Washington, D.C. 20549 
FORM 10-Q 
(Mark One) 
For the quarterly period ended March 31, 2023
For the transition period from            to            
Commission File Number: 1-11884
(Exact name of registrant as specified in its charter) 
Republic of Liberia
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)
1050 Caribbean Way, Miami, Florida 33132
(Address of principal executive offices) (zip code) 
(305) 539-6000
(Registrant’s telephone number, including area code) 
(Former name, former address and former fiscal year, if changed since last report) 

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.01 per shareRCLNew York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes   No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes   No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. 
Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes   No  
There were 255,736,665 shares of common stock outstanding as of May 1, 2023.


Item 1. Financial Statements
(unaudited; in thousands, except per share data)
Quarter Ended March 31,
Passenger ticket revenues$1,896,516 $651,858 
Onboard and other revenues988,630 407,373 
Total revenues2,885,146 1,059,231 
Cruise operating expenses:  
Commissions, transportation and other402,930 150,343 
Onboard and other158,635 74,439 
Payroll and related309,998 349,618 
Food199,391 100,184 
Fuel301,513 188,480 
Other operating420,438 321,878 
Total cruise operating expenses1,792,905 1,184,942 
Marketing, selling and administrative expenses460,855 394,030 
Depreciation and amortization expenses359,773 339,467 
Operating Income (Loss)271,613 (859,208)
Other (expense) income:  
Interest income14,808 3,322 
Interest expense, net of interest capitalized(359,387)(277,659)
Equity investment income (loss)20,471 (31,059)
Other income (expense)4,585 (2,538)
Net Loss$(47,910)$(1,167,142)
Loss per Share:  
Weighted-Average Shares Outstanding:  
Basic255,465 254,821 
Diluted255,465 254,821 
Comprehensive Loss  
Net Loss$(47,910)$(1,167,142)
Other comprehensive (loss) income:  
Foreign currency translation adjustments(6,546)7,778 
Change in defined benefit plans3,513 12,597 
(Loss) gain on cash flow derivative hedges(31,697)195,901 
Total other comprehensive (loss) income (34,730)216,276 
Comprehensive loss$(82,640)$(950,866)

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

(in thousands, except share data)
 As of
 March 31,December 31,
Current assets  
Cash and cash equivalents$1,226,871 $1,935,005 
Trade and other receivables, net of allowances of $10,483 and $11,612 at March 31, 2023 and December 31, 2022, respectively
379,177 531,066 
Inventories221,299 224,016 
Prepaid expenses and other assets543,599 455,836 
Derivative financial instruments42,651 59,083 
Total current assets2,413,597 3,205,006 
Property and equipment, net27,466,333 27,546,445 
Operating lease right-of-use assets521,209 537,559 
Goodwill809,258 809,277 
Other assets, net of allowances of $63,102 and $71,614 at March 31, 2023 and December 31, 2022, respectively
1,660,090 1,678,074 
Total assets$32,870,487 $33,776,361 
Liabilities and Shareholders’ Equity  
Current liabilities  
Current portion of long-term debt$2,055,307 $2,087,711 
Current portion of operating lease liabilities78,385 79,760 
Accounts payable714,837 646,727 
Accrued expenses and other liabilities1,200,590 1,459,957 
Derivative financial instruments121,836 131,312 
Customer deposits5,270,589 4,167,997 
Total current liabilities9,441,544 8,573,464 
Long-term debt19,404,804 21,303,480 
Long-term operating lease liabilities509,530 523,006 
Other long-term liabilities489,188 507,599 
Total liabilities29,845,066 30,907,549 
Shareholders’ equity  
Preferred stock ($0.01 par value; 20,000,000 shares authorized; none outstanding)
Common stock ($0.01 par value; 500,000,000 shares authorized; 283,979,907 and 283,257,102 shares issued, March 31, 2023 and December 31, 2022, respectively)
2,840 2,832 
Paid-in capital7,351,493 7,284,852 
Accumulated deficit(1,755,339)(1,707,429)
Accumulated other comprehensive loss(677,944)(643,214)
Treasury stock (28,248,125 and 28,018,385 common shares at cost, March 31, 2023 and December 31, 2022, respectively)
Total shareholders’ equity attributable to Royal Caribbean Cruises Ltd.2,851,618 2,868,812 
Noncontrolling Interests173,803  
Total shareholders’ equity3,025,421 2,868,812 
Total liabilities and shareholders’ equity$32,870,487 $33,776,361 

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

(unaudited, in thousands)
Three Months Ended March 31,
Operating Activities  
Net Loss$(47,910)$(1,167,142)
Depreciation and amortization359,773 339,467 
Net deferred income tax benefit(11,366)(3,067)
(Gain) loss on derivative instruments not designated as hedges(3,397)10,873 
Share-based compensation expense26,270 22,839 
Equity investment (income) loss(20,471)31,059 
Amortization of debt issuance costs, discounts and premiums30,070 43,190 
Loss on extinguishment of debt13,289  
Changes in operating assets and liabilities:  
Decrease (increase) in trade and other receivables, net122,940 (32,236)
Decrease (increase) in inventories2,716 (29,242)
Increase in prepaid expenses and other assets(78,489)(124,394)
Increase in accounts payable trade56,682 112,426 
Decrease in accrued expenses and other liabilities(258,713)(119,068)
Increase in customer deposits1,102,592 406,534 
Other, net15,932 (20,086)
Net cash provided by (used in) operating activities1,309,918 (528,847)
Investing Activities  
Purchases of property and equipment(251,933)(1,363,086)
Cash received on settlement of derivative financial instruments5,405 5,650 
Cash paid on settlement of derivative financial instruments(5,658)(77,853)
Cash received on loans to unconsolidated affiliates5,392 4,444 
Other, net12,694 (12,296)
Net cash used in investing activities(234,100)(1,443,141)
Financing Activities  
Debt proceeds705,000 2,349,969 
Debt issuance costs(27,213)(93,763)
Repayments of debt(2,663,665)(1,007,632)
Proceeds from sale of noncontrolling interest209,320  
Other, net(7,617)(10,843)
Net cash (used in) provided by financing activities(1,784,175)1,237,731 
Effect of exchange rate changes on cash and cash equivalents223 991 
Net decrease in cash and cash equivalents (708,134)(733,266)
Cash and cash equivalents at beginning of period 1,935,005 2,701,770 
Cash and cash equivalents at end of period $1,226,871 $1,968,504 
Supplemental Disclosure  
Cash paid during the period for:  
Interest, net of amount capitalized$389,294 $225,771 
Non-cash Investing Activities  
Purchase of property and equipment included in accounts payable and accrued expenses and other liabilities$19,321 $31,899 
The accompanying notes are an integral part of these consolidated financial statements

(unaudited; in thousands)

Common StockPaid-in CapitalAccumulated DeficitAccumulated Other Comprehensive LossTreasury StockNoncontrolling InterestTotal Shareholders' Equity
Balance at January 1, 2023$2,832 $7,284,852 $(1,707,429)$(643,214)$(2,068,229)$ $2,868,812 
Activity related to employee stock plans8 21,343 — — — — 21,351 
Changes related to cash flow derivative hedges— — — (31,697)— — (31,697)
Change in defined benefit plans— — — 3,513 — — 3,513 
Foreign currency translation adjustments— — — (6,546)— — (6,546)
Purchase of treasury stock— — — — (1,203)— (1,203)
Noncontrolling Interest— 45,298 — — — 173,803 219,101 
Net Loss— — (47,910)— — — (47,910)
Balance at March 31, 2023$2,840 $7,351,493 $(1,755,339)$(677,944)$(2,069,432)$173,803 $3,025,421 

Common StockPaid-in CapitalRetained Earnings (Accumulated Deficit)Accumulated Other Comprehensive LossTreasury StockNoncontrolling InterestTotal Shareholders' Equity
Balance at January 1, 2022$2,827 $7,557,297 $302,276 $(710,885)$(2,065,959)$ $5,085,556 
Activity related to employee stock plans3 17,888 37 — — — 17,928 
Cumulative effect of adoption of Accounting Standards Update 2020-06— (307,640)146,220 — — — (161,420)
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)
Balance at March 31, 2022$2,830 $7,267,545 $(718,609)$(494,609)$(2,068,229)$ $3,988,928 

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

As used in this Quarterly Report on Form 10-Q, the terms “Royal Caribbean,” "Royal Caribbean Group," the “Company,” “we,” “our” and “us” refer to Royal Caribbean Cruises Ltd. and, depending on the context, Royal Caribbean Cruises Ltd.’s consolidated subsidiaries and/or affiliates. The terms “Royal Caribbean International,” “Celebrity Cruises,” and "Silversea Cruises" refer to our wholly owned global cruise brands. Throughout this Quarterly Report on Form 10-Q, we also refer to our partner brands in which we hold an ownership interest, including “TUI Cruises” and "Hapag-Lloyd Cruises." However, because these partner brands are unconsolidated investments, our operating results and other disclosures herein do not include these brands unless otherwise specified. In accordance with cruise vacation industry practice, the term “berths” is determined based on double occupancy per cabin even though many cabins can accommodate three or more passengers. This Quarterly Report on Form 10-Q should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2022.
This Quarterly Report on Form 10-Q also includes trademarks, trade names and service marks of other companies. Use or display by us of other parties’ trademarks, trade names or service marks is not intended to and does not imply a relationship with, or endorsement or sponsorship of us by, these other parties other than as described herein.
Note 1. General
Description of Business 
We are a global cruise company. 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 64 ships as of March 31, 2023. Our ships offer a selection of worldwide itineraries that call on more than 1,000 destinations in over 120 countries on all seven continents.
As a result of the global pandemic impact of COVID-19, we paused our guest cruise operations in March 2020 and began resuming guest cruise operations in 2021, with our full fleet in service by June 2022. During this period of time, we have taken proactive measures to manage our liquidity, including issuing debt and shares of our common stock, amending credit agreements to defer payments, obtaining relevant modification of covenant requirements and waivers, and reducing operating expenses and capital expenditures.
As of March 31, 2023, we had liquidity of $3.9 billion, including $2.6 billion of undrawn revolving credit facility capacity, and $1.2 billion in cash and cash equivalents. We believe that we have sufficient liquidity to fund our obligations for at least the next twelve months from the issuance of these financial statements. Refer to Note 6. Debt for further information regarding refinancing transactions and the applicable financial covenants.
We will continue to pursue various opportunities to raise capital to fund obligations associated with future debt maturities and/or to extend the maturity dates associated with our existing indebtedness or facilities.
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, 2022 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. Investments and 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.
Note 2. Summary of Significant Accounting Policies
Adoption of Accounting Pronouncements
In September 2022, the FASB issued ASU No. 2022-04, Liabilities-Supplier Finance Programs (Subtopic 405-50) - Disclosure of Supplier Finance Program Obligations. This ASU requires that a buyer in a supplier finance program disclose sufficient information about the program to allow a user of financial statements to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude. This ASU is expected to improve financial reporting by requiring new disclosures about the programs, thereby allowing financial statement users to better consider the effect of the programs on an entity’s working capital, liquidity, and cash flows. This ASU is effective for fiscal years beginning after December 15, 2022, except for the amendment on roll forward information which is effective for fiscal years beginning after December 15, 2023. We adopted ASU No. 2022-04 effective January 1, 2023. The adoption did not have a material impact to our consolidated financial statements and related disclosures.
For the quarter ended March 31, 2023, we no longer separately present Accrued interest in our consolidated balance sheets. As a result, amounts presented in prior periods were reclassified to Accrued expenses and other liabilities to conform to the current year presentation.
For the quarter ended March 31, 2023, we no longer separately present Impairments and Credit losses in our consolidated statements of comprehensive loss. As a result, amounts presented in prior periods were reclassified to Other Operating to conform to the current year presentation.
For the quarter ended March 31, 2023, we no longer separately present Amortization of debt discounts and premiums; (Decrease) increase in accrued interest; and Impairments and Credit losses in our cash flows from Operating Activities within our consolidated statements of cash flows. As a result, amounts presented in prior periods were reclassified to Amortization of debt issuance costs, discounts and premiums; Decrease in accrued expenses and other liabilities; and Other, net, respectively, within Operating Activities to conform to the current year presentation. Additionally, we no longer separately present Proceeds from the sale of property and equipment and other assets in our cash flows from Investing Activities within our consolidated statements of cash flows. As a result, amounts presented in prior periods were reclassified to Other, net within Investing Activities to conform to the current year presentation.
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 ranges from two to 23 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 $203.4 million and $76.9 million for the quarters ended March 31, 2023 and 2022, 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 cruise passengers 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):
Quarter Ended March 31,
Revenues by itinerary
North America (1)$2,193,008 $889,087 
Asia/Pacific333,010 34,633 
Europe1,897 1,425 
Other regions(2)214,489 79,633 
Total revenues by itinerary2,742,404 1,004,778 
Other revenues(3)142,742 54,453 
Total revenues$2,885,146 $1,059,231 
(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, casino operations, 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. Investments and 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, 2023 and 2022, our guests were sourced from the following areas:
Quarter Ended March 31,
Passenger ticket revenues:
United States 76 %84 %
All other countries (1)24 %16 %
(1)No other individual country's revenue exceeded 10% for the quarters ended March 31, 2023 and 2022.
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 or onboard 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 $2.5 billion and $1.8 billion as of March 31, 2023 and December 31, 2022, respectively.
We have provided flexibility to guests with bookings on sailings cancelled due to COVID-19 by allowing guests to receive future cruise credits (“FCC”). As of March 31, 2023, our customer deposit balance includes approximately $0.5 billion of unredeemed FCCs. Given the lack of comparable historical experience of FCC redemptions, as of March 31, 2023 we are unable to estimate the number of FCCs that may not be used 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.
Our credit card processors agreements require us, under certain circumstances, to maintain a reserve that can be satisfied by posting collateral. One of our processors currently holds a portion of our customer deposits in reserve until the sailings take place or the funds are refunded to the customer. The cash reserve held by the processor was immaterial as of March 31, 2023.
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, 2023 and December 31, 2022, our contract assets were $167.7 million and $167.9 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 and prepaid credit and debit card fees 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 and prepaid credit and debit card fees were $244.9 million as of March 31, 2023 and $177.5 million as of December 31, 2022. Our prepaid travel advisor commissions, and prepaid credit and debit card fees are recognized at the time of revenue recognition or at the time of voyage cancellation, and are reported primarily within Commissions, transportation and other in our consolidated statements of comprehensive loss.
Note 4. Loss Per Share
Basic and diluted loss per share is as follows (in thousands, except per share data):
Quarter Ended March 31,
Net loss for basic and diluted loss per share$(47,910)$(1,167,142)
Weighted-average common shares outstanding255,465 254,821 
Diluted weighted-average shares outstanding255,465 254,821 
Basic loss per share$(0.19)$(4.58)
Diluted loss per share$(0.19)$(4.58)
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. If we have a net loss for the period, all potential common shares will be considered antidilutive, resulting in the same basic and diluted net loss per share amounts for those periods. There were approximately 30,994,718 and 23,407,179 antidilutive shares for the quarters ended March 31, 2023 and March 31, 2022, respectively. As we had net loss for the quarters ended March 31, 2023 and March 31, 2022, all potential common shares were determined to be antidilutive, resulting in the same basic and diluted net loss per share amounts for the period.

Note 5. Investments and 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 hold equity interests in ventures related to our cruise operations. We account for the majority of these investments as either an equity method investment or a controlled subsidiary.
Effective March 31, 2023, we closed on the previously announced partnership agreement with iCON Infrastructure Partners VI, L.P. ("iCON"). This partnership will own, develop, and manage cruise terminal facilities and infrastructure in key ports of call, initially including several development projects in Italy and Spain. As part of the transaction with iCON we also agreed to sell 80% of PortMiami. Refer below to equity method investments and controlled subsidiaries for further information on the transaction. In addition, the partnership will pursue additional port infrastructure developments, including future plans to own, develop, and manage an infrastructure project in the U.S. Virgin Islands.
Unconsolidated investments ("equity method investments")

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, 2023, the net book value of our investment in TUIC was $483.9 million, primarily consisting of $384.6 million in equity and a loan of €83.2 million, or approximately $90.4 million based on the exchange rate at March 31, 2023. As of December 31, 2022, the net book value of our investment in TUIC was $466.0 million, primarily consisting of $361.5 million in equity and a loan of €87.2 million, or approximately $93.0 million based on the exchange rate at December 31, 2022. 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.
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. 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 part of the transaction with iCON, we sold our controlling interest in two Italian entities for an immaterial amount of net proceeds and recognized an immaterial gain on the sale. At closing, we have determined that the partnership and both Italian entities are VIE's. These entities in Italy represent development projects to own, develop, and manage cruise terminal facilities in key ports of call. We have determined that we are not the primary beneficiary for either of these entities as we do not have the power to direct the activities that most significantly impact the economic performance. Accordingly, we do not consolidate these entities.
For further information on the measurements used to estimate the fair value of our equity method investments, refer to Note 11. Fair Value Measurements and Derivative Instruments.
The following tables set forth information regarding our investments accounted for under the equity method of accounting, including the entities discussed above (in thousands):
Quarter Ended March 31,
Share of equity income (loss) from investments$20,471 $(31,059)
Dividends received (1)$802 $423 
(1) Represents dividends received from our investments accounted for under the equity method of accounting during the quarters ended March 31, 2023 and March 31, 2022. The amounts included in the table above are net of tax withholdings.
As of March 31, 2023As of December 31, 2022
Total notes receivable due from equity investments$99,746 $101,392 
Less-current portion (1)18,094 18,406 
Long-term portion (2)$81,652 $82,986 
(1)Included within Trade and other receivables, net in our consolidated balance sheets.
(2)Included within Other assets in our consolidated balance sheets.
Consolidated investments ("controlled subsidiaries")
As part of the transaction with iCON, we sold noncontrolling interest in two controlled subsidiaries, comprised of PortMiami and one entity in Spain. The majority of the proceeds comes from selling 80% of PortMiami for $208.9 million and

retained a 20% minority interest. We have determined PortMiami is a VIE, and we are the primary beneficiary as we have the power to direct the activities that most significantly impact the facility’s economic performance. Accordingly, we will continue to consolidate this entity. The cash consideration received, net of transaction costs, was allocated between paid in capital and noncontrolling interest using the net book value of PortMiami as of March 31, 2023, as presented in the statement of shareholders' equity.
Other Assets
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, 2023. 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. Our credit loss allowance beginning and ending balances as of March 31, 2023 and 2022 primarily relate to credit losses recognized on notes receivable for the previous sale of certain property and equipment of $81.6 million. The notes receivable for the previous sale of our property and equipment are related to loans that were originated in 2015 and 2020.
The following table summarizes our credit loss allowance related to receivables (in thousands):
Quarter Ended March 31,
Balance, beginning of period$83,227 $100,192 
Credit loss (recovery), net(7,287)653 
Balance, end of period$73,585 $92,693 


Note 6. Debt
Debt consists of the following (in thousands):
Interest Rate (1)
Maturities ThroughAs of March 31, 2023As of December 31, 2022
Fixed rate debt:
Unsecured senior notes
3.70% to 11.63%
2026 - 2030$7,898,504 $7,199,331 
Secured senior notes
8.25% to 11.50%
2025 - 20292,373,981 2,370,855 
Unsecured term loans
1.28% to 5.89%
2027 - 20344,439,699 4,561,129 
Convertible notes
2.88% to 6.00%
2023 - 20251,725,000 1,725,000 
Total fixed rate debt16,437,184 15,856,315 
Variable rate debt:
Unsecured revolving credit facilities (2)
6.20% to 6.95%
2024 - 2025371,971 2,744,105 
USD unsecured term loan
5.71% to 9.69%
2023 - 20374,198,261 4,335,973 
Euro unsecured term loan
6.46% to 7.09%
2023 - 2028544,488 534,589 
Total variable rate debt5,114,720 7,614,667 
Finance lease liabilities336,892 351,332 
Total debt (3)
21,888,796 23,822,314 
Less: unamortized debt issuance costs(428,685)(431,123)
Total debt, net of unamortized debt issuance costs21,460,111 23,391,191 
Less—current portion (2,055,307)(2,087,711)
Long-term portion$19,404,804 $21,303,480 
(1) Interest rates based on outstanding loans as of March 31, 2023, and for variable rate debt include either LIBOR, EURIBOR or Term SOFR plus the applicable margin.
(2) Advances under our $1.9 billion facility accrue interest at Term SOFR plus an interest rate margin ranging from 1.40% to 2.15%. Advances under our $1.1 billion facility accrue interest at Term SOFR plus an interest rate margin ranging from 1.80% to 2.15%. Based on applicable Term SOFR rates, as of March 31, 2023, the interest rates under the $1.9 billion facility and the $1.1 billion facility were 6.20% and 6.95%, respectively. We also pay a facility fee for each facility ranging from 0.20% to 0.30% of the total commitments under such facility.
(3) At March 31, 2023 and December 31, 2022, the weighted average interest rate for total debt was 6.35% and 6.23%, respectively.
Unsecured revolving credit facilities
In January 2023, we amended and extended the majority of our two unsecured revolving credit facilities. The amendment extended the maturities of $2.3 billion of the $3.0 billion aggregate revolving credit capacity by one year to April 2025, with the remainder maturing in April 2024. Additionally, during the quarter ended March 31, 2023 we repaid $2.4 billion under our revolving credit facilities, resulting in an aggregate borrowing capacity of $2.6 billion under our unsecured revolving credit facilities as of March 31, 2023.
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, 2023.
Debt financing transactions
In February 2023, we issued $700 million aggregate principal amount of 7.25% senior guaranteed notes due January 2030 ("7.25% Priority Guaranteed Notes"). Upon closing, we terminated our commitment for the $700 million 364-day term loan facility. In addition, the remaining $350 million backstop committed financing was also terminated upon closing, which resulted in an immaterial loss on extinguishment of debt.

Export credit agency guarantees
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, 2023, 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, discounts and premiums 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.
Debt covenants
Our export credit facilities and our non-export credit facilities have an outstanding principal amount of approximately $9.4 billion as of March 31, 2023. These facilities, as well as certain of our credit card processing agreements, contain covenants that require us, among other things, to maintain a fixed charge coverage ratio, limit our net debt-to-capital ratio, maintain minimum liquidity, and under certain facilities, to maintain a minimum stockholders' equity. As of March 31, 2023, we were in compliance with our debt covenants and we estimate we will be in compliance for the next twelve months.

The following is a schedule of annual maturities on our total debt, including finance leases, as of March 31, 2023 for each of the next five years (in thousands):
YearAs of March 31, 2023 (1)
Remainder of 2023$1,806,425 
(1)    Debt denominated in other currencies is calculated based on the applicable exchange rate at March 31, 2023.


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, 2023 and December 31, 2022. 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 August 2023.
For some of our real estate leases and berthing agreements, we do have the option to extend our current lease term. For those lease agreements with renewal options, the renewal periods for real estate leases range from one to 10 years and the renewal periods for berthing agreements range from one 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 Term SOFR 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
Our finance leases primarily relate to buildings and surrounding land located at our Miami headquarters and our lease for the Silver Dawn ship. Finance leases are included within Property and Equipment, net and Long-term debt with the current portion of the liability included within Current portion of long-term debt in our consolidated balance sheets as of March 31, 2023 and December 31, 2022. During the quarter ended March 31, 2023 we executed the bargain purchase option for the Silver Whisper.
The Company's master lease agreement (“Master Lease”) with Miami-Dade County related to the buildings and surrounding land located at our Miami headquarters is classified as a finance lease in accordance with ASC 842, Leases. The Master Lease includes two five-year options to extend the lease which we are reasonably certain to exercise. The total aggregate amount of the finance lease liabilities recorded for this Master Lease was $56.0 million and $55.5 million as of March 31, 2023 and December 31, 2022, 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 was $260.1 million and $264.8 million as of March 31, 2023 and December 31, 2022, respectively. The lease payments on the Silver Dawn are subject to adjustments based on the LIBOR rate.


The components of lease expense were as follows (in thousands):
Consolidated Statement of Comprehensive Loss ClassificationQuarter Ended March 31, 2023Quarter Ended March 31, 2022
Lease costs:
Operating lease costsCommission, transportation and other$55,101 $22,729 
Operating lease costsOther operating expenses5,545 5,471 
Operating lease costsMarketing, selling and administrative expenses5,442 4,776 
Financial lease costs:
Amortization of right-of-use-assetsDepreciation and amortization expenses5,791 6,093 
Interest on lease liabilitiesInterest expense, net of interest capitalized7,502 4,600 
Total lease costs$79,381 $43,669 
In addition, certain of our berthing agreements include variable lease costs based on the number of passengers berthed. During the quarters ended March 31, 2023, and 2022 we had $37.7 million and $7.5 million of variable lease costs recorded within Commission, transportation and other in our consolidated statement of comprehensive loss, respectively.
The weighted average of the remaining lease terms and weighted average discount rates are as follows:
As of March 31, 2023As of December 31, 2022
Weighted average of the remaining lease term in years
Operating leases17.8117.69
Finance leases19.6819.26
Weighted average discount rate
Operating leases7.24 %6.92 %
Finance leases6.44 %6.43 %
Supplemental cash flow information related to leases is as follows (in thousands):
Quarter Ended March 31, 2023Quarter Ended March 31, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$36,421 $28,193 
Operating cash flows from finance leases$7,502 $4,600 
Financing cash flows from finance leases$13,988 $17,034 
As of March 31, 2023, maturities related to lease liabilities were as follows (in thousands):
YearOperating LeasesFinance Leases
Remainder of 2023$89,291 $33,923 
2024105,441 44,465 
202599,815 43,974 
202690,555 38,412 
202771,207 37,358 
Thereafter789,278 706,482 
Total lease payments1,245,587 904,614 
Less: Interest(657,672)(567,722)
Present value of lease liabilities$587,915 $336,892 


Note 8. Commitments and Contingencies
Ship Purchase Obligations
Our future capital commitments consist primarily of new ship orders. As of March 31, 2023, 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:
ShipShipyardExpected deliveryApproximate
Royal Caribbean International —
Utopia of the SeasChantiers de l'Atlantique2nd Quarter 20245,700
Icon of the SeasMeyer Turku Oy4th Quarter 20235,600
UnnamedMeyer Turku Oy2nd Quarter 20255,600
UnnamedMeyer Turku Oy2nd Quarter 20265,600
Celebrity Cruises —
Celebrity AscentChantiers de l'Atlantique4th Quarter 20233,250
Silversea Cruises —
Evolution Class:
Silver NovaMeyer Werft2nd Quarter 2023730
Silver RayMeyer Werft2nd Quarter 2024730
TUI Cruises (50% joint venture) —
Mein Schiff 7Meyer Turku Oy2nd Quarter 20242,900
UnnamedFincantieri4th Quarter 20244,100
UnnamedFincantieri2nd Quarter 20264,100
Total Berths38,310
In addition, as of March 31, 2023, we have an agreement in place with Chantiers de l'Atlantique to build an additional Edge-class ship, estimated for delivery in 2025, which is contingent upon completion of conditions precedent and financing.
As of March 31, 2023, the aggregate cost of our ships on order presented in the table above, not including any ships on order by our Partner Brands, was approximately $10.2 billion, of which we had deposited $0.9 billion as of such date. Approximately 49.2% of the aggregate cost was exposed to fluctuations in the Euro exchange rate at March 31, 2023. Refer to Note 11. Fair Value Measurements and Derivative Instruments for further information.
As previously reported, a lawsuit was 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 alleges it holds an interest in the Havana Cruise Port Terminal, which was expropriated by the Cuban government. The complaint further alleges that we trafficked in the terminal by embarking and disembarking passengers at these facilities. The plaintiff seeks all available statutory remedies, including the value of the expropriated property, plus interest, treble damages, attorneys’ fees and costs.
The Court entered final judgment in December 2022 in favor of the plaintiff and awarded damages and attorneys' fees to the plaintiff in the aggregate amount of approximately $112 million. We have appealed the judgment to the United States Court of Appeals for the 11th Circuit and the plaintiff has cross-appealed with regards to the interest calculation used for purposes of determining damages. We believe we have meritorious grounds for and intend to vigorously pursue our appeal. During the fourth quarter of 2022, we recorded a charge of approximately $130.0 million to Other income (expense) within our consolidated statements of comprehensive loss related to the Havana Docks Action, including post-judgment interest and related legal defense costs and bonding fees.