0000884887false--12-312024Q3P3DP1YP1Yhttp://fasb.org/us-gaap/2024#DerivativeAssetsCurrenthttp://fasb.org/us-gaap/2024#DerivativeAssetsCurrenthttp://fasb.org/us-gaap/2024#OtherAssetsNoncurrenthttp://fasb.org/us-gaap/2024#OtherAssetsNoncurrenthttp://fasb.org/us-gaap/2024#DerivativeLiabilitiesCurrenthttp://fasb.org/us-gaap/2024#DerivativeLiabilitiesCurrenthttp://fasb.org/us-gaap/2024#OtherLiabilitiesNoncurrenthttp://fasb.org/us-gaap/2024#OtherLiabilitiesNoncurrentxbrli:sharesiso4217:USDiso4217:USDxbrli:sharesrcl:brandxbrli:purercl:shiprcl:destinationrcl:countryrcl:continentiso4217:EURrcl:floating_drydockrcl:entityrcl:extension_optionrcl:berthutr:Trcl:derivative00008848872024-01-012024-09-3000008848872024-10-250000884887us-gaap:PassengerMember2024-07-012024-09-300000884887us-gaap:PassengerMember2023-07-012023-09-300000884887us-gaap:ProductAndServiceOtherMember2024-07-012024-09-300000884887us-gaap:ProductAndServiceOtherMember2023-07-012023-09-3000008848872024-07-012024-09-3000008848872023-07-012023-09-300000884887rcl:SalesCommissionsTransportationAndOtherMember2024-07-012024-09-300000884887rcl:SalesCommissionsTransportationAndOtherMember2023-07-012023-09-300000884887rcl:PayrollMember2024-07-012024-09-300000884887rcl:PayrollMember2023-07-012023-09-300000884887us-gaap:FoodAndBeverageMember2024-07-012024-09-300000884887us-gaap:FoodAndBeverageMember2023-07-012023-09-300000884887rcl:FuelCostsMember2024-07-012024-09-300000884887rcl:FuelCostsMember2023-07-012023-09-300000884887rcl:OtherOperatingExpensesMember2024-07-012024-09-300000884887rcl:OtherOperatingExpensesMember2023-07-012023-09-300000884887us-gaap:PassengerMember2024-01-012024-09-300000884887us-gaap:PassengerMember2023-01-012023-09-300000884887us-gaap:ProductAndServiceOtherMember2024-01-012024-09-300000884887us-gaap:ProductAndServiceOtherMember2023-01-012023-09-3000008848872023-01-012023-09-300000884887rcl:SalesCommissionsTransportationAndOtherMember2024-01-012024-09-300000884887rcl:SalesCommissionsTransportationAndOtherMember2023-01-012023-09-300000884887rcl:PayrollMember2024-01-012024-09-300000884887rcl:PayrollMember2023-01-012023-09-300000884887us-gaap:FoodAndBeverageMember2024-01-012024-09-300000884887us-gaap:FoodAndBeverageMember2023-01-012023-09-300000884887rcl:FuelCostsMember2024-01-012024-09-300000884887rcl:FuelCostsMember2023-01-012023-09-300000884887rcl:OtherOperatingExpensesMember2024-01-012024-09-300000884887rcl:OtherOperatingExpensesMember2023-01-012023-09-3000008848872024-09-3000008848872023-12-3100008848872022-12-3100008848872023-09-300000884887us-gaap:CommonStockMember2024-06-300000884887us-gaap:AdditionalPaidInCapitalMember2024-06-300000884887us-gaap:RetainedEarningsMember2024-06-300000884887us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-06-300000884887us-gaap:TreasuryStockCommonMember2024-06-300000884887us-gaap:NoncontrollingInterestMember2024-06-3000008848872024-06-300000884887us-gaap:AdditionalPaidInCapitalMember2024-07-012024-09-300000884887us-gaap:RetainedEarningsMember2024-07-012024-09-300000884887us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-07-012024-09-300000884887us-gaap:NoncontrollingInterestMember2024-07-012024-09-300000884887us-gaap:CommonStockMember2024-09-300000884887us-gaap:AdditionalPaidInCapitalMember2024-09-300000884887us-gaap:RetainedEarningsMember2024-09-300000884887us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-09-300000884887us-gaap:TreasuryStockCommonMember2024-09-300000884887us-gaap:NoncontrollingInterestMember2024-09-300000884887us-gaap:CommonStockMember2023-12-310000884887us-gaap:AdditionalPaidInCapitalMember2023-12-310000884887us-gaap:RetainedEarningsMember2023-12-310000884887us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-310000884887us-gaap:TreasuryStockCommonMember2023-12-310000884887us-gaap:NoncontrollingInterestMember2023-12-310000884887us-gaap:AdditionalPaidInCapitalMember2024-01-012024-09-300000884887us-gaap:RetainedEarningsMember2024-01-012024-09-300000884887us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-01-012024-09-300000884887us-gaap:TreasuryStockCommonMember2024-01-012024-09-300000884887us-gaap:NoncontrollingInterestMember2024-01-012024-09-300000884887us-gaap:CommonStockMember2023-06-300000884887us-gaap:AdditionalPaidInCapitalMember2023-06-300000884887us-gaap:RetainedEarningsMember2023-06-300000884887us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-06-300000884887us-gaap:TreasuryStockCommonMember2023-06-300000884887us-gaap:NoncontrollingInterestMember2023-06-3000008848872023-06-300000884887us-gaap:AdditionalPaidInCapitalMember2023-07-012023-09-300000884887us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-07-012023-09-300000884887us-gaap:NoncontrollingInterestMember2023-07-012023-09-300000884887us-gaap:RetainedEarningsMember2023-07-012023-09-300000884887us-gaap:CommonStockMember2023-09-300000884887us-gaap:AdditionalPaidInCapitalMember2023-09-300000884887us-gaap:RetainedEarningsMember2023-09-300000884887us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-09-300000884887us-gaap:TreasuryStockCommonMember2023-09-300000884887us-gaap:NoncontrollingInterestMember2023-09-300000884887us-gaap:CommonStockMember2022-12-310000884887us-gaap:AdditionalPaidInCapitalMember2022-12-310000884887us-gaap:RetainedEarningsMember2022-12-310000884887us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310000884887us-gaap:TreasuryStockCommonMember2022-12-310000884887us-gaap:AdditionalPaidInCapitalMember2023-01-012023-09-300000884887us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-09-300000884887us-gaap:TreasuryStockCommonMember2023-01-012023-09-300000884887us-gaap:NoncontrollingInterestMember2023-01-012023-09-300000884887us-gaap:RetainedEarningsMember2023-01-012023-09-300000884887rcl:TUICruisesMember2024-09-300000884887srt:MinimumMember2024-01-012024-09-300000884887srt:MaximumMember2024-01-012024-09-300000884887rcl:PortCostsMember2024-07-012024-09-300000884887rcl:PortCostsMember2023-07-012023-09-300000884887rcl:PortCostsMember2024-01-012024-09-300000884887rcl:PortCostsMember2023-01-012023-09-300000884887srt:NorthAmericaMemberrcl:CruiseItineraryMember2024-07-012024-09-300000884887srt:NorthAmericaMemberrcl:CruiseItineraryMember2023-07-012023-09-300000884887srt:NorthAmericaMemberrcl:CruiseItineraryMember2024-01-012024-09-300000884887srt:NorthAmericaMemberrcl:CruiseItineraryMember2023-01-012023-09-300000884887srt:AsiaPacificMemberrcl:CruiseItineraryMember2024-07-012024-09-300000884887srt:AsiaPacificMemberrcl:CruiseItineraryMember2023-07-012023-09-300000884887srt:AsiaPacificMemberrcl:CruiseItineraryMember2024-01-012024-09-300000884887srt:AsiaPacificMemberrcl:CruiseItineraryMember2023-01-012023-09-300000884887srt:EuropeMemberrcl:CruiseItineraryMember2024-07-012024-09-300000884887srt:EuropeMemberrcl:CruiseItineraryMember2023-07-012023-09-300000884887srt:EuropeMemberrcl:CruiseItineraryMember2024-01-012024-09-300000884887srt:EuropeMemberrcl:CruiseItineraryMember2023-01-012023-09-300000884887rcl:OtherRegionMemberrcl:CruiseItineraryMember2024-07-012024-09-300000884887rcl:OtherRegionMemberrcl:CruiseItineraryMember2023-07-012023-09-300000884887rcl:OtherRegionMemberrcl:CruiseItineraryMember2024-01-012024-09-300000884887rcl:OtherRegionMemberrcl:CruiseItineraryMember2023-01-012023-09-300000884887rcl:CruiseItineraryMember2024-07-012024-09-300000884887rcl:CruiseItineraryMember2023-07-012023-09-300000884887rcl:CruiseItineraryMember2024-01-012024-09-300000884887rcl:CruiseItineraryMember2023-01-012023-09-300000884887rcl:OtherProductsAndServicesMember2024-07-012024-09-300000884887rcl:OtherProductsAndServicesMember2023-07-012023-09-300000884887rcl:OtherProductsAndServicesMember2024-01-012024-09-300000884887rcl:OtherProductsAndServicesMember2023-01-012023-09-300000884887country:USrcl:PassengerTicketMember2024-07-012024-09-300000884887country:USrcl:PassengerTicketMember2023-07-012023-09-300000884887country:GBrcl:PassengerTicketMember2024-07-012024-09-300000884887country:GBrcl:PassengerTicketMember2023-07-012023-09-300000884887rcl:OtherRegionMemberrcl:PassengerTicketMember2024-07-012024-09-300000884887rcl:OtherRegionMemberrcl:PassengerTicketMember2023-07-012023-09-300000884887country:USrcl:PassengerTicketMember2024-01-012024-09-300000884887country:USrcl:PassengerTicketMember2023-01-012023-09-300000884887rcl:OtherRegionMemberrcl:PassengerTicketMember2024-01-012024-09-300000884887rcl:OtherRegionMemberrcl:PassengerTicketMember2023-01-012023-09-300000884887rcl:SalesCommissionsTransportationAndOtherMember2024-09-300000884887rcl:SalesCommissionsTransportationAndOtherMember2023-12-310000884887rcl:PortOfMiamiMember2023-12-310000884887rcl:TUICruisesMemberus-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2024-09-300000884887rcl:TUICruisesMember2023-12-310000884887rcl:SplendoroftheSeasMemberrcl:TUICruisesMember2016-04-300000884887rcl:SplendoroftheSeasMemberrcl:TUICruisesMember2016-04-012016-04-300000884887rcl:TUICruisesMemberrcl:TUICruiseShipsMember2024-09-300000884887rcl:GrandBahamaMemberus-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2024-09-300000884887rcl:FloatingDocksS.DERLMemberus-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2023-12-310000884887rcl:GrandBahamaMemberrcl:OtherShareholderMemberus-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2023-12-310000884887rcl:FloatingDocksS.DERLMemberus-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2023-01-012023-12-310000884887rcl:FloatingDocksS.DERLMemberus-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2024-09-300000884887rcl:ItalianEntitiesMember2023-12-310000884887rcl:EquityInvestmentMember2024-09-300000884887rcl:EquityInvestmentMember2023-12-310000884887rcl:PortOfMiamiMember2023-03-310000884887rcl:PortOfMiamiMember2023-01-012023-03-310000884887rcl:PortOfMiamiMemberus-gaap:VariableInterestEntityPrimaryBeneficiaryMember2023-03-310000884887us-gaap:PropertyPlantAndEquipmentMember2024-01-012024-09-300000884887us-gaap:PropertyPlantAndEquipmentMember2023-01-012023-09-300000884887us-gaap:SeniorNotesMember2024-09-300000884887us-gaap:SeniorNotesMember2023-12-310000884887us-gaap:SecuredDebtMember2024-09-300000884887us-gaap:SecuredDebtMember2023-12-310000884887us-gaap:UnsecuredDebtMember2024-09-300000884887us-gaap:UnsecuredDebtMember2023-12-310000884887us-gaap:ConvertibleNotesPayableMember2024-09-300000884887us-gaap:ConvertibleNotesPayableMember2023-12-310000884887rcl:FixedRateDebtMember2024-09-300000884887rcl:FixedRateDebtMember2023-12-310000884887us-gaap:RevolvingCreditFacilityMember2024-09-300000884887us-gaap:RevolvingCreditFacilityMember2023-12-310000884887rcl:USDUnsecuredTermLoanMember2024-09-300000884887rcl:USDUnsecuredTermLoanMember2023-12-310000884887rcl:EuroUnsecuredTermLoanMember2024-09-300000884887rcl:EuroUnsecuredTermLoanMember2023-12-310000884887rcl:VariableRateDebtMember2024-09-300000884887rcl:VariableRateDebtMember2023-12-310000884887rcl:FinanceLeaseObligationsMember2024-09-300000884887rcl:FinanceLeaseObligationsMember2023-12-310000884887rcl:UnsecuredRevolvingCreditFacilityDue2024Memberus-gaap:RevolvingCreditFacilityMember2024-01-012024-09-300000884887rcl:UnsecuredRevolvingCreditFacilityDue2024Memberus-gaap:RevolvingCreditFacilityMembersrt:MaximumMember2024-09-300000884887rcl:AggregateRevolvingCapacityOctober2024Memberus-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2024-09-300000884887rcl:AggregateRevolvingCapacityOctober2026Memberus-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2024-09-300000884887rcl:AggregateRevolvingCapacityOctober2028Memberus-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2024-09-300000884887us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2024-09-300000884887rcl:SeniorUnsecuredNotesDue2032Memberus-gaap:SeniorNotesMember2024-03-310000884887rcl:SeniorUnsecuredNotesDue2032Memberus-gaap:SeniorNotesMember2024-03-012024-03-310000884887rcl:SeniorNotesDue2027Memberus-gaap:SeniorNotesMember2024-03-012024-03-310000884887rcl:SeniorNotesDue2027Memberus-gaap:SeniorNotesMember2024-03-310000884887rcl:SeniorNotesDue2027Memberus-gaap:SeniorNotesMember2024-01-012024-09-300000884887rcl:SeniorUnsecuredNotesDue2033Memberus-gaap:SeniorNotesMember2024-08-310000884887rcl:SeniorUnsecuredNotesDue2033Memberus-gaap:SeniorNotesMember2024-08-012024-08-310000884887rcl:SeniorNotesDue2029Memberus-gaap:SeniorNotesMember2024-08-012024-08-310000884887rcl:SeniorNotesDue2029Memberus-gaap:SeniorNotesMember2024-08-310000884887rcl:SeniorSecuredNotesDue2029Memberus-gaap:SeniorNotesMember2024-08-012024-08-310000884887rcl:SeniorSecuredNotesDue2029Memberus-gaap:SeniorNotesMember2024-08-310000884887rcl:SeniorSecuredNotesDue2029Memberus-gaap:SeniorNotesMember2024-07-012024-09-300000884887rcl:SeniorSecuredNotesDue2029Memberus-gaap:SeniorNotesMember2024-01-012024-09-300000884887rcl:ConvertibleSeniorNotesDue2025Memberus-gaap:SeniorNotesMember2024-08-310000884887rcl:ConvertibleSeniorNotesDue2025Memberus-gaap:SeniorNotesMember2024-08-012024-08-310000884887rcl:ConvertibleSeniorNotesDue2025Memberus-gaap:SeniorNotesMember2024-01-012024-09-300000884887rcl:ConvertibleSeniorNotesDue2025Memberus-gaap:SeniorNotesMember2024-07-012024-09-300000884887rcl:SeniorUnsecuredNotesDue2031Memberus-gaap:SeniorNotesMember2024-09-300000884887rcl:SeniorUnsecuredNotesDue2031Memberus-gaap:SeniorNotesMember2024-09-012024-09-300000884887rcl:SeniorNotesDue2030Memberus-gaap:SeniorNotesMember2024-09-012024-09-300000884887rcl:SeniorNotesDue2030Memberus-gaap:SeniorNotesMember2024-09-300000884887us-gaap:SeniorNotesMember2024-07-012024-09-300000884887us-gaap:SeniorNotesMember2024-01-012024-09-300000884887rcl:SilverRayUnsecuredTermLoanMemberus-gaap:UnsecuredDebtMember2024-05-012024-05-310000884887rcl:SilverRayUnsecuredTermLoanMemberrcl:EulerHermesMemberus-gaap:UnsecuredDebtMember2024-05-012024-05-310000884887rcl:SilverRayUnsecuredTermLoanMemberus-gaap:UnsecuredDebtMember2024-05-310000884887rcl:UtopiaOfTheSeasUnsecuredTermLoanMemberus-gaap:UnsecuredDebtMember2024-06-012024-06-300000884887rcl:UtopiaOfTheSeasUnsecuredTermLoanMemberrcl:BpifranceAssuranceExportMemberus-gaap:UnsecuredDebtMember2024-06-012024-06-300000884887rcl:UtopiaOfTheSeasUnsecuredTermLoanMemberus-gaap:UnsecuredDebtMember2024-06-300000884887rcl:ExportCreditFacilitiesMember2024-04-012024-06-300000884887srt:MinimumMemberrcl:ContractWithCustomerLiabilityUpFrontPaymentArrangementMember2024-01-012024-09-300000884887srt:MaximumMemberrcl:ContractWithCustomerLiabilityUpFrontPaymentArrangementMember2024-01-012024-09-300000884887rcl:BerthingAgreementMember2023-12-310000884887rcl:BerthingAgreementMember2024-09-300000884887rcl:BerthingAgreementMember2023-11-3000008848872023-11-300000884887srt:MinimumMemberus-gaap:BuildingMember2024-09-300000884887srt:MaximumMemberus-gaap:BuildingMember2024-09-300000884887srt:MinimumMemberrcl:BerthingAgreementMember2024-09-300000884887srt:MaximumMemberrcl:BerthingAgreementMember2024-09-300000884887us-gaap:LandAndBuildingMember2024-09-300000884887us-gaap:LandAndBuildingMember2023-12-310000884887rcl:MuseClassSilverDawnMemberrcl:ShipsMember2024-09-300000884887rcl:MuseClassSilverDawnMemberrcl:ShipsMember2024-09-260000884887rcl:MuseClassSilverDawnMemberrcl:ShipsMember2023-12-310000884887rcl:SalesCommissionsTransportationAndOtherMember2024-07-012024-09-300000884887rcl:SalesCommissionsTransportationAndOtherMember2024-01-012024-09-300000884887us-gaap:OtherOperatingIncomeExpenseMember2024-07-012024-09-300000884887us-gaap:OtherOperatingIncomeExpenseMember2024-01-012024-09-300000884887rcl:MarketingSellingAndAdministrativeExpenseMember2024-07-012024-09-300000884887rcl:MarketingSellingAndAdministrativeExpenseMember2024-01-012024-09-300000884887rcl:SalesCommissionsTransportationAndOtherMember2023-07-012023-09-300000884887rcl:SalesCommissionsTransportationAndOtherMember2023-01-012023-09-300000884887us-gaap:OtherOperatingIncomeExpenseMember2023-07-012023-09-300000884887us-gaap:OtherOperatingIncomeExpenseMember2023-01-012023-09-300000884887rcl:MarketingSellingAndAdministrativeExpenseMember2023-07-012023-09-300000884887rcl:MarketingSellingAndAdministrativeExpenseMember2023-01-012023-09-300000884887rcl:RoyalCaribbeanInternationalMemberrcl:StarOfTheSeasMember2024-09-300000884887rcl:RoyalCaribbeanInternationalMemberrcl:IconClassShipThreeMember2024-09-300000884887rcl:CelebrityCruisesMemberrcl:EdgeClassCelebrityXcelMember2024-09-300000884887rcl:TUICruisesMemberrcl:MeinSchiffRelaxMember2024-09-300000884887rcl:TUICruisesMemberrcl:TUICruisesUnnamedShipMember2024-09-3000008848872022-12-012022-12-3100008848872022-10-012022-12-310000884887us-gaap:LineOfCreditMembersrt:MinimumMember2024-09-300000884887us-gaap:DebtSecuritiesMembersrt:MinimumMember2024-09-300000884887rcl:PortOfCostaMayaAndAdjacentLandMember2024-09-012024-09-300000884887us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-12-310000884887us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-12-310000884887us-gaap:AccumulatedTranslationAdjustmentMember2023-12-310000884887us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-12-310000884887us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-12-310000884887us-gaap:AccumulatedTranslationAdjustmentMember2022-12-310000884887us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2024-01-012024-09-300000884887us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2024-01-012024-09-300000884887us-gaap:AccumulatedTranslationAdjustmentMember2024-01-012024-09-300000884887us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-01-012023-09-300000884887us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-01-012023-09-300000884887us-gaap:AccumulatedTranslationAdjustmentMember2023-01-012023-09-300000884887us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2024-09-300000884887us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2024-09-300000884887us-gaap:AccumulatedTranslationAdjustmentMember2024-09-300000884887us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-09-300000884887us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-09-300000884887us-gaap:AccumulatedTranslationAdjustmentMember2023-09-300000884887us-gaap:InterestRateSwapMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2024-07-012024-09-300000884887us-gaap:InterestRateSwapMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2023-07-012023-09-300000884887us-gaap:InterestRateSwapMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2024-01-012024-09-300000884887us-gaap:InterestRateSwapMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2023-01-012023-09-300000884887us-gaap:ForeignExchangeForwardMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2024-07-012024-09-300000884887us-gaap:ForeignExchangeForwardMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2023-07-012023-09-300000884887us-gaap:ForeignExchangeForwardMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2024-01-012024-09-300000884887us-gaap:ForeignExchangeForwardMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2023-01-012023-09-300000884887us-gaap:CommodityContractMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2024-07-012024-09-300000884887us-gaap:CommodityContractMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2023-07-012023-09-300000884887us-gaap:CommodityContractMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2024-01-012024-09-300000884887us-gaap:CommodityContractMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2023-01-012023-09-300000884887us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2024-07-012024-09-300000884887us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2023-07-012023-09-300000884887us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2024-01-012024-09-300000884887us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2023-01-012023-09-300000884887us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2024-09-300000884887us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2024-09-300000884887us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsNonrecurringMember2024-09-300000884887us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsNonrecurringMember2024-09-300000884887us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2024-09-300000884887us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2023-12-310000884887us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-12-310000884887us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsNonrecurringMember2023-12-310000884887us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsNonrecurringMember2023-12-310000884887us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2023-12-310000884887us-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2024-09-300000884887us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2024-09-300000884887us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2024-09-300000884887us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2024-09-300000884887us-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-12-310000884887us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000884887us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000884887us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000884887us-gaap:CashFlowHedgingMember2024-01-012024-09-300000884887rcl:FloatingRateCelebrityReflectionTermLoanMemberus-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMember2024-09-300000884887rcl:FloatingRateCelebrityReflectionTermLoanMemberus-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:SecuredOvernightFinancingRateSofrMember2024-01-012024-09-300000884887rcl:QuantumOfTheSeasUnsecuredTermLoanMemberus-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMember2024-09-300000884887rcl:QuantumOfTheSeasUnsecuredTermLoanMemberus-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:SecuredOvernightFinancingRateSofrMember2024-01-012024-09-300000884887rcl:AnthemOfTheSeasUnsecuredTermLoanMemberus-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMember2024-09-300000884887rcl:AnthemOfTheSeasUnsecuredTermLoanMemberus-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:SecuredOvernightFinancingRateSofrMember2024-01-012024-09-300000884887rcl:OvationoftheSeasUnsecuredTermLoanMemberus-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMember2024-09-300000884887rcl:OvationoftheSeasUnsecuredTermLoanMemberus-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:SecuredOvernightFinancingRateSofrMember2024-01-012024-09-300000884887rcl:HarmonyoftheSeasUnsecuredTermLoanMemberus-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMember2024-09-300000884887rcl:HarmonyoftheSeasUnsecuredTermLoanMemberus-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberrcl:EuroInterbankOfferedRateEURIBORMember2024-01-012024-09-300000884887rcl:OdysseyOfTheSeasTermLoanOneMemberus-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMember2024-09-300000884887rcl:OdysseyOfTheSeasTermLoanOneMemberus-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:SecuredOvernightFinancingRateSofrMember2024-01-012024-09-300000884887rcl:OdysseyOfTheSeasTermLoanTwoMemberus-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMember2024-09-300000884887rcl:OdysseyOfTheSeasTermLoanTwoMemberus-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:SecuredOvernightFinancingRateSofrMember2024-01-012024-09-300000884887us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMember2024-09-300000884887us-gaap:InterestRateSwapMember2024-09-300000884887us-gaap:InterestRateSwapMember2023-12-310000884887us-gaap:ForeignExchangeForwardMemberus-gaap:NondesignatedMember2024-09-300000884887us-gaap:ForeignExchangeForwardMemberus-gaap:NondesignatedMember2023-09-300000884887us-gaap:ForeignExchangeContractMember2024-09-300000884887us-gaap:ForeignExchangeContractMember2023-12-310000884887rcl:TUICruisesMemberus-gaap:NetInvestmentHedgingMember2024-01-012024-09-300000884887rcl:TUICruisesMemberus-gaap:NetInvestmentHedgingMember2023-01-012023-12-310000884887us-gaap:CommodityContractMemberrcl:Swaps1Member2024-09-300000884887us-gaap:CommodityContractMemberrcl:Swaps1Member2023-12-310000884887us-gaap:CommodityContractMemberrcl:Swaps2Member2024-09-300000884887us-gaap:CommodityContractMemberrcl:Swaps2Member2023-12-310000884887us-gaap:CommodityContractMemberrcl:Swaps3Member2024-09-300000884887us-gaap:CommodityContractMemberrcl:Swaps3Member2023-12-310000884887us-gaap:CommodityContractMemberrcl:Swaps4Member2024-09-300000884887us-gaap:CommodityContractMemberrcl:Swaps4Member2023-12-310000884887us-gaap:CommodityContractMember2024-09-300000884887us-gaap:CommodityContractMember2023-12-310000884887rcl:DerivativeFinancialInstrumentsMember2024-09-300000884887rcl:DerivativeFinancialInstrumentsMember2023-12-310000884887us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMemberrcl:DerivativeFinancialInstrumentsMember2024-09-300000884887us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMemberrcl:DerivativeFinancialInstrumentsMember2023-12-310000884887us-gaap:OtherAssetsMember2024-09-300000884887us-gaap:OtherAssetsMember2023-12-310000884887us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherAssetsMember2024-09-300000884887us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherAssetsMember2023-12-310000884887us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherNoncurrentLiabilitiesMember2024-09-300000884887us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherNoncurrentLiabilitiesMember2023-12-310000884887us-gaap:ForeignExchangeForwardMemberus-gaap:DesignatedAsHedgingInstrumentMemberrcl:DerivativeFinancialInstrumentsMember2024-09-300000884887us-gaap:ForeignExchangeForwardMemberus-gaap:DesignatedAsHedgingInstrumentMemberrcl:DerivativeFinancialInstrumentsMember2023-12-310000884887us-gaap:ForeignExchangeForwardMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherAssetsMember2024-09-300000884887us-gaap:ForeignExchangeForwardMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherAssetsMember2023-12-310000884887us-gaap:OtherNoncurrentLiabilitiesMember2023-12-310000884887us-gaap:OtherNoncurrentLiabilitiesMember2024-09-300000884887us-gaap:ForeignExchangeForwardMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherNoncurrentLiabilitiesMember2024-09-300000884887us-gaap:ForeignExchangeForwardMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherNoncurrentLiabilitiesMember2023-12-310000884887us-gaap:CommodityContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberrcl:DerivativeFinancialInstrumentsMember2024-09-300000884887us-gaap:CommodityContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberrcl:DerivativeFinancialInstrumentsMember2023-12-310000884887us-gaap:CommodityContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherAssetsMember2024-09-300000884887us-gaap:CommodityContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherAssetsMember2023-12-310000884887us-gaap:CommodityContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherNoncurrentLiabilitiesMember2024-09-300000884887us-gaap:CommodityContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherNoncurrentLiabilitiesMember2023-12-310000884887us-gaap:DesignatedAsHedgingInstrumentMember2024-09-300000884887us-gaap:DesignatedAsHedgingInstrumentMember2023-12-310000884887us-gaap:NetInvestmentHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberrcl:LongTermDebtAndLeaseObligationCurrentMember2024-01-012024-09-300000884887us-gaap:NetInvestmentHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberrcl:LongTermDebtAndLeaseObligationCurrentMember2023-01-012023-12-310000884887us-gaap:NetInvestmentHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberrcl:LongTermDebtAndLeaseObligationMember2024-01-012024-09-300000884887us-gaap:NetInvestmentHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberrcl:LongTermDebtAndLeaseObligationMember2023-01-012023-12-310000884887us-gaap:NetInvestmentHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-01-012024-09-300000884887us-gaap:NetInvestmentHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-01-012023-12-310000884887us-gaap:InterestRateSwapMember2024-07-012024-09-300000884887us-gaap:InterestRateSwapMember2023-07-012023-09-300000884887us-gaap:InterestRateSwapMember2024-01-012024-09-300000884887us-gaap:InterestRateSwapMember2023-01-012023-09-300000884887us-gaap:ForeignExchangeForwardMember2024-07-012024-09-300000884887us-gaap:ForeignExchangeForwardMember2023-07-012023-09-300000884887us-gaap:ForeignExchangeForwardMember2024-01-012024-09-300000884887us-gaap:ForeignExchangeForwardMember2023-01-012023-09-300000884887us-gaap:CommodityContractMember2024-07-012024-09-300000884887us-gaap:CommodityContractMember2023-07-012023-09-300000884887us-gaap:CommodityContractMember2024-01-012024-09-300000884887us-gaap:CommodityContractMember2023-01-012023-09-300000884887us-gaap:NetInvestmentHedgingMember2024-07-012024-09-300000884887us-gaap:NetInvestmentHedgingMember2023-07-012023-09-300000884887us-gaap:NetInvestmentHedgingMember2024-01-012024-09-300000884887us-gaap:NetInvestmentHedgingMember2023-01-012023-09-300000884887us-gaap:NondesignatedMember2024-01-012024-09-300000884887rcl:OtherIncomeAndExpenseMemberus-gaap:ForeignExchangeForwardMember2024-07-012024-09-300000884887rcl:OtherIncomeAndExpenseMemberus-gaap:ForeignExchangeForwardMember2023-07-012023-09-300000884887rcl:OtherIncomeAndExpenseMemberus-gaap:ForeignExchangeForwardMember2024-01-012024-09-300000884887rcl:OtherIncomeAndExpenseMemberus-gaap:ForeignExchangeForwardMember2023-01-012023-09-300000884887rcl:OtherIncomeAndExpenseMemberus-gaap:CommodityContractMember2024-07-012024-09-300000884887rcl:OtherIncomeAndExpenseMemberus-gaap:CommodityContractMember2023-07-012023-09-300000884887rcl:OtherIncomeAndExpenseMemberus-gaap:CommodityContractMember2024-01-012024-09-300000884887rcl:OtherIncomeAndExpenseMemberus-gaap:CommodityContractMember2023-01-012023-09-30

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 September 30, 2024
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 268,875,240 shares of common stock outstanding as of October 25, 2024.

























ROYAL CARIBBEAN CRUISES LTD.



PART I. FINANCIAL INFORMATION
Item 1. Financial Statements

ROYAL CARIBBEAN CRUISES LTD.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(unaudited; in millions, except per share data)
Quarter Ended September 30,
 20242023
Passenger ticket revenues$3,471 $2,941 
Onboard and other revenues1,415 1,219 
Total revenues4,886 4,160 
Cruise operating expenses:  
Commissions, transportation and other688 632 
Onboard and other289 261 
Payroll and related328 294 
Food251 212 
Fuel290 272 
Other operating545 466 
Total cruise operating expenses2,391 2,137 
Marketing, selling and administrative expenses451 393 
Depreciation and amortization expenses410 365 
Operating Income1,634 1,265 
Other income (expense):  
Interest income4 7 
Interest expense, net of interest capitalized(603)(340)
Equity investment income106 87 
Other expense(26)(8)
 (519)(254)
Net Income1,115 1,011 
Less: Net Income attributable to noncontrolling interest4 2 
Net Income attributable to Royal Caribbean Cruises Ltd.$1,111 $1,009 
Earnings per Share:  
Basic$4.22 $3.94 
Diluted$4.21 $3.65 
Weighted-Average Shares Outstanding:  
Basic263 256 
Diluted264 282 
Comprehensive Income (Loss)  
Net Income$1,115 $1,011 
Other comprehensive income (loss):  
Foreign currency translation adjustments(10)11 
Change in defined benefit plans6 5 
(Loss) gain on cash flow derivative hedges(95)20 
Total other comprehensive (loss) income(99)36 
Comprehensive Income1,016 1,047 
Less: Comprehensive Income attributable to noncontrolling interest4 2 
Comprehensive Income attributable to Royal Caribbean Cruises Ltd.$1,012 $1,045 



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 millions, except per share data)

Nine Months Ended September 30,
20242023
Passenger ticket revenues$8,900 $7,282 
Onboard and other revenues3,824 3,287 
Total revenues12,724 10,569 
Cruise operating expenses:
Commissions, transportation and other1,758 1,551 
Onboard and other726 640 
Payroll and related959 888 
Food697 614 
Fuel876 850 
Other operating1,584 1,342 
Total cruise operating expenses6,600 5,885 
Marketing, selling and administrative expenses1,452 1,289 
Depreciation and amortization expenses1,190 1,087 
Operating Income 3,482 2,308 
Other income (expense):
Interest income13 32 
Interest expense, net of interest capitalized(1,324)(1,055)
Equity investment income203 149 
Other expense(37)(9)
(1,145)(883)
Net Income2,337 1,425 
Less: Net Income attributable to noncontrolling interest12 5 
Net Income attributable to Royal Caribbean Cruises Ltd.$2,325 $1,420 
Earnings per Share:
Basic$8.98 $5.55 
Diluted$8.91 $5.24 
Weighted-Average Shares Outstanding:
Basic259 256 
Diluted280 284 
Comprehensive Income (Loss)
Net Income$2,337 $1,425 
Other comprehensive income (loss):
Foreign currency translation adjustments— 2 
Change in defined benefit plans3 4 
Loss on cash flow derivative hedges(82)(7)
Total other comprehensive loss(79)(1)
Comprehensive Income2,258 1,424 
Less: Comprehensive Income attributable to noncontrolling interest12 5 
Comprehensive Income attributable to Royal Caribbean Cruises Ltd.$2,246 $1,419 
The accompanying notes are an integral part of these consolidated financial statements
2

ROYAL CARIBBEAN CRUISES LTD.
CONSOLIDATED BALANCE SHEETS
(in millions, except share data)
 As of
 September 30,December 31,
 20242023
 (unaudited) 
Assets  
Current assets  
Cash and cash equivalents$418 $497 
Trade and other receivables, net of allowances of $8 and $7 at September 30, 2024 and December 31, 2023, respectively
441 405 
Inventories265 248 
Prepaid expenses and other assets667 617 
Derivative financial instruments40 25 
Total current assets1,831 1,792 
Property and equipment, net31,706 30,114 
Operating lease right-of-use assets649 611 
Goodwill809 809 
Other assets, net of allowances of $42 and $43 at September 30, 2024 and December 31, 2023, respectively
2,072 1,805 
Total assets$37,067 $35,131 
Liabilities and Shareholders’ Equity  
Current liabilities  
Current portion of long-term debt$1,868 $1,720 
Current portion of operating lease liabilities68 65 
Accounts payable851 792 
Accrued expenses and other liabilities1,476 1,478 
Derivative financial instruments44 35 
Customer deposits5,324 5,311 
Total current liabilities9,631 9,401 
Long-term debt18,972 19,732 
Long-term operating lease liabilities648 613 
Other long-term liabilities592 486 
Total liabilities29,843 30,232 
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; 297,343,264 and 284,672,386 shares issued, September 30, 2024 and December 31, 2023, respectively)
3 3 
Paid-in capital7,669 7,474 
Retained earnings (accumulated deficit)2,207 (10)
Accumulated other comprehensive loss(753)(674)
Treasury stock (28,468,430 and 28,248,125 common shares at cost, September 30, 2024 and December 31, 2023, respectively)
(2,081)(2,069)
Total shareholders’ equity attributable to Royal Caribbean Cruises Ltd.7,045 4,724 
Noncontrolling Interests179 175 
Total shareholders’ equity7,224 4,899 
Total liabilities and shareholders’ equity$37,067 $35,131 

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

ROYAL CARIBBEAN CRUISES LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in millions)
Nine Months Ended September 30,
 20242023
Operating Activities  
Net Income$2,337 $1,425 
Adjustments:  
Depreciation and amortization1,190 1,087 
Net deferred income tax expense (benefit)15 (3)
Loss on derivative instruments not designated as hedges8 31 
Share-based compensation expense109 79 
Equity investment income(203)(149)
Amortization of debt issuance costs, discounts and premiums76 84 
Loss on extinguishment of debt and inducement expense456 81 
Changes in operating assets and liabilities:  
(Increase) decrease in trade and other receivables, net(13)131 
Increase in inventories, net(17)(18)
Increase in prepaid expenses and other assets(110)(44)
Increase in accounts payable trade53 62 
Decrease in accrued expenses and other liabilities(142)(245)
Increase in customer deposits13 864 
Other, net26 (24)
Net cash provided by operating activities3,798 3,361 
Investing Activities  
Purchases of property and equipment(2,716)(1,329)
Cash received on settlement of derivative financial instruments14 23 
Cash paid on settlement of derivative financial instruments(61)(66)
Investments in and loans to unconsolidated affiliates(47)(22)
Cash received on loans from unconsolidated affiliates13 36 
Other, net(8)9 
Net cash used in investing activities(2,805)(1,349)
Financing Activities  
Debt proceeds9,358 1,808 
Debt issuance costs(120)(56)
Repayments of debt(9,969)(5,255)
Premium on repayment of debt(290)(51)
Proceeds from sale of noncontrolling interest— 209 
Other, net(49)(1)
Net cash used in financing activities(1,070)(3,346)
Effect of exchange rate changes on cash and cash equivalents(2)(1)
Net decrease in cash and cash equivalents(79)(1,335)
Cash and cash equivalents at beginning of period 497 1,935 
Cash and cash equivalents at end of period $418 $600 
The accompanying notes are an integral part of these consolidated financial statements
4

ROYAL CARIBBEAN CRUISES LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in millions)
Nine Months Ended September 30,
 20242023
Supplemental Disclosure  
Cash paid during the period for:  
Interest, net of amount capitalized$998 $1,064 
Non-cash Investing Activities  
Purchase of property and equipment included in accounts payable and accrued expenses and other liabilities$52 $24 
Non-cash Financing Activity
Non-cash inducement on convertible notes exchange$104 $— 

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

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


Common StockPaid-in CapitalRetained EarningsAccumulated Other Comprehensive LossTreasury StockNoncontrolling InterestTotal Shareholders' Equity
Balance at July 1, 2024$3 $7,536 $1,204 $(654)$(2,081)$174 $6,182 
Activity related to employee stock plans— 29 — — — — 29 
Common stock dividends, $0.40 per share
— — (108)— — — (108)
Convertible notes settlement— 104 — — — — 104 
Changes related to cash flow derivative hedges— — — (95)— — (95)
Change in defined benefit plans— — — 6 — — 6 
Foreign currency translation adjustments— — — (10)— — (10)
Net Income attributable to noncontrolling interest— — — — — 4 4 
Other activity attributable to noncontrolling interest— — — — — 1 1 
Net Income attributable to Royal Caribbean Cruises Ltd.— — 1,111 — — — 1,111 
Balance at September 30, 2024$3 $7,669 $2,207 $(753)$(2,081)$179 $7,224 


Common StockPaid-in Capital(Accumulated Deficit)
Retained Earnings 		Accumulated Other Comprehensive LossTreasury StockNoncontrolling InterestTotal Shareholders' Equity
Balance at January 1, 2024$3 $7,474 $(10)$(674)$(2,069)$175 $4,899 
Activity related to employee stock plans— 91 — — — — 91 
Common stock dividends, $0.40 per share
— — (108)— — — (108)
Convertible notes settlement— 104 — — — — 104 
Changes related to cash flow derivative hedges— — — (82)— — (82)
Change in defined benefit plans— — — 3 — — 3 
Purchase of treasury stock— — — — (12)— (12)
Net Income attributable to noncontrolling interest— — — — — 12 12 
Other activity attributable to noncontrolling interest— — — — — (8)(8)
Net Income attributable to Royal Caribbean Cruises Ltd.— — 2,325 — — — 2,325 
Balance at September 30, 2024$3 $7,669 $2,207 $(753)$(2,081)$179 $7,224 







The accompanying notes are an integral part of these consolidated financial statements
6




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


Common StockPaid-in CapitalAccumulated DeficitAccumulated Other Comprehensive LossTreasury StockNoncontrolling InterestTotal Shareholders' Equity
Balance at July 1, 2023$3 $7,407 $(1,296)$(680)$(2,069)$177 $3,542 
Activity related to employee stock plans— 14 — — — — 14 
Changes related to cash flow derivative hedges— — — 20 — — 20 
Change in defined benefit plans— — — 5 — — 5 
Foreign currency translation adjustments— — — 11 — — 11 
Sale of noncontrolling interest— 1 — — — — 1 
Noncontrolling interest— — — — — 2 2 
Dividends from noncontrolling interest— — — — — (5)(5)
Net Income attributable to Royal Caribbean Cruises Ltd. — — 1,009 — — — 1,009 
Balance at September 30, 2023$3 $7,422 $(287)$(644)$(2,069)$174 $4,599 


Common StockPaid-in CapitalAccumulated DeficitAccumulated Other Comprehensive LossTreasury StockNoncontrolling InterestTotal Shareholders' Equity
Balance at January 1, 2023$3 $7,285 $(1,707)$(643)$(2,068)$— $2,870 
Activity related to employee stock plans— 79 — — — — 79 
Convertible notes settlement— 12 — — — — 12 
Changes related to cash flow derivative hedges— — — (7)— — (7)
Change in defined benefit plans— — — 4 — — 4 
Foreign currency translation adjustments— — — 2 — — 2 
Purchase of treasury stock— — — — (1)— (1)
Sale of noncontrolling interest— 46 — — — 174 220 
Noncontrolling interest— — — — — 6 6 
Dividends from noncontrolling interest— — — — — (6)(6)
Net Income attributable to Royal Caribbean Cruises Ltd.— — 1,420 — — — 1,420 
Balance at September 30, 2023$3 $7,422 $(287)$(644)$(2,069)$174 $4,599 
The accompanying notes are an integral part of these consolidated financial statements
7

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, 2023.
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 68 ships as of September 30, 2024. Our ships offer a selection of worldwide itineraries that call on more than 1,000 destinations in over 120 countries on all seven continents.
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, 2023 for a discussion of our significant accounting policies. The Company has changed its presentation from thousands to millions and, as a result, any necessary rounding adjustments have been made to prior period disclosed amounts.
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
Recent Accounting Pronouncements
In August 2023, the FASB issued ASU No. 2023-05, Business Combinations - Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement. This ASU provides guidance requiring a joint venture to initially measure all contributions received upon its formation at fair value. The guidance is intended to provide users of joint venture financial statements with more decision-useful information. This ASU is effective for joint venture entities with a formation date on or after January 1, 2025 on a prospective basis. Early adoption is permitted, and joint ventures formed prior to the adoption date may elect to apply the new guidance retrospectively back to their original formation date. We are currently evaluating the impact of the new guidance on our consolidated financial statements.
8

In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This ASU requires enhanced disclosures about significant segment expenses and other segment items and requires companies to disclose all annual disclosures about segments in interim periods. This ASU also requires public entities with a single reportable segment to provide all the disclosures required by the amendments in this ASU and all existing segment disclosures in Topic 280. The amendments in this ASU are intended to improve financial reporting by requiring disclosure of incremental segment information on an annual and interim basis for all public entities to enable investors to develop more decision-useful financial analyses. The amendments in this ASU are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted and the amendments should be applied retrospectively to all periods presented. We are currently evaluating the impact of these amendments on our disclosures, but this standard update will not impact our financial condition and results of operations.
In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The new guidance is intended to enhance the transparency and decision usefulness of income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. This ASU is effective for annual periods beginning after December 15, 2024 on a prospective basis. Early adoption and retrospective application is permitted. We are currently evaluating the impact of the new guidance on our consolidated financial statements and related disclosures.
Note 3. Revenue
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 receive payment before we satisfy this performance obligation and recognize revenue over the duration of each cruise, which generally ranges from three to 14 nights.
Passenger ticket revenues include charges to our guests for port costs that vary with passenger head counts. These types 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 $313 million and $252 million for the quarters ended September 30, 2024 and 2023, respectively, and $822 million and $682 million for the nine months ended September 30, 2024 and 2023, 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.

9

Disaggregated Revenues
The following table disaggregates our total revenues by geographic regions where we provide cruise itineraries (in millions):
Quarter Ended September 30,Nine Months Ended September 30,
2024202320242023
Revenues by itinerary
North America (1)$2,862 $2,275 $8,126 $6,621 
Asia/Pacific156 118 897 590 
Europe1,435 1,375 2,298 2,272 
Other regions (2)184 182 784 581 
Total revenues by itinerary4,637 3,950 12,105 10,064 
Other revenues (3)249 210 619 505 
Total revenues$4,886 $4,160 $12,724 $10,569 
(1)Includes the United States, Canada, Mexico and the Caribbean.
(2) Includes seasonality impacted itineraries primarily in South and Latin American countries.
(3) Includes revenues primarily related to cancellation fees, vacation protection insurance, pre- and post-cruise tours and fees for operating certain port facilities. Amounts also include revenues related to procurement and management related services we perform on behalf of our unconsolidated affiliates. Refer to Note 5. 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 and nine months ended September 30, 2024 and 2023, our guests were sourced from the following areas:
Quarter Ended September 30,
20242023
Passenger ticket revenues:
United States 74 %72 %
United Kingdom8 %10 %
All other countries (1)18 %18 %

Nine Months Ended September 30,
20242023
Passenger ticket revenues:
United States75 %74 %
All other countries (1)25 %26 %
(1)No other individual country's revenue exceeded 10% for the quarters and nine months ended September 30, 2024 and 2023.
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 $2.6 billion as of September 30, 2024 and December 31, 2023, respectively.
During the pandemic we provided flexibility to guests with bookings on sailings that were cancelled by allowing guests to receive future cruise credits (“FCCs”). As of September 30, 2024, our customer deposit balance includes approximately
10

$253 million of unredeemed FCCs. Our FCCs are not refundable and do not have expiration dates. Based upon our analysis of historical redemption experience, we believe a portion of our FCCs are not probable of being used in future periods. Based on our current estimates, we recognized an immaterial amount of FCC breakage revenue during the quarter and nine months ended September 30, 2024. We will continue to monitor changes in redemption behavior and estimate and record revenue associated with breakage when the likelihood of the customer exercising their remaining rights becomes remote.
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 processing agreements require us, under certain circumstances, to maintain a reserve that can be satisfied by posting collateral. As of September 30, 2024, none of our credit card processors required us to maintain a reserve.
We have contract assets that are conditional rights to consideration for satisfying the construction services performance obligations under a service concession arrangement. As of September 30, 2024 and December 31, 2023, our contract assets were $162 million and $167 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 $263 million as of September 30, 2024 and $257 million as of December 31, 2023. 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 Per Share
Basic and diluted earnings per share is as follows (in millions, except per share data):
Quarter Ended September 30,Nine Months Ended September 30,
 2024202320242023
Net Income attributable to Royal Caribbean Cruises Ltd. for basic earnings per share$1,111 $1,009 $2,325 $1,420 
Add convertible notes interest and inducement expense— 20 169 68 
Net Income attributable to Royal Caribbean Cruises Ltd. for diluted earnings per share1,111 1,029 2,494 1,488 
Weighted-average common shares outstanding263 256 259 256 
Dilutive effect of stock-based awards1 1 1 1 
Dilutive effect of convertible notes— 25 20 27 
Diluted weighted-average shares outstanding264 282 280 284 
Basic earnings per share$4.22 $3.94 $8.98 $5.55 
Diluted earnings per share$4.21 $3.65 $8.91 $5.24 
There were no antidilutive shares for the quarter ended September 30, 2023, and nine months ended September 30, 2024 and 2023, compared to 14,706,077 antidilutive shares from our convertible notes for the quarter ended September 30, 2024.


11

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.
In 2023, we closed on the partnership agreement with iCON Infrastructure Partners VI, L.P. ("iCON"). This partnership owns, develops, and manages 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 sold 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 September 30, 2024, the net book value of our investment in TUIC was $820 million, primarily consisting of $744 million in equity and a loan of €59 million, or approximately $66 million based on the exchange rate at September 30, 2024. As of December 31, 2023, the net book value of our investment in TUIC was $657 million, primarily consisting of $566 million in equity and a loan of €71 million, or approximately $79 million based on the exchange rate at December 31, 2023. 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 TUIC below 37.55% through May 2033. Our investment amount and outstanding term loan are substantially our maximum exposure to loss in connection with our investment in TUIC.
We 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 and account for this investment under the equity method of accounting.
In 2023, we formed a 50%-owned joint venture with the other 40% shareholder of Grand Bahama to operate Floating Docks S. DE RL. (“Floating Docks”). Floating Docks will construct two floating drydocks, with delivery dates expected in 2025 and 2026, that will be leased to Grand Bahama and allow it to service the entire range of cruise ships in operation and under construction, as well as much of the world’s commercial shipping fleet. We and our joint venture partner have each guaranteed 50% of certain installment payments payable by Floating Docks under the drydock and related construction contracts, which are contingent on the achievement of certain construction milestones, bringing our total payment guarantees to $41 million as of September 30, 2024. Our investment in Floating Docks, including loans, is immaterial to our consolidated financial statements as of September 30, 2024.
We have determined that Floating Docks is a VIE. We have determined that we are not the primary beneficiary of Floating Docks since we believe that the power to direct the activities that most significantly impact Floating Docks' economic performance is shared between ourselves and our joint venture partner. All the significant operating and financial decisions of Floating Docks require the consent of both parties which we believe creates shared power over Floating Docks. Accordingly, we do not consolidate this entity and account for this investment under the equity method of accounting.
In 2023, 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. We have determined that the partnership and both Italian
12

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 and account for these investments under the equity method of accounting.
The following tables set forth information regarding our investments accounted for under the equity method of accounting, including the entities discussed above (in millions):
Quarter Ended September 30,Nine Months Ended September 30,
2024202320242023
Share of equity income from investments$106 $87 $203 $149 
As of September 30, 2024As of December 31, 2023
Total notes receivable due from equity investments$133 $105 
Less-current portion (1)18 19 
Long-term portion (2)$115 $86 
(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 $209 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 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
In evaluating our credit loss allowance, management considered factors such as historical loss experience, the types of loans and the amount of loans in the loan portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, peer group information and prevailing economic conditions. Our credit loss allowance as of September 30, 2024 and 2023 primarily relates to credit losses recognized on notes receivable for the previous sale of certain property and equipment of $42 million and $63 million, respectively, which were originated in 2015 and 2020.
The following table summarizes our credit loss allowance related to receivables (in millions):
Nine Months Ended September 30,
20242023
Balance, beginning of period$49 $83 
Credit loss (recovery), net1 (10)
Write-offs— (3)
Balance, end of period$50 $70 
13

Note 6. Debt
Debt consists of the following (in millions):
Weighted Average Rate (1)
Maturities ThroughAs of September 30, 2024As of December 31, 2023
Fixed rate debt:
Unsecured senior notes
5.59%
2026 - 2033$9,699 $7,899 
Secured senior notes
—%
2029— 1,000 
Unsecured term loans
3.25%
2027 - 20368,024 6,569 
Convertible notes
6.00%
2025323 1,150 
Total fixed rate debt18,046 16,618 
Variable rate debt:
Unsecured revolving credit facilities (2)
6.48%
2026 - 2028210 899 
USD unsecured term loan
6.52%
2024 - 20372,522 3,666 
Euro unsecured term loan
4.95%
2028261 443 
Total variable rate debt2,993 5,008 
Finance lease liabilities350 369 
Total debt (3)
21,389 21,995 
Less: unamortized debt issuance costs(549)(543)
Total debt, net of unamortized debt issuance costs20,840 21,452 
Less—current portion (1,868)(1,720)
Long-term portion$18,972 $19,732 
(1) Weighted average interest rates are based on outstanding loan balance as of September 30, 2024, and for variable rate debt include either EURIBOR or Term SOFR plus the applicable margin.
(2) Advances under our unsecured revolving credit facilities accrue interest at Term SOFR plus a 0.10% credit adjustment spread plus an interest rate margin of 1.33%. Based on applicable Term SOFR rates, as of September 30, 2024, the interest rate under the unsecured credit facilities was 6.28%. We also pay a facility fee of 0.17% of the total commitments under such facility.
(3) At September 30, 2024 and December 31, 2023, the weighted average interest rate for total debt was 5.27% and 6.06%, respectively.
Unsecured revolving credit facilities
As of September 30, 2024 our aggregate revolving credit capacity is $3.7 billion of which $1.86 billion of the commitments are scheduled to mature in October 2026 and $1.86 billion of the commitments are scheduled to mature in October 2028. As of September 30, 2024, we had undrawn capacity of $3.5 billion under our unsecured revolving credit facilities.
Debt financing transactions
In March 2024, we issued $1.25 billion of senior unsecured notes due in 2032 for net proceeds of approximately $1.24 billion. Interest accrues on the notes at a fixed rate of 6.25% per annum and is payable semi-annually in arrears. The proceeds from this notes issuance, together with cash on hand, were used to redeem all of the outstanding $1.25 billion aggregate principal amount of 11.625% Senior Notes due 2027. The repayment resulted in a loss on extinguishment of debt of $116 million that was recognized within Interest expense, net of interest capitalized within our consolidated statements of comprehensive income (loss) for the nine months ended September 30, 2024.
In August 2024, we issued $2.0 billion of senior unsecured notes due in 2033 for net proceeds of approximately $1.98 billion. Interest accrues on the notes at a fixed rate of 6.00% per annum and is payable semi-annually in arrears. The proceeds from this notes issuance were used to redeem all of our outstanding $1.0 billion aggregate principal of 9.25% Senior Notes due 2029 and all of our outstanding $1.0 billion aggregate principal amount of 8.25% Senior secured notes due 2029. The
14

repayment resulted in a loss on extinguishment of debt of $142 million that was recognized within Interest expense, net of interest capitalized within our consolidated statements of comprehensive income (loss) for the quarter and nine months ended September 30, 2024.
In August 2024, we completed a privately negotiated exchange with a limited number of holders of the 6.00% Convertible Senior Notes due 2025. The holders exchanged approximately $827 million in aggregate principal amount for approximately 11.4 million shares of common stock and $827 million in cash, including accrued and unpaid interest. The convertible notes exchange resulted in an induced conversion expense of $119 million that was recognized within Interest expense, net of interest capitalized within our consolidated statements of comprehensive income (loss) for the quarter and nine months ended September 30, 2024.
In September 2024, we issued $1.5 billion of senior unsecured notes due in 2031 for net proceeds of approximately $1.49 billion in order to repay indebtedness. Interest accrues on the notes at a fixed rate 5.63% per annum and is a payable semi-annually in arrears. Concurrently, we redeemed all of our outstanding $700 million aggregate principal amount of our 7.25% Senior Notes due 2030. The repayment resulted in a loss on extinguishment of debt of $61 million that was recognized within Interest expense, net of interest capitalized within our consolidated statements of comprehensive income (loss) for the quarter and nine months ended September 30, 2024.
Export credit facilities and agency guarantees
In May 2024, we took delivery of Silver Ray. To finance the delivery, we borrowed $507 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 4.33% per annum.
In June 2024, we took delivery of Utopia of the Seas. To finance the delivery, we borrowed a total of $1.5 billion under the committed financing agreement, resulting in an unsecured term loan which is 100% guaranteed by BpiFrance Assurance Export. The unsecured term loan amortizes semi-annually over 12 years and bears interest primarily at a fixed rate of 3.00% per annum.
During the second quarter of 2024, we repaid $839 million of outstanding deferred amounts under our export credit facilities. These repayments included both scheduled payments and an early repayment of the amortization deferral obtained on our export credit facilities in 2020 and 2021, which resulted in an immaterial loss on extinguishment of debt that was recognized within Interest expense, net of interest capitalized within our consolidated statements of comprehensive income (loss) for the nine months ended September 30, 2024.
Except for the term loan we incurred to acquire 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 September 30, 2024, 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, and to maintain minimum liquidity. In July 2024, we amended all of our export credit facilities to eliminate the contractual requirement for us to maintain a minimum level of stockholders' equity. As of September 30, 2024, 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 September 30, 2024 for each of the next five years (in millions):
15

Year
As of September 30, 2024 (1)
Remainder of 2024$717 
20251,613 
20262,937 
20272,609 
20283,414 
Thereafter10,099 
$21,389 
(1)    Debt denominated in other currencies is calculated based on the applicable exchange rate at September 30, 2024.

Note 7. Leases
Operating Leases
Our operating leases primarily relate to preferred berthing arrangements, real estate, and shipboard equipment which are included within Operating lease right-of-use assets, and Long-term operating lease liabilities with the current portion of the liability included within Current portion of operating lease liabilities in our consolidated balance sheets as of September 30, 2024 and December 31, 2023. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet. We recognize lease expense for these leases on a straight-line basis over the lease term.
The company's preferred berthing agreement with Miami-Dade County ("County") includes the development plans for the County to finance the construction of a new and improved cruise Terminal G at PortMiami. The aggregate amount of the operating lease liabilities recorded for this berthing agreement was $167 million as of September 30, 2024 and December 31, 2023. There will be future remeasurements of the operating lease as the County completes several construction milestones throughout the term of the extended lease, including an expected remeasurement in 2027 or later, when the County satisfies substantial completion of Terminal G, as the minimum lease payments will increase at such time to approximately $55 million per year, with expected 3% annual increases thereafter.
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 primarily range from one to 10 years and the renewal periods for berthing agreements primarily 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 Silver Dawn. 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 September 30, 2024 and December 31, 2023.
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. In November 2023, we executed a modification to the Master Lease agreement to extend its expiration from 2076 to 2077 after coming to an agreement with Miami-Dade County on the financing plans to finalize the development of the buildings and land. The modification of the Master Lease did not change the classification of the lease. The total aggregate amount of the finance lease liabilities recorded for this Master Lease was $106 million and $104 million as of September 30, 2024 and December 31, 2023, respectively. The development of the new campus buildings are expected to be completed in 2026, and the lease components will be recorded within our consolidated financial statements upon commencement.
16

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. On September 26, 2024, we submitted an irrevocable notice to execute the bargain purchase option and pay in full all of the outstanding aggregate principal amount of the Silver Dawn finance lease for approximately $232 million, which is scheduled for November 25, 2024.
The aggregate amount of finance lease liabilities recorded for this ship was $232 million and $246 million as of September 30, 2024 and December 31, 2023, respectively. The lease payments on the Silver Dawn are subject to adjustments based on the Term SOFR rate.
The components of lease expense were as follows (in millions):
Consolidated Statement of Comprehensive Income (Loss) ClassificationQuarter Ended September 30, 2024Nine Months Ended September 30, 2024
Lease costs:
Operating lease costsCommission, transportation and other$38 $151 
Operating lease costsOther operating expenses4 11 
Operating lease costsMarketing, selling and administrative expenses5 14 
Financial lease costs:
Amortization of right-of-use-assetsDepreciation and amortization expenses3 10 
Interest on lease liabilitiesInterest expense, net of interest capitalized7 22 
Total lease costs$57 $208 

Consolidated Statement of Comprehensive Income (Loss) ClassificationQuarter Ended September 30, 2023Nine Months Ended September 30, 2023
Lease costs:
Operating lease costsCommission, transportation and other$33 $128 
Operating lease costsOther operating expenses6 17 
Operating lease costsMarketing, selling and administrative expenses5 16 
Financial lease costs:
Amortization of right-of-use-assetsDepreciation and amortization expenses6 17 
Interest on lease liabilitiesInterest expense, net of interest capitalized8 22 
Total lease costs$58 $200 
In addition, certain of our berthing agreements include variable lease costs based on the number of passengers berthed. During the quarter and nine months ended September 30, 2024, we had $13 million and $92 million of variable lease costs recorded within Commission, transportation and other in our consolidated statement of comprehensive income (loss), respectively, compared to $13 million and $72 million of variable lease costs recorded within Commission, transportation and other in our consolidated statement of comprehensive income (loss) during the quarter and nine months ended September 30, 2023, respectively. These variable lease costs are included within the balances presented above.
17

The weighted average of the remaining lease terms and weighted average discount rates are as follows:
As of September 30, 2024As of December 31, 2023
Weighted average of the remaining lease term in years
Operating leases18.6519.43
Finance leases24.0423.92
Weighted average discount rate
Operating leases7.28 %7.53 %
Finance leases5.86 %5.83 %
Supplemental cash flow information related to leases is as follows (in millions):
Nine Months Ended September 30, 2024Nine Months Ended September 30, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$178 $131 
Operating cash flows from finance leases$22 $22 
Financing cash flows from finance leases$19 $25 
As of September 30, 2024, maturities related to lease liabilities were as follows (in millions):
YearOperating LeasesFinance Leases
Remainder of 2024$31 $239 
2025113 15 
2026107 10 
2027104 9 
2028100 9 
Thereafter1,062 495 
Total lease payments1,517 777 
Less: Interest(801)(427)
Present value of lease liabilities$716 $350 
Note 8. Commitments and Contingencies
Ship Purchase Obligations
Our future capital commitments consist primarily of new ship orders. As of September 30, 2024, 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:
18

ShipShipyardExpected deliveryApproximate
Berths
Royal Caribbean International —
Icon-class:
Star of the SeasMeyer Turku Oy3rd Quarter 20255,600
UnnamedMeyer Turku Oy2nd Quarter 20265,600
Celebrity Cruises —
Edge-class:
Celebrity XcelChantiers de l'Atlantique4th Quarter 20253,250
TUI Cruises (50% joint venture) —
Mein Schiff RelaxFincantieri1st Quarter 20254,100
UnnamedFincantieri2nd Quarter 20264,100
Total Berths22,650
In addition, during 2024, we entered into an agreement with Meyer Turku Oy and Chantiers de l' Atlantique to build a fourth Icon class ship and a seventh Oasis class ship for delivery 2027 and 2028, respectively. Both agreements are contingent upon completion of certain conditions precedent including financing.
As of September 30, 2024, 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 $5.9 billion, of which we had deposited $619 million 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 ("Havana Docks Action") alleges it holds an interest in the Havana Cruise Port Terminal that 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 appealed the judgment to the United States Court of Appeals for the 11th Circuit. On October 22, 2024, the 11th Circuit issued an opinion that overturned the lower court’s judgment. The plaintiff has the right to petition for a rehearing by the full 11th Circuit or to appeal to the United States Supreme Court. During the fourth quarter of 2022, we recorded a charge of approximately $130.0 million to Other expense 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
19

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.
In September 2024, we entered into agreements to acquire the Port of Costa Maya and adjacent land in Mahahual, Mexico for approximately $292 million. The transaction is expected to close in the first half of 2025, subject to regulatory approval and customary closing conditions.

Note 9. Shareholders' Equity
Dividends
During the quarter ended September 30, 2024, we declared a cash dividend on our common stock of $0.40 per share, which was paid on October 11, 2024. We did not declare any dividends during the nine months ended September 30, 2023. We were previously restricted under our export credit facilities from paying dividends. During the second quarter of 2024, we repaid the principal amounts deferred under our export credit facilities, which eliminated the restriction on dividends and share repurchases. Refer to Note 6. Debt for further information on the transaction.

Note 10. Changes in Accumulated Other Comprehensive Loss
The following table presents the changes in accumulated other comprehensive loss by component for the nine months ended September 30, 2024 and 2023 (in millions):
Accumulated Other Comprehensive Loss for the Nine Months Ended September 30, 2024Accumulated Other Comprehensive Loss for the Nine Months Ended September 30, 2023
 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$(666)$(2)$(6)$(674)$(638)$(8)$3 $(643)
Other comprehensive income (loss) before reclassifications(46)3 — (43)6 4 2 12 
Amounts reclassified from accumulated other comprehensive loss(36)— — (36)(13)— — (13)
Net current-period other comprehensive income (loss)(82)3 — (79)(7)4 2 (1)
Ending balance$(748)$1 $(6)$(753)$(645)$(4)$5 $(644)

The following table presents reclassifications out of accumulated other comprehensive loss for the quarters and nine months ended September 30, 2024 and 2023 (in millions):
 Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income 
Details About Accumulated Other Comprehensive Loss ComponentsQuarter Ended September 30, 2024Quarter Ended September 30, 2023Nine Months Ended September 30, 2024Nine Months Ended September 30, 2023Affected Line Item in Statements of
Comprehensive Income (Loss)
Gain (loss) on cash flow derivative hedges:  
Interest rate swaps$11 $15 $36 $35 Interest expense, net of interest capitalized
Foreign currency forward contracts(6)(4)(17)(13)Depreciation and amortization expenses
Foreign currency forward contracts— — — (10)Other (expense) income
Fuel swaps3 16 17 1 Fuel
 $8 $27 $36 $13  
20

Note 11. Fair Value Measurements and Derivative Instruments 
Fair Value Measurements
The estimated fair value of our financial instruments that are not measured at fair value, categorized based upon the fair value hierarchy, are as follows (in millions): 
Fair Value Measurements at September 30, 2024Fair Value Measurements at December 31, 2023
DescriptionTotal Carrying AmountTotal Fair Value
Level 1(1)
Level 2(2)
Level 3(3)
Total Carrying AmountTotal Fair Value
Level 1(1)
Level 2(2)
Level 3(3)
Assets:
Cash and cash equivalents(4)
$418 $418 $418 $— $— $497 $497 $497 $— $— 
Total Assets$418 $418 $418 $— $— $497 $497 $497 $— $— 
Liabilities:
Long-term debt (including current portion of debt)(5)
$20,490 $21,968 $— $21,968 $— $21,083 $23,700 $— $23,700 $— 
Total Liabilities$20,490 $21,968 $— $21,968 $— $21,083 $23,700 $— $23,700 $— 
(1) Inputs based on quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access. Valuation of these items does not entail a significant amount of judgment.
(2) Inputs other than quoted prices included within Level 1 that are observable for the liability, either directly or indirectly. For unsecured revolving credit facilities and unsecured term loans, fair value is determined utilizing the income valuation approach. This valuation model takes into account the contract terms of our debt such as the debt maturity and the interest rate on the debt. The valuation model also takes into account the creditworthiness of the Company. We valued our senior notes and convertible notes using a quoted market price, which is considered a Level 2 input as it is observable in the market; however, these instruments have a limited trading volume and as such this fair value estimate is not necessarily indicative of the value at which the instruments could be retired or transferred.
(3) Inputs that are unobservable. The Company did not use any Level 3 inputs as of September 30, 2024 and December 31, 2023.
(4) Consists of cash and marketable securities with original maturities of less than 90 days.
(5) Consists of unsecured revolving credit facilities, senior notes, term loans and convertible notes. These amounts do not include our finance lease obligations.
Other Financial Instruments 
The carrying amounts of accounts receivable, accounts payable, accrued interest and accrued expenses approximate fair value as of September 30, 2024 and December 31, 2023.
Assets and liabilities that are recorded at fair value have been categorized based upon the fair value hierarchy. The following table presents information about the Company’s financial instruments recorded at fair value on a recurring basis (in millions):
 Fair Value Measurements at September 30, 2024Fair Value Measurements at December 31, 2023
DescriptionTotal
Level 1(1)
Level 2(2)
Level 3(3)
Total
Level 1(1)
Level 2(2)
Level 3(3)
Assets:        
Derivative financial instruments(4)
$112 $— $112 $— $144 $— $144 $— 
Total Assets$112 $— $112 $— $144 $— $144 $— 
Liabilities:        
Derivative financial instruments(4)
$88 $— $88 $— $66 $— $66 $— 
Total Liabilities$88 $— $88 $— $66 $— $66 $— 
(1)Inputs based on quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access. Valuation of these items does not entail a significant amount of judgment. No Level 1 inputs were used in fair value measurements of other financial instruments as of September 30, 2024 and December 31, 2023.
(2)Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. For foreign currency forward contracts, interest rate swaps and fuel swaps, fair value is derived using valuation models that utilize the income valuation approach. These valuation models take into account the contract terms, such as maturity, as well as other inputs, such as foreign exchange rates and curves, fuel types, fuel curves and interest rate yield curves. Derivative instrument fair values take into account the creditworthiness of the counterparty and the Company.
(3)Inputs that are unobservable. No Level 3 inputs were used in fair value measurements of other financial instruments as of September 30, 2024 and December 31, 2023.
(4)Consists of foreign currency forward contracts, interest rate and fuel swaps. Refer to the "Fair Value of Derivative Instruments" table for breakdown by instrument type.

The reported fair values are based on a variety of factors and assumptions. Accordingly, the fair values may not represent actual values of the financial instruments that could have been realized as of September 30, 2024 or December 31, 2023, or that will be realized in the future, and do not include expenses that could be incurred in an actual sale or settlement.
Nonfinancial Instruments Recorded at Fair Value on a Nonrecurring Basis
Nonfinancial instruments include items such as goodwill, indefinite-lived intangible assets, long-lived assets, right-of-use assets and equity method investments that are measured at fair value on a nonrecurring basis when events and circumstances indicate the carrying value is not recoverable. There were no material nonfinancial instruments recorded at fair value as of September 30, 2024 or December 31, 2023.
Master Netting Agreements
We have master International Swaps and Derivatives Association (“ISDA”) agreements in place with our derivative instrument counterparties. These ISDA agreements generally provide for final close out netting with our counterparties for all positions in the case of default or termination of the ISDA agreement. We have determined that our ISDA agreements provide us with rights of setoff on the fair value of derivative instruments in a gain position and those in a loss position with the same counterparty. We have elected not to offset such derivative instrument fair values in our consolidated balance sheets.
See Credit Related Contingent Features for further discussion on contingent collateral requirements for our derivative instruments.















The following table presents information about the Company’s offsetting of financial assets and liabilities under master netting agreements with derivative counterparties (in millions):

Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements
As of September 30, 2024As of December 31, 2023
Gross Amount of Derivative Assets Presented in the Consolidated Balance SheetGross Amount of Eligible Offsetting
Recognized
Derivative Liabilities		Cash Collateral
Received		Net Amount of
Derivative Assets		Gross Amount of Derivative Assets Presented in the Consolidated Balance SheetGross Amount of Eligible Offsetting
Recognized
Derivative Liabilities		Cash Collateral
Received 		Net Amount of
Derivative Assets
Derivatives subject to master netting agreements$112 $(34)$— $78 $144 $(28)$— $116 
Total$112 $(34)$— $78 $144 $(28)$— $116 
Gross Amount of Derivative Liabilities Presented in the Consolidated Balance SheetGross Amount of Eligible Offsetting
Recognized
Derivative Assets		Cash Collateral
Pledged		Net Amount of
Derivative Liabilities		Gross Amount of Derivative Liabilities Presented in the Consolidated Balance SheetGross Amount of Eligible Offsetting
Recognized
Derivative Assets		Cash Collateral
Pledged		Net Amount of
Derivative Liabilities
Derivatives subject to master netting agreements$(88)$34 $— $(54)$(66)$28 $— $(38)
Total$(88)$34 $— $(54)$(66)$28 $— $(38)

Concentrations of Credit Risk
We monitor our credit risk associated with financial and other institutions with which we conduct significant business, and to minimize these risks, we select counterparties with credit risks acceptable to us and we seek to limit our exposure to an individual counterparty. Credit risk, including, but not limited to, counterparty nonperformance under derivative instruments, our credit facilities and new ship progress payment guarantees, is not considered significant, as we primarily conduct business with large, well-established financial institutions, insurance companies and export credit agencies many of which we have long-term relationships with and which have credit risks acceptable to us or where the credit risk is spread out among a large number of counterparties. As of September 30, 2024, we had counterparty credit risk exposure under our derivative instruments of $95 million, which was limited to the cost of replacing the contracts in the event of non-performance by the counterparties to the contracts, the majority of which are currently our lending banks. We do not anticipate nonperformance by any of our significant counterparties. In addition, we have established guidelines we follow regarding credit ratings and instrument maturities to maintain safety and liquidity. We do not normally require collateral or other security to support credit relationships; however, in certain circumstances this option is available to us.
Derivative Instruments
We are exposed to market risk attributable to changes in interest rates, foreign currency exchange rates and fuel prices. We try to mitigate these risks through a combination of our normal operating and financing activities and through the use of derivative financial instruments pursuant to our hedging practices and policies. The financial impact of these hedging instruments is primarily offset by corresponding changes in the underlying exposures being hedged. We achieve this by closely matching the notional amount, term and conditions of the derivative instrument with the underlying risk being hedged. Although certain of our derivative financial instruments do not qualify or are not accounted for under hedge accounting, our objective is not to hold or issue derivative financial instruments for trading or other speculative purposes. 
We enter into various forward, swap and option contracts to manage our interest rate exposure and to limit our exposure to fluctuations in foreign currency exchange rates and fuel prices. These instruments are recorded on the balance sheet at their fair value and the vast majority are designated as hedges. We also use non-derivative financial instruments designated as hedges of our net investment in our foreign operations and investments.
At inception of the hedge relationship, a derivative instrument that hedges the exposure to changes in the fair value of a firm commitment or a recognized asset or liability is designated as a fair value hedge. A derivative instrument that hedges a forecasted transaction or the variability of cash flows related to a recognized asset or liability is designated as a cash flow hedge.
Changes in the fair value of derivatives that are designated as fair value hedges are offset against changes in the fair value of the underlying hedged assets, liabilities or firm commitments. Gains and losses on derivatives that are designated as cash flow hedges are recorded as a component of Accumulated other comprehensive loss until the underlying hedged transactions are recognized in earnings. The foreign currency transaction gain or loss of our non-derivative financial instruments and the changes in the fair value of derivatives designated as hedges of our net investment in foreign operations and investments are recognized as a component of Accumulated other comprehensive loss along with the associated foreign currency translation adjustment of the foreign operation or investment. In certain hedges of our net investment in foreign operations and investments, we exclude forward points from the assessment of hedge effectiveness and we amortize the related amounts directly into earnings.
On an ongoing basis, we assess whether derivatives used in hedging transactions are "highly effective" in offsetting changes in the fair value or cash flow of hedged items. For our net investment hedges, we use the dollar offset method to measure effectiveness. For all other hedging programs, we use the long-haul method to assess hedge effectiveness using regression analysis for each hedge relationship. The methodology for assessing hedge effectiveness is applied on a consistent basis for each one of our hedging programs (i.e., interest rate, foreign currency ship construction, foreign currency net investment and fuel). For our regression analyses, we use an observation period of up to three years, utilizing market data relevant to the hedge horizon of each hedge relationship. High effectiveness is achieved when a statistically valid relationship reflects a high degree of offset and correlation between the changes in the fair values of the derivative instrument and the hedged item. If it is determined that a derivative is not highly effective as a hedge or hedge accounting is discontinued, any change in fair value of the derivative since the last date at which it was determined to be highly effective is recognized in earnings.
Cash flows from derivative instruments that are designated as fair value or cash flow hedges are classified in the same category as the cash flows from the underlying hedged items. In the event that hedge accounting is discontinued, cash flows subsequent to the date of discontinuance are classified within investing activities. Cash flows from derivative instruments not designated as hedging instruments are classified as investing activities. 
We consider the classification of the underlying hedged item’s cash flows in determining the classification for the designated derivative instrument’s cash flows. We classify derivative instrument cash flows from hedges of benchmark interest rate or hedges of fuel expense as operating activities due to the nature of the hedged item. Likewise, we classify derivative instrument cash flows from hedges of foreign currency risk on our newbuild ship payments as investing activities.
Interest Rate Risk
Our exposure to market risk for changes in interest rates primarily relates to our debt obligations, including future interest payments. At September 30, 2024 and December 31, 2023, approximately 91.4% and 83.2%, respectively, of our debt was effectively fixed-rate debt, which is net of our interest rate swap agreements. We use interest rate swap agreements to modify our exposure to interest rate movements and to manage our interest expense.
We use interest rate swap agreements that effectively convert a portion of our floating-rate debt to a fixed-rate basis to manage the market risk of increasing interest rates. At September 30, 2024 and December 31, 2023, we maintained interest rate swap agreements on the following floating-rate debt instruments:
Debt InstrumentSwap Notional as of September 30, 2024 (in millions)Maturity
Debt Floating Rate
All-in Fixed Rate as of September 30, 2024
Celebrity Reflection term loan
$27 October 2024Term SOFR plus0.40%2.88%
Quantum of the Seas term loan
153 October 2026Term SOFR plus1.30%3.78%
Anthem of the Seas term loan
181 April 2027Term SOFR plus1.30%3.90%
Ovation of the Seas term loan
277 April 2028Term SOFR plus1.00%3.20%
Harmony of the Seas term loan (1)
258 May 2028EURIBOR plus1.15%2.26%
Odyssey of the Seas term loan (2)
326 October 2032Term SOFR plus0.96%3.28%
Odyssey of the Seas term loan (2)
163 October 2032Term SOFR plus0.96%2.91%
$1,385 
(1)Interest rate swap agreements hedging the Euro-denominated term loan for Harmony of the Seas include EURIBOR zero-floors matching the hedged debt EURIBOR zero-floor. Amount presented is based on the exchange rate as of September 30, 2024.
(2)Interest rate swap agreements hedging the term loan of Odyssey of the Seas include Term SOFR zero-floors, Term SOFR with no floors, and Overnight SOFR.
These interest rate swap agreements are accounted for as cash flow hedges.
The notional amount of interest rate swap agreements related to outstanding debt as of September 30, 2024 and December 31, 2023 was $1.4 billion and $1.6 billion, respectively.
Foreign Currency Exchange Rate Risk
Derivative Instruments
Our primary exposure to foreign currency exchange rate risk relates to our ship construction contracts denominated in Euros, our foreign currency denominated debt, and our international business operations. We enter into foreign currency forward contracts to manage portions of the exposure to movements in foreign currency exchange rates. As of September 30, 2024, the aggregate cost of our ships on order was $5.9 billion, of which we had deposited $619 million as of such date. These amounts do not include any ships placed on order that are contingent upon completion of conditions precedent and/or financing and any ships on order by our Partner Brands. Refer to Note 8. Commitments and Contingencies, for further information on our ships on order. At September 30, 2024 and December 31, 2023, approximately 39.6% and 43.5%, respectively, of the aggregate cost of the ships under construction was exposed to fluctuations in the Euro exchange rate. Our foreign currency forward contract agreements are accounted for as cash flow or net investment hedges depending on the designation of the related hedge.
On a regular basis, we enter into foreign currency forward contracts and, from time to time, we utilize cross-currency swap agreements and collar options to minimize the volatility resulting from the remeasurement of net monetary assets and liabilities denominated in a currency other than our functional currency or the functional currencies of our foreign subsidiaries. During the third quarter of 2024 and 2023 the average notional amount of foreign currency forward contracts was approximately $989 million and $1.4 billion, respectively. These instruments are not designated as hedging instruments. For the quarters and nine months ended September 30, 2024 and 2023, changes in the fair value of the foreign currency forward contracts, and the remeasurement of monetary assets and liabilities denominated in foreign currencies resulted in immaterial gain (losses). These amounts were recognized in earnings within Other expense in our consolidated statements of comprehensive income (loss).
The notional amount of outstanding foreign exchange contracts, excluding the forward contracts entered into to minimize remeasurement volatility, as of September 30, 2024 and December 31, 2023 was $2.1 billion and $2.9 billion, respectively.
Non-Derivative Instruments
We consider our investments in our foreign operations to be denominated in relatively stable currencies and to be of a long-term nature. We address the exposure of our investments in foreign operations by denominating a portion of our debt in our subsidiaries’ and investments’ functional currencies and designating it as a hedge of these subsidiaries and investments. We had designated debt as a hedge of our net investments primarily in TUI Cruises of €791 million, or approximately $883 million, as of September 30, 2024. As of December 31, 2023, we had designated debt as a hedge of our net investments primarily in TUI Cruises of €648 million, or approximately $716 million.
Fuel Price Risk
Our exposure to market risk for changes in fuel prices relates primarily to the consumption of fuel on our ships. We use fuel swap agreements to mitigate the financial impact of fluctuations in fuel prices.
Our fuel swap agreements are generally accounted for as cash flow hedges. In the case that our hedged forecasted fuel consumption is not probable of occurring, hedge accounting will be discontinued and the related accumulated other comprehensive gain or loss will be reclassified to Other income (expense) immediately. For hedged forecasted fuel consumption that remains possible of occurring, hedge accounting will be discontinued and the related accumulated other comprehensive gain or loss will remain in accumulated other comprehensive gain or loss until the underlying hedged transactions are recognized in earnings or the related hedged forecasted fuel consumption is deemed probable of not occurring.
Changes in the fair value of fuel swaps for which cash flow hedge accounting was discontinued are currently recognized in Other expense for each reporting period through the maturity dates of the fuel swaps. For the quarters ended September 30, 2024 and September 30, 2023, we did not discontinue cash flow hedge accounting on any of our fuel swap agreements.
At September 30, 2024, we have hedged the variability in future cash flows for certain forecasted fuel transactions occurring through 2027. As of September 30, 2024 and December 31, 2023, we had the following outstanding fuel swap agreements:
 Fuel Swap Agreements
 As of September 30, 2024As of December 31, 2023
Designated as hedges:(metric tons)
2024263,600 1,054,501 
20251,031,449 685,400 
2026786,750 44,200 
2027182,049 — 
 Fuel Swap Agreements
 As of September 30, 2024As of December 31, 2023
Designated hedges as a % of projected fuel purchases:(% hedged)
202461 %61 %
202560 %39 %
202644 %3 %
202710 %— %

As of September 30, 2024, there was $38 million of estimated unrealized net loss associated with our cash flow hedges pertaining to fuel swap agreements that is expected to be reclassified to earnings from Accumulated other comprehensive loss within the next twelve months when compared to $21 million of estimated unrealized net loss at December 31, 2023. Reclassification is expected to occur as the result of fuel consumption associated with our hedged forecasted fuel purchases.
The fair value and line item caption of derivative instruments recorded within our consolidated balance sheets were as follows (in millions):
Fair Value of Derivative Instruments
Asset DerivativesLiability Derivatives
Balance Sheet LocationAs of September 30, 2024As of December 31, 2023Balance Sheet LocationAs of September 30, 2024As of December 31, 2023
Fair ValueFair ValueFair ValueFair Value
Derivatives designated as hedging instruments under ASC 815-20(1)
Interest rate-swapsDerivative financial instruments$— 1 Derivative financial instruments$— $— 
Interest rate swapsOther assets46 75 Other long-term liabilities— — 
Foreign currency forward contractsDerivative financial instruments38 20 Derivative financial instruments4 9 
Foreign currency forward contractsOther assets25 44 Other long-term liabilities— 4 
Fuel swapsDerivative financial instruments2 4 Derivative financial instruments40 26 
Fuel swapsOther assets1 — Other long-term liabilities44 27 
Total derivatives designated as hedging instruments under 815-20$112 $144 $88 $66 
(1)Subtopic 815-20 “Hedging-General” under ASC 815.
The carrying value and line item caption of non-derivative instruments designated as hedging instruments recorded within our consolidated balance sheets were as follows (in millions):
Carrying Value
Non-derivative instrument designated as
hedging instrument under ASC 815-20		Balance Sheet LocationAs of September 30, 2024As of December 31, 2023
Foreign currency debtCurrent portion of long-term debt$65 $65 
Foreign currency debtLong-term debt818 523 
$883 $588 

The effect of derivative instruments qualifying and designated as cash flow hedging instruments on the consolidated financial statements was as follows (in millions):
Derivatives under ASC 815-20 Cash Flow Hedging RelationshipsAmount of Gain (Loss) Recognized in
Accumulated Other
Comprehensive Loss on Derivatives 
Quarter Ended September 30, 2024Quarter Ended September 30, 2023Nine Months Ended September 30, 2024Nine Months Ended September 30, 2023
Interest rate swaps$(20)$23 $8 $35 
Foreign currency forward contracts67 (134)(36)(120)
Fuel swaps(133)158 (18)91 
 $(86)$47 $(46)$6 

The effect of non-derivative instruments qualifying and designated as net investment hedging instruments on the consolidated financial statements was as follows (in millions):
Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss)
Non-derivative instruments under ASC 815-20 Net
Investment Hedging Relationships		Quarter Ended September 30, 2024Quarter Ended September 30, 2023Nine Months Ended September 30, 2024Nine Months Ended September 30, 2023
Foreign Currency Debt$(35)$18 $(13)$7 
 $(35)$18 $(13)$7 
The effect of derivatives not designated as hedging instruments on the consolidated financial statements was as follows (in millions):

  
Amount of (Loss) Gain Recognized in Income on Derivatives
Derivatives Not Designated as Hedging
Instruments under ASC 815-20		Location of
Gain (Loss) Recognized in
Income on Derivatives		Quarter Ended September 30, 2024Quarter Ended September 30, 2023Nine Months Ended September 30, 2024Nine Months Ended September 30, 2023
Foreign currency forward contractsOther income (expense)$33 $(43)$(8)$(30)
Fuel swapsOther income (expense)— 1 — 1 
  $33 $(42)$(8)$(29)

Credit Related Contingent Features
Our current interest rate derivative instruments require us to post collateral if our Standard & Poor’s and Moody’s credit ratings fall below specified levels. Specifically, under most of our agreements, if on the fifth anniversary of executing a derivative instrument, or on any succeeding fifth-year anniversary, our credit ratings for our senior unsecured debt is rated below BBB- by Standard & Poor’s and Baa3
by Moody’s, then the counterparty will periodically have the right to demand that we post collateral in an amount equal to the difference between (i) the net market value of all derivative transactions with such counterparty that have reached their fifth year anniversary, to the extent negative, and (ii) the applicable minimum call amount.
The amount of collateral required to be posted will change as, and to the extent, our net liability position increases or decreases by more than the applicable minimum call amount. If our credit rating for our senior unsecured debt is subsequently equal to or above BBB- by Standard & Poor’s or Baa3 by Moody’s, then any collateral posted at such time will be released to us and we will no longer be required to post collateral unless we meet the collateral trigger requirement, generally, at the next fifth-year anniversary.
As of September 30, 2024, our senior unsecured debt credit rating was BB+ by Standard & Poor's and Ba2 by Moody's. As of September 30, 2024, six of our ship debt interest rate derivative hedges had reached their fifth-year anniversary; however, the net market value for these derivative hedges were in a net asset position, and accordingly, we were not required to post any collateral as of such date.
21

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 
Cautionary Note Concerning Forward-Looking Statements
The discussion under this caption "Management's Discussion and Analysis of Financial Condition and Results of Operations" and elsewhere in this Quarterly Report on Form 10-Q includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including statements regarding our expectations for future periods, business and industry prospects or future results of operations or financial position, made in this Quarterly Report on Form 10-Q are forward-looking. Words such as "anticipate," "believe," "considering," "could," "driving," "estimate," "expect," "goal," "intend," "may," "plan," "project," "seek," "should," "will," "would," and similar expressions are intended to further identify any of these forward-looking statements. Forward-looking statements reflect management's current expectations, but they are based on judgments and are inherently uncertain. Furthermore, they are subject to risks, uncertainties and other factors that could cause our actual results, performance or achievements to differ materially from the future results, performance or achievements expressed or implied in those forward-looking statements. Examples of these risks, uncertainties and other factors include, but are not limited to, those discussed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and, in particular, the risks discussed under the caption "Risk Factors" in Part I, Item 1A therein.
All forward-looking statements made in this Quarterly Report on Form 10-Q speak only as of the date of this filing. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Overview
The discussion and analysis of our financial condition and results of operations is organized to present the following:
•a review of our financial presentation, including discussion of certain operational and financial metrics we utilize to assist us in managing our business;
•a discussion of our results of operations for the quarter and nine months ended September 30, 2024, compared to the same period in 2023; and
•a discussion of our liquidity and capital resources, including our future capital and material cash requirements and potential funding sources. 
22

Critical Accounting Policies and Estimates
For a discussion of our critical accounting policies and estimates, refer to Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations within our Annual Report on Form 10-K for the year ended December 31, 2023.
Seasonality
Our revenues are seasonal based on demand for cruises. Demand has historically been strongest for cruises during the Northern Hemisphere’s summer months and holidays. In order to mitigate the impact of the winter weather in the Northern Hemisphere and to capitalize on the summer season in the Southern Hemisphere, our brands have historically focused on deployment to the Caribbean, Asia and Australia during that period.
Financial Presentation
Description of Certain Line Items
Revenues
Our revenues are comprised of the following:
•Passenger ticket revenues, which consist of revenue recognized from the sale of passenger tickets and the sale of air transportation to and from our ships; and
•Onboard and other revenues, which consist primarily of revenues from the sale of goods and/or services onboard our ships not included in passenger ticket prices, casino operations, cancellation fees, sales of vacation protection insurance, pre- and post-cruise tours and fees for operating certain port facilities. Onboard and other revenues also include revenues we receive from independent third-party concessionaires that pay us a percentage of their revenues in exchange for the right to provide selected goods and/or services onboard our ships, as well as revenues received for procurement and management related services we perform on behalf of our unconsolidated affiliates. 
Cruise Operating Expenses 
Our cruise operating expenses are comprised of the following:
•Commissions, transportation and other expenses, which consist of those costs directly associated with passenger ticket revenues, including travel advisor commissions, air and other transportation expenses, port costs that vary with passenger head counts and related credit card fees;
•Onboard and other expenses, which consist of the direct costs associated with onboard and other revenues, including the costs of products sold onboard our ships, vacation protection insurance premiums, costs associated with pre- and post-cruise tours and related credit card fees, as well as the minimal costs associated with concession revenues, as the costs are mostly incurred by third-party concessionaires, and costs incurred for the procurement and management related services we perform on behalf of our unconsolidated affiliates;
•Payroll and related expenses, which consist of costs for shipboard personnel (costs associated with our shoreside personnel are included in Marketing, selling and administrative expenses);
•Food expenses, which include food costs for both guests and crew;
•Fuel expenses, which include fuel and related delivery, storage and emission consumable costs and the financial impact of fuel swap agreements; and
•Other operating expenses, which consist primarily of operating costs such as repairs and maintenance, port costs that do not vary with passenger head counts, vessel related insurance, entertainment and gains and/or losses related to the sale of our ships, if any.
We do not allocate payroll and related expenses, food expenses, fuel expenses or other operating expenses to the expense categories attributable to passenger ticket revenues or onboard and other revenues since they are incurred to provide the total cruise vacation experience.


23

Selected Operational and Financial Metrics
We utilize a variety of operational and financial metrics which are defined below to evaluate our performance and financial condition. As discussed in more detail herein, certain of these metrics are non-GAAP financial measures. These non-GAAP financial measures are provided along with the related GAAP financial measures as we believe they provide useful information to investors as a supplement to our consolidated financial statements, which are prepared and presented in accordance with GAAP. The presentation of non-GAAP financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
Adjusted EBITDA is a non-GAAP measure that represents EBITDA (as defined below) excluding certain items that we believe adjusting for is meaningful when assessing our profitability on a comparative basis. For the periods presented, these items included (i) other expense (income); (ii) gain on sale of controlling interest; (iii) equity investment impairment and recovery losses; (iv) restructuring charges and other initiative expenses, and (v) impairment and credit losses (recoveries). A reconciliation of Net Income (Loss) attributable to Royal Caribbean Cruises Ltd. to Adjusted EBITDA is provided below under Results of Operations.
Adjusted Earnings per Share ("Adjusted EPS") is a non-GAAP measure that represents Adjusted Net Income attributable to Royal Caribbean Cruises Ltd. (as defined below) divided by weighted average shares outstanding or by diluted weighted average shares outstanding, as applicable. We believe that this non-GAAP measure is meaningful when assessing our performance on a comparative basis.
Adjusted Net Income attributable to Royal Caribbean Cruises Ltd. is a non-GAAP measure that represents Net Income attributable to Royal Caribbean Cruises Ltd. excluding certain items that we believe adjusting for is meaningful when assessing our performance on a comparative basis. For the periods presented, these items included (i) loss on extinguishment of debt and inducement expense; (ii) the amortization of the Silversea Cruises intangible assets resulting from the Silversea Cruises acquisition; (iii) gain on sale of controlling interest; (iv) tax on the sale of PortMiami noncontrolling interest; (v) Silver Whisper deferred tax liability release; (vi) restructuring charges and other initiative expenses; (vii) equity investment impairment and recovery losses; and (viii) impairment and credit losses (recoveries). A reconciliation of Net Income attributable to Royal Caribbean Cruises Ltd. to Adjusted Net Income attributable to Royal Caribbean Cruises Ltd. is provided below under Results of Operations.
Available Passenger Cruise Days (“APCD”) is our measurement of capacity and represents double occupancy per cabin multiplied by the number of cruise days for the period, which excludes canceled cruise days and cabins not available for sale. We use this measure to perform capacity and rate analysis to identify our main non-capacity drivers that cause our cruise revenue and expenses to vary.
EBITDA is a non-GAAP measure that represents Net Income attributable to Royal Caribbean Cruises Ltd. excluding (i) interest income; (ii) interest expense, net of interest capitalized; (iii) depreciation and amortization expenses; and (iv) income tax expense. We believe that this non-GAAP measure is meaningful when assessing our operating performance on a comparative basis. A reconciliation of Net Income attributable to Royal Caribbean Cruises Ltd. to EBITDA is provided below under Results of Operations.
Gross Cruise Costs represent the sum of total cruise operating expenses plus marketing, selling and administrative expenses.
Net Cruise Costs and Net Cruise Costs Excluding Fuel are non-GAAP measures that represent Gross Cruise Costs excluding commissions, transportation and other expenses, and onboard and other expenses and, in the case of Net Cruise Costs Excluding Fuel, fuel expenses (each of which is described above under the Description of Certain Line Items heading). In measuring our ability to control costs in a manner that positively impacts net income, we believe changes in Net Cruise Costs and Net Cruise Costs Excluding Fuel to be the most relevant indicators of our performance. A reconciliation of Gross Cruise Costs to Net Cruise Costs and Net Cruise Costs Excluding Fuel is provided below under Results of Operations. For the periods presented, Net Cruise Costs and Net Cruise Costs Excluding Fuel excludes (i) the gain on sale of controlling interest; (ii) impairment and credit losses (recoveries); and (iii) restructuring and other initiative expenses.
Gross Margin Yield represent Gross Margin per APCD.
Adjusted Gross Margin represent Gross Margin, adjusted for payroll and related, food, fuel, other operating expenses, and depreciation and amortization. Gross Margin is calculated pursuant to GAAP as total revenues less total cruise operating expenses, and depreciation and amortization.
Net Yields represent Adjusted Gross Margin per APCD. We utilize Adjusted Gross Margin and Net Yields to manage our business on a day-to-day basis as we believe that they are the most relevant measures of our pricing performance because they
24

reflect the cruise revenues earned by us net of our most significant variable costs, which are commissions, transportation and other expenses, and onboard and other expenses.
Occupancy ("Load Factor"), in accordance with cruise vacation industry practice, is calculated by dividing Passenger Cruise Days (as defined below) by APCD. A percentage in excess of 100% indicates that three or more passengers occupied some cabins.
Passenger Cruise Days represent the number of passengers carried for the period multiplied by the number of days of their respective cruises.
The use of certain significant non-GAAP measures, such as Net Yields, Net Cruise Costs and Net Cruise Costs Excluding Fuel, allows us to perform capacity and rate analysis to separate the impact of known capacity changes from other less predictable changes which affect our business. We believe these non-GAAP measures provide expanded insight to measure revenue and cost performance in addition to the standard GAAP based financial measures. There are no specific rules or regulations for determining non-GAAP measures, and as such, they may not be comparable to other companies within the industry.
Results of Operations
Summary
Net Income attributable to Royal Caribbean Cruises Ltd. and Adjusted Net Income attributable to Royal Caribbean Cruises Ltd. for the third quarter of 2024 was $1.1 billion and $1.4 billion, compared to Net Income and Adjusted Net Income of $1.0 billion and $1.1 billion, respectively, for the third quarter of 2023.
Net Income attributable to Royal Caribbean Cruises Ltd. and Adjusted Net Income attributable to Royal Caribbean Cruises Ltd. for the nine months ended September 30, 2024 was $2.3 billion and $2.8 billion, compared to Net Income and Adjusted Net Income of $1.4 billion and $1.5 billion, respectively, for the nine months ended September 30, 2023
Significant items for the quarter and nine months ended September 30, 2024 include:
•Total revenues, increased $726 million and $2.2 billion for the quarter and nine months ended September 30, 2024 as compared to the same period in 2023. The increase was primarily due to an increase in capacity, ticket prices and onboard spending in 2024, compared to same periods in 2023.
•Total cruise operating expenses, increased $254 million and $715 million for the quarter and nine months ended September 30, 2024 as compared to the same period in 2023. The increase was primarily due to an increase in capacity in 2024 compared to the same period in 2023.
•In March 2024, we issued $1.25 billion aggregate principal amount of 6.25% senior notes due 2032. Upon closing, we redeemed all of the outstanding $1.25 billion aggregate principal amount of 11.63% Senior Notes Due 2027.
•During the second quarter of 2024, we repaid $839 million of outstanding deferred amounts under our export credit facilities.
•In May 2024, we took delivery of Silver Ray. Refer to Note 6. Debt to our consolidated financial statements for further information on the financing of the ship
•In June 2024, we took delivery of Utopia of the Seas. Refer to Note 6. Debt to our consolidated financial statements for further information on the financing of the ship.
•In June 2024, TUI Cruises, our 50% joint venture, took delivery of Mein Schiff 7.
•In August 2024, we issued $2.0 billion aggregate principal amount of 6.00% senior notes due 2033. Upon closing, we redeemed all of the outstanding $1.0 billion aggregate principal amount of 9.25% Senior Notes Due 2029, and all of the outstanding $1.0 billion aggregate principal amount of 8.25% Senior Secured Notes Due 2029.
•In August 2024, we completed privately negotiated exchange with certain holders of 6.00% Convertible Senior Notes due 2025 to exchange approximately $827 million in aggregate principal amount for approximately 11.4 million shares of common stock and $827 million in cash.
•In September 2024, we issued $1.5 billion aggregate principal amount of 5.63% senior unsecured notes due 2031. Upon closing, we redeemed of the outstanding $700 million aggregate principal amount of 7.25% Senior Notes Due 2030.
25


•In September 2024, we submitted an irrevocable notice to execute the bargain purchase option on the Silver Dawn finance lease for approximately $232 million.
•In September 2024, we entered into agreements to acquire the Port of Costa Maya and adjacent land in Mahahual, Mexico for approximately $292 million. The transaction is expected to close in the first half of 2025, subject to regulatory approval and customary closing conditions.
For further information regarding the debt transactions discussed above, refer to Note 6. Debt, Note 7. Leases, and Note 8. Commitments and Contingencies, respectively, to our consolidated financial statements.
Operating results for the quarter and nine months ended September 30, 2024 compared to the same periods in 2023 are shown in the following tables (in millions, except per share data):
 Quarter Ended September 30,
 20242023
% of Total
Revenues		% of Total
Revenues
Passenger ticket revenues$3,471 71.0 %$2,941 70.7 %
Onboard and other revenues1,415 29.0 %1,219 29.3 %
Total revenues4,886 100.0 %4,160 100.0 %
Cruise operating expenses:
Commissions, transportation and other688 14.1 %632 15.2 %
Onboard and other289 5.9 %261 6.3 %
Payroll and related328 6.7 %294 7.1 %
Food251 5.1 %212 5.1 %
Fuel290 5.9 %272 6.5 %
Other operating545 11.2 %466 11.2 %
Total cruise operating expenses2,391 48.9 %2,137 51.4 %
Marketing, selling and administrative expenses451 9.2 %393 9.4 %
Depreciation and amortization expenses410 8.4 %365 8.8 %
Operating Income1,634 33.4 %1,265 30.4 %
Other income (expense):
Interest income4 0.1 %7 0.2 %
Interest expense, net of interest capitalized(603)(12.3)%(340)(8.2)%
Equity investment income106 2.2 %87 2.1 %
Other expense(26)(0.5)%(8)(0.2)%
(519)(10.6)%(254)(6.1)%
Net Income1,115 22.8 %1,011 24.3 %
Less: Net Income attributable to noncontrolling interest4 0.1 %2 — %
Net Income attributable to Royal Caribbean Cruises Ltd.$1,111 22.7 %$1,009 24.3 %
Diluted Earnings per Share$4.21 $3.65 


26


Nine Months Ended September 30,
20242023
% of Total
Revenues		% of Total
Revenues
Passenger ticket revenues$8,900 69.9 %$7,282 68.9 %
Onboard and other revenues3,824 30.1 %3,287 31.1 %
Total revenues12,724 100.0 %10,569 100.0 %
Cruise operating expenses:
Commissions, transportation and other1,758 13.8 %1,551 14.7 %
Onboard and other726 5.7 %640 6.1 %
Payroll and related959 7.5 %888 8.4 %
Food697 5.5 %614 5.8 %
Fuel876 6.9 %850 8.0 %
Other operating1,584 12.4 %1,342 12.7 %
Total cruise operating expenses6,600 51.9 %5,885 55.7 %
Marketing, selling and administrative expenses1,452 11.4 %1,289 12.2 %
Depreciation and amortization expenses1,190 9.4 %1,087 10.3 %
Operating Income 3,482 27.4 %2,308 21.8 %
Other income (expense):
Interest income13 0.1 %32 0.3 %
Interest expense, net of interest capitalized(1,324)(10.4)%(1,055)(10.0)%
Equity investment income203 1.6 %149 1.4 %
Other expense(37)(0.3)%(9)(0.1)%
(1,145)(9.0)%(883)(8.4)%
Net Income2,337 18.4 %1,425 13.5 %
Less: Net Income attributable to noncontrolling interest12 0.1 %5 — %
Net Income attributable to Royal Caribbean Cruises Ltd.$2,325 18.3 %$1,420 13.4 %
Diluted Earnings per Share$8.91 $5.24 




27


Net Income attributable to Royal Caribbean Cruises Ltd. and Adjusted Net Income attributable to Royal Caribbean Cruises Ltd, were calculated as follows (in millions, except per share data):
 Quarter Ended September 30,Nine Months Ended September 30,
 2024202320242023
Net Income attributable to Royal Caribbean Cruises Ltd.$1,111 $1,009 $2,325 $1,420 
Loss on extinguishment of debt and inducement expense (1)323 38 456 81 
Amortization of Silversea Cruises intangible assets resulting from the Silversea Cruises acquisition (2)2 2 5 5 
Gain on sale of controlling interest (3)— — — (3)
PortMiami tax on sale of noncontrolling interest (4)(3)— (3)10 
Silver Whisper deferred tax liability release (5)— — — (26)
Restructuring charges and other initiative expenses2 — 5 5 
Equity investments impairment and recovery of losses— 17 — 12 
Impairment and credit losses (recoveries) (6)— — 6 (7)
Adjusted Net Income attributable to Royal Caribbean Cruises Ltd.$1,435 $1,066 $2,794 $1,497 
Basic:  
Earnings per Share $4.22 $3.94 $8.98 $5.55 
Adjusted Earnings per Share $5.46 $4.16 $10.79 $5.86 
Diluted:
Earnings per Share (7)$4.21 $3.65 $8.91 $5.24 
Adjusted Earnings per Share (8) (9)$5.20 $3.85 $10.16 $5.52 
Weighted-Average Shares Outstanding:
Basic263 256 259 256 
Diluted264 282 280 284 
(1)For 2024, includes $119 million of inducement expense related to the partial settlement of our 6.00% convertible notes due 2025. Refer to Note 6. Debt to our consolidated financial statements for further information.
(2)Represents the amortization of the Silversea Cruises intangible assets resulting from the 2018 Silversea Cruises acquisition.
(3)For 2023, represents gain on sale of controlling interest in cruise terminal facilities in Italy. These amounts are included in Other operating within our consolidated statements of comprehensive income (loss).
(4)For 2024, represents adjustments to tax impacts on the 2023 PortMiami sale of noncontrolling interest. For 2023, represents tax on the PortMiami sale of noncontrolling interest. These amounts are included in Other expense in our consolidated statements of comprehensive income (loss).
(5)For 2023, represents the release of the deferred tax liability subsequent to the execution of the bargain purchase option for the Silver Whisper. These amounts are included in Other (expense) income within our consolidated statements of comprehensive income (loss).
(6)For 2024, represents property and equipment impairment charges related to certain construction in progress assets which we determined would no longer be completed. For 2023, represents asset impairments and credit losses recoveries for notes receivables for which credit losses were previously recorded. These amounts are included in Other operating within our consolidated statements of comprehensive income (loss).
(7)Diluted EPS includes the add-back of dilutive inducement and interest expense related to our convertible notes of $169 million for the nine months ended September 30, 2024, and $20 million and $68 million for the quarter and nine months ended September 30, 2023, respectively. For the quarter ended September 30, 2024 the impact of our convertible notes was anti-dilutive. Refer to Note 4. Earnings Per Share to our consolidated financial statements for further information.
28


(8)Adjusted Diluted EPS includes the add-back of dilutive interest expense related to our convertible notes of $13 million and $51 million, and $20 million and $68 million for the quarter nine months ended September 30, 2024 and 2023, respectively.
(9)Weighted-Average Shares Outstanding - Diluted - for the quarter ended September 30, 2024, includes the add-back of 14.7 million shares that are anti-dilutive for diluted EPS purposes, but included for adjusted diluted EPS.

Selected statistical information is shown in the following table:
 Quarter Ended September 30,Nine Months Ended September 30,
 2024202320242023
Passengers Carried2,310,220 1,999,764 6,404,844 5,706,843 
Passenger Cruise Days14,785,828 13,172,002 41,165,985 36,944,034 
APCD13,316,981 12,011,593 37,836,007 34,953,919 
Occupancy111.0 %109.7 %108.8 %105.7 %

EBITDA and Adjusted EBITDA were calculated as follows (in millions):
Quarter Ended September 30,Nine Months Ended September 30,
2024202320242023
Net Income attributable to Royal Caribbean Cruises Ltd.$1,111 $1,009 $2,325 $1,420 
Interest income(4)(7)(13)(32)
Interest expense, net of interest capitalized603 340 1,324 1,055 
Depreciation and amortization expenses410 365 1,190 1,087 
Income tax expense (1)23 7 46 6 
EBITDA2,143 1,714 4,872 3,536 
Other expense (income) (2)3 1 (9)3 
Gain on sale of controlling interest (3)— — — (3)
Equity investment impairment and recovery losses— 13 — 8 
Restructuring charges and other initiative expenses2 — 5 5 
Impairment and credit losses (recoveries) (4)— — 6 (7)
Adjusted EBITDA$2,148 $1,728 $4,874 $3,542 
(1)These amounts are included in Other (expense) income within our consolidated statements of comprehensive income (loss).
(2)Represents net non-operating expense. The amount excludes income tax expense, included in the EBITDA calculation above.
(3)For 2023, represents gain on sale of controlling interest in cruise terminal facilities in Italy. These amounts are included in Other operating within our consolidated statements of comprehensive income (loss).
(4)For 2024, represents property and equipment impairment charges related to certain construction in progress assets. For 2023, represents asset impairments and credit losses recoveries for notes receivables for which credit losses were previously recorded. These amounts are included in Other operating within our consolidated statements of comprehensive income (loss).

29


Gross Margin Yields and Net Yields were calculated by dividing Gross Margin and Adjusted Gross Margin by APCD as follows (in millions, except APCD and Yields):
Quarter Ended September 30,Nine Months Ended September 30,
2024202320242023
Total revenue$4,886 $4,160 $12,724 $10,569 
Less:
Cruise operating expenses2,391 2,137 6,600 5,885 
Depreciation and amortization expenses410 365 1,190 1,087 
Gross Margin2,085 1,658 4,934 3,597 
Add:
Payroll and related328 294 959 888 
Food251 212 697 614 
Fuel290 272 876 850 
Other operating545 466 1,584 1,342 
Depreciation and amortization expenses410 365 1,190 1,087 
Adjusted Gross Margin$3,909 $3,267 $10,240 $8,378 
APCD13,316,981 12,011,593 37,836,007 34,953,919 
Gross Margin Yields$156.52 $138.04 $130.39 $102.91 
Net Yields$293.46 $272.00 $270.63 $239.67 


30


Gross Cruise Costs, Net Cruise Costs and Net Cruise Costs Excluding Fuel were calculated as follows (in millions, except APCD and costs per APCD):
Quarter Ended September 30,Nine Months Ended September 30,
2024202320242023
Total cruise operating expenses$2,391 $2,137 $6,600 $5,885 
Marketing, selling and administrative expenses451 393 1,452 1,289 
Gross Cruise Costs2,842 2,530 8,052 7,174 
Less:
Commissions, transportation and other688 632 1,758 1,551 
Onboard and other289 261 726 640 
Net Cruise Costs Including Other Costs1,865 1,637 5,568 4,983 
Less:
Gain on sale of controlling interest (1)— — — (3)
Impairment and credit loss (recoveries) (2)— — 6 (7)
Restructuring charges and other initiative expenses (3)2 — 5 5 
Net Cruise Costs1,863 1,637 5,557 4,988 
Less:
Fuel290 272 876 850 
Net Cruise Costs Excluding Fuel$1,573 $1,365 $4,681 $4,138 
APCD13,316,981 12,011,593 37,836,007 34,953,919 
Gross Cruise Costs per APCD$213.42 $210.62 $212.82 $205.22 
Net Cruise Costs per APCD$139.87 $136.25 $146.88 $142.67 
Net Cruise Costs Excluding Fuel per APCD$118.12 $113.57 $123.73 $118.36 
(1)Represents gain on sale of controlling interest in cruise terminal facilities in Italy. These amounts are included in Other operating within our consolidated statements of comprehensive income (loss).
(2)For 2024, represents property and equipment impairment charges related to certain construction in progress assets. For 2023, represents asset impairments and credit losses recoveries for notes receivables for which credit losses were previously recorded. These amounts are included in Other operating within our consolidated statements of comprehensive income (loss).
(3)These amounts are included in Marketing, selling and administrative expenses within our consolidated statements of comprehensive income (loss).



31


Quarter Ended September 30, 2024 Compared to Quarter Ended September 30, 2023
In this section, references to 2024 refer to the quarter ended September 30, 2024 and references to 2023 refer to the quarter ended September 30, 2023.
Revenues
Total revenues for 2024 increased $726 million to $4.9 billion from $4.2 billion in 2023.
Passenger ticket revenues comprised 71% of our 2024 total revenues. Passenger ticket revenues for 2024 increased by $530 million, or 18.0% to $3.5 billion from $2.9 billion in 2023. The increase was primarily due to:
•a $320 million driven by an increase in capacity of 10.9% due to the additions of Utopia of the Seas, Icon of the Seas, Celebrity Ascent, and Silver Ray compared to the addition of Silver Nova during the same period in 2023; and
•a $210 million increase driven by higher load factors and ticket prices on a per passenger basis on existing ships as well as the benefit of new ships, compared to the same period in 2023.
The remaining 29% of 2024 total revenues was comprised of Onboard and other revenues, which increased $196 million, or 16.1% to $1.4 billion in 2024 from $1.2 billion in 2023. The increase was primarily due to:
•$132 million driven by increased capacity noted above due to the addition of new ships; and
•$63 million primarily driven by improved pricing and an increase in load factors in 2024 compared to the same period in 2023.
Cruise Operating Expenses
Total Cruise operating expenses for 2024 increased $254 million to $2.4 billion from $2.1 billion in 2023. The increase was primarily due to the 10.9% increase in capacity noted above which increased cruise operating expenses by $232 million in 2024 compared to the same period in 2023.
Marketing, Selling and Administrative Expenses
Marketing, selling and administrative expenses for 2024 increased $58 million, or 14.8%, to $451 million from $393 million in 2023. The increase was primarily due to an increase in payroll and benefits expense driven by an increase in headcount and higher stock price related to our performance share awards in 2024 compared to the same period in 2023, and higher spending on advertisement and media promotions.
Other Income (Expense)
Interest expense, net of interest capitalized for 2024 increased $263 million, to $603 million from $340 million in 2023. The increase was primarily due to loss on extinguishment of debt of $204 million associated with the full redemption of our 9.25%, 8.25%, and 7.25% Senior Notes, and $119 million inducement expense on the partial settlement of our 2025 Convertible notes in 2024 compared to loss on extinguishment of debt of $38 million during the same period in 2023. The increase was partially offset by a decrease of $42 million lower interest expense in 2024 compared to the same period in 2023, resulting from the 2024 refinancings.
Other Comprehensive (loss) income
Other comprehensive loss was $(99) million in 2024 compared to Other comprehensive income of $36 million for the same period in 2023. The decrease of $(135) million was primarily due to a Loss on cash flow derivative hedges in 2024 of $95 million compared to a Gain on cash flow derivative hedges in 2023 of $20 million, mostly as a result of a significant decrease in the fair value of our fuel swaps in 2024 compared to 2023.
32


Nine Months Ended September 30, 2024 Compared to Nine Months Ended September 30, 2023
In this section, references to 2024 refer to the nine months ended September 30, 2024 and references to 2023 refer to the nine months ended September 30, 2023.
Revenues
Total revenues for 2024 increased $2.2 billion to $12.7 billion from $10.6 billion in 2023.
Passenger ticket revenues comprised 70% of our 2024 total revenues. Passenger ticket revenues for 2024 increased by $1.6 billion, or 22% to $8.9 billion from $7.3 billion in 2023. The increase was primarily due to:
•an increase of $1 billion driven by increases in ticket prices on a per passenger basis on existing ships as well as the benefit of new ships, compared to the same period in 2023; and
•an 8.2% increase in capacity, which increased Passenger ticket revenues by $600 million, primarily due to the additions of Utopia of the Seas, Icon of the Seas, Celebrity Ascent, and Silver Ray compared to the addition of Silver Nova during the same period in 2023.
The remaining 30% of 2024 total revenues was comprised of Onboard and other revenues, which increased $537 million, or 16.3% to $3.8 billion in 2024 from $3.3 billion in 2023. The increase was primarily due to:
•a $271 million increase driven by an 8.2% increase in capacity due to the additions of new ships noted above in 2024 compared to the same period in 2023; and
•a $186 million increase driven by improved pricing and an increase in load factors of 3.1% in 2024 compared to the same period in 2023.
Cruise Operating Expenses
Total Cruise operating expenses for 2024 increased $715 million to $6.6 billion from $5.9 billion in 2023. The increase was primarily due to:
•the 8.2% increase in capacity noted above increased cruise operating expenses by $485 million; and
•an increase of $190 million driven by various factors including an increase in higher drydock and maintenance related expenses; and commissions due to the increases in ticket prices noted above in 2024 compared to the same period in 2023.
Marketing, Selling and Administrative Expenses
Marketing, selling and administrative expenses for 2024 increased $163 million, or 13%, to $1.5 billion from $1.3 billion in 2023. The increase was primarily due to an increase in payroll and benefits expense driven by an increase in headcount and higher stock price related to our performance share awards in 2024 compared to the same period in 2023, and higher spending on advertisement and media promotions.
Other Income (Expense)
Interest expense, net of interest capitalized for 2024 increased $269 million, to $1.3 billion from $1.1 billion in 2023. The increase was primarily due to loss on extinguishment of debt of $337 million associated with the full redemption of our 11.63%, 9.25%, 8.25%, and 7.25% Senior Notes, and $119 million inducement expense on the partial settlement of our 2025 Convertible notes in 2024 compared to loss on extinguishment of debt of $81 million during the same period in 2023. The increase was partially offset by a decrease of $147 million lower interest expense in 2024 compared to the same period in 2023, resulting from the 2024 refinancings.
Depreciation and Amortization Expenses 
Depreciation and amortization expenses for 2024 increased $103 million, or 9.5%, to $1.2 billion from $1.1 billion in 2023. The increase was primarily due to the additions of Utopia of the Seas, Icon of the Seas, Celebrity Ascent, and Silver Ray compared to the addition of Silver Nova during the same period in 2023.
33


Other Comprehensive (loss) income
Other comprehensive loss was $(79) million in 2024 compared to Other comprehensive loss of $(1) million for the same period in 2023. The increase of $(78) million, was primarily due to a Loss on cash flow derivative hedges in 2024 of $(82) million compared to a Loss on cash flow derivative hedges in 2023 of $(7) million, mostly as a result of a significant decrease in fair value of our fuel swaps in 2024 compared to 2023.
34


Future Application of Accounting Standards
Refer to Note 2. Summary of Significant Accounting Policies to our consolidated financial statements.
Liquidity and Capital Resources
Sources and Uses of Cash
Cash flow generated from operations provides us with a significant source of liquidity. Net cash provided by operating activities was $3.8 billion and $3.4 billion for the nine months ended September 30, 2024, and 2023, respectively. Cash flows from operating activities increased $0.4 billion primarily driven by an increase in operating income.
Net cash used in investing activities was $2.8 billion for the nine months ended September 30, 2024, compared to $1.3 billion for the same period in 2023. Cash flows used in investing activities were primarily attributable by an increase in capital expenditures of $1.4 billion during 2024, compared to the same period in 2023 due to the delivery of Utopia of the Seas and Silver Ray in 2024, compared to the delivery of Silver Nova during the same period in 2023.
Net cash used in financing activities was $1.1 billion for the nine months ended September 30, 2024, compared to $3.3 billion for the same period in 2023. The change of $2.3 billion was primarily attributable to repayments of debt of $10.0 billion, offset by debt proceeds of $9.4 billion in 2024 compared to repayments of debt of $5.3 billion, offset by debt proceeds of $1.8 billion in 2023. Additionally, during 2023, we received proceeds of $209 million for the sale of noncontrolling interest of PortMiami, which did not recur in 2024.
Future Capital Commitments
Capital Expenditures
Our future capital commitments consist primarily of new ship orders. As of September 30, 2024, 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 —  
Icon-class:
Star of the SeasMeyer Turku Oy3rd Quarter 20255,600
UnnamedMeyer Turku Oy2nd Quarter 20265,600
Celebrity Cruises —
Edge-class:
Celebrity XcelChantiers de l'Atlantique4th Quarter 20253,250
TUI Cruises (50% joint venture) —
Mein Schiff RelaxFincantieri1st Quarter 20254,100
UnnamedFincantieri2nd Quarter 20264,100
Total Berths22,650
In addition, during 2024, we entered into an agreement with Meyer Turku Oy and Chantiers de l' Atlantique to build a fourth Icon class ship and a seventh Oasis class ship for delivery 2027 and 2028, respectively. Both agreements are contingent upon completion of certain conditions precedent including financing.
Our future capital commitments consist primarily of new ship orders. As of September 30, 2024, the aggregate expected cost of our ships on order presented in the table above, excluding any ships on order by our Partner Brands, was $5.9 billion, of which we had deposited $619 million. Approximately 39.6% of the aggregate cost was exposed to fluctuations in the Euro exchange rate at September 30, 2024. Refer to Note 8. Commitments and Contingencies and Note 11. Fair Value Measurements and Derivative Instruments to our consolidated financial statement.
As of September 30, 2024, we anticipate overall full year capital expenditures, based on our existing ships on order, will be approximately $3.4 billion for 2024. This amount does not include any ships on order by our Partner Brands.

35


Material Cash Requirements
As of September 30, 2024, our material cash requirements were as follows (in millions):
Remainder of
20242025202620272028ThereafterTotal
Operating Activities:
Interest on debt(1)$199 $959 $895 $757 $581 $2,109 $5,500 
Other(2)38 157 168 153 127 881 1,524 
Investing Activities:
Ship purchase obligations(3)172 2,572 1,669 — — — 4,413 
Total$409 $3,688 $2,732 $910 $708 $2,990 $11,437 
(1)Long-term debt obligations mature at various dates through fiscal year 2037 and bear interest at fixed and variable rates. Interest on variable-rate debt is calculated based on forecasted debt balances, including the impact of interest rate swap agreements, using the applicable rate at September 30, 2024. Debt denominated in other currencies is calculated based on the applicable exchange rate at September 30, 2024.
(2)Amounts primarily represent future commitments with remaining terms in excess of one year to pay for our usage of certain port facilities, marine consumables, services and maintenance contracts.
(3)Amounts are based on contractual installment and delivery dates for our ships on order. Included in these figures are $3.7 billion in final contractual installments, which have committed financing with sovereign guarantees covering approximately 80% of the cost of the ships on order for our Global Brands. Amounts do not include potential obligations which remain subject to cancellation at our sole discretion or any agreements entered for ships on order that remain contingent upon completion of conditions precedent.
Refer to Note 6. Debt for maturities related to debt.
Refer to Note 7. Leases for maturities related to lease liabilities.
Refer to Funding Needs and Sources for discussion on the planned funding of the above material cash requirements.
As a normal part of our business, depending on market conditions, pricing and our overall growth strategy, we continuously consider opportunities to enter into contracts for the building of additional ships. We may also consider the sale of ships or the purchase of existing ships. We continuously consider potential acquisitions and strategic alliances. If any of these were to occur, they would be financed through the incurrence of additional indebtedness, the issuance of additional shares of equity securities or through cash flows from operations.
Off-Balance Sheet Arrangements
Refer to Note 5. Investments and Other Assets for ownership restrictions related to TUI Cruises.
Refer to Note 3. Revenue for credit card processor agreements for export credit agency guarantees.
Refer to Note 8. Commitments and Contingencies for other agreements.
As of September 30, 2024, other than the items referenced above, we are not party to any other off-balance sheet arrangements, including guarantee contracts, retained or contingent interest, certain derivative instruments and variable interest entities, that either have, or are reasonably likely to have, a current or future material effect on our financial position.

Funding Needs and Sources
We have significant contractual obligations of which our debt service obligations and the capital expenditures associated with our ship purchases represent our largest funding needs. As of September 30, 2024, we had $4.1 billion of committed financing for our ships on order. As of September 30, 2024, our obligations due through September 30, 2025 primarily consisted of $1.6 billion related to debt maturities, $1.0 billion related to interest on debt and $1.9 billion related to progress payments on our ship orders and, based on the expected delivery date, the final installment payable due upon the delivery. We
36


have historically relied on a combination of cash flows provided by operations, draw-downs under our available credit facilities, the incurrence of additional debt and/or the refinancing of our existing debt and the issuance of additional shares of equity securities to fund our obligations.
As of September 30, 2024, we had liquidity of $3.9 billion, including cash and cash equivalents of $0.4 billion, and $3.5 billion of undrawn revolving credit facility capacity.
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.
Based on our assumptions and estimates and our financial condition, we believe that we have sufficient financial resources to fund our obligations for at least the next twelve months from the issuance of these financial statements. However, there is no assurance that our assumptions and estimates are accurate as there is inherent uncertainty in our ability to predict future liquidity requirements.
Debt Covenants
Our export credit facilities and our non-export credit facilities, 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, and to maintain minimum liquidity. In July 2024, we amended all of our export credit facilities to eliminate the contractual requirement for us to maintain a minimum level of stockholders' equity. As of September 30, 2024, we were in compliance with our financial covenants and we estimate that we will be in compliance for at least the next twelve months.
Dividends
The declaration of dividends shall at all times be subject to the final determination of our board of directors that a dividend is prudent at that time in consideration of the needs of the business. During the quarter ended September 30, 2024, our Board of Directors declared a cash dividend on our common stock of $0.40 per share, which was paid on October 11, 2024.

37


Item 3. Quantitative and Qualitative Disclosures About Market Risk
For a discussion of our market risks, refer to Part II, Item 7A. Quantitative and Qualitative Disclosures About Market Risk in our Annual Report on Form 10-K for the year ended December 31, 2023. There have been no material changes to our exposure to market risks since the date of our 2023 Annual Report.
Item 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
Our management, with the participation of our President and Chief Executive Officer and Chief Financial Officer, conducted an evaluation of the effectiveness of our disclosure controls and procedures, as such term is defined in Exchange Act Rule 13a-15(e), as of the end of the period covered by this Quarterly Report on Form 10-Q. Based upon such evaluation, our President and Chief Executive Officer and Chief Financial Officer concluded that those controls and procedures are effective to provide reasonable assurance that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is accumulated and communicated to management, including our President and Chief Executive Officer and our Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure and are effective to provide reasonable assurance that such information is recorded, processed, summarized and reported within the time periods specified by the rules and forms of the Securities and Exchange Commission (the "SEC").
Changes in Internal Control Over Financial Reporting
There were no changes in our internal control over financial reporting identified in connection with the evaluation required by Exchange Act Rule 13a-15(d) during the quarter ended September 30, 2024, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
Inherent Limitations on Effectiveness of Controls
It should be noted that any system of controls, however well designed and operated, can provide only reasonable, and not absolute, assurance that the objectives of the system will be met. In addition, the design of any control system is based in part upon certain assumptions about the likelihood of future events. Because of these and other inherent limitations of control systems, there is only reasonable assurance that our controls will succeed in achieving their goals under all potential future conditions.
38


PART II. OTHER INFORMATION

Item 1. Legal Proceedings
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 ("Havana Docks Action") alleges it holds an interest in the Havana Cruise Port Terminal that 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 appealed the judgment to the United States Court of Appeals for the 11th Circuit. On October 22, 2024, the 11th Circuit issued an opinion that overturned the lower court’s judgment. The plaintiff has the right to petition for a rehearing by the full 11th Circuit or to appeal to the United States Supreme Court. During the fourth quarter of 2022, we recorded a charge of approximately $130 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.

Item 1A. Risk Factors
There have been no material changes from risk factors previously disclosed in the Company’s most recent Annual Report on Form 10-K. See the discussions of the Company’s risk factors under Part I, Item 1A in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023.
39


Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Share Repurchases
There were no repurchases of common stock during the quarter ended September 30, 2024.

Item 5. Other Information
Rule 10b5-1 Plan Elections

During the quarter ended September 30, 2024, none of our directors or officers (as defined in Rule 16a-1 under the Exchange Act) adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement" (as those terms are defined in Item 408 of Regulation S-K).


40


Item 6. Exhibits
4.1 
4.2 
4.3 
4.4 
10.1 
31.1 
31.2 
32.1 
** Furnished herewith
Interactive Data File
101                         The following financial statements of Royal Caribbean Cruises Ltd. for the period ended September 30, 2024, formatted in iXBRL (Inline extensible Reporting Language) are filed herewith:
(i)               the Consolidated Statements of Comprehensive Income (Loss) for quarter and nine months ended September 30, 2024 and 2023;
(ii)    the Consolidated Balance Sheets at September 30, 2024 and December 31, 2023;
(iii)                the Consolidated Statements of Cash Flows for the nine months ended September 30, 2024 and 2023; and
(iv)                   the Notes to the Consolidated Financial Statements, tagged in summary and detail.
104      Cover page interactive data file (the cover page XBRL tags are embedded within the Inline XBRL document).
41


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 ROYAL CARIBBEAN CRUISES LTD.
 (Registrant)
 
 
 /s/ NAFTALI HOLTZ
 Naftali Holtz
 Chief Financial Officer
October 29, 2024(Principal Financial Officer and duly authorized signatory)

42
Exhibit 31.1


 
CERTIFICATIONS
 
I, Jason T. Liberty, certify that:
 
1.                    I have reviewed this quarterly report on Form 10-Q of Royal Caribbean Cruises Ltd.;
 
2.                    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
 
3.                    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
 
4.                    The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
 
a)            Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
 
b)            Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
 
c)             Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
 
d)            Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
 
5.                   The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
 
a)             All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
 
b)             Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
 
Date:
October 29, 2024
 
/s/ Jason T. Liberty
Jason T. Liberty
President and
Chief Executive Officer
(Principal Executive Officer)


Exhibit 31.2

 
CERTIFICATIONS
 
I, Naftali Holtz, certify that:
 
1.                    I have reviewed this quarterly report on Form 10-Q of Royal Caribbean Cruises Ltd.;
 
2.                   Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
 
3.                   Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
 
4.                   The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
 
a)             Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
 
b)            Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
 
c)             Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
 
d)            Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
 
5.                    The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
 
a)            All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
 
b)             Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
 
Date:
October 29, 2024
 
/s/ Naftali Holtz
Naftali Holtz
Chief Financial Officer
(Principal Financial Officer)


Exhibit 32.1

 
In connection with the quarterly report on Form 10-Q for the quarterly period ended September 30, 2024 as filed by Royal Caribbean Cruises Ltd. with the Securities and Exchange Commission on the date hereof (the “Report”), Jason T. Liberty, President and Chief Executive Officer, and Naftali Holtz, Chief Financial Officer, each hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to his knowledge:
 
1.                      the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and
 
2.                     the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Royal Caribbean Cruises Ltd.
 
Date:
October 29, 2024
  
    
  By:/s/ Jason T. Liberty
   Jason T. Liberty
President and
   Chief Executive Officer
   (Principal Executive Officer)
    
  By:/s/ Naftali Holtz
   Naftali Holtz
   Chief Financial Officer
   (Principal Financial Officer)


v3.24.3
Cover Page - shares
 9 Months Ended
Sep. 30, 2024
Oct. 25, 2024
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Sep. 30, 2024  
Document Transition Report false  
Entity File Number 1-11884  
Entity Registrant Name ROYAL CARIBBEAN CRUISES LTD  
Entity Incorporation, State or Country Code N0  
Entity Tax Identification Number 98-0081645  
Entity Address, Address Line One 1050 Caribbean Way  
Entity Address, City or Town Miami  
Entity Address, State or Province FL  
Entity Address, Postal Zip Code 33132  
City Area Code 305  
Local Phone Number 539-6000  
Title of 12(b) Security Common Stock, par value $0.01 per share  
Trading Symbol RCL  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   268,875,240
Entity Central Index Key 0000884887  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2024  
Document Fiscal Period Focus Q3  
v3.24.3
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($)
shares in Millions, $ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Total revenues $ 4,886 $ 4,160 $ 12,724 $ 10,569
Cruise operating expenses:        
Total cruise operating expenses 2,391 2,137 6,600 5,885
Marketing, selling and administrative expenses 451 393 1,452 1,289
Depreciation and amortization expenses 410 365 1,190 1,087
Operating Income 1,634 1,265 3,482 2,308
Other income (expense):        
Interest income 4 7 13 32
Interest expense, net of interest capitalized (603) (340) (1,324) (1,055)
Equity investment income 106 87 203 149
Other expense (26) (8) (37) (9)
Total other income (expense) (519) (254) (1,145) (883)
Net Income 1,115 1,011 2,337 1,425
Less: Net Income attributable to noncontrolling interest 4 2 12 5
Net Income attributable to Royal Caribbean Cruises Ltd. $ 1,111 $ 1,009 $ 2,325 $ 1,420
Earnings per Share:        
Basic (in dollars per share) $ 4.22 $ 3.94 $ 8.98 $ 5.55
Diluted (in dollars per share) $ 4.21 $ 3.65 $ 8.91 $ 5.24
Weighted-Average Shares Outstanding:        
Basic (in shares) 263 256 259 256
Diluted (in shares) 264 282 280 284
Comprehensive Income (Loss)        
Net Income $ 1,115 $ 1,011 $ 2,337 $ 1,425
Other comprehensive income (loss):        
Foreign currency translation adjustments (10) 11 0 2
Change in defined benefit plans 6 5 3 4
(Loss) gain on cash flow derivative hedges (95) 20 (82) (7)
Total other comprehensive (loss) income (99) 36 (79) (1)
Comprehensive Income 1,016 1,047 2,258 1,424
Less: Comprehensive Income attributable to noncontrolling interest 4 2 12 5
Comprehensive Income attributable to Royal Caribbean Cruises Ltd. 1,012 1,045 2,246 1,419
Passenger ticket revenues        
Total revenues 3,471 2,941 8,900 7,282
Onboard and other        
Total revenues 1,415 1,219 3,824 3,287
Cruise operating expenses:        
Total cruise operating expenses 289 261 726 640
Commissions, transportation and other        
Cruise operating expenses:        
Total cruise operating expenses 688 632 1,758 1,551
Payroll and related        
Cruise operating expenses:        
Total cruise operating expenses 328 294 959 888
Food        
Cruise operating expenses:        
Total cruise operating expenses 251 212 697 614
Fuel        
Cruise operating expenses:        
Total cruise operating expenses 290 272 876 850
Other operating        
Cruise operating expenses:        
Total cruise operating expenses $ 545 $ 466 $ 1,584 $ 1,342
v3.24.3
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions
Sep. 30, 2024
Dec. 31, 2023
Current assets    
Cash and cash equivalents $ 418 $ 497
Trade and other receivables, net of allowances of $8 and $7 at September 30, 2024 and December 31, 2023, respectively 441 405
Inventories 265 248
Prepaid expenses and other assets 667 617
Derivative financial instruments 40 25
Total current assets 1,831 1,792
Property and equipment, net 31,706 30,114
Operating lease right-of-use assets 649 611
Goodwill 809 809
Other assets, net of allowances of $42 and $43 at September 30, 2024 and December 31, 2023, respectively 2,072 1,805
Total assets 37,067 35,131
Current liabilities    
Current portion of long-term debt 1,868 1,720
Current portion of operating lease liabilities 68 65
Accounts payable 851 792
Accrued expenses and other liabilities 1,476 1,478
Derivative financial instruments 44 35
Customer deposits 5,324 5,311
Total current liabilities 9,631 9,401
Long-term debt 18,972 19,732
Long-term operating lease liabilities 648 613
Other long-term liabilities 592 486
Total liabilities 29,843 30,232
Shareholders’ equity    
Preferred stock ($0.01 par value; 20,000,000 shares authorized; none outstanding) 0 0
Common stock ($0.01 par value; 500,000,000 shares authorized; 297,343,264 and 284,672,386 shares issued, September 30, 2024 and December 31, 2023, respectively) 3 3
Paid-in capital 7,669 7,474
Retained earnings (accumulated deficit) 2,207 (10)
Accumulated other comprehensive loss (753) (674)
Treasury stock (28,468,430 and 28,248,125 common shares at cost, September 30, 2024 and December 31, 2023, respectively) (2,081) (2,069)
Total shareholders’ equity attributable to Royal Caribbean Cruises Ltd. 7,045 4,724
Noncontrolling Interests 179 175
Total shareholders’ equity 7,224 4,899
Total liabilities and shareholders’ equity $ 37,067 $ 35,131
v3.24.3
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Millions
Sep. 30, 2024
Dec. 31, 2023
Statement of Financial Position [Abstract]    
Trade and other receivables, allowance for credit loss $ 8 $ 7
Other assets, allowance for credit loss $ 42 $ 43
Preferred stock, par value (in dollars per share) $ 0.01 $ 0.01
Preferred stock, shares authorized (in shares) 20,000,000 20,000,000
Preferred stock, shares outstanding (in shares) 0 0
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 500,000,000 500,000,000
Common stock, shares issued (in shares) 297,343,264 284,672,386
Treasury stock, common shares (in shares) 28,468,430 28,248,125
v3.24.3
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Operating Activities    
Net Income $ 2,337 $ 1,425
Adjustments:    
Depreciation and amortization 1,190 1,087
Net deferred income tax expense (benefit) 15 (3)
Loss on derivative instruments not designated as hedges 8 31
Share-based compensation expense 109 79
Equity investment income (203) (149)
Amortization of debt issuance costs, discounts and premiums 76 84
Loss on extinguishment of debt and inducement expense 456 81
Changes in operating assets and liabilities:    
(Increase) decrease in trade and other receivables, net (13) 131
Increase in inventories, net (17) (18)
Increase in prepaid expenses and other assets (110) (44)
Increase in accounts payable trade 53 62
Decrease in accrued expenses and other liabilities (142) (245)
Increase in customer deposits 13 864
Other, net 26 (24)
Net cash provided by operating activities 3,798 3,361
Investing Activities    
Purchases of property and equipment (2,716) (1,329)
Cash received on settlement of derivative financial instruments 14 23
Cash paid on settlement of derivative financial instruments (61) (66)
Investments in and loans to unconsolidated affiliates (47) (22)
Cash received on loans from unconsolidated affiliates 13 36
Other, net (8) 9
Net cash used in investing activities (2,805) (1,349)
Financing Activities    
Debt proceeds 9,358 1,808
Debt issuance costs (120) (56)
Repayments of debt (9,969) (5,255)
Premium on repayment of debt (290) (51)
Proceeds from sale of noncontrolling interest 0 209
Other, net (49) (1)
Net cash used in financing activities (1,070) (3,346)
Effect of exchange rate changes on cash and cash equivalents (2) (1)
Net decrease in cash and cash equivalents (79) (1,335)
Cash and cash equivalents at beginning of period 497 1,935
Cash and cash equivalents at end of period 418 600
Cash paid during the period for:    
Interest, net of amount capitalized 998 1,064
Non-cash Investing Activities    
Purchase of property and equipment included in accounts payable and accrued expenses and other liabilities 52 24
Non-cash Financing Activity    
Non-cash inducement on convertible notes exchange $ 104 $ 0
v3.24.3
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($)
$ in Millions
Total
Common Stock
Paid-in Capital
(Accumulated Deficit) Retained Earnings
Accumulated Other Comprehensive Loss
Treasury Stock
Noncontrolling Interest
Beginning balance at Dec. 31, 2022 $ 2,870 $ 3 $ 7,285 $ (1,707) $ (643) $ (2,068)  
Increase (Decrease) in Stockholders' Equity              
Activity related to employee stock plans 79   79        
Convertible notes settlement 12   12        
Changes related to cash flow derivative hedges (7)       (7)    
Change in defined benefit plans 4       4    
Foreign currency translation adjustments 2       2    
Purchase of treasury stock (1)         (1)  
Sale of noncontrolling interest 220   46       $ 174
Net Income attributable to noncontrolling interest 5            
Net Income attributable to noncontrolling interest 6           6
Dividends from noncontrolling interest (6)           (6)
Net Income attributable to Royal Caribbean Cruises Ltd. 1,420     1,420      
Ending balance at Sep. 30, 2023 4,599 3 7,422 (287) (644) (2,069) 174
Beginning balance at Jun. 30, 2023 3,542 3 7,407 (1,296) (680) (2,069) 177
Increase (Decrease) in Stockholders' Equity              
Activity related to employee stock plans 14   14        
Changes related to cash flow derivative hedges 20       20    
Change in defined benefit plans 5       5    
Foreign currency translation adjustments 11       11    
Sale of noncontrolling interest 1   1       0
Net Income attributable to noncontrolling interest 2           2
Dividends from noncontrolling interest (5)           (5)
Net Income attributable to Royal Caribbean Cruises Ltd. 1,009     1,009      
Ending balance at Sep. 30, 2023 4,599 3 7,422 (287) (644) (2,069) 174
Beginning balance at Dec. 31, 2023 4,899 3 7,474 (10) (674) (2,069) 175
Increase (Decrease) in Stockholders' Equity              
Activity related to employee stock plans 91   91        
Common stock dividends (108)     (108)      
Convertible notes settlement 104   104        
Changes related to cash flow derivative hedges (82)       (82)    
Change in defined benefit plans 3       3    
Foreign currency translation adjustments 0            
Purchase of treasury stock (12)         (12)  
Net Income attributable to noncontrolling interest 12           12
Other activity attributable to noncontrolling interest (8)           (8)
Net Income attributable to Royal Caribbean Cruises Ltd. 2,325     2,325      
Ending balance at Sep. 30, 2024 7,224 3 7,669 2,207 (753) (2,081) 179
Beginning balance at Jun. 30, 2024 6,182 3 7,536 1,204 (654) (2,081) 174
Increase (Decrease) in Stockholders' Equity              
Activity related to employee stock plans 29   29        
Common stock dividends (108)     (108)      
Convertible notes settlement 104   104        
Changes related to cash flow derivative hedges (95)       (95)    
Change in defined benefit plans 6       6    
Foreign currency translation adjustments (10)       (10)    
Net Income attributable to noncontrolling interest 4           4
Other activity attributable to noncontrolling interest 1           1
Net Income attributable to Royal Caribbean Cruises Ltd. 1,111     1,111      
Ending balance at Sep. 30, 2024 $ 7,224 $ 3 $ 7,669 $ 2,207 $ (753) $ (2,081) $ 179
v3.24.3
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2024
Sep. 30, 2023
Statement of Stockholders' Equity [Abstract]      
Common stock dividends declared (in dollars per share) $ 0.40 $ 0.40 $ 0
v3.24.3
General
 9 Months Ended
Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
General
Note 1. General
Description of Business 
We are a global cruise company. We own and operate three global cruise brands: Royal Caribbean International, Celebrity Cruises and Silversea Cruises (collectively, our "Global Brands"). We also own a 50% joint venture interest in TUI Cruises GmbH ("TUIC"), which operates the German brands TUI Cruises and Hapag-Lloyd Cruises (collectively, our "Partner Brands"). We account for our investments in our Partner Brands under the equity method of accounting. Together, our Global Brands and our Partner Brands have a combined fleet of 68 ships as of September 30, 2024. Our ships offer a selection of worldwide itineraries that call on more than 1,000 destinations in over 120 countries on all seven continents.
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, 2023 for a discussion of our significant accounting policies. The Company has changed its presentation from thousands to millions and, as a result, any necessary rounding adjustments have been made to prior period disclosed amounts.
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.
v3.24.3
Summary of Significant Accounting Policies
 9 Months Ended
Sep. 30, 2024
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies
Note 2. Summary of Significant Accounting Policies
Recent Accounting Pronouncements
In August 2023, the FASB issued ASU No. 2023-05, Business Combinations - Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement. This ASU provides guidance requiring a joint venture to initially measure all contributions received upon its formation at fair value. The guidance is intended to provide users of joint venture financial statements with more decision-useful information. This ASU is effective for joint venture entities with a formation date on or after January 1, 2025 on a prospective basis. Early adoption is permitted, and joint ventures formed prior to the adoption date may elect to apply the new guidance retrospectively back to their original formation date. We are currently evaluating the impact of the new guidance on our consolidated financial statements.
In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This ASU requires enhanced disclosures about significant segment expenses and other segment items and requires companies to disclose all annual disclosures about segments in interim periods. This ASU also requires public entities with a single reportable segment to provide all the disclosures required by the amendments in this ASU and all existing segment disclosures in Topic 280. The amendments in this ASU are intended to improve financial reporting by requiring disclosure of incremental segment information on an annual and interim basis for all public entities to enable investors to develop more decision-useful financial analyses. The amendments in this ASU are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted and the amendments should be applied retrospectively to all periods presented. We are currently evaluating the impact of these amendments on our disclosures, but this standard update will not impact our financial condition and results of operations.
In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The new guidance is intended to enhance the transparency and decision usefulness of income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. This ASU is effective for annual periods beginning after December 15, 2024 on a prospective basis. Early adoption and retrospective application is permitted. We are currently evaluating the impact of the new guidance on our consolidated financial statements and related disclosures.
v3.24.3
Revenue
 9 Months Ended
Sep. 30, 2024
Revenue from Contract with Customer [Abstract]  
Revenue
Note 3. Revenue
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 receive payment before we satisfy this performance obligation and recognize revenue over the duration of each cruise, which generally ranges from three to 14 nights.
Passenger ticket revenues include charges to our guests for port costs that vary with passenger head counts. These types 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 $313 million and $252 million for the quarters ended September 30, 2024 and 2023, respectively, and $822 million and $682 million for the nine months ended September 30, 2024 and 2023, 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 millions):
Quarter Ended September 30,Nine Months Ended September 30,
2024202320242023
Revenues by itinerary
North America (1)$2,862 $2,275 $8,126 $6,621 
Asia/Pacific156 118 897 590 
Europe1,435 1,375 2,298 2,272 
Other regions (2)184 182 784 581 
Total revenues by itinerary4,637 3,950 12,105 10,064 
Other revenues (3)249 210 619 505 
Total revenues$4,886 $4,160 $12,724 $10,569 
(1)Includes the United States, Canada, Mexico and the Caribbean.
(2) Includes seasonality impacted itineraries primarily in South and Latin American countries.
(3) Includes revenues primarily related to cancellation fees, vacation protection insurance, pre- and post-cruise tours and fees for operating certain port facilities. Amounts also include revenues related to procurement and management related services we perform on behalf of our unconsolidated affiliates. Refer to Note 5. 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 and nine months ended September 30, 2024 and 2023, our guests were sourced from the following areas:
Quarter Ended September 30,
20242023
Passenger ticket revenues:
United States 74 %72 %
United Kingdom8 %10 %
All other countries (1)18 %18 %

Nine Months Ended September 30,
20242023
Passenger ticket revenues:
United States75 %74 %
All other countries (1)25 %26 %
(1)No other individual country's revenue exceeded 10% for the quarters and nine months ended September 30, 2024 and 2023.
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 $2.6 billion as of September 30, 2024 and December 31, 2023, respectively.
During the pandemic we provided flexibility to guests with bookings on sailings that were cancelled by allowing guests to receive future cruise credits (“FCCs”). As of September 30, 2024, our customer deposit balance includes approximately
$253 million of unredeemed FCCs. Our FCCs are not refundable and do not have expiration dates. Based upon our analysis of historical redemption experience, we believe a portion of our FCCs are not probable of being used in future periods. Based on our current estimates, we recognized an immaterial amount of FCC breakage revenue during the quarter and nine months ended September 30, 2024. We will continue to monitor changes in redemption behavior and estimate and record revenue associated with breakage when the likelihood of the customer exercising their remaining rights becomes remote.
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 processing agreements require us, under certain circumstances, to maintain a reserve that can be satisfied by posting collateral. As of September 30, 2024, none of our credit card processors required us to maintain a reserve.
We have contract assets that are conditional rights to consideration for satisfying the construction services performance obligations under a service concession arrangement. As of September 30, 2024 and December 31, 2023, our contract assets were $162 million and $167 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 $263 million as of September 30, 2024 and $257 million as of December 31, 2023. 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).
v3.24.3
Earnings Per Share
 9 Months Ended
Sep. 30, 2024
Earnings Per Share [Abstract]  
Earnings Per Share
Note 4. Earnings Per Share
Basic and diluted earnings per share is as follows (in millions, except per share data):
Quarter Ended September 30,Nine Months Ended September 30,
 2024202320242023
Net Income attributable to Royal Caribbean Cruises Ltd. for basic earnings per share$1,111 $1,009 $2,325 $1,420 
Add convertible notes interest and inducement expense— 20 169 68 
Net Income attributable to Royal Caribbean Cruises Ltd. for diluted earnings per share1,111 1,029 2,494 1,488 
Weighted-average common shares outstanding263 256 259 256 
Dilutive effect of stock-based awards1 1 1 1 
Dilutive effect of convertible notes— 25 20 27 
Diluted weighted-average shares outstanding264 282 280 284 
Basic earnings per share$4.22 $3.94 $8.98 $5.55 
Diluted earnings per share$4.21 $3.65 $8.91 $5.24 
There were no antidilutive shares for the quarter ended September 30, 2023, and nine months ended September 30, 2024 and 2023, compared to 14,706,077 antidilutive shares from our convertible notes for the quarter ended September 30, 2024.
v3.24.3
Investments and Other Assets
 9 Months Ended
Sep. 30, 2024
Other Assets [Abstract]  
Investments and Other Assets 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.
In 2023, we closed on the partnership agreement with iCON Infrastructure Partners VI, L.P. ("iCON"). This partnership owns, develops, and manages 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 sold 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 September 30, 2024, the net book value of our investment in TUIC was $820 million, primarily consisting of $744 million in equity and a loan of €59 million, or approximately $66 million based on the exchange rate at September 30, 2024. As of December 31, 2023, the net book value of our investment in TUIC was $657 million, primarily consisting of $566 million in equity and a loan of €71 million, or approximately $79 million based on the exchange rate at December 31, 2023. 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 TUIC below 37.55% through May 2033. Our investment amount and outstanding term loan are substantially our maximum exposure to loss in connection with our investment in TUIC.
We 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 and account for this investment under the equity method of accounting.
In 2023, we formed a 50%-owned joint venture with the other 40% shareholder of Grand Bahama to operate Floating Docks S. DE RL. (“Floating Docks”). Floating Docks will construct two floating drydocks, with delivery dates expected in 2025 and 2026, that will be leased to Grand Bahama and allow it to service the entire range of cruise ships in operation and under construction, as well as much of the world’s commercial shipping fleet. We and our joint venture partner have each guaranteed 50% of certain installment payments payable by Floating Docks under the drydock and related construction contracts, which are contingent on the achievement of certain construction milestones, bringing our total payment guarantees to $41 million as of September 30, 2024. Our investment in Floating Docks, including loans, is immaterial to our consolidated financial statements as of September 30, 2024.
We have determined that Floating Docks is a VIE. We have determined that we are not the primary beneficiary of Floating Docks since we believe that the power to direct the activities that most significantly impact Floating Docks' economic performance is shared between ourselves and our joint venture partner. All the significant operating and financial decisions of Floating Docks require the consent of both parties which we believe creates shared power over Floating Docks. Accordingly, we do not consolidate this entity and account for this investment under the equity method of accounting.
In 2023, 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. 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 and account for these investments under the equity method of accounting.
The following tables set forth information regarding our investments accounted for under the equity method of accounting, including the entities discussed above (in millions):
Quarter Ended September 30,Nine Months Ended September 30,
2024202320242023
Share of equity income from investments$106 $87 $203 $149 
As of September 30, 2024As of December 31, 2023
Total notes receivable due from equity investments$133 $105 
Less-current portion (1)18 19 
Long-term portion (2)$115 $86 
(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 $209 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 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
In evaluating our credit loss allowance, management considered factors such as historical loss experience, the types of loans and the amount of loans in the loan portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, peer group information and prevailing economic conditions. Our credit loss allowance as of September 30, 2024 and 2023 primarily relates to credit losses recognized on notes receivable for the previous sale of certain property and equipment of $42 million and $63 million, respectively, which were originated in 2015 and 2020.
The following table summarizes our credit loss allowance related to receivables (in millions):
Nine Months Ended September 30,
20242023
Balance, beginning of period$49 $83 
Credit loss (recovery), net1 (10)
Write-offs— (3)
Balance, end of period$50 $70 
v3.24.3
Debt
 9 Months Ended
Sep. 30, 2024
Debt Disclosure [Abstract]  
Debt Note 6. Debt
Debt consists of the following (in millions):
Weighted Average Rate (1)
Maturities ThroughAs of September 30, 2024As of December 31, 2023
Fixed rate debt:
Unsecured senior notes
5.59%
2026 - 2033$9,699 $7,899 
Secured senior notes
—%
2029— 1,000 
Unsecured term loans
3.25%
2027 - 20368,024 6,569 
Convertible notes
6.00%
2025323 1,150 
Total fixed rate debt18,046 16,618 
Variable rate debt:
Unsecured revolving credit facilities (2)
6.48%
2026 - 2028210 899 
USD unsecured term loan
6.52%
2024 - 20372,522 3,666 
Euro unsecured term loan
4.95%
2028261 443 
Total variable rate debt2,993 5,008 
Finance lease liabilities350 369 
Total debt (3)
21,389 21,995 
Less: unamortized debt issuance costs(549)(543)
Total debt, net of unamortized debt issuance costs20,840 21,452 
Less—current portion (1,868)(1,720)
Long-term portion$18,972 $19,732 
(1) Weighted average interest rates are based on outstanding loan balance as of September 30, 2024, and for variable rate debt include either EURIBOR or Term SOFR plus the applicable margin.
(2) Advances under our unsecured revolving credit facilities accrue interest at Term SOFR plus a 0.10% credit adjustment spread plus an interest rate margin of 1.33%. Based on applicable Term SOFR rates, as of September 30, 2024, the interest rate under the unsecured credit facilities was 6.28%. We also pay a facility fee of 0.17% of the total commitments under such facility.
(3) At September 30, 2024 and December 31, 2023, the weighted average interest rate for total debt was 5.27% and 6.06%, respectively.
Unsecured revolving credit facilities
As of September 30, 2024 our aggregate revolving credit capacity is $3.7 billion of which $1.86 billion of the commitments are scheduled to mature in October 2026 and $1.86 billion of the commitments are scheduled to mature in October 2028. As of September 30, 2024, we had undrawn capacity of $3.5 billion under our unsecured revolving credit facilities.
Debt financing transactions
In March 2024, we issued $1.25 billion of senior unsecured notes due in 2032 for net proceeds of approximately $1.24 billion. Interest accrues on the notes at a fixed rate of 6.25% per annum and is payable semi-annually in arrears. The proceeds from this notes issuance, together with cash on hand, were used to redeem all of the outstanding $1.25 billion aggregate principal amount of 11.625% Senior Notes due 2027. The repayment resulted in a loss on extinguishment of debt of $116 million that was recognized within Interest expense, net of interest capitalized within our consolidated statements of comprehensive income (loss) for the nine months ended September 30, 2024.
In August 2024, we issued $2.0 billion of senior unsecured notes due in 2033 for net proceeds of approximately $1.98 billion. Interest accrues on the notes at a fixed rate of 6.00% per annum and is payable semi-annually in arrears. The proceeds from this notes issuance were used to redeem all of our outstanding $1.0 billion aggregate principal of 9.25% Senior Notes due 2029 and all of our outstanding $1.0 billion aggregate principal amount of 8.25% Senior secured notes due 2029. The
repayment resulted in a loss on extinguishment of debt of $142 million that was recognized within Interest expense, net of interest capitalized within our consolidated statements of comprehensive income (loss) for the quarter and nine months ended September 30, 2024.
In August 2024, we completed a privately negotiated exchange with a limited number of holders of the 6.00% Convertible Senior Notes due 2025. The holders exchanged approximately $827 million in aggregate principal amount for approximately 11.4 million shares of common stock and $827 million in cash, including accrued and unpaid interest. The convertible notes exchange resulted in an induced conversion expense of $119 million that was recognized within Interest expense, net of interest capitalized within our consolidated statements of comprehensive income (loss) for the quarter and nine months ended September 30, 2024.
In September 2024, we issued $1.5 billion of senior unsecured notes due in 2031 for net proceeds of approximately $1.49 billion in order to repay indebtedness. Interest accrues on the notes at a fixed rate 5.63% per annum and is a payable semi-annually in arrears. Concurrently, we redeemed all of our outstanding $700 million aggregate principal amount of our 7.25% Senior Notes due 2030. The repayment resulted in a loss on extinguishment of debt of $61 million that was recognized within Interest expense, net of interest capitalized within our consolidated statements of comprehensive income (loss) for the quarter and nine months ended September 30, 2024.
Export credit facilities and agency guarantees
In May 2024, we took delivery of Silver Ray. To finance the delivery, we borrowed $507 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 4.33% per annum.
In June 2024, we took delivery of Utopia of the Seas. To finance the delivery, we borrowed a total of $1.5 billion under the committed financing agreement, resulting in an unsecured term loan which is 100% guaranteed by BpiFrance Assurance Export. The unsecured term loan amortizes semi-annually over 12 years and bears interest primarily at a fixed rate of 3.00% per annum.
During the second quarter of 2024, we repaid $839 million of outstanding deferred amounts under our export credit facilities. These repayments included both scheduled payments and an early repayment of the amortization deferral obtained on our export credit facilities in 2020 and 2021, which resulted in an immaterial loss on extinguishment of debt that was recognized within Interest expense, net of interest capitalized within our consolidated statements of comprehensive income (loss) for the nine months ended September 30, 2024.
Except for the term loan we incurred to acquire 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 September 30, 2024, 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, and to maintain minimum liquidity. In July 2024, we amended all of our export credit facilities to eliminate the contractual requirement for us to maintain a minimum level of stockholders' equity. As of September 30, 2024, 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 September 30, 2024 for each of the next five years (in millions):
Year
As of September 30, 2024 (1)
Remainder of 2024$717 
20251,613 
20262,937 
20272,609 
20283,414 
Thereafter10,099 
$21,389 
(1)    Debt denominated in other currencies is calculated based on the applicable exchange rate at September 30, 2024.
v3.24.3
Leases
 9 Months Ended
Sep. 30, 2024
Leases [Abstract]  
Leases
Note 7. Leases
Operating Leases
Our operating leases primarily relate to preferred berthing arrangements, real estate, and shipboard equipment which are included within Operating lease right-of-use assets, and Long-term operating lease liabilities with the current portion of the liability included within Current portion of operating lease liabilities in our consolidated balance sheets as of September 30, 2024 and December 31, 2023. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet. We recognize lease expense for these leases on a straight-line basis over the lease term.
The company's preferred berthing agreement with Miami-Dade County ("County") includes the development plans for the County to finance the construction of a new and improved cruise Terminal G at PortMiami. The aggregate amount of the operating lease liabilities recorded for this berthing agreement was $167 million as of September 30, 2024 and December 31, 2023. There will be future remeasurements of the operating lease as the County completes several construction milestones throughout the term of the extended lease, including an expected remeasurement in 2027 or later, when the County satisfies substantial completion of Terminal G, as the minimum lease payments will increase at such time to approximately $55 million per year, with expected 3% annual increases thereafter.
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 primarily range from one to 10 years and the renewal periods for berthing agreements primarily 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 Silver Dawn. 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 September 30, 2024 and December 31, 2023.
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. In November 2023, we executed a modification to the Master Lease agreement to extend its expiration from 2076 to 2077 after coming to an agreement with Miami-Dade County on the financing plans to finalize the development of the buildings and land. The modification of the Master Lease did not change the classification of the lease. The total aggregate amount of the finance lease liabilities recorded for this Master Lease was $106 million and $104 million as of September 30, 2024 and December 31, 2023, respectively. The development of the new campus buildings are expected to be completed in 2026, and the lease components will be recorded within our consolidated financial statements upon commencement.
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. On September 26, 2024, we submitted an irrevocable notice to execute the bargain purchase option and pay in full all of the outstanding aggregate principal amount of the Silver Dawn finance lease for approximately $232 million, which is scheduled for November 25, 2024.
The aggregate amount of finance lease liabilities recorded for this ship was $232 million and $246 million as of September 30, 2024 and December 31, 2023, respectively. The lease payments on the Silver Dawn are subject to adjustments based on the Term SOFR rate.
The components of lease expense were as follows (in millions):
Consolidated Statement of Comprehensive Income (Loss) ClassificationQuarter Ended September 30, 2024Nine Months Ended September 30, 2024
Lease costs:
Operating lease costsCommission, transportation and other$38 $151 
Operating lease costsOther operating expenses4 11 
Operating lease costsMarketing, selling and administrative expenses5 14 
Financial lease costs:
Amortization of right-of-use-assetsDepreciation and amortization expenses3 10 
Interest on lease liabilitiesInterest expense, net of interest capitalized7 22 
Total lease costs$57 $208 

Consolidated Statement of Comprehensive Income (Loss) ClassificationQuarter Ended September 30, 2023Nine Months Ended September 30, 2023
Lease costs:
Operating lease costsCommission, transportation and other$33 $128 
Operating lease costsOther operating expenses6 17 
Operating lease costsMarketing, selling and administrative expenses5 16 
Financial lease costs:
Amortization of right-of-use-assetsDepreciation and amortization expenses6 17 
Interest on lease liabilitiesInterest expense, net of interest capitalized8 22 
Total lease costs$58 $200 
In addition, certain of our berthing agreements include variable lease costs based on the number of passengers berthed. During the quarter and nine months ended September 30, 2024, we had $13 million and $92 million of variable lease costs recorded within Commission, transportation and other in our consolidated statement of comprehensive income (loss), respectively, compared to $13 million and $72 million of variable lease costs recorded within Commission, transportation and other in our consolidated statement of comprehensive income (loss) during the quarter and nine months ended September 30, 2023, respectively. These variable lease costs are included within the balances presented above.
The weighted average of the remaining lease terms and weighted average discount rates are as follows:
As of September 30, 2024As of December 31, 2023
Weighted average of the remaining lease term in years
Operating leases18.6519.43
Finance leases24.0423.92
Weighted average discount rate
Operating leases7.28 %7.53 %
Finance leases5.86 %5.83 %
Supplemental cash flow information related to leases is as follows (in millions):
Nine Months Ended September 30, 2024Nine Months Ended September 30, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$178 $131 
Operating cash flows from finance leases$22 $22 
Financing cash flows from finance leases$19 $25 
As of September 30, 2024, maturities related to lease liabilities were as follows (in millions):
YearOperating LeasesFinance Leases
Remainder of 2024$31 $239 
2025113 15 
2026107 10 
2027104 9 
2028100 9 
Thereafter1,062 495 
Total lease payments1,517 777 
Less: Interest(801)(427)
Present value of lease liabilities$716 $350 
Leases
Note 7. Leases
Operating Leases
Our operating leases primarily relate to preferred berthing arrangements, real estate, and shipboard equipment which are included within Operating lease right-of-use assets, and Long-term operating lease liabilities with the current portion of the liability included within Current portion of operating lease liabilities in our consolidated balance sheets as of September 30, 2024 and December 31, 2023. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet. We recognize lease expense for these leases on a straight-line basis over the lease term.
The company's preferred berthing agreement with Miami-Dade County ("County") includes the development plans for the County to finance the construction of a new and improved cruise Terminal G at PortMiami. The aggregate amount of the operating lease liabilities recorded for this berthing agreement was $167 million as of September 30, 2024 and December 31, 2023. There will be future remeasurements of the operating lease as the County completes several construction milestones throughout the term of the extended lease, including an expected remeasurement in 2027 or later, when the County satisfies substantial completion of Terminal G, as the minimum lease payments will increase at such time to approximately $55 million per year, with expected 3% annual increases thereafter.
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 primarily range from one to 10 years and the renewal periods for berthing agreements primarily 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 Silver Dawn. 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 September 30, 2024 and December 31, 2023.
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. In November 2023, we executed a modification to the Master Lease agreement to extend its expiration from 2076 to 2077 after coming to an agreement with Miami-Dade County on the financing plans to finalize the development of the buildings and land. The modification of the Master Lease did not change the classification of the lease. The total aggregate amount of the finance lease liabilities recorded for this Master Lease was $106 million and $104 million as of September 30, 2024 and December 31, 2023, respectively. The development of the new campus buildings are expected to be completed in 2026, and the lease components will be recorded within our consolidated financial statements upon commencement.
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. On September 26, 2024, we submitted an irrevocable notice to execute the bargain purchase option and pay in full all of the outstanding aggregate principal amount of the Silver Dawn finance lease for approximately $232 million, which is scheduled for November 25, 2024.
The aggregate amount of finance lease liabilities recorded for this ship was $232 million and $246 million as of September 30, 2024 and December 31, 2023, respectively. The lease payments on the Silver Dawn are subject to adjustments based on the Term SOFR rate.
The components of lease expense were as follows (in millions):
Consolidated Statement of Comprehensive Income (Loss) ClassificationQuarter Ended September 30, 2024Nine Months Ended September 30, 2024
Lease costs:
Operating lease costsCommission, transportation and other$38 $151 
Operating lease costsOther operating expenses4 11 
Operating lease costsMarketing, selling and administrative expenses5 14 
Financial lease costs:
Amortization of right-of-use-assetsDepreciation and amortization expenses3 10 
Interest on lease liabilitiesInterest expense, net of interest capitalized7 22 
Total lease costs$57 $208 

Consolidated Statement of Comprehensive Income (Loss) ClassificationQuarter Ended September 30, 2023Nine Months Ended September 30, 2023
Lease costs:
Operating lease costsCommission, transportation and other$33 $128 
Operating lease costsOther operating expenses6 17 
Operating lease costsMarketing, selling and administrative expenses5 16 
Financial lease costs:
Amortization of right-of-use-assetsDepreciation and amortization expenses6 17 
Interest on lease liabilitiesInterest expense, net of interest capitalized8 22 
Total lease costs$58 $200 
In addition, certain of our berthing agreements include variable lease costs based on the number of passengers berthed. During the quarter and nine months ended September 30, 2024, we had $13 million and $92 million of variable lease costs recorded within Commission, transportation and other in our consolidated statement of comprehensive income (loss), respectively, compared to $13 million and $72 million of variable lease costs recorded within Commission, transportation and other in our consolidated statement of comprehensive income (loss) during the quarter and nine months ended September 30, 2023, respectively. These variable lease costs are included within the balances presented above.
The weighted average of the remaining lease terms and weighted average discount rates are as follows:
As of September 30, 2024As of December 31, 2023
Weighted average of the remaining lease term in years
Operating leases18.6519.43
Finance leases24.0423.92
Weighted average discount rate
Operating leases7.28 %7.53 %
Finance leases5.86 %5.83 %
Supplemental cash flow information related to leases is as follows (in millions):
Nine Months Ended September 30, 2024Nine Months Ended September 30, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$178 $131 
Operating cash flows from finance leases$22 $22 
Financing cash flows from finance leases$19 $25 
As of September 30, 2024, maturities related to lease liabilities were as follows (in millions):
YearOperating LeasesFinance Leases
Remainder of 2024$31 $239 
2025113 15 
2026107 10 
2027104 9 
2028100 9 
Thereafter1,062 495 
Total lease payments1,517 777 
Less: Interest(801)(427)
Present value of lease liabilities$716 $350 
v3.24.3
Commitments and Contingencies
 9 Months Ended
Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
Note 8. Commitments and Contingencies
Ship Purchase Obligations
Our future capital commitments consist primarily of new ship orders. As of September 30, 2024, 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 —
Icon-class:
Star of the SeasMeyer Turku Oy3rd Quarter 20255,600
UnnamedMeyer Turku Oy2nd Quarter 20265,600
Celebrity Cruises —
Edge-class:
Celebrity XcelChantiers de l'Atlantique4th Quarter 20253,250
TUI Cruises (50% joint venture) —
Mein Schiff RelaxFincantieri1st Quarter 20254,100
UnnamedFincantieri2nd Quarter 20264,100
Total Berths22,650
In addition, during 2024, we entered into an agreement with Meyer Turku Oy and Chantiers de l' Atlantique to build a fourth Icon class ship and a seventh Oasis class ship for delivery 2027 and 2028, respectively. Both agreements are contingent upon completion of certain conditions precedent including financing.
As of September 30, 2024, 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 $5.9 billion, of which we had deposited $619 million 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 ("Havana Docks Action") alleges it holds an interest in the Havana Cruise Port Terminal that 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 appealed the judgment to the United States Court of Appeals for the 11th Circuit. On October 22, 2024, the 11th Circuit issued an opinion that overturned the lower court’s judgment. The plaintiff has the right to petition for a rehearing by the full 11th Circuit or to appeal to the United States Supreme Court. During the fourth quarter of 2022, we recorded a charge of approximately $130.0 million to Other expense 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.
In September 2024, we entered into agreements to acquire the Port of Costa Maya and adjacent land in Mahahual, Mexico for approximately $292 million. The transaction is expected to close in the first half of 2025, subject to regulatory approval and customary closing conditions.
v3.24.3
Shareholders' Equity
 9 Months Ended
Sep. 30, 2024
Equity [Abstract]  
Shareholders' Equity
Note 9. Shareholders' Equity
Dividends
During the quarter ended September 30, 2024, we declared a cash dividend on our common stock of $0.40 per share, which was paid on October 11, 2024. We did not declare any dividends during the nine months ended September 30, 2023. We were previously restricted under our export credit facilities from paying dividends. During the second quarter of 2024, we repaid the principal amounts deferred under our export credit facilities, which eliminated the restriction on dividends and share repurchases. Refer to Note 6. Debt for further information on the transaction.
v3.24.3
Changes in Accumulated Other Comprehensive Loss
 9 Months Ended
Sep. 30, 2024
Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Changes in Accumulated Other Comprehensive Loss
Note 10. Changes in Accumulated Other Comprehensive Loss
The following table presents the changes in accumulated other comprehensive loss by component for the nine months ended September 30, 2024 and 2023 (in millions):
Accumulated Other Comprehensive Loss for the Nine Months Ended September 30, 2024Accumulated Other Comprehensive Loss for the Nine Months Ended September 30, 2023
 Changes related to cash flow derivative hedgesChanges in defined benefit plansForeign currency translation adjustmentsAccumulated other comprehensive lossChanges related to cash flow derivative hedgesChanges in defined benefit plansForeign currency translation adjustmentsAccumulated other comprehensive loss
Accumulated comprehensive loss at beginning of the year$(666)$(2)$(6)$(674)$(638)$(8)$3 $(643)
Other comprehensive income (loss) before reclassifications(46)3 — (43)6 4 2 12 
Amounts reclassified from accumulated other comprehensive loss(36)— — (36)(13)— — (13)
Net current-period other comprehensive income (loss)(82)3 — (79)(7)4 2 (1)
Ending balance$(748)$1 $(6)$(753)$(645)$(4)$5 $(644)

The following table presents reclassifications out of accumulated other comprehensive loss for the quarters and nine months ended September 30, 2024 and 2023 (in millions):
 Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income 
Details About Accumulated Other Comprehensive Loss ComponentsQuarter Ended September 30, 2024Quarter Ended September 30, 2023Nine Months Ended September 30, 2024Nine Months Ended September 30, 2023Affected Line Item in Statements of
Comprehensive Income (Loss)
Gain (loss) on cash flow derivative hedges:  
Interest rate swaps$11 $15 $36 $35 Interest expense, net of interest capitalized
Foreign currency forward contracts(6)(4)(17)(13)Depreciation and amortization expenses
Foreign currency forward contracts— — — (10)Other (expense) income
Fuel swaps3 16 17 1 Fuel
 $8 $27 $36 $13  
v3.24.3
Fair Value Measurements and Derivative Instruments
 9 Months Ended
Sep. 30, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements and Derivative Instruments
Note 11. Fair Value Measurements and Derivative Instruments 
Fair Value Measurements
The estimated fair value of our financial instruments that are not measured at fair value, categorized based upon the fair value hierarchy, are as follows (in millions): 
Fair Value Measurements at September 30, 2024Fair Value Measurements at December 31, 2023
DescriptionTotal Carrying AmountTotal Fair Value
Level 1(1)
Level 2(2)
Level 3(3)
Total Carrying AmountTotal Fair Value
Level 1(1)
Level 2(2)
Level 3(3)
Assets:
Cash and cash equivalents(4)
$418 $418 $418 $— $— $497 $497 $497 $— $— 
Total Assets$418 $418 $418 $— $— $497 $497 $497 $— $— 
Liabilities:
Long-term debt (including current portion of debt)(5)
$20,490 $21,968 $— $21,968 $— $21,083 $23,700 $— $23,700 $— 
Total Liabilities$20,490 $21,968 $— $21,968 $— $21,083 $23,700 $— $23,700 $— 
(1) Inputs based on quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access. Valuation of these items does not entail a significant amount of judgment.
(2) Inputs other than quoted prices included within Level 1 that are observable for the liability, either directly or indirectly. For unsecured revolving credit facilities and unsecured term loans, fair value is determined utilizing the income valuation approach. This valuation model takes into account the contract terms of our debt such as the debt maturity and the interest rate on the debt. The valuation model also takes into account the creditworthiness of the Company. We valued our senior notes and convertible notes using a quoted market price, which is considered a Level 2 input as it is observable in the market; however, these instruments have a limited trading volume and as such this fair value estimate is not necessarily indicative of the value at which the instruments could be retired or transferred.
(3) Inputs that are unobservable. The Company did not use any Level 3 inputs as of September 30, 2024 and December 31, 2023.
(4) Consists of cash and marketable securities with original maturities of less than 90 days.
(5) Consists of unsecured revolving credit facilities, senior notes, term loans and convertible notes. These amounts do not include our finance lease obligations.
Other Financial Instruments 
The carrying amounts of accounts receivable, accounts payable, accrued interest and accrued expenses approximate fair value as of September 30, 2024 and December 31, 2023.
Assets and liabilities that are recorded at fair value have been categorized based upon the fair value hierarchy. The following table presents information about the Company’s financial instruments recorded at fair value on a recurring basis (in millions):
 Fair Value Measurements at September 30, 2024Fair Value Measurements at December 31, 2023
DescriptionTotal
Level 1(1)
Level 2(2)
Level 3(3)
Total
Level 1(1)
Level 2(2)
Level 3(3)
Assets:        
Derivative financial instruments(4)
$112 $— $112 $— $144 $— $144 $— 
Total Assets$112 $— $112 $— $144 $— $144 $— 
Liabilities:        
Derivative financial instruments(4)
$88 $— $88 $— $66 $— $66 $— 
Total Liabilities$88 $— $88 $— $66 $— $66 $— 
(1)Inputs based on quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access. Valuation of these items does not entail a significant amount of judgment. No Level 1 inputs were used in fair value measurements of other financial instruments as of September 30, 2024 and December 31, 2023.
(2)Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. For foreign currency forward contracts, interest rate swaps and fuel swaps, fair value is derived using valuation models that utilize the income valuation approach. These valuation models take into account the contract terms, such as maturity, as well as other inputs, such as foreign exchange rates and curves, fuel types, fuel curves and interest rate yield curves. Derivative instrument fair values take into account the creditworthiness of the counterparty and the Company.
(3)Inputs that are unobservable. No Level 3 inputs were used in fair value measurements of other financial instruments as of September 30, 2024 and December 31, 2023.
(4)Consists of foreign currency forward contracts, interest rate and fuel swaps. Refer to the "Fair Value of Derivative Instruments" table for breakdown by instrument type.

The reported fair values are based on a variety of factors and assumptions. Accordingly, the fair values may not represent actual values of the financial instruments that could have been realized as of September 30, 2024 or December 31, 2023, or that will be realized in the future, and do not include expenses that could be incurred in an actual sale or settlement.
Nonfinancial Instruments Recorded at Fair Value on a Nonrecurring Basis
Nonfinancial instruments include items such as goodwill, indefinite-lived intangible assets, long-lived assets, right-of-use assets and equity method investments that are measured at fair value on a nonrecurring basis when events and circumstances indicate the carrying value is not recoverable. There were no material nonfinancial instruments recorded at fair value as of September 30, 2024 or December 31, 2023.
Master Netting Agreements
We have master International Swaps and Derivatives Association (“ISDA”) agreements in place with our derivative instrument counterparties. These ISDA agreements generally provide for final close out netting with our counterparties for all positions in the case of default or termination of the ISDA agreement. We have determined that our ISDA agreements provide us with rights of setoff on the fair value of derivative instruments in a gain position and those in a loss position with the same counterparty. We have elected not to offset such derivative instrument fair values in our consolidated balance sheets.
See Credit Related Contingent Features for further discussion on contingent collateral requirements for our derivative instruments.















The following table presents information about the Company’s offsetting of financial assets and liabilities under master netting agreements with derivative counterparties (in millions):

Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements
As of September 30, 2024As of December 31, 2023
Gross Amount of Derivative Assets Presented in the Consolidated Balance SheetGross Amount of Eligible Offsetting
Recognized
Derivative Liabilities		Cash Collateral
Received		Net Amount of
Derivative Assets		Gross Amount of Derivative Assets Presented in the Consolidated Balance SheetGross Amount of Eligible Offsetting
Recognized
Derivative Liabilities		Cash Collateral
Received 		Net Amount of
Derivative Assets
Derivatives subject to master netting agreements$112 $(34)$— $78 $144 $(28)$— $116 
Total$112 $(34)$— $78 $144 $(28)$— $116 
Gross Amount of Derivative Liabilities Presented in the Consolidated Balance SheetGross Amount of Eligible Offsetting
Recognized
Derivative Assets		Cash Collateral
Pledged		Net Amount of
Derivative Liabilities		Gross Amount of Derivative Liabilities Presented in the Consolidated Balance SheetGross Amount of Eligible Offsetting
Recognized
Derivative Assets		Cash Collateral
Pledged		Net Amount of
Derivative Liabilities
Derivatives subject to master netting agreements$(88)$34 $— $(54)$(66)$28 $— $(38)
Total$(88)$34 $— $(54)$(66)$28 $— $(38)

Concentrations of Credit Risk
We monitor our credit risk associated with financial and other institutions with which we conduct significant business, and to minimize these risks, we select counterparties with credit risks acceptable to us and we seek to limit our exposure to an individual counterparty. Credit risk, including, but not limited to, counterparty nonperformance under derivative instruments, our credit facilities and new ship progress payment guarantees, is not considered significant, as we primarily conduct business with large, well-established financial institutions, insurance companies and export credit agencies many of which we have long-term relationships with and which have credit risks acceptable to us or where the credit risk is spread out among a large number of counterparties. As of September 30, 2024, we had counterparty credit risk exposure under our derivative instruments of $95 million, which was limited to the cost of replacing the contracts in the event of non-performance by the counterparties to the contracts, the majority of which are currently our lending banks. We do not anticipate nonperformance by any of our significant counterparties. In addition, we have established guidelines we follow regarding credit ratings and instrument maturities to maintain safety and liquidity. We do not normally require collateral or other security to support credit relationships; however, in certain circumstances this option is available to us.
Derivative Instruments
We are exposed to market risk attributable to changes in interest rates, foreign currency exchange rates and fuel prices. We try to mitigate these risks through a combination of our normal operating and financing activities and through the use of derivative financial instruments pursuant to our hedging practices and policies. The financial impact of these hedging instruments is primarily offset by corresponding changes in the underlying exposures being hedged. We achieve this by closely matching the notional amount, term and conditions of the derivative instrument with the underlying risk being hedged. Although certain of our derivative financial instruments do not qualify or are not accounted for under hedge accounting, our objective is not to hold or issue derivative financial instruments for trading or other speculative purposes. 
We enter into various forward, swap and option contracts to manage our interest rate exposure and to limit our exposure to fluctuations in foreign currency exchange rates and fuel prices. These instruments are recorded on the balance sheet at their fair value and the vast majority are designated as hedges. We also use non-derivative financial instruments designated as hedges of our net investment in our foreign operations and investments.
At inception of the hedge relationship, a derivative instrument that hedges the exposure to changes in the fair value of a firm commitment or a recognized asset or liability is designated as a fair value hedge. A derivative instrument that hedges a forecasted transaction or the variability of cash flows related to a recognized asset or liability is designated as a cash flow hedge.
Changes in the fair value of derivatives that are designated as fair value hedges are offset against changes in the fair value of the underlying hedged assets, liabilities or firm commitments. Gains and losses on derivatives that are designated as cash flow hedges are recorded as a component of Accumulated other comprehensive loss until the underlying hedged transactions are recognized in earnings. The foreign currency transaction gain or loss of our non-derivative financial instruments and the changes in the fair value of derivatives designated as hedges of our net investment in foreign operations and investments are recognized as a component of Accumulated other comprehensive loss along with the associated foreign currency translation adjustment of the foreign operation or investment. In certain hedges of our net investment in foreign operations and investments, we exclude forward points from the assessment of hedge effectiveness and we amortize the related amounts directly into earnings.
On an ongoing basis, we assess whether derivatives used in hedging transactions are "highly effective" in offsetting changes in the fair value or cash flow of hedged items. For our net investment hedges, we use the dollar offset method to measure effectiveness. For all other hedging programs, we use the long-haul method to assess hedge effectiveness using regression analysis for each hedge relationship. The methodology for assessing hedge effectiveness is applied on a consistent basis for each one of our hedging programs (i.e., interest rate, foreign currency ship construction, foreign currency net investment and fuel). For our regression analyses, we use an observation period of up to three years, utilizing market data relevant to the hedge horizon of each hedge relationship. High effectiveness is achieved when a statistically valid relationship reflects a high degree of offset and correlation between the changes in the fair values of the derivative instrument and the hedged item. If it is determined that a derivative is not highly effective as a hedge or hedge accounting is discontinued, any change in fair value of the derivative since the last date at which it was determined to be highly effective is recognized in earnings.
Cash flows from derivative instruments that are designated as fair value or cash flow hedges are classified in the same category as the cash flows from the underlying hedged items. In the event that hedge accounting is discontinued, cash flows subsequent to the date of discontinuance are classified within investing activities. Cash flows from derivative instruments not designated as hedging instruments are classified as investing activities. 
We consider the classification of the underlying hedged item’s cash flows in determining the classification for the designated derivative instrument’s cash flows. We classify derivative instrument cash flows from hedges of benchmark interest rate or hedges of fuel expense as operating activities due to the nature of the hedged item. Likewise, we classify derivative instrument cash flows from hedges of foreign currency risk on our newbuild ship payments as investing activities.
Interest Rate Risk
Our exposure to market risk for changes in interest rates primarily relates to our debt obligations, including future interest payments. At September 30, 2024 and December 31, 2023, approximately 91.4% and 83.2%, respectively, of our debt was effectively fixed-rate debt, which is net of our interest rate swap agreements. We use interest rate swap agreements to modify our exposure to interest rate movements and to manage our interest expense.
We use interest rate swap agreements that effectively convert a portion of our floating-rate debt to a fixed-rate basis to manage the market risk of increasing interest rates. At September 30, 2024 and December 31, 2023, we maintained interest rate swap agreements on the following floating-rate debt instruments:
Debt InstrumentSwap Notional as of September 30, 2024 (in millions)Maturity
Debt Floating Rate
All-in Fixed Rate as of September 30, 2024
Celebrity Reflection term loan
$27 October 2024Term SOFR plus0.40%2.88%
Quantum of the Seas term loan
153 October 2026Term SOFR plus1.30%3.78%
Anthem of the Seas term loan
181 April 2027Term SOFR plus1.30%3.90%
Ovation of the Seas term loan
277 April 2028Term SOFR plus1.00%3.20%
Harmony of the Seas term loan (1)
258 May 2028EURIBOR plus1.15%2.26%
Odyssey of the Seas term loan (2)
326 October 2032Term SOFR plus0.96%3.28%
Odyssey of the Seas term loan (2)
163 October 2032Term SOFR plus0.96%2.91%
$1,385 
(1)Interest rate swap agreements hedging the Euro-denominated term loan for Harmony of the Seas include EURIBOR zero-floors matching the hedged debt EURIBOR zero-floor. Amount presented is based on the exchange rate as of September 30, 2024.
(2)Interest rate swap agreements hedging the term loan of Odyssey of the Seas include Term SOFR zero-floors, Term SOFR with no floors, and Overnight SOFR.
These interest rate swap agreements are accounted for as cash flow hedges.
The notional amount of interest rate swap agreements related to outstanding debt as of September 30, 2024 and December 31, 2023 was $1.4 billion and $1.6 billion, respectively.
Foreign Currency Exchange Rate Risk
Derivative Instruments
Our primary exposure to foreign currency exchange rate risk relates to our ship construction contracts denominated in Euros, our foreign currency denominated debt, and our international business operations. We enter into foreign currency forward contracts to manage portions of the exposure to movements in foreign currency exchange rates. As of September 30, 2024, the aggregate cost of our ships on order was $5.9 billion, of which we had deposited $619 million as of such date. These amounts do not include any ships placed on order that are contingent upon completion of conditions precedent and/or financing and any ships on order by our Partner Brands. Refer to Note 8. Commitments and Contingencies, for further information on our ships on order. At September 30, 2024 and December 31, 2023, approximately 39.6% and 43.5%, respectively, of the aggregate cost of the ships under construction was exposed to fluctuations in the Euro exchange rate. Our foreign currency forward contract agreements are accounted for as cash flow or net investment hedges depending on the designation of the related hedge.
On a regular basis, we enter into foreign currency forward contracts and, from time to time, we utilize cross-currency swap agreements and collar options to minimize the volatility resulting from the remeasurement of net monetary assets and liabilities denominated in a currency other than our functional currency or the functional currencies of our foreign subsidiaries. During the third quarter of 2024 and 2023 the average notional amount of foreign currency forward contracts was approximately $989 million and $1.4 billion, respectively. These instruments are not designated as hedging instruments. For the quarters and nine months ended September 30, 2024 and 2023, changes in the fair value of the foreign currency forward contracts, and the remeasurement of monetary assets and liabilities denominated in foreign currencies resulted in immaterial gain (losses). These amounts were recognized in earnings within Other expense in our consolidated statements of comprehensive income (loss).
The notional amount of outstanding foreign exchange contracts, excluding the forward contracts entered into to minimize remeasurement volatility, as of September 30, 2024 and December 31, 2023 was $2.1 billion and $2.9 billion, respectively.
Non-Derivative Instruments
We consider our investments in our foreign operations to be denominated in relatively stable currencies and to be of a long-term nature. We address the exposure of our investments in foreign operations by denominating a portion of our debt in our subsidiaries’ and investments’ functional currencies and designating it as a hedge of these subsidiaries and investments. We had designated debt as a hedge of our net investments primarily in TUI Cruises of €791 million, or approximately $883 million, as of September 30, 2024. As of December 31, 2023, we had designated debt as a hedge of our net investments primarily in TUI Cruises of €648 million, or approximately $716 million.
Fuel Price Risk
Our exposure to market risk for changes in fuel prices relates primarily to the consumption of fuel on our ships. We use fuel swap agreements to mitigate the financial impact of fluctuations in fuel prices.
Our fuel swap agreements are generally accounted for as cash flow hedges. In the case that our hedged forecasted fuel consumption is not probable of occurring, hedge accounting will be discontinued and the related accumulated other comprehensive gain or loss will be reclassified to Other income (expense) immediately. For hedged forecasted fuel consumption that remains possible of occurring, hedge accounting will be discontinued and the related accumulated other comprehensive gain or loss will remain in accumulated other comprehensive gain or loss until the underlying hedged transactions are recognized in earnings or the related hedged forecasted fuel consumption is deemed probable of not occurring.
Changes in the fair value of fuel swaps for which cash flow hedge accounting was discontinued are currently recognized in Other expense for each reporting period through the maturity dates of the fuel swaps. For the quarters ended September 30, 2024 and September 30, 2023, we did not discontinue cash flow hedge accounting on any of our fuel swap agreements.
At September 30, 2024, we have hedged the variability in future cash flows for certain forecasted fuel transactions occurring through 2027. As of September 30, 2024 and December 31, 2023, we had the following outstanding fuel swap agreements:
 Fuel Swap Agreements
 As of September 30, 2024As of December 31, 2023
Designated as hedges:(metric tons)
2024263,600 1,054,501 
20251,031,449 685,400 
2026786,750 44,200 
2027182,049 — 
 Fuel Swap Agreements
 As of September 30, 2024As of December 31, 2023
Designated hedges as a % of projected fuel purchases:(% hedged)
202461 %61 %
202560 %39 %
202644 %3 %
202710 %— %

As of September 30, 2024, there was $38 million of estimated unrealized net loss associated with our cash flow hedges pertaining to fuel swap agreements that is expected to be reclassified to earnings from Accumulated other comprehensive loss within the next twelve months when compared to $21 million of estimated unrealized net loss at December 31, 2023. Reclassification is expected to occur as the result of fuel consumption associated with our hedged forecasted fuel purchases.
The fair value and line item caption of derivative instruments recorded within our consolidated balance sheets were as follows (in millions):
Fair Value of Derivative Instruments
Asset DerivativesLiability Derivatives
Balance Sheet LocationAs of September 30, 2024As of December 31, 2023Balance Sheet LocationAs of September 30, 2024As of December 31, 2023
Fair ValueFair ValueFair ValueFair Value
Derivatives designated as hedging instruments under ASC 815-20(1)
Interest rate-swapsDerivative financial instruments$— 1 Derivative financial instruments$— $— 
Interest rate swapsOther assets46 75 Other long-term liabilities— — 
Foreign currency forward contractsDerivative financial instruments38 20 Derivative financial instruments4 9 
Foreign currency forward contractsOther assets25 44 Other long-term liabilities— 4 
Fuel swapsDerivative financial instruments2 4 Derivative financial instruments40 26 
Fuel swapsOther assets1 — Other long-term liabilities44 27 
Total derivatives designated as hedging instruments under 815-20$112 $144 $88 $66 
(1)Subtopic 815-20 “Hedging-General” under ASC 815.
The carrying value and line item caption of non-derivative instruments designated as hedging instruments recorded within our consolidated balance sheets were as follows (in millions):
Carrying Value
Non-derivative instrument designated as
hedging instrument under ASC 815-20		Balance Sheet LocationAs of September 30, 2024As of December 31, 2023
Foreign currency debtCurrent portion of long-term debt$65 $65 
Foreign currency debtLong-term debt818 523 
$883 $588 

The effect of derivative instruments qualifying and designated as cash flow hedging instruments on the consolidated financial statements was as follows (in millions):
Derivatives under ASC 815-20 Cash Flow Hedging RelationshipsAmount of Gain (Loss) Recognized in
Accumulated Other
Comprehensive Loss on Derivatives 
Quarter Ended September 30, 2024Quarter Ended September 30, 2023Nine Months Ended September 30, 2024Nine Months Ended September 30, 2023
Interest rate swaps$(20)$23 $8 $35 
Foreign currency forward contracts67 (134)(36)(120)
Fuel swaps(133)158 (18)91 
 $(86)$47 $(46)$6 

The effect of non-derivative instruments qualifying and designated as net investment hedging instruments on the consolidated financial statements was as follows (in millions):
Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss)
Non-derivative instruments under ASC 815-20 Net
Investment Hedging Relationships		Quarter Ended September 30, 2024Quarter Ended September 30, 2023Nine Months Ended September 30, 2024Nine Months Ended September 30, 2023
Foreign Currency Debt$(35)$18 $(13)$7 
 $(35)$18 $(13)$7 
The effect of derivatives not designated as hedging instruments on the consolidated financial statements was as follows (in millions):

  
Amount of (Loss) Gain Recognized in Income on Derivatives
Derivatives Not Designated as Hedging
Instruments under ASC 815-20		Location of
Gain (Loss) Recognized in
Income on Derivatives		Quarter Ended September 30, 2024Quarter Ended September 30, 2023Nine Months Ended September 30, 2024Nine Months Ended September 30, 2023
Foreign currency forward contractsOther income (expense)$33 $(43)$(8)$(30)
Fuel swapsOther income (expense)— 1 — 1 
  $33 $(42)$(8)$(29)

Credit Related Contingent Features
Our current interest rate derivative instruments require us to post collateral if our Standard & Poor’s and Moody’s credit ratings fall below specified levels. Specifically, under most of our agreements, if on the fifth anniversary of executing a derivative instrument, or on any succeeding fifth-year anniversary, our credit ratings for our senior unsecured debt is rated below BBB- by Standard & Poor’s and Baa3
by Moody’s, then the counterparty will periodically have the right to demand that we post collateral in an amount equal to the difference between (i) the net market value of all derivative transactions with such counterparty that have reached their fifth year anniversary, to the extent negative, and (ii) the applicable minimum call amount.
The amount of collateral required to be posted will change as, and to the extent, our net liability position increases or decreases by more than the applicable minimum call amount. If our credit rating for our senior unsecured debt is subsequently equal to or above BBB- by Standard & Poor’s or Baa3 by Moody’s, then any collateral posted at such time will be released to us and we will no longer be required to post collateral unless we meet the collateral trigger requirement, generally, at the next fifth-year anniversary.
As of September 30, 2024, our senior unsecured debt credit rating was BB+ by Standard & Poor's and Ba2 by Moody's. As of September 30, 2024, six of our ship debt interest rate derivative hedges had reached their fifth-year anniversary; however, the net market value for these derivative hedges were in a net asset position, and accordingly, we were not required to post any collateral as of such date.
v3.24.3
Pay vs Performance Disclosure - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Pay vs Performance Disclosure        
Net Income (Loss) $ 1,111 $ 1,009 $ 2,325 $ 1,420
v3.24.3
Insider Trading Arrangements
 3 Months Ended
Sep. 30, 2024
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.24.3
Summary of Significant Accounting Policies (Policies)
 9 Months Ended
Sep. 30, 2024
Accounting Policies [Abstract]  
Basis for Preparation of Consolidated Financial Statements
Basis for Preparation of Consolidated Financial Statements
The unaudited consolidated financial statements are presented pursuant to the rules and regulations of the Securities and Exchange Commission. In our opinion, these statements include all adjustments necessary for a fair statement of the results of the interim periods reported herein. Adjustments consist only of normal recurring items, except for any items discussed in the notes below. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted as permitted by such Securities and Exchange Commission rules and regulations. Estimates are required for the preparation of financial statements in accordance with these principles. Actual results could differ from these estimates. Refer to Note 2. Summary of Significant Accounting Policies in this Quarterly Report on Form 10-Q and in our Annual Report on Form 10-K for the year ended December 31, 2023 for a discussion of our significant accounting policies. The Company has changed its presentation from thousands to millions and, as a result, any necessary rounding adjustments have been made to prior period disclosed amounts.
Basis of Consolidation All significant intercompany accounts and transactions are eliminated in consolidation. We consolidate entities over which we have control, usually evidenced by a direct ownership interest of greater than 50%, and variable interest entities where we are determined to be the primary beneficiary. Refer to Note 5. 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.
Recent Accounting Pronouncements
Recent Accounting Pronouncements
In August 2023, the FASB issued ASU No. 2023-05, Business Combinations - Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement. This ASU provides guidance requiring a joint venture to initially measure all contributions received upon its formation at fair value. The guidance is intended to provide users of joint venture financial statements with more decision-useful information. This ASU is effective for joint venture entities with a formation date on or after January 1, 2025 on a prospective basis. Early adoption is permitted, and joint ventures formed prior to the adoption date may elect to apply the new guidance retrospectively back to their original formation date. We are currently evaluating the impact of the new guidance on our consolidated financial statements.
In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This ASU requires enhanced disclosures about significant segment expenses and other segment items and requires companies to disclose all annual disclosures about segments in interim periods. This ASU also requires public entities with a single reportable segment to provide all the disclosures required by the amendments in this ASU and all existing segment disclosures in Topic 280. The amendments in this ASU are intended to improve financial reporting by requiring disclosure of incremental segment information on an annual and interim basis for all public entities to enable investors to develop more decision-useful financial analyses. The amendments in this ASU are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted and the amendments should be applied retrospectively to all periods presented. We are currently evaluating the impact of these amendments on our disclosures, but this standard update will not impact our financial condition and results of operations.
In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The new guidance is intended to enhance the transparency and decision usefulness of income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. This ASU is effective for annual periods beginning after December 15, 2024 on a prospective basis. Early adoption and retrospective application is permitted. We are currently evaluating the impact of the new guidance on our consolidated financial statements and related disclosures.
v3.24.3
Revenue (Tables)
 9 Months Ended
Sep. 30, 2024
Revenue from Contract with Customer [Abstract]  
Schedule of Disaggregation of Revenue
The following table disaggregates our total revenues by geographic regions where we provide cruise itineraries (in millions):
Quarter Ended September 30,Nine Months Ended September 30,
2024202320242023
Revenues by itinerary
North America (1)$2,862 $2,275 $8,126 $6,621 
Asia/Pacific156 118 897 590 
Europe1,435 1,375 2,298 2,272 
Other regions (2)184 182 784 581 
Total revenues by itinerary4,637 3,950 12,105 10,064 
Other revenues (3)249 210 619 505 
Total revenues$4,886 $4,160 $12,724 $10,569 
(1)Includes the United States, Canada, Mexico and the Caribbean.
(2) Includes seasonality impacted itineraries primarily in South and Latin American countries.
(3) Includes revenues primarily related to cancellation fees, vacation protection insurance, pre- and post-cruise tours and fees for operating certain port facilities. Amounts also include revenues related to procurement and management related services we perform on behalf of our unconsolidated affiliates. Refer to Note 5. Investments and Other Assets for more information on our unconsolidated affiliates.For the quarters and nine months ended September 30, 2024 and 2023, our guests were sourced from the following areas:
Quarter Ended September 30,
20242023
Passenger ticket revenues:
United States 74 %72 %
United Kingdom8 %10 %
All other countries (1)18 %18 %

Nine Months Ended September 30,
20242023
Passenger ticket revenues:
United States75 %74 %
All other countries (1)25 %26 %
(1)No other individual country's revenue exceeded 10% for the quarters and nine months ended September 30, 2024 and 2023.
v3.24.3
Earnings Per Share (Tables)
 9 Months Ended
Sep. 30, 2024
Earnings Per Share [Abstract]  
Schedule of Basic and Diluted Earnings Per Share
Basic and diluted earnings per share is as follows (in millions, except per share data):
Quarter Ended September 30,Nine Months Ended September 30,
 2024202320242023
Net Income attributable to Royal Caribbean Cruises Ltd. for basic earnings per share$1,111 $1,009 $2,325 $1,420 
Add convertible notes interest and inducement expense— 20 169 68 
Net Income attributable to Royal Caribbean Cruises Ltd. for diluted earnings per share1,111 1,029 2,494 1,488 
Weighted-average common shares outstanding263 256 259 256 
Dilutive effect of stock-based awards1 1 1 1 
Dilutive effect of convertible notes— 25 20 27 
Diluted weighted-average shares outstanding264 282 280 284 
Basic earnings per share$4.22 $3.94 $8.98 $5.55 
Diluted earnings per share$4.21 $3.65 $8.91 $5.24 
v3.24.3
Investments and Other Assets (Tables)
 9 Months Ended
Sep. 30, 2024
Other Assets [Abstract]  
Schedule of Investments Accounted for Equity Method of Accounting
The following tables set forth information regarding our investments accounted for under the equity method of accounting, including the entities discussed above (in millions):
Quarter Ended September 30,Nine Months Ended September 30,
2024202320242023
Share of equity income from investments$106 $87 $203 $149 
Schedule of Notes Receivable Due from Equity Investments
As of September 30, 2024As of December 31, 2023
Total notes receivable due from equity investments$133 $105 
Less-current portion (1)18 19 
Long-term portion (2)$115 $86 
(1)Included within Trade and other receivables, net in our consolidated balance sheets.
(2)Included within Other assets in our consolidated balance sheets.
Schedule of Credit Loss Allowance Related to Receivables
The following table summarizes our credit loss allowance related to receivables (in millions):
Nine Months Ended September 30,
20242023
Balance, beginning of period$49 $83 
Credit loss (recovery), net1 (10)
Write-offs— (3)
Balance, end of period$50 $70 
v3.24.3
Debt (Tables)
 9 Months Ended
Sep. 30, 2024
Debt Disclosure [Abstract]  
Schedule of Long-Term Debt
Debt consists of the following (in millions):
Weighted Average Rate (1)
Maturities ThroughAs of September 30, 2024As of December 31, 2023
Fixed rate debt:
Unsecured senior notes
5.59%
2026 - 2033$9,699 $7,899 
Secured senior notes
—%
2029— 1,000 
Unsecured term loans
3.25%
2027 - 20368,024 6,569 
Convertible notes
6.00%
2025323 1,150 
Total fixed rate debt18,046 16,618 
Variable rate debt:
Unsecured revolving credit facilities (2)
6.48%
2026 - 2028210 899 
USD unsecured term loan
6.52%
2024 - 20372,522 3,666 
Euro unsecured term loan
4.95%
2028261 443 
Total variable rate debt2,993 5,008 
Finance lease liabilities350 369 
Total debt (3)
21,389 21,995 
Less: unamortized debt issuance costs(549)(543)
Total debt, net of unamortized debt issuance costs20,840 21,452 
Less—current portion (1,868)(1,720)
Long-term portion$18,972 $19,732 
(1) Weighted average interest rates are based on outstanding loan balance as of September 30, 2024, and for variable rate debt include either EURIBOR or Term SOFR plus the applicable margin.
(2) Advances under our unsecured revolving credit facilities accrue interest at Term SOFR plus a 0.10% credit adjustment spread plus an interest rate margin of 1.33%. Based on applicable Term SOFR rates, as of September 30, 2024, the interest rate under the unsecured credit facilities was 6.28%. We also pay a facility fee of 0.17% of the total commitments under such facility.
(3) At September 30, 2024 and December 31, 2023, the weighted average interest rate for total debt was 5.27% and 6.06%, respectively.
Schedule of Maturities of Long-Term Debt
The following is a schedule of annual maturities on our total debt, including finance leases, as of September 30, 2024 for each of the next five years (in millions):
Year
As of September 30, 2024 (1)
Remainder of 2024$717 
20251,613 
20262,937 
20272,609 
20283,414 
Thereafter10,099 
$21,389 
(1)    Debt denominated in other currencies is calculated based on the applicable exchange rate at September 30, 2024.
v3.24.3
Leases (Tables)
 9 Months Ended
Sep. 30, 2024
Leases [Abstract]  
Schedule of Components of Lease Expense, Weighted Average Lease Terms and Discount Rates and Supplemental Cash Flow Information
The components of lease expense were as follows (in millions):
Consolidated Statement of Comprehensive Income (Loss) ClassificationQuarter Ended September 30, 2024Nine Months Ended September 30, 2024
Lease costs:
Operating lease costsCommission, transportation and other$38 $151 
Operating lease costsOther operating expenses4 11 
Operating lease costsMarketing, selling and administrative expenses5 14 
Financial lease costs:
Amortization of right-of-use-assetsDepreciation and amortization expenses3 10 
Interest on lease liabilitiesInterest expense, net of interest capitalized7 22 
Total lease costs$57 $208 

Consolidated Statement of Comprehensive Income (Loss) ClassificationQuarter Ended September 30, 2023Nine Months Ended September 30, 2023
Lease costs:
Operating lease costsCommission, transportation and other$33 $128 
Operating lease costsOther operating expenses6 17 
Operating lease costsMarketing, selling and administrative expenses5 16 
Financial lease costs:
Amortization of right-of-use-assetsDepreciation and amortization expenses6 17 
Interest on lease liabilitiesInterest expense, net of interest capitalized8 22 
Total lease costs$58 $200 
The weighted average of the remaining lease terms and weighted average discount rates are as follows:
As of September 30, 2024As of December 31, 2023
Weighted average of the remaining lease term in years
Operating leases18.6519.43
Finance leases24.0423.92
Weighted average discount rate
Operating leases7.28 %7.53 %
Finance leases5.86 %5.83 %
Supplemental cash flow information related to leases is as follows (in millions):
Nine Months Ended September 30, 2024Nine Months Ended September 30, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$178 $131 
Operating cash flows from finance leases$22 $22 
Financing cash flows from finance leases$19 $25 
Schedule of Maturities of Operating Lease Liability
As of September 30, 2024, maturities related to lease liabilities were as follows (in millions):
YearOperating LeasesFinance Leases
Remainder of 2024$31 $239 
2025113 15 
2026107 10 
2027104 9 
2028100 9 
Thereafter1,062 495 
Total lease payments1,517 777 
Less: Interest(801)(427)
Present value of lease liabilities$716 $350 
Schedule of Maturities of Finance Lease Liability
As of September 30, 2024, maturities related to lease liabilities were as follows (in millions):
YearOperating LeasesFinance Leases
Remainder of 2024$31 $239 
2025113 15 
2026107 10 
2027104 9 
2028100 9 
Thereafter1,062 495 
Total lease payments1,517 777 
Less: Interest(801)(427)
Present value of lease liabilities$716 $350 
v3.24.3
Commitments and Contingencies (Tables)
 9 Months Ended
Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Future Capital Commitments As of September 30, 2024, the dates that the ships on order by our Global and Partner Brands are expected to be delivered, subject to change in the event of construction delays, and their approximate berths are as follows:
ShipShipyardExpected deliveryApproximate
Berths
Royal Caribbean International —
Icon-class:
Star of the SeasMeyer Turku Oy3rd Quarter 20255,600
UnnamedMeyer Turku Oy2nd Quarter 20265,600
Celebrity Cruises —
Edge-class:
Celebrity XcelChantiers de l'Atlantique4th Quarter 20253,250
TUI Cruises (50% joint venture) —
Mein Schiff RelaxFincantieri1st Quarter 20254,100
UnnamedFincantieri2nd Quarter 20264,100
Total Berths22,650
v3.24.3
Changes in Accumulated Other Comprehensive Loss (Tables)
 9 Months Ended
Sep. 30, 2024
Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Schedule of Changes in Accumulated Other Comprehensive Loss by Component
The following table presents the changes in accumulated other comprehensive loss by component for the nine months ended September 30, 2024 and 2023 (in millions):
Accumulated Other Comprehensive Loss for the Nine Months Ended September 30, 2024Accumulated Other Comprehensive Loss for the Nine Months Ended September 30, 2023
 Changes related to cash flow derivative hedgesChanges in defined benefit plansForeign currency translation adjustmentsAccumulated other comprehensive lossChanges related to cash flow derivative hedgesChanges in defined benefit plansForeign currency translation adjustmentsAccumulated other comprehensive loss
Accumulated comprehensive loss at beginning of the year$(666)$(2)$(6)$(674)$(638)$(8)$3 $(643)
Other comprehensive income (loss) before reclassifications(46)3 — (43)6 4 2 12 
Amounts reclassified from accumulated other comprehensive loss(36)— — (36)(13)— — (13)
Net current-period other comprehensive income (loss)(82)3 — (79)(7)4 2 (1)
Ending balance$(748)$1 $(6)$(753)$(645)$(4)$5 $(644)
Schedule of Reclassifications Out of Accumulated Other Comprehensive Loss
The following table presents reclassifications out of accumulated other comprehensive loss for the quarters and nine months ended September 30, 2024 and 2023 (in millions):
 Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income 
Details About Accumulated Other Comprehensive Loss ComponentsQuarter Ended September 30, 2024Quarter Ended September 30, 2023Nine Months Ended September 30, 2024Nine Months Ended September 30, 2023Affected Line Item in Statements of
Comprehensive Income (Loss)
Gain (loss) on cash flow derivative hedges:  
Interest rate swaps$11 $15 $36 $35 Interest expense, net of interest capitalized
Foreign currency forward contracts(6)(4)(17)(13)Depreciation and amortization expenses
Foreign currency forward contracts— — — (10)Other (expense) income
Fuel swaps3 16 17 1 Fuel
 $8 $27 $36 $13  
v3.24.3
Fair Value Measurements and Derivative Instruments (Tables)
 9 Months Ended
Sep. 30, 2024
Derivative Instruments  
Schedule of Estimated Fair Value of Financial Instruments Not Measured at Fair Value on Recurring Basis
The estimated fair value of our financial instruments that are not measured at fair value, categorized based upon the fair value hierarchy, are as follows (in millions): 
Fair Value Measurements at September 30, 2024Fair Value Measurements at December 31, 2023
DescriptionTotal Carrying AmountTotal Fair Value
Level 1(1)
Level 2(2)
Level 3(3)
Total Carrying AmountTotal Fair Value
Level 1(1)
Level 2(2)
Level 3(3)
Assets:
Cash and cash equivalents(4)
$418 $418 $418 $— $— $497 $497 $497 $— $— 
Total Assets$418 $418 $418 $— $— $497 $497 $497 $— $— 
Liabilities:
Long-term debt (including current portion of debt)(5)
$20,490 $21,968 $— $21,968 $— $21,083 $23,700 $— $23,700 $— 
Total Liabilities$20,490 $21,968 $— $21,968 $— $21,083 $23,700 $— $23,700 $— 
(1) Inputs based on quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access. Valuation of these items does not entail a significant amount of judgment.
(2) Inputs other than quoted prices included within Level 1 that are observable for the liability, either directly or indirectly. For unsecured revolving credit facilities and unsecured term loans, fair value is determined utilizing the income valuation approach. This valuation model takes into account the contract terms of our debt such as the debt maturity and the interest rate on the debt. The valuation model also takes into account the creditworthiness of the Company. We valued our senior notes and convertible notes using a quoted market price, which is considered a Level 2 input as it is observable in the market; however, these instruments have a limited trading volume and as such this fair value estimate is not necessarily indicative of the value at which the instruments could be retired or transferred.
(3) Inputs that are unobservable. The Company did not use any Level 3 inputs as of September 30, 2024 and December 31, 2023.
(4) Consists of cash and marketable securities with original maturities of less than 90 days.
(5) Consists of unsecured revolving credit facilities, senior notes, term loans and convertible notes. These amounts do not include our finance lease obligations.
Schedule of Assets and Liabilities Recorded at Fair Value on Recurring Basis
Assets and liabilities that are recorded at fair value have been categorized based upon the fair value hierarchy. The following table presents information about the Company’s financial instruments recorded at fair value on a recurring basis (in millions):
 Fair Value Measurements at September 30, 2024Fair Value Measurements at December 31, 2023
DescriptionTotal
Level 1(1)
Level 2(2)
Level 3(3)
Total
Level 1(1)
Level 2(2)
Level 3(3)
Assets:        
Derivative financial instruments(4)
$112 $— $112 $— $144 $— $144 $— 
Total Assets$112 $— $112 $— $144 $— $144 $— 
Liabilities:        
Derivative financial instruments(4)
$88 $— $88 $— $66 $— $66 $— 
Total Liabilities$88 $— $88 $— $66 $— $66 $— 
(1)Inputs based on quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access. Valuation of these items does not entail a significant amount of judgment. No Level 1 inputs were used in fair value measurements of other financial instruments as of September 30, 2024 and December 31, 2023.
(2)Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. For foreign currency forward contracts, interest rate swaps and fuel swaps, fair value is derived using valuation models that utilize the income valuation approach. These valuation models take into account the contract terms, such as maturity, as well as other inputs, such as foreign exchange rates and curves, fuel types, fuel curves and interest rate yield curves. Derivative instrument fair values take into account the creditworthiness of the counterparty and the Company.
(3)Inputs that are unobservable. No Level 3 inputs were used in fair value measurements of other financial instruments as of September 30, 2024 and December 31, 2023.
(4)Consists of foreign currency forward contracts, interest rate and fuel swaps. Refer to the "Fair Value of Derivative Instruments" table for breakdown by instrument type.
Schedule of Offsetting Assets
The following table presents information about the Company’s offsetting of financial assets and liabilities under master netting agreements with derivative counterparties (in millions):

Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements
As of September 30, 2024As of December 31, 2023
Gross Amount of Derivative Assets Presented in the Consolidated Balance SheetGross Amount of Eligible Offsetting
Recognized
Derivative Liabilities		Cash Collateral
Received		Net Amount of
Derivative Assets		Gross Amount of Derivative Assets Presented in the Consolidated Balance SheetGross Amount of Eligible Offsetting
Recognized
Derivative Liabilities		Cash Collateral
Received 		Net Amount of
Derivative Assets
Derivatives subject to master netting agreements$112 $(34)$— $78 $144 $(28)$— $116 
Total$112 $(34)$— $78 $144 $(28)$— $116 
Gross Amount of Derivative Liabilities Presented in the Consolidated Balance SheetGross Amount of Eligible Offsetting
Recognized
Derivative Assets		Cash Collateral
Pledged		Net Amount of
Derivative Liabilities		Gross Amount of Derivative Liabilities Presented in the Consolidated Balance SheetGross Amount of Eligible Offsetting
Recognized
Derivative Assets		Cash Collateral
Pledged		Net Amount of
Derivative Liabilities
Derivatives subject to master netting agreements$(88)$34 $— $(54)$(66)$28 $— $(38)
Total$(88)$34 $— $(54)$(66)$28 $— $(38)
Schedule of Offsetting Liabilities
The following table presents information about the Company’s offsetting of financial assets and liabilities under master netting agreements with derivative counterparties (in millions):

Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements
As of September 30, 2024As of December 31, 2023
Gross Amount of Derivative Assets Presented in the Consolidated Balance SheetGross Amount of Eligible Offsetting
Recognized
Derivative Liabilities		Cash Collateral
Received		Net Amount of
Derivative Assets		Gross Amount of Derivative Assets Presented in the Consolidated Balance SheetGross Amount of Eligible Offsetting
Recognized
Derivative Liabilities		Cash Collateral
Received 		Net Amount of
Derivative Assets
Derivatives subject to master netting agreements$112 $(34)$— $78 $144 $(28)$— $116 
Total$112 $(34)$— $78 $144 $(28)$— $116 
Gross Amount of Derivative Liabilities Presented in the Consolidated Balance SheetGross Amount of Eligible Offsetting
Recognized
Derivative Assets		Cash Collateral
Pledged		Net Amount of
Derivative Liabilities		Gross Amount of Derivative Liabilities Presented in the Consolidated Balance SheetGross Amount of Eligible Offsetting
Recognized
Derivative Assets		Cash Collateral
Pledged		Net Amount of
Derivative Liabilities
Derivatives subject to master netting agreements$(88)$34 $— $(54)$(66)$28 $— $(38)
Total$(88)$34 $— $(54)$(66)$28 $— $(38)
Schedule of Outstanding Fuel Swap Agreements As of September 30, 2024 and December 31, 2023, we had the following outstanding fuel swap agreements:
 Fuel Swap Agreements
 As of September 30, 2024As of December 31, 2023
Designated as hedges:(metric tons)
2024263,600 1,054,501 
20251,031,449 685,400 
2026786,750 44,200 
2027182,049 — 
 Fuel Swap Agreements
 As of September 30, 2024As of December 31, 2023
Designated hedges as a % of projected fuel purchases:(% hedged)
202461 %61 %
202560 %39 %
202644 %3 %
202710 %— %
Schedule of Fair Value and Line Item Caption of Derivative Instruments
The fair value and line item caption of derivative instruments recorded within our consolidated balance sheets were as follows (in millions):
Fair Value of Derivative Instruments
Asset DerivativesLiability Derivatives
Balance Sheet LocationAs of September 30, 2024As of December 31, 2023Balance Sheet LocationAs of September 30, 2024As of December 31, 2023
Fair ValueFair ValueFair ValueFair Value
Derivatives designated as hedging instruments under ASC 815-20(1)
Interest rate-swapsDerivative financial instruments$— 1 Derivative financial instruments$— $— 
Interest rate swapsOther assets46 75 Other long-term liabilities— — 
Foreign currency forward contractsDerivative financial instruments38 20 Derivative financial instruments4 9 
Foreign currency forward contractsOther assets25 44 Other long-term liabilities— 4 
Fuel swapsDerivative financial instruments2 4 Derivative financial instruments40 26 
Fuel swapsOther assets1 — Other long-term liabilities44 27 
Total derivatives designated as hedging instruments under 815-20$112 $144 $88 $66 
(1)Subtopic 815-20 “Hedging-General” under ASC 815.
Schedule of Carrying Value and Line Item Caption of Non-Derivative Instruments Designated as Hedging Instruments
The carrying value and line item caption of non-derivative instruments designated as hedging instruments recorded within our consolidated balance sheets were as follows (in millions):
Carrying Value
Non-derivative instrument designated as
hedging instrument under ASC 815-20		Balance Sheet LocationAs of September 30, 2024As of December 31, 2023
Foreign currency debtCurrent portion of long-term debt$65 $65 
Foreign currency debtLong-term debt818 523 
$883 $588 
Schedule of Non-Derivative Instruments Designated as Net Investment Hedging Instruments
The effect of non-derivative instruments qualifying and designated as net investment hedging instruments on the consolidated financial statements was as follows (in millions):
Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss)
Non-derivative instruments under ASC 815-20 Net
Investment Hedging Relationships		Quarter Ended September 30, 2024Quarter Ended September 30, 2023Nine Months Ended September 30, 2024Nine Months Ended September 30, 2023
Foreign Currency Debt$(35)$18 $(13)$7 
 $(35)$18 $(13)$7 
Not Designated as Hedging Instrument  
Derivative Instruments  
Schedule of Effect of Derivative Instruments Designated and Not Designated as Cash Flow Hedging Instruments
The effect of derivatives not designated as hedging instruments on the consolidated financial statements was as follows (in millions):

  
Amount of (Loss) Gain Recognized in Income on Derivatives
Derivatives Not Designated as Hedging
Instruments under ASC 815-20		Location of
Gain (Loss) Recognized in
Income on Derivatives		Quarter Ended September 30, 2024Quarter Ended September 30, 2023Nine Months Ended September 30, 2024Nine Months Ended September 30, 2023
Foreign currency forward contractsOther income (expense)$33 $(43)$(8)$(30)
Fuel swapsOther income (expense)— 1 — 1 
  $33 $(42)$(8)$(29)
Cash Flow Hedge  
Derivative Instruments  
Schedule of Interest Rate Derivatives At September 30, 2024 and December 31, 2023, we maintained interest rate swap agreements on the following floating-rate debt instruments:
Debt InstrumentSwap Notional as of September 30, 2024 (in millions)Maturity
Debt Floating Rate
All-in Fixed Rate as of September 30, 2024
Celebrity Reflection term loan
$27 October 2024Term SOFR plus0.40%2.88%
Quantum of the Seas term loan
153 October 2026Term SOFR plus1.30%3.78%
Anthem of the Seas term loan
181 April 2027Term SOFR plus1.30%3.90%
Ovation of the Seas term loan
277 April 2028Term SOFR plus1.00%3.20%
Harmony of the Seas term loan (1)
258 May 2028EURIBOR plus1.15%2.26%
Odyssey of the Seas term loan (2)
326 October 2032Term SOFR plus0.96%3.28%
Odyssey of the Seas term loan (2)
163 October 2032Term SOFR plus0.96%2.91%
$1,385 
(1)Interest rate swap agreements hedging the Euro-denominated term loan for Harmony of the Seas include EURIBOR zero-floors matching the hedged debt EURIBOR zero-floor. Amount presented is based on the exchange rate as of September 30, 2024.
(2)Interest rate swap agreements hedging the term loan of Odyssey of the Seas include Term SOFR zero-floors, Term SOFR with no floors, and Overnight SOFR.
Schedule of Effect of Derivative Instruments Designated and Not Designated as Cash Flow Hedging Instruments
The effect of derivative instruments qualifying and designated as cash flow hedging instruments on the consolidated financial statements was as follows (in millions):
Derivatives under ASC 815-20 Cash Flow Hedging RelationshipsAmount of Gain (Loss) Recognized in
Accumulated Other
Comprehensive Loss on Derivatives 
Quarter Ended September 30, 2024Quarter Ended September 30, 2023Nine Months Ended September 30, 2024Nine Months Ended September 30, 2023
Interest rate swaps$(20)$23 $8 $35 
Foreign currency forward contracts67 (134)(36)(120)
Fuel swaps(133)158 (18)91 
 $(86)$47 $(46)$6 
v3.24.3
General (Details)
Sep. 30, 2024
brand
ship
destination
country
continent
Schedule of Equity Method Investments [Line Items]  
Number of cruise brands | brand 3
Number of cruise ships | ship 68
Number of destinations (more than) | destination 1,000
Number of countries (over) | country 120
Number of continents | continent 7
TUI Cruises  
Schedule of Equity Method Investments [Line Items]  
Investment in a joint venture, percentage of interest 50.00%
v3.24.3
Revenue - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Dec. 31, 2023
Capitalized Contract Cost [Line Items]          
Passenger ticket revenues $ 4,886 $ 4,160 $ 12,724 $ 10,569  
Contract liability 2,600   2,600   $ 2,600
Customer deposit 253   253    
Contract asset 162   162   167
Commission, transportation and other          
Capitalized Contract Cost [Line Items]          
Capitalized contract costs 263   263   $ 257
Port Costs          
Capitalized Contract Cost [Line Items]          
Passenger ticket revenues $ 313 $ 252 $ 822 $ 682  
Minimum          
Capitalized Contract Cost [Line Items]          
Duration of cruises     3 days    
Maximum          
Capitalized Contract Cost [Line Items]          
Duration of cruises     14 days    
v3.24.3
Revenue - Schedule of Disaggregation of Revenue (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Disaggregation of Revenue [Line Items]        
Total revenues $ 4,886 $ 4,160 $ 12,724 $ 10,569
Cruise Itinerary        
Disaggregation of Revenue [Line Items]        
Total revenues 4,637 3,950 12,105 10,064
Cruise Itinerary | North America        
Disaggregation of Revenue [Line Items]        
Total revenues [1] 2,862 2,275 8,126 6,621
Cruise Itinerary | Asia/Pacific        
Disaggregation of Revenue [Line Items]        
Total revenues 156 118 897 590
Cruise Itinerary | Europe        
Disaggregation of Revenue [Line Items]        
Total revenues 1,435 1,375 2,298 2,272
Cruise Itinerary | Other Regions        
Disaggregation of Revenue [Line Items]        
Total revenues [2] 184 182 784 581
Other Revenues        
Disaggregation of Revenue [Line Items]        
Total revenues [3] $ 249 $ 210 $ 619 $ 505
Passenger Ticket | Other Regions        
Disaggregation of Revenue [Line Items]        
Percentage of revenues by country [4] 18.00% 18.00% 25.00% 26.00%
Passenger Ticket | United States        
Disaggregation of Revenue [Line Items]        
Percentage of revenues by country 74.00% 72.00% 75.00% 74.00%
Passenger Ticket | United Kingdom        
Disaggregation of Revenue [Line Items]        
Percentage of revenues by country 8.00% 10.00%    
[1] Includes the United States, Canada, Mexico and the Caribbean.
[2] Includes seasonality impacted itineraries primarily in South and Latin American countries.
[3] Includes revenues primarily related to cancellation fees, vacation protection insurance, pre- and post-cruise tours and fees for operating certain port facilities. Amounts also include revenues related to procurement and management related services we perform on behalf of our unconsolidated affiliates. Refer to Note 5. Investments and Other Assets for more information on our unconsolidated affiliates.
[4] No other individual country's revenue exceeded 10% for the quarters and nine months ended September 30, 2024 and 2023.
v3.24.3
Earnings Per Share - Schedule of Basic and Diluted Earnings Per Share (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Earnings Per Share [Abstract]        
Net Income attributable to Royal Caribbean Cruises Ltd. for basic earnings per share $ 1,111 $ 1,009 $ 2,325 $ 1,420
Add convertible notes interest and inducement expense 0 20 169 68
Net Income attributable to Royal Caribbean Cruises Ltd. for diluted earnings per share $ 1,111 $ 1,029 $ 2,494 $ 1,488
Weighted-average common shares outstanding (in shares) 263 256 259 256
Dilutive effect of stock-based awards (in shares) 1 1 1 1
Dilutive effect of convertible notes (in shares) 0 25 20 27
Diluted weighted-average shares outstanding (in shares) 264 282 280 284
Basic earnings per share (in dollars per share) $ 4.22 $ 3.94 $ 8.98 $ 5.55
Diluted earnings per share (in dollars per share) $ 4.21 $ 3.65 $ 8.91 $ 5.24
v3.24.3
Earnings Per Share - Narrative (Details) - shares
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Earnings Per Share [Abstract]        
Antidilutive securities (in shares) 14,706,077 0 0 0
v3.24.3
Investments and Other Assets - Narrative (Details)
€ in Millions, $ in Millions
 1 Months Ended 3 Months Ended 9 Months Ended 12 Months Ended
Apr. 30, 2016
Mar. 31, 2023
USD ($)
Sep. 30, 2024
USD ($)
Sep. 30, 2023
USD ($)
Dec. 31, 2023
USD ($)
floating_drydock
entity
Sep. 30, 2024
EUR (€)
Dec. 31, 2023
EUR (€)
entity
Investments in and Advances to Affiliates [Line Items]              
Proceeds from sale of noncontrolling interest     $ 0 $ 209      
Credit loss     1 (10)      
Property, Plant and Equipment              
Investments in and Advances to Affiliates [Line Items]              
Credit loss     $ 42 $ 63      
Port of Miami              
Investments in and Advances to Affiliates [Line Items]              
Percentage of investment sold   80.00%     80.00%   80.00%
Proceeds from sale of noncontrolling interest   $ 209          
Port of Miami | Variable Interest Entity, Primary Beneficiary              
Investments in and Advances to Affiliates [Line Items]              
Percentage of ownership interest   20.00%          
TUI Cruises GmbH Joint Venture              
Investments in and Advances to Affiliates [Line Items]              
Percentage of ownership interest     50.00%     50.00%  
Investments in entity     $ 820   $ 657    
Underlying equity in net assets     744   566    
Advances to affiliate     $ 66   $ 79 € 59 € 71
TUI Cruises GmbH Joint Venture | TUI Cruise Ships              
Investments in and Advances to Affiliates [Line Items]              
Restriction on reduction of current ownership interest (as a percent)     37.55%     37.55%  
TUI Cruises GmbH Joint Venture | Splendour of the Seas              
Investments in and Advances to Affiliates [Line Items]              
Interest rate on loan provided to related party (as a percent) 6.25%            
Debt instrument, term 10 years            
Debt, guaranteed percentage 50.00%            
TUI Cruises GmbH Joint Venture | Not Primary Beneficiary              
Investments in and Advances to Affiliates [Line Items]              
Percentage of ownership interest     50.00%     50.00%  
Grand Bahama | Not Primary Beneficiary              
Investments in and Advances to Affiliates [Line Items]              
Percentage of ownership interest     40.00%     40.00%  
Floating Docks S. DE RL | Not Primary Beneficiary              
Investments in and Advances to Affiliates [Line Items]              
Percentage of ownership interest         50.00%   50.00%
Number of floating drydocks | floating_drydock         2    
Percentage of certain installment payments payable         50.00%   50.00%
Investment total guaranteed     $ 41        
Italian Entities              
Investments in and Advances to Affiliates [Line Items]              
Number of entities | entity         2   2
Other Shareholder | Grand Bahama | Not Primary Beneficiary              
Investments in and Advances to Affiliates [Line Items]              
Percentage of ownership interest         40.00%   40.00%
v3.24.3
Investments and Other Assets - Schedule of Investments Accounted for Equity Method of Accounting (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Other Assets [Abstract]        
Share of equity income from investments $ 106 $ 87 $ 203 $ 149
v3.24.3
Investments and Other Assets - Schedule of Notes Receivable Due from Equity Investments (Details) - Equity Investment - USD ($)
$ in Millions
Sep. 30, 2024
Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total notes receivable due from equity investments $ 133 $ 105
Less-current portion [1] 18 19
Long-term portion [2] $ 115 $ 86
[1] Included within Trade and other receivables, net in our consolidated balance sheets.
[2] Included within Other assets in our consolidated balance sheets.
v3.24.3
Investments and Other Assets - Schedule of Credit Loss Allowance Related to Receivables (Details) - USD ($)
$ in Millions
 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Balance, beginning of period $ 49 $ 83
Credit loss (recovery), net 1 (10)
Write-offs 0 (3)
Balance, end of period $ 50 $ 70
v3.24.3
Debt - Schedule of Long-Term Debt (Details) - USD ($)
$ in Millions
 9 Months Ended
Sep. 30, 2024
Dec. 31, 2023
Debt Instrument [Line Items]    
Weighted average interest rate (as a percent) 5.27% 6.06%
Total debt [1] $ 21,389 $ 21,995
Less: unamortized debt issuance costs (549) (543)
Total debt, net of unamortized debt issuance costs 20,840 21,452
Less—current portion (1,868) (1,720)
Long-term portion 18,972 19,732
Total fixed rate debt    
Debt Instrument [Line Items]    
Long-term debt $ 18,046 16,618
Unsecured senior notes    
Debt Instrument [Line Items]    
Weighted average interest rate (as a percent) [2] 5.59%  
Long-term debt $ 9,699 7,899
Secured senior notes    
Debt Instrument [Line Items]    
Weighted average interest rate (as a percent) [2] 0.00%  
Long-term debt $ 0 1,000
Unsecured term loans    
Debt Instrument [Line Items]    
Weighted average interest rate (as a percent) [2] 3.25%  
Long-term debt $ 8,024 6,569
Convertible notes    
Debt Instrument [Line Items]    
Weighted average interest rate (as a percent) [2] 6.00%  
Long-term debt $ 323 1,150
Total variable rate debt    
Debt Instrument [Line Items]    
Long-term debt $ 2,993 5,008
Unsecured Revolving Credit Facilities    
Debt Instrument [Line Items]    
Weighted average interest rate (as a percent) [2],[3] 6.48%  
Long-term debt [3] $ 210 899
Unsecured Revolving Credit Facilities | Unsecured Revolving Credit Facility Due 2024    
Debt Instrument [Line Items]    
Credit adjustment spread (as a percent) 0.10%  
Margin on floating rate base (as a percent) 1.33%  
Facility fee (as a percent) 0.17%  
USD unsecured term loan    
Debt Instrument [Line Items]    
Weighted average interest rate (as a percent) [2] 6.52%  
Long-term debt $ 2,522 3,666
Euro unsecured term loan    
Debt Instrument [Line Items]    
Weighted average interest rate (as a percent) [2] 4.95%  
Long-term debt $ 261 443
Finance lease liabilities    
Debt Instrument [Line Items]    
Long-term debt $ 350 $ 369
Maximum | Unsecured Revolving Credit Facilities | Unsecured Revolving Credit Facility Due 2024    
Debt Instrument [Line Items]    
Long term debt, stated interest rate (as a percent) 6.28%  
[1] At September 30, 2024 and December 31, 2023, the weighted average interest rate for total debt was 5.27% and 6.06%, respectively
[2] Weighted average interest rates are based on outstanding loan balance as of September 30, 2024, and for variable rate debt include either EURIBOR or Term SOFR plus the applicable margin.
[3] Advances under our unsecured revolving credit facilities accrue interest at Term SOFR plus a 0.10% credit adjustment spread plus an interest rate margin of 1.33%. Based on applicable Term SOFR rates, as of September 30, 2024, the interest rate under the unsecured credit facilities was 6.28%. We also pay a facility fee of 0.17% of the total commitments under such facility.
v3.24.3
Debt - Narrative (Details) - USD ($)
shares in Millions
 1 Months Ended 3 Months Ended 9 Months Ended
Sep. 30, 2024
Aug. 31, 2024
Jun. 30, 2024
May 31, 2024
Mar. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Sep. 30, 2024
Minimum | Contract with Customer, Liability, Up-Front Payment Arrangement                
Long-Term Debt                
Credit agency fees, percentage of loan amount payable               2.35%
Maximum | Contract with Customer, Liability, Up-Front Payment Arrangement                
Long-Term Debt                
Credit agency fees, percentage of loan amount payable               5.48%
Export Credit Facilities                
Long-Term Debt                
Repayment of debt             $ 839,000,000  
Unsecured senior notes                
Long-Term Debt                
Loss on extinguishment of debt and inducement expense           $ 61,000,000   $ 61,000,000
Unsecured senior notes | Senior Notes Due 2032                
Long-Term Debt                
Face amount         $ 1,250,000,000      
Proceeds from senior notes         $ 1,240,000,000      
Fixed interest rate         6.25%      
Unsecured senior notes | Senior Notes Due 2027                
Long-Term Debt                
Fixed interest rate         11.625%      
Repayment of debt         $ 1,250,000,000      
Loss on extinguishment of debt and inducement expense               116,000,000
Unsecured senior notes | Senior Unsecured Notes Due 2033                
Long-Term Debt                
Face amount   $ 2,000,000,000            
Proceeds from senior notes   $ 1,980,000,000            
Fixed interest rate   6.00%            
Unsecured senior notes | Senior Notes Due 2029                
Long-Term Debt                
Fixed interest rate   9.25%            
Repayment of debt   $ 1,000,000,000            
Unsecured senior notes | Senior Secured Notes Due 2029                
Long-Term Debt                
Fixed interest rate   8.25%            
Repayment of debt   $ 1,000,000,000            
Loss on extinguishment of debt and inducement expense           142,000,000   142,000,000
Unsecured senior notes | Convertible Senior Notes Due 2025                
Long-Term Debt                
Fixed interest rate   6.00%            
Principal amount   $ 827,000,000            
Convertible notes shares issued (in shares)   11.4            
Convertible notes, cash portion   $ 827,000,000            
Induced conversion expense           119,000,000   119,000,000
Unsecured senior notes | Senior Unsecured Notes Due 2031                
Long-Term Debt                
Face amount $ 1,500,000,000         $ 1,500,000,000   $ 1,500,000,000
Proceeds from senior notes $ 1,490,000,000              
Fixed interest rate 5.63%         5.63%   5.63%
Unsecured senior notes | Senior Notes Due 2030                
Long-Term Debt                
Fixed interest rate 7.25%         7.25%   7.25%
Repayment of debt $ 700,000,000              
Unsecured term loans | Silver Ray Unsecured Term Loan                
Long-Term Debt                
Proceeds from senior notes       $ 507,000,000        
Fixed interest rate       4.33%        
Debt instrument, term (in years)       12 years        
Unsecured term loans | Silver Ray Unsecured Term Loan | Euler Hermes                
Long-Term Debt                
Percentage of unsecured term loan guaranteed by an export credit agency       95.00%        
Unsecured term loans | Utopia of the Seas Unsecured Term Loan                
Long-Term Debt                
Proceeds from senior notes     $ 1,500,000,000          
Fixed interest rate     3.00%       3.00%  
Debt instrument, term (in years)     12 years          
Unsecured term loans | Utopia of the Seas Unsecured Term Loan | Bpifrance Assurance Export                
Long-Term Debt                
Percentage of unsecured term loan guaranteed by an export credit agency     100.00%          
Revolving Credit Facility | Line of Credit                
Long-Term Debt                
Remaining borrowing capacity 3,500,000,000         $ 3,500,000,000   $ 3,500,000,000
Revolving Credit Facility | Line of Credit | Aggregate Revolving Capacity, October 2024                
Long-Term Debt                
Maximum borrowing capacity 3,700,000,000         3,700,000,000   3,700,000,000
Revolving Credit Facility | Line of Credit | Aggregate Revolving Capacity, October 2026                
Long-Term Debt                
Maximum borrowing capacity 1,860,000,000         1,860,000,000   1,860,000,000
Revolving Credit Facility | Line of Credit | Aggregate Revolving Capacity, October 2028                
Long-Term Debt                
Maximum borrowing capacity $ 1,860,000,000         $ 1,860,000,000   $ 1,860,000,000
v3.24.3
Debt - Schedule of Maturities of Long-Term Debt (Details)
$ in Millions
Sep. 30, 2024
USD ($)
 [1]
Debt Disclosure [Abstract]  
Remainder of 2024 $ 717
2025 1,613
2026 2,937
2027 2,609
2028 3,414
Thereafter 10,099
Total $ 21,389
[1] Debt denominated in other currencies is calculated based on the applicable exchange rate at September 30, 2024.
v3.24.3
Leases - Narrative (Details)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2024
USD ($)
extension_option
Sep. 30, 2023
USD ($)
Sep. 30, 2024
USD ($)
extension_option
Sep. 30, 2023
USD ($)
Sep. 26, 2024
USD ($)
Dec. 31, 2023
USD ($)
Nov. 30, 2023
USD ($)
Lessee, Lease, Description [Line Items]              
Present value of lease liabilities $ 716   $ 716        
Increase percentage of annual lease payment             3.00%
Present value of lease liabilities 350   350        
Variable lease cost 13 $ 13 92 $ 72      
Berthing Agreement              
Lessee, Lease, Description [Line Items]              
Present value of lease liabilities $ 167   $ 167     $ 167  
Lease payments to be paid when certain conditions are met             $ 55
Berthing Agreement | Minimum              
Lessee, Lease, Description [Line Items]              
Renewal term 1 year   1 year        
Berthing Agreement | Maximum              
Lessee, Lease, Description [Line Items]              
Renewal term 20 years   20 years        
Building | Minimum              
Lessee, Lease, Description [Line Items]              
Renewal term 1 year   1 year        
Building | Maximum              
Lessee, Lease, Description [Line Items]              
Renewal term 10 years   10 years        
Land and Building              
Lessee, Lease, Description [Line Items]              
Number of extension options | extension_option 2   2        
Additional lease term 5 years   5 years        
Present value of lease liabilities $ 106   $ 106     104  
Ships | Silver Dawn              
Lessee, Lease, Description [Line Items]              
Present value of lease liabilities $ 232   $ 232   $ 232 $ 246  
Finance lease term 15 years   15 years        
v3.24.3
Leases - Schedule of Components of Lease Expense (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Lessee, Lease, Description [Line Items]        
Amortization of right-of-use-assets $ 3 $ 6 $ 10 $ 17
Interest on lease liabilities 7 8 22 22
Total lease costs 57 58 208 200
Commission, transportation and other        
Lessee, Lease, Description [Line Items]        
Operating lease costs 38 33 151 128
Other operating expenses        
Lessee, Lease, Description [Line Items]        
Operating lease costs 4 6 11 17
Marketing, selling and administrative expenses        
Lessee, Lease, Description [Line Items]        
Operating lease costs $ 5 $ 5 $ 14 $ 16
v3.24.3
Leases - Schedule of Weighted Average Lease Terms and Discount Rates (Details)
Sep. 30, 2024
Dec. 31, 2023
Weighted average of the remaining lease term in years    
Operating leases 18 years 7 months 24 days 19 years 5 months 4 days
Finance leases 24 years 14 days 23 years 11 months 1 day
Weighted average discount rate    
Operating leases 7.28% 7.53%
Finance leases 5.86% 5.83%
v3.24.3
Leases - Schedule of Supplemental Cash Flow Information (Details) - USD ($)
$ in Millions
 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Leases [Abstract]    
Operating cash flows from operating leases $ 178 $ 131
Operating cash flows from finance leases 22 22
Financing cash flows from finance leases $ 19 $ 25
v3.24.3
Leases - Schedule of Maturities of Operating and Finance Lease Liability (Details)
$ in Millions
Sep. 30, 2024
USD ($)
Operating Leases  
Remainder of 2024 $ 31
2025 113
2026 107
2027 104
2028 100
Thereafter 1,062
Total lease payments 1,517
Less: Interest (801)
Present value of lease liabilities 716
Finance Leases  
Remainder of 2024 239
2025 15
2026 10
2027 9
2028 9
Thereafter 495
Total lease payments 777
Less: Interest (427)
Present value of lease liabilities $ 350
v3.24.3
Commitments and Contingencies - Schedule of Future Capital Commitments (Details)
Sep. 30, 2024
berth
Long-term Purchase Commitment [Line Items]  
Approximate Berths 22,650
Royal Caribbean International | Star of the Seas  
Long-term Purchase Commitment [Line Items]  
Approximate Berths 5,600
Royal Caribbean International | Unnamed  
Long-term Purchase Commitment [Line Items]  
Approximate Berths 5,600
Celebrity Cruises | Celebrity Xcel  
Long-term Purchase Commitment [Line Items]  
Approximate Berths 3,250
TUI Cruises | Mein Schiff Relax  
Long-term Purchase Commitment [Line Items]  
Approximate Berths 4,100
TUI Cruises | Unnamed  
Long-term Purchase Commitment [Line Items]  
Approximate Berths 4,100
v3.24.3
Commitments and Contingencies - Narrative (Details) - USD ($)
$ in Millions
 1 Months Ended 3 Months Ended 9 Months Ended
Sep. 30, 2024
Dec. 31, 2022
Dec. 31, 2022
Sep. 30, 2024
Commitments and Contingencies        
Aggregate cost of ships on order, not including TUI cruises on order       $ 5,900.0
Deposit for the purchase of ships expected to enter service $ 619.0     $ 619.0
Plaintiff amount   $ 112.0    
Loss in period     $ 130.0  
Number of months considered to determine requirement of prepayment of debts       24 months
Port Of Costa Maya And Adjacent Land        
Commitments and Contingencies        
Expected acquisition price $ 292.0      
Line of Credit | Minimum        
Commitments and Contingencies        
Debt instrument covenant, minimum percentage of ownership by a person 50.00%     50.00%
Debt Securities | Minimum        
Commitments and Contingencies        
Debt instrument covenant, minimum percentage of ownership by a person 50.00%     50.00%
v3.24.3
Shareholders' Equity (Details) - $ / shares
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2024
Sep. 30, 2023
Equity [Abstract]      
Dividends declared (in dollars per share) $ 0.40 $ 0.40 $ 0
v3.24.3
Changes in Accumulated Other Comprehensive Loss - Schedule of Changes in Accumulated Other Comprehensive Loss by Component (Details) - USD ($)
$ in Millions
 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Accumulated Other Comprehensive Income (Loss) [Roll Forward]    
Accumulated comprehensive loss at beginning of the year $ 4,724  
Other comprehensive income (loss) before reclassifications (43) $ 12
Amounts reclassified from accumulated other comprehensive loss (36) (13)
Net current-period other comprehensive income (loss) (79) (1)
Ending balance 7,045  
Changes related to cash flow derivative hedges    
Accumulated Other Comprehensive Income (Loss) [Roll Forward]    
Accumulated comprehensive loss at beginning of the year (666) (638)
Other comprehensive income (loss) before reclassifications (46) 6
Amounts reclassified from accumulated other comprehensive loss (36) (13)
Net current-period other comprehensive income (loss) (82) (7)
Ending balance (748) (645)
Changes in defined benefit plans    
Accumulated Other Comprehensive Income (Loss) [Roll Forward]    
Accumulated comprehensive loss at beginning of the year (2) (8)
Other comprehensive income (loss) before reclassifications 3 4
Amounts reclassified from accumulated other comprehensive loss 0 0
Net current-period other comprehensive income (loss) 3 4
Ending balance 1 (4)
Foreign currency translation adjustments    
Accumulated Other Comprehensive Income (Loss) [Roll Forward]    
Accumulated comprehensive loss at beginning of the year (6) 3
Other comprehensive income (loss) before reclassifications 0 2
Amounts reclassified from accumulated other comprehensive loss 0 0
Net current-period other comprehensive income (loss) 0 2
Ending balance (6) 5
Accumulated other comprehensive loss    
Accumulated Other Comprehensive Income (Loss) [Roll Forward]    
Accumulated comprehensive loss at beginning of the year (674) (643)
Ending balance $ (753) $ (644)
v3.24.3
Changes in Accumulated Other Comprehensive Loss - Schedule of Reclassifications Out of Accumulated Other Comprehensive Loss (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]        
Interest rate swaps $ (603) $ (340) $ (1,324) $ (1,055)
Depreciation and amortization expenses (410) (365) (1,190) (1,087)
Other (expense) income (26) (8) (37) (9)
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income | Gain (loss) on cash flow derivative hedges:        
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]        
Total reclassifications for the period 8 27 36 13
Interest rate swaps | Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income | Gain (loss) on cash flow derivative hedges:        
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]        
Interest rate swaps 11 15 36 35
Foreign currency forward contracts | Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income | Gain (loss) on cash flow derivative hedges:        
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]        
Depreciation and amortization expenses (6) (4) (17) (13)
Other (expense) income 0 0 0 (10)
Fuel swaps | Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income | Gain (loss) on cash flow derivative hedges:        
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]        
Fuel $ 3 $ 16 $ 17 $ 1
v3.24.3
Fair Value Measurements and Derivative Instruments - Schedule of Estimated Fair Value of Financial Instruments Not Measured at Fair Value on Recurring Basis (Details) - Nonrecurring - USD ($)
$ in Millions
Sep. 30, 2024
Dec. 31, 2023
Level 1    
Assets:    
Cash and cash equivalents [1],[2] $ 418 $ 497
Total Assets [2] 418 497
Liabilities:    
Long-term debt (including current portion of debt) [2],[3] 0 0
Total Liabilities [2] 0 0
Level 2    
Assets:    
Cash and cash equivalents [1],[4] 0 0
Total Assets [4] 0 0
Liabilities:    
Long-term debt (including current portion of debt) [3],[4] 21,968 23,700
Total Liabilities [4] 21,968 23,700
Level 3    
Assets:    
Cash and cash equivalents [1],[5] 0 0
Total Assets [5] 0 0
Liabilities:    
Long-term debt (including current portion of debt) [3],[5] 0 0
Total Liabilities [5] 0 0
Total Carrying Amount    
Assets:    
Cash and cash equivalents [1] 418 497
Total Assets 418 497
Liabilities:    
Long-term debt (including current portion of debt) [3] 20,490 21,083
Total Liabilities 20,490 21,083
Total Fair Value    
Assets:    
Cash and cash equivalents [1] 418 497
Total Assets 418 497
Liabilities:    
Long-term debt (including current portion of debt) [3] 21,968 23,700
Total Liabilities $ 21,968 $ 23,700
[1] Consists of cash and marketable securities with original maturities of less than 90 days.
[2] Inputs based on quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access. Valuation of these items does not entail a significant amount of judgment.
[3] Consists of unsecured revolving credit facilities, senior notes, term loans and convertible notes. These amounts do not include our finance lease obligations.
[4] Inputs other than quoted prices included within Level 1 that are observable for the liability, either directly or indirectly. For unsecured revolving credit facilities and unsecured term loans, fair value is determined utilizing the income valuation approach. This valuation model takes into account the contract terms of our debt such as the debt maturity and the interest rate on the debt. The valuation model also takes into account the creditworthiness of the Company. We valued our senior notes and convertible notes using a quoted market price, which is considered a Level 2 input as it is observable in the market; however, these instruments have a limited trading volume and as such this fair value estimate is not necessarily indicative of the value at which the instruments could be retired or transferred.
[5] Inputs that are unobservable. The Company did not use any Level 3 inputs as of September 30, 2024 and December 31, 2023.
v3.24.3
Fair Value Measurements and Derivative Instruments - Schedule of Assets and Liabilities Recorded at Fair Value on Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($)
$ in Millions
Sep. 30, 2024
Dec. 31, 2023
Level 1    
Assets:    
Asset Derivatives [1],[2] $ 0 $ 0
Total Assets [2] 0 0
Liabilities:    
Liability Derivatives [1],[2] 0 0
Total Liabilities [2] 0 0
Level 2    
Assets:    
Asset Derivatives [1],[3] 112 144
Total Assets [3] 112 144
Liabilities:    
Liability Derivatives [1],[3] 88 66
Total Liabilities [3] 88 66
Level 3    
Assets:    
Asset Derivatives [1],[4] 0 0
Total Assets [4] 0 0
Liabilities:    
Liability Derivatives [1],[4] 0 0
Total Liabilities [4] 0 0
Total    
Assets:    
Asset Derivatives [1] 112 144
Total Assets 112 144
Liabilities:    
Liability Derivatives [1] 88 66
Total Liabilities $ 88 $ 66
[1] Consists of foreign currency forward contracts, interest rate and fuel swaps. Refer to the "Fair Value of Derivative Instruments" table for breakdown by instrument type.
[2] Inputs based on quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access. Valuation of these items does not entail a significant amount of judgment. No Level 1 inputs were used in fair value measurements of other financial instruments as of September 30, 2024 and December 31, 2023.
[3] Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. For foreign currency forward contracts, interest rate swaps and fuel swaps, fair value is derived using valuation models that utilize the income valuation approach. These valuation models take into account the contract terms, such as maturity, as well as other inputs, such as foreign exchange rates and curves, fuel types, fuel curves and interest rate yield curves. Derivative instrument fair values take into account the creditworthiness of the counterparty and the Company.
[4] Inputs that are unobservable. No Level 3 inputs were used in fair value measurements of other financial instruments as of September 30, 2024 and December 31, 2023.
v3.24.3
Fair Value Measurements and Derivative Instruments - Schedule of Offsetting Assets and Liabilities (Details) - USD ($)
$ in Millions
Sep. 30, 2024
Dec. 31, 2023
Offsetting of Financial Assets under Master Netting Agreements [Abstract]    
Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheet $ 112 $ 144
Gross Amount of Eligible Offsetting Recognized Derivative Liabilities (34) (28)
Cash Collateral Received 0 0
Net Amount of Derivative Assets 78 116
Offsetting of Financial Liabilities under Master Netting Agreements [Abstract]    
Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheet (88) (66)
Gross Amount of Eligible Offsetting Recognized Derivative Assets 34 28
Cash Collateral Pledged 0 0
Net Amount of Derivative Liabilities $ (54) $ (38)
v3.24.3
Fair Value Measurements and Derivative Instruments - Narrative (Details)
€ in Millions, $ in Millions
 9 Months Ended 12 Months Ended
Sep. 30, 2024
USD ($)
Sep. 30, 2024
EUR (€)
Dec. 31, 2023
USD ($)
Dec. 31, 2023
EUR (€)
Sep. 30, 2023
USD ($)
Gains and losses from derivatives involved in hedging relationships          
Derivative instrument, credit risk exposure $ 95        
Maximum length of time hedged in derivative contract 3 years 3 years      
Percentage of debt bearing fixed interest 91.40%   83.20%    
Aggregate cost of ships on order, not including partner brands on order $ 5,900        
Amount deposited for cost of ships on order $ 619        
Percentage of aggregate cost exposed to fluctuations in the euro exchange rate 39.60%   43.50%    
TUI Cruises | Foreign Currency Debt          
Gains and losses from derivatives involved in hedging relationships          
Carrying Value $ 883 € 791 $ 716 € 648  
Interest rate swaps          
Gains and losses from derivatives involved in hedging relationships          
Notional amount 1,400   1,600    
Foreign currency forward contracts | Not Designated          
Gains and losses from derivatives involved in hedging relationships          
Notional amount 989       $ 1,400
Foreign Exchange Contracts          
Gains and losses from derivatives involved in hedging relationships          
Notional amount $ 2,100   $ 2,900    
v3.24.3
Fair Value Measurements and Derivative Instruments - Schedule of Interest Rate Derivatives (Details) - Interest rate swaps - Cash Flow Hedge
$ in Millions
 9 Months Ended
Sep. 30, 2024
USD ($)
Interest Rate Cash Flow Hedges [Abstract]  
Notional amount $ 1,385
Celebrity Reflection term loan  
Interest Rate Cash Flow Hedges [Abstract]  
Notional amount $ 27
Fixed interest rate 2.88%
Celebrity Reflection term loan | Term SOFR plus  
Interest Rate Cash Flow Hedges [Abstract]  
Debt Floating Rate 0.40%
Quantum of the Seas term loan  
Interest Rate Cash Flow Hedges [Abstract]  
Notional amount $ 153
Fixed interest rate 3.78%
Quantum of the Seas term loan | Term SOFR plus  
Interest Rate Cash Flow Hedges [Abstract]  
Debt Floating Rate 1.30%
Anthem of the Seas term loan  
Interest Rate Cash Flow Hedges [Abstract]  
Notional amount $ 181
Fixed interest rate 3.90%
Anthem of the Seas term loan | Term SOFR plus  
Interest Rate Cash Flow Hedges [Abstract]  
Debt Floating Rate 1.30%
Ovation of the Seas term loan  
Interest Rate Cash Flow Hedges [Abstract]  
Notional amount $ 277
Fixed interest rate 3.20%
Ovation of the Seas term loan | Term SOFR plus  
Interest Rate Cash Flow Hedges [Abstract]  
Debt Floating Rate 1.00%
Harmony of the Seas Term Loan  
Interest Rate Cash Flow Hedges [Abstract]  
Notional amount $ 258 [1]
Fixed interest rate 2.26% [1]
Harmony of the Seas Term Loan | EURIBOR plus  
Interest Rate Cash Flow Hedges [Abstract]  
Debt Floating Rate 1.15% [1]
Odyssey of the Seas Term Loan  
Interest Rate Cash Flow Hedges [Abstract]  
Notional amount $ 326 [2]
Fixed interest rate 3.28% [2]
Odyssey of the Seas Term Loan | Term SOFR plus  
Interest Rate Cash Flow Hedges [Abstract]  
Debt Floating Rate 0.96% [2]
Odyssey of the Seas Term Loan  
Interest Rate Cash Flow Hedges [Abstract]  
Notional amount $ 163 [2]
Fixed interest rate 2.91% [2]
Odyssey of the Seas Term Loan | Term SOFR plus  
Interest Rate Cash Flow Hedges [Abstract]  
Debt Floating Rate 0.96% [2]
[1] Interest rate swap agreements hedging the Euro-denominated term loan for Harmony of the Seas include EURIBOR zero-floors matching the hedged debt EURIBOR zero-floor. Amount presented is based on the exchange rate as of September 30, 2024.
[2] Interest rate swap agreements hedging the term loan of Odyssey of the Seas include Term SOFR zero-floors, Term SOFR with no floors, and Overnight SOFR.
v3.24.3
Fair Value Measurements and Derivative Instruments - Schedule of Outstanding Fuel Swap Agreements (Details) - Fuel Swap Agreements
$ in Millions
Sep. 30, 2024
USD ($)
T
Dec. 31, 2023
USD ($)
T
Derivative Instruments    
Estimated unrealized net gain (loss) associated with cash flow hedges pertaining to fuel swap agreements expected to be reclassified to earnings from accumulated other comprehensive income loss | $ $ 38 $ (21)
2024    
Derivative Instruments    
Fuel swap agreements (metric tons) 263,600 1,054,501
Percentage of projected requirements 61.00% 61.00%
2025    
Derivative Instruments    
Fuel swap agreements (metric tons) 1,031,449 685,400
Percentage of projected requirements 60.00% 39.00%
2026    
Derivative Instruments    
Fuel swap agreements (metric tons) 786,750 44,200
Percentage of projected requirements 44.00% 3.00%
2027    
Derivative Instruments    
Fuel swap agreements (metric tons) 182,049 0
Percentage of projected requirements 10.00% 0.00%
v3.24.3
Fair Value Measurements and Derivative Instruments - Schedule of Fair Value and Line Item Caption of Derivative Instruments (Details) - USD ($)
$ in Millions
Sep. 30, 2024
Dec. 31, 2023
Derivative financial instruments    
Asset Derivatives    
Derivative Asset, Statement of Financial Position [Extensible Enumeration] Derivative financial instruments Derivative financial instruments
Liability Derivatives    
Derivative Liability, Statement of Financial Position [Extensible Enumeration] Derivative financial instruments Derivative financial instruments
Other assets    
Asset Derivatives    
Derivative Asset, Statement of Financial Position [Extensible Enumeration] Other assets, net of allowances of $42 and $43 at September 30, 2024 and December 31, 2023, respectively Other assets, net of allowances of $42 and $43 at September 30, 2024 and December 31, 2023, respectively
Other long-term liabilities    
Liability Derivatives    
Derivative Liability, Statement of Financial Position [Extensible Enumeration] Other long-term liabilities Other long-term liabilities
Designated as Hedging Instrument    
Asset Derivatives    
Asset Derivatives [1] $ 112 $ 144
Liability Derivatives    
Liability Derivatives [1] 88 66
Interest rate swaps | Designated as Hedging Instrument | Derivative financial instruments    
Asset Derivatives    
Asset Derivatives 0 1
Liability Derivatives    
Liability Derivatives 0 0
Interest rate swaps | Designated as Hedging Instrument | Other assets    
Asset Derivatives    
Asset Derivatives [1] 46 75
Interest rate swaps | Designated as Hedging Instrument | Other long-term liabilities    
Liability Derivatives    
Liability Derivatives [1] 0 0
Foreign currency forward contracts | Designated as Hedging Instrument | Derivative financial instruments    
Asset Derivatives    
Asset Derivatives [1] 38 20
Liability Derivatives    
Liability Derivatives [1] 4 9
Foreign currency forward contracts | Designated as Hedging Instrument | Other assets    
Asset Derivatives    
Asset Derivatives [1] 25 44
Foreign currency forward contracts | Designated as Hedging Instrument | Other long-term liabilities    
Liability Derivatives    
Liability Derivatives [1] 0 4
Fuel swaps | Designated as Hedging Instrument | Derivative financial instruments    
Asset Derivatives    
Asset Derivatives [1] 2 4
Liability Derivatives    
Liability Derivatives [1] 40 26
Fuel swaps | Designated as Hedging Instrument | Other assets    
Asset Derivatives    
Asset Derivatives [1] 1 0
Fuel swaps | Designated as Hedging Instrument | Other long-term liabilities    
Liability Derivatives    
Liability Derivatives [1] $ 44 $ 27
[1] Subtopic 815-20 “Hedging-General” under ASC 815.
v3.24.3
Fair Value Measurements and Derivative Instruments - Schedule of Carrying Value and Line Item Caption of Non-Derivative Instruments Designated as Hedging Instruments (Details) - Foreign Currency Debt - Designated as Hedging Instrument - USD ($)
$ in Millions
 9 Months Ended 12 Months Ended
Sep. 30, 2024
Dec. 31, 2023
Derivative Instruments    
Carrying Value $ 883 $ 588
Long-Term Debt and Lease Obligation, Current    
Derivative Instruments    
Carrying Value 65 65
Long-Term Debt and Lease Obligation    
Derivative Instruments    
Carrying Value $ 818 $ 523
v3.24.3
Fair Value Measurements and Derivative Instruments - Schedule of Effect of Derivative Instruments Not Designated as Cash Flow Hedging Instruments (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Effect of derivative instruments involved in hedging on the consolidated financial statements        
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Loss on Derivatives  $ (86) $ 47 $ (46) $ 6
Interest rate swaps        
Effect of derivative instruments involved in hedging on the consolidated financial statements        
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Loss on Derivatives  (20) 23 8 35
Foreign currency forward contracts        
Effect of derivative instruments involved in hedging on the consolidated financial statements        
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Loss on Derivatives  67 (134) (36) (120)
Fuel swaps        
Effect of derivative instruments involved in hedging on the consolidated financial statements        
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Loss on Derivatives  $ (133) $ 158 $ (18) $ 91
v3.24.3
Fair Value Measurements and Derivative Instruments - Schedule of Non-Derivative Instruments Designated as Net Investment Hedging Instruments (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Foreign Currency Debt        
Net investment hedge        
Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) $ (35) $ 18 $ (13) $ 7
v3.24.3
Fair Value Measurements and Derivative Instruments - Schedule of Effect of Derivative Instruments Not Designated as Cash Flow Hedging Instruments (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Derivative Instruments        
Amount of (Loss) Gain Recognized in Income on Derivatives $ 33 $ (42) $ (8) $ (29)
Foreign currency forward contracts | Other income (expense)        
Derivative Instruments        
Amount of (Loss) Gain Recognized in Income on Derivatives 33 (43) (8) (30)
Fuel swaps | Other income (expense)        
Derivative Instruments        
Amount of (Loss) Gain Recognized in Income on Derivatives $ 0 $ 1 $ 0 $ 1
v3.24.3
Fair Value Measurements and Derivative Instruments - Credit Related Contingent Features (Narrative) (Details)
Sep. 30, 2024
derivative
Fair Value Disclosures [Abstract]  
Number of interest rate derivative hedges requiring collateral to be posted 6
Royal Caribbean (NYSE:RCL)
Historical Stock Chart
From Dec 2024 to Jan 2025 Click Here for more Royal Caribbean Charts.
Royal Caribbean (NYSE:RCL)
Historical Stock Chart
From Jan 2024 to Jan 2025 Click Here for more Royal Caribbean Charts.