Earnings (Loss) Per Share

9 Months Ended

Sep. 30, 2023

Note 4. Earnings (Loss) Per Share

Basic and diluted earnings (loss) per share is as follows (in thousands, except per share data):


	Quarter Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Net Income (Loss) attributable to Royal Caribbean Cruises Ltd. for basic earnings (loss) per share	$	1,009,076	$	32,968	$	1,419,927	$	(1,655,756)
Add convertible notes interest	20,269		—		67,605		—
Net Income (Loss) attributable to Royal Caribbean Cruises Ltd. for diluted earnings (loss) per share	1,029,345		32,968		1,487,532		(1,655,756)
Weighted-average common shares outstanding	256,188		255,071		255,822		254,953
Dilutive effect of stock-based awards	857		307		586		—
Dilutive effect of convertible notes	24,831		—		27,439		—
Diluted weighted-average shares outstanding	281,876		255,378		283,847		254,953
Basic earnings (loss) per share	$	3.94	$	0.13	$	5.55	$	(6.49)
Diluted earnings (loss) per share	$	3.65	$	0.13	$	5.24	$	(6.49)

Basic earnings (loss) per share is computed by dividing Net Income (Loss) by the weighted-average number of common stock outstanding during each period. Diluted earnings (loss) per share incorporates the incremental shares issuable upon the assumed exercise of stock options and conversion of potentially dilutive securities. We use the if-converted method to calculate the impact of our convertible notes that may be settled in cash or shares. To the extent dilutive, shares related to our convertible notes are assumed to be converted into common stock at the beginning of the reporting period, and we add back the interest expense to the numerator.

If we have a net loss for the period, all potential common shares will be considered antidilutive, resulting in the same basic and diluted net loss per share amounts for those periods. There were no antidilutive shares for the quarter and nine months ended September 30, 2023, compared to 30,532,145 and 31,085,736 antidilutive shares from our stock-based awards and convertible notes for the quarter and nine months ended September 30, 2022, respectively.