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 March 31, | |||||||||||
2022 | 2021 | ||||||||||
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 (recoveries) | ( | ||||||||||
Operating Loss | ( | ( | |||||||||
Other income (expense): | |||||||||||
Interest income | |||||||||||
Interest expense, net of interest capitalized | ( | ( | |||||||||
Equity investment loss | ( | ( | |||||||||
Other (expense) income | ( | ||||||||||
( | ( | ||||||||||
Net Loss | $ | ( | $ | ( | |||||||
Loss per Share: | |||||||||||
Basic | $ | ( | $ | ( | |||||||
Diluted | $ | ( | $ | ( | |||||||
Weighted-Average Shares Outstanding: | |||||||||||
Basic | |||||||||||
Diluted | |||||||||||
Comprehensive Loss | |||||||||||
Net Loss | $ | ( | $ | ( | |||||||
Other comprehensive income: | |||||||||||
Foreign currency translation adjustments | |||||||||||
Change in defined benefit plans | |||||||||||
Gain on cash flow derivative hedges | |||||||||||
Total other comprehensive income | |||||||||||
Comprehensive Loss | $ | ( | $ | ( |
As of | |||||||||||
March 31, | December 31, | ||||||||||
2022 | 2021 | ||||||||||
(unaudited) | |||||||||||
Assets | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Trade and other receivables, net of allowances of $ | |||||||||||
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 $ | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities and Shareholders’ Equity | |||||||||||
Current liabilities | |||||||||||
Current portion of long-term debt | $ | $ | |||||||||
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 | |||||||||||
Shareholders’ equity | |||||||||||
Preferred stock ($ | |||||||||||
Common stock ($ | |||||||||||
Paid-in capital | |||||||||||
Retained (deficit) earnings | ( | ||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Treasury stock ( | ( | ( | |||||||||
Total shareholders’ equity | |||||||||||
Total liabilities and shareholders’ equity | $ | $ |
ROYAL CARIBBEAN CRUISES LTD. | |||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
(unaudited, in thousands) | |||||||||||
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Operating Activities | |||||||||||
Net Loss | $ | ( | $ | ( | |||||||
Adjustments: | |||||||||||
Depreciation and amortization | |||||||||||
Impairment and credit losses (recoveries) | ( | ||||||||||
Net deferred income tax benefit | ( | ( | |||||||||
Loss on derivative instruments not designated as hedges | |||||||||||
Share-based compensation expense | |||||||||||
Equity investment loss | |||||||||||
Amortization of debt issuance costs | |||||||||||
Amortization of debt discounts and premiums | |||||||||||
Changes in operating assets and liabilities: | |||||||||||
Increase in trade and other receivables, net | ( | ( | |||||||||
Increase in inventories | ( | ( | |||||||||
Increase in prepaid expenses and other assets | ( | ( | |||||||||
Increase (decrease) in accounts payable | ( | ||||||||||
Increase (decrease) in accrued interest | ( | ||||||||||
Decrease in accrued expenses and other liabilities | ( | ( | |||||||||
Increase in customer deposits | |||||||||||
Other, net | ( | ||||||||||
Net cash used in 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 | |||||||||||
Proceeds from the sale of property and equipment and other assets | |||||||||||
Other, net | ( | ||||||||||
Net cash used in investing activities | ( | ( | |||||||||
Financing Activities | |||||||||||
Debt proceeds | |||||||||||
Debt issuance costs | ( | ( | |||||||||
Repayments of debt | ( | ( | |||||||||
Repayments of commercial paper notes | ( | ||||||||||
Proceeds from common stock issuances | |||||||||||
Other, net | ( | ( | |||||||||
Net cash provided by financing activities | |||||||||||
Effect of exchange rate changes on cash | ( | ||||||||||
Net (decrease) increase in cash and cash equivalents | ( |
ROYAL CARIBBEAN CRUISES LTD. | |||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
(unaudited, in thousands) | |||||||||||
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Cash and cash equivalents at beginning of period | |||||||||||
Cash and cash equivalents at end of period | $ | $ | |||||||||
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 and other assets | $ | $ | |||||||||
Purchase of property and equipment included in accounts payable and accrued expenses and other liabilities | $ | $ |
Common Stock | Paid-in Capital | Retained Earnings (Deficit) | Accumulated Other Comprehensive Loss | Treasury Stock | Total Shareholders' Equity | ||||||||||||||||||||||||||||||
Balance at January 1, 2022 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||
Activity related to employee stock plans | — | — | |||||||||||||||||||||||||||||||||
— | ( | — | — | ( | |||||||||||||||||||||||||||||||
Changes related to cash flow derivative hedges | — | — | — | — | |||||||||||||||||||||||||||||||
Change in defined benefit plans | — | — | — | — | |||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | |||||||||||||||||||||||||||||||
Purchase of treasury stock | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Net Loss | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Balance at March 31, 2022 | $ | $ | $ | ( | $ | ( | $ | ( | $ |
Common Stock | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Total Shareholders' Equity | ||||||||||||||||||||||||||||||
Balance at January 1, 2021 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||
Activity related to employee stock plans | — | — | — | ||||||||||||||||||||||||||||||||
Common stock issuance | — | — | — | ||||||||||||||||||||||||||||||||
Changes related to cash flow derivative hedges | — | — | — | — | |||||||||||||||||||||||||||||||
Change in defined benefit plans | — | — | — | — | |||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | |||||||||||||||||||||||||||||||
Purchase of treasury stock | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Net Loss | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Balance at March 31, 2021 | $ | $ | $ | $ | ( | $ | ( | $ |
Quarter Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Revenues by itinerary | |||||||||||
North America (1) | $ | $ | |||||||||
Asia/Pacific | |||||||||||
Europe | |||||||||||
Other regions(2) | |||||||||||
Total revenues by itinerary | |||||||||||
Other revenues(3) | |||||||||||
Total revenues | $ | $ |
Quarter Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Passenger ticket revenues: | |||||||||||
United States | % | % | |||||||||
Singapore | % | % | |||||||||
China | % | % | |||||||||
All other countries (1) | % | % |
Quarter Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Net (Loss) for basic and diluted loss per share | $ | ( | $ | ( | |||||||
Weighted-average common shares outstanding | |||||||||||
Diluted weighted-average shares outstanding | |||||||||||
Basic (loss) per share | $ | ( | $ | ( | |||||||
Diluted (loss) per share | $ | ( | $ | ( |
Quarter Ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
Share of equity (loss) income from investments | $ | ( | $ | ( | ||||||||||
Dividends received (1) | $ | $ |
As of March 31, 2022 | As of December 31, 2021 | |||||||||||||
Total notes receivable due from equity investments | $ | $ | ||||||||||||
Less-current portion (1) | ||||||||||||||
Long-term portion (2) | $ | $ |
Quarter Ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
Revenues | $ | $ | ||||||||||||
Expenses | $ | $ |
Credit Loss Allowance | ||||||||
Beginning balance January 1, 2022 | $ | |||||||
Loss provision for receivables | ||||||||
Write-offs | ( | |||||||
Ending balance March 31, 2022 | $ |
Interest Rate (1) | Maturities Through | As of March 31, 2022 | As of December 31, 2021 | |||||||||||||||||||||||
Fixed rate debt: | ||||||||||||||||||||||||||
Unsecured senior notes | 2022 - 2028 | $ | $ | |||||||||||||||||||||||
Secured senior notes | 2023 - 2025 | |||||||||||||||||||||||||
Unsecured term loans | 2028 - 2034 | |||||||||||||||||||||||||
Convertible notes | 2023 | |||||||||||||||||||||||||
Total fixed rate debt | ||||||||||||||||||||||||||
Variable rate debt: | ||||||||||||||||||||||||||
Unsecured revolving credit facilities (2) | 2022 - 2024 | |||||||||||||||||||||||||
USD unsecured term loan | 2022 - 2033 | |||||||||||||||||||||||||
Euro unsecured term loan | 2022 - 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 | ( | ( | ||||||||||||||||||||||||
Long-term portion | $ | $ |
Year | |||||
Remainder of 2022 | |||||
2023 | |||||
2024 | |||||
2025 | |||||
2026 | |||||
Thereafter | |||||
Consolidated Statement of Comprehensive Loss Classification | Quarter Ended March 31, 2022 | Quarter Ended March 31, 2021 | ||||||||||||
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 March 31, 2022 | As of December 31, 2021 | ||||||||||
Weighted average of the remaining lease term in years | |||||||||||
Operating leases | |||||||||||
Finance leases | |||||||||||
Weighted average discount rate | |||||||||||
Operating leases | % | % | |||||||||
Finance leases | % | % |
Quarter Ended March 31, 2022 | Quarter Ended March 31, 2021 | |||||||
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 2022 | $ | $ | |||||||||
2023 | |||||||||||
2024 | |||||||||||
2025 | |||||||||||
2026 | |||||||||||
Thereafter | |||||||||||
Total lease payments | |||||||||||
Less: Interest | ( | ( | |||||||||
Present value of lease liabilities | $ | $ |
Ship | Shipyard | Expected to be delivered | Approximate Berths | |||||||||||||||||
Royal Caribbean International — | ||||||||||||||||||||
Oasis-class: | ||||||||||||||||||||
Utopia of the Seas | Chantiers de l'Atlantique | 2nd Quarter 2024 | ||||||||||||||||||
Icon-class: | ||||||||||||||||||||
Icon of the Seas | Meyer Turku Oy | 3rd Quarter 2023 | ||||||||||||||||||
Unnamed | Meyer Turku Oy | 2nd Quarter 2025 | ||||||||||||||||||
Unnamed | Meyer Turku Oy | 2nd Quarter 2026 | ||||||||||||||||||
Celebrity Cruises — | ||||||||||||||||||||
Edge-class: | ||||||||||||||||||||
Celebrity Beyond | Chantiers de l'Atlantique | 2nd Quarter 2022 | ||||||||||||||||||
Celebrity Ascent | Chantiers de l'Atlantique | 4th Quarter 2023 | ||||||||||||||||||
Silversea Cruises | ||||||||||||||||||||
Evolution Class: | ||||||||||||||||||||
Silver Nova | Meyer Werft | 2nd Quarter 2023 | ||||||||||||||||||
Unnamed | Meyer Werft | 2nd Quarter 2024 | ||||||||||||||||||
TUI Cruises (50% joint venture) | ||||||||||||||||||||
Mein Schiff 7 | Meyer Turku Oy | 2nd Quarter 2024 | ||||||||||||||||||
Unnamed | Fincantieri | 4th Quarter 2024 | ||||||||||||||||||
Unnamed | Fincantieri | 2nd Quarter 2026 | ||||||||||||||||||
Total Berths |
Accumulated Other Comprehensive Loss for the Quarter Ended March 31, 2022 | Accumulated Other Comprehensive Loss for the Quarter Ended March 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||
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 Loss into Income | ||||||||||||||||||||
Details About Accumulated Other Comprehensive Loss Components | Quarter Ended March 31, 2022 | Quarter Ended March 31, 2021 | Affected Line Item in Statements of Comprehensive 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 | |||||||||||||||||
( | ( | |||||||||||||||||||
Total reclassifications for the period | $ | $ | ( |
Fair Value Measurements at March 31, 2022 | Fair Value Measurements at December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 March 31, 2022 | Fair Value Measurements at December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||
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) | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Total Liabilities | $ | $ | $ | $ | $ | $ | $ | $ |
Fair Value Measurements at December 31, 2021 | ||||||||||||||
Description | Total Carrying Amount | Total Fair Value | Level 3 | Total Impairment for the Year Ended December 31, 2021 (1) | ||||||||||
Long-lived assets | ||||||||||||||
Total |
Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements | ||||||||||||||||||||||||||||||||||||||||||||||||||
As of March 31, 2022 | As of December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||
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 March 31, 2022 | As of December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||
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 March 31, 2022 (in thousands) | Maturity | Debt Fixed Rate | Swap Floating Rate: LIBOR plus | All-in Swap Floating Rate as of March 31, 2022 | ||||||||||||
Unsecured senior notes | November 2022 | ||||||||||||||||
$ |
Debt Instrument | Swap Notional as of March 31, 2022 (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 March 31, 2022 | As of December 31, 2021 | ||||||||||
Designated as hedges: | (metric tons) | ||||||||||
2022 | |||||||||||
2023 | |||||||||||
Fuel Swap Agreements | |||||||||||
As of March 31, 2022 | As of December 31, 2021 | ||||||||||
(% hedged) | |||||||||||
Designated hedges as a % of projected fuel purchases: | |||||||||||
2022 | % | % | |||||||||
2023 | % | % | |||||||||
Fuel Swap Agreements | |||||||||||
As of March 31, 2021 | As of December 31, 2021 | ||||||||||
Not designated as hedges: | (metric tons) | ||||||||||
2022(1) | |||||||||||
2023 |
Fair Value of Derivative Instruments | ||||||||||||||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||||||||||||||||
Balance Sheet Location | As of March 31, 2022 | As of December 31, 2021 | Balance Sheet Location | As of March 31, 2022 | As of December 31, 2021 | |||||||||||||||||||||||||||||||||
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 | $ | $ | ||||||||||||||||||||||||||||||||
Interest rate-swaps | Derivative financial instruments | Derivative financial instruments | ||||||||||||||||||||||||||||||||||||
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 | $ | $ | ||||||||||||||||||||||||||||||||
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 not designated as hedging instruments under 815-20 | ||||||||||||||||||||||||||||||||||||||
Total derivatives | $ | $ | $ | $ |
Carrying Value | ||||||||||||||||||||
Non-derivative instrument designated as hedging instrument under ASC 815-20 | Balance Sheet Location | As of March 31, 2022 | As of December 31, 2021 | |||||||||||||||||
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 March 31, 2022 | Quarter Ended March 31, 2021 | Quarter Ended March 31, 2022 | Quarter Ended March 31, 2021 | |||||||||||||||||||||||||||||
Interest rate swaps | Interest expense (income), 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 March 31, 2022 | As of December 31, 2021 | As of March 31, 2022 | As of December 31, 2021 | |||||||||||||||||||||||
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 Loss on Derivatives | |||||||||||||
Quarter Ended March 31, 2022 | Quarter Ended March 31, 2021 | |||||||||||||
Interest rate swaps | $ | $ | ||||||||||||
Foreign currency forward contracts | ( | ( | ||||||||||||
Fuel swaps | ||||||||||||||
$ | $ | ( |
Gain (Loss) Recognized in Income (Net Investment Excluded Components) | Three Months Ended March 31, 2022 | |||||||
Net inception fair value at January 1, 2022 | $ | ( | ||||||
Amount of gain recognized in income on derivatives for the period ended March 31, 2022 | ||||||||
Amount of gain (loss) remaining to be amortized in accumulated other comprehensive loss, as of March 31, 2022 | ( | |||||||
Fair value at March 31, 2022 | $ | ( |
Amount of Gain (Loss) Recognized in Other Comprehensive Loss | ||||||||||||||
Non-derivative instruments under ASC 815-20 Net Investment Hedging Relationships | Quarter Ended March 31, 2022 | Quarter Ended March 31, 2021 | ||||||||||||
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 March 31, 2022 | Quarter Ended March 31, 2021 | |||||||||||||||||
Foreign currency forward contracts | Other income (expense) | $ | ( | $ | ( | |||||||||||||||
Fuel swaps | Other income (expense) | ( | ||||||||||||||||||
$ | ( | $ | ( |
Quarter Ended March 31, | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
% of Total Revenues | % of Total Revenues | ||||||||||||||||||||||
Passenger ticket revenues | $ | 651,858 | 61.5 | % | $ | 20,844 | 49.6 | % | |||||||||||||||
Onboard and other revenues | 407,373 | 38.5 | % | 21,170 | 50.4 | % | |||||||||||||||||
Total revenues | 1,059,231 | 100.0 | % | 42,014 | 100.0 | % | |||||||||||||||||
Cruise operating expenses: | |||||||||||||||||||||||
Commissions, transportation and other | 150,343 | 14.2 | % | 2,949 | 7.0 | % | |||||||||||||||||
Onboard and other | 74,439 | 7.0 | % | 4,481 | 10.7 | % | |||||||||||||||||
Payroll and related | 349,618 | 33.0 | % | 96,636 | 230.0 | % | |||||||||||||||||
Food | 100,184 | 9.5 | % | 8,472 | 20.2 | % | |||||||||||||||||
Fuel | 188,480 | 17.8 | % | 41,822 | 99.5 | % | |||||||||||||||||
Other operating | 321,705 | 30.4 | % | 129,127 | 307.3 | % | |||||||||||||||||
Total cruise operating expenses | 1,184,769 | 111.9 | % | 283,487 | 674.7 | % | |||||||||||||||||
Marketing, selling and administrative expenses | 394,030 | 37.2 | % | 258,041 | 614.2 | % | |||||||||||||||||
Depreciation and amortization expenses | 339,467 | 32.0 | % | 310,166 | 738.2 | % | |||||||||||||||||
Impairment and credit losses | 173 | — | % | (449) | (1.1) | % | |||||||||||||||||
Operating Loss | (859,208) | (81.1) | % | (809,231) | (1,926.1) | % | |||||||||||||||||
Other (expense) income: | |||||||||||||||||||||||
Interest income | 3,322 | 0.3 | % | 4,861 | 11.6 | % | |||||||||||||||||
Interest expense, net of interest capitalized | (277,659) | (26.2) | % | (272,514) | (648.6) | % | |||||||||||||||||
Equity investment loss | (31,059) | (2.9) | % | (59,871) | (142.5) | % | |||||||||||||||||
Other (expense) income | (2,538) | (0.2) | % | 5,033 | 12.0 | % | |||||||||||||||||
(307,934) | (29.1) | % | (322,491) | (767.6) | % | ||||||||||||||||||
Net Loss | (1,167,142) | (110.2) | % | (1,131,722) | (2,693.7) | % | |||||||||||||||||
Diluted Loss per Share | $ | (4.58) | $ | (4.66) |
Quarter Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Net Loss | $ | (1,167,142) | $ | (1,131,722) | |||||||
Adjusted Net Loss | (1,164,373) | (1,078,279) | |||||||||
Net Adjustments to Net Loss | $ | 2,769 | $ | 53,443 | |||||||
Adjustments to Net Loss: | |||||||||||
Impairment and credit losses (recoveries) | $ | 173 | $ | (449) | |||||||
Restructuring charges and other initiatives expense | 973 | 1,317 | |||||||||
Amortization of Silversea Cruises intangible assets related to Silversea Cruises acquisition | 1,623 | 1,623 | |||||||||
Convertible debt amortization of debt discount (1) | — | 26,073 | |||||||||
Pullmantur reorganization settlement (2) | — | 5,000 | |||||||||
Loss on extinguishment of debt | — | 1,314 | |||||||||
Equity investment impairment (3) | — | 26,042 | |||||||||
Oasis of the Seas incident (4) | — | (1,321) | |||||||||
Net gain related to the sale of the Azamara brand | — | (6,156) | |||||||||
Net Adjustments to Net Loss | $ | 2,769 | $ | 53,443 | |||||||
Basic: | |||||||||||
Loss per Share | $ | (4.58) | $ | (4.66) | |||||||
Adjusted Loss per Share | $ | (4.57) | $ | (4.44) | |||||||
Diluted: | |||||||||||
Loss per Share | $ | (4.58) | $ | (4.66) | |||||||
Adjusted Loss per Share | $ | (4.57) | $ | (4.44) | |||||||
Weighted-Average Shares Outstanding: | |||||||||||
Basic | 254,821 | 243,004 | |||||||||
Diluted | 254,821 | 243,004 |
Quarter Ended March 31, | |||||||||||
2022 (1) | 2021 (2) | ||||||||||
Passengers Carried | 734,809 | 41,209 | |||||||||
Passenger Cruise Days | 4,418,899 | 144,916 | |||||||||
APCD | 7,692,906 | 384,224 | |||||||||
Occupancy | 57.4 | % | 37.7 | % |
Ship | Shipyard | Expected Delivery Date | Approximate Berths | |||||||||||
Royal Caribbean International — | ||||||||||||||
Oasis-class: | ||||||||||||||
Utopia of the Seas | Chantiers de l'Atlantique | 2nd Quarter 2024 | 5,700 | |||||||||||
Icon-class: | ||||||||||||||
Icon of the Seas | Meyer Turku Oy | 3rd Quarter 2023 | 5,600 | |||||||||||
Unnamed | Meyer Turku Oy | 2nd Quarter 2025 | 5,600 | |||||||||||
Unnamed | Meyer Turku Oy | 2nd Quarter 2026 | 5,600 | |||||||||||
Celebrity Cruises — | ||||||||||||||
Edge-class: | ||||||||||||||
Celebrity Beyond | Chantiers de l'Atlantique | 2nd Quarter 2022 | 3,250 | |||||||||||
Celebrity Ascent | Chantiers de l'Atlantique | 4th Quarter 2023 | 3,250 | |||||||||||
Silversea Cruises | ||||||||||||||
Evolution Class: | ||||||||||||||
Silver Nova | Meyer Werft | 2nd Quarter 2023 | 730 | |||||||||||
Unnamed | Meyer Werft | 2nd Quarter 2024 | 730 | |||||||||||
TUI Cruises (50% joint venture) | ||||||||||||||
Mein Schiff 7 | Meyer Turku Oy | 2nd Quarter 2024 | 2,900 | |||||||||||
Unnamed | Fincantieri | 4th Quarter 2024 | 4,100 | |||||||||||
Unnamed | Fincantieri | 2nd Quarter 2026 | 4,100 | |||||||||||
Total Berths | 41,560 |
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) | $ | 1,259,460 | $ | 106,539 | $ | 190,653 | $ | 150,551 | $ | 811,716 | |||||||||||||||||||
Interest on debt(2) | 6,429,812 | 1,548,190 | 2,278,074 | 1,488,442 | 1,115,106 | ||||||||||||||||||||||||
Other(3) | 693,702 | 206,408 | 180,781 | 130,679 | 175,834 | ||||||||||||||||||||||||
Investing Activities: | 0 | ||||||||||||||||||||||||||||
Ship purchase obligations(4) | 8,397,542 | 1,170,446 | 4,624,835 | 2,602,261 | — | ||||||||||||||||||||||||
Financing Activities: | 0 | ||||||||||||||||||||||||||||
Debt obligations(5) | 22,073,589 | 2,507,929 | 8,711,141 | 4,974,445 | 5,880,074 | ||||||||||||||||||||||||
Finance lease obligations(6) | 428,387 | 50,534 | 49,968 | 43,755 | 284,130 | ||||||||||||||||||||||||
Other(7) | 14,611 | 7,388 | 7,223 | — | — | ||||||||||||||||||||||||
Total | $ | 39,297,103 | $ | 5,597,434 | $ | 16,042,675 | $ | 9,390,133 | $ | 8,266,860 |
Period | Total number of shares purchased (1) | Average price paid per share | Total number of shares purchased as part of publicly announced plans or programs | Approximate dollar value of shares that may yet be purchased under the plans or programs | ||||||||||
January 1, 2022 - January 31,2022 | — | — | — | $ | — | |||||||||
February 1, 2022 - February 28, 2022 | 135,398 | 16.77 | — | $ | — | |||||||||
March 1, 2022 - March 31, 2022 | — | — | — | $ | — | |||||||||
Total | 135,398 | $ | 16.77 |
3.1 | ||||||||
4.1 | ||||||||
10.1 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 |
* | Filed herewith | |||||||
** | Furnished herewith |
ROYAL CARIBBEAN CRUISES LTD. | ||||||||
(Registrant) | ||||||||
/s/ NAFTALI HOLTZ | ||||||||
Naftali Holtz | ||||||||
Chief Financial Officer | ||||||||
May 5, 2022 | (Principal Financial Officer and duly authorized signatory) |
Date: | May 5, 2022 | |||||||
/s/ Jason T. Liberty | ||||||||
Jason T. Liberty | ||||||||
President and | ||||||||
Chief Executive Officer | ||||||||
(Principal Executive Officer) |
Date: | May 5, 2022 | |||||||
/s/ Naftali Holtz | ||||||||
Naftali Holtz | ||||||||
Chief Financial Officer | ||||||||
(Principal Financial Officer) |
Date: | May 5, 2022 | ||||||||||
By: | /s/ Jason T. Liberty | ||||||||||
Jason T. Liberty | |||||||||||
President and | |||||||||||
Chief Executive Officer | |||||||||||
(Principal Executive Officer) | |||||||||||
By: | /s/ Naftali Holtz | ||||||||||
Naftali Holtz | |||||||||||
Chief Financial Officer | |||||||||||
(Principal Financial Officer) |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Trade and other receivables, allowance for credit loss | $ 6,099 | $ 13,411 |
Other assets, allowance for credit loss | $ 86,594 | $ 86,781 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 282,973,716 | 282,703,246 |
Treasury stock, common shares (in shares) | 28,018,385 | 27,882,987 |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands |
Total |
Cumulative Effect, Period of Adoption, Adjustment |
Common Stock |
Paid-in Capital |
Paid-in Capital
Cumulative Effect, Period of Adoption, Adjustment
|
Retained Earnings (Deficit) |
Retained Earnings (Deficit)
Cumulative Effect, Period of Adoption, Adjustment
|
Accumulated Other Comprehensive Loss |
Treasury Stock |
---|---|---|---|---|---|---|---|---|---|
Beginning balance at Dec. 31, 2020 | $ 8,760,669 | $ 2,652 | $ 5,998,574 | $ 5,562,775 | $ (739,341) | $ (2,063,991) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Activity related to employee stock plans | 18,640 | 2 | 18,638 | ||||||
Common stock issuance | 1,496,276 | 170 | 1,496,106 | ||||||
Changes related to cash flow derivative hedges | 10,302 | 10,302 | |||||||
Change in defined benefit plans | 10,463 | 10,463 | |||||||
Foreign currency translation adjustments | 9,722 | 9,722 | |||||||
Purchase of treasury stock | (1,968) | (1,968) | |||||||
Net Loss | (1,131,722) | (1,131,722) | |||||||
Ending balance at Mar. 31, 2021 | 9,172,382 | 2,824 | 7,513,318 | 4,431,053 | (708,854) | (2,065,959) | |||
Beginning balance at Dec. 31, 2020 | 8,760,669 | 2,652 | 5,998,574 | 5,562,775 | (739,341) | (2,063,991) | |||
Ending balance at Dec. 31, 2021 | $ 5,085,556 | $ (161,420) | 2,827 | 7,557,297 | $ (307,640) | 302,276 | $ 146,220 | (710,885) | (2,065,959) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2020-06 [Member] | ||||||||
Activity related to employee stock plans | $ 17,928 | 3 | 17,888 | 37 | |||||
Changes related to cash flow derivative hedges | 195,901 | 195,901 | |||||||
Change in defined benefit plans | 12,597 | 12,597 | |||||||
Foreign currency translation adjustments | 7,778 | 7,778 | |||||||
Purchase of treasury stock | (2,270) | (2,270) | |||||||
Net Loss | (1,167,142) | (1,167,142) | |||||||
Ending balance at Mar. 31, 2022 | $ 3,988,928 | $ 2,830 | $ 7,267,545 | $ (718,609) | $ (494,609) | $ (2,068,229) |
General |
3 Months Ended |
---|---|
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | Note 1. General Description of Business We are a global cruise company. We own and operate three global cruise brands: Royal Caribbean International, Celebrity Cruises and Silversea Cruises (collectively, our "Global Brands"). We also own a 50% joint venture interest in TUI Cruises GmbH ("TUIC"), which operates the German brands TUI Cruises and Hapag-Lloyd Cruises (collectively, our "Partner Brands"). We account for our investments in our Partner Brands under the equity method of accounting. Together, our Global Brands and our Partner Brands have a combined fleet of 62 ships as of March 31, 2022. Our ships offer a selection of worldwide itineraries that call on more than 1,000 destinations on all seven continents. Management's Plan and Liquidity During 2021, we restarted our global cruise operations in a phased manner, following our voluntary suspension of global cruise operations that commenced in March of 2020 in response to the COVID-19 pandemic. Since then, we have steadily increased the number of ships that have returned to service. As of March 31, 2022, we returned to service 54 of our Global and Partner Brand ships, representing close to 90% of our worldwide capacity. Our return to service efforts incorporate our enhanced health and safety protocols, and the requirements of regulatory agencies, which has resulted in reduced guest occupancy, modified itineraries and vaccination protocols. Uncertainties remain as to the continuing effects COVID-19 will have on our operations, including potential increases in infection rates, new variants, and renewed governmental action to slow the spread of COVID-19, which may lead us to cancel or modify certain of our Global Brands’ cruise sailings. Additionally, there is uncertainty surrounding consumer behavior and demand for cruising. The continuing effects of COVID-19 to our guest cruise operations and the increased uncertainty given the current war in Ukraine, including its effect on the price of fuel and food, are collectively having a material negative impact on our business, including our liquidity, financial position and results of operations. Significant events affecting travel, including COVID-19, typically impact the booking pattern for cruise vacations, with the full extent of the impact generally determined by the length of time the event influences travel decisions. The estimation of our future liquidity requirements include numerous assumptions that are subject to various risks and uncertainties. The principal assumptions used to estimate our future liquidity requirements consist of: •Expected continued resumption of cruise operations and timing of cash collections for cruise bookings; •Expected increase in revenue per available passenger cruise day during our continued resumption of cruise operations; •Expected lower than comparable historical occupancy levels during our continued resumption of cruise operations, increasing over time until we reach historical occupancy levels; and •Expected spend during our continued resumption of cruise operations, including returning our crew members to our vessels and maintaining enhanced health and safety protocols. There can be no assurance that our assumptions and estimates are accurate due to the uncertainties noted above. Since the start of the pandemic, we have implemented a number of proactive measures to mitigate the financial and operational impacts of COVID-19, including reduction of capital expenditures and operating expenses, the issuance of debt and shares of our common stock, the amendment of credit agreements to defer payments, the waiver and/or modification of covenant requirements and the suspension of dividend payments. Additionally, we expect to continue to pursue refinancing opportunities to reduce interest expense and extend maturities. As of March 31, 2022, we had liquidity of $3.8 billion, including $1.1 billion of undrawn revolving credit facility capacity, $2.0 billion in cash and cash equivalents, and a $0.7 billion commitment for a 364-day term loan facility available to draw on at any time prior to August 12, 2022. Our revolving credit facilities were partially utilized through a combination of amounts drawn and letters of credit issued under the facilities as of March 31, 2022. As of March 31, 2022, we were in compliance with our financial covenants and we estimate we will be in compliance for the next twelve months. Refer to Note 6. Debt for further information regarding the amendments made to our debt facilities and credit card processing agreements, including related covenants. Based on our assumptions regarding the impact of COVID-19 and our resumption of operations, as well as our present financial condition, we believe that we have sufficient financial resources to fund our obligations for at least the next twelve months from the issuance of these financial statements. Beyond the next 12 months, in June of 2023, approximately $3.2 billion of long- term debt will become due. Accordingly, in addition to our $3.8 billion liquidity as of March 31 2022, in February 2022 we entered into certain agreements with Morgan Stanley & Co., LLC (“MS”) where MS agreed to provide backstop committed financing to refinance, repurchase and/or repay in whole or in part our existing and outstanding 10.875% Senior Secured Notes due 2023, 9.125% Senior Priority Guaranteed Notes due 2023 (the "Priority Guaranteed Notes"), and 4.25% Convertible Notes due 2023. Pursuant to the agreements, we may, at our sole option, issue and sell to MS (subject to the satisfaction of certain conditions) five-year senior unsecured notes with gross proceeds of up to $3.15 billion at any time between April 1, 2023 and June 29, 2023, to refinance the aforementioned notes. If the Company is unable to maintain the required minimum level of liquidity or negotiate its minimum liquidity requirements, it could have a significant adverse effect on the Company’s business, financial condition and operating results. Basis for Preparation of Consolidated Financial Statements The 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 Securities and Exchange Commission 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, 2021 for a discussion of our significant accounting policies. All significant intercompany accounts and transactions are eliminated in consolidation. We consolidate entities over which we have control, usually evidenced by a direct ownership interest of greater than 50%, and variable interest entities where we are determined to be the primary beneficiary. Refer to Note 5. Other Assets for further information regarding our variable interest entities. For affiliates we do not control but over which we have significant influence on financial and operating policies, usually evidenced by a direct ownership interest from 20% to 50%, the investment is accounted for using the equity method. Effective March 19, 2021, we sold our wholly-owned brand, Azamara Cruises ("Azamara"), including its three-ship fleet and associated intellectual property, to Sycamore Partners for $201 million, subject to closing adjustments. The March 2021 sale of Azamara did not represent a strategic shift that will have a major effect on our operations and financial results, as we continue to provide similar itineraries to and source passengers from the markets served by the Azamara business. Therefore, the sale of Azamara did not meet the criteria for discontinued operations reporting. Effective March 19, 2021, we no longer consolidate Azamara's balance sheet nor recognize its results of operations in our consolidated financial statements. We recognized an immaterial gain on the sale during the quarter ended March 31, 2021 and have agreed to provide certain transition services to Azamara for a period of time for a fee. Prior to October 1, 2021, we consolidated the operating results of Silversea Cruises on a three-month reporting lag to allow for more timely preparation of our consolidated financial statements. Effective October 1, 2021, we eliminated the three- month reporting lag to reflect Silversea Cruises' financial position, results of operations and cash flows concurrently and consistently with the fiscal calendar of the Company ("elimination of the Silversea reporting lag"). The elimination of the Silversea reporting lag represents a change in accounting principle which we believe to be preferable because it provides more current information to the users of our financial statements. A change in accounting principle requires retrospective application, if material. The impact of the elimination of the reporting lag was immaterial to prior periods and was immaterial for our fiscal year ended December 31, 2021. As a result, we have accounted for this change in accounting principle in our consolidated results for the quarter and year ended December 31, 2021. Accordingly, the results of Silversea Cruises from January 1, 2022 through March 31, 2022 are included in our consolidated statement of comprehensive loss for the quarter ended March 31, 2022 and the results of Silversea Cruises from October 1, 2020 through December 31, 2020 are included in our consolidated statement of comprehensive loss for the quarter ended March 31, 2021.
|
Summary of Significant Accounting Policies |
3 Months Ended |
---|---|
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies Adoption of Accounting Pronouncements In August 2020, the FASB issued , Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40) ("ASU 2020-06"), 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 guidance also decreases interest expense due to the reversal of the remaining non-cash convertible debt discount. On January 1, 2022, we adopted this pronouncement using the modified retrospective approach to recognize our convertible notes as single liability instruments given they do not qualify as derivatives under ASC 815, nor were they issued at a substantial premium. Accordingly, as of January 1, 2022, we recorded a $161.4 million increase to debt, primarily as a result of the reversal of the remaining non-cash convertible debt discount, as well as a reduction of $307.6 million to additional paid in capital, which resulted in a cumulative effect on adoption of approximately $146.2 million to increase retained earnings. Recent Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (“FASB") issued Accounting Standard Update (“ASU") No. 2020-04, Reference Rate Reform (Topic 848), which provides optional expedients and exceptions to the current guidance on contract modifications and hedging relationships to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative reference rates. Subsequently, in January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848), which presents amendments to clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The guidance in both ASUs was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. We are currently evaluating the impact of the new guidance on our consolidated financial statements. The impact, if any, will be dependent on the terms of any future contract modifications related to a change in reference rate.
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Revenues |
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Revenues | Note 3. 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. 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. The amounts of port costs charged to our guests and included within Passenger ticket revenues on a gross basis were $76.9 million and $1.5 million for the quarters ended March 31, 2022 and 2021, 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 over the duration of the related cruise. As a practical expedient, we have omitted disclosures on our remaining performance obligations as the duration of our contracts with customers is less than a year. Disaggregated Revenues The following table disaggregates our total revenues by geographic regions where we provide cruise itineraries (in thousands):
(1)Includes the United States, Canada, Mexico and the Caribbean. (2) Includes seasonality impacted itineraries primarily in South and Latin American countries. (3) 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 procurement and management related services we perform on behalf of our unconsolidated affiliates. Refer to Note 5. 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 ended March 31, 2022 and 2021, our guests were sourced from the following areas:
(1)No other individual country's revenue exceeded 10% for the quarters ended March 31, 2022 and 2021. 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. 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. Customer deposits presented in our consolidated balance sheets include contract liabilities of $1.2 billion and $0.8 billion as of March 31, 2022 and December 31, 2021, respectively. The COVID-19 pandemic has impacted the predictability of bookings and the associated customer deposits received. During the onset of the COVID-19 pandemic and subsequent emergence of related variants, we experienced significant cancellations, which led to the issuance of cash refunds to customers or credits for future cruises. As of March 31, 2022, refunds due to customers were $35.2 million compared to $38.8 million as of December 31, 2021, and are included within Accounts payable in our consolidated balance sheets. We have provided flexibility to guests with bookings on sailings cancelled due to COVID-19 by allowing guests to receive future cruise credits (“FCC”) or elect to receive refunds in cash. As of March 31, 2022, our customer deposit balance includes approximately $0.6 billion of unredeemed FCCs. As of March 31, 2022, the expiration date of the FCCs was extended through December 31, 2022, or one year from the original sailing date, whichever is later. Given the uncertainty of travel demand caused by COVID-19 and lack of comparable historical experience of FCC redemptions, we are unable to estimate the number of FCCs that may expire unused in future periods and get recognized as breakage. We will update our breakage analysis as future information is received. Contract Receivables and Contract Assets Although we generally require full payment from our customers prior to their cruise, we grant credit terms to a relatively small portion of our revenue sourced in select markets outside of the United States. As a result, we have outstanding receivables from passenger cruise contracts in those markets. We also have receivables from credit card merchants for cruise ticket purchases and goods and services sold to guests during cruises that are collected before, during or shortly after the cruise voyage. In addition, we have receivables due from concessionaires onboard our vessels. These receivables are included within Trade and other receivables, net in our consolidated balance sheets. We have contract assets that are conditional rights to consideration for satisfying the construction services performance obligations under a service concession arrangement. As of March 31, 2022 and December 31, 2021, our contract assets were $95.4 million and $52.9 million, respectively, and were included within Other assets in our consolidated balance sheets. Given the short duration of our cruises and our collection terms, we do not have any other significant contract assets. Assets Recognized from the Costs to Obtain a Contract with a Customer Prepaid travel advisor commissions are an incremental cost of obtaining contracts with customers that we recognize as an asset and include within Prepaid expenses and other assets in our consolidated balance sheets. Prepaid travel advisor commissions were $94.7 million as of March 31, 2022 and $75.4 million as of December 31, 2021. Substantially all of our prepaid travel advisor commissions at December 31, 2021 were expensed and reported primarily within Commissions, transportation and other in our consolidated statements of comprehensive loss for the quarter ended March 31, 2022.
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(Loss) Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Loss) Per Share | Note 4. (Loss) Per Share Basic and diluted (loss) per share is as follows (in thousands, except per share data):
Basic loss per share is computed by dividing Net Loss by the weighted-average number of common stock outstanding during each period. Diluted loss per share incorporates the incremental shares issuable upon the assumed exercise of stock options and conversion of potentially dilutive securities. As we had net losses for the three months ended March 31, 2022 and March 31, 2021, all potential common shares were determined to be antidilutive, resulting in the same basic and diluted net loss per share amounts for both these periods. There were approximately 23,407,179 and 413,501 antidilutive shares for the quarters ended March 31, 2022 and March 31, 2021, respectively. Effective January 1, 2022, ASU 2020-06 eliminated the treasury stock method and instead required the application of the if-converted method to calculate the impact of convertible instruments on diluted earnings per share when the instruments may be settled in cash or shares. Under the if-converted method, shares related to our convertible notes, to the extent dilutive, are assumed to be converted into common stock at the beginning of the reporting period. The required use of the if-converted method did not impact our diluted net loss per share as the Company was in a net loss position. For further information regarding the adoption of ASU 2020-06, refer to Note 2. Summary of Significant Accounting Policies.
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Other Assets |
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Other Assets | Note 5. 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 is 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. As of March 31, 2022, the net book value of our investment in TUIC was $404.0 million, primarily consisting of $286.2 million in equity and a loan of €99.1 million, or approximately $110.2 million based on the exchange rate at March 31, 2022. As of December 31, 2021, the net book value of our investment in TUIC was $444.4 million, primarily consisting of $322.4 million in equity and a loan of €103.0 million, or approximately $117.2 million based on the exchange rate at December 31, 2021. The loan, which was made in connection with the sale of Splendour of the Seas in April 2016, accrues interest at a rate of 6.25% per annum and is payable over 10 years. This loan is 50% guaranteed by TUI AG and is secured by a first priority mortgage on the ship. The majority of these amounts were included within Other assets in our consolidated balance sheets. During the quarter ended March 31, 2021, we and TUI AG each contributed €59.5 million, or approximately $69.9 million based on the exchange rate at March 31, 2021, of additional equity through a combination of cash contributions and conversion of existing receivables. 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 TUI Cruises below 37.55% through May 2033. Our investment amount and outstanding term loan are substantially our maximum exposure to loss in connection with our investment in TUIC. We have determined that Grand Bahama Shipyard Ltd. ("Grand Bahama"), a ship repair and maintenance facility in which we have a 40% noncontrolling interest, is a VIE. This facility serves cruise and cargo ships, oil and gas tankers and offshore units. We utilize this facility, among other ship repair facilities, for our regularly scheduled drydocks and certain emergency repairs as may be required. During the quarter ended March 31, 2022, we made payments of $3.7 million to Grand Bahama for ship repair and maintenance services. We have determined that we are not the primary beneficiary of this facility as we do not have the power to direct the activities that most significantly impact the facility’s economic performance. Accordingly, we do not consolidate this entity. As of March 31, 2022, we had exposure to credit loss in Grand Bahama consisting of a $10.6 million loan. Our loan to Grand Bahama matures March 2026 and bears interest at LIBOR plus 3.5% to 3.75%, capped at 5.75%. Interest payable on the loan is due on a semi-annual basis. During the quarter ended March 31, 2021, we received principal and interest payments of $8.9 million related to a term loan that had fully matured. We did not receive principal and interest payments during the quarter ended March 31, 2022. The outstanding loan balance is in non-accrual status and is included within Trade and other receivables, net and Other assets in our consolidated balance sheets. In addition, we are currently recognizing our share of net accumulated equity method losses against the carrying value of our loan receivable from Grand Bahama. We monitor credit risk associated with the loan through our participation on Grand Bahama’s board of directors along with our review of Grand Bahama’s financial statements and projected cash flows. 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) Represents dividends received from our investments accounted for under the equity method of accounting for the quarters ended March 31, 2022 and March 31, 2021.
(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 recorded the following as it relates to these services in our operating results within our consolidated statements of comprehensive income (loss) (in thousands):
Credit Losses We reviewed our notes receivable for credit losses in connection with the preparation of our financial statements for the quarter ended March 31, 2022. In evaluating the allowance, management considered factors such as historical loss experience, the types of loans and the amount of loans in the loan portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, peer group information and prevailing economic conditions. Based on these credit loss estimation factors, during the quarter ended March 31, 2022, we recorded a loss provision of $0.7 million. Our credit loss allowance beginning and ending balances as of January 1, 2022 and March 31, 2022 primarily relate to credit losses recognized on notes receivable for the previous sale of our property and equipment of $81.6 million and other receivable balances primarily related to loans due from travel advisors of $12.6 million. The following table summarizes our credit loss allowance related to receivables for the three months ended March 31, 2022 (in thousands):
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Debt |
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Debt | Note 6. Debt Debt consist of the following (in thousands):
(1) Interest rates based on outstanding loan balance as of March 31, 2022 and, for variable rate debt, include either LIBOR or EURIBOR plus the applicable margin. (2) Includes $1.9 billion facility and $1.3 billion facility, the vast majority of which is due in 2024. Our $1.9 billion facility accrues interest at LIBOR plus a maximum interest rate margin of 1.30%, which interest was 1.75% as of March 31, 2022 and is subject to a facility fee of a maximum of 0.20%. Our $1.3 billion facility accrues interest at LIBOR plus a maximum interest rate margin of 1.70%, which interest was 2.15% as of March 31, 2022 and is subject to a facility fee of a maximum of 0.30%. (3) At March 31, 2022 and December 31, 2021, the weighted average interest rate for total debt was 5.61% and 5.47%, respectively. In January 2022, we took delivery of Wonder of the Seas. To finance the delivery, we borrowed a total of $1.3 billion under a credit agreement novated to us upon delivery of the ship in January 2022, resulting in an unsecured term loan which is 100% guaranteed by Bpifrance Assurance Export ("BpiFAE"), the official export credit agency ("ECA") of France. The unsecured loan amortizes semi-annually over 12 years and bears interest at a fixed rate of 3.18% per annum. In January 2022, we issued $1.0 billion of senior notes (the "January 2022 Unsecured Notes") due in 2027 for net proceeds of approximately $990.0 million. Interest accrues on the January 2022 Unsecured Notes at a fixed rate of 5.375% per annum and is payable semi-annually in arrears. The proceeds from the January 2022 Unsecured Notes will be used to repay principal payments on debt maturing in 2022 (including to pay fees and expenses in connection with such repayments). Pending such debt maturities, we have temporarily applied the proceeds to repay borrowings under our revolving credit facilities, bringing our undrawn revolving credit facility capacity to $1.1 billion as of March 31, 2022. In February 2022, we entered into certain agreements with MS where MS agreed to provide backstop committed financing to refinance, repurchase and/or repay in whole or in part our existing and outstanding 10.875% Senior Secured Notes due 2023, Priority Guaranteed Notes and 4.25% Convertible Notes due 2023. Pursuant to the agreements, we may, at our sole option, issue and sell to MS (subject to the satisfaction of certain conditions) five-year senior unsecured notes with gross proceeds of up to $3.15 billion at any time between April 1, 2023 and June 29, 2023, to refinance the aforementioned notes. In April 2022, we took delivery of Celebrity Beyond. To finance the delivery, we borrowed a total of €0.7 billion under a credit agreement novated to us upon delivery of the ship in April 2022, resulting in an unsecured term loan which is 100% guaranteed by BpiFAE. The unsecured loan amortizes semi-annually over 12 years and bears interest at a fixed rate of 1.28% per annum. As of March 31, 2022, our aggregate revolving borrowing capacity was $3.2 billion and was partially utilized through a combination of amounts drawn and letters of credits issued under the facilities. Certain of our surety agreements with third party providers for the benefit of certain agencies and associations that provide travel related bonds, allow the sureties to request collateral. We also have agreements with our credit card processors relating to customer deposits received by us for future voyages. These agreements allow the credit card processors to require us, under certain circumstances, to maintain a reserve that can be satisfied by posting collateral. As of March 31, 2022, we have posted letters of credit as collateral with our sureties and credit card processors under our revolving credit facilities in the amount of $117.2 million Executed amendments are in place for the majority of our credit card processors, waiving reserve requirements tied to the breach of our financial covenants through at least September 30, 2022, with modified covenants thereafter, and as such, we do not anticipate any incremental collateral requirements for the processors covered by these waivers in the next 12 months. We have a reserve with a processor where the agreement was amended in the first quarter of 2021, such that proceeds are withheld in reserve, until the sailing takes place or the funds are refunded to the customer. The maximum projected exposure with the processor, including amounts currently withheld and reported in Trade and other receivables, is approximately $293.9 million. The amount and timing are dependent on future factors that are uncertain, such as the date we return to operations, volume and value of future deposits and whether we transfer our business to other processors. If we require additional waivers on the credit card processing agreements and are not able to obtain them, this could lead to the termination of these agreements or the trigger of reserve requirements. Except for the term loans we incurred to acquire Celebrity Flora and Silver Moon, all of our unsecured ship financing term loans are guaranteed by the export credit agency in the respective country in which the ship is constructed. For the majority of the loans as of March 31, 2022, we pay to the applicable export credit agency, depending on the financing agreement, an upfront fee of 2.35% to 5.48% of the maximum loan amount in consideration for these guarantees. We amortize the fees that are paid upfront over the life of the loan. We classify these fees within Amortization of debt issuance costs in our consolidated statements of cash flows. Prior to the loan being drawn, we present these fees within Other assets in our consolidated balance sheets. Once the loan is drawn, such fees are classified as a discount to the related loan, or contra-liability account, within Current portion of long-term debt or long-term debt. The following is a schedule of annual maturities on our total debt, net of debt issuance costs and including finance leases, as of March 31, 2022 for each of the next five years (in thousands):
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Note 7. Leases Operating Leases Our operating leases primarily relate to preferred berthing arrangements, real estate and shipboard equipment, and are included within Operating lease right-of-use assets, and Long-term operating lease liabilities with the current portion of the liability included within Current portion of operating lease liabilities in our consolidated balance sheets as of March 31, 2022 and December 31, 2021. Leases with an initial term of 12 months or less are not recorded on our consolidated balance sheet. We recognize lease expense for these leases on a straight-line basis over the lease term. Our operating leases include Silver Explorer, operated by Silversea Cruises. The operating lease for Silver Explorer will expire in 2023. For some of our real estate leases and berthing agreements, we do have the option to extend our current lease term. For those lease agreements with renewal options, the renewal periods for real estate leases range from 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. 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. Finance Leases In June 2019, the Company entered into a new master lease agreement (“Master Lease”) with Miami-Dade County related to the buildings and surrounding land located at its Miami headquarters, which has been classified as a finance lease in accordance with ASC 842, Leases. In January of 2022, we executed a modification to the Master Lease to extend the expiration of the lease from 2072 to 2074, which continues to include the two five-year options to extend the lease. We continue to consider the probability of exercising the two five-year options as reasonably certain. The modification of the Master Lease did not change the classification of the lease. The total aggregate amount of the finance lease liabilities recorded for this Master Lease are $100.3 million and $127.0 million as of March 31, 2022 and December 31, 2021, respectively. Silversea Cruises operates Silver Dawn under a sale-leaseback agreement with a bargain purchase option at the end of the 15-year lease term. Due to the bargain purchase option at the end of the lease term in 2036, whereby Silversea Cruises is reasonably certain of obtaining ownership of the ship, Silver Dawn is accounted for as a finance lease. The lease includes other purchase options beginning in year three, none of which are reasonably certain of being exercised at this time. The total aggregate amount of finance lease liabilities recorded for this ship are $279.0 million and $283.7 million as of March 31, 2022 and December 31, 2021, respectively. Silversea Cruises operates the Silver Whisper under a finance lease. The finance lease for Silver Whisper will expire in 2023, subject to an option to purchase the ship. Additionally, certain scheduled payments have been deferred and are reflected in Long-term debt in our Consolidated Balance Sheet as of March 31, 2022 and December 31, 2021. The total aggregate amount of the finance lease liabilities recorded for this ship was $16.6 million and $24.1 million at March 31, 2022 and December 31, 2021, respectively. The lease payments on the Silver Whisper are subject to adjustments based on the LIBOR rate. The carrying amounts of these ships are reported within Property and equipment, net in our Consolidated Balance Sheets as of March 31, 2022 and December 31, 2021. 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 quarter ended March 31, 2022, we had $7.5 million variable lease costs recorded within Commission, transportation and other in our consolidated statement of comprehensive 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 March 31, 2022, maturities related to lease liabilities were as follows (in thousands):
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Leases | Note 7. Leases Operating Leases Our operating leases primarily relate to preferred berthing arrangements, real estate and shipboard equipment, and are included within Operating lease right-of-use assets, and Long-term operating lease liabilities with the current portion of the liability included within Current portion of operating lease liabilities in our consolidated balance sheets as of March 31, 2022 and December 31, 2021. Leases with an initial term of 12 months or less are not recorded on our consolidated balance sheet. We recognize lease expense for these leases on a straight-line basis over the lease term. Our operating leases include Silver Explorer, operated by Silversea Cruises. The operating lease for Silver Explorer will expire in 2023. For some of our real estate leases and berthing agreements, we do have the option to extend our current lease term. For those lease agreements with renewal options, the renewal periods for real estate leases range from 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. 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. Finance Leases In June 2019, the Company entered into a new master lease agreement (“Master Lease”) with Miami-Dade County related to the buildings and surrounding land located at its Miami headquarters, which has been classified as a finance lease in accordance with ASC 842, Leases. In January of 2022, we executed a modification to the Master Lease to extend the expiration of the lease from 2072 to 2074, which continues to include the two five-year options to extend the lease. We continue to consider the probability of exercising the two five-year options as reasonably certain. The modification of the Master Lease did not change the classification of the lease. The total aggregate amount of the finance lease liabilities recorded for this Master Lease are $100.3 million and $127.0 million as of March 31, 2022 and December 31, 2021, respectively. Silversea Cruises operates Silver Dawn under a sale-leaseback agreement with a bargain purchase option at the end of the 15-year lease term. Due to the bargain purchase option at the end of the lease term in 2036, whereby Silversea Cruises is reasonably certain of obtaining ownership of the ship, Silver Dawn is accounted for as a finance lease. The lease includes other purchase options beginning in year three, none of which are reasonably certain of being exercised at this time. The total aggregate amount of finance lease liabilities recorded for this ship are $279.0 million and $283.7 million as of March 31, 2022 and December 31, 2021, respectively. Silversea Cruises operates the Silver Whisper under a finance lease. The finance lease for Silver Whisper will expire in 2023, subject to an option to purchase the ship. Additionally, certain scheduled payments have been deferred and are reflected in Long-term debt in our Consolidated Balance Sheet as of March 31, 2022 and December 31, 2021. The total aggregate amount of the finance lease liabilities recorded for this ship was $16.6 million and $24.1 million at March 31, 2022 and December 31, 2021, respectively. The lease payments on the Silver Whisper are subject to adjustments based on the LIBOR rate. The carrying amounts of these ships are reported within Property and equipment, net in our Consolidated Balance Sheets as of March 31, 2022 and December 31, 2021. 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 quarter ended March 31, 2022, we had $7.5 million variable lease costs recorded within Commission, transportation and other in our consolidated statement of comprehensive 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 March 31, 2022, maturities related to lease liabilities were as follows (in thousands):
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Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Note 8. Commitments and Contingencies Ship Purchase Obligations Our future capital commitments consist primarily of new ship orders. As of March 31, 2022, one Oasis-class ship and three ships of a new generation, known as our Icon-class, are on order for our Royal Caribbean International brand with an aggregate capacity of approximately 22,500 berths. As of March 31, 2022, 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 March 31, 2022, we have two ships on order for our Silversea Cruises brand with an aggregate capacity of approximately 1,460 berths. COVID-19 has impacted shipyard operations which have and may continue to result in delays of our previously contracted ship deliveries. As of March 31, 2022, the dates that the ships on order by our Global and Partner Brands are expected to be delivered, subject to change in the event of construction delays, and their approximate berths are as follows:
We took delivery of Celebrity Beyond in April of 2022. In addition, as of March 31, 2022, we have an agreement in place with Chantiers de l'Atlantique to build an additional Edge-class ship for delivery in 2025, which is contingent upon completion of conditions precedent and financing. As of March 31, 2022, the aggregate cost of our ships on order presented in the table above, excluding any ships on order by our Partner Brands, was approximately $10.7 billion, of which we had deposited $0.6 billion as of such date. Approximately 61.8% of the aggregate cost was exposed to fluctuations in the Euro exchange rate at March 31, 2022. Refer to Note 11. Fair Value Measurements and Derivative Instruments for further information. Litigation As previously reported, two lawsuits were filed against us in August 2019 in the U.S. District Court for the Southern District of Florida (the "Court") under Title III of the Cuban Liberty and Democratic Solidarity Act, also known as the Helms-Burton Act. The complaint filed by Havana Docks Corporation ("Havana Docks Action") alleges it holds an interest in the Havana Cruise Port Terminal, and the complaint filed by Javier Garcia-Bengochea (the "Port of Santiago Action") alleges that he holds an interest in the Port of Santiago, Cuba, both of which were expropriated by the Cuban government. The complaints further allege that we trafficked in those properties by embarking and disembarking passengers at these facilities. The plaintiffs seek all available statutory remedies, including the value of the expropriated property, plus interest, treble damages, attorneys’ fees and costs. The Court dismissed the Port of Santiago Action with prejudice on the basis that the plaintiff lacked standing, and the plaintiff’s appeal of the dismissal is awaiting a decision by the appellate court. In the Havana Docks Action, on March 21, 2022, the Court granted summary judgement in favor of the plaintiff as to liability, which we have sought permission from the Court to immediately appeal, and a trial on damages has been scheduled for September 2022. 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. Given that the outcome of the litigation is inherently unpredictable and subject to significant uncertainties, there can be no assurances that the final outcome of either case will not be material, and we cannot reasonably estimate the potential loss or range of loss, if any, associated with the litigation. We are routinely involved in claims typical within the cruise vacation industry. The majority of these claims are covered by insurance. We believe the outcome of such claims, net of expected insurance recoveries, will not have a material adverse impact on our financial condition or results of operations and cash flows. Other Some of the contracts that we enter into include indemnification provisions that obligate us to make payments to the counterparty if certain events occur. These contingencies generally relate to changes in taxes, increased lender capital costs and other similar costs. The indemnification clauses are often standard contractual terms and are entered into in the normal course of business. There are no stated or notional amounts included in the indemnification clauses and we are not able to estimate the maximum potential amount of future payments, if any, under these indemnification clauses. We have not been required to make any payments under such indemnification clauses in the past and, under current circumstances, we do not believe an indemnification in any material amount is probable. If any person acquires ownership of more than 50% of our common stock or, subject to certain exceptions, during any 24-month period, a majority of our board of directors is no longer comprised of individuals who were members of our board of directors on the first day of such period, we may be obligated to prepay indebtedness outstanding under our credit facilities, which we may be unable to replace on similar terms. Our 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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Mar. 31, 2022 | |
Equity [Abstract] | |
Shareholders' Equity | Note 9. Shareholders' Equity On January 1, 2022, we adopted using the modified retrospective approach to recognize our convertible notes as single liability instruments. As a result of the adoption of this pronouncement, the cumulative effect to Shareholders' equity was a reduction of $161.4 million. For further information regarding the entry recorded and the adoption of ASU 2020-06, refer to Note 2. Summary of Significant Accounting Policies. Common Stock Issued During March 2021, we issued 16.9 million shares of common stock, par value $0.01 per share, at a price of $91.00 per share. We received net proceeds of $1.5 billion from the sale of our common stock, after deducting the estimated offering expenses payable by us. Dividends During the second quarter of 2020, we agreed with certain of our lenders not to pay dividends or engage in common stock repurchases for so long as our debt covenant waivers are in effect. In addition, in the event we declare a dividend or engage in share repurchases, we will need to repay the amounts deferred under our export credit facilities. Accordingly, during the three months ended March 31, 2021 and 2022, we did not declare dividends. Pursuant to amendments made to these agreements during the first quarter of 2021, the restrictions on paying cash dividends and effectuating share repurchases were extended through and including the third quarter of 2022.
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Changes in Accumulated Other Comprehensive Loss |
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Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Accumulated Other Comprehensive Loss | Note 10. Changes in Accumulated Other Comprehensive Loss The following table presents the changes in accumulated other comprehensive loss by component for the quarters ended March 31, 2022 and 2021 (in thousands):
The following table presents reclassifications out of accumulated other comprehensive loss for the quarters ended March 31, 2022 and 2021 (in thousands):
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Fair Value Measurements and Derivative Instruments |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements and Derivative Instruments | Note 11. 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 March 31, 2022 and December 31, 2021. (4) Consists of cash and marketable securities with original maturities of less than 90 days. (5) Consists of unsecured revolving credit facilities, senior notes, term loans and convertible notes. These amounts do not include our finance lease obligations or commercial paper. Other Financial Instruments The carrying amounts of accounts receivable, accounts payable, accrued interest and accrued expenses approximate fair value at March 31, 2022 and December 31, 2021. 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. No Level 3 inputs were used in fair value measurements of Other financial instruments as of March 31, 2022 and December 31, 2021. (4)Consists of foreign currency forward contracts, interest rate swaps and fuel swaps. Refer to the "Fair Value of Derivative Instruments" table for breakdown by instrument type. (5) Consists of foreign currency forward contracts, interest rate swaps and fuel swaps. Refer to the "Fair Value of Derivative Instruments" table for breakdown by instrument type. The reported fair values are based on a variety of factors and assumptions. Accordingly, the fair values may not represent actual values of the financial instruments that could have been realized as of March 31, 2022 or December 31, 2021, 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 Nonfinancial instruments include items such as goodwill, indefinite-lived intangible assets, long-lived assets, right-of-use assets and equity method investments that are measured at fair value on a nonrecurring basis when events and circumstances indicate the carrying value is not recoverable. The following table presents information about the Company’s nonfinancial instruments recorded at fair value on a nonrecurring basis (in thousands):
(1) Amount is primarily composed of construction in progress assets that were impaired during the year ended 2021 due to a reduction in scope or the decision to not complete the projects. The impairments were calculated based on orderly liquidation values. The fair value of these assets was estimated as of the date the assets were last impaired. There were no nonfinancial instruments recorded at fair value as of March 31, 2022. 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 March 31, 2022, we had counterparty credit risk exposure under our derivative instruments of $157.7 million, which was limited to the cost of replacing the contracts in the event of non-performance by the counterparties to the contracts, the majority of which are currently our lending banks. We do not anticipate nonperformance by any of our significant counterparties. In addition, we have established guidelines we follow regarding credit ratings and instrument maturities to maintain safety and liquidity. We do not normally require collateral or other security to support credit relationships; however, in certain circumstances this option is available to us. Derivative Instruments We are exposed to market risk attributable to changes in interest rates, foreign currency exchange rates and fuel prices. We try to mitigate these risks through a combination of our normal operating and financing activities and through the use of derivative financial instruments pursuant to our hedging practices and policies. The financial impact of these hedging instruments is primarily offset by corresponding changes in the underlying exposures being hedged. We achieve this by closely matching the notional amount, term and conditions of the derivative instrument with the underlying risk being hedged. Although certain of our derivative financial instruments do not qualify or are not accounted for under hedge accounting, our objective is not to hold or issue derivative financial instruments for trading or other speculative purposes. We enter into various forward, swap and option contracts to manage our interest rate exposure and to limit our exposure to fluctuations in foreign currency exchange rates and fuel prices. These instruments are recorded on the balance sheet at their fair value and the vast majority are designated as hedges. We also use non-derivative financial instruments designated as hedges of our net investment in our foreign operations and investments. At inception of the hedge relationship, a derivative instrument that hedges the exposure to changes in the fair value of a firm commitment or a recognized asset or liability is designated as a fair value hedge. A derivative instrument that hedges a forecasted transaction or the variability of cash flows related to a recognized asset or liability is designated as a cash flow hedge. Changes in the fair value of derivatives that are designated as fair value hedges are offset against changes in the fair value of the underlying hedged assets, liabilities or firm commitments. Gains and losses on derivatives that are designated as cash flow hedges are recorded as a component of Accumulated other comprehensive loss until the underlying hedged transactions are recognized in earnings. The foreign currency transaction gain or loss of our non-derivative financial instruments and the changes in the fair value of derivatives designated as hedges of our net investment in foreign operations and investments are recognized as a component of Accumulated other comprehensive loss along with the associated foreign currency translation adjustment of the foreign operation or investment. In certain hedges of our net investment in foreign operations and investments, we exclude forward points from the assessment of hedge effectiveness and we amortize the related amounts directly into earnings. On an ongoing basis, we assess whether derivatives used in hedging transactions are "highly effective" in offsetting changes in the fair value or cash flow of hedged items. For our net investment hedges, we use the dollar offset method to measure effectiveness. For all other hedging programs, we use the long-haul method to assess hedge effectiveness using regression analysis for each hedge relationship. The methodology for assessing hedge effectiveness is applied on a consistent basis for each one of our hedging programs (i.e., interest rate, foreign currency ship construction, foreign currency net investment and fuel). For our regression analyses, we use an observation period of up to three years, utilizing market data relevant to the hedge horizon of each hedge relationship. High effectiveness is achieved when a statistically valid relationship reflects a high degree of offset and correlation between the changes in the fair values of the derivative instrument and the hedged item. If it is determined that a derivative is not highly effective as a hedge or hedge accounting is discontinued, any change in fair value of the derivative since the last date at which it was determined to be effective is recognized in earnings. Cash flows from derivative instruments that are designated as fair value or cash flow hedges are classified in the same category as the cash flows from the underlying hedged items. In the event that hedge accounting is discontinued, cash flows subsequent to the date of discontinuance are classified within investing activities. Cash flows from derivative instruments not designated as hedging instruments are classified as investing activities. We consider the classification of the underlying hedged item’s cash flows in determining the classification for the designated derivative instrument’s cash flows. We classify derivative instrument cash flows from hedges of benchmark interest rate or hedges of fuel expense as operating activities due to the nature of the hedged item. Likewise, we classify derivative instrument cash flows from hedges of foreign currency risk on our newbuild ship payments as investing activities. Interest Rate Risk Our exposure to market risk for changes in interest rates primarily relates to our debt obligations, including future interest payments. At March 31, 2022 and December 31, 2021, approximately 71.6% and 65.7%, respectively, of our debt was effectively fixed-rate debt. 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 March 31, 2022 and December 31, 2021, 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 March 31, 2022 and December 31, 2021, 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 March 31, 2022. (2)Interest rate swap agreements hedging the term loan of Odyssey of the Seas include LIBOR zero-floors matching the debt LIBOR zero-floor. The effective dates of the $421.7 million and $191.7 million interest rate swap agreements are October 2020 and October 2022, respectively. The unsecured term loan for the financing of Odyssey of the Seas was drawn on March 2021. These interest rate swap agreements are accounted for as cash flow hedges. The notional amount of interest rate swap agreements related to outstanding debt as of March 31, 2022 and December 31, 2021 was $2.9 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 March 31, 2022, the aggregate cost of our ships on order was $10.7 billion, of which we had deposited $618.5 million as of such date. These amounts do not include any ships placed on order that are contingent upon completion of conditions precedent and/or financing and any ships on order by our Partner Brands. Refer to Note 8. Commitments and Contingencies, for further information on our ships on order. At March 31, 2022 and December 31, 2021, approximately 61.8% and 59.0%, 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 first quarter of 2022, we maintained an average of approximately $0.8 billion of these foreign currency forward contracts. These instruments are not designated as hedging instruments. For the quarters ended March 31, 2022 and 2021, changes in the fair value of the foreign currency forward contracts resulted in losses of $7.0 million and $13.5 million, respectively, which offset gains arising from the remeasurement of monetary assets and liabilities denominated in foreign currencies in those same periods of $7.2 million and $4.4 million, respectively. These amounts were recognized in earnings within Other income (expense) in our consolidated statements of comprehensive 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 March 31, 2022, we maintained a foreign currency forward contract and designated it as a hedge of a portion of our net investments in TUI Cruises of €245.0 million, or approximately $272.5 million based on the exchange rate at March 31, 2022. This forward currency contract matured in April 2022. The notional amount of outstanding foreign exchange contracts, excluding the forward contracts entered into to minimize remeasurement volatility, as of March 31, 2022 and December 31, 2021 was $2.8 billion and $3.4 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 €99.0 million, or approximately $110.1 million, as of March 31, 2022. As of December 31, 2021, we had designated debt as a hedge of our net investments in TUI Cruises of €97.0 million, or approximately $110.3 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. Prior suspension of our cruise operations due to the COVID-19 pandemic and our gradual resumption of cruise operations has resulted in reductions to our forecasted fuel purchases. During the quarter ended March 31, 2021, we discontinued cash flow hedge accounting on 48 thousand metric tons of our fuel swap agreements maturing in 2021, which resulted in the reclassification of a net $4.4 million loss from Accumulated other comprehensive loss to Other income (expense). For the quarter ended March 31, 2022, we did not discontinue cash flow hedge accounting on any of our fuel swap agreements. Changes in the fair value of fuel swaps for which cash flow hedge accounting was discontinued are currently recognized in Other income (expense) each reporting period through the maturity dates of the fuel swaps. Future suspension of our operations or modifications to our itineraries may affect our expected forecasted fuel purchases which could result in further discontinuance of fuel swap cash flow hedge accounting and the reclassification of deferred gains or losses from Accumulated other comprehensive loss into earnings. Refer to Risk Factors in Part II, Item 1A. for further discussion on risks related to COVID-19. At March 31, 2022, we have hedged the variability in future cash flows for certain forecasted fuel transactions occurring through 2023. As of March 31, 2022 and December 31, 2021, we had the following outstanding fuel swap agreements:
(1) As of March 31, 2022, 69,550 metric tons relate to fuel swap agreements with discontinued hedge accounting, in which we effectively pay fixed prices and receive floating prices from the counterparty. The remaining 69,550 tons relate to fuel swap agreements that were not designated as hedges since inception, in which we effectively pay floating prices and receive fixed prices from the counterparty. As of March 31, 2022, there was $145.6 million of estimated unrealized gain 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 when compared to $23.8 million of estimated unrealized net gain at December 31, 2021. 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 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 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):
There was no amount recognized in income (ineffective portion and amount excluded from effectiveness testing) for the quarters ended March 31, 2022 and March 31, 2021. 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 March 31, 2022, our senior unsecured debt credit rating was B by Standard & Poor's and B2 by Moody's. As of March 31, 2022, six of our interest rate derivative hedges had a term of at least five years requiring us to post collateral of $16.7 million to satisfy our obligations under our interest rate derivative agreements, taking into account collateral waivers issued by certain banks. We expect that we will not need to provide additional collateral under these agreements in the next twelve months.
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Summary of Significant Accounting Policies (Policies) |
3 Months Ended |
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Mar. 31, 2022 | |
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 Securities and Exchange Commission 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, 2021 for a discussion of our significant accounting policies.
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Basis of Consolidation | All significant intercompany accounts and transactions are eliminated in consolidation. We consolidate entities over which we have control, usually evidenced by a direct ownership interest of greater than 50%, and variable interest entities where we are determined to be the primary beneficiary. Refer to Note 5. Other Assets for further information regarding our variable interest entities. For affiliates we do not control but over which we have significant influence on financial and operating policies, usually evidenced by a direct ownership interest from 20% to 50%, the investment is accounted for using the equity method. |
Adoption of Accounting Pronouncements; Recent Accounting Pronouncements | Adoption of Accounting Pronouncements In August 2020, the FASB issued , Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40) ("ASU 2020-06"), 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 guidance also decreases interest expense due to the reversal of the remaining non-cash convertible debt discount. On January 1, 2022, we adopted this pronouncement using the modified retrospective approach to recognize our convertible notes as single liability instruments given they do not qualify as derivatives under ASC 815, nor were they issued at a substantial premium. Accordingly, as of January 1, 2022, we recorded a $161.4 million increase to debt, primarily as a result of the reversal of the remaining non-cash convertible debt discount, as well as a reduction of $307.6 million to additional paid in capital, which resulted in a cumulative effect on adoption of approximately $146.2 million to increase retained earnings. Recent Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (“FASB") issued Accounting Standard Update (“ASU") No. 2020-04, Reference Rate Reform (Topic 848), which provides optional expedients and exceptions to the current guidance on contract modifications and hedging relationships to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative reference rates. Subsequently, in January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848), which presents amendments to clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The guidance in both ASUs was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. We are currently evaluating the impact of the new guidance on our consolidated financial statements. The impact, if any, will be dependent on the terms of any future contract modifications related to a change in reference rate.
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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 seasonality impacted itineraries primarily in South and Latin American countries. (3) 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 procurement and management related services we perform on behalf of our unconsolidated affiliates. Refer to Note 5. 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 ended March 31, 2022 and 2021, our guests were sourced from the following areas:
(1)No other individual country's revenue exceeded 10% for the quarters ended March 31, 2022 and 2021.
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(Loss) Per Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation Between Basic and Diluted Earnings Per Share | Basic and diluted (loss) per share is as follows (in thousands, except per share data):
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Other Assets (Tables) |
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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) Represents dividends received from our investments accounted for under the equity method of accounting for the quarters ended March 31, 2022 and March 31, 2021.
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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 also provide ship management services to TUIC and 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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Summary of Credit Loss Allowance | The following table summarizes our credit loss allowance related to receivables for the three months ended March 31, 2022 (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 March 31, 2022 and, for variable rate debt, include either LIBOR or EURIBOR plus the applicable margin. (2) Includes $1.9 billion facility and $1.3 billion facility, the vast majority of which is due in 2024. Our $1.9 billion facility accrues interest at LIBOR plus a maximum interest rate margin of 1.30%, which interest was 1.75% as of March 31, 2022 and is subject to a facility fee of a maximum of 0.20%. Our $1.3 billion facility accrues interest at LIBOR plus a maximum interest rate margin of 1.70%, which interest was 2.15% as of March 31, 2022 and is subject to a facility fee of a maximum of 0.30%. (3) At March 31, 2022 and December 31, 2021, the weighted average interest rate for total debt was 5.61% and 5.47%, respectively.
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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, as of March 31, 2022 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 March 31, 2022, maturities related to lease liabilities were as follows (in thousands):
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Schedule of Maturities, Finance Leases | As of March 31, 2022, maturities related to lease liabilities were as follows (in thousands):
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Commitment and Contingencies (Tables) |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Capital Commitments | As of March 31, 2022, the dates that the ships on order by our Global and Partner Brands are expected to be delivered, subject to change in the event of construction delays, and their approximate berths are as follows:
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Changes in Accumulated Other Comprehensive Loss (Tables) |
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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 loss by component for the quarters ended March 31, 2022 and 2021 (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 loss for the quarters ended March 31, 2022 and 2021 (in thousands):
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Fair Value Measurements and Derivative Instruments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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 March 31, 2022 and December 31, 2021. (4) Consists of cash and marketable securities with original maturities of less than 90 days. (5) Consists of unsecured revolving credit facilities, senior notes, term loans and convertible notes. These amounts do not include our finance lease obligations or commercial paper. The following table presents information about the Company’s nonfinancial instruments recorded at fair value on a nonrecurring basis (in thousands):
(1) Amount is primarily composed of construction in progress assets that were impaired during the year ended 2021 due to a reduction in scope or the decision to not complete the projects. The impairments were calculated based on orderly liquidation values. The fair value of these assets was estimated as of the date the assets were last impaired.
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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. No Level 3 inputs were used in fair value measurements of Other financial instruments as of March 31, 2022 and December 31, 2021. (4)Consists of foreign currency forward contracts, interest rate swaps and fuel swaps. Refer to the "Fair Value of Derivative Instruments" table for breakdown by instrument type. (5) Consists of foreign currency forward contracts, interest rate swaps and fuel swaps. Refer to the "Fair Value of Derivative Instruments" table for breakdown by instrument type.
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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 March 31, 2022 and December 31, 2021, we had the following outstanding fuel swap agreements:
(1) As of March 31, 2022, 69,550 metric tons relate to fuel swap agreements with discontinued hedge accounting, in which we effectively pay fixed prices and receive floating prices from the counterparty. The remaining 69,550 tons relate to fuel swap agreements that were not designated as hedges since inception, in which we effectively pay floating prices and receive fixed prices from the counterparty.
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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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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 March 31, 2022 and December 31, 2021, 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 loss was as follows (in thousands):
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Cash flow hedge | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Interest Rate Derivatives | At March 31, 2022 and December 31, 2021, 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 March 31, 2022. (2)Interest rate swap agreements hedging the term loan of Odyssey of the Seas include LIBOR zero-floors matching the debt LIBOR zero-floor. The effective dates of the $421.7 million and $191.7 million interest rate swap agreements are October 2020 and October 2022, respectively. The unsecured term loan for the financing of Odyssey of the Seas was drawn on March 2021.
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Derivative Instruments, Gain (Loss) | The effect of derivative instruments qualifying and designated as cash flow hedging instruments on the consolidated financial statements was as follows (in thousands):
The table below represents amounts excluded from the assessment of effectiveness for our net investment hedging instruments for which the difference between changes in fair value and periodic amortization is recorded in accumulated other comprehensive income (loss) (in thousands):
|
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Mar. 31, 2022 |
|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2020-06 [Member] | |
Decrease to retained earnings | $ (302,276) | $ 718,609 |
Cumulative Effect, Period of Adoption, Adjustment | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Decrease to retained earnings | 146,200 | |
Decrease to additional paid in capital | 307,600 | |
Increase to debt | $ 161,400 |
Revenues - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
Dec. 31, 2021 |
|
Capitalized Contract Cost [Line Items] | |||
Passenger ticket revenues | $ 1,059,231 | $ 42,014 | |
Contract liability | 1,200,000 | $ 800,000 | |
Customer refunds | 35,200 | 38,800 | |
Future cruise credits | 600,000 | ||
Contract asset | 95,400 | 52,900 | |
Commission, transportation and other | |||
Capitalized Contract Cost [Line Items] | |||
Prepaid travel agent commissions | $ 94,700 | $ 75,400 | |
Minimum | |||
Capitalized Contract Cost [Line Items] | |||
Length of cruise | 2 days | ||
Maximum | |||
Capitalized Contract Cost [Line Items] | |||
Length of cruise | 25 days | ||
Port Costs | |||
Capitalized Contract Cost [Line Items] | |||
Passenger ticket revenues | $ 76,900 | $ 1,500 |
Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Total revenues | $ 1,059,231 | $ 42,014 | ||||||||
Cruise Itinerary | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Total revenues | 1,004,778 | 30,695 | ||||||||
Cruise Itinerary | North America | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Total revenues | [1] | 889,087 | 0 | |||||||
Cruise Itinerary | Asia Pacific | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Total revenues | 34,633 | 29,885 | ||||||||
Cruise Itinerary | Europe | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Total revenues | 1,425 | 0 | ||||||||
Cruise Itinerary | Other regions | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Total revenues | [2] | 79,633 | 810 | |||||||
Other Revenues | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Total revenues | [3] | $ 54,453 | $ 11,319 | |||||||
Passenger Ticket | Other regions | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Percentage of revenues by country | [4] | 12.00% | 0.00% | |||||||
Passenger Ticket | United States | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Percentage of revenues by country | 84.00% | 0.00% | ||||||||
Passenger Ticket | Singapore | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Percentage of revenues by country | 4.00% | 69.00% | ||||||||
Passenger Ticket | China | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Percentage of revenues by country | 0.00% | 31.00% | ||||||||
|
(Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Earnings Per Share [Abstract] | ||
Net (Loss) for basic and diluted loss per share | $ (1,167,142) | $ (1,131,722) |
Weighted-average common shares outstanding (in shares) | 254,821,000 | 243,004,000 |
Diluted weighted-average shares outstanding (in shares) | 254,821,000 | 243,004,000 |
Basic (loss) per share (in dollars per share) | $ (4.58) | $ (4.66) |
Diluted (loss) per share (in dollars per share) | $ (4.58) | $ (4.66) |
Antidilutive securities (in shares) | 23,407,179 | 413,501 |
Other Assets - Narrative (Details) € in Millions |
1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|---|
Apr. 30, 2016 |
Mar. 31, 2022
USD ($)
|
Mar. 31, 2021
USD ($)
|
Mar. 31, 2021
EUR (€)
|
Dec. 31, 2021
USD ($)
|
Mar. 31, 2022
EUR (€)
|
Dec. 31, 2021
EUR (€)
|
|
Other Assets | |||||||
Proceeds from collection of advance to affiliate | $ 4,444,000 | $ 12,519,000 | |||||
Loss provision for receivables | $ 653,000 | $ 81,600,000 | |||||
Minimum | |||||||
Other Assets | |||||||
Percentage of ownership interest | 20.00% | 20.00% | |||||
Maximum | |||||||
Other Assets | |||||||
Percentage of ownership interest | 50.00% | 50.00% | |||||
TUI Cruises GmbH joint venture | |||||||
Other Assets | |||||||
Percentage of ownership interest | 50.00% | 50.00% | |||||
TUI Cruises GmbH joint venture | Not Primary Beneficiary | |||||||
Other Assets | |||||||
Percentage of ownership interest | 50.00% | 50.00% | |||||
Investments in entity | $ 404,000,000 | 444,400,000 | |||||
Underlying equity in net assets | 286,200,000 | 322,400,000 | |||||
Advances to affiliate | $ 110,200,000 | $ 117,200,000 | € 99.1 | € 103.0 | |||
Contribution amount | 69,900,000 | € 59.5 | |||||
TUI Cruises GmbH joint venture | TUI cruise ships | |||||||
Other Assets | |||||||
Restriction on reduction of current ownership interest (as a percent) | 37.55% | 37.55% | |||||
TUI Cruises GmbH joint venture | Splendour of the Seas | Not Primary Beneficiary | |||||||
Other Assets | |||||||
Debt instrument, term | 10 years | ||||||
Grand Bahamas Shipyard Ltd. | Not Primary Beneficiary | |||||||
Other Assets | |||||||
Percentage of ownership interest | 40.00% | 40.00% | |||||
Related party transaction, payment amount for ship repair and maintenance | $ 3,700,000 | ||||||
Grand Bahamas Shipyard Ltd. | Not Primary Beneficiary | Loans Receivable | |||||||
Other Assets | |||||||
Advances to affiliate | 10,600,000 | ||||||
Grand Bahamas Shipyard Ltd. | Not Primary Beneficiary | Non-accrual status of advances to affiliates | |||||||
Other Assets | |||||||
Proceeds from collection of advance to affiliate | $ 0 | $ 8,900,000 | |||||
Grand Bahamas Shipyard Ltd. | Not Primary Beneficiary | Non-accrual status of advances to affiliates | Maximum | |||||||
Other Assets | |||||||
Interest rate on loan provided to related party (as a percent) | 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 | 3.50% | ||||||
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% | ||||||
Pullmantur Holdings | |||||||
Other Assets | |||||||
Loss provision for receivables | $ 12,600,000 | ||||||
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% |
Other Assets - Share of Equity Income From Investments (Details) - USD ($) $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|||
Other Assets [Abstract] | ||||
Share of equity (loss) income from investments | $ (31,059) | $ (59,871) | ||
Dividends received | [1] | $ 423 | $ 0 | |
|
Other Assets - Notes Receivable Due From Equity Instruments (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
||||
---|---|---|---|---|---|---|
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||||
Total notes receivable due from equity investments | $ 123,157 | $ 130,587 | ||||
Less-current portion | [1] | 21,069 | 21,508 | |||
Long-term portion | [2] | $ 102,088 | $ 109,079 | |||
|
Other Assets - Related Party Transactions (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Other Assets [Abstract] | ||
Revenues | $ 6,372 | $ 5,231 |
Expenses | $ 1,826 | $ 1,275 |
Other Assets - Summary of Credit Loss Allowance (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2022 |
Dec. 31, 2021 |
|
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance January 1, 2022 | $ 100,192 | |
Loss provision for receivables | 653 | $ 81,600 |
Write-offs | (8,152) | |
Ending balance March 31, 2022 | $ 92,693 | $ 100,192 |
Debt - Summary of Debt (Details) - USD ($) |
3 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 |
Dec. 31, 2021 |
|||||||
Debt Instrument [Line Items] | ||||||||
Finance lease liabilities | $ 428,387,000 | $ 472,275,000 | ||||||
Total debt | [1] | 22,918,866,000 | 21,453,872,000 | |||||
Less: unamortized debt issuance costs | (416,890,000) | (363,532,000) | ||||||
Total debt, net of unamortized debt issuance costs | 22,501,976,000 | 21,090,340,000 | ||||||
Less—current portion | (2,558,463,000) | (2,243,131,000) | ||||||
Long-term portion | $ 19,943,513,000 | $ 18,847,209,000 | ||||||
Weighted average interest rate | 5.61% | 5.47% | ||||||
Total fixed rate debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 14,795,869,000 | $ 12,377,882,000 | ||||||
Unsecured senior notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 6,598,558,000 | 5,604,498,000 | ||||||
Unsecured senior notes | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | [2] | 3.70% | ||||||
Unsecured senior notes | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | [2] | 9.13% | ||||||
Secured senior notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 2,357,803,000 | 2,354,037,000 | ||||||
Secured senior notes | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | [2] | 10.88% | ||||||
Secured senior notes | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | [2] | 11.50% | ||||||
Unsecured term loans | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 4,114,508,000 | 2,860,567,000 | ||||||
Unsecured term loans | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | [2] | 2.53% | ||||||
Unsecured term loans | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | [2] | 5.89% | ||||||
Convertible notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 1,725,000,000 | 1,558,780,000 | ||||||
Convertible notes | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | [2] | 2.88% | ||||||
Convertible notes | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | [2] | 4.25% | ||||||
Total variable rate debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 7,694,610,000 | 8,603,715,000 | ||||||
Unsecured revolving credit facilities | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | [3] | 1,909,342,000 | 2,899,342,000 | |||||
Maximum borrowing capacity | $ 3,200,000,000 | |||||||
Unsecured revolving credit facilities | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Current interest rate | [2],[3] | 1.75% | ||||||
Unsecured revolving credit facilities | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Current interest rate | 2.15% | |||||||
Unsecured revolving credit facilities | Unsecured Revolving Credit Facility Due 2024 | ||||||||
Debt Instrument [Line Items] | ||||||||
Current interest rate | 1.75% | |||||||
Maximum borrowing capacity | $ 1,900,000,000 | |||||||
Facility fee | 0.20% | |||||||
Unsecured revolving credit facilities | Unsecured Revolving Credit Facility Due 2024 | LIBOR | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, basis spread on variable rate | 1.30% | |||||||
Unsecured revolving credit facilities | Unsecured Revolving Credit Facility Due 2024 | ||||||||
Debt Instrument [Line Items] | ||||||||
Current interest rate | 2.15% | |||||||
Maximum borrowing capacity | $ 1,300,000,000 | |||||||
Unsecured revolving credit facilities | Unsecured Revolving Credit Facility Due 2024 | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Facility fee | 0.30% | |||||||
Unsecured revolving credit facilities | Unsecured Revolving Credit Facility Due 2024 | LIBOR | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, basis spread on variable rate | 1.70% | |||||||
USD unsecured term loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 5,114,768,000 | 5,018,740,000 | ||||||
USD unsecured term loan | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Current interest rate | [2] | 1.84% | ||||||
USD unsecured term loan | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Current interest rate | [2] | 4.95% | ||||||
Euro unsecured term loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 670,500,000 | $ 685,633,000 | ||||||
Euro unsecured term loan | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Current interest rate | [2] | 1.15% | ||||||
Euro unsecured term loan | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Current interest rate | [2] | 2.25% | ||||||
|
Debt - Narrative (Details) - USD ($) |
1 Months Ended | 3 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Apr. 30, 2022 |
Feb. 28, 2022 |
Jan. 31, 2022 |
Jul. 31, 2017 |
Mar. 31, 2022 |
Mar. 31, 2021 |
|||
Long-Term Debt | ||||||||
Debt instrument, collateral amount | $ 117,200,000 | |||||||
Credit card processor agreement, maximum exposure | $ 293,900,000 | |||||||
Senior Unsecured Note, Backstop Committed Financing | ||||||||
Long-Term Debt | ||||||||
Debt instrument, term | 5 years | |||||||
Debt instrument, face amount | $ 3,150,000,000 | |||||||
Bpifrance Assurance Export | Novation Agreement, July 2017 | ||||||||
Long-Term Debt | ||||||||
Debt, guaranteed percentage | 100.00% | |||||||
Bpifrance Assurance Export | Unsecured Term Loan Agreement | Subsequent Event | ||||||||
Long-Term Debt | ||||||||
Debt, guaranteed percentage | 100.00% | |||||||
Revolving Credit Facility | ||||||||
Long-Term Debt | ||||||||
Maximum borrowing capacity | 1,100,000,000 | |||||||
Unsecured term loans | Novation Agreement, July 2017 | ||||||||
Long-Term Debt | ||||||||
Proceeds from debt | $ 1,300,000,000 | |||||||
Debt instrument, term | 12 years | |||||||
Interest rate | 3.18% | |||||||
Unsecured term loans | Unsecured Term Loan Agreement | Subsequent Event | ||||||||
Long-Term Debt | ||||||||
Proceeds from debt | $ 700,000,000 | |||||||
Debt instrument, term | 12 years | |||||||
Interest rate | 1.28% | |||||||
Unsecured senior notes | Senior Notes Due 2027 | ||||||||
Long-Term Debt | ||||||||
Interest rate | 5.375% | |||||||
Debt instrument, face amount | $ 1,000,000,000 | |||||||
Proceeds from senior notes | $ 990,000,000 | |||||||
Unsecured senior notes | Senior Guaranteed Notes | ||||||||
Long-Term Debt | ||||||||
Interest rate | 9.125% | |||||||
Revolving Credit Facility | ||||||||
Long-Term Debt | ||||||||
Maximum borrowing capacity | $ 3,200,000,000 | |||||||
Secured senior notes | Senior Secured Notes, Due 2023 | ||||||||
Long-Term Debt | ||||||||
Interest rate | 10.875% | |||||||
Convertible notes | Convertible Notes 4.25%, Due 2023 | ||||||||
Long-Term Debt | ||||||||
Interest rate | 4.25% | |||||||
Maximum | Unsecured term loans | ||||||||
Long-Term Debt | ||||||||
Interest rate | [1] | 5.89% | ||||||
Maximum | Unsecured senior notes | ||||||||
Long-Term Debt | ||||||||
Interest rate | [1] | 9.13% | ||||||
Maximum | Secured senior notes | ||||||||
Long-Term Debt | ||||||||
Interest rate | [1] | 11.50% | ||||||
Maximum | Convertible notes | ||||||||
Long-Term Debt | ||||||||
Interest rate | [1] | 4.25% | ||||||
Maximum | Contract With Customer, Liability, Up-Front Payment Arrangement | ||||||||
Long-Term Debt | ||||||||
Credit agency fees, percentage of loan amount payable | 5.48% | |||||||
Minimum | Unsecured term loans | ||||||||
Long-Term Debt | ||||||||
Interest rate | [1] | 2.53% | ||||||
Minimum | Unsecured senior notes | ||||||||
Long-Term Debt | ||||||||
Interest rate | [1] | 3.70% | ||||||
Minimum | Secured senior notes | ||||||||
Long-Term Debt | ||||||||
Interest rate | [1] | 10.88% | ||||||
Minimum | Convertible notes | ||||||||
Long-Term Debt | ||||||||
Interest rate | [1] | 2.88% | ||||||
Minimum | Contract With Customer, Liability, Up-Front Payment Arrangement | ||||||||
Long-Term Debt | ||||||||
Credit agency fees, percentage of loan amount payable | 2.35% | |||||||
|
Debt - Schedule of Maturities (Details) $ in Thousands |
Mar. 31, 2022
USD ($)
|
---|---|
Debt Disclosure [Abstract] | |
Remainder of 2022 | $ 2,273,401 |
2023 | 5,665,482 |
2024 | 3,128,924 |
2025 | 2,417,492 |
2026 | 2,614,571 |
Thereafter | 6,402,106 |
Total | $ 22,501,976 |
Leases - Narrative (Details) $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2022
USD ($)
|
Jan. 31, 2022
extension_option
|
Dec. 31, 2021
USD ($)
|
Nov. 30, 2021 |
|
Lessee, Lease, Description [Line Items] | ||||
Present value of lease liabilities | $ 428,387 | $ 472,275 | ||
Variable lease cost | 7,500 | |||
Land and Building | ||||
Lessee, Lease, Description [Line Items] | ||||
Number of extension options | extension_option | 2 | |||
Additional lease term | 5 years | |||
Present value of lease liabilities | 100,300 | 127,000 | ||
Ships | Silver Dawn | ||||
Lessee, Lease, Description [Line Items] | ||||
Finance lease term | 15 years | |||
Present value of lease liabilities | 279,000 | 283,700 | ||
Ships | Silver Whisper | ||||
Lessee, Lease, Description [Line Items] | ||||
Present value of lease liabilities | $ 16,600 | $ 24,100 | ||
Minimum | Real Estate | ||||
Lessee, Lease, Description [Line Items] | ||||
Renewal term | 1 year | |||
Minimum | Berthing Agreement | ||||
Lessee, Lease, Description [Line Items] | ||||
Renewal term | 1 year | |||
Maximum | Real Estate | ||||
Lessee, Lease, Description [Line Items] | ||||
Renewal term | 10 years | |||
Maximum | Berthing Agreement | ||||
Lessee, Lease, Description [Line Items] | ||||
Renewal term | 20 years |
Leases - Schedule of Lease Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Lease, Cost [Abstract] | ||
Amortization of right-of-use-assets | $ 6,093 | $ 3,744 |
Interest on lease liabilities | 4,600 | 310 |
Total lease costs | 43,669 | 15,219 |
Commission, transportation and other | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease costs | 22,729 | 0 |
Other operating expenses | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease costs | 5,471 | 5,130 |
Marketing, selling and administrative expenses | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease costs | $ 4,776 | $ 6,035 |
Leases - Schedule of Lease Terms and Discount Rates (Details) |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Weighted average of the remaining lease term in years | ||
Operating leases | 18 years 14 days | 18 years 2 months 4 days |
Finance leases | 22 years 10 months 24 days | 23 years 11 months 15 days |
Weighted average discount rate | ||
Operating leases | 6.53% | 6.52% |
Finance leases | 5.95% | 5.54% |
Leases - Supplemental Noncash Information (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 28,193 | $ 5,531 |
Operating cash flows from finance leases | 4,600 | 310 |
Financing cash flows from finance leases | $ 17,034 | $ 4,305 |
Leases - Schedule of Lease Maturities (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Operating Leases | ||
Remainder of 2022 | $ 79,074 | |
2023 | 108,241 | |
2024 | 89,214 | |
2025 | 81,594 | |
2026 | 75,519 | |
Thereafter | 825,818 | |
Total lease payments | 1,259,460 | |
Less: Interest | (661,302) | |
Present value of lease liabilities | 598,158 | |
Finance Leases | ||
Remainder of 2022 | 49,240 | |
2023 | 53,069 | |
2024 | 44,348 | |
2025 | 43,986 | |
2026 | 38,843 | |
Thereafter | 704,535 | |
Total lease payments | 934,021 | |
Less: Interest | (505,634) | |
Present value of lease liabilities | $ 428,387 | $ 472,275 |
Commitments and Contingencies - Narrative (Details) $ in Millions |
1 Months Ended | 3 Months Ended | |
---|---|---|---|
Aug. 31, 2019
lawsuit
|
Mar. 31, 2022
USD ($)
berth
ship
|
Dec. 31, 2021 |
|
Commitments and Contingencies | |||
Ship passenger capacity berths | berth | 41,560 | ||
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 | $ | $ 10,700.0 | ||
Deposit for the purchase of ships expected to enter service | $ | $ 618.5 | ||
Percentage of aggregate cost exposed to fluctuations in the euro exchange rate | 61.80% | 59.00% | |
Line of Credit | Minimum | |||
Commitments and Contingencies | |||
Debt instrument covenant, minimum percentage of ownership by a person | 50.00% | ||
Debt Securities | Minimum | |||
Commitments and Contingencies | |||
Debt instrument covenant, minimum percentage of ownership by a person | 50.00% | ||
Royal Caribbean International Cruise Ships | Cruise ships on order | |||
Commitments and Contingencies | |||
Ship passenger capacity berths | berth | 22,500 | ||
Royal Caribbean International Cruise Ships | Utopia of the Seas | Cruise ships on order | |||
Commitments and Contingencies | |||
Number of ships under construction | ship | 1 | ||
Royal Caribbean International Cruise Ships | Project Icon Ships | Cruise ships on order | |||
Commitments and Contingencies | |||
Number of ships under construction | ship | 3 | ||
Celebrity Cruises | Edge Class Ships | Cruise ships on order | |||
Commitments and Contingencies | |||
Number of ships under construction | ship | 2 | ||
Ship passenger capacity berths | berth | 6,500 | ||
Silversea Cruises | Silversea Cruises | Cruise ships on order | |||
Commitments and Contingencies | |||
Number of ships under construction | ship | 2 | ||
Ship passenger capacity berths | berth | 1,460 |
Commitment and Contingencies - Capital Commitments (Details) |
Mar. 31, 2022
berth
|
---|---|
Long-term Purchase Commitment [Line Items] | |
Ship passenger capacity berths | 41,560 |
Royal Caribbean International | Utopia of the Seas | |
Long-term Purchase Commitment [Line Items] | |
Ship passenger capacity berths | 5,700 |
Royal Caribbean International | Icon of the Seas | |
Long-term Purchase Commitment [Line Items] | |
Ship passenger capacity berths | 5,600 |
Royal Caribbean International | Icon Class, Unnamed Ship Two | |
Long-term Purchase Commitment [Line Items] | |
Ship passenger capacity berths | 5,600 |
Royal Caribbean International | 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 | Celebrity Ascent | |
Long-term Purchase Commitment [Line Items] | |
Ship passenger capacity berths | 3,250 |
Silversea Cruises | Silver Nova | |
Long-term Purchase Commitment [Line Items] | |
Ship passenger capacity berths | 730 |
Silversea Cruises | Evolution Class, Unnamed | |
Long-term Purchase Commitment [Line Items] | |
Ship passenger capacity berths | 730 |
TUI Cruises | Mein Schiff 7 | |
Long-term Purchase Commitment [Line Items] | |
Ship passenger capacity berths | 2,900 |
TUI Cruises | TUI Cruises, Unnamed Ship One | |
Long-term Purchase Commitment [Line Items] | |
Ship passenger capacity berths | 4,100 |
TUI Cruises | TUI Cruises, Unnamed Ship Two | |
Long-term Purchase Commitment [Line Items] | |
Ship passenger capacity berths | 4,100 |
Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions |
1 Months Ended | 3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Mar. 31, 2021 |
Mar. 31, 2022 |
Mar. 31, 2021 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2020-06 [Member] | ||||
Change in stockholders' equity | $ 9,172,382 | $ 3,988,928 | $ 9,172,382 | $ 5,085,556 | $ 8,760,669 |
Shares issued (in shares) | 16.9 | ||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |
Stock price (in dollars per share) | $ 91.00 | 91.00 | |||
Proceeds from sale of stock | $ 1,500,000 | ||||
Dividend declared (in dollars per share) | $ 0 | $ 0 | |||
Cumulative Effect, Period of Adoption, Adjustment | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Change in stockholders' equity | $ (161,420) |
Changes in Accumulated Other Comprehensive Loss - Changes in AOCI by Component (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Changes in accumulated other comprehensive loss by component | ||
Beginning balance | $ 5,085,556 | $ 8,760,669 |
Ending balance | 3,988,928 | 9,172,382 |
Changes related to cash flow derivative hedges | ||
Changes in accumulated other comprehensive loss by component | ||
Beginning balance | (646,473) | (650,519) |
Other comprehensive income (loss) before reclassifications | 224,619 | (927) |
Amounts reclassified from accumulated other comprehensive loss | (28,718) | 11,229 |
Net current-period other comprehensive income (loss) | 195,901 | 10,302 |
Ending balance | (450,572) | (640,217) |
Changes in defined benefit plans | ||
Changes in accumulated other comprehensive loss by component | ||
Beginning balance | (56,835) | (65,542) |
Other comprehensive income (loss) before reclassifications | 11,869 | 9,720 |
Amounts reclassified from accumulated other comprehensive loss | 728 | 743 |
Net current-period other comprehensive income (loss) | 12,597 | 10,463 |
Ending balance | (44,238) | (55,079) |
Foreign currency translation adjustments | ||
Changes in accumulated other comprehensive loss by component | ||
Beginning balance | (7,577) | (23,280) |
Other comprehensive income (loss) before reclassifications | 7,778 | 9,722 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Net current-period other comprehensive income (loss) | 7,778 | 9,722 |
Ending balance | 201 | (13,558) |
Accumulated other comprehensive loss | ||
Changes in accumulated other comprehensive loss by component | ||
Beginning balance | (710,885) | (739,341) |
Other comprehensive income (loss) before reclassifications | 244,266 | 18,515 |
Amounts reclassified from accumulated other comprehensive loss | (27,990) | 11,972 |
Net current-period other comprehensive income (loss) | 216,276 | 30,487 |
Ending balance | $ (494,609) | $ (708,854) |
Changes in Accumulated Other Comprehensive Loss - Reclassifications (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Reclassifications out of accumulated other comprehensive loss | ||
Interest expense, net of interest capitalized | $ (277,659) | $ (272,514) |
Depreciation and amortization expenses | (339,467) | (310,166) |
Other income (expense) | (2,538) | 5,033 |
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 | 27,990 | (11,972) |
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 | 28,718 | (11,229) |
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 | (10,434) | (9,509) |
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 | (4,065) | (3,781) |
Other income (expense) | (1,218) | (1,291) |
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 income (expense) | (369) | (407) |
Fuel | 44,804 | 3,759 |
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 | (728) | (743) |
Total reclassifications for the period | $ (728) | $ (743) |
Fair Value Measurements and Derivative Instruments - Estimated Fair Value (Details) - Nonrecurring - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Level 1 | ||||||||||||
Assets: | ||||||||||||
Cash and cash equivalents | [1],[2] | $ 1,968,504 | $ 2,701,770 | |||||||||
Total Assets | [2] | 1,968,504 | 2,701,770 | |||||||||
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] | 23,323,063 | 22,376,480 | |||||||||
Total Liabilities | [4] | 23,323,063 | 22,376,480 | |||||||||
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] | 1,968,504 | 2,701,770 | |||||||||
Total Assets | 1,968,504 | 2,701,770 | ||||||||||
Liabilities: | ||||||||||||
Long-term debt (including current portion of long-term debt) | [3] | 22,073,589 | 20,618,065 | |||||||||
Total Liabilities | 22,073,589 | 20,618,065 | ||||||||||
Total Fair Value | ||||||||||||
Assets: | ||||||||||||
Cash and cash equivalents | [1] | 1,968,504 | 2,701,770 | |||||||||
Total Assets | 1,968,504 | 2,701,770 | ||||||||||
Liabilities: | ||||||||||||
Long-term debt (including current portion of long-term debt) | [3] | 23,323,063 | 22,376,480 | |||||||||
Total Liabilities | $ 23,323,063 | $ 22,376,480 | ||||||||||
|
Fair Value Measurements and Derivative Instruments - Recurring (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Level 1 | ||||||||||||
Assets: | ||||||||||||
Derivative financial instruments | [1],[2] | $ 0 | $ 0 | |||||||||
Total Assets | [2] | 0 | 0 | |||||||||
Liabilities: | ||||||||||||
Derivative financial instruments | [2],[3] | 0 | 0 | |||||||||
Total Liabilities | [2] | 0 | 0 | |||||||||
Level 2 | ||||||||||||
Assets: | ||||||||||||
Derivative financial instruments | [1],[4] | 241,254 | 69,808 | |||||||||
Total Assets | [4] | 241,254 | 69,808 | |||||||||
Liabilities: | ||||||||||||
Derivative financial instruments | [3],[4] | 117,708 | 200,541 | |||||||||
Total Liabilities | [4] | 117,708 | 200,541 | |||||||||
Level 3 | ||||||||||||
Assets: | ||||||||||||
Derivative financial instruments | [1],[5] | 0 | 0 | |||||||||
Total Assets | [5] | 0 | 0 | |||||||||
Liabilities: | ||||||||||||
Derivative financial instruments | [3],[5] | 0 | 0 | |||||||||
Total Liabilities | [5] | 0 | 0 | |||||||||
Total | ||||||||||||
Assets: | ||||||||||||
Derivative financial instruments | [1] | 241,254 | 69,808 | |||||||||
Total Assets | 241,254 | 69,808 | ||||||||||
Liabilities: | ||||||||||||
Derivative financial instruments | [3] | 117,708 | 200,541 | |||||||||
Total Liabilities | $ 117,708 | $ 200,541 | ||||||||||
|
Fair Value Measurements and Derivative Instruments - Nonrecurring (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
Dec. 31, 2021 |
|||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impairment and credit losses (recoveries) | $ 173 | $ (449) | |||
Nonrecurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Long-lived assets, impairment | [1] | $ 55,213 | |||
Impairment and credit losses (recoveries) | [1] | 55,213 | |||
Nonrecurring | Total Carrying Amount | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Long-lived assets | 0 | ||||
Total | 0 | ||||
Nonrecurring | Total Fair Value | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Long-lived assets | 0 | ||||
Total | 0 | ||||
Nonrecurring | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Long-lived assets | 0 | ||||
Total | $ 0 | ||||
|
Fair Value Measurements and Derivative Instruments - Offsetting of Derivative Instruments (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Offsetting of Financial Assets under Master Netting Agreements [Abstract] | ||
Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheet | $ 241,254 | $ 69,808 |
Gross Amount of Eligible Offsetting Recognized Derivative Liabilities | (68,784) | (67,995) |
Cash Collateral Received | 0 | 0 |
Net Amount of Derivative Assets | 172,470 | 1,813 |
Offsetting of Financial Liabilities under Master Netting Agreements [Abstract] | ||
Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheet | (117,708) | (200,541) |
Gross Amount of Eligible Offsetting Recognized Derivative Assets | 68,784 | 67,995 |
Cash Collateral Pledged | 16,668 | 44,411 |
Net Amount of Derivative Liabilities | $ (32,256) | $ (88,135) |
Fair Value Measurements and Derivative Instruments - Derivative Instruments, Interest Rate Risk, Foreign Currency Exchange Rate Risk (Narrative) (Details) $ in Thousands, € in Millions |
3 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|
Mar. 31, 2022
USD ($)
|
Mar. 31, 2022
EUR (€)
|
Mar. 31, 2021
USD ($)
|
Dec. 31, 2021
USD ($)
|
Dec. 31, 2021
EUR (€)
|
Mar. 31, 2022
EUR (€)
|
|
Gains and losses from derivatives involved in hedging relationships | ||||||
Derivative instrument, credit risk exposure | $ 157,700 | |||||
Maximum length of time hedged in derivative contract | 3 years | 3 years | ||||
Percentage of debt bearing fixed interest | 71.60% | 65.70% | 71.60% | |||
Foreign currency gain (loss) | $ 7,200 | $ 4,400 | ||||
Interest rate swaps | ||||||
Gains and losses from derivatives involved in hedging relationships | ||||||
Notional amount | 2,900,000 | $ 2,900,000 | ||||
Forward Contracts | Not Designated | ||||||
Gains and losses from derivatives involved in hedging relationships | ||||||
Notional amount | 800,000 | |||||
Foreign currency forward contracts | Not Designated | ||||||
Gains and losses from derivatives involved in hedging relationships | ||||||
Change in fair value of foreign currency forward contracts recognized in earnings | (7,000) | $ (13,500) | ||||
Foreign exchange contracts | ||||||
Gains and losses from derivatives involved in hedging relationships | ||||||
Notional amount | 2,800,000 | $ 3,400,000 | ||||
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 | 10,700,000 | |||||
Amount deposited for cost of ships on order | $ 618,500 | |||||
Percentage of aggregate cost exposed to fluctuations in the euro exchange rate | 61.80% | 59.00% | 61.80% | |||
TUI Cruises | Forward Contracts | Designated as Hedging Instrument | ||||||
Gains and losses from derivatives involved in hedging relationships | ||||||
Notional amount | $ 272,500 | € 245.0 | ||||
Foreign currency debt | ||||||
Gains and losses from derivatives involved in hedging relationships | ||||||
Carrying value of non-derivative instrument designated as hedging instrument | 110,103 | $ 110,313 | ||||
Foreign currency debt | TUI Cruises | ||||||
Gains and losses from derivatives involved in hedging relationships | ||||||
Carrying value of non-derivative instrument designated as hedging instrument | $ 110,100 | € 99.0 | $ 110,300 | € 97.0 |
Fair Value Measurements and Derivative Instruments - Interest Rate Risk (Details) - Interest rate swaps |
3 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022
USD ($)
| ||||||||||
Fair Value Hedging | ||||||||||
Interest Rate Fair Value Hedges [Abstract] | ||||||||||
Long-term debt | $ 650,000,000 | |||||||||
Fair Value Hedging | Unsecured senior notes | ||||||||||
Interest Rate Fair Value Hedges [Abstract] | ||||||||||
Long-term debt | $ 650,000,000 | |||||||||
Debt Fixed Rate | 5.25% | |||||||||
Cash flow hedge | ||||||||||
Interest Rate Cash Flow Hedges [Abstract] | ||||||||||
Swap notional amount | $ 2,282,798,000 | |||||||||
Cash flow hedge | Celebrity Reflection term loan | ||||||||||
Interest Rate Cash Flow Hedges [Abstract] | ||||||||||
Swap notional amount | $ 163,625,000 | |||||||||
All-in Swap Fixed Rate | 2.85% | |||||||||
Cash flow hedge | Quantum of the Seas term loan | ||||||||||
Interest Rate Cash Flow Hedges [Abstract] | ||||||||||
Swap notional amount | $ 306,250,000 | |||||||||
All-in Swap Fixed Rate | 3.74% | |||||||||
Cash flow hedge | Anthem of the Seas term loan | ||||||||||
Interest Rate Cash Flow Hedges [Abstract] | ||||||||||
Swap notional amount | $ 332,292,000 | |||||||||
All-in Swap Fixed Rate | 3.86% | |||||||||
Cash flow hedge | Ovation of the Seas term loan | ||||||||||
Interest Rate Cash Flow Hedges [Abstract] | ||||||||||
Swap notional amount | $ 449,583,000 | |||||||||
All-in Swap Fixed Rate | 3.16% | |||||||||
Cash flow hedge | Harmony of the Seas term loan | ||||||||||
Interest Rate Cash Flow Hedges [Abstract] | ||||||||||
Swap notional amount | $ 417,714,000 | [1] | ||||||||
All-in Swap Fixed Rate | 2.26% | [1],[2] | ||||||||
Cash flow hedge | Odyssey of the Seas term loan | ||||||||||
Interest Rate Cash Flow Hedges [Abstract] | ||||||||||
Swap notional amount | $ 421,667,000 | [3] | ||||||||
All-in Swap Fixed Rate | 3.21% | [3] | ||||||||
Cash flow hedge | Odyssey of the Seas term loan | ||||||||||
Interest Rate Cash Flow Hedges [Abstract] | ||||||||||
Swap notional amount | $ 191,667,000 | [3],[4] | ||||||||
All-in Swap Fixed Rate | 2.84% | [3] | ||||||||
LIBOR | Fair Value Hedging | Unsecured senior notes | ||||||||||
Interest Rate Fair Value Hedges [Abstract] | ||||||||||
Swap Floating Rate: LIBOR plus | 3.63% | |||||||||
All-in swap floating rate | 4.14% | |||||||||
LIBOR | Cash flow hedge | Celebrity Reflection term loan | ||||||||||
Interest Rate Cash Flow Hedges [Abstract] | ||||||||||
Debt Floating Rate | 0.40% | |||||||||
LIBOR | Cash flow hedge | Quantum of the Seas term loan | ||||||||||
Interest Rate Cash Flow Hedges [Abstract] | ||||||||||
Debt Floating Rate | 1.30% | |||||||||
LIBOR | Cash flow hedge | Anthem of the Seas term loan | ||||||||||
Interest Rate Cash Flow Hedges [Abstract] | ||||||||||
Debt Floating Rate | 1.30% | |||||||||
LIBOR | Cash flow hedge | Ovation of the Seas term loan | ||||||||||
Interest Rate Cash Flow Hedges [Abstract] | ||||||||||
Debt Floating Rate | 1.00% | |||||||||
LIBOR | Cash flow hedge | Odyssey of the Seas term loan | ||||||||||
Interest Rate Cash Flow Hedges [Abstract] | ||||||||||
Debt Floating Rate | 0.96% | [3] | ||||||||
LIBOR | Cash flow hedge | Odyssey of the Seas term loan | ||||||||||
Interest Rate Cash Flow Hedges [Abstract] | ||||||||||
Debt Floating Rate | 0.96% | [3] | ||||||||
EURIBOR | 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 |
3 Months Ended | ||||
---|---|---|---|---|---|
Mar. 31, 2021
USD ($)
T
|
Mar. 31, 2022
USD ($)
T
t
|
Dec. 31, 2021
USD ($)
t
T
|
|||
Derivative Instruments | |||||
Discontinued cash flow hedge, nonmonetary amount | T | 48,000 | ||||
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 | $ | $ 145.6 | $ 23.8 | |||
Other income (expense) | |||||
Derivative Instruments | |||||
Reclassification | $ | $ 4.4 | ||||
2022 | |||||
Derivative Instruments | |||||
Fuel Swap Agreements (metric tons) | T | 660,650 | 821,850 | |||
Percentage of projected requirements | 55.00% | 54.00% | |||
2022 | Not Designated as Hedging Instrument | |||||
Derivative Instruments | |||||
Discontinued cash flow hedge, nonmonetary amount | 69,550 | ||||
Fuel Swap Agreements (metric tons) | [1] | 139,100 | 231,900 | ||
Notional amount since inception | 69,550 | ||||
2023 | |||||
Derivative Instruments | |||||
Fuel Swap Agreements (metric tons) | T | 249,050 | 249,050 | |||
Percentage of projected requirements | 15.00% | 15.00% | |||
2023 | Not Designated as Hedging Instrument | |||||
Derivative Instruments | |||||
Fuel Swap Agreements (metric tons) | 0 | 0 | |||
|
Fair Value Measurements and Derivative Instruments - Balance Sheet (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
||
---|---|---|---|---|
Asset Derivatives | ||||
Asset Derivatives | $ 241,254 | $ 69,808 | ||
Liability Derivatives | ||||
Liability Derivatives | 117,708 | 200,541 | ||
Designated as Hedging Instrument | ||||
Asset Derivatives | ||||
Asset Derivatives | [1] | 224,423 | 61,276 | |
Liability Derivatives | ||||
Liability Derivatives | [1] | 101,026 | 196,066 | |
Notional Disclosures | ||||
Carrying Amount of the Hedged Liabilities | 649,755 | 655,502 | ||
Cumulative amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liabilities | 404 | 6,428 | ||
Not Designated as Hedging Instrument | ||||
Asset Derivatives | ||||
Asset Derivatives | 16,831 | 8,532 | ||
Liability Derivatives | ||||
Liability Derivatives | 16,682 | 4,475 | ||
Interest rate swaps | Designated as Hedging Instrument | Other assets | ||||
Asset Derivatives | ||||
Asset Derivatives | [1] | 23,791 | 0 | |
Interest rate swaps | Designated as Hedging Instrument | Derivative financial instruments | ||||
Asset Derivatives | ||||
Asset Derivatives | 741 | 6,478 | ||
Liability Derivatives | ||||
Liability Derivatives | 0 | 0 | ||
Interest rate swaps | Designated as Hedging Instrument | Other long-term liabilities | ||||
Liability Derivatives | ||||
Liability Derivatives | [1] | 1,072 | 62,080 | |
Foreign currency forward contracts | Designated as Hedging Instrument | Other assets | ||||
Asset Derivatives | ||||
Asset Derivatives | [1] | 3,932 | 2,070 | |
Foreign currency forward contracts | Designated as Hedging Instrument | Derivative financial instruments | ||||
Asset Derivatives | ||||
Asset Derivatives | [1] | 15,133 | 7,357 | |
Liability Derivatives | ||||
Liability Derivatives | [1] | 84,872 | 116,027 | |
Foreign currency forward contracts | Designated as Hedging Instrument | Other long-term liabilities | ||||
Liability Derivatives | ||||
Liability Derivatives | [1] | 15,082 | 8,813 | |
Foreign currency forward contracts | Not Designated as Hedging Instrument | Other assets | ||||
Asset Derivatives | ||||
Asset Derivatives | 0 | 0 | ||
Foreign currency forward contracts | Not Designated as Hedging Instrument | Derivative financial instruments | ||||
Asset Derivatives | ||||
Asset Derivatives | 0 | 0 | ||
Liability Derivatives | ||||
Liability Derivatives | 0 | 0 | ||
Foreign currency forward contracts | Not Designated as Hedging Instrument | Other long-term liabilities | ||||
Liability Derivatives | ||||
Liability Derivatives | 0 | 0 | ||
Fuel swaps | Designated as Hedging Instrument | Other assets | ||||
Asset Derivatives | ||||
Asset Derivatives | [1] | 35,370 | 13,452 | |
Fuel swaps | Designated as Hedging Instrument | Derivative financial instruments | ||||
Asset Derivatives | ||||
Asset Derivatives | [1] | 145,456 | 31,919 | |
Liability Derivatives | ||||
Liability Derivatives | [1] | 0 | 7,944 | |
Fuel swaps | Designated as Hedging Instrument | Other long-term liabilities | ||||
Liability Derivatives | ||||
Liability Derivatives | [1] | 0 | 1,202 | |
Fuel swaps | Not Designated as Hedging Instrument | Other assets | ||||
Asset Derivatives | ||||
Asset Derivatives | 0 | 102 | ||
Fuel swaps | Not Designated as Hedging Instrument | Derivative financial instruments | ||||
Asset Derivatives | ||||
Asset Derivatives | 16,831 | 8,430 | ||
Liability Derivatives | ||||
Liability Derivatives | 16,682 | 3,264 | ||
Fuel swaps | Not Designated as Hedging Instrument | Other long-term liabilities | ||||
Liability Derivatives | ||||
Liability Derivatives | $ 0 | $ 1,211 | ||
|
Fair Value Measurements and Derivative Instruments - Income Statement Hedging Instruments (Details) - Fair Value Hedging - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Derivative Instruments | ||
Amount of Gain (Loss) Recognized in Income on Derivative | $ (3,365) | $ (552) |
Amount of Gain (Loss) Recognized in Income on Hedged Item | 6,024 | 2,930 |
Interest rate swaps | Interest expense (income), net of interest capitalized | ||
Derivative Instruments | ||
Amount of Gain (Loss) Recognized in Income on Derivative | (3,365) | (552) |
Amount of Gain (Loss) Recognized in Income on Hedged Item | $ 6,024 | $ 2,930 |
Fair Value Measurements and Derivative Instruments - Balance Sheet Hedging Instruments (Details) - Foreign currency debt - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2022 |
Dec. 31, 2021 |
|
Derivative Instruments | ||
Carrying value of non-derivative instrument designated as hedging instrument | $ 110,103 | $ 110,313 |
Current portion of debt | ||
Derivative Instruments | ||
Carrying value of non-derivative instrument designated as hedging instrument | 64,938 | 75,518 |
Long-term debt | ||
Derivative Instruments | ||
Carrying value of non-derivative instrument designated as hedging instrument | $ 45,165 | $ 34,795 |
Fair Value Measurements and Derivative Instruments - Designated Cash Flow Hedges (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
Dec. 31, 2021 |
|
Effect of derivative instruments involved in hedging on the consolidated financial statements | |||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Loss on Derivatives | $ 224,619 | $ (927) | |
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net [Abstract] | |||
Net inception fair value at January 1, 2022 | $ (554) | ||
Amount of gain recognized in income on derivatives for the period ended March 31, 2022 | 577 | ||
Amount of gain (loss) remaining to be amortized in accumulated other comprehensive loss, as of March 31, 2022 | (39) | ||
Fair value at March 31, 2022 | (16) | ||
Interest rate swaps | |||
Effect of derivative instruments involved in hedging on the consolidated financial statements | |||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Loss on Derivatives | 74,865 | 43,408 | |
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 Loss on Derivatives | (40,062) | (99,581) | |
Fuel swaps | |||
Effect of derivative instruments involved in hedging on the consolidated financial statements | |||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Loss on Derivatives | $ 189,816 | $ 55,246 |
Fair Value Measurements and Derivative Instruments - Non-Derivative Net Investment (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Foreign currency debt | ||
Net investment hedge | ||
Amount of Gain (Loss) Recognized in Other Comprehensive Loss | $ 2,745 | $ 5,822 |
Fair Value Measurements and Derivative Instruments - Derivatives Not Designated as Hedging Instruments (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Derivative Instruments | ||
Amount of Gain (Loss) Recognized in Income on Derivatives | $ (6,992) | $ (843) |
Foreign currency forward contracts | Other income (expense) | ||
Derivative Instruments | ||
Amount of Gain (Loss) Recognized in Income on Derivatives | (6,985) | (13,498) |
Fuel swaps | Other income (expense) | ||
Derivative Instruments | ||
Amount of Gain (Loss) Recognized in Income on Derivatives | $ (7) | $ 12,655 |
Fair Value Measurements and Derivative Instruments - Credit Features (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2022
USD ($)
derivative
| |
Derivative Instruments | |
Number of interest rate derivative hedges requiring collateral to be posted | derivative | 6 |
Debt instrument, collateral amount | $ 117.2 |
Interest Contracts | |
Derivative Instruments | |
Debt instrument, collateral amount | $ 16.7 |
Derivative term | 5 years |
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