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Table of Contents    

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 
FORM 10-Q 
(Mark One) 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended June 30, 2023
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the transition period from            to            
Commission File Number: 1-11884
ROYAL CARIBBEAN CRUISES LTD.
(Exact name of registrant as specified in its charter) 
Republic of Liberia
 98-0081645
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)
 
1050 Caribbean Way, Miami, Florida 33132
(Address of principal executive offices) (zip code) 
(305) 539-6000
(Registrant’s telephone number, including area code) 
N/A
(Former name, former address and former fiscal year, if changed since last report) 

Securities registered pursuant to Section 12(b) of the Act:
Title of each 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 256,173,359 shares of common stock outstanding as of July 24, 2023.


























Table of Contents    

ROYAL CARIBBEAN CRUISES LTD.
TABLE OF CONTENTS
 Page
  
 
  
  
  
  
  
 
  
  
  
  




PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
ROYAL CARIBBEAN CRUISES LTD.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(unaudited; in thousands, except per share data)
Quarter Ended June 30,
 20232022
Passenger ticket revenues$2,443,506 $1,418,203 
Onboard and other revenues1,079,476 766,039 
Total revenues3,522,982 2,184,242 
Cruise operating expenses:  
Commissions, transportation and other516,007 329,859 
Onboard and other220,315 155,570 
Payroll and related284,372 327,141 
Food202,695 155,226 
Fuel275,918 275,179 
Other operating455,569 436,944 
Total cruise operating expenses1,954,876 1,679,919 
Marketing, selling and administrative expenses434,848 371,425 
Depreciation and amortization expenses361,677 351,542 
Operating Income (Loss)771,581 (218,644)
Other income (expense):  
Interest income9,583 6,490 
Interest expense, net of interest capitalized(355,512)(302,706)
Equity investment income (loss)42,014 (13,179)
Other (expense) income (5,386)6,457 
 (309,301)(302,938)
Net Income (Loss)$462,280 $(521,582)
Less: Net Income attributable to noncontrolling interest3,519  
Net Income (Loss) attributable to Royal Caribbean Cruises Ltd.$458,761 $(521,582)
Earnings (Loss) per Share:  
Basic$1.79 $(2.05)
Diluted$1.70 $(2.05)
Weighted-Average Shares Outstanding:  
Basic255,805 254,964 
Diluted281,913 254,964 
Comprehensive Income (Loss)  
Net Income (Loss)$462,280 $(521,582)
Other comprehensive income (loss):  
Foreign currency translation adjustments(3,263)12,682 
Change in defined benefit plans(3,785)15,168 
Gain (loss) on cash flow derivative hedges4,988 (84,493)
Total other comprehensive loss(2,060)(56,643)
Comprehensive Income (Loss)$460,220 $(578,225)



The accompanying notes are an integral part of these consolidated financial statements
1


ROYAL CARIBBEAN CRUISES LTD.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(unaudited; in thousands, except per share data)
Six Months Ended June 30,
20232022
Passenger ticket revenues$4,340,022 $2,070,061 
Onboard and other revenues2,068,106 1,173,412 
Total revenues6,408,128 3,243,473 
Cruise operating expenses:
Commissions, transportation and other918,937 480,202 
Onboard and other378,950 230,009 
Payroll and related594,370 676,759 
Food402,086 255,410 
Fuel577,431 463,659 
Other operating876,007 758,822 
Total cruise operating expenses3,747,781 2,864,861 
Marketing, selling and administrative expenses895,703 765,455 
Depreciation and amortization expenses721,450 691,009 
Operating Income (Loss)1,043,194 (1,077,852)
Other income (expense):
Interest income24,391 9,812 
Interest expense, net of interest capitalized(714,899)(580,365)
Equity investment income (loss)62,485 (44,238)
Other (expense) income(771)3,919 
(628,794)(610,872)
Net Income (Loss)414,400 (1,688,724)
Less: Net Income attributable to noncontrolling interest3,549  
Net Income (Loss) attributable to Royal Caribbean Cruises Ltd.$410,851 $(1,688,724)
Earnings (Loss) per Share:
Basic$1.61 $(6.63)
Diluted$1.60 $(6.63)
Weighted-Average Shares Outstanding:
Basic255,636 254,893 
Diluted258,741 254,893 
Comprehensive Income (Loss)
Net Income (Loss)$414,400 $(1,688,724)
Other comprehensive income (loss):
Foreign currency translation adjustments(9,809)20,460 
Change in defined benefit plans(272)27,765 
(Loss) Gain on cash flow derivative hedges(26,709)111,408 
Total other comprehensive (loss) income(36,790)159,633 
Comprehensive Income (Loss)$377,610 $(1,529,091)
The accompanying notes are an integral part of these consolidated financial statements
2


ROYAL CARIBBEAN CRUISES LTD.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
 As of
 June 30,December 31,
 20232022
 (unaudited) 
Assets  
Current assets  
Cash and cash equivalents$726,424 $1,935,005 
Trade and other receivables, net of allowances of $10,027 and $11,612 at June 30, 2023 and December 31, 2022, respectively
375,357 531,066 
Inventories215,915 224,016 
Prepaid expenses and other assets604,623 455,836 
Derivative financial instruments46,516 59,083 
Total current assets1,968,835 3,205,006 
Property and equipment, net27,935,922 27,546,445 
Operating lease right-of-use assets551,534 537,559 
Goodwill809,250 809,277 
Other assets, net of allowances of $62,833 and $71,614 at June 30, 2023 and December 31, 2022, respectively
1,657,807 1,678,074 
Total assets$32,923,348 $33,776,361 
Liabilities and Shareholders’ Equity  
Current liabilities  
Current portion of long-term debt$1,713,299 $2,087,711 
Current portion of operating lease liabilities81,797 79,760 
Accounts payable692,011 646,727 
Accrued expenses and other liabilities1,391,553 1,459,957 
Derivative financial instruments111,864 131,312 
Customer deposits5,676,341 4,167,997 
Total current liabilities9,666,865 8,573,464 
Long-term debt18,685,633 21,303,480 
Long-term operating lease liabilities537,641 523,006 
Other long-term liabilities492,127 507,599 
Total liabilities29,382,266 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; 284,405,911 and 283,257,102 shares issued, June 30, 2023 and December 31, 2022, respectively)
2,844 2,832 
Paid-in capital7,406,818 7,284,852 
Accumulated deficit(1,296,578)(1,707,429)
Accumulated other comprehensive loss(680,004)(643,214)
Treasury stock (28,248,125 and 28,018,385 common shares at cost, June 30, 2023 and December 31, 2022, respectively)
(2,069,432)(2,068,229)
Total shareholders’ equity attributable to Royal Caribbean Cruises Ltd.3,363,648 2,868,812 
Noncontrolling Interests177,434  
Total shareholders’ equity3,541,082 2,868,812 
Total liabilities and shareholders’ equity$32,923,348 $33,776,361 

The accompanying notes are an integral part of these consolidated financial statements
3


ROYAL CARIBBEAN CRUISES LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in thousands)
Six Months Ended June 30,
 20232022
Operating Activities  
Net Income (Loss)$414,400 $(1,688,724)
Adjustments:  
Depreciation and amortization721,450 691,009 
Net deferred income tax benefit(6,139)(9,205)
(Gain) loss on derivative instruments not designated as hedges(11,675)87,245 
Share-based compensation expense65,721 10,134 
Equity investment (income) loss(62,485)44,238 
Amortization of debt issuance costs, discounts and premiums58,144 84,734 
Loss on extinguishment of debt43,518  
Changes in operating assets and liabilities:  
Decrease (increase) in trade and other receivables, net131,865 (201,605)
Decrease (increase) in inventories8,101 (78,884)
Increase in prepaid expenses and other assets(139,249)(168,948)
Increase in accounts payable trade30,287 221,746 
(Decrease) increase in accrued liabilities(62,957)16,818 
Increase in customer deposits1,508,345 1,007,876 
Other, net1,939 (66,641)
Net cash provided by (used in) operating activities2,701,265 (50,207)
Investing Activities  
Purchases of property and equipment(1,048,389)(2,317,747)
Cash received on settlement of derivative financial instruments17,581 36,073 
Cash paid on settlement of derivative financial instruments(13,960)(265,047)
Cash received on loans to unconsolidated affiliates10,939 8,700 
Other, net11,680 10,474 
Net cash used in investing activities(1,022,149)(2,527,547)
Financing Activities  
Debt proceeds1,208,177 3,831,566 
Debt issuance costs(52,610)(133,946)
Repayments of debt(4,249,101)(1,706,807)
Proceeds from sale of noncontrolling interest209,320  
Other, net(3,928)(11,050)
Net cash (used in) provided by financing activities(2,888,142)1,979,763 
Effect of exchange rate changes on cash and cash equivalents445 (1,574)
Net decrease in cash and cash equivalents (1,208,581)(599,565)
Cash and cash equivalents at beginning of period 1,935,005 2,701,770 
Cash and cash equivalents at end of period $726,424 $2,102,205 
Supplemental Disclosure  
Cash paid during the period for:  
Interest, net of amount capitalized$560,023 $425,119 
Non-cash Investing Activities  
Purchase of property and equipment included in accounts payable and accrued expenses and other liabilities$17,790 $33,189 
The accompanying notes are an integral part of these consolidated financial statements
4


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


Common StockPaid-in CapitalAccumulated DeficitAccumulated Other Comprehensive LossTreasury StockNoncontrolling InterestTotal Shareholders' Equity
Balance at April 1, 2023$2,840 $7,351,493 $(1,755,339)$(677,944)$(2,069,432)$173,803 $3,025,421 
Activity related to employee stock plans 43,140 — — — — 43,140 
Convertible notes settlement4 12,185 — — — — 12,189 
Changes related to cash flow derivative hedges— — — 4,988 — — 4,988 
Change in defined benefit plans— — — (3,785)— — (3,785)
Foreign currency translation adjustments— — — (3,263)— — (3,263)
Noncontrolling interest— — — — — 3,631 3,631 
Net Income attributable to Royal Caribbean Cruises Ltd.— — 458,761 — — — 458,761 
Balance at June 30, 2023$2,844 $7,406,818 $(1,296,578)$(680,004)$(2,069,432)$177,434 $3,541,082 


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 64,483 — — — — 64,491 
Convertible notes settlement4 12,185 — — — — 12,189 
Changes related to cash flow derivative hedges— — — (26,709)— — (26,709)
Change in defined benefit plans— — — (272)— — (272)
Foreign currency translation adjustments— — — (9,809)— — (9,809)
Purchase of treasury stock— — — — (1,203)— (1,203)
Sale of noncontrolling interest— 45,298 — — — 173,803 219,101 
Noncontrolling interest— — — — — 3,631 3,631 
Net Income attributable to Royal Caribbean Cruises Ltd.— — 410,851 — — — 410,851 
Balance at June 30, 2023$2,844 $7,406,818 $(1,296,578)$(680,004)$(2,069,432)$177,434 $3,541,082 










The accompanying notes are an integral part of these consolidated financial statements
5


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


Common StockPaid-in CapitalAccumulated DeficitAccumulated Other Comprehensive LossTreasury StockTotal Shareholders' Equity
Balance at April 1, 2022$2,830 $7,267,545 $(718,609)$(494,609)$(2,068,229)$3,988,928 
Activity related to employee stock plans1 (12,606)— — — (12,605)
Changes related to cash flow derivative hedges— — — (84,493)— (84,493)
Change in defined benefit plans— — — 15,168 — 15,168 
Foreign currency translation adjustments— — — 12,682 — 12,682 
Net Loss— — (521,582)— — (521,582)
Balance at June 30, 2022$2,831 $7,254,939 $(1,240,191)$(551,252)$(2,068,229)$3,398,098 




Common StockPaid-in CapitalRetained Earnings (Accumulated Deficit)Accumulated Other Comprehensive LossTreasury StockTotal 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 plans4 5,282 37 — — 5,323 
Cumulative effect of adoption of Accounting Standards Update 2020-06— (307,640)146,220 — — (161,420)
Changes related to cash flow derivative hedges— — — 111,408 — 111,408 
Change in defined benefit plans— — — 27,765 — 27,765 
Foreign currency translation adjustments— — — 20,460 — 20,460 
Purchase of treasury stock— — — — (2,270)(2,270)
Net Loss— — (1,688,724)— — (1,688,724)
Balance at June 30, 2022$2,831 $7,254,939 $(1,240,191)$(551,252)$(2,068,229)$3,398,098 
The accompanying notes are an integral part of these consolidated financial statements
6



ROYAL CARIBBEAN CRUISES LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
As used in this Quarterly Report on Form 10-Q, the terms “Royal Caribbean,” "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 June 30, 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.
Liquidity
As of June 30, 2023, we had liquidity of $3.7 billion, including $3.0 billion of undrawn revolving credit facility capacity, and $0.7 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.
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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.
Reclassifications
For the six months ended June 30, 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 and six months ended June 30, 2023, we no longer separately present Impairments and Credit losses in our consolidated statements of comprehensive income (loss). As a result, amounts presented in prior periods were reclassified to Other Operating to conform to the current year presentation.
For the six months ended June 30, 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) increase 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 income (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 $226.1 million and $159.2 million for the quarters ended June 30, 2023 and 2022, respectively, and $429.5 million and $236.1 million for the six months ended June 30, 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.
8


Disaggregated Revenues
The following table disaggregates our total revenues by geographic regions where we provide cruise itineraries (in thousands):
Quarter Ended June 30,Six Months Ended June 30,
2023202220232022
Revenues by itinerary
North America (1)$2,136,503 $1,344,043 $4,329,512 $2,233,130 
Asia/Pacific169,394 45,216 502,404 79,849 
Europe840,740 527,134 842,637 528,559 
Other regions(2)227,285 159,390 441,774 239,022 
Total revenues by itinerary3,373,922 2,075,783 6,116,327 3,080,560 
Other revenues(3)149,060 108,459 291,801 162,913 
Total revenues$3,522,982 $2,184,242 $6,408,128 $3,243,473 
(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 quarter and six months ended June 30, 2023 and 2022, our guests were sourced from the following areas:
Quarter Ended June 30,
20232022
Passenger ticket revenues:
United States 76 %78 %
All other countries (1)24 %22 %

Six Months Ended June 30,
20232022
Passenger ticket revenues:
United States76 %80 %
All other countries (1)24 %20 %
(1)No other individual country's revenue exceeded 10% for the quarter and six months ended June 30, 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 $2.8 billion and $1.8 billion as of June 30, 2023 and December 31, 2022, respectively.
During the pandemic we provided flexibility to guests with bookings on sailings cancelled due to COVID-19 by allowing guests to receive future cruise credits (“FCC”). As of June 30, 2023, our customer deposit balance includes approximately $0.4 billion of unredeemed FCCs. Given the lack of comparable historical experience of FCC redemptions, as of June 30, 2023
9


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 June 30, 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 June 30, 2023 and December 31, 2022, our contract assets were $165.5 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 $291.3 million as of June 30, 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 income (loss).
Note 4. Earnings (Loss) Per Share
Basic and diluted earnings (loss) per share is as follows (in thousands, except per share data):
Quarter Ended June 30,Six Months Ended June 30,
 2023202220232022
Net Income (Loss) attributable to Royal Caribbean Cruises Ltd. for basic earnings (loss) per share$458,761 $(521,582)$410,851 $(1,688,724)
Add convertible notes interest21,323  4,214  
Net Income (Loss) attributable to Royal Caribbean Cruises Ltd. for diluted earnings (loss) per share480,084 (521,582)415,065 (1,688,724)
Weighted-average common shares outstanding255,805 254,964 255,636 254,893 
Dilutive effect of stock-based awards348  378  
Dilutive effect of convertible notes25,760  2,727  
Diluted weighted-average shares outstanding281,913 254,964 258,741 254,893 
Basic earnings (loss) per share$1.79 $(2.05)$1.61 $(6.63)
Diluted earnings (loss) per share$1.70 $(2.05)$1.60 $(6.63)
Basic earnings (loss) per share is computed by dividing Net Income (Loss) by the weighted-average number of common stock outstanding during each period. Diluted earnings (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 no antidilutive shares for the quarter ended June 30, 2023 and approximately 25,459,641 antidilutive shares from our convertible notes for the six months ended June 30, 2023, compared to 23,526,181 and 23,597,611 antidilutive shares from our stock-based awards and convertible notes for the quarter and six months ended June 30, 2022, respectively.


10



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 the entity which owns our terminal at 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 June 30, 2023, the net book value of our investment in TUIC was $508.3 million, primarily consisting of $415.4 million in equity and a loan of €79.3 million, or approximately $86.5 million based on the exchange rate at June 30, 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.
11


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 June 30,Six Months Ended June 30,
2023202220232022
Share of equity income (loss) from investments$42,014 $(13,179)$62,485 $(44,238)
Dividends received (1)$3,025 $563 $3,827 $986 
(1) Represents dividends received net of tax withholdings during the quarters and six months ended June 30, 2023 and June 30, 2022.
As of June 30, 2023As of December 31, 2022
Total notes receivable due from equity investments$106,586 $101,392 
Less-current portion (1)38,237 18,406 
Long-term portion (2)$68,349 $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 an 80% interest in the entity which owns our terminal at PortMiami for $208.9 million and retained a 20% minority interest, effective March 31, 2023. We also sold a noncontrolling interest in another entity which is developing a port project in Spain for an immaterial amount. We have determined that both of these entities are VIEs, 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 both entities. The cash consideration received for the sale of the PortMiami terminal company, net of transaction costs, was allocated between paid in capital and noncontrolling interest using the net book value of our investment in the PortMiami terminal, 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 June 30, 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 June 30, 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 associated with 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):
Six Months Ended June 30,
20232022
Balance, beginning of period$83,227 $100,192 
Credit loss (recovery), net(7,868)(10,623)
Write-offs(2,499)(9,024)
Balance, end of period$72,860 $80,545 






12


Note 6. Debt
Debt consists of the following (in thousands):
Interest Rate (1)
Maturities ThroughAs of June 30, 2023As of December 31, 2022
Fixed rate debt:
Unsecured senior notes
3.70% to 11.63%
2026 - 2030$7,898,588 $7,199,331 
Secured senior notes
8.25% to 11.50%
2025 - 20291,988,564 2,370,855 
Unsecured term loans
1.28% to 5.89%
2027 - 20354,837,257 4,561,129 
Convertible notes
2.88% to 6.00%
2023 - 20251,375,000 1,725,000 
Total fixed rate debt16,099,409 15,856,315 
Variable rate debt(2):
Unsecured revolving credit facilities (3)
6.54% to 7.29%
2024 - 2025 2,744,105 
USD unsecured term loan
6.16% to 10.05%
2023 - 20373,906,095 4,335,973 
Euro unsecured term loan
5.05% to 5.68%
2023 - 2028492,289 534,589 
Total variable rate debt4,398,384 7,614,667 
Finance lease liabilities331,130 351,332 
Total debt (4)
20,828,923 23,822,314 
Less: unamortized debt issuance costs(429,991)(431,123)
Total debt, net of unamortized debt issuance costs20,398,932 23,391,191 
Less—current portion (1,713,299)(2,087,711)
Long-term portion$18,685,633 $21,303,480 
(1) Interest rates based on outstanding loans as of June 30, 2023, and for variable rate debt include either LIBOR, EURIBOR or Term SOFR plus the applicable margin.
(2) During the quarter ended June 30, 2023, we completed our transition from LIBOR to Term SOFR rates for substantially all of our variable rate facilities, with such transition to take effect at the next respective interest reset date for each such facility.
(3) Advances under our $1.9 billion facility accrue interest at Term SOFR plus an interest rate margin ranging from 1.30% to 2.05%. Advances under our $1.1 billion facility accrue interest at Term SOFR plus an interest rate margin ranging from 1.70% to 2.05%. Based on applicable Term SOFR rates, as of June 30, 2023, the maximum interest rates under the $1.9 billion facility and the $1.1 billion facility was 7.29%. We also pay a facility fee for each facility ranging from 0.20% to 0.30% of the total commitments under such facility.
(4) At June 30, 2023 and December 31, 2022, the weighted average interest rate for total debt was 7.16% 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 six months ended June 30, 2023 we repaid $2.7 billion under our revolving credit facilities, resulting in an aggregate borrowing capacity of $3.0 billion under our unsecured revolving credit facilities as of June 30, 2023.
Convertible Notes
In June 2023, $350 million of our 4.25% Convertible Senior Notes matured. The notes were settled using a combination of $337.8 million in cash, and the issuance of approximately 374,000 shares of common stock. The issuance of equity increased additional paid in capital by $12.2 million.


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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.
In June 2023, we took delivery of Silver Nova. To finance the delivery, we borrowed a total of $503.2 million under the committed financing agreement, resulting in an unsecured term loan which is 95% guaranteed by Euler Hermes. The unsecured loan amortizes semi-annually over 12 years and bears interest at a fixed rate of 4.21% per annum.
In June 2023, we repaid $392.0 million of our 11.50% secured senior notes due in June 2025, which resulted in a total loss on extinguishment of debt of $30.2 million that was recognized within Interest expense, net of interest capitalized within our consolidated statements of comprehensive income (loss) for the quarter and six months ended June 30, 2023. In July 2023, we repaid an additional $300 million of our 11.50% secured senior notes due in June 2025.
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 June 30, 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 revolving credit facilities, the majority of our term loans, and 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 June 30, 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 June 30, 2023 for each of the next five years (in thousands):
Year
As of June 30, 2023 (1)
Remainder of 2023$1,016,304 
20241,960,853 
20253,329,844 
20262,801,075 
20273,537,745 
Thereafter8,183,102 
$20,828,923 

(1)    Debt denominated in other currencies is calculated based on the applicable exchange rate at June 30, 2023.








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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 June 30, 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 October 2023 and Silversea Cruises does not intend to renew the lease.
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 June 30, 2023 and December 31, 2022.
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 $56.4 million and $55.5 million as of June 30, 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 $255.3 million and $264.8 million as of June 30, 2023 and December 31, 2022, respectively. The lease payments on the Silver Dawn are subject to adjustments based on the LIBOR rate.




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The components of lease expense were as follows (in thousands):
Consolidated Statement of Comprehensive Income (Loss) ClassificationQuarter Ended June 30, 2023Six Months Ended June 30, 2023
Lease costs:
Operating lease costsCommission, transportation and other$39,872 $94,972 
Operating lease costsOther operating expenses5,545 11,090 
Operating lease costsMarketing, selling and administrative expenses5,544 11,005 
Financial lease costs:
Amortization of right-of-use-assetsDepreciation and amortization expenses5,791 11,582 
Interest on lease liabilitiesInterest expense, net of interest capitalized7,226 14,728 
Total lease costs$63,978 $143,377 

Consolidated Statement of Comprehensive Income (Loss) ClassificationQuarter Ended June 30, 2022Six Months ended June 30, 2022
Lease costs:
Operating lease costsCommission, transportation and other$27,993 $50,722 
Operating lease costsOther operating expenses5,523 10,994 
Operating lease costsMarketing, selling and administrative expenses4,870 9,646 
Financial lease costs:
Amortization of right-of-use-assetsDepreciation and amortization expenses6,102 12,195 
Interest on lease liabilitiesInterest expense, net of interest capitalized4,654 9,254 
Total lease costs$49,142 $92,811 
In addition, certain of our berthing agreements include variable lease costs based on the number of passengers berthed. During the quarter and six months ended June 30, 2023, we had $21.2 million and $58.9 million of variable lease costs recorded within Commission, transportation and other in our consolidated statement of comprehensive income (loss), respectively, compared to $11.9 million and $19.4 million of variable lease costs recorded within Commission, transportation and other in our consolidated statement of comprehensive income (loss) during the quarter and six months ended June 30, 2022, respectively.
The weighted average of the remaining lease terms and weighted average discount rates are as follows:
As of June 30, 2023As of December 31, 2022
Weighted average of the remaining lease term in years
Operating leases17.4617.69
Finance leases19.6319.26
Weighted average discount rate
Operating leases7.35 %6.92 %
Finance leases6.46 %6.43 %




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Supplemental cash flow information related to leases is as follows (in thousands):
Six Months Ended June 30, 2023Six Months Ended June 30, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$90,801 $56,270 
Operating cash flows from finance leases14,728 $9,254 
Financing cash flows from finance leases$19,409 $22,455 
As of June 30, 2023, maturities related to lease liabilities were as follows (in thousands):
YearOperating LeasesFinance Leases
Remainder of 2023$64,671 $23,048 
2024116,585 44,465 
2025108,572 43,974 
202696,330 38,412 
202776,629 37,358 
Thereafter830,976 706,887 
Total lease payments1,293,763 894,144 
Less: Interest(674,325)(563,014)
Present value of lease liabilities$619,438 $331,130 

















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Note 8. Commitments and Contingencies
Ship Purchase Obligations
Our future capital commitments consist primarily of new ship orders. As of June 30, 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
Berths
Royal Caribbean International —
Oasis-class:
Utopia of the SeasChantiers de l'Atlantique2nd Quarter 20245,700
Icon-class:
Icon of the SeasMeyer Turku Oy4th Quarter 20235,600
UnnamedMeyer Turku Oy2nd Quarter 20255,600
UnnamedMeyer Turku Oy2nd Quarter 20265,600
Celebrity Cruises —
Edge-class:
Celebrity AscentChantiers de l'Atlantique4th Quarter 20233,250
UnnamedChantiers de l'Atlantique4th Quarter 20253,250
Silversea Cruises —
Evolution Class:
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 Berths40,830
During the quarter ended June 30, 2023, we received commitments for the unsecured financing of the fifth Edge-class ship for up to 80% of the ship’s contract price and our building contract with Chantiers de l'Atlantique became effective. Bpifrance Assurance Export, the official French export credit agency, has agreed to guarantee to the lenders 100% of the financing.
In June 2023, we amended the credit agreement for Celebrity Ascent, to increase the maximum loan amount by €32.1 million or $35.0 million based on the exchange rate at June 30, 2023. Interest on the incremental portion of the loan will accrue at a floating rate equal to Term SOFR plus 1.45%.
As of June 30, 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 $11.0 billion, of which we had deposited $1.0 billion as of such date. Refer to Note 11. Fair Value Measurements and Derivative Instruments for further information.
Litigation
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
18


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 (expense) income within our consolidated statements of comprehensive income (loss) related to the Havana Docks Action, including post-judgment interest and related legal defense costs and bonding fees.
In addition, 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 public debt securities also contain change of control provisions that would be triggered by a third-party acquisition of greater than 50% of our common stock coupled with a ratings downgrade. If this were to occur, it would have an adverse impact on our liquidity and operations.
Note 9. Shareholders' Equity
Dividends
We did not declare any dividends during the six months ended June 30, 2023 and 2022. We were previously restricted under certain of our credit facilities from paying dividends while waivers to the financial covenants within such facilities were in effect. While the waivers have now expired, in the event we declare a dividend, we will need to repay the principal amounts deferred under our export credit facilities.
Noncontrolling Interests
Effective March 31, 2023, we closed the previously announced partnership with iCON. We sold 80% of the entity which owns our terminal at PortMiami for $208.9 million and retained a 20% minority interest. The cash consideration received, net of transaction costs, was allocated between paid in capital and noncontrolling interest in the accompanying consolidated statement of shareholders' equity for the six months ended June 30, 2023. Refer to Note 5. Investments and Other Assets for further information on the transaction.

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Note 10. Changes in Accumulated Other Comprehensive Loss
The following table presents the changes in accumulated other comprehensive loss by component for the six months ended June 30, 2023 and 2022 (in thousands):

Accumulated Other Comprehensive Loss for the Six Months Ended June 30, 2023Accumulated Other Comprehensive Loss for the Six Months Ended June 30, 2022
 Changes related to cash flow derivative hedgesChanges in defined benefit plansForeign currency translation adjustmentsAccumulated other comprehensive lossChanges related to cash flow derivative hedgesChanges in defined benefit plansForeign currency translation adjustmentsAccumulated other comprehensive loss
Accumulated comprehensive loss at beginning of the year$(638,011)$(7,921)$2,718 $(643,214)$(646,473)$(56,835)$(7,577)$(710,885)
Other comprehensive income (loss) before reclassifications(40,747)(962)(9,809)(51,518)207,406 26,107 20,460 253,973 
Amounts reclassified from accumulated other comprehensive loss14,038 690  14,728 (95,998)1,658  (94,340)
Net current-period other comprehensive income (loss)(26,709)(272)(9,809)(36,790)111,408 27,765 20,460 159,633 
Ending balance$(664,720)$(8,193)$(7,091)$(680,004)$(535,065)$(29,070)$12,883 $(551,252)

The following table presents reclassifications out of accumulated other comprehensive loss for the quarters and six months ended June 30, 2023 and 2022 (in thousands):

 Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income 
Details About Accumulated Other Comprehensive Loss ComponentsQuarter Ended June 30, 2023Quarter Ended June 30, 2022Six Months Ended June 30, 2023Six Months Ended June 30, 2022Affected Line Item in Statements of
Comprehensive Income (Loss)
Gain (loss) on cash flow derivative hedges:  
Interest rate swaps$10,491 $(5,152)$20,439 $