576.2 million for the quarter ended March 31, 2020. For the quarters ended June 30, 2020 and September 30, 2020, we did not perform interim impairment evaluations of the Silversea Cruises goodwill and trade name, as no triggering events were identified. As of September 30, 2020, the carrying amount of goodwill attributable to our Silversea Cruises reporting unit was $508.6 million. 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 September 30, 2020 and December 31, 2019 (in thousands):
Impairment charges related to the Silversea Cruises trade name included within Indefinite-life intangible assets in the table above were $30.8 million for the nine months ended September 30, 2020 and were recorded during the quarter ended March 31, 2020. Long-lived Assets During the quarter ended March 31, 2020, we identified that the undiscounted cash flows of certain long-lived assets, consisting of 8 ships and certain right-of-use assets, were less than their carrying values. Events surrounding the COVID-19 pandemic negatively impacted the expected undiscounted cash flows of these assets. As a result of this determination, we evaluated these assets pursuant to our long-lived asset impairment test, which resulted in an impairment charge of $463.0 million to write down these assets to their estimated fair values during the quarter ended March 31, 2020. During the quarter ended June 30, 2020, we terminated the agreements chartering Monarch of the Seas, Horizon of the Seas and Sovereign of the Seas to Pullmantur Holdings and agreed to sell the ships to a third party. Consequently, the ships met accounting criteria to be classified as held for sale which resulted in a further impairment charge of $15.2 million during the quarter ended June 30, 2020 to adjust the carrying value of the assets held for sale to their fair value, less cost to sell. We sold the ships to third parties during the three months ended September 30, 2020 for amounts approximating their carrying values. As a result of the continuing effect of COVID-19 on our expected future operating cash flows, we determined certain impairment triggers had occurred during the quarter ended June 30, 2020. Accordingly, we updated and performed undiscounted cash flow analyses on certain ships in our fleet and right-of-use of assets and identified further impairment on two ships and one right of use asset, as the undiscounted cashflows were less than their carrying values. We determined that an additional impairment charge of $49.7 million was required to write down these assets to their estimated fair values as of June 30, 2020. We performed undiscounted cash flow recoverability evaluations for three ships with a combined net book value of approximately $400.0 million in connection with the preparation of our financial statements during the quarter ended September 30, 2020. As a result of these recoverability evaluations, it was determined the carrying value of these three ships were recoverable at September 30, 2020. Our assessment applied probability scenario cash flows by using a 50% weighting to undiscounted cash flows through the remaining life of the ships and 50% to cash flows assuming disposal of the ships. In the event that our intent to continue to operate the ships changes, or the probability of disposing increases to approximately 75%, the vessels would need to be fair valued and we expect that a material impairment charge would be recorded. We will continue to monitor these ships and our intent to use these ships in light of the COVID-19 environment. For the quarter ended September 30, 2020, we had no further indication of impairment to the carrying amount of our other ships and our right-of-use assets. During the quarter ended September 30, 2020, we determined that certain construction in progress projects would be reduced in scope or would no longer be completed as a result of capital cost containment measures due to the impact COVID-19 has had on our operations. This led to the impairment of $83.9 million of construction in progress assets previously reported in Property and equipment, net. These impairment charges were reported within Impairment and Credit Losses in our consolidated statements of comprehensive (loss) income. Notes Receivable We reviewed our notes receivable for credit losses in connection with the preparation of our financial statements. In evaluating the credit loss allowance, management considered factors such as historical loss experience, the types of loans and the amount of loans in the loan portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, peer group information and prevailing economic conditions. Based on these credit loss estimation factors, we recorded and subsequently wrote-off loan loss allowances of $72.8 million during the quarter ended March 31, 2020, primarily due to loans and other receivables related to Pullmantur Holdings. Refer to Note 6. Other Assets for further information regarding our investment in Pullmantur Holdings. During the quarters ended June 30, 2020 and September 30, 2020, we incurred credit losses of $91.6 million and $6.0 million, respectively, due to loss provisions recognized on notes receivable related to our previous sale of property and equipment and on receivables mostly related to Pullmantur Holdings. The following table summarizes our credit loss allowance related to receivables for the nine months ended September 30, 2020 (in thousands):
Our credit loss allowance balance as of September 30, 2020 primarily related to a $73.2 million loss provision recognized during the three months ended June 30, 2020 on notes receivable related to our previous sale of property and equipment. Equity Investments For an equity method investment that experiences a loss in fair value determined to be other than temporary, we will reduce our basis in the investment to fair value and record an impairment loss. Given the impact of the COVID-19 pandemic to our business, we evaluated whether our equity method investments were other than temporarily impaired. Based on our review of each of the investment's most recent financial results and projections, we determined that certain of our equity method investments, primarily Grand Bahama Shipyard Ltd. (“Grand Bahama”), were other than temporarily impaired, which resulted in an impairment charge of $39.7 million during the quarter ended March 31, 2020. For the quarters ended June 30, 2020, and September 30, 2020, we had no further indication of impairment to our equity investment balances. Refer to Note 6. Other Assets for information regarding our significant equity investments. During the three and nine months ended September 30, 2020, we recognized combined impairment and credit loss charges of $89.9 million and $1.4 billion, respectively. The impairment charges primarily related to our goodwill, trademarks and trade names, property and equipment, net and right-of-use assets and the credit losses related to our notes receivable were reported within Impairment and credit losses within our consolidated statements of comprehensive (loss) income. The impairment charge of $39.7 million related to our equity investments was reported within Equity investment (loss) income within our consolidated statements of comprehensive (loss) income during the quarter ended March 31, 2020 and nine months ended September 30, 2020. For further information on the measurements used to estimate the fair value of these assets, refer to Note 13. Fair Value Measurements and Derivative Instruments. These impairment assessments and the resulting charges were determined based on management’s current estimates and projections using information through the time of the issuance of these financial statements. The adverse impact COVID-19 will continue to have on our business, operating results, cash flows and overall financial condition is uncertain and may result in changes to the assumptions used in the impairment tests discussed above, which may result in additional impairments to our assets in the future.
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Revenues |
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Revenues | Revenues Revenue Recognition Revenues are measured based on consideration specified in our contracts with customers and are recognized as the related performance obligations are satisfied. The majority of our revenues are derived from passenger cruise contracts which are reported within Passenger ticket revenues in our consolidated statements of comprehensive (loss) income. Our performance obligation under these contracts is to provide a cruise vacation in exchange for the ticket price. We satisfy this performance obligation and recognize revenue over the duration of each cruise, which generally range from to 25 nights. Passenger ticket revenues include charges to our guests for port costs that vary with passenger head counts. These type of port costs, along with port costs that do not vary by passenger head counts, are included in our cruise operating expenses. There were no port costs charged to our guests or included within Passenger ticket revenues for the quarter ended September 30, 2020. The amounts of port costs charged to our guests and included within Passenger ticket revenues on a gross basis were $184.0 million for the quarter ended September 30, 2019, and $124.5 million and $509.6 million for the nine months ended September 30, 2020, and 2019, respectively. Our total revenues also include Onboard and other revenues, which consist primarily of revenues from the sale of goods and services onboard our ships that are not included in passenger ticket prices. We receive payment before or concurrently with the transfer of these goods and services to passengers during a cruise and recognize revenue at the time of transfer over the duration of the related cruise. Disaggregated Revenues The following table disaggregates our total revenues by geographic regions where we provide cruise itineraries (in thousands):
(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 6. Other Assets for more information on our unconsolidated affiliates. Passenger ticket revenues are attributed to geographic areas based on where the reservation originates. For the quarters and nine months ended September 30, 2020 and 2019, our guests were sourced from the following areas:
(1)No other individual country's revenue exceeded 10% for the quarters and nine months ended September 30, 2020 and 2019. Customer Deposits and Contract Liabilities Our payment terms generally require an upfront deposit to confirm a reservation, with the balance due prior to the cruise. Deposits received on sales of passenger cruises are initially recorded as Customer deposits in our consolidated balance sheets and subsequently recognized as passenger ticket revenues during the duration of the cruise. Additionally, refunds payable to guests who have elected cash refunds for cancelled sailings are recorded in Accounts Payable. ASC 606, Revenues from Contracts with Customers, defines a “contract liability” as an entity’s obligation to transfer goods or services to a customer for which the entity has received consideration from the customer. We do not consider customer deposits to be a contract liability until the customer no longer retains the unilateral right, resulting from the passage of time, to cancel such customer's reservation and receive a full refund. The current reduction in demand for cruising due to the COVID-19 pandemic has resulted in an unprecedented low level of advance bookings and the associated customer deposits received. At the same time, we experienced significant cancellations beginning in the second half of March 2020, which has led to issuance of refunds to customers, while other customers have been rebooked on future cruises or received credits in lieu of cash refunds. Onboard and other revenues for the quarter ended September 30, 2020 includes a charge of $67.9 million to correct cancellation revenue, for certain immaterial bookings, that was incorrectly recognized during the six months ended June 30, 2020. The charge is considered immaterial to our financial statements. As of September 30, 2020, refunds due to customers mostly as a result of booking cancellations were $189.2 million compared to $32.4 million as of September 30, 2019 and are included within Accounts payable in our consolidated balance sheets. Customer deposits also include deposits related to cancelled cruises prior to the election of a cash refund by guests. Due to the uncertainty around the return of demand for cruising, we are unable to estimate the amount of the September 30, 2020 customer deposits that will be recognized in earnings compared to amounts that will be refunded to customers or issued as a credit for future travel through the end of 2020. Customer deposits presented in our consolidated balance sheets include contract liabilities of $167.5 million and $1.7 billion as of September 30, 2020 and December 31, 2019, respectively. Contract Receivables and Contract Assets Although we generally require full payment from our customers prior to their cruise, we grant credit terms to a relatively small portion of our revenue sourced in select markets outside of the United States. As a result, we have outstanding receivables from passenger cruise contracts in those markets. We also have receivables from credit card processors for cruise ticket purchases and goods and services sold to guests during cruises that are collected before, during or shortly after the cruise voyage. In addition, we have receivables due from concessionaires onboard our vessels. These receivables are included within Trade and other receivables, net in our consolidated balance sheets. We have contract assets that are conditional rights to consideration for satisfying the construction services performance obligations under a service concession arrangement. As of September 30, 2020 and December 31, 2019, our contract assets were $53.7 million and $55.5 million, respectively, and were included within Other assets in our consolidated balance sheets. Given the short duration of our cruises and our collection terms, we do not have any other significant contract assets. Assets Recognized from the Costs to Obtain a Contract with a Customer Prepaid travel agent commissions are an incremental cost of obtaining contracts with customers that we recognize as an asset and include within Prepaid expenses and other assets in our consolidated balance sheets. Prepaid travel agent commissions were $7.9 million and $163.2 million as of September 30, 2020 and December 31, 2019, respectively. Our prepaid travel agent commissions at December 31, 2019 were expensed and reported primarily within Other operating in our consolidated statements of comprehensive income (loss) during the nine months ended September 30, 2020.
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(Loss) Earnings Per Share | (Loss) Earnings Per Share A reconciliation between basic and diluted (loss) earnings per share is as follows (in thousands, except per share data):
There were approximately 192,981 and 265,606 antidilutive shares for the quarter and nine month ended September 30, 2020, respectively. There were no antidilutive shares for the quarter and nine month ended September 30, 2019. Since the Company expects to settle in cash the principal outstanding under the 4.25% convertible notes that mature in 2023, we currently use the treasury stock method when calculating their potential dilutive effect, if any. While no shares of the convertible notes are currently convertible, they would be anti-dilutive for the three and nine months ended September 30, 2020.
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Other Assets | Other Assets A Variable Interest Entity (“VIE”) is an entity in which the equity investors have not provided enough equity to finance the entity’s activities or the equity investors: (1) cannot directly or indirectly make decisions about the entity’s activities through their voting rights or similar rights; (2) do not have the obligation to absorb the expected losses of the entity; (3) do not have the right to receive the expected residual returns of the entity; or (4) have voting rights that are not proportionate to their economic interests and the entity’s activities involve or are conducted on behalf of an investor with a disproportionately small voting interest. We have determined that TUI Cruises GmbH ("TUIC"), our 50%-owned joint venture, which operates the brands TUI Cruises and Hapag-Lloyd Cruises, is a VIE. We have determined that we are not the primary beneficiary of TUIC. We believe that the power to direct the activities that most significantly impact TUIC’s economic performance are shared between ourselves and TUI AG, our joint venture partner. All the significant operating and financial decisions of TUIC require the consent of both parties, which we believe creates shared power over TUIC. Accordingly, we do not consolidate this entity and account for this investment under the equity method of accounting. On June 30, 2020, TUIC acquired Hapag-Lloyd Cruises, a luxury and expedition brand for German-speaking guests, from TUI AG for approximately €1.2 billion, or approximately $1.3 billion. Hapag-Lloyd Cruises operates two luxury liners and two smaller expedition ships. We and TUI AG each made an equity contribution of €75.0 million, or approximately $84.2 million, to TUIC to fund a portion of the purchase price, the remainder of which was financed by third-party financing. As of September 30, 2020, the net book value of our investment in TUIC was $617.8 million, primarily consisting of $467.4 million in equity and a loan of €122.9 million, or approximately $144.1 million based on the exchange rate at September 30, 2020. As of December 31, 2019, the net book value of our investment in TUIC was $598.1 million, primarily consisting of $443.1 million in equity and a loan of €133.2 million, or approximately $149.5 million based on the exchange rate at December 31, 2019. The loan, which was made in connection with the sale of Splendour of the Seas in April 2016, accrues interest at a rate of 6.25% per annum and is payable over 10 years. This loan is 50% guaranteed by TUI AG and is secured by a first priority mortgage on the ship. The majority of these amounts were included within Other assets in our consolidated balance sheets. TUIC has various ship construction and financing agreements which include certain restrictions on each of our and TUI AG’s ability to reduce our current ownership interest in TUIC below 37.55% through May 2033. Our investment amount and outstanding term loan are substantially our maximum exposure to loss in connection with our investment in TUIC. We determined that Pullmantur Holdings, in which we have a 49% noncontrolling interest and Springwater Capital LLC has a 51% interest, is a VIE for which we are not the primary beneficiary as we do not have the power to direct the activities that most significantly impact the entity's economic performance. On June 22, 2020, Pullmantur S.A., a subsidiary of Pullmantur Holdings, filed for reorganization under the terms of the Spanish insolvency laws at the direction of its Board as a result of the adverse impact of the COVID-19 pandemic on the company's operations and liquidity. Subsequently, Pullmantur Holdings and certain of its other subsidiaries filed for reorganization in Spain. We suspended the equity method of accounting for Pullmantur Holdings during the second quarter of 2020 as we do not intend to fund the entity's future losses and lost our ability to exert significant influence over the entity's activities as a result of the reorganization process. In connection with the reorganization, we terminated the agreements chartering three of our ships to Pullmantur Holdings and sold the ships to third parties during the quarter ended September 30, 2020 for amounts approximating their carrying values. Refer to Note 3. Impairment and Credit Losses for further discussion on the impact of the ships' sale on our consolidated financial statements. In addition, we recognized a loss of $69.0 million during the quarter ended June 30, 2020, representing deferred currency translation adjustment losses, net of hedging, as we no longer have significant involvement in the Pullmantur operation. This loss was recognized within Other expense in our consolidated statements of comprehensive (loss) income for the quarter ended June 30, 2020. During the quarter ended June 30, 2020, we entered into an agreement with Springwater Capital LLC to settle the guarantees previously issued by them and for costs that we incurred as a result of Pullmantur S.A.'s reorganization. As part of this settlement, we agreed to provide Pullmantur guests the option to apply their paid deposits toward a Royal Caribbean International or Celebrity Cruises sailing, or request a cash refund. An amount of $21.6 million, approximating the estimated total cash refund expected to be paid to Pullmantur guests and other expenses incurred as part of the reorganization, was recorded in Other expense in our consolidated statements of comprehensive (loss) income for the quarter ended June 30, 2020. We had previously provided a non-revolving working capital facility to a Pullmantur Holdings subsidiary in the amount of up to €15.0 million or approximately $17.6 million based on the exchange rate at September 30, 2020. Proceeds of the facility, which were available to be drawn through December 2018 accrued interest at an interest rate of 6.5% per annum and were payable through 2022. During the quarter ended March 31, 2020, we recorded and subsequently wrote-off loan loss allowances on the facility receivable balance of $12.5 million. As of December 31, 2019, €11.0 million, or approximately $12.3 million, based on the exchange rate at December 31, 2019, was outstanding under this facility. During the quarters ended June 30, 2020 and September 30, 2020, we funded Pullmantur $18.3 million and $1.9 million, respectively, for operational purposes during its reorganization for which we recorded and subsequently wrote-off loss allowances. As of September 30, 2020, we did not have any exposure to credit loss in Pullmantur Holdings. Refer to Note 3. Impairment and Credit Losses for further information on our credit loss evaluation of Pullmantur related receivables as of September 30, 2020. As of December 31, 2019, our maximum exposure to loss in Pullmantur Holdings was $49.7 million, consisting of loans and other receivables. These amounts were included within Trade and other receivables, net and Other assets in our consolidated balance sheets. We have determined that Grand Bahama, a ship repair and maintenance facility in which we have a 40% noncontrolling interest, is a VIE. This facility serves cruise and cargo ships, oil and gas tankers and offshore units. We utilize this facility, among other ship repair facilities, for our regularly scheduled drydocks and certain emergency repairs as may be required. During the nine months ended September 30, 2020, we made payments of $0.2 million to Grand Bahama for ship repair and maintenance services. We made payments of $0.4 million and $45.5 million during the quarter and nine months ended September 30, 2019, respectively. We have determined that we are not the primary beneficiary of this facility as we do not have the power to direct the activities that most significantly impact the facility’s economic performance. Accordingly, we do not consolidate this entity. During the quarter ended March 31, 2020, we performed an impairment evaluation on our investment in Grand Bahama. As a result of the evaluation, we did not deem our investment balance to be recoverable and recorded an impairment charge of $30.1 million. Refer to Note 3. Impairment and Credit Losses for further information regarding the impairment evaluation. As a result of the impairment charge that reduced our Grand Bahama investment balance to zero, we are currently recognizing our share of equity method losses against the carrying value of our loans receivable from Grand Bahama. As of September 30, 2020, we had exposure to credit loss in Grand Bahama consisting of $21.1 million in loans. Our loans to Grand Bahama mature between December 2020 and March 2026 and bear interest at LIBOR plus 2.00% to 3.75%, capped at 5.75% for the majority of the outstanding loan balance. Interest payable on the loans is due on a semi-annual basis. We did not receive principal and interest payments through the nine months ended September 30, 2020. During the quarter and nine months ended September 30, 2019, we received principal and interest payments of $7.6 million and $14.2 million, respectively. The loan balances are included within Trade and other receivables, net and Other assets in our consolidated balance sheets. We monitor credit risk associated with the loans through our participation on Grand Bahama’s board of directors along with our review of Grand Bahama’s financial statements and projected cash flows. Effective April 1, 2020, we placed the loans in non-accrual status based on our review of Grand Bahama's projected cash flows which have been adversely affected by impacts to their operations caused by the 2019 crane accident related to Oasis of the Seas, Hurricane Dorian and most recently, COVID-19. During the nine months ended September 30, 2020, no credit losses were recorded related to these loans. As of December 31, 2019, the net book value of our investment in Grand Bahama was $47.9 million, consisting of $27.0 million in equity and loans of $20.9 million. These amounts represented our maximum exposure to loss related to our investment in Grand Bahama. The following tables set forth information regarding our investments accounted for under the equity method of accounting, including the entities discussed above (in thousands):
(1)There were no dividends received from TUIC for the quarter and nine months ended September 30, 2020. For the quarter ended September 30, 2019, the amount includes dividends from TUIC of €80.0 million, or approximately $88.5 million, based on exchange rate at the time of the transaction. For the nine months ended September 30, 2019, amounts include dividends from TUIC of €170 million or approximately $190.3 million based on the exchange rates at the time of the transactions. The amounts included in the table above are net of tax withholding.
(1)Included within Trade and other receivables, net in our consolidated balance sheets. (2)Included within Other assets in our consolidated balance sheets. We also provide ship management services to TUIC and bareboat chartered three vessels to Pullmantur Holdings, prior to it filing for reorganization. We recorded the following as it relates to these services in our operating results within our consolidated statements of comprehensive income (loss) (in thousands):
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt Debt consist of the following (in thousands):
(1) Interest rates based on outstanding loan balance as of September 30, 2020 and, for variable rate debt, include either LIBOR or EURIBOR plus the applicable margin. (2) Includes $1.9 billion facility due in 2024 and $1.5 billion facility due in 2022, each of which accrue interest at LIBOR plus 1.30%, which interest rate was 1.53% as of September 30, 2020 and each is subject to a facility fee of 0.20%. (3) At September 30, 2020 and December 31, 2019, the weighted average interest rate for total debt was 6.00% and 3.99%, respectively. In March 2020, we increased the capacity of our $1.7 billion and $1.2 billion unsecured revolving credit facilities due in 2024 and 2022, by $200 million and $400 million, respectively, utilizing their respective accordion features. As of September 30, 2020, our aggregate revolving borrowing capacity was $3.4 billion and was fully utilized through a combination of amounts drawn and letters of credit issued under the facilities. In March 2020, we took delivery of Celebrity Apex. To finance the purchase, we borrowed $722.2 million under a previously committed unsecured term loan which is 100% guaranteed by BpiFrance Assurance Export, the official export credit agency of France. The loan amortizes semi-annually over 12 years and bears interest at a fixed rate of 3.23% per annum. In March 2020, we borrowed $2.2 billion pursuant to a 364-day senior secured term loan agreement (the "Secured Term Loan"). In May 2020, the Secured Term Loan was increased by an additional $150 million through the exercise of the accordion feature. The increased Secured Term Loan balance was repaid with proceeds from the $3.32 billion senior secured notes (as described below) issued in May 2020 and discussed below. The Senior Secured Term Loan would have matured 364 days after funding and maturity could have been extended at our option for an additional 364 days subject to customary conditions, including the payment of a 1.00% extension fee. Interest accrued at LIBOR plus a margin of 2.25% which would have increased to 2.50% and 2.75% at 180 days and 365 days, respectively, after funding. We would have also been required to pay a duration fee in an amount equal to 0.25% of the aggregate loan principal amount every 60 days. Additionally, two of our board members each purchased a participation interest equal to $100 million. The repayment of this Secured Term Loan in May 2020 resulted in a total loss on the extinguishment of debt of $41.1 million, which was recognized within Interest expense, net of interest capitalized within our consolidated statements of comprehensive income (loss) during the nine months ended September 30, 2020. In May 2020, we issued $3.32 billion in senior secured notes, less original issue discount (the "Senior Secured Notes"). We repaid the $2.35 billion, 364-day Secured Term Loan in its entirety with a portion of the proceeds of the Senior Secured Notes. $1.0 billion of the notes accrue interest at 10.875% and mature in 2023. The remaining $2.32 billion of the Senior Secured Notes accrue interest at a fixed rate of 11.5% and mature in 2025 (the "2025 Secured Notes"). The Senior Secured Notes are fully and unconditionally guaranteed by Celebrity Cruises Holdings Inc., Celebrity Cruises Inc., and certain of our wholly-owned vessel-owning subsidiaries. $1.66 billion of the obligations under the Senior Secured Notes and the related guarantees are secured by first priority security interests in the collateral (which generally includes certain of our material intellectual property, a pledge of 100% of the equity interests of certain of our vessel-owning subsidiaries and mortgages on the 28 vessels owned by such subsidiaries, subject to permitted liens and certain exclusions and release provisions), subject to certain adjustments after the date of issuance based on our debt rating as of the date of issuance and our lien basket amount in certain of our credit facilities. Prior to June 1, 2022, we may, at our option, redeem some or all of the 2025 Secured Notes at 100% of the principal amount plus accrued and unpaid interest plus the applicable “make-whole premium” described in the indenture relating to the Senior Secured Notes (the "Senior Secured Notes Indenture"). On or after June 1, 2022, we may, at our option, redeem some or all of the 2025 Secured Notes at the applicable redemption prices set forth in the Secured Notes Indenture. In June 2020, we issued $1.0 billion in senior unsecured notes which accrue interest at 9.125% and mature in 2023. The notes are fully and unconditionally guaranteed by RCI Holdings LLC, which owns 100% of the equity interests in certain of our wholly-owned vessel-owning subsidiaries. In June 2020, we issued $1.15 billion aggregate principal amount of convertible notes which accrue interest at 4.25% and mature in 2023. The notes are convertible into shares of common stock of the Company, cash, or a combination of common stock and cash, at the election of the Company. The initial conversion rate per $1,000 principal amount of the convertible notes is 13.8672 shares of our common stock, which is equivalent to an initial conversion price of approximately $72.11 per share, subject to adjustment in certain circumstances. Prior to March 15, 2023, the convertible notes will be convertible at the option of holders during certain periods, and only under the following conditions: •during any calendar quarter after September 30, 2020, if the last reported sale price per share of our common stock for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; •if, prior to March 15, 2023, the trading price per $1,000 principal amount of notes is less than 98% of the product of the last reported sale price per share of our common stock and the conversation rate for ten consecutive trading days (in which case the notes are convertible at any time during the five business day period following the 10 consecutive trading day period); •if we call the notes for a tax redemption; or •upon the occurrence of specified corporate events. On or after March 15, 2023, the convertible notes will be convertible at any time until the close of business on the second scheduled trading day immediately preceding their maturity date. Holders of the convertible notes may require the Company, upon the occurrence of certain events that constitute a fundamental change under the indenture, to offer to repurchase the convertible notes at a repurchase price equal to 100% of the principal amount thereof, plus accrued and unpaid interest. We allocated $907.9 million of the convertible notes' proceeds, net of debt issue costs, to Long-term debt and $209.0 million to Paid-in-capital on our Consolidated Balance Sheet. The amount allocated to Long-term debt represents the difference between the $1.15 billion aggregate principal amount of the convertible notes and the amount of the proceeds allocated to the debt component as a debt discount. The fair value of the convertible notes' debt component was determined utilizing a present value calculation. We recognized the equity component by ascribing the difference between the proceeds and the fair value of the debt component to Paid-in-capital and the corresponding debt discount will be amortized to interest expense over the term of the convertible notes using the straight-line method, which approximates the effective interest method. Debt issuance costs on the convertible notes were allocated to the debt and equity components in proportion to the allocation of proceeds to those components. We incurred total debt issue costs of $33.1 million on the issuance of the debt and allocated $6.2 million to Paid-in-capital. Debt issuance costs attributable to debt will be amortized to interest expense over the term of the convertible notes. The net carrying value of the liability component of the convertible notes was as follows:
The interest expense recognized related to the convertible notes was as follows:
In June 2020, RCL Cruises Ltd., our subsidiary that operates and manages our business in the United Kingdom, established a commercial paper facility for the purpose of issuing short-term, unsecured Sterling-denominated notes that are eligible for purchase under the Joint HM Treasury and Bank of England’s COVID Corporate Financing Facility commercial paper program (the “Program”) in an aggregate principal amount up to £300.0 million. The maturities of the commercial paper notes can vary by note, but cannot exceed 364 days from the date of issuance. As of September 30, 2020, we had £300.0 million, or approximately $387.9 million, based on the exchange rate at September 30, 2020, of commercial paper notes outstanding under this program. As of December 31, 2019, we had $1.4 billion of commercial paper notes outstanding under our US commercial paper program established on June 14, 2018. We terminated this commercial paper program as of August 5, 2020. In August 2020, we secured a binding commitment from Morgan Stanley Senior Funding Inc. for a $700 million term loan facility. We may draw on the facility at any time prior to August 12, 2021. Once drawn, the loan will bear interest at LIBOR + 3.75% and will mature 364 days from funding. The facility will be guaranteed by RCI Holdings, LLC, our wholly owned subsidiary that owns the equity interests in subsidiaries that own seven of our vessels. We have the ability to increase the capacity of the facility by an additional $300 million from time to time subject to the receipt of additional or increased commitments and the issuance of guarantees from additional subsidiaries. In October 2020, we issued $575 million aggregate principal amount of senior convertible notes which accrue interest at 2.875% and mature in 2023. The notes are convertible into shares of common stock of the Company, cash, or a combination of common stock and cash, at the election of the Company. The initial conversion rate per $1,000 principal amount of the convertible notes is 12.1212 shares of our common stock, which is equivalent to an initial conversion price of approximately $82.50 per share, subject to adjustment in certain circumstances. Prior to August 15, 2023, the convertible notes will be convertible at the option of holders during certain periods, and only under the following conditions: •during any calendar quarter after December 31, 2020, if the last reported sale price per share of our common stock for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; •if, prior to August 15, 2023, the trading price per $1,000 principal amount of notes is less than 98% of the product of the last reported sale price per share of our common stock and the conversation rate for ten consecutive trading days (in which case the notes are convertible at any time during the five business day period following the 10 consecutive trading day period); •if we call the notes for a tax redemption; or •upon the occurrence of specified corporate events. On or after August 15, 2023, the convertible notes will be convertible at any time until the close of business on the second scheduled trading day immediately preceding their maturity date. Holders of the convertible notes may require the Company, upon the occurrence of certain events that constitute a fundamental change under the indenture, to offer to repurchase the convertible notes at a repurchase price equal to 100% of the principal amount thereof, plus accrued and unpaid interest. We expect to use a portion of the net proceeds from the offering to repay the 2.650% Senior Notes due November 2020, with the remainder to be used for general corporate purposes. In October 2020, we took delivery of Silver Moon. To finance the purchase, we borrowed $300 million under a previously committed unsecured term loan facility, guaranteed by us, to pay a portion of the ship's contract price. The loan is due and payable at maturity in June 2028, provided however, that each lender may elect to cause us to repay the outstanding amount of any advances held by such lender on June 2026 upon 90 days advance notice. The loan amortizes semi-annually starting six months after funding, with 1/24th of the outstanding principal payable every six months and the balance payable upon maturity. Interest on the loan accrues at LIBOR plus 1.50%. During the quarters ended June 30, 2020 and September 30, 2020, we amended certain export-credit backed ship debt facilities to benefit from a 12-month debt amortization deferral (the "Debt Deferral"). Under the Debt Deferral, deferred debt amortization of approximately $0.9 billion will be paid over a period of four years after the 12-month deferral period. The Debt Deferral was offered by certain export credit agencies as a result of the current impact to cruise-line borrowers as a result of COVID-19. Except for the financings incurred to acquire Celebrity Flora, Azamara Pursuit and Silver Moon, all of our unsecured ship financing term loans are guaranteed by the export credit agency in the respective country in which the ship is constructed. As of September 30, 2020, in consideration for these guarantees, depending on the financing arrangement, we pay to the applicable export credit agency (1) a fee of 2.97% per annum based on the outstanding loan balance semi-annually over the term of the loan (subject to adjustments based upon our credit ratings) or (2) an upfront fee of 2.35% to 2.37% of the maximum loan amount. We amortize the fees that are paid upfront over the life of the loan and those that are paid semi-annually over each respective payment period. Prior to the loan being drawn, we present these fees within Other assets in our consolidated balance sheets. Once the loan is drawn, such fees are classified as a discount to the related loan, or contra-liability account, within Current portion of debt or long-term debt. In our consolidated statements of cash flows, we classify these fees within Amortization of debt issuance costs. Both our export credit facilities and our non-export credit facilities totaling an outstanding principal amount of approximately $11.0 billion as of September 30, 2020 contain covenants that, among other things, require us to maintain financial ratios, including in certain cases, a fixed charge coverage ratio of at least 1.25x and/or minimum shareholders' equity and limit our net debt-to-capital ratio. During the quarter ended June 30, 2020, we amended all of our export credit facilities, all of our non-export credit facilities and certain of our credit card processing agreements which contain financial covenants to suspend the testing of these covenants through and including the first quarter of 2021. During the quarter ended September 30, 2020, we further amended each of these agreements, with the exception of a $130.0 million term loan due 2023, to extend the financial covenant waiver through and including the fourth quarter of 2021. The $130.0 million term loan, which remains subject to a covenant waiver through the end of the first quarter of 2021, is prepayable at any time without penalty. Certain of these amendments impose a new monthly-tested minimum liquidity covenant. The minimum liquidity requirement was $500.0 million as of September 30, 2020; however, this amount was subsequently reduced to $350.0 million upon completion of our capital raising activities in October. As of September 30, 2020 and the date of these financial statements, we were in compliance with the applicable minimum liquidity covenant. Pursuant to these amendments, we also agreed that we will not pay cash dividends or effectuate share repurchases during the waiver period unless we are in compliance with the fixed charge coverage covenant as of the end of the most recently completed quarter. For information related to the covenants in our Port of Miami Terminal "A" operating lease agreement, refer to Note 8. Leases. Under certain of our agreements, the contractual interest rate, facility fee and/or export credit agency fee vary with our debt rating. On August 24, 2020, Moody’s downgraded our senior unsecured rating from Ba2 to B2, and on August 31, 2020, S&P Global downgraded our senior unsecured rating from BB to B+. The following is a schedule of annual maturities on our total debt net of debt issuance costs, and including finance leases and commercial paper, as of September 30, 2020 for each of the next five years (in thousands):
Finance Leases Silversea Cruises operates the Silver Whisper, under a finance lease. The finance lease for the Silver Whisper will expire in 2022, subject to an option to purchase the ship. The total aggregate amount of the finance lease liabilities recorded for this ship was $31.5 million and $55.6 million at September 30, 2020 and December 31, 2019, respectively. The lease payments on the Silver Whisper are subject to adjustments based on the LIBOR rate.
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases Our operating leases primarily relate to preferred berthing arrangements, real estate and shipboard equipment and are included within Operating lease right-of-use assets, and Long-term operating lease liabilities with the current portion of the liability included within Current portion of operating lease liabilities in our consolidated balance sheets as of September 30, 2020 and December 31, 2019. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet. We recognize lease expense for these leases on a straight-line basis over the lease term. During the three months ended March 31, 2020, we determined that the lease for Silver Explorer, operated by Silversea Cruises and previously classified as a finance lease, is an operating lease based on modification of the terms of the lease during the quarter. Due to the three-month reporting lag for Silversea Cruises, the reclassification of the lease to an operating lease was reflected in our Consolidated Balance Sheet as of June 30, 2020. The operating lease for Silver Explorer will expire in 2023. During the first quarter ended March 31, 2020, we identified that the undiscounted cash flows of certain right-of-use assets, were less than their carrying values. Events surrounding the COVID-19 pandemic negatively impacted the expected undiscounted cash flows of these assets. As a result of this determination, we evaluated these assets pursuant to our long-lived asset impairment test, which resulted in an impairment charge of $45.9 million to write down these right-of-use assets to their estimated fair values during the quarter ended March 31, 2020. Due to the continuing effect of COVID-19, we updated our analysis during the second quarter ended June 30, 2020, which resulted in an impairment of the Silver Explorer right-of-use asset of $13.3 million to write down the asset to its estimated fair value as of June 30, 2020. For the quarter ended September 30, 2020, we had no further indication of impairment to the carrying amount of our right of use assets. Our finance leases include Silver Whisper, operated by Silversea Cruises, and are included 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. The finance lease for Silver Whisper will expire in 2022, subject to an option to purchase the ship. For some of our real estate leases and berthing agreements, we do have the option to extend our current lease term. For those lease agreements with renewal options, the renewal periods for real estate leases range from to 10 years and the renewal periods for berthing agreements range from to 20 years. Generally, we do not include renewal options as a component of our present value calculation for berthing agreements. However, for certain real estate leases, we include them. We have a residual value guarantee associated with our Port of Miami Terminal "A" operating lease agreement ("Port of Miami terminal lease") that approximates a percentage of the cost of the asset as of the inception of the lease. We consider the possibility of incurring costs associated with the residual value guarantee to be remote. Also in connection with the Port of Miami terminal lease, we are required to deliver on or before July 18, 2021, cash collateral in an amount equal to the lesser of our residual value guarantee or the aggregate balance of the lenders' terminal construction debt, estimated at $181.1 million as of September 30, 2020. The collateral is to be returned when all amounts due by us under the lease have been paid in full. During the quarter ended June 30, 2020, we amended our Port of Miami terminal lease to increase the lien basket in line with our debt facilities and obtain a financial covenant waiver to the first quarter of 2021. This obligation is prepayable at any time without penalty. As of September 30, 2020, we were in compliance with the amended covenants under the lease agreement. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate in determining the present value of lease payments. We estimate our incremental borrowing rates based on LIBOR and U.S. Treasury note rates corresponding to lease terms increased by the Company’s credit risk spread and reduced by the estimated impact of collateral. In addition, we have lease agreements with lease and non-lease components, which are generally accounted for separately. However, for berthing agreements, we account for the lease and non-lease components as a single lease component. Commencing in 2016 when we sold our 51% interest in the Pullmantur brand to Pullmantur Holdings, and continuing through the quarter ended June 30, 2020, we bareboat chartered to Pullmantur Holdings the vessels operated by the Pullmantur brand. On June 22, 2020, Pullmantur S.A., a subsidiary of Pullmantur Holdings, filed for reorganization in Spain, at which time we terminated these bareboat charters. See Note 6. Other Assets for further discussion of Pullmantur. We accounted for the bareboat charters of these vessels as operating leases for which we were the lessor. The components of lease expense were as follows (in thousands):
In addition, certain of our berthing agreements include variable lease costs based on the number of passengers berthed. During the nine months ended September 30, 2020, we had $25.6 million of variable lease costs recorded within Commission, transportation and other in our consolidated statement of comprehensive income (loss). For the quarter ended September 30, 2020 there were no variable lease costs as a result of the ongoing suspension of our cruise operations. During the quarter and nine months ended September 30, 2019, we had $17.3 million and $73.1 million, respectively, of variable lease costs recorded within Commission, transportation and other in our consolidated statement of comprehensive income (loss). Weighted average of the remaining lease terms and weighted average discount rates are as follows:
Supplemental cash flow information related to leases is as follows (in thousands):
As of September 30, 2020, maturities related to lease liabilities were as follows (in thousands):
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Leases | Leases Our operating leases primarily relate to preferred berthing arrangements, real estate and shipboard equipment and are included within Operating lease right-of-use assets, and Long-term operating lease liabilities with the current portion of the liability included within Current portion of operating lease liabilities in our consolidated balance sheets as of September 30, 2020 and December 31, 2019. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet. We recognize lease expense for these leases on a straight-line basis over the lease term. During the three months ended March 31, 2020, we determined that the lease for Silver Explorer, operated by Silversea Cruises and previously classified as a finance lease, is an operating lease based on modification of the terms of the lease during the quarter. Due to the three-month reporting lag for Silversea Cruises, the reclassification of the lease to an operating lease was reflected in our Consolidated Balance Sheet as of June 30, 2020. The operating lease for Silver Explorer will expire in 2023. During the first quarter ended March 31, 2020, we identified that the undiscounted cash flows of certain right-of-use assets, were less than their carrying values. Events surrounding the COVID-19 pandemic negatively impacted the expected undiscounted cash flows of these assets. As a result of this determination, we evaluated these assets pursuant to our long-lived asset impairment test, which resulted in an impairment charge of $45.9 million to write down these right-of-use assets to their estimated fair values during the quarter ended March 31, 2020. Due to the continuing effect of COVID-19, we updated our analysis during the second quarter ended June 30, 2020, which resulted in an impairment of the Silver Explorer right-of-use asset of $13.3 million to write down the asset to its estimated fair value as of June 30, 2020. For the quarter ended September 30, 2020, we had no further indication of impairment to the carrying amount of our right of use assets. Our finance leases include Silver Whisper, operated by Silversea Cruises, and are included 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. The finance lease for Silver Whisper will expire in 2022, subject to an option to purchase the ship. For some of our real estate leases and berthing agreements, we do have the option to extend our current lease term. For those lease agreements with renewal options, the renewal periods for real estate leases range from to 10 years and the renewal periods for berthing agreements range from to 20 years. Generally, we do not include renewal options as a component of our present value calculation for berthing agreements. However, for certain real estate leases, we include them. We have a residual value guarantee associated with our Port of Miami Terminal "A" operating lease agreement ("Port of Miami terminal lease") that approximates a percentage of the cost of the asset as of the inception of the lease. We consider the possibility of incurring costs associated with the residual value guarantee to be remote. Also in connection with the Port of Miami terminal lease, we are required to deliver on or before July 18, 2021, cash collateral in an amount equal to the lesser of our residual value guarantee or the aggregate balance of the lenders' terminal construction debt, estimated at $181.1 million as of September 30, 2020. The collateral is to be returned when all amounts due by us under the lease have been paid in full. During the quarter ended June 30, 2020, we amended our Port of Miami terminal lease to increase the lien basket in line with our debt facilities and obtain a financial covenant waiver to the first quarter of 2021. This obligation is prepayable at any time without penalty. As of September 30, 2020, we were in compliance with the amended covenants under the lease agreement. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate in determining the present value of lease payments. We estimate our incremental borrowing rates based on LIBOR and U.S. Treasury note rates corresponding to lease terms increased by the Company’s credit risk spread and reduced by the estimated impact of collateral. In addition, we have lease agreements with lease and non-lease components, which are generally accounted for separately. However, for berthing agreements, we account for the lease and non-lease components as a single lease component. Commencing in 2016 when we sold our 51% interest in the Pullmantur brand to Pullmantur Holdings, and continuing through the quarter ended June 30, 2020, we bareboat chartered to Pullmantur Holdings the vessels operated by the Pullmantur brand. On June 22, 2020, Pullmantur S.A., a subsidiary of Pullmantur Holdings, filed for reorganization in Spain, at which time we terminated these bareboat charters. See Note 6. Other Assets for further discussion of Pullmantur. We accounted for the bareboat charters of these vessels as operating leases for which we were the lessor. The components of lease expense were as follows (in thousands):
In addition, certain of our berthing agreements include variable lease costs based on the number of passengers berthed. During the nine months ended September 30, 2020, we had $25.6 million of variable lease costs recorded within Commission, transportation and other in our consolidated statement of comprehensive income (loss). For the quarter ended September 30, 2020 there were no variable lease costs as a result of the ongoing suspension of our cruise operations. During the quarter and nine months ended September 30, 2019, we had $17.3 million and $73.1 million, respectively, of variable lease costs recorded within Commission, transportation and other in our consolidated statement of comprehensive income (loss). Weighted average of the remaining lease terms and weighted average discount rates are as follows:
Supplemental cash flow information related to leases is as follows (in thousands):
As of September 30, 2020, maturities related to lease liabilities were as follows (in thousands):
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Redeemable Noncontrolling Interest | Redeemable Noncontrolling Interest In connection with the 2018 Silversea Cruises acquisition, we recorded redeemable noncontrolling interest due to the put options held by the noncontrolling interest shareholder. At the date of the 2018 Silversea Cruises acquisition, the estimated fair value of the noncontrolling interest was based on 33.3% of Silversea Cruises' equity value, which was determined based on the transaction price paid for 66.7% of Silversea Cruises in the 2018 Silversea Cruises acquisition. On July 9, 2020, we acquired the 33.3% noncontrolling interest in Silversea Cruises from Heritage in exchange for 5.2 million shares of common stock, par value $0.01 per share, of Royal Caribbean Cruises Ltd. Pursuant to the agreement governing the acquisition of the noncontrolling interest, among other things, the parties terminated any existing obligation to issue Heritage any contingent consideration, at fair value, in connection with our acquisition of a 66.7% interest in Silversea Cruises in 2018. The purchase of the noncontrolling interest was accounted for as an equity transaction during the quarter ended September 30, 2020 and no gain or loss was recognized in earnings. The carrying amount of the noncontrolling interest was adjusted to zero and the difference between the carrying amount of the noncontrolling interest and the fair value of the consideration paid was recognized in additional paid in capital. The noncontrolling interest's share in the net earnings (loss) and contractual accretion requirements associated with the put options, for periods prior to our acquisition of the noncontrolling interest, are included in Net income attributable to noncontrolling interest in our consolidated statements of comprehensive income (loss). As of December 31, 2019, the noncontrolling interest shareholder's interest is presented as Redeemable noncontrolling interest and is classified outside of shareholders' equity in our consolidated balance sheets. The following table presents changes in the noncontrolling interest for the quarters and nine months ended September 30, 2020 and September 30, 2019 (in thousands):
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Commitments and Contingencies |
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Commitments and Contingencies | Commitments and Contingencies Ship Purchase Obligations Our future capital commitments consist primarily of new ship orders. As of September 30, 2020, we had one Quantum-class ship, two Oasis-class ships and three ships of a new generation, known as our Icon-class, on order for our Royal Caribbean International brand with an aggregate capacity of approximately 32,400 berths. As of September 30, 2020, we had two Edge-class ships on order for our Celebrity Cruises brand with an aggregate capacity of approximately 6,500 berths. Additionally, as of September 30, 2020, we have four ships on order for our Silversea Cruises brand with an aggregate capacity of approximately 2,300 berths. In September 2019, Silversea Cruises entered into two credit agreements, guaranteed by us, for the unsecured financing of the first and second Evolution-class ships for an amount of up to 80% of each ship's contract price through facilities to be guaranteed 95% by Euler Hermes, the official export credit agency of Germany. The maximum loan amount under each facility is not to exceed the United States dollar equivalent of €351.6 million in the case of the first Evolution-class ship and €359.0 million in the case of the second Evolution-class ship, or approximately $412.3 million and $421.0 million, respectively, based on the exchange rate at September 30, 2020. Each loan, once funded, will amortize semi-annually and will mature 12 years following the delivery of each ship. At our election, interest on each loan will accrue either (1) at a fixed rate of 4.14% and 4.18%, respectively (inclusive of the applicable margin) or (2) at a floating rate equal to LIBOR plus 0.79% and 0.83%, respectively. The first and second Evolution-class ships will each have a capacity of approximately 600 berths. In December 2019, we entered into a credit agreement for the unsecured financing of the sixth Oasis-class ship for up to 80% of the ship’s contract price through a facility to be guaranteed 100% by BpiFrance Assurance Export, the official export credit agency of France. Under the financing arrangement, we have the right, but not the obligation, to satisfy the obligations to be incurred upon delivery and acceptance of the ship under the shipbuilding contract by assuming, at delivery and acceptance, the debt indirectly incurred by the shipbuilder during the construction of the ship. The maximum loan amount under the facility is not to exceed the United States dollar equivalent of €1.3 billion, or approximately $1.5 billion based on the exchange rate at September 30, 2020. The loan will amortize semi-annually and will mature 12 years following delivery of the ship. Interest on the loan will accrue at a fixed rate of 3.00% (inclusive of margin). The sixth Oasis-class ship will have a capacity of approximately 5,700 berths. In December 2019, we entered into a credit agreement for the unsecured financing of the third Icon-class ship for up to 80% of the ship’s contract price. Finnvera plc, the official export credit agency of Finland, has agreed to guarantee 95% of the substantial majority of the financing, with a smaller portion of the financing to be 95% guaranteed by Euler Hermes, the official German export credit agency. The maximum loan amount under the facility is not to exceed the United States dollar equivalent of €1.4 billion, or approximately $1.6 billion based on the exchange rate at September 30, 2020. The loan, once funded, will amortize semi-annually and will mature 12 years following the delivery of the ship. Approximately 60% of the loan will accrue interest at a fixed rate of 3.29%. The balance of the loan will accrue interest at a floating rate of LIBOR plus 0.85%. The third Icon-class ship will have a capacity of approximately 5,600 berths. Our future capital commitments consist primarily of new ship orders. As of September 30, 2020, our Global Brands and Partner Brands have the following ships on order. COVID-19 has impacted shipyard operations which have and will result in delays of our previously contracted ship deliveries as noted below. Of the six ships originally scheduled for delivery between July 2020 and December 2021, Silver Moon was delivered in October 2020 and we expect that Silver Dawn and Odyssey of the Seas will be delivered within the remaining time frame, with the shift of the Odyssey of the Seas expected delivery into early 2021. The exact duration of the ship delivery delays are currently under discussion with the impacted shipyards:
(1) In October 2020, we took delivery of Silver Moon. As of September 30, 2020, the aggregate cost of our ships on order presented in the table above, excluding any ships on order by our Partner Brands, was approximately $14.1 billion, of which we had deposited $770.7 million as of such date. Approximately 64.4% of the aggregate cost was exposed to fluctuations in the Euro exchange rate at September 30, 2020. Refer to Note 13. Fair Value Measurements and Derivative Instruments for further information. In addition, as of September 30, 2020, we have an agreement in place with Chantiers de l'Atlantique to build an additional Edge-class ship for delivery in the 4th quarter of 2024, which is contingent upon completion of conditions precedent and financing. Litigation As previously reported in our Annual Report on Form 10-K for the year ended December 31, 2019, as updated by our Current Report on Form 8-K dated May 13, 2020, two lawsuits were filed against Royal Caribbean Cruises Ltd. in August 2019 in the U.S. District Court for the Southern District of Florida under Title III of the Cuban Liberty and Democratic Solidarity Act, also known as the Helms-Burton Act. The complaint filed by Havana Docks Corporation ("Havana Docks Action") alleges it holds an interest in the Havana Cruise Port Terminal and the complaint filed by Javier Garcia-Bengochea (the "Port of Santiago Action") alleges that he holds an interest in the Port of Santiago, Cuba, both of which were expropriated by the Cuban Government. The complaints further allege that Royal Caribbean Cruises Ltd. trafficked in those properties by embarking and disembarking passengers at these facilities. The plaintiffs seek all available statutory remedies, including the value of the expropriated property, plus interest, treble damages, attorneys’ fees and costs. Royal Caribbean Cruises Ltd. filed its answer to each complaint in October 2019 and on October 15, 2020, the Court dismissed the Port of Santiago Action on the basis that the plaintiffs in that action lacked standing to bring the claim. This decision may be appealed by the plaintiffs. We believe we have meritorious defenses to the claims alleged in both the Havana Docks Action and the Port of Santiago Action, and we intend to vigorously defend ourselves against them. We believe that it is unlikely that the outcome of either action will have a material adverse impact to our financial condition, results of operations or cash flows. However, the outcome of litigation is inherently unpredictable and subject to significant uncertainties, and there can be no assurances that the final outcome of this case will not be material. On October 7, 2020, a shareholder filed a putative class action complaint against us and certain officers, in the United States District Court for the Southern District of Florida, alleging misrepresentations relating to COVID-19 in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, seeking unspecified damages on behalf of a purported class consisting of all persons and entities (subject to specified exceptions) that purchased or otherwise acquired our securities from February 4, 2020 through March 17, 2020. On October 27, 2020, a second complaint was filed by another shareholder against us and our same officers in the United States District Court for the Southern District of Florida alleging the same misrepresentations relating to COVID-19. As is the case with the first action, the second action seeks unspecified damages on behalf of a purported class consisting of all persons and entities (subject to specified exceptions) that purchased or otherwise acquired our securities from February 4, 2020 through March 17, 2020.We cannot predict the duration or outcome of these lawsuits at this time, although management believes the claims are without merit. Depending on how these cases progress, they could be costly to defend and could divert the attention of management and other resources from operations. Accordingly, even if ultimately resolved in our favor, these actions could have a material adverse effect on our business, financial condition, results of operations and liquidity. We are also routinely involved in claims typical within the cruise vacation industry. The majority of these claims are covered by insurance. We believe the outcome of such claims, net of expected insurance recoveries, will not have a material adverse impact on our financial condition or results of operations and cash flows. Other If any person acquires ownership of more than 50% of our common stock or, subject to certain exceptions, during any 24-month period, a majority of our board of directors is no longer comprised of individuals who were members of our board of directors on the first day of such period, we may be obligated to prepay indebtedness outstanding under our credit facilities, which we may be unable to replace on similar terms. Our public debt securities also contain change of control provisions that would be triggered by a third-party acquisition of greater than 50% of our common stock coupled with a ratings downgrade. If this were to occur, it would have an adverse impact on our liquidity and operations.
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Shareholders' Equity |
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Sep. 30, 2020 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity During the first quarter of 2020, we declared a cash dividend on our common stock of $0.78 per share, which was paid in April 2020. During the first quarter of 2020, we also paid a cash dividend on our common stock of $0.78 per share, which was declared during the fourth quarter of 2019. In September 2019 we declared a cash dividend on our common stock of $0.78 per share, which was paid in October 2019. During both the first and second quarters of 2019, we declared a cash dividend on our common stock of $0.70 per share, which was paid in April 2019 and July 2019, respectively. During the first quarter of 2019, we also paid a cash dividend on our common stock of $0.70 per share, which was declared during the fourth quarter of 2018. During the second quarter of 2020, we agreed with certain of our lenders not to pay dividends or engage in common stock repurchases for so long as our debt covenant waivers are in effect. In addition, in the event we declare a dividend or engage in share repurchases, we will need to repay the amounts deferred under our export credit facilities as part of the Debt Deferral. Accordingly, we did not declare a dividend during the second, and third quarters of 2020.During October 2020, we issued 9.6 million shares of common stock, par value $0.01 per share, at a price of $60.00 per share. We received net proceeds of $557.4 million from the sale of our common stock, after deducting the underwriters’ discount and the estimated offering expenses payable by us.
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Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Accumulated Other Comprehensive Income (Loss) | Changes in Accumulated Other Comprehensive Income (Loss) The following table presents the changes in accumulated other comprehensive income (loss) by component for the nine months ended September 30, 2020 and 2019 (in thousands):
The following table presents reclassifications out of accumulated other comprehensive income (loss) for the quarters and nine months ended September 30, 2020 and 2019 (in thousands):
During the quarter and nine months ended September 30, 2020, a $69.0 million net loss was recorded within Other expense in our consolidated statements of comprehensive (loss) income. The amount was recognized in earnings in connection with the Pullmantur reorganization, as we no longer have significant involvement in the Pullmantur operations and these amounts were previously deferred in Accumulated other comprehensive loss. The net loss consisted of a $92.6 million loss resulting from the recognition of a currency translation adjustment, partially offset by the recognition of a deferred $23.6 million foreign exchange gain related to the Pullmantur net investment hedge. Of the $69.0 million loss, $34.3 million and $34.7 million was released from Accumulated other comprehensive loss during the quarters ended June 30, 2020 and September 30, 2020, respectively.
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Fair Value Measurements and Derivative Instruments |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements and Derivative Instruments | Fair Value Measurements and Derivative Instruments Fair Value Measurements The estimated fair value of our financial instruments that are not measured at fair value, categorized based upon the fair value hierarchy, are as follows (in thousands):
(1) Inputs based on quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access. Valuation of these items does not entail a significant amount of judgment. (2) Inputs other than quoted prices included within Level 1 that are observable for the liability, either directly or indirectly. For unsecured revolving credit facilities and unsecured term loans, fair value is determined utilizing the income valuation approach. This valuation model takes into account the contract terms of our debt such as the debt maturity and the interest rate on the debt. The valuation model also takes into account the creditworthiness of the Company. (3) Inputs that are unobservable. The Company did not use any Level 3 inputs as of September 30, 2020 and December 31, 2019. (4) Consists of cash and marketable securities with original maturities of less than 90 days. (5) Consists of unsecured revolving credit facilities, senior notes, senior debentures and term loans. These amounts do not include our finance lease obligations or commercial paper. Other Financial Instruments The carrying amounts of accounts receivable, accounts payable, accrued interest, accrued expenses and commercial paper approximate fair value at September 30, 2020 and December 31, 2019. Assets and liabilities that are recorded at fair value have been categorized based upon the fair value hierarchy. The following table presents information about the Company’s financial instruments recorded at fair value on a recurring basis (in thousands):
(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. (5)Consists of foreign currency forward contracts, interest rate swaps and fuel swaps. (6)Any obligation under the contingent consideration related to the 2018 Silversea Cruises acquisition was eliminated during the quarter ended September 30 2020 as a result of our purchase of the remaining 33.3% non-controlling interest in Silversea Cruises. In prior periods, the contingent consideration was 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. The reported fair values are based on a variety of factors and assumptions. Accordingly, the fair values may not represent actual values of the financial instruments that could have been realized as of September 30, 2020 or December 31, 2019, or that will be realized in the future, and do not include expenses that could be incurred in an actual sale or settlement. Nonfinancial Instruments Recorded at Fair Value on a Nonrecurring Basis The following table presents information about the Company’s nonfinancial instruments recorded at fair value on a nonrecurring basis (in thousands):
_________________________________________________________________________________________________________ (1) We estimated the fair value of the Silversea Cruises reporting unit using a probability-weighted discounted cash flow model in combination with a market based valuation approach. The principal assumptions used in the discounted cash flow model are projected operating results, weighted-average cost of capital and terminal value. Significantly impacting these assumptions were changes in market conditions associated with COVID-19 and its impact to the business and related operating plans. The discounted cash flow model used our 2020 projected operating results as a base. To that base we added future years’ cash flows through 2030 assuming multiple revenue and expense scenarios that reflect the impact of different global economic environments for this period on Silversea Cruises' reporting unit. We assigned a probability to each revenue and expense scenario. We discounted the projected cash flows using rates specific to Silversea Cruises' reporting unit based on its weighted-average cost of capital, which was determined to be 12.75%. A significant input in performing the fair value assessment for the Silversea Cruises goodwill was forecasted operating results, which takes into consideration expected ship deliveries, including ship options. The fair value of Silversea Cruises’ goodwill was estimated as of March 31, 2020, the date of the last impairment test. (2) We estimated the fair value of our indefinite-life intangible asset using a discounted cash flow model and the relief-from-royalty method. For the Silversea Cruises trade name we used a discount rate of 13.25%, comparable to the rate used in valuing the Silversea Cruises reporting unit. Significant inputs in performing the fair value assessment for the trade name were the royalty rate of 3.0% and forecasted net revenues, which takes into consideration expected ship deliveries, including ship options. The fair value of the Silversea Cruises trade name was estimated as of March 31, 2020, the date of the last impairment test. (3) Impairments primarily related to vessels during the six months ended June 30, 2020 and to certain construction in progress projects during the three months ended September 30, 2020. For the vessels impaired as of March 31, 2020, we estimated the fair value of two of our vessels using a blended indication from the income and cost approaches and the fair value of the remaining vessels was estimated primarily based on their orderly liquidation values. For the vessels impaired as of June 30, 2020, we estimated the fair value of the vessels using a modified market approach based on the carrying values and orderly liquidation values of the vessels. A significant input in performing the fair value assessments for these vessels was management's expected use of the vessels, which takes into consideration forecasted operating results. During the quarter ended September 30, 2020, construction in progress assets were impaired due to a reduction in scope or the decision to not complete the projects. The impairment was calculated based on orderly liquidation values. (4) Impairments to our right-of-use assets relate to certain of our berthing arrangements and a ship operating lease. We estimated the fair value of the berthing arrangements using estimated projected discounted cash flows and the fair value of the ship operating lease was estimated using a cost approach. The fair value of the berthing arrangements was estimated as of March 31, 2020, the date these assets were last impaired, and a significant input in performing the fair value assessments for these assets was our expected passenger headcount. The fair value of the ship operating lease was estimated as of June 30, 2020, the date this asset was last impaired, and significant inputs in performing the fair value assessment for this asset were current and residual values of the vessel, expected rate of return and remaining lease payments. (5) We estimated the fair value of our other than temporarily impaired equity-method investments using a discounted cash flow model. A significant input in performing the fair value assessments for these assets was forecasted operating results for these investments. The fair value of these equity-method investments was estimated as of March 31, 2020, the date these assets were last impaired. We believe that our estimates and judgments related to the fair values of goodwill, intangibles and long-lived assets discussed above are reasonable. A change in the conditions, circumstances or strategy which influence determinations of fair value, may result in the recognition of additional impairment charges. Master Netting Agreements We have master International Swaps and Derivatives Association (“ISDA”) agreements in place with our derivative instrument counterparties. These ISDA agreements generally provide for final close out netting with our counterparties for all positions in the case of default or termination of the ISDA agreement. We have determined that our ISDA agreements provide us with rights of setoff on the fair value of derivative instruments in a gain position and those in a loss position with the same counterparty. We have elected not to offset such derivative instrument fair values in our consolidated balance sheets. See Credit Related Contingent Features for further discussion on contingent collateral requirements for our derivative instruments. The following table presents information about the Company’s offsetting of financial assets under master netting agreements with derivative counterparties (in thousands):
The following table presents information about the Company’s offsetting of financial liabilities under master netting agreements with derivative counterparties (in thousands):
Concentrations of Credit Risk We monitor our credit risk associated with financial and other institutions with which we conduct significant business and, to minimize these risks, we select counterparties with credit risks acceptable to us and we seek to limit our exposure to an individual counterparty. Credit risk, including but not limited to counterparty nonperformance under derivative instruments, our credit facilities and new ship progress payment guarantees, is not considered significant, as we primarily conduct business with large, well-established financial institutions, insurance companies and export credit agencies many of which we have long-term relationships with and which have credit risks acceptable to us or where the credit risk is spread out among a large number of counterparties. As of September 30, 2020, we had counterparty credit risk exposure under our derivative instruments of $2.2 million, which was limited to the cost of replacing the contracts in the event of non-performance by the counterparties to the contracts, the majority of which are currently our lending banks. We do not anticipate nonperformance by any of our significant counterparties. In addition, we have established guidelines we follow regarding credit ratings and instrument maturities to maintain safety and liquidity. We do not normally require collateral or other security to support credit relationships; however, in certain circumstances this option is available to us. Derivative Instruments We are exposed to market risk attributable to changes in interest rates, foreign currency exchange rates and fuel prices. We try to mitigate these risks through a combination of our normal operating and financing activities and through the use of derivative financial instruments pursuant to our hedging practices and policies. The financial impact of these hedging instruments is primarily offset by corresponding changes in the underlying exposures being hedged. We achieve this by closely matching the notional amount, term and conditions of the derivative instrument with the underlying risk being hedged. Although certain of our derivative financial instruments do not qualify or are not accounted for under hedge accounting, our objective is not to hold or issue derivative financial instruments for trading or other speculative purposes. We enter into various forward, swap and option contracts to manage our interest rate exposure and to limit our exposure to fluctuations in foreign currency exchange rates and fuel prices. These instruments are recorded on the balance sheet at their fair value and the vast majority are designated as hedges. We also use non-derivative financial instruments designated as hedges of our net investment in our foreign operations and investments. At inception of the hedge relationship, a derivative instrument that hedges the exposure to changes in the fair value of a firm commitment or a recognized asset or liability is designated as a fair value hedge. A derivative instrument that hedges a forecasted transaction or the variability of cash flows related to a recognized asset or liability is designated as a cash flow hedge. Changes in the fair value of derivatives that are designated as fair value hedges are offset against changes in the fair value of the underlying hedged assets, liabilities or firm commitments. Gains and losses on derivatives that are designated as cash flow hedges are recorded as a component of Accumulated other comprehensive loss until the underlying hedged transactions are recognized in earnings. The foreign currency transaction gain or loss of our non-derivative financial instruments and the changes in the fair value of derivatives designated as hedges of our net investment in foreign operations and investments are recognized as a component of Accumulated other comprehensive loss along with the associated foreign currency translation adjustment of the foreign operation or investment, with the amortization of excluded components affecting earnings. On an ongoing basis, we assess whether derivatives used in hedging transactions are "highly effective" in offsetting changes in the fair value or cash flow of hedged items. For our net investment hedges, we use the dollar offset method to measure effectiveness. For all other hedging programs, we use the long-haul method to assess hedge effectiveness using regression analysis for each hedge relationship. The methodology for assessing hedge effectiveness is applied on a consistent basis for each one of our hedging programs (i.e., interest rate, foreign currency ship construction, foreign currency net investment and fuel). For our regression analyses, we use an observation period of up to three years, utilizing market data relevant to the hedge horizon of each hedge relationship. High effectiveness is achieved when a statistically valid relationship reflects a high degree of offset and correlation between the changes in the fair values of the derivative instrument and the hedged item. If it is determined that a derivative is not highly effective as a hedge or hedge accounting is discontinued, any change in fair value of the derivative since the last date at which it was determined to be effective is recognized in earnings. Cash flows from derivative instruments that are designated as fair value or cash flow hedges are classified in the same category as the cash flows from the underlying hedged items. In the event that hedge accounting is discontinued, cash flows subsequent to the date of discontinuance are classified within investing activities. Cash flows from derivative instruments not designated as hedging instruments are classified as investing activities. We consider the classification of the underlying hedged item’s cash flows in determining the classification for the designated derivative instrument’s cash flows. We classify derivative instrument cash flows from hedges of benchmark interest rate or hedges of fuel expense as operating activities due to the nature of the hedged item. Likewise, we classify derivative instrument cash flows from hedges of foreign currency risk on our newbuild ship payments as investing activities. Interest Rate Risk Our exposure to market risk for changes in interest rates primarily relates to our debt obligations including future interest payments. At September 30, 2020 and December 31, 2019, approximately 65.9% and 62.1%, respectively, of our debt was effectively fixed. We use interest rate swap agreements to modify our exposure to interest rate movements and to manage our interest expense. Market risk associated with our fixed rate debt is the potential increase in fair value resulting from a decrease in interest rates. We use interest rate swap agreements that effectively convert a portion of our fixed-rate debt to a floating-rate basis to manage this risk. At September 30, 2020 and December 31, 2019, we maintained interest rate swap agreements on the following fixed-rate debt instruments:
These interest rate swap agreements are accounted for as fair value hedges. Market risk associated with our long-term floating rate debt is the potential increase in interest expense from an increase in interest rates. We use interest rate swap agreements that effectively convert a portion of our floating-rate debt to a fixed-rate basis to manage this risk. At September 30, 2020 and December 31, 2019, we maintained interest rate swap agreements on the following floating-rate debt instruments:
(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 September 30, 2020. (2)Interest rate swap agreements hedging the term loan of Odyssey of the Seas include LIBOR zero-floors matching the debt LIBOR zero-floor. The effective dates of the $460.0 million and $191.7 million interest rate swap agreements are October 2020 and October 2022, respectively. The anticipated unsecured term loan for the financing of Odyssey of the Seas was initially expected to be drawn in October 2020. However, due to the impact of COVID-19 to shipyard operations, there is a delay in the ship delivery. These interest rate swap agreements are accounted for as cash flow hedges. The notional amount of interest rate swap agreements related to outstanding debt and our current unfunded financing arrangements as of September 30, 2020 and December 31, 2019 was $3.5 billion. Foreign Currency Exchange Rate Risk Derivative Instruments Our primary exposure to foreign currency exchange rate risk relates to our ship construction contracts denominated in Euros, our foreign currency denominated debt and our international business operations. We enter into foreign currency forward contracts to manage portions of the exposure to movements in foreign currency exchange rates. As of September 30, 2020, the aggregate cost of our ships on order was $14.1 billion, of which we had deposited $770.7 million as of such date. These amounts exclude any ships on order by our Partner Brands. Refer to Note 10. Commitments and Contingencies, for further information on our ships on order. At September 30, 2020 and December 31, 2019, approximately 64.4% and 65.9%, respectively, of the aggregate cost of the ships under construction was exposed to fluctuations in the Euro exchange rate. Our foreign currency forward contract agreements are accounted for as cash flow or net investment hedges depending on the designation of the related hedge. On a regular basis, we enter into foreign currency forward contracts and, from time to time, we utilize cross-currency swap agreements and collar options to minimize the volatility resulting from the remeasurement of net monetary assets and liabilities denominated in a currency other than our functional currency or the functional currencies of our foreign subsidiaries. During the third quarter of 2020, we maintained an average of approximately $262.1 million of these foreign currency forward contracts. These instruments are not designated as hedging instruments. For the quarters ended September 30, 2020 and 2019, changes in the fair value of the foreign currency forward contracts resulted in a gain of $4.9 million and a loss of $26.0 million, respectively. For the nine months ended September 30, 2020 and 2019, changes in the fair value of the foreign currency contracts resulted in a loss of $35.3 million and $25.2 million, respectively. These amounts were recognized in earnings within Other income (expense) in our consolidated statements of comprehensive income (loss). We consider our investments in our foreign operations to be denominated in relatively stable currencies and to be of a long-term nature. As of September 30, 2020, we maintained foreign currency forward contracts and designated them as hedges of a portion of our net investments primarily in TUI Cruises of €245.0 million, or approximately $287.3 million based on the exchange rate at September 30, 2020. These forward currency contracts mature in October 2021. The notional amount of outstanding foreign exchange contracts, excluding the forward contracts entered into to minimize remeasurement volatility, as of September 30, 2020 and December 31, 2019 was $3.3 billion and $2.9 billion, respectively. Non-Derivative Instruments We also address the exposure of our investments in foreign operations by denominating a portion of our debt in our subsidiaries’ and investments’ functional currencies and designating it as a hedge of these subsidiaries and investments. We had designated debt as a hedge of our net investments primarily in TUI Cruises of €284.0 million, or approximately $333.1 million, as of September 30, 2020. As of December 31, 2019, we had designated debt as a hedge of our net investments in TUI Cruises of €319.0 million, or approximately $358.1 million. Fuel Price Risk Our exposure to market risk for changes in fuel prices relates primarily to the consumption of fuel on our ships. We use fuel swap agreements to mitigate the financial impact of fluctuations in fuel prices. Our fuel swap agreements are generally accounted for as cash flow hedges. In the case that our hedged forecasted fuel consumption is not probable of occurring, hedge accounting will be discontinued and the related accumulated other comprehensive gain or loss will be reclassified to Other income (expense) immediately. For hedged forecasted fuel consumption that remains possible of occurring, hedge accounting will be discontinued and the related accumulated other comprehensive gain or loss will remain in accumulated other comprehensive gain or loss until the underlying hedged transactions are recognized in earnings or the related hedged forecasted fuel consumption is deemed probable of not occurring. The current suspension of our cruise operations due to the COVID-19 pandemic resulted in reductions to our forecasted fuel purchases. As of September 30, 2020, we discontinued cash flow hedge accounting on 0.5 million metric tons of our fuel swap agreements maturing in 2020 and 2021. The discontinuance of cash flow hedge accounting on 0.4 million metric tons of the fuel swap agreements resulted in the reclassification of a net $76.3 million loss from Accumulated other comprehensive loss to Other expense during the nine months ended September 30, 2020; whereas, the discontinuance of cash flow hedge accounting on the remaining swaps resulted in the deferral of an immaterial loss in Accumulated other comprehensive loss as the related forecasted fuel consumption remains possible of occurring. Changes in the fair value of fuel swaps for which cash flow hedge accounting was discontinued are currently recognized in Other expense each reporting period. At September 30, 2020, we have hedged the variability in future cash flows for certain forecasted fuel transactions occurring through 2023. As of September 30, 2020 and December 31, 2019, we had the following outstanding fuel swap agreements:
At September 30, 2020, $48.1 million of estimated unrealized loss associated with our cash flow hedges pertaining to fuel swap agreements is expected to be reclassified to earnings from Accumulated other comprehensive loss within the next twelve months. Reclassification is expected to occur as the result of fuel consumption associated with our hedged forecasted fuel purchases. The fair value and line item caption of derivative instruments recorded within our consolidated balance sheets were as follows (in thousands):
(1)Accounting Standard Codification 815-20 “Derivatives and Hedging.” The location and amount of gain or (loss) recognized in income on fair value and cash flow hedging relationships were as follows (in thousands):
The carrying value and line item caption of non-derivative instruments designated as hedging instruments recorded within our consolidated balance sheets were as follows (in thousands):
The effect of derivative instruments qualifying and designated as hedging instruments and the related hedged items in fair value hedges on the consolidated statements of comprehensive income (loss) was as follows (in thousands):
The fair value and line item caption of derivative instruments recorded within our consolidated balance sheets for the cumulative basis adjustment for fair value hedges were as follows (in thousands):
The effect of derivative instruments qualifying and designated as cash flow hedging instruments on the consolidated financial statements was as follows (in thousands):
The table below represents amounts excluded from the assessment of effectiveness for our net investment hedging instruments for which the difference between changes in fair value and periodic amortization is recorded in accumulated other comprehensive income (loss) (in thousands):
The effect of non-derivative instruments qualifying and designated as net investment hedging instruments on the consolidated financial statements was as follows (in thousands):
The effect of derivatives not designated as hedging instruments on the consolidated financial statements was as follows (in thousands):
Credit Related Contingent Features Our current interest rate derivative instruments require us to post collateral if our Standard & Poor’s and Moody’s credit ratings fall below specified levels. Specifically, under most of our agreements, if on the fifth anniversary of executing a derivative instrument, or on any succeeding fifth-year anniversary, our credit ratings for our senior unsecured debt is rated below BBB- by Standard & Poor’s and Baa3 by Moody’s, then the counterparty will periodically have the right to demand that we post collateral in an amount equal to the difference between (i) the net market value of all derivative transactions with such counterparty that have reached their fifth year anniversary, to the extent negative, and (ii) the applicable minimum call amount. The amount of collateral required to be posted will change as, and to the extent, our net liability position increases or decreases by more than the applicable minimum call amount. If our credit rating for our senior unsecured debt is subsequently equal to or above BBB- by Standard & Poor’s or Baa3 by Moody’s, then any collateral posted at such time will be released to us and we will no longer be required to post collateral unless we meet the collateral trigger requirement, generally, at the next fifth-year anniversary. As of September 30, 2020, our senior unsecured debt credit rating was B+ by Standard & Poor's and B2 by Moody's. As of September 30, 2020, seven of our interest rate derivative hedges had a term of at least five years requiring us to post collateral of $30.5 million to satisfy our obligations under our interest rate derivative agreements, taking into account collateral waivers issued by certain banks. We believe the maximum additional collateral we may need to provide under these agreements in the next twelve months is approximately $60.6 million.
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Restructuring Charges |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Charges | Restructuring Charges We incurred restructuring charges of $29.4 million and $50.8 million for the quarter and nine months ended September 30, 2020, respectively, in connection with the centralization of our global sales and marketing structure and the reduction of our U.S. workforce. Centralization of Global Sales and Marketing Structure During the year ended December 31, 2019, we implemented a strategy related to the restructuring and centralization of our international sales and marketing structure. Activities related to this strategy focused on moving from a multi-brand sales model to a brand dedicated sales model, which resulted in the consolidation of some of our international offices and personnel reorganization among our sales and marketing teams. The personnel reorganization resulted in the recognition of a liability for one-time termination benefits during the twelve months ended December 31, 2019. We also incurred contract termination costs related to the closure of some of our international offices and other related costs consisting of legal and consulting fees to implement this initiative. As a result of these actions, we incurred restructuring exit costs of $12.0 million for the year ended December 31, 2019, which were reported within Marketing, selling and administrative expenses in our consolidated statements of comprehensive income (loss). As of September 30, 2020, we incurred $22.9 million restructuring costs and expect to incur $0.5 million additional costs as it relates to the restructuring activities of this strategy. The following table summarizes our restructuring exit costs as it relates to the centralization of our global sales and marketing structure (in thousands):
Operating Expense Reduction in Workforce In April 2020, we reduced our US shoreside workforce by approximately 23% through a combination of permanent layoffs and 90-day furloughs with paid benefits. We incurred severance costs of $27.9 million during the nine months ended September 30, 2020, respectively, and do not expect to incur additional costs as it relates to this activity. The following table summarizes our restructuring costs as it relates to the April 2020 reduction in our workforce (in thousands):
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Summary of Significant Accounting Policies (Policies) |
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Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis for Preparation of Consolidated Financial Statements | 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, 2019, as updated by our Current Report on Form 8-K dated May 13, 2020, for a discussion of our significant accounting policies.
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Consolidation | All significant intercompany accounts and transactions are eliminated in consolidation. We consolidate entities over which we have control, usually evidenced by a direct ownership interest of greater than 50%, and variable interest entities where we are determined to be the primary beneficiary. Refer to Note 6. Other Assets for further information regarding our variable interest entities. 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 July 1, 2020 through September 30, 2020 that would require further disclosure or adjustment to our consolidated financial statements as of and for the quarter ended September 30, 2020, with the exception of our July 2020 acquisition of the noncontrolling interest, which was accounted for in our consolidated financial statements as of September 30, 2020. 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. |
Adoption of Accounting Pronouncements; Recent Accounting Pronouncements | Adoption of Accounting Pronouncements In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2016-13, Financial Instruments - Credit Losses (Topic 326); Measurement of Credit Losses on Financial Instruments. This ASU, along with subsequent ASUs issued to clarify certain of its provisions, introduces new guidance which makes substantive changes to the accounting model for financial assets subject to credit losses that are measured at amortized cost, as well as certain off-balance sheet credit exposures. The updates include the introduction of a new current expected credit loss (“CECL”) model that is based on expected rather than incurred losses. On January 1, 2020, we adopted these updates using the modified retrospective approach. The adoption did not have a material impact to our consolidated financial statements. Recent Accounting Pronouncements In January 2020, the FASB issued ASU No. 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivative and Hedging (Topic 815), which clarifies the interaction of rules for equity securities, the equity method of accounting, and forward contracts and purchase options on certain types of securities. The guidance clarifies how to account for the transition into and out of the equity method of accounting when considering observable transactions under the measurement alternative. The ASU is effective for annual reporting periods beginning after December 15, 2020, including interim reporting periods within those annual periods, with early adoption permitted. We are currently evaluating the impact of the new guidance on our consolidated financial statements. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848), which provides optional expedients and exceptions to the current guidance on contract modifications and hedging relationships to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative reference rates. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. We are currently evaluating the impact of the new guidance on our consolidated financial statements. In August 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40), which simplifies the accounting for convertible instruments. The guidance removes certain accounting models which separate the embedded conversion features from the host contract for convertible instruments, requiring bifurcation only if the convertible debt feature qualifies as a derivative under ASC 815 or for convertible debt issued at a substantial premium. The ASU removes certain settlement conditions required for equity contracts to qualify for the derivative scope exception, permitting more contracts to qualify for it. In addition, the guidance eliminates the treasury stock method to calculate diluted earnings per share for convertible instruments and requires the use of the if-converted method. The ASU is effective for annual reporting periods beginning after December 15, 2021, including interim reporting periods within those annual periods, with early adoption permitted no earlier than the fiscal year beginning after December 15, 2020. The guidance is expected to have an impact on our consolidated financial statements given the recent issuance of convertible notes, however, we are still evaluating the magnitude of the new guidance on our consolidated financial statements.
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Impairment and Credit Losses (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | The following are the carrying amounts of goodwill attributable to our Royal Caribbean International, Celebrity Cruises and Silversea Cruises reporting units and the changes in such balances during the quarter and nine months ended September 30, 2020 (in thousands) are as follows:
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Schedule of Finite-Lived 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 September 30, 2020 and December 31, 2019 (in thousands):
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Schedule of Indefinite-Lived 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 September 30, 2020 and December 31, 2019 (in thousands):
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Schedule of Credit Loss | The following table summarizes our credit loss allowance related to receivables for the nine months ended September 30, 2020 (in thousands):
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Revenues (Tables) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | The following table disaggregates our total revenues by geographic regions where we provide cruise itineraries (in thousands):
(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 6. Other Assets for more information on our unconsolidated affiliates. Passenger ticket revenues are attributed to geographic areas based on where the reservation originates. For the quarters and nine months ended September 30, 2020 and 2019, our guests were sourced from the following areas:
(1)No other individual country's revenue exceeded 10% for the quarters and nine months ended September 30, 2020 and 2019.
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(Loss) Earnings Per Share (Tables) |
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation Between Basic and Diluted Earnings Per Share | A reconciliation between basic and diluted (loss) earnings per share is as follows (in thousands, except per share data):
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Other Assets (Tables) |
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Nonoperating Income (Expense) | The following tables set forth information regarding our investments accounted for under the equity method of accounting, including the entities discussed above (in thousands):
(1)There were no dividends received from TUIC for the quarter and nine months ended September 30, 2020. For the quarter ended September 30, 2019, the amount includes dividends from TUIC of €80.0 million, or approximately $88.5 million, based on exchange rate at the time of the transaction. For the nine months ended September 30, 2019, amounts include dividends from TUIC of €170 million or approximately $190.3 million based on the exchange rates at the time of the transactions. The amounts included in the table above are net of tax withholding.
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Schedule of Related Party Transactions |
(1)Included within Trade and other receivables, net in our consolidated balance sheets. (2)Included within Other assets in our consolidated balance sheets. We recorded the following as it relates to these services in our operating results within our consolidated statements of comprehensive income (loss) (in thousands):
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Debt (Tables) |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt Instruments | Debt consist of the following (in thousands):
(1) Interest rates based on outstanding loan balance as of September 30, 2020 and, for variable rate debt, include either LIBOR or EURIBOR plus the applicable margin. (2) Includes $1.9 billion facility due in 2024 and $1.5 billion facility due in 2022, each of which accrue interest at LIBOR plus 1.30%, which interest rate was 1.53% as of September 30, 2020 and each is subject to a facility fee of 0.20%. (3) At September 30, 2020 and December 31, 2019, the weighted average interest rate for total debt was 6.00% and 3.99%, respectively.
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Schedule of Convertible Debt | The net carrying value of the liability component of the convertible notes was as follows:
The interest expense recognized related to the convertible notes was as follows:
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Schedule of Maturities of Long-term Debt | The following is a schedule of annual maturities on our total debt net of debt issuance costs, and including finance leases and commercial paper, as of September 30, 2020 for each of the next five years (in thousands):
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Leases (Tables) |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Lease Expense and Cash Flow Information | The components of lease expense were as follows (in thousands):
Weighted average of the remaining lease terms and weighted average discount rates are as follows:
Supplemental cash flow information related to leases is as follows (in thousands):
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Schedule of Maturities, Operating Leases | As of September 30, 2020, maturities related to lease liabilities were as follows (in thousands):
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Schedule of Maturities, Financial Leases | As of September 30, 2020, maturities related to lease liabilities were as follows (in thousands):
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Redeemable Noncontrolling Interest (Tables) |
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Noncontrolling Interest [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Redeemable Noncontrolling Interest | The following table presents changes in the noncontrolling interest for the quarters and nine months ended September 30, 2020 and September 30, 2019 (in thousands):
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Commitment and Contingencies (Tables) |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Capital Commitments | Our future capital commitments consist primarily of new ship orders. As of September 30, 2020, our Global Brands and Partner Brands have the following ships on order. COVID-19 has impacted shipyard operations which have and will result in delays of our previously contracted ship deliveries as noted below. Of the six ships originally scheduled for delivery between July 2020 and December 2021, Silver Moon was delivered in October 2020 and we expect that Silver Dawn and Odyssey of the Seas will be delivered within the remaining time frame, with the shift of the Odyssey of the Seas expected delivery into early 2021. The exact duration of the ship delivery delays are currently under discussion with the impacted shipyards:
(1) In October 2020, we took delivery of Silver Moon.
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Changes in Accumulated Other Comprehensive (Loss) Income (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Changes In Accumulated Other Comprehensive Income (Loss) by Component | The following table presents the changes in accumulated other comprehensive income (loss) by component for the nine months ended September 30, 2020 and 2019 (in thousands):
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Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | The following table presents reclassifications out of accumulated other comprehensive income (loss) for the quarters and nine months ended September 30, 2020 and 2019 (in thousands):
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Fair Value Measurements and Derivative Instruments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements, Nonrecurring | The estimated fair value of our financial instruments that are not measured at fair value, categorized based upon the fair value hierarchy, are as follows (in thousands):
(1) Inputs based on quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access. Valuation of these items does not entail a significant amount of judgment. (2) Inputs other than quoted prices included within Level 1 that are observable for the liability, either directly or indirectly. For unsecured revolving credit facilities and unsecured term loans, fair value is determined utilizing the income valuation approach. This valuation model takes into account the contract terms of our debt such as the debt maturity and the interest rate on the debt. The valuation model also takes into account the creditworthiness of the Company. (3) Inputs that are unobservable. The Company did not use any Level 3 inputs as of September 30, 2020 and December 31, 2019. (4) Consists of cash and marketable securities with original maturities of less than 90 days. (5) Consists of unsecured revolving credit facilities, senior notes, senior debentures and term loans. These amounts do not include our finance lease obligations or commercial paper. The following table presents information about the Company’s nonfinancial instruments recorded at fair value on a nonrecurring basis (in thousands):
_________________________________________________________________________________________________________ (1) We estimated the fair value of the Silversea Cruises reporting unit using a probability-weighted discounted cash flow model in combination with a market based valuation approach. The principal assumptions used in the discounted cash flow model are projected operating results, weighted-average cost of capital and terminal value. Significantly impacting these assumptions were changes in market conditions associated with COVID-19 and its impact to the business and related operating plans. The discounted cash flow model used our 2020 projected operating results as a base. To that base we added future years’ cash flows through 2030 assuming multiple revenue and expense scenarios that reflect the impact of different global economic environments for this period on Silversea Cruises' reporting unit. We assigned a probability to each revenue and expense scenario. We discounted the projected cash flows using rates specific to Silversea Cruises' reporting unit based on its weighted-average cost of capital, which was determined to be 12.75%. A significant input in performing the fair value assessment for the Silversea Cruises goodwill was forecasted operating results, which takes into consideration expected ship deliveries, including ship options. The fair value of Silversea Cruises’ goodwill was estimated as of March 31, 2020, the date of the last impairment test. (2) We estimated the fair value of our indefinite-life intangible asset using a discounted cash flow model and the relief-from-royalty method. For the Silversea Cruises trade name we used a discount rate of 13.25%, comparable to the rate used in valuing the Silversea Cruises reporting unit. Significant inputs in performing the fair value assessment for the trade name were the royalty rate of 3.0% and forecasted net revenues, which takes into consideration expected ship deliveries, including ship options. The fair value of the Silversea Cruises trade name was estimated as of March 31, 2020, the date of the last impairment test. (3) Impairments primarily related to vessels during the six months ended June 30, 2020 and to certain construction in progress projects during the three months ended September 30, 2020. For the vessels impaired as of March 31, 2020, we estimated the fair value of two of our vessels using a blended indication from the income and cost approaches and the fair value of the remaining vessels was estimated primarily based on their orderly liquidation values. For the vessels impaired as of June 30, 2020, we estimated the fair value of the vessels using a modified market approach based on the carrying values and orderly liquidation values of the vessels. A significant input in performing the fair value assessments for these vessels was management's expected use of the vessels, which takes into consideration forecasted operating results. During the quarter ended September 30, 2020, construction in progress assets were impaired due to a reduction in scope or the decision to not complete the projects. The impairment was calculated based on orderly liquidation values. (4) Impairments to our right-of-use assets relate to certain of our berthing arrangements and a ship operating lease. We estimated the fair value of the berthing arrangements using estimated projected discounted cash flows and the fair value of the ship operating lease was estimated using a cost approach. The fair value of the berthing arrangements was estimated as of March 31, 2020, the date these assets were last impaired, and a significant input in performing the fair value assessments for these assets was our expected passenger headcount. The fair value of the ship operating lease was estimated as of June 30, 2020, the date this asset was last impaired, and significant inputs in performing the fair value assessment for this asset were current and residual values of the vessel, expected rate of return and remaining lease payments. (5) We estimated the fair value of our other than temporarily impaired equity-method investments using a discounted cash flow model. A significant input in performing the fair value assessments for these assets was forecasted operating results for these investments. The fair value of these equity-method investments was estimated as of March 31, 2020, the date these assets were last impaired.
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Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Assets and liabilities that are recorded at fair value have been categorized based upon the fair value hierarchy. The following table presents information about the Company’s financial instruments recorded at fair value on a recurring basis (in thousands):
(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. (5)Consists of foreign currency forward contracts, interest rate swaps and fuel swaps. (6)Any obligation under the contingent consideration related to the 2018 Silversea Cruises acquisition was eliminated during the quarter ended September 30 2020 as a result of our purchase of the remaining 33.3% non-controlling interest in Silversea Cruises. In prior periods, the contingent consideration was 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.
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Offsetting Assets | The following table presents information about the Company’s offsetting of financial assets under master netting agreements with derivative counterparties (in thousands):
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Offsetting Liabilities | The following table presents information about the Company’s offsetting of financial liabilities under master netting agreements with derivative counterparties (in thousands):
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Schedule of Price Risk Derivatives | As of September 30, 2020 and December 31, 2019, we had the following outstanding fuel swap agreements:
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Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The fair value and line item caption of derivative instruments recorded within our consolidated balance sheets were as follows (in thousands):
(1)Accounting Standard Codification 815-20 “Derivatives and Hedging.” The fair value and line item caption of derivative instruments recorded within our consolidated balance sheets for the cumulative basis adjustment for fair value hedges were as follows (in thousands):
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Derivative Instruments, Gain (Loss) | The location and amount of gain or (loss) recognized in income on fair value and cash flow hedging relationships were as follows (in thousands):
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Fair Value and Line Item Caption of Non-derivative Instruments | The carrying value and line item caption of non-derivative instruments designated as hedging instruments recorded within our consolidated balance sheets were as follows (in thousands):
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Non Derivative Instruments Qualifying and Designated as Hedging Instruments in Net Investment Hedges | The effect of non-derivative instruments qualifying and designated as net investment hedging instruments on the consolidated financial statements was as follows (in thousands):
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Not Designated as Hedging Instrument | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments, Gain (Loss) | The effect of derivatives not designated as hedging instruments on the consolidated financial statements was as follows (in thousands):
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Fair Value Hedging | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Interest Rate Derivatives | At September 30, 2020 and December 31, 2019, we maintained interest rate swap agreements on the following fixed-rate debt instruments:
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Derivative Instruments, Gain (Loss) | The effect of derivative instruments qualifying and designated as hedging instruments and the related hedged items in fair value hedges on the consolidated statements of comprehensive income (loss) was as follows (in thousands):
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||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash flow hedge | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Interest Rate Derivatives | At September 30, 2020 and December 31, 2019, we maintained interest rate swap agreements on the following floating-rate debt instruments:
(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 September 30, 2020. (2)Interest rate swap agreements hedging the term loan of Odyssey of the Seas include LIBOR zero-floors matching the debt LIBOR zero-floor. The effective dates of the $460.0 million and $191.7 million interest rate swap agreements are October 2020 and October 2022, respectively. The anticipated unsecured term loan for the financing of Odyssey of the Seas was initially expected to be drawn in October 2020. However, due to the impact of COVID-19 to shipyard operations, there is a delay in the ship delivery.
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Derivative Instruments, Gain (Loss) | The effect of derivative instruments qualifying and designated as cash flow hedging instruments on the consolidated financial statements was as follows (in thousands):
The table below represents amounts excluded from the assessment of effectiveness for our net investment hedging instruments for which the difference between changes in fair value and periodic amortization is recorded in accumulated other comprehensive income (loss) (in thousands):
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Restructuring Charges (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Restructuring Charges | The following table summarizes our restructuring exit costs as it relates to the centralization of our global sales and marketing structure (in thousands):
The following table summarizes our restructuring costs as it relates to the April 2020 reduction in our workforce (in thousands):
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General (Details) $ / shares in Units, € in Billions |
1 Months Ended | 9 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 09, 2020
$ / shares
shares
|
Jun. 30, 2020
USD ($)
|
Jun. 30, 2020
EUR (€)
|
Oct. 31, 2020
USD ($)
$ / shares
shares
|
Jun. 30, 2020
GBP (£)
|
Sep. 30, 2020
USD ($)
brand
$ / shares
shares
|
Sep. 30, 2020
GBP (£)
|
Sep. 30, 2020
GBP (£)
brand
shares
|
Aug. 31, 2020
USD ($)
|
Dec. 31, 2019
USD ($)
$ / shares
shares
|
Dec. 31, 2019
GBP (£)
shares
|
Dec. 31, 2018 |
Jul. 31, 2018 |
|||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Number of cruise brands | brand | 4 | 4 | |||||||||||||
Interest acquired | 33.30% | ||||||||||||||
Common stock, shares issued (in shares) | shares | 5,200,000 | 242,502,983 | 242,502,983 | 236,547,842 | 236,547,842 | ||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||||||
Liquidity | $ 3,700,000,000 | ||||||||||||||
Cash and cash equivalents | 3,016,788,000 | $ 243,738,000 | |||||||||||||
Increase in liquidity | 8,100,000,000 | ||||||||||||||
Long-term debt | 6,200,000,000 | ||||||||||||||
Commercial paper | £ | £ 300,000,000.0 | £ 300,000,000.0 | |||||||||||||
Increase in liquidity due to deferral of existing debt amortization | 900,000,000 | ||||||||||||||
Debt covenant, monthly minimum liquidity | 500,000,000.0 | ||||||||||||||
Maximum additional collateral or reserves potentially needed | 75,000,000 | ||||||||||||||
Collateral amount | 80,000,000 | ||||||||||||||
Convertible notes | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Debt instrument, face amount | $ 1,150,000,000 | $ 1,150,000,000 | |||||||||||||
Interest rate | [1] | 4.25% | 4.25% | ||||||||||||
Commercial Paper | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Borrowings outstanding | $ 387,900,000 | £ 300,000,000.0 | £ 1,400,000,000 | ||||||||||||
Hapag-Lloyd Cruises | TUI Cruises | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Purchase price | 1,300,000,000 | € 1.2 | |||||||||||||
Silversea Cruises | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Percentage of business acquired | 66.70% | 66.70% | |||||||||||||
Subsequent Event | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | ||||||||||||||
Number of shares sold (in shares) | shares | 9,600,000 | ||||||||||||||
Sale of stock, price per share (in dollars per share) | $ / shares | $ 60.00 | ||||||||||||||
Proceeds from sale of stock, gross | $ 575,000,000 | ||||||||||||||
Debt covenant, monthly minimum liquidity | 350,000,000.0 | ||||||||||||||
Subsequent Event | Senior Convertible Notes Due 2023 | Convertible notes | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Debt instrument, face amount | $ 575,000,000 | ||||||||||||||
Interest rate | 2.875% | ||||||||||||||
Revolving Credit Facility | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Increase to revolving credit facility | 600,000,000 | ||||||||||||||
Long-term debt | $ 11,000,000,000.0 | ||||||||||||||
Line of Credit | Term Loan Facility, $700 Million | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Maximum borrowing capacity | $ 700,000,000 | $ 700,000,000 | |||||||||||||
TUI Cruises | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Investment in a joint venture, percentage of interest | 50.00% | 50.00% | |||||||||||||
TUI Cruises | Not Primary Beneficiary | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Investment in a joint venture, percentage of interest | 50.00% | 50.00% | |||||||||||||
Pullmantur Holdings | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Investment in a joint venture, percentage of interest | 49.00% | 49.00% | |||||||||||||
|
Impairment and Credit Losses - Schedule of Goodwill (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended |
---|---|---|
Mar. 31, 2020 |
Sep. 30, 2020 |
|
Goodwill [Roll Forward] | ||
Beginning balance | $ 1,385,644 | $ 1,385,644 |
Impairment charge | (576,208) | |
Transfer of goodwill attributable to the 2019 purchase of photo operations onboard our ships | 0 | |
Foreign currency translation adjustment | 35 | |
Ending balance | 809,471 | |
Royal Caribbean International | ||
Goodwill [Roll Forward] | ||
Beginning balance | 299,226 | 299,226 |
Impairment charge | 0 | |
Transfer of goodwill attributable to the 2019 purchase of photo operations onboard our ships | (2,694) | |
Foreign currency translation adjustment | 35 | |
Ending balance | 296,567 | |
Celebrity Cruises | ||
Goodwill [Roll Forward] | ||
Beginning balance | 1,632 | 1,632 |
Impairment charge | 0 | |
Transfer of goodwill attributable to the 2019 purchase of photo operations onboard our ships | 2,694 | |
Foreign currency translation adjustment | 0 | |
Ending balance | 4,326 | |
Silversea Cruises | ||
Goodwill [Roll Forward] | ||
Beginning balance | 1,084,786 | 1,084,786 |
Impairment charge | $ (576,200) | (576,208) |
Transfer of goodwill attributable to the 2019 purchase of photo operations onboard our ships | 0 | |
Foreign currency translation adjustment | 0 | |
Ending balance | $ 508,578 |
Impairment and Credit Losses - Narrative (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Sep. 30, 2020
USD ($)
ship
|
Jun. 30, 2020
USD ($)
ship
|
Mar. 31, 2020
USD ($)
ship
|
Sep. 30, 2019
USD ($)
|
Sep. 30, 2020
USD ($)
|
Sep. 30, 2019
USD ($)
|
Dec. 31, 2019
USD ($)
|
|
Goodwill [Line Items] | |||||||
Goodwill | $ 809,471 | $ 809,471 | $ 1,385,644 | ||||
Impairment charge | (576,208) | ||||||
Indefinite-life intangible asset, impairment | $ 30,800 | ||||||
Long-lived asset impairment, number of ships | ship | 3 | 2 | 8 | ||||
Long-lived asset impairment | $ 49,700 | $ 463,000 | |||||
Property and equipment, net | $ 25,362,549 | $ 25,362,549 | 25,466,808 | ||||
Undiscounted cash flows through remaining life, weighted percentage | 50.00% | 50.00% | |||||
Undiscounted cash flows assuming ship disposal, weighted percentage | 50.00% | 50.00% | |||||
Probability of disposal | 75.00% | 75.00% | |||||
Loan loss allowance | $ 80,829 | $ 80,829 | 5,635 | ||||
Loss provision for receivables | 73,200 | 172,286 | |||||
Equity method investments, other than temporary impairment | 39,700 | ||||||
Impairment and credit losses | 89,899 | $ 0 | 1,354,514 | $ 0 | |||
Ships | |||||||
Goodwill [Line Items] | |||||||
Property and equipment, net | 400,000 | 400,000 | |||||
Ships | Monarch, Horizon, and Sovereign Ships | |||||||
Goodwill [Line Items] | |||||||
Long-lived asset impairment | 15,200 | ||||||
Construction in Progress | |||||||
Goodwill [Line Items] | |||||||
Long-lived asset impairment | 83,900 | ||||||
Pullmantur Holdings | |||||||
Goodwill [Line Items] | |||||||
Loan loss allowance | 6,000 | $ 91,600 | $ 72,800 | 6,000 | |||
Royal Caribbean International | |||||||
Goodwill [Line Items] | |||||||
Percentage of fair value in excess of carrying value | 8.00% | 30.00% | |||||
Goodwill | 296,567 | 296,567 | 299,226 | ||||
Impairment charge | 0 | ||||||
Silversea Cruises | |||||||
Goodwill [Line Items] | |||||||
Goodwill | $ 508,578 | 508,578 | $ 1,084,786 | ||||
Impairment charge | $ (576,200) | $ (576,208) |
Impairment and Credit Losses - Intangible Assets (Details) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Finite-life intangible assets, gross carrying value | $ 156,629 | $ 156,629 |
Accumulated Amortization | 30,798 | 20,329 |
Accumulated Impairment losses | 0 | |
Finite-life intangible assets, net carrying value | 125,831 | 136,300 |
Indefinite-life intangible assets, gross carrying value | 352,275 | 352,275 |
Accumulated Impairment losses | 30,800 | |
Indefinite-life intangible assets, net carrying value | 321,475 | 352,275 |
Gross Carrying Value | 508,904 | 508,904 |
Accumulated Impairment losses | 30,800 | |
Net Carrying Value | 447,306 | 488,575 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-life intangible assets, gross carrying value | 97,400 | 97,400 |
Accumulated Amortization | 12,446 | 7,576 |
Accumulated Impairment losses | 0 | |
Finite-life intangible assets, net carrying value | 84,954 | 89,824 |
Galapagos operating license | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-life intangible assets, gross carrying value | 47,669 | 47,669 |
Accumulated Amortization | 7,274 | 6,010 |
Accumulated Impairment losses | 0 | |
Finite-life intangible assets, net carrying value | 40,395 | 41,659 |
Other finite-life intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-life intangible assets, gross carrying value | 11,560 | 11,560 |
Accumulated Amortization | 11,078 | 6,743 |
Accumulated Impairment losses | 0 | |
Finite-life intangible assets, net carrying value | $ 482 | $ 4,817 |
Impairment and Credit Losses - Summary of Credit Loss Allowance (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended |
---|---|---|
Jun. 30, 2020 |
Sep. 30, 2020 |
|
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at January 1, 2020 | $ 5,635 | |
Loss provision for receivables | $ 73,200 | 172,286 |
Write-offs | (97,092) | |
Balance at September 30, 2020 | $ 80,829 |
Revenues - Narrative (Details) - USD ($) |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
Dec. 31, 2019 |
|
Capitalized Contract Cost [Line Items] | |||||
Passenger ticket revenues | $ (33,688,000) | $ 3,186,850,000 | $ 2,174,667,000 | $ 8,433,248,000 | |
Customer refunds | 189,200,000 | 32,400,000 | 189,200,000 | 32,400,000 | |
Contract liability | 167,500,000 | 167,500,000 | $ 1,700,000,000 | ||
Contract asset | 53,700,000 | 53,700,000 | 55,500,000 | ||
Immaterial Bookings | |||||
Capitalized Contract Cost [Line Items] | |||||
Customer refunds | 67,900,000 | 67,900,000 | |||
Commission, transportation and other | |||||
Capitalized Contract Cost [Line Items] | |||||
Prepaid travel agent commissions | 7,900,000 | $ 7,900,000 | $ 163,200,000 | ||
Minimum | |||||
Capitalized Contract Cost [Line Items] | |||||
Length of cruise | 1 day | ||||
Maximum | |||||
Capitalized Contract Cost [Line Items] | |||||
Length of cruise | 25 days | ||||
Port Costs | |||||
Capitalized Contract Cost [Line Items] | |||||
Passenger ticket revenues | $ 0 | $ 184,000,000.0 | $ 124,500,000 | $ 509,600,000 |
Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Total revenues | $ (33,688) | $ 3,186,850 | $ 2,174,667 | $ 8,433,248 | ||||||||||||||
Cruise Itinerary | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Total revenues | (8,646) | 3,052,116 | 1,993,102 | 8,084,498 | ||||||||||||||
Cruise Itinerary | North America | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Total revenues | [1] | (11,781) | 1,617,446 | 1,338,365 | 4,870,273 | |||||||||||||
Cruise Itinerary | Asia Pacific | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Total revenues | [2] | (3,441) | 272,062 | 397,496 | 1,089,914 | |||||||||||||
Cruise Itinerary | Europe | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Total revenues | [3] | 0 | 1,060,424 | 18,129 | 1,663,118 | |||||||||||||
Cruise Itinerary | Other regions | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Total revenues | [4] | 6,576 | 102,184 | 239,112 | 461,193 | |||||||||||||
Other Revenues | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Total revenues | [5] | $ (25,042) | $ 134,734 | $ 181,565 | $ 348,750 | |||||||||||||
Passenger Ticket | Other regions | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Percentage of revenues by country | 20.00% | [6] | 26.00% | [6] | 33.00% | 35.00% | ||||||||||||
Passenger Ticket | United States | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Percentage of revenues by country | 66.00% | 62.00% | 67.00% | 65.00% | ||||||||||||||
Passenger Ticket | United Kingdom | ||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||
Percentage of revenues by country | 14.00% | 12.00% | ||||||||||||||||
|
(Loss) Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Earnings Per Share [Abstract] | ||||
Net (Loss) Income attributable to Royal Caribbean Cruises Ltd. for basic and diluted earnings per share | $ (1,346,756) | $ 883,240 | $ (4,430,527) | $ 1,605,751 |
Weighted-average common shares outstanding (in shares) | 214,163 | 209,575 | 210,894 | 209,477 |
Dilutive effect of stock-based awards (in shares) | 0 | 546 | 0 | 555 |
Diluted weighted-average shares outstanding (in shares) | 214,163 | 210,121 | 210,894 | 210,032 |
Basic (loss) earnings per share (in dollars per share) | $ (6.29) | $ 4.21 | $ (21.01) | $ 7.67 |
Diluted (loss) earnings per share (in dollars per share) | $ (6.29) | $ 4.20 | $ (21.01) | $ 7.65 |
(Loss) Earnings Per Share - Narrative (Details) - shares |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Antidilutive securities (in shares) | 192,981,000 | 0 | 265,606,000 | 0 | ||
Convertible notes | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Antidilutive securities (in shares) | 0 | 0 | ||||
Convertible notes | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Interest rate | [1] | 4.25% | 4.25% | |||
|
Other Assets - Narrative (Details) € in Millions |
1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020
USD ($)
ship
|
Jun. 30, 2020
EUR (€)
ship
|
Apr. 30, 2016 |
Sep. 30, 2020
USD ($)
ship
|
Jun. 30, 2020
USD ($)
ship
|
Mar. 31, 2020
USD ($)
|
Sep. 30, 2019
USD ($)
|
Sep. 30, 2020
USD ($)
ship
|
Sep. 30, 2019
USD ($)
|
Sep. 30, 2020
EUR (€)
ship
|
Dec. 31, 2019
USD ($)
|
Dec. 31, 2019
EUR (€)
|
|
Other Assets | ||||||||||||
Number of cruise ships held-for-sale | ship | 3 | 3 | 3 | |||||||||
Equity method investments, other than temporary impairment | $ 39,700,000 | |||||||||||
Proceeds from collection of advance to affiliate | $ 15,581,000 | $ 27,697,000 | ||||||||||
TUI Cruises GmbH joint venture | ||||||||||||
Other Assets | ||||||||||||
Percentage of ownership interest | 50.00% | 50.00% | 50.00% | |||||||||
TUI Cruises GmbH joint venture | Not Primary Beneficiary | ||||||||||||
Other Assets | ||||||||||||
Percentage of ownership interest | 50.00% | 50.00% | 50.00% | |||||||||
Equity contribution | $ 84,200,000 | € 75.0 | ||||||||||
Investments in entity | $ 617,800,000 | $ 617,800,000 | $ 598,100,000 | |||||||||
Underlying equity in net assets | 467,400,000 | 467,400,000 | 443,100,000 | |||||||||
Advances to affiliate | $ 144,100,000 | $ 144,100,000 | € 122.9 | 149,500,000 | € 133.2 | |||||||
TUI Cruises GmbH joint venture | TUI cruise ships | ||||||||||||
Other Assets | ||||||||||||
Restriction on reduction of current ownership interest (as a percent) | 37.55% | 37.55% | 37.55% | |||||||||
TUI Cruises GmbH joint venture | Splendour of the Seas | Not Primary Beneficiary | ||||||||||||
Other Assets | ||||||||||||
Debt instrument, term | 10 years | |||||||||||
Pullmantur Holdings | ||||||||||||
Other Assets | ||||||||||||
Percentage of ownership interest | 49.00% | 49.00% | 49.00% | |||||||||
Impairment loss | $ 69,000,000.0 | |||||||||||
Reorganization expenses | 21,600,000 | |||||||||||
Pullmantur Holdings | Not Primary Beneficiary | ||||||||||||
Other Assets | ||||||||||||
Advances to affiliate | $ 17,600,000 | $ 17,600,000 | € 15.0 | |||||||||
Interest rate on loan provided to related party (as a percent) | 6.50% | 6.50% | 6.50% | |||||||||
Retained ownership percentage of subsidiary after sale | 49.00% | |||||||||||
Facility receivable, writeoff | $ 1,900,000 | $ 18,300,000 | 12,500,000 | |||||||||
Proceeds from credit facility | 12,300,000 | € 11.0 | ||||||||||
Maximum loss exposure | 49,700,000 | |||||||||||
Grand Bahamas Shipyard Ltd. | ||||||||||||
Other Assets | ||||||||||||
Proceeds from collection of advance to affiliate | $ 7,600,000 | $ 0 | 14,200,000 | |||||||||
Grand Bahamas Shipyard Ltd. | Not Primary Beneficiary | ||||||||||||
Other Assets | ||||||||||||
Percentage of ownership interest | 40.00% | 40.00% | 40.00% | |||||||||
Investments in entity | $ 0 | $ 0 | 47,900,000 | |||||||||
Underlying equity in net assets | 27,000,000.0 | |||||||||||
Maximum loss exposure | $ 21,100,000 | 21,100,000 | ||||||||||
Related party transaction, payment amount for ship repair and maintenance | $ 400,000 | $ 200,000 | $ 45,500,000 | |||||||||
Equity method investments, other than temporary impairment | $ 30,100,000 | |||||||||||
Grand Bahamas Shipyard Ltd. | Not Primary Beneficiary | Non-accrual status of advances to affiliates | ||||||||||||
Other Assets | ||||||||||||
Advances to affiliate | $ 20,900,000 | |||||||||||
Interest rate on loan provided to related party (as a percent) | 5.75% | 5.75% | 5.75% | |||||||||
Grand Bahamas Shipyard Ltd. | Not Primary Beneficiary | Non-accrual status of advances to affiliates | LIBOR | Minimum | ||||||||||||
Other Assets | ||||||||||||
Debt instrument, basis spread on variable rate | 2.00% | |||||||||||
Grand Bahamas Shipyard Ltd. | Not Primary Beneficiary | Non-accrual status of advances to affiliates | LIBOR | Maximum | ||||||||||||
Other Assets | ||||||||||||
Debt instrument, basis spread on variable rate | 3.75% | |||||||||||
Splendour of the Seas | TUI Cruises GmbH joint venture | Not Primary Beneficiary | ||||||||||||
Other Assets | ||||||||||||
Interest rate on loan provided to related party (as a percent) | 6.25% | |||||||||||
Debt, guaranteed percentage | 50.00% | |||||||||||
TUI Cruises GmbH joint venture | Hapag-Lloyd Cruises | ||||||||||||
Other Assets | ||||||||||||
Purchase price | $ 1,300,000,000 | € 1,200.0 | ||||||||||
TUI Cruises GmbH joint venture | Luxury Liners | Hapag-Lloyd Cruises | ||||||||||||
Other Assets | ||||||||||||
Number of cruise ships acquired | ship | 2 | 2 | 2 | |||||||||
TUI Cruises GmbH joint venture | Expedition Ships | Hapag-Lloyd Cruises | ||||||||||||
Other Assets | ||||||||||||
Number of cruise ships acquired | ship | 2 | 2 | 2 | |||||||||
Springwater Capital LLC | Pullmantur Holdings | ||||||||||||
Other Assets | ||||||||||||
Percentage of ownership interest | 51.00% | 51.00% | 51.00% |
Other Assets - Share of Equity Income From Investments (Details) € in Millions |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2020
USD ($)
|
Sep. 30, 2019
USD ($)
|
Sep. 30, 2019
EUR (€)
|
Sep. 30, 2020
USD ($)
|
Sep. 30, 2019
USD ($)
|
Sep. 30, 2019
EUR (€)
|
|||
Schedule of Investments [Line Items] | ||||||||
Share of equity (loss) income from investments | $ (78,013,000) | $ 103,654,000 | $ (140,258,000) | $ 170,393,000 | ||||
Dividends received | [1] | 0 | 67,713,000 | 2,215,000 | 148,285,000 | |||
TUI Cruises | ||||||||
Schedule of Investments [Line Items] | ||||||||
Dividends received | $ 0 | $ 88,500,000 | € 80.0 | $ 0 | $ 190,300,000 | € 170.0 | ||
|
Other Assets - Notes Receivable Due From Equity Instruments (Details) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
||||
---|---|---|---|---|---|---|
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||||
Total notes receivable due from equity investments | $ 165,203 | $ 184,558 | ||||
Less-current portion | [1] | 25,783 | 25,933 | |||
Long-term portion | [2] | $ 139,420 | $ 158,625 | |||
|
Other Assets - Related Party Transactions (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Other Assets [Abstract] | ||||
Revenues | $ 5,619 | $ 11,857 | $ 15,837 | $ 35,714 |
Expenses | $ 1,223 | $ 1,365 | $ 3,369 | $ 3,450 |
Debt - Summary of Debt (Details) - USD ($) |
9 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 |
Feb. 29, 2020 |
Dec. 31, 2019 |
|||||||
Debt Instrument [Line Items] | |||||||||
Total debt | [1] | $ 19,206,116,000 | $ 11,241,483,000 | ||||||
Less: unamortized debt issuance costs | (315,669,000) | (206,607,000) | |||||||
Total debt, net of unamortized debt issuance costs | 18,890,447,000 | 11,034,876,000 | |||||||
Less—current portion including commercial paper | (1,256,710,000) | (2,620,766,000) | |||||||
Long-term portion | $ 17,633,737,000 | $ 8,414,110,000 | |||||||
Weighted average interest rate | 6.00% | 3.99% | |||||||
Unsecured UK Commercial paper | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt, gross | $ 386,683,000 | $ 0 | |||||||
USD Commercial paper | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt, gross | 0 | 1,434,180,000 | |||||||
Total fixed rate debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt, gross | 10,920,535,000 | 5,215,452,000 | |||||||
Unsecured senior notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt, gross | $ 2,765,079,000 | 1,746,280,000 | |||||||
Unsecured senior notes | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 2.65% | ||||||||
Unsecured senior notes | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 9.13% | ||||||||
Secured senior notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt, gross | $ 3,893,665,000 | 662,398,000 | |||||||
Secured senior notes | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 7.25% | ||||||||
Secured senior notes | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 11.50% | ||||||||
Unsecured term loans | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt, gross | $ 3,305,031,000 | 2,806,774,000 | |||||||
Unsecured term loans | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 2.53% | ||||||||
Unsecured term loans | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 5.41% | ||||||||
Convertible notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | [2] | 4.25% | |||||||
Long-term debt, gross | $ 956,760,000 | 0 | |||||||
Total variable rate debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt, gross | $ 8,068,628,000 | 5,795,773,000 | |||||||
Unsecured revolving credit facilities | |||||||||
Debt Instrument [Line Items] | |||||||||
Current interest rate | [2],[3] | 1.48% | |||||||
Long-term debt, gross | [3] | $ 3,382,000,000 | 165,000,000 | ||||||
Maximum borrowing capacity | $ 3,400,000,000 | ||||||||
Unsecured revolving credit facilities | Unsecured Revolving Credit Facility Due 2024 | |||||||||
Debt Instrument [Line Items] | |||||||||
Current interest rate | 1.53% | ||||||||
Maximum borrowing capacity | $ 1,900,000,000 | $ 1,700,000,000 | |||||||
Facility fee | 0.20% | ||||||||
Unsecured revolving credit facilities | Unsecured Revolving Credit Facility Due 2024 | LIBOR | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, basis spread on variable rate | 1.30% | ||||||||
Unsecured revolving credit facilities | Unsecured Revolving Credit Facility Due 2022 | |||||||||
Debt Instrument [Line Items] | |||||||||
Current interest rate | 1.53% | ||||||||
Maximum borrowing capacity | $ 1,500,000,000 | $ 1,200,000,000 | |||||||
Facility fee | 0.20% | ||||||||
Unsecured revolving credit facilities | Unsecured Revolving Credit Facility Due 2022 | LIBOR | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, basis spread on variable rate | 1.30% | ||||||||
USD Unsecured term loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt, gross | $ 3,641,968,000 | 3,519,853,000 | |||||||
USD Unsecured term loan | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 0.74% | ||||||||
USD Unsecured term loan | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 4.05% | ||||||||
Euro Unsecured term loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt, gross | $ 657,977,000 | 676,740,000 | |||||||
Euro Unsecured term loan | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 1.15% | ||||||||
Euro Unsecured term loan | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 1.58% | ||||||||
Finance lease liabilities | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt, gross | $ 216,953,000 | $ 230,258,000 | |||||||
|
Debt - Narrative (Details) |
1 Months Ended | 9 Months Ended | 25 Months Ended | 29 Months Ended | 31 Months Ended | 33 Months Ended | 34 Months Ended | 85 Months Ended | 109 Months Ended | ||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 01, 2020 |
Mar. 31, 2021 |
Oct. 31, 2020
USD ($)
$ / shares
|
Sep. 30, 2020
USD ($)
|
Aug. 31, 2020
USD ($)
|
Jun. 30, 2020
USD ($)
$ / shares
|
Jun. 30, 2020
GBP (£)
|
Mar. 31, 2020
USD ($)
board_member
|
Jun. 30, 2019
USD ($)
|
Sep. 30, 2020
USD ($)
|
Sep. 30, 2020
GBP (£)
|
Sep. 30, 2019
USD ($)
|
Jun. 01, 2022 |
Mar. 14, 2023
day
|
Aug. 14, 2023
day
|
Mar. 14, 2023
day
|
Aug. 14, 2023
day
|
Jun. 30, 2026 |
Jun. 30, 2028 |
Sep. 30, 2021
USD ($)
|
Sep. 30, 2020
GBP (£)
|
May 31, 2020
USD ($)
ship
|
Feb. 29, 2020
USD ($)
|
Dec. 31, 2019
USD ($)
|
Dec. 31, 2019
GBP (£)
|
|||
Long-Term Debt | |||||||||||||||||||||||||||
Loss on extinguishment of secured senior term loan | $ 41,109,000 | $ 6,326,000 | |||||||||||||||||||||||||
Debt instrument, collateral amount | $ 80,000,000 | 80,000,000 | |||||||||||||||||||||||||
Proceeds allocated to paid-in-capital | $ 209,000,000.0 | ||||||||||||||||||||||||||
Debt issuance costs | 33,100,000 | ||||||||||||||||||||||||||
Issuance costs allocated to paid-in capital | 6,200,000 | ||||||||||||||||||||||||||
Commercial paper | £ | £ 300,000,000.0 | £ 300,000,000.0 | |||||||||||||||||||||||||
Debt amortization and financial covenant holiday, amount | 900,000,000 | $ 900,000,000 | |||||||||||||||||||||||||
Amortization period | 4 years | 4 years | |||||||||||||||||||||||||
Credit agency fees, percentage of outstanding loan balance | 2.97% | 2.97% | |||||||||||||||||||||||||
Long-term debt | 6,200,000,000 | $ 6,200,000,000 | |||||||||||||||||||||||||
Debt covenant, monthly minimum liquidity | 500,000,000.0 | ||||||||||||||||||||||||||
Finance lease obligation | 31,500,000 | 31,500,000 | $ 55,600,000 | ||||||||||||||||||||||||
Subsequent Event | |||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||
Debt covenant, monthly minimum liquidity | $ 350,000,000.0 | ||||||||||||||||||||||||||
Revolving Credit Facility | |||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||
Increase to revolving credit facility | $ 600,000,000 | $ 600,000,000 | |||||||||||||||||||||||||
Long-term debt | 11,000,000,000.0 | ||||||||||||||||||||||||||
Minimum fixed charge coverage ratio | 125.00% | 125.00% | 125.00% | ||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||
Proceeds from debt issuance | 907,900,000 | ||||||||||||||||||||||||||
Scenario, Forecast | |||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||
Debt instrument, collateral amount | $ 60,600,000 | ||||||||||||||||||||||||||
Maximum | Contract With Customer, Liability, Up-Front Payment Arrangement | |||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||
Credit agency fees, percentage of loan amount payable | 2.37% | 2.37% | |||||||||||||||||||||||||
Minimum | Contract With Customer, Liability, Up-Front Payment Arrangement | |||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||
Credit agency fees, percentage of loan amount payable | 2.35% | 2.35% | |||||||||||||||||||||||||
Commercial Paper | |||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||
Borrowings outstanding | $ 387,900,000 | $ 387,900,000 | £ 300,000,000.0 | £ 1,400,000,000 | |||||||||||||||||||||||
Revolving Credit Facility | |||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||
Maximum borrowing capacity | $ 3,400,000,000 | $ 3,400,000,000 | |||||||||||||||||||||||||
Unsecured term loans | Maximum | |||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||
Interest rate | 5.41% | 5.41% | 5.41% | ||||||||||||||||||||||||
Unsecured term loans | Minimum | |||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||
Interest rate | 2.53% | 2.53% | 2.53% | ||||||||||||||||||||||||
Secured senior notes | Maximum | |||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||
Interest rate | 11.50% | 11.50% | 11.50% | ||||||||||||||||||||||||
Secured senior notes | Minimum | |||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||
Interest rate | 7.25% | 7.25% | 7.25% | ||||||||||||||||||||||||
Unsecured senior notes | Maximum | |||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||
Interest rate | 9.13% | 9.13% | 9.13% | ||||||||||||||||||||||||
Unsecured senior notes | Minimum | |||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||
Interest rate | 2.65% | 2.65% | 2.65% | ||||||||||||||||||||||||
Convertible notes | |||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||
Interest rate | [1] | 4.25% | 4.25% | 4.25% | |||||||||||||||||||||||
Debt instrument, face amount | $ 1,150,000,000 | $ 1,150,000,000 | $ 1,150,000,000 | ||||||||||||||||||||||||
Unsecured Revolving Credit Facility Due 2024 | Revolving Credit Facility | |||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||
Maximum borrowing capacity | 1,900,000,000 | 1,900,000,000 | $ 1,700,000,000 | ||||||||||||||||||||||||
Increase to revolving credit facility | $ 200,000,000 | ||||||||||||||||||||||||||
Unsecured Revolving Credit Facility Due 2022 | Revolving Credit Facility | |||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||
Maximum borrowing capacity | 1,500,000,000 | 1,500,000,000 | $ 1,200,000,000 | ||||||||||||||||||||||||
Increase to revolving credit facility | $ 400,000,000 | ||||||||||||||||||||||||||
Celebrity Apex Unsecured Term Loan | Celebrity Apex | Bpifrance Assurance Export | |||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||
Percentage guaranteed by export credit agency | 100.00% | ||||||||||||||||||||||||||
Celebrity Apex Unsecured Term Loan | Unsecured term loans | |||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||
Unsecured debt | $ 722,200,000 | ||||||||||||||||||||||||||
Debt instrument, term | 12 years | ||||||||||||||||||||||||||
Interest rate | 3.23% | ||||||||||||||||||||||||||
Senior Secured Term Loan Agreement | Secured term loan | |||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||
Increase to revolving credit facility | $ 150,000,000 | ||||||||||||||||||||||||||
Debt instrument, term | 364 days | ||||||||||||||||||||||||||
Debt instrument, face amount | $ 2,200,000,000 | 2,350,000,000 | |||||||||||||||||||||||||
Debt instrument, extension period | 364 days | ||||||||||||||||||||||||||
Extension fee percent | 1.00% | ||||||||||||||||||||||||||
Duration fee percentage | 0.25% | ||||||||||||||||||||||||||
Number of board members | board_member | 2 | ||||||||||||||||||||||||||
Senior Secured Term Loan Agreement | Secured term loan | Board Member One | Director | |||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||
Related party transaction | $ 100,000,000 | ||||||||||||||||||||||||||
Senior Secured Term Loan Agreement | Secured term loan | Board Member Two | Director | |||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||
Related party transaction | $ 100,000,000 | ||||||||||||||||||||||||||
Senior Secured Notes | Secured senior notes | |||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||
Debt instrument, face amount | $ 3,320,000,000 | ||||||||||||||||||||||||||
Percentage of equity interests pledged as collateral | 100.00% | ||||||||||||||||||||||||||
Number of ships owned by subsidiaries | ship | 28 | ||||||||||||||||||||||||||
Senior Secured Notes | Secured senior notes | Scenario, Forecast | |||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||
Redemption price, principal of amount redeemed | 100.00% | ||||||||||||||||||||||||||
Senior Secured Notes | Secured senior notes | Maximum | |||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||
Debt instrument, collateral amount | $ 1,660,000,000 | ||||||||||||||||||||||||||
Senior Secured Notes due 2023 | Secured senior notes | |||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||
Interest rate | 10.875% | ||||||||||||||||||||||||||
Debt instrument, face amount | $ 1,000,000,000.0 | ||||||||||||||||||||||||||
Senior Secured Notes due 2025 | Secured senior notes | |||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||
Interest rate | 11.50% | ||||||||||||||||||||||||||
Debt instrument, face amount | $ 2,320,000,000 | ||||||||||||||||||||||||||
Senior Guaranteed Notes | Unsecured senior notes | |||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||
Interest rate | 9.125% | ||||||||||||||||||||||||||
Debt instrument, face amount | $ 1,000,000,000.0 | ||||||||||||||||||||||||||
Percentage of equity interests pledged as collateral | 100.00% | ||||||||||||||||||||||||||
Convertible Notes 4.25%, Due 2023 | Convertible notes | |||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||
Interest rate | 4.25% | ||||||||||||||||||||||||||
Debt instrument, face amount | $ 1,150,000,000 | ||||||||||||||||||||||||||
Redemption price, principal of amount redeemed | 100.00% | 100.00% | |||||||||||||||||||||||||
Conversion ratio | 0.0138672 | 0.0138672 | |||||||||||||||||||||||||
Conversion price (in dollars per share) | $ / shares | $ 72.11 | ||||||||||||||||||||||||||
Convertible Notes 4.25%, Due 2023 | Convertible notes | Subsequent Event | |||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||
Redemption price, principal of amount redeemed | 100.00% | ||||||||||||||||||||||||||
Convertible Notes 4.25%, Due 2023 | Convertible notes | Scenario, Forecast | |||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||
Number of trading days | day | 20 | ||||||||||||||||||||||||||
Consecutive trading days | day | 30 | 10 | |||||||||||||||||||||||||
Percentage of stock price | 130.00% | 98.00% | |||||||||||||||||||||||||
Number of days to convert debt | day | 5 | ||||||||||||||||||||||||||
Term Loan Facility, $700 Million | Line of Credit | |||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||
Maximum borrowing capacity | 700,000,000 | $ 700,000,000 | 700,000,000 | ||||||||||||||||||||||||
Term loan facility increase limit | $ 300,000,000 | ||||||||||||||||||||||||||
Senior Convertible Notes Due 2023 | Convertible notes | Subsequent Event | |||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||
Interest rate | 2.875% | ||||||||||||||||||||||||||
Debt instrument, face amount | $ 575,000,000 | ||||||||||||||||||||||||||
Conversion ratio | 0.0121212 | ||||||||||||||||||||||||||
Conversion price (in dollars per share) | $ / shares | $ 82.50 | ||||||||||||||||||||||||||
Senior Convertible Notes Due 2023 | Convertible notes | Scenario, Forecast | |||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||
Number of trading days | day | 20 | ||||||||||||||||||||||||||
Consecutive trading days | day | 30 | 10 | |||||||||||||||||||||||||
Percentage of stock price | 130.00% | 98.00% | |||||||||||||||||||||||||
Number of days to convert debt | day | 5 | ||||||||||||||||||||||||||
Senior Notes Due 2020 | Unsecured senior notes | Subsequent Event | |||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||
Interest rate | 2.65% | ||||||||||||||||||||||||||
Term Loan Due 2023 | Unsecured term loans | |||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||
Debt instrument, face amount | $ 130,000,000.0 | $ 130,000,000.0 | |||||||||||||||||||||||||
Silver Moon Credit Agreement | Unsecured term loans | |||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||
Debt instrument, face amount | $ 300,000,000 | ||||||||||||||||||||||||||
Silver Moon Credit Agreement | Unsecured term loans | Scenario, Forecast | |||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||
Repayment advance notice | 90 days | ||||||||||||||||||||||||||
Periodic payment, percentage of principal | 4.17% | ||||||||||||||||||||||||||
LIBOR | Unsecured Revolving Credit Facility Due 2024 | Revolving Credit Facility | |||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||
Debt instrument, basis spread on variable rate | 1.30% | 1.30% | |||||||||||||||||||||||||
LIBOR | Unsecured Revolving Credit Facility Due 2022 | Revolving Credit Facility | |||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||
Debt instrument, basis spread on variable rate | 1.30% | 1.30% | |||||||||||||||||||||||||
LIBOR | Senior Secured Term Loan Agreement | Secured term loan | |||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||
Debt instrument, basis spread on variable rate | 2.50% | 2.25% | |||||||||||||||||||||||||
LIBOR | Senior Secured Term Loan Agreement | Secured term loan | Scenario, Forecast | |||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||
Debt instrument, basis spread on variable rate | 2.75% | ||||||||||||||||||||||||||
LIBOR | Term Loan Facility, $700 Million | Line of Credit | |||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||
Debt instrument, basis spread on variable rate | 3.75% | ||||||||||||||||||||||||||
LIBOR | Silver Moon Credit Agreement | Unsecured term loans | |||||||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||||||
Debt instrument, basis spread on variable rate | 1.50% | ||||||||||||||||||||||||||
|
Debt - Schedule of Convertible Notes (Details) - Convertible notes - USD ($) |
9 Months Ended | |
---|---|---|
Sep. 30, 2020 |
Jun. 30, 2020 |
|
Debt Instrument [Line Items] | ||
Principal | $ 1,150,000,000 | $ 1,150,000,000 |
Less: Unamortized debt discount and transaction costs | 220,117,000 | |
Carrying value | 929,883,000 | |
Contractual interest expense | 15,206,000 | |
Amortization of debt discount and transaction costs | 24,920,000 | |
Interest expense | $ 40,126,000 |
Debt - Schedule of Maturities (Details) $ in Thousands |
Sep. 30, 2020
USD ($)
|
---|---|
Debt Disclosure [Abstract] | |
Remainder of 2020 | $ 333,655 |
2021 | 1,379,400 |
2022 | 4,322,300 |
2023 | 4,327,465 |
2024 | 3,519,209 |
Thereafter | 5,008,418 |
Total | $ 18,890,447 |
Leases - Narrative (Details) - USD ($) |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Sep. 30, 2020 |
Jun. 30, 2020 |
Mar. 31, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
Dec. 31, 2016 |
|
Lessee, Lease, Description [Line Items] | |||||||
Right-of-use assets, impairment | $ 13,300,000 | $ 45,900,000 | |||||
Variable lease cost | $ 0 | $ 17,300,000 | $ 25,600,000 | $ 73,100,000 | |||
Pullmantur Holdings | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Percentage of subsidiary which has been sold | 51.00% | ||||||
Port of Miami Terminal | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Cash collateral | $ 181,100,000 | $ 181,100,000 | |||||
Minimum | Real Estate | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Renewal term | 1 year | 1 year | |||||
Minimum | Berthing Agreement | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Renewal term | 1 year | 1 year | |||||
Maximum | Real Estate | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Renewal term | 10 years | 10 years | |||||
Maximum | Berthing Agreement | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Renewal term | 20 years | 20 years |
Leases - Schedule of Lease Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended |
---|---|---|
Sep. 30, 2020 |
Sep. 30, 2020 |
|
Financial lease costs: | ||
Amortization of right-of-use-assets | $ 946 | $ 2,941 |
Interest on lease liabilities | 557 | 3,754 |
Total lease costs | 32,016 | 95,599 |
Commission, transportation and other | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease costs | 17,648 | 50,268 |
Other operating expenses | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease costs | 7,179 | 21,920 |
Marketing, selling and administrative expenses | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease costs | $ 5,686 | $ 16,716 |
Leases - Schedule of Lease Terms and Discount Rates (Details) |
Sep. 30, 2020 |
---|---|
Weighted average years of the remaining lease term | |
Operating leases | 7 years 9 months 18 days |
Finance leases | 40 years 4 months 24 days |
Weighted average discount rate | |
Operating leases | 4.36% |
Finance leases | 6.75% |
Leases - Supplemental Noncash Information (Details) $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2020
USD ($)
| |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 97,903 |
Operating cash flows from finance leases | 3,754 |
Financing cash flows from finance leases | $ 13,291 |
Leases - Schedule of Lease Maturities (Details) $ in Thousands |
Sep. 30, 2020
USD ($)
|
---|---|
Operating Leases | |
Remainder of 2020 | $ 34,259 |
2021 | 122,125 |
2022 | 110,127 |
2023 | 104,240 |
2024 | 75,622 |
Thereafter | 417,143 |
Total lease payments | 863,516 |
Less: Interest | (214,771) |
Present value of lease liabilities | 648,745 |
Finance Leases | |
Remainder of 2020 | 34,862 |
2021 | 35,132 |
2022 | 23,480 |
2023 | 12,539 |
2024 | 12,529 |
Thereafter | 407,078 |
Total lease payments | 525,620 |
Less: Interest | (308,667) |
Present value of lease liabilities | $ 216,953 |
Redeemable Noncontrolling Interest - Narrative (Details) - USD ($) |
3 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Jul. 09, 2020 |
Sep. 30, 2020 |
Jun. 30, 2020 |
Dec. 31, 2019 |
Sep. 30, 2019 |
Jun. 30, 2019 |
Dec. 31, 2018 |
Jul. 31, 2018 |
|
Redeemable Noncontrolling Interest [Line Items] | ||||||||
Interest acquired | 33.30% | |||||||
Common stock, shares issued (in shares) | 5,200,000 | 242,502,983 | 236,547,842 | |||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | |||||
Redeemable noncontrolling interest | $ 0 | $ 0 | $ 584,869,000 | $ 569,981,000 | $ 563,394,000 | $ 556,770,000 | $ 542,020,000 | |
Royal Caribbean International | Silversea Cruises Group | ||||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||||
Ownership percentage by noncontrolling owners | 33.30% | |||||||
Silversea Cruises | ||||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||||
Interest acquired | 33.30% | 33.30% | ||||||
Common stock, shares issued (in shares) | 5,200,000 | |||||||
Silversea Cruises | ||||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||||
Percentage of business acquired | 66.70% | 66.70% |
Redeemable Noncontrolling Interest - Schedule of Redeemable Noncontrolling Interest (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||
Beginning balance | $ 584,869 | $ 556,770 | $ 569,981 | $ 542,020 |
Net income attributable to noncontrolling interest, including the contractual accretion of the put options | 7,444 | 7,125 | 22,332 | 21,375 |
Acquisition of noncontrolling interest | (592,313) | (592,313) | 0 | |
Distribution to noncontrolling interest | (501) | (501) | ||
Other | 500 | |||
Ending balance | $ 0 | $ 563,394 | $ 0 | $ 563,394 |
Commitments and Contingencies - Narrative (Details) € in Millions, $ in Millions |
1 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2019
EUR (€)
berth
|
Sep. 30, 2019
EUR (€)
agreement
berth
|
Aug. 31, 2019
lawsuit
|
Sep. 30, 2020
USD ($)
berth
ship
|
|
Commitments and Contingencies | ||||
Ship passenger capacity berths | 52,530 | |||
Fixed interest rate on long-term debt | 62.10% | 65.90% | ||
Number of claims filed | lawsuit | 2 | |||
Number of months considered to determine requirement of prepayment of debts | 24 months | |||
Cruise ships on order | ||||
Commitments and Contingencies | ||||
Aggregate cost of ships on order, not including TUI cruises on order | $ | $ 14,100.0 | |||
Deposit for the purchase of ships expected to enter service | $ | $ 770.7 | |||
Percentage of aggregate cost exposed to fluctuations in the euro exchange rate | 65.90% | 64.40% | ||
Cruise Ships, Expected Delivery Between July 2020 And December 2021 | ||||
Commitments and Contingencies | ||||
Number of ships under construction | ship | 6 | |||
Unsecured term loans | Minimum | ||||
Commitments and Contingencies | ||||
Interest rate | 2.53% | |||
Line of Credit | Minimum | ||||
Commitments and Contingencies | ||||
Debt instrument covenant, minimum percentage of ownership by a person | 50.00% | |||
Sixth Oasis Class Ship Term Loan | Sixth Oasis Class Ship | ||||
Commitments and Contingencies | ||||
Bank financing commitment percentage | 80.00% | |||
Sixth Oasis Class Ship Term Loan | Unsecured term loans | Sixth Oasis Class Ship | ||||
Commitments and Contingencies | ||||
Unsecured term loan, construction financing commitment per ship | € 1,300.0 | $ 1,500.0 | ||
Unsecured term loan, amortization period | 12 years | |||
Interest rate | 3.00% | |||
Third Icon Class Ship Term Loan | Icon Class, Ship Three | ||||
Commitments and Contingencies | ||||
Bank financing commitment percentage | 80.00% | |||
Third Icon Class Ship Term Loan | Unsecured term loans | Icon Class, Ship Three | ||||
Commitments and Contingencies | ||||
Unsecured term loan, construction financing commitment per ship | € 1,400.0 | $ 1,600.0 | ||
Unsecured term loan, amortization period | 12 years | |||
Percentage of debt bearing fixed interest | 60.00% | |||
Fixed interest rate on long-term debt | 3.29% | |||
Third Icon Class Ship Term Loan | Unsecured term loans | Icon Class, Ship Three | LIBOR | ||||
Commitments and Contingencies | ||||
Debt instrument, basis spread on variable rate | 0.85% | |||
Debt Securities | Minimum | ||||
Commitments and Contingencies | ||||
Debt instrument covenant, minimum percentage of ownership by a person | 50.00% | |||
Royal Caribbean International Cruise Ships | Cruise ships on order | ||||
Commitments and Contingencies | ||||
Ship passenger capacity berths | 32,400 | |||
Royal Caribbean International Cruise Ships | Quantum Class Ship | Cruise ships on order | ||||
Commitments and Contingencies | ||||
Number of ships under construction | ship | 1 | |||
Royal Caribbean International Cruise Ships | Oasis Class Ship | Cruise ships on order | ||||
Commitments and Contingencies | ||||
Number of ships under construction | ship | 2 | |||
Royal Caribbean International Cruise Ships | Project Icon Ships | Cruise ships on order | ||||
Commitments and Contingencies | ||||
Number of ships under construction | ship | 3 | |||
Royal Caribbean International Cruise Ships | Sixth Oasis Class Ship | ||||
Commitments and Contingencies | ||||
Ship passenger capacity berths | 5,700 | |||
Royal Caribbean International Cruise Ships | Icon Class, Ship Three | ||||
Commitments and Contingencies | ||||
Ship passenger capacity berths | 5,600 | |||
Celebrity Cruises | Edge Class Ships | Cruise ships on order | ||||
Commitments and Contingencies | ||||
Number of ships under construction | ship | 2 | |||
Ship passenger capacity berths | 6,500 | |||
Silversea Cruises | Silversea Cruises | Cruise ships on order | ||||
Commitments and Contingencies | ||||
Number of ships under construction | ship | 4 | |||
Ship passenger capacity berths | 2,300 | |||
Silversea Cruises | Evolution Class, Unnamed Ship One | ||||
Commitments and Contingencies | ||||
Ship passenger capacity berths | 600 | 600 | ||
Silversea Cruises | Evolution Class, Unnamed Ship Two | ||||
Commitments and Contingencies | ||||
Ship passenger capacity berths | 600 | 600 | ||
Silversea Cruises | Line of Credit | Unsecured term loans | ||||
Commitments and Contingencies | ||||
Number of credit agreements | agreement | 2 | |||
Silversea Cruises | Evolution Class, Ship One Credit Agreement | Unsecured term loans | Evolution Class, Unnamed Ship One | ||||
Commitments and Contingencies | ||||
Bank financing commitment percentage | 80.00% | |||
Unsecured term loan, construction financing commitment per ship | € 351.6 | $ 412.3 | ||
Unsecured term loan, amortization period | 12 years | |||
Interest rate | 4.14% | |||
Silversea Cruises | Evolution Class, Ship One Credit Agreement | Unsecured term loans | Evolution Class, Unnamed Ship One | LIBOR | ||||
Commitments and Contingencies | ||||
Debt instrument, basis spread on variable rate | 0.79% | |||
Silversea Cruises | Evolution Class Ship Two Credit Agreement | Unsecured term loans | Evolution Class, Unnamed Ship Two | ||||
Commitments and Contingencies | ||||
Bank financing commitment percentage | 80.00% | |||
Unsecured term loan, construction financing commitment per ship | € 359.0 | $ 421.0 | ||
Unsecured term loan, amortization period | 12 years | |||
Interest rate | 4.18% | |||
Silversea Cruises | Evolution Class Ship Two Credit Agreement | Unsecured term loans | Evolution Class, Unnamed Ship Two | LIBOR | ||||
Commitments and Contingencies | ||||
Debt instrument, basis spread on variable rate | 0.83% | |||
Euler Hermes | Icon Class, Ship Three | ||||
Commitments and Contingencies | ||||
Percentage guaranteed by export credit agency | 95.00% | |||
Euler Hermes | Unsecured term loans | ||||
Commitments and Contingencies | ||||
Percentage guaranteed by export credit agency | 95.00% | |||
Bpifrance Assurance Export | Sixth Oasis Class Ship | ||||
Commitments and Contingencies | ||||
Percentage guaranteed by export credit agency | 100.00% | |||
Finnvera plc | Icon Class, Ship Three | ||||
Commitments and Contingencies | ||||
Percentage guaranteed by export credit agency | 95.00% |
Commitment and Contingencies - Capital Commitments (Details) - berth |
Sep. 30, 2020 |
Sep. 30, 2019 |
---|---|---|
Long-term Purchase Commitment [Line Items] | ||
Ship passenger capacity berths | 52,530 | |
Royal Caribbean International | Wonder of the Seas | ||
Long-term Purchase Commitment [Line Items] | ||
Ship passenger capacity berths | 5,700 | |
Royal Caribbean International | Oasis Class Ship | ||
Long-term Purchase Commitment [Line Items] | ||
Ship passenger capacity berths | 5,700 | |
Royal Caribbean International | Odyssey of the Seas | ||
Long-term Purchase Commitment [Line Items] | ||
Ship passenger capacity berths | 4,200 | |
Royal Caribbean International | Icon Class, Unnamed Ship One | ||
Long-term Purchase Commitment [Line Items] | ||
Ship passenger capacity berths | 5,600 | |
Royal Caribbean International | Icon Class, Unnamed Ship Two | ||
Long-term Purchase Commitment [Line Items] | ||
Ship passenger capacity berths | 5,600 | |
Royal Caribbean International | Icon Class, Unnamed Ship Three | ||
Long-term Purchase Commitment [Line Items] | ||
Ship passenger capacity berths | 5,600 | |
Celebrity Cruises | Celebrity Beyond | ||
Long-term Purchase Commitment [Line Items] | ||
Ship passenger capacity berths | 3,250 | |
Celebrity Cruises | Edge Class, Unnamed | ||
Long-term Purchase Commitment [Line Items] | ||
Ship passenger capacity berths | 3,250 | |
Silversea Cruises | Silver Moon (1) | ||
Long-term Purchase Commitment [Line Items] | ||
Ship passenger capacity berths | 550 | |
Silversea Cruises | Silver Dawn | ||
Long-term Purchase Commitment [Line Items] | ||
Ship passenger capacity berths | 550 | |
Silversea Cruises | Evolution Class, Unnamed Ship One | ||
Long-term Purchase Commitment [Line Items] | ||
Ship passenger capacity berths | 600 | 600 |
Silversea Cruises | Evolution Class, Unnamed Ship Two | ||
Long-term Purchase Commitment [Line Items] | ||
Ship passenger capacity berths | 600 | 600 |
TUI Cruises | Mein Schiff 7 | ||
Long-term Purchase Commitment [Line Items] | ||
Ship passenger capacity berths | 2,900 | |
TUI Cruises | TUI Cruises, Unnamed Ship One | ||
Long-term Purchase Commitment [Line Items] | ||
Ship passenger capacity berths | 4,100 | |
TUI Cruises | TUI Cruises, Unnamed Ship Two | ||
Long-term Purchase Commitment [Line Items] | ||
Ship passenger capacity berths | 4,100 | |
TUI Cruises | Hanseatic Spirit | ||
Long-term Purchase Commitment [Line Items] | ||
Ship passenger capacity berths | 230 |
Shareholders' Equity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 31, 2020 |
Apr. 30, 2020 |
Oct. 30, 2019 |
Sep. 30, 2019 |
Jul. 31, 2019 |
Apr. 30, 2019 |
Mar. 31, 2020 |
Dec. 31, 2019 |
Sep. 30, 2019 |
Jun. 30, 2019 |
Mar. 31, 2019 |
Dec. 31, 2018 |
Sep. 30, 2020 |
Sep. 30, 2019 |
Jul. 09, 2020 |
|
Subsequent Event [Line Items] | |||||||||||||||
Dividend declared (in dollars per share) | $ 0.78 | $ 0.78 | $ 0.78 | $ 0.78 | $ 0.70 | $ 0.70 | $ 0.70 | $ 0.78 | $ 2.18 | ||||||
Common stock, dividends, per share, cash paid (in dollars per share) | $ 0.78 | $ 0.78 | $ 0.70 | $ 0.70 | $ 0.78 | $ 0.70 | |||||||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||||||
Subsequent Event | |||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||
Number of shares sold (in shares) | 9.6 | ||||||||||||||
Common stock, par value (in dollars per share) | $ 0.01 | ||||||||||||||
Proceeds from sale of stock | $ 557.4 | ||||||||||||||
Sale of stock, price per share (in dollars per share) | $ 60.00 |
Changes in Accumulated Other Comprehensive (Loss) Income - Changes in AOCI by Component (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Changes in accumulated other comprehensive loss by component | ||
Beginning balance | $ 12,163,846 | $ 11,105,461 |
Other comprehensive income (loss) before reclassifications | (204,172) | (302,817) |
Amounts reclassified from accumulated other comprehensive loss | 132,778 | (15,812) |
Net current-period other comprehensive income (loss) | (71,394) | (318,629) |
Ending balance | 8,328,594 | 11,976,907 |
Changes related to cash flow derivative hedges | ||
Changes in accumulated other comprehensive loss by component | ||
Beginning balance | (688,529) | (537,216) |
Other comprehensive income (loss) before reclassifications | (172,323) | (271,726) |
Amounts reclassified from accumulated other comprehensive loss | 62,184 | (16,389) |
Net current-period other comprehensive income (loss) | (110,139) | (288,115) |
Ending balance | (798,668) | (825,331) |
Changes in defined benefit plans | ||
Changes in accumulated other comprehensive loss by component | ||
Beginning balance | (45,558) | (26,023) |
Other comprehensive income (loss) before reclassifications | (18,503) | (23,408) |
Amounts reclassified from accumulated other comprehensive loss | 1,550 | 577 |
Net current-period other comprehensive income (loss) | (16,953) | (22,831) |
Ending balance | (62,511) | (48,854) |
Foreign currency translation adjustments | ||
Changes in accumulated other comprehensive loss by component | ||
Beginning balance | (63,626) | (64,495) |
Other comprehensive income (loss) before reclassifications | (13,346) | (7,683) |
Amounts reclassified from accumulated other comprehensive loss | 69,044 | 0 |
Net current-period other comprehensive income (loss) | 55,698 | (7,683) |
Ending balance | (7,928) | (72,178) |
Accumulated other comprehensive loss | ||
Changes in accumulated other comprehensive loss by component | ||
Beginning balance | (797,713) | (627,734) |
Ending balance | $ (869,107) | $ (946,363) |
Changes in Accumulated Other Comprehensive (Loss) Income - Reclassifications (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Reclassifications out of accumulated other comprehensive loss | ||||
Interest expense, net of interest capitalized | $ (259,349) | $ (102,038) | $ (571,149) | $ (313,757) |
Depreciation and amortization expenses | (317,139) | (320,295) | (961,226) | (924,180) |
Other expense | (10,853) | (7,668) | (127,537) | (34,537) |
Fuel | (53,815) | (177,677) | (327,275) | (519,772) |
Other expense | (308,609) | (1,623,038) | (2,499,848) | (4,581,246) |
Other expense | ||||
Reclassifications out of accumulated other comprehensive loss | ||||
Other expense | (127,226) | (342,170) | (830,689) | (1,037,113) |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | ||||
Reclassifications out of accumulated other comprehensive loss | ||||
Total reclassifications for the period | (52,101) | (3,447) | (132,778) | 15,812 |
Loss on cash flow derivative hedges | Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | ||||
Reclassifications out of accumulated other comprehensive loss | ||||
Total reclassifications for the period | (16,887) | (3,253) | (62,184) | 16,389 |
Loss on cash flow derivative hedges | Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | Interest rate swaps | ||||
Reclassifications out of accumulated other comprehensive loss | ||||
Interest expense, net of interest capitalized | (6,532) | (373) | (15,939) | (1,173) |
Loss on cash flow derivative hedges | Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | Foreign currency forward contracts | ||||
Reclassifications out of accumulated other comprehensive loss | ||||
Depreciation and amortization expenses | (3,782) | (3,592) | (10,899) | (10,471) |
Other expense | (1,511) | (1,251) | (5,855) | (3,866) |
Loss on cash flow derivative hedges | Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | Fuel swaps | ||||
Reclassifications out of accumulated other comprehensive loss | ||||
Other expense | 536 | (472) | 3,029 | (1,916) |
Fuel | (5,598) | 2,435 | (32,520) | 33,815 |
Changes in defined benefit plans | Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | ||||
Reclassifications out of accumulated other comprehensive loss | ||||
Payroll and related | (517) | (194) | (1,550) | (577) |
Total reclassifications for the period | (517) | (194) | (1,550) | (577) |
Foreign cumulative translation | Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | Other expense | ||||
Reclassifications out of accumulated other comprehensive loss | ||||
Other expense | $ (34,697) | $ 0 | $ (69,044) | $ 0 |
Changes in Accumulated Other Comprehensive Income (Loss) - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2020 |
Jun. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Reclassifications out of accumulated other comprehensive loss | |||||
Recognized gain | $ 4,946 | ||||
Other operating expenses | $ 308,609 | $ 1,623,038 | 2,499,848 | $ 4,581,246 | |
Pullmantur Holdings | |||||
Reclassifications out of accumulated other comprehensive loss | |||||
Other expense | 69,000 | 69,000 | |||
Deferred currency translation loss | 92,600 | 92,600 | |||
Recognized gain | 23,600 | 23,600 | |||
Other operating | |||||
Reclassifications out of accumulated other comprehensive loss | |||||
Other operating expenses | 127,226 | 342,170 | 830,689 | 1,037,113 | |
Other operating | Reclassification out of Accumulated Other Comprehensive Income | Foreign currency translation adjustments | |||||
Reclassifications out of accumulated other comprehensive loss | |||||
Other operating expenses | 34,697 | $ 0 | $ 69,044 | $ 0 | |
Other operating | Reclassification out of Accumulated Other Comprehensive Income | Foreign currency translation adjustments | Pullmantur Holdings | |||||
Reclassifications out of accumulated other comprehensive loss | |||||
Other operating expenses | $ 34,700 | $ 34,300 |
Fair Value Measurements and Derivative Instruments - Estimated Fair Value (Details) - Nonrecurring - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Level 1 | ||||||||||||
Assets: | ||||||||||||
Cash and cash equivalents | [1],[2] | $ 3,016,788 | $ 243,738 | |||||||||
Total Assets | [2] | 3,016,788 | 243,738 | |||||||||
Liabilities: | ||||||||||||
Long-term debt (including current portion of long-term debt) | [2],[3] | 0 | 0 | |||||||||
Total Liabilities | [2] | 0 | 0 | |||||||||
Level 2 | ||||||||||||
Assets: | ||||||||||||
Cash and cash equivalents | [1],[4] | 0 | 0 | |||||||||
Total Assets | [4] | 0 | 0 | |||||||||
Liabilities: | ||||||||||||
Long-term debt (including current portion of long-term debt) | [3],[4] | 19,876,822 | 10,059,055 | |||||||||
Total Liabilities | [4] | 19,876,822 | 10,059,055 | |||||||||
Level 3 | ||||||||||||
Assets: | ||||||||||||
Cash and cash equivalents | [1],[5] | 0 | 0 | |||||||||
Total Assets | [5] | 0 | 0 | |||||||||
Liabilities: | ||||||||||||
Long-term debt (including current portion of long-term debt) | [3],[5] | 0 | 0 | |||||||||
Total Liabilities | [5] | 0 | 0 | |||||||||
Total Carrying Amount | ||||||||||||
Assets: | ||||||||||||
Cash and cash equivalents | [1] | 3,016,788 | 243,738 | |||||||||
Total Assets | 3,016,788 | 243,738 | ||||||||||
Liabilities: | ||||||||||||
Long-term debt (including current portion of long-term debt) | [3] | 18,286,811 | 9,370,438 | |||||||||
Total Liabilities | 18,286,811 | 9,370,438 | ||||||||||
Total Fair Value | ||||||||||||
Assets: | ||||||||||||
Cash and cash equivalents | [1] | 3,016,788 | 243,738 | |||||||||
Total Assets | 3,016,788 | 243,738 | ||||||||||
Liabilities: | ||||||||||||
Long-term debt (including current portion of long-term debt) | [3] | 19,876,822 | 10,059,055 | |||||||||
Total Liabilities | $ 19,876,822 | $ 10,059,055 | ||||||||||
|
Fair Value Measurements and Derivative Instruments - Recurring (Details) - USD ($) $ in Thousands |
3 Months Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 09, 2020 |
Sep. 30, 2020 |
Dec. 31, 2019 |
|||||||||||||
Liabilities: | |||||||||||||||
Interest acquired | 33.30% | ||||||||||||||
Silversea Cruises | |||||||||||||||
Liabilities: | |||||||||||||||
Interest acquired | 33.30% | 33.30% | |||||||||||||
Fair Value, Measurements, Recurring | Level 1 | |||||||||||||||
Assets: | |||||||||||||||
Derivative financial instruments | [1],[2] | $ 0 | $ 0 | ||||||||||||
Total Assets | [2] | 0 | 0 | ||||||||||||
Liabilities: | |||||||||||||||
Derivative financial instruments | [2],[3] | 0 | 0 | ||||||||||||
Contingent consideration | [2],[4] | 0 | 0 | ||||||||||||
Total Liabilities | [2] | 0 | 0 | ||||||||||||
Fair Value, Measurements, Recurring | Level 2 | |||||||||||||||
Assets: | |||||||||||||||
Derivative financial instruments | [1],[5] | 46,367 | 39,994 | ||||||||||||
Total Assets | [5] | 46,367 | 39,994 | ||||||||||||
Liabilities: | |||||||||||||||
Derivative financial instruments | [3],[5] | 363,955 | 257,728 | ||||||||||||
Contingent consideration | [4],[5] | 0 | 0 | ||||||||||||
Total Liabilities | [5] | 363,955 | 257,728 | ||||||||||||
Fair Value, Measurements, Recurring | Level 3 | |||||||||||||||
Assets: | |||||||||||||||
Derivative financial instruments | [1],[6] | 0 | 0 | ||||||||||||
Total Assets | [6] | 0 | 0 | ||||||||||||
Liabilities: | |||||||||||||||
Derivative financial instruments | [3],[6] | 0 | 0 | ||||||||||||
Contingent consideration | [4],[6] | 0 | 62,400 | ||||||||||||
Total Liabilities | [6] | 0 | 62,400 | ||||||||||||
Total | Fair Value, Measurements, Recurring | |||||||||||||||
Assets: | |||||||||||||||
Derivative financial instruments | [1] | 46,367 | 39,994 | ||||||||||||
Total Assets | 46,367 | 39,994 | |||||||||||||
Liabilities: | |||||||||||||||
Derivative financial instruments | [3] | 363,955 | 257,728 | ||||||||||||
Contingent consideration | [4] | 0 | 62,400 | ||||||||||||
Total Liabilities | $ 363,955 | $ 320,128 | |||||||||||||
|
Fair Value Measurements and Derivative Instruments - Nonrecurring (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 |
Jun. 30, 2020 |
Mar. 31, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||||
Goodwill, impairment | $ 576,208 | |||||||||||||||
Indefinite-life intangible asset, impairment | $ 30,800 | |||||||||||||||
Right-of-use assets, impairment | $ 13,300 | 45,900 | ||||||||||||||
Equity method investments, impairment | 39,700 | |||||||||||||||
Total, impairment | $ 89,899 | $ 0 | 1,354,514 | $ 0 | ||||||||||||
Silversea Cruises | ||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||||
Goodwill, impairment | $ 576,200 | 576,208 | ||||||||||||||
Nonrecurring | ||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||||
Indefinite-life intangible asset, impairment | [1] | 0 | 30,800 | |||||||||||||
Long-lived assets - vessels, impairment | [2] | 83,949 | 560,926 | |||||||||||||
Right-of-use assets, impairment | [3] | 0 | 50,914 | |||||||||||||
Equity method investments, impairment | [4] | 0 | 39,735 | |||||||||||||
Total, impairment | 83,949 | 1,258,583 | ||||||||||||||
Nonrecurring | Silversea Cruises | ||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||||
Goodwill, impairment | [5] | 0 | 576,208 | |||||||||||||
Nonrecurring | Total Carrying Amount | ||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||||
Indefinite-life intangible asset | 318,700 | 318,700 | ||||||||||||||
Long-lived assets - vessels | [2] | 577,193 | 577,193 | |||||||||||||
Right-of-use assets | [3] | 67,265 | 67,265 | |||||||||||||
Equity method investments | [4] | 0 | 0 | |||||||||||||
Total | 1,471,736 | 1,471,736 | ||||||||||||||
Nonrecurring | Total Carrying Amount | Silversea Cruises | ||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||||
Silversea Cruises Goodwill | [5] | 508,578 | 508,578 | |||||||||||||
Nonrecurring | Total Fair Value | ||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||||
Indefinite-life intangible asset | 318,700 | 318,700 | ||||||||||||||
Long-lived assets - vessels | [2] | 577,193 | 577,193 | |||||||||||||
Right-of-use assets | [3] | 67,265 | 67,265 | |||||||||||||
Equity method investments | [4] | 0 | 0 | |||||||||||||
Total | 1,471,736 | 1,471,736 | ||||||||||||||
Nonrecurring | Total Fair Value | Silversea Cruises | ||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||||
Silversea Cruises Goodwill | [5] | 508,578 | 508,578 | |||||||||||||
Nonrecurring | Level 3 | ||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||||
Indefinite-life intangible asset | [1] | 318,700 | 318,700 | |||||||||||||
Long-lived assets - vessels | [2] | 577,193 | 577,193 | |||||||||||||
Right-of-use assets | [3] | 67,265 | 67,265 | |||||||||||||
Equity method investments | [4] | 0 | 0 | |||||||||||||
Total | $ 1,471,736 | $ 1,471,736 | ||||||||||||||
Nonrecurring | Level 3 | Discount rate | ||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||||
Indefinite-lived intangible assets, measurement input | 13.25% | 13.25% | ||||||||||||||
Nonrecurring | Level 3 | Royalty fee percentage | ||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||||
Indefinite-lived intangible assets, measurement input | 3.00% | 3.00% | ||||||||||||||
Nonrecurring | Level 3 | Silversea Cruises | ||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||||
Silversea Cruises Goodwill | [5] | $ 508,578 | $ 508,578 | |||||||||||||
Nonrecurring | Level 3 | Silversea Cruises | Weighted average cost of capital | ||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||||
Goodwill, measurement input | 12.75% | 12.75% | ||||||||||||||
|
Fair Value Measurements and Derivative Instruments - Offsetting of Derivative Instruments (Details) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Offsetting of Financial Assets under Master Netting Agreements [Abstract] | ||
Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheet | $ 46,367 | $ 39,994 |
Gross Amount of Eligible Offsetting Recognized Derivative Liabilities | (42,232) | (39,994) |
Cash Collateral Received | 0 | 0 |
Net Amount of Derivative Assets | 4,135 | 0 |
Offsetting of Financial Liabilities under Master Netting Agreements [Abstract] | ||
Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheet | (363,955) | (257,728) |
Gross Amount of Eligible Offsetting Recognized Derivative Assets | 42,232 | 39,994 |
Cash Collateral Pledged | 30,471 | 0 |
Net Amount of Derivative Liabilities | $ (291,252) | $ (217,734) |
Fair Value Measurements and Derivative Instruments - Derivative Instruments, Interest Rate Risk, Foreign Currency Exchange Rate Risk (Narrative) (Details) $ in Thousands, € in Millions, T in Millions |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2020
USD ($)
T
|
Sep. 30, 2019
USD ($)
|
Sep. 30, 2020
USD ($)
T
|
Sep. 30, 2020
EUR (€)
|
Sep. 30, 2019
USD ($)
|
Dec. 31, 2019
USD ($)
|
Dec. 31, 2019
EUR (€)
|
Sep. 30, 2020
EUR (€)
T
|
|
Gains and losses from derivatives involved in hedging relationships | ||||||||
Derivative instrument, credit risk exposure | $ 2,200 | |||||||
Maximum length of time hedged in derivative contract | 3 years | 3 years | ||||||
Percentage of debt bearing fixed interest | 65.90% | 65.90% | 62.10% | 65.90% | ||||
Interest rate swaps | ||||||||
Gains and losses from derivatives involved in hedging relationships | ||||||||
Notional amount | $ 3,500,000 | $ 3,500,000 | $ 3,500,000 | |||||
Forward Contracts | ||||||||
Gains and losses from derivatives involved in hedging relationships | ||||||||
Change in fair value of foreign currency forward contracts recognized in earnings | 4,900 | $ (26,000) | (35,300) | $ (25,200) | ||||
Forward Contracts | Not Designated | ||||||||
Gains and losses from derivatives involved in hedging relationships | ||||||||
Notional amount | 262,100 | 262,100 | ||||||
Foreign exchange contracts | ||||||||
Gains and losses from derivatives involved in hedging relationships | ||||||||
Notional amount | $ 3,300,000 | $ 3,300,000 | $ 2,900,000 | |||||
Fuel swaps | ||||||||
Gains and losses from derivatives involved in hedging relationships | ||||||||
Discontinued cash flow hedge, nonmonetary amount | T | 0.5 | 0.5 | 0.5 | |||||
Fuel swaps | Reclassification out of Accumulated Other Comprehensive Income | ||||||||
Gains and losses from derivatives involved in hedging relationships | ||||||||
Discontinued cash flow hedge, nonmonetary amount | T | 0.4 | 0.4 | 0.4 | |||||
Fuel swaps | Other income (expense) | ||||||||
Gains and losses from derivatives involved in hedging relationships | ||||||||
Discontinued cash flow hedge, reclassification loss | $ 76,300 | |||||||
Cruise ships on order | ||||||||
Gains and losses from derivatives involved in hedging relationships | ||||||||
Aggregate cost of ships on order, not including partner brands on order | 14,100,000 | |||||||
Amount deposited for cost of ships on order | $ 770,700 | $ 770,700 | ||||||
Percentage of aggregate cost exposed to fluctuations in the euro exchange rate | 64.40% | 64.40% | 65.90% | 64.40% | ||||
TUI Cruises | Forward Contracts | Designated as Hedging Instrument | ||||||||
Gains and losses from derivatives involved in hedging relationships | ||||||||
Notional amount | $ 287,300 | $ 287,300 | € 245.0 | |||||
Foreign currency debt | ||||||||
Gains and losses from derivatives involved in hedging relationships | ||||||||
Carrying value of non-derivative instrument designated as hedging instrument | 333,061 | $ 358,078 | ||||||
Foreign currency debt | TUI Cruises | ||||||||
Gains and losses from derivatives involved in hedging relationships | ||||||||
Carrying value of non-derivative instrument designated as hedging instrument | $ 333,100 | € 284.0 | $ 358,100 | € 319.0 |
Fair Value Measurements and Derivative Instruments - Interest Rate Risk (Details) |
9 Months Ended | |||||
---|---|---|---|---|---|---|
Sep. 30, 2020
USD ($)
| ||||||
Interest Rate Fair Value Hedges [Abstract] | ||||||
Long-term debt | $ 6,200,000,000 | |||||
Interest rate swaps | Fair Value Hedging | ||||||
Interest Rate Fair Value Hedges [Abstract] | ||||||
Long-term debt | 702,500,000 | |||||
Interest rate swaps | Fair Value Hedging | Oasis of the Seas term loan | ||||||
Interest Rate Fair Value Hedges [Abstract] | ||||||
Long-term debt | $ 52,500,000 | |||||
Debt Fixed Rate | 5.41% | |||||
Interest rate swaps | Fair Value Hedging | Unsecured senior notes | ||||||
Interest Rate Fair Value Hedges [Abstract] | ||||||
Long-term debt | $ 650,000,000 | |||||
Debt Fixed Rate | 5.25% | |||||
Interest rate swaps | Cash flow hedge | ||||||
Interest Rate Cash Flow Hedges [Abstract] | ||||||
Swap notional amount | $ 2,813,602,000 | |||||
Interest rate swaps | Cash flow hedge | Celebrity Reflection term loan | ||||||
Interest Rate Cash Flow Hedges [Abstract] | ||||||
Swap notional amount | $ 245,437,000 | |||||
All-in Swap Fixed Rate | 2.85% | |||||
Interest rate swaps | Cash flow hedge | Quantum of the Seas term loan | ||||||
Interest Rate Cash Flow Hedges [Abstract] | ||||||
Swap notional amount | $ 398,125,000 | |||||
All-in Swap Fixed Rate | 3.74% | |||||
Interest rate swaps | Cash flow hedge | Anthem of the Seas term loan | ||||||
Interest Rate Cash Flow Hedges [Abstract] | ||||||
Swap notional amount | $ 422,917,000 | |||||
All-in Swap Fixed Rate | 3.86% | |||||
Interest rate swaps | Cash flow hedge | Ovation of the Seas term loan | ||||||
Interest Rate Cash Flow Hedges [Abstract] | ||||||
Swap notional amount | $ 553,333,000 | |||||
All-in Swap Fixed Rate | 3.16% | |||||
Interest rate swaps | Cash flow hedge | Harmony of the Seas term loan | ||||||
Interest Rate Cash Flow Hedges [Abstract] | ||||||
Swap notional amount | $ 542,123,000 | [1] | ||||
All-in Swap Fixed Rate | 2.26% | [1] | ||||
Interest rate swaps | Cash flow hedge | Odyssey of the Seas term loan | ||||||
Interest Rate Cash Flow Hedges [Abstract] | ||||||
Swap notional amount | $ 460,000,000 | [2] | ||||
All-in Swap Fixed Rate | 3.20% | [2] | ||||
Interest rate swaps | Cash flow hedge | Odyssey of the Seas term loan | ||||||
Interest Rate Cash Flow Hedges [Abstract] | ||||||
Swap notional amount | $ 191,667,000 | [2] | ||||
All-in Swap Fixed Rate | 2.83% | [2] | ||||
LIBOR | Interest rate swaps | Fair Value Hedging | Oasis of the Seas term loan | ||||||
Interest Rate Fair Value Hedges [Abstract] | ||||||
Swap Floating Rate: LIBOR plus | 3.87% | |||||
All-in swap floating rate | 4.84% | |||||
LIBOR | Interest rate swaps | Fair Value Hedging | Unsecured senior notes | ||||||
Interest Rate Fair Value Hedges [Abstract] | ||||||
Swap Floating Rate: LIBOR plus | 3.63% | |||||
All-in swap floating rate | 3.91% | |||||
LIBOR | Interest rate swaps | Cash flow hedge | Celebrity Reflection term loan | ||||||
Interest Rate Cash Flow Hedges [Abstract] | ||||||
Debt Floating Rate | 0.40% | |||||
LIBOR | Interest rate swaps | Cash flow hedge | Quantum of the Seas term loan | ||||||
Interest Rate Cash Flow Hedges [Abstract] | ||||||
Debt Floating Rate | 1.30% | |||||
LIBOR | Interest rate swaps | Cash flow hedge | Anthem of the Seas term loan | ||||||
Interest Rate Cash Flow Hedges [Abstract] | ||||||
Debt Floating Rate | 1.30% | |||||
LIBOR | Interest rate swaps | Cash flow hedge | Ovation of the Seas term loan | ||||||
Interest Rate Cash Flow Hedges [Abstract] | ||||||
Debt Floating Rate | 1.00% | |||||
LIBOR | Interest rate swaps | Cash flow hedge | Odyssey of the Seas term loan | ||||||
Interest Rate Cash Flow Hedges [Abstract] | ||||||
Debt Floating Rate | 0.95% | [2] | ||||
LIBOR | Interest rate swaps | Cash flow hedge | Odyssey of the Seas term loan | ||||||
Interest Rate Cash Flow Hedges [Abstract] | ||||||
Debt Floating Rate | 0.95% | [2] | ||||
EURIBOR | Interest rate swaps | Cash flow hedge | Harmony of the Seas term loan | ||||||
Interest Rate Cash Flow Hedges [Abstract] | ||||||
Debt Floating Rate | 1.15% | [1] | ||||
|
Fair Value Measurements and Derivative Instruments - Fuel Price Risk (Details) - Fuel Swap Agreements $ in Millions |
Sep. 30, 2020
USD ($)
t
|
Dec. 31, 2019
t
|
---|---|---|
Derivative Instruments | ||
Estimated unrealized net loss associated with cash flow hedges pertaining to fuel swap agreements expected to be reclassified to earnings from accumulated other comprehensive income loss | $ | $ (48.1) | |
2020 | ||
Derivative Instruments | ||
Percentage of projected requirements | 53.00% | 52.00% |
2020 | Designated as Hedging Instrument | ||
Derivative Instruments | ||
Fuel Swap Agreements (metric tons) | 60,800 | 792,900 |
2020 | Not Designated as Hedging Instrument | ||
Derivative Instruments | ||
Fuel Swap Agreements (metric tons) | 113,700 | 37,600 |
2021 | ||
Derivative Instruments | ||
Percentage of projected requirements | 39.00% | 30.00% |
2021 | Designated as Hedging Instrument | ||
Derivative Instruments | ||
Fuel Swap Agreements (metric tons) | 518,450 | 488,900 |
2021 | Not Designated as Hedging Instrument | ||
Derivative Instruments | ||
Fuel Swap Agreements (metric tons) | 96,450 | 0 |
2022 | ||
Derivative Instruments | ||
Percentage of projected requirements | 24.00% | 19.00% |
2022 | Designated as Hedging Instrument | ||
Derivative Instruments | ||
Fuel Swap Agreements (metric tons) | 404,300 | 322,900 |
2023 | ||
Derivative Instruments | ||
Percentage of projected requirements | 5.00% | 5.00% |
2023 | Designated as Hedging Instrument | ||
Derivative Instruments | ||
Fuel Swap Agreements (metric tons) | 82,400 | 82,400 |
Fair Value Measurements and Derivative Instruments - Balance Sheet (Details) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
||
---|---|---|---|---|
Asset Derivatives | ||||
Asset Derivatives | $ 46,367 | $ 39,994 | ||
Liability Derivatives | ||||
Liability Derivatives | 363,955 | 257,728 | ||
Designated as Hedging Instrument | ||||
Asset Derivatives | ||||
Asset Derivatives | [1] | 46,367 | 34,990 | |
Liability Derivatives | ||||
Liability Derivatives | [1] | 331,932 | 255,005 | |
Notional Disclosures | ||||
Carrying Amount of the Hedged Liabilities | 719,553 | 715,234 | ||
Cumulative amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liabilities | 19,555 | (1,301) | ||
Not Designated as Hedging Instrument | ||||
Asset Derivatives | ||||
Asset Derivatives | 0 | 5,004 | ||
Liability Derivatives | ||||
Liability Derivatives | 32,023 | 2,723 | ||
Interest rate swaps | Designated as Hedging Instrument | Other assets | ||||
Asset Derivatives | ||||
Asset Derivatives | [1] | 19,465 | 11 | |
Interest rate swaps | Designated as Hedging Instrument | Other long-term liabilities | ||||
Liability Derivatives | ||||
Liability Derivatives | [1] | 141,822 | 64,168 | |
Foreign currency forward contracts | Designated as Hedging Instrument | Other assets | ||||
Asset Derivatives | ||||
Asset Derivatives | [1] | 16,699 | 9,380 | |
Foreign currency forward contracts | Designated as Hedging Instrument | Derivative financial instruments | ||||
Asset Derivatives | ||||
Asset Derivatives | [1] | 10,203 | 0 | |
Liability Derivatives | ||||
Liability Derivatives | [1] | 43,089 | 75,260 | |
Foreign currency forward contracts | Designated as Hedging Instrument | Other long-term liabilities | ||||
Liability Derivatives | ||||
Liability Derivatives | [1] | 29,187 | 64,711 | |
Foreign currency forward contracts | Not Designated as Hedging Instrument | Derivative financial instruments | ||||
Asset Derivatives | ||||
Asset Derivatives | 0 | 3,186 | ||
Liability Derivatives | ||||
Liability Derivatives | 0 | 2,419 | ||
Fuel swaps | Designated as Hedging Instrument | Other assets | ||||
Asset Derivatives | ||||
Asset Derivatives | [1] | 0 | 8,677 | |
Fuel swaps | Designated as Hedging Instrument | Derivative financial instruments | ||||
Asset Derivatives | ||||
Asset Derivatives | [1] | 0 | 16,922 | |
Liability Derivatives | ||||
Liability Derivatives | [1] | 39,808 | 16,901 | |
Fuel swaps | Designated as Hedging Instrument | Other long-term liabilities | ||||
Liability Derivatives | ||||
Liability Derivatives | [1] | 78,026 | 33,965 | |
Fuel swaps | Not Designated as Hedging Instrument | Other assets | ||||
Asset Derivatives | ||||
Asset Derivatives | 0 | 175 | ||
Fuel swaps | Not Designated as Hedging Instrument | Derivative financial instruments | ||||
Asset Derivatives | ||||
Asset Derivatives | 0 | 1,643 | ||
Liability Derivatives | ||||
Liability Derivatives | 30,578 | 295 | ||
Fuel swaps | Not Designated as Hedging Instrument | Other long-term liabilities | ||||
Liability Derivatives | ||||
Liability Derivatives | $ 1,445 | $ 9 | ||
|
Fair Value Measurements and Derivative Instruments - Income Statement Hedging Instruments (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||||
Fuel | $ 53,815 | $ 177,677 | $ 327,275 | $ 519,772 |
Depreciation and amortization | 317,139 | 320,295 | 961,226 | 924,180 |
Interest Income (Expense) | (254,332) | (96,413) | (555,392) | (292,006) |
Other expense | (10,853) | (7,668) | (127,537) | (34,537) |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | (16,887) | (3,253) | (62,184) | 16,389 |
Interest Contracts | Interest expense, net of interest capitalized | ||||
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | (6,532) | (373) | (15,939) | (1,173) |
Fuel swaps | Fuel | ||||
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | (5,598) | 2,435 | (32,520) | 33,815 |
Fuel swaps | Other income (expense) | ||||
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | 536 | (472) | 3,029 | (1,916) |
Foreign exchange contracts | Depreciation and amortization expenses | ||||
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | (3,782) | (3,592) | (10,899) | (10,471) |
Foreign exchange contracts | Other income (expense) | ||||
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | (1,511) | (1,251) | (5,855) | (3,866) |
Interest rate swaps | Interest expense, net of interest capitalized | ||||
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | (6,532) | (373) | (15,939) | (1,173) |
Fair Value Hedging | ||||
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||||
Amount of Gain (Loss) Recognized in Income on Hedged Item | 2,379 | (4,116) | (20,855) | (25,862) |
Amount of Gain (Loss) Recognized in Income on Derivative | 39 | 2,920 | 23,338 | 19,699 |
Fair Value Hedging | Interest Contracts | Interest expense, net of interest capitalized | ||||
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||||
Amount of Gain (Loss) Recognized in Income on Hedged Item | 2,379 | (4,116) | (20,855) | (25,862) |
Amount of Gain (Loss) Recognized in Income on Derivative | 39 | 2,920 | 23,338 | 19,699 |
Fair Value Hedging | Interest Contracts | Other income (expense) | ||||
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||||
Amount of Gain (Loss) Recognized in Income on Hedged Item | 0 | 0 | 0 | 0 |
Amount of Gain (Loss) Recognized in Income on Derivative | 0 | 0 | 0 | 0 |
Fair Value Hedging | Interest rate swaps | Interest expense, net of interest capitalized | ||||
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||||
Amount of Gain (Loss) Recognized in Income on Hedged Item | 2,379 | (4,116) | (20,855) | (25,862) |
Amount of Gain (Loss) Recognized in Income on Derivative | $ 39 | $ 2,920 | $ 23,338 | $ 19,699 |
Fair Value Measurements and Derivative Instruments - Balance Sheet Hedging Instruments (Details) - Foreign currency debt - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2020 |
Dec. 31, 2019 |
|
Derivative Instruments | ||
Carrying value of non-derivative instrument designated as hedging instrument | $ 333,061 | $ 358,078 |
Current portion of debt | ||
Derivative Instruments | ||
Carrying value of non-derivative instrument designated as hedging instrument | 40,153 | 73,572 |
Long-term debt | ||
Derivative Instruments | ||
Carrying value of non-derivative instrument designated as hedging instrument | $ 292,908 | $ 284,506 |
Fair Value Measurements and Derivative Instruments - Designated Cash Flow Hedges (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
Dec. 31, 2019 |
|
Effect of derivative instruments involved in hedging on the consolidated financial statements | |||||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivative | $ 49,248 | $ (268,478) | $ (172,323) | $ (271,726) | |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | (16,887) | (3,253) | (62,184) | 16,389 | |
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net [Abstract] | |||||
Net inception fair value at January 1, 2020 | $ (8,008) | ||||
Amount of gain recognized in income on derivatives for the period ended September 30, 2020 | 4,946 | ||||
Amount of gain (loss) remaining to be amortized in accumulated other comprehensive loss, as of September 30, 2020 | 561 | ||||
Fair value at September 30, 2020 | (2,501) | (2,501) | |||
Interest rate swaps | |||||
Effect of derivative instruments involved in hedging on the consolidated financial statements | |||||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivative | (42,488) | (23,488) | (90,677) | (91,949) | |
Interest rate swaps | Interest expense, net of interest capitalized | |||||
Effect of derivative instruments involved in hedging on the consolidated financial statements | |||||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | (6,532) | (373) | (15,939) | (1,173) | |
Foreign currency forward contracts | |||||
Effect of derivative instruments involved in hedging on the consolidated financial statements | |||||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivative | 96,821 | (131,523) | 39,161 | (202,273) | |
Foreign currency forward contracts | Depreciation and amortization expenses | |||||
Effect of derivative instruments involved in hedging on the consolidated financial statements | |||||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | (3,782) | (3,592) | (10,899) | (10,471) | |
Foreign currency forward contracts | |||||
Effect of derivative instruments involved in hedging on the consolidated financial statements | |||||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivative | 0 | 0 | 0 | 0 | |
Foreign currency forward contracts | Other income (expense) | |||||
Effect of derivative instruments involved in hedging on the consolidated financial statements | |||||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | (1,511) | (1,251) | (5,855) | (3,866) | |
Fuel swaps | |||||
Effect of derivative instruments involved in hedging on the consolidated financial statements | |||||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivative | 0 | 0 | 0 | 0 | |
Fuel swaps | Other income (expense) | |||||
Effect of derivative instruments involved in hedging on the consolidated financial statements | |||||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | 536 | (472) | 3,029 | (1,916) | |
Fuel swaps | Fuel | |||||
Effect of derivative instruments involved in hedging on the consolidated financial statements | |||||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | (5,598) | 2,435 | (32,520) | 33,815 | |
Fuel swaps | |||||
Effect of derivative instruments involved in hedging on the consolidated financial statements | |||||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivative | (5,085) | (113,467) | (120,807) | 22,496 | |
Fuel swaps | Fuel | |||||
Effect of derivative instruments involved in hedging on the consolidated financial statements | |||||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | $ (5,598) | $ 2,435 | $ (32,520) | $ 33,815 |
Fair Value Measurements and Derivative Instruments - Non-Derivative Net Investment (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Foreign currency debt | ||||
Net investment hedge | ||||
Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) | $ (16,732) | $ 12,811 | $ (16,784) | $ 15,519 |
Fair Value Measurements and Derivative Instruments - Derivatives Not Designated as Hedging Instruments (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Derivative Instruments | ||||
Amount of Gain (Loss) Recognized in Income on Derivatives | $ (8,205) | $ (24,940) | $ (124,736) | $ (24,229) |
Foreign currency forward contracts | Other income (expense) | ||||
Derivative Instruments | ||||
Amount of Gain (Loss) Recognized in Income on Derivatives | 4,907 | (26,035) | (35,265) | (25,189) |
Fuel swaps | Other income (expense) | ||||
Derivative Instruments | ||||
Amount of Gain (Loss) Recognized in Income on Derivatives | (13,112) | 1,095 | (89,471) | 974 |
Fuel swaps | Fuel | ||||
Derivative Instruments | ||||
Amount of Gain (Loss) Recognized in Income on Derivatives | $ 0 | $ 0 | $ 0 | $ (14) |
Fair Value Measurements and Derivative Instruments - Credit Related Contingent Features (Details) $ in Millions |
Sep. 30, 2021
USD ($)
|
Sep. 30, 2020
USD ($)
derivative
|
---|---|---|
Subsequent Event [Line Items] | ||
Number of interest rate derivatives requiring collateral to be posted | derivative | 7 | |
Debt instrument, collateral amount | $ 80.0 | |
Interest Contracts | ||
Subsequent Event [Line Items] | ||
Debt instrument, collateral amount | $ 30.5 | |
Scenario, Forecast | ||
Subsequent Event [Line Items] | ||
Debt instrument, collateral amount | $ 60.6 |
Restructuring Charges - Narrative (Details) - USD ($) $ in Thousands |
1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 21 Months Ended |
---|---|---|---|---|---|
Apr. 30, 2020 |
Sep. 30, 2020 |
Sep. 30, 2020 |
Dec. 31, 2019 |
Sep. 30, 2020 |
|
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 29,400 | $ 50,800 | |||
Centralization of Global Sales and Marketing Structure | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 10,906 | $ 12,000 | $ 22,900 | ||
Expected additional costs | 514 | 514 | 514 | ||
Workforce Reduction Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 27,936 | ||||
Expected additional costs | $ 0 | 0 | $ 0 | ||
Percentage of workforce that was reduced or furloughed | 23.00% | ||||
Severance costs | $ 27,900 |
Restructuring Charges - Summary of Changes (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | 21 Months Ended |
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2020 |
Dec. 31, 2019 |
Sep. 30, 2020 |
|
Restructuring Reserve [Roll Forward] | ||||
Accruals | $ 29,400 | $ 50,800 | ||
Centralization of Global Sales and Marketing Structure | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance January 1, 2020 | 11,512 | |||
Accruals | 10,906 | $ 12,000 | $ 22,900 | |
Payments | 12,126 | |||
Ending balance September 30, 2020 | 10,292 | 10,292 | 11,512 | 10,292 |
Cumulative Charges Incurred | 22,932 | 22,932 | 22,932 | |
Expected Additional Expenses to be Incurred | 514 | 514 | 514 | |
Workforce Reduction Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance January 1, 2020 | 0 | |||
Accruals | 27,936 | |||
Payments | 18,570 | |||
Ending balance September 30, 2020 | 9,362 | 9,362 | 0 | 9,362 |
Cumulative Charges Incurred | 27,936 | 27,936 | 27,936 | |
Expected Additional Expenses to be Incurred | 0 | 0 | 0 | |
Termination benefits | Centralization of Global Sales and Marketing Structure | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance January 1, 2020 | 8,389 | |||
Accruals | 3,059 | |||
Payments | 3,125 | |||
Ending balance September 30, 2020 | 8,323 | 8,323 | 8,389 | 8,323 |
Cumulative Charges Incurred | 11,939 | 11,939 | 11,939 | |
Expected Additional Expenses to be Incurred | 0 | 0 | 0 | |
Termination benefits | Workforce Reduction Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance January 1, 2020 | 0 | |||
Accruals | 27,936 | |||
Payments | 18,570 | |||
Ending balance September 30, 2020 | 9,362 | 9,362 | 0 | 9,362 |
Cumulative Charges Incurred | 27,936 | 27,936 | 27,936 | |
Expected Additional Expenses to be Incurred | 0 | 0 | 0 | |
Contract termination costs | Centralization of Global Sales and Marketing Structure | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance January 1, 2020 | 338 | |||
Accruals | 0 | |||
Payments | 0 | |||
Ending balance September 30, 2020 | 338 | 338 | 338 | 338 |
Cumulative Charges Incurred | 338 | 338 | 338 | |
Expected Additional Expenses to be Incurred | 0 | 0 | 0 | |
Contract termination costs | Workforce Reduction Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance January 1, 2020 | 0 | |||
Accruals | 0 | |||
Payments | 0 | |||
Ending balance September 30, 2020 | 0 | 0 | 0 | 0 |
Cumulative Charges Incurred | 0 | 0 | 0 | |
Expected Additional Expenses to be Incurred | 0 | 0 | 0 | |
Other related costs | Centralization of Global Sales and Marketing Structure | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance January 1, 2020 | 2,785 | |||
Accruals | 7,847 | |||
Payments | 9,001 | |||
Ending balance September 30, 2020 | 1,631 | 1,631 | 2,785 | 1,631 |
Cumulative Charges Incurred | 10,655 | 10,655 | 10,655 | |
Expected Additional Expenses to be Incurred | 514 | 514 | 514 | |
Other related costs | Workforce Reduction Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance January 1, 2020 | 0 | |||
Accruals | 0 | |||
Payments | 0 | |||
Ending balance September 30, 2020 | 0 | 0 | $ 0 | 0 |
Cumulative Charges Incurred | 0 | 0 | 0 | |
Expected Additional Expenses to be Incurred | $ 0 | $ 0 | $ 0 |
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