8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant To Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of report (Date of earliest event reported): May 13, 2020

ROYAL CARIBBEAN CRUISES LTD.

(Exact name of registrant as specified in its charter) 

Republic of Liberia

(State or Other Jurisdiction of Incorporation)

1-11884	98-0081645
(Commission File Number)	(IRS Employer Identification No.)

1050 Caribbean Way, Miami, Florida 33132

                      (Address of Principal Executive Offices) (Zip Code)

Registrant’s telephone number, including area code: 305-539-6000

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

     Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, par value $0.01 per share	RCL	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

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.  o

Item 8.01 Other Events.

On May 13, 2020, Royal Caribbean Cruises Ltd. (the "Company”) provided an update regarding its liquidity and management's plan in anticipation of additional financing transactions. In light of this and circumstances surrounding the COVID-19 pandemic, the Company is also supplementing and updating the risk factor disclosure contained in its Annual Report on Form 10-K for the year ended December 31, 2019 (the “Annual Report on Form 10-K”) with the risk factor disclosure filed as Exhibit 99.1 hereto and incorporated herein by reference.

Additionally, in Exhibit 99.2 to this Current Report on Form 8-K, the Company (i) updated Note 1. General of its consolidated financial statements (“Financial Statements”) in its Annual Report on Form 10-K to add a “Management's Plan and Liquidity” discussion, added Note 22. Events Subsequent to Original Issuance of Financial Statements to the Financial Statements in the Annual Report on Form 10-K to add information regarding the Company's recent debt transactions and (ii) the Company's independent registered public accounting firm, reissued its report to include an emphasis-of-matter paragraph. Other than as described in the preceding sentences, Exhibit 99.1 and Exhibit 99.2 do not revise, modify, update or otherwise affect the Annual Report on Form 10-K, including the Financial Statements.

Together with their consolidated subsidiaries, Royal Caribbean Cruises Ltd. are referred to collectively in this report as Royal Caribbean, the “Company,” “our,” “us” and “we.”

Management's Plan and Liquidity

As part of the global containment effort, the Company implemented a voluntary suspension of its global cruise operations effective March 13, 2020, which has subsequently been extended through at least June 11, 2020. On March 14, 2020, concurrent with our and the broader cruise industry’s suspension, the U.S. Centers for Disease Control and Prevention (“CDC”) issued a No Sail Order through April 13, 2020. On April 9, 2020, the CDC modified its existing No Sail Order to extend it until the earliest of (a) the expiration of the Secretary of Health and Human Services’ declaration that COVID-19 constitutes a public health emergency, (b) the date the Director of the CDC rescinds or modifies the No Sail Order or (c) 100 days after the order appears on the Federal Register, which would be July 24, 2020.

Significant events affecting travel, including COVID-19, typically have an impact on the booking pattern for cruise vacations, with the full extent of the impact generally determined by the length of time the event influences travel decisions. Based on our assumptions and estimates and our financial condition, we believe that the liquidity described in the following paragraphs will be sufficient to fund our liquidity requirements for at least the next twelve months. However, there can be no assurance that our assumptions and estimates are accurate due to possible unknown variables, including, but not limited to, whether the CDC will issue additional No Sail Orders on cruises out of the United States. The current No Sail Order is currently set to expire on or before July 24, 2020. The Company, working with the CDC, is developing its enhanced safety and health protocols as well as other operational procedures necessary to return its vessels to service and is targeting mid-summer of 2020 to begin sailings; however, if the ban on cruising is extended beyond the third quarter of 2020, it will have a material adverse impact on our current and forecasted liquidity levels. There are also other unknown variables related to the unprecedented suspension of our operations and, as such, there is significant uncertainty in our ability to predict future liquidity requirements.

As of December 31, 2019, the Company had liquidity of $1.5 billion, consisting of $243.7 million in cash and cash equivalents and $1.3 billion available under our unsecured credit facilities, net of our outstanding commercial paper notes. Subsequent to December 31, 2019 and through May 12, 2020, as described in Note 22. Events Subsequent to Original Issuance of Financial Statements, the Company increased the capacity under our revolving credit facilities by $0.6 billion and fully drew on both facilities, entered into 364-day senior secured term loan for $2.2 billion, which was subsequently increased to $2.35 billion, of which repayments may be extended at our option for an additional 364 days, and secured deferrals of existing debt amortization under our export-credit backed ship debt facilities which increased the Company’s liquidity by an additional $0.8 billion.

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The Company has also undertaken several proactive measures as well as has future plans to mitigate the financial and operational impacts of COVID-19, through potential new financing options, if available, reduction of capital expenditures and operating expenses, including furloughing staff, laying up vessels, as well as agreeing not to pay dividends or engage in stock repurchases.

We were in compliance with all of our debt covenants as of December 31, 2019 and through May 12, 2020. Subsequent to December 31, 2019, we amended each of our outstanding facilities to waive all financial covenants in such facilities through and including the first quarter of 2021.

We also have agreements with two credit card processors that transact advance customer ticket deposits and onboard transactions related to our cruise voyages. These agreements allow the credit card processors to require under certain circumstances, including the existence of a material adverse change, excessive chargebacks and other triggering events, that we maintain a reserve which could be satisfied by posting collateral. The maximum reserve requirement under the agreements with the credit card processors is in aggregate $300 million. As of May 12, 2020, we were not required to post collateral under these agreements.

Any covenant waiver may lead to increased costs, increased interest rates, additional restrictive covenants and other available lender protections that would be applicable. There can be no assurance that we would be able to obtain waivers in a timely manner, or on acceptable terms at all. If we were not able to obtain waivers or repay the debt facilities, this would lead to an event of default and potential acceleration of amounts due under all of our outstanding debt and derivative contract payables.

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Cautionary Note Concerning Forward-Looking Statements

Certain statements in this Current Report on Form 8-K relating to, among other things, our future performance estimates, forecasts and projections constitute forward-looking statements under the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to: statements regarding revenues, costs and financial results for 2020 and beyond. Words such as “anticipate,” “believe,” “could,” “driving,” “estimate,” “expect,” “goal,” “intend,” “may,” “plan,” “project,” “seek,” “should,” “will,” “would,” “considering”, and similar expressions are intended to help identify forward-looking statements. Forward-looking statements reflect management’s current expectations, are based on judgments, are inherently uncertain and are subject to risks, uncertainties and other factors, which 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 the following: the impact of the economic and geopolitical environment on key aspects of our business, such as the demand for cruises, passenger spending, and operating costs; our ability to obtain sufficient financing, capital or revenues to satisfy liquidity needs, capital expenditures, debt repayments and other financing needs; the effectiveness of the actions we have taken to improve and address our liquidity needs; incidents or adverse publicity concerning our ships, port facilities, land destinations and/or passengers or the cruise vacation industry in general; concerns over safety, health and security of guests and crew; the impact of the global incidence and spread of COVID-19, which has led to the temporary suspension of our operations and has had and will continue to have a material negative impact on our operating results and liquidity, or other contagious illnesses on economic conditions and the travel industry in general and the financial position and operating results of our Company in particular, such as: the current and potential additional governmental and self-imposed travel restrictions, the current and potential extension of the suspension of cruises and new additional suspensions, guest cancellations, an inability to source our crew or our provisions and supplies from certain places, the incurrence of COVID-19 and other contagious diseases on our ships and an increase in concern about the risk of illness on our ships or when traveling to or from our ships, all of which reduces demand; unavailability of ports of call; growing anti-tourism sentiments and environmental concerns; changes in US foreign travel policy; the uncertainties of conducting business internationally and expanding into new markets and new ventures; our ability to recruit, develop and retain high quality personnel; changes in operating and financing costs; our indebtedness and restrictions in the agreements governing our indebtedness that limit our flexibility in operating our business, including the significant portion of assets that are collateral under these agreements; the impact of foreign currency exchange rates, interest rate and fuel price fluctuations; vacation industry competition and changes in industry capacity and overcapacity; the risks and costs associated with protecting our systems and maintaining integrity and security of our business information, as well as personal data of our guests, employees and others; the impact of new or changing legislation and regulations or governmental orders on our business; pending or threatened litigation, investigations and enforcement actions; the effects of weather, natural disasters and seasonality on our business; emergency ship repairs, including the related lost revenue; the impact of issues at shipyards, including ship delivery delays, ship cancellations or ship construction cost increases; shipyard unavailability; and the unavailability or cost of air service.

In addition, many of these risks and uncertainties, as well as those listed in our most recent Annual Report on Form 10-K, are currently heightened by and will continue to be heightened by, or in the future may be heightened by, the COVID-19 pandemic. It is not possible to predict or identify all such risks.

More information about factors that could affect our operating results is included in Exhibit 99.1 in this report and under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our most recent Annual Report on Form 10-K, copy of which may be obtained by visiting our Investor Relations website at www.rclinvestor.com or the SEC’s website at www.sec.gov. Undue reliance should not be placed on the forward-looking statements in this Current Report on Form 8-K, which are based on information available to us on the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

23.1		Consent of PricewaterhouseCoopers LLP, an independent registered public accounting firm
99.1		Risk Factors
99.2		Item 8. Financial Statements and Supplementary Data
101	The financial statements from Royal Caribbean Cruises Ltd.'s Annual Report on Form 10-K for the year ended December 31, 2019, filed with the Securities and Exchange Commission on February 25, 2020, as updated by the Current Report on Form 8-K, formatted in iXBRL (Inline eXtensible Business Reporting Language) are as follows:
	(i)	the Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2019, 2018 and 2017;
	(ii)	the Consolidated Balance Sheets at December 31, 2019 and 2018;
	(iii)	the Consolidated Statements of Cash Flows for the years ended December 31, 2019, 2018 and 2017;
	(iv)	the Consolidated Statements of Shareholders' Equity for the years ended December 31, 2019, 2018 and 2017; and
	(v)	the Notes to the Consolidated Financial Statements, tagged in summary and detail.
104		Cover Page Interactive Data File, formatted in iXBRL and contained in Exhibit 101

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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.
By:	/s/ JASON T. LIBERTY
Name:	Jason T. Liberty Executive Vice President, Chief Financial Officer

May 13, 2020

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EX-23.1

Exhibit 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We hereby consent to the incorporation by reference in the Registration Statements on Form S-3 (No. 333-223241) and Form S-8 (Nos. 333-228427, 333-202263, 333-170170, 333-157097, 333-84982, 333-84980, 333-42070 and 333-42072) of Royal Caribbean Cruises Ltd. of our report dated February 25, 2020, except with respect to our opinion on the consolidated financial statements insofar as it relates to the Company’s evaluation of the effects of COVID-19 discussed in Note 1 under Management’s Plan and Liquidity, and the Events Subsequent to Original Issuance of Financial Statements discussed in Note 22, as to which the date is May 13, 2020 relating to the financial statements and the effectiveness of internal control over financial reporting, which appears in this Current Report on Form 8-K.

/s/ PricewaterhouseCoopers LLP

Miami, Florida

May 13, 2020

EX-99.1

Exhibit 99.1

The following risk factors are provided to update the risk factors of Royal Caribbean Cruises Ltd. previously disclosed in periodic reports filed with the SEC, including its Annual Report on Form 10-K for the year ended December 31, 2019, filed on February 25, 2020. As used in this Form 8-K, unless otherwise indicated or the context otherwise requires, the terms “Royal Caribbean,” the “Company,” “we,” “our” and “us” refer to Royal Caribbean Cruises Ltd. and its consolidated subsidiaries. The term “Silversea Cruises” refers to our majority-owned global cruise brand. “TUI Cruises” and “Pullmantur” refer to regional brands in which we hold an ownership interest. 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.

The global COVID-19 pandemic has had, and will continue to have, a material adverse impact on our business and results of operations. The global spread of COVID-19 and the unprecedented responses by governments and other authorities to control and contain the spread has caused significant disruptions, created new risks, and exacerbated existing risks to our business.

We have been, and will continue to be, negatively impacted by the COVID-19 pandemic, including impacts that resulted from actions taken in response to the outbreak. Examples of these include, but are not limited to, travel bans and cruising advisories and the resulting temporary suspension of our operations, which is expected to continue until at least June 11, 2020 and Alaska sailings at least until June 30, 2020, restrictions on the movement and gathering of people, social distancing measures, shelter-in-place/stay-at-home orders, and disruptions to businesses in our supply chain. In addition to the imposed restrictions affecting our business, the extent, duration, and magnitude of the COVID-19 pandemic’s effect on the economy and consumer demand for cruising and travel is still rapidly fluctuating and difficult to predict. As such, these impacts may persist for an extended period of time or even become more pronounced, even after we are permitted to and/or begin to resume operations.

The COVID-19 pandemic also has elevated risks affecting significant parts of our business:

•Operations: Due to the global public health circumstances, we have decided to extend the suspension of sailings of our global fleet through at least June 11, 2020 and Alaska sailings at least until June 30, 2020. It is uncertain as to whether we will need to suspend additional sailings and to what extent. The suspension of sailings and the expected reduction in demand for future cruising once we resume sailing has led to a significant decline in our revenues and cash inflows, which has required us to take cost and capital expenditure containment actions. Consequently, we have reduced and furloughed our workforce, with approximately 23% of our U.S. shoreside employee base being impacted and, except for the minimum safe manning shipboard crew required to operate the ships during the suspension of operations, our shipboard crew were notified that their contracts would end early and they would be notified about new assignments when operations resume in the future, which may delay our ability to rebuild our workforce in the case of improved conditions. In addition, we have reduced our planned capital spending through 2021, which may negatively impact our execution of planned growth strategies, particularly as it relates to investments in our ships, technology, and our expansion of land-based developments. Furthermore, we have taken actions to monitor and mitigate changes in our supply chain, and port destination availability, which may strain relationships with our vendors and port partners. Due to the unprecedented and uncertain nature of the COVID-19 pandemic, it is difficult to predict the impact of further disruptions and their magnitude. The impact of further disruptions may depend on how they coincide with the timing of when we seek to resume sailing. In addition, we have never previously experienced a complete cessation of our cruising operations, and as a consequence, our ability to predict the impact of such a cessation on our brands and future prospects is limited and such impact is uncertain.

•Results of Operations: Our decision to suspend sailings of our global fleet through at least June 11, 2020 and Alaska sailings at least until June 30, 2020 and the resulting trip cancellations have materially impacted the results of our operations. We have incurred and will continue to incur significant costs associated with cancellations as we accommodate passengers with refunds and future cruise credits; as well as assisting our crew with their return home, food, housing, and medical needs. In addition, although cruise operations are currently suspended, we have incurred and will likely continue to incur significant overhead costs

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associated with layup of our fleet and enhanced COVID-19 related sanitation procedures. As we cannot control adverse media coverage and we cannot predict exactly when we will resume sailing operations, we are experiencing and may continue to experience weak demand for cruising for an undeterminable length of time and we cannot predict when we will return to pre-outbreak demand or fare pricing or if we will return to such levels in the foreseeable future. In turn, these negative impacts to our financial performance have resulted and may continue to result in impairments of our long-lived and intangible assets. For the three months ended March 31, 2020, we are finalizing certain impairment charges preliminarily estimated to be between $1.0 to $1.3 billion related to the impairment of goodwill attributable to our Silversea Cruises reporting unit and several of our vessels. Additionally, future profitability will be impacted by increased debt service costs as a result of our liquidity actions.

•Liquidity: The suspension of our sailings and the reduction in demand for future cruising has adversely impacted our liquidity as we have experienced a significant increase in refunds of customer deposits while cash inflows from new or existing bookings on future sailings has reduced sharply. As a result, we have taken actions to increase our liquidity through a combination of capital and operating expense reductions and financing activities. For instance, we borrowed an aggregate principal amount of $2.2 billion on March 23, 2020 and an additional $150 million on May 4, 2020 pursuant to a 364-day senior secured term loan which we intend to refinance. On March 27, 2020, we drew down all the remaining capacity of our revolving credit facilities for a total of $3.475 billion outstanding. On March 31, 2020, Moody’s downgraded us from Baa2 to Baa3, and on April 2, 2020 S&P Global downgraded us from BBB- to BB, and any further downgrade could reduce our ability to incur secured indebtedness by reducing the value of the liens on our assets that we are permitted to incur. In April and May 2020, we obtained interim debt service and financial covenant holidays under certain of our export-credit backed loan facilities to generate a cumulative $0.8 billion of incremental liquidity through April 2021. Our ability to raise additional financing, whether or not secured, could be limited if our credit rating is further downgraded, and/or if we fail to comply with applicable covenants governing our outstanding indebtedness, and/or if overall financial market conditions worsen. Additionally, due to the complexity of the pandemic’s impact to the economy and uncertainty of its duration, we cannot guarantee that assumptions used to project our liquidity needs will be correct, which may result in the need for additional financing and/or may result in the inability to satisfy covenants required by our current credit facilities. If we raise additional funds through equity or debt issuances, our shareholders could experience dilution of their ownership interest, and these securities could have rights, preferences, and privileges that are superior to that of holders of our ordinary shares. If we raise additional funds by issuing debt, we may be subject to limitations on our operations due to restrictive covenants, which may be more restrictive than the covenants in our existing debt agreements, and we may be required to further encumber our assets. If adequate funds are not available on acceptable terms, or at all, we may be unable to fund our operations, or respond to competitive pressures, any of which could negatively affect our business. There is no guarantee that financing will be available in the future or that such financing will be available with similar terms or terms that are commercially acceptable to us. Further, if any government agrees to provide us with disaster relief assistance, or other assistance due to the impacts of the COVID-19 pandemic, and we determine it is beneficial to seek such government assistance, it may impose restrictions on executive compensation, share buybacks, dividends, prepayment of debt and other similar restrictions until the aid is repaid or redeemed in full, which could significantly limit our corporate activities and adversely impact our business and operations. We cannot assure you that any such disaster relief would be available to us.

Adverse worldwide economic or other conditions could result in prolonged reduction in the demand for cruises and passenger spending, adversely impacting our operating results, cash flows and financial condition including impairing the value of our goodwill, ships, trademarks and other assets and potentially affecting other critical accounting estimates where the change may be material to our operating results.

In addition to health and safety concerns, demand for cruises is affected by international, national, and local economic conditions. Weak or uncertain economic conditions may impact consumer confidence and pose a risk as vacationers postpone or reduce discretionary spending. This, in turn, may result in cruise booking slowdowns, decreased cruise prices and lower onboard revenues, even after the COVID-19 pandemic has ended and/or related

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health and safety concerns are reduced. Given the global nature of our business, we are exposed to many different economies and our business could be hurt by challenging conditions in any of our markets. Any significant deterioration of international, national, or local economic conditions, including those resulting from geopolitical events and/or international disputes and the current economic and employment impact of the COVID-19 pandemic in countries where many of our customers reside could result in a prolonged period of booking slowdowns, depressed cruise prices and/or reduced onboard revenues, even after the COVID-19 pandemic has ended and/or related health and safety concerns are reduced. The COVID-19 pandemic could cause a global recession, which would have a further adverse impact on our financial condition and results of operations. In past recessions, demand in the cruise industry was significantly negatively impacted resulting in lower occupancy rates and adverse pricing, with a corresponding increase in the use of credits and other means to attract travelers. Additionally, the impact of COVID-19 on the financial markets is complicated and we cannot predict its effect on geopolitical events and/or international trade policies as countries attempt to mitigate the impact as economies re-open.

Our operating costs could increase due to market forces and economic or geopolitical factors beyond our control.

Our operating costs, including fuel, food, payroll and benefits, airfare, taxes, insurance, and security costs, are all subject to increases due to market forces and economic or geopolitical conditions or other factors beyond our control, including as a result of rerouting itineraries due to ports closing or not accepting passengers in connection with the COVID-19 pandemic. Increases in these operating costs could adversely affect our future profitability when an economic recovery begins.

Conducting business globally may result in increased costs and other risks.

We operate our business globally, which exposes us to a number of risks, including increased exposure to a wider range of regional and local economic conditions, volatile local political conditions, potential changes in duties and taxes, including changing and/or uncertain interpretations of existing tax laws and regulations, required compliance with additional laws and policies affecting cruising, vacation or maritime businesses or governing the operations of foreign-based companies, currency fluctuations, interest rate movements, difficulties in operating under local business environments, port quality and availability in certain regions, U.S. and global anti-bribery laws or regulations, imposition of trade barriers and restrictions on repatriation of earnings.

Our future growth strategies increasingly depend on the growth and sustained profitability of international markets. Factors that will be critical to our success in these markets include our ability to continue to raise awareness of our products and our ability to adapt our offerings to best suit rapidly evolving consumer demands. This risk is further heightened by the COVID-19 pandemic, as authorities in many of these markets have implemented numerous measures to contain the spread and impact of COVID-19, such as travel bans and restrictions, shelter-in-place/stay-at-home orders, and other limitations on business activity, including business closures. The execution of our planned growth strategies is dependent on meeting the governmental and regulatory measures and policies in each of these markets as they begin to re-open. Our ability to realize our future growth strategy is highly dependent on our ability to satisfy country-specific policies and requirements in order to return to service, as well as meeting the needs of region specific consumer preferences as services come back online. These factors may cause us to reevaluate some of our international business strategies.

Operating globally also exposes us to numerous and sometimes conflicting legal, regulatory and tax requirements. In many parts of the world, including countries in which we operate, practices in the local business communities might not conform to international business standards. These legal and regulatory requirements and standards may change in response to the COVID-19 pandemic, and there may be greater uncertainty as to the interpretation and enforcement of applicable laws and regulations, including those introduced in response to the COVID-19 pandemic. We cannot guarantee consistent interpretation, application, and enforcement of rules and regulations put in place in response to the COVID-19 pandemic, which could place limits on our operations or increase our costs, as well as negatively impact our future growth strategies in our key growth markets. We must adhere to policies designed to promote legal and regulatory compliance as well as applicable laws and regulations. However, we might not be successful in ensuring that our employees, agents, representatives and other third parties with whom we associate throughout the world properly adhere to them. In addition, we may be exposed to the risk

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of penalties and other liabilities if we fail to comply with all applicable legal and regulatory requirements introduced in response to the COVID-19 pandemic, which may be subject to frequent and rapid change. Failure by us, our employees or any of these third parties to adhere to our policies or applicable laws or regulations could result in penalties, sanctions, damage to our reputation and related costs, which in turn could negatively affect our results of operations and cash flows.

We have operations in, and source passengers from, the United Kingdom and the European Union. On January 31, 2020, the United Kingdom withdrew from the European Union and immediately entered an 11-month transition period. Uncertainty during the transition period (including any impact that COVID-19 may have on the negotiations during this transition period) could lead to adverse effects on the economy of the United Kingdom, including the value of the British Pound, and the other economies in which we operate, making it more difficult to source passengers from these regions. Additionally, if the withdrawal is not executed effectively, it could adversely affect tax, legal and regulatory regimes to which our business in the region is subject. The withdrawal could also, among other potential outcomes, disrupt the free movement of goods, services and people between the United Kingdom and the European Union, if not executed effectively.

As a global operator, our business also may be impacted by changes in U.S. policy or priorities in areas such as trade, immigration (including any continuation of any of the immigration policies put in place by the U.S. government in response to the COVID-19 pandemic) and/or environmental or labor regulations, among others. Depending on the nature and scope of any such changes, they could impact our domestic and international business operations. Any such changes, and any international response to them, could potentially introduce new barriers to passenger or crew travel and/or cross border transactions, impact our guest experience and/or increase our operating costs.

If we are unable to address these risks adequately, our financial position and results of operations could be adversely affected, including potentially impairing the value of our ships and other assets.

Price increases for commercial airline service for our guests or major changes or reduction in commercial airline service and/or availability could adversely impact the demand for cruises and undermine our ability to provide reasonably priced vacation packages to our guests.

Many of our guests depend on scheduled commercial airline services to transport them to or from the ports where our cruises embark or disembark. Increases in the price of airfare would increase the overall price of the cruise vacation to our guests, which may adversely impact demand for our cruises. In addition, changes in the availability and/or regulations governing commercial airline services, including those resulting from the COVID-19 pandemic, have adversely affected and could continue to adversely affect our guests’ ability to obtain air travel, as well as our ability to transfer our guests to or from our cruise ships, which could adversely affect our results of operations.

Fears of terrorist attacks, war, and other hostilities could have a negative impact on our results of operations.

Events such as terrorist attacks, war (or war-like conditions), conflicts (domestic or cross-border), civil unrest and other hostilities, including an escalation in the frequency or severity of incidents, and the resulting political instability, travel restrictions and advisories, and concerns over safety and security aspects of traveling or the fear of any of the foregoing have had, and could have in the future, a significant adverse impact on demand and pricing in the travel and vacation industry. In view of our global operations, we are susceptible to a wide range of adverse events. These events could also result in additional security measures taken by local authorities which may potentially impact access to ports and/or destinations.

Fluctuations in foreign currency exchange rates, fuel prices and interest rates could affect our financial results.

We are exposed to market risk attributable to changes in foreign currency exchange rates, fuel prices and interest rates. Significant changes in any of the foregoing could have a material impact on our financial results, net of the impact of our hedging activities and natural offsets. Our operating results have been and will continue to be

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impacted, often significantly, by changes in each of these factors. The value of our earnings in foreign currencies is adversely impacted by a strong U.S. dollar. In addition, any significant increase in fuel prices could materially and adversely affect our business as fuel prices not only impact our fuel costs, but also some of our other expenses, such as crew travel, freight, and commodity prices. Mandatory fuel restrictions, such as the International Maritime Organization’s 2020 Low Sulphur Regulation (“IMO 2020”), may also create uncertainty related to the price and availability of certain fuel types potentially impacting operating costs and the value of our related hedging instruments. Also, a significant increase in interest rates could materially impact the cost of our floating rate debt. Furthermore, regulatory changes, such as the announcement of the United Kingdom’s Financial Conduct Authority to phase out LIBOR by the end of 2021, may adversely affect our portfolio of floating-rate debt and interest rate derivatives. If LIBOR ceases to exist, we may need to renegotiate any credit agreements or interest rate derivatives agreements extending beyond 2021 that utilize LIBOR as a factor in determining the interest rate or hedge rate, which could adversely impact our cost of debt.

Changes in U.S. or other countries’ foreign travel policy may affect our results of operations.

Changes in U.S. foreign policy could result in the imposition of travel restrictions or travel bans on U.S. persons to certain countries or result in the imposition of U.S. travel advisories, warnings, rules, regulations or legislation that could expose us to penalties or claims of monetary damages. The timing and scope of these changes are unpredictable, and they could cause us to cancel scheduled sailings, possibly on short notice, or could result in possible litigation against us. This, in turn, could decrease our revenue, increase our operating costs and otherwise impair our profitability. For instance, in June 2019, the U.S. government announced that cruise ships would no longer be allowed to travel between the U.S. and Cuba. This required us to change our high yielding Cuba sailings on short notice, which impacted our earnings. Moreover, in May 2019, the U.S. government activated Title III of the Cuban Liberty and Solidarity (Libertad) Act of 1996, popularly known as the Helms-Burton Act. This allowed certain individuals whose property was confiscated by the Cuban government to sue in U.S. courts anyone who “traffics” in the property in question. The activation of Title III has resulted in litigation against us and others in the tourism industry.

Additionally, in the first quarter of 2020, the U.S. Department of State, along with other governments, including Canada, issued travel advisories warning against cruise travel as a result of the COVID-19 pandemic and subsequently imposed restrictions on those entering the U.S. and many nations imposed strict temporary restrictions on international travel. This, combined with other factors, ultimately lead to the company voluntarily suspending the sailings of our fleet globally through at least June 11, 2020 and Alaska sailings at least until June 30, 2020 and may limit or slow our ability to resume operations in the near term. In addition to the loss of revenues, our financial condition is affected by refund requests, future cruise credit issuances, and other costs associated with returning passengers and crew home safely.

Disease outbreaks and an increase in concern about the risk of illness could adversely impact our business and results from operations.

Disease outbreaks and increased concern related to illness when travelling to, from, and on our ships could cause a drop in demand for cruises, guest cancellations, travel restrictions, an unavailability of ports and/or destinations, cruise cancellations, ship redeployments and an inability to source our crew, provisions or supplies from certain places. Due to the complex and evolving nature of the COVID-19 pandemic we cannot predict the duration of the effect of the current pandemic, and the magnitude is dependent on the development of future events and responses from governments, other authorities, and individual consumers. Our industry may be subject to enhanced health and safety requirements in the future which may be costly and take a significant amount of time to implement across our fleet and we may be subject to concerns that cruises are susceptible to the spread of infectious diseases such as COVID-19. These effects may extend beyond any resolution of the current COVID-19 pandemic through the development of a vaccine or effective therapeutic treatment, and the impact of any of these factors could have a material adverse effect on our business and results of operations.

Incidents on ships, at port facilities, land destinations and/or affecting the cruise vacation industry in general, and the associated negative media coverage and publicity, could affect our reputation and impact our sales and results of operations.

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The ownership and/or operation of cruise ships, private destinations, port facilities and shore excursions involves the risk of accidents, illnesses, mechanical failures, environmental incidents and other incidents which may bring into question safety, health, security and vacation satisfaction and can negatively impact our sales, operations and reputation. Incidents involving cruise ships, and, in particular the safety, health and security of guests and crew and the media coverage thereof, including those related to the COVID-19 pandemic, have impacted and could continue to impact demand for our cruises and pricing in the industry. In particular, we cannot predict the impact on our financial performance and our cash flows required for cash refunds of deposits as a result of the pause in our global fleet cruise operations, which may be prolonged, and the public’s concern regarding the health and safety of travel, especially by cruise ship, and related decreases in demand for travel and cruising. Moreover, our ability to attract and retain guests and crew depends, in part, upon the perception and reputation of our company and our brands and the public’s concerns regarding the health and safety of travel generally, as well as regarding the cruising industry and our ships specifically. Our reputation and our business could also be damaged by continued or additional negative publicity regarding the cruise industry in general, including publicity regarding the spread of contagious disease such as COVID-19, over-tourism in key ports and destinations and the potentially adverse environmental impacts of cruising. The considerable expansion in the use of social and digital media over recent years has compounded the potential scope and reach of any negative publicity. In addition, incidents involving cruise ships may result in additional costs to our business, increasing government or other regulatory oversight and, in certain cases, potential litigation.

Significant weather, climate events and/or natural disasters could adversely impact our business and results from operations.

Natural disasters (e.g. earthquakes, volcanos), weather and/or climate events (including hurricanes and typhoons) could impact our source markets and operations resulting in travel restrictions, guest cancellations, an inability to source our crew or our provisions and supplies from certain places. We are often forced to alter itineraries and occasionally cancel a cruise or a series of cruises or to redeploy our ships due to these types of events, which could have an adverse effect on our sales, operating costs and profitability in the current and future periods. Increases in the frequency, severity or duration of these types of events could exacerbate their impact and cause further disruption to our operations or make certain destinations less desirable or unavailable impacting our revenues and profitability further. Any of the foregoing could have an adverse impact on our results of operations and on industry performance.

Our reliance on shipyards, their subcontractors and our suppliers to implement our newbuild and ship upgrade programs and to repair and maintain our ships exposes us to risks which, if realized, could adversely impact our business.

We rely on shipyards, their subcontractors and our suppliers to effectively construct our new ships and to repair, maintain, and upgrade our existing ships on a timely basis and in a cost effective manner; and there are a limited number of shipyards with the capability and capacity to build, repair, maintain and/or upgrade our ships. As such, any disruptions effecting the newbuild or fleet modernization supply chain will adversely impact our business as there are limited substitutes.

The COVID-19 pandemic has led to suspensions and/or a slowdowns of work at certain shipyards, which impacts our ability to construct new ships when and as planned, our ability to timely and cost-effectively procure new capacity, and our ability to execute scheduled drydocks and/or fleet modernizations. We believe the effects of the COVID-19 pandemic on the shipyards, their subcontractors, and our suppliers will result in a delay in ship deliveries and we cannot yet reasonably predict the extent and duration of such delays. Variations from our plan could have a significant negative impact on our business operations and financial condition.

Building, repairing, maintaining and/or upgrading a ship is sophisticated work that involves significant risks. In addition, the prices of labor and/or various commodities that are used in the construction of ships can be subject to volatile price changes, including the impact of fluctuations in foreign exchange rates. Shipyards, their subcontractors, and/or our suppliers may encounter financial, technical or design problems when doing these jobs. If

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materialized, these problems could impact the timely delivery or costs of new ships or the ability of shipyards to repair and upgrade our fleet in accordance with our needs or expectations. In addition, delays, mechanical faults and/or unforeseen incidents may result in cancellation of cruises, or, in more severe situations, delays of new ship orders, or necessitate unscheduled drydocks. Such events could result in lost revenue, increased operating expenses, or both, and thus adversely affect our results of operations.

An increase in capacity worldwide or excess capacity in a particular market could adversely impact our cruise sales and/or pricing.

Although our ships can be redeployed, cruise sales and/or pricing may be impacted by the introduction of new ships into the marketplace, reductions in cruise capacity, overall market growth and deployment decisions of ourselves and our competitors. As of December 31, 2019, a total of 67 new ships with approximately 159,000 berths are on order for delivery through 2024 in the cruise industry, including 15 ships currently scheduled to be delivered to us through 2024. The further net growth in capacity from these new ships and future orders, without an increase in the cruise industry’s demand and/or share of the vacation market, could depress cruise prices and impede our ability to achieve yield improvement. Additionally, due to our global suspension of operations and the suspension of operations by other cruise operators, cruise prices and yield improvement are further at risk depending on how, when, and where global operations resume.

In addition, to the extent that we or our competitors deploy ships to a particular itinerary/region and the resulting capacity in that region exceeds the demand, we may lower pricing and profitability may be lower than anticipated. This risk exists in emerging cruise markets, where capacity has grown rapidly over the past few years and in mature markets where excess capacity is typically redeployed. Any of the foregoing could have an adverse impact on our results of operations, cash flows and financial condition, including potentially impairing the value of our ships and other assets.

Unavailability of ports of call may adversely affect our results of operations.

We believe that port destinations are a major reason why guests choose to go on a particular cruise or on a cruise vacation. The availability of ports and destinations is affected by a number of factors, including industry demand and competition for key ports and destinations, existing capacity constraints, constraints related to the size of certain ships, security, financial limitations on port development, exclusivity arrangements that ports may have with our competitors, geopolitical developments and local governmental regulations; and in light of the COVID-19 pandemic, port availability could also be subject to immediate change depending on local and/or onboard disease outbreaks or other government restrictions as well as limited availability when sailing resumes. In addition, higher fuel costs may adversely impact the destinations we choose to call upon on certain of our itineraries as they become too costly to include.

Increased demand and competition for key ports of call or destinations, limitations on the availability or feasibility of use of specific ports of call and/or constraints on the availability of shore excursions and other service providers at such ports or destinations could adversely affect our results of operations.

Growing anti-tourism sentiments and environmental concerns related to cruising could adversely impact our operations.

Certain ports and destinations are facing a surge of both cruise and non-cruise tourism which, in certain cases, has fueled anti-tourism sentiments and related countermeasures to limit the volume of tourists allowed in these destinations. In certain destinations, countermeasures to limit the volume of tourists are being contemplated and/or put into effect, including proposed limits on cruise ships and cruise passengers. Potential restrictions in ports and destinations such as Venice and Barcelona could limit the itinerary and destination options we can offer our passengers going forward. Some environmental groups have also generated negative publicity about the environmental impact of the cruise vacation industry and are advocating for more stringent regulation of ship emissions at berth and at sea. These anti-tourism sentiments and growing environmental scrutiny of the cruise

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industry and any related countermeasures could adversely impact our operations and financial results and subject us to increasing compliance costs.

We may lose business to competitors throughout the vacation market.

We operate in the vacation market and cruising is one of many alternatives for people choosing a vacation. We therefore risk losing business not only to other cruise lines, but also to other vacation operators, which provide other leisure options, including hotels, resorts, internet-based alternative lodging sites and package holidays and tours.

We face significant competition from other cruise lines on the basis of cruise pricing, travel agent preference and also in terms of the nature of ships, services and destinations that we offer to guests. Our principal competitors within the cruise vacation industry include Carnival Corporation & plc, which owns, among others, Aida Cruises, Carnival Cruise Line, Costa Cruises, Cunard Line, Holland America Line, P&O Cruises, Princess Cruises and Seabourn; Disney Cruise Line; MSC Cruises; and Norwegian Cruise Line Holdings Ltd, which owns Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises. Our revenues are sensitive to the actions of other cruise lines in many areas including pricing, scheduling, capacity and promotions, which can have a substantial adverse impact not only on our revenues, but on overall industry revenues.

In the event that we do not effectively market or differentiate our cruise brands from our competitors or otherwise compete effectively with other vacation alternatives and new or existing cruise companies, our results of operations and financial position could be adversely affected.

We may not be able to obtain sufficient financing or capital for our needs or may not be able to do so on terms that are acceptable or consistent with our expectations.

To fund our capital expenditures (including new ship orders), operations and scheduled debt payments, we have historically relied on a combination of cash flows provided by operations, drawdowns under available credit facilities, the incurrence of additional indebtedness and the sale of equity or debt securities in private or public securities markets. Any circumstance or event which leads to a decrease in consumer cruise spending, such as worsening global economic conditions or significant incidents impacting the cruise industry, including the COVID-19 pandemic, negatively affects our operating cash flows. In the case of the COVID-19 pandemic and the resulting suspension of our operations, these circumstances have also resulted in credit rating downgrades. See “—Adverse worldwide economic or other conditions could result in prolonged reduction in the demand for cruises and passenger spending, adversely impacting our operating results, cash flows and financial condition including potentially impairing the value of our goodwill, ships, trademarks and other assets and potentially affecting other critical accounting estimates where the change may be material to our operating results” and “—Incidents on ships, at port facilities, land destinations and/or affecting the cruise vacation industry in general, and the associated negative media coverage and publicity, could affect our reputation and impact our sales and results of operations” for more information.

Our ability to access additional funding as and when needed, our ability to timely refinance and/or replace our outstanding debt securities and credit facilities on acceptable terms and our cost of funding will depend upon numerous factors including, but not limited to, the recovery and strength of the financial markets, our financial performance, the performance of our industry in general and the size, scope and timing of our financial needs. In addition, even where financing commitments have been secured, significant disruptions in the capital and credit markets could cause our banking and other counterparties to breach their contractual obligations to us or could cause the conditions to the availability of such funding not to be satisfied. This could include failures of banks or other financial service companies to fund required borrowings under our loan agreements or to pay us amounts that may become due or return collateral that is refundable under our derivative contracts for hedging of fuel prices, interest rates and foreign currencies or other agreements. If any of the foregoing occurs for a prolonged period of time it will have a long-term negative impact on our cash flows and our ability to meet our obligations cannot be guaranteed.

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Our liquidity could be adversely impacted if we are unable to satisfy the covenants required by our credit facilities.

Our debt agreements contain covenants, including financial and other covenants restricting our ability, or requiring us, to take certain actions. Certain of our separate unsecured bank facilities totaling an outstanding principal amount of approximately $4.7 billion as of March 31, 2020 contain covenants that require us, among other things, to maintain a fixed charge coverage ratio of at least 1.25x and limit our net debt-to-capital ratio to no more than 62.5%, as further described in Note 9. Debt to our consolidated financial statements under Item 8. Financial Statements and Supplementary Data in our consolidated financial statements and the related notes thereto contained in our Annual Report on Form 10-K for the year ended December 31, 2019 as updated by our Current Report filed on May 13, 2020. In May 2020, the requisite lenders under such unsecured bank facilities agreed to waive the requirement to comply with such financial covenants, so that the next time we will be required to comply with such covenants will be for the three months ended June 30, 2021. As a condition to obtaining such waivers, we agreed to certain additional covenants during the covenant waiver period, including that we maintain at least $300 million in unrestricted cash and cash equivalents (tested monthly) and that we are not permitted during the covenant waiver period, subject to limited exceptions, to pay cash dividends or make share repurchases unless we would have been compliant with our fixed charge coverage ratio at such time. In addition, the lenders under such unsecured bank facilities required a number of structural enhancements to such facilities as further described in Note 9. Debt to our consolidated financial statements under Item 8. Financial Statements and Supplementary Data in our consolidated financial statements and the related notes thereto contained in our Annual Report on Form 10-K for the year ended December 31, 2019 as updated by our Current Report filed on May 13, 2020. Among other things, certain of our subsidiaries that directly own other of our subsidiaries that own certain of our cruise ships are not permitted to incur or guarantee debt in excess of $1.7 billion in the aggregate prior to April 5, 2022 and, in certain circumstances, are required to provide additional guarantees for the benefit of the lenders under such facilities. Until such additional guarantees are released, which will occur automatically in certain circumstances where we eliminate secured and guaranteed debt, certain of our subsidiaries will be subject to limitations on incurring debt and creating liens on their assets and we and our subsidiaries will be subject to limitations on selling assets that are subject to such guarantees.

In addition, our ability to maintain our credit facilities may also be impacted by changes in our ownership base. More specifically, we may be required to prepay our bank financing facilities 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. 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, which would require us to offer to repurchase our public debt securities in the event of such change of control.

Failure to comply with the terms of these debt facilities, or any prepayment or repurchase obligations, could result in an event of default. Generally, if an event of default under any debt agreement or debt security occurs, then pursuant to cross default acceleration clauses, our outstanding debt and derivative contract payables could become due and/or terminated. In addition, in such events, our credit card processors could hold back payments to create a reserve. We cannot provide assurances that we would have sufficient liquidity to repay, or the ability to refinance the debt if such amounts were accelerated upon an event of default.

If we are unable to appropriately balance our cost management and capital allocation strategies with our goal of satisfying guest expectations, it may adversely impact our business success.

Our goals call for us to provide high quality products and deliver high quality services. There can be no assurance that we can successfully balance these goals with our cost management and capital allocation strategies. Our business also requires us to make capital allocation decisions across a broad scope of investment options with varying return profiles and time horizons for value realization. These include significant capital investment decisions such as ordering new ships, upgrading our existing fleet, enhancing our technology and/or data capabilities, and expanding our portfolio of land-based assets, based on expected market preferences, competition and projected demand. There can be no assurance that our strategies will be successful, which could adversely impact our

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business, financial condition and results of operations. Investments in older tonnage, in particular, run the risk of not meeting expected returns and diluting related asset values.

Our attempts to expand our business into new markets and new ventures may not be successful.

We opportunistically seek to grow our business through, among other things, expansion into new destinations or source markets and establishment of new ventures complementary to our current offerings. These attempts to expand our business increase the complexity of our business, require significant levels of investment and can strain our management, personnel, operations and systems. In addition, we may be unable to execute our attempts to expand our business as a result of the impacts of the COVID-19 pandemic, as described elsewhere herein. There can be no assurance that these business expansion efforts will develop as anticipated or that we will succeed, and if we do not, we may be unable to recover our investment, which could adversely impact our business, financial condition and results of operations.

Risks associated with our development and operation of key land-based destination projects may adversely impact our business or results of operations.

We have invested, either directly or indirectly through joint ventures and partnerships, in a growing portfolio of key land-based projects including port and terminal facilities, private destinations and multi-brand destination projects. These investments can increase our exposure to certain key risks depending on the scope, location, and the ownership and management structure of these projects. These risks include susceptibility to weather events, exposure to local political/regulatory developments and policies, logistical challenges and human resource and labor risks; in addition to location-specific safety, environmental, and health risks, including challenges posed by the COVID-19 pandemic and its effects locally where we have these projects and relationships.

Our reliance on travel agencies to sell and market our cruises exposes us to certain risks which, if realized, could adversely impact our business.

We rely on travel agencies to generate the majority of bookings for our ships. Accordingly, we must ensure that our commission rates and incentive structures remain competitive. If we fail to offer competitive compensation packages or fail to maintain our relationships, these agencies may be incentivized to sell cruises offered by our competitors to our detriment, which could adversely impact our operating results. Our reliance on third-party sellers is particularly pronounced in certain markets. In addition, the travel agent industry is sensitive to economic conditions that impact discretionary income of consumers. Significant disruptions, such as those caused by the COVID-19 pandemic, or contractions in the industry could reduce the number of travel agencies available for us to market and sell our cruises, which could have an adverse impact on our financial condition and results of operations. Additionally, the strength of our recovery from suspended operations could be delayed if we are not aligned and partnered with key travel agencies.

Disruptions in our shoreside or shipboard operations or our information systems may adversely affect our results of operations.

Our principal executive office and principal shoreside operations are located in Florida, and we have shoreside offices throughout the world. Actual or threatened natural disasters (e.g., hurricanes/typhoons, earthquakes, tornadoes, fires or floods), municipal lockdowns, curfews, quarantines, or similar events in these locations may have a material impact on our business continuity, reputation and results of operations. For instance, virtually all Company shoreside operations are working remotely due to the COVID-19 pandemic, which may pose increased technological risks. In addition, substantial or repeated information system failures, computer viruses or cyber attacks impacting our shoreside or shipboard operations could adversely impact our business. We do not generally carry business interruption insurance for our shoreside or shipboard operations or our information systems. As such, any losses or damages incurred by us could have an adverse impact on our results of operations.

The loss of key personnel, our inability to recruit or retain qualified personnel, or disruptions among our shipboard personnel due to strained employee relations could adversely affect our results of operations.

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Our success depends, in large part, on the skills and contributions of key executives and other employees, and on our ability to recruit, develop and retain high quality personnel as well as having adequate succession plans and back-up operating plans for when critical executives are unable to serve. As demand for qualified personnel in the industry grows, we must continue to effectively recruit, train, motivate and retain our employees, both shoreside and on our ships, in order to effectively compete in our industry, maintain our current business and support our projected global growth. In addition, we may experience difficulties in recruiting and retaining qualified personnel if we reduce the levels of fixed or variable compensation that we offer (including equity compensation impacted by the trading price of our equity), whether in response to the impacts of the COVID-19 pandemic or otherwise.

As of December 31, 2019, 89% of our shipboard employees were covered by collective bargaining agreements. A dispute under our collective bargaining agreements could result in a work stoppage of those employees covered by the agreements. We may not be able to satisfactorily renegotiate these collective bargaining agreements when they expire. In addition, existing collective bargaining agreements may not prevent a strike or work stoppage on our ships. We may also be subject to or affected by work stoppages unrelated to our business or collective bargaining agreements. Any such work stoppages or potential work stoppages could have a material adverse effect on our financial results, as could a loss of key employees, our inability to recruit or retain qualified personnel or disruptions among our personnel.

Business activities that involve our co-investments with third parties may subject us to additional risks.

Partnerships, joint ventures and other business structures involving our co-investments with third parties generally include some form of shared control over the operations of the business and create additional risks, including the possibility that other investors in such ventures could become bankrupt or otherwise lack the financial resources to meet their obligations, or could have or develop business interests, policies or objectives that are inconsistent with ours. In addition to financial risks, our co-investment activities may also present managerial and operational risks and expose us to reputational or legal concerns. These or other issues related to our co-investments with third parties could adversely impact our operations or liquidity. Due to the COVID-19 pandemic, our Pullmantur, TUI Cruises and Silversea affiliate cruise lines have suspended sailings and their operations, results of operations and liquidity have been and will continue to be adversely materially impacted. The Company may be required to provide funding for these affiliated operations and it is unclear when and to what extent these brands will resume operations and our ability to provide such funding will be limited by the level and terms of our outstanding indebtedness. Further, due to the arrangements we have in place with our partners in these ventures, we are limited in our ability to control the strategy of these ventures if and when they resume operations, or their use of capital and other key factors to their results of operation which could adversely affect our investments and impact our results of operations.

We have a partial ownership interest in Silversea Cruises and as a result may be unable to control the amount of cash we receive or retain from the operation of Silversea Cruises and are limited in the flexibility we have to support Silversea Cruises’ operations.

On July 31, 2018, we acquired a 66.7% equity stake in Silversea Cruises. In connection with the acquisition of our equity stake in Silversea Cruises, we with the other shareholder of Silversea Cruises became party to a Shareholders’ Agreement with Silversea Cruises and Silversea Cruises Group Ltd. (the “Shareholders’ Agreement”). Among other things, the Shareholders’ Agreement contains certain provisions concerning our funding and support of Silversea Cruises. We have provided and expect to continue to provide significant operational support and funding to Silversea Cruises. However our ability to control the operational support and funding that we believe is advisable to provide to Silversea Cruises is limited by provisions of the Shareholders’ Agreement. To the extent we continue to own less than 100% of Silversea Cruises and Silversea Cruises requires additional operational support and funding, our flexibility to contribute such support and funding is limited by the rights of the other shareholder of Silversea Cruises. Our inability, or limited ability, to control the operations and/or management of Silversea Cruises may limit the business strategies and operational results of Silversea Cruises and the value of our investment. Further, our continued significant operational support and funding of Silversea Cruises may have an adverse impact on our business and results of operation.

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In addition, Silversea Cruises is the guarantor of the 7.25% senior secured notes 2025 issued by Silversea Cruise Finance Ltd. (the “Silversea Notes”). As of May 12, 2020, the Silversea Notes are rated Baa2 by Moody’s and BBB- by S&P. If the credit rating of the Silversea Notes is downgraded to below investment grade by one rating agency, then Silversea Cruises and its restricted subsidiaries will become subject to certain restrictive and other covenants, the application of which is currently suspended unless and until any such downgrade occurs. For example, if the credit rating of the Silversea Notes is downgraded to below investment grade, among other things, Silversea Cruises and its restricted subsidiaries will be subject to limitations on the incurrence of indebtedness, limitations on entering into transactions with affiliates (including Royal Caribbean and its subsidiaries that are not restricted subsidiaries of Silversea Cruises) and limitations on the payment of dividends and other distributions from Silversea Cruises to Royal Caribbean, each of which may limit our ability to obtain funding and may decrease our operational and financial flexibility, including the ability to make upstream payments from Silversea Cruises. The Silversea Notes are guaranteed by the Company on a senior unsecured basis. Any event of default or acceleration of the indebtedness under the Silversea Notes could cause the borrowings under other of our debt instruments that contain cross-default provisions to be accelerated or become payable on demand.

Past or pending business acquisitions or potential acquisitions that we may decide to pursue in the future carry inherent risks which could adversely impact our financial performance and condition.

The Company, from time to time, has engaged in acquisitions (e.g., our Silversea Cruises acquisition) and may pursue acquisitions in the future, which are subject to, among other factors, the Company’s ability to identify attractive business opportunities and to negotiate favorable terms for such opportunities. Accordingly, the Company cannot make any assurances that potential acquisitions will be completed timely or at all, or that if completed, we would realize the anticipated benefits of such acquisition. Acquisitions also carry inherent risks such as, among others: (1) the potential delay or failure of our efforts to successfully integrate business processes and realizing expected synergies; (2) difficulty in aligning procedures, controls and/or policies; and (3) future unknown liabilities and costs that may be associated with an acquisition. In addition, acquisitions may also adversely impact our liquidity and/or debt levels, and the recognized value of goodwill and other intangible assets can be negatively affected by unforeseen events and/or circumstances, which may result in an impairment charge. Any of the foregoing events could adversely impact our financial condition and results of operations.

We rely on supply chain vendors and third-party service providers who are integral to the operations of our businesses. These vendors and service providers are also affected by COVID-19 and may be unable or unwilling to deliver on their commitments or may act in ways that could harm our business.

We rely on supply chain vendors to deliver key products to the operations of our businesses around the world. Any event impacting a vendor’s ability to deliver goods of the expected quality at the location and time needed could negatively impact our ability to deliver our cruise experience. Events impacting our supply chain could be caused by factors beyond the control of our suppliers or us, including inclement weather, natural disasters, increased demand, problems in production or distribution and/or disruptions in third-party logistics or transportation systems, such as those caused by the COVID-19 pandemic. Any such interruptions to our supply chain could increase our costs and could limit the availability of products critical to our operations.

In order to achieve cost and operational efficiencies, we outsource to third-party vendors certain services that are integral to the operations of our global businesses, such as our onboard concessionaires, certain of our call center operations and operation of a large part of our information technology systems, which are also affected by the COVID-19 pandemic. We are subject to the risk that certain decisions are subject to the control of our third-party service providers and that these decisions may adversely affect our activities. A failure to adequately monitor a third-party service provider’s compliance with a service level agreement or regulatory or legal requirements could result in significant economic and reputational harm to us. There is also a risk the confidentiality, privacy and/or security of data held by third parties or communicated over third-party networks or platforms could become compromised.

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If we are unable to keep pace with developments in technology or technological obsolescence, including technology in response to the COVID-19 pandemic, our operations or competitive position could become impaired.

Our business continues to demand the use of sophisticated technology and systems. These technologies and systems require significant investment and must be proven, refined, updated, upgraded and/or replaced with more advanced systems in order to continue to meet our customers’ demands and expectations. If we are unable to do so in a timely manner or within reasonable cost parameters or if we are unable to appropriately and timely train our employees to operate any of these new systems, our business could suffer. We also may not achieve the benefits that we anticipate from any new technology or system, which could result in higher than anticipated costs or impair our operating results.

In response to the COVID-19 pandemic, there has been a search for technology to accurately detect, either directly or indirectly, whether an individual is or has been infected with the virus or has been exposed to someone who is or might be infected. While this technology is in the early stages, as this technology continues to develop we may be faced with decisions regarding what technology to adopt for testing our passengers and employees, and what safety procedures to adopt for future sailings. We may be unable to obtain appropriate technology in a timely manner or at all or we may incur significant costs in doing so. A failure to adopt the appropriate technology, a failure or obsolescence in the technology that we do adopt, or a failure in our safety procedures could adversely affect our results of operations.

We are exposed to cyber security attacks and data breaches, including the risks and costs associated with protecting our systems and maintaining integrity and security of our business information, as well as personal data of our guests, employees and business partners.

We are subject to cyber security attacks. These cyber attacks can vary in scope and intent from attacks with the objective of compromising our systems, networks and communications for economic gain to attacks with the objective of disrupting, disabling or otherwise compromising our maritime and/or shoreside operations. The attacks can encompass a wide range of methods and intent, including phishing attacks, illegitimate requests for payment, theft of intellectual property, theft of confidential or non-public information, installation of malware, installation of ransomware and theft of personal or business information. The breadth and scope of these attacks, as well as the techniques and sophistication used to conduct these attacks, have grown over time.

A successful cyber security attack may target us directly, or it may be the result of a third party’s inadequate care. In either scenario, the Company may suffer damage to its systems and data that could interrupt our operations, adversely impact our reputation and brand and expose us to increased risks of governmental investigation, litigation, fines and other liability, any of which could adversely affect our business. Furthermore, responding to such an attack and mitigating the risk of future attacks could result in additional operating and capital costs in systems technology, personnel, monitoring and other investments.

In addition, we are also subject to various risks associated with the collection, handling, storage and transmission of sensitive information. In the course of doing business, we collect large volumes of employee, customer and other third-party data, including personally identifiable information and individual credit data, for various business purposes. We are subject to federal, state and international laws (including the European Union General Data Protection Regulation), as well as industry standards, relating to the collection, use, retention, security and transfer of personally identifiable information and individual credit data. In many cases, these laws apply not only to third-party transactions, but also to transfers of information between the Company and its subsidiaries, and among the Company, its subsidiaries and other parties with which the Company has commercial relations. Several jurisdictions have passed laws in this area, and other jurisdictions are considering imposing additional restrictions. These laws continue to develop and may be inconsistent from jurisdiction to jurisdiction. Complying with emerging and changing international requirements has caused, and may cause us to incur substantial costs or require us to change our business practices. If we fail to comply with the various applicable data collection and privacy laws, we could be exposed to fines, penalties, restrictions, litigation or other expenses, and our business could be adversely impacted.

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While we continue to evolve our cyber security practices in line with our business’ reliance on technology and the changing external threat landscape, and we invest time, effort and financial resources to secure our systems, networks and communications, our security measures cannot provide absolute assurance that we will be successful in preventing or responding to all cyber security attacks. There can be no assurance that any breach or incident will not have a material impact on our operations and financial results.

Any breach, theft, loss, or fraudulent use of guest, employee, third-party or company data, could adversely impact our reputation and brand and our ability to retain or attract new customers, and expose us to risks of data loss, business disruption, governmental investigation, litigation and other liability, any of which could adversely affect our business. Significant capital investments and other expenditures could be required to remedy the problem and prevent future breaches, including costs associated with additional security technologies, personnel, experts and credit monitoring services for those whose data has been breached. Further, if we or our vendors experience significant data security breaches or fail to detect and appropriately respond to significant data security breaches, we could be exposed to government enforcement actions and private litigation.

Litigation, enforcement actions, fines or penalties could adversely impact our financial condition or results of operations and/or damage our reputation.

Our business is subject to various U.S. and international laws and regulations that could lead to enforcement actions, fines, civil or criminal penalties or the assertion of litigation claims and damages. In addition, improper conduct by our employees, agents or joint venture partners could damage our reputation and/or lead to litigation or legal proceedings that could result in civil or criminal penalties, including substantial monetary fines. In certain circumstances it may not be economical to defend against such matters and/or our legal strategy may not ultimately result in us prevailing in a matter. Such events could lead to an adverse impact on our financial condition or results of operations. In addition, we have experienced, and may continue to experience, increases in litigation pertaining to the COVID-19 crisis. We cannot predict the quantum or outcome of any such proceedings and the impact that they will have on our financial results, but any such impact may be material. While some of these claims are covered by insurance, we cannot be certain that all of them will be, which could have an adverse impact on our financial condition or results of operations.

The potential unavailability of insurance coverage, an inability to obtain insurance coverage at commercially reasonable rates or our failure to have coverage in sufficient amounts to cover our incurred losses may adversely affect our financial condition or results of operations.

We seek to maintain appropriate insurance coverage at commercially reasonable rates. We normally insure based on the cost of an asset rather than replacement value and we also elect to self-insure, co-insure, or use deductibles in certain circumstances for certain risks such as loss of use of a ship or a cyber security breach. The limits of insurance coverage we purchase are based on the availability of the coverage, evaluation of our risk profile and cost of coverage. We do not carry business interruption insurance and accordingly we have no insurance coverage for loss of revenues or earnings from our ships or other operations. Accordingly, we are not protected against all risks and we cannot be certain that our coverage will be adequate for liabilities actually incurred which could result in an unexpected decrease in our revenue and results of operations in the event of an incident.

We are members of four Protection and Indemnity (“P&I”) clubs, which are part of a worldwide group of 13 P&I clubs, known as the International Group of P&I Clubs (the “IG”). P&I coverage provided by the clubs is on a mutual basis and we are subject to additional premium calls in the event of a catastrophic loss incurred by any member of the 13 P&I clubs, whereby the reinsurance limits purchased by the IG are exhausted. We are also subject to additional premium calls based on investment and underwriting shortfalls experienced by our own individual insurers. Certain liabilities, costs, and expenses associated with the COVID-19 pandemic are insured by our participation in these P&I clubs.

We cannot be certain that insurance and reinsurance coverage will be available to us and at commercially reasonable rates in the future or at all or, if available, that it will be sufficient to cover potential claims. Additionally,

14

if we or other insureds sustain significant losses, the result may be higher insurance premiums, cancellation of coverage, or the inability to obtain coverage. Such events could adversely affect our financial condition or results of operations.

Environmental, labor, health and safety, financial responsibility and other maritime regulations could affect operations and increase operating costs.

The U.S. and various state and foreign government or regulatory agencies have enacted or may enact environmental regulations or policies, such as requiring the use of low sulfur fuels (e.g. IMO 2020), that could increase our direct cost to operate in certain markets, increase our cost for fuel, limit the supply of compliant fuel, cause us to incur significant expenses to purchase and/or develop new equipment and adversely impact the cruise vacation industry. While we have taken and expect to continue to take a number of actions to mitigate the potential impact of certain of these regulations, there can be no assurances that these efforts will be successful or completed on a timely basis.

There is increasing global regulatory focus on climate change, greenhouse gas and other emissions. These regulatory efforts, both internationally and in the U.S. are still developing, and we cannot yet determine what the final regulatory programs or their impact will be in any jurisdiction where we do business. However, such climate change-related regulatory activity in the future may adversely affect our business and financial results by requiring us to reduce our emissions, purchase allowances or otherwise pay for our emissions. Such activity may also impact us by increasing our operating costs, including fuel costs.

In addition, we are subject to various international, national, state and local laws, regulations and treaties that govern, among other things, discharge from our ships, safety standards applicable to our ships, treatment of disabled persons, health and sanitary standards applicable to our guests, security standards on board our ships and at the ship/port interface areas, and financial responsibilities to our guests. These issues are, and we believe will continue to be, an area of focus by the relevant authorities throughout the world. This could result in the enactment of more stringent regulation of cruise ships that could subject us to increasing compliance costs in the future.

A change in our tax status under the U.S. Internal Revenue Code, or other jurisdictions, may have adverse effects on our income.

We and a number of our subsidiaries are foreign corporations that derive income from a U.S. trade or business and/or from sources within the U.S. In connection with the year end audit, each year, Drinker Biddle & Reath LLP, our U.S. tax counsel, delivers to us an opinion, based on certain representations and assumptions set forth in it, to the effect that this income, to the extent derived from or incidental to the international operation of a ship or ships, is excluded from gross income for U.S. federal income tax purposes pursuant to Section 883 of the Internal Revenue Code. We believe that most of our income (including that of our subsidiaries) is derived from or incidental to the international operation of ships.

Our ability to rely on Section 883 could be challenged or could change in the future. Provisions of the Internal Revenue Code, including Section 883, are subject to legislative change at any time. Moreover, changes could occur in the future with respect to the identity, residence or holdings of our direct or indirect shareholders, trading volume or trading frequency of our shares, or relevant foreign tax laws of Liberia or Bahamas, such that they no longer qualify as equivalent exemption jurisdictions, that could affect our eligibility for the Section 883 exemption. Accordingly, there can be no assurance that we will continue to be exempt from U.S. income tax on U.S. source shipping income in the future. If we were not entitled to the benefit of Section 883, we and our subsidiaries would be subject to U.S. taxation on a portion of the income derived from or incidental to the international operation of our ships, which would reduce our net income.

Additionally, portions of our business are operated by companies that are within the United Kingdom tonnage tax regime. Further, some of our operations are conducted in jurisdictions where we rely on tax treaties to provide exemption from taxation. To the extent the United Kingdom tonnage tax laws change or we do not continue to meet

15

the applicable qualification requirements or if tax treaties are changed or revoked, we may be required to pay higher income tax in these jurisdictions, adversely impacting our results of operations.

As budgetary constraints continue to adversely impact the jurisdictions in which we operate, increases in income tax regulations, tax audits or tax reform affecting our operations may be imposed.

We are not a U.S. corporation and our shareholders may be subject to the uncertainties of a foreign legal system in protecting their interests.

Our corporate affairs are governed by our Articles of Incorporation and By-Laws and by the Business Corporation Act of Liberia. The provisions of the Business Corporation Act of Liberia resemble provisions of the corporation laws of a number of states in the U.S. However, while most states have a fairly well developed body of case law interpreting their respective corporate statutes, there are very few judicial cases in Liberia interpreting the Business Corporation Act of Liberia. As such, the rights and fiduciary responsibilities of directors under Liberian law are not as clearly established as the rights and fiduciary responsibilities of directors under statutes or judicial precedent in certain U.S. States jurisdictions. For example, the right of shareholders to bring a derivative action in Liberian courts may be more limited than in U.S. jurisdictions. There may also be practical difficulties for shareholders attempting to bring suit in Liberia and Liberian courts may or may not recognize and enforce foreign judgments. Thus, our public shareholders may have more difficulty in protecting their interests with respect to actions by management, directors or controlling shareholders than would shareholders of a corporation incorporated in a U.S. jurisdiction.

Provisions of our Articles of Incorporation, By-Laws and Liberian law could inhibit others from acquiring us, prevent a change of control, and may prevent efforts by our shareholders to change our management.

Certain provisions of our Articles of Incorporation and By-Laws and Liberian law may inhibit third parties from effectuating a change of control of the Company without approval from our board of directors which could result in the entrenchment of current management. These include provisions in our Articles of Incorporation that prevent third parties, other than A. Wilhelmsen AS. and Cruise Associates, from acquiring beneficial ownership of more than 4.9% of our outstanding shares without the consent of our board of directors.

16

EX-99.2

Exhibit 99.2

Explanatory Note

The outbreak of COVID-19 has resulted in an unprecedented global response to contain the spread of the disease. These global efforts have resulted in travel restrictions and created significant uncertainty regarding worldwide port closures and availability. As part of the global containment effort, the Company previously announced a voluntary suspension of its global cruise operations from March 13 through at least June 11, 2020. Continued disruptions to travel and port operations in various regions may result in further suspensions. These recent developments have had a significant impact on our operations and liquidity subsequent to the issuance of our Form 10-K on February 25, 2020. As a result of these effects, Note 1. General and Note 22. Events Subsequent to Original Issuance of Financial Statements to the financial statements as well as the report of our Independent Registered Public Accounting Firm set forth in this Exhibit 99.2 have been updated from the footnotes and the report of our Independent Registered Public Accounting Firm to the financial statements to our Annual Report on Form 10-K for the year ended December 31, 2019. No other changes, modifications or updates have been made to the 2019 financial statements. The 2019 financial statements do not reflect events that may have occurred after the original filing date except as noted above. Revisions are highlighted in blue font.

ROYAL CARIBBEAN CRUISES LTD.

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

	Page
Report of Independent Registered Public Accounting Firm	F-2
Consolidated Statements of Comprehensive Income (Loss)	F-5
Consolidated Balance Sheets	F-6
Consolidated Statements of Cash Flows	F-7
Consolidated Statements of Shareholders' Equity	F-9
Notes to the Consolidated Financial Statements	F-10

F-1

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Shareholders of Royal Caribbean Cruises Ltd.

Opinions on the Financial Statements and Internal Control over Financial Reporting

We have audited the accompanying consolidated balance sheets of Royal Caribbean Cruises Ltd. and its subsidiaries (the “Company”) as of December 31, 2019 and 2018, and the related consolidated statements of comprehensive income (loss), of shareholders' equity and of cash flows for each of the three years in the period ended December 31, 2019, including the related notes (collectively referred to as the “consolidated financial statements”). We also have audited the Company's internal control over financial reporting as of December 31, 2019, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2019 and 2018, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2019 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2019, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.

Change in Accounting Principle

As discussed in Note 2 to the consolidated financial statements, the Company changed the manner in which it accounts for leases in 2019.

Basis for Opinions

The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Report on Internal Control Over Financial Reporting (not presented herein) appearing under Item 9A of the Company's 2019 Annual Report on Form 10-K. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

Emphasis of Matter

As discussed in Note 1 to the consolidated financial statements, effective March 13, 2020, the Company suspended its global cruise operations in response to COVID-19. The Company currently expects to begin sailings in mid-summer 2020, however, if the ban on cruising is extended beyond the third quarter of 2020, the ban will have a material adverse impact on the Company’s current and forecasted liquidity levels. Management’s evaluation of the events and conditions and management’s plans to mitigate these matters are also described in Note 1.

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed 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. A company’s internal control over financial reporting includes those policies and

F-2

procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Critical Audit Matters

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Ship Accounting

As described in Notes 2 and 7 to the consolidated financial statements, the Company had vessels with a net book value of approximately $22.7 billion recorded in its financial statements as of December 31, 2019, with capitalized ship improvement costs of approximately $538 million for the year then ended. Ship improvement costs that add value are capitalized, the useful life of the improvement is estimated, and the replaced asset is disposed of on a net cost basis. Any such improvements are depreciated over the shorter of the improvements' estimated useful lives or that of the associated ship. Accounting estimates related to ship accounting and determinations of ship improvements costs to be capitalized require considerable judgment and are inherently uncertain. Vessels are stated at cost less accumulated depreciation and amortization and depreciation is calculated using the straight-line method over the estimated useful life of the vessels. Management considers the costs and estimates of the useful lives of the ships’ component assets, which are categorized into major component systems, such as the hull, superstructure, main electric, engines and cabins, to determine the estimated weighted-average useful life of a vessel. An assessment of cost allocation methodology is performed at the component level, in order to support the estimated weighted-average useful life and residual values, as well as determine the net cost basis of assets being replaced. Management reviews estimated useful lives and residual values periodically for ongoing reasonableness, and where a trigger for change is identified, a review of the estimate is completed. In the fourth quarter of 2019, the Company invested approximately $170 million of upgrades to its Oasis of the Seas ship under their ship upgrade program. Based on the expected impact of these enhancements, as well as planned future investments and upgrades in the balance of the Oasis class of ships, management now estimates that certain ship components and the overall life of the Oasis class of ships will be extended longer than those previously estimated. In determining the change in estimated useful life and residual value, management utilized quantitative and qualitative analyses, including historical and projected usage patterns, industry benchmarks, planned maintenance programs and projected operational and financial performance of the class.

The principal considerations for our determination that performing procedures relating to ship accounting is a critical audit matter are the significant judgments by management when determining (i) whether ship improvement costs add value to the Company’s ships and are capitalizable; (ii) the related useful life assigned to these ship improvement costs; (iii) the estimated net cost basis of the associated assets being replaced; and (iv) whether changes to estimated weighted-average useful lives and residual values are necessary. This in turn led to significant auditor judgment, subjectivity, and effort in performing procedures and evaluating audit evidence relating to capitalized ship improvement costs; the estimated useful lives of ship improvement costs; the estimated net cost basis of assets replaced; and management's assessment of the weighted-average useful lives and residual values. In addition, the audit effort involved the use of professionals with specialized skill and knowledge to assist in performing these procedures and evaluating the audit evidence obtained.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of management’s controls relating to ship improvement costs, including the assessment of the capitalization of ship improvement costs, the estimated useful lives and net cost basis of the assets being replaced and management’s reassessment of the estimated useful lives and residual values for the Oasis class ships during 2019. These procedures also included, among others, for a sample of ship improvement costs; (i) evaluating whether the costs capitalized add value to a ship; (ii) evaluating the reasonableness of the assigned estimated useful lives; and (iii) evaluating the reasonableness of the estimated net cost basis of the assets being replaced. Further, for management’s reassessment of estimated useful life and residual value of the Oasis class of ships, the procedures included (i) evaluating the reasonableness of the 35 year useful life and 10% residual value assigned to the Oasis class ships, considering management’s historical experience with similarly built ships, as well as consideration of anticipated technology and market changes (ii) evaluating the reasonableness of the changes in the estimated useful lives and residual

F-3

values at the component asset level, and (iii) evaluating the feasibility of management’s intended use of the Oasis class of ships. The evaluation of the feasibility of management's intended use included assessing the (i) historical and projected use patterns (ii) consistency of planned refurbishments and maintenance with current program (iii) consistency of projected forecasts with past performance and (iv) consistency with industry external data. Professionals with specialized skill and knowledge were used to assist in evaluating the appropriateness of the estimated useful lives of the ship improvements and the estimated useful life and residual value of the Oasis class of ships.

/s/ PricewaterhouseCoopers LLP

Miami, Florida

February 25, 2020, except with respect to our opinion on the consolidated financial statements insofar as it relates to the Company’s evaluation of the effects of COVID-19 discussed in Note 1 under Management’s Plan and Liquidity, and the Events Subsequent to Original Issuance of Financial Statements discussed in Note 22, as to which the date is May 13, 2020

We have served as the Company’s auditor since at least 1989, which includes periods before the Company became subject to SEC reporting requirements. We have not been able to determine the specific year we began serving as auditor of the Company.

F-4

ROYAL CARIBBEAN CRUISES LTD.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

	Year Ended December 31,
	2019		2018		2017
	(in thousands, except per share data)
Passenger ticket revenues	$	7,857,057	$	6,792,716	$	6,313,170
Onboard and other revenues	3,093,604		2,701,133		2,464,675
Total revenues	10,950,661		9,493,849		8,777,845
Cruise operating expenses:
Commissions, transportation and other	1,656,297		1,433,739		1,363,170
Onboard and other	639,782		537,355		495,552
Payroll and related	1,079,121		924,985		852,990
Food	583,905		520,909		492,857
Fuel	697,962		710,617		681,118
Other operating	1,405,698		1,134,602		1,010,892
Total cruise operating expenses	6,062,765		5,262,207		4,896,579
Marketing, selling and administrative expenses	1,559,253		1,303,144		1,186,016
Depreciation and amortization expenses	1,245,942		1,033,697		951,194
Operating Income	2,082,701		1,894,801		1,744,056
Other income (expense):
Interest income	26,945		32,800		30,101
Interest expense, net of interest capitalized	(408,513)		(333,672)		(299,982)
Equity investment income	230,980		210,756		156,247
Other (expense) income	(24,513)		11,107		(5,289)
	(175,101)		(79,009)		(118,923)
Net Income	1,907,600		1,815,792		1,625,133
Less: Net Income attributable to noncontrolling interest	28,713		4,750		—
Net Income attributable to Royal Caribbean Cruises Ltd.	$	1,878,887	$	1,811,042	$	1,625,133
Earnings per Share:
Basic	$	8.97	$	8.60	$	7.57
Diluted	$	8.95	$	8.56	$	7.53
Comprehensive Income (Loss)
Net Income	$	1,907,600	$	1,815,792	$	1,625,133
Other comprehensive (loss) income:
Foreign currency translation adjustments	869		(14,251)		17,307
Change in defined benefit plans	(19,535)		7,643		(5,583)
(Loss) gain on cash flow derivative hedges	(151,313)		(286,861)		570,495
Total other comprehensive (loss) income	(169,979)		(293,469)		582,219
Comprehensive Income	$	1,737,621	$	1,522,323	$	2,207,352
Less: Comprehensive Income attributable to noncontrolling interest	28,713		4,750		—
Comprehensive Income attributable to Royal Caribbean Cruises Ltd.	$	1,708,908	$	1,517,573	$	2,207,352

___________________________________________________________________

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

F-5

ROYAL CARIBBEAN CRUISES LTD.

CONSOLIDATED BALANCE SHEETS

	As of December 31,
	2019		2018
	(in thousands, except share data)
Assets
Current assets
Cash and cash equivalents	$	243,738	$	287,852
Trade and other receivables, net	305,821		324,507
Inventories	162,107		153,573
Prepaid expenses and other assets	429,211		456,547
Derivative financial instruments	21,751		19,565
Total current assets	1,162,628		1,242,044
Property and equipment, net	25,466,808		23,466,163
Operating lease right-of-use assets	687,555		—
Goodwill	1,385,644		1,378,353
Other assets	1,617,649		1,611,710
Total assets	$	30,320,284	$	27,698,270
Liabilities, redeemable noncontrolling interest and shareholders' equity
Current liabilities
Current portion of long-term debt	$	1,186,586	$	1,646,841
Commercial paper	1,434,180		775,488
Current portion of operating lease liabilities	96,976		—
Accounts payable	563,706		488,212
Accrued interest	70,090		74,550
Accrued expenses and other liabilities	1,078,345		899,761
Derivative financial instruments	94,875		78,476
Customer deposits	3,428,138		3,148,837
Total current liabilities	7,952,896		7,112,165
Long-term debt	8,414,110		8,355,370
Long-term operating lease liabilities	601,641		—
Other long-term liabilities	617,810		583,254
Total liabilities	17,586,457		16,050,789
Commitments and contingencies (Note 19)
Redeemable noncontrolling interest	569,981		542,020
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; 236,547,842 and 235,847,683 shares issued, December 31, 2019 and December 31, 2018, respectively)	2,365		2,358
Paid-in capital	3,493,959		3,420,900
Retained earnings	11,523,326		10,263,282
Accumulated other comprehensive loss	(797,713)		(627,734)
Treasury stock (27,746,848 and 26,830,765 common shares at cost, December 31, 2019 and December 31, 2018, respectively)	(2,058,091)		(1,953,345)
Total shareholders' equity	12,163,846		11,105,461
Total liabilities, redeemable noncontrolling interest and shareholders’ equity	$	30,320,284	$	27,698,270

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

F-6

ROYAL CARIBBEAN CRUISES LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Year Ended December 31,
	2019		2018		2017
	(in thousands)
Operating Activities
Net Income	$	1,907,600	$	1,815,792	$	1,625,133
Adjustments:
Depreciation and amortization	1,245,942		1,033,697		951,194
Impairment losses	—		33,651		—
Net deferred income tax expense (benefit)	7,745		(2,679)		1,730
(Gain) loss on derivative instruments not designated as hedges	(1,431)		61,148		(61,704)
Share-based compensation expense	75,930		46,061		69,459
Equity investment income	(230,980)		(210,756)		(156,247)
Amortization of debt issuance costs	31,991		41,978		45,943
Amortization of commercial paper notes discount	31,263		10,652		—
Loss on extinguishment of debt	6,326		—		—
Change in fair value of contingent consideration	18,400		—		—
Gain on sale of property and equipment	—		—		(30,902)
Gain on sale of unconsolidated affiliate	—		(13,680)		—
Recognition of deferred gain	—		(21,794)		—
Changes in operating assets and liabilities:
Increase in trade and other receivables, net	(9,898)		(9,573)		(32,043)
(Increase) decrease in inventories	(8,533)		(23,849)		2,424
Decrease (increase) in prepaid expenses and other assets	15,669		(71,770)		20,859
Increase in accounts payable	75,281		91,737		36,780
(Decrease) increase in accrued interest	(4,460)		18,773		1,303
Increase in accrued expenses and other liabilities	96,490		42,937		34,215
Increase in customer deposits	280,139		385,990		274,705
Dividends received from unconsolidated affiliates	150,177		243,101		109,677
Other, net	28,715		7,723		(17,960)
Net cash provided by operating activities	3,716,366		3,479,139		2,874,566
Investing Activities
Purchases of property and equipment	(3,024,663)		(3,660,028)		(564,138)
Cash received on settlement of derivative financial instruments	7,621		76,529		63,224
Cash paid on settlement of derivative financial instruments	(68,836)		(98,074)		—
Investments in and loans to unconsolidated affiliates	(25,569)		(27,172)		(10,396)
Cash received on loans to unconsolidated affiliates	32,870		124,238		62,303
Proceeds from the sale of property and equipment	—		—		230,000
Proceeds from the sale of unconsolidated affiliate	—		13,215		—
Acquisition of Silversea Cruises, net of cash acquired	—		(916,135)		—
Other, net	(12,829)		(1,731)		5,415
Net cash used in investing activities	(3,091,406)		(4,489,158)		(213,592)
Financing Activities
Debt proceeds	3,525,564		8,590,740		5,866,966

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

F-7

ROYAL CARIBBEAN CRUISES LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS - CONTINUED

	Year Ended December 31,
	2019		2018		2017
Debt issuance costs	(50,348)		(81,959)		(51,590)
Repayments of debt	(4,060,244)		(6,963,511)		(7,835,087)
Proceeds from issuance of commercial paper notes	26,240,540		4,730,286		—
Repayments of commercial paper notes	(25,613,111)		(3,965,450)		—
Purchase of treasury stock	(99,582)		(575,039)		(224,998)
Dividends paid	(602,674)		(527,494)		(437,455)
Proceeds from exercise of common stock options	1,742		4,264		2,525
Other, net	(12,258)		(13,764)		3,843
Net cash (used in) provided by financing activities	(670,371)		1,198,073		(2,675,796)
Effect of exchange rate changes on cash	1,297		(20,314)		2,331
Net (decrease) increase in cash and cash equivalents	(44,114)		167,740		(12,491)
Cash and cash equivalents at beginning of year	287,852		120,112		132,603
Cash and cash equivalents at end of year	$	243,738	$	287,852	$	120,112
Supplemental Disclosures
Cash paid during the year for:
Interest, net of amount capitalized	$	246,312	$	252,466	$	249,615
Non-Cash Investing Activities
Contingent consideration for the acquisition of Silversea Cruises	—		44,000		—
Purchases of property and equipment included in accounts payable and accrued expenses and other liabilities	86,155		—		139,644
Notes receivable issued upon sale of property and equipment	—		—		20,409

___________________________________________________________________

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

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Table of Contents

ROYAL CARIBBEAN CRUISES LTD.

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

	Common Stock		Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Treasury Stock		Total Shareholders' Equity
	(in thousands, except per share data)
Balances at January 1, 2017	$	2,346	$	3,328,517	$	7,860,341	$	(916,484)	$	(1,153,308)	$	9,121,412
Activity related to employee stock plans	6		61,600		—		—		—		61,606
Common stock dividends, $2.16 per share	—		—		(463,069)		—		—		(463,069)
Changes related to cash flow derivative hedges	—		—		—		570,495		—		570,495
Change in defined benefit plans	—		—		—		(5,583)		—		(5,583)
Foreign currency translation adjustments	—		—		—		17,307		—		17,307
Purchase of treasury stock	—		—		—		—		(224,998)		(224,998)
Net Income attributable to Royal Caribbean Cruises Ltd.	—		—		1,625,133		—		—		1,625,133
Balances at December 31, 2017	2,352		3,390,117		9,022,405		(334,265)		(1,378,306)		10,702,303
Cumulative effect of accounting changes	—		—		(23,476)		—		—		(23,476)
Activity related to employee stock plans	6		30,783		—		—		—		30,789
Common stock dividends, $2.60 per share	—		—		(546,689)		—		—		(546,689)
Changes related to cash flow derivative hedges	—		—		—		(286,861)		—		(286,861)
Change in defined benefit plans	—		—		—		7,643		—		7,643
Foreign currency translation adjustments	—		—		—		(14,251)		—		(14,251)
Purchases of treasury stock	—		—		—		—		(575,039)		(575,039)
Net Income attributable to Royal Caribbean Cruises Ltd.	—		—		1,811,042		—		—		1,811,042
Balances at December 31, 2018	2,358		3,420,900		10,263,282		(627,734)		(1,953,345)		11,105,461
Activity related to employee stock plans	7		73,059		—		—		(5,164)		67,902
Common stock dividends, $2.96 per share	—		—		(618,843)		—		—		(618,843)
Changes related to cash flow derivative hedges	—		—		—		(151,313)		—		(151,313)
Change in defined benefit plans	—		—		—		(19,535)		—		(19,535)
Foreign currency translation adjustments	—		—		—		869		—		869
Purchases of treasury stock	—		—		—		—		(99,582)		(99,582)
Net Income attributable to Royal Caribbean Cruises Ltd.	—		—		1,878,887		—		—		1,878,887
Balances at December 31, 2019	$	2,365	$	3,493,959	$	11,523,326	$	(797,713)	$	(2,058,091)	$	12,163,846

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

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ROYAL CARIBBEAN CRUISES LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Note 1. General

Description of Business

We are a global cruise company. We own and operate four global cruise brands: Royal Caribbean International, Celebrity Cruises, Azamara and Silversea Cruises (collectively, our "Global Brands"). We also own a 50% joint venture interest in the German brand TUI Cruises and a 49% interest in the Spanish brand Pullmantur (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 operate a combined 61 ships as of December 31, 2019. Our ships operate on a selection of worldwide itineraries that call on more than 1,000 destinations on all seven continents.

On July 31, 2018, we acquired a 66.7% equity stake in Silversea Cruise Holding Ltd. ("Silversea Cruises"), an ultra-luxury and expedition cruise line with nine ships, from Silversea Cruises Group Ltd. ("SCG") for $1.02 billion in cash and contingent consideration. Refer to Note 3. Business Combination for further information on the Silversea Cruises acquisition.

Management's Plan and Liquidity

As part of the global containment effort, the Company implemented a voluntary suspension of its global cruise operations effective March 13, 2020, which has subsequently been extended through at least June 11, 2020. On March 14, 2020, concurrent with our and the broader cruise industry’s suspension, the U.S. Centers for Disease Control and Prevention (“CDC”) issued a No Sail Order through April 13, 2020. On April 9, 2020, the CDC modified its existing No Sail Order to extend it until the earliest of (a) the expiration of the Secretary of Health and Human Services’ declaration that COVID-19 constitutes a public health emergency, (b) the date the Director of the CDC rescinds or modifies the No Sail Order or (c) 100 days after the order appears on the Federal Register, which would be July 24, 2020.

Significant events affecting travel, including COVID-19, typically have an impact on the booking pattern for cruise vacations, with the full extent of the impact generally determined by the length of time the event influences travel decisions. Based on our assumptions and estimates and our financial condition, we believe that the liquidity described in the following paragraphs will be sufficient to fund our liquidity requirements for at least the next twelve months. However, there can be no assurance that our assumptions and estimates are accurate due to possible unknown variables, including, but not limited to, whether the CDC will issue additional No Sail Orders on cruises out of the United States. The current No Sail Order is currently set to expire on or before July 24, 2020. The Company, working with the CDC, is developing its enhanced safety and health protocols as well as other operational procedures necessary to return its vessels to service and is targeting mid-summer of 2020 to begin sailings; however, if the ban on cruising is extended beyond the third quarter of 2020, it will have a material adverse impact on our current and forecasted liquidity levels. There are also other unknown variables related to the unprecedented suspension of our operations and, as such, there is significant uncertainty in our ability to predict future liquidity requirements.

As of December 31, 2019, the Company had liquidity of $1.5 billion, consisting of $243.7 million in cash and cash equivalents and $1.3 billion available under our unsecured credit facilities, net of our outstanding commercial paper notes. Subsequent to December 31, 2019 and through May 12, 2020, as described in Note 22. Events Subsequent to Original Issuance of Financial Statements, the Company increased the capacity under our revolving credit facilities by $0.6 billion and fully drew on both facilities, entered into 364-day senior secured term loan for $2.2 billion, which was subsequently increased to $2.35 billion, of which repayments may be extended at our option for an additional 364 days, and secured deferrals of existing debt amortization under our export-credit backed ship debt facilities which increased the Company’s liquidity by an additional $0.8 billion.

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

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The Company has also undertaken several proactive measures as well as has future plans to mitigate the financial and operational impacts of COVID-19, through potential new financing options, if available, reduction of capital expenditures and operating expenses, including furloughing staff, laying up vessels, as well as agreeing not to pay dividends or engage in stock repurchases.

We were in compliance with all of our debt covenants as of December 31, 2019 and through May 12, 2020. Subsequent to December 31, 2019, we amended each of our outstanding facilities to waive all financial covenants in such facilities through and including the first quarter of 2021.

We also have agreements with two credit card processors that transact advance customer ticket deposits and onboard transactions related to our cruise voyages. These agreements allow the credit card processors to require under certain circumstances, including the existence of a material adverse change, excessive chargebacks and other triggering events, that we maintain a reserve which could be satisfied by posting collateral. The maximum reserve requirement under the agreements with the credit card processors is in aggregate $300 million. As of May 12, 2020, we were not required to post collateral under these agreements.

Any covenant waiver may lead to increased costs, increased interest rates, additional restrictive covenants and other available lender protections that would be applicable. There can be no assurance that we would be able to obtain waivers in a timely manner, or on acceptable terms at all. If we were not able to obtain waivers or repay the debt facilities, this would lead to an event of default and potential acceleration of amounts due under all of our outstanding debt and derivative contract payables.

Basis for Preparation of Consolidated Financial Statements

The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). 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 for a discussion of our significant accounting policies.

All significant intercompany accounts and transactions are eliminated in consolidation. We consolidate entities over which we have control, usually evidenced by a direct ownership interest of greater than 50%, and variable interest entities where we are determined to be the primary beneficiary. Refer to Note 8. Other Assets for further information regarding our variable interest entities. We consolidate the operating results of Silversea Cruises on a three-month reporting lag to allow for more timely preparation of our consolidated financial statements. No material events or other transactions involving Silversea Cruises have occurred from September 30, 2019 through December 31, 2019 that would require further disclosure or adjustment to our consolidated financial statements as of and for the year ended December 31, 2019. 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

Revenues and Expenses

Deposits received on sales of passenger cruises are initially recorded as customer deposit liabilities on our balance sheet. Customer deposits are subsequently recognized as passenger ticket revenues, together with revenues from onboard and other goods and services and all associated cruise operating expenses of a voyage. For further information on revenue recognition, refer to Note. 4 Revenues.

Cash and Cash Equivalents

Cash and cash equivalents include cash and marketable securities with original maturities of less than 90 days.

Inventories

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Inventories consist of provisions, supplies and fuel carried at the lower of cost (weighted-average) or net realizable value.

Property and Equipment

Property and equipment are stated at cost less accumulated depreciation and amortization. We capitalize interest as part of the cost of acquiring certain assets. Improvement costs that we believe add value to our ships are capitalized as additions to the ship, the useful lives of the improvements are estimated and depreciated over the shorter of the improvements' estimated useful lives or that of the associated ship, and the replaced assets are disposed of on a net cost basis. The estimated cost and accumulated depreciation of replaced or refurbished ship components are written off and any resulting losses are recognized in Cruise operating expenses. Liquidated damages received from shipyards as a result of the late delivery of a new ship are recorded as reductions to the cost basis of the ship.

Depreciation of property and equipment is computed using the straight-line method over the estimated useful life of the asset. The useful lives of our ships are generally 30-35 years, net of a 10%-15% projected residual value. The 30-35-year useful life and 10%-15% residual value are based on the weighted-average of all major components of a ship. Our useful life and residual value estimates take into consideration the impact of anticipated technological changes, long-term cruise and vacation market conditions and historical useful lives of similarly-built ships. In addition, we take into consideration our estimates of the weighted-average useful lives of the ships' major component systems, such as hull, superstructure, main electric, engines and cabins. We employ a cost allocation methodology at the component level, in order to support the estimated weighted-average useful lives and residual values, as well as to determine the net cost basis of assets being replaced. Given the very large and complex nature of our ships, our accounting estimates related to ships and determinations of ship improvement costs to be capitalized require considerable judgment and are inherently uncertain. Depreciation for assets under capital leases is computed using the shorter of the lease term or related asset life.

Depreciation of property and equipment is computed utilizing the following useful lives:

	Years
Ships	generally, 30-35
Ship improvements	3-25
Buildings and improvements	10-40
Computer hardware and software	3-10
Transportation equipment and other	3-30
Leasehold improvements	Shorter of remaining lease term or useful life 3-30

We periodically review estimated useful lives and residual values for ongoing reasonableness, considering long term views on our intended use of each class of ships and the planned level of improvements to maintain and enhance vessels within those classes. In the event a factor is identified that may trigger a change in the estimated useful lives and residual values of our ships, a review of the estimate is completed. In the fourth quarter of 2019, we completed a modernization of the Oasis of the Seas under our ship upgrade program. We spent $538.0 million under this ship upgrade program for the year ended December 31, 2019, with the Oasis of the Seas representing approximately $170.0 million. As a result of this capital investment and future planned investments in our Oasis-class ships, we performed a review of the estimated useful lives and residual values of Oasis-class ships, concluding in a change to the estimate. Effective fourth quarter of 2019, we revised the estimated useful lives of our Oasis-class ships from 30 years with a 15% residual value to 35 years with a 10% residual value. The change in the estimated useful lives and residual values was accounted for prospectively as a change in accounting estimate. The 35-year useful life with a 10% residual value is based on revised estimates of the weighted-average useful life of all major ship components for the Oasis-class ships. The change in estimate is consistent with our recent investments in and future plans to continue to invest in the upgrade of these ships, resulting in the use of certain ship components longer than originally estimated. In determining the change in estimated useful life and residual value, we utilized quantitative and qualitative analysis, including historical and projected usage patterns, industry benchmarks,

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planned maintenance programs and projected operational and financial performance of the class. The change allows us to better match depreciation expense with the periods these assets are expected to be in use. For the year ended December 31, 2019, this change increased operating income and net income by approximately $4.6 million and increased earnings per share by $0.02 per share on a basic and diluted basis.

We review long-lived assets for impairment whenever events or changes in circumstances indicate, based on estimated undiscounted future cash flows, that the carrying amount of these assets may not be fully recoverable. For purposes of recognition and measurement of an impairment loss, long-lived assets are grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. The lowest level for which we maintain identifiable cash flows that are independent of the cash flows of other assets and liabilities is at the ship level for our ships. If estimated future cash flows are less than the carrying value of an asset, an impairment charge is recognized to the extent its carrying value exceeds fair value.

We use the deferral method to account for drydocking costs. Under the deferral method, drydocking costs incurred are deferred and charged to expense on a straight-line basis over the period to the next scheduled drydock, which we estimate to be a period of thirty to sixty months based on the vessel's age as required by Class. Deferred drydock costs consist of the costs to drydock the vessel and other costs incurred in connection with the drydock which are necessary to maintain the vessel's Class certification. Class certification is necessary in order for our cruise ships to be flagged in a specific country, obtain liability insurance and legally operate as passenger cruise ships. The activities associated with those drydocking costs cannot be performed while the vessel is in service and, as such, are done during a drydock as a planned major maintenance activity. The significant deferred drydock costs consist of hauling and wharfage services provided by the drydock facility, hull inspection and related activities (e.g., scraping, pressure cleaning, bottom painting), maintenance to steering propulsion, thruster equipment and ballast tanks, port services such as tugs, pilotage and line handling, and freight associated with these items. We perform a detailed analysis of the various activities performed for each drydock and only defer those costs that are directly related to planned major maintenance activities necessary to maintain Class. The costs deferred are not otherwise routinely periodically performed to maintain a vessel's designed and intended operating capability. Repairs and maintenance activities are charged to expense as incurred.

Goodwill

Goodwill represents the excess of cost over the fair value of net tangible and identifiable intangible assets acquired. We review goodwill for impairment at the reporting unit level annually or, when events or circumstances dictate, more frequently. The impairment review for goodwill consists of a qualitative assessment of whether it is more-likely-than-not that a reporting unit's fair value is less than its carrying amount, and if necessary, a two-step goodwill impairment test. Factors to consider when performing the qualitative assessment include general economic conditions, limitations on accessing capital, changes in forecasted operating results, changes in fuel prices and fluctuations in foreign exchange rates. If the qualitative assessment demonstrates that it is more-likely-than-not that the estimated fair value of the reporting unit exceeds its carrying value, it is not necessary to perform the two-step goodwill impairment test. We may elect to bypass the qualitative assessment and proceed directly to step one, for any reporting unit, in any period. On a periodic basis, we elect to bypass the qualitative assessment and proceed to step one to corroborate the results of recent years' qualitative assessments. We can resume the qualitative assessment for any reporting unit in any subsequent period. When performing the two-step goodwill impairment test, the fair value of the reporting unit is determined and compared to the carrying value of the net assets allocated to the reporting unit. If the fair value of the reporting unit exceeds its carrying value, no further analysis or write-down of goodwill is required. If the fair value of the reporting unit is less than the carrying value of its net assets, the implied fair value of the reporting unit is allocated to all its underlying assets and liabilities, including both recognized and unrecognized tangible and intangible assets, based on their fair value. If necessary, goodwill is then written down to its implied fair value.

Intangible Assets

In connection with our acquisitions, we have acquired certain intangible assets to which value has been assigned based on our estimates. Intangible assets that are deemed to have an indefinite life are not amortized, but are subject to an annual impairment test, or when events or circumstances dictate, more frequently. The impairment review for indefinite-life intangible assets can be performed using a qualitative or quantitative impairment

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assessment. The quantitative assessment consists of a comparison of the fair value of the indefinite-life intangible asset with its carrying amount. If the carrying amount exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. If the fair value exceeds its carrying amount, the indefinite-life intangible asset is not considered impaired.

Other intangible assets assigned finite useful lives are amortized on a straight-line basis over their estimated useful lives.

Contingencies — Litigation

On an ongoing basis, we assess the potential liabilities related to any lawsuits or claims brought against us. While it is typically very difficult to determine the timing and ultimate outcome of such actions, we use our best judgment to determine if it is probable that we will incur an expense related to the settlement or final adjudication of such matters and whether a reasonable estimation of such probable loss, if any, can be made. In assessing probable losses, we take into consideration estimates of the amount of insurance recoveries, if any, which are recorded as assets when recoverability is probable. We accrue a liability when we believe a loss is probable and the amount of loss can be reasonably estimated. Due to the inherent uncertainties related to the eventual outcome of litigation and potential insurance recoveries, it is possible that certain matters may be resolved for amounts materially different from any provisions or disclosures that we have previously made.

Advertising Costs

Advertising costs are expensed as incurred except those costs which result in tangible assets, such as brochures, which are treated as prepaid expenses and charged to expense as consumed. Advertising costs consist of media advertising as well as brochure, production and direct mail costs.

Media advertising was $309.4 million, $255.7 million and $233.5 million, and brochure, production and direct mail costs were $156.0 million, $133.4 million and $126.7 million for the years ended December 31, 2019, 2018 and 2017, respectively.

Derivative Instruments

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. 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.

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

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hedge effectiveness using regression analysis for each hedge relationship. The methodology for assessing hedge effectiveness is applied on a consistent basis for each one of our hedging programs (i.e., interest rate, foreign currency ship construction, foreign currency net investment and fuel). For our regression analyses, we use an observation period of up to three years, utilizing market data relevant to the hedge horizon of each hedge relationship. High effectiveness is achieved when a statistically valid relationship reflects a high degree of offset and correlation between the changes in the fair values of the derivative instrument and the hedged item. If it is determined that a derivative is not highly effective as a hedge or hedge accounting is discontinued, any change in fair value of the derivative since the last date at which it was determined to be effective is recognized in earnings.

Cash flows from derivative instruments that are designated as fair value or cash flow hedges are classified in the same category as the cash flows from the underlying hedged items. In the event that hedge accounting is discontinued, cash flows subsequent to the date of discontinuance are classified within investing activities. Cash flows from derivative instruments not designated as hedging instruments are classified as investing activities.

We consider the classification of the underlying hedged item’s cash flows in determining the classification for the designated derivative instrument’s cash flows. We classify derivative instrument cash flows from hedges of benchmark interest rate or hedges of fuel expense as operating activities due to the nature of the hedged item. Likewise, we classify derivative instrument cash flows from hedges of foreign currency risk on our newbuild ship payments as investing activities.

Foreign Currency Translations and Transactions

We translate assets and liabilities of our foreign subsidiaries whose functional currency is the local currency, at exchange rates in effect at the balance sheet date. We translate revenues and expenses at weighted-average exchange rates for the period. Equity is translated at historical rates and the resulting foreign currency translation adjustments are included as a component of Accumulated other comprehensive loss, which is reflected as a separate component of Shareholders' equity. Exchange gains or losses arising from the remeasurement of monetary assets and liabilities denominated in a currency other than the functional currency of the entity involved are immediately included in our earnings, except for certain liabilities that have been designated to act as a hedge of a net investment in a foreign operation or investment. Exchange gains (losses) were $0.4 million, $57.6 million and $(75.6) million for the years ended December 31, 2019, 2018 and 2017, respectively, and were recorded within Other income (expense). The majority of our transactions are settled in United States dollars. Gains or losses resulting from transactions denominated in other currencies are recognized in income at each balance sheet date.

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 December 31, 2019, we had no counterparty credit risk exposure under our derivative instruments compared to credit risk exposures of $5.6 million on December 31, 2018, which were 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.

Earnings Per Share

Basic earnings per share is computed by dividing Net Income attributable to Royal Caribbean Cruises Ltd. by the weighted-average number of shares of common stock outstanding during each period. Diluted earnings per share

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incorporates the incremental shares issuable upon the assumed exercise of stock options and conversion of potentially dilutive securities.

Stock-Based Employee Compensation

We measure and recognize compensation expense at the estimated fair value of employee stock awards. Compensation expense for awards and the related tax effects are recognized as they vest. We use the estimated amount of expected forfeitures to calculate compensation costs for all outstanding awards.

Segment Reporting

We control and operate four global cruise brands: Royal Caribbean International, Celebrity Cruises, Azamara and Silversea Cruises. We also own a 50% joint venture interest in the German brand TUI Cruises, a 49% interest in the Spanish brand Pullmantur. We believe our brands possess the versatility to enter multiple cruise market segments within the cruise vacation industry. Although each of these brands has its own marketing style as well as ships and crews of various sizes, the nature of the products sold and services delivered by these brands share a common base (i.e., the sale and provision of cruise vacations). Our brands also have similar itineraries as well as similar cost and revenue components. In addition, our brands source passengers from similar markets around the world and operate in similar economic environments with a significant degree of commercial overlap. As a result, our brands have been aggregated as a single reportable segment based on the similarity of their economic characteristics, types of consumers, regulatory environment, maintenance requirements, supporting systems and processes as well as products and services provided. Our Chairman and Chief Executive Officer has been identified as the chief operating decision-maker and all significant operating decisions including the allocation of resources are based upon the analyses of the Company as one segment. Refer to Note 4. Revenues for passenger ticket revenue information by geographic area.

Adoption of Accounting Pronouncements

Leases

On January 1, 2019, we adopted the guidance codified in Accounting Standard Codification ("ASC") 842, Leases ("ASC 842") using the modified retrospective approach and elected the optional transition method, which allows entities to initially apply the standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Upon adoption, we applied the guidance to all existing leases.

For leases with a term greater than 12 months, the new guidance requires the lease rights and obligations arising from the leasing arrangements, including operating leases, to be recognized as assets and liabilities on the balance sheet. Upon adoption of the new guidance, the most significant impact was the recognition of right-of-use assets and lease liabilities relating to operating leases in the amounts of $801.8 million and $820.5 million, respectively, reported within Operating lease right-of-use assets and Long-term operating lease liabilities, respectively, with the current portion of the liability reported within Current portion of operating lease liabilities, in our consolidated balance sheet as of January 1, 2019. Accounting for finance leases remained substantially unchanged and continues to be reported within Property and equipment, net and Long-term debt, with the current portion of the debt reported within Current portion of debt, in our consolidated balance sheets. There was no cumulative effect of applying the new standard and accordingly there was no adjustment to our retained earnings upon adoption. The comparative information presented has not been recast and continues to be reported under the accounting standards in effect for those periods. For further information on leases, refer to Note 10. Leases.

This guidance did not have a material impact to our consolidated statements of comprehensive income (loss), consolidated statements of cash flows and our debt-covenants calculations under our current agreements.

Recent Accounting Pronouncements

In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2016-13, Financial Instruments - Credit Losses (Topic 326); Measurement of Credit Losses on Financial Instruments. This ASU, along with subsequent ASUs issued to clarify certain of its provisions, introduces new

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guidance which makes substantive changes to the accounting model for financial assets subject to credit losses that are measured at amortized cost, as well as certain off-balance sheet credit exposures. The primary updates include the introduction of a new current expected credit loss (“CECL”) model that is based on expected rather than incurred losses. This ASU and the related amendments will be effective for our annual reporting period beginning January 1, 2020. We are currently evaluating the impact that the adoption of this guidance will have to our consolidated financial statements.

In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350) – Simplifying the Test for Goodwill Impairment, which simplifies the subsequent measurement of goodwill by eliminating the second step of the goodwill impairment test. Under the new standard, goodwill impairment should be recognized based on the amount by which the carrying amount of a reporting unit exceeds its fair value, but should not exceed the total amount of goodwill allocated to the reporting unit. This ASU will be effective for our annual reporting period beginning January 1, 2020. This guidance is not expected to have a material impact to our consolidated financial statements, but may require us to modify our annual or interim goodwill impairment tests.

In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Topic 350-40), which requires a customer in a cloud computing arrangement that is a service contract to follow the internal-use software guidance to determine which implementation costs to capitalize as assets or expense as incurred. This ASU will be effective for our annual reporting period beginning January 1, 2020 and we expect to elect the prospective adoption method. The guidance may impact the accounting treatment of our future implementation costs related to cloud computing arrangements.

In January 2020, the FASB issued ASU No. 2020-01, Investments – Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivative and Hedging (Topic 815), which clarifies the interaction of rules for equity securities, the equity method of accounting, and forward contracts and purchase options on certain types of securities. The guidance clarifies how to account for the transition into and out of the equity method of accounting when considering observable transactions under the measurement alternative. The ASU is effective for annual reporting periods beginning after December 15, 2020, including interim reporting periods within those annual periods, with early adoption permitted. We are currently evaluating the impact of the new guidance on our consolidated financial statements.

Reclassifications

For the year ended December 31, 2019, we separately presented Amortization of commercial paper notes discount in our consolidated statements of cash flows. As a result, the prior year amortization amount was reclassified within Operating Activities to conform to the current year presentation.

Note 3. Business Combination

On July 31, 2018, we acquired a 66.7% equity stake in Silversea Cruise Holding Ltd. ("Silversea Cruises"), an ultra-luxury and expedition cruise line, from Heritage Cruise Holding Ltd. ("HCH"), previously known as Silversea Cruises Group Ltd. Silversea Cruises enhances our presence in the ultra-luxury and expedition markets and provides us with an opportunity to drive long-term capacity growth in these markets.

The purchase price consisted of $1.02 billion in cash, net of assumed liabilities, and contingent consideration that can range from zero up to a maximum of approximately 472,000 shares of our common stock, and is payable upon achievement of certain 2019-2020 performance metrics by Silversea Cruises. The fair value of the contingent consideration at the acquisition date was $44.0 million. Changes to the fair value of the contingent consideration are recorded in our results of operations, if any, in the period of the change. Refer to Note 18. Fair Value Measurements and Derivative Instruments for further information on the valuation of the contingent consideration.

To finance a portion of the purchase price, we drew in full on a $700 million unsecured credit agreement and the remainder of the transaction consideration was financed through the use of our revolving credit facilities. Refer to Note 9. Debt for further information on the credit agreement.

We have accounted for this transaction under the provisions of ASC 805, Business Combinations. The purchase price for the Silversea Cruises acquisition was allocated based on estimates of the fair value of assets

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acquired and liabilities assumed at the acquisition date, with the excess allocated to goodwill. Goodwill is not deductible for tax purposes and consisted primarily of the opportunity to expand our cruise operations in strategic growth areas.

For reporting purposes, we included Silversea Cruises’ results of operations on a three-month reporting lag from October 1, 2018 through September 30, 2019 in our consolidated results of operations for the year ended December 31, 2019 and from the July 31, 2018 date of acquisition through September 30, 2018 in our consolidated results of operations for the year ended December 31, 2018. We have included Silversea Cruises' balance sheets as of September 30, 2019 and 2018 in our consolidated balance sheets as of December 31, 2019 and 2018, respectively. Refer to Note 1. General for further information on this three-month reporting lag.

There were no material measurement period adjustments recorded for the year ended December 31, 2019.

The following table summarizes the purchase price allocation based on estimated fair values of the assets acquired and liabilities assumed related to the Silversea Cruises acquisition as of July 31, 2018. Our purchase price allocation was final during 2019.

(in thousands)	Estimated Fair Value as of Acquisition Date (as Previously Reported)		Measurement Period Adjustments (1)		Estimated Fair Value as of Acquisition Date (as Adjusted)
Assets
Cash and cash equivalents	$	103,865	$	—	$	103,865
Trade and other receivables, net	7,163		—		7,163
Inventories	18,331		—		18,331
Prepaid expenses and other assets(2)	120,496		—		120,496
Derivative financial instruments	2,886		—		2,886
Property and equipment, net(3)	1,114,270		—		1,114,270
Goodwill	1,090,010		(5,224)		1,084,786
Other assets(4)	498,457		—		498,457
Total assets acquired	2,955,478		(5,224)		2,950,254
Liabilities
Current portion of long-term debt(5)	26,851		—		26,851
Accounts payable	36,960		—		36,960
Accrued interest	1,773		—		1,773
Accrued expenses and other liabilities	82,531		(5,224)		77,307
Customer deposits	453,798		—		453,798
Long-term debt(5)	727,935		—		727,935
Other long-term liabilities	23,860		—		23,860
Total liabilities assumed	1,353,708		(5,224)		1,348,484
Redeemable noncontrolling interest(6)	537,770		—		537,770
Total purchase price	$	1,064,000	$	—	$	1,064,000

(1) As a result of additional information obtained about facts and circumstances that existed as of the acquisition date, we recorded measurement period adjustments during 2019, which resulted in a net decrease to Goodwill of $5.2 million.

(2) Amount includes $32.0 million of cash held as collateral with credit card processors as of July 31, 2018.

(3) Property and equipment, net includes two ships under capital lease agreements amounting to $156.0 million as of July 31, 2018. The respective capital lease liabilities are reported within Long-term debt. Refer to Note 9. Debt for further information on the capital lease financing arrangements.

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(4) Amount includes $494.6 million of intangible assets. Refer to Note 6. Intangible Assets for further information on the intangible assets acquired.

(5)  Refer to Note 9. Debt for further information on long-term debt assumed.

(6)  Refer to Note 11. Redeemable Noncontrolling Interest for further information on the redeemable noncontrolling interest recorded.

As of December 31, 2018, intangible assets, net include intangible assets acquired in the Silversea Cruises acquisition, which were recorded at fair value at acquisition date as follows:

	Fair Value at Acquisition Date (in thousands)		Weighted Average Amortization Period (Years)
Silversea Cruises trade name	$	349,500	Indefinite-life
Customer relationships	97,400		15
Galapagos operating license	36,100		16
Other finite-life intangible assets	11,560		2
Total intangible assets	$	494,560

Similar to our other ship-operating and vessel-owning subsidiaries, Silversea Cruises is currently exempt from U.S. corporate tax on U.S. source income from the international operation of ships pursuant to Section 883 of the Internal Revenue Code. Additionally, the deferred tax liability recognized in connection with the acquisition of Silversea Cruises was not material to our consolidated financial statements and there were no net operating losses recognized as of December 31, 2018.

For the year ended December 31, 2018, Total revenues and Net Income in our consolidated statements of comprehensive income (loss) include $130.1 million and $3.3 million, respectively, of revenues and net income from Silversea Cruises since the date of acquisition through September 30, 2018. For the year ended December 31, 2018, our results of operations also include transaction-related costs of $31.8 million, which were included primarily within Marketing, selling and administrative expenses in our consolidated statements of comprehensive income (loss).

Pro-forma financial results relating to the Silversea Cruises acquisition are not presented, as this acquisition was not material to our consolidated results of operations.

Note 4. Revenues

Revenue Recognition

Revenues are measured based on consideration specified in our contracts with customers and are recognized as the related performance obligations are satisfied.

The majority of our revenues are derived from passenger cruise contracts which are reported within Passenger ticket revenues in our consolidated statements of comprehensive income (loss). Our performance obligation under these contracts is to provide a cruise vacation in exchange for the ticket price. We satisfy this performance obligation and recognize revenue over the duration of each cruise, which generally range from two to 25 nights.

Passenger ticket revenues include charges to our guests for port costs that vary with passenger head counts. These type of port costs, along with port costs that do not vary by passenger head counts, are included in our operating expenses. The amounts of port costs charged to our guests and included within Passenger ticket revenues on a gross basis were $666.8 million, $611.4 million and $569.5 million for the years ended December 31, 2019, 2018 and 2017, respectively.

Our total revenues also include onboard and other revenues, which consist primarily of revenues from the sale of goods and services onboard our ships that are not included in passenger ticket prices. We receive payment before or concurrently with the transfer of these goods and services to passengers during a cruise and recognize revenue at the time of transfer over the duration of the related cruise.

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As a practical expedient, we have omitted disclosures on our remaining performance obligations as the duration of our contracts with customers is less than a year.

Disaggregated Revenues

The following table disaggregates our total revenues by geographic regions where we provide cruise itineraries (in thousands):

	Year Ended December 31,
	2019		2018		2017
Revenues by itinerary
North America(1)	$	6,392,354	$	5,399,951	$	5,062,305
Asia/Pacific(2)	1,529,898		1,463,083		1,588,802
Europe(3)	1,942,057		1,914,549		1,509,586
Other regions	567,904		348,145		285,954
Total revenues by itinerary	10,432,213		9,125,728		8,446,647
Other revenues(4)	518,448		368,121		331,198
Total revenues	$	10,950,661	$	9,493,849	$	8,777,845

(1)Includes the United States, Canada, Mexico and the Caribbean.

(2)Includes Southeast Asia (e.g., Singapore, Thailand and the Philippines), East Asia (e.g., China and Japan), South Asia (e.g., India and Pakistan) and Oceania (e.g., Australia and Fiji Islands) regions.

(3)Includes European countries (e.g., the Nordics, Germany, France, Italy, Spain and the United Kingdom).

(4)Includes revenues primarily related to cancellation fees, vacation protection insurance and pre- and post-cruise tours and fees for operating certain port facilities. Amounts also include revenues related to our bareboat charter, procurement and management related services we perform on behalf of our unconsolidated affiliates. Refer to Note 8. 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 years ended December 31, 2019, 2018 and 2017, our guests were sourced from the following areas:

	Year Ended December 31,
	2019		2018		2017
Passenger ticket revenues:
United States	65	%	61	%	59	%
United Kingdom	9	%	10	%	9	%
All other countries (1)	26	%	29	%	32	%

(1)No other individual country's revenue exceeded 10% for the years ended December 31, 2019, 2018 and 2017.

Customer Deposits and Contract Liabilities

Our payment terms generally require an upfront deposit to confirm a reservation, with the balance due prior to the cruise. Deposits received on sales of passenger cruises are initially recorded as Customer deposits in our consolidated balance sheets and subsequently recognized as passenger ticket revenues during the duration of the cruise. ASC 606, Revenues from Contracts with Customers, defines a “contract liability” as an entity’s obligation to transfer goods or services to a customer for which the entity has received consideration from the customer. We consider customer deposits to be a contract liability once 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 as of December 31, 2019, 2018 and 2017 included contract liabilities of $1.7 billion, $1.9 billion and $1.4 billion, respectively. Substantially all of our contract liabilities as of the years ended December 31, 2018 and 2017 were recognized and reported within Total revenues in our consolidated statements of comprehensive income (loss) for the years ended December 31, 2019 and 2018, respectively.

Contract Receivables and Contract Assets

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Although we generally require full payment from our customers prior to their cruise, we grant credit terms to a relatively small portion of our revenue sourced in select markets outside of the United States. As a result, we have outstanding receivables from passenger cruise contracts in those markets. We also have receivables from credit card merchants for cruise ticket purchases and goods and services sold to guests during cruises that are collected before, during or shortly after the cruise voyage. In addition, we have receivables due from concessionaires onboard our vessels. These receivables are included within Trade and other receivables, net in our consolidated balance sheets.

We have contract assets that are conditional rights to consideration for satisfying the construction services performance obligations under a service concession arrangement. As of December 31, 2019, 2018, and 2017, our contract assets were $55.5 million, $57.8 million and $60.1 million, respectively, and were included within Other assets in our consolidated balance sheets. Given the short duration of our cruises and our collection terms, we do not have any other significant contract assets.

Assets Recognized from the Costs to Obtain a Contract with a Customer

Prepaid travel agent commissions are an incremental cost of obtaining contracts with customers that we recognize as an asset and include within Prepaid expenses and other assets in our consolidated balance sheets. Prepaid travel agent commissions were $163.2 million and $153.5 million as of December 31, 2019 and 2018, respectively. Substantially all of our prepaid travel agent commissions at December 31, 2018 and December 31, 2017 were expensed and reported within Commissions, transportation and other in our consolidated statements of comprehensive income (loss) for the years ended December 31, 2019 and 2018, respectively.

Note 5. Goodwill

The carrying amount of goodwill attributable to our Royal Caribbean International, Celebrity Cruises and Silversea Cruises reporting units and the changes in such balances during the years ended December 31, 2019 and 2018 were as follows (in thousands):

	Royal Caribbean International		Celebrity Cruises		Silversea Cruises		Total
Balance at December 31, 2017	$	286,880	$	1,632	$	—	$	288,512
Goodwill attributable to the acquisition of Silversea Cruises (1)					1,090,010		1,090,010
Foreign currency translation adjustment	(169)		—		—		(169)
Balance at December 31, 2018	286,711		1,632		1,090,010		1,378,353
Silversea Goodwill adjustment	—		—		(5,224)		(5,224)
Goodwill attributable to the purchase of photo operations onboard our ships (2)	12,518		—		—		12,518
Foreign currency translation adjustment	(3)		—		—		(3)
Balance at December 31, 2019	$	299,226	$	1,632	$	1,084,786	$	1,385,644

___________________________________________________________________

(1)In 2018, we purchased Silversea Cruises. Refer to Note 3. Business Combination for further information.

(2)In 2019, we purchased the photo operations onboard our ships from our previous concessionaire. The acquisition was accounted for as a business purchase combination using the purchase method of accounting which requires the use of fair value measurements. The business combination, including purchase transaction and assets acquired, was immaterial to our consolidated financial statements.

During the fourth quarter of 2019, we performed a qualitative assessment of whether it was more-likely-than-not that our Royal Caribbean International reporting unit's fair value was less than its carrying amount before applying the two-step goodwill impairment test. The qualitative analysis included assessing the impact of certain factors such as general economic conditions, limitations on accessing capital, changes in forecasted operating results, changes in fuel prices and fluctuations in foreign exchange rates. Based on our qualitative assessment, we concluded that it was more-likely-than-not that the estimated fair value of the Royal Caribbean International reporting unit exceeded its carrying value and thus, we did not proceed to the two-step goodwill impairment test. No

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indicators of impairment exist primarily because the reporting unit's fair value has consistently exceeded its carrying value by a significant margin and forecasts of operating results generated by the reporting unit appear sufficient to support its carrying value. As a result of our assessment, we did not record an impairment of goodwill for the year ended December 31, 2019.

During the fourth quarter of 2019, we also performed a qualitative assessment of whether it was more-likely-than-not that our Silversea Cruises reporting unit's fair value was less than its carrying amount before applying the two-step goodwill impairment test. The qualitative analysis included assessing the impact of certain factors such as general economic conditions, limitations on accessing capital, changes in forecasted operating results, changes in fuel prices and fluctuations in foreign exchange rates. Based on our qualitative assessment, we concluded that it was more-likely-than-not that the estimated fair value of the Silversea Cruises reporting unit exceeded its carrying value and thus, we did not proceed to the two-step goodwill impairment test. No indicators of impairment exist primarily because forecasted operating results of the reporting unit appear sufficient to support its carrying value. As a result of our assessment, we did not record an impairment of goodwill for the year ended December 31, 2019.

For the years ended December 31, 2018 and 2017, we did not record an impairment of goodwill for our reporting units.

Note 6. Intangible Assets

Intangible assets consist of finite and indefinite life assets and are reported within Other assets in our consolidated balance sheets.

The following is a summary of our intangible assets as of December 31, 2019 (in thousands, except weighted average amortization period):

	As of December 31, 2019
	Remaining Weighted Average Amortization Period (Years)	Gross Carrying Value		Accumulated Amortization		Net Carrying Value
Finite-life intangible assets:
Customer relationships	13.8	$	97,400	$	7,576	$	89,824
Galapagos operating license	24.7	47,669		6,010		41,659
Other finite-life intangible assets	0.8	11,560		6,743		4,817
Total finite-life intangible assets		156,629		20,329		136,300
Indefinite-life intangible assets		352,275		—		352,275
Total intangible assets, net		$	508,904	$	20,329	$	488,575

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The following is a summary of our intangible assets as of December 31, 2018 (in thousands, except weighted average amortization period):

	As of December 31, 2018
	Remaining Weighted Average Amortization Period (Years)	Gross Carrying Value		Accumulated Amortization		Net Carrying Value
Finite-life intangible assets:
Customer relationships	14.8	$	97,400	$	1,082	$	96,318
Galapagos operating license	25.8	47,669		4,206		43,463
Other finite-life intangible assets	1.8	11,560		963		10,597
Total finite-life intangible assets		156,629		6,251		150,378
Indefinite-life intangible assets		351,725		—		351,725
Total intangible assets, net		$	508,354	$	6,251	$	502,103

The estimated future amortization for finite-life intangible assets for each of the next five years is as follows (in thousands):

Year
2020	$	12,995
2021	$	8,179
2022	$	8,179
2023	$	8,179
2024	$	8,179

Note 7. Property and Equipment

Property and equipment consists of the following (in thousands):

	As of December 31,
	2019		2018
Ships	$	28,348,088	$	27,209,553
Ship improvements	3,920,800		2,965,634
Ships under construction	1,110,962		817,800
Land, buildings and improvements, including leasehold improvements and port facilities	472,067		321,136
Computer hardware and software, transportation equipment and other	1,698,007		1,120,988
Total property and equipment	35,549,924		32,435,111
Less—accumulated depreciation and amortization(1)	(10,083,116)		(8,968,948)
	$	25,466,808	$	23,466,163

(1)Amount includes accumulated depreciation and amortization for assets in service.

Ships under construction include progress payments for the construction of new ships as well as planning, design, capitalized interest and other associated costs. We capitalized interest costs of $56.5 million, $49.6 million and $24.2 million for the years ended December 31, 2019, 2018 and 2017, respectively.

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During 2019, we took delivery of Spectrum of the Seas and Celebrity Flora. During 2018, we completed our purchase of Azamara Pursuit and took delivery of Symphony of the Seas and Celebrity Edge. Refer to Note 9. Debt for further information.

Upon our acquisition of Silversea Cruises, we added nine ships to our fleet, two of which are under capital lease agreements and one under an operating lease. As of December 31, 2019, Silversea Cruises operates eight ships as the operating lease for Silver Discover was terminated during 2019. Refer to Note 3. Business Combination for further information on the Silversea Cruises acquisition and Note 9. Debt for further information on the capital leases.

During 2017, we sold our three aircraft and 6% of our ownership stake in Wamos Air, S.A. (formerly known as Pullmantur Air, S.A.) to Wamos Air, S.A. In connection with the sale transaction, we extended two loans to Wamos Air, S.A. totaling €17.3 million. During the year ended December 31, 2019, we received principal and interest payments of €5.4 million resulting in full repayment of one of the loans. As of December 31, 2019, a receivable of €9.9 million, or approximately $11.1 million, based on the exchange rate at December 31, 2019, was outstanding related to the principal amount of the remaining loan. The remaining loan accrues interest at 5.25% per annum, amortizes through maturity of July 2021, and is secured by first priority security interests over the aircraft engines and shares sold in connection with the transaction. The sale resulted in an immaterial gain that was recognized in earnings during the year ended December 31, 2017. Post-sale, we retained a 13% interest in Wamos Air, S.A.

During 2017, we sold Legend of the Seas to an affiliate of TUI AG, our joint venture partner in TUI Cruises. The sale resulted in a gain of $30.9 million and was reported within Other operating within Cruise operating expenses in our consolidated statements of comprehensive income (loss) for the year ended December 31, 2017.

In January of 2020, Zenith was sold to a third party for approximately its net book value. Zenith was previously bareboat chartered to Pullmantur Holdings S.L.

Note 8. Other Assets

A Variable Interest Entity ("VIE") is an entity in which the equity investors have not provided enough equity to finance the entity's activities or the equity investors (1) cannot directly or indirectly make decisions about the entity's activities through their voting rights or similar rights; (2) do not have the obligation to absorb the expected losses of the entity; (3) do not have the right to receive the expected residual returns of the entity; or (4) have voting rights that are not proportionate to their economic interests and the entity's activities involve or are conducted on behalf of an investor with a disproportionately small voting interest.

We have determined that TUI Cruises GmbH, our 50%-owned joint venture, which operates the brand TUI Cruises, is a VIE. As of December 31, 2019, the net book value of our investment in TUI Cruises was $598.1 million, primarily consisting of $443.1 million in equity and a loan of €133.2 million, or approximately $149.5 million, based on the exchange rate at December 31, 2019. As of December 31, 2018, the net book value of our investment in TUI Cruises was $578.1 million, primarily consisting of $403.0 million in equity and a loan of €150.6 million, or approximately $172.2 million, based on the exchange rate at December 31, 2018. 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, our joint venture partner in TUI Cruises, and is secured by a first priority mortgage on the ship. Refer to Note 7. Property and Equipment for further information. The majority of these amounts were included within Other assets in our consolidated balance sheets.

In addition, we and TUI AG have each guaranteed the repayment by TUI Cruises of 50% of a bank loan. As of December 31, 2019, the outstanding principal amount of the loan was €26.4 million, or approximately $29.7 million, based on the exchange rate at December 31, 2019. The loan amortizes quarterly and is currently secured by a first mortgage on Mein Schiff Herz. Based on current facts and circumstances, we do not believe potential obligations under our guarantee of this bank loan are probable. In addition to our guarantee of the bank loan, TUI Cruises has various ship construction and financing agreements which include certain restrictions on each of our and TUI AG’s ability to reduce our current ownership interest in TUI Cruises below 37.55% through May 2031.

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Our investment amount, outstanding term loan and the potential obligations under the bank loan guarantee are substantially our maximum exposure to loss in connection with our investment in TUI Cruises. We have determined that we are not the primary beneficiary of TUI Cruises. We believe that the power to direct the activities that most significantly impact TUI Cruises’ economic performance are shared between ourselves and TUI AG. All the significant operating and financial decisions of TUI Cruises require the consent of both parties, which we believe creates shared power over TUI Cruises. Accordingly, we do not consolidate this entity and account for this investment under the equity method of accounting.

In March 2009, we sold Celebrity Galaxy to TUI Cruises for €224.4 million, or $290.9 million, to serve as the original Mein Schiff 1. Due to the related party nature of this transaction, the gain on the sale of the ship of $35.9 million was deferred and being recognized over the remaining life of the ship which was estimated to be 23 years. In April 2018, TUI Cruises sold the original Mein Schiff 1 and as a result we accelerated the recognition of the remaining balance of the deferred gain, which was $21.8 million. This amount is included within Other income (expense) in our consolidated statements of comprehensive income (loss) for the year ended December 31, 2018.

On February 7, 2020, TUI Cruises entered into an agreement to acquire Hapag-Lloyd Cruises, a luxury and expedition brand for German-speaking guests, from TUI AG. Hapag-Lloyd Cruises operates two luxury liners and three smaller expedition ships. The transaction is subject to regulatory approval and customary closing conditions.

We have determined that Pullmantur Holdings S.L. ("Pullmantur Holdings"), which operates the Pullmantur brand and in which we have a 49% noncontrolling interest and Springwater Capital LLC has a 51% interest, is a VIE for which we are not the primary beneficiary, as we do not have the power to direct the activities that most significantly impact the entity's economic performance. Accordingly, we do not consolidate this entity and we account for this investment under the equity method of accounting. As of December 31, 2019 and December 31, 2018, our maximum exposure to loss in Pullmantur Holdings was $49.7 million and $58.5 million, respectively, consisting of loans and other receivables. These amounts were included within Trade and other receivables, net and Other assets in our consolidated balance sheets.

We have provided a non-revolving working capital facility to a Pullmantur Holdings subsidiary in the amount of up to €15.0 million or approximately $16.8 million based on the exchange rate at December 31, 2019. Proceeds of the facility, which were available to be drawn through December 31, 2018 accrue interest at an interest rate of 6.5% per annum, are payable through 2022. An affiliate of Springwater Capital LLC, has guaranteed repayment of 51% of the outstanding amounts under the facility. As of December 31, 2019, €11.0 million, or approximately $12.3 million, based on the exchange rate at December 31, 2019, was outstanding under this facility. As of December 31, 2018, €14.0 million, or approximately $16.0 million, based on the exchange rate at December 31, 2018, was outstanding under this facility.

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, ship upgrades and certain emergency repairs as may be required. During the years ended December 31, 2019 and 2018, we made payments of $45.7 million and $44.7 million, respectively, to Grand Bahama for ship repair and maintenance services. We have determined that we are not the primary beneficiary of this facility, as we do not have the power to direct the activities that most significantly impact the facility's economic performance. Accordingly, we do not consolidate this entity and we account for this investment under the equity method of accounting. As of December 31, 2019, the net book value of our investment in Grand Bahama was $47.9 million, consisting of $27.0 million in equity and loans of $20.9 million. As of December 31, 2018, the net book value of our investment in Grand Bahama was approximately $56.1 million, consisting of $41.4 million in equity and loans of $14.6 million. These amounts represent our maximum exposure to loss related to our investment in Grand Bahama. Our loans to Grand Bahama mature between December 2020 and March 2026 and bear interest at LIBOR plus 2.0% to 3.75%, capped at 5.75% for the majority of the outstanding loan balance. Interest payable on the loans is due on a semi-annual basis. During the years ended December 31, 2019 and 2018, we received principal and interest payments of $8.6 million and $16.4 million, respectively. The loan balances are included within Trade and

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other receivables, net and Other assets in our consolidated balance sheets. The loans are currently accruing interest under the effective yield method.

We monitor credit risk associated with the loan through our participation on Grand Bahama's board of directors along with our review of Grand Bahama's financial statements and projected cash flows. Based on this review, we believe the risk of loss associated with the outstanding loan is not probable as of December 31, 2019.

In April 2019, Grand Bahama experienced an incident involving one of its drydocks where Oasis of the Seas was undergoing maintenance.  The damage from the incident resulted in a write-off of the related drydock by Grand Bahama.  Our equity investment income for the year ended December 31, 2019 reflects our equity share of the write-off and other incidental expenses. Grand Bahama's management is working with its insurance underwriter to determine coverage under their existing policies.

In March 2018, we and Ctrip.com International Ltd. ("Ctrip") announced the decision to end the Skysea Holding International Ltd. ("Skysea Holding") venture in which we have a 36% ownership interest. As a result, we reviewed the recoverability of our investment in Skysea Holding and determined that our investment, debt facility and other receivables due from the brand were impaired and recognized an impairment charge of $23.3 million which was included within Other (expense) income in our consolidated statement of comprehensive income (loss) for the year ended December 31, 2018. The charge reflected a full impairment of our investment in SkySea Holding and other receivables due to us and reduced the debt facility and related accrued interest due to us to Skysea Holdings to its net realizable value.

In December 2018, the Golden Era, the ship operated by SkySea Cruises, and a wholly-owned subsidiary of Skysea Holdings, was sold to an affiliate of TUI AG. Proceeds from the sale were distributed to Ctrip and us, which eliminated our net receivable balance due from Skysea Holding, resulting in no further impairment charges. As of December 31, 2019, we do not have any exposures to loss related to our investment in Skysea Holding.

The following tables set forth information regarding our investments accounted for under the equity method of accounting, including the entities discussed above, (in thousands):

	Year ended December 31,
	2019		2018		2017
Share of equity income from investments	$	230,980	$	210,756	$	156,247
Dividends received (1)	$	150,177	$	243,101	$	109,677

(1) For the year ended December 31, 2019, TUI Cruises paid us dividends totaling €170.0 million, or approximately $190.3 million, based on the exchange rates at the time of the transactions. The amounts included in the table above are net of tax withholdings.

	As of December 31,
	2019		2018
Total notes receivable due from equity investments	$	184,558	$	201,979
Less-current portion (1)	25,933		19,075
Long-term portion (2)	$	158,625	$	182,904

___________________________________________________________________

(1)  Included within Trade and other receivables, net in our consolidated balance sheets.

(2) Included within Other assets in our consolidated balance sheets.

We also provide ship management services to TUI Cruises GmbH, Pullmantur Holdings and Skysea Holding (which ceased cruising operations in September 2018). Additionally, we bareboat charter to Pullmantur Holdings the vessels currently operated by its brands, which were retained by us following the sale of our 51% interest in Pullmantur Holdings. We recorded the following as it relates to these services in our operating results within our consolidated statements of comprehensive income (loss) (in thousands):

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

	Year ended December 31,
	2019		2018		2017
Revenues	$	47,242	$	54,705	$	53,532
Expenses	$	4,304	$	11,531	$	15,176

Summarized financial information for our affiliates accounted for under the equity method of accounting was as follows (in thousands):

	As of December 31,
	2019		2018
Current assets	$	435,152	$	471,428
Non-current assets	4,019,394		3,826,018
Total assets	$	4,454,546	$	4,297,446
Current liabilities	$	1,094,552	$	1,064,741
Non- current liabilities	2,267,936		2,217,909
Total liabilities	$	3,362,488	$	3,282,650
Equity attributable to:
Noncontrolling interest	$	1,784	$	1,672

	Year ended December 31,
	2019		2018		2017
Total revenues	$	2,354,744	$	2,255,352	$	1,994,014
Total expenses	(1,875,952)		(1,779,160)		(1,684,276)
Net income	$	478,792	$	476,192	$	309,738

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 9. Debt

Debt consists of the following (in thousands):

			As of December 31,
	Interest Rate(1)	Maturities Through	2019		2018
Fixed rate debt:
Senior notes	2.65% to 7.50%	2020 - 2028	$	1,746,280	$	1,724,194
Secured senior notes	7.25%	2025	662,398		670,437
Unsecured term loans	2.53% to 5.41%	2021 - 2030	2,806,774		2,148,351
Total fixed rate debt			5,215,452		4,542,982
Variable rate debt:
Unsecured revolving credit facilities(2)	2.79%	2022 - 2024	165,000		795,000
Commercial paper	2.19%	2019	1,434,180		775,488
USD unsecured term loan	2.31% to 5.64%	2019 - 2028	3,519,853		4,005,848
Euro unsecured term loan	1.15% to 1.58%	2021 - 2028	676,740		734,176
Total variable rate debt			5,795,773		6,310,512
Finance lease liabilities			230,258		130,944
Total debt (3)			11,241,483		10,984,438
Less: unamortized debt issuance costs			(206,607)		(206,739)
Total debt, net of unamortized debt issuance costs			11,034,876		10,777,699
Less—current portion including commercial paper			(2,620,766)		(2,422,329)
Long-term portion			$	8,414,110	$	8,355,370

(1)Interest rates based on outstanding loan balance as of December 31, 2019 and, for variable rate debt, include either LIBOR or EURIBOR plus the applicable margin.

(2)Includes $1.7 billion facility due in 2024 and $1.2 billion facility due in 2022, each of which accrue interest at LIBOR plus 1.00%, currently 2.91%, and are subject to a facility fee of 0.125%.

(3)At December 31, 2019 and 2018, the weighted average interest rate for total debt was 3.99% and 4.14%, respectively.

In April 2019, we amended our $1.4 billion unsecured revolving credit facility due in 2020 to extend the termination date through April 2024, increase the facility size to $1.7 billion and reduce pricing. The interest rate and facility fee vary with our senior debt rating and are currently set at LIBOR plus 1.0% per annum and 0.125% per annum, respectively. These amendments did not result in the extinguishment of debt. In addition, in May 2019, we amended our $1.15 billion unsecured revolving credit facility due in 2022 to reduce pricing to match pricing on our $1.7 billion unsecured revolving credit facility due in 2024.

In April 2019, we entered into and drew in full on an unsecured three-year term loan agreement in the amount of $1.0 billion. The loan accrues interest at a floating rate of LIBOR plus an applicable margin, which varies with our senior debt rating, and is currently 1.075% per annum. Proceeds of this loan were used to repay the $700 million 364-day loan due July 2019 related to the acquisition of Silversea Cruises and the remaining balance of the unsecured term loan originally incurred in 2010 to purchase Allure of the Seas. The repayment of these loans resulted in a total loss on the extinguishment of debt of $6.3 million, which was recognized within Other (expense) income within our consolidated statements of comprehensive income (loss) for the twelve months ended December 31, 2019.

In April 2019, we took delivery of Spectrum of the Seas. To finance the purchase, we borrowed $908.0 million under a previously committed unsecured term loan which is 95% guaranteed by Euler Hermes Aktiengesellschaft, the official export credit agency of Germany. The loan amortizes semi-annually over 12 years and bears interest at a fixed rate of 3.45% per annum.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

In May 2019, we took delivery of Celebrity Flora. The purchase was financed through an unsecured term loan facility entered into in November 2017 in an amount up to €80.0 million, or approximately $89.8 million based on the exchange rate at December 31, 2019. As of December 31, 2019, we had fully drawn on this facility. The loan is due and payable at maturity in November 2024. Interest on the loan accrues at a floating rate based on EURIBOR plus the applicable margin. The applicable margin varies with our debt rating and was 1.195% as of December 31, 2019.

In June 2018, we established a commercial paper program pursuant to which we may issue short-term unsecured notes from time to time in an aggregate amount of up to $1.2 billion, which was increased to $2.9 billion in August 2019. The commercial paper issued is backstopped by our revolving credit facilities. As of December 31, 2019, we had $1.4 billion of commercial paper notes outstanding with a weighted average interest rate of 2.19% and a weighted average maturity of approximately 21 days. As of December 31, 2018 we had $777.0 million of commercial paper notes outstanding with a weighted average interest rate of 3.19% and a weighted average maturity of approximately 23 days.

Except for Celebrity Flora, 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. In consideration for these guarantees, depending on the financing arrangement, we pay to the applicable export credit agency (1) a fee of 0.77% per annum based on the outstanding loan balance semi-annually over the term of the loan (subject to adjustment based upon our credit ratings) or (2) an upfront fee of 2.35% to 2.37% of the maximum loan amount. We amortize the fees that are paid upfront over the life of the loan and those that are paid semi-annually over each respective payment period. Prior to the loan being drawn, we present these fees within Other assets in our consolidated balance sheets. Once the loan is drawn, such fees are classified as a discount to the related loan, or contra-liability account, within Current portion of long-term debt or Long-term debt. In our consolidated statements of cash flows, we classify these fees within Amortization of debt issuance costs.

Under certain of our agreements, the contractual interest rate, facility fee and/or export credit agency fee vary with our debt rating.

The unsecured senior notes and senior debentures are not redeemable prior to maturity, except that certain series may be redeemed upon the payment of a make-whole premium.

Finance Leases

Silversea Cruises operates two ships, the Silver Whisper and Silver Explorer, under finance leases. The finance lease for the Silver Whisper will expire in 2022, subject to an option to purchase the ship, and the finance lease for the Silver Explorer will expire in 2021, subject to an option to extend the lease for up to an additional six years. The total aggregate amount of the finance lease liabilities recorded for these ships at the acquisition date was $82.8 million. The lease payments on the Silver Whisper are subject to adjustments based on the LIBOR rate. Refer to Note 3. Business Combination for further information regarding the assets acquired and liabilities assumed in the Silversea Cruises acquisition.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Following is a schedule of annual maturities on our total debt net of debt issuance costs, and including capital leases and commercial paper, as of December 31, 2019 for each of the next five years (in thousands):

Year
2020	$	2,620,766
2021	843,906
2022	2,479,303
2023	763,382
2024	723,697
Thereafter	3,603,822
	$	11,034,876

Note 10. Leases

Our operating leases primarily relate to preferred berthing arrangements, real estate and shipboard equipment and are included within Operating lease right-of-use assets, and Long-term operating lease liabilities with the current portion of the liability included within Current portion of operating lease liabilities in our consolidated balance sheet as of December 31, 2019. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet. We recognize lease expense for these leases on a straight-line basis over the lease term. Refer to Note 2. Summary of Significant Accounting Policies, for further information on the adoption of ASC 842.

Finance leases are included within Property and equipment, net and Long-term debt, with the current portion of the debt reported within Current portion of debt, in our consolidated balance sheets.

Our finance leases include two ships, Silver Whisper and Silver Explorer, operated by Silversea Cruises. The finance lease for Silver Whisper will expire in 2022, subject to an option to purchase the ship, and the finance lease for Silver Explorer will expire in 2021, subject to an option to extend the lease for up to an additional 6 years.

In June 2019, the Company entered into a new master lease agreement (“Master Lease”) with Miami-Dade County relating to the buildings and surrounding land located at its Miami headquarters, which are classified as finance leases in accordance with ASC 842. Prior to entering into the Master Lease, the buildings were classified as operating lease assets. The finance lease for the buildings and land will expire in 2072, which includes an initial 43 years lease term and two five-year options to extend the lease. We consider the possibility of exercising the two five-year options reasonably certain.

For some of our real estate leases and berthing agreements, we do have the option to extend our current lease term. For those lease agreements with renewal options, the renewal periods for real estate leases range from one to 10 years and the renewal periods for berthing agreements range from one year 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. Additionally, we do have a residual value guarantee associated with our lease of a terminal at PortMiami in Miami, Florida that approximates a percentage of cost of the asset as of the inception of the lease. We consider the possibility of incurring costs associated with the residual value guarantee to be remote.

As most of our leases do not provide an implicit rate, we use our incremental borrowing rate in determining the present value of lease payments. We estimate our incremental borrowing rates based on LIBOR and U.S. Treasury note rates corresponding to lease terms increased by the Company’s credit risk spread and reduced by the estimated impact of collateral. We used the incremental borrowing rate as of the adoption date for operating leases that commenced prior to that date. 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.

Additionally, we bareboat charter to Pullmantur Holdings the vessels currently operated by its brands, which were retained by us following the sale of our 51% interest in Pullmantur Holdings in 2016. We account for the

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bareboat charters of these vessels as operating leases for which we are the lessor.  The remaining payments and term of these leases are immaterial to our consolidated financial statements.

Supplemental balance sheet information for leases was as follows (in thousands):

	As of December 31, 2019
Lease assets:
Finance lease right-of-use assets, net:
Property and equipment, gross	$	376,159
Accumulated depreciation	(57,955)
Property and equipment, net	318,204
Operating lease right-of-use assets	687,555
Total lease assets	$	1,005,759
Lease liabilities:
Finance lease liabilities:
Current portion of debt	$	33,561
Long-term debt	196,697
Total finance lease liabilities	230,258
Operating lease liabilities:
Current portion of operating lease liabilities	96,976
Long-term operating lease liabilities	601,641
Total operating lease liabilities	698,617
Total lease liabilities	$	928,875

The components of lease expense were as follows (in thousands):

	Consolidated Statement of Comprehensive Income (Loss) Classification	Twelve Months Ended December 31, 2019
Lease costs:
Operating lease costs	Commission, transportation and other	$	76,226
Operating lease costs	Other operating expenses	27,868
Operating lease costs	Marketing, selling and administrative expenses	18,837
Finance lease costs:
Amortization of right-of-use-assets	Depreciation and amortization expenses	22,044
Interest on lease liabilities	Interest expense, net of interest capitalized	8,355
Total lease costs		$	153,330

In addition, certain of our berth agreements include variable lease costs based on the number of passengers berthed. During the twelve months ended December 31, 2019, we had $103.3 million of variable lease costs recorded within Commission, transportation and other in our consolidated statement of comprehensive income (loss).

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Weighted average of the remaining lease terms and weighted average discount rates are as follows:

	As of December 31, 2019
Weighted average of the remaining lease term
Operating leases	10.3
Finance leases	30.22
Weighted average discount rate
Operating leases	4.65	%
Finance leases	4.47	%

Supplemental cash flow information related to leases is as follows (in thousands):

	Twelve Months Ended December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	125,307
Operating cash flows from finance leases	$	8,355
Financing cash flows from finance leases	$	32,090

As of December 31, 2019, maturities related to lease liabilities were as follows (in thousands):

Years	Operating Leases		Finance Leases
2020	$	126,235	$	43,793
2021	113,033		46,726
2022	104,907		23,801
2023	101,547		12,539
2024	75,510		12,528
Thereafter	417,122		405,756
Total lease payments	938,354		545,143
Less: Interest	(239,737)		(314,885)
Present value of lease liabilities	$	698,617	$	230,258

Operating lease payments do not include any costs related to options to extend lease terms as none are reasonably certain of being exercised.

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Under ASC 840, Leases, future minimum lease payments under noncancelable operating leases, primarily for offices, warehouses and motor vehicles, as of December 31, 2018 were as follows (in thousands):

Years
2019	$	67,682
2020	64,237
2021	56,142
2022	52,759
2023	52,522
Thereafter	383,974
	$	677,316

Total expense for operating leases, under ASC 840, primarily for offices, warehouses and motor vehicles amounted to $32.2 million and $29.3 million for the years ended December 31, 2018 and 2017, respectively.

In July 2016, we executed an agreement with Miami Dade County (“MDC”), which was simultaneously assigned to Sumitomo Banking Corporation (“SMBC”), to lease land from MDC and construct a new cruise terminal of approximately 170,000 square feet at PortMiami in Miami, Florida, which was completed during the fourth quarter of 2018 and serves as a homeport. During the construction period, SMBC funded the costs of the terminal’s construction and land lease. Once the terminal was substantially completed, we commenced operating and leasing the terminal from SMBC for a five-year term. We determined that the lease arrangement between SMBC and us should be accounted for as an operating lease.

Note 11. Redeemable Noncontrolling Interest

In connection with the acquisition of Silversea Cruises, we recorded a redeemable noncontrolling interest of $537.8 million due to the put options held by HCH. The put options may require us to purchase HCH's remaining interest, or 33.3% of Silversea Cruises, upon the occurrence or nonoccurrence of certain future events that are not solely within our control. As of December 31, 2019, HCH's interest is presented as Redeemable noncontrolling interest and is classified outside of shareholders' equity in our consolidated balance sheets. Additionally, the noncontrolling interest's share in the net earnings (loss) and contractual accretion requirements associated with the put options are included in Net Income attributable to noncontrolling interests in our consolidated statements of comprehensive income (loss).

The following table presents changes in the redeemable noncontrolling interest as of December 31, 2019 (in thousands):

Balance as of January 1, 2018	$	—
Additions (Silversea Cruises acqusition)	537,770
Net income attributable to noncontrolling interest, including the contractual accretion of the put options	4,750
Other	(500)
Balance at December 31, 2018	$	542,020
Net income attributable to noncontrolling interest, including the contractual accretion of the put options	28,713
Distribution to noncontrolling interest	(752)
Balance at December 31, 2019	$	569,981

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 12. Shareholders' Equity

Dividends Declared

During the fourth and third quarters of 2019, we declared a cash dividend on our common stock of $0.78 per share which was paid in the first quarter of 2020 and fourth quarter of 2019, respectively. During the first and second quarters of 2019, we declared a cash dividend on our common stock of $0.70 per share which was paid in the second and third quarters of 2019, respectively.

During the fourth and third quarters of 2018, we declared a cash dividend on our common stock of $0.70 per share which was paid in the first quarter of 2019 and fourth quarter of 2018, respectively. During the first and second quarters of 2018, we declared a cash dividend on our common stock of $0.60 per share which was paid in the second and third quarters of 2018, respectively. During the first quarter of 2018, we also paid a cash dividend on our common stock of $0.60 per share which was declared during the fourth quarter of 2017.

During the fourth and third quarters of 2017, we declared a cash dividend on our common stock of $0.60 per share which was paid in the first quarter of 2018 and fourth quarter of 2017, respectively. During the first and second quarters of 2017, we declared a cash dividend on our common stock of $0.48 per share which was paid in the second and third quarters of 2017, respectively. During the first quarter of 2017, we also paid a cash dividend on our common stock of $0.48 per share which was declared during the fourth quarter of 2016.

Common Stock Repurchase Program

In May 2018, our board of directors authorized a 24-month common stock repurchase program for up to $1.0 billion. The timing and number of shares to be repurchased will depend on a variety of factors, including price and market conditions. Repurchases under the program may be made at management's discretion from time to time on the open market or through privately negotiated transactions. During the year ended December 31, 2019, we repurchased 0.9 million shares of our common stock under this program, for a total of $99.6 million, in open market transactions that were recorded within Treasury stock in our consolidated balance sheets. As of December 31, 2019, we have $600.0 million that remains available for future stock repurchase transactions under our Board authorized program.

Note 13. Stock-Based Employee Compensation

We currently have awards outstanding under one stock-based compensation plan, our 2008 Equity Plan, which provides for awards to our officers, directors and key employees. The plan consists of a 2008 Equity Plan, as amended, provides for the issuance of up to 14,000,000 shares of our common stock pursuant to grants of (i) incentive and non-qualified stock options, (ii) stock appreciation rights, (iii) stock awards (including time-based and/or performance-based stock awards) and (iv) restricted stock units (including time-based and performance-based restricted stock units). During any calendar year, no one individual (other than non-employee members of our board of directors) may be granted awards of more than 500,000 shares and no non-employee member of our board of directors may be granted awards with a value in excess of $500,000 at the grant date. Options and restricted stock units outstanding as of December 31, 2019 generally vest in equal installments over four years from the date of grant. In addition, performance shares and performance share units generally vest in three years. With certain limited exceptions, awards are forfeited if the recipient ceases to be an employee before the shares vest.

Prior to 2012, our officers received a combination of stock options and restricted stock units. Beginning in 2012, our officers instead receive their long-term incentive awards through a combination of performance share units and restricted stock units. Each performance share unit award is expressed as a target number of performance share units based upon the fair market value of our common stock on the date the award is issued. The actual number of shares underlying each award (not to exceed 200% of the target number of performance share units) will be determined based upon the Company's achievement of a specified performance target range. In 2019, we issued a target number of 187,924 performance share units, which will vest approximately three years following the award issue date. The performance payout of these grants will be based on return on our invested capital ("ROIC") and

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ROYAL CARIBBEAN CRUISES LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

earnings per share (“EPS”) for the year ended December 31, 2021, as may be adjusted by the Talent and Compensation Committee of our board of directors in early 2022 for events that are outside of management's control.

Beginning in 2016, our senior officers meeting certain minimum age and service criteria receive their long-term incentive awards through a combination of restricted stock awards and restricted stock units. The restricted stock awards are subject to both performance and time-based vesting criteria while the restricted stock units are subject only to time-based vesting criteria. Each restricted stock award is issued in an amount equal to 200% of the target number of shares underlying the award based upon the fair market value of our common stock on the date the award is issued. Dividends accrue (but do not get paid) on the restricted stock awards during the vesting period, with the accrued amounts to be paid out following vesting only on the number of shares underlying the award which actually vest based on satisfaction of the performance criteria. The actual number of shares that vest (not to exceed 200% of the shares) will be determined based upon the Company's achievement of a specified performance target range. In 2019, we issued 194,486 restricted stock awards, representing 200% of the target number of shares underlying the award, all of which are considered issued and outstanding from the date of issuance, however; grantees will only retain those shares earned as the result of the Company achieving the performance goals during the measurement period. The performance payout of the 2019 awards will be based on ROIC and EPS for the year ended December 31, 2021, as may be adjusted by the Talent and Compensation Committee of our board of directors in early 2022 for events that are outside of management's control.

On January 24, 2018, the Company issued a one-time bonus award for all non-officer employees. These awards vest, in equal installments, over the 3 years following the award issue date. For shoreside eligible employees, awards were issued as equity-settled restricted stock units.

We also provide an Employee Stock Purchase Plan ("ESPP") to facilitate the purchase by employees of up to 1,300,000 shares of common stock in the aggregate. Offerings to employees are made on a quarterly basis. Subject to certain limitations, the purchase price for each share of common stock is equal to 85% of the average of the market prices of the common stock as reported on the New York Stock Exchange on the first business day of the purchase period and the last business day of each month of the purchase period. During the years ended December 31, 2019, 2018 and 2017, 91,586, 74,100 and 51,989 shares of our common stock were purchased under the ESPP at a weighted-average price of $98.20, $97.50 and $93.15, respectively.

Total compensation expense recognized for employee stock-based compensation for the years ended December 31, 2019, 2018 and 2017 was as follows (in thousands):

	Employee Stock-Based Compensation
Classification of expense	2019		2018		2017
Marketing, selling and administrative expenses	$	75,930	$	46,061	$	69,459
Total compensation expense	$	75,930	$	46,061	$	69,459

The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option pricing model. The estimated fair value of stock options, less estimated forfeitures, is amortized over the vesting period using the graded-vesting method. We did not issue any stock options during the years ended December 31, 2019, 2018 and 2017.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Stock option activity and information about stock options outstanding are summarized in the following table:

Stock Option Activity	Number of Options	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term	Aggregate Intrinsic Value(1)
				(years)	(in thousands)
Outstanding at January 1, 2019	153,093	$	29.06	1.23	$	10,399
Granted	—	—
Exercised	(87,262)	$	19.96
Canceled	(844)	$	33.73
Outstanding at December 31, 2019	64,987	$	41.22	0.87	$	5,990
Vested at December 31, 2019	64,987	$	41.22	0.87	$	5,990
Options Exercisable at December 31, 2019	64,987	$	41.22	0.87	$	5,990

___________________________________________________________________

(1)The intrinsic value represents the amount by which the fair value of stock exceeds the option exercise price.

The total intrinsic value of stock options exercised during the years ended December 31, 2019, 2018 and 2017 was $8.1 million, $11.1 million and $4.5 million, respectively. As of December 31, 2019, there was no unrecognized compensation cost, net of estimated forfeitures, related to stock options granted under our stock incentive plan.

Restricted stock units are converted into shares of common stock upon vesting or, if applicable, are settled on a one-for-one basis. The cost of these awards is determined using the fair value of our common stock on the date of the grant, and compensation expense is recognized over the vesting period. Restricted stock activity is summarized in the following table:

Restricted Stock Units Activity	Number of Awards		Weighted- Average Grant Date Fair Value
Non-vested share units as of January 1, 2019	$	800,585	$	103.32
Granted	293,707		112.13
Vested	(267,134)		96.96
Canceled	(25,323)		109.32
Non-vested share units as of December 31, 2019	$	801,835	$	88.97

The weighted-average estimated fair value of restricted stock units granted during the years ended December 31, 2018 and 2017 was $122.12 and $99.03, respectively. The total fair value of shares released on the vesting of restricted stock units during the years ended December 31, 2019, 2018 and 2017 was $30.8 million, $33.9 million and $38.7 million, respectively. As of December 31, 2019, we had $37.1 million of total unrecognized compensation expense, net of estimated forfeitures, related to restricted stock unit grants, which will be recognized over the weighted-average period of 1.39 years.

Performance share units are converted into shares of common stock upon vesting on a one-for-one basis. We estimate the fair value of each performance share when the grant is authorized and the related service period has commenced. We remeasure the fair value of our performance shares in each subsequent reporting period until the grant date has occurred, which is the date when the performance conditions are satisfied. We recognize compensation cost over the vesting period based on the probability of the service and performance conditions being achieved adjusted for each subsequent fair value measurement until the grant date. If the specified service and performance conditions are not met, compensation expense will not be recognized and any previously recognized compensation expense will be reversed. Performance share units activity is summarized in the following table:

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Performance Share Units Activity	Number of Awards	Weighted- Average Grant Date Fair Value
Non-vested share units as of January 1, 2019	302,561	88.57
Granted	187,924	87.39
Vested	(198,537)	62.49
Canceled	(5,931)	95.12
Non-vested share units as of December 31, 2019	286,017	105.76

The weighted-average estimated fair value of performance share units granted during the years ended December 31, 2018 and 2017 was $97.98 and $84.16, respectively. The total fair value of shares released on the vesting of performance share units during the years ended December 31, 2019, 2018 and 2017 was $23.0 million, $27.3 million and $10.0 million, respectively. As of December 31, 2019, we had $10.0 million of total unrecognized compensation expense, net of estimated forfeitures, related to performance share unit grants, which will be recognized over the weighted-average period of 1.06 year.

The shares underlying our restricted stock awards to age and service eligible senior officers are issued as of the grant date in an amount equal to 200% of the target number of shares. Following the vesting date, the restrictions will lift with respect to the number of shares for which the performance criteria was met and any excess shares will be canceled. Dividends will accrue on the issued restricted shares during the vesting period, but will not be paid to the recipient until the awards vest and the final number of shares underlying the award is determined, at which point, the dividends will be paid in cash only on the earned shares. We estimate the fair value of each restricted stock award when the grant is authorized and the related service period has commenced. We remeasure the fair value of these restricted stock awards in each subsequent reporting period until the grant date has occurred, which is the date when the performance conditions are satisfied. We recognize compensation cost over the vesting period based on the probability of the service and performance conditions being achieved adjusted for each subsequent fair value measurement until the grant date. If the specified service and performance conditions are not met, compensation expense will not be recognized, any previously recognized compensation expense will be reversed, and any unearned shares will be returned to the Company. Restricted stock awards activity is summarized in the following table:

Restricted Stock Awards Activity	Number of Awards	Weighted- Average Grant Date Fair Value
Non-vested share units as of January 1, 2019	390,198	96.03
Granted	194,486	118.08
Vested	(120,329)	66.93
Canceled	(11,899)	66.93
Non-vested share units as of December 31, 2019	452,456	114.01

The weighted-average estimated fair value of restricted stock awards granted during the years ended December 31, 2018 and 2017 was $129.23 and $95.04, respectively. As of December 31, 2019, we had $3.2 million of total unrecognized compensation expense, net of estimated forfeitures, related to restricted stock award grants, which will be recognized over the weighted-average period of 1.24 years.

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Note 14. Earnings Per Share

A reconciliation between basic and diluted earnings per share is as follows (in thousands, except per share data):

	Year Ended December 31,
	2019		2018		2017
Net Income attributable to Royal Caribbean Cruises Ltd. for basic and diluted earnings per share	$	1,878,887	$	1,811,042	$	1,625,133
Weighted-average common shares outstanding	209,405		210,570		214,617
Dilutive effect of stock-based awards	525		984		1,077
Diluted weighted-average shares outstanding	209,930		211,554		215,694
Basic earnings per share	$	8.97	$	8.60	$	7.57
Diluted earnings per share	$	8.95	$	8.56	$	7.53

There were no antidilutive shares for the years ended December 31, 2019, 2018 and 2017.

Note 15. Retirement Plan

We maintain a defined contribution plan covering shoreside employees. Effective January 1, 2016, we commenced annual, non-elective contributions to the plan on behalf of all eligible participants equal to 3% of participants' eligible earnings. Remaining annual contributions to the plan are discretionary and are based on fixed percentages of participants' salaries and years of service, not to exceed certain maximums. Contribution expenses were $21.2 million, $18.9 million and $17.4 million for the years ended December 31, 2019, 2018 and 2017, respectively.

Note 16. Income Taxes

We are subject to corporate income taxes in countries where we have operations or subsidiaries. We and the majority of our ship-operating and vessel-owning subsidiaries are currently exempt from U.S. corporate income tax on U.S. source income from the international operation of ships pursuant to Section 883 of the Internal Revenue Code. Regulations under Section 883 have limited the activities that are considered the international operation of a ship or incidental thereto. Accordingly, our provision for U.S. federal and state income taxes includes taxes on certain activities not considered incidental to the international operation of our ships.

Additionally, one of our ship-operating subsidiaries is subject to tax under the tonnage tax regime of the United Kingdom. Under this regime, income from qualifying activities is subject to corporate income tax, but the tax is computed by reference to the tonnage of the ship or ships registered under the relevant provisions of the tax regimes (the "relevant shipping profits"), which replaces the regular taxable income base. Income from activities not considered qualifying activities, which we do not consider significant, remains subject to United-Kingdom corporate income tax.

Income tax expense for items not qualifying under Section 883, tonnage tax and income taxes for the remainder of our subsidiaries was approximately $32.6 million, $20.9 million and $18.3 million for the years ended December 31, 2019, 2018 and 2017, respectively, and was recorded within Other income (expense). In addition, all interest expense and penalties related to income tax liabilities are classified as income tax expense within Other income (expense).

For a majority of our subsidiaries, we do not expect to incur income taxes on future distributions of undistributed earnings. Accordingly, no deferred income taxes have been provided for the distribution of these earnings. Where we do expect to incur income taxes on future distributions of undistributed earnings, we have provided for deferred taxes, which we do not consider significant to our operations.

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As of December 31, 2019, the Company had deferred tax assets, for foreign net operating losses (“NOLs”) of $25.1 million. We have provided a full valuation allowance for these NOLs. $17.6 million of the NOLs are subject to expire between 2020 and 2025.

Our deferred tax assets and deferred tax liabilities and corresponding valuation allowances related to our operations were not material as of December 31, 2019 and 2018.

We regularly review deferred tax assets for recoverability based on our history of earnings, expectations of future earnings, and tax planning strategies. Realization of deferred tax assets ultimately depends on the existence of sufficient taxable income to support the amount of deferred taxes. A valuation allowance is recorded in those circumstances in which we conclude it is not more-likely-than-not we will recover the deferred tax assets prior to their expiration.

Note 17. Changes in Accumulated Other Comprehensive Income (Loss)

The following table presents the changes in accumulated other comprehensive loss by component for the years ended December 31, 2019, 2018 and 2017 (in thousands):

	Changes related to cash flow derivative hedges		Changes in defined benefit plans		Foreign currency translation adjustments		Accumulated other comprehensive (loss) income
Accumulated comprehensive loss at January 1, 2017	$	(820,850)	$	(28,083)	$	(67,551)	$	(916,484)
Other comprehensive income (loss) before reclassifications	381,865		(6,755)		17,307		392,417
Amounts reclassified from accumulated other comprehensive loss	188,630		1,172		—		189,802
Net current-period other comprehensive income (loss)	570,495		(5,583)		17,307		582,219
Accumulated comprehensive loss at January 1, 2018	(250,355)		(33,666)		(50,244)		(334,265)
Other comprehensive income (loss) before reclassifications	(297,994)		6,156		(14,251)		(306,089)
Amounts reclassified from accumulated other comprehensive loss	11,133		1,487		—		12,620
Net current-period other comprehensive (loss) income	(286,861)		7,643		(14,251)		(293,469)
Accumulated comprehensive loss at January 1, 2019	(537,216)		(26,023)		(64,495)		(627,734)
Other comprehensive (loss) income before reclassifications	(146,108)		(20,314)		869		(165,553)
Amounts reclassified from accumulated other comprehensive loss	(5,205)		779		—		(4,426)
Net current-period other comprehensive (loss) income	(151,313)		(19,535)		869		(169,979)
Accumulated comprehensive loss at December 31, 2019	$	(688,529)	$	(45,558)	$	(63,626)	$	(797,713)

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The following table presents reclassifications out of accumulated other comprehensive loss for the years ended December 31, 2019, 2018 and 2017 (in thousands):

	Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income
Details about Accumulated Other Comprehensive Loss Components	Year Ended December 31, 2019		Year Ended December 31, 2018		Year Ended December 31, 2017		Affected Line Item in Statements of Comprehensive Income (Loss)
Gain (loss) on cash flow derivative hedges:
Interest rate swaps	(4,289)		(10,931)		(31,603)		Interest expense, net of interest capitalized
Foreign currency forward contracts	(14,063)		(12,843)		(10,840)		Depreciation and amortization expenses
Foreign currency forward contracts	(5,080)		12,855		(9,472)		Other income (expense)
Foreign currency forward contracts	—		—		—		Other indirect operating expenses
Foreign currency collar options	—		—		(2,408)		Depreciation and amortization expenses
Fuel swaps	(1,292)		(1,580)		7,382		Other income (expense)
Fuel swaps	29,929		1,366		(141,689)		Fuel
	5,205		(11,133)		(188,630)
Amortization of defined benefit plans:
Actuarial loss	(779)		(1,487)		(1,172)		Payroll and related
	(779)		(1,487)		(1,172)
Total reclassifications for the period	$	4,426	$	(12,620)	$	(189,802)

Note 18. Fair Value Measurements and Derivative Instruments

Fair Value Measurements

The estimated fair value of our financial instruments that are not measured at fair value, categorized based upon the fair value hierarchy, are as follows (in thousands):

	Fair Value Measurements at December 31, 2019										Fair Value Measurements at December 31, 2018
Description	Total Carrying Amount		Total Fair Value		Level 1(1)		Level 2(2)		Level 3(3)		Total Carrying Amount		Total Fair Value		Level 1(1)		Level 2(2)		Level 3(3)
Assets:
Cash and cash equivalents(4)	$	243,738	$	243,738	$	243,738	—		—		$	287,852	$	287,852	$	287,852	—		—
Total Assets	$	243,738	$	243,738	$	243,738	$	—	$	—	$	287,852	$	287,852	$	287,852	$	—	$	—
Liabilities:
Long-term debt (including current portion of long-term debt)(5)	$	9,370,438	$	10,059,055	—		$	10,059,055	—		$	9,871,267	$	10,244,214	—		$	10,244,214	—
Total Liabilities	$	9,370,438	$	10,059,055	$	—	$	10,059,055	$	—	$	9,871,267	$	10,244,214	$	—	$	10,244,214	$	—

___________________________________________________________________

(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.

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(3)Inputs that are unobservable. The Company did not use any Level 3 inputs as of December 31, 2019 and 2018.

(4)Consists of cash and marketable securities with original maturities of less than 90 days.

(5)Consists of unsecured revolving credit facilities, senior notes, senior debentures and term loans. These amounts do not include our capital lease obligations or commercial paper.

Fair Value Measurements on a Nonrecurring Basis

During 2018, we announced that Skysea Holding would cease cruising operations by the end of 2018. As a result, we did not deem our investment balance to be recoverable and estimated the fair value of our investment to be zero. For further information on our Skysea Holding investment and impairment, refer to Note 8. Other Assets.

Other Financial Instruments

The carrying amounts of accounts receivable, accounts payable, accrued interest, accrued expenses and commercial paper approximate fair value as of December 31, 2019 and 2018.

Assets and liabilities that are recorded at fair value have been categorized based upon the fair value hierarchy. The following table presents information about the Company's financial instruments recorded at fair value on a recurring basis (in thousands):

	Fair Value Measurements at December 31, 2019								Fair Value Measurements at December 31, 2018
Description	Total Fair Value		Level 1(1)		Level 2(2)		Level 3(3)		Total Fair Value		Level 1(1)		Level 2(2)		Level 3(3)
Assets:
Derivative financial instruments(4)	$	39,994	$	—	$	39,994	$	—	$	65,297	$	—	$	65,297	$	—
Total Assets	$	39,994	$	—	$	39,994	$	—	$	65,297	$	—	$	65,297	$	—
Liabilities:
Derivative financial instruments(5)	$	257,728	$	—	$	257,728	$	—	$	201,812	$	—	$	201,812	$	—
Contingent consideration(6)	62,400		—		—		62,400		44,000		—		—		44,000
Total Liabilities	$	320,128	$	—	$	257,728	$	62,400	$	245,812	$	—	$	201,812	$	44,000

___________________________________________________________________

(1)Inputs based on quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access. Valuation of these items does not entail a significant amount of judgment.

(2)Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. For foreign currency forward contracts, interest rate swaps and fuel swaps, fair value is derived using valuation models that utilize the income valuation approach. These valuation models take into account the contract terms, such as maturity as well as other inputs, such as foreign exchange rates and curves, fuel types, fuel curves and interest rate yield curves. Derivative instrument fair values take into account the creditworthiness of the counterparty and the Company.

(3)Inputs that are unobservable.

(4)Consists of foreign currency forward contracts, interest rate swaps and fuel swaps. Refer to the "Fair Value of Derivative Instruments" table for breakdown by instrument type.

(5)Consists of foreign currency forward contracts, interest rate swaps and fuel swaps. Refer to the "Fair Value of Derivative Instruments" table for breakdown by instrument type.

(6)The contingent consideration related to the Silversea Cruises acquisition is estimated by applying a Monte-Carlo simulation method using our closing stock price along with significant inputs not observable in the market, including the probability of achieving the milestones and estimated future operating results. The Monte-Carlo simulation is a generally accepted statistical technique used to generate a defined number of valuation paths in order to develop a reasonable estimate of fair value. Refer to Note 3. Business Combination for further information on the Silversea Cruises acquisition. For the twelve months ended December 31, 2019, we recorded a contingent consideration expense of $18.4 million within Other (expense) income in our consolidated statements of comprehensive income (loss).

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 December 31, 2019 or

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2018, or that will be realized in the future, and do not include expenses that could be incurred in an actual sale or settlement.

We have master International Swaps and Derivatives Association (“ISDA”) agreements in place with our derivative instrument counterparties. These ISDA agreements generally provide for final close out netting with our counterparties for all positions in the case of default or termination of the ISDA agreement. We have determined that our ISDA agreements provide us with rights of setoff on the fair value of derivative instruments in a gain position and those in a loss position with the same counterparty. We have elected not to offset such derivative instrument fair values in our consolidated balance sheets.

See Credit Related Contingent Features for further discussion on contingent collateral requirements for our derivative instruments.

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

	Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements
	As of December 31, 2019								As of December 31, 2018
	Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheet		Gross Amount of Eligible Offsetting Recognized Derivative Liabilities		Cash Collateral Received		Net Amount of Derivative Assets		Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheet		Gross Amount of Eligible Offsetting Recognized Derivative Assets		Cash Collateral Received		Net Amount of Derivative Assets
Derivatives subject to master netting agreements	$	39,994	$	(39,994)	$	—	$	—	$	65,297	$	(60,303)	$	—	$	4,994
Total	$	39,994	$	(39,994)	$	—	$	—	$	65,297	$	(60,303)	$	—	$	4,994

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

	Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements
	As of December 31, 2019								As of December 31, 2018
	Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheet		Gross Amount of Eligible Offsetting Recognized Derivative Assets		Cash Collateral Pledged		Net Amount of Derivative Liabilities		Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheet		Gross Amount of Eligible Offsetting Recognized Derivative Liabilities		Cash Collateral Pledged		Net Amount of Derivative Liabilities
Derivatives subject to master netting agreements	$	(257,728)	$	39,994	$	—	$	(217,734)	$	(201,812)	$	60,303	$	—	$	(141,509)
Total	$	(257,728)	$	39,994	$	—	$	(217,734)	$	(201,812)	$	60,303	$	—	$	(141,509)

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.

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We enter into various forward, swap and option contracts to manage our interest rate exposure and to limit our exposure to fluctuations in foreign currency exchange rates and fuel prices. These instruments are recorded on the balance sheet at their fair value and the vast majority are designated as hedges. We also use non-derivative financial instruments designated as hedges of our net investment in our foreign operations and investments.

At inception of the hedge relationship, a derivative instrument that hedges the exposure to changes in the fair value of a firm commitment or a recognized asset or liability is designated as a fair value hedge. A derivative instrument that hedges a forecasted transaction or the variability of cash flows related to a recognized asset or liability is designated as a cash flow hedge.

Changes in the fair value of derivatives that are designated as fair value hedges are offset against changes in the fair value of the underlying hedged assets, liabilities or firm commitments. Gains and losses on derivatives that are designated as cash flow hedges are recorded as a component of Accumulated other comprehensive loss until the underlying hedged transactions are recognized in earnings. The foreign currency transaction gain or loss of our non-derivative financial instruments and the changes in the fair value of derivatives designated as hedges of our net investment in foreign operations and investments are recognized as a component of Accumulated other comprehensive loss along with the associated foreign currency translation adjustment of the foreign operation or investment, with the amortization of excluded components affecting earnings.

On an ongoing basis, we assess whether derivatives used in hedging transactions are "highly effective" in offsetting changes in the fair value or cash flow of hedged items. For our net investment hedges, we use the dollar offset method to measure effectiveness. For all other hedging programs, we use the long-haul method to assess hedge effectiveness using regression analysis for each hedge relationship. The methodology for assessing hedge effectiveness is applied on a consistent basis for each one of our hedging programs (i.e., interest rate, foreign currency ship construction, foreign currency net investment and fuel). For our regression analyses, we use an observation period of up to three years, utilizing market data relevant to the hedge horizon of each hedge relationship. High effectiveness is achieved when a statistically valid relationship reflects a high degree of offset and correlation between the changes in the fair values of the derivative instrument and the hedged item. If it is determined that a derivative is not highly effective as a hedge or hedge accounting is discontinued, any change in fair value of the derivative since the last date at which it was determined to be effective is recognized in earnings.

Cash flows from derivative instruments that are designated as fair value or cash flow hedges are classified in the same category as the cash flows from the underlying hedged items. In the event that hedge accounting is discontinued, cash flows subsequent to the date of discontinuance are classified within investing activities. Cash flows from derivative instruments not designated as hedging instruments are classified as investing activities.

We consider the classification of the underlying hedged item’s cash flows in determining the classification for the designated derivative instrument’s cash flows. We classify derivative instrument cash flows from hedges of benchmark interest rate or hedges of fuel expense as operating activities due to the nature of the hedged item. Likewise, we classify derivative instrument cash flows from hedges of foreign currency risk on our newbuild ship payments as investing activities.

Interest Rate Risk

Our exposure to market risk for changes in interest rates primarily relates to our debt obligations including future interest payments. At December 31, 2019 and 2018, approximately 62.1% and 59.1%, respectively, of our debt was effectively fixed. We use interest rate swap agreements to modify our exposure to interest rate movements and to manage our interest expense.

Market risk associated with our fixed rate debt is the potential increase in fair value resulting from a decrease in interest rates. We use interest rate swap agreements that effectively convert a portion of our fixed-rate debt to a floating-rate basis to manage this risk. At December 31, 2019 and 2018, we maintained interest rate swap agreements on the following fixed-rate debt instruments:

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Debt Instrument	Swap Notional as of December 31, 2019 (In thousands)		Maturity	Debt Fixed Rate	Swap Floating Rate: LIBOR plus	All-in Swap Floating Rate as of December 31, 2019
Oasis of the Seas term loan	$	70,000	October 2021	5.41%	3.87%	5.80%
Unsecured senior notes	650,000		November 2022	5.25%	3.63%	5.54%
	$	720,000

These interest rate swap agreements are accounted for as fair value hedges.

Market risk associated with our long-term floating rate debt is the potential increase in interest expense from an increase in interest rates. We use interest rate swap agreements that effectively convert a portion of our floating-rate debt to a fixed-rate basis to manage this risk. At December 31, 2019 and 2018, we maintained interest rate swap agreements on the following floating-rate debt instruments:

Debt Instrument	Swap Notional as of December 31, 2019 (In thousands)		Maturity	Debt Floating Rate		All-in Swap Fixed Rate
Celebrity Reflection term loan	$	272,708	October 2024	LIBOR plus	0.40%	2.85%
Quantum of the Seas term loan	428,750		October 2026	LIBOR plus	1.30%	3.74%
Anthem of the Seas term loan	453,125		April 2027	LIBOR plus	1.30%	3.86%
Ovation of the Seas term loan	587,917		April 2028	LIBOR plus	1.00%	3.16%
Harmony of the Seas term loan (1)	551,325		May 2028	EURIBOR plus	1.15%	2.26%
Odyssey of the Seas term loan(2)	460,000		October 2032	LIBOR plus	0.95%	3.20%
	$	2,753,825

___________________________________________________________________

(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 December 31, 2019.

(2) Interest rate swap agreements hedging the term loan for Odyssey of the Seas include LIBOR zero-floors matching the hedged debt LIBOR zero-floor. The anticipated unsecured term loan for the financing of Odyssey of the Seas is expected to be drawn in October 2020.

These interest rate swap agreements are accounted for as cash flow hedges.

The notional amount of interest rate swap agreements related to outstanding debt and our current unfunded financing arrangements as of December 31, 2019 and 2018 was $3.5 billion and $3.4 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 December 31, 2019, the aggregate cost of our ships on order, was $14.8 billion, of which we had deposited $881.5 million as of such date. These amounts do not include any ships placed on order that are contingent upon completion of conditions precedent and/or financing, any ships on order by our Partner Brands and any ships on order placed by Silversea Cruises during the reporting lag period. Refer to Note 19. Commitments and Contingencies, for further information on our ships on order. At December 31, 2019 and 2018, approximately 65.9% and 53.5%, 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

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currencies of our foreign subsidiaries. During the year ended December 31, 2019, we maintained an average of approximately $689.7 million of these foreign currency forward contracts. These instruments are not designated as hedging instruments. For the years ended December 31, 2019, 2018 and 2017, changes in the fair value of the foreign currency forward contracts resulted in gains (losses) of $1.4 million, $(62.4) million and $62.0 million, respectively, which offset gains (losses) arising from the remeasurement of monetary assets and liabilities denominated in foreign currencies in those same years of $0.4 million, $57.6 million and $(75.6) million, respectively. These amounts were recognized in earnings within Other income (expense) in our consolidated statements of comprehensive income (loss).

We consider our investments in our foreign operations to be denominated in relatively stable currencies and of a long-term nature. As of December 31, 2019, we maintained foreign currency forward contracts and designated them as hedges of a portion of our net investments primarily in TUI Cruises of €173.0 million, or approximately $194.2 million based on the exchange rate at December 31, 2019. These forward currency contracts mature in October 2021.

The notional amount of outstanding foreign exchange contracts, excluding the forward contracts entered into to minimize remeasurement volatility, as of December 31, 2019 and 2018 was $2.9 billion and $3.7 billion, respectively.

Non-Derivative Instruments

We also address the exposure of our investments in foreign operations by denominating a portion of our debt in our subsidiaries' and investments' functional currencies and designating it as a hedge of these subsidiaries and investments. We had designated debt as a hedge of our net investments primarily in TUI Cruises of €319.0 million, or approximately $358.1 million, as of December 31, 2019. As of December 31, 2018, we had designated debt as a hedge of our net investments primarily in TUI Cruises of €280.0 million, or approximately $320.2 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. At December 31, 2019, we have hedged the variability in future cash flows for certain forecasted fuel transactions occurring through 2023. As of December 31, 2019 and 2018, we had the following outstanding fuel swap agreements as hedges of our fuel exposure:

	Fuel Swap Agreements
	As of December 31, 2019	As of December 31, 2018
	(metric tons)
2019	—	856,800
2020	830,500	830,500
2021	488,900	488,900
2022	322,900	322,900
2023	82,400	—

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	Fuel Swap Agreements
	As of December 31, 2019		As of December 31, 2018
	(% hedged)
Projected fuel purchases for year:
2019	—		58	%
2020	54	%	54	%
2021	30	%	28	%
2022	19	%	19	%
2023	5	%	—

At December 31, 2019 there was no material estimated unrealized net loss associated with our cash flow hedges pertaining to fuel swap agreements to be reclassified to earnings from Accumulated other comprehensive loss within the next twelve months when compared to $26.8 million at December 31, 2018. Reclassification is expected to occur as the result of fuel consumption associated with our hedged forecasted fuel purchases.

The fair value and line item caption of derivative instruments recorded within our consolidated balance sheets were as follows (in thousands):

	Fair Value of Derivative Instruments
	Asset Derivatives					Liability Derivatives
	Balance Sheet Location	As of December 31, 2019		As of December 31, 2018		Balance Sheet Location	As of December 31, 2019		As of December 31, 2018
		Fair Value		Fair Value			Fair Value		Fair Value
Derivatives designated as hedging instruments under ASC 815-20(1)
Interest rate swaps	Other assets	$	11	$	23,518	Other long-term liabilities	$	64,168	$	40,467
Foreign currency forward contracts	Derivative financial instruments	—		4,044		Derivative financial instruments	75,260		39,665
Foreign currency forward contracts	Other assets	9,380		10,844		Other long-term liabilities	64,711		16,854
Fuel swaps	Derivative financial instruments	16,922		10,966		Derivative financial instruments	16,901		37,627
Fuel swaps	Other assets	8,677		9,204		Other long-term liabilities	33,965		65,182
Total derivatives designated as hedging instruments under ASC 815-20		34,990		58,576			255,005		199,795
Derivatives not designated as hedging instruments under ASC 815-20
Foreign currency forward contracts	Derivative financial Instruments	3,186		1,751		Derivative financial instruments	2,419		808
Foreign currency forward contracts	Other assets	—		1,579		Other long-term liabilities	—		833
Fuel swaps	Derivative financial instruments	1,643		2,804		Derivative financial instruments	295		376
Fuel swaps	Other assets	175		587		Other long-term liabilities	9		—
Total derivatives not designated as hedging instruments under ASC 815-20		5,004		6,721			2,723		2,017
Total derivatives		$	39,994	$	65,297		$	257,728	$	201,812

___________________________________________________________________

(1)Accounting Standard Codification 815-20 "Derivatives and Hedging."

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The location and amount of gain or (loss) recognized in income on fair value and cash flow hedging relationships were as follows (in thousands):

				Year Ended December 31, 2019								Year Ended December 31, 2018
				Fuel Expense		Depreciation and Amortization Expenses		Interest Income (Expense)		Other Income (Expense)		Fuel Expense		Depreciation and Amortization Expenses		Interest Income (Expense)		Other Income (Expense)
Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded				$697,962		$1,245,942		$(381,568)		$	(24,513)	$710,617		$1,033,697		$(300,872)		$	11,107
The effects of fair value and cash flow hedging:
	Gain or (loss) on fair value hedging relationships in Subtopic 815-20
		Interest contracts
			Hedged items	n/a		n/a		$	(23,464)	—		n/a		n/a		4,673		$	—
			Derivatives designated as hedging instruments	n/a		n/a		$	16,607	—		n/a		n/a		$	(8,854)	$	—
	Gain or (loss) on cash flow hedging relationships in Subtopic 815-20
		Interest contracts
			Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income	n/a		n/a		$	(4,289)	n/a		n/a		n/a		$	(10,931)	n/a
		Commodity contracts
			Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income	$	29,929	n/a		n/a		$	(1,292)	$	1,366	n/a		n/a		$	(1,580)
		Foreign exchange contracts
			Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income	n/a		$	(14,063)	n/a		$	(5,080)	n/a		$	(12,843)	n/a		$	12,855

				Year Ended December 31, 2017
				Fuel Expense		Depreciation and Amortization Expenses		Interest Income (Expense)		Other Income (Expense)
Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded				$	681,118	$	951,194	$	(269,881)	$	(5,289)
The effects of fair value and cash flow hedging:
	Gain or (loss) on fair value hedging relationships in Subtopic 815-20
		Interest contracts
			Hedged items	n/a		n/a		$	—	$	6,065
			Derivatives designated as hedging instruments	n/a		n/a		$	3,007	$	(3,139)
	Gain or (loss) on cash flow hedging relationships in Subtopic 815-20
		Interest contracts
			Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income	n/a		n/a		$	(31,603)	n/a
		Commodity contracts
			Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income	$	(141,689)	n/a		n/a		$	7,382
		Foreign exchange contracts
			Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income	n/a		$	(13,248)	n/a		$	(9,472)

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The carrying value and line item caption of non-derivative instruments designated as hedging instruments recorded within our consolidated balance sheets were as follows (in thousands):

		Carrying Value
Non-derivative instrument designated as hedging instrument under ASC 815-20	Balance Sheet Location	As of December 31, 2019		As of December 31, 2018
Foreign currency debt	Current portion of long-term debt	$	73,572	$	38,168
Foreign currency debt	Long-term debt	284,506		281,984
		$	358,078	$	320,152

The effect of derivative instruments qualifying and designated as hedging instruments and the related hedged items in fair value hedges on the consolidated statements of comprehensive income (loss) was as follows (in thousands):

	Location of Gain (Loss) Recognized in Income on Derivative and Hedged Item	Amount of Gain (Loss) Recognized in Income on Derivative						Amount of Gain (Loss) Recognized in Income on Hedged Item
Derivatives and related Hedged Items under ASC 815-20 Fair Value Hedging Relationships		Year Ended December 31, 2019		Year Ended December 31, 2018		Year Ended December 31, 2017		Year Ended December 31, 2019		Year Ended December 31, 2018		Year Ended December 31, 2017
Interest rate swaps	Interest expense (income), net of interest capitalized	$	16,607	$	(8,854)	$	3,007	$	(23,464)	$	4,673	$	—
Interest rate swaps	Other income (expense)	—		—		(3,139)		—		—		6,065
		$	16,607	$	(8,854)	$	(132)	$	(23,464)	$	4,673	$	6,065

The fair value and line item caption of derivative instruments recorded within our consolidated balance sheets for the cumulative basis adjustment for fair value hedges were as follows (in thousands):

Line Item in the Statement of Financial Position Where the Hedged Item is Included	Carrying Amount of the Hedged Liabilities				Cumulative amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liabilities
	As of December 31, 2019		As of December 31, 2018		As of December 31, 2019		As of December 31, 2018
Current portion of long-term debt and Long-term debt	$	715,234	$	725,486	$	(1,301)	$	(24,766)
	$	715,234	$	725,486	$	(1,301)	$	(24,766)

The effect of derivative instruments qualifying and designated as cash flow hedging instruments on the consolidated financial statements was as follows (in thousands):

	Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivative						Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income	Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
Derivatives under ASC 815-20 Cash Flow Hedging Relationships	Year Ended December 31, 2019		Year Ended December 31, 2018		Year Ended December 31, 2017			Year Ended December 31, 2019		Year Ended December 31, 2018		Year Ended December 31, 2017
Interest rate swaps	$	(72,732)	$	18,578	$	(13,312)	Interest expense	$	(4,289)	$	(10,931)	$	(31,603)
Foreign currency forward contracts	(148,881)		(222,645)		276,573		Depreciation and amortization expenses	(14,063)		(12,843)		(10,840)
Foreign currency forward contracts	—		—		—		Other income (expense)	(5,080)		12,855		(9,472)
Foreign currency forward contracts	—		—		—		Other indirect operating expenses	—		—		—
Foreign currency collar options	—		—		—		Depreciation and amortization expenses	—		—		(2,408)
Fuel swaps	—		—		—		Other income (expense)	(1,292)		(1,580)		7,382
Fuel swaps	75,505		(93,927)		118,604		Fuel	29,929		1,366		(141,689)
	$	(146,108)	$	(297,994)	$	381,865		$	5,205	$	(11,133)	$	(188,630)

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The table below represents amounts excluded from the assessment of effectiveness for our net investment hedging instruments for which the difference between changes in fair value and periodic amortization is recorded in accumulated other comprehensive income (loss) (in thousands):

Gain (Loss) Recognized in Income (Net Investment Excluded Components)	Year Ended December 31, 2019
Net inception fair value at January 1, 2019	$	(8,359)
Amount of gain recognized in income on derivatives for the year ended December 31, 2019	4,024
Amount of loss remaining to be amortized in accumulated other comprehensive loss as of December 31, 2019	(3,673)
Fair value at December 31, 2019	$	(8,008)

The effect of non-derivative instruments qualifying and designated as net investment hedging instruments on the consolidated financial statements was as follows (in thousands):

	Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss)
Non-derivative instruments under ASC 815-20 Net Investment Hedging Relationships	Year Ended December 31, 2019		Year Ended December 31, 2018		Year Ended December 31, 2017
Foreign Currency Debt	$	6,111	$	13,210	$	(38,971)
	$	6,111	$	13,210	$	(38,971)

The effect of derivatives not designated as hedging instruments on the consolidated financial statements was as follows (in thousands):

		Amount of Gain (Loss) Recognized in Income on Derivative
Derivatives Not Designated as Hedging Instruments under ASC 815-20	Location of Gain (Loss) Recognized in Income on Derivative	Year Ended December 31, 2019		Year Ended December 31, 2018		Year Ended December 31, 2017
Foreign currency forward contracts	Other income (expense)	$	1,356	$	(62,423)	$	61,952
Fuel swaps	Fuel	(37)		1,161		—
Fuel swaps	Other income (expense)	112		114		(1,133)
		$	1,431	$	(61,148)	$	60,819

Credit Related Contingent Features

Our current interest rate derivative instruments may require us to post collateral if our Standard & Poor's and Moody's credit ratings are below specified levels. Generally, 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 were to be rated below BBB- by Standard & Poor's and Baa3 by Moody's, then the counterparty may periodically 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 following such event 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. At December 31, 2019, five of our interest rate derivative instruments had reached their fifth anniversary; however, our senior unsecured debt credit rating was Baa2 by Moody's and BBB- by Standard & Poor's and, accordingly, we were not required to post any collateral as of such date.

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Note 19. Commitments and Contingencies

Ship Purchase Obligations

Our future capital commitments consist primarily of new ship orders. As of December 31, 2019, we had one Quantum-class ship, two Oasis-class ships and three ships of a new generation, known as our Icon-class, on order for our Royal Caribbean International brand with an aggregate capacity of approximately 32,400 berths. As of December 31, 2019, we had three Edge-class ships on order for our Celebrity brand with an aggregate capacity of approximately 9,400 berths. Additionally as of December 31, 2019, we had five ships on order with an aggregate capacity of approximately 2,400 berths for our Silversea Cruises brand. The following provides further information on recent developments with respect to our ship orders.

During 2017, we entered into credit agreements for the unsecured financing of the two Icon-class ships for up to 80% of each ship’s contract price. For each ship, the official Finnish export credit agency, Finnvera plc, has agreed to guarantee 100% of a substantial majority of the financing to the lenders, with a smaller portion of the financing to be 95% guaranteed by Euler Hermes, the official German export credit agency. The maximum loan amount under each facility is not to exceed €1.4 billion, or approximately $1.6 billion, based on the exchange rate at December 31, 2019. Interest on approximately 75% of each loan will accrue at a fixed rate of 3.56% and 3.76% for the first and the second Icon-class ships, respectively, and the balance will accrue interest at a floating rate ranging from LIBOR plus 1.10% to 1.15% and LIBOR plus 1.15% to 1.20% for the first and the second Icon-class ships, respectively. Each loan will amortize semi-annually and will mature 12 years following delivery of each ship. The first and second Icon-class ships will each have a capacity of approximately 5,600 berths and are expected to enter service in the second quarters of 2022 and 2024, respectively.

During 2017, we entered into credit agreements for the unsecured financing of the third and fourth Edge-class ships and the fifth Oasis-class ship for up to 80% of each ship’s contract price through facilities to be guaranteed 100% by Bpifrance Assurance Export, the official export credit agency of France. Under these financing arrangements, we have the right, but not the obligation, to satisfy the obligations to be incurred upon delivery and acceptance of each ship under the shipbuilding contract by assuming, at delivery and acceptance, the debt indirectly incurred by the shipbuilder during the construction of each ship. The maximum loan amount under each facility is not to exceed €684.2 million in the case of the third Edge-class ship and the United States dollar equivalent of €714.6 million and €1.1 billion in the case of the fourth Edge-class ship and fifth Oasis-class ship, or approximately $802.1 million and $1.2 billion, respectively, based on the exchange rate at December 31, 2019. The loans will amortize semi-annually and will mature 12 years following delivery of each ship. Interest on the loans will accrue at a fixed rate of 1.28% for the third Edge-class ship and at a fixed rate of 3.18% for both, the fourth Edge-class ship and the fifth Oasis-class ship. The third and fourth Edge-class ships, each of which will have a capacity of approximately 3,250, are expected to enter service in the fourth quarters of 2021 and 2022, respectively. The fifth Oasis-class ship will have a capacity of approximately 5,700 berths and is expected to enter service in the second quarter of 2021.

During 2016, we entered into credit agreements for the unsecured financing of our first two Edge-class ships for up to 80% of each ship’s contract price through facilities to be guaranteed 100% by Bpifrance Assurance Export, the official export credit agency of France. Celebrity Edge, the first Edge-class ship for our Celebrity Cruises brand, entered service in December 2018. For further information on the financing agreement for this ship, refer to Note 9. Debt. The second Edge-class ship will have a capacity of approximately 2,900 berths and is expected to enter service in the first quarter of 2020. Under the financing arrangement for the second Edge-class ship, we have the right, but not the obligation, to satisfy the obligations to be incurred upon delivery and acceptance of the vessel under the shipbuilding contract by assuming, at delivery and acceptance, the debt indirectly incurred by the shipbuilder during the construction of the ship. The maximum loan amount under the facility for the second Edge-class ship delivery is not to exceed the United States dollar equivalent of €627.1 million, or approximately $704.0 million, respectively, based on the exchange rate at December 31, 2019. The loan will amortize semi-annually and will mature 12 years following delivery of the ship. Interest on the loan will accrue at a fixed rate of 3.23%.

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During 2015, we entered into a credit agreement for the unsecured financing of the fifth Quantum-class ship for up to 80% of the ship’s contract price, through a facility to be guaranteed 95% by Euler Hermes, official export credit agency of Germany. Hermes has agreed to guarantee to the lender payment of 95% of the financing. The ship will have a capacity of approximately 4,200 berths and is expected to enter service in the fourth quarter of 2020. This credit agreement makes available to us an unsecured term loan in an amount up to the United States dollar equivalent of €777.5 million, or approximately $872.7 million, based on the exchange rate at December 31, 2019. The loan will amortize semi-annually and will mature 12 years following delivery of the ship. At our election, prior to delivery of the ship, interest on the loans will accrue either (1) at a fixed rate of 3.45% (inclusive of the applicable margin) or (2) at a floating rate equal to LIBOR plus 0.95%.

Our future capital commitments consist primarily of new ship orders. As of December 31, 2019, our Global Brands have the following ships on order:

Ship	Shipyard	Expected to Enter Service	Approximate Berths
Royal Caribbean International —
Oasis-class:
Wonder of the Seas	Chantiers de l’Atlantique	2nd Quarter 2021	5,700
Unnamed	Chantiers de l’Atlantique	4th Quarter 2023	5,700
Quantum-class:
Odyssey of the Seas	Meyer Werft	4th Quarter 2020	4,200
Icon-class:
Unnamed	Meyer Turku Oy	2nd Quarter 2022	5,600
Unnamed	Meyer Turku Oy	2nd Quarter 2024	5,600
Unnamed	Meyer Turku Oy	2nd Quarter 2025	5,600
Celebrity Cruises —
Edge-class:
Celebrity Apex	Chantiers de l’Atlantique	2nd Quarter 2020	2,900
Celebrity Beyond	Chantiers de l’Atlantique	4th Quarter 2021	3,250
Unnamed	Chantiers de l’Atlantique	4th Quarter 2022	3,250
Silversea Cruises — (1)
Silver Origin	De Hoop	3rd Quarter 2020	100
Muse-class:
Silver Moon	Fincantieri	3rd Quarter 2020	550
Silver Dawn	Fincantieri	3rd Quarter 2021	550
Evolution-class:
Unnamed	Meyer Werft	1st Quarter 2022	600
Unnamed	Meyer Werft	1st Quarter 2023	600
TUI Cruises (50% joint venture) —
Mein Schiff 7	Meyer Turku Oy	2nd Quarter 2023	2,900
Unnamed	Fincantieri	3rd Quarter 2024	4,100
Unnamed	Fincantieri	1st Quarter 2026	4,100
Total Berths			55,300

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(1) The revenue impact from Silversea Cruises' new ships will be recognized on a three month reporting lag from the "Expected to Enter Service" dates above. Refer to Note 1. General to our consolidated financial statements under Item 8. Financial Statements and Supplementary Data for further information.

In June 2019, Silversea Cruises entered into a $300 million unsecured term loan facility for the financing of Silver Moon to pay a portion of the ship's contract price through a facility guaranteed by us. We expect to draw upon this loan when we take delivery of the ship. The loan will be due and payable at maturity in June 2028. Interest on the loan will accrue at LIBOR plus 1.50%.

In September 2019, Silversea Cruises entered into two credit agreements, guaranteed by us, for the unsecured financing of the first and second Evolution-class ships for an amount of up to 80% of each ship's contract price through facilities to be guaranteed 95% by Euler Hermes, the official export credit agency of Germany. The maximum loan amount under each facility is not to exceed the United States dollar equivalent of €351.6 million in the case of the first Evolution-class ship and €359.0 million in the case of the second Evolution-class ship, or approximately $394.7 million and $403.0 million, respectively, based on the exchange rate at December 31, 2019. Each loan, once funded, will amortize semi-annually and will mature 12 years following the delivery of each ship.  At our election, interest on each loan will accrue either (1) at a fixed rate of 4.14% and 4.18%, respectively (inclusive of the applicable margin) or (2) at a floating rate equal to LIBOR plus 0.79% and 0.83%, respectively. The first and second Evolution-class ships will each have a capacity of approximately 600 berths and are scheduled for delivery in the first quarters of 2022 and 2023, respectively.

In December 2019, we entered into a credit agreement for the unsecured financing of the sixth Oasis-class ship for up to 80% of the ship’s contract price through a facility to be guaranteed 100% by Bpifrance Assurance Export, the official export credit agency of France. Under the financing arrangement, we have the right, but not the obligation, to satisfy the obligations to be incurred upon delivery and acceptance of the ship under the shipbuilding contract by assuming, at delivery and acceptance, the debt indirectly incurred by the shipbuilder during the construction of the ship. The maximum loan amount under the facility is not to exceed the United States dollar equivalent of €1.3 billion, or approximately $1.5 billion based on the exchange rate at December 31, 2019. The loan will amortize semi-annually and will mature 12 years following delivery of the ship. Interest on the loan will accrue at a fixed rate of 3.00% (inclusive of margin). The sixth Oasis-class ship will have a capacity of approximately 5,700 berths and is scheduled for delivery in the fall of 2023.

In December 2019, we entered into a credit agreement for the unsecured financing of the third Icon-class ship for up to 80% of the ship’s contract price. Finnvera plc, the official export credit agency of Finland, has agreed to guarantee 95% of the substantial majority of the financing, with a smaller portion of the financing to be 95% guaranteed by Euler Hermes, the official German export credit agency. The maximum loan amount under the facility is not to exceed the United States dollar equivalent of €1.4 billion, or approximately $1.6 billion based on the exchange rate at December 31, 2019. The loan, once funded, will amortize semi-annually and will mature 12 years following the delivery of the ship. Approximately 60% of the loan will accrue interest at a fixed rate of 3.29%. The balance of the loan will accrue interest at a floating rate of LIBOR plus 0.85%. The third Icon-class ship will have a capacity of approximately 5,600 berths and is scheduled for delivery in the second quarter of 2025.

As of December 31, 2019, the aggregate cost of our ships on order, not including any ships on order by our Partner Brands and the Silversea Cruises ships that remain contingent upon final documentation and financing, was approximately $14.8 billion, of which we had deposited $881.5 million as of such date. Approximately 65.9% of the aggregate cost was exposed to fluctuations in the Euro exchange rate at December 31, 2019. Refer to Note 18. Fair Value Measurements and Derivative Instruments for further information.

In addition, as of December 31, 2019, we have an agreement in place with Chantiers de l’Atlantique to build an additional Edge-class ship for delivery in the 4th quarter of 2024, which is contingent upon completion of conditions precedent and financing.

Litigation

On August 27, 2019, two lawsuits were filed against Royal Caribbean Cruises Ltd. in the U.S. District Court for the Southern District of Florida under Title III of the Cuban Liberty and Democratic Solidarity Act, also known

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as the Helms-Burton Act. The complaint filed by Havana Docks Corporation alleges it holds an interest in the Havana Cruise Port Terminal and the complaint filed by Javier Garcia-Bengochea alleges that he holds an interest in the Port of Santiago, Cuba, both of which were expropriated by the Cuban Government. The complaints further allege that Royal Caribbean Cruises Ltd. trafficked in those properties by embarking and disembarking passengers at these facilities. The plaintiffs seek all available statutory remedies, including the value of the expropriated property, plus interest, treble damages, attorneys’ fees and costs. Royal Caribbean Cruises Ltd. filed its answer to each complaint on October 4, 2019. We believe we have meritorious defenses to the claims, and we intend to vigorously defend ourselves against them. We believe that it is unlikely that the outcome of these matters will have a material adverse impact to our financial condition, results of operations or cash flows. However, the outcome of litigation is inherently unpredictable and subject to significant uncertainties, and there can be no assurances that the final outcome of this case will not be material.

We are routinely involved in other claims typical within the travel and tourism 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.

At December 31, 2019, we have future commitments to pay for our usage of certain port facilities, marine consumables, services and maintenance contracts as follows (in thousands):

Year
2020	$	202,879
2021	137,840
2022	57,096
2023	14,596
2024	8,760
Thereafter	34,233
	$	455,404

Note 20. Restructuring Charges

For the year ended December 31, 2019, we incurred restructuring charges of $12.0 million in connection with our international sales and marketing strategy. For the year ended December 31, 2018 and 2017, we did not incur restructuring charges.

Centralization of Global Sales and Marketing Structure

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During the year ended December 31, 2019, we implemented a strategy related to the restructuring and centralization of our international sales and marketing structure. Activities related to this strategy focused on moving from a multi-brand sales model to a brand dedicated sales model, which resulted in the consolidation of some of our international offices and personnel reorganization among our sales and marketing teams. The personnel reorganization resulted in the recognition of a liability for one-time termination benefits during the twelve months ended December 31, 2019. We also incurred contract termination costs related to the closure of some of our international offices and other related costs consisting of legal and consulting fees to implement this initiative. As a result of these actions, we incurred restructuring exit costs of $12.0 million for the year ended December 31, 2019, which were reported within Marketing, selling and administrative expenses in our consolidated statements of comprehensive income (loss). In 2020, we expect to incur additional immaterial costs as it relates to the restructuring activities of this strategy.

The following table summarizes our restructuring exit costs (in thousands):

	Beginning Balance January 1, 2019	Accruals		Payments		Ending Balance December 31, 2019		Cumulative Charges Incurred
Termination benefits	—	$	8,880	$	491	$	8,389	$	8,880
Contract termination costs	—	338		—		338		338
Other related costs	—	2,808		23		2,785		2,808
Total	—	$	12,026	$	514	$	11,512	$	12,026

Note 21. Quarterly Selected Financial Data (Unaudited)

	(In thousands, except per share data)
	First Quarter				Second Quarter				Third Quarter				Fourth Quarter
	2019		2018		2019		2018		2019		2018		2019		2018
Total revenues(1)	$	2,439,767	$	2,027,756	$	2,806,631	$	2,337,605	$	3,186,850	$	2,796,187	$	2,517,413	$	2,332,301
Operating income	$	318,831	$	274,146	$	573,653	$	456,895	$	890,792	$	799,733	$	299,425	$	364,027
Net Income attributable to Royal Caribbean Cruises Ltd.	$	249,681	$	218,653	$	472,830	$	466,295	$	883,240	$	810,391	$	273,136	$	315,703
Earnings per share
Basic	$	1.19	$	1.03	$	2.26	$	2.20	$	4.21	$	3.88	$	1.31	$	1.51
Diluted	$	1.19	$	1.02	$	2.25	$	2.19	$	4.20	$	3.86	$	1.30	$	1.50
Dividends declared per share	$	0.70	$	0.60	$	0.70	$	0.60	$	0.78	$	0.70	$	0.78	$	0.70

___________________________________________________________________

(1)Our revenues are seasonal based on the demand for cruises. Demand is strongest for cruises during the Northern Hemisphere's summer months and holidays.

F-54

Table of Contents

ROYAL CARIBBEAN CRUISES LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 22. Events Subsequent to Original Issuance of Financial Statements

In March 2020, we increased the capacity of our $1.7 billion and $1.2 billion unsecured revolving credit facilities due in 2024 and 2022, by $200 million and $400 million, respectively, utilizing their accordion feature. As of March 31, 2020, our aggregate revolving borrowing capacity was $3.5 billion and was fully drawn upon.

In March 2020, we borrowed $2.2 billion pursuant to a 364-day senior secured term loan agreement. The loan matures 364 days after funding and payment may be extended at our option for an additional 364 days subject to customary conditions, including the payment of a 1.00% extension fee. Our obligation under the loan is guaranteed by our wholly-owned subsidiaries, Celebrity Cruises Holdings Inc., Celebrity Cruises Inc. and certain of our wholly-owned vessel-owning subsidiaries, and is secured by our trademarks and a pledge of 100% of the equity interests of certain of our vessel-owning subsidiaries. Interest accrues at LIBOR plus a margin of 2.25% which increases to 2.50% and 2.75%, 180 days and 365 days, respectively, after funding. We will also be required to pay a duration fee in an amount equal to 0.25% of the aggregate loan principal amount every 60 days. Two of our board members each participated by loaning the Company $100 million as part of our 364-day $2.2 billion senior secured term loan agreement. In May 2020, this secured term loan was increased by an additional $150 million through an accordion feature.

In March 2020, we took delivery of Celebrity Apex. To finance the purchase, we borrowed $722.2 million under a previously committed unsecured term loan which is 100% guaranteed by Bpifrance Assurance Export, the official export credit agency of France. The loan amortizes semi-annually over 12 years and bears interest at a fixed rate of 3.23% per annum.

Through May 12, 2020, we amended certain export-credit backed ship debt facilities to benefit from a 12-month debt amortization and financial covenant holiday ("Debt Holiday"). Under the Debt Holiday, deferred debt amortization of approximately $0.8 billion will be paid over a period of four years after the 12-month deferral period. The Debt Holiday was offered by certain export credit agencies as a result of the current impact to cruise-line borrowers as a result of COVID-19.

Certain of our debt agreements contain covenants that, among other things, require us to maintain a minimum level of shareholder's equity and certain ratios. We were in compliance with our covenants as of March 31, 2020. However, we amended these debt agreements to waive the quarterly testing of our financing covenants for the next four calendar quarters to avoid non-compliance. In addition to the above, as of March 23, 2020, we were not in compliance with one covenant in our Port of Miami Terminal "A" operating lease agreement which we subsequently obtained a waiver for and amended our agreement with the lessor to increase the lien basket in line with our debt facilities.

As part of obtaining these debt compliance waivers, we are now required to maintain a minimum of $300 million in cash and cash equivalents tested on a monthly basis through March 31, 2021, and we are not permitted during the covenant waiver period, subject to limited exceptions, to pay cash dividends or make share repurchases unless we would have been compliant with our fixed charge coverage ratio at such time. In addition, the lenders under such unsecured bank facilities required a number of structural enhancements to such facilities. Under certain of our agreements, the contractual interest rate, facility fee and/or export credit agency fee vary with our debt rating. On March 31, 2020, Moody's downgraded us from Baa2 to Baa3 and on April 2, 2020, Standard & Poor's downgraded us from BBB- to BB. Based on the projected fair value of certain derivative instruments in net liability positions as of the date of this filing, in the event of a downgrade below Baa3 by Moody’s on or prior to September 23, 2020, we will be required to post collateral of approximately $80.4 million.

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Debt (Debt Maturities) (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Debt Disclosure [Abstract]
2020	$ 2,620,766
2021	843,906
2022	2,479,303
2023	763,382
2024	723,697
Thereafter	3,603,822
Long term debt obligations	$ 11,034,876

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Fair Value Measurements and Derivative Instruments (Long-term debt) (Details) - Designated as Hedging Instrument - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Amount of the Hedged Liabilities	$ 715,234	$ 725,486
Cumulative amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liabilities	$ (1,301)	$ (24,766)

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Commitment and Contingencies (Future Non-Cancelable Purchase Commitments) (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2020	$ 202,879
2021	137,840
2022	57,096
2023	14,596
2024	8,760
Thereafter	34,233
Future noncancelable purchase commitments, Total	$ 455,404

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Property and Equipment (Narrative) (Details) $ in Thousands, € in Millions	12 Months Ended
	Dec. 31, 2019 USD ($) ship	Dec. 31, 2019 EUR (€)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($) aircraft loan	Dec. 31, 2019 EUR (€) ship	Jul. 31, 2018 ship	Dec. 31, 2017 EUR (€)
Property and Equipment
Capitalized interest cost | $	$ 56,500		$ 49,600	$ 24,200
Number of ships in operation	61				61
Principal and Interest payments received | $	$ 32,870		124,238	62,303
Gain on sale of equipment | $	$ 0		$ 0	30,902
Maritime Equipment
Property and Equipment
Number of ships under finance leases	2				2
Gain on sale of equipment | $				$ 30,900
Wamos Air, S.A.
Property and Equipment
Number of aircraft sold | aircraft				3
Percentage of ownership stake sold				6.00%
Number of loans extended | loan				2
Notes receivable obtained from divestiture | €							€ 17.3
Silversea Cruises
Property and Equipment
Number of ships in operation	8				8
Wamos Air, S.A.
Property and Equipment
Ownership percentage	13.00%				13.00%
Principal and Interest payments received | €		€ 5.4
Receivable, related party	$ 11,100				€ 9.9
Maximum | Wamos Air, S.A.
Property and Equipment
Long term debt, stated interest rate (as a percent)	5.25%				5.25%
Silversea Cruises
Property and Equipment
Number of ships acquired						9
Number of ships under finance leases	2				2
Number of ships under operating leases	1				1

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Fair Value Measurements and Derivative Instruments (Offsetting of Derivative Instruments) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Offsetting of Financial Assets under Master Netting Agreements [Abstract]
Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheet	$ 39,994	$ 65,297
Gross Amount of Eligible Offsetting Recognized Derivative Liabilities	(39,994)	(60,303)
Cash Collateral Received	0	0
Net Amount of Derivative Assets	0	4,994
Offsetting of Financial Liabilities under Master Netting Agreements [Abstract]
Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheet	(257,728)	(201,812)
Gross Amount of Eligible Offsetting Recognized Derivative Assets	39,994	60,303
Cash Collateral Pledged	0	0
Net Amount of Derivative Liabilities	$ (217,734)	$ (141,509)

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Fair Value Measurements and Derivative Instruments (Fuel Price Risk) (Details) - Fuel Price Risk $ in Millions	Dec. 31, 2019 USD ($) T	Dec. 31, 2018 USD ($) T
Derivative instruments disclosure
Estimated unrealized net losses associated with cash flow hedges pertaining to fuel swap agreements expected to be reclassified to earnings from other accumulated comprehensive income (loss) | $	$ 0.0	$ 26.8
2019
Derivative instruments disclosure
Fuel Swap Agreements (metric tons)	0	856,800,000
Percentage of projected requirements	0.00%	58.00%
2020
Derivative instruments disclosure
Fuel Swap Agreements (metric tons)	830,500,000	830,500,000
Percentage of projected requirements	54.00%	54.00%
2021
Derivative instruments disclosure
Fuel Swap Agreements (metric tons)	488,900,000	488,900,000
Percentage of projected requirements	30.00%	28.00%
2022
Derivative instruments disclosure
Fuel Swap Agreements (metric tons)	322,900,000	322,900,000
Percentage of projected requirements	19.00%	19.00%
2023
Derivative instruments disclosure
Fuel Swap Agreements (metric tons)	82,400,000	0
Percentage of projected requirements	5.00%	0.00%

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Other Assets (Related party transactions) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Other Assets [Abstract]
Revenues	$ 47,242	$ 54,705	$ 53,532
Expenses	$ 4,304	$ 11,531	$ 15,176

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Fair Value Measurements and Derivative Instruments (Derivatives Not Designated as Hedging Instruments) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Derivative instruments disclosure
Amount of Gain (Loss) Recognized in Income on Derivative	$ 1,431	$ (61,148)	$ 61,704
Foreign exchange contracts | Other income (expense)
Derivative instruments disclosure
Amount of Gain (Loss) Recognized in Income on Derivative	1,356	(62,423)	61,952
Fuel contracts | Other income (expense)
Derivative instruments disclosure
Amount of Gain (Loss) Recognized in Income on Derivative	112	114	(1,133)
Fuel contracts | Fuel
Derivative instruments disclosure
Amount of Gain (Loss) Recognized in Income on Derivative	$ (37)	$ 1,161	$ 0

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Restructuring Charges (Tables)

12 Months Ended

Dec. 31, 2019

Restructuring and Related Activities [Abstract]

Schedule of Restructuring Charges

The following table summarizes our restructuring exit costs (in thousands):

	Beginning Balance January 1, 2019	Accruals		Payments		Ending Balance December 31, 2019		Cumulative Charges Incurred
Termination benefits	—	$	8,880	$	491	$	8,389	$	8,880
Contract termination costs	—	338		—		338		338
Other related costs	—	2,808		23		2,785		2,808
Total	—	$	12,026	$	514	$	11,512	$	12,026

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Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2019

Earnings Per Share [Abstract]

Reconciliation Between Basic and Diluted Earnings Per Share

A reconciliation between basic and diluted earnings per share is as follows (in thousands, except per share data):

	Year Ended December 31,
	2019		2018		2017
Net Income attributable to Royal Caribbean Cruises Ltd. for basic and diluted earnings per share	$	1,878,887	$	1,811,042	$	1,625,133
Weighted-average common shares outstanding	209,405		210,570		214,617
Dilutive effect of stock-based awards	525		984		1,077
Diluted weighted-average shares outstanding	209,930		211,554		215,694
Basic earnings per share	$	8.97	$	8.60	$	7.57
Diluted earnings per share	$	8.95	$	8.56	$	7.53

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CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Current assets
Cash and cash equivalents	$ 243,738	$ 287,852
Trade and other receivables, net	305,821	324,507
Inventories	162,107	153,573
Prepaid expenses and other assets	429,211	456,547
Derivative financial instruments	21,751	19,565
Total current assets	1,162,628	1,242,044
Property and equipment, net	25,466,808	23,466,163
Operating lease right-of-use assets	687,555
Goodwill	1,385,644	1,378,353
Other assets	1,617,649	1,611,710
Total assets	30,320,284	27,698,270
Current liabilities
Current portion of long-term debt	1,186,586	1,646,841
Commercial paper	1,434,180	775,488
Current portion of operating lease liabilities	96,976
Accounts payable	563,706	488,212
Accrued interest	70,090	74,550
Accrued expenses and other liabilities	1,078,345	899,761
Derivative financial instruments	94,875	78,476
Customer deposits	3,428,138	3,148,837
Total current liabilities	7,952,896	7,112,165
Long-term debt	8,414,110	8,355,370
Long-term operating lease liabilities	601,641
Other long-term liabilities	617,810	583,254
Total liabilities	17,586,457	16,050,789
Commitments and contingencies (Note 19)
Redeemable noncontrolling interest	569,981	542,020
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; 236,547,842 and 235,847,683 shares issued, December 31, 2019 and December 31, 2018, respectively)	2,365	2,358
Paid-in capital	3,493,959	3,420,900
Retained earnings	11,523,326	10,263,282
Accumulated other comprehensive loss	(797,713)	(627,734)
Treasury stock (27,746,848 and 26,830,765 common shares at cost, December 31, 2019 and December 31, 2018, respectively)	(2,058,091)	(1,953,345)
Total shareholders' equity	12,163,846	11,105,461
Total liabilities, redeemable noncontrolling interest and shareholders’ equity	$ 30,320,284	$ 27,698,270

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Income Taxes

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

We are subject to corporate income taxes in countries where we have operations or subsidiaries. We and the majority of our ship-operating and vessel-owning subsidiaries are currently exempt from U.S. corporate income tax on U.S. source income from the international operation of ships pursuant to Section 883 of the Internal Revenue Code. Regulations under Section 883 have limited the activities that are considered the international operation of a ship or incidental thereto. Accordingly, our provision for U.S. federal and state income taxes includes taxes on certain activities not considered incidental to the international operation of our ships.

Additionally, one of our ship-operating subsidiaries is subject to tax under the tonnage tax regime of the United Kingdom. Under this regime, income from qualifying activities is subject to corporate income tax, but the tax is computed by reference to the tonnage of the ship or ships registered under the relevant provisions of the tax regimes (the "relevant shipping profits"), which replaces the regular taxable income base. Income from activities not considered qualifying activities, which we do not consider significant, remains subject to United-Kingdom corporate income tax.

Income tax expense for items not qualifying under Section 883, tonnage tax and income taxes for the remainder of our subsidiaries was approximately $32.6 million, $20.9 million and $18.3 million for the years ended December 31, 2019, 2018 and 2017, respectively, and was recorded within Other income (expense). In addition, all interest expense and penalties related to income tax liabilities are classified as income tax expense within Other income (expense).

For a majority of our subsidiaries, we do not expect to incur income taxes on future distributions of undistributed earnings. Accordingly, no deferred income taxes have been provided for the distribution of these earnings. Where we do expect to incur income taxes on future distributions of undistributed earnings, we have provided for deferred taxes, which we do not consider significant to our operations.

As of December 31, 2019, the Company had deferred tax assets, for foreign net operating losses (“NOLs”) of $25.1 million. We have provided a full valuation allowance for these NOLs. $17.6 million of the NOLs are subject to expire between 2020 and 2025.

Our deferred tax assets and deferred tax liabilities and corresponding valuation allowances related to our operations were not material as of December 31, 2019 and 2018.

We regularly review deferred tax assets for recoverability based on our history of earnings, expectations of future earnings, and tax planning strategies. Realization of deferred tax assets ultimately depends on the existence of sufficient taxable income to support the amount of deferred taxes. A valuation allowance is recorded in those circumstances in which we conclude it is not more-likely-than-not we will recover the deferred tax assets prior to their expiration.

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Restructuring Charges

12 Months Ended

Dec. 31, 2019

Restructuring and Related Activities [Abstract]

Restructuring Charges

Restructuring Charges

For the year ended December 31, 2019, we incurred restructuring charges of $12.0 million in connection with our international sales and marketing strategy. For the year ended December 31, 2018 and 2017, we did not incur restructuring charges.

Centralization of Global Sales and Marketing Structure

During the year ended December 31, 2019, we implemented a strategy related to the restructuring and centralization of our international sales and marketing structure. Activities related to this strategy focused on moving from a multi-brand sales model to a brand dedicated sales model, which resulted in the consolidation of some of our international offices and personnel reorganization among our sales and marketing teams. The personnel reorganization resulted in the recognition of a liability for one-time termination benefits during the twelve months ended December 31, 2019. We also incurred contract termination costs related to the closure of some of our international offices and other related costs consisting of legal and consulting fees to implement this initiative. As a result of these actions, we incurred restructuring exit costs of $12.0 million for the year ended December 31, 2019, which were reported within Marketing, selling and administrative expenses in our consolidated statements of comprehensive income (loss). In 2020, we expect to incur additional immaterial costs as it relates to the restructuring activities of this strategy.

The following table summarizes our restructuring exit costs (in thousands):

	Beginning Balance January 1, 2019	Accruals		Payments		Ending Balance December 31, 2019		Cumulative Charges Incurred
Termination benefits	—	$	8,880	$	491	$	8,389	$	8,880
Contract termination costs	—	338		—		338		338
Other related costs	—	2,808		23		2,785		2,808
Total	—	$	12,026	$	514	$	11,512	$	12,026

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CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended													12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Statement of Stockholders' Equity [Abstract]
Common stock dividends declared (in dollars per share)	$ 0.78	$ 0.78	$ 0.70	$ 0.70	$ 0.70	$ 0.70	$ 0.60	$ 0.60	$ 0.60	$ 0.60	$ 0.48	$ 0.48	$ 0.48	$ 2.96	$ 2.60	$ 2.16

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Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment [Abstract]

Property and equipment

Property and equipment consists of the following (in thousands):

	As of December 31,
	2019		2018
Ships	$	28,348,088	$	27,209,553
Ship improvements	3,920,800		2,965,634
Ships under construction	1,110,962		817,800
Land, buildings and improvements, including leasehold improvements and port facilities	472,067		321,136
Computer hardware and software, transportation equipment and other	1,698,007		1,120,988
Total property and equipment	35,549,924		32,435,111
Less—accumulated depreciation and amortization(1)	(10,083,116)		(8,968,948)
	$	25,466,808	$	23,466,163

(1)Amount includes accumulated depreciation and amortization for assets in service.

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Business Combination (Tables)

12 Months Ended

Dec. 31, 2019

Business Combinations [Abstract]

Schedule of Business Acquisitions

The following table summarizes the purchase price allocation based on estimated fair values of the assets acquired and liabilities assumed related to the Silversea Cruises acquisition as of July 31, 2018. Our purchase price allocation was final during 2019.

(in thousands)	Estimated Fair Value as of Acquisition Date (as Previously Reported)		Measurement Period Adjustments (1)		Estimated Fair Value as of Acquisition Date (as Adjusted)
Assets
Cash and cash equivalents	$	103,865	$	—	$	103,865
Trade and other receivables, net	7,163		—		7,163
Inventories	18,331		—		18,331
Prepaid expenses and other assets(2)	120,496		—		120,496
Derivative financial instruments	2,886		—		2,886
Property and equipment, net(3)	1,114,270		—		1,114,270
Goodwill	1,090,010		(5,224)		1,084,786
Other assets(4)	498,457		—		498,457
Total assets acquired	2,955,478		(5,224)		2,950,254
Liabilities
Current portion of long-term debt(5)	26,851		—		26,851
Accounts payable	36,960		—		36,960
Accrued interest	1,773		—		1,773
Accrued expenses and other liabilities	82,531		(5,224)		77,307
Customer deposits	453,798		—		453,798
Long-term debt(5)	727,935		—		727,935
Other long-term liabilities	23,860		—		23,860
Total liabilities assumed	1,353,708		(5,224)		1,348,484
Redeemable noncontrolling interest(6)	537,770		—		537,770
Total purchase price	$	1,064,000	$	—	$	1,064,000

(1) As a result of additional information obtained about facts and circumstances that existed as of the acquisition date, we recorded measurement period adjustments during 2019, which resulted in a net decrease to Goodwill of $5.2 million.

(2) Amount includes $32.0 million of cash held as collateral with credit card processors as of July 31, 2018.

(3) Property and equipment, net includes two ships under capital lease agreements amounting to $156.0 million as of July 31, 2018. The respective capital lease liabilities are reported within Long-term debt. Refer to Note 9. Debt for further information on the capital lease financing arrangements.

(4) Amount includes $494.6 million of intangible assets. Refer to Note 6. Intangible Assets for further information on the intangible assets acquired.

(5)  Refer to Note 9. Debt for further information on long-term debt assumed.

(6)  Refer to Note 11. Redeemable Noncontrolling Interest for further information on the redeemable noncontrolling interest recorded.

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Shareholders' Equity

12 Months Ended

Dec. 31, 2019

Equity [Abstract]

Shareholders' Equity

Shareholders' Equity

Dividends Declared

During the fourth and third quarters of 2019, we declared a cash dividend on our common stock of $0.78 per share which was paid in the first quarter of 2020 and fourth quarter of 2019, respectively. During the first and second quarters of 2019, we declared a cash dividend on our common stock of $0.70 per share which was paid in the second and third quarters of 2019, respectively.

During the fourth and third quarters of 2018, we declared a cash dividend on our common stock of $0.70 per share which was paid in the first quarter of 2019 and fourth quarter of 2018, respectively. During the first and second quarters of 2018, we declared a cash dividend on our common stock of $0.60 per share which was paid in the second and third quarters of 2018, respectively. During the first quarter of 2018, we also paid a cash dividend on our common stock of $0.60 per share which was declared during the fourth quarter of 2017.

During the fourth and third quarters of 2017, we declared a cash dividend on our common stock of $0.60 per share which was paid in the first quarter of 2018 and fourth quarter of 2017, respectively. During the first and second quarters of 2017, we declared a cash dividend on our common stock of $0.48 per share which was paid in the second and third quarters of 2017, respectively. During the first quarter of 2017, we also paid a cash dividend on our common stock of $0.48 per share which was declared during the fourth quarter of 2016.

Common Stock Repurchase Program

In May 2018, our board of directors authorized a 24-month common stock repurchase program for up to $1.0 billion. The timing and number of shares to be repurchased will depend on a variety of factors, including price and market conditions. Repurchases under the program may be made at management's discretion from time to time on the open market or through privately negotiated transactions. During the year ended December 31, 2019, we repurchased 0.9 million shares of our common stock under this program, for a total of $99.6 million, in open market transactions that were recorded within Treasury stock in our consolidated balance sheets. As of December 31, 2019, we have $600.0 million that remains available for future stock repurchase transactions under our Board authorized program.

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Revenues

12 Months Ended

Dec. 31, 2019

Revenue from Contract with Customer [Abstract]

Revenues

Revenues

Revenue Recognition

Revenues are measured based on consideration specified in our contracts with customers and are recognized as the related performance obligations are satisfied.

The majority of our revenues are derived from passenger cruise contracts which are reported within Passenger ticket revenues in our consolidated statements of comprehensive income (loss). Our performance obligation under these contracts is to provide a cruise vacation in exchange for the ticket price. We satisfy this performance obligation and recognize revenue over the duration of each cruise, which generally range from two to 25 nights.

Passenger ticket revenues include charges to our guests for port costs that vary with passenger head counts. These type of port costs, along with port costs that do not vary by passenger head counts, are included in our operating expenses. The amounts of port costs charged to our guests and included within Passenger ticket revenues on a gross basis were $666.8 million, $611.4 million and $569.5 million for the years ended December 31, 2019, 2018 and 2017, respectively.

Our total revenues also include onboard and other revenues, which consist primarily of revenues from the sale of goods and services onboard our ships that are not included in passenger ticket prices. We receive payment before or concurrently with the transfer of these goods and services to passengers during a cruise and recognize revenue at the time of transfer over the duration of the related cruise.

As a practical expedient, we have omitted disclosures on our remaining performance obligations as the duration of our contracts with customers is less than a year.

Disaggregated Revenues

The following table disaggregates our total revenues by geographic regions where we provide cruise itineraries (in thousands):

	Year Ended December 31,
	2019		2018		2017
Revenues by itinerary
North America(1)	$	6,392,354	$	5,399,951	$	5,062,305
Asia/Pacific(2)	1,529,898		1,463,083		1,588,802
Europe(3)	1,942,057		1,914,549		1,509,586
Other regions	567,904		348,145		285,954
Total revenues by itinerary	10,432,213		9,125,728		8,446,647
Other revenues(4)	518,448		368,121		331,198
Total revenues	$	10,950,661	$	9,493,849	$	8,777,845

(1)Includes the United States, Canada, Mexico and the Caribbean.

(2)Includes Southeast Asia (e.g., Singapore, Thailand and the Philippines), East Asia (e.g., China and Japan), South Asia (e.g., India and Pakistan) and Oceania (e.g., Australia and Fiji Islands) regions.

(3)Includes European countries (e.g., the Nordics, Germany, France, Italy, Spain and the United Kingdom).

(4)Includes revenues primarily related to cancellation fees, vacation protection insurance and pre- and post-cruise tours and fees for operating certain port facilities. Amounts also include revenues related to our bareboat charter, procurement and management related services we perform on behalf of our unconsolidated affiliates. Refer to Note 8. 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 years ended December 31, 2019, 2018 and 2017, our guests were sourced from the following areas:

	Year Ended December 31,
	2019		2018		2017
Passenger ticket revenues:
United States	65	%	61	%	59	%
United Kingdom	9	%	10	%	9	%
All other countries (1)	26	%	29	%	32	%

(1)No other individual country's revenue exceeded 10% for the years ended December 31, 2019, 2018 and 2017.

Customer Deposits and Contract Liabilities

Our payment terms generally require an upfront deposit to confirm a reservation, with the balance due prior to the cruise. Deposits received on sales of passenger cruises are initially recorded as Customer deposits in our consolidated balance sheets and subsequently recognized as passenger ticket revenues during the duration of the cruise. ASC 606, Revenues from Contracts with Customers, defines a “contract liability” as an entity’s obligation to transfer goods or services to a customer for which the entity has received consideration from the customer. We consider customer deposits to be a contract liability once 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 as of December 31, 2019, 2018 and 2017 included contract liabilities of $1.7 billion, $1.9 billion and $1.4 billion, respectively. Substantially all of our contract liabilities as of the years ended December 31, 2018 and 2017 were recognized and reported within Total revenues in our consolidated statements of comprehensive income (loss) for the years ended December 31, 2019 and 2018, respectively.

Contract Receivables and Contract Assets

Although we generally require full payment from our customers prior to their cruise, we grant credit terms to a relatively small portion of our revenue sourced in select markets outside of the United States. As a result, we have outstanding receivables from passenger cruise contracts in those markets. We also have receivables from credit card merchants for cruise ticket purchases and goods and services sold to guests during cruises that are collected before, during or shortly after the cruise voyage. In addition, we have receivables due from concessionaires onboard our vessels. These receivables are included within Trade and other receivables, net in our consolidated balance sheets.

We have contract assets that are conditional rights to consideration for satisfying the construction services performance obligations under a service concession arrangement. As of December 31, 2019, 2018, and 2017, our contract assets were $55.5 million, $57.8 million and $60.1 million, respectively, and were included within Other assets in our consolidated balance sheets. Given the short duration of our cruises and our collection terms, we do not have any other significant contract assets.

Assets Recognized from the Costs to Obtain a Contract with a Customer

Prepaid travel agent commissions are an incremental cost of obtaining contracts with customers that we recognize as an asset and include within Prepaid expenses and other assets in our consolidated balance sheets. Prepaid travel agent commissions were $163.2 million and $153.5 million as of December 31, 2019 and 2018, respectively. Substantially all of our prepaid travel agent commissions at December 31, 2018 and December 31, 2017 were expensed and reported within Commissions, transportation and other in our consolidated statements of comprehensive income (loss) for the years ended December 31, 2019 and 2018, respectively.

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Other Assets

12 Months Ended

Dec. 31, 2019

Other Assets [Abstract]

Other Assets

Other Assets

A Variable Interest Entity ("VIE") is an entity in which the equity investors have not provided enough equity to finance the entity's activities or the equity investors (1) cannot directly or indirectly make decisions about the entity's activities through their voting rights or similar rights; (2) do not have the obligation to absorb the expected losses of the entity; (3) do not have the right to receive the expected residual returns of the entity; or (4) have voting rights that are not proportionate to their economic interests and the entity's activities involve or are conducted on behalf of an investor with a disproportionately small voting interest.

We have determined that TUI Cruises GmbH, our 50%-owned joint venture, which operates the brand TUI Cruises, is a VIE. As of December 31, 2019, the net book value of our investment in TUI Cruises was $598.1 million, primarily consisting of $443.1 million in equity and a loan of €133.2 million, or approximately $149.5 million, based on the exchange rate at December 31, 2019. As of December 31, 2018, the net book value of our investment in TUI Cruises was $578.1 million, primarily consisting of $403.0 million in equity and a loan of €150.6 million, or approximately $172.2 million, based on the exchange rate at December 31, 2018. 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, our joint venture partner in TUI Cruises, and is secured by a first priority mortgage on the ship. Refer to Note 7. Property and Equipment for further information. The majority of these amounts were included within Other assets in our consolidated balance sheets.

In addition, we and TUI AG have each guaranteed the repayment by TUI Cruises of 50% of a bank loan. As of December 31, 2019, the outstanding principal amount of the loan was €26.4 million, or approximately $29.7 million, based on the exchange rate at December 31, 2019. The loan amortizes quarterly and is currently secured by a first mortgage on Mein Schiff Herz. Based on current facts and circumstances, we do not believe potential obligations under our guarantee of this bank loan are probable. In addition to our guarantee of the bank loan, TUI Cruises has various ship construction and financing agreements which include certain restrictions on each of our and TUI AG’s ability to reduce our current ownership interest in TUI Cruises below 37.55% through May 2031.

Our investment amount, outstanding term loan and the potential obligations under the bank loan guarantee are substantially our maximum exposure to loss in connection with our investment in TUI Cruises. We have determined that we are not the primary beneficiary of TUI Cruises. We believe that the power to direct the activities that most significantly impact TUI Cruises’ economic performance are shared between ourselves and TUI AG. All the significant operating and financial decisions of TUI Cruises require the consent of both parties, which we believe creates shared power over TUI Cruises. Accordingly, we do not consolidate this entity and account for this investment under the equity method of accounting.

In March 2009, we sold Celebrity Galaxy to TUI Cruises for €224.4 million, or $290.9 million, to serve as the original Mein Schiff 1. Due to the related party nature of this transaction, the gain on the sale of the ship of $35.9 million was deferred and being recognized over the remaining life of the ship which was estimated to be 23 years. In April 2018, TUI Cruises sold the original Mein Schiff 1 and as a result we accelerated the recognition of the remaining balance of the deferred gain, which was $21.8 million. This amount is included within Other income (expense) in our consolidated statements of comprehensive income (loss) for the year ended December 31, 2018.

On February 7, 2020, TUI Cruises entered into an agreement to acquire Hapag-Lloyd Cruises, a luxury and expedition brand for German-speaking guests, from TUI AG. Hapag-Lloyd Cruises operates two luxury liners and three smaller expedition ships. The transaction is subject to regulatory approval and customary closing conditions.

We have determined that Pullmantur Holdings S.L. ("Pullmantur Holdings"), which operates the Pullmantur brand and in which we have a 49% noncontrolling interest and Springwater Capital LLC has a 51% interest, is a VIE for which we are not the primary beneficiary, as we do not have the power to direct the activities that most significantly impact the entity's economic performance. Accordingly, we do not consolidate this entity and we account for this investment under the equity method of accounting. As of December 31, 2019 and December 31, 2018, our maximum exposure to loss in Pullmantur Holdings was $49.7 million and $58.5 million, respectively, consisting of loans and other receivables. These amounts were included within Trade and other receivables, net and Other assets in our consolidated balance sheets.

We have provided a non-revolving working capital facility to a Pullmantur Holdings subsidiary in the amount of up to €15.0 million or approximately $16.8 million based on the exchange rate at December 31, 2019. Proceeds of the facility, which were available to be drawn through December 31, 2018 accrue interest at an interest rate of 6.5% per annum, are payable through 2022. An affiliate of Springwater Capital LLC, has guaranteed repayment of 51% of the outstanding amounts under the facility. As of December 31, 2019, €11.0 million, or approximately $12.3 million, based on the exchange rate at December 31, 2019, was outstanding under this facility. As of December 31, 2018, €14.0 million, or approximately $16.0 million, based on the exchange rate at December 31, 2018, was outstanding under this facility.

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, ship upgrades and certain emergency repairs as may be required. During the years ended December 31, 2019 and 2018, we made payments of $45.7 million and $44.7 million, respectively, to Grand Bahama for ship repair and maintenance services. We have determined that we are not the primary beneficiary of this facility, as we do not have the power to direct the activities that most significantly impact the facility's economic performance. Accordingly, we do not consolidate this entity and we account for this investment under the equity method of accounting. As of December 31, 2019, the net book value of our investment in Grand Bahama was $47.9 million, consisting of $27.0 million in equity and loans of $20.9 million. As of December 31, 2018, the net book value of our investment in Grand Bahama was approximately $56.1 million, consisting of $41.4 million in equity and loans of $14.6 million. These amounts represent our maximum exposure to loss related to our investment in Grand Bahama. Our loans to Grand Bahama mature between December 2020 and March 2026 and bear interest at LIBOR plus 2.0% to 3.75%, capped at 5.75% for the majority of the outstanding loan balance. Interest payable on the loans is due on a semi-annual basis. During the years ended December 31, 2019 and 2018, we received principal and interest payments of $8.6 million and $16.4 million, respectively. The loan balances are included within Trade and

other receivables, net and Other assets in our consolidated balance sheets. The loans are currently accruing interest under the effective yield method.

We monitor credit risk associated with the loan through our participation on Grand Bahama's board of directors along with our review of Grand Bahama's financial statements and projected cash flows. Based on this review, we believe the risk of loss associated with the outstanding loan is not probable as of December 31, 2019.

In April 2019, Grand Bahama experienced an incident involving one of its drydocks where Oasis of the Seas was undergoing maintenance.  The damage from the incident resulted in a write-off of the related drydock by Grand Bahama.  Our equity investment income for the year ended December 31, 2019 reflects our equity share of the write-off and other incidental expenses. Grand Bahama's management is working with its insurance underwriter to determine coverage under their existing policies.

In March 2018, we and Ctrip.com International Ltd. ("Ctrip") announced the decision to end the Skysea Holding International Ltd. ("Skysea Holding") venture in which we have a 36% ownership interest. As a result, we reviewed the recoverability of our investment in Skysea Holding and determined that our investment, debt facility and other receivables due from the brand were impaired and recognized an impairment charge of $23.3 million which was included within Other (expense) income in our consolidated statement of comprehensive income (loss) for the year ended December 31, 2018. The charge reflected a full impairment of our investment in SkySea Holding and other receivables due to us and reduced the debt facility and related accrued interest due to us to Skysea Holdings to its net realizable value.

In December 2018, the Golden Era, the ship operated by SkySea Cruises, and a wholly-owned subsidiary of Skysea Holdings, was sold to an affiliate of TUI AG. Proceeds from the sale were distributed to Ctrip and us, which eliminated our net receivable balance due from Skysea Holding, resulting in no further impairment charges. As of December 31, 2019, we do not have any exposures to loss related to our investment in Skysea Holding.

The following tables set forth information regarding our investments accounted for under the equity method of accounting, including the entities discussed above, (in thousands):

	Year ended December 31,
	2019		2018		2017
Share of equity income from investments	$	230,980	$	210,756	$	156,247
Dividends received (1)	$	150,177	$	243,101	$	109,677

(1) For the year ended December 31, 2019, TUI Cruises paid us dividends totaling €170.0 million, or approximately $190.3 million, based on the exchange rates at the time of the transactions. The amounts included in the table above are net of tax withholdings.

	As of December 31,
	2019		2018
Total notes receivable due from equity investments	$	184,558	$	201,979
Less-current portion (1)	25,933		19,075
Long-term portion (2)	$	158,625	$	182,904

___________________________________________________________________

(1)  Included within Trade and other receivables, net in our consolidated balance sheets.

(2) Included within Other assets in our consolidated balance sheets.

We also provide ship management services to TUI Cruises GmbH, Pullmantur Holdings and Skysea Holding (which ceased cruising operations in September 2018). Additionally, we bareboat charter to Pullmantur Holdings the vessels currently operated by its brands, which were retained by us following the sale of our 51% interest in Pullmantur Holdings. We recorded the following as it relates to these services in our operating results within our consolidated statements of comprehensive income (loss) (in thousands):

	Year ended December 31,
	2019		2018		2017
Revenues	$	47,242	$	54,705	$	53,532
Expenses	$	4,304	$	11,531	$	15,176

Summarized financial information for our affiliates accounted for under the equity method of accounting was as follows (in thousands):

	As of December 31,
	2019		2018
Current assets	$	435,152	$	471,428
Non-current assets	4,019,394		3,826,018
Total assets	$	4,454,546	$	4,297,446
Current liabilities	$	1,094,552	$	1,064,741
Non- current liabilities	2,267,936		2,217,909
Total liabilities	$	3,362,488	$	3,282,650
Equity attributable to:
Noncontrolling interest	$	1,784	$	1,672

	Year ended December 31,
	2019		2018		2017
Total revenues	$	2,354,744	$	2,255,352	$	1,994,014
Total expenses	(1,875,952)		(1,779,160)		(1,684,276)
Net income	$	478,792	$	476,192	$	309,738

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Leases - Supplemental Cash Flow Information (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 125,307
Operating cash flows from finance leases	8,355
Financing cash flows from finance leases	$ 32,090

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Earnings Per Share (Antidilutive Shares) (Details) - shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Earnings Per Share [Abstract]
Antidilutive shares (in shares)	0	0	0

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Stock-Based Employee Compensation (Expense Recognized) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Employee Service Share-based Compensation, Allocation of Recognized Period Costs
Employee stock-base compensation expense	$ 75,930	$ 46,061	$ 69,459
Marketing, selling and administrative expenses
Employee Service Share-based Compensation, Allocation of Recognized Period Costs
Employee stock-base compensation expense	$ 75,930	$ 46,061	$ 69,459

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Leases - Narrative (Details) ft² in Thousands, $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($) ship extension_option	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016	Jul. 31, 2016 ft²
Lessee, Lease, Description [Line Items]
Variable lease cost	$ 103.3
Expenses related to operating leases		$ 32.2	$ 29.3
Port of Miami Terminal
Lessee, Lease, Description [Line Items]
Expected size of terminal | ft²					170
Terminal lease term, term of contract					5 years
Pullmantur
Lessee, Lease, Description [Line Items]
Percentage of subsidiary which has been sold	51.00%			51.00%
Maritime Equipment
Lessee, Lease, Description [Line Items]
Number of ships under finance leases | ship	2
Additional lease term	6 years
Building
Lessee, Lease, Description [Line Items]
Additional lease term	5 years
Finance lease term	43 years
Number of extension options | extension_option	2
Building | Minimum
Lessee, Lease, Description [Line Items]
Renewal term	1 year
Building | Maximum
Lessee, Lease, Description [Line Items]
Renewal term	10 years
Berthing Agreement | Minimum
Lessee, Lease, Description [Line Items]
Renewal term	1 year
Berthing Agreement | Maximum
Lessee, Lease, Description [Line Items]
Renewal term	20 years

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Changes in Accumulated Other Comprehensive Income (Loss) (Reclassifications) (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest expense, net of interest capitalized		$ (408,513)	$ (333,672)	$ (299,982)
Depreciation and amortization expenses	$ (951,194)	(1,245,942)	(1,033,697)	(951,194)
Other income (Expense)	(5,289)	(24,513)	11,107	(5,289)
Fuel	$ (681,118)	(697,962)	(710,617)
Reclassification out of accumulated other comprehensive income (loss)
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total reclassifications for the period		4,426	(12,620)	(189,802)
Reclassification out of accumulated other comprehensive income (loss) | Gain (loss) on cash flow derivative hedges:
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total reclassifications for the period		5,205	(11,133)	(188,630)
Reclassification out of accumulated other comprehensive income (loss) | Gain (loss) on cash flow derivative hedges: | Interest rate swaps
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest expense, net of interest capitalized		(4,289)	(10,931)	(31,603)
Reclassification out of accumulated other comprehensive income (loss) | Gain (loss) on cash flow derivative hedges: | Foreign currency forward contracts
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Depreciation and amortization expenses		(14,063)	(12,843)	(10,840)
Other income (Expense)		(5,080)	12,855	(9,472)
Reclassification out of accumulated other comprehensive income (loss) | Gain (loss) on cash flow derivative hedges: | Foreign currency forward contracts
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other indirect operating expenses				0
Reclassification out of accumulated other comprehensive income (loss) | Gain (loss) on cash flow derivative hedges: | Foreign currency collar options
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Depreciation and amortization expenses		0	0	(2,408)
Reclassification out of accumulated other comprehensive income (loss) | Gain (loss) on cash flow derivative hedges: | Fuel contracts
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other income (Expense)		(1,292)	(1,580)	7,382
Fuel		29,929	1,366	(141,689)
Reclassification out of accumulated other comprehensive income (loss) | Amortization of defined benefit plans:
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Payroll and related		(779)	(1,487)	(1,172)
Total reclassifications for the period		$ (779)	$ (1,487)	$ (1,172)

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Shareholders' Equity (Details) - USD ($)	1 Months Ended	2 Months Ended	3 Months Ended													12 Months Ended
	May 31, 2018	Feb. 19, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Shareholders' Equity
Common stock dividends declared (in dollars per share)			$ 0.78	$ 0.78	$ 0.70	$ 0.70	$ 0.70	$ 0.70	$ 0.60	$ 0.60	$ 0.60	$ 0.60	$ 0.48	$ 0.48	$ 0.48	$ 2.96	$ 2.60	$ 2.16
Common stock, dividends paid (in dollars per share)			$ 0.78	$ 0.70	$ 0.70	$ 0.70	$ 0.70	$ 0.60	$ 0.60	$ 0.60	$ 0.60	$ 0.48	$ 0.48	$ 0.48
Term of stock repurchase program	24 months
Stock repurchase program, authorized amount	$ 1,000,000,000.0
Total cost of treasury stock, acquired during the period																$ 99,582,000	$ 575,039,000	$ 224,998,000
Subsequent event
Shareholders' Equity
Common stock, dividends paid (in dollars per share)		$ 0.78
May 2018 Share Repurchase Program
Shareholders' Equity
Treasury stock, shares acquired (in shares)																900,000
Total cost of treasury stock, acquired during the period																$ 99,600,000
Remaining authorized repurchase amount			$ 600,000,000.0													$ 600,000,000.0

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Revenues (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Capitalized Contract Cost [Line Items]
Total revenues	$ 2,517,413	$ 3,186,850	$ 2,806,631	$ 2,439,767	$ 2,332,301	$ 2,796,187	$ 2,337,605	$ 2,027,756	$ 10,950,661	$ 9,493,849	$ 8,777,845
Contract liabilities	1,700,000				1,900,000				1,700,000	1,900,000	1,400,000
Contract assets	55,500				57,800				55,500	57,800	60,100
Commissions, transportation and other
Capitalized Contract Cost [Line Items]
Capitalized contract costs	$ 163,200				$ 153,500				$ 163,200	153,500
Minimum
Capitalized Contract Cost [Line Items]
Duration of cruises									2 days
Maximum
Capitalized Contract Cost [Line Items]
Duration of cruises									25 days
Port Costs
Capitalized Contract Cost [Line Items]
Total revenues									$ 666,800	$ 611,400	$ 569,500

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Intangible Assets (Schedule of Intangible Assets) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Finite-Lived Intangible Assets [Line Items]
Finite-life intangible assets, gross carrying value	$ 156,629	$ 156,629
Finite-life intangible assets, accumulated amortization	20,329	6,251
Finite-life intangible assets, net carrying value	136,300	150,378
Indefinite-life intangible assets	352,275	351,725
Gross Carrying Value	508,904	508,354
Net Carrying Value	488,575	502,103
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Finite-life intangible assets, gross carrying value	97,400	97,400
Finite-life intangible assets, accumulated amortization	7,576	1,082
Finite-life intangible assets, net carrying value	$ 89,824	$ 96,318
Customer relationships | Weighted Average
Finite-Lived Intangible Assets [Line Items]
Remaining Weighted Average Amortization Period (Years)	13 years 9 months 18 days	14 years 9 months 18 days
Galapagos operating license
Finite-Lived Intangible Assets [Line Items]
Finite-life intangible assets, gross carrying value	$ 47,669	$ 47,669
Finite-life intangible assets, accumulated amortization	6,010	4,206
Finite-life intangible assets, net carrying value	$ 41,659	$ 43,463
Galapagos operating license | Weighted Average
Finite-Lived Intangible Assets [Line Items]
Remaining Weighted Average Amortization Period (Years)	24 years 8 months 12 days	25 years 9 months 18 days
Other finite-life intangible assets
Finite-Lived Intangible Assets [Line Items]
Finite-life intangible assets, gross carrying value	$ 11,560	$ 11,560
Finite-life intangible assets, accumulated amortization	6,743	963
Finite-life intangible assets, net carrying value	$ 4,817	$ 10,597
Other finite-life intangible assets | Weighted Average
Finite-Lived Intangible Assets [Line Items]
Remaining Weighted Average Amortization Period (Years)	9 months 18 days	1 year 9 months 18 days

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Other Assets (Tables)

12 Months Ended

Dec. 31, 2019

Other Assets [Abstract]

Schedule of other non-operating income

The following tables set forth information regarding our investments accounted for under the equity method of accounting, including the entities discussed above, (in thousands):

	Year ended December 31,
	2019		2018		2017
Share of equity income from investments	$	230,980	$	210,756	$	156,247
Dividends received (1)	$	150,177	$	243,101	$	109,677

(1) For the year ended December 31, 2019, TUI Cruises paid us dividends totaling €170.0 million, or approximately $190.3 million, based on the exchange rates at the time of the transactions. The amounts included in the table above are net of tax withholdings.

Related party transactions

	As of December 31,
	2019		2018
Total notes receivable due from equity investments	$	184,558	$	201,979
Less-current portion (1)	25,933		19,075
Long-term portion (2)	$	158,625	$	182,904

___________________________________________________________________

(1)  Included within Trade and other receivables, net in our consolidated balance sheets.

(2) Included within Other assets in our consolidated balance sheets.

We recorded the following as it relates to these services in our operating results within our consolidated statements of comprehensive income (loss) (in thousands):

	Year ended December 31,
	2019		2018		2017
Revenues	$	47,242	$	54,705	$	53,532
Expenses	$	4,304	$	11,531	$	15,176

Summarized balance sheet information of affiliates accounted for under the equity method of accounting

Summarized financial information for our affiliates accounted for under the equity method of accounting was as follows (in thousands):

	As of December 31,
	2019		2018
Current assets	$	435,152	$	471,428
Non-current assets	4,019,394		3,826,018
Total assets	$	4,454,546	$	4,297,446
Current liabilities	$	1,094,552	$	1,064,741
Non- current liabilities	2,267,936		2,217,909
Total liabilities	$	3,362,488	$	3,282,650
Equity attributable to:
Noncontrolling interest	$	1,784	$	1,672

Summarized income statement sheet information of affiliates accounted for under the equity method of accounting

	Year ended December 31,
	2019		2018		2017
Total revenues	$	2,354,744	$	2,255,352	$	1,994,014
Total expenses	(1,875,952)		(1,779,160)		(1,684,276)
Net income	$	478,792	$	476,192	$	309,738

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Revenues (Tables)

12 Months Ended

Dec. 31, 2019

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following table disaggregates our total revenues by geographic regions where we provide cruise itineraries (in thousands):

	Year Ended December 31,
	2019		2018		2017
Revenues by itinerary
North America(1)	$	6,392,354	$	5,399,951	$	5,062,305
Asia/Pacific(2)	1,529,898		1,463,083		1,588,802
Europe(3)	1,942,057		1,914,549		1,509,586
Other regions	567,904		348,145		285,954
Total revenues by itinerary	10,432,213		9,125,728		8,446,647
Other revenues(4)	518,448		368,121		331,198
Total revenues	$	10,950,661	$	9,493,849	$	8,777,845

(1)Includes the United States, Canada, Mexico and the Caribbean.

(2)Includes Southeast Asia (e.g., Singapore, Thailand and the Philippines), East Asia (e.g., China and Japan), South Asia (e.g., India and Pakistan) and Oceania (e.g., Australia and Fiji Islands) regions.

(3)Includes European countries (e.g., the Nordics, Germany, France, Italy, Spain and the United Kingdom).

(4)Includes revenues primarily related to cancellation fees, vacation protection insurance and pre- and post-cruise tours and fees for operating certain port facilities. Amounts also include revenues related to our bareboat charter, procurement and management related services we perform on behalf of our unconsolidated affiliates. Refer to Note 8. Other Assets for more information on our unconsolidated affiliates.

For the years ended December 31, 2019, 2018 and 2017, our guests were sourced from the following areas:

	Year Ended December 31,
	2019		2018		2017
Passenger ticket revenues:
United States	65	%	61	%	59	%
United Kingdom	9	%	10	%	9	%
All other countries (1)	26	%	29	%	32	%

(1)No other individual country's revenue exceeded 10% for the years ended December 31, 2019, 2018 and 2017.

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Business Combination

12 Months Ended

Dec. 31, 2019

Business Combinations [Abstract]

Business Combination

Business Combination

On July 31, 2018, we acquired a 66.7% equity stake in Silversea Cruise Holding Ltd. ("Silversea Cruises"), an ultra-luxury and expedition cruise line, from Heritage Cruise Holding Ltd. ("HCH"), previously known as Silversea Cruises Group Ltd. Silversea Cruises enhances our presence in the ultra-luxury and expedition markets and provides us with an opportunity to drive long-term capacity growth in these markets.

The purchase price consisted of $1.02 billion in cash, net of assumed liabilities, and contingent consideration that can range from zero up to a maximum of approximately 472,000 shares of our common stock, and is payable upon achievement of certain 2019-2020 performance metrics by Silversea Cruises. The fair value of the contingent consideration at the acquisition date was $44.0 million. Changes to the fair value of the contingent consideration are recorded in our results of operations, if any, in the period of the change. Refer to Note 18. Fair Value Measurements and Derivative Instruments for further information on the valuation of the contingent consideration.

To finance a portion of the purchase price, we drew in full on a $700 million unsecured credit agreement and the remainder of the transaction consideration was financed through the use of our revolving credit facilities. Refer to Note 9. Debt for further information on the credit agreement.

We have accounted for this transaction under the provisions of ASC 805, Business Combinations. The purchase price for the Silversea Cruises acquisition was allocated based on estimates of the fair value of assets

acquired and liabilities assumed at the acquisition date, with the excess allocated to goodwill. Goodwill is not deductible for tax purposes and consisted primarily of the opportunity to expand our cruise operations in strategic growth areas.

For reporting purposes, we included Silversea Cruises’ results of operations on a three-month reporting lag from October 1, 2018 through September 30, 2019 in our consolidated results of operations for the year ended December 31, 2019 and from the July 31, 2018 date of acquisition through September 30, 2018 in our consolidated results of operations for the year ended December 31, 2018. We have included Silversea Cruises' balance sheets as of September 30, 2019 and 2018 in our consolidated balance sheets as of December 31, 2019 and 2018, respectively. Refer to Note 1. General for further information on this three-month reporting lag.

There were no material measurement period adjustments recorded for the year ended December 31, 2019.

The following table summarizes the purchase price allocation based on estimated fair values of the assets acquired and liabilities assumed related to the Silversea Cruises acquisition as of July 31, 2018. Our purchase price allocation was final during 2019.

(in thousands)	Estimated Fair Value as of Acquisition Date (as Previously Reported)		Measurement Period Adjustments (1)		Estimated Fair Value as of Acquisition Date (as Adjusted)
Assets
Cash and cash equivalents	$	103,865	$	—	$	103,865
Trade and other receivables, net	7,163		—		7,163
Inventories	18,331		—		18,331
Prepaid expenses and other assets(2)	120,496		—		120,496
Derivative financial instruments	2,886		—		2,886
Property and equipment, net(3)	1,114,270		—		1,114,270
Goodwill	1,090,010		(5,224)		1,084,786
Other assets(4)	498,457		—		498,457
Total assets acquired	2,955,478		(5,224)		2,950,254
Liabilities
Current portion of long-term debt(5)	26,851		—		26,851
Accounts payable	36,960		—		36,960
Accrued interest	1,773		—		1,773
Accrued expenses and other liabilities	82,531		(5,224)		77,307
Customer deposits	453,798		—		453,798
Long-term debt(5)	727,935		—		727,935
Other long-term liabilities	23,860		—		23,860
Total liabilities assumed	1,353,708		(5,224)		1,348,484
Redeemable noncontrolling interest(6)	537,770		—		537,770
Total purchase price	$	1,064,000	$	—	$	1,064,000

(1) As a result of additional information obtained about facts and circumstances that existed as of the acquisition date, we recorded measurement period adjustments during 2019, which resulted in a net decrease to Goodwill of $5.2 million.

(2) Amount includes $32.0 million of cash held as collateral with credit card processors as of July 31, 2018.

(3) Property and equipment, net includes two ships under capital lease agreements amounting to $156.0 million as of July 31, 2018. The respective capital lease liabilities are reported within Long-term debt. Refer to Note 9. Debt for further information on the capital lease financing arrangements.

(4) Amount includes $494.6 million of intangible assets. Refer to Note 6. Intangible Assets for further information on the intangible assets acquired.

(5)  Refer to Note 9. Debt for further information on long-term debt assumed.

(6)  Refer to Note 11. Redeemable Noncontrolling Interest for further information on the redeemable noncontrolling interest recorded.

As of December 31, 2018, intangible assets, net include intangible assets acquired in the Silversea Cruises acquisition, which were recorded at fair value at acquisition date as follows:

	Fair Value at Acquisition Date (in thousands)		Weighted Average Amortization Period (Years)
Silversea Cruises trade name	$	349,500	Indefinite-life
Customer relationships	97,400		15
Galapagos operating license	36,100		16
Other finite-life intangible assets	11,560		2
Total intangible assets	$	494,560

Similar to our other ship-operating and vessel-owning subsidiaries, Silversea Cruises is currently exempt from U.S. corporate tax on U.S. source income from the international operation of ships pursuant to Section 883 of the Internal Revenue Code. Additionally, the deferred tax liability recognized in connection with the acquisition of Silversea Cruises was not material to our consolidated financial statements and there were no net operating losses recognized as of December 31, 2018.

For the year ended December 31, 2018, Total revenues and Net Income in our consolidated statements of comprehensive income (loss) include $130.1 million and $3.3 million, respectively, of revenues and net income from Silversea Cruises since the date of acquisition through September 30, 2018. For the year ended December 31, 2018, our results of operations also include transaction-related costs of $31.8 million, which were included primarily within Marketing, selling and administrative expenses in our consolidated statements of comprehensive income (loss).

Pro-forma financial results relating to the Silversea Cruises acquisition are not presented, as this acquisition was not material to our consolidated results of operations.

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Property and Equipment

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment [Abstract]

Property and Equipment

Property and Equipment

Property and equipment consists of the following (in thousands):

	As of December 31,
	2019		2018
Ships	$	28,348,088	$	27,209,553
Ship improvements	3,920,800		2,965,634
Ships under construction	1,110,962		817,800
Land, buildings and improvements, including leasehold improvements and port facilities	472,067		321,136
Computer hardware and software, transportation equipment and other	1,698,007		1,120,988
Total property and equipment	35,549,924		32,435,111
Less—accumulated depreciation and amortization(1)	(10,083,116)		(8,968,948)
	$	25,466,808	$	23,466,163

(1)Amount includes accumulated depreciation and amortization for assets in service.

Ships under construction include progress payments for the construction of new ships as well as planning, design, capitalized interest and other associated costs. We capitalized interest costs of $56.5 million, $49.6 million and $24.2 million for the years ended December 31, 2019, 2018 and 2017, respectively.

During 2019, we took delivery of Spectrum of the Seas and Celebrity Flora. During 2018, we completed our purchase of Azamara Pursuit and took delivery of Symphony of the Seas and Celebrity Edge. Refer to Note 9. Debt for further information.

Upon our acquisition of Silversea Cruises, we added nine ships to our fleet, two of which are under capital lease agreements and one under an operating lease. As of December 31, 2019, Silversea Cruises operates eight ships as the operating lease for Silver Discover was terminated during 2019. Refer to Note 3. Business Combination for further information on the Silversea Cruises acquisition and Note 9. Debt for further information on the capital leases.

During 2017, we sold our three aircraft and 6% of our ownership stake in Wamos Air, S.A. (formerly known as Pullmantur Air, S.A.) to Wamos Air, S.A. In connection with the sale transaction, we extended two loans to Wamos Air, S.A. totaling €17.3 million. During the year ended December 31, 2019, we received principal and interest payments of €5.4 million resulting in full repayment of one of the loans. As of December 31, 2019, a receivable of €9.9 million, or approximately $11.1 million, based on the exchange rate at December 31, 2019, was outstanding related to the principal amount of the remaining loan. The remaining loan accrues interest at 5.25% per annum, amortizes through maturity of July 2021, and is secured by first priority security interests over the aircraft engines and shares sold in connection with the transaction. The sale resulted in an immaterial gain that was recognized in earnings during the year ended December 31, 2017. Post-sale, we retained a 13% interest in Wamos Air, S.A.

During 2017, we sold Legend of the Seas to an affiliate of TUI AG, our joint venture partner in TUI Cruises. The sale resulted in a gain of $30.9 million and was reported within Other operating within Cruise operating expenses in our consolidated statements of comprehensive income (loss) for the year ended December 31, 2017.

In January of 2020, Zenith was sold to a third party for approximately its net book value. Zenith was previously bareboat chartered to Pullmantur Holdings S.L.

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Redeemable Noncontrolling Interest

12 Months Ended

Dec. 31, 2019

Noncontrolling Interest [Abstract]

Redeemable Noncontrolling Interest

Redeemable Noncontrolling Interest

In connection with the acquisition of Silversea Cruises, we recorded a redeemable noncontrolling interest of $537.8 million due to the put options held by HCH. The put options may require us to purchase HCH's remaining interest, or 33.3% of Silversea Cruises, upon the occurrence or nonoccurrence of certain future events that are not solely within our control. As of December 31, 2019, HCH's interest is presented as Redeemable noncontrolling interest and is classified outside of shareholders' equity in our consolidated balance sheets. Additionally, the noncontrolling interest's share in the net earnings (loss) and contractual accretion requirements associated with the put options are included in Net Income attributable to noncontrolling interests in our consolidated statements of comprehensive income (loss).

The following table presents changes in the redeemable noncontrolling interest as of December 31, 2019 (in thousands):

Balance as of January 1, 2018	$	—
Additions (Silversea Cruises acqusition)	537,770
Net income attributable to noncontrolling interest, including the contractual accretion of the put options	4,750
Other	(500)
Balance at December 31, 2018	$	542,020
Net income attributable to noncontrolling interest, including the contractual accretion of the put options	28,713
Distribution to noncontrolling interest	(752)
Balance at December 31, 2019	$	569,981

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Fair Value Measurements and Derivative Instruments (Nonrecurring) (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Level 1
Assets:
Cash and cash equivalents	$ 243,738	$ 287,852
Total Assets	243,738	287,852
Liabilities:
Long-term debt (including current portion of long-term debt)	0	0
Total Liabilities	0	0
Level 2
Assets:
Cash and cash equivalents	0	0
Total Assets	0	0
Liabilities:
Long-term debt (including current portion of long-term debt)	10,059,055	10,244,214
Total Liabilities	10,059,055	10,244,214
Level 3
Assets:
Cash and cash equivalents	0	0
Total Assets	0	0
Liabilities:
Long-term debt (including current portion of long-term debt)	0	0
Total Liabilities	0	0
Total Carrying Amount
Assets:
Cash and cash equivalents	243,738	287,852
Total Assets	243,738	287,852
Liabilities:
Long-term debt (including current portion of long-term debt)	9,370,438	9,871,267
Total Liabilities	9,370,438	9,871,267
Total Fair Value
Assets:
Cash and cash equivalents	243,738	287,852
Total Assets	243,738	287,852
Liabilities:
Long-term debt (including current portion of long-term debt)	10,059,055	10,244,214
Total Liabilities	$ 10,059,055	$ 10,244,214

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Stock-Based Employee Compensation (Narrative) (Details)	12 Months Ended
	Dec. 31, 2019 USD ($) plan $ / shares shares	Dec. 31, 2018 $ / shares shares	Dec. 31, 2017 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock-based compensation plans | plan	1
Maximum number of award to be granted per individual (in shares)	500,000
Maximum aggregate number of shares available under the employee stock purchase plan (in shares)	1,300,000
Purchase price for each share of common stock as percentage of the average of the market price	85.00%
Shares of common stock issued under the ESPP plan (in shares)	91,586	74,100	51,989
Weighted-average price of shares of common stock issued under the ESPP plan (in dollars per share) | $ / shares	$ 98.20	$ 97.50	$ 93.15
Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum value of awards that can be granted to participant in any fiscal year | $	$ 500,000
Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Maximum actual number of shares underlying each performance share award as a percentage of target performance shares	200.00%
Shares granted (in shares)	187,924
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Maximum actual number of shares underlying each performance share award as a percentage of target performance shares	200.00%
Shares granted (in shares)	194,486
2008 Equity Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum number of shares authorized for issuance under stock-based compensation plans (in shares)	14,000,000

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Leases - Lease Maturities (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Operating Leases
2020	$ 126,235
2021	113,033
2022	104,907
2023	101,547
2024	75,510
Thereafter	417,122
Total lease payments	938,354
Less: Interest	(239,737)
Present value of lease liabilities	698,617
Finance Leases
2020	43,793
2021	46,726
2022	23,801
2023	12,539
2024	12,528
Thereafter	405,756
Total lease payments	545,143
Less: Interest	(314,885)
Present value of lease liabilities	$ 230,258
Future minimum lease payments under noncancelable operating leases
2019		$ 67,682
2020		64,237
2021		56,142
2022		52,759
2023		52,522
Thereafter		383,974
Total lease payments		$ 677,316

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Retirement Plan (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Retirement Benefits [Abstract]
Non-elective annual employer contribution, percentage of participants' eligible earnings	3.00%
Pension expenses	$ 21.2	$ 18.9	$ 17.4

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Stock-Based Employee Compensation (Options Activity) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Number of Options
Outstanding, beginning balance (in shares)	153,093
Granted (in shares)	0
Exercised (in shares)	(87,262)
Canceled (in shares)	(844)
Outstanding, ending balance (in shares)	64,987	153,093
Vested at December 31, 2019 (in shares)	64,987
Options Exercisable at December 31, 2019 (in shares)	64,987
Weighted-Average Exercise Price
Outstanding, beginning balance (in dollars per share)	$ 29.06
Granted (in dollars per share)	0
Exercised (in dollars per share)	19.96
Canceled (in dollars per share)	33.73
Outstanding, ending balance (in dollars per share)	41.22	$ 29.06
Vested at December 31, 2019 (in dollars per share)	41.22
Options Exercisable at December 31, 2019 (in dollars per share)	$ 41.22
Weighted-Average Remaining Contractual Term
Outstanding (Years)	10 months 13 days	1 year 2 months 23 days
Vested at December 31, 2019 (Years)	10 months 13 days
Options Exercisable at December 31, 2019 (Years)	10 months 13 days
Aggregate Intrinsic Value
Outstanding	$ 5,990,000	$ 10,399,000
Vested at December 31, 2019	5,990,000
Options Exercisable at December 31, 2019	5,990,000
Total intrinsic value of stock options exercised	8,100,000	$ 11,100,000	$ 4,500,000
Total unrecognized compensation cost	$ 0

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Leases - Supplemental Balance Sheet Information (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Finance lease right-of-use assets, net:
Property and equipment, gross	$ 376,159
Accumulated depreciation	(57,955)
Property and equipment, net	318,204
Operating lease right-of-use assets	687,555
Total lease assets	1,005,759
Finance lease liabilities:
Current portion of debt	33,561
Long-term debt	196,697
Total finance lease liabilities	230,258
Operating lease liabilities:
Current portion of operating lease liabilities	96,976
Long-term operating lease liabilities	601,641
Total operating lease liabilities	698,617
Total lease liabilities	$ 928,875

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Business Combination (Purchase Price Allocation) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Jul. 31, 2018 USD ($) ships	Dec. 31, 2017 USD ($)
Assets
Goodwill	$ 1,385,644	$ 1,378,353		$ 288,512
Goodwill, measurement period adjustments	(5,224)
Liabilities
Cash held as collateral			$ 32,000
Silversea Cruises
Assets
Cash and cash equivalents	103,865		103,865
Cash and cash equivalents, measurement period adjustments	0
Trade and other receivables, net	7,163		7,163
Trade and other receivables, net, measurement period adjustments	0
Inventories	18,331		18,331
Inventories, measurement period adjustments	0
Prepaid expenses and other assets	120,496		120,496
Prepaid expenses and other assets, measurement period adjustments	0
Derivative financial instruments	2,886		2,886
Derivative financial instruments, measurement period adjustments	0
Property and equipment, net	1,114,270		1,114,270
Property and equipment, net, measurement period adjustments	0
Goodwill	1,084,786		1,090,010
Goodwill, measurement period adjustments	(5,224)
Other assets	498,457		498,457
Other assets, measurement period adjustments	0
Total assets acquired	2,950,254		2,955,478
Total assets acquired, measurement period adjustments	(5,224)
Liabilities
Current portion of long-term debt	26,851		26,851
Current portion of long-term debt, measurement period adjustments	0
Accounts payable	36,960		36,960
Accounts payable, measurement period adjustments	0
Customer deposits	453,798		453,798
Customer deposits, measurement period adjustments	0
Long-term debt	727,935		727,935
Long-term debt, measurement period adjustments	0
Other long-term liabilities	23,860		23,860
Other long-term liabilities, measurement period adjustments	0
Total liabilities assumed	1,348,484		1,353,708
Total liabilities assumed, measurement period adjustments	(5,224)
Redeemable noncontrolling interest	537,770		537,770
Redeemable noncontrolling interest, measurement period adjustments	0
Total purchase price	1,064,000		$ 1,064,000
Total purchase price, measurement period adjustments	0
Number of ships under capital leases | ships			2
Capital leases assets			$ 156,000
Intangible assets			494,600
Silversea Cruises | Accrued interest
Liabilities
Current liabilities, other	1,773		1,773
Current liabilities, other, measurement period adjustments	0
Silversea Cruises | Accrued expenses and other liabilities
Liabilities
Current liabilities, other	77,307		$ 82,531
Current liabilities, other, measurement period adjustments	$ (5,224)

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Goodwill (Narrative) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Goodwill [Line Items]
Impairment charge		$ 0	$ 0
Royal Caribbean International
Goodwill [Line Items]
Impairment charge	$ 0
Silversea Cruises
Goodwill [Line Items]
Impairment charge	$ 0

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Property and Equipment (Schedule of Property and Equipment) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment [Abstract]
Ships	$ 28,348,088	$ 27,209,553
Ship improvements	3,920,800	2,965,634
Ships under construction	1,110,962	817,800
Land, buildings and improvements, including leasehold improvements and port facilities	472,067	321,136
Computer hardware and software, transportation equipment and other	1,698,007	1,120,988
Total property and equipment	35,549,924	32,435,111
Less-accumulated depreciation and amortization	(10,083,116)	(8,968,948)
Property and equipment, net	$ 25,466,808	$ 23,466,163

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Commitment and Contingencies (Future Commitments) (Details)	Dec. 31, 2019 berth
Long-term Purchase Commitment [Line Items]
Ship passenger capacity berths	55,300
Royal Caribbean International | Wonder of the Seas
Long-term Purchase Commitment [Line Items]
Ship passenger capacity berths	5,700
Royal Caribbean International | Oasis-class ship
Long-term Purchase Commitment [Line Items]
Ship passenger capacity berths	5,700
Royal Caribbean International | Odyssey of the Seas
Long-term Purchase Commitment [Line Items]
Ship passenger capacity berths	4,200
Royal Caribbean International | Icon Class, Unnamed Ship One
Long-term Purchase Commitment [Line Items]
Ship passenger capacity berths	5,600
Royal Caribbean International | Icon Class, Unnamed Ship Two
Long-term Purchase Commitment [Line Items]
Ship passenger capacity berths	5,600
Royal Caribbean International | Third Icon Class Ship
Long-term Purchase Commitment [Line Items]
Ship passenger capacity berths	5,600
Celebrity Cruises | Celebrity Apex
Long-term Purchase Commitment [Line Items]
Ship passenger capacity berths	2,900
Celebrity Cruises | Edge Class, Unnamed
Long-term Purchase Commitment [Line Items]
Ship passenger capacity berths	3,250
Silversea Cruises | Silver Origin
Long-term Purchase Commitment [Line Items]
Ship passenger capacity berths	100
Silversea Cruises | Silver Moon
Long-term Purchase Commitment [Line Items]
Ship passenger capacity berths	550
Silversea Cruises | Silver Dawn
Long-term Purchase Commitment [Line Items]
Ship passenger capacity berths	550
Silversea Cruises | Evolution Class, Unnamed Ship One
Long-term Purchase Commitment [Line Items]
Ship passenger capacity berths	600
Silversea Cruises | Evolution Class, Unnamed Ship Two
Long-term Purchase Commitment [Line Items]
Ship passenger capacity berths	600
TUI Cruises | Mein Schiff 7
Long-term Purchase Commitment [Line Items]
Ship passenger capacity berths	2,900
TUI Cruises | TUI Cruises, Unnamed Ship One
Long-term Purchase Commitment [Line Items]
Ship passenger capacity berths	4,100
TUI Cruises | TUI Cruises, Unnamed Ship Two
Long-term Purchase Commitment [Line Items]
Ship passenger capacity berths	4,100

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Fair Value Measurements and Derivative Instruments (Recurring) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Liabilities:
Contingent consideration expense	$ 18,400	$ 0	$ 0
Fair Value, Measurements, Recurring | Total Fair Value
Assets:
Derivative financial instruments	39,994	65,297
Total Assets	39,994	65,297
Liabilities:
Derivative financial instruments	257,728	201,812
Contingent consideration	62,400	44,000
Total Liabilities	320,128	245,812
Fair Value, Measurements, Recurring | Level 1
Assets:
Derivative financial instruments	0	0
Total Assets	0	0
Liabilities:
Derivative financial instruments	0	0
Contingent consideration	0	0
Total Liabilities	0	0
Fair Value, Measurements, Recurring | Level 2
Assets:
Derivative financial instruments	39,994	65,297
Total Assets	39,994	65,297
Liabilities:
Derivative financial instruments	257,728	201,812
Contingent consideration	0	0
Total Liabilities	257,728	201,812
Fair Value, Measurements, Recurring | Level 3
Assets:
Derivative financial instruments	0	0
Total Assets	0	0
Liabilities:
Derivative financial instruments	0	0
Contingent consideration	62,400	44,000
Total Liabilities	$ 62,400	$ 44,000

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Fair Value Measurements and Derivative Instruments (Non-Derivative Instruments) (Details) - Foreign currency debt $ in Thousands, € in Millions	12 Months Ended
	Dec. 31, 2019 EUR (€)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 EUR (€)	Dec. 31, 2018 USD ($)
Net investment hedge
Carrying Value of Non-derivative instrument Designated as hedging instrument		$ 358,078		$ 320,152
Current portion of long-term debt
Net investment hedge
Carrying Value of Non-derivative instrument Designated as hedging instrument		73,572		38,168
Long-term debt
Net investment hedge
Carrying Value of Non-derivative instrument Designated as hedging instrument		284,506		281,984
Pullmantur and TUI Cruises
Net investment hedge
Carrying Value of Non-derivative instrument Designated as hedging instrument	€ 319.0	$ 358,100	€ 280.0	$ 320,200

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Label	Element	Value
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ (23,476,000)
Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ (23,476,000)

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Fair Value Measurements and Derivative Instruments (Non-Derivative Net Investment) (Details) - Foreign currency debt - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Net investment hedge
Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss)	$ 6,111	$ 13,210
Amount of Gain (Loss) Recognized In Other Comprehensive Income (Loss)			$ (38,971)

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Other Assets (Notes Receivable Due From Equity Investments) (Details) - Equity Investment - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total notes receivable due from equity investments	$ 184,558	$ 201,979
Less-current portion	25,933	19,075
Long-term portion	$ 158,625	$ 182,904

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Debt (Narrative) (Details)	1 Months Ended				12 Months Ended
	Sep. 30, 2019	Aug. 31, 2019 USD ($)	Apr. 30, 2019 USD ($)	Jun. 30, 2018 USD ($)	Dec. 31, 2019 USD ($) ship	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	May 31, 2019 USD ($)	Mar. 31, 2019 USD ($)	Jul. 31, 2018 USD ($)	Nov. 30, 2017 USD ($)	Nov. 30, 2017 EUR (€)
Long-Term Debt
Loss on extinguishment of debt					$ 6,326,000	$ 0	$ 0
Short-term debt amount outstanding		$ 2,900,000,000		$ 1,200,000,000
Silversea Cruises
Long-Term Debt
Long term debt, principal amount			$ 700,000,000
Unsecured Term Loans Guaranteed by Export Credit Agencies | Maximum
Long-Term Debt
Credit agency fees, percentage of outstanding loan balance					0.77%
Revolving Credit Facility
Long-Term Debt
Long term debt, facility fee (as a percent)					0.125%
Revolving Credit Facility | $1.4 billion unsecured revolving credit facility
Long-Term Debt
Long term debt, principal amount			1,700,000,000						$ 1,400,000,000
Long term debt, facility fee (as a percent)					0.125%
Revolving Credit Facility | $1.15 billion unsecured revolving credit facility
Long-Term Debt
Long term debt, principal amount					$ 1,200,000,000			$ 1,150,000,000
Revolving Credit Facility | LIBOR | $1.4 billion unsecured revolving credit facility
Long-Term Debt
Margin on floating rate base (as a percent)					1.00%
Loans Payable
Long-Term Debt
Loss on extinguishment of debt					$ 6,300,000
Loans Payable | Term Loan
Long-Term Debt
Long term debt, principal amount			1,000,000,000.0
Loans Payable | LIBOR | Term Loan
Long-Term Debt
Margin on floating rate base (as a percent)					1.075%
Unsecured term loans | Minimum
Long-Term Debt
Long term debt, stated interest rate (as a percent)					2.53%
Unsecured term loans | Maximum
Long-Term Debt
Long term debt, stated interest rate (as a percent)					5.41%
Unsecured term loans | Novation Agreement
Long-Term Debt
Maximum borrowing capacity			$ 908,000,000.0
Debt instrument, term			12 years
Long term debt, stated interest rate (as a percent)			3.45%
Unsecured term loans | Unsecured Term Loan Facility
Long-Term Debt
Long term debt, principal amount											$ 89,800,000	€ 80,000,000.0
Unsecured term loans | Euro Interbank Offered Rate (EURIBOR) | Unsecured Term Loan Facility
Long-Term Debt
Margin on floating rate base (as a percent)					1.195%
Senior notes | Minimum
Long-Term Debt
Long term debt, stated interest rate (as a percent)					2.65%
Senior notes | Maximum
Long-Term Debt
Long term debt, stated interest rate (as a percent)					7.50%
Up-front payment arrangement | Minimum
Long-Term Debt
Credit agency fees, percentage of loan amount payable					2.35%
Up-front payment arrangement | Maximum
Long-Term Debt
Credit agency fees, percentage of loan amount payable					2.37%
Silversea Cruises
Long-Term Debt
Number of ships under finance leases | ship					2
Finance lease obligation										$ 82,800,000
Silversea Cruises | Silversea Cruises
Long-Term Debt
Long term debt, principal amount										$ 700,000,000
Euler Hermes | Unsecured term loans
Long-Term Debt
Percentage of unsecured term loan guaranteed by an export credit agency	95.00%
Euler Hermes | Unsecured term loans | Novation Agreement
Long-Term Debt
Percentage of unsecured term loan guaranteed by an export credit agency			95.00%
Commercial paper
Long-Term Debt
Debt instrument, term					21 days	23 days
Borrowings outstanding					$ 1,400,000,000	$ 777,000,000.0
Weighted average interest rate					2.19%	3.19%
Maritime Equipment
Long-Term Debt
Number of ships under finance leases | ship					2
Additional lease term					6 years

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Fair Value Measurements and Derivative Instruments (Income Statement Hedging Instruments) (Details) - Fair value hedging - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements
Amount of Gain (Loss) Recognized in Income on Derivative	$ 16,607	$ (8,854)	$ (132)
Amount of Gain (Loss) Recognized in Income on Hedged Item	(23,464)	4,673	6,065
Interest rate swaps | Interest expense, net of interest capitalized
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements
Amount of Gain (Loss) Recognized in Income on Derivative	16,607	(8,854)	3,007
Amount of Gain (Loss) Recognized in Income on Hedged Item	(23,464)	4,673	0
Interest rate swaps | Other income (expense)
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements
Amount of Gain (Loss) Recognized in Income on Derivative	0	0	(3,139)
Amount of Gain (Loss) Recognized in Income on Hedged Item	$ 0	$ 0	$ 6,065

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Quarterly Selected Financial Data (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2019

Quarterly Financial Information Disclosure [Abstract]

Quarterly Selected Financial Data

	(In thousands, except per share data)
	First Quarter				Second Quarter				Third Quarter				Fourth Quarter
	2019		2018		2019		2018		2019		2018		2019		2018
Total revenues(1)	$	2,439,767	$	2,027,756	$	2,806,631	$	2,337,605	$	3,186,850	$	2,796,187	$	2,517,413	$	2,332,301
Operating income	$	318,831	$	274,146	$	573,653	$	456,895	$	890,792	$	799,733	$	299,425	$	364,027
Net Income attributable to Royal Caribbean Cruises Ltd.	$	249,681	$	218,653	$	472,830	$	466,295	$	883,240	$	810,391	$	273,136	$	315,703
Earnings per share
Basic	$	1.19	$	1.03	$	2.26	$	2.20	$	4.21	$	3.88	$	1.31	$	1.51
Diluted	$	1.19	$	1.02	$	2.25	$	2.19	$	4.20	$	3.86	$	1.30	$	1.50
Dividends declared per share	$	0.70	$	0.60	$	0.70	$	0.60	$	0.78	$	0.70	$	0.78	$	0.70

___________________________________________________________________

(1)Our revenues are seasonal based on the demand for cruises. Demand is strongest for cruises during the Northern Hemisphere's summer months and holidays.

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Changes in Accumulated Other Comprehensive Income (Loss) (Tables)

12 Months Ended

Dec. 31, 2019

Other Comprehensive Income (Loss), Net of Tax [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

The following table presents the changes in accumulated other comprehensive loss by component for the years ended December 31, 2019, 2018 and 2017 (in thousands):

	Changes related to cash flow derivative hedges		Changes in defined benefit plans		Foreign currency translation adjustments		Accumulated other comprehensive (loss) income
Accumulated comprehensive loss at January 1, 2017	$	(820,850)	$	(28,083)	$	(67,551)	$	(916,484)
Other comprehensive income (loss) before reclassifications	381,865		(6,755)		17,307		392,417
Amounts reclassified from accumulated other comprehensive loss	188,630		1,172		—		189,802
Net current-period other comprehensive income (loss)	570,495		(5,583)		17,307		582,219
Accumulated comprehensive loss at January 1, 2018	(250,355)		(33,666)		(50,244)		(334,265)
Other comprehensive income (loss) before reclassifications	(297,994)		6,156		(14,251)		(306,089)
Amounts reclassified from accumulated other comprehensive loss	11,133		1,487		—		12,620
Net current-period other comprehensive (loss) income	(286,861)		7,643		(14,251)		(293,469)
Accumulated comprehensive loss at January 1, 2019	(537,216)		(26,023)		(64,495)		(627,734)
Other comprehensive (loss) income before reclassifications	(146,108)		(20,314)		869		(165,553)
Amounts reclassified from accumulated other comprehensive loss	(5,205)		779		—		(4,426)
Net current-period other comprehensive (loss) income	(151,313)		(19,535)		869		(169,979)
Accumulated comprehensive loss at December 31, 2019	$	(688,529)	$	(45,558)	$	(63,626)	$	(797,713)

Reclassification out of Accumulated Other Comprehensive Income

The following table presents reclassifications out of accumulated other comprehensive loss for the years ended December 31, 2019, 2018 and 2017 (in thousands):

	Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income
Details about Accumulated Other Comprehensive Loss Components	Year Ended December 31, 2019		Year Ended December 31, 2018		Year Ended December 31, 2017		Affected Line Item in Statements of Comprehensive Income (Loss)
Gain (loss) on cash flow derivative hedges:
Interest rate swaps	(4,289)		(10,931)		(31,603)		Interest expense, net of interest capitalized
Foreign currency forward contracts	(14,063)		(12,843)		(10,840)		Depreciation and amortization expenses
Foreign currency forward contracts	(5,080)		12,855		(9,472)		Other income (expense)
Foreign currency forward contracts	—		—		—		Other indirect operating expenses
Foreign currency collar options	—		—		(2,408)		Depreciation and amortization expenses
Fuel swaps	(1,292)		(1,580)		7,382		Other income (expense)
Fuel swaps	29,929		1,366		(141,689)		Fuel
	5,205		(11,133)		(188,630)
Amortization of defined benefit plans:
Actuarial loss	(779)		(1,487)		(1,172)		Payroll and related
	(779)		(1,487)		(1,172)
Total reclassifications for the period	$	4,426	$	(12,620)	$	(189,802)

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Total revenues	$ 10,950,661	$ 9,493,849	$ 8,777,845
Cruise operating expenses:
Total cruise operating expenses	6,062,765	5,262,207	4,896,579
Marketing, selling and administrative expenses	1,559,253	1,303,144	1,186,016
Depreciation and amortization expenses	1,245,942	1,033,697	951,194
Operating Income	2,082,701	1,894,801	1,744,056
Other income (expense):
Interest income	26,945	32,800	30,101
Interest expense, net of interest capitalized	(408,513)	(333,672)	(299,982)
Equity investment income	230,980	210,756	156,247
Other (expense) income	(24,513)	11,107	(5,289)
Total other income (expense)	(175,101)	(79,009)	(118,923)
Net Income	1,907,600	1,815,792	1,625,133
Less: Net Income attributable to noncontrolling interest	28,713	4,750	0
Net Income attributable to Royal Caribbean Cruises Ltd.	$ 1,878,887	$ 1,811,042	$ 1,625,133
Earnings per Share:
Basic (in dollars per share)	$ 8.97	$ 8.60	$ 7.57
Diluted (in dollars per share)	$ 8.95	$ 8.56	$ 7.53
Comprehensive Income (Loss)
Net Income	$ 1,907,600	$ 1,815,792	$ 1,625,133
Other comprehensive (loss) income:
Foreign currency translation adjustments	869	(14,251)	17,307
Change in defined benefit plans	(19,535)	7,643	(5,583)
(Loss) gain on cash flow derivative hedges	(151,313)	(286,861)	570,495
Total other comprehensive (loss) income	(169,979)	(293,469)	582,219
Comprehensive Income	1,737,621	1,522,323	2,207,352
Less: Comprehensive Income attributable to noncontrolling interest	28,713	4,750	0
Comprehensive Income attributable to Royal Caribbean Cruises Ltd.	1,708,908	1,517,573	2,207,352
Passenger ticket revenues
Total revenues	7,857,057	6,792,716	6,313,170
Onboard and other revenues
Total revenues	3,093,604	2,701,133	2,464,675
Cruise operating expenses:
Total cruise operating expenses	639,782	537,355	495,552
Commissions, transportation and other
Cruise operating expenses:
Total cruise operating expenses	1,656,297	1,433,739	1,363,170
Payroll and related
Cruise operating expenses:
Total cruise operating expenses	1,079,121	924,985	852,990
Food
Cruise operating expenses:
Total cruise operating expenses	583,905	520,909	492,857
Fuel
Cruise operating expenses:
Total cruise operating expenses	697,962	710,617	681,118
Other operating
Cruise operating expenses:
Total cruise operating expenses	$ 1,405,698	$ 1,134,602	$ 1,010,892

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Retirement Plan	12 Months Ended
	Dec. 31, 2019
Retirement Benefits [Abstract]
Retirement Plan	Retirement PlanWe maintain a defined contribution plan covering shoreside employees. Effective January 1, 2016, we commenced annual, non-elective contributions to the plan on behalf of all eligible participants equal to 3% of participants' eligible earnings. Remaining annual contributions to the plan are discretionary and are based on fixed percentages of participants' salaries and years of service, not to exceed certain maximums. Contribution expenses were $21.2 million, $18.9 million and $17.4 million for the years ended December 31, 2019, 2018 and 2017, respectively.

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Commitments and Contingencies

12 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Ship Purchase Obligations

Our future capital commitments consist primarily of new ship orders. As of December 31, 2019, we had one Quantum-class ship, two Oasis-class ships and three ships of a new generation, known as our Icon-class, on order for our Royal Caribbean International brand with an aggregate capacity of approximately 32,400 berths. As of December 31, 2019, we had three Edge-class ships on order for our Celebrity brand with an aggregate capacity of approximately 9,400 berths. Additionally as of December 31, 2019, we had five ships on order with an aggregate capacity of approximately 2,400 berths for our Silversea Cruises brand. The following provides further information on recent developments with respect to our ship orders.

During 2017, we entered into credit agreements for the unsecured financing of the two Icon-class ships for up to 80% of each ship’s contract price. For each ship, the official Finnish export credit agency, Finnvera plc, has agreed to guarantee 100% of a substantial majority of the financing to the lenders, with a smaller portion of the financing to be 95% guaranteed by Euler Hermes, the official German export credit agency. The maximum loan amount under each facility is not to exceed €1.4 billion, or approximately $1.6 billion, based on the exchange rate at December 31, 2019. Interest on approximately 75% of each loan will accrue at a fixed rate of 3.56% and 3.76% for the first and the second Icon-class ships, respectively, and the balance will accrue interest at a floating rate ranging from LIBOR plus 1.10% to 1.15% and LIBOR plus 1.15% to 1.20% for the first and the second Icon-class ships, respectively. Each loan will amortize semi-annually and will mature 12 years following delivery of each ship. The first and second Icon-class ships will each have a capacity of approximately 5,600 berths and are expected to enter service in the second quarters of 2022 and 2024, respectively.

During 2017, we entered into credit agreements for the unsecured financing of the third and fourth Edge-class ships and the fifth Oasis-class ship for up to 80% of each ship’s contract price through facilities to be guaranteed 100% by Bpifrance Assurance Export, the official export credit agency of France. Under these financing arrangements, we have the right, but not the obligation, to satisfy the obligations to be incurred upon delivery and acceptance of each ship under the shipbuilding contract by assuming, at delivery and acceptance, the debt indirectly incurred by the shipbuilder during the construction of each ship. The maximum loan amount under each facility is not to exceed €684.2 million in the case of the third Edge-class ship and the United States dollar equivalent of €714.6 million and €1.1 billion in the case of the fourth Edge-class ship and fifth Oasis-class ship, or approximately $802.1 million and $1.2 billion, respectively, based on the exchange rate at December 31, 2019. The loans will amortize semi-annually and will mature 12 years following delivery of each ship. Interest on the loans will accrue at a fixed rate of 1.28% for the third Edge-class ship and at a fixed rate of 3.18% for both, the fourth Edge-class ship and the fifth Oasis-class ship. The third and fourth Edge-class ships, each of which will have a capacity of approximately 3,250, are expected to enter service in the fourth quarters of 2021 and 2022, respectively. The fifth Oasis-class ship will have a capacity of approximately 5,700 berths and is expected to enter service in the second quarter of 2021.

During 2016, we entered into credit agreements for the unsecured financing of our first two Edge-class ships for up to 80% of each ship’s contract price through facilities to be guaranteed 100% by Bpifrance Assurance Export, the official export credit agency of France. Celebrity Edge, the first Edge-class ship for our Celebrity Cruises brand, entered service in December 2018. For further information on the financing agreement for this ship, refer to Note 9. Debt. The second Edge-class ship will have a capacity of approximately 2,900 berths and is expected to enter service in the first quarter of 2020. Under the financing arrangement for the second Edge-class ship, we have the right, but not the obligation, to satisfy the obligations to be incurred upon delivery and acceptance of the vessel under the shipbuilding contract by assuming, at delivery and acceptance, the debt indirectly incurred by the shipbuilder during the construction of the ship. The maximum loan amount under the facility for the second Edge-class ship delivery is not to exceed the United States dollar equivalent of €627.1 million, or approximately $704.0 million, respectively, based on the exchange rate at December 31, 2019. The loan will amortize semi-annually and will mature 12 years following delivery of the ship. Interest on the loan will accrue at a fixed rate of 3.23%.

During 2015, we entered into a credit agreement for the unsecured financing of the fifth Quantum-class ship for up to 80% of the ship’s contract price, through a facility to be guaranteed 95% by Euler Hermes, official export credit agency of Germany. Hermes has agreed to guarantee to the lender payment of 95% of the financing. The ship will have a capacity of approximately 4,200 berths and is expected to enter service in the fourth quarter of 2020. This credit agreement makes available to us an unsecured term loan in an amount up to the United States dollar equivalent of €777.5 million, or approximately $872.7 million, based on the exchange rate at December 31, 2019. The loan will amortize semi-annually and will mature 12 years following delivery of the ship. At our election, prior to delivery of the ship, interest on the loans will accrue either (1) at a fixed rate of 3.45% (inclusive of the applicable margin) or (2) at a floating rate equal to LIBOR plus 0.95%.

Our future capital commitments consist primarily of new ship orders. As of December 31, 2019, our Global Brands have the following ships on order:

Ship	Shipyard	Expected to Enter Service	Approximate Berths
Royal Caribbean International —
Oasis-class:
Wonder of the Seas	Chantiers de l’Atlantique	2nd Quarter 2021	5,700
Unnamed	Chantiers de l’Atlantique	4th Quarter 2023	5,700
Quantum-class:
Odyssey of the Seas	Meyer Werft	4th Quarter 2020	4,200
Icon-class:
Unnamed	Meyer Turku Oy	2nd Quarter 2022	5,600
Unnamed	Meyer Turku Oy	2nd Quarter 2024	5,600
Unnamed	Meyer Turku Oy	2nd Quarter 2025	5,600
Celebrity Cruises —
Edge-class:
Celebrity Apex	Chantiers de l’Atlantique	2nd Quarter 2020	2,900
Celebrity Beyond	Chantiers de l’Atlantique	4th Quarter 2021	3,250
Unnamed	Chantiers de l’Atlantique	4th Quarter 2022	3,250
Silversea Cruises — (1)
Silver Origin	De Hoop	3rd Quarter 2020	100
Muse-class:
Silver Moon	Fincantieri	3rd Quarter 2020	550
Silver Dawn	Fincantieri	3rd Quarter 2021	550
Evolution-class:
Unnamed	Meyer Werft	1st Quarter 2022	600
Unnamed	Meyer Werft	1st Quarter 2023	600
TUI Cruises (50% joint venture) —
Mein Schiff 7	Meyer Turku Oy	2nd Quarter 2023	2,900
Unnamed	Fincantieri	3rd Quarter 2024	4,100
Unnamed	Fincantieri	1st Quarter 2026	4,100
Total Berths			55,300

(1) The revenue impact from Silversea Cruises' new ships will be recognized on a three month reporting lag from the "Expected to Enter Service" dates above. Refer to Note 1. General to our consolidated financial statements under Item 8. Financial Statements and Supplementary Data for further information.

In June 2019, Silversea Cruises entered into a $300 million unsecured term loan facility for the financing of Silver Moon to pay a portion of the ship's contract price through a facility guaranteed by us. We expect to draw upon this loan when we take delivery of the ship. The loan will be due and payable at maturity in June 2028. Interest on the loan will accrue at LIBOR plus 1.50%.

In September 2019, Silversea Cruises entered into two credit agreements, guaranteed by us, for the unsecured financing of the first and second Evolution-class ships for an amount of up to 80% of each ship's contract price through facilities to be guaranteed 95% by Euler Hermes, the official export credit agency of Germany. The maximum loan amount under each facility is not to exceed the United States dollar equivalent of €351.6 million in the case of the first Evolution-class ship and €359.0 million in the case of the second Evolution-class ship, or approximately $394.7 million and $403.0 million, respectively, based on the exchange rate at December 31, 2019. Each loan, once funded, will amortize semi-annually and will mature 12 years following the delivery of each ship.  At our election, interest on each loan will accrue either (1) at a fixed rate of 4.14% and 4.18%, respectively (inclusive of the applicable margin) or (2) at a floating rate equal to LIBOR plus 0.79% and 0.83%, respectively. The first and second Evolution-class ships will each have a capacity of approximately 600 berths and are scheduled for delivery in the first quarters of 2022 and 2023, respectively.

In December 2019, we entered into a credit agreement for the unsecured financing of the sixth Oasis-class ship for up to 80% of the ship’s contract price through a facility to be guaranteed 100% by Bpifrance Assurance Export, the official export credit agency of France. Under the financing arrangement, we have the right, but not the obligation, to satisfy the obligations to be incurred upon delivery and acceptance of the ship under the shipbuilding contract by assuming, at delivery and acceptance, the debt indirectly incurred by the shipbuilder during the construction of the ship. The maximum loan amount under the facility is not to exceed the United States dollar equivalent of €1.3 billion, or approximately $1.5 billion based on the exchange rate at December 31, 2019. The loan will amortize semi-annually and will mature 12 years following delivery of the ship. Interest on the loan will accrue at a fixed rate of 3.00% (inclusive of margin). The sixth Oasis-class ship will have a capacity of approximately 5,700 berths and is scheduled for delivery in the fall of 2023.

In December 2019, we entered into a credit agreement for the unsecured financing of the third Icon-class ship for up to 80% of the ship’s contract price. Finnvera plc, the official export credit agency of Finland, has agreed to guarantee 95% of the substantial majority of the financing, with a smaller portion of the financing to be 95% guaranteed by Euler Hermes, the official German export credit agency. The maximum loan amount under the facility is not to exceed the United States dollar equivalent of €1.4 billion, or approximately $1.6 billion based on the exchange rate at December 31, 2019. The loan, once funded, will amortize semi-annually and will mature 12 years following the delivery of the ship. Approximately 60% of the loan will accrue interest at a fixed rate of 3.29%. The balance of the loan will accrue interest at a floating rate of LIBOR plus 0.85%. The third Icon-class ship will have a capacity of approximately 5,600 berths and is scheduled for delivery in the second quarter of 2025.

As of December 31, 2019, the aggregate cost of our ships on order, not including any ships on order by our Partner Brands and the Silversea Cruises ships that remain contingent upon final documentation and financing, was approximately $14.8 billion, of which we had deposited $881.5 million as of such date. Approximately 65.9% of the aggregate cost was exposed to fluctuations in the Euro exchange rate at December 31, 2019. Refer to Note 18. Fair Value Measurements and Derivative Instruments for further information.

In addition, as of December 31, 2019, we have an agreement in place with Chantiers de l’Atlantique to build an additional Edge-class ship for delivery in the 4th quarter of 2024, which is contingent upon completion of conditions precedent and financing.

Litigation

On August 27, 2019, two lawsuits were filed against Royal Caribbean Cruises Ltd. in the U.S. District Court for the Southern District of Florida under Title III of the Cuban Liberty and Democratic Solidarity Act, also known

as the Helms-Burton Act. The complaint filed by Havana Docks Corporation alleges it holds an interest in the Havana Cruise Port Terminal and the complaint filed by Javier Garcia-Bengochea alleges that he holds an interest in the Port of Santiago, Cuba, both of which were expropriated by the Cuban Government. The complaints further allege that Royal Caribbean Cruises Ltd. trafficked in those properties by embarking and disembarking passengers at these facilities. The plaintiffs seek all available statutory remedies, including the value of the expropriated property, plus interest, treble damages, attorneys’ fees and costs. Royal Caribbean Cruises Ltd. filed its answer to each complaint on October 4, 2019. We believe we have meritorious defenses to the claims, and we intend to vigorously defend ourselves against them. We believe that it is unlikely that the outcome of these matters will have a material adverse impact to our financial condition, results of operations or cash flows. However, the outcome of litigation is inherently unpredictable and subject to significant uncertainties, and there can be no assurances that the final outcome of this case will not be material.

We are routinely involved in other claims typical within the travel and tourism 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.

At December 31, 2019, we have future commitments to pay for our usage of certain port facilities, marine consumables, services and maintenance contracts as follows (in thousands):

Year
2020	$	202,879
2021	137,840
2022	57,096
2023	14,596
2024	8,760
Thereafter	34,233
	$	455,404

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CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Treasury Stock
Balance at Dec. 31, 2016	$ 9,121,412	$ 2,346	$ 3,328,517	$ 7,860,341	$ (916,484)	$ (1,153,308)
Increase (Decrease) in Stockholders' Equity
Activity related to employee stock plans	61,606	6	61,600
Common stock dividends	(463,069)			(463,069)
Changes related to cash flow derivative hedges	570,495				570,495
Change in defined benefit plans	(5,583)				(5,583)
Foreign currency translation adjustments	17,307				17,307
Purchases of treasury stock	(224,998)					(224,998)
Net Income	1,625,133			1,625,133
Balance at Dec. 31, 2017	10,702,303	2,352	3,390,117	9,022,405	(334,265)	(1,378,306)
Increase (Decrease) in Stockholders' Equity
Activity related to employee stock plans	30,789	6	30,783
Common stock dividends	(546,689)			(546,689)
Changes related to cash flow derivative hedges	(286,861)				(286,861)
Change in defined benefit plans	7,643				7,643
Foreign currency translation adjustments	(14,251)				(14,251)
Purchases of treasury stock	(575,039)					(575,039)
Net Income	1,811,042			1,811,042
Balance at Dec. 31, 2018	11,105,461	2,358	3,420,900	10,263,282	(627,734)	(1,953,345)
Increase (Decrease) in Stockholders' Equity
Activity related to employee stock plans	67,902	7	73,059			(5,164)
Common stock dividends	(618,843)			(618,843)
Changes related to cash flow derivative hedges	(151,313)				(151,313)
Change in defined benefit plans	(19,535)				(19,535)
Foreign currency translation adjustments	869				869
Purchases of treasury stock	(99,582)					(99,582)
Net Income	1,878,887			1,878,887
Balance at Dec. 31, 2019	$ 12,163,846	$ 2,365	$ 3,493,959	$ 11,523,326	$ (797,713)	$ (2,058,091)

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Goodwill

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

Goodwill

The carrying amount of goodwill attributable to our Royal Caribbean International, Celebrity Cruises and Silversea Cruises reporting units and the changes in such balances during the years ended December 31, 2019 and 2018 were as follows (in thousands):

	Royal Caribbean International		Celebrity Cruises		Silversea Cruises		Total
Balance at December 31, 2017	$	286,880	$	1,632	$	—	$	288,512
Goodwill attributable to the acquisition of Silversea Cruises (1)					1,090,010		1,090,010
Foreign currency translation adjustment	(169)		—		—		(169)
Balance at December 31, 2018	286,711		1,632		1,090,010		1,378,353
Silversea Goodwill adjustment	—		—		(5,224)		(5,224)
Goodwill attributable to the purchase of photo operations onboard our ships (2)	12,518		—		—		12,518
Foreign currency translation adjustment	(3)		—		—		(3)
Balance at December 31, 2019	$	299,226	$	1,632	$	1,084,786	$	1,385,644

___________________________________________________________________

(1)In 2018, we purchased Silversea Cruises. Refer to Note 3. Business Combination for further information.

(2)In 2019, we purchased the photo operations onboard our ships from our previous concessionaire. The acquisition was accounted for as a business purchase combination using the purchase method of accounting which requires the use of fair value measurements. The business combination, including purchase transaction and assets acquired, was immaterial to our consolidated financial statements.

During the fourth quarter of 2019, we performed a qualitative assessment of whether it was more-likely-than-not that our Royal Caribbean International reporting unit's fair value was less than its carrying amount before applying the two-step goodwill impairment test. The qualitative analysis included assessing the impact of certain factors such as general economic conditions, limitations on accessing capital, changes in forecasted operating results, changes in fuel prices and fluctuations in foreign exchange rates. Based on our qualitative assessment, we concluded that it was more-likely-than-not that the estimated fair value of the Royal Caribbean International reporting unit exceeded its carrying value and thus, we did not proceed to the two-step goodwill impairment test. No

indicators of impairment exist primarily because the reporting unit's fair value has consistently exceeded its carrying value by a significant margin and forecasts of operating results generated by the reporting unit appear sufficient to support its carrying value. As a result of our assessment, we did not record an impairment of goodwill for the year ended December 31, 2019.

During the fourth quarter of 2019, we also performed a qualitative assessment of whether it was more-likely-than-not that our Silversea Cruises reporting unit's fair value was less than its carrying amount before applying the two-step goodwill impairment test. The qualitative analysis included assessing the impact of certain factors such as general economic conditions, limitations on accessing capital, changes in forecasted operating results, changes in fuel prices and fluctuations in foreign exchange rates. Based on our qualitative assessment, we concluded that it was more-likely-than-not that the estimated fair value of the Silversea Cruises reporting unit exceeded its carrying value and thus, we did not proceed to the two-step goodwill impairment test. No indicators of impairment exist primarily because forecasted operating results of the reporting unit appear sufficient to support its carrying value. As a result of our assessment, we did not record an impairment of goodwill for the year ended December 31, 2019.

For the years ended December 31, 2018 and 2017, we did not record an impairment of goodwill for our reporting units.

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Debt

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Debt

Debt

Debt consists of the following (in thousands):

			As of December 31,
	Interest Rate(1)	Maturities Through	2019		2018
Fixed rate debt:
Senior notes	2.65% to 7.50%	2020 - 2028	$	1,746,280	$	1,724,194
Secured senior notes	7.25%	2025	662,398		670,437
Unsecured term loans	2.53% to 5.41%	2021 - 2030	2,806,774		2,148,351
Total fixed rate debt			5,215,452		4,542,982
Variable rate debt:
Unsecured revolving credit facilities(2)	2.79%	2022 - 2024	165,000		795,000
Commercial paper	2.19%	2019	1,434,180		775,488
USD unsecured term loan	2.31% to 5.64%	2019 - 2028	3,519,853		4,005,848
Euro unsecured term loan	1.15% to 1.58%	2021 - 2028	676,740		734,176
Total variable rate debt			5,795,773		6,310,512
Finance lease liabilities			230,258		130,944
Total debt (3)			11,241,483		10,984,438
Less: unamortized debt issuance costs			(206,607)		(206,739)
Total debt, net of unamortized debt issuance costs			11,034,876		10,777,699
Less—current portion including commercial paper			(2,620,766)		(2,422,329)
Long-term portion			$	8,414,110	$	8,355,370

(1)Interest rates based on outstanding loan balance as of December 31, 2019 and, for variable rate debt, include either LIBOR or EURIBOR plus the applicable margin.

(2)Includes $1.7 billion facility due in 2024 and $1.2 billion facility due in 2022, each of which accrue interest at LIBOR plus 1.00%, currently 2.91%, and are subject to a facility fee of 0.125%.

(3)At December 31, 2019 and 2018, the weighted average interest rate for total debt was 3.99% and 4.14%, respectively.

In April 2019, we amended our $1.4 billion unsecured revolving credit facility due in 2020 to extend the termination date through April 2024, increase the facility size to $1.7 billion and reduce pricing. The interest rate and facility fee vary with our senior debt rating and are currently set at LIBOR plus 1.0% per annum and 0.125% per annum, respectively. These amendments did not result in the extinguishment of debt. In addition, in May 2019, we amended our $1.15 billion unsecured revolving credit facility due in 2022 to reduce pricing to match pricing on our $1.7 billion unsecured revolving credit facility due in 2024.

In April 2019, we entered into and drew in full on an unsecured three-year term loan agreement in the amount of $1.0 billion. The loan accrues interest at a floating rate of LIBOR plus an applicable margin, which varies with our senior debt rating, and is currently 1.075% per annum. Proceeds of this loan were used to repay the $700 million 364-day loan due July 2019 related to the acquisition of Silversea Cruises and the remaining balance of the unsecured term loan originally incurred in 2010 to purchase Allure of the Seas. The repayment of these loans resulted in a total loss on the extinguishment of debt of $6.3 million, which was recognized within Other (expense) income within our consolidated statements of comprehensive income (loss) for the twelve months ended December 31, 2019.

In April 2019, we took delivery of Spectrum of the Seas. To finance the purchase, we borrowed $908.0 million under a previously committed unsecured term loan which is 95% guaranteed by Euler Hermes Aktiengesellschaft, the official export credit agency of Germany. The loan amortizes semi-annually over 12 years and bears interest at a fixed rate of 3.45% per annum.

In May 2019, we took delivery of Celebrity Flora. The purchase was financed through an unsecured term loan facility entered into in November 2017 in an amount up to €80.0 million, or approximately $89.8 million based on the exchange rate at December 31, 2019. As of December 31, 2019, we had fully drawn on this facility. The loan is due and payable at maturity in November 2024. Interest on the loan accrues at a floating rate based on EURIBOR plus the applicable margin. The applicable margin varies with our debt rating and was 1.195% as of December 31, 2019.

In June 2018, we established a commercial paper program pursuant to which we may issue short-term unsecured notes from time to time in an aggregate amount of up to $1.2 billion, which was increased to $2.9 billion in August 2019. The commercial paper issued is backstopped by our revolving credit facilities. As of December 31, 2019, we had $1.4 billion of commercial paper notes outstanding with a weighted average interest rate of 2.19% and a weighted average maturity of approximately 21 days. As of December 31, 2018 we had $777.0 million of commercial paper notes outstanding with a weighted average interest rate of 3.19% and a weighted average maturity of approximately 23 days.

Except for Celebrity Flora, 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. In consideration for these guarantees, depending on the financing arrangement, we pay to the applicable export credit agency (1) a fee of 0.77% per annum based on the outstanding loan balance semi-annually over the term of the loan (subject to adjustment based upon our credit ratings) or (2) an upfront fee of 2.35% to 2.37% of the maximum loan amount. We amortize the fees that are paid upfront over the life of the loan and those that are paid semi-annually over each respective payment period. Prior to the loan being drawn, we present these fees within Other assets in our consolidated balance sheets. Once the loan is drawn, such fees are classified as a discount to the related loan, or contra-liability account, within Current portion of long-term debt or Long-term debt. In our consolidated statements of cash flows, we classify these fees within Amortization of debt issuance costs.

Under certain of our agreements, the contractual interest rate, facility fee and/or export credit agency fee vary with our debt rating.

The unsecured senior notes and senior debentures are not redeemable prior to maturity, except that certain series may be redeemed upon the payment of a make-whole premium.

Finance Leases

Silversea Cruises operates two ships, the Silver Whisper and Silver Explorer, under finance leases. The finance lease for the Silver Whisper will expire in 2022, subject to an option to purchase the ship, and the finance lease for the Silver Explorer will expire in 2021, subject to an option to extend the lease for up to an additional six years. The total aggregate amount of the finance lease liabilities recorded for these ships at the acquisition date was $82.8 million. The lease payments on the Silver Whisper are subject to adjustments based on the LIBOR rate. Refer to Note 3. Business Combination for further information regarding the assets acquired and liabilities assumed in the Silversea Cruises acquisition.

Following is a schedule of annual maturities on our total debt net of debt issuance costs, and including capital leases and commercial paper, as of December 31, 2019 for each of the next five years (in thousands):

Year
2020	$	2,620,766
2021	843,906
2022	2,479,303
2023	763,382
2024	723,697
Thereafter	3,603,822
	$	11,034,876

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Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2019

Intangible Assets, Net (Excluding Goodwill) [Abstract]

Schedule of Intangible Assets

The following is a summary of our intangible assets as of December 31, 2019 (in thousands, except weighted average amortization period):

	As of December 31, 2019
	Remaining Weighted Average Amortization Period (Years)	Gross Carrying Value		Accumulated Amortization		Net Carrying Value
Finite-life intangible assets:
Customer relationships	13.8	$	97,400	$	7,576	$	89,824
Galapagos operating license	24.7	47,669		6,010		41,659
Other finite-life intangible assets	0.8	11,560		6,743		4,817
Total finite-life intangible assets		156,629		20,329		136,300
Indefinite-life intangible assets		352,275		—		352,275
Total intangible assets, net		$	508,904	$	20,329	$	488,575

The following is a summary of our intangible assets as of December 31, 2018 (in thousands, except weighted average amortization period):

	As of December 31, 2018
	Remaining Weighted Average Amortization Period (Years)	Gross Carrying Value		Accumulated Amortization		Net Carrying Value
Finite-life intangible assets:
Customer relationships	14.8	$	97,400	$	1,082	$	96,318
Galapagos operating license	25.8	47,669		4,206		43,463
Other finite-life intangible assets	1.8	11,560		963		10,597
Total finite-life intangible assets		156,629		6,251		150,378
Indefinite-life intangible assets		351,725		—		351,725
Total intangible assets, net		$	508,354	$	6,251	$	502,103

Schedule of Future Amortization Expense

The estimated future amortization for finite-life intangible assets for each of the next five years is as follows (in thousands):

Year
2020	$	12,995
2021	$	8,179
2022	$	8,179
2023	$	8,179
2024	$	8,179

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Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Useful Lives of Property and Equipment Used in Computation of Depreciation

	Years
Ships	generally, 30-35
Ship improvements	3-25
Buildings and improvements	10-40
Computer hardware and software	3-10
Transportation equipment and other	3-30
Leasehold improvements	Shorter of remaining lease term or useful life 3-30

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Leases (Tables)

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Schedule of Supplemental Balance Sheet Information

Supplemental balance sheet information for leases was as follows (in thousands):

	As of December 31, 2019
Lease assets:
Finance lease right-of-use assets, net:
Property and equipment, gross	$	376,159
Accumulated depreciation	(57,955)
Property and equipment, net	318,204
Operating lease right-of-use assets	687,555
Total lease assets	$	1,005,759
Lease liabilities:
Finance lease liabilities:
Current portion of debt	$	33,561
Long-term debt	196,697
Total finance lease liabilities	230,258
Operating lease liabilities:
Current portion of operating lease liabilities	96,976
Long-term operating lease liabilities	601,641
Total operating lease liabilities	698,617
Total lease liabilities	$	928,875

Schedule of Lease Expense and Cash Flow Information

The components of lease expense were as follows (in thousands):

	Consolidated Statement of Comprehensive Income (Loss) Classification	Twelve Months Ended December 31, 2019
Lease costs:
Operating lease costs	Commission, transportation and other	$	76,226
Operating lease costs	Other operating expenses	27,868
Operating lease costs	Marketing, selling and administrative expenses	18,837
Finance lease costs:
Amortization of right-of-use-assets	Depreciation and amortization expenses	22,044
Interest on lease liabilities	Interest expense, net of interest capitalized	8,355
Total lease costs		$	153,330

Weighted average of the remaining lease terms and weighted average discount rates are as follows:

	As of December 31, 2019
Weighted average of the remaining lease term
Operating leases	10.3
Finance leases	30.22
Weighted average discount rate
Operating leases	4.65	%
Finance leases	4.47	%

Supplemental cash flow information related to leases is as follows (in thousands):

	Twelve Months Ended December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	125,307
Operating cash flows from finance leases	$	8,355
Financing cash flows from finance leases	$	32,090

Schedule of Maturities, Financing Leases

As of December 31, 2019, maturities related to lease liabilities were as follows (in thousands):

Years	Operating Leases		Finance Leases
2020	$	126,235	$	43,793
2021	113,033		46,726
2022	104,907		23,801
2023	101,547		12,539
2024	75,510		12,528
Thereafter	417,122		405,756
Total lease payments	938,354		545,143
Less: Interest	(239,737)		(314,885)
Present value of lease liabilities	$	698,617	$	230,258

Schedule of Maturities, Operating Leases

As of December 31, 2019, maturities related to lease liabilities were as follows (in thousands):

Years	Operating Leases		Finance Leases
2020	$	126,235	$	43,793
2021	113,033		46,726
2022	104,907		23,801
2023	101,547		12,539
2024	75,510		12,528
Thereafter	417,122		405,756
Total lease payments	938,354		545,143
Less: Interest	(239,737)		(314,885)
Present value of lease liabilities	$	698,617	$	230,258

Under ASC 840, Leases, future minimum lease payments under noncancelable operating leases, primarily for offices, warehouses and motor vehicles, as of December 31, 2018 were as follows (in thousands):

Years
2019	$	67,682
2020	64,237
2021	56,142
2022	52,759
2023	52,522
Thereafter	383,974
	$	677,316

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Intangible Assets (Acquired Intangible Assets) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets	$ 494,560
Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets	$ 97,400
Weighted Average Amortization Period (Years)	15 years
Galapagos operating license
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets	$ 36,100
Weighted Average Amortization Period (Years)	16 years
Other finite-life intangible assets
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets	$ 11,560
Weighted Average Amortization Period (Years)	2 years
Silversea Cruises trade name
Acquired Finite-Lived Intangible Assets [Line Items]
Indefinite-lived intangible assets	$ 349,500

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Summary of Significant Accounting Policies (Useful Lives of Property and Equipment) (Details)	12 Months Ended
	Dec. 31, 2019
Ships | Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	30 years
Ships | Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	35 years
Ship improvements | Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	3 years
Ship improvements | Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	25 years
Buildings and improvements | Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	10 years
Buildings and improvements | Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	40 years
Computer hardware and software | Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	3 years
Computer hardware and software | Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	10 years
Transportation equipment and other | Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	3 years
Transportation equipment and other | Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	30 years
Leasehold improvements | Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	3 years
Leasehold improvements | Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	30 years

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Revenues (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disaggregation of Revenue [Line Items]
Total revenues	$ 2,517,413	$ 3,186,850	$ 2,806,631	$ 2,439,767	$ 2,332,301	$ 2,796,187	$ 2,337,605	$ 2,027,756	$ 10,950,661	$ 9,493,849	$ 8,777,845
Cruise itinerary
Disaggregation of Revenue [Line Items]
Total revenues									10,432,213	9,125,728	8,446,647
Cruise itinerary | North America
Disaggregation of Revenue [Line Items]
Total revenues									6,392,354	5,399,951	5,062,305
Cruise itinerary | Asia/Pacific
Disaggregation of Revenue [Line Items]
Total revenues									1,529,898	1,463,083	1,588,802
Cruise itinerary | Europe
Disaggregation of Revenue [Line Items]
Total revenues									1,942,057	1,914,549	1,509,586
Cruise itinerary | Other regions
Disaggregation of Revenue [Line Items]
Total revenues									567,904	348,145	285,954
Other revenues
Disaggregation of Revenue [Line Items]
Total revenues									$ 518,448	$ 368,121	$ 331,198
Passenger ticket | Other regions
Disaggregation of Revenue [Line Items]
Percentage of revenues by country									26.00%	29.00%	32.00%
Passenger ticket | United States
Disaggregation of Revenue [Line Items]
Percentage of revenues by country									65.00%	61.00%	59.00%
Passenger ticket | United Kingdom
Disaggregation of Revenue [Line Items]
Percentage of revenues by country									9.00%	10.00%	9.00%

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Redeemable Noncontrolling Interest (Schedule of Redeemable Noncontrolling Interest) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Beginning balance	$ 542,020	$ 0
Additions (Silversea Cruises acqusition)		537,770
Net income attributable to noncontrolling interest, including the contractual accretion of the put options	28,713	4,750	$ 0
Other		(500)
Distribution to noncontrolling interest	(752)
Ending balance	$ 569,981	$ 542,020	$ 0

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Subsequent Events (Details) - USD ($)	1 Months Ended				4 Months Ended	12 Months Ended
	Mar. 31, 2021	Sep. 30, 2020	Mar. 31, 2020	Apr. 30, 2019	May 11, 2020	Dec. 31, 2019	May 31, 2020	May 31, 2019
Shareholders' Equity
Maximum borrowing capacity			$ 3,500,000,000
Minimum monthly cash and cash equivalents						$ 300,000,000
Deferred debt amortization					$ 800,000,000
Deferred debt, amortization period					4 years
Scenario, Forecast
Shareholders' Equity
Collateral, amount		$ 80,400,000
$1.15 billion unsecured revolving credit facility | Revolving Credit Facility
Shareholders' Equity
Long term debt, principal amount						1,200,000,000		$ 1,150,000,000
Increase in borrowing capacity			400,000,000
$1.7 billion unsecured revolving credit facility | Revolving Credit Facility
Shareholders' Equity
Long term debt, principal amount						$ 1,700,000,000
Increase in borrowing capacity			200,000,000
$1.7 billion unsecured revolving credit facility | Revolving Credit Facility | LIBOR
Shareholders' Equity
Margin on floating rate base (as a percent)						1.00%
Secured term loan | Secured term loan
Shareholders' Equity
Long term debt, principal amount			$ 2,200,000,000		$ 2,200,000,000
Maximum borrowing capacity					$ 2,350,000,000
Debt instrument, term			364 days		364 days
Term extension			364 days		364 days
Extension fee, percent			1.00%
Percentage of equity interests pledged			100.00%
Borrowings outstanding			$ 2,200,000,000
Secured term loan | Secured term loan | Subsequent event
Shareholders' Equity
Maximum borrowing capacity							$ 150,000,000
Secured term loan | Secured term loan | Board Member Two
Shareholders' Equity
Long term debt, principal amount			100,000,000
Secured term loan | Secured term loan | Board Member One
Shareholders' Equity
Long term debt, principal amount			$ 100,000,000
Secured term loan | Secured term loan | LIBOR
Shareholders' Equity
Margin on floating rate base (as a percent)			2.25%
Duration fee, percentage			0.25%
Secured term loan | Secured term loan | LIBOR | Scenario, Forecast
Shareholders' Equity
Margin on floating rate base (as a percent)	2.75%	2.50%
Novation Agreement | Unsecured term loans
Shareholders' Equity
Debt instrument, term				12 years
Maximum borrowing capacity				$ 908,000,000.0
Long term debt, stated interest rate (as a percent)				3.45%
Celebrity Apex Unsecured Term Loan | Celebrity Apex | BpiFAE
Shareholders' Equity
Percentage of unsecured term loan guaranteed by an export credit agency				100.00%
Celebrity Apex Unsecured Term Loan | Unsecured term loans
Shareholders' Equity
Debt instrument, term				12 years
Maximum borrowing capacity				$ 722,200,000
Long term debt, stated interest rate (as a percent)				3.23%

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Changes in Accumulated Other Comprehensive Income (Loss) (Changes by Component) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance	$ 11,105,461	$ 10,702,303	$ 9,121,412
Other comprehensive (loss) income before reclassifications	(165,553)	(306,089)	392,417
Amounts reclassified from accumulated other comprehensive loss	(4,426)	12,620	189,802
Net current-period other comprehensive (loss) income	(169,979)	(293,469)	582,219
Balance	12,163,846	11,105,461	10,702,303
Changes related to cash flow derivative hedges
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance	(537,216)	(250,355)	(820,850)
Other comprehensive (loss) income before reclassifications	(146,108)	(297,994)	381,865
Amounts reclassified from accumulated other comprehensive loss	(5,205)	11,133	188,630
Net current-period other comprehensive (loss) income	(151,313)	(286,861)	570,495
Balance	(688,529)	(537,216)	(250,355)
Changes in defined benefit plans
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance	(26,023)	(33,666)	(28,083)
Other comprehensive (loss) income before reclassifications	(20,314)	6,156	(6,755)
Amounts reclassified from accumulated other comprehensive loss	779	1,487	1,172
Net current-period other comprehensive (loss) income	(19,535)	7,643	(5,583)
Balance	(45,558)	(26,023)	(33,666)
Foreign currency translation adjustments
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance	(64,495)	(50,244)	(67,551)
Other comprehensive (loss) income before reclassifications	869	(14,251)	17,307
Amounts reclassified from accumulated other comprehensive loss	0	0	0
Net current-period other comprehensive (loss) income	869	(14,251)	17,307
Balance	(63,626)	(64,495)	(50,244)
Accumulated other comprehensive (loss) income
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance	(627,734)	(334,265)	(916,484)
Balance	$ (797,713)	$ (627,734)	$ (334,265)

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Earnings Per Share (Reconciliation of Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Earnings Per Share [Abstract]
Net Income attributable to Royal Caribbean Cruises Ltd. for basic and diluted earnings per share	$ 273,136	$ 883,240	$ 472,830	$ 249,681	$ 315,703	$ 810,391	$ 466,295	$ 218,653	$ 1,878,887	$ 1,811,042	$ 1,625,133
Weighted-average common shares outstanding (in shares)									209,405	210,570	214,617
Dilutive effect of stock-based awards (in shares)									525	984	1,077
Diluted weighted-average shares outstanding									209,930	211,554	215,694
Basic earnings per share (in dollars per share)	$ 1.31	$ 4.21	$ 2.26	$ 1.19	$ 1.51	$ 3.88	$ 2.20	$ 1.03	$ 8.97	$ 8.60	$ 7.57
Diluted earnings per share (in dollars per share)	$ 1.30	$ 4.20	$ 2.25	$ 1.19	$ 1.50	$ 3.86	$ 2.19	$ 1.02	$ 8.95	$ 8.56	$ 7.53

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Leases - Lease Terms and Discount Rates (Details)	Dec. 31, 2019
Weighted average of the remaining lease term
Operating leases	10 years 3 months 18 days
Finance leases	30 years 2 months 19 days
Weighted average discount rate
Operating leases	4.65%
Finance leases	4.47%

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Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Schedule of capital commitments

As of December 31, 2019, our Global Brands have the following ships on order:

Ship	Shipyard	Expected to Enter Service	Approximate Berths
Royal Caribbean International —
Oasis-class:
Wonder of the Seas	Chantiers de l’Atlantique	2nd Quarter 2021	5,700
Unnamed	Chantiers de l’Atlantique	4th Quarter 2023	5,700
Quantum-class:
Odyssey of the Seas	Meyer Werft	4th Quarter 2020	4,200
Icon-class:
Unnamed	Meyer Turku Oy	2nd Quarter 2022	5,600
Unnamed	Meyer Turku Oy	2nd Quarter 2024	5,600
Unnamed	Meyer Turku Oy	2nd Quarter 2025	5,600
Celebrity Cruises —
Edge-class:
Celebrity Apex	Chantiers de l’Atlantique	2nd Quarter 2020	2,900
Celebrity Beyond	Chantiers de l’Atlantique	4th Quarter 2021	3,250
Unnamed	Chantiers de l’Atlantique	4th Quarter 2022	3,250
Silversea Cruises — (1)
Silver Origin	De Hoop	3rd Quarter 2020	100
Muse-class:
Silver Moon	Fincantieri	3rd Quarter 2020	550
Silver Dawn	Fincantieri	3rd Quarter 2021	550
Evolution-class:
Unnamed	Meyer Werft	1st Quarter 2022	600
Unnamed	Meyer Werft	1st Quarter 2023	600
TUI Cruises (50% joint venture) —
Mein Schiff 7	Meyer Turku Oy	2nd Quarter 2023	2,900
Unnamed	Fincantieri	3rd Quarter 2024	4,100
Unnamed	Fincantieri	1st Quarter 2026	4,100
Total Berths			55,300

(1) The revenue impact from Silversea Cruises' new ships will be recognized on a three month reporting lag from the "Expected to Enter Service" dates above. Refer to Note 1. General to our consolidated financial statements under Item 8. Financial Statements and Supplementary Data for further information.

Schedule of future commitments to pay for usage of port facilities, marine consumables, services and maintenance contracts

At December 31, 2019, we have future commitments to pay for our usage of certain port facilities, marine consumables, services and maintenance contracts as follows (in thousands):

Year
2020	$	202,879
2021	137,840
2022	57,096
2023	14,596
2024	8,760
Thereafter	34,233
	$	455,404

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Stock-Based Employee Compensation (Tables)

12 Months Ended

Dec. 31, 2019

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Total Compensation Expense Recognized for Employee Stock-based Compensation

Total compensation expense recognized for employee stock-based compensation for the years ended December 31, 2019, 2018 and 2017 was as follows (in thousands):

	Employee Stock-Based Compensation
Classification of expense	2019		2018		2017
Marketing, selling and administrative expenses	$	75,930	$	46,061	$	69,459
Total compensation expense	$	75,930	$	46,061	$	69,459

Summary Stock Option Activity

Stock option activity and information about stock options outstanding are summarized in the following table:

Stock Option Activity	Number of Options	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term	Aggregate Intrinsic Value(1)
				(years)	(in thousands)
Outstanding at January 1, 2019	153,093	$	29.06	1.23	$	10,399
Granted	—	—
Exercised	(87,262)	$	19.96
Canceled	(844)	$	33.73
Outstanding at December 31, 2019	64,987	$	41.22	0.87	$	5,990
Vested at December 31, 2019	64,987	$	41.22	0.87	$	5,990
Options Exercisable at December 31, 2019	64,987	$	41.22	0.87	$	5,990

___________________________________________________________________

(1)The intrinsic value represents the amount by which the fair value of stock exceeds the option exercise price.

Summary of Restricted Stock Activity

Restricted stock activity is summarized in the following table:

Restricted Stock Units Activity	Number of Awards		Weighted- Average Grant Date Fair Value
Non-vested share units as of January 1, 2019	$	800,585	$	103.32
Granted	293,707		112.13
Vested	(267,134)		96.96
Canceled	(25,323)		109.32
Non-vested share units as of December 31, 2019	$	801,835	$	88.97

Summary of Performance share activity

Performance share units activity is summarized in the following table:

Performance Share Units Activity	Number of Awards	Weighted- Average Grant Date Fair Value
Non-vested share units as of January 1, 2019	302,561	88.57
Granted	187,924	87.39
Vested	(198,537)	62.49
Canceled	(5,931)	95.12
Non-vested share units as of December 31, 2019	286,017	105.76

Senior Officers

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Summary of Restricted Stock Activity

Restricted stock awards activity is summarized in the following table:

Restricted Stock Awards Activity	Number of Awards	Weighted- Average Grant Date Fair Value
Non-vested share units as of January 1, 2019	390,198	96.03
Granted	194,486	118.08
Vested	(120,329)	66.93
Canceled	(11,899)	66.93
Non-vested share units as of December 31, 2019	452,456	114.01

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Summary of Significant Accounting Policies (Narrative) (Details)	3 Months Ended	12 Months Ended
	Dec. 31, 2019 USD ($) brand	Dec. 31, 2019 USD ($) brand segment $ / shares	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Jan. 01, 2019 USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Change in operating income		$ 4,600,000
Change in net income		$ 4,600,000
Change in accounting principle, effect on basic earnings per share (in dollars per share) | $ / shares		$ 0.02
Change in accounting principle, effect on diluted earnings per share (in dollars per share) | $ / shares		$ 0.02
Exchange gains (losses) recorded in other income (expense)		$ 400,000	$ 57,600,000	$ (75,600,000)
Exposure under foreign currency forward contracts, foreign currency collar options, fuel call options, interest rate and fuel swap agreements	$ 0	$ 0	$ 5,600,000
Number of cruise brands | brand	4	4
Number of operating segments | segment		1
Right-of-use asset	$ 687,555,000	$ 687,555,000
Operating lease liability	$ 698,617,000	$ 698,617,000
Lower Limit
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Investment in a joint venture, percentage of interest	20.00%	20.00%
Upper Limit
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Investment in a joint venture, percentage of interest	50.00%	50.00%
Ships
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Payments for capital investment		$ 538,000,000.0
Ships | Oasis Of The Seas
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Property, plant and equipment, useful life	35 years		30 years
Residual value, percentage	10.00%	10.00%	15.00%
Payments for capital investment		$ 170,000,000.0
Ships | Lower Limit
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Property, plant and equipment, useful life		30 years
Residual value, percentage	10.00%	10.00%
Drydock services period		30 months
Ships | Upper Limit
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Property, plant and equipment, useful life		35 years
Residual value, percentage	15.00%	15.00%
Drydock services period		60 months
Media advertising
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Advertising costs		$ 309,400,000	$ 255,700,000	233,500,000
Brochure, production and direct mail costs
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Advertising costs		$ 156,000,000.0	$ 133,400,000	$ 126,700,000
Accounting Standards Update 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Right-of-use asset					$ 801,800,000
Operating lease liability					$ 820,500,000
TUI Cruises
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Investment in a joint venture, percentage of interest	50.00%	50.00%
Pullmantur
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Investment in a joint venture, percentage of interest	49.00%	49.00%

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Fair Value Measurements and Derivative Instruments (Credit Features) (Details)	Dec. 31, 2019 derivative
Fair Value Disclosures [Abstract]
Number of derivatives, matured	5

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Other Assets (Narrative) (Details) $ in Thousands, € in Millions	1 Months Ended			12 Months Ended
	Apr. 30, 2016	Mar. 31, 2009 USD ($)	Mar. 31, 2009 EUR (€)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Feb. 07, 2020 ship	Dec. 31, 2019 EUR (€)	Dec. 31, 2018 EUR (€)	Mar. 31, 2018	Dec. 31, 2016
Other Assets
Proceeds from the sale of property and equipment				$ 0	$ 0	$ 230,000
Gain on sale of equipment				0	0	30,902
Principal and Interest payments received				$ 32,870	124,238	$ 62,303
Minimum
Other Assets
Investment in a joint venture, percentage of interest				20.00%				20.00%
Ownership interest retained, percent				20.00%				20.00%
Maximum
Other Assets
Investment in a joint venture, percentage of interest				50.00%				50.00%
Ownership interest retained, percent				50.00%				50.00%
TUI Cruises GmbH joint venture
Other Assets
Investment in a joint venture, percentage of interest				50.00%				50.00%
Equity and loans due from equity method investee				$ 598,100	578,100
Equity investment				443,100	403,000
Loan investment				$ 149,500	172,200			€ 133.2	€ 150.6
Related party guarantor obligation percentage				50.00%
Amount outstanding under line of credit provided to TUI Cruises				$ 29,700				€ 26.4
Proceeds from the sale of property and equipment		$ 290,900	€ 224.4
Deferred gain on sale		$ 35,900
Gain on sale of equipment					21,800
Ownership interest retained, percent				50.00%				50.00%
Pullmantur
Other Assets
Investment in a joint venture, percentage of interest				49.00%				49.00%
Loan investment				$ 16,800				€ 15.0
Interest rate on debt facility provided to related party (as a percent)				6.50%				6.50%
Related party guarantor obligation percentage				51.00%
Retained ownership percentage of subsidiary after sale				49.00%
Ownership interest retained, percent				49.00%				49.00%
Maximum loss exposure				$ 49,700	58,500
Line of credit outstanding				$ 12,300	16,000			€ 11.0	€ 14.0
Percentage of subsidiary which has been sold				51.00%				51.00%			51.00%
Grand Bahamas Shipyard Ltd. | Not Primary Beneficiary
Other Assets
Investment in a joint venture, percentage of interest				40.00%				40.00%
Equity investment				$ 27,000	41,400
Ownership interest retained, percent				40.00%				40.00%
Payments to related parties for services provided				$ 45,700	44,700
Net book value of equity method investment				47,900	56,100
Principal and Interest payments received				$ 8,600
Grand Bahamas Shipyard Ltd. | Not Primary Beneficiary | Non-accrual status of advances to affiliates
Other Assets
Interest rate on debt facility provided to related party (as a percent)				5.75%				5.75%
Principal and Interest payments received					16,400
Grand Bahamas Shipyard Ltd. | Not Primary Beneficiary | Loans Receivable
Other Assets
Loan investment				$ 20,900	14,600
Skysea Holding
Other Assets
Equity method investment impairment					$ 23,300
Skysea Holding | Not Primary Beneficiary
Other Assets
Investment in a joint venture, percentage of interest										36.00%
Ownership interest retained, percent										36.00%
London Interbank Offered Rate (LIBOR) | Grand Bahamas Shipyard Ltd. | Not Primary Beneficiary | Non-accrual status of advances to affiliates | Minimum
Other Assets
Margin on floating rate base (as a percent)				2.00%
London Interbank Offered Rate (LIBOR) | Grand Bahamas Shipyard Ltd. | Not Primary Beneficiary | Non-accrual status of advances to affiliates | Maximum
Other Assets
Margin on floating rate base (as a percent)				3.75%
Splendor of the Seas | TUI Cruises GmbH joint venture
Other Assets
Interest rate on debt facility provided to related party (as a percent)	6.25%
Debt instrument, term	10 years
Related party guarantor obligation percentage	50.00%
Springwater Capital LLC | Pullmantur
Other Assets
Investment in a joint venture, percentage of interest				51.00%				51.00%
Ownership interest retained, percent				51.00%				51.00%
TUI cruise ships | TUI Cruises GmbH joint venture
Other Assets
Reduction of current ownership interest, minimum allowed (as a percent)				37.55%				37.55%
Mein Schiff 1
Other Assets
Property, plant and equipment, useful life		23 years	23 years
Luxury Liners | Subsequent event | TUI Cruises GmbH joint venture | Hapag-Lloyd Cruises
Other Assets
Number of ships acquired | ship							2
Expedition Ships | Subsequent event | TUI Cruises GmbH joint venture | Hapag-Lloyd Cruises
Other Assets
Number of ships acquired | ship							3

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Fair Value Measurements and Derivative Instruments (Derivative Instruments) (Details) € in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2019 EUR (€)
Derivative instruments disclosure
Maximum length of time hedged in derivative contract	3 years
Aggregate cost of ships on order	$ 14,800.0
Amount deposited for cost of ships on order	$ 881.5
Percentage of aggregate cost exposed to fluctuations in the euro exchange rate	65.90%	53.50%		65.90%
Exchange gains (losses) recorded in other income (expense)	$ 0.4	$ 57.6	$ (75.6)
Foreign currency forward | Not Designated
Derivative instruments disclosure
Notional amount	689.7
Change in fair value of foreign currency forward contracts recognized in earnings	1.4	(62.4)	62.0
Exchange gains (losses) recorded in other income (expense)		57.6	$ (75.6)
Foreign currency forward | Designated as Hedging Instrument
Derivative instruments disclosure
Notional amount	194.2			€ 173.0
Foreign exchange contracts
Derivative instruments disclosure
Notional amount	$ 2,900.0	$ 3,700.0

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Fair Value Measurements and Derivative Instruments (Balance Sheet) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Asset Derivatives
Asset Derivatives	$ 39,994	$ 65,297
Liability Derivatives
Liability Derivatives	257,728	201,812
Designated as Hedging Instrument
Asset Derivatives
Asset Derivatives	34,990	58,576
Liability Derivatives
Liability Derivatives	255,005	199,795
Not Designated as Hedging Instrument
Asset Derivatives
Asset Derivatives	5,004	6,721
Liability Derivatives
Liability Derivatives	2,723	2,017
Interest rate swaps | Designated as Hedging Instrument | Other Assets
Asset Derivatives
Asset Derivatives	11	23,518
Interest rate swaps | Designated as Hedging Instrument | Other long-term Liabilities
Liability Derivatives
Liability Derivatives	64,168	40,467
Foreign currency forward contracts | Designated as Hedging Instrument | Other Assets
Asset Derivatives
Asset Derivatives	9,380	10,844
Foreign currency forward contracts | Designated as Hedging Instrument | Derivative Financial Instruments
Asset Derivatives
Asset Derivatives	0	4,044
Liability Derivatives
Liability Derivatives	75,260	39,665
Foreign currency forward contracts | Designated as Hedging Instrument | Other long-term Liabilities
Liability Derivatives
Liability Derivatives	64,711	16,854
Foreign currency forward contracts | Not Designated as Hedging Instrument | Other Assets
Asset Derivatives
Asset Derivatives	0	1,579
Foreign currency forward contracts | Not Designated as Hedging Instrument | Derivative Financial Instruments
Asset Derivatives
Asset Derivatives	3,186	1,751
Liability Derivatives
Liability Derivatives	2,419	808
Foreign currency forward contracts | Not Designated as Hedging Instrument | Other long-term Liabilities
Liability Derivatives
Liability Derivatives	0	833
Fuel contracts | Designated as Hedging Instrument | Other Assets
Asset Derivatives
Asset Derivatives	8,677	9,204
Fuel contracts | Designated as Hedging Instrument | Derivative Financial Instruments
Asset Derivatives
Asset Derivatives	16,922	10,966
Liability Derivatives
Liability Derivatives	16,901	37,627
Fuel contracts | Designated as Hedging Instrument | Other long-term Liabilities
Liability Derivatives
Liability Derivatives	33,965	65,182
Fuel contracts | Not Designated as Hedging Instrument | Other Assets
Asset Derivatives
Asset Derivatives	175	587
Fuel contracts | Not Designated as Hedging Instrument | Derivative Financial Instruments
Asset Derivatives
Asset Derivatives	1,643	2,804
Liability Derivatives
Liability Derivatives	295	376
Fuel contracts | Not Designated as Hedging Instrument | Other long-term Liabilities
Liability Derivatives
Liability Derivatives	$ 9	$ 0

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Other Assets (Equity Method Investee) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Assets [Abstract]
Current assets	$ 435,152	$ 471,428
Non-current assets	4,019,394	3,826,018
Total assets	4,454,546	4,297,446
Liabilities [Abstract]
Current liabilities	1,094,552	1,064,741
Non- current liabilities	2,267,936	2,217,909
Total liabilities	3,362,488	3,282,650
Equity attributable to:
Noncontrolling interest	1,784	1,672
Income Statement [Abstract]
Total revenues	2,354,744	2,255,352	$ 1,994,014
Total expenses	(1,875,952)	(1,779,160)	(1,684,276)
Net income	$ 478,792	$ 476,192	$ 309,738

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Fair Value Measurements and Derivative Instruments (Designated Cash Flow Hedges) (Details) - USD ($) $ in Thousands	3 Months Ended									12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivative										$ (146,108)	$ (297,994)
Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income										5,205	(11,133)
Interest expense										(408,513)	(333,672)	$ (299,982)
Depreciation and amortization expenses									$ (951,194)	(1,245,942)	(1,033,697)	(951,194)
Other Income (Expense)									(5,289)	(24,513)	11,107	(5,289)
Fuel									$ (681,118)	(697,962)	(710,617)
Net Income	$ 273,136	$ 883,240	$ 472,830	$ 249,681	$ 315,703	$ 810,391	$ 466,295	$ 218,653		1,878,887	1,811,042	1,625,133
Interest rate swaps
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivative										(72,732)	18,578
Interest rate swaps | Interest Expense
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements
Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income										(4,289)	(10,931)
Foreign currency forward contracts
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivative										(148,881)	(222,645)
Foreign currency forward contracts | Depreciation and amortization expenses
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements
Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income										(14,063)	(12,843)
Foreign currency forward contracts
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivative										0	0
Foreign currency forward contracts | Other income (expense)
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements
Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income										(5,080)	12,855
Foreign currency forward contracts
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivative										0	0
Foreign currency forward contracts | Other indirect operating expenses
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements
Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income										0	0
Foreign currency collar options
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivative										0	0
Foreign currency collar options | Depreciation and amortization expenses
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements
Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income										0	0
Fuel contracts
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivative										0	0
Fuel contracts | Other income (expense)
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements
Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income										(1,292)	(1,580)
Fuel contracts | Fuel
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements
Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income										29,929	1,366
Fuel swaps
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivative										75,505	(93,927)
Fuel swaps | Fuel
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements
Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income										29,929	1,366
Cash flow hedge
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivative												381,865
Cash flow hedge | Interest rate swaps
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivative												(13,312)
Cash flow hedge | Foreign currency forward contracts
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivative												276,573
Cash flow hedge | Foreign currency forward contracts
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivative												0
Cash flow hedge | Foreign currency forward contracts
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivative												0
Cash flow hedge | Foreign currency collar options
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivative												0
Cash flow hedge | Fuel contracts
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivative												0
Cash flow hedge | Fuel swaps
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivative												118,604
Reclassification out of accumulated other comprehensive income (loss) | Gain (loss) on cash flow derivative hedges:
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements
Net Income												(188,630)
Reclassification out of accumulated other comprehensive income (loss) | Gain (loss) on cash flow derivative hedges: | Interest rate swaps
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements
Interest expense										(4,289)	(10,931)	(31,603)
Reclassification out of accumulated other comprehensive income (loss) | Gain (loss) on cash flow derivative hedges: | Foreign currency forward contracts
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements
Depreciation and amortization expenses										(14,063)	(12,843)	(10,840)
Other Income (Expense)										(5,080)	12,855	(9,472)
Reclassification out of accumulated other comprehensive income (loss) | Gain (loss) on cash flow derivative hedges: | Foreign currency forward contracts
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements
Other Income (Expense)												(9,472)
Reclassification out of accumulated other comprehensive income (loss) | Gain (loss) on cash flow derivative hedges: | Foreign currency forward contracts
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements
Other indirect operating expenses												0
Reclassification out of accumulated other comprehensive income (loss) | Gain (loss) on cash flow derivative hedges: | Foreign currency collar options
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements
Depreciation and amortization expenses										0	0	(2,408)
Reclassification out of accumulated other comprehensive income (loss) | Gain (loss) on cash flow derivative hedges: | Fuel contracts
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements
Other Income (Expense)										(1,292)	(1,580)	7,382
Fuel										$ 29,929	$ 1,366	(141,689)
Reclassification out of accumulated other comprehensive income (loss) | Gain (loss) on cash flow derivative hedges: | Fuel swaps
Effect of derivative instruments involved in fair value hedging on the consolidated financial statements
Fuel												$ (141,689)

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Restructuring Charges (Narrative) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Restructuring and Related Activities [Abstract]
Restructuring expense	$ 12,026,000	$ 0	$ 0

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General

12 Months Ended

Dec. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

General

General

Description of Business

We are a global cruise company. We own and operate four global cruise brands: Royal Caribbean International, Celebrity Cruises, Azamara and Silversea Cruises (collectively, our "Global Brands"). We also own a 50% joint venture interest in the German brand TUI Cruises and a 49% interest in the Spanish brand Pullmantur (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 operate a combined 61 ships as of December 31, 2019. Our ships operate on a selection of worldwide itineraries that call on more than 1,000 destinations on all seven continents.

On July 31, 2018, we acquired a 66.7% equity stake in Silversea Cruise Holding Ltd. ("Silversea Cruises"), an ultra-luxury and expedition cruise line with nine ships, from Silversea Cruises Group Ltd. ("SCG") for $1.02 billion in cash and contingent consideration. Refer to Note 3. Business Combination for further information on the Silversea Cruises acquisition.

Management's Plan and Liquidity

As part of the global containment effort, the Company implemented a voluntary suspension of its global cruise operations effective March 13, 2020, which has subsequently been extended through at least June 11, 2020. On March 14, 2020, concurrent with our and the broader cruise industry’s suspension, the U.S. Centers for Disease Control and Prevention (“CDC”) issued a No Sail Order through April 13, 2020. On April 9, 2020, the CDC modified its existing No Sail Order to extend it until the earliest of (a) the expiration of the Secretary of Health and Human Services’ declaration that COVID-19 constitutes a public health emergency, (b) the date the Director of the CDC rescinds or modifies the No Sail Order or (c) 100 days after the order appears on the Federal Register, which would be July 24, 2020.

Significant events affecting travel, including COVID-19, typically have an impact on the booking pattern for cruise vacations, with the full extent of the impact generally determined by the length of time the event influences travel decisions. Based on our assumptions and estimates and our financial condition, we believe that the liquidity described in the following paragraphs will be sufficient to fund our liquidity requirements for at least the next twelve months. However, there can be no assurance that our assumptions and estimates are accurate due to possible unknown variables, including, but not limited to, whether the CDC will issue additional No Sail Orders on cruises out of the United States. The current No Sail Order is currently set to expire on or before July 24, 2020. The Company, working with the CDC, is developing its enhanced safety and health protocols as well as other operational procedures necessary to return its vessels to service and is targeting mid-summer of 2020 to begin sailings; however, if the ban on cruising is extended beyond the third quarter of 2020, it will have a material adverse impact on our current and forecasted liquidity levels. There are also other unknown variables related to the unprecedented suspension of our operations and, as such, there is significant uncertainty in our ability to predict future liquidity requirements.

As of December 31, 2019, the Company had liquidity of $1.5 billion, consisting of $243.7 million in cash and cash equivalents and $1.3 billion available under our unsecured credit facilities, net of our outstanding commercial paper notes. Subsequent to December 31, 2019 and through May 12, 2020, as described in Note 22. Events Subsequent to Original Issuance of Financial Statements, the Company increased the capacity under our revolving credit facilities by $0.6 billion and fully drew on both facilities, entered into 364-day senior secured term loan for $2.2 billion, which was subsequently increased to $2.35 billion, of which repayments may be extended at our option for an additional 364 days, and secured deferrals of existing debt amortization under our export-credit backed ship debt facilities which increased the Company’s liquidity by an additional $0.8 billion.

The Company has also undertaken several proactive measures as well as has future plans to mitigate the financial and operational impacts of COVID-19, through potential new financing options, if available, reduction of capital expenditures and operating expenses, including furloughing staff, laying up vessels, as well as agreeing not to pay dividends or engage in stock repurchases.

We were in compliance with all of our debt covenants as of December 31, 2019 and through May 12, 2020. Subsequent to December 31, 2019, we amended each of our outstanding facilities to waive all financial covenants in such facilities through and including the first quarter of 2021.

We also have agreements with two credit card processors that transact advance customer ticket deposits and onboard transactions related to our cruise voyages. These agreements allow the credit card processors to require under certain circumstances, including the existence of a material adverse change, excessive chargebacks and other triggering events, that we maintain a reserve which could be satisfied by posting collateral. The maximum reserve requirement under the agreements with the credit card processors is in aggregate $300 million. As of May 12, 2020, we were not required to post collateral under these agreements.

Any covenant waiver may lead to increased costs, increased interest rates, additional restrictive covenants and other available lender protections that would be applicable. There can be no assurance that we would be able to obtain waivers in a timely manner, or on acceptable terms at all. If we were not able to obtain waivers or repay the debt facilities, this would lead to an event of default and potential acceleration of amounts due under all of our outstanding debt and derivative contract payables.

Basis for Preparation of Consolidated Financial Statements

The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). 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 for a discussion of our significant accounting policies.

All significant intercompany accounts and transactions are eliminated in consolidation. We consolidate entities over which we have control, usually evidenced by a direct ownership interest of greater than 50%, and variable interest entities where we are determined to be the primary beneficiary. Refer to Note 8. Other Assets for further information regarding our variable interest entities. We consolidate the operating results of Silversea Cruises on a three-month reporting lag to allow for more timely preparation of our consolidated financial statements. No material events or other transactions involving Silversea Cruises have occurred from September 30, 2019 through December 31, 2019 that would require further disclosure or adjustment to our consolidated financial statements as of and for the year ended December 31, 2019. For affiliates we do not control but over which we have significant influence on financial and operating policies, usually evidenced by a direct ownership interest from 20% to 50%, the investment is accounted for using the equity method.

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Quarterly Selected Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2019

Quarterly Financial Information Disclosure [Abstract]

Quarterly Selected Financial Data (Unaudited)

Quarterly Selected Financial Data (Unaudited)

	(In thousands, except per share data)
	First Quarter				Second Quarter				Third Quarter				Fourth Quarter
	2019		2018		2019		2018		2019		2018		2019		2018
Total revenues(1)	$	2,439,767	$	2,027,756	$	2,806,631	$	2,337,605	$	3,186,850	$	2,796,187	$	2,517,413	$	2,332,301
Operating income	$	318,831	$	274,146	$	573,653	$	456,895	$	890,792	$	799,733	$	299,425	$	364,027
Net Income attributable to Royal Caribbean Cruises Ltd.	$	249,681	$	218,653	$	472,830	$	466,295	$	883,240	$	810,391	$	273,136	$	315,703
Earnings per share
Basic	$	1.19	$	1.03	$	2.26	$	2.20	$	4.21	$	3.88	$	1.31	$	1.51
Diluted	$	1.19	$	1.02	$	2.25	$	2.19	$	4.20	$	3.86	$	1.30	$	1.50
Dividends declared per share	$	0.70	$	0.60	$	0.70	$	0.60	$	0.78	$	0.70	$	0.78	$	0.70

___________________________________________________________________

(1)Our revenues are seasonal based on the demand for cruises. Demand is strongest for cruises during the Northern Hemisphere's summer months and holidays.

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Stock-Based Employee Compensation

12 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

Stock-Based Employee Compensation

Stock-Based Employee Compensation

We currently have awards outstanding under one stock-based compensation plan, our 2008 Equity Plan, which provides for awards to our officers, directors and key employees. The plan consists of a 2008 Equity Plan, as amended, provides for the issuance of up to 14,000,000 shares of our common stock pursuant to grants of (i) incentive and non-qualified stock options, (ii) stock appreciation rights, (iii) stock awards (including time-based and/or performance-based stock awards) and (iv) restricted stock units (including time-based and performance-based restricted stock units). During any calendar year, no one individual (other than non-employee members of our board of directors) may be granted awards of more than 500,000 shares and no non-employee member of our board of directors may be granted awards with a value in excess of $500,000 at the grant date. Options and restricted stock units outstanding as of December 31, 2019 generally vest in equal installments over four years from the date of grant. In addition, performance shares and performance share units generally vest in three years. With certain limited exceptions, awards are forfeited if the recipient ceases to be an employee before the shares vest.

Prior to 2012, our officers received a combination of stock options and restricted stock units. Beginning in 2012, our officers instead receive their long-term incentive awards through a combination of performance share units and restricted stock units. Each performance share unit award is expressed as a target number of performance share units based upon the fair market value of our common stock on the date the award is issued. The actual number of shares underlying each award (not to exceed 200% of the target number of performance share units) will be determined based upon the Company's achievement of a specified performance target range. In 2019, we issued a target number of 187,924 performance share units, which will vest approximately three years following the award issue date. The performance payout of these grants will be based on return on our invested capital ("ROIC") and

earnings per share (“EPS”) for the year ended December 31, 2021, as may be adjusted by the Talent and Compensation Committee of our board of directors in early 2022 for events that are outside of management's control.

Beginning in 2016, our senior officers meeting certain minimum age and service criteria receive their long-term incentive awards through a combination of restricted stock awards and restricted stock units. The restricted stock awards are subject to both performance and time-based vesting criteria while the restricted stock units are subject only to time-based vesting criteria. Each restricted stock award is issued in an amount equal to 200% of the target number of shares underlying the award based upon the fair market value of our common stock on the date the award is issued. Dividends accrue (but do not get paid) on the restricted stock awards during the vesting period, with the accrued amounts to be paid out following vesting only on the number of shares underlying the award which actually vest based on satisfaction of the performance criteria. The actual number of shares that vest (not to exceed 200% of the shares) will be determined based upon the Company's achievement of a specified performance target range. In 2019, we issued 194,486 restricted stock awards, representing 200% of the target number of shares underlying the award, all of which are considered issued and outstanding from the date of issuance, however; grantees will only retain those shares earned as the result of the Company achieving the performance goals during the measurement period. The performance payout of the 2019 awards will be based on ROIC and EPS for the year ended December 31, 2021, as may be adjusted by the Talent and Compensation Committee of our board of directors in early 2022 for events that are outside of management's control.

On January 24, 2018, the Company issued a one-time bonus award for all non-officer employees. These awards vest, in equal installments, over the 3 years following the award issue date. For shoreside eligible employees, awards were issued as equity-settled restricted stock units.

We also provide an Employee Stock Purchase Plan ("ESPP") to facilitate the purchase by employees of up to 1,300,000 shares of common stock in the aggregate. Offerings to employees are made on a quarterly basis. Subject to certain limitations, the purchase price for each share of common stock is equal to 85% of the average of the market prices of the common stock as reported on the New York Stock Exchange on the first business day of the purchase period and the last business day of each month of the purchase period. During the years ended December 31, 2019, 2018 and 2017, 91,586, 74,100 and 51,989 shares of our common stock were purchased under the ESPP at a weighted-average price of $98.20, $97.50 and $93.15, respectively.

Total compensation expense recognized for employee stock-based compensation for the years ended December 31, 2019, 2018 and 2017 was as follows (in thousands):

	Employee Stock-Based Compensation
Classification of expense	2019		2018		2017
Marketing, selling and administrative expenses	$	75,930	$	46,061	$	69,459
Total compensation expense	$	75,930	$	46,061	$	69,459

The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option pricing model. The estimated fair value of stock options, less estimated forfeitures, is amortized over the vesting period using the graded-vesting method. We did not issue any stock options during the years ended December 31, 2019, 2018 and 2017.

Stock option activity and information about stock options outstanding are summarized in the following table:

Stock Option Activity	Number of Options	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term	Aggregate Intrinsic Value(1)
				(years)	(in thousands)
Outstanding at January 1, 2019	153,093	$	29.06	1.23	$	10,399
Granted	—	—
Exercised	(87,262)	$	19.96
Canceled	(844)	$	33.73
Outstanding at December 31, 2019	64,987	$	41.22	0.87	$	5,990
Vested at December 31, 2019	64,987	$	41.22	0.87	$	5,990
Options Exercisable at December 31, 2019	64,987	$	41.22	0.87	$	5,990

___________________________________________________________________

(1)The intrinsic value represents the amount by which the fair value of stock exceeds the option exercise price.

The total intrinsic value of stock options exercised during the years ended December 31, 2019, 2018 and 2017 was $8.1 million, $11.1 million and $4.5 million, respectively. As of December 31, 2019, there was no unrecognized compensation cost, net of estimated forfeitures, related to stock options granted under our stock incentive plan.

Restricted stock units are converted into shares of common stock upon vesting or, if applicable, are settled on a one-for-one basis. The cost of these awards is determined using the fair value of our common stock on the date of the grant, and compensation expense is recognized over the vesting period. Restricted stock activity is summarized in the following table:

Restricted Stock Units Activity	Number of Awards		Weighted- Average Grant Date Fair Value
Non-vested share units as of January 1, 2019	$	800,585	$	103.32
Granted	293,707		112.13
Vested	(267,134)		96.96
Canceled	(25,323)		109.32
Non-vested share units as of December 31, 2019	$	801,835	$	88.97

The weighted-average estimated fair value of restricted stock units granted during the years ended December 31, 2018 and 2017 was $122.12 and $99.03, respectively. The total fair value of shares released on the vesting of restricted stock units during the years ended December 31, 2019, 2018 and 2017 was $30.8 million, $33.9 million and $38.7 million, respectively. As of December 31, 2019, we had $37.1 million of total unrecognized compensation expense, net of estimated forfeitures, related to restricted stock unit grants, which will be recognized over the weighted-average period of 1.39 years.

Performance share units are converted into shares of common stock upon vesting on a one-for-one basis. We estimate the fair value of each performance share when the grant is authorized and the related service period has commenced. We remeasure the fair value of our performance shares in each subsequent reporting period until the grant date has occurred, which is the date when the performance conditions are satisfied. We recognize compensation cost over the vesting period based on the probability of the service and performance conditions being achieved adjusted for each subsequent fair value measurement until the grant date. If the specified service and performance conditions are not met, compensation expense will not be recognized and any previously recognized compensation expense will be reversed. Performance share units activity is summarized in the following table:

Performance Share Units Activity	Number of Awards	Weighted- Average Grant Date Fair Value
Non-vested share units as of January 1, 2019	302,561	88.57
Granted	187,924	87.39
Vested	(198,537)	62.49
Canceled	(5,931)	95.12
Non-vested share units as of December 31, 2019	286,017	105.76

The weighted-average estimated fair value of performance share units granted during the years ended December 31, 2018 and 2017 was $97.98 and $84.16, respectively. The total fair value of shares released on the vesting of performance share units during the years ended December 31, 2019, 2018 and 2017 was $23.0 million, $27.3 million and $10.0 million, respectively. As of December 31, 2019, we had $10.0 million of total unrecognized compensation expense, net of estimated forfeitures, related to performance share unit grants, which will be recognized over the weighted-average period of 1.06 year.

The shares underlying our restricted stock awards to age and service eligible senior officers are issued as of the grant date in an amount equal to 200% of the target number of shares. Following the vesting date, the restrictions will lift with respect to the number of shares for which the performance criteria was met and any excess shares will be canceled. Dividends will accrue on the issued restricted shares during the vesting period, but will not be paid to the recipient until the awards vest and the final number of shares underlying the award is determined, at which point, the dividends will be paid in cash only on the earned shares. We estimate the fair value of each restricted stock award when the grant is authorized and the related service period has commenced. We remeasure the fair value of these restricted stock awards in each subsequent reporting period until the grant date has occurred, which is the date when the performance conditions are satisfied. We recognize compensation cost over the vesting period based on the probability of the service and performance conditions being achieved adjusted for each subsequent fair value measurement until the grant date. If the specified service and performance conditions are not met, compensation expense will not be recognized, any previously recognized compensation expense will be reversed, and any unearned shares will be returned to the Company. Restricted stock awards activity is summarized in the following table:

Restricted Stock Awards Activity	Number of Awards	Weighted- Average Grant Date Fair Value
Non-vested share units as of January 1, 2019	390,198	96.03
Granted	194,486	118.08
Vested	(120,329)	66.93
Canceled	(11,899)	66.93
Non-vested share units as of December 31, 2019	452,456	114.01

The weighted-average estimated fair value of restricted stock awards granted during the years ended December 31, 2018 and 2017 was $129.23 and $95.04, respectively. As of December 31, 2019, we had $3.2 million of total unrecognized compensation expense, net of estimated forfeitures, related to restricted stock award grants, which will be recognized over the weighted-average period of 1.24 years.

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Changes in Accumulated Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2019

Other Comprehensive Income (Loss), Net of Tax [Abstract]

Changes in Accumulated Other Comprehensive Income (Loss)

Changes in Accumulated Other Comprehensive Income (Loss)

The following table presents the changes in accumulated other comprehensive loss by component for the years ended December 31, 2019, 2018 and 2017 (in thousands):

	Changes related to cash flow derivative hedges		Changes in defined benefit plans		Foreign currency translation adjustments		Accumulated other comprehensive (loss) income
Accumulated comprehensive loss at January 1, 2017	$	(820,850)	$	(28,083)	$	(67,551)	$	(916,484)
Other comprehensive income (loss) before reclassifications	381,865		(6,755)		17,307		392,417
Amounts reclassified from accumulated other comprehensive loss	188,630		1,172		—		189,802
Net current-period other comprehensive income (loss)	570,495		(5,583)		17,307		582,219
Accumulated comprehensive loss at January 1, 2018	(250,355)		(33,666)		(50,244)		(334,265)
Other comprehensive income (loss) before reclassifications	(297,994)		6,156		(14,251)		(306,089)
Amounts reclassified from accumulated other comprehensive loss	11,133		1,487		—		12,620
Net current-period other comprehensive (loss) income	(286,861)		7,643		(14,251)		(293,469)
Accumulated comprehensive loss at January 1, 2019	(537,216)		(26,023)		(64,495)		(627,734)
Other comprehensive (loss) income before reclassifications	(146,108)		(20,314)		869		(165,553)
Amounts reclassified from accumulated other comprehensive loss	(5,205)		779		—		(4,426)
Net current-period other comprehensive (loss) income	(151,313)		(19,535)		869		(169,979)
Accumulated comprehensive loss at December 31, 2019	$	(688,529)	$	(45,558)	$	(63,626)	$	(797,713)

The following table presents reclassifications out of accumulated other comprehensive loss for the years ended December 31, 2019, 2018 and 2017 (in thousands):

	Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income
Details about Accumulated Other Comprehensive Loss Components	Year Ended December 31, 2019		Year Ended December 31, 2018		Year Ended December 31, 2017		Affected Line Item in Statements of Comprehensive Income (Loss)
Gain (loss) on cash flow derivative hedges:
Interest rate swaps	(4,289)		(10,931)		(31,603)		Interest expense, net of interest capitalized
Foreign currency forward contracts	(14,063)		(12,843)		(10,840)		Depreciation and amortization expenses
Foreign currency forward contracts	(5,080)		12,855		(9,472)		Other income (expense)
Foreign currency forward contracts	—		—		—		Other indirect operating expenses
Foreign currency collar options	—		—		(2,408)		Depreciation and amortization expenses
Fuel swaps	(1,292)		(1,580)		7,382		Other income (expense)
Fuel swaps	29,929		1,366		(141,689)		Fuel
	5,205		(11,133)		(188,630)
Amortization of defined benefit plans:
Actuarial loss	(779)		(1,487)		(1,172)		Payroll and related
	(779)		(1,487)		(1,172)
Total reclassifications for the period	$	4,426	$	(12,620)	$	(189,802)

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CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
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)	236,547,842	235,847,683
Treasury stock, common shares (in shares)	27,746,848	26,830,765

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General (Details) destination in Thousands		1 Months Ended	4 Months Ended
	Jul. 31, 2018 USD ($)	Mar. 31, 2020 USD ($)	May 11, 2020 USD ($)	Dec. 31, 2019 USD ($) ship brand continent destination	Dec. 31, 2018 USD ($)
Schedule of Equity Method Investments [Line Items]
Number of cruise brands | brand				4
Number of ships in operation | ship				61
Number of destinations | destination				1
Liquidity				$ 1,500,000,000
Cash and cash equivalents				243,738,000	$ 287,852,000
Current borrowing capacity				1,300,000,000
Maximum borrowing capacity		$ 3,500,000,000
Increase in liquidity			$ 800,000,000
Maximum reserve requirement				$ 300,000,000
Secured term loan | Secured term loan
Schedule of Equity Method Investments [Line Items]
Debt instrument, term		364 days	364 days
Long term debt, principal amount		$ 2,200,000,000	$ 2,200,000,000
Maximum borrowing capacity			$ 2,350,000,000
Term extension		364 days	364 days
Revolving Credit Facility
Schedule of Equity Method Investments [Line Items]
Increase in borrowing capacity			$ 600,000,000
Minimum
Schedule of Equity Method Investments [Line Items]
Investment in a joint venture, percentage of interest				20.00%
Maximum
Schedule of Equity Method Investments [Line Items]
Investment in a joint venture, percentage of interest				50.00%
TUI Cruises
Schedule of Equity Method Investments [Line Items]
Investment in a joint venture, percentage of interest				50.00%
Pullmantur
Schedule of Equity Method Investments [Line Items]
Investment in a joint venture, percentage of interest				49.00%
Silversea Cruises
Schedule of Equity Method Investments [Line Items]
Number of continents | continent				7
Percentage of business acquired	66.70%
Payments to acquire business	$ 1,020,000,000.00

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Fair Value Measurements and Derivative Instruments (Tables)

12 Months Ended

Dec. 31, 2019

Derivative instruments disclosure

Estimated Fair Value of Financial Instruments that are 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 thousands):

	Fair Value Measurements at December 31, 2019										Fair Value Measurements at December 31, 2018
Description	Total Carrying Amount		Total Fair Value		Level 1(1)		Level 2(2)		Level 3(3)		Total Carrying Amount		Total Fair Value		Level 1(1)		Level 2(2)		Level 3(3)
Assets:
Cash and cash equivalents(4)	$	243,738	$	243,738	$	243,738	—		—		$	287,852	$	287,852	$	287,852	—		—
Total Assets	$	243,738	$	243,738	$	243,738	$	—	$	—	$	287,852	$	287,852	$	287,852	$	—	$	—
Liabilities:
Long-term debt (including current portion of long-term debt)(5)	$	9,370,438	$	10,059,055	—		$	10,059,055	—		$	9,871,267	$	10,244,214	—		$	10,244,214	—
Total Liabilities	$	9,370,438	$	10,059,055	$	—	$	10,059,055	$	—	$	9,871,267	$	10,244,214	$	—	$	10,244,214	$	—

___________________________________________________________________

(1)Inputs based on quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access. Valuation of these items does not entail a significant amount of judgment.

(2)Inputs other than quoted prices included within Level 1 that are observable for the liability, either directly or indirectly. For unsecured revolving credit facilities and unsecured term loans, fair value is determined utilizing the income valuation approach. This valuation model takes into account the contract terms of our debt such as the debt maturity and the interest rate on the debt. The valuation model also takes into account the creditworthiness of the Company.

(3)Inputs that are unobservable. The Company did not use any Level 3 inputs as of December 31, 2019 and 2018.

(4)Consists of cash and marketable securities with original maturities of less than 90 days.

(5)Consists of unsecured revolving credit facilities, senior notes, senior debentures and term loans. These amounts do not include our capital lease obligations or commercial paper.

Company's Financial Instruments Recorded at Fair Value on Recurring Basis

The following table presents information about the Company's financial instruments recorded at fair value on a recurring basis (in thousands):

	Fair Value Measurements at December 31, 2019								Fair Value Measurements at December 31, 2018
Description	Total Fair Value		Level 1(1)		Level 2(2)		Level 3(3)		Total Fair Value		Level 1(1)		Level 2(2)		Level 3(3)
Assets:
Derivative financial instruments(4)	$	39,994	$	—	$	39,994	$	—	$	65,297	$	—	$	65,297	$	—
Total Assets	$	39,994	$	—	$	39,994	$	—	$	65,297	$	—	$	65,297	$	—
Liabilities:
Derivative financial instruments(5)	$	257,728	$	—	$	257,728	$	—	$	201,812	$	—	$	201,812	$	—
Contingent consideration(6)	62,400		—		—		62,400		44,000		—		—		44,000
Total Liabilities	$	320,128	$	—	$	257,728	$	62,400	$	245,812	$	—	$	201,812	$	44,000

___________________________________________________________________

(1)Inputs based on quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access. Valuation of these items does not entail a significant amount of judgment.

(2)Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. For foreign currency forward contracts, interest rate swaps and fuel swaps, fair value is derived using valuation models that utilize the income valuation approach. These valuation models take into account the contract terms, such as maturity as well as other inputs, such as foreign exchange rates and curves, fuel types, fuel curves and interest rate yield curves. Derivative instrument fair values take into account the creditworthiness of the counterparty and the Company.

(3)Inputs that are unobservable.

(4)Consists of foreign currency forward contracts, interest rate swaps and fuel swaps. Refer to the "Fair Value of Derivative Instruments" table for breakdown by instrument type.

(5)Consists of foreign currency forward contracts, interest rate swaps and fuel swaps. Refer to the "Fair Value of Derivative Instruments" table for breakdown by instrument type.

(6)The contingent consideration related to the Silversea Cruises acquisition is estimated by applying a Monte-Carlo simulation method using our closing stock price along with significant inputs not observable in the market, including the probability of achieving the milestones and estimated future operating results. The Monte-Carlo simulation is a generally accepted statistical technique used to generate a defined number of valuation paths in order to develop a reasonable estimate of fair value. Refer to Note 3. Business Combination for further information on the Silversea Cruises acquisition. For the twelve months ended December 31, 2019, we recorded a contingent consideration expense of $18.4 million within Other (expense) income in our consolidated statements of comprehensive income (loss).

Offsetting Assets

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

	Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements
	As of December 31, 2019								As of December 31, 2018
	Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheet		Gross Amount of Eligible Offsetting Recognized Derivative Liabilities		Cash Collateral Received		Net Amount of Derivative Assets		Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheet		Gross Amount of Eligible Offsetting Recognized Derivative Assets		Cash Collateral Received		Net Amount of Derivative Assets
Derivatives subject to master netting agreements	$	39,994	$	(39,994)	$	—	$	—	$	65,297	$	(60,303)	$	—	$	4,994
Total	$	39,994	$	(39,994)	$	—	$	—	$	65,297	$	(60,303)	$	—	$	4,994

Offsetting Liabilities

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

	Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements
	As of December 31, 2019								As of December 31, 2018
	Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheet		Gross Amount of Eligible Offsetting Recognized Derivative Assets		Cash Collateral Pledged		Net Amount of Derivative Liabilities		Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheet		Gross Amount of Eligible Offsetting Recognized Derivative Liabilities		Cash Collateral Pledged		Net Amount of Derivative Liabilities
Derivatives subject to master netting agreements	$	(257,728)	$	39,994	$	—	$	(217,734)	$	(201,812)	$	60,303	$	—	$	(141,509)
Total	$	(257,728)	$	39,994	$	—	$	(217,734)	$	(201,812)	$	60,303	$	—	$	(141,509)

Fuel Swap Agreements

As of December 31, 2019 and 2018, we had the following outstanding fuel swap agreements as hedges of our fuel exposure:

	Fuel Swap Agreements
	As of December 31, 2019	As of December 31, 2018
	(metric tons)
2019	—	856,800
2020	830,500	830,500
2021	488,900	488,900
2022	322,900	322,900
2023	82,400	—

	Fuel Swap Agreements
	As of December 31, 2019		As of December 31, 2018
	(% hedged)
Projected fuel purchases for year:
2019	—		58	%
2020	54	%	54	%
2021	30	%	28	%
2022	19	%	19	%
2023	5	%	—

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 thousands):

	Fair Value of Derivative Instruments
	Asset Derivatives					Liability Derivatives
	Balance Sheet Location	As of December 31, 2019		As of December 31, 2018		Balance Sheet Location	As of December 31, 2019		As of December 31, 2018
		Fair Value		Fair Value			Fair Value		Fair Value
Derivatives designated as hedging instruments under ASC 815-20(1)
Interest rate swaps	Other assets	$	11	$	23,518	Other long-term liabilities	$	64,168	$	40,467
Foreign currency forward contracts	Derivative financial instruments	—		4,044		Derivative financial instruments	75,260		39,665
Foreign currency forward contracts	Other assets	9,380		10,844		Other long-term liabilities	64,711		16,854
Fuel swaps	Derivative financial instruments	16,922		10,966		Derivative financial instruments	16,901		37,627
Fuel swaps	Other assets	8,677		9,204		Other long-term liabilities	33,965		65,182
Total derivatives designated as hedging instruments under ASC 815-20		34,990		58,576			255,005		199,795
Derivatives not designated as hedging instruments under ASC 815-20
Foreign currency forward contracts	Derivative financial Instruments	3,186		1,751		Derivative financial instruments	2,419		808
Foreign currency forward contracts	Other assets	—		1,579		Other long-term liabilities	—		833
Fuel swaps	Derivative financial instruments	1,643		2,804		Derivative financial instruments	295		376
Fuel swaps	Other assets	175		587		Other long-term liabilities	9		—
Total derivatives not designated as hedging instruments under ASC 815-20		5,004		6,721			2,723		2,017
Total derivatives		$	39,994	$	65,297		$	257,728	$	201,812

___________________________________________________________________

(1)Accounting Standard Codification 815-20 "Derivatives and Hedging."

The fair value and line item caption of derivative instruments recorded within our consolidated balance sheets for the cumulative basis adjustment for fair value hedges were as follows (in thousands):

Line Item in the Statement of Financial Position Where the Hedged Item is Included	Carrying Amount of the Hedged Liabilities				Cumulative amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liabilities
	As of December 31, 2019		As of December 31, 2018		As of December 31, 2019		As of December 31, 2018
Current portion of long-term debt and Long-term debt	$	715,234	$	725,486	$	(1,301)	$	(24,766)
	$	715,234	$	725,486	$	(1,301)	$	(24,766)

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

The location and amount of gain or (loss) recognized in income on fair value and cash flow hedging relationships were as follows (in thousands):

				Year Ended December 31, 2019								Year Ended December 31, 2018
				Fuel Expense		Depreciation and Amortization Expenses		Interest Income (Expense)		Other Income (Expense)		Fuel Expense		Depreciation and Amortization Expenses		Interest Income (Expense)		Other Income (Expense)
Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded				$697,962		$1,245,942		$(381,568)		$	(24,513)	$710,617		$1,033,697		$(300,872)		$	11,107
The effects of fair value and cash flow hedging:
	Gain or (loss) on fair value hedging relationships in Subtopic 815-20
		Interest contracts
			Hedged items	n/a		n/a		$	(23,464)	—		n/a		n/a		4,673		$	—
			Derivatives designated as hedging instruments	n/a		n/a		$	16,607	—		n/a		n/a		$	(8,854)	$	—
	Gain or (loss) on cash flow hedging relationships in Subtopic 815-20
		Interest contracts
			Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income	n/a		n/a		$	(4,289)	n/a		n/a		n/a		$	(10,931)	n/a
		Commodity contracts
			Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income	$	29,929	n/a		n/a		$	(1,292)	$	1,366	n/a		n/a		$	(1,580)
		Foreign exchange contracts
			Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income	n/a		$	(14,063)	n/a		$	(5,080)	n/a		$	(12,843)	n/a		$	12,855

				Year Ended December 31, 2017
				Fuel Expense		Depreciation and Amortization Expenses		Interest Income (Expense)		Other Income (Expense)
Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded				$	681,118	$	951,194	$	(269,881)	$	(5,289)
The effects of fair value and cash flow hedging:
	Gain or (loss) on fair value hedging relationships in Subtopic 815-20
		Interest contracts
			Hedged items	n/a		n/a		$	—	$	6,065
			Derivatives designated as hedging instruments	n/a		n/a		$	3,007	$	(3,139)
	Gain or (loss) on cash flow hedging relationships in Subtopic 815-20
		Interest contracts
			Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income	n/a		n/a		$	(31,603)	n/a
		Commodity contracts
			Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income	$	(141,689)	n/a		n/a		$	7,382
		Foreign exchange contracts
			Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income	n/a		$	(13,248)	n/a		$	(9,472)

Fair Value and Line Item Caption of Non-derivative Instruments

The carrying value and line item caption of non-derivative instruments designated as hedging instruments recorded within our consolidated balance sheets were as follows (in thousands):

		Carrying Value
Non-derivative instrument designated as hedging instrument under ASC 815-20	Balance Sheet Location	As of December 31, 2019		As of December 31, 2018
Foreign currency debt	Current portion of long-term debt	$	73,572	$	38,168
Foreign currency debt	Long-term debt	284,506		281,984
		$	358,078	$	320,152

Effect of Non-derivative Instruments Qualifying and Designated as Hedging Instruments in Net Investment Hedges on Consolidated Financial Statements

The effect of non-derivative instruments qualifying and designated as net investment hedging instruments on the consolidated financial statements was as follows (in thousands):

	Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss)
Non-derivative instruments under ASC 815-20 Net Investment Hedging Relationships	Year Ended December 31, 2019		Year Ended December 31, 2018		Year Ended December 31, 2017
Foreign Currency Debt	$	6,111	$	13,210	$	(38,971)
	$	6,111	$	13,210	$	(38,971)

Not Designated as Hedging Instrument

Derivative instruments disclosure

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

The effect of derivatives not designated as hedging instruments on the consolidated financial statements was as follows (in thousands):

		Amount of Gain (Loss) Recognized in Income on Derivative
Derivatives Not Designated as Hedging Instruments under ASC 815-20	Location of Gain (Loss) Recognized in Income on Derivative	Year Ended December 31, 2019		Year Ended December 31, 2018		Year Ended December 31, 2017
Foreign currency forward contracts	Other income (expense)	$	1,356	$	(62,423)	$	61,952
Fuel swaps	Fuel	(37)		1,161		—
Fuel swaps	Other income (expense)	112		114		(1,133)
		$	1,431	$	(61,148)	$	60,819

Fair value hedging

Derivative instruments disclosure

Schedule of Interest Rate Derivatives

At December 31, 2019 and 2018, we maintained interest rate swap agreements on the following fixed-rate debt instruments:

Debt Instrument	Swap Notional as of December 31, 2019 (In thousands)		Maturity	Debt Fixed Rate	Swap Floating Rate: LIBOR plus	All-in Swap Floating Rate as of December 31, 2019
Oasis of the Seas term loan	$	70,000	October 2021	5.41%	3.87%	5.80%
Unsecured senior notes	650,000		November 2022	5.25%	3.63%	5.54%
	$	720,000

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

The effect of derivative instruments qualifying and designated as hedging instruments and the related hedged items in fair value hedges on the consolidated statements of comprehensive income (loss) was as follows (in thousands):

	Location of Gain (Loss) Recognized in Income on Derivative and Hedged Item	Amount of Gain (Loss) Recognized in Income on Derivative						Amount of Gain (Loss) Recognized in Income on Hedged Item
Derivatives and related Hedged Items under ASC 815-20 Fair Value Hedging Relationships		Year Ended December 31, 2019		Year Ended December 31, 2018		Year Ended December 31, 2017		Year Ended December 31, 2019		Year Ended December 31, 2018		Year Ended December 31, 2017
Interest rate swaps	Interest expense (income), net of interest capitalized	$	16,607	$	(8,854)	$	3,007	$	(23,464)	$	4,673	$	—
Interest rate swaps	Other income (expense)	—		—		(3,139)		—		—		6,065
		$	16,607	$	(8,854)	$	(132)	$	(23,464)	$	4,673	$	6,065

Cash flow hedge

Derivative instruments disclosure

Schedule of Interest Rate Derivatives

At December 31, 2019 and 2018, we maintained interest rate swap agreements on the following floating-rate debt instruments:

Debt Instrument	Swap Notional as of December 31, 2019 (In thousands)		Maturity	Debt Floating Rate		All-in Swap Fixed Rate
Celebrity Reflection term loan	$	272,708	October 2024	LIBOR plus	0.40%	2.85%
Quantum of the Seas term loan	428,750		October 2026	LIBOR plus	1.30%	3.74%
Anthem of the Seas term loan	453,125		April 2027	LIBOR plus	1.30%	3.86%
Ovation of the Seas term loan	587,917		April 2028	LIBOR plus	1.00%	3.16%
Harmony of the Seas term loan (1)	551,325		May 2028	EURIBOR plus	1.15%	2.26%
Odyssey of the Seas term loan(2)	460,000		October 2032	LIBOR plus	0.95%	3.20%
	$	2,753,825

___________________________________________________________________

(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 December 31, 2019.

(2) Interest rate swap agreements hedging the term loan for Odyssey of the Seas include LIBOR zero-floors matching the hedged debt LIBOR zero-floor. The anticipated unsecured term loan for the financing of Odyssey of the Seas is expected to be drawn in October 2020.

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

The effect of derivative instruments qualifying and designated as cash flow hedging instruments on the consolidated financial statements was as follows (in thousands):

	Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivative						Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income	Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
Derivatives under ASC 815-20 Cash Flow Hedging Relationships	Year Ended December 31, 2019		Year Ended December 31, 2018		Year Ended December 31, 2017			Year Ended December 31, 2019		Year Ended December 31, 2018		Year Ended December 31, 2017
Interest rate swaps	$	(72,732)	$	18,578	$	(13,312)	Interest expense	$	(4,289)	$	(10,931)	$	(31,603)
Foreign currency forward contracts	(148,881)		(222,645)		276,573		Depreciation and amortization expenses	(14,063)		(12,843)		(10,840)
Foreign currency forward contracts	—		—		—		Other income (expense)	(5,080)		12,855		(9,472)
Foreign currency forward contracts	—		—		—		Other indirect operating expenses	—		—		—
Foreign currency collar options	—		—		—		Depreciation and amortization expenses	—		—		(2,408)
Fuel swaps	—		—		—		Other income (expense)	(1,292)		(1,580)		7,382
Fuel swaps	75,505		(93,927)		118,604		Fuel	29,929		1,366		(141,689)
	$	(146,108)	$	(297,994)	$	381,865		$	5,205	$	(11,133)	$	(188,630)

The table below represents amounts excluded from the assessment of effectiveness for our net investment hedging instruments for which the difference between changes in fair value and periodic amortization is recorded in accumulated other comprehensive income (loss) (in thousands):

Gain (Loss) Recognized in Income (Net Investment Excluded Components)	Year Ended December 31, 2019
Net inception fair value at January 1, 2019	$	(8,359)
Amount of gain recognized in income on derivatives for the year ended December 31, 2019	4,024
Amount of loss remaining to be amortized in accumulated other comprehensive loss as of December 31, 2019	(3,673)
Fair value at December 31, 2019	$	(8,008)

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Redeemable Noncontrolling Interest (Tables)

12 Months Ended

Dec. 31, 2019

Noncontrolling Interest [Abstract]

Schedule of Redeemable Noncontrolling Interest

The following table presents changes in the redeemable noncontrolling interest as of December 31, 2019 (in thousands):

Balance as of January 1, 2018	$	—
Additions (Silversea Cruises acqusition)	537,770
Net income attributable to noncontrolling interest, including the contractual accretion of the put options	4,750
Other	(500)
Balance at December 31, 2018	$	542,020
Net income attributable to noncontrolling interest, including the contractual accretion of the put options	28,713
Distribution to noncontrolling interest	(752)
Balance at December 31, 2019	$	569,981

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Restructuring Charges (Summary of Restructuring Costs) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Restructuring Reserve [Roll Forward]
Balance at the beginning of the period	$ 0
Accruals	12,026,000	$ 0	$ 0
Payments	514,000
Balance at the end of the period	11,512,000	0
Cumulative Charges Incurred	12,026,000
Termination benefits
Restructuring Reserve [Roll Forward]
Balance at the beginning of the period	0
Accruals	8,880,000
Payments	491,000
Balance at the end of the period	8,389,000	0
Cumulative Charges Incurred	8,880,000
Contract termination costs
Restructuring Reserve [Roll Forward]
Balance at the beginning of the period	0
Accruals	338,000
Payments	0
Balance at the end of the period	338,000	0
Cumulative Charges Incurred	338,000
Other related costs
Restructuring Reserve [Roll Forward]
Balance at the beginning of the period	0
Accruals	2,808,000
Payments	23,000
Balance at the end of the period	2,785,000	$ 0
Cumulative Charges Incurred	$ 2,808,000

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Other Assets (Share of equity income from investments) (Details) $ in Thousands, € in Millions	12 Months Ended
	Dec. 31, 2019 USD ($)	Dec. 31, 2019 EUR (€)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Schedule of Equity Method Investments [Line Items]
Share of equity income from investments	$ 230,980		$ 210,756	$ 156,247
Dividends received	150,177		$ 243,101	$ 109,677
TUI Cruises
Schedule of Equity Method Investments [Line Items]
Dividends received	$ 190,300	€ 170.0

XML

Commitments and Contingencies (Narrative) (Details)		1 Months Ended			12 Months Ended
	Aug. 27, 2019 lawsuit	Dec. 31, 2019 USD ($) berth ship	Sep. 30, 2019 USD ($) agreement berth	Jun. 30, 2019 USD ($)	Dec. 31, 2019 USD ($) berth ship	Dec. 31, 2017 EUR (€) ship	Dec. 31, 2016 EUR (€) ship berth	Dec. 31, 2015 EUR (€) berth	Mar. 31, 2020 USD ($)	Dec. 31, 2019 EUR (€) berth ship	Sep. 30, 2019 EUR (€) berth	Dec. 31, 2018
Commitments and Contingencies
Approximate berths		55,300			55,300					55,300
Maximum borrowing capacity | $									$ 3,500,000,000
Fixed interest rate on long-term debt		62.10%			62.10%					62.10%		59.10%
Aggregate cost of ships expected to enter service | $					$ 14,800,000,000
Deposit for the purchase of ships expected to enter service | $		$ 881,500,000			$ 881,500,000
Percentage of aggregate cost exposed to fluctuations in the euro exchange rate		65.90%			65.90%					65.90%		53.50%
Number of claims filed | lawsuit	2
Project edge class ship term loans | Project edge-class ship
Commitments and Contingencies
Bank financing commitment percentage							80.00%
Percentage of unsecured term loan guaranteed by an export credit agency							100.00%
Long term debt, stated interest rate (as a percent)							3.23%
Unsecured term loan, amortization period							12 years
Project edge class ship term loans | Project edge ship II
Commitments and Contingencies
Unsecured term loan, construction financing commitment per ship		$ 704,000,000.0			$ 704,000,000.0		€ 627,100,000
Credit agreement
Commitments and Contingencies
Number of months considered to determine requirement of prepayment of debts					24 months
Royal Caribbean International | Cruise ships on order | Quantum-class ship
Commitments and Contingencies
Number of ships under construction | ship		1			1					1
Royal Caribbean International | Cruise ships on order | Oasis-class ship
Commitments and Contingencies
Number of ships under construction | ship		2			2					2
Royal Caribbean International | Cruise ships on order | Icon-class ships
Commitments and Contingencies
Number of ships under construction | ship		3			3	2				3
Approximate berths		32,400			32,400					32,400
Royal Caribbean International | Cruise ships on order | Silversea Cruises
Commitments and Contingencies
Number of ships under construction | ship		5			5					5
Approximate berths		2,400			2,400					2,400
Celebrity Cruise Ships | Celebrity Beyond
Commitments and Contingencies
Approximate berths		3,250			3,250					3,250
Celebrity Cruise Ships | Third Edge Class Ship
Commitments and Contingencies
Approximate berths		3,250			3,250					3,250
Celebrity Cruise Ships | Project edge-class ship
Commitments and Contingencies
Number of ships under construction | ship							2
Approximate berths							2,900
Celebrity Cruise Ships | Cruise ships on order | Three project edge class ships
Commitments and Contingencies
Number of ships under construction | ship		3			3					3
Approximate berths		9,400			9,400					9,400
Project Icon
Commitments and Contingencies
Percentage of unsecured term loan guaranteed by an export credit agency						100.00%
Project Icon | Royal Caribbean International
Commitments and Contingencies
Approximate berths		5,600			5,600					5,600
Bank financing commitment percentage						80.00%
Project Icon | Euler Hermes
Commitments and Contingencies
Percentage of unsecured term loan guaranteed by an export credit agency						95.00%
Third and Fourth Edge Class Ships and Fifth Oasis Class Ship
Commitments and Contingencies
Bank financing commitment percentage						80.00%
Percentage of unsecured term loan guaranteed by an export credit agency						100.00%
Fifth Oasis Class Ship | Royal Caribbean International
Commitments and Contingencies
Approximate berths		5,700			5,700					5,700
Quantum Class Fifth Ship
Commitments and Contingencies
Approximate berths								4,200
Quantum Class Fifth Ship | Unsecured term loan maturing twelve years after ship delivery
Commitments and Contingencies
Long term debt, stated interest rate (as a percent)		3.45%			3.45%					3.45%
Unsecured term loan, construction financing commitment per ship		$ 872,700,000			$ 872,700,000			€ 777,500,000
Quantum Class Fifth Ship | Quantum of the Seas unsecured term loans
Commitments and Contingencies
Bank financing commitment percentage								80.00%
Unsecured term loan, amortization period							12 years
Quantum Class Fifth Ship | LIBOR | Unsecured term loan maturing twelve years after ship delivery
Commitments and Contingencies
Margin on floating rate base (as a percent)					0.95%
Quantum Class Fifth Ship | Euler Hermes | Quantum of the Seas unsecured term loans
Commitments and Contingencies
Percentage of unsecured term loan guaranteed by an export credit agency								95.00%
Evolution Class, Unnamed Ship One | Silversea Cruises
Commitments and Contingencies
Approximate berths			600								600
Evolution Class, Unnamed Ship Two | Silversea Cruises
Commitments and Contingencies
Approximate berths			600								600
Sixth Oasis Class Ship | Sixth Oasis Class Ship Term Loan
Commitments and Contingencies
Bank financing commitment percentage		80.00%			80.00%					80.00%
Sixth Oasis Class Ship | Royal Caribbean International
Commitments and Contingencies
Approximate berths		5,700			5,700					5,700
Sixth Oasis Class Ship | BpiFAE
Commitments and Contingencies
Percentage of unsecured term loan guaranteed by an export credit agency		100.00%
Third Icon Class Ship | Third Icon Class Ship Term Loan
Commitments and Contingencies
Bank financing commitment percentage		80.00%			80.00%					80.00%
Third Icon Class Ship | Royal Caribbean International
Commitments and Contingencies
Approximate berths		5,600			5,600					5,600
Third Icon Class Ship | Euler Hermes
Commitments and Contingencies
Percentage of unsecured term loan guaranteed by an export credit agency		95.00%
Third Icon Class Ship | Finnvera
Commitments and Contingencies
Percentage of unsecured term loan guaranteed by an export credit agency		95.00%
Minimum | Credit agreement
Commitments and Contingencies
Debt instrument covenant, minimum percentage of ownership by a person		50.00%			50.00%					50.00%
Minimum | Debt Securities
Commitments and Contingencies
Debt instrument covenant, minimum percentage of ownership by a person		50.00%			50.00%					50.00%
Unsecured term loans | Unsecured term loan maturing twelve years after ship delivery
Commitments and Contingencies
Unsecured term loan, amortization period						12 years
Unsecured term loans | Silver Moon Credit Agreement
Commitments and Contingencies
Long-term debt | $				$ 300,000,000
Unsecured term loans | LIBOR | Silver Moon Credit Agreement
Commitments and Contingencies
Margin on floating rate base (as a percent)				1.50%
Unsecured term loans | Euler Hermes
Commitments and Contingencies
Percentage of unsecured term loan guaranteed by an export credit agency			95.00%
Unsecured term loans | Silversea Cruises | Credit agreement
Commitments and Contingencies
Number of credit agreements | agreement			2
Unsecured term loans | Silversea Cruises | Evolution Class, Unnamed Ship One
Commitments and Contingencies
Bank financing commitment percentage			80.00%								80.00%
Long term debt, stated interest rate (as a percent)			4.14%								4.14%
Unsecured term loan, amortization period			12 years
Unsecured term loan, construction financing commitment per ship			$ 394,700,000								€ 351,600,000
Unsecured term loans | Silversea Cruises | Evolution Class, Unnamed Ship Two
Commitments and Contingencies
Bank financing commitment percentage			80.00%								80.00%
Long term debt, stated interest rate (as a percent)			4.18%								4.18%
Unsecured term loan, construction financing commitment per ship			$ 403,000,000.0								€ 359,000,000.0
Unsecured term loans | Silversea Cruises | LIBOR | Evolution Class, Unnamed Ship One
Commitments and Contingencies
Margin on floating rate base (as a percent)			0.79%
Unsecured term loans | Silversea Cruises | LIBOR | Evolution Class, Unnamed Ship Two
Commitments and Contingencies
Margin on floating rate base (as a percent)			0.83%
Unsecured term loans | Project Icon | Unsecured term loan maturing twelve years after ship delivery
Commitments and Contingencies
Maximum borrowing capacity		$ 1,600,000,000			$ 1,600,000,000	€ 1,400,000,000
Percentage of debt bearing fixed interest						75.00%
Unsecured term loan, amortization period						12 years
Unsecured term loans | First Project Icon Class Ship | Unsecured term loan maturing twelve years after ship delivery
Commitments and Contingencies
Long term debt, stated interest rate (as a percent)						3.56%
Unsecured term loans | Second Project Icon Class Ship | Unsecured term loan maturing twelve years after ship delivery
Commitments and Contingencies
Long term debt, stated interest rate (as a percent)						3.76%
Unsecured term loans | Third Edge Class Ship | Unsecured term loan maturing twelve years after ship delivery
Commitments and Contingencies
Maximum borrowing capacity | €						€ 684,200,000
Long term debt, stated interest rate (as a percent)						1.28%
Unsecured term loans | Fourth Edge Class Ship | Unsecured term loan maturing twelve years after ship delivery
Commitments and Contingencies
Maximum borrowing capacity		802,100,000			802,100,000	€ 714,600,000
Unsecured term loans | Fifth Oasis Class Ship | Unsecured term loan maturing twelve years after ship delivery
Commitments and Contingencies
Maximum borrowing capacity		$ 1,200,000,000			$ 1,200,000,000	€ 1,100,000,000
Unsecured term loans | Fourth Edge and Fifth Oasis Class Ships | Unsecured term loan maturing twelve years after ship delivery
Commitments and Contingencies
Long term debt, stated interest rate (as a percent)						3.18%
Unsecured term loans | Sixth Oasis Class Ship | Sixth Oasis Class Ship Term Loan
Commitments and Contingencies
Long term debt, stated interest rate (as a percent)		3.00%			3.00%					3.00%
Unsecured term loan, amortization period		12 years
Unsecured term loan, construction financing commitment per ship		$ 1,500,000,000			$ 1,500,000,000					€ 1,300,000,000
Unsecured term loans | Third Icon Class Ship | Third Icon Class Ship Term Loan
Commitments and Contingencies
Percentage of debt bearing fixed interest		60.00%			60.00%					60.00%
Unsecured term loan, amortization period		12 years
Unsecured term loan, construction financing commitment per ship		$ 1,600,000,000			$ 1,600,000,000					€ 1,400,000,000
Fixed interest rate on long-term debt		3.29%			3.29%					3.29%
Unsecured term loans | Third Icon Class Ship | LIBOR | Third Icon Class Ship Term Loan
Commitments and Contingencies
Margin on floating rate base (as a percent)		0.85%
Unsecured term loans | Minimum
Commitments and Contingencies
Long term debt, stated interest rate (as a percent)		2.53%			2.53%					2.53%
Unsecured term loans | Minimum | First Project Icon Class Ship | LIBOR | Unsecured term loan maturing twelve years after ship delivery
Commitments and Contingencies
Margin on floating rate base (as a percent)						1.10%
Unsecured term loans | Minimum | Second Project Icon Class Ship | LIBOR | Unsecured term loan maturing twelve years after ship delivery
Commitments and Contingencies
Margin on floating rate base (as a percent)						1.15%
Unsecured term loans | Maximum
Commitments and Contingencies
Long term debt, stated interest rate (as a percent)		5.41%			5.41%					5.41%
Unsecured term loans | Maximum | First Project Icon Class Ship | LIBOR | Unsecured term loan maturing twelve years after ship delivery
Commitments and Contingencies
Margin on floating rate base (as a percent)						1.15%
Unsecured term loans | Maximum | Second Project Icon Class Ship | LIBOR | Unsecured term loan maturing twelve years after ship delivery
Commitments and Contingencies
Margin on floating rate base (as a percent)						1.20%

XML

Fair Value Measurements and Derivative Instruments (Interest Rate Risk) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed interest rate on long-term debt	62.10%	59.10%
Interest rate swaps
Interest Rate Cash Flow Hedges [Abstract]
Notional amount	$ 3,500,000	$ 3,400,000
Fair value hedging | Interest rate swaps
Interest Rate Fair Value Hedges [Abstract]
Long-term debt	720,000
Cash flow hedge | Interest rate swaps
Interest Rate Cash Flow Hedges [Abstract]
Notional Amount	2,753,825
Oasis of the Seas Unsecured Term Loan | Fair value hedging | Interest rate swaps
Interest Rate Fair Value Hedges [Abstract]
Long-term debt	$ 70,000
Long term debt, stated interest rate (as a percent)	5.41%
Fixed Rate 5.25% Debt | Fair value hedging | Interest rate swaps
Interest Rate Fair Value Hedges [Abstract]
Long-term debt	$ 650,000
Long term debt, stated interest rate (as a percent)	5.25%
Floating Rate Celebrity Reflection Term Loan | Cash flow hedge | Interest rate swaps
Interest Rate Cash Flow Hedges [Abstract]
Notional Amount	$ 272,708
All-in Swap Fixed Rate	2.85%
Quantum of the Seas Unsecured Term Loan | Cash flow hedge | Interest rate swaps
Interest Rate Cash Flow Hedges [Abstract]
Notional Amount	$ 428,750
All-in Swap Fixed Rate	3.74%
Anthem of the Seas Unsecured Term Loan | Cash flow hedge | Interest rate swaps
Interest Rate Cash Flow Hedges [Abstract]
Notional Amount	$ 453,125
All-in Swap Fixed Rate	3.86%
Ovation of the Seas Unsecured Term Loan | Cash flow hedge | Interest rate swaps
Interest Rate Cash Flow Hedges [Abstract]
Notional Amount	$ 587,917
All-in Swap Fixed Rate	3.16%
Harmony of the Seas Unsecured Term Loan | Cash flow hedge | Interest rate swaps
Interest Rate Cash Flow Hedges [Abstract]
Notional Amount	$ 551,325
All-in Swap Fixed Rate	2.26%
Odyssey | Cash flow hedge | Interest rate swaps
Interest Rate Cash Flow Hedges [Abstract]
Notional Amount	$ 460,000
All-in Swap Fixed Rate	3.20%
London Interbank Offered Rate (LIBOR) | Oasis of the Seas Unsecured Term Loan | Fair value hedging | Interest rate swaps
Interest Rate Fair Value Hedges [Abstract]
Swap Floating Rate: LIBOR plus	3.87%
All-in Swap Floating Rate	5.80%
London Interbank Offered Rate (LIBOR) | Fixed Rate 5.25% Debt | Fair value hedging | Interest rate swaps
Interest Rate Fair Value Hedges [Abstract]
Swap Floating Rate: LIBOR plus	3.63%
All-in Swap Floating Rate	5.54%
London Interbank Offered Rate (LIBOR) | Floating Rate Celebrity Reflection Term Loan | Cash flow hedge | Interest rate swaps
Interest Rate Cash Flow Hedges [Abstract]
Debt Floating Rate	0.40%
London Interbank Offered Rate (LIBOR) | Quantum of the Seas Unsecured Term Loan | Cash flow hedge | Interest rate swaps
Interest Rate Cash Flow Hedges [Abstract]
Debt Floating Rate	1.30%
London Interbank Offered Rate (LIBOR) | Anthem of the Seas Unsecured Term Loan | Cash flow hedge | Interest rate swaps
Interest Rate Cash Flow Hedges [Abstract]
Debt Floating Rate	1.30%
London Interbank Offered Rate (LIBOR) | Ovation of the Seas Unsecured Term Loan | Cash flow hedge | Interest rate swaps
Interest Rate Cash Flow Hedges [Abstract]
Debt Floating Rate	1.00%
London Interbank Offered Rate (LIBOR) | Odyssey | Cash flow hedge | Interest rate swaps
Interest Rate Cash Flow Hedges [Abstract]
Debt Floating Rate	0.95%
Euro Interbank Offered Rate (EURIBOR) | Harmony of the Seas Unsecured Term Loan | Cash flow hedge | Interest rate swaps
Interest Rate Cash Flow Hedges [Abstract]
Debt Floating Rate	1.15%

XML

Fair Value Measurements and Derivative Instruments (Income Statement) (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fuel Expense	$ 681,118	$ 697,962	$ 710,617
Depreciation and amortization expenses	951,194	1,245,942	1,033,697	$ 951,194
Interest Income (Expense)	(269,881)	(381,568)	(300,872)
Other Income (Expense)	(5,289)	(24,513)	11,107	(5,289)
Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income		5,205	(11,133)
Interest Rate Contract | Interest Expense
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income		(4,289)	(10,931)
Fuel contracts | Other income (expense)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income		(1,292)	(1,580)
Fuel contracts | Fuel cost
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income		29,929	1,366
Foreign exchange contracts | Other income (expense)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income		(5,080)	12,855
Foreign exchange contracts | Depreciation and amortization expenses
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income		(14,063)	(12,843)
Fair value hedging
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Gain (loss) on fair value hedge		(23,464)	4,673	6,065
Change in unrealized gain (loss) on fair value hedging instruments		16,607	(8,854)	$ (132)
Fair value hedging | Interest Rate Contract | Interest Expense
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Gain (loss) on fair value hedge	0	(23,464)	4,673
Change in unrealized gain (loss) on fair value hedging instruments	3,007	16,607	(8,854)
Fair value hedging | Interest Rate Contract | Other income (expense)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Gain (loss) on fair value hedge	6,065	0	0
Change in unrealized gain (loss) on fair value hedging instruments	(3,139)	$ 0	$ 0
Cash flow hedge | Interest Rate Contract | Interest Expense
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income	(31,603)
Cash flow hedge | Fuel contracts | Other income (expense)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income	7,382
Cash flow hedge | Fuel contracts | Fuel cost
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income	(141,689)
Cash flow hedge | Foreign exchange contracts | Other income (expense)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income	(9,472)
Cash flow hedge | Foreign exchange contracts | Depreciation and amortization expenses
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income	$ (13,248)

XML

Fair Value Measurements and Derivative Instruments (Net Investment Excluded) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net [Abstract]
Net inception fair value at January 1, 2019		$ (8,359)
Amount of gain recognized in income on derivatives for the year ended December 31, 2019	$ 4,024
Amount of loss remaining to be amortized in accumulated other comprehensive loss as of December 31, 2019	(3,673)
Fair value at December 31, 2019	$ (8,008)

XML

Debt (Schedule of Long-Term Debt) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Long-Term Debt
Debt	$ 11,241,483,000	$ 10,984,438,000
Less: unamortized debt issuance costs	(206,607,000)	(206,739,000)
Total debt, net of unamortized debt issuance costs	11,034,876,000	10,777,699,000
Less—current portion including commercial paper	(2,620,766,000)	(2,422,329,000)
Long-term portion	$ 8,414,110,000	$ 8,355,370,000
Weighted average interest rate	3.99%	4.14%
Commercial paper
Long-Term Debt
Long term debt, current interest rate (as a percent)	2.19%
Long-term debt	$ 1,434,180,000	$ 775,488,000
Fixed rate debt:
Long-Term Debt
Long-term debt	5,215,452,000	4,542,982,000
Senior notes
Long-Term Debt
Long-term debt	$ 1,746,280,000	1,724,194,000
Secured senior notes
Long-Term Debt
Long term debt, stated interest rate (as a percent)	7.25%
Long-term debt	$ 662,398,000	670,437,000
Unsecured term loans
Long-Term Debt
Long-term debt	2,806,774,000	2,148,351,000
Total variable rate debt
Long-Term Debt
Long-term debt	$ 5,795,773,000	6,310,512,000
Unsecured revolving credit facilities
Long-Term Debt
Long term debt, current interest rate (as a percent)	2.79%
Long-term debt	$ 165,000,000	795,000,000
Long term debt, facility fee (as a percent)	0.125%
Unsecured revolving credit facilities | $1.7 billion unsecured revolving credit facility
Long-Term Debt
Long term debt, current interest rate (as a percent)	2.91%
Long term debt, principal amount	$ 1,700,000,000
Unsecured revolving credit facilities | $1.2 billion unsecured revolving credit facility
Long-Term Debt
Long term debt, current interest rate (as a percent)	2.91%
Long term debt, principal amount	$ 1,200,000,000
USD unsecured term loan
Long-Term Debt
Long-term debt	3,519,853,000	4,005,848,000
Euro unsecured term loan
Long-Term Debt
Long-term debt	676,740,000	734,176,000
Finance lease liabilities
Long-Term Debt
Long-term debt	$ 230,258,000
Finance lease liabilities
Long-Term Debt
Long-term debt		$ 130,944,000
LIBOR | Unsecured revolving credit facilities | $1.7 billion unsecured revolving credit facility
Long-Term Debt
Margin on floating rate base (as a percent)	1.00%
LIBOR | Unsecured revolving credit facilities | $1.2 billion unsecured revolving credit facility
Long-Term Debt
Margin on floating rate base (as a percent)	1.00%
Minimum | Senior notes
Long-Term Debt
Long term debt, stated interest rate (as a percent)	2.65%
Minimum | Unsecured term loans
Long-Term Debt
Long term debt, stated interest rate (as a percent)	2.53%
Minimum | USD unsecured term loan
Long-Term Debt
Long term debt, current interest rate (as a percent)	2.31%
Minimum | Euro unsecured term loan
Long-Term Debt
Long term debt, current interest rate (as a percent)	1.15%
Maximum | Senior notes
Long-Term Debt
Long term debt, stated interest rate (as a percent)	7.50%
Maximum | Unsecured term loans
Long-Term Debt
Long term debt, stated interest rate (as a percent)	5.41%
Maximum | USD unsecured term loan
Long-Term Debt
Long term debt, current interest rate (as a percent)	5.64%
Maximum | Euro unsecured term loan
Long-Term Debt
Long term debt, current interest rate (as a percent)	1.58%

XML

Cover Page	May 13, 2020
Cover [Abstract]
Document Type	8-K
Document Period End Date	May 13, 2020
Entity Registrant Name	ROYAL CARIBBEAN CRUISES LTD.
Entity Incorporation, State or Country Code	N0
Entity File Number	1-11884
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
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common stock, par value $0.01 per share
Trading Symbol	RCL
Security Exchange Name	NYSE
Entity Emerging Growth Company	false
Entity Central Index Key	0000884887
Amendment Flag	false
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY

XML

Earnings Per Share

12 Months Ended

Dec. 31, 2019

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

A reconciliation between basic and diluted earnings per share is as follows (in thousands, except per share data):

	Year Ended December 31,
	2019		2018		2017
Net Income attributable to Royal Caribbean Cruises Ltd. for basic and diluted earnings per share	$	1,878,887	$	1,811,042	$	1,625,133
Weighted-average common shares outstanding	209,405		210,570		214,617
Dilutive effect of stock-based awards	525		984		1,077
Diluted weighted-average shares outstanding	209,930		211,554		215,694
Basic earnings per share	$	8.97	$	8.60	$	7.57
Diluted earnings per share	$	8.95	$	8.56	$	7.53

There were no antidilutive shares for the years ended December 31, 2019, 2018 and 2017.

XML

Fair Value Measurements and Derivative Instruments

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements and Derivative Instruments

Fair Value Measurements and Derivative Instruments

Fair Value Measurements

The estimated fair value of our financial instruments that are not measured at fair value, categorized based upon the fair value hierarchy, are as follows (in thousands):

	Fair Value Measurements at December 31, 2019										Fair Value Measurements at December 31, 2018
Description	Total Carrying Amount		Total Fair Value		Level 1(1)		Level 2(2)		Level 3(3)		Total Carrying Amount		Total Fair Value		Level 1(1)		Level 2(2)		Level 3(3)
Assets:
Cash and cash equivalents(4)	$	243,738	$	243,738	$	243,738	—		—		$	287,852	$	287,852	$	287,852	—		—
Total Assets	$	243,738	$	243,738	$	243,738	$	—	$	—	$	287,852	$	287,852	$	287,852	$	—	$	—
Liabilities:
Long-term debt (including current portion of long-term debt)(5)	$	9,370,438	$	10,059,055	—		$	10,059,055	—		$	9,871,267	$	10,244,214	—		$	10,244,214	—
Total Liabilities	$	9,370,438	$	10,059,055	$	—	$	10,059,055	$	—	$	9,871,267	$	10,244,214	$	—	$	10,244,214	$	—

___________________________________________________________________

(1)Inputs based on quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access. Valuation of these items does not entail a significant amount of judgment.

(2)Inputs other than quoted prices included within Level 1 that are observable for the liability, either directly or indirectly. For unsecured revolving credit facilities and unsecured term loans, fair value is determined utilizing the income valuation approach. This valuation model takes into account the contract terms of our debt such as the debt maturity and the interest rate on the debt. The valuation model also takes into account the creditworthiness of the Company.

(3)Inputs that are unobservable. The Company did not use any Level 3 inputs as of December 31, 2019 and 2018.

(4)Consists of cash and marketable securities with original maturities of less than 90 days.

(5)Consists of unsecured revolving credit facilities, senior notes, senior debentures and term loans. These amounts do not include our capital lease obligations or commercial paper.

Fair Value Measurements on a Nonrecurring Basis

During 2018, we announced that Skysea Holding would cease cruising operations by the end of 2018. As a result, we did not deem our investment balance to be recoverable and estimated the fair value of our investment to be zero. For further information on our Skysea Holding investment and impairment, refer to Note 8. Other Assets.

Other Financial Instruments

The carrying amounts of accounts receivable, accounts payable, accrued interest, accrued expenses and commercial paper approximate fair value as of December 31, 2019 and 2018.

Assets and liabilities that are recorded at fair value have been categorized based upon the fair value hierarchy. The following table presents information about the Company's financial instruments recorded at fair value on a recurring basis (in thousands):

	Fair Value Measurements at December 31, 2019								Fair Value Measurements at December 31, 2018
Description	Total Fair Value		Level 1(1)		Level 2(2)		Level 3(3)		Total Fair Value		Level 1(1)		Level 2(2)		Level 3(3)
Assets:
Derivative financial instruments(4)	$	39,994	$	—	$	39,994	$	—	$	65,297	$	—	$	65,297	$	—
Total Assets	$	39,994	$	—	$	39,994	$	—	$	65,297	$	—	$	65,297	$	—
Liabilities:
Derivative financial instruments(5)	$	257,728	$	—	$	257,728	$	—	$	201,812	$	—	$	201,812	$	—
Contingent consideration(6)	62,400		—		—		62,400		44,000		—		—		44,000
Total Liabilities	$	320,128	$	—	$	257,728	$	62,400	$	245,812	$	—	$	201,812	$	44,000

___________________________________________________________________

(1)Inputs based on quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access. Valuation of these items does not entail a significant amount of judgment.

(2)Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. For foreign currency forward contracts, interest rate swaps and fuel swaps, fair value is derived using valuation models that utilize the income valuation approach. These valuation models take into account the contract terms, such as maturity as well as other inputs, such as foreign exchange rates and curves, fuel types, fuel curves and interest rate yield curves. Derivative instrument fair values take into account the creditworthiness of the counterparty and the Company.

(3)Inputs that are unobservable.

(4)Consists of foreign currency forward contracts, interest rate swaps and fuel swaps. Refer to the "Fair Value of Derivative Instruments" table for breakdown by instrument type.

(5)Consists of foreign currency forward contracts, interest rate swaps and fuel swaps. Refer to the "Fair Value of Derivative Instruments" table for breakdown by instrument type.

(6)The contingent consideration related to the Silversea Cruises acquisition is estimated by applying a Monte-Carlo simulation method using our closing stock price along with significant inputs not observable in the market, including the probability of achieving the milestones and estimated future operating results. The Monte-Carlo simulation is a generally accepted statistical technique used to generate a defined number of valuation paths in order to develop a reasonable estimate of fair value. Refer to Note 3. Business Combination for further information on the Silversea Cruises acquisition. For the twelve months ended December 31, 2019, we recorded a contingent consideration expense of $18.4 million within Other (expense) income in our consolidated statements of comprehensive income (loss).

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 December 31, 2019 or

2018, or that will be realized in the future, and do not include expenses that could be incurred in an actual sale or settlement.

We have master International Swaps and Derivatives Association (“ISDA”) agreements in place with our derivative instrument counterparties. These ISDA agreements generally provide for final close out netting with our counterparties for all positions in the case of default or termination of the ISDA agreement. We have determined that our ISDA agreements provide us with rights of setoff on the fair value of derivative instruments in a gain position and those in a loss position with the same counterparty. We have elected not to offset such derivative instrument fair values in our consolidated balance sheets.

See Credit Related Contingent Features for further discussion on contingent collateral requirements for our derivative instruments.

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

	Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements
	As of December 31, 2019								As of December 31, 2018
	Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheet		Gross Amount of Eligible Offsetting Recognized Derivative Liabilities		Cash Collateral Received		Net Amount of Derivative Assets		Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheet		Gross Amount of Eligible Offsetting Recognized Derivative Assets		Cash Collateral Received		Net Amount of Derivative Assets
Derivatives subject to master netting agreements	$	39,994	$	(39,994)	$	—	$	—	$	65,297	$	(60,303)	$	—	$	4,994
Total	$	39,994	$	(39,994)	$	—	$	—	$	65,297	$	(60,303)	$	—	$	4,994

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

	Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements
	As of December 31, 2019								As of December 31, 2018
	Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheet		Gross Amount of Eligible Offsetting Recognized Derivative Assets		Cash Collateral Pledged		Net Amount of Derivative Liabilities		Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheet		Gross Amount of Eligible Offsetting Recognized Derivative Liabilities		Cash Collateral Pledged		Net Amount of Derivative Liabilities
Derivatives subject to master netting agreements	$	(257,728)	$	39,994	$	—	$	(217,734)	$	(201,812)	$	60,303	$	—	$	(141,509)
Total	$	(257,728)	$	39,994	$	—	$	(217,734)	$	(201,812)	$	60,303	$	—	$	(141,509)

Derivative Instruments

We are exposed to market risk attributable to changes in interest rates, foreign currency exchange rates and fuel prices. We try to mitigate these risks through a combination of our normal operating and financing activities and through the use of derivative financial instruments pursuant to our hedging practices and policies. The financial impact of these hedging instruments is primarily offset by corresponding changes in the underlying exposures being hedged. We achieve this by closely matching the notional amount, term and conditions of the derivative instrument with the underlying risk being hedged. Although certain of our derivative financial instruments do not qualify or are not accounted for under hedge accounting, our objective is not to hold or issue derivative financial instruments for trading or other speculative purposes.

We enter into various forward, swap and option contracts to manage our interest rate exposure and to limit our exposure to fluctuations in foreign currency exchange rates and fuel prices. These instruments are recorded on the balance sheet at their fair value and the vast majority are designated as hedges. We also use non-derivative financial instruments designated as hedges of our net investment in our foreign operations and investments.

At inception of the hedge relationship, a derivative instrument that hedges the exposure to changes in the fair value of a firm commitment or a recognized asset or liability is designated as a fair value hedge. A derivative instrument that hedges a forecasted transaction or the variability of cash flows related to a recognized asset or liability is designated as a cash flow hedge.

Changes in the fair value of derivatives that are designated as fair value hedges are offset against changes in the fair value of the underlying hedged assets, liabilities or firm commitments. Gains and losses on derivatives that are designated as cash flow hedges are recorded as a component of Accumulated other comprehensive loss until the underlying hedged transactions are recognized in earnings. The foreign currency transaction gain or loss of our non-derivative financial instruments and the changes in the fair value of derivatives designated as hedges of our net investment in foreign operations and investments are recognized as a component of Accumulated other comprehensive loss along with the associated foreign currency translation adjustment of the foreign operation or investment, with the amortization of excluded components affecting earnings.

On an ongoing basis, we assess whether derivatives used in hedging transactions are "highly effective" in offsetting changes in the fair value or cash flow of hedged items. For our net investment hedges, we use the dollar offset method to measure effectiveness. For all other hedging programs, we use the long-haul method to assess hedge effectiveness using regression analysis for each hedge relationship. The methodology for assessing hedge effectiveness is applied on a consistent basis for each one of our hedging programs (i.e., interest rate, foreign currency ship construction, foreign currency net investment and fuel). For our regression analyses, we use an observation period of up to three years, utilizing market data relevant to the hedge horizon of each hedge relationship. High effectiveness is achieved when a statistically valid relationship reflects a high degree of offset and correlation between the changes in the fair values of the derivative instrument and the hedged item. If it is determined that a derivative is not highly effective as a hedge or hedge accounting is discontinued, any change in fair value of the derivative since the last date at which it was determined to be effective is recognized in earnings.

Cash flows from derivative instruments that are designated as fair value or cash flow hedges are classified in the same category as the cash flows from the underlying hedged items. In the event that hedge accounting is discontinued, cash flows subsequent to the date of discontinuance are classified within investing activities. Cash flows from derivative instruments not designated as hedging instruments are classified as investing activities.

We consider the classification of the underlying hedged item’s cash flows in determining the classification for the designated derivative instrument’s cash flows. We classify derivative instrument cash flows from hedges of benchmark interest rate or hedges of fuel expense as operating activities due to the nature of the hedged item. Likewise, we classify derivative instrument cash flows from hedges of foreign currency risk on our newbuild ship payments as investing activities.

Interest Rate Risk

Our exposure to market risk for changes in interest rates primarily relates to our debt obligations including future interest payments. At December 31, 2019 and 2018, approximately 62.1% and 59.1%, respectively, of our debt was effectively fixed. We use interest rate swap agreements to modify our exposure to interest rate movements and to manage our interest expense.

Market risk associated with our fixed rate debt is the potential increase in fair value resulting from a decrease in interest rates. We use interest rate swap agreements that effectively convert a portion of our fixed-rate debt to a floating-rate basis to manage this risk. At December 31, 2019 and 2018, we maintained interest rate swap agreements on the following fixed-rate debt instruments:

Debt Instrument	Swap Notional as of December 31, 2019 (In thousands)		Maturity	Debt Fixed Rate	Swap Floating Rate: LIBOR plus	All-in Swap Floating Rate as of December 31, 2019
Oasis of the Seas term loan	$	70,000	October 2021	5.41%	3.87%	5.80%
Unsecured senior notes	650,000		November 2022	5.25%	3.63%	5.54%
	$	720,000

These interest rate swap agreements are accounted for as fair value hedges.

Market risk associated with our long-term floating rate debt is the potential increase in interest expense from an increase in interest rates. We use interest rate swap agreements that effectively convert a portion of our floating-rate debt to a fixed-rate basis to manage this risk. At December 31, 2019 and 2018, we maintained interest rate swap agreements on the following floating-rate debt instruments:

Debt Instrument	Swap Notional as of December 31, 2019 (In thousands)		Maturity	Debt Floating Rate		All-in Swap Fixed Rate
Celebrity Reflection term loan	$	272,708	October 2024	LIBOR plus	0.40%	2.85%
Quantum of the Seas term loan	428,750		October 2026	LIBOR plus	1.30%	3.74%
Anthem of the Seas term loan	453,125		April 2027	LIBOR plus	1.30%	3.86%
Ovation of the Seas term loan	587,917		April 2028	LIBOR plus	1.00%	3.16%
Harmony of the Seas term loan (1)	551,325		May 2028	EURIBOR plus	1.15%	2.26%
Odyssey of the Seas term loan(2)	460,000		October 2032	LIBOR plus	0.95%	3.20%
	$	2,753,825

___________________________________________________________________

(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 December 31, 2019.

(2) Interest rate swap agreements hedging the term loan for Odyssey of the Seas include LIBOR zero-floors matching the hedged debt LIBOR zero-floor. The anticipated unsecured term loan for the financing of Odyssey of the Seas is expected to be drawn in October 2020.

These interest rate swap agreements are accounted for as cash flow hedges.

The notional amount of interest rate swap agreements related to outstanding debt and our current unfunded financing arrangements as of December 31, 2019 and 2018 was $3.5 billion and $3.4 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 December 31, 2019, the aggregate cost of our ships on order, was $14.8 billion, of which we had deposited $881.5 million as of such date. These amounts do not include any ships placed on order that are contingent upon completion of conditions precedent and/or financing, any ships on order by our Partner Brands and any ships on order placed by Silversea Cruises during the reporting lag period. Refer to Note 19. Commitments and Contingencies, for further information on our ships on order. At December 31, 2019 and 2018, approximately 65.9% and 53.5%, 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 year ended December 31, 2019, we maintained an average of approximately $689.7 million of these foreign currency forward contracts. These instruments are not designated as hedging instruments. For the years ended December 31, 2019, 2018 and 2017, changes in the fair value of the foreign currency forward contracts resulted in gains (losses) of $1.4 million, $(62.4) million and $62.0 million, respectively, which offset gains (losses) arising from the remeasurement of monetary assets and liabilities denominated in foreign currencies in those same years of $0.4 million, $57.6 million and $(75.6) million, respectively. These amounts were recognized in earnings within Other income (expense) in our consolidated statements of comprehensive income (loss).

We consider our investments in our foreign operations to be denominated in relatively stable currencies and of a long-term nature. As of December 31, 2019, we maintained foreign currency forward contracts and designated them as hedges of a portion of our net investments primarily in TUI Cruises of €173.0 million, or approximately $194.2 million based on the exchange rate at December 31, 2019. These forward currency contracts mature in October 2021.

The notional amount of outstanding foreign exchange contracts, excluding the forward contracts entered into to minimize remeasurement volatility, as of December 31, 2019 and 2018 was $2.9 billion and $3.7 billion, respectively.

Non-Derivative Instruments

We also address the exposure of our investments in foreign operations by denominating a portion of our debt in our subsidiaries' and investments' functional currencies and designating it as a hedge of these subsidiaries and investments. We had designated debt as a hedge of our net investments primarily in TUI Cruises of €319.0 million, or approximately $358.1 million, as of December 31, 2019. As of December 31, 2018, we had designated debt as a hedge of our net investments primarily in TUI Cruises of €280.0 million, or approximately $320.2 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. At December 31, 2019, we have hedged the variability in future cash flows for certain forecasted fuel transactions occurring through 2023. As of December 31, 2019 and 2018, we had the following outstanding fuel swap agreements as hedges of our fuel exposure:

	Fuel Swap Agreements
	As of December 31, 2019	As of December 31, 2018
	(metric tons)
2019	—	856,800
2020	830,500	830,500
2021	488,900	488,900
2022	322,900	322,900
2023	82,400	—

	Fuel Swap Agreements
	As of December 31, 2019		As of December 31, 2018
	(% hedged)
Projected fuel purchases for year:
2019	—		58	%
2020	54	%	54	%
2021	30	%	28	%
2022	19	%	19	%
2023	5	%	—

At December 31, 2019 there was no material estimated unrealized net loss associated with our cash flow hedges pertaining to fuel swap agreements to be reclassified to earnings from Accumulated other comprehensive loss within the next twelve months when compared to $26.8 million at December 31, 2018. Reclassification is expected to occur as the result of fuel consumption associated with our hedged forecasted fuel purchases.

The fair value and line item caption of derivative instruments recorded within our consolidated balance sheets were as follows (in thousands):

	Fair Value of Derivative Instruments
	Asset Derivatives					Liability Derivatives
	Balance Sheet Location	As of December 31, 2019		As of December 31, 2018		Balance Sheet Location	As of December 31, 2019		As of December 31, 2018
		Fair Value		Fair Value			Fair Value		Fair Value
Derivatives designated as hedging instruments under ASC 815-20(1)
Interest rate swaps	Other assets	$	11	$	23,518	Other long-term liabilities	$	64,168	$	40,467
Foreign currency forward contracts	Derivative financial instruments	—		4,044		Derivative financial instruments	75,260		39,665
Foreign currency forward contracts	Other assets	9,380		10,844		Other long-term liabilities	64,711		16,854
Fuel swaps	Derivative financial instruments	16,922		10,966		Derivative financial instruments	16,901		37,627
Fuel swaps	Other assets	8,677		9,204		Other long-term liabilities	33,965		65,182
Total derivatives designated as hedging instruments under ASC 815-20		34,990		58,576			255,005		199,795
Derivatives not designated as hedging instruments under ASC 815-20
Foreign currency forward contracts	Derivative financial Instruments	3,186		1,751		Derivative financial instruments	2,419		808
Foreign currency forward contracts	Other assets	—		1,579		Other long-term liabilities	—		833
Fuel swaps	Derivative financial instruments	1,643		2,804		Derivative financial instruments	295		376
Fuel swaps	Other assets	175		587		Other long-term liabilities	9		—
Total derivatives not designated as hedging instruments under ASC 815-20		5,004		6,721			2,723		2,017
Total derivatives		$	39,994	$	65,297		$	257,728	$	201,812

___________________________________________________________________

(1)Accounting Standard Codification 815-20 "Derivatives and Hedging."

The location and amount of gain or (loss) recognized in income on fair value and cash flow hedging relationships were as follows (in thousands):

				Year Ended December 31, 2019								Year Ended December 31, 2018
				Fuel Expense		Depreciation and Amortization Expenses		Interest Income (Expense)		Other Income (Expense)		Fuel Expense		Depreciation and Amortization Expenses		Interest Income (Expense)		Other Income (Expense)
Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded				$697,962		$1,245,942		$(381,568)		$	(24,513)	$710,617		$1,033,697		$(300,872)		$	11,107
The effects of fair value and cash flow hedging:
	Gain or (loss) on fair value hedging relationships in Subtopic 815-20
		Interest contracts
			Hedged items	n/a		n/a		$	(23,464)	—		n/a		n/a		4,673		$	—
			Derivatives designated as hedging instruments	n/a		n/a		$	16,607	—		n/a		n/a		$	(8,854)	$	—
	Gain or (loss) on cash flow hedging relationships in Subtopic 815-20
		Interest contracts
			Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income	n/a		n/a		$	(4,289)	n/a		n/a		n/a		$	(10,931)	n/a
		Commodity contracts
			Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income	$	29,929	n/a		n/a		$	(1,292)	$	1,366	n/a		n/a		$	(1,580)
		Foreign exchange contracts
			Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income	n/a		$	(14,063)	n/a		$	(5,080)	n/a		$	(12,843)	n/a		$	12,855

				Year Ended December 31, 2017
				Fuel Expense		Depreciation and Amortization Expenses		Interest Income (Expense)		Other Income (Expense)
Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded				$	681,118	$	951,194	$	(269,881)	$	(5,289)
The effects of fair value and cash flow hedging:
	Gain or (loss) on fair value hedging relationships in Subtopic 815-20
		Interest contracts
			Hedged items	n/a		n/a		$	—	$	6,065
			Derivatives designated as hedging instruments	n/a		n/a		$	3,007	$	(3,139)
	Gain or (loss) on cash flow hedging relationships in Subtopic 815-20
		Interest contracts
			Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income	n/a		n/a		$	(31,603)	n/a
		Commodity contracts
			Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income	$	(141,689)	n/a		n/a		$	7,382
		Foreign exchange contracts
			Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income	n/a		$	(13,248)	n/a		$	(9,472)

The carrying value and line item caption of non-derivative instruments designated as hedging instruments recorded within our consolidated balance sheets were as follows (in thousands):

		Carrying Value
Non-derivative instrument designated as hedging instrument under ASC 815-20	Balance Sheet Location	As of December 31, 2019		As of December 31, 2018
Foreign currency debt	Current portion of long-term debt	$	73,572	$	38,168
Foreign currency debt	Long-term debt	284,506		281,984
		$	358,078	$	320,152

The effect of derivative instruments qualifying and designated as hedging instruments and the related hedged items in fair value hedges on the consolidated statements of comprehensive income (loss) was as follows (in thousands):

	Location of Gain (Loss) Recognized in Income on Derivative and Hedged Item	Amount of Gain (Loss) Recognized in Income on Derivative						Amount of Gain (Loss) Recognized in Income on Hedged Item
Derivatives and related Hedged Items under ASC 815-20 Fair Value Hedging Relationships		Year Ended December 31, 2019		Year Ended December 31, 2018		Year Ended December 31, 2017		Year Ended December 31, 2019		Year Ended December 31, 2018		Year Ended December 31, 2017
Interest rate swaps	Interest expense (income), net of interest capitalized	$	16,607	$	(8,854)	$	3,007	$	(23,464)	$	4,673	$	—
Interest rate swaps	Other income (expense)	—		—		(3,139)		—		—		6,065
		$	16,607	$	(8,854)	$	(132)	$	(23,464)	$	4,673	$	6,065

The fair value and line item caption of derivative instruments recorded within our consolidated balance sheets for the cumulative basis adjustment for fair value hedges were as follows (in thousands):

Line Item in the Statement of Financial Position Where the Hedged Item is Included	Carrying Amount of the Hedged Liabilities				Cumulative amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liabilities
	As of December 31, 2019		As of December 31, 2018		As of December 31, 2019		As of December 31, 2018
Current portion of long-term debt and Long-term debt	$	715,234	$	725,486	$	(1,301)	$	(24,766)
	$	715,234	$	725,486	$	(1,301)	$	(24,766)

The effect of derivative instruments qualifying and designated as cash flow hedging instruments on the consolidated financial statements was as follows (in thousands):

	Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivative						Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income	Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
Derivatives under ASC 815-20 Cash Flow Hedging Relationships	Year Ended December 31, 2019		Year Ended December 31, 2018		Year Ended December 31, 2017			Year Ended December 31, 2019		Year Ended December 31, 2018		Year Ended December 31, 2017
Interest rate swaps	$	(72,732)	$	18,578	$	(13,312)	Interest expense	$	(4,289)	$	(10,931)	$	(31,603)
Foreign currency forward contracts	(148,881)		(222,645)		276,573		Depreciation and amortization expenses	(14,063)		(12,843)		(10,840)
Foreign currency forward contracts	—		—		—		Other income (expense)	(5,080)		12,855		(9,472)
Foreign currency forward contracts	—		—		—		Other indirect operating expenses	—		—		—
Foreign currency collar options	—		—		—		Depreciation and amortization expenses	—		—		(2,408)
Fuel swaps	—		—		—		Other income (expense)	(1,292)		(1,580)		7,382
Fuel swaps	75,505		(93,927)		118,604		Fuel	29,929		1,366		(141,689)
	$	(146,108)	$	(297,994)	$	381,865		$	5,205	$	(11,133)	$	(188,630)

The table below represents amounts excluded from the assessment of effectiveness for our net investment hedging instruments for which the difference between changes in fair value and periodic amortization is recorded in accumulated other comprehensive income (loss) (in thousands):

Gain (Loss) Recognized in Income (Net Investment Excluded Components)	Year Ended December 31, 2019
Net inception fair value at January 1, 2019	$	(8,359)
Amount of gain recognized in income on derivatives for the year ended December 31, 2019	4,024
Amount of loss remaining to be amortized in accumulated other comprehensive loss as of December 31, 2019	(3,673)
Fair value at December 31, 2019	$	(8,008)

The effect of non-derivative instruments qualifying and designated as net investment hedging instruments on the consolidated financial statements was as follows (in thousands):

	Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss)
Non-derivative instruments under ASC 815-20 Net Investment Hedging Relationships	Year Ended December 31, 2019		Year Ended December 31, 2018		Year Ended December 31, 2017
Foreign Currency Debt	$	6,111	$	13,210	$	(38,971)
	$	6,111	$	13,210	$	(38,971)

The effect of derivatives not designated as hedging instruments on the consolidated financial statements was as follows (in thousands):

		Amount of Gain (Loss) Recognized in Income on Derivative
Derivatives Not Designated as Hedging Instruments under ASC 815-20	Location of Gain (Loss) Recognized in Income on Derivative	Year Ended December 31, 2019		Year Ended December 31, 2018		Year Ended December 31, 2017
Foreign currency forward contracts	Other income (expense)	$	1,356	$	(62,423)	$	61,952
Fuel swaps	Fuel	(37)		1,161		—
Fuel swaps	Other income (expense)	112		114		(1,133)
		$	1,431	$	(61,148)	$	60,819

Credit Related Contingent Features

Our current interest rate derivative instruments may require us to post collateral if our Standard & Poor's and Moody's credit ratings are below specified levels. Generally, 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 were to be rated below BBB- by Standard & Poor's and Baa3 by Moody's, then the counterparty may periodically 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 following such event 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. At December 31, 2019, five of our interest rate derivative instruments had reached their fifth anniversary; however, our senior unsecured debt credit rating was Baa2 by Moody's and BBB- by Standard & Poor's and, accordingly, we were not required to post any collateral as of such date.

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Statement of Cash Flows [Abstract]
Net Income	$ 1,907,600	$ 1,815,792	$ 1,625,133
Adjustments:
Depreciation and amortization	1,245,942	1,033,697	951,194
Impairment losses	0	33,651	0
Net deferred income tax expense (benefit)	7,745	(2,679)	1,730
(Gain) loss on derivative instruments not designated as hedges	(1,431)	61,148	(61,704)
Share-based compensation expense	75,930	46,061	69,459
Equity investment income	(230,980)	(210,756)	(156,247)
Amortization of debt issuance costs	31,991	41,978	45,943
Amortization of commercial paper notes discount	31,263	10,652	0
Loss on extinguishment of debt	6,326	0	0
Change in fair value of contingent consideration	18,400	0	0
Gain on sale of property and equipment	0	0	(30,902)
Gain on sale of unconsolidated affiliate	0	(13,680)	0
Recognition of deferred gain	0	(21,794)	0
Changes in operating assets and liabilities:
Increase in trade and other receivables, net	(9,898)	(9,573)	(32,043)
(Increase) decrease in inventories	(8,533)	(23,849)	2,424
Decrease (increase) in prepaid expenses and other assets	15,669	(71,770)	20,859
Increase in accounts payable	75,281	91,737	36,780
(Decrease) increase in accrued interest	(4,460)	18,773	1,303
Increase in accrued expenses and other liabilities	96,490	42,937	34,215
Increase in customer deposits	280,139	385,990	274,705
Dividends received from unconsolidated affiliates	150,177	243,101	109,677
Other, net	28,715	7,723	(17,960)
Net cash provided by operating activities	3,716,366	3,479,139	2,874,566
Investing Activities
Purchases of property and equipment	(3,024,663)	(3,660,028)	(564,138)
Cash received on settlement of derivative financial instruments	7,621	76,529	63,224
Cash paid on settlement of derivative financial instruments	(68,836)	(98,074)	0
Investments in and loans to unconsolidated affiliates	(25,569)	(27,172)	(10,396)
Cash received on loans to unconsolidated affiliates	32,870	124,238	62,303
Proceeds from the sale of property and equipment	0	0	230,000
Proceeds from the sale of unconsolidated affiliate	0	13,215	0
Acquisition of Silversea Cruises, net of cash acquired	0	(916,135)	0
Other, net	(12,829)	(1,731)	5,415
Net cash used in investing activities	(3,091,406)	(4,489,158)	(213,592)
Financing Activities
Debt proceeds	3,525,564	8,590,740	5,866,966
Debt issuance costs	(50,348)	(81,959)	(51,590)
Repayments of debt	(4,060,244)	(6,963,511)	(7,835,087)
Proceeds from issuance of commercial paper notes	26,240,540	4,730,286	0
Repayments of commercial paper notes	(25,613,111)	(3,965,450)	0
Purchase of treasury stock	(99,582)	(575,039)	(224,998)
Dividends paid	(602,674)	(527,494)	(437,455)
Proceeds from exercise of common stock options	1,742	4,264	2,525
Other, net	(12,258)	(13,764)	3,843
Net cash (used in) provided by financing activities	(670,371)	1,198,073	(2,675,796)
Effect of exchange rate changes on cash	1,297	(20,314)	2,331
Net (decrease) increase in cash and cash equivalents	(44,114)	167,740	(12,491)
Cash and cash equivalents at beginning of year	287,852	120,112	132,603
Cash and cash equivalents at end of year	243,738	287,852	120,112
Cash paid during the year for:
Interest, net of amount capitalized	246,312	252,466	249,615
Non-Cash Investing Activities
Contingent consideration for the acquisition of Silversea Cruises	0	44,000	0
Purchases of property and equipment included in accounts payable and accrued expenses and other liabilities	86,155	0	139,644
Notes receivable issued upon sale of property and equipment	$ 0	$ 0	$ 20,409

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Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Revenues and Expenses

Deposits received on sales of passenger cruises are initially recorded as customer deposit liabilities on our balance sheet. Customer deposits are subsequently recognized as passenger ticket revenues, together with revenues from onboard and other goods and services and all associated cruise operating expenses of a voyage. For further information on revenue recognition, refer to Note. 4 Revenues.

Cash and Cash Equivalents

Cash and cash equivalents include cash and marketable securities with original maturities of less than 90 days.

Inventories

Inventories consist of provisions, supplies and fuel carried at the lower of cost (weighted-average) or net realizable value.

Property and Equipment

Property and equipment are stated at cost less accumulated depreciation and amortization. We capitalize interest as part of the cost of acquiring certain assets. Improvement costs that we believe add value to our ships are capitalized as additions to the ship, the useful lives of the improvements are estimated and depreciated over the shorter of the improvements' estimated useful lives or that of the associated ship, and the replaced assets are disposed of on a net cost basis. The estimated cost and accumulated depreciation of replaced or refurbished ship components are written off and any resulting losses are recognized in Cruise operating expenses. Liquidated damages received from shipyards as a result of the late delivery of a new ship are recorded as reductions to the cost basis of the ship.

Depreciation of property and equipment is computed using the straight-line method over the estimated useful life of the asset. The useful lives of our ships are generally 30-35 years, net of a 10%-15% projected residual value. The 30-35-year useful life and 10%-15% residual value are based on the weighted-average of all major components of a ship. Our useful life and residual value estimates take into consideration the impact of anticipated technological changes, long-term cruise and vacation market conditions and historical useful lives of similarly-built ships. In addition, we take into consideration our estimates of the weighted-average useful lives of the ships' major component systems, such as hull, superstructure, main electric, engines and cabins. We employ a cost allocation methodology at the component level, in order to support the estimated weighted-average useful lives and residual values, as well as to determine the net cost basis of assets being replaced. Given the very large and complex nature of our ships, our accounting estimates related to ships and determinations of ship improvement costs to be capitalized require considerable judgment and are inherently uncertain. Depreciation for assets under capital leases is computed using the shorter of the lease term or related asset life.

Depreciation of property and equipment is computed utilizing the following useful lives:

	Years
Ships	generally, 30-35
Ship improvements	3-25
Buildings and improvements	10-40
Computer hardware and software	3-10
Transportation equipment and other	3-30
Leasehold improvements	Shorter of remaining lease term or useful life 3-30

We periodically review estimated useful lives and residual values for ongoing reasonableness, considering long term views on our intended use of each class of ships and the planned level of improvements to maintain and enhance vessels within those classes. In the event a factor is identified that may trigger a change in the estimated useful lives and residual values of our ships, a review of the estimate is completed. In the fourth quarter of 2019, we completed a modernization of the Oasis of the Seas under our ship upgrade program. We spent $538.0 million under this ship upgrade program for the year ended December 31, 2019, with the Oasis of the Seas representing approximately $170.0 million. As a result of this capital investment and future planned investments in our Oasis-class ships, we performed a review of the estimated useful lives and residual values of Oasis-class ships, concluding in a change to the estimate. Effective fourth quarter of 2019, we revised the estimated useful lives of our Oasis-class ships from 30 years with a 15% residual value to 35 years with a 10% residual value. The change in the estimated useful lives and residual values was accounted for prospectively as a change in accounting estimate. The 35-year useful life with a 10% residual value is based on revised estimates of the weighted-average useful life of all major ship components for the Oasis-class ships. The change in estimate is consistent with our recent investments in and future plans to continue to invest in the upgrade of these ships, resulting in the use of certain ship components longer than originally estimated. In determining the change in estimated useful life and residual value, we utilized quantitative and qualitative analysis, including historical and projected usage patterns, industry benchmarks,

planned maintenance programs and projected operational and financial performance of the class. The change allows us to better match depreciation expense with the periods these assets are expected to be in use. For the year ended December 31, 2019, this change increased operating income and net income by approximately $4.6 million and increased earnings per share by $0.02 per share on a basic and diluted basis.

We review long-lived assets for impairment whenever events or changes in circumstances indicate, based on estimated undiscounted future cash flows, that the carrying amount of these assets may not be fully recoverable. For purposes of recognition and measurement of an impairment loss, long-lived assets are grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. The lowest level for which we maintain identifiable cash flows that are independent of the cash flows of other assets and liabilities is at the ship level for our ships. If estimated future cash flows are less than the carrying value of an asset, an impairment charge is recognized to the extent its carrying value exceeds fair value.

We use the deferral method to account for drydocking costs. Under the deferral method, drydocking costs incurred are deferred and charged to expense on a straight-line basis over the period to the next scheduled drydock, which we estimate to be a period of thirty to sixty months based on the vessel's age as required by Class. Deferred drydock costs consist of the costs to drydock the vessel and other costs incurred in connection with the drydock which are necessary to maintain the vessel's Class certification. Class certification is necessary in order for our cruise ships to be flagged in a specific country, obtain liability insurance and legally operate as passenger cruise ships. The activities associated with those drydocking costs cannot be performed while the vessel is in service and, as such, are done during a drydock as a planned major maintenance activity. The significant deferred drydock costs consist of hauling and wharfage services provided by the drydock facility, hull inspection and related activities (e.g., scraping, pressure cleaning, bottom painting), maintenance to steering propulsion, thruster equipment and ballast tanks, port services such as tugs, pilotage and line handling, and freight associated with these items. We perform a detailed analysis of the various activities performed for each drydock and only defer those costs that are directly related to planned major maintenance activities necessary to maintain Class. The costs deferred are not otherwise routinely periodically performed to maintain a vessel's designed and intended operating capability. Repairs and maintenance activities are charged to expense as incurred.

Goodwill

Goodwill represents the excess of cost over the fair value of net tangible and identifiable intangible assets acquired. We review goodwill for impairment at the reporting unit level annually or, when events or circumstances dictate, more frequently. The impairment review for goodwill consists of a qualitative assessment of whether it is more-likely-than-not that a reporting unit's fair value is less than its carrying amount, and if necessary, a two-step goodwill impairment test. Factors to consider when performing the qualitative assessment include general economic conditions, limitations on accessing capital, changes in forecasted operating results, changes in fuel prices and fluctuations in foreign exchange rates. If the qualitative assessment demonstrates that it is more-likely-than-not that the estimated fair value of the reporting unit exceeds its carrying value, it is not necessary to perform the two-step goodwill impairment test. We may elect to bypass the qualitative assessment and proceed directly to step one, for any reporting unit, in any period. On a periodic basis, we elect to bypass the qualitative assessment and proceed to step one to corroborate the results of recent years' qualitative assessments. We can resume the qualitative assessment for any reporting unit in any subsequent period. When performing the two-step goodwill impairment test, the fair value of the reporting unit is determined and compared to the carrying value of the net assets allocated to the reporting unit. If the fair value of the reporting unit exceeds its carrying value, no further analysis or write-down of goodwill is required. If the fair value of the reporting unit is less than the carrying value of its net assets, the implied fair value of the reporting unit is allocated to all its underlying assets and liabilities, including both recognized and unrecognized tangible and intangible assets, based on their fair value. If necessary, goodwill is then written down to its implied fair value.

Intangible Assets

In connection with our acquisitions, we have acquired certain intangible assets to which value has been assigned based on our estimates. Intangible assets that are deemed to have an indefinite life are not amortized, but are subject to an annual impairment test, or when events or circumstances dictate, more frequently. The impairment review for indefinite-life intangible assets can be performed using a qualitative or quantitative impairment

assessment. The quantitative assessment consists of a comparison of the fair value of the indefinite-life intangible asset with its carrying amount. If the carrying amount exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. If the fair value exceeds its carrying amount, the indefinite-life intangible asset is not considered impaired.

Other intangible assets assigned finite useful lives are amortized on a straight-line basis over their estimated useful lives.

Contingencies — Litigation

On an ongoing basis, we assess the potential liabilities related to any lawsuits or claims brought against us. While it is typically very difficult to determine the timing and ultimate outcome of such actions, we use our best judgment to determine if it is probable that we will incur an expense related to the settlement or final adjudication of such matters and whether a reasonable estimation of such probable loss, if any, can be made. In assessing probable losses, we take into consideration estimates of the amount of insurance recoveries, if any, which are recorded as assets when recoverability is probable. We accrue a liability when we believe a loss is probable and the amount of loss can be reasonably estimated. Due to the inherent uncertainties related to the eventual outcome of litigation and potential insurance recoveries, it is possible that certain matters may be resolved for amounts materially different from any provisions or disclosures that we have previously made.

Advertising Costs

Advertising costs are expensed as incurred except those costs which result in tangible assets, such as brochures, which are treated as prepaid expenses and charged to expense as consumed. Advertising costs consist of media advertising as well as brochure, production and direct mail costs.

Media advertising was $309.4 million, $255.7 million and $233.5 million, and brochure, production and direct mail costs were $156.0 million, $133.4 million and $126.7 million for the years ended December 31, 2019, 2018 and 2017, respectively.

Derivative Instruments

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. 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.

At inception of the hedge relationship, a derivative instrument that hedges the exposure to changes in the fair value of a firm commitment or a recognized asset or liability is designated as a fair value hedge. A derivative instrument that hedges a forecasted transaction or the variability of cash flows related to a recognized asset or liability is designated as a cash flow hedge.

Changes in the fair value of derivatives that are designated as fair value hedges are offset against changes in the fair value of the underlying hedged assets, liabilities or firm commitments. Gains and losses on derivatives that are designated as cash flow hedges are recorded as a component of Accumulated other comprehensive loss until the underlying hedged transactions are recognized in earnings. The foreign currency transaction gain or loss of our non-derivative financial instruments and the changes in the fair value of derivatives designated as hedges of our net investment in foreign operations and investments are recognized as a component of Accumulated other comprehensive loss along with the associated foreign currency translation adjustment of the foreign operation or investment. In certain hedges of our net investment in foreign operations and investments, we exclude forward points from the assessment of hedge effectiveness and we amortize the related amounts directly into earnings.

On an ongoing basis, we assess whether derivatives used in hedging transactions are "highly effective" in offsetting changes in the fair value or cash flow of hedged items. For our net investment hedges, we use the dollar offset method to measure effectiveness. For all other hedging programs, we use the long-haul method to assess

hedge effectiveness using regression analysis for each hedge relationship. The methodology for assessing hedge effectiveness is applied on a consistent basis for each one of our hedging programs (i.e., interest rate, foreign currency ship construction, foreign currency net investment and fuel). For our regression analyses, we use an observation period of up to three years, utilizing market data relevant to the hedge horizon of each hedge relationship. High effectiveness is achieved when a statistically valid relationship reflects a high degree of offset and correlation between the changes in the fair values of the derivative instrument and the hedged item. If it is determined that a derivative is not highly effective as a hedge or hedge accounting is discontinued, any change in fair value of the derivative since the last date at which it was determined to be effective is recognized in earnings.

Cash flows from derivative instruments that are designated as fair value or cash flow hedges are classified in the same category as the cash flows from the underlying hedged items. In the event that hedge accounting is discontinued, cash flows subsequent to the date of discontinuance are classified within investing activities. Cash flows from derivative instruments not designated as hedging instruments are classified as investing activities.

We consider the classification of the underlying hedged item’s cash flows in determining the classification for the designated derivative instrument’s cash flows. We classify derivative instrument cash flows from hedges of benchmark interest rate or hedges of fuel expense as operating activities due to the nature of the hedged item. Likewise, we classify derivative instrument cash flows from hedges of foreign currency risk on our newbuild ship payments as investing activities.

Foreign Currency Translations and Transactions

We translate assets and liabilities of our foreign subsidiaries whose functional currency is the local currency, at exchange rates in effect at the balance sheet date. We translate revenues and expenses at weighted-average exchange rates for the period. Equity is translated at historical rates and the resulting foreign currency translation adjustments are included as a component of Accumulated other comprehensive loss, which is reflected as a separate component of Shareholders' equity. Exchange gains or losses arising from the remeasurement of monetary assets and liabilities denominated in a currency other than the functional currency of the entity involved are immediately included in our earnings, except for certain liabilities that have been designated to act as a hedge of a net investment in a foreign operation or investment. Exchange gains (losses) were $0.4 million, $57.6 million and $(75.6) million for the years ended December 31, 2019, 2018 and 2017, respectively, and were recorded within Other income (expense). The majority of our transactions are settled in United States dollars. Gains or losses resulting from transactions denominated in other currencies are recognized in income at each balance sheet date.

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 December 31, 2019, we had no counterparty credit risk exposure under our derivative instruments compared to credit risk exposures of $5.6 million on December 31, 2018, which were 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.

Earnings Per Share

Basic earnings per share is computed by dividing Net Income attributable to Royal Caribbean Cruises Ltd. by the weighted-average number of shares of common stock outstanding during each period. Diluted earnings per share

incorporates the incremental shares issuable upon the assumed exercise of stock options and conversion of potentially dilutive securities.

Stock-Based Employee Compensation

We measure and recognize compensation expense at the estimated fair value of employee stock awards. Compensation expense for awards and the related tax effects are recognized as they vest. We use the estimated amount of expected forfeitures to calculate compensation costs for all outstanding awards.

Segment Reporting

We control and operate four global cruise brands: Royal Caribbean International, Celebrity Cruises, Azamara and Silversea Cruises. We also own a 50% joint venture interest in the German brand TUI Cruises, a 49% interest in the Spanish brand Pullmantur. We believe our brands possess the versatility to enter multiple cruise market segments within the cruise vacation industry. Although each of these brands has its own marketing style as well as ships and crews of various sizes, the nature of the products sold and services delivered by these brands share a common base (i.e., the sale and provision of cruise vacations). Our brands also have similar itineraries as well as similar cost and revenue components. In addition, our brands source passengers from similar markets around the world and operate in similar economic environments with a significant degree of commercial overlap. As a result, our brands have been aggregated as a single reportable segment based on the similarity of their economic characteristics, types of consumers, regulatory environment, maintenance requirements, supporting systems and processes as well as products and services provided. Our Chairman and Chief Executive Officer has been identified as the chief operating decision-maker and all significant operating decisions including the allocation of resources are based upon the analyses of the Company as one segment. Refer to Note 4. Revenues for passenger ticket revenue information by geographic area.

Adoption of Accounting Pronouncements

Leases

On January 1, 2019, we adopted the guidance codified in Accounting Standard Codification ("ASC") 842, Leases ("ASC 842") using the modified retrospective approach and elected the optional transition method, which allows entities to initially apply the standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Upon adoption, we applied the guidance to all existing leases.

For leases with a term greater than 12 months, the new guidance requires the lease rights and obligations arising from the leasing arrangements, including operating leases, to be recognized as assets and liabilities on the balance sheet. Upon adoption of the new guidance, the most significant impact was the recognition of right-of-use assets and lease liabilities relating to operating leases in the amounts of $801.8 million and $820.5 million, respectively, reported within Operating lease right-of-use assets and Long-term operating lease liabilities, respectively, with the current portion of the liability reported within Current portion of operating lease liabilities, in our consolidated balance sheet as of January 1, 2019. Accounting for finance leases remained substantially unchanged and continues to be reported within Property and equipment, net and Long-term debt, with the current portion of the debt reported within Current portion of debt, in our consolidated balance sheets. There was no cumulative effect of applying the new standard and accordingly there was no adjustment to our retained earnings upon adoption. The comparative information presented has not been recast and continues to be reported under the accounting standards in effect for those periods. For further information on leases, refer to Note 10. Leases.

This guidance did not have a material impact to our consolidated statements of comprehensive income (loss), consolidated statements of cash flows and our debt-covenants calculations under our current agreements.

Recent Accounting Pronouncements

In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2016-13, Financial Instruments - Credit Losses (Topic 326); Measurement of Credit Losses on Financial Instruments. This ASU, along with subsequent ASUs issued to clarify certain of its provisions, introduces new

guidance which makes substantive changes to the accounting model for financial assets subject to credit losses that are measured at amortized cost, as well as certain off-balance sheet credit exposures. The primary updates include the introduction of a new current expected credit loss (“CECL”) model that is based on expected rather than incurred losses. This ASU and the related amendments will be effective for our annual reporting period beginning January 1, 2020. We are currently evaluating the impact that the adoption of this guidance will have to our consolidated financial statements.

In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350) – Simplifying the Test for Goodwill Impairment, which simplifies the subsequent measurement of goodwill by eliminating the second step of the goodwill impairment test. Under the new standard, goodwill impairment should be recognized based on the amount by which the carrying amount of a reporting unit exceeds its fair value, but should not exceed the total amount of goodwill allocated to the reporting unit. This ASU will be effective for our annual reporting period beginning January 1, 2020. This guidance is not expected to have a material impact to our consolidated financial statements, but may require us to modify our annual or interim goodwill impairment tests.

In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Topic 350-40), which requires a customer in a cloud computing arrangement that is a service contract to follow the internal-use software guidance to determine which implementation costs to capitalize as assets or expense as incurred. This ASU will be effective for our annual reporting period beginning January 1, 2020 and we expect to elect the prospective adoption method. The guidance may impact the accounting treatment of our future implementation costs related to cloud computing arrangements.

In January 2020, the FASB issued ASU No. 2020-01, Investments – Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivative and Hedging (Topic 815), which clarifies the interaction of rules for equity securities, the equity method of accounting, and forward contracts and purchase options on certain types of securities. The guidance clarifies how to account for the transition into and out of the equity method of accounting when considering observable transactions under the measurement alternative. The ASU is effective for annual reporting periods beginning after December 15, 2020, including interim reporting periods within those annual periods, with early adoption permitted. We are currently evaluating the impact of the new guidance on our consolidated financial statements.

Reclassifications

For the year ended December 31, 2019, we separately presented Amortization of commercial paper notes discount in our consolidated statements of cash flows. As a result, the prior year amortization amount was reclassified within Operating Activities to conform to the current year presentation.

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Subsequent Events

12 Months Ended

Dec. 31, 2019

Subsequent Events [Abstract]

Subsequent Events

In March 2020, we increased the capacity of our $1.7 billion and $1.2 billion unsecured revolving credit facilities due in 2024 and 2022, by $200 million and $400 million, respectively, utilizing their accordion feature. As of March 31, 2020, our aggregate revolving borrowing capacity was $3.5 billion and was fully drawn upon.

In March 2020, we borrowed $2.2 billion pursuant to a 364-day senior secured term loan agreement. The loan matures 364 days after funding and payment may be extended at our option for an additional 364 days subject to customary conditions, including the payment of a 1.00% extension fee. Our obligation under the loan is guaranteed by our wholly-owned subsidiaries, Celebrity Cruises Holdings Inc., Celebrity Cruises Inc. and certain of our wholly-owned vessel-owning subsidiaries, and is secured by our trademarks and a pledge of 100% of the equity interests of certain of our vessel-owning subsidiaries. Interest accrues at LIBOR plus a margin of 2.25% which increases to 2.50% and 2.75%, 180 days and 365 days, respectively, after funding. We will also be required to pay a duration fee in an amount equal to 0.25% of the aggregate loan principal amount every 60 days. Two of our board members each participated by loaning the Company $100 million as part of our 364-day $2.2 billion senior secured term loan agreement. In May 2020, this secured term loan was increased by an additional $150 million through an accordion feature.

In March 2020, we took delivery of Celebrity Apex. To finance the purchase, we borrowed $722.2 million under a previously committed unsecured term loan which is 100% guaranteed by Bpifrance Assurance Export, the official export credit agency of France. The loan amortizes semi-annually over 12 years and bears interest at a fixed rate of 3.23% per annum.

Through May 12, 2020, we amended certain export-credit backed ship debt facilities to benefit from a 12-month debt amortization and financial covenant holiday ("Debt Holiday"). Under the Debt Holiday, deferred debt amortization of approximately $0.8 billion will be paid over a period of four years after the 12-month deferral period. The Debt Holiday was offered by certain export credit agencies as a result of the current impact to cruise-line borrowers as a result of COVID-19.

Certain of our debt agreements contain covenants that, among other things, require us to maintain a minimum level of shareholder's equity and certain ratios. We were in compliance with our covenants as of March 31, 2020. However, we amended these debt agreements to waive the quarterly testing of our financing covenants for the next four calendar quarters to avoid non-compliance. In addition to the above, as of March 23, 2020, we were not in compliance with one covenant in our Port of Miami Terminal "A" operating lease agreement which we subsequently obtained a waiver for and amended our agreement with the lessor to increase the lien basket in line with our debt facilities.

As part of obtaining these debt compliance waivers, we are now required to maintain a minimum of $300 million in cash and cash equivalents tested on a monthly basis through March 31, 2021, and we are not permitted during the covenant waiver period, subject to limited exceptions, to pay cash dividends or make share repurchases unless we would have been compliant with our fixed charge coverage ratio at such time. In addition, the lenders under such unsecured bank facilities required a number of structural enhancements to such facilities. Under certain of our agreements, the contractual interest rate, facility fee and/or export credit agency fee vary with our debt rating. On March 31, 2020, Moody's downgraded us from Baa2 to Baa3 and on April 2, 2020, Standard & Poor's downgraded us from BBB- to BB. Based on the projected fair value of certain derivative instruments in net liability positions as of the date of this filing, in the event of a downgrade below Baa3 by Moody’s on or prior to September 23, 2020, we will be required to post collateral of approximately $80.4 million.

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Intangible Assets

12 Months Ended

Dec. 31, 2019

Intangible Assets, Net (Excluding Goodwill) [Abstract]

Intangible Assets

Intangible Assets

Intangible assets consist of finite and indefinite life assets and are reported within Other assets in our consolidated balance sheets.

The following is a summary of our intangible assets as of December 31, 2019 (in thousands, except weighted average amortization period):

	As of December 31, 2019
	Remaining Weighted Average Amortization Period (Years)	Gross Carrying Value		Accumulated Amortization		Net Carrying Value
Finite-life intangible assets:
Customer relationships	13.8	$	97,400	$	7,576	$	89,824
Galapagos operating license	24.7	47,669		6,010		41,659
Other finite-life intangible assets	0.8	11,560		6,743		4,817
Total finite-life intangible assets		156,629		20,329		136,300
Indefinite-life intangible assets		352,275		—		352,275
Total intangible assets, net		$	508,904	$	20,329	$	488,575

The following is a summary of our intangible assets as of December 31, 2018 (in thousands, except weighted average amortization period):

	As of December 31, 2018
	Remaining Weighted Average Amortization Period (Years)	Gross Carrying Value		Accumulated Amortization		Net Carrying Value
Finite-life intangible assets:
Customer relationships	14.8	$	97,400	$	1,082	$	96,318
Galapagos operating license	25.8	47,669		4,206		43,463
Other finite-life intangible assets	1.8	11,560		963		10,597
Total finite-life intangible assets		156,629		6,251		150,378
Indefinite-life intangible assets		351,725		—		351,725
Total intangible assets, net		$	508,354	$	6,251	$	502,103

The estimated future amortization for finite-life intangible assets for each of the next five years is as follows (in thousands):

Year
2020	$	12,995
2021	$	8,179
2022	$	8,179
2023	$	8,179
2024	$	8,179

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Leases

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Leases

Leases

Our operating leases primarily relate to preferred berthing arrangements, real estate and shipboard equipment and are included within Operating lease right-of-use assets, and Long-term operating lease liabilities with the current portion of the liability included within Current portion of operating lease liabilities in our consolidated balance sheet as of December 31, 2019. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet. We recognize lease expense for these leases on a straight-line basis over the lease term. Refer to Note 2. Summary of Significant Accounting Policies, for further information on the adoption of ASC 842.

Finance leases are included within Property and equipment, net and Long-term debt, with the current portion of the debt reported within Current portion of debt, in our consolidated balance sheets.

Our finance leases include two ships, Silver Whisper and Silver Explorer, operated by Silversea Cruises. The finance lease for Silver Whisper will expire in 2022, subject to an option to purchase the ship, and the finance lease for Silver Explorer will expire in 2021, subject to an option to extend the lease for up to an additional 6 years.

In June 2019, the Company entered into a new master lease agreement (“Master Lease”) with Miami-Dade County relating to the buildings and surrounding land located at its Miami headquarters, which are classified as finance leases in accordance with ASC 842. Prior to entering into the Master Lease, the buildings were classified as operating lease assets. The finance lease for the buildings and land will expire in 2072, which includes an initial 43 years lease term and two five-year options to extend the lease. We consider the possibility of exercising the two five-year options reasonably certain.

For some of our real estate leases and berthing agreements, we do have the option to extend our current lease term. For those lease agreements with renewal options, the renewal periods for real estate leases range from one to 10 years and the renewal periods for berthing agreements range from one year 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. Additionally, we do have a residual value guarantee associated with our lease of a terminal at PortMiami in Miami, Florida that approximates a percentage of cost of the asset as of the inception of the lease. We consider the possibility of incurring costs associated with the residual value guarantee to be remote.

As most of our leases do not provide an implicit rate, we use our incremental borrowing rate in determining the present value of lease payments. We estimate our incremental borrowing rates based on LIBOR and U.S. Treasury note rates corresponding to lease terms increased by the Company’s credit risk spread and reduced by the estimated impact of collateral. We used the incremental borrowing rate as of the adoption date for operating leases that commenced prior to that date. 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.

Additionally, we bareboat charter to Pullmantur Holdings the vessels currently operated by its brands, which were retained by us following the sale of our 51% interest in Pullmantur Holdings in 2016. We account for the

bareboat charters of these vessels as operating leases for which we are the lessor.  The remaining payments and term of these leases are immaterial to our consolidated financial statements.

Supplemental balance sheet information for leases was as follows (in thousands):

	As of December 31, 2019
Lease assets:
Finance lease right-of-use assets, net:
Property and equipment, gross	$	376,159
Accumulated depreciation	(57,955)
Property and equipment, net	318,204
Operating lease right-of-use assets	687,555
Total lease assets	$	1,005,759
Lease liabilities:
Finance lease liabilities:
Current portion of debt	$	33,561
Long-term debt	196,697
Total finance lease liabilities	230,258
Operating lease liabilities:
Current portion of operating lease liabilities	96,976
Long-term operating lease liabilities	601,641
Total operating lease liabilities	698,617
Total lease liabilities	$	928,875

The components of lease expense were as follows (in thousands):

	Consolidated Statement of Comprehensive Income (Loss) Classification	Twelve Months Ended December 31, 2019
Lease costs:
Operating lease costs	Commission, transportation and other	$	76,226
Operating lease costs	Other operating expenses	27,868
Operating lease costs	Marketing, selling and administrative expenses	18,837
Finance lease costs:
Amortization of right-of-use-assets	Depreciation and amortization expenses	22,044
Interest on lease liabilities	Interest expense, net of interest capitalized	8,355
Total lease costs		$	153,330

In addition, certain of our berth agreements include variable lease costs based on the number of passengers berthed. During the twelve months ended December 31, 2019, we had $103.3 million of variable lease costs recorded within Commission, transportation and other in our consolidated statement of comprehensive income (loss).

Weighted average of the remaining lease terms and weighted average discount rates are as follows:

	As of December 31, 2019
Weighted average of the remaining lease term
Operating leases	10.3
Finance leases	30.22
Weighted average discount rate
Operating leases	4.65	%
Finance leases	4.47	%

Supplemental cash flow information related to leases is as follows (in thousands):

	Twelve Months Ended December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	125,307
Operating cash flows from finance leases	$	8,355
Financing cash flows from finance leases	$	32,090

As of December 31, 2019, maturities related to lease liabilities were as follows (in thousands):

Years	Operating Leases		Finance Leases
2020	$	126,235	$	43,793
2021	113,033		46,726
2022	104,907		23,801
2023	101,547		12,539
2024	75,510		12,528
Thereafter	417,122		405,756
Total lease payments	938,354		545,143
Less: Interest	(239,737)		(314,885)
Present value of lease liabilities	$	698,617	$	230,258

Operating lease payments do not include any costs related to options to extend lease terms as none are reasonably certain of being exercised.

Under ASC 840, Leases, future minimum lease payments under noncancelable operating leases, primarily for offices, warehouses and motor vehicles, as of December 31, 2018 were as follows (in thousands):

Years
2019	$	67,682
2020	64,237
2021	56,142
2022	52,759
2023	52,522
Thereafter	383,974
	$	677,316

Total expense for operating leases, under ASC 840, primarily for offices, warehouses and motor vehicles amounted to $32.2 million and $29.3 million for the years ended December 31, 2018 and 2017, respectively.

In July 2016, we executed an agreement with Miami Dade County (“MDC”), which was simultaneously assigned to Sumitomo Banking Corporation (“SMBC”), to lease land from MDC and construct a new cruise terminal of approximately 170,000 square feet at PortMiami in Miami, Florida, which was completed during the fourth quarter of 2018 and serves as a homeport. During the construction period, SMBC funded the costs of the terminal’s construction and land lease. Once the terminal was substantially completed, we commenced operating and leasing the terminal from SMBC for a five-year term. We determined that the lease arrangement between SMBC and us should be accounted for as an operating lease.

Leases

Leases

Our operating leases primarily relate to preferred berthing arrangements, real estate and shipboard equipment and are included within Operating lease right-of-use assets, and Long-term operating lease liabilities with the current portion of the liability included within Current portion of operating lease liabilities in our consolidated balance sheet as of December 31, 2019. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet. We recognize lease expense for these leases on a straight-line basis over the lease term. Refer to Note 2. Summary of Significant Accounting Policies, for further information on the adoption of ASC 842.

Finance leases are included within Property and equipment, net and Long-term debt, with the current portion of the debt reported within Current portion of debt, in our consolidated balance sheets.

Our finance leases include two ships, Silver Whisper and Silver Explorer, operated by Silversea Cruises. The finance lease for Silver Whisper will expire in 2022, subject to an option to purchase the ship, and the finance lease for Silver Explorer will expire in 2021, subject to an option to extend the lease for up to an additional 6 years.

In June 2019, the Company entered into a new master lease agreement (“Master Lease”) with Miami-Dade County relating to the buildings and surrounding land located at its Miami headquarters, which are classified as finance leases in accordance with ASC 842. Prior to entering into the Master Lease, the buildings were classified as operating lease assets. The finance lease for the buildings and land will expire in 2072, which includes an initial 43 years lease term and two five-year options to extend the lease. We consider the possibility of exercising the two five-year options reasonably certain.

For some of our real estate leases and berthing agreements, we do have the option to extend our current lease term. For those lease agreements with renewal options, the renewal periods for real estate leases range from one to 10 years and the renewal periods for berthing agreements range from one year 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. Additionally, we do have a residual value guarantee associated with our lease of a terminal at PortMiami in Miami, Florida that approximates a percentage of cost of the asset as of the inception of the lease. We consider the possibility of incurring costs associated with the residual value guarantee to be remote.

As most of our leases do not provide an implicit rate, we use our incremental borrowing rate in determining the present value of lease payments. We estimate our incremental borrowing rates based on LIBOR and U.S. Treasury note rates corresponding to lease terms increased by the Company’s credit risk spread and reduced by the estimated impact of collateral. We used the incremental borrowing rate as of the adoption date for operating leases that commenced prior to that date. 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.

Additionally, we bareboat charter to Pullmantur Holdings the vessels currently operated by its brands, which were retained by us following the sale of our 51% interest in Pullmantur Holdings in 2016. We account for the

bareboat charters of these vessels as operating leases for which we are the lessor.  The remaining payments and term of these leases are immaterial to our consolidated financial statements.

Supplemental balance sheet information for leases was as follows (in thousands):

	As of December 31, 2019
Lease assets:
Finance lease right-of-use assets, net:
Property and equipment, gross	$	376,159
Accumulated depreciation	(57,955)
Property and equipment, net	318,204
Operating lease right-of-use assets	687,555
Total lease assets	$	1,005,759
Lease liabilities:
Finance lease liabilities:
Current portion of debt	$	33,561
Long-term debt	196,697
Total finance lease liabilities	230,258
Operating lease liabilities:
Current portion of operating lease liabilities	96,976
Long-term operating lease liabilities	601,641
Total operating lease liabilities	698,617
Total lease liabilities	$	928,875

The components of lease expense were as follows (in thousands):

	Consolidated Statement of Comprehensive Income (Loss) Classification	Twelve Months Ended December 31, 2019
Lease costs:
Operating lease costs	Commission, transportation and other	$	76,226
Operating lease costs	Other operating expenses	27,868
Operating lease costs	Marketing, selling and administrative expenses	18,837
Finance lease costs:
Amortization of right-of-use-assets	Depreciation and amortization expenses	22,044
Interest on lease liabilities	Interest expense, net of interest capitalized	8,355
Total lease costs		$	153,330

In addition, certain of our berth agreements include variable lease costs based on the number of passengers berthed. During the twelve months ended December 31, 2019, we had $103.3 million of variable lease costs recorded within Commission, transportation and other in our consolidated statement of comprehensive income (loss).

Weighted average of the remaining lease terms and weighted average discount rates are as follows:

	As of December 31, 2019
Weighted average of the remaining lease term
Operating leases	10.3
Finance leases	30.22
Weighted average discount rate
Operating leases	4.65	%
Finance leases	4.47	%

Supplemental cash flow information related to leases is as follows (in thousands):

	Twelve Months Ended December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	125,307
Operating cash flows from finance leases	$	8,355
Financing cash flows from finance leases	$	32,090

As of December 31, 2019, maturities related to lease liabilities were as follows (in thousands):

Years	Operating Leases		Finance Leases
2020	$	126,235	$	43,793
2021	113,033		46,726
2022	104,907		23,801
2023	101,547		12,539
2024	75,510		12,528
Thereafter	417,122		405,756
Total lease payments	938,354		545,143
Less: Interest	(239,737)		(314,885)
Present value of lease liabilities	$	698,617	$	230,258

Operating lease payments do not include any costs related to options to extend lease terms as none are reasonably certain of being exercised.

Under ASC 840, Leases, future minimum lease payments under noncancelable operating leases, primarily for offices, warehouses and motor vehicles, as of December 31, 2018 were as follows (in thousands):

Years
2019	$	67,682
2020	64,237
2021	56,142
2022	52,759
2023	52,522
Thereafter	383,974
	$	677,316

Total expense for operating leases, under ASC 840, primarily for offices, warehouses and motor vehicles amounted to $32.2 million and $29.3 million for the years ended December 31, 2018 and 2017, respectively.

In July 2016, we executed an agreement with Miami Dade County (“MDC”), which was simultaneously assigned to Sumitomo Banking Corporation (“SMBC”), to lease land from MDC and construct a new cruise terminal of approximately 170,000 square feet at PortMiami in Miami, Florida, which was completed during the fourth quarter of 2018 and serves as a homeport. During the construction period, SMBC funded the costs of the terminal’s construction and land lease. Once the terminal was substantially completed, we commenced operating and leasing the terminal from SMBC for a five-year term. We determined that the lease arrangement between SMBC and us should be accounted for as an operating lease.

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Debt (Tables)

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Long Term Debt

Debt consists of the following (in thousands):

			As of December 31,
	Interest Rate(1)	Maturities Through	2019		2018
Fixed rate debt:
Senior notes	2.65% to 7.50%	2020 - 2028	$	1,746,280	$	1,724,194
Secured senior notes	7.25%	2025	662,398		670,437
Unsecured term loans	2.53% to 5.41%	2021 - 2030	2,806,774		2,148,351
Total fixed rate debt			5,215,452		4,542,982
Variable rate debt:
Unsecured revolving credit facilities(2)	2.79%	2022 - 2024	165,000		795,000
Commercial paper	2.19%	2019	1,434,180		775,488
USD unsecured term loan	2.31% to 5.64%	2019 - 2028	3,519,853		4,005,848
Euro unsecured term loan	1.15% to 1.58%	2021 - 2028	676,740		734,176
Total variable rate debt			5,795,773		6,310,512
Finance lease liabilities			230,258		130,944
Total debt (3)			11,241,483		10,984,438
Less: unamortized debt issuance costs			(206,607)		(206,739)
Total debt, net of unamortized debt issuance costs			11,034,876		10,777,699
Less—current portion including commercial paper			(2,620,766)		(2,422,329)
Long-term portion			$	8,414,110	$	8,355,370

(1)Interest rates based on outstanding loan balance as of December 31, 2019 and, for variable rate debt, include either LIBOR or EURIBOR plus the applicable margin.

(2)Includes $1.7 billion facility due in 2024 and $1.2 billion facility due in 2022, each of which accrue interest at LIBOR plus 1.00%, currently 2.91%, and are subject to a facility fee of 0.125%.

(3)At December 31, 2019 and 2018, the weighted average interest rate for total debt was 3.99% and 4.14%, respectively.

Schedule of Annual Maturities on Long-Term Debt Including Capital Leases

Following is a schedule of annual maturities on our total debt net of debt issuance costs, and including capital leases and commercial paper, as of December 31, 2019 for each of the next five years (in thousands):

Year
2020	$	2,620,766
2021	843,906
2022	2,479,303
2023	763,382
2024	723,697
Thereafter	3,603,822
	$	11,034,876

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Goodwill (Tables)

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Carrying Amount of Goodwill

The carrying amount of goodwill attributable to our Royal Caribbean International, Celebrity Cruises and Silversea Cruises reporting units and the changes in such balances during the years ended December 31, 2019 and 2018 were as follows (in thousands):

	Royal Caribbean International		Celebrity Cruises		Silversea Cruises		Total
Balance at December 31, 2017	$	286,880	$	1,632	$	—	$	288,512
Goodwill attributable to the acquisition of Silversea Cruises (1)					1,090,010		1,090,010
Foreign currency translation adjustment	(169)		—		—		(169)
Balance at December 31, 2018	286,711		1,632		1,090,010		1,378,353
Silversea Goodwill adjustment	—		—		(5,224)		(5,224)
Goodwill attributable to the purchase of photo operations onboard our ships (2)	12,518		—		—		12,518
Foreign currency translation adjustment	(3)		—		—		(3)
Balance at December 31, 2019	$	299,226	$	1,632	$	1,084,786	$	1,385,644

___________________________________________________________________

(1)In 2018, we purchased Silversea Cruises. Refer to Note 3. Business Combination for further information.

(2)In 2019, we purchased the photo operations onboard our ships from our previous concessionaire. The acquisition was accounted for as a business purchase combination using the purchase method of accounting which requires the use of fair value measurements. The business combination, including purchase transaction and assets acquired, was immaterial to our consolidated financial statements.

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Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Basis for Preparation of Consolidated Financial Statements

Basis for Preparation of Consolidated Financial Statements

The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). 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 for a discussion of our significant accounting policies.

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 8. Other Assets for further information regarding our variable interest entities. We consolidate the operating results of Silversea Cruises on a three-month reporting lag to allow for more timely preparation of our consolidated financial statements. No material events or other transactions involving Silversea Cruises have occurred from September 30, 2019 through December 31, 2019 that would require further disclosure or adjustment to our consolidated financial statements as of and for the year ended December 31, 2019. 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.

Revenues and Expenses

Revenues and ExpensesDeposits received on sales of passenger cruises are initially recorded as customer deposit liabilities on our balance sheet. Customer deposits are subsequently recognized as passenger ticket revenues, together with revenues from onboard and other goods and services and all associated cruise operating expenses of a voyage.

Cash and Cash Equivalents

Cash and Cash Equivalents

Cash and cash equivalents include cash and marketable securities with original maturities of less than 90 days.

Inventories

InventoriesInventories consist of provisions, supplies and fuel carried at the lower of cost (weighted-average) or net realizable value.

Property and Equipment

Property and Equipment

Property and equipment are stated at cost less accumulated depreciation and amortization. We capitalize interest as part of the cost of acquiring certain assets. Improvement costs that we believe add value to our ships are capitalized as additions to the ship, the useful lives of the improvements are estimated and depreciated over the shorter of the improvements' estimated useful lives or that of the associated ship, and the replaced assets are disposed of on a net cost basis. The estimated cost and accumulated depreciation of replaced or refurbished ship components are written off and any resulting losses are recognized in Cruise operating expenses. Liquidated damages received from shipyards as a result of the late delivery of a new ship are recorded as reductions to the cost basis of the ship.

Depreciation of property and equipment is computed using the straight-line method over the estimated useful life of the asset. The useful lives of our ships are generally 30-35 years, net of a 10%-15% projected residual value. The 30-35-year useful life and 10%-15% residual value are based on the weighted-average of all major components of a ship. Our useful life and residual value estimates take into consideration the impact of anticipated technological changes, long-term cruise and vacation market conditions and historical useful lives of similarly-built ships. In addition, we take into consideration our estimates of the weighted-average useful lives of the ships' major component systems, such as hull, superstructure, main electric, engines and cabins. We employ a cost allocation methodology at the component level, in order to support the estimated weighted-average useful lives and residual values, as well as to determine the net cost basis of assets being replaced. Given the very large and complex nature of our ships, our accounting estimates related to ships and determinations of ship improvement costs to be capitalized require considerable judgment and are inherently uncertain. Depreciation for assets under capital leases is computed using the shorter of the lease term or related asset life.

Depreciation of property and equipment is computed utilizing the following useful lives:

	Years
Ships	generally, 30-35
Ship improvements	3-25
Buildings and improvements	10-40
Computer hardware and software	3-10
Transportation equipment and other	3-30
Leasehold improvements	Shorter of remaining lease term or useful life 3-30

We periodically review estimated useful lives and residual values for ongoing reasonableness, considering long term views on our intended use of each class of ships and the planned level of improvements to maintain and enhance vessels within those classes. In the event a factor is identified that may trigger a change in the estimated useful lives and residual values of our ships, a review of the estimate is completed. In the fourth quarter of 2019, we completed a modernization of the Oasis of the Seas under our ship upgrade program. We spent $538.0 million under this ship upgrade program for the year ended December 31, 2019, with the Oasis of the Seas representing approximately $170.0 million. As a result of this capital investment and future planned investments in our Oasis-class ships, we performed a review of the estimated useful lives and residual values of Oasis-class ships, concluding in a change to the estimate. Effective fourth quarter of 2019, we revised the estimated useful lives of our Oasis-class ships from 30 years with a 15% residual value to 35 years with a 10% residual value. The change in the estimated useful lives and residual values was accounted for prospectively as a change in accounting estimate. The 35-year useful life with a 10% residual value is based on revised estimates of the weighted-average useful life of all major ship components for the Oasis-class ships. The change in estimate is consistent with our recent investments in and future plans to continue to invest in the upgrade of these ships, resulting in the use of certain ship components longer than originally estimated. In determining the change in estimated useful life and residual value, we utilized quantitative and qualitative analysis, including historical and projected usage patterns, industry benchmarks,

planned maintenance programs and projected operational and financial performance of the class. The change allows us to better match depreciation expense with the periods these assets are expected to be in use. For the year ended December 31, 2019, this change increased operating income and net income by approximately $4.6 million and increased earnings per share by $0.02 per share on a basic and diluted basis.

We review long-lived assets for impairment whenever events or changes in circumstances indicate, based on estimated undiscounted future cash flows, that the carrying amount of these assets may not be fully recoverable. For purposes of recognition and measurement of an impairment loss, long-lived assets are grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. The lowest level for which we maintain identifiable cash flows that are independent of the cash flows of other assets and liabilities is at the ship level for our ships. If estimated future cash flows are less than the carrying value of an asset, an impairment charge is recognized to the extent its carrying value exceeds fair value.

We use the deferral method to account for drydocking costs. Under the deferral method, drydocking costs incurred are deferred and charged to expense on a straight-line basis over the period to the next scheduled drydock, which we estimate to be a period of thirty to sixty months based on the vessel's age as required by Class. Deferred drydock costs consist of the costs to drydock the vessel and other costs incurred in connection with the drydock which are necessary to maintain the vessel's Class certification. Class certification is necessary in order for our cruise ships to be flagged in a specific country, obtain liability insurance and legally operate as passenger cruise ships. The activities associated with those drydocking costs cannot be performed while the vessel is in service and, as such, are done during a drydock as a planned major maintenance activity. The significant deferred drydock costs consist of hauling and wharfage services provided by the drydock facility, hull inspection and related activities (e.g., scraping, pressure cleaning, bottom painting), maintenance to steering propulsion, thruster equipment and ballast tanks, port services such as tugs, pilotage and line handling, and freight associated with these items. We perform a detailed analysis of the various activities performed for each drydock and only defer those costs that are directly related to planned major maintenance activities necessary to maintain Class. The costs deferred are not otherwise routinely periodically performed to maintain a vessel's designed and intended operating capability. Repairs and maintenance activities are charged to expense as incurred.

Goodwill

Goodwill

Goodwill represents the excess of cost over the fair value of net tangible and identifiable intangible assets acquired. We review goodwill for impairment at the reporting unit level annually or, when events or circumstances dictate, more frequently. The impairment review for goodwill consists of a qualitative assessment of whether it is more-likely-than-not that a reporting unit's fair value is less than its carrying amount, and if necessary, a two-step goodwill impairment test. Factors to consider when performing the qualitative assessment include general economic conditions, limitations on accessing capital, changes in forecasted operating results, changes in fuel prices and fluctuations in foreign exchange rates. If the qualitative assessment demonstrates that it is more-likely-than-not that the estimated fair value of the reporting unit exceeds its carrying value, it is not necessary to perform the two-step goodwill impairment test. We may elect to bypass the qualitative assessment and proceed directly to step one, for any reporting unit, in any period. On a periodic basis, we elect to bypass the qualitative assessment and proceed to step one to corroborate the results of recent years' qualitative assessments. We can resume the qualitative assessment for any reporting unit in any subsequent period. When performing the two-step goodwill impairment test, the fair value of the reporting unit is determined and compared to the carrying value of the net assets allocated to the reporting unit. If the fair value of the reporting unit exceeds its carrying value, no further analysis or write-down of goodwill is required. If the fair value of the reporting unit is less than the carrying value of its net assets, the implied fair value of the reporting unit is allocated to all its underlying assets and liabilities, including both recognized and unrecognized tangible and intangible assets, based on their fair value. If necessary, goodwill is then written down to its implied fair value.

Intangible Assets

Intangible Assets

In connection with our acquisitions, we have acquired certain intangible assets to which value has been assigned based on our estimates. Intangible assets that are deemed to have an indefinite life are not amortized, but are subject to an annual impairment test, or when events or circumstances dictate, more frequently. The impairment review for indefinite-life intangible assets can be performed using a qualitative or quantitative impairment

assessment. The quantitative assessment consists of a comparison of the fair value of the indefinite-life intangible asset with its carrying amount. If the carrying amount exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. If the fair value exceeds its carrying amount, the indefinite-life intangible asset is not considered impaired.

Other intangible assets assigned finite useful lives are amortized on a straight-line basis over their estimated useful lives.

Contingencies - Litigation

Contingencies — Litigation

On an ongoing basis, we assess the potential liabilities related to any lawsuits or claims brought against us. While it is typically very difficult to determine the timing and ultimate outcome of such actions, we use our best judgment to determine if it is probable that we will incur an expense related to the settlement or final adjudication of such matters and whether a reasonable estimation of such probable loss, if any, can be made. In assessing probable losses, we take into consideration estimates of the amount of insurance recoveries, if any, which are recorded as assets when recoverability is probable. We accrue a liability when we believe a loss is probable and the amount of loss can be reasonably estimated. Due to the inherent uncertainties related to the eventual outcome of litigation and potential insurance recoveries, it is possible that certain matters may be resolved for amounts materially different from any provisions or disclosures that we have previously made.

Advertising Costs

Advertising CostsAdvertising costs are expensed as incurred except those costs which result in tangible assets, such as brochures, which are treated as prepaid expenses and charged to expense as consumed. Advertising costs consist of media advertising as well as brochure, production and direct mail costs.

Derivative Instruments

Derivative Instruments

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. 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.

At inception of the hedge relationship, a derivative instrument that hedges the exposure to changes in the fair value of a firm commitment or a recognized asset or liability is designated as a fair value hedge. A derivative instrument that hedges a forecasted transaction or the variability of cash flows related to a recognized asset or liability is designated as a cash flow hedge.

Changes in the fair value of derivatives that are designated as fair value hedges are offset against changes in the fair value of the underlying hedged assets, liabilities or firm commitments. Gains and losses on derivatives that are designated as cash flow hedges are recorded as a component of Accumulated other comprehensive loss until the underlying hedged transactions are recognized in earnings. The foreign currency transaction gain or loss of our non-derivative financial instruments and the changes in the fair value of derivatives designated as hedges of our net investment in foreign operations and investments are recognized as a component of Accumulated other comprehensive loss along with the associated foreign currency translation adjustment of the foreign operation or investment. In certain hedges of our net investment in foreign operations and investments, we exclude forward points from the assessment of hedge effectiveness and we amortize the related amounts directly into earnings.

On an ongoing basis, we assess whether derivatives used in hedging transactions are "highly effective" in offsetting changes in the fair value or cash flow of hedged items. For our net investment hedges, we use the dollar offset method to measure effectiveness. For all other hedging programs, we use the long-haul method to assess

hedge effectiveness using regression analysis for each hedge relationship. The methodology for assessing hedge effectiveness is applied on a consistent basis for each one of our hedging programs (i.e., interest rate, foreign currency ship construction, foreign currency net investment and fuel). For our regression analyses, we use an observation period of up to three years, utilizing market data relevant to the hedge horizon of each hedge relationship. High effectiveness is achieved when a statistically valid relationship reflects a high degree of offset and correlation between the changes in the fair values of the derivative instrument and the hedged item. If it is determined that a derivative is not highly effective as a hedge or hedge accounting is discontinued, any change in fair value of the derivative since the last date at which it was determined to be effective is recognized in earnings.

Cash flows from derivative instruments that are designated as fair value or cash flow hedges are classified in the same category as the cash flows from the underlying hedged items. In the event that hedge accounting is discontinued, cash flows subsequent to the date of discontinuance are classified within investing activities. Cash flows from derivative instruments not designated as hedging instruments are classified as investing activities.

We consider the classification of the underlying hedged item’s cash flows in determining the classification for the designated derivative instrument’s cash flows. We classify derivative instrument cash flows from hedges of benchmark interest rate or hedges of fuel expense as operating activities due to the nature of the hedged item. Likewise, we classify derivative instrument cash flows from hedges of foreign currency risk on our newbuild ship payments as investing activities.

Foreign Currency Translations and Transactions

Foreign Currency Translations and Transactions

We translate assets and liabilities of our foreign subsidiaries whose functional currency is the local currency, at exchange rates in effect at the balance sheet date. We translate revenues and expenses at weighted-average exchange rates for the period. Equity is translated at historical rates and the resulting foreign currency translation adjustments are included as a component of Accumulated other comprehensive loss, which is reflected as a separate component of Shareholders' equity. Exchange gains or losses arising from the remeasurement of monetary assets and liabilities denominated in a currency other than the functional currency of the entity involved are immediately included in our earnings, except for certain liabilities that have been designated to act as a hedge of a net investment in a foreign operation or investment. Exchange gains (losses) were $0.4 million, $57.6 million and $(75.6) million for the years ended December 31, 2019, 2018 and 2017, respectively, and were recorded within Other income (expense). The majority of our transactions are settled in United States dollars. Gains or losses resulting from transactions denominated in other currencies are recognized in income at each balance sheet date.

Concentrations of Credit Risk

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 December 31, 2019, we had no counterparty credit risk exposure under our derivative instruments compared to credit risk exposures of $5.6 million on December 31, 2018, which were 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.

Earnings Per Share

Earnings Per Share

Basic earnings per share is computed by dividing Net Income attributable to Royal Caribbean Cruises Ltd. by the weighted-average number of shares of common stock outstanding during each period. Diluted earnings per share

incorporates the incremental shares issuable upon the assumed exercise of stock options and conversion of potentially dilutive securities.

Stock-Based Employee Compensation

Stock-Based Employee Compensation

We measure and recognize compensation expense at the estimated fair value of employee stock awards. Compensation expense for awards and the related tax effects are recognized as they vest. We use the estimated amount of expected forfeitures to calculate compensation costs for all outstanding awards.

Segment Reporting

Segment Reporting

We control and operate four global cruise brands: Royal Caribbean International, Celebrity Cruises, Azamara and Silversea Cruises. We also own a 50% joint venture interest in the German brand TUI Cruises, a 49% interest in the Spanish brand Pullmantur. We believe our brands possess the versatility to enter multiple cruise market segments within the cruise vacation industry. Although each of these brands has its own marketing style as well as ships and crews of various sizes, the nature of the products sold and services delivered by these brands share a common base (i.e., the sale and provision of cruise vacations). Our brands also have similar itineraries as well as similar cost and revenue components. In addition, our brands source passengers from similar markets around the world and operate in similar economic environments with a significant degree of commercial overlap. As a result, our brands have been aggregated as a single reportable segment based on the similarity of their economic characteristics, types of consumers, regulatory environment, maintenance requirements, supporting systems and processes as well as products and services provided. Our Chairman and Chief Executive Officer has been identified as the chief operating decision-maker and all significant operating decisions including the allocation of resources are based upon the analyses of the Company as one segment. Refer to Note 4. Revenues for passenger ticket revenue information by geographic area.

Adoption of Accounting Pronouncements

Adoption of Accounting Pronouncements

Leases

On January 1, 2019, we adopted the guidance codified in Accounting Standard Codification ("ASC") 842, Leases ("ASC 842") using the modified retrospective approach and elected the optional transition method, which allows entities to initially apply the standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Upon adoption, we applied the guidance to all existing leases.

For leases with a term greater than 12 months, the new guidance requires the lease rights and obligations arising from the leasing arrangements, including operating leases, to be recognized as assets and liabilities on the balance sheet. Upon adoption of the new guidance, the most significant impact was the recognition of right-of-use assets and lease liabilities relating to operating leases in the amounts of $801.8 million and $820.5 million, respectively, reported within Operating lease right-of-use assets and Long-term operating lease liabilities, respectively, with the current portion of the liability reported within Current portion of operating lease liabilities, in our consolidated balance sheet as of January 1, 2019. Accounting for finance leases remained substantially unchanged and continues to be reported within Property and equipment, net and Long-term debt, with the current portion of the debt reported within Current portion of debt, in our consolidated balance sheets. There was no cumulative effect of applying the new standard and accordingly there was no adjustment to our retained earnings upon adoption. The comparative information presented has not been recast and continues to be reported under the accounting standards in effect for those periods. For further information on leases, refer to Note 10. Leases.

This guidance did not have a material impact to our consolidated statements of comprehensive income (loss), consolidated statements of cash flows and our debt-covenants calculations under our current agreements.

Recent Accounting Pronouncements

In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2016-13, Financial Instruments - Credit Losses (Topic 326); Measurement of Credit Losses on Financial Instruments. This ASU, along with subsequent ASUs issued to clarify certain of its provisions, introduces new

guidance which makes substantive changes to the accounting model for financial assets subject to credit losses that are measured at amortized cost, as well as certain off-balance sheet credit exposures. The primary updates include the introduction of a new current expected credit loss (“CECL”) model that is based on expected rather than incurred losses. This ASU and the related amendments will be effective for our annual reporting period beginning January 1, 2020. We are currently evaluating the impact that the adoption of this guidance will have to our consolidated financial statements.

In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350) – Simplifying the Test for Goodwill Impairment, which simplifies the subsequent measurement of goodwill by eliminating the second step of the goodwill impairment test. Under the new standard, goodwill impairment should be recognized based on the amount by which the carrying amount of a reporting unit exceeds its fair value, but should not exceed the total amount of goodwill allocated to the reporting unit. This ASU will be effective for our annual reporting period beginning January 1, 2020. This guidance is not expected to have a material impact to our consolidated financial statements, but may require us to modify our annual or interim goodwill impairment tests.

In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Topic 350-40), which requires a customer in a cloud computing arrangement that is a service contract to follow the internal-use software guidance to determine which implementation costs to capitalize as assets or expense as incurred. This ASU will be effective for our annual reporting period beginning January 1, 2020 and we expect to elect the prospective adoption method. The guidance may impact the accounting treatment of our future implementation costs related to cloud computing arrangements.

In January 2020, the FASB issued ASU No. 2020-01, Investments – Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivative and Hedging (Topic 815), which clarifies the interaction of rules for equity securities, the equity method of accounting, and forward contracts and purchase options on certain types of securities. The guidance clarifies how to account for the transition into and out of the equity method of accounting when considering observable transactions under the measurement alternative. The ASU is effective for annual reporting periods beginning after December 15, 2020, including interim reporting periods within those annual periods, with early adoption permitted. We are currently evaluating the impact of the new guidance on our consolidated financial statements.

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Business Combination (Narrative) (Details) - USD ($)		1 Months Ended	12 Months Ended
	Jul. 31, 2018	Jul. 31, 2018	Dec. 31, 2018	Apr. 30, 2019
Business Acquisition [Line Items]
Revenue since acquisition			$ 130,100,000
Net income since acquisition			3,300,000
Transaction costs			$ 31,800,000
Silversea Cruises
Business Acquisition [Line Items]
Percentage of business acquired	66.70%	66.70%
Payments to acquire business	$ 1,020,000,000.00
Contingent consideration	44,000,000.0	$ 44,000,000.0
Silversea Cruises
Business Acquisition [Line Items]
Long-term debt				$ 700,000,000
Silversea Cruises | Silversea Cruises
Business Acquisition [Line Items]
Long-term debt	$ 700,000,000	$ 700,000,000
Minimum | Silversea Cruises
Business Acquisition [Line Items]
Contingent consideration, shares (in shares)		0
Maximum | Silversea Cruises
Business Acquisition [Line Items]
Contingent consideration, shares (in shares)		472,000

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Goodwill (Schedule of Goodwill) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Goodwill [Roll Forward]
Beginning balance	$ 1,378,353	$ 288,512
Goodwill attributable to acquisition	12,518	1,090,010
Silversea Goodwill adjustment	(5,224)
Foreign currency translation adjustment	(3)	(169)
Ending balance	1,385,644	1,378,353
Royal Caribbean International
Goodwill [Roll Forward]
Beginning balance	286,711	286,880
Goodwill attributable to acquisition	12,518
Silversea Goodwill adjustment	0
Foreign currency translation adjustment	(3)	(169)
Ending balance	299,226	286,711
Celebrity Cruises
Goodwill [Roll Forward]
Beginning balance	1,632	1,632
Goodwill attributable to acquisition	0
Silversea Goodwill adjustment	0
Foreign currency translation adjustment	0	0
Ending balance	1,632	1,632
Silversea Cruises
Goodwill [Roll Forward]
Beginning balance	1,090,010	0
Goodwill attributable to acquisition	0	1,090,010
Silversea Goodwill adjustment	(5,224)
Foreign currency translation adjustment	0	0
Ending balance	$ 1,084,786	$ 1,090,010

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Intangible Assets (Future Amortization Expense) (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Intangible Assets, Net (Excluding Goodwill) [Abstract]
2020	$ 12,995
2021	8,179
2022	8,179
2023	8,179
2024	$ 8,179

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Quarterly Selected Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended													12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Quarterly Financial Information Disclosure [Abstract]
Total revenues	$ 2,517,413	$ 3,186,850	$ 2,806,631	$ 2,439,767	$ 2,332,301	$ 2,796,187	$ 2,337,605	$ 2,027,756						$ 10,950,661	$ 9,493,849	$ 8,777,845
Operating income	299,425	890,792	573,653	318,831	364,027	799,733	456,895	274,146						2,082,701	1,894,801	1,744,056
Net Income attributable to Royal Caribbean Cruises Ltd.	$ 273,136	$ 883,240	$ 472,830	$ 249,681	$ 315,703	$ 810,391	$ 466,295	$ 218,653						$ 1,878,887	$ 1,811,042	$ 1,625,133
Earnings per share:
Basic (in dollars per share)	$ 1.31	$ 4.21	$ 2.26	$ 1.19	$ 1.51	$ 3.88	$ 2.20	$ 1.03						$ 8.97	$ 8.60	$ 7.57
Diluted (in dollars per share)	1.30	4.20	2.25	1.19	1.50	3.86	2.19	1.02						8.95	8.56	7.53
Dividends declared per share (in dollars per share)	$ 0.78	$ 0.78	$ 0.70	$ 0.70	$ 0.70	$ 0.70	$ 0.60	$ 0.60	$ 0.60	$ 0.60	$ 0.48	$ 0.48	$ 0.48	$ 2.96	$ 2.60	$ 2.16

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Redeemable Noncontrolling Interest (Narrative) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jul. 31, 2018
Royal Caribbean International | Silversea Cruises Group
Redeemable Noncontrolling Interest [Line Items]
Ownership percentage by noncontrolling owners	33.30%
Silversea Cruises
Redeemable Noncontrolling Interest [Line Items]
Redeemable noncontrolling interest	$ 537,770	$ 537,770

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Income Taxes (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Taxes
Foreign operating loss carryforwards	$ 25.1
Other income (expense)
Income Taxes
Income tax expense (benefit)	32.6	$ 20.9	$ 18.3
Tax years between 2018 and 2024
Income Taxes
Operating loss carryforwards	$ 17.6

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Stock-Based Employee Compensation (Other Equity) (Details)	12 Months Ended
	Dec. 31, 2019 USD ($) $ / shares shares	Dec. 31, 2018 USD ($) $ / shares shares	Dec. 31, 2017 USD ($) $ / shares
Weighted-Average Grant Date Fair Value
Total unrecognized compensation cost | $	$ 0
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based awards conversion ratio	1
Number of Awards
Non-vested share units, beginning balance (in shares) | shares	800,585
Granted (in shares) | shares	293,707
Vested (in shares) | shares	(267,134)
Canceled (in shares) | shares	(25,323)
Non-vested share units, ending balance (in shares) | shares	801,835	800,585
Weighted-Average Grant Date Fair Value
Non-vested share units, beginning balance (in dollars per share)	$ 103.32
Granted (in dollars per share)	112.13	$ 122.12	$ 99.03
Vested (in dollars per share)	96.96
Canceled (in dollars per share)	109.32
Non-vested share units, ending balance (in dollars per share)	88.97	103.32
Weighted-average estimated fair value of restricted stock units granted (in dollars per share)	$ 112.13	$ 122.12	$ 99.03
Fair value of shares released on vesting of restricted stock units | $	$ 30,800,000	$ 33,900,000	$ 38,700,000
Total unrecognized compensation cost | $	$ 37,100,000
Weighted-average period of unrecognized compensation cost to be recognized (Years)	1 year 4 months 20 days
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based awards conversion ratio	1
Number of Awards
Non-vested share units, beginning balance (in shares) | shares	302,561
Granted (in shares) | shares	187,924
Vested (in shares) | shares	(198,537)
Canceled (in shares) | shares	(5,931)
Non-vested share units, ending balance (in shares) | shares	286,017	302,561
Weighted-Average Grant Date Fair Value
Non-vested share units, beginning balance (in dollars per share)	$ 88.57
Granted (in dollars per share)	87.39	$ 97.98	$ 84.16
Vested (in dollars per share)	62.49
Canceled (in dollars per share)	95.12
Non-vested share units, ending balance (in dollars per share)	105.76	88.57
Weighted-average estimated fair value of restricted stock units granted (in dollars per share)	$ 87.39	$ 97.98	$ 84.16
Fair value of shares released on vesting of restricted stock units | $	$ 23,000,000.0	$ 27,300,000	$ 10,000,000.0
Total unrecognized compensation cost | $	$ 10,000,000.0
Weighted-average period of unrecognized compensation cost to be recognized (Years)	1 year 21 days
Maximum actual number of shares underlying each performance share award as a percentage of target performance shares	200.00%
Restricted Stock
Number of Awards
Granted (in shares) | shares	194,486
Weighted-Average Grant Date Fair Value
Granted (in dollars per share)		$ 129.23	$ 95.04
Weighted-average estimated fair value of restricted stock units granted (in dollars per share)		$ 129.23	$ 95.04
Total unrecognized compensation cost | $	$ 3,200,000
Weighted-average period of unrecognized compensation cost to be recognized (Years)	1 year 2 months 26 days
Maximum actual number of shares underlying each performance share award as a percentage of target performance shares	200.00%
Restricted Stock | Senior Officers
Number of Awards
Non-vested share units, beginning balance (in shares) | shares	390,198
Granted (in shares) | shares	194,486
Vested (in shares) | shares	(120,329)
Canceled (in shares) | shares	(11,899)
Non-vested share units, ending balance (in shares) | shares	452,456	390,198
Weighted-Average Grant Date Fair Value
Non-vested share units, beginning balance (in dollars per share)	$ 96.03
Granted (in dollars per share)	118.08
Vested (in dollars per share)	66.93
Canceled (in dollars per share)	66.93
Non-vested share units, ending balance (in dollars per share)	114.01	$ 96.03
Weighted-average estimated fair value of restricted stock units granted (in dollars per share)	$ 118.08

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Leases - Lease Expense (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($)
Lessee, Lease, Description [Line Items]
Amortization of right-of-use-assets	$ 22,044
Interest on lease liabilities	8,355
Total lease costs	153,330
Commissions, transportation and other
Lessee, Lease, Description [Line Items]
Operating lease costs	76,226
Other operating expenses
Lessee, Lease, Description [Line Items]
Operating lease costs	27,868
Marketing, selling and administrative expenses
Lessee, Lease, Description [Line Items]
Operating lease costs	$ 18,837