10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549 

FORM 10-Q 

(Mark One) 

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2024

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from            to            

Commission File Number: 1-11884

ROYAL CARIBBEAN CRUISES LTD.

(Exact name of registrant as specified in its charter) 

Republic of Liberia	98-0081645
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

1050 Caribbean Way, Miami, Florida 33132

(Address of principal executive offices) (zip code) 

(305) 539-6000

(Registrant’s telephone number, including area code) 

N/A

(Former name, former address and former fiscal year, if changed since last report) 

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

Title of each 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 (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes ☒  No ☐ 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes ☒  No ☐ 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. 

Large accelerated filer ☒	Accelerated filer ☐	Non-accelerated filer ☐	Smaller reporting company ☐
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes ☐  No ☒ 

There were 257,349,196 shares of common stock outstanding as of April 22, 2024.

ROYAL CARIBBEAN CRUISES LTD.

TABLE OF CONTENTS

	Page
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements	1
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	19
Item 3. Quantitative and Qualitative Disclosures About Market Risk	32
Item 4. Controls and Procedures	32
PART II. OTHER INFORMATION
Item 1. Legal Proceedings	33
Item 1A. Risk Factors	33
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	34
Item 5. Other Information	34
Item 6. Exhibits	35
SIGNATURES	36

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

ROYAL CARIBBEAN CRUISES LTD.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(unaudited; in millions, except per share data)

	Quarter Ended March 31,
	2024		2023
Passenger ticket revenues	$	2,542	$	1,897
Onboard and other revenues	1,186		989
Total revenues	3,728		2,886
Cruise operating expenses:
Commissions, transportation and other	498		403
Onboard and other	193		159
Payroll and related	318		310
Food	221		199
Fuel	304		302
Other operating	522		420
Total cruise operating expenses	2,056		1,793
Marketing, selling and administrative expenses	535		461
Depreciation and amortization expenses	387		360
Operating Income	750		272
Other income (expense):
Interest income	5		15
Interest expense, net of interest capitalized	(424)		(360)
Equity investment income	41		20
Other (expense) income	(8)		5
	(386)		(320)
Net Income (Loss)	364		(48)
Less: Net Income attributable to noncontrolling interest	4		—
Net Income (Loss) attributable to Royal Caribbean Cruises Ltd.	$	360	$	(48)
Earnings (Loss) per Share:
Basic	$	1.40	$	(0.19)
Diluted	$	1.35	$	(0.19)
Weighted-Average Shares Outstanding:
Basic	257		255
Diluted	281		255
Comprehensive Income (Loss)
Net Income (Loss)	$	364	$	(48)
Other comprehensive income (loss):
Foreign currency translation adjustments	4		(7)
Change in defined benefit plans	9		4
Gain (loss) on cash flow derivative hedges	44		(32)
Total other comprehensive income (loss)	57		(35)
Comprehensive Income (Loss)	421		(83)
Less: Comprehensive Income attributable to noncontrolling interest	4		—
Comprehensive Income (Loss) attributable to Royal Caribbean Cruises Ltd.	$	417	$	(83)

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

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ROYAL CARIBBEAN CRUISES LTD.

CONSOLIDATED BALANCE SHEETS

(in millions, except share data)

	As of
	March 31,		December 31,
	2024		2023
	(unaudited)
Assets
Current assets
Cash and cash equivalents	$	437	$	497
Trade and other receivables, net of allowances of $9 and $7 at March 31, 2024 and December 31, 2023, respectively	455		405
Inventories	236		248
Prepaid expenses and other assets	690		617
Derivative financial instruments	52		25
Total current assets	1,870		1,792
Property and equipment, net	30,025		30,114
Operating lease right-of-use assets	599		611
Goodwill	809		809
Other assets, net of allowances of $43 at March 31, 2024 and December 31, 2023.	1,887		1,805
Total assets	$	35,190	$	35,131
Liabilities and Shareholders’ Equity
Current liabilities
Current portion of long-term debt	$	1,643	$	1,720
Current portion of operating lease liabilities	63		65
Accounts payable	876		792
Accrued expenses and other liabilities	1,236		1,478
Derivative financial instruments	47		35
Customer deposits	6,040		5,311
Total current liabilities	9,905		9,401
Long-term debt	18,876		19,732
Long-term operating lease liabilities	603		613
Other long-term liabilities	481		486
Total liabilities	29,865		30,232
Shareholders’ equity
Preferred stock ($0.01 par value; 20,000,000 shares authorized; none outstanding)	—		—
Common stock ($0.01 par value; 500,000,000 shares authorized; 285,814,489 and 284,672,386 shares issued, March 31, 2024 and December 31, 2023, respectively)	3		3
Paid-in capital	7,496		7,474
Retained earnings (accumulated deficit)	350		(10)
Accumulated other comprehensive loss	(617)		(674)
Treasury stock (28,468,430 and 28,248,125 common shares at cost, March 31, 2024 and December 31, 2023, respectively)	(2,081)		(2,069)
Total shareholders’ equity attributable to Royal Caribbean Cruises Ltd.	5,151		4,724
Noncontrolling Interests	174		175
Total shareholders’ equity	5,325		4,899
Total liabilities and shareholders’ equity	$	35,190	$	35,131

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

2

ROYAL CARIBBEAN CRUISES LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in millions)
	Three Months Ended March 31,
	2024		2023
Operating Activities
Net Income (Loss)	$	364	$	(48)
Adjustments:
Depreciation and amortization	387		360
Net deferred income tax benefit	—		(11)
Gain (loss) on derivative instruments not designated as hedges	35		(3)
Share-based compensation expense	45		26
Equity investment income	(41)		(20)
Amortization of debt issuance costs, discounts and premiums	26		30
Loss on extinguishment of debt	116		13
Changes in operating assets and liabilities:
(Increase) decrease in trade and other receivables, net	(57)		123
Decrease in inventories	12		3
Increase in prepaid expenses and other assets	(80)		(78)
Increase in accounts payable trade	78		57
Decrease in accrued expenses and other liabilities	(238)		(261)
Increase in customer deposits	729		1,103
Other, net	(48)		16
Net cash provided by operating activities	1,328		1,310
Investing Activities
Purchases of property and equipment	(242)		(252)
Cash received on settlement of derivative financial instruments	—		5
Cash paid on settlement of derivative financial instruments	(35)		(6)
Investments in and loans to unconsolidated affiliates	(9)		—
Cash received on loans from unconsolidated affiliates	5		5
Other, net	(15)		14
Net cash used in investing activities	(296)		(234)
Financing Activities
Debt proceeds	2,179		705
Debt issuance costs	(19)		(27)
Repayments of debt	(3,107)		(2,664)
Premium on repayment of debt	(104)		—
Proceeds from sale of noncontrolling interest	—		209
Other, net	(40)		(7)
Net cash used in financing activities	(1,091)		(1,784)
Effect of exchange rate changes on cash and cash equivalents	(1)		—
Net decrease in cash and cash equivalents	(60)		(708)
Cash and cash equivalents at beginning of period	497		1,935
Cash and cash equivalents at end of period	$	437	$	1,227

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

3

ROYAL CARIBBEAN CRUISES LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in millions)
	Three Months Ended March 31,
	2024		2023
Supplemental Disclosure
Cash paid during the period for:
Interest, net of amount capitalized	$	411	$	389
Non-cash Investing Activities
Purchase of property and equipment included in accounts payable and accrued expenses and other liabilities	$	44	$	19

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

4

ROYAL CARIBBEAN CRUISES LTD.

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

(unaudited; in millions)

	Common Stock		Paid-in Capital		Retained Earnings (Accumulated Deficit)		Accumulated Other Comprehensive Loss		Treasury Stock		Noncontrolling Interest		Total Shareholders' Equity
Balance at January 1, 2024	$	3	$	7,474	$	(10)	$	(674)	$	(2,069)	175		$	4,899
Activity related to employee stock plans	—		22		—		—		—		—		22
Changes related to cash flow derivative hedges	—		—		—		44		—		—		44
Change in defined benefit plans	—		—		—		9		—		—		9
Foreign currency translation adjustments	—		—		—		4		—		—		4
Purchase of treasury stock	—		—		—		—		(12)		—		(12)
Net Income attributable to noncontrolling interest	—		—		—		—		—		4		4
Dividends from noncontrolling interest	—		—		—		—		—		(5)		(5)
Net Income attributable to Royal Caribbean Cruises Ltd.	—		—		360		—		—		—		360
Balance at March 31, 2024	$	3	$	7,496	$	350	$	(617)	$	(2,081)	$	174	$	5,325

	Common Stock		Paid-in Capital		Retained Earnings (Accumulated Deficit)		Accumulated Other Comprehensive Loss		Treasury Stock		Noncontrolling Interest		Total Shareholders' Equity
Balance at January 1, 2023	$	3	$	7,285	$	(1,707)	$	(643)	$	(2,068)	$	—	$	2,870
Activity related to employee stock plans	—		21		—		—		—		—		21
Changes related to cash flow derivative hedges	—		—		—		(32)		—		—		(32)
Change in defined benefit plans	—		—		—		4		—		—		4
Foreign currency translation adjustments	—		—		—		(7)		—		—		(7)
Purchase of treasury stock	—		—		—		—		(1)		—		(1)
Sale of noncontrolling interest	—		45		—		—		—		174		219
Net Loss	—		—		(48)		—		—		—		(48)
Balance at March 31, 2023	$	3	$	7,351	$	(1,755)	$	(678)	$	(2,069)	$	174	$	3,026

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

5

ROYAL CARIBBEAN CRUISES LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

As used in this Quarterly Report on Form 10-Q, the terms “Royal Caribbean,” "Royal Caribbean Group," the “Company,” “we,” “our” and “us” refer to Royal Caribbean Cruises Ltd. and, depending on the context, Royal Caribbean Cruises Ltd.’s consolidated subsidiaries and/or affiliates. The terms “Royal Caribbean International,” “Celebrity Cruises,” and "Silversea Cruises" refer to our wholly owned global cruise brands. Throughout this Quarterly Report on Form 10-Q, we also refer to our partner brands in which we hold an ownership interest, including “TUI Cruises” and "Hapag-Lloyd Cruises." However, because these partner brands are unconsolidated investments, our operating results and other disclosures herein do not include these brands unless otherwise specified. In accordance with cruise vacation industry practice, the term “berths” is determined based on double occupancy per cabin even though many cabins can accommodate three or more passengers. This Quarterly Report on Form 10-Q should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2023.

This Quarterly Report on Form 10-Q also includes trademarks, trade names and service marks of other companies. Use or display by us of other parties’ trademarks, trade names or service marks is not intended to and does not imply a relationship with, or endorsement or sponsorship of us by, these other parties other than as described herein.

Note 1. General

Description of Business 

We are a global cruise company. We own and operate three global cruise brands: Royal Caribbean International, Celebrity Cruises and Silversea Cruises (collectively, our "Global Brands"). We also own a 50% joint venture interest in TUI Cruises GmbH ("TUIC"), which operates the German brands TUI Cruises and Hapag-Lloyd Cruises (collectively, our "Partner Brands"). We account for our investments in our Partner Brands under the equity method of accounting. Together, our Global Brands and our Partner Brands have a combined fleet of 65 ships as of March 31, 2024. Our ships offer a selection of worldwide itineraries that call on more than 1,000 destinations in over 120 countries on all seven continents.

Basis for Preparation of Consolidated Financial Statements

The unaudited consolidated financial statements are presented pursuant to the rules and regulations of the Securities and Exchange Commission. In our opinion, these statements include all adjustments necessary for a fair statement of the results of the interim periods reported herein. Adjustments consist only of normal recurring items, except for any items discussed in the notes below. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted as permitted by such Securities and Exchange Commission rules and regulations. Estimates are required for the preparation of financial statements in accordance with these principles. Actual results could differ from these estimates. Refer to Note 2. Summary of Significant Accounting Policies in this Quarterly Report on Form 10-Q and in our Annual Report on Form 10-K for the year ended December 31, 2023 for a discussion of our significant accounting policies. The Company has changed its presentation from thousands to millions and, as a result, any necessary rounding adjustments have been made to prior period disclosed amounts.

All significant intercompany accounts and transactions are eliminated in consolidation. We consolidate entities over which we have control, usually evidenced by a direct ownership interest of greater than 50%, and variable interest entities where we are determined to be the primary beneficiary. Refer to Note 5. Investments and Other Assets for further information regarding our variable interest entities. For affiliates we do not control but over which we have significant influence on financial and operating policies, usually evidenced by a direct ownership interest from 20% to 50%, the investment is accounted for using the equity method.

Note 2. Summary of Significant Accounting Policies

Recent Accounting Pronouncements

In August 2023, the FASB issued ASU No. 2023-05, Business Combinations - Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement. This ASU provides guidance requiring a joint venture to initially measure all contributions received upon its formation at fair value. The guidance is intended to provide users of joint venture financial statements with more decision-useful information. This ASU is effective for joint venture entities with a formation date on or after January 1, 2025 on a prospective basis. Early adoption is permitted, and joint ventures formed prior to the adoption date

6

may elect to apply the new guidance retrospectively back to their original formation date. We are currently evaluating the impact of the new guidance on our consolidated financial statements.

In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This ASU requires enhanced disclosures about significant segment expenses and other segment items and requires companies to disclose all annual disclosures about segments in interim periods. This ASU also requires public entities with a single reportable segment to provide all the disclosures required by the amendments in this ASU and all existing segment disclosures in Topic 280. The amendments in this ASU are intended to improve financial reporting by requiring disclosure of incremental segment information on an annual and interim basis for all public entities to enable investors to develop more decision-useful financial analyses. The amendments in this ASU are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted and the amendments should be applied retrospectively to all periods presented. We are currently evaluating the impact of the new guidance on our consolidated financial statements and related disclosures.

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The new guidance is intended to enhance the transparency and decision usefulness of income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. This ASU is effective for annual periods beginning after December 15, 2024 on a prospective basis. Early adoption and retrospective application is permitted. We are currently evaluating the impact of the new guidance on our consolidated financial statements and related disclosures.

Note 3. Revenue

Revenue Recognition

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

The majority of our revenues are derived from passenger cruise contracts which are reported within Passenger ticket revenues in our consolidated statements of comprehensive income (loss). Our performance obligation under these contracts is to provide a cruise vacation in exchange for the ticket price. We receive payment before we satisfy this performance obligation and recognize revenue over the duration of each cruise, which generally ranges from three to 28 nights.

Passenger ticket revenues include charges to our guests for port costs that vary with passenger head counts. These types of port costs, along with port costs that do not vary by passenger head counts, are included in our cruise operating expenses. The amounts of port costs charged to our guests and included within Passenger ticket revenues on a gross basis were $242 million and $203 million for the quarters ended March 31, 2024 and 2023, respectively.

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

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

7

Disaggregated Revenues

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

	Quarter Ended March 31,
	2024		2023
Revenues by itinerary
North America (1)	$	2,690	$	2,193
Asia/Pacific	506		333
Europe	21		2
Other regions (2)	322		214
Total revenues by itinerary	3,539		2,742
Other revenues (3)	189		144
Total revenues	$	3,728	$	2,886

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

(2) Includes seasonality impacted itineraries primarily in South and Latin American countries.

(3) Includes revenues primarily related to cancellation fees, vacation protection insurance, casino operations, pre- and post-cruise tours and fees for operating certain port facilities. Amounts also include revenues related to procurement and management related services we perform on behalf of our unconsolidated affiliates. Refer to Note 5. Investments and Other Assets for more information on our unconsolidated affiliates.

Passenger ticket revenues are attributed to geographic areas based on where the reservation originates. For the quarters ended March 31, 2024 and 2023, our guests were sourced from the following areas:

	Quarter Ended March 31,
	2024		2023
Passenger ticket revenues:
United States	73	%	76	%
All other countries (1)	27	%	24	%

(1)No other individual country's revenue exceeded 10% for the quarters ended March 31, 2024 and 2023.

Customer Deposits and Contract Liabilities

Our payment terms generally require an upfront deposit to confirm a reservation, with the balance due prior to the cruise. Deposits received on sales of passenger cruises are initially recorded as Customer deposits in our consolidated balance sheets and subsequently recognized as passenger ticket revenues or onboard revenues during the duration of the cruise. ASC 606, Revenues from Contracts with Customers, defines a “contract liability” as an entity’s obligation to transfer goods or services to a customer for which the entity has received consideration from the customer. We do not consider customer deposits to be a contract liability until the customer no longer retains the unilateral right, resulting from the passage of time, to cancel such customer's reservation and receive a full refund. Customer deposits presented in our consolidated balance sheets include contract liabilities of $2.9 billion and $2.6 billion as of March 31, 2024 and December 31, 2023, respectively.

During the pandemic we provided flexibility to guests with bookings on sailings that were cancelled by allowing guests to receive future cruise credits (“FCCs”). As of March 31, 2024, our customer deposit balance includes approximately $317 million of unredeemed FCCs. Our FCCs are not refundable and do not have expiration dates. Based upon our analysis of historical redemption experience, we believe a portion of our FCCs are not probable of being used in future periods. Based on our current estimates, we recognized an immaterial amount of FCC breakage revenue during the quarter ended March 31, 2024. We will continue to monitor changes in redemption behavior and estimate and record revenue associated with breakage when the likelihood of the customer exercising their remaining rights becomes remote.

8

Contract Receivables and Contract Assets

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

Our credit card processors agreements require us, under certain circumstances, to maintain a reserve that can be satisfied by posting collateral. As of March 31, 2024, none of our credit card processors required us to maintain a reserve.

We have contract assets that are conditional rights to consideration for satisfying the construction services performance obligations under a service concession arrangement. As of March 31, 2024 and December 31, 2023, our contract assets were $166 million and $167 million, respectively, and were included within Other assets in our consolidated balance sheets. Given the short duration of our cruises and our collection terms, we do not have any other significant contract assets.

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

Prepaid travel advisor commissions and prepaid credit and debit card fees are an incremental cost of obtaining contracts with customers that we recognize as an asset and include within Prepaid expenses and other assets in our consolidated balance sheets. Prepaid travel advisor commissions and prepaid credit and debit card fees were $293 million as of March 31, 2024 and $257 million as of December 31, 2023. Our prepaid travel advisor commissions and prepaid credit and debit card fees are recognized at the time of revenue recognition or at the time of voyage cancellation, and are reported primarily within Commissions, transportation and other in our consolidated statements of comprehensive income (loss).

Note 4. Earnings (Loss) Per Share

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

	Quarter Ended March 31,
	2024		2023
Net Income (Loss) attributable to Royal Caribbean Cruises Ltd. for basic earnings (loss) per share	$	360	$	(48)
Add convertible notes interest	19		—
Net Income (Loss) attributable to Royal Caribbean Cruises Ltd. for diluted earnings (loss) per share	379		(48)
Weighted-average common shares outstanding	257		255
Dilutive effect of stock-based awards	1		—
Dilutive effect of convertible notes	23		—
Diluted weighted-average shares outstanding	281		255
Basic earnings (loss) per share	$	1.40	$	(0.19)
Diluted earnings (loss) per share	$	1.35	$	(0.19)

There were no antidilutive shares for the quarter ended March 31, 2024, compared to 30,994,718 antidilutive shares from our stock-based awards and convertible notes for the quarter ended March 31, 2023.

Note 5. Investments and Other Assets

A Variable Interest Entity (“VIE”) is an entity in which the equity investors have not provided enough equity to finance the entity’s activities or the equity investors: (1) cannot directly or indirectly make decisions about the entity’s activities through their voting rights or similar rights; (2) do not have the obligation to absorb the expected losses of the entity; (3) do not have the right to receive the expected residual returns of the entity; or (4) have voting rights that are not proportionate to their economic interests and the entity’s activities involve or are conducted on behalf of an investor with a disproportionately small voting interest. We hold equity interests in ventures related to our cruise operations. We account for the majority of these investments as either an equity method investment or a controlled subsidiary.

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Effective March 31, 2023, we closed on the partnership agreement with iCON Infrastructure Partners VI, L.P. ("iCON"). This partnership will own, develop, and manage cruise terminal facilities and infrastructure in key ports of call, initially including several development projects in Italy and Spain. As part of the transaction with iCON we also sold 80% of the entity which owns our terminal at PortMiami. Refer below to equity method investments and controlled subsidiaries for further information on the transaction. In addition, the partnership will pursue additional port infrastructure developments, including future plans to own, develop, and manage an infrastructure project in the U.S. Virgin Islands.

Unconsolidated investments ("equity method investments")

We have determined that TUI Cruises GmbH ("TUIC"), our 50%-owned joint venture, which operates the brands TUI Cruises and Hapag-Lloyd Cruises, is a VIE. We have determined that we are not the primary beneficiary of TUIC. We believe that the power to direct the activities that most significantly impact TUIC’s economic performance is shared between ourselves and TUI AG, our joint venture partner. All the significant operating and financial decisions of TUIC require the consent of both parties, which we believe creates shared power over TUIC. Accordingly, we do not consolidate this entity and account for this investment under the equity method of accounting.

As of March 31, 2024, the net book value of our investment in TUIC was $678 million, primarily consisting of $594 million in equity and a loan of €67 million, or approximately $73 million based on the exchange rate at March 31, 2024. As of December 31, 2023, the net book value of our investment in TUIC was $657 million, primarily consisting of $566 million in equity and a loan of €71 million, or approximately $79 million based on the exchange rate at December 31, 2023. The loan, which was made in connection with the sale of Splendour of the Seas in April 2016, accrues interest at a rate of 6.25% per annum and is payable over 10 years. This loan is 50% guaranteed by TUI AG and is secured by a first priority mortgage on the ship.

TUIC has various ship construction and financing agreements which include certain restrictions on each of our and TUI AG’s ability to reduce our current ownership interest in TUIC below 37.55% through May 2033. Our investment amount and outstanding term loan are substantially our maximum exposure to loss in connection with our investment in TUIC.

We have determined that Grand Bahama Shipyard Ltd. ("Grand Bahama"), a ship repair and maintenance facility in which we have a 40% noncontrolling interest, is a VIE. This facility serves cruise and cargo ships, oil and gas tankers and offshore units. We utilize this facility, among other ship repair facilities, for our regularly scheduled drydocks and certain emergency repairs as may be required. We have determined that we are not the primary beneficiary of this facility as we do not have the power to direct the activities that most significantly impact the facility’s economic performance. Accordingly, we do not consolidate this entity and account for this investment under the equity method of accounting.

During the second half of 2023, we formed a 50%-owned joint venture with the other 40% shareholder of Grand Bahama to operate Floating Docks S. DE RL. (“Floating Docks”). Floating Docks will construct two floating drydocks, with delivery dates expected in 2025 and 2026, that will be leased to Grand Bahama and allow it to service the entire range of cruise ships in operation and under construction, as well as much of the world’s commercial shipping fleet. We and our joint venture partner have each guaranteed 50% of certain installment payments payable by Floating Docks under the drydock and related construction contracts, which are contingent on the achievement of certain construction milestones, bringing our total payment guarantees to $59 million as of March 31, 2024. Our investment in Floating Docks, including loans, is immaterial to our consolidated financial statements as of March 31, 2024.

We have determined that Floating Docks is a VIE. We have determined that we are not the primary beneficiary of Floating Docks since we believe that the power to direct the activities that most significantly impact Floating Docks' economic performance is shared between ourselves and our joint venture partner. All the significant operating and financial decisions of Floating Docks require the consent of both parties which we believe creates shared power over Floating Docks. Accordingly, we do not consolidate this entity and account for this investment under the equity method of accounting.

As part of the transaction with iCON, we sold our controlling interest in two Italian entities for an immaterial amount of net proceeds and recognized an immaterial gain on the sale. At closing, we have determined that the partnership and both Italian entities are VIE's. These entities in Italy represent development projects to own, develop, and manage cruise terminal facilities in key ports of call. We have determined that we are not the primary beneficiary for either of these entities as we do not have the power to direct the activities that most significantly impact the economic performance. Accordingly, we do not consolidate these entities and account for these investments under the equity method of accounting.

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

	Quarter Ended March 31,
	2024		2023
Share of equity income from investments	$	41	$	20

	As of March 31, 2024		As of December 31, 2023
Total notes receivable due from equity investments	$	107	$	105
Less-current portion (1)	18		19
Long-term portion (2)	$	89	$	86

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

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

Consolidated investments ("controlled subsidiaries")

As part of the transaction with iCON, we sold an 80% interest in the entity which owns our terminal at PortMiami for $209 million and retained a 20% minority interest, effective March 31, 2023. We also sold a noncontrolling interest in another entity which is developing a port project in Spain for an immaterial amount. We have determined that both of these entities are VIEs, and we are the primary beneficiary as we have the power to direct the activities that most significantly impact the facility’s economic performance. Accordingly, we continue to consolidate both entities. The cash consideration received for the sale of the PortMiami terminal company, net of transaction costs, was allocated between paid-in capital and noncontrolling interest using the net book value of our investment in the PortMiami terminal, as presented in the statement of shareholders' equity.

Other Assets

Credit Losses

We reviewed our receivables for credit losses in connection with the preparation of our financial statements for the quarter ended March 31, 2024. In evaluating the allowance, management considered factors such as historical loss experience, the types of loans and the amount of loans in the loan portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, peer group information and prevailing economic conditions. Our credit loss allowance as of March 31, 2024 and 2023 primarily relates to credit losses recognized on notes receivable for the previous sale of certain property and equipment of $43 million and $63 million, respectively, which were originated in 2015 and 2020.

The following table summarizes our credit loss allowance related to receivables (in millions):

	Three Months Ended March 31,
	2024		2023
Balance, beginning of period	$	49	$	83
Credit loss (recovery), net	2		(7)
Write-offs	—		(2)
Balance, end of period	$	51	$	74

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Note 6. Debt

Debt consists of the following (in millions):

	Interest Rate (1)	Maturities Through	As of March 31, 2024		As of December 31, 2023
Fixed rate debt:
Unsecured senior notes	3.70% to 9.25%	2026 - 2032	$	7,898	$	7,899
Secured senior notes	8.25%	2029	1,000		1,000
Unsecured term loans	1.28% to 5.89%	2027 - 2035	6,420		6,569
Convertible notes	6.00%	2025	1,150		1,150
Total fixed rate debt			16,468		16,618
Variable rate debt:
Unsecured revolving credit facilities (2)	6.76% to 7.48%	2025 - 2028	304		899
USD unsecured term loan	6.05% to 9.95%	2024 - 2037	3,555		3,666
Euro unsecured term loan	5.00% to 6.14%	2024 - 2028	352		443
Total variable rate debt			4,211		5,008
Finance lease liabilities			363		369
Total debt (3)			21,042		21,995
Less: unamortized debt issuance costs			(523)		(543)
Total debt, net of unamortized debt issuance costs			20,519		21,452
Less—current portion			(1,643)		(1,720)
Long-term portion			$	18,876	$	19,732

(1) Interest rates based on outstanding loan balance as of March 31, 2024, and for variable rate debt include either EURIBOR or Term SOFR plus the applicable margin.

(2) Advances under our unsecured revolving credit facilities accrue interest at Term SOFR plus a 0.10% credit adjustment spread plus an interest rate margin primarily at 1.33%. Based on applicable Term SOFR rates, as of March 31, 2024, the maximum interest rate under the unsecured credit facilities was 6.76%. We also pay a facility fee primarily at 0.17% of the total commitments under such facility.

(3) At March 31, 2024 and December 31, 2023, the weighted average interest rate for total debt was 5.75% and 6.06%, respectively.

Unsecured revolving credit facilities

As of March 31, 2024 our aggregate revolving credit capacity is $3.6 billion of which $1.8 billion of the commitments are scheduled to mature in October 2026, $1.8 billion of the commitments are scheduled to mature in October 2028, and the remaining $77 million of commitments are scheduled to mature in April 2025. As of March 31, 2024, we had undrawn capacity of $3.3 billion under our unsecured revolving credit facilities.

In March 2024, we issued $1.25 billion of senior unsecured notes (the "notes") due in 2032 for net proceeds of approximately $1.24 billion. Interest accrues on the notes at a fixed rate of 6.25% per annum and is payable semi-annually in arrears. The proceeds from this notes issuance, together with cash on hand, were used to redeem all of the outstanding $1.25 billion aggregate principal amount of 11.625% Senior Notes due 2027. The repayment resulted in a loss on extinguishment of debt of $116 million that was recognized within Interest expense, net of interest capitalized within our consolidated statements of comprehensive income (loss) for the quarter ended March 31, 2024.

Export credit agency guarantees

Except for the term loans we incurred to acquire Celebrity Flora and Silver Moon, all of our unsecured ship financing term loans are guaranteed by the export credit agency in the respective country in which the ship is constructed. For the majority of the loans as of March 31, 2024, we pay to the applicable export credit agency, depending on the financing agreement, an upfront fee of 2.35% to 5.48% of the maximum loan amount in consideration for these guarantees. We amortize

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the fees that are paid upfront over the life of the loan. We classify these fees within Amortization of debt issuance costs, discounts and premiums in our consolidated statements of cash flows. Prior to the loan being drawn, we present these fees within Other assets in our consolidated balance sheets. Once the loan is drawn, such fees are classified as a discount to the related loan, or contra-liability account, within Current portion of long-term debt or long-term debt.

Debt covenants

Our revolving credit facilities, the majority of our term loans, and certain of our credit card processing agreements, contain covenants that require us, among other things, to maintain a fixed charge coverage ratio, limit our net debt-to-capital ratio, maintain minimum liquidity, and under certain facilities, to maintain a minimum stockholders' equity. As of March 31, 2024, our credit facility amendments require us to prepay outstanding deferred amounts of $839 million, if we elect to pay dividends or complete share repurchases. As of March 31, 2024, we were in compliance with our debt covenants and we estimate we will be in compliance for the next twelve months.

The following is a schedule of annual maturities on our total debt, including finance leases, as of March 31, 2024 for each of the next five years (in millions):

Year	As of March 31, 2024 (1)
Remainder of 2024	$	1,390
2025	2,628
2026	3,045
2027	2,509
2028	3,267
Thereafter	8,203
	$	21,042

(1)    Debt denominated in other currencies is calculated based on the applicable exchange rate at March 31, 2024.

Note 7. Leases

Operating Leases

Our operating leases primarily relate to preferred berthing arrangements, real estate, and shipboard equipment which are included within Operating lease right-of-use assets, and Long-term operating lease liabilities with the current portion of the liability included within Current portion of operating lease liabilities in our consolidated balance sheets as of March 31, 2024 and December 31, 2023. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet. We recognize lease expense for these leases on a straight-line basis over the lease term.

The company's preferred berthing agreement with Miami-Dade County ("County") includes the development plans for the County to finance the construction of a new and improved cruise Terminal G at PortMiami. The aggregate amount of the operating lease liabilities recorded for this berthing agreement was $167 million as of March 31, 2024 and December 31, 2023. There will be future remeasurements as the County completes several construction milestones throughout the term of the extended lease. The most significant of which will be for Terminal G, which will include a remeasurement of the operating lease in 2027 or later, when the County satisfies substantial completion, as the minimum lease payments will increase to approximately $55 million per year, with expected 3% annual increases thereafter.

For some of our real estate leases and berthing agreements, we do have the option to extend our current lease term. For those lease agreements with renewal options, the renewal periods for real estate leases primarily range from one to 10 years and the renewal periods for berthing agreements primarily range from one to 20 years. Generally, we do not include renewal options as a component of our present value calculation for berthing agreements. However, for certain real estate leases, we include them.

As most of our leases do not provide an implicit rate, we use our incremental borrowing rate in determining the present value of lease payments. We estimate our incremental borrowing rates based on Term SOFR and U.S. Treasury note rates corresponding to lease terms increased by the Company’s credit risk spread and reduced by the estimated impact of collateral. In addition, we have lease agreements with lease and non-lease components, which are generally accounted for separately. However, for berthing agreements, we account for the lease and non-lease components as a single lease component.

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Finance Leases

Our finance leases primarily relate to buildings and surrounding land located at our Miami headquarters and our lease for Silver Dawn. Finance leases are included within Property and Equipment, net and Long-term debt with the current portion of the liability included within Current portion of long-term debt in our consolidated balance sheets as of March 31, 2024 and December 31, 2023.

The Company's master lease agreement (“Master Lease”) with Miami-Dade County related to the buildings and surrounding land located at our Miami headquarters is classified as a finance lease in accordance with ASC 842, Leases. The Master Lease includes two five-year options to extend the lease, which we are reasonably certain to exercise. In November 2023, we executed a modification to the Master Lease agreement to extend its expiration from 2076 to 2077 after coming to an agreement with Miami-Dade County on the financing plans to finalize the development of the buildings and land. The modification of the Master Lease did not change the classification of the lease. The total aggregate amount of the finance lease liabilities recorded for this Master Lease was $105 million and $104 million as of March 31, 2024 and December 31, 2023, respectively. The development of the new campus buildings are expected to be completed in 2026, and the lease components will be recorded within our consolidated financial statements upon commencement.

Silversea Cruises operates Silver Dawn under a sale-leaseback agreement with a bargain purchase option at the end of the 15-year lease term. Due to the bargain purchase option at the end of the lease term in 2036, whereby Silversea Cruises is reasonably certain of obtaining ownership of the ship, Silver Dawn is accounted for as a finance lease. The lease includes other purchase options beginning in year three, none of which are reasonably certain of being exercised at this time. The aggregate amount of finance lease liabilities recorded for this ship was $241 million and $246 million as of March 31, 2024 and December 31, 2023, respectively. The lease payments on the Silver Dawn are subject to adjustments based on the Term SOFR rate.

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

	Consolidated Statement of Comprehensive Income (Loss) Classification	Quarter Ended March 31, 2024		Quarter Ended March 31, 2023
Lease costs:
Operating lease costs	Commission, transportation and other	$	71	$	55
Operating lease costs	Other operating expenses	4		6
Operating lease costs	Marketing, selling and administrative expenses	4		5
Financial lease costs:
Amortization of right-of-use-assets	Depreciation and amortization expenses	3		6
Interest on lease liabilities	Interest expense, net of interest capitalized	8		8
Total lease costs		$	90	$	80

In addition, certain of our berthing agreements include variable lease costs based on the number of passengers berthed. During the quarters ended March 31, 2024, and 2023 we had $51 million and $38 million of variable lease costs recorded within Commission, transportation and other in our consolidated statement of comprehensive income (loss), respectively. These variable lease costs are included within the balances presented above.

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

	As of March 31, 2024		As of December 31, 2023
Weighted average of the remaining lease term in years
Operating leases	20.02		19.43
Finance leases	24.06		23.92
Weighted average discount rate
Operating leases	7.55	%	7.53	%
Finance leases	5.84	%	5.83	%

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

	Three Months Ended March 31, 2024		Three Months Ended March 31, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	99	$	36
Operating cash flows from finance leases	8		8
Financing cash flows from finance leases	$	6	$	14

As of March 31, 2024, maturities related to lease liabilities were as follows (in millions):

Year	Operating Leases		Finance Leases
Remainder of 2024	$	84	$	35
2025	101		45
2026	91		39
2027	72		38
2028	72		37
Thereafter	1,062		684
Total lease payments	1,482		878
Less: Interest	(816)		(515)
Present value of lease liabilities	$	666	$	363

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Note 8. Commitments and Contingencies

Ship Purchase Obligations

Our future capital commitments consist primarily of new ship orders. As of March 31, 2024, the dates that the ships on order by our Global and Partner Brands are expected to be delivered, subject to change in the event of construction delays, and their approximate berths are as follows:

Ship	Shipyard	Expected delivery	Approximate Berths
Royal Caribbean International —
Oasis-class:
Utopia of the Seas	Chantiers de l'Atlantique	2nd Quarter 2024	5,700
Icon-class:
Star of the Seas	Meyer Turku Oy	3rd Quarter 2025	5,600
Unnamed	Meyer Turku Oy	2nd Quarter 2026	5,600
Celebrity Cruises —
Edge-class:
Celebrity Xcel	Chantiers de l'Atlantique	4th Quarter 2025	3,250
Silversea Cruises —
Evolution-class:
Silver Ray	Meyer Werft	2nd Quarter 2024	730
TUI Cruises (50% joint venture) —
Mein Schiff 7	Meyer Turku Oy	2nd Quarter 2024	2,900
Mein Schiff Relax	Fincantieri	4th Quarter 2024	4,100
Unnamed	Fincantieri	2nd Quarter 2026	4,100
Total Berths			31,980

In addition, in February 2024, we entered into an agreement with Chantiers de l’Atlantique to build an additional Oasis class ship for delivery in 2028, which is contingent upon completion of certain conditions precedent including financing.

As of March 31, 2024, the aggregate cost of our ships on order presented in the table above, not including any ships on order by our Partner Brands, was approximately $8.1 billion, of which we had deposited $748 million as of such date. Refer to Note 11. Fair Value Measurements and Derivative Instruments for further information.

Litigation

As previously reported, a lawsuit was filed against us in August 2019 in the U.S. District Court for the Southern District of Florida (the "Court") under Title III of the Cuban Liberty and Democratic Solidarity Act, also known as the Helms-Burton Act. The complaint filed by Havana Docks Corporation ("Havana Docks Action") alleges it holds an interest in the Havana Cruise Port Terminal, was expropriated by the Cuban government. The complaint further alleges that we trafficked in the terminal by embarking and disembarking passengers at these facilities. The plaintiff seeks all available statutory remedies, including the value of the expropriated property, plus interest, treble damages, attorneys’ fees and costs.

The Court entered final judgment in December 2022 in favor of the plaintiff and awarded damages and attorneys' fees to the plaintiff in the aggregate amount of approximately $112 million. We have appealed the judgment to the United States Court of Appeals for the 11th Circuit. We believe we have meritorious grounds for and intend to vigorously pursue our appeal. During the fourth quarter of 2022, we recorded a charge of approximately $130.0 million to Other (expense) income within our consolidated statements of comprehensive income (loss) related to the Havana Docks Action, including post-judgment interest and related legal defense costs and bonding fees.

In addition, we are routinely involved in claims typical within the cruise vacation industry. The majority of these claims are covered by insurance. We believe the outcome of such claims, net of expected insurance recoveries, will not have a material adverse impact on our financial condition or results of operations and cash flows.

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Other

Some of the contracts that we enter into include indemnification provisions that obligate us to make payments to the counterparty if certain events occur. These contingencies generally relate to changes in taxes, increased lender capital costs and other similar costs. The indemnification clauses are often standard contractual terms and are entered into in the normal course of business. There are no stated or notional amounts included in the indemnification clauses and we are not able to estimate the maximum potential amount of future payments, if any, under these indemnification clauses. We have not been required to make any payments under such indemnification clauses in the past and, under current circumstances, we do not believe an indemnification in any material amount is probable.

If any person acquires ownership of more than 50% of our common stock or, subject to certain exceptions, during any 24-month period, a majority of our board of directors is no longer comprised of individuals who were members of our board of directors on the first day of such period, we may be obligated to prepay indebtedness outstanding under our credit facilities, which we may be unable to replace on similar terms. Our public debt securities also contain change of control provisions that would be triggered by a third-party acquisition of greater than 50% of our common stock coupled with a ratings downgrade. If this were to occur, it would have an adverse impact on our liquidity and operations.

Note 9. Shareholders' Equity

Dividends

We did not declare any dividends during the quarters ended March 31, 2024 and 2023. We were previously restricted under certain of our credit facilities from paying dividends while waivers to the financial covenants within such facilities were in effect. While the waivers have now expired, in the event we declare a dividend, we will need to repay the principal amounts deferred under our export credit facilities.

Note 10. Changes in Accumulated Other Comprehensive Loss

The following table presents the changes in accumulated other comprehensive loss by component for the quarters ended March 31, 2024 and 2023 (in millions):

	Accumulated Other Comprehensive Loss for the Three Months Ended March 31, 2024								Accumulated Other Comprehensive Loss for the Three Months Ended March 31, 2023
	Changes related to cash flow derivative hedges		Changes in defined benefit plans		Foreign currency translation adjustments		Accumulated other comprehensive loss		Changes related to cash flow derivative hedges		Changes in defined benefit plans		Foreign currency translation adjustments		Accumulated other comprehensive loss
Accumulated comprehensive loss at beginning of the year	$	(666)	$	(2)	$	(6)	$	(674)	$	(638)	$	(8)	$	3	$	(643)
Other comprehensive income (loss) before reclassifications	56		9		4		69		(30)		4		(7)		(33)
Amounts reclassified from accumulated other comprehensive loss	(12)		—		—		(12)		(2)		—		—		(2)
Net current-period other comprehensive income (loss)	44		9		4		57		(32)		4		(7)		(35)
Ending balance	$	(622)	$	7	$	(2)	$	(617)	$	(670)	$	(4)	$	(4)	$	(678)

The following table presents reclassifications out of accumulated other comprehensive loss for the quarters ended March 31, 2024 and 2023 (in millions):

	Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income
Details About Accumulated Other Comprehensive Loss Components	Quarter Ended March 31, 2024		Quarter Ended March 31, 2023		Affected Line Item in Statements of Comprehensive Income (Loss)
Gain (loss) on cash flow derivative hedges:
Interest rate swaps	$	14	$	10	Interest expense, net of interest capitalized
Foreign currency forward contracts	(6)		(3)		Depreciation and amortization expenses
Foreign currency forward contracts	—		(1)		Other (expense) income
Fuel swaps	—		—		Other (expense) income
Fuel swaps	4		(4)		Fuel
	$	12	$	2

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Note 11. Fair Value Measurements and Derivative Instruments 

Fair Value Measurements

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

	Fair Value Measurements at March 31, 2024										Fair Value Measurements at December 31, 2023
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)	$	437	$	437	$	437	$	—	$	—	$	497	$	497	$	497	$	—	$	—
Total Assets	$	437	$	437	$	437	$	—	$	—	$	497	$	497	$	497	$	—	$	—
Liabilities:
Long-term debt (including current portion of debt)(5)	$	20,156	$	22,768	$	—	$	22,768	$	—	$	21,083	$	23,700	$	—	$	23,700	$	—
Total Liabilities	$	20,156	$	22,768	$	—	$	22,768	$	—	$	21,083	$	23,700	$	—	$	23,700	$	—

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

(2) Inputs other than quoted prices included within Level 1 that are observable for the liability, either directly or indirectly. For unsecured revolving credit facilities and unsecured term loans, fair value is determined utilizing the income valuation approach. This valuation model takes into account the contract terms of our debt such as the debt maturity and the interest rate on the debt. The valuation model also takes into account the creditworthiness of the Company. We valued our senior notes and convertible notes using a quoted market price, which is considered a Level 2 input as it is observable in the market; however, these instruments have a limited trading volume and as such this fair value estimate is not necessarily indicative of the value at which the instruments could be retired or transferred.

(3) Inputs that are unobservable. The Company did not use any Level 3 inputs as of March 31, 2024 and December 31, 2023.

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

(5) Consists of unsecured revolving credit facilities, senior notes, term loans and convertible notes. These amounts do not include our finance lease obligations.

Other Financial Instruments 

The carrying amounts of accounts receivable, accounts payable, accrued interest and accrued expenses approximate fair value as of March 31, 2024 and December 31, 2023.

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

	Fair Value Measurements at March 31, 2024								Fair Value Measurements at December 31, 2023
Description	Total		Level 1(1)		Level 2(2)		Level 3(3)		Total		Level 1(1)		Level 2(2)		Level 3(3)
Assets:
Derivative financial instruments(4)	$	173	$	—	$	173	$	—	$	144	$	—	$	144	$	—
Total Assets	$	173	$	—	$	173	$	—	$	144	$	—	$	144	$	—
Liabilities:
Derivative financial instruments(4)	$	58	$	—	$	58	$	—	$	66	$	—	$	66	$	—
Total Liabilities	$	58	$	—	$	58	$	—	$	66	$	—	$	66	$	—

(1)Inputs based on quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access. Valuation of these items does not entail a significant amount of judgment. No Level 1 inputs were used in fair value measurements of other financial instruments as of March 31, 2024 and December 31, 2023.

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

(3)Inputs that are unobservable. No Level 3 inputs were used in fair value measurements of other financial instruments as of March 31, 2024 and December 31, 2023.

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

The reported fair values are based on a variety of factors and assumptions. Accordingly, the fair values may not represent actual values of the financial instruments that could have been realized as of March 31, 2024 or December 31, 2023, or that will be realized in the future, and do not include expenses that could be incurred in an actual sale or settlement.

Nonfinancial Instruments Recorded at Fair Value on a Nonrecurring Basis

Nonfinancial instruments include items such as goodwill, indefinite-lived intangible assets, long-lived assets, right-of-use assets and equity method investments that are measured at fair value on a nonrecurring basis when events and circumstances indicate the carrying value is not recoverable. There were no material nonfinancial instruments recorded at fair value as of March 31, 2024.

Master Netting Agreements

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

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

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

	Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements
	As of March 31, 2024								As of December 31, 2023
	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 Liabilities		Cash Collateral Received		Net Amount of Derivative Assets
Derivatives subject to master netting agreements	$	173	$	(48)	$	—	$	125	$	144	$	(28)	$	—	$	116
Total	$	173	$	(48)	$	—	$	125	$	144	$	(28)	$	—	$	116
	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 Assets		Cash Collateral Pledged		Net Amount of Derivative Liabilities
Derivatives subject to master netting agreements	$	(58)	$	48	$	—	$	(10)	$	(66)	$	28	$	—	$	(38)
Total	$	(58)	$	48	$	—	$	(10)	$	(66)	$	28	$	—	$	(38)

Concentrations of Credit Risk

We monitor our credit risk associated with financial and other institutions with which we conduct significant business, and to minimize these risks, we select counterparties with credit risks acceptable to us and we seek to limit our exposure to an individual counterparty. Credit risk, including, but not limited to, counterparty nonperformance under derivative instruments, our credit facilities and new ship progress payment guarantees, is not considered significant, as we primarily conduct business with large, well-established financial institutions, insurance companies and export credit agencies many of which we have long-term relationships with and which have credit risks acceptable to us or where the credit risk is spread out among a large number of counterparties. As of March 31, 2024, we had counterparty credit risk exposure under our derivative instruments of $149 million, which was limited to the cost of replacing the contracts in the event of non-performance by the counterparties to the contracts, the majority of which are currently our lending banks. We do not anticipate nonperformance by any of our significant counterparties. In addition, we have established guidelines we follow regarding credit ratings and instrument maturities to maintain safety and liquidity. We do not normally require collateral or other security to support credit relationships; however, in certain circumstances this option is available to us.

Derivative Instruments

We are exposed to market risk attributable to changes in interest rates, foreign currency exchange rates and fuel prices. We try to mitigate these risks through a combination of our normal operating and financing activities and through the use of derivative financial instruments pursuant to our hedging practices and policies. The financial impact of these hedging instruments is primarily offset by corresponding changes in the underlying exposures being hedged. We achieve this by closely matching the notional amount, term and conditions of the derivative instrument with the underlying risk being hedged. Although certain of our derivative financial instruments do not qualify or are not accounted for under hedge accounting, our objective is not to hold or issue derivative financial instruments for trading or other speculative purposes. 

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

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

Changes in the fair value of derivatives that are designated as fair value hedges are offset against changes in the fair value of the underlying hedged assets, liabilities or firm commitments. Gains and losses on derivatives that are designated as cash flow hedges are recorded as a component of Accumulated other comprehensive loss until the underlying hedged transactions are recognized in earnings. The foreign currency transaction gain or loss of our non-derivative financial instruments and the changes in the fair value of derivatives designated as hedges of our net investment in foreign operations and investments are recognized as a component of Accumulated other comprehensive loss along with the associated foreign currency translation adjustment of the foreign operation or investment. In certain hedges of our net investment in foreign operations and investments, we exclude forward points from the assessment of hedge effectiveness and we amortize the related amounts directly into earnings.

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

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

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

Interest Rate Risk

Our exposure to market risk for changes in interest rates primarily relates to our debt obligations, including future interest payments. At March 31, 2024 and December 31, 2023, approximately 86.3% and 83.2%, respectively, of our debt was effectively fixed-rate debt, which is net of our interest rate swap agreements. We use interest rate swap agreements to modify our exposure to interest rate movements and to manage our interest expense.

We use interest rate swap agreements that effectively convert a portion of our floating-rate debt to a fixed-rate basis to manage the market risk of increasing interest rates. At March 31, 2024 and December 31, 2023, we maintained interest rate swap agreements on the following floating-rate debt instruments:

Debt Instrument	Swap Notional as of March 31, 2024 (in millions)		Maturity	Debt Floating Rate		All-in Fixed Rate as of March 31, 2024
Celebrity Reflection term loan	$	55	October 2024	Term SOFR plus	0.40%	2.88%
Quantum of the Seas term loan	184		October 2026	Term SOFR plus	1.30%	3.78%
Anthem of the Seas term loan	211		April 2027	Term SOFR plus	1.30%	3.90%
Ovation of the Seas term loan	311		April 2028	Term SOFR plus	1.00%	3.20%
Harmony of the Seas term loan (1)	281		May 2028	EURIBOR plus	1.15%	2.26%
Odyssey of the Seas term loan (2)	345		October 2032	Term SOFR plus	0.96%	3.28%
Odyssey of the Seas term loan (2)	173		October 2032	Term SOFR plus	0.96%	2.91%
	$	1,560

(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 March 31, 2024.

(2)Interest rate swap agreements hedging the term loan of Odyssey of the Seas include Term SOFR zero-floors, Term SOFR with no floors, and Overnight SOFR.

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

The notional amount of interest rate swap agreements related to outstanding debt as of March 31, 2024 and December 31, 2023 was $1.6 billion.

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 March 31, 2024, the aggregate cost of our ships on order was $8.1 billion, of which we had deposited $748 million as of such date. These amounts do not include any ships placed on order that are contingent upon completion of conditions precedent and/or financing and any ships on order by our Partner Brands. Refer to Note 8. Commitments and Contingencies, for further information on our ships on order. At March 31, 2024 and December 31, 2023, approximately 44.1% and 43.5%, respectively, of the aggregate cost of the ships under construction was exposed to fluctuations in the Euro exchange rate. Our foreign currency forward contract agreements are accounted for as cash flow or net investment hedges depending on the designation of the related hedge.

On a regular basis, we enter into foreign currency forward contracts and, from time to time, we utilize cross-currency swap agreements and collar options to minimize the volatility resulting from the remeasurement of net monetary assets and liabilities denominated in a currency other than our functional currency or the functional currencies of our foreign subsidiaries. During the first quarter of 2024 and 2023 the average notional amount of foreign currency forward contracts was approximately $1.1 billion and $1.2 billion, respectively. These instruments are not designated as hedging instruments. For the quarters ended March 31, 2024 and 2023, changes in the fair value of the foreign currency forward contracts resulted in (losses) gain of $(35) million and $4 million, respectively, which offset gains (losses) arising from the remeasurement of monetary assets and liabilities denominated in foreign currencies in those same periods of $30 million and $(11) million, respectively. These amounts were recognized in earnings within Other (expense) income in our consolidated statements of comprehensive income (loss).

The notional amount of outstanding foreign exchange contracts, excluding the forward contracts entered into to minimize remeasurement volatility, as of March 31, 2024 and December 31, 2023 was $2.9 billion.

Non-Derivative Instruments

We consider our investments in our foreign operations to be denominated in relatively stable currencies and to be of a long-term nature. We address the exposure of our investments in foreign operations by denominating a portion of our debt in our subsidiaries’ and investments’ functional currencies and designating it as a hedge of these subsidiaries and investments. We had designated debt as a hedge of our net investments primarily in TUI Cruises of €659 million, or approximately $712 million, as of March 31, 2024. As of December 31, 2023, we had designated debt as a hedge of our net investments primarily in TUI Cruises of €648 million, or approximately $716 million.

Fuel Price Risk

Our exposure to market risk for changes in fuel prices relates primarily to the consumption of fuel on our ships. We use fuel swap agreements to mitigate the financial impact of fluctuations in fuel prices.

Our fuel swap agreements are generally accounted for as cash flow hedges. In the case that our hedged forecasted fuel consumption is not probable of occurring, hedge accounting will be discontinued and the related accumulated other comprehensive gain or loss will be reclassified to Other (expense) income immediately. For hedged forecasted fuel consumption that remains possible of occurring, hedge accounting will be discontinued and the related accumulated other comprehensive gain or loss will remain in accumulated other comprehensive gain or loss until the underlying hedged transactions are recognized in earnings or the related hedged forecasted fuel consumption is deemed probable of not occurring.

Changes in the fair value of fuel swaps for which cash flow hedge accounting was discontinued are currently recognized in Other (expense) income for each reporting period through the maturity dates of the fuel swaps. For the quarters ended March 31, 2024 and March 31, 2023, we did not discontinue cash flow hedge accounting on any of our fuel swap agreements.

At March 31, 2024, we have hedged the variability in future cash flows for certain forecasted fuel transactions occurring through 2026. As of March 31, 2024 and December 31, 2023, we had the following outstanding fuel swap agreements:

	Fuel Swap Agreements
	As of March 31, 2024	As of December 31, 2023
Designated as hedges:	(metric tons)
2024	789,801	1,054,501
2025	773,700	685,400
2026	252,700	44,200

	Fuel Swap Agreements
	As of March 31, 2024		As of December 31, 2023
Designated hedges as a % of projected fuel purchases:	(% hedged)
2024	62	%	61	%
2025	45	%	39	%
2026	15	%	3	%

As of March 31, 2024, there was $39 million of estimated unrealized net gain associated with our cash flow hedges pertaining to fuel swap agreements that is expected to be reclassified to earnings from Accumulated other comprehensive loss within the next twelve months when compared to $21 million of estimated unrealized net loss at December 31, 2023. Reclassification is expected to occur as the result of fuel consumption associated with our hedged forecasted fuel purchases.

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

	Fair Value of Derivative Instruments
	Asset Derivatives					Liability Derivatives
	Balance Sheet Location	As of March 31, 2024		As of December 31, 2023		Balance Sheet Location	As of March 31, 2024		As of December 31, 2023
		Fair Value		Fair Value			Fair Value		Fair Value
Derivatives designated as hedging instruments under ASC 815-20(1)
Interest rate-swaps	Derivative financial instruments	$	—	1		Derivative financial instruments	$	—	$	—
Interest rate swaps	Other assets	83		75		Other long-term liabilities	—		—
Foreign currency forward contracts	Derivative financial instruments	10		20		Derivative financial instruments	44		9
Foreign currency forward contracts	Other assets	22		44		Other long-term liabilities	9		4
Fuel swaps	Derivative financial instruments	42		4		Derivative financial instruments	3		26
Fuel swaps	Other assets	16		—		Other long-term liabilities	2		27
Total derivatives designated as hedging instruments under 815-20		$	173	$	144		$	58	$	66

(1)Subtopic 815-20 “Hedging-General” under ASC 815.

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

		Carrying Value
Non-derivative instrument designated as hedging instrument under ASC 815-20	Balance Sheet Location	As of March 31, 2024		As of December 31, 2023
Foreign currency debt	Current portion of long-term debt	$	63	$	65
Foreign currency debt	Long-term debt	649		523
		$	712	$	588

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

Derivatives under ASC 815-20 Cash Flow Hedging Relationships	Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Loss on Derivatives
	Quarter Ended March 31, 2024		Quarter Ended March 31, 2023
Interest rate swaps	$	21	$	(11)
Foreign currency forward contracts	(71)		21
Fuel swaps	106		(41)
	$	56	$	(31)

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

	Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss)
Non-derivative instruments under ASC 815-20 Net Investment Hedging Relationships	Quarter Ended March 31, 2024		Quarter Ended March 31, 2023
Foreign Currency Debt	$	16	$	(9)
	$	16	$	(9)

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

		Amount of (Loss) Gain Recognized in Income on Derivatives
Derivatives Not Designated as Hedging Instruments under ASC 815-20	Location of Gain (Loss) Recognized in Income on Derivatives	Quarter Ended March 31, 2024		Quarter Ended March 31, 2023
Foreign currency forward contracts	Other (expense) income	$	(35)	$	4
		$	(35)	$	4

Credit Related Contingent Features

Our current interest rate derivative instruments require us to post collateral if our Standard & Poor’s and Moody’s credit ratings fall below specified levels. Specifically, under most of our agreements, if on the fifth anniversary of executing a derivative instrument, or on any succeeding fifth-year anniversary, our credit ratings for our senior unsecured debt is rated below BBB- by Standard & Poor’s and Baa3 by Moody’s, then the counterparty will periodically have the right to demand that we post collateral in an amount equal to the difference

between (i) the net market value of all derivative transactions with such counterparty that have reached their fifth year anniversary, to the extent negative, and (ii) the applicable minimum call amount.

The amount of collateral required to be posted will change as, and to the extent, our net liability position increases or decreases by more than the applicable minimum call amount. If our credit rating for our senior unsecured debt is subsequently equal to or above BBB- by Standard & Poor’s or Baa3 by Moody’s, then any collateral posted at such time will be released to us and we will no longer be required to post collateral unless we meet the collateral trigger requirement, generally, at the next fifth-year anniversary.

As of March 31, 2024, our senior unsecured debt credit rating was BB+ by Standard & Poor's and Ba2 by Moody's. As of March 31, 2024, five of our ship debt interest rate derivative hedges had reached their fifth-year anniversary; however, the net market value for these derivative hedges were in a net asset position, and accordingly, we were not required to post any collateral as of such date.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 

Cautionary Note Concerning Forward-Looking Statements

The discussion under this caption "Management's Discussion and Analysis of Financial Condition and Results of Operations" and elsewhere in this Quarterly Report on Form 10-Q includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including statements regarding our expectations for future periods, business and industry prospects or future results of operations or financial position, made in this Quarterly Report on Form 10-Q are forward-looking. Words such as "anticipate," "believe," "considering," "could," "driving," "estimate," "expect," "goal," "intend," "may," "plan," "project," "seek," "should," "will," "would," and similar expressions are intended to further identify any of these forward-looking statements. Forward-looking statements reflect management's current expectations, but they are based on judgments and are inherently uncertain. Furthermore, they are subject to risks, uncertainties and other factors that could cause our actual results, performance or achievements to differ materially from the future results, performance or achievements expressed or implied in those forward-looking statements. Examples of these risks, uncertainties and other factors include, but are not limited to, those discussed in this Quarterly Report on Form 10-Q and, in particular, the risks discussed under the caption "Risk Factors" in Part II, Item 1A herein.

All forward-looking statements made in this Quarterly Report on Form 10-Q speak only as of the date of this filing. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Overview

The discussion and analysis of our financial condition and results of operations is organized to present the following:

•a review of our financial presentation, including discussion of certain operational and financial metrics we utilize to assist us in managing our business;

•a discussion of our results of operations for the quarter ended March 31, 2024, compared to the same period in 2023; and

•a discussion of our liquidity and capital resources, including our future capital and material cash requirements and potential funding sources. 

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Critical Accounting Policies and Estimates

For a discussion of our critical accounting policies and estimates, refer to Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations within our Annual Report on Form 10-K for the year ended December 31, 2023.

Seasonality

Our revenues are seasonal based on demand for cruises. Demand has historically been strongest for cruises during the Northern Hemisphere’s summer months and holidays. In order to mitigate the impact of the winter weather in the Northern Hemisphere and to capitalize on the summer season in the Southern Hemisphere, our brands have historically focused on deployment to the Caribbean, Asia and Australia during that period.

Financial Presentation

Description of Certain Line Items

Revenues

Our revenues are comprised of the following:

•Passenger ticket revenues, which consist of revenue recognized from the sale of passenger tickets and the sale of air transportation to and from our ships; and

•Onboard and other revenues, which consist primarily of revenues from the sale of goods and/or services onboard our ships not included in passenger ticket prices, casino operations, cancellation fees, sales of vacation protection insurance, pre- and post-cruise tours and fees for operating certain port facilities. Onboard and other revenues also include revenues we receive from independent third-party concessionaires that pay us a percentage of their revenues in exchange for the right to provide selected goods and/or services onboard our ships, as well as revenues received for procurement and management related services we perform on behalf of our unconsolidated affiliates. 

Cruise Operating Expenses 

Our cruise operating expenses are comprised of the following:

•Commissions, transportation and other expenses, which consist of those costs directly associated with passenger ticket revenues, including travel advisor commissions, air and other transportation expenses, port costs that vary with passenger head counts and related credit card fees;

•Onboard and other expenses, which consist of the direct costs associated with onboard and other revenues, including the costs of products sold onboard our ships, vacation protection insurance premiums, costs associated with pre- and post-cruise tours and related credit card fees, as well as the minimal costs associated with concession revenues, as the costs are mostly incurred by third-party concessionaires, and costs incurred for the procurement and management related services we perform on behalf of our unconsolidated affiliates;

•Payroll and related expenses, which consist of costs for shipboard personnel (costs associated with our shoreside personnel are included in Marketing, selling and administrative expenses);

•Food expenses, which include food costs for both guests and crew;

•Fuel expenses, which include fuel and related delivery, storage and emission consumable costs and the financial impact of fuel swap agreements; and

•Other operating expenses, which consist primarily of operating costs such as repairs and maintenance, port costs that do not vary with passenger head counts, vessel related insurance, entertainment and gains and/or losses related to the sale of our ships, if any.

We do not allocate payroll and related expenses, food expenses, fuel expenses or other operating expenses to the expense categories attributable to passenger ticket revenues or onboard and other revenues since they are incurred to provide the total cruise vacation experience.

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Selected Operational and Financial Metrics

We utilize a variety of operational and financial metrics which are defined below to evaluate our performance and financial condition. As discussed in more detail herein, certain of these metrics are non-GAAP financial measures. These non-GAAP financial measures are provided along with the related GAAP financial measures as we believe they provide useful information to investors as a supplement to our consolidated financial statements, which are prepared and presented in accordance with GAAP. The presentation of non-GAAP financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

Adjusted EBITDA is a non-GAAP measure that represents EBITDA (as defined below) excluding certain items that we believe adjusting for is meaningful when assessing our profitability on a comparative basis. For the periods presented, these items included (i) other expense; (ii) gain on sale of controlling interest; and (iii) impairment and credit losses (recoveries). A reconciliation of Net Income (Loss) attributable to Royal Caribbean Cruises Ltd. to Adjusted EBITDA is provided below under Results of Operations.

Adjusted Earnings (Loss) per Share ("Adjusted EPS") is a non-GAAP measure that represents Adjusted Net Income (Loss) attributable to Royal Caribbean Cruises Ltd. (as defined below) divided by weighted average shares outstanding or by diluted weighted average shares outstanding, as applicable. We believe that this non-GAAP measure is meaningful when assessing our performance on a comparative basis.

Adjusted Net Income (Loss) attributable to Royal Caribbean Cruises Ltd. is a non-GAAP measure that represents Net Income (Loss) attributable to Royal Caribbean Cruises Ltd. excluding certain items that we believe adjusting for is meaningful when assessing our performance on a comparative basis. For the periods presented, these items included (i) loss on extinguishment of debt; (ii) the amortization of the Silversea Cruises intangible assets resulting from the Silversea Cruises acquisition; (iii) gain on sale of controlling interest; (iv) tax on the sale of PortMiami noncontrolling interest; (v) Silver Whisper deferred tax liability release; and (vi) impairment and credit losses (recoveries). A reconciliation of Net Income (Loss) attributable to Royal Caribbean Cruises Ltd. to Adjusted Net Income (Loss) attributable to Royal Caribbean Cruises Ltd. is provided below under Results of Operations.

Available Passenger Cruise Days (“APCD”) is our measurement of capacity and represents double occupancy per cabin multiplied by the number of cruise days for the period, which excludes canceled cruise days and cabins not available for sale. We use this measure to perform capacity and rate analysis to identify our main non-capacity drivers that cause our cruise revenue and expenses to vary.

EBITDA is a non-GAAP measure that represents Net Income (Loss) attributable to Royal Caribbean Cruises Ltd. excluding (i) interest income; (ii) interest expense, net of interest capitalized; (iii) depreciation and amortization expenses; and (iv) income tax benefit or expense. We believe that this non-GAAP measure is meaningful when assessing our operating performance on a comparative basis. A reconciliation of Net Income (Loss) attributable to Royal Caribbean Cruises Ltd. to EBITDA is provided below under Results of Operations.

Gross Cruise Costs represent the sum of total cruise operating expenses plus marketing, selling and administrative expenses.

Net Cruise Costs and Net Cruise Costs Excluding Fuel are non-GAAP measures that represent Gross Cruise Costs excluding commissions, transportation and other expenses, and onboard and other expenses and, in the case of Net Cruise Costs Excluding Fuel, fuel expenses (each of which is described above under the Description of Certain Line Items heading). In measuring our ability to control costs in a manner that positively impacts net income, we believe changes in Net Cruise Costs and Net Cruise Costs Excluding Fuel to be the most relevant indicators of our performance. A reconciliation of Gross Cruise Costs to Net Cruise Costs and Net Cruise Costs Excluding Fuel is provided below under Results of Operations. For the periods presented, Net Cruise Costs and Net Cruise Costs Excluding Fuel excludes (i) the gain on sale of controlling interest; and (ii) impairment and credit losses (recoveries).

Gross Margin Yield represent Gross Margin per APCD.

Adjusted Gross Margin represent Gross Margin, adjusted for payroll and related, food, fuel, other operating expenses, and depreciation and amortization. Gross Margin is calculated pursuant to GAAP as total revenues less total cruise operating expenses, and depreciation and amortization.

Net Yields represent Adjusted Gross Margin per APCD. We utilize Adjusted Gross Margin and Net Yields to manage our business on a day-to-day basis as we believe that they are the most relevant measures of our pricing performance because they reflect the cruise revenues earned by us net of our most significant variable costs, which are commissions, transportation and other expenses, and onboard and other expenses.

21

Occupancy ("Load Factor"), in accordance with cruise vacation industry practice, is calculated by dividing Passenger Cruise Days (as defined below) by APCD. A percentage in excess of 100% indicates that three or more passengers occupied some cabins.

Passenger Cruise Days represent the number of passengers carried for the period multiplied by the number of days of their respective cruises.

The use of certain significant non-GAAP measures, such as Net Yields, Net Cruise Costs and Net Cruise Costs Excluding Fuel, allows us to perform capacity and rate analysis to separate the impact of known capacity changes from other less predictable changes which affect our business. We believe these non-GAAP measures provide expanded insight to measure revenue and cost performance in addition to the standard GAAP based financial measures. There are no specific rules or regulations for determining non-GAAP measures, and as such, they may not be comparable to other companies within the industry.

We have not provided a quantitative reconciliation of projected non-GAAP financial measures to the most comparable GAAP financial measures because preparation of meaningful U.S. GAAP projections would require unreasonable effort. Due to significant uncertainty, we are unable to predict, without unreasonable effort, the future movement of foreign exchange rates, fuel prices and interest rates inclusive of our related hedging programs. In addition, we are unable to determine the future impact of non-core business related gains and losses which may result from strategic initiatives. These items are uncertain and could be material to our results of operations in accordance with U.S GAAP. Due to this uncertainty, we do not believe that reconciling information for such projected figures would be meaningful.

Results of Operations

Summary

Net Income attributable to Royal Caribbean Cruises Ltd. and Adjusted Net Income attributable to Royal Caribbean Cruises Ltd. for the first quarter of 2024 was $360 million and $478 million, compared to Net loss and Adjusted Net loss of $(48) million and $(59) million, respectively, for the first quarter of 2023.

Significant items for the quarter ended March 31, 2024 include:

•Total revenues, increased $842 million for the quarter ended March 31, 2024 as compared to the same period in 2023. The increase was primarily due to an increase in capacity and an increase in ticket prices and onboard spending in 2024, compared to same periods in 2023.

•Total cruise operating expenses, increased $263 million for the quarter ended March 31, 2024 as compared to the same period in 2023. The increase was primarily due to an increase in capacity and occupancy, and additional drydock days in 2024 compared to the same period in 2023.

•In March 2024, we issued $1.25 billion aggregate principal amount of 6.25% senior notes. Upon closing, we redeemed all of the outstanding $1.25 billion aggregate principal amount of 11.625% Senior Notes Due 2027.

For further information regarding the debt transactions discussed above, refer to Note 6. Debt to our consolidated financial statements.

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Operating results for the quarter ended March 31, 2024 compared to the same period in 2023 are shown in the following table (in millions, except per share data):

	Quarter Ended March 31,
	2024				2023
			% of Total Revenues				% of Total Revenues
Passenger ticket revenues	$	2,542	68.2	%	$	1,897	65.7	%
Onboard and other revenues	1,186		31.8	%	989		34.3	%
Total revenues	3,728		100.0	%	2,886		100.0	%
Cruise operating expenses:
Commissions, transportation and other	498		13.4	%	403		14.0	%
Onboard and other	193		5.2	%	159		5.5	%
Payroll and related	318		8.5	%	310		10.7	%
Food	221		5.9	%	199		6.9	%
Fuel	304		8.2	%	302		10.5	%
Other operating	522		14.0	%	420		14.6	%
Total cruise operating expenses	2,056		55.2	%	1,793		62.1	%
Marketing, selling and administrative expenses	535		14.4	%	461		16.0	%
Depreciation and amortization expenses	387		10.4	%	360		12.5	%
Operating Income	750		20.1	%	272		9.4	%
Other income (expense):
Interest income	5		0.1	%	15		0.5	%
Interest expense, net of interest capitalized	(424)		(11.4)	%	(360)		(12.5)	%
Equity investment income	41		1.1	%	20		0.7	%
Other (expense) income	(8)		(0.2)	%	5		0.2	%
	(386)		(10.4)	%	(320)		(11.1)	%
Net Income (Loss)	364		9.8	%	(48)		(1.7)	%
Less: Net Income attributable to noncontrolling interest	4		0.1	%	—		—	%
Net Income (Loss) attributable to Royal Caribbean Cruises Ltd.	$	360	9.7	%	$	(48)	(1.7)	%
Diluted Earnings (Loss) per Share	$	1.35			$	(0.19)

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Net Income (Loss) attributable to Royal Caribbean Cruises Ltd. and Adjusted Net Income (Loss) attributable to Royal Caribbean Cruises Ltd, were calculated as follows (in millions, except per share data):

	Quarter Ended March 31,
	2024		2023
Net Income (Loss) attributable to Royal Caribbean Cruises Ltd.	$	360	$	(48)
Loss on extinguishment of debt	116		13
Amortization of Silversea Cruises intangible assets resulting from the Silversea Cruises acquisition (1)	2		2
Gain on sale of controlling interest (2)	—		(3)
PortMiami tax on sale of noncontrolling interest (3)	—		10
Silver Whisper deferred tax liability release (4)	—		(26)
Impairment and credit losses (recoveries) (5)	—		(7)
Adjusted Net Income (Loss) attributable to Royal Caribbean Cruises Ltd.	$	478	$	(59)
Basic:
Earnings (Loss) per Share	$	1.40	$	(0.19)
Adjusted Earnings (Loss) per Share	$	1.86	$	(0.23)
Diluted:
Earnings (Loss) per Share (6)	$	1.35	$	(0.19)
Adjusted Earnings (Loss) per Share (6)	$	1.77	$	(0.23)
Weighted-Average Shares Outstanding:
Basic	257		255
Diluted	281		255

(1)Represents the amortization of the Silversea Cruises intangible assets resulting from the 2018 Silversea Cruises acquisition.

(2)For 2023, represents gain on sale of controlling interest in cruise terminal facilities in Italy. These amounts are included in Other operating within our consolidated statements of comprehensive income (loss).

(3)For 2023, represents tax on the PortMiami sale of noncontrolling interest. These amounts are included in Other (expense) income in our consolidated statements of comprehensive income (loss).

(4)For 2023, represents the release of the deferred tax liability subsequent to the execution of the bargain purchase option for the Silver Whisper. These amounts are included in Other (expense) income within our consolidated statements of comprehensive income (loss).

(5)For 2023, represents asset impairments and credit loss recoveries for notes receivables for which credit losses were previously recorded. These amounts are included in Other operating within our consolidated statements of comprehensive income (loss).

(6)Diluted EPS and Adjusted Diluted EPS includes the add-back of dilutive interest expense related to our convertible notes of $19 million for the three months ended March 31, 2024. Refer to Note 4. Earnings (Loss) Per Share to our consolidated financial statements for further information.

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Selected statistical information is shown in the following table:

	Quarter Ended March 31,
	2024		2023
Passengers Carried	2,054,382		1,806,270
Passenger Cruise Days	13,149,708		11,474,742
APCD	12,285,830		11,233,489
Occupancy	107.0	%	102.1	%

EBITDA and Adjusted EBITDA were calculated as follows (in millions):

	Quarter Ended March 31,
	2024		2023
Net Income (Loss) attributable to Royal Caribbean Cruises Ltd.	$	360	$	(48)
Interest income	(5)		(15)
Interest expense, net of interest capitalized	424		360
Depreciation and amortization expenses	387		360
Income tax expense (benefit) (1)	6		(8)
EBITDA	1,172		649
Other expense (2)	2		3
Gain on sale of controlling interest (3)	—		(3)
Impairment and credit losses (recoveries) (4)	—		(7)
Adjusted EBITDA	$	1,174	$	642

(1)    These amounts are included in Other (expense) income within our consolidated statements of comprehensive income (loss).

(2) Represents net non-operating expense. The amount excludes income tax expense (benefit), included in the EBITDA calculation above.

(3)    For 2023, represents gain on sale of controlling interest in cruise terminal facilities in Italy. These amounts are included in Other operating within our consolidated statements of comprehensive income (loss).

(4) For 2023, represents asset impairments and credit loss recoveries for notes receivables for which credit losses were previously recorded. These amounts are included in Other operating within our consolidated statements of comprehensive income (loss).

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Gross Margin Yields and Net Yields were calculated by dividing Gross Margin and Adjusted Gross Margin by APCD as follows (in millions, except APCD and Yields):

	Quarter Ended March 31,
	2024		2023
Total revenue	$	3,728	$	2,886
Less:
Cruise operating expenses	2,056		1,793
Depreciation and amortization expenses	387		360
Gross Margin	1,285		733
Add:
Payroll and related	318		310
Food	221		199
Fuel	304		302
Other operating	522		420
Depreciation and amortization expenses	387		360
Adjusted Gross Margin	$	3,037	$	2,324
APCD	12,285,830		11,233,489
Gross Margin Yields	$	104.59	$	65.25
Net Yields	$	247.20	$	206.88

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Gross Cruise Costs, Net Cruise Costs and Net Cruise Costs Excluding Fuel were calculated as follows (in millions, except APCD and costs per APCD):

	Quarter Ended March 31,
	2024		2023
Total cruise operating expenses	$	2,056	$	1,793
Marketing, selling and administrative expenses	535		461
Gross Cruise Costs	2,591		2,254
Less:
Commissions, transportation and other	498		403
Onboard and other	193		159
Net Cruise Costs Including Other Costs	1,900		1,692
Less:
Gain on sale of controlling interest (1)	—		(3)
Impairment and credit loss (recoveries) (2)	—		(7)
Net Cruise Costs	1,900		1,702
Less:
Fuel	304		302
Net Cruise Costs Excluding Fuel	$	1,596	$	1,400
APCD	12,285,830		11,233,489
Gross Cruise Costs per APCD	$	210.89	$	200.65
Net Cruise Costs per APCD	$	154.65	$	151.51
Net Cruise Costs Excluding Fuel per APCD	$	129.91	$	124.63

(1)    Represents gain on sale of controlling interest in cruise terminal facilities in Italy. These amounts are included in Other operating within our consolidated statements of comprehensive income (loss).

(2) Represents asset impairments and credit losses recoveries for notes receivables for which credit losses were previously recorded. These amounts are included in Other operating within our consolidated statements of comprehensive income (loss).

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Quarter Ended March 31, 2024 Compared to Quarter Ended March 31, 2023

In this section, references to 2024 refer to the quarter ended March 31, 2024 and references to 2023 refer to the quarter ended March 31, 2023.

Revenues

Total revenues for 2024 increased $842 million to $3.7 billion from $2.9 billion in 2023.

Passenger ticket revenues comprised 68.2% of our 2024 total revenues. Passenger ticket revenues for 2024 increased by $645 million, or 34.0% to $2.5 billion from $1.9 billion in 2023. The increase was primarily due to:

•an increase in ticket prices primarily driven by the improvement in our ticket price on a per passenger basis on existing hardware and the addition of Icon of the Seas, Celebrity Ascent, and Silver Nova, compared to the same period in 2023; and

•a 9.4% increase in capacity, primarily due to the additions of Icon of the Seas, Celebrity Ascent, and Silver Nova compared to the same period in 2023. Additionally, the increase is complemented by an increase in occupancy of 4.9%.

The remaining 31.8% of 2024 total revenues was comprised of Onboard and other revenues, which increased $197 million, or 19.9% to $1.2 billion in 2024 from $1.0 billion in 2023. The increase was primarily due to:

•a 9.4% increase in capacity noted above in 2024 compared to the same period in 2023.

•improved pricing in 2024 compared to the same period in 2023.

Cruise Operating Expenses

Total Cruise operating expenses for 2024 increased $263 million to $2.1 billion from $1.8 billion in 2023. The increase was primarily due to:

•a $102 million increase in Other operating primarily driven by the higher drydock and maintenance related expenses in 2024 compared to the same period in 2023; and

•a $95 million increase in Commissions, transportation and other expenses primarily driven by the increase in ticket prices.

Marketing, Selling and Administrative Expenses

Marketing, selling and administrative expenses for 2024 increased $74 million, or 16.1%, to $535 million from $461 million in 2023. The increase was primarily due to an increase in payroll and benefits expense primarily driven by an increase in headcount and higher stock price year over year related to our performance share awards, and higher spending on advertisement and media promotions.

Other Income (Expense)

Interest expense, net of interest capitalized for 2024 increased $(64) million, or 17.8%, to $(424) million from $(360) million in 2023. The increase was primarily due to loss on extinguishment of debt of $116 million compared to $13 million during the same period in 2023. The increase is partially offset due to debt repayment and lower cost refinancing transactions in 2023 and 2024.

Other Comprehensive Income (Loss)

Other comprehensive income was $57 million in 2024 compared to Other comprehensive loss of $(35) million for the same period in 2023. The increase of $92 million, or 262.9% was primarily due to a Gain on cash flow derivative hedges in 2024 of $44 million compared to a Loss on cash flow derivative hedges in 2023 of $(32) million, mostly as a result of a significant increase in fair value of our fuel swaps in 2024 compared to 2023.

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Future Application of Accounting Standards

Refer to Note 2. Summary of Significant Accounting Policies to our consolidated financial statements.

Liquidity and Capital Resources

Sources and Uses of Cash

Cash flow generated from operations provides us with a significant source of liquidity. Net cash provided by operating activities was $1.3 billion for the three months ended March 31, 2024, and 2023, respectively. Cash flows from operating activities continued to be primarily driven by the change in customer deposits of $729 million in 2024, compared to $1.1 billion during the same period in 2023.

Net cash used in investing activities was $296 million for the three months ended March 31, 2024, compared to $234 million for the same period in 2023. Cash flows used in investing activities were primarily attributable to capital expenditures of $242 million, and cash paid on the settlement of derivative financial instruments of $35 million during 2024, compared to $252 million, and $6 million respectively, during the same period in 2023.

Net cash used in financing activities was $1.1 billion for the three months ended March 31, 2024, compared to $1.8 billion for the same period in 2023. The change of $0.7 billion was primarily attributable to repayments of debt of $3.1 billion, offset by debt proceeds of $2.2 billion in 2024 compared to $2.7 billion repayments of debt in 2023, which were only offset by $0.7 billion of debt proceeds in 2023. The change was partially offset by proceeds received of $209 million for the sale of noncontrolling interest of PortMiami during the 2023, which did not recur in 2024.

Future Capital Commitments

Capital Expenditures

Our future capital commitments consist primarily of new ship orders. As of March 31, 2024, the dates that the ships on order by our Global and Partner Brands are expected to be delivered, subject to change in the event of construction delays, and their approximate berths are as follows:

Ship	Shipyard	Expected delivery	Approximate Berths
Royal Caribbean International —
Oasis-class:
Utopia of the Seas	Chantiers de l'Atlantique	2nd Quarter 2024	5,700
Icon-class:
Star of the Seas	Meyer Turku Oy	3rd Quarter 2025	5,600
Unnamed	Meyer Turku Oy	2nd Quarter 2026	5,600
Celebrity Cruises —
Edge-class:
Celebrity Xcel	Chantiers de l'Atlantique	4th Quarter 2025	3,250
Silversea Cruises —
Evolution-class:
Silver Ray	Meyer Werft	2nd Quarter 2024	730
TUI Cruises (50% joint venture) —
Mein Schiff 7	Meyer Turku Oy	2nd Quarter 2024	2,900
Mein Schiff Relax	Fincantieri	4th Quarter 2024	4,100
Unnamed	Fincantieri	2nd Quarter 2026	4,100
Total Berths			31,980

In addition, in February 2024, we entered into an agreement with Chantiers de l’Atlantique to build an additional Oasis class ship for delivery in 2028, which is contingent upon completion of certain conditions precedent including financing.

Our future capital commitments consist primarily of new ship orders. As of March 31, 2024, the aggregate expected cost of our ships on order presented in the table above, excluding any ships on order by our Partner Brands, was $8.1 billion, of which we had deposited $748 million. Approximately 44.1% of the aggregate cost was exposed to fluctuations in the Euro

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exchange rate at March 31, 2024. Refer to Note 8. Commitments and Contingencies and Note 11. Fair Value Measurements and Derivative Instruments to our consolidated financial statement.

As of March 31, 2024, we anticipate overall full year capital expenditures, based on our existing ships on order, will be approximately $3.4 billion for 2024. This amount does not include any ships on order by our Partner Brands.

Material Cash Requirements

As of March 31, 2024, our material cash requirements were as follows (in millions):

	Remainder of
	2024		2025		2026		2027		2028		Thereafter		Total
Operating Activities:
Interest on debt(1)	$	742	$	1,031	$	899	$	752	$	577	$	1,380	$	5,381
Other(2)	106		153		171		158		132		977		1,697
Investing Activities:
Ship purchase obligations(3)	1,923		2,161		1,274		—		—		—		5,358
Total	$	2,771	$	3,345	$	2,344	$	910	$	709	$	2,357	$	12,436

(1)  Long-term debt obligations mature at various dates through fiscal year 2037 and bear interest at fixed and variable rates. Interest on variable-rate debt is calculated based on forecasted debt balances, including the impact of interest rate swap agreements, using the applicable rate at March 31, 2024. Debt denominated in other currencies is calculated based on the applicable exchange rate at March 31, 2024.

(2) Amounts primarily represent future commitments with remaining terms in excess of one year to pay for our usage of certain port facilities, marine consumables, services and maintenance contracts.

(3)    Amounts are based on contractual installment and delivery dates for our ships on order. Included in these figures are $4.4 billion in final contractual installments, which have committed financing with sovereign guarantees covering 80% of the cost of the ships on order for our Global Brands. Amounts do not include potential obligations which remain subject to cancellation at our sole discretion or any agreements entered for ships on order that remain contingent upon completion of conditions precedent.

Refer to Note 6. Debt for maturities related to debt.

Refer to Note 7. Leases for maturities related to lease liabilities.

Refer to Funding Needs and Sources for discussion on the planned funding of the above material cash requirements.

As a normal part of our business, depending on market conditions, pricing and our overall growth strategy, we continuously consider opportunities to enter into contracts for the building of additional ships. We may also consider the sale of ships or the purchase of existing ships. We continuously consider potential acquisitions and strategic alliances. If any of these were to occur, they would be financed through the incurrence of additional indebtedness, the issuance of additional shares of equity securities or through cash flows from operations.

Off-Balance Sheet Arrangements

Refer to Note 5. Investments and Other Assets for ownership restrictions related to TUI Cruises.

Refer to Note 3. Revenue for credit card processor agreements for export credit agency guarantees.

Refer to Note 8. Commitments and Contingencies for other agreements.

As of March 31, 2024, other than the items referenced above, we are not party to any other off-balance sheet arrangements, including guarantee contracts, retained or contingent interest, certain derivative instruments and variable interest entities, that either have, or are reasonably likely to have, a current or future material effect on our financial position.

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Funding Needs and Sources

We have significant contractual obligations of which our debt service obligations and the capital expenditures associated with our ship purchases represent our largest funding needs. As of March 31, 2024, we had $5.9 billion of committed financing for our ships on order. As of March 31, 2024, our obligations due through March 31, 2025 primarily consisted of $1.6 billion related to debt maturities, $1.1 billion related to interest on debt and $2.0 billion related to progress payments on our ship orders and, based on the expected delivery date, the final installment payable due upon the delivery of Utopia of the Seas and Silver Ray. We have historically relied on a combination of cash flows provided by operations, draw-downs under our available credit facilities, the incurrence of additional debt and/or the refinancing of our existing debt and the issuance of additional shares of equity securities to fund our obligations.

As of March 31, 2024, we had liquidity of $3.7 billion, including cash and cash equivalents of $0.4 billion, and $3.3 billion of undrawn revolving credit facility capacity. We have agreed with certain of our lenders not to pay dividends or engage in stock repurchases unless we repay the remaining principal payments that were deferred under our export credit facilities in 2020 and 2021. Refer to Note 6. Debt and Note 9. Shareholders' Equity to our consolidated financial statements for further information.

If any person acquires ownership of more than 50% of our common stock or, subject to certain exceptions, during any 24-month period, a majority of our board of directors is no longer comprised of individuals who were members of our board of directors on the first day of such period, we may be obligated to prepay indebtedness outstanding under our credit facilities, which we may be unable to replace on similar terms. Our public debt securities also contain change of control provisions that would be triggered by a third-party acquisition of greater than 50% of our common stock coupled with a ratings downgrade. If this were to occur, it would have an adverse impact on our liquidity and operations.

Based on our assumptions and estimates and our financial condition, we believe that we have sufficient financial resources to fund our obligations for at least the next twelve months from the issuance of these financial statements. However, there is no assurance that our assumptions and estimates are accurate as there is inherent uncertainty in our ability to predict future liquidity requirements.

Debt Covenants

Our export credit facilities and our non-export credit facilities, and certain of our credit card processing agreements contain covenants that require us, among other things, to maintain a fixed charge coverage ratio, limit our net debt-to-capital ratio, and maintain a minimum liquidity, and under certain facilities, to maintain a minimum level of shareholders' equity. Our minimum stockholders' equity and maximum net debt-to-capital calculations exclude the impact of Accumulated other comprehensive loss on Total shareholders’ equity. As of March 31, 2024, we were in compliance with our financial covenants and we estimate that we will be in compliance for at least the next twelve months.

Dividends

The declaration of dividends shall at all times be subject to the final determination of our board of directors that a dividend is prudent at that time in consideration of the needs of the business. In the event we declare a dividend or engage in share repurchases, we will need to repay the amounts deferred under our export credit facilities. Accordingly, we have not declared a dividend since the first quarter of 2020.

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Item 3. Quantitative and Qualitative Disclosures About Market Risk

For a discussion of our market risks, refer to Part II, Item 7A. Quantitative and Qualitative Disclosures About Market Risk in our Annual Report on Form 10-K for the year ended December 31, 2023. There have been no material changes to our exposure to market risks since the date of our 2023 Annual Report.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our President and Chief Executive Officer and Chief Financial Officer, conducted an evaluation of the effectiveness of our disclosure controls and procedures, as such term is defined in Exchange Act Rule 13a-15(e), as of the end of the period covered by this Quarterly Report on Form 10-Q. Based upon such evaluation, our President and Chief Executive Officer and Chief Financial Officer concluded that those controls and procedures are effective to provide reasonable assurance that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is accumulated and communicated to management, including our President and Chief Executive Officer and our Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure and are effective to provide reasonable assurance that such information is recorded, processed, summarized and reported within the time periods specified by the rules and forms of the Securities and Exchange Commission (the "SEC").

Changes in Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting identified in connection with the evaluation required by Exchange Act Rule 13a-15(d) during the quarter ended March 31, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Inherent Limitations on Effectiveness of Controls

It should be noted that any system of controls, however well designed and operated, can provide only reasonable, and not absolute, assurance that the objectives of the system will be met. In addition, the design of any control system is based in part upon certain assumptions about the likelihood of future events. Because of these and other inherent limitations of control systems, there is only reasonable assurance that our controls will succeed in achieving their goals under all potential future conditions.

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PART II. OTHER INFORMATION

Item 1. Legal Proceedings

As previously reported, a lawsuit was filed against us in August 2019 in the U.S. District Court for the Southern District of Florida (the "Court") under Title III of the Cuban Liberty and Democratic Solidarity Act, also known as the Helms-Burton Act. The complaint filed by Havana Docks Corporation ("Havana Docks Action") alleges it holds an interest in the Havana Cruise Port Terminal, which was expropriated by the Cuban government. The complaint further alleges that we trafficked in the terminal by embarking and disembarking passengers at these facilities. The plaintiff seeks all available statutory remedies, including the value of the expropriated property, plus interest, treble damages, attorneys’ fees and costs.

The Court entered final judgment in December 2022 in favor of the plaintiff and awarded damages and attorneys' fees to the plaintiff in the aggregate amount of approximately $112 million. We have appealed the judgment to the United States Court of Appeals for the 11th Circuit. We believe we have meritorious grounds for and intend to vigorously pursue our appeal. During the fourth quarter of 2022, we recorded a charge of approximately $130.0 million to Other (expense) income within our consolidated statements of comprehensive income (loss) related to the Havana Docks Action, including post-judgment interest and related legal defense costs and bonding fees.

In addition, we are routinely involved in claims typical within the cruise vacation industry. The majority of these claims are covered by insurance. We believe the outcome of such claims, net of expected insurance recoveries, will not have a material adverse impact on our financial condition or results of operations and cash flows.

Item 1A. Risk Factors

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

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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Share Repurchases

The following table provides information about our repurchase of common stock during the quarter ended March 31, 2024.

There were no repurchases of common stock during the quarter ended March 31, 2024. In the event we repurchase shares of our common stock, we will need to repay the amounts deferred under our export credit facilities as part of the principal amortization deferrals agreed with our lenders during 2020 and 2021.

Period	Total number of shares purchased (1)	Average price paid per share	Total number of shares purchased as part of publicly announced plans or programs	Approximate dollar value of shares that may yet be purchased under the plans or programs
January 1, 2024 - January 31,2024	—	—	—	—
February 1, 2024 - February 29, 2024	—	—	—	—
March 1, 2024 - March 31, 2024	220,305	51.12	—	—
Total	220,305	51.12	—	—

(1) Includes shares related to employee stock plans; primarily 137,368 performance shares issued that did not vest as the performance criteria was not met and were repurchased at par value of $0.01 per share. Additionally, shares were withheld by us to cover withholding taxes due at the election of certain holders.

Item 5. Other Information

Rule 10b5-1 Plan Elections

During the quarter ended March 31, 2024, none of our directors or officers (as defined in Rule 16a-1 under the Exchange Act) adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement" (as those terms are defined in Item 408 of Regulation S-K), except as follows:

On February 14, 2024, Michael W. Bayley, the President and Chief Executive Officer of Royal Caribbean International, entered into a 10b5-1 trading arrangement that provides for the sale of up to 73,356 shares of the Company’s common stock, subject to certain conditions. This includes all common stock, net of shares withheld to cover tax withholding obligations, to be issued upon the anticipated vesting of 58,941 restricted stock units and 91,360 performance share awards. The arrangement's expiration date is August 30, 2024.

On February 23, 2024, R. Alexander Lake, Chief Legal Officer and Secretary of the Company, entered into a 10b5-1 trading arrangement providing for the sale of up to 7,750 shares, subject to certain conditions. The arrangement's expiration date is February 21, 2025.

The foregoing trading arrangements were entered into during an open insider trading window and are intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act and the Company’s policies regarding insider transactions.

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Item 6. Exhibits

4.1	Indenture, dated as of March 7, 2024, between Royal Caribbean Cruises Ltd. and The Bank of New York Mellon Trust Company, N.A., as trustee (incorporated by reference to Exhibit 4.1 on the Company's Current Report on Form 8-K filed on March 7, 2024).
4.2	Form of 6.250% Senior Notes due 2032 (incorporated by reference to Exhibit 4.2 on the Company's Current Report on Form 8-K filed on March 7, 2024).
10.1	Employment Agreement, dated May 1, 2023, between Celebrity Cruises Inc. and Laura Hodges Bethge.
31.1	Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934
31.2	Certification of the Chief Financial Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934
32.1	Certifications of the Chief Executive Officer and the Chief Financial Officer pursuant to Rule 13a-14(b) of the Securities Exchange Act of 1934 and Section 1350 of Chapter 63 of Title 18 of the United States Code**

** Furnished herewith

Interactive Data File

101                         The following financial statements of Royal Caribbean Cruises Ltd. for the period ended March 31, 2024, formatted in iXBRL (Inline extensible Reporting Language) are filed herewith:

(i)               the Consolidated Statements of Comprehensive Income (Loss) for quarter ended March 31, 2024 and 2023;

(ii)    the Consolidated Balance Sheets at March 31, 2024 and December 31, 2023;

(iii)                the Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023; and

(iv)                   the Notes to the Consolidated Financial Statements, tagged in summary and detail.

104      Cover page interactive data file (the cover page XBRL tags are embedded within the Inline XBRL document).

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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.
	(Registrant)
	/s/ NAFTALI HOLTZ
	Naftali Holtz
	Chief Financial Officer
April 25, 2024	(Principal Financial Officer and duly authorized signatory)

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EX-10.1

Exhibit 10.1

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT (“Agreement”), dated as of May 1, 2023 is entered into between Celebrity Cruises Inc., a company organized and existing under the laws of Liberia (together with its successor and assigns, “Company”), and Laura Hodges Bethge (“Executive”). This Agreement supersedes any prior employment agreement between Company and Executive.

For and in consideration of the foregoing and of the mutual covenants of the parties herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

1.EMPLOYMENT. Company hereby employs Executive to serve in the capacities described herein and Executive hereby accepts such employment and agrees to perform the services described herein upon the terms and conditions hereinafter set forth.

2.TERM. The term of this Agreement (the “Term”) shall commence on the date of this Agreement and shall continue until the occurrence of a “Termination Event,” which shall mean any of the events described in Section 6 hereof.

3.POSITION, DUTIES AND LOCATION.

(a)Position. Executive’s title appears in the signature page of this Agreement.

(b)Duties and Location. Executive's employment duties and responsibilities will be those designated to Executive, from time to time, by Company. Executive will, at all times during the Term, comply with all policies of Company and Royal Caribbean Cruises Ltd. (“RCL”), as such policies may be amended by Company or RCL from time to time, including, but not limited to any policy requiring ownership of Company or RCL equity by officers of Company or RCL. Executive shall report to such officer of Company or RCL as may be designated by Company or RCL from time to time. Executive agrees to devote Executive’s entire professional time, energy, and skills to such employment during the Term. During the Term, Executive’s principal office, and principal place of employment, shall be in Southeast Florida.

(c)Permitted Activities. Subject to Company's and RCL’s policies, as from time to time constituted or amended, Executive shall, with the prior written approval of Company and RCL, (i) be permitted to serve as an advisor or director of one for-profit entity at any given time and one not-for-profit entity at any given time and (ii) engage in other charitable activities and community affairs during business hours; provided that, none of the foregoing activities shall interfere with the proper performance of Executive’s duties and responsibilities hereunder.

4.COMPENSATION.

(a)Base Compensation. Company shall pay Executive, and Executive agrees to accept, base compensation (“Base Compensation”) as designated from time to time in written communication from Company or RCL setting forth such Base Compensation. Such Base

Compensation shall be paid in accordance with Company’s payroll cycle during the Term, subject to all applicable withholding taxes. The Base Compensation may be reviewed by Company or RCL and by written notice from Company or RCL to Executive, may be increased, but not decreased, at any time during the Term at the sole discretion of Company or RCL. No increase in the Base Compensation pursuant to this Section 4(a) shall at any time operate as a cancellation of this Agreement; any such increase shall operate merely as an amendment hereof, without any further action by Executive or Company. If any such increase or increases shall be so authorized, all of the terms, provisions and conditions of this Agreement shall remain in effect as herein provided, except that the Base Compensation shall be deemed amended to set forth the higher amount of such Base Compensation to Executive.

(b)Bonus Compensation. Executive shall be eligible to participate in any cash bonus compensation program available to full time officers of Company and eligible to receive an annual cash bonus during the Term on the same basis and under substantially the same terms as such similarly situated employees. The bonus award of Executive shall be established from time to time by Company or RCL, in their sole and unfettered discretion.

(c)Equity and Long-Term Incentive Awards. Executive shall be eligible to participate in any equity or long-term incentive plans available to full time officers of Company and eligible to receive awards under such plans from time to time, as determined by Company or RCL, in their sole and unfettered discretion. Any equity grant(s) held by Executive on the date of this Agreement shall be retained by Executive, subject to the terms and conditions of the plan(s) or agreement(s) under which such equity grant(s) were awarded or distributed.

5.FRINGE BENEFITS.

(a)Generally. Executive and Executive’s eligible dependents shall be entitled to participate in all pension, welfare, benefits, and fringe benefit programs or other employee perquisite programs approved by Company that now or hereafter may be made generally available to full time officers of Company and for which Executive or such dependents will qualify according to eligibility requirements under the provisions thereof. Company shall purchase Executive a policy of insurance on the life of Executive in the amount generally available to full time officers of Company, plus an amount equal to one (1) time Executive’s annual Base Compensation. Benefits of any such policy of insurance shall be paid to beneficiaries designated by Executive.

(b)Vacation. Executive shall be entitled to paid vacation per calendar year in accordance with Company policies regarding vacation generally.

(c)Expenses. Executive shall be reimbursed for Executive’s business-related expenses incurred on behalf of Company in accordance with the travel and entertainment expense policy of Company or RCL in effect at the time the expense was incurred. Executive agrees to maintain such records and documentation of all such expenses to be reimbursed by Company hereunder as Company or RCL shall require and in such detail as Company or RCL may reasonably request.

6.TERMINATION.

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(a)Generally. Executive’s employment may be terminated in accordance with the following paragraphs.

(b)Mutual. Executive’s employment under this Agreement may be terminated upon the mutual written agreement of Company and Executive.

(c)Death or Disability. In the event of the death of Executive, this Agreement shall terminate. If, during Executive’s employment under this Agreement, Executive shall become disabled, as defined by Company's then applicable and governing long term disability plan or policy, and unable to perform Executive’s duties as required herein (“Disability"), then Company may, upon written notice to Executive, terminate Executive’s employment under this Agreement and this Agreement shall terminate upon such termination of employment.

(d)Cause. Executive’s employment under this Agreement may be terminated by Company for “Cause,” which shall mean the existence or occurrence of one or more of the following conditions or events:

(i)Executive's commission of fraud, deceit, misappropriation, theft, embezzlement, financial misrepresentation or other similar behavior or action;

(ii)Executive being convicted of or entering a plea of guilty or nolo contendere to any crime which constitutes a felony offense or any crime involving moral turpitude;

(iii)Executive's actions or failure(s) to act constitute a material conflict of interest;

(iv)Executive's intentional, reckless, or grossly negligent conduct results in damage of a material nature to any property or business interests of Company, RCL, or any of their past and present subsidiaries, affiliates, officers, directors, board members, employees, agents, or assigns (collectively with RCL, “Affiliates”);

(v)Executive's actions or failure(s) to act constitute a material breach of Executive’s duties; or

(vi)Executive’s failure to follow the lawful directives of Company or RCL, with respect to Executive’s duties hereunder or to comply with Company or RCL policies, as from time to time constituted or amended.

In the event Executive shall become the subject of an arrest, indictment, charge, or information, or any other judicial or quasi-judicial proceeding brought by any state or federal law enforcement or administrative agency, relating to the alleged commission by Executive of any crime described in Section 6(d)(ii), Company may, at its election, immediately suspend Executive, without compensation, pending an acquittal or satisfactory (to Company in its sole discretion) dismissal or other disposition of any of the foregoing. In the event of any such acquittal or satisfactory dismissal or other disposition of charges following the suspension of Executive by Company, upon reinstatement of Executive, Company's obligation to compensate Executive during the suspension shall be the lesser of Executive's unpaid annual Base

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Compensation during the period of suspension or Executive's annual Base Compensation for a period of one (1) year from the date of the suspension.

No termination of Executive's employment hereunder by Company for Cause shall be effective as a termination for Cause unless the provisions of this Section 6(d) shall first have been complied with. Any termination of Executive’s employment by Company under this Section 6(d) shall be communicated by written notice to Executive given in accordance with Section 14 hereof (“Notice of Termination”).

Termination for Cause as a result of events set forth in Sections 6(d)(i) through (iv) above shall be effective immediately upon delivery of the Notice of Termination. In the event of a Termination for Cause as a result of the events set forth in Section 6(d)(v) or (vi) above, Executive shall have fifteen (15) days (the "Cure Period") from the date Executive receives a Notice of Termination to remedy and cure any alleged Cause supporting any termination pursuant to this Section 6(d)(v) or (vi). If Executive fails to cure such alleged Cause within the Cure Period (during which time Company, at its sole discretion, may suspend Executive without compensation), Executive's employment hereunder and this Agreement shall then immediately terminate for Cause.

(e)Without Cause. Executive may be terminated by Company for any reason or for no reason at any time.

(f)Executive Termination for Good Reason. Executive shall have the right to terminate Executive’s employment with Company for Good Reason. For purposes of this Agreement, "Good Reason" shall mean:

        (i)    the assignment to Executive of duties or responsibilities materially inconsistent with Executive’s position or other action by Company or RCL which results in a material diminution in Executive’s duties or responsibilities, including without limitation, changes to Executive's position in any succeeding surviving corporate entity in comparison to the position currently held with Company, excluding for this purpose isolated, immaterial, insubstantial, temporary or inadvertent actions; or

        (ii)    failure by Company to provide Executive with the compensation and benefits as provided for in this Agreement, other than isolated, insubstantial and inadvertent failures not occurring in bad faith and which are remedied by Company promptly after receipt of notice thereof given by Executive.

No termination of Executive's employment hereunder by Executive for Good Reason shall be effective unless the provisions of this Section 6(f) shall first have been complied with. Any termination of Executive’s employment by Executive under this Section 6(f) shall be communicated by a Good Reason Termination Notice to Company given within thirty (30) days of the occurrence of the event listed above in accordance with Section 14. A “Good Reason Termination Notice” means a written notice which (1) indicates the specific termination provision in this Agreement relied upon, (2) sets forth, in reasonable detail, the facts and circumstances claimed to provide a basis for termination of Executive’s employment under the provision so indicated, and (3) specifies a termination date, which date shall not be less than

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thirty (30) nor more than forty-five (45) calendar days after the giving of such notice. Company shall have thirty (30) days (the "Company's Cure Period") from the date Company receives a Good Reason Termination Notice to remedy and cure any alleged Good Reason supporting any termination pursuant to this Section 6(f). If Company fails to cure such alleged Good Reason within Company's Cure Period, Executive's employment hereunder and this Agreement shall then terminate for Good Reason as of the conclusion of Company's Cure Period or the termination date set forth in the Good Reason Termination Notice, whichever is later. If Company cures the alleged Good Reason, Executive may not terminate for Good Reason under this Agreement.

(g)Resignation. Executive shall have the right to terminate Executive’s employment with Company at any time for any reason whatsoever.

7.COMPENSATION UPON TERMINATION.

(a)Generally. Executive’s entitlement to compensation in the event of a Termination Event, shall be as set forth in this Section 7.

(b)Mutual. If this Agreement and Executive’s employment hereunder is terminated by mutual agreement pursuant to Section 6(b) hereof, Executive's compensation and benefits on a going forward basis shall be as agreed to by the parties at such time.

(c)Death. If this Agreement and Executive’s employment hereunder is terminated due to the death of Executive pursuant to Section 6(c), Company shall have no obligation to Executive or legal representatives of Executive other than (i) payment of Executive’s Base Compensation through such date of termination;(ii) payment of any accrued benefits or obligations owed to Executive; (iii) benefits (if any) provided in accordance with applicable plans, programs and arrangements of Company or as required by law; and (iv) any outstanding equity grant(s) held by Executive at the time of such termination to the extent provided for under the agreement or plan pursuant to which such grant(s) was issued.

(d)Disability.    If Executive’s employment is terminated due to a Disability pursuant to Section 6(c), Company shall have no obligation to Executive or legal representatives of Executive other than (i) payment of Executive’s Base Compensation through such date of termination; (ii) payment of any accrued benefits or obligations owed to Executive; (iii) benefits (if any) provided in accordance with applicable plans, programs and arrangements of Company or as required by law; and (iv) any outstanding equity grant(s) held by Executive at the time of such termination to the extent provided for under the agreement or plan pursuant to which such grant(s) was issued.

(e)Cause. If this Agreement and Executive’s employment hereunder is terminated for Cause pursuant to Section 6(d) hereof, Company shall have no obligation to Executive or legal representatives of Executive other than (i) payment of Executive’s Base Compensation through such date of termination; (ii) payment of any accrued benefits or obligations owed to Executive; (iii) benefits (if any) provided in accordance with applicable plans, programs and arrangements of Company or as required by law; (iv) any outstanding equity grant(s) held by

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Executive at the time of such termination to the extent provided for under the agreement or plan pursuant to which such grant(s) was issued.

(f)    Without Cause. If this Agreement and Executive’s employment hereunder is terminated without Cause pursuant to Section 6(e) hereof, Company shall have no obligation to Executive or legal representatives of Executive other than (conditioned upon the last sentence of this Section 7(f)) (i) payment of termination compensation in the amount equal to two (2) times Executive's annual Base Compensation in effect on the date of such termination, subject to applicable withholding taxes, and payable, subject to Sections 7(h) and 7(k), in accordance with Company’s payroll cycle during the two (2) year period commencing on the date of such termination; (ii) payment of the Executive’s “target bonus,” as that term is used in Company’s current bonus plan for full time officers of Company, or its equivalent if the term or plan should be amended, which Executive would have been otherwise entitled to receive during the two (2) year period commencing on the date of such termination, payable, subject to Section 7(h), at such time as annual incentive bonuses are paid pursuant to the plan; (iii) continued coverage of medical benefits at the same cost as similarly situated active employees for a period of one (1) year or until such time as Executive commences new employment, whichever occurs first; (iv) payment of any accrued benefits or obligations owed to Executive; (v) benefits (if any) provided in accordance with applicable plans, programs and arrangements of Company or as required by law; (vi) payment of reasonable professional search fees relating to Executive's outplacement; and (vii) any outstanding equity grant(s) held by Executive at the time such termination to the extent provided for under the agreement or plan pursuant to which such grant(s) was issued. In consideration of the compensation and benefits payable to Executive pursuant to subsections (i), (ii), (iii), and (vi), Executive shall, as a condition to payment of such compensation and benefits, execute a general release, in form and substance reasonably acceptable to Company, releasing Company and its Affiliates from all claims and liabilities, except for any accrued obligations.

(g)    Executive Termination for Good Reason. If this Agreement and Executive's employment hereunder is terminated by Executive for Good Reason pursuant to Section 6(f) hereof, Company shall have no obligation to Executive or legal representatives of Executive other than (conditioned upon the last sentence of this Section 7(g)) (i) payment of termination compensation in the amount equal to two (2) times Executive's annual Base Compensation in effect on the date of such termination, subject to applicable withholding taxes, and payable, subject to Sections 7(h) and 7(k), in accordance with Company’s payroll cycle during the two (2) year period commencing on the date of such termination; (ii) payment of the Executive’s “target bonus,” as that term is used in Company’s current bonus plan for full time officers of Company, or its equivalent if the term or plan should be amended, which Executive would have been otherwise entitled to receive during the two (2) year period commencing on the date of such termination, payable, subject to Section 7(h), at such time as annual incentive bonuses are paid pursuant to the plan; (iii) continued coverage of medical benefits at the same cost as similarly situated active employees for a period of one (1) year or until such time as Executive commences new employment, whichever occurs first; (iv) payment of any accrued benefits or obligations owed to Executive; (v) benefits (if any) provided in accordance with applicable plans, programs and arrangements of Company or as required by law; (vi) payment of reasonable professional search fees relating to Executive's outplacement; and (vii) any outstanding equity grant(s) held by Executive at the time of such termination to the extent provided for under the agreement or plan pursuant to which such grant(s) was issued. In consideration of the compensation and

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benefits payable to Executive pursuant to subsections (i), (ii), (iii), and (vi), Executive shall, as a condition to payment of such compensation and benefits, execute a general release, in form and substance reasonably acceptable to Company, releasing Company and its Affiliates from all claims and liabilities, except for any accrued obligations.

(h)    Six-Month Deferral. If Executive is a “specified employee” as defined in Section 409A(a)(2)(B)(i) of the Internal Revenue Code, Executive shall not be paid the amounts that would otherwise be payable to Executive pursuant to Section 7(f)(i) or Section 7(g)(i), as the case may be, for the first six months following termination of Executive’s employment. The aggregate of such amounts shall instead be paid in one lump sum immediately following the expiration of the six-month period. The preceding payment restriction shall not apply to the extent that any portion of such payment, if made during the first six-month period, would be treated as exempt from the provisions of Section 409A or would otherwise be treated as permitted deferred compensation pursuant to any other applicable provisions of Section 409A or the rules and regulations promulgated thereunder (for example, as separation pay due to an involuntary termination pursuant to 1.409A-1(b)(9)(iii) of the Treasury Regulations).

(i)    Resignation. If this Agreement and Executive’s employment hereunder is terminated due to Executive’s resignation pursuant to Section 6(g) hereof, Company shall have no obligation to Executive or legal representatives of Executive other than (i) the payment of Executive’s Base Compensation through such date of termination; (ii) the payment of any accrued benefits or obligations owed to Executive; and (iii) benefits (if any) provided in accordance with applicable plans, programs and arrangements of Company or as required by law; and (iv) any outstanding equity grant(s) held by Executive at such time to the extent provided for under the agreement or plan pursuant to which such grant(s) was issued.

(j)    No Mitigation.     Executive shall not be required to mitigate the amount of any payments provided for in Sections 7(f) and 7(g) by seeking other employment or otherwise, nor shall the amount of any payments or benefits provided for in Sections 7(f) and 7(g) be reduced by any compensation earned by Executive as a result of employment by another employer or by retirement benefits.

(k)    Severance Deferral.    Except as otherwise provided in Section 7(h), the commencement of payments due under Sections 7(f)(i) and 7(g)(i) shall commence no later than 60 days of the date of such termination provided that the Executive has executed and submitted the release and the period for revocation of the release pursuant to applicable law has expired within the 60-day period. In any case where the period for execution and revocation of the release begins in one calendar year and ends in another calendar year, the commencement of payments shall be deferred until the second calendar year regardless of whether the release is executed in the first calendar year. The aggregate of any amounts deferred pursuant to this Section 7(k) shall be paid in one lump sum on the first payroll date on which payments commence hereunder. Under no circumstances shall Executive be permitted to designate the calendar year in which the payments commence.

8.CONFIDENTIAL INFORMATION AND NON-DISCLOSURE. Executive recognizes and acknowledges that Executive will have access to certain confidential information of Company, its Affiliates, and companies with whom Company and/or its Affiliates do business,

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and that such information constitutes valuable, special and unique property of Company, its Affiliates, and/or such other companies.

(a)Non-Disclosure. During the Term and following the termination of Executive’s employment for any reason, Executive shall hold in confidence and shall not, directly or indirectly, take, disclose, use, or publish any “Confidential Information” except in the course of Executive’s employment by, and for the benefit of Company or its Affiliates. “Confidential Information” includes without limitation, information, observations, procedures, practices, personnel or employment information, and data of any kind, whether written or oral, regarding the business, operations or affairs of Company or its Affiliates, including, by way of example, strategies, planning, research, developments, product designs or specifications, manufacturing processes, “know-how,” prices, suppliers, customers, costs, workflow processes, software, developments, inventions, formulas, technology, designs, drawings, engineering plans, hardware configuration information, and any knowledge or information with respect to confidential matters, trade secrets, or any information that a reasonable person would conclude is intended to remain confidential due to its nature or the circumstances under which it was learned. Confidential Information does not include information that is publicly available unless such information became publicly available as a result of a breach of this Agreement. Executive acknowledges and agrees that all notes, records, emails, reports, sketches, plans, unpublished memoranda or other documents belonging to Company or its Affiliates, but held by Executive, concerning any information relating to the business or operations of Company or its Affiliates, whether confidential or not, are the property of Company or its Affiliates and will be promptly delivered to Company upon Executive’s leaving the employ of Company or upon the request of Company at any time.

(b)Notice of Immunity Under the Defend Trade Secrets Act of 2016 (“DTSA”). Notwithstanding any other provision of this Agreement, Executive cannot be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret as defined thereunder, that (i) is made in confidence to a federal, state or local government official, either directly or indirectly, or to an attorney, and solely for the purpose of reporting or investigating a suspected violation of law; or (ii) is made in a complaint or other document filed in a lawsuit or other proceeding if such filing is made under seal. If Executive files a lawsuit for retaliation by Company for reporting a suspected violation of law, Executive may disclose the trade secret to Executive’s attorney and use the trade secret information in the court proceeding, if Executive files any document containing the trade secret under seal; and does not disclose the trade secret, except pursuant to court order.

(c)Other Permitted Disclosures. Nothing in this Agreement shall be construed to prevent disclosure of Confidential Information as may be required by applicable law or regulation, or pursuant to the valid order of a court of competent jurisdiction or an authorized government agency, provided that the disclosure does not exceed the extent of disclosure required by such law, regulation, or order. Prior to any compelled disclosure, Executive will promptly provide written notice of any such order to Company to allow Company the opportunity to seek an appropriate protective order or other legal remedy. Executive understands that nothing in this Agreement prohibits or restricts Executive from initiating communications directly with, responding to an inquiry from, or providing testimony before the Securities and Exchange Commission, the Financial Industry Regulatory Authority, any other self-regulatory

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organization, or any other federal or state regulatory authority regarding this Agreement or its underlying facts or circumstances or a possible securities law violation without prior notice to Company.

9.INTELLECTUAL PROPERTY.

(a)Ownership of Inventions. Company and/or RCL shall own all right, title, and interest in and to all documentation, manuals, materials, creative works, methods, techniques, compositions, ideas, recipes, creations, improvements, inventions, computer programs and data, system documentation, special hardware, product hardware, related software development, correspondence, letters, notes, notebooks, reports, flowcharts, proposals, know-how and other information, in any medium whatsoever including, without limitation, any Confidential Information, trade secrets, and all software, software code, processes, copyrights, patents, technologies, and inventions (collectively, “Inventions”), including, without limitation, new contributions, improvements, ideas and discoveries, whether patentable or not, conceived, developed, invented, or made by Executive during employment with Company (provided that such Inventions grew out of Executive’s work with Company, are related in any manner to Company’s or RCL’s business, or are conceived or made on Company’s time or with the use of Company’s or RCL’s facilities or materials). Executive acknowledges and agrees that any work product created, produced, or conceived in connection with Executive’s association with Company shall be deemed work for hire and shall be deemed owned exclusively by Company and/or RCL.

(b)Executive Obligations. Executive shall (i) promptly disclose such Inventions to Company; (ii) assign to Company and RCL, without additional compensation, all patent and other rights to such Inventions for the United States and foreign countries; (iii) execute and deliver all documents required by Company or RCL to document or perfect Company’s and/or RCL’s proprietary rights in and to Company’s and/or RCL’s work product; and (iv) give testimony in support of Executive’s inventorship. Executive will deliver all Confidential Information, trade secrets and/or Inventions to Company upon Company’s request, and, in any event, immediately upon termination of Executive’s employment with Company.

(c)Inventions Retained and Licensed. Executive must attach to this Agreement, as Exhibit 1, a list describing all inventions made by Executive prior to employment with Company, that relate to Company’s or RCL’s proposed business, products, or research and development, and that are not assigned to Company or RCL under this Agreement (collectively, “Prior Inventions”). If no list is attached or if no Prior Inventions are listed on Exhibit 1, Executive represents that there are no Prior Inventions. Furthermore, Executive represents and warrants that the inclusion of any Prior Inventions from Exhibit 1 will not materially affect Executive’s ability to perform all obligations under this Agreement. If in the course of Executive’s employment with Company, Executive incorporates into a Company product, process, or machine an Invention owned by Executive or in which Executive has an interest, Company is granted a nonexclusive, royalty-free, irrevocable, perpetual, transferrable, worldwide license (with right to sublicense) to make, have made, modify, use, import, offer for sale, sell, reproduce, distribute, modify, adapt, prepare derivative works of, display, perform, and otherwise exploit the Invention without restriction of any kind.

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(d)Executive’s Restrictions. Executive acknowledges that Company’s and/or its Affiliates’ Confidential Information, trade secrets, and/or Inventions constitute Company’s and/or its Affiliates’ valuable intellectual property. Executive will not infringe or violate any proprietary right of Company and/or its Affiliates related to the Confidential Information, trade secrets, and/or Inventions, and shall not own, apply for or otherwise attempt to obtain, on behalf of Executive or others, any proprietary right in any Confidential Information, trade secrets, and/or Inventions, which Company or its Affiliates owns or has a right to own, in which Company or its Affiliates has an interest and/or to which Company or its Affiliates has title.

10.NON-COMPETITION. Executive acknowledges that services Executive will render are of a special and unusual character that have a unique value to Company and RCL and the conduct of their business, the loss of which cannot adequately be compensated by damages in an action at law. In view of the unique value to Company and RCL of Executive’s services and the Confidential Information to be obtained by or disclosed to Executive, and as a material inducement to Company to enter into this Agreement and to pay and make available to Executive the compensation and other benefits referred to herein, Executive covenants and agrees that:

(a)During Executive’s employment with Company and for the two (2) year period immediately following the termination of Executive's employment for any reason (the “Restricted Period”), Executive shall not, directly or indirectly, work for or provide any services (in any capacity, including without limitation as a director, officer, employee, advisor or consultant) for any other entity engaged in (or preparing to engage in) cruises, with a minimum fleet size of 500 berths (including the reasonable estimated berths of ships under construction or publicly announced to be built), or cruise related businesses of any such entity;

(b)employ or seek to employ any person who is then employed or retained by Company or its Affiliates (or who was so employed or retained at any time within the six (6) month period prior to the last day of Executive’s employment with Company);

(c)solicit, induce, or influence any proprietor, partner, stockholder, lender, director, officer, employee, joint venturer, investor, consultant, agent, lessor, supplier, customer or any other person or entity that has a business relationship with Company or its Affiliates at any time during the Restricted Period, to discontinue or reduce or modify the extent of such relationship with Company or any of its Affiliates.

(d)Tolling During Periods of Breach. The Restricted Period shall be tolled during any period that Executive is in breach of any of the restrictive covenants so that Company and RCL are provided with the full benefit of the full Restricted Period.

(e)Executive has carefully read and considered the provisions of Sections 8, 9, and 10 hereof and agrees that the restrictions set forth in such sections are fair and reasonable and are reasonably required for the protection of the interests of Company and its Affiliates, and to ensure that Executive devotes Executive’s entire professional time, energy, and skills to the business of Company. Executive acknowledges that Executive is qualified to engage in businesses other than that described in this Section 10. It is the belief of the parties, therefore, that the best protection that can be given to Company and its Affiliates that does not in any way infringe upon the rights of Executive to engage in any unrelated businesses is to provide for the

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restrictions described above. In view of the substantial harm which would result from a breach by Executive of Sections 8, 9, or 10, the parties agree that the restrictions contained therein shall be enforced to the maximum extent permitted by law as more particularly set forth in Section 13 below. In the event that any of said restrictions shall be held unenforceable by any court of competent jurisdiction, the parties hereto agree that it is their desire that such court shall substitute a reasonable judicially enforceable limitation in place of any limitation deemed unenforceable and that as so modified, the covenant shall be as fully enforceable as if it had been set forth herein by the parties.

11.NON-DISPARAGEMENT. During the Term and following the termination of Executive’s employment for any reason, Executive shall not, at any time, directly or indirectly, (i) make derogatory or disparaging statements about Company or its Affiliates, (ii) publish, provide, or approve any unauthorized statements about or relating to Company or its Affiliates, or (iii) take any actions that might reasonably be considered to be detrimental to Company or its Affiliates.

12.COOPERATION. The parties agree that certain matters in which Executive will be involved may necessitate Executive's cooperation in the future. Accordingly, during the Term and following the termination of Executive's employment for any reason, to the extent reasonably requested by Company, Executive shall cooperate with Company in connection with matters relating to Company’s or its Affiliates’ business and/or Executive's service to Company. Company shall make reasonable efforts to minimize disruption of Executive's other activities, and Company shall reimburse Executive for reasonable expenses incurred in connection with such cooperation.

13.REMEDIES. The provisions of Sections 8, 9, 10, and 11 of this Agreement shall survive the termination of this Agreement as set forth therein, regardless of the circumstances or reasons for such termination, and inure to the benefit of Company and its Affiliates. The restrictions set forth in Sections 8, 9, 10, and 11 are considered to be reasonable for the purposes of protecting the business of Company. Company and Executive acknowledge that Company would be irreparably harmed and that monetary damages would not provide an adequate remedy to Company or its Affiliates if the covenants contained in Sections 8, 9, 10, and 11 were not complied with in accordance with their terms. Accordingly, Executive agrees that Company or its Affiliates shall be entitled to injunctive and other equitable relief to secure the enforcement of these provisions, in addition to any other remedy which may be available to Company or its Affiliates. Company and its Affiliates shall be entitled to receive from Executive reimbursement for reasonable attorneys’ fees and expenses incurred by Company or its Affiliates in successfully enforcing these provisions to final judgment, and Executive shall be entitled to receive from Company reasonable attorney’s fees and expenses incurred by Executive in the event Company is found to be not entitled to enforcement of these provisions.

14.NOTICES. Any notice required or permitted to be given under this Agreement shall be in writing and sent by an overnight courier service that provides proof of receipt, mailed by registered or certified mail (postage prepaid, return receipt requested) or telecopied to the parties at the addresses below:

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If to Executive: Notice must be sent to the address maintained by Human Resources, which Executive has an obligation to update as needed.

If to Company: Notice must be sent to the Chief Legal Officer and Chief People & Outreach Officer at the corporate headquarters.

Royal Caribbean Cruises Ltd.

1050 Caribbean Way

Miami, FL 33132

Telephone: (305) 539-6000

Facsimile: (305) 539-0562

15.ENTIRE AGREEMENT; MODIFICATION.

(a)This Agreement contains the entire agreement of Company and Executive with respect to the subject matter hereof, and Company and Executive hereby acknowledge and agree that this Agreement supersedes any prior statements, writings, promises, understandings or commitments with respect to the subject matter hereof.

(b)No future oral statements, promises or commitments with respect to the subject matter hereof, or other purported modification hereof, shall be binding upon the parties hereto unless the same is reduced to writing and signed by each party hereto.

(c)Unless Executive and Company enter into a new employment agreement, this Agreement will continue in effect even if Executive assumes a new position with Company or one of its Affiliates.

16.ASSIGNMENT. The rights and obligations of Company under this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors, heirs (in the case of Executive) and assigns. No rights or obligations of Company under this Agreement may be assigned or transferred by Company, except that such rights or obligations may be assigned or transferred pursuant to a merger, consolidation or other combination, reconstruction or amalgamation or a sale or liquidation of all or substantially all of the business and assets of Company. Executive may not assign Executive’s rights and obligations under this Agreement other than Executive’s rights to compensation and benefits, which may be transferred only by will or operation of law.

17.LEGAL EXPENSES. Each party shall pay for all expenses incurred on its behalf in connection with this Agreement.

18.DISPUTE RESOLUTION. Executive and Company agree that any and all claims or disputes arising between Executive and Company or its Affiliates, including but not limited to any claims arising out of or relating in any way to this Agreement, its validity or enforceability, or Executive’s employment, and any other claims against Company or its Affiliates (“Dispute”), will be resolved exclusively by final and binding arbitration, except with respect to any claim (i) that is expressly precluded from arbitration by a governing federal law or by a state law that is not preempted by the Federal Arbitration Act, 9 U.S.C. § 1 et seq. (“FAA”) or (ii) that seeks

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injunctive or other equitable relief in aid of arbitration, or to maintain the status quo pending arbitration.

(a)Any party (a “Disputing Party”) may initiate consideration of a Dispute hereunder by giving written notice to the other party of the existence of a Dispute (a “Dispute Notice”). Such notice shall set forth in reasonable detail the nature of the Dispute to be considered and shall be accompanied by a full disclosure of all factual evidence then available to the Disputing Party and by a statement of the applicable legal basis of the dispute; provided, however, that (i) to provide any such disclosure or to state any legal basis shall not operate as a waiver of such legal basis or operate to preclude the presentation or introduction of such factual evidence at a later time or in any subsequent proceeding or litigation or otherwise constitute a waiver of any right that a party may then or thereafter possess; and (ii) any settlement proposal made or proposed shall be deemed to have been made or proposed as part of a settlement discussion and may not be introduced in a legal proceeding without the prior written consent of the party making such proposal. The parties shall thereafter engage in good faith negotiations between themselves or their representatives for a period not to exceed thirty (30) days. Upon the giving or receipt of a Dispute Notice and the expiration of the thirty (30) day period provided in Section 18(a) hereof, during which good faith negotiations must have taken place, the parties may then commence arbitration in accordance with this Section 18(a) and subsequent subsections. Any dispute or claim arising from or relating to this Agreement, any dispute or claim arising from the rights and obligations created under this Agreement, or any dispute or claim relating to the breach of this Agreement, shall be settled by binding arbitration pursuant to the Commercial Arbitration Rules (and not the National Rules for the Resolution of Employment Disputes) of the American Arbitration Association. A party with a dispute or claim shall provide written notice requesting dispute resolution pursuant to this Section (the “Notice”). The arbitration panel shall be composed of three (3) arbitrators. The arbitration proceedings shall be conducted in Miami, Florida. Each party shall appoint one arbitrator within fourteen (14) calendar days from the receipt of Notice. These two arbitrators shall appoint the third arbitrator by mutual agreement within fourteen (14) calendar days of their own appointment. If the two (2) arbitrators appointed by the parties cannot agree on the third arbitrator within the specified time frames, the American Arbitration Association shall appoint one or more qualified arbitrators, as the case may be, as provided for in the Commercial Arbitration Rules of the American Arbitration Association.

(b)Subject to the last sentence of this Section 18(b), each party shall be liable for 50% of the costs of the arbiters and of any other costs of the arbitration proceeding itself. If either party refuses to pay such costs and the other party makes payment of all costs which would otherwise be due, the arbitration panel shall enter an award in favor of the party which complies with its obligation to pay such costs. In accordance with Section 18(d) hereof, upon the entering of an award, the arbitration panel shall award the prevailing party all of its legal fees and costs incurred with respect to prosecuting or defending its case, including its share of the costs of the arbitration proceeding itself.

(c)The arbitration proceedings shall in all events include the right to a hearing, the right to cross-examine witnesses giving oral or written testimony, and the right to subpoena witnesses to testify at the hearing.

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(d)The arbitration shall be final and binding on the parties without any right to appeal in any court of law.

(e)The covenant to arbitrate set forth in this Section 18 shall continue in effect after the expiration or termination of this Agreement.

(f)Notwithstanding any other provision in this Section 18, Company or its Affiliates shall be entitled to seek preliminary or permanent injunctive relief, or such other equitable relief, in a court of competent jurisdiction, in order to address and remedy violations or alleged violations by the Executive or the provisions of Sections 8, 9, 10, or 11 of this Agreement.

(g)Company does not currently have a formal dispute resolution policy for U.S. based employees. To the extent Company later implements a formal dispute resolution policy for U.S. based employees, Executive agrees to be bound by such policy upon thirty (30) days’ written notice of the implementation of such policy. Implementation of such a policy shall not operate as a cancellation of this Agreement.

19.SECTION 409A. The provisions of this Agreement are intended to comply with Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), or an exemption thereunder, and the provisions of this Agreement shall be interpreted consistent with such intention.  Notwithstanding anything in this Agreement to the contrary, all payments to be made upon a termination of employment under this Agreement will only be made upon a “separation from service” within the meaning of Section 409A of the Code.  Each individual payment provided for under this Agreement is intended to be a separate payment and all installment payments are intended to be separation payments for purposes of Section 409A.  The timing of the payments under this Agreement that are subject to Section 409A shall not be accelerated or delayed, unless any such acceleration or delay is in compliance with Section 409A.  In no event may the Executive, directly or indirectly, designate the calendar year of payment. Company makes no representation nor warranty and shall have no liability to Executive or any other person if any provisions of this Agreement are determined to constitute deferred compensation subject to Section 409A of the Code, but do not satisfy an exemption from, or conditions of, Section 409A of the Code.

20.INDEMNIFICATION. Company shall defend and indemnify Executive, in accordance with the then governing Articles of Incorporation, as amended, and Bylaws, as amended, of Company, for any civil or dispute resolution proceeding involving Executive, by reason of the fact that Executive is or was serving as an officer of Company or is or was otherwise serving at the request of Company.

21.MISCELLANEOUS.

(a)This Agreement shall be subject to and governed by the laws of the State of Florida, without regard to the conflicts of laws principles thereof.

(b)The section headings contained herein are for reference purposes only and shall not in any way affect the meaning or the interpretation of this Agreement.

14

(c)The failure of any party to enforce any provision of this Agreement shall in no manner affect the right to enforce the same, and the waiver by any party of any breach of any provision of this Agreement shall not be construed to be a waiver by such party of any succeeding breach of such provision or a waiver by such party of any breach of any other provision.

(d)In any dispute, arbitration and/or litigation arising out of this Agreement, including appeals, the prevailing party shall be entitled to recover all legal fees and costs incurred in such dispute, arbitration and/or litigation.

(e)In the event any one or more of the provisions of this Agreement shall for any reason be held invalid, illegal or unenforceable, the remaining provisions of this Agreement shall be unimpaired, and the invalid, illegal or unenforceable provision shall be replaced by a mutually acceptable valid, and enforceable provision which comes closest to the intent of the parties.

(f)This Agreement may be executed in any number of counterparts, each of which shall constitute an original and all of which together shall constitute one and the same instrument.

IN WITNESS WHEREOF, the parties have executed this Employment Agreement, effective as of the day and year first above written.

CELEBRITY CRUISES INC.

/s/ Dana Ritzcovan

                Dana Ritzcovan

                    Director and Chief Human Resources Officer

                    Dated: October 4, 2023

EXECUTIVE

/s/ Laura Hodges Bethge

                Laura Hodges Bethge

President, Celebrity Cruises Inc.

                Dated: October 4, 2023

15

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, Jason T. Liberty, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Royal Caribbean Cruises Ltd.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	April 25, 2024
		/s/ Jason T. Liberty
		Jason T. Liberty
		President and
		Chief Executive Officer
		(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Naftali Holtz, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Royal Caribbean Cruises Ltd.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	April 25, 2024
		/s/ Naftali Holtz
		Naftali Holtz
		Chief Financial Officer
		(Principal Financial Officer)

EX-32.1

Exhibit 32.1

In connection with the quarterly report on Form 10-Q for the quarterly period ended March 31, 2024 as filed by Royal Caribbean Cruises Ltd. with the Securities and Exchange Commission on the date hereof (the “Report”), Jason T. Liberty, President and Chief Executive Officer, and Naftali Holtz, Chief Financial Officer, each hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to his knowledge:

1.the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and

2.the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Royal Caribbean Cruises Ltd.

Date:	April 25, 2024
		By:	/s/ Jason T. Liberty
			Jason T. Liberty
			President and
			Chief Executive Officer
			(Principal Executive Officer)
		By:	/s/ Naftali Holtz
			Naftali Holtz
			Chief Financial Officer
			(Principal Financial Officer)

XML

Cover Page - shares	3 Months Ended
	Mar. 31, 2024	Apr. 22, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
Entity File Number	1-11884
Entity Registrant Name	ROYAL CARIBBEAN CRUISES LTD
Entity Incorporation, State or Country Code	N0
Entity Tax Identification Number	98-0081645
Entity Address, Address Line One	1050 Caribbean Way
Entity Address, City or Town	Miami
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	33132
City Area Code	305
Local Phone Number	539-6000
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	RCL
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		257,349,196
Entity Central Index Key	0000884887
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Total revenues	$ 3,728	$ 2,886
Cruise operating expenses:
Total cruise operating expenses	2,056	1,793
Marketing, selling and administrative expenses	535	461
Depreciation and amortization expenses	387	360
Operating Income	750	272
Other income (expense):
Interest income	5	15
Interest expense, net of interest capitalized	(424)	(360)
Equity investment income	41	20
Other (expense) income	(8)	5
Total other income (expense)	(386)	(320)
Net Income (Loss)	364	(48)
Less: Net Income attributable to noncontrolling interest	4	0
Net Income (Loss) attributable to Royal Caribbean Cruises Ltd.	$ 360	$ (48)
Earnings (Loss) per Share:
Basic (in dollars per share)	$ 1.40	$ (0.19)
Diluted (in dollars per share)	$ 1.35	$ (0.19)
Weighted-Average Shares Outstanding:
Basic (in shares)	257	255
Diluted (in shares)	281	255
Comprehensive Income (Loss)
Net Income (Loss)	$ 364	$ (48)
Other comprehensive income (loss):
Foreign currency translation adjustments	4	(7)
Change in defined benefit plans	9	4
Gain (loss) on cash flow derivative hedges	44	(32)
Total other comprehensive income (loss)	57	(35)
Comprehensive Income (Loss)	421	(83)
Less: Comprehensive Income attributable to noncontrolling interest	4	0
Comprehensive Income (Loss) attributable to Royal Caribbean Cruises Ltd.	417	(83)
Passenger ticket revenues
Total revenues	2,542	1,897
Onboard and other revenues
Total revenues	1,186	989
Cruise operating expenses:
Total cruise operating expenses	193	159
Commissions, transportation and other
Cruise operating expenses:
Total cruise operating expenses	498	403
Payroll and related
Cruise operating expenses:
Total cruise operating expenses	318	310
Food
Cruise operating expenses:
Total cruise operating expenses	221	199
Fuel
Cruise operating expenses:
Total cruise operating expenses	304	302
Other operating
Cruise operating expenses:
Total cruise operating expenses	$ 522	$ 420

XML

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Current assets
Cash and cash equivalents	$ 437	$ 497
Trade and other receivables, net of allowances of $9 and $7 at March 31, 2024 and December 31, 2023, respectively	455	405
Inventories	236	248
Prepaid expenses and other assets	690	617
Derivative financial instruments	52	25
Total current assets	1,870	1,792
Property and equipment, net	30,025	30,114
Operating lease right-of-use assets	599	611
Goodwill	809	809
Other assets, net of allowances of $43 at March 31, 2024 and December 31, 2023.	1,887	1,805
Total assets	35,190	35,131
Current liabilities
Current portion of long-term debt	1,643	1,720
Current portion of operating lease liabilities	63	65
Accounts payable	876	792
Accrued expenses and other liabilities	1,236	1,478
Derivative financial instruments	47	35
Customer deposits	6,040	5,311
Total current liabilities	9,905	9,401
Long-term debt	18,876	19,732
Long-term operating lease liabilities	603	613
Other long-term liabilities	481	486
Total liabilities	29,865	30,232
Shareholders’ equity
Preferred stock ($0.01 par value; 20,000,000 shares authorized; none outstanding)	0	0
Common stock ($0.01 par value; 500,000,000 shares authorized; 285,814,489 and 284,672,386 shares issued, March 31, 2024 and December 31, 2023, respectively)	3	3
Paid-in capital	7,496	7,474
Retained earnings (accumulated deficit)	350	(10)
Accumulated other comprehensive loss	(617)	(674)
Treasury stock (28,468,430 and 28,248,125 common shares at cost, March 31, 2024 and December 31, 2023, respectively)	(2,081)	(2,069)
Total shareholders’ equity attributable to Royal Caribbean Cruises Ltd.	5,151	4,724
Noncontrolling Interests	174	175
Total shareholders’ equity	5,325	4,899
Total liabilities and shareholders’ equity	$ 35,190	$ 35,131

XML

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Trade and other receivables, allowance for credit loss	$ 9	$ 7
Other assets, allowance for credit loss	$ 43
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	20,000,000	20,000,000
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	500,000,000	500,000,000
Common stock, shares issued (in shares)	285,814,489	284,672,386
Treasury stock, common shares (in shares)	28,468,430	28,248,125

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Operating Activities
Net Income (Loss)	$ 364	$ (48)
Adjustments:
Depreciation and amortization	387	360
Net deferred income tax benefit	0	(11)
Gain (loss) on derivative instruments not designated as hedges	35	(3)
Share-based compensation expense	45	26
Equity investment income	(41)	(20)
Amortization of debt issuance costs, discounts and premiums	26	30
Loss on extinguishment of debt	116	13
Changes in operating assets and liabilities:
(Increase) decrease in trade and other receivables, net	(57)	123
Decrease in inventories	12	3
Increase in prepaid expenses and other assets	(80)	(78)
Increase in accounts payable trade	78	57
Decrease in accrued expenses and other liabilities	(238)	(261)
Increase in customer deposits	729	1,103
Other, net	(48)	16
Net cash provided by operating activities	1,328	1,310
Investing Activities
Purchases of property and equipment	(242)	(252)
Cash received on settlement of derivative financial instruments	0	5
Cash paid on settlement of derivative financial instruments	(35)	(6)
Investments in and loans to unconsolidated affiliates	(9)	0
Cash received on loans from unconsolidated affiliates	5	5
Other, net	(15)	14
Net cash used in investing activities	(296)	(234)
Financing Activities
Debt proceeds	2,179	705
Debt issuance costs	(19)	(27)
Repayments of debt	(3,107)	(2,664)
Premium on repayment of debt	(104)	0
Proceeds from sale of noncontrolling interest	0	209
Other, net	(40)	(7)
Net cash used in financing activities	(1,091)	(1,784)
Effect of exchange rate changes on cash and cash equivalents	(1)	0
Net decrease in cash and cash equivalents	(60)	(708)
Cash and cash equivalents at beginning of period	497	1,935
Cash and cash equivalents at end of period	437	1,227
Cash paid during the period for:
Interest, net of amount capitalized	411	389
Non-cash Investing Activities
Purchase of property and equipment included in accounts payable and accrued expenses and other liabilities	$ 44	$ 19

XML

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Millions	Total	Common Stock	Paid-in Capital	Retained Earnings (Accumulated Deficit)	Accumulated Other Comprehensive Loss	Treasury Stock	Noncontrolling Interest
Beginning balance at Dec. 31, 2022	$ 2,870	$ 3	$ 7,285	$ (1,707)	$ (643)	$ (2,068)
Increase (Decrease) in Stockholders' Equity
Activity related to employee stock plans	21		21
Changes related to cash flow derivative hedges	(32)				(32)
Change in defined benefit plans	4				4
Foreign currency translation adjustments	(7)				(7)
Purchase of treasury stock	(1)					(1)
Sale of noncontrolling interest	219		45				$ 174
Net Income (Loss)	(48)			(48)
Ending balance at Mar. 31, 2023	3,026	3	7,351	(1,755)	(678)	(2,069)	174
Beginning balance at Dec. 31, 2023	4,899	3	7,474	(10)	(674)	(2,069)	175
Increase (Decrease) in Stockholders' Equity
Activity related to employee stock plans	22		22
Changes related to cash flow derivative hedges	44				44
Change in defined benefit plans	9				9
Foreign currency translation adjustments	4				4
Purchase of treasury stock	(12)					(12)
Net Income attributable to noncontrolling interest	4						4
Dividends from noncontrolling interest	(5)						(5)
Net Income (Loss)	360			360
Ending balance at Mar. 31, 2024	$ 5,325	$ 3	$ 7,496	$ 350	$ (617)	$ (2,081)	$ 174

XML

General

3 Months Ended

Mar. 31, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

General

Note 1. General

Description of Business 

We are a global cruise company. We own and operate three global cruise brands: Royal Caribbean International, Celebrity Cruises and Silversea Cruises (collectively, our "Global Brands"). We also own a 50% joint venture interest in TUI Cruises GmbH ("TUIC"), which operates the German brands TUI Cruises and Hapag-Lloyd Cruises (collectively, our "Partner Brands"). We account for our investments in our Partner Brands under the equity method of accounting. Together, our Global Brands and our Partner Brands have a combined fleet of 65 ships as of March 31, 2024. Our ships offer a selection of worldwide itineraries that call on more than 1,000 destinations in over 120 countries on all seven continents.

Basis for Preparation of Consolidated Financial Statements

The unaudited consolidated financial statements are presented pursuant to the rules and regulations of the Securities and Exchange Commission. In our opinion, these statements include all adjustments necessary for a fair statement of the results of the interim periods reported herein. Adjustments consist only of normal recurring items, except for any items discussed in the notes below. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted as permitted by such Securities and Exchange Commission rules and regulations. Estimates are required for the preparation of financial statements in accordance with these principles. Actual results could differ from these estimates. Refer to Note 2. Summary of Significant Accounting Policies in this Quarterly Report on Form 10-Q and in our Annual Report on Form 10-K for the year ended December 31, 2023 for a discussion of our significant accounting policies. The Company has changed its presentation from thousands to millions and, as a result, any necessary rounding adjustments have been made to prior period disclosed amounts.

All significant intercompany accounts and transactions are eliminated in consolidation. We consolidate entities over which we have control, usually evidenced by a direct ownership interest of greater than 50%, and variable interest entities where we are determined to be the primary beneficiary. Refer to Note 5. Investments and Other Assets for further information regarding our variable interest entities. For affiliates we do not control but over which we have significant influence on financial and operating policies, usually evidenced by a direct ownership interest from 20% to 50%, the investment is accounted for using the equity method.

XML

Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2024

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note 2. Summary of Significant Accounting Policies

Recent Accounting Pronouncements

In August 2023, the FASB issued ASU No. 2023-05, Business Combinations - Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement. This ASU provides guidance requiring a joint venture to initially measure all contributions received upon its formation at fair value. The guidance is intended to provide users of joint venture financial statements with more decision-useful information. This ASU is effective for joint venture entities with a formation date on or after January 1, 2025 on a prospective basis. Early adoption is permitted, and joint ventures formed prior to the adoption date

may elect to apply the new guidance retrospectively back to their original formation date. We are currently evaluating the impact of the new guidance on our consolidated financial statements.

In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This ASU requires enhanced disclosures about significant segment expenses and other segment items and requires companies to disclose all annual disclosures about segments in interim periods. This ASU also requires public entities with a single reportable segment to provide all the disclosures required by the amendments in this ASU and all existing segment disclosures in Topic 280. The amendments in this ASU are intended to improve financial reporting by requiring disclosure of incremental segment information on an annual and interim basis for all public entities to enable investors to develop more decision-useful financial analyses. The amendments in this ASU are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted and the amendments should be applied retrospectively to all periods presented. We are currently evaluating the impact of the new guidance on our consolidated financial statements and related disclosures.

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The new guidance is intended to enhance the transparency and decision usefulness of income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. This ASU is effective for annual periods beginning after December 15, 2024 on a prospective basis. Early adoption and retrospective application is permitted. We are currently evaluating the impact of the new guidance on our consolidated financial statements and related disclosures.

XML

Revenue

3 Months Ended

Mar. 31, 2024

Revenue from Contract with Customer [Abstract]

Revenue

Note 3. Revenue

Revenue Recognition

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

The majority of our revenues are derived from passenger cruise contracts which are reported within Passenger ticket revenues in our consolidated statements of comprehensive income (loss). Our performance obligation under these contracts is to provide a cruise vacation in exchange for the ticket price. We receive payment before we satisfy this performance obligation and recognize revenue over the duration of each cruise, which generally ranges from three to 28 nights.

Passenger ticket revenues include charges to our guests for port costs that vary with passenger head counts. These types of port costs, along with port costs that do not vary by passenger head counts, are included in our cruise operating expenses. The amounts of port costs charged to our guests and included within Passenger ticket revenues on a gross basis were $242 million and $203 million for the quarters ended March 31, 2024 and 2023, respectively.

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

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

Disaggregated Revenues

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

	Quarter Ended March 31,
	2024		2023
Revenues by itinerary
North America (1)	$	2,690	$	2,193
Asia/Pacific	506		333
Europe	21		2
Other regions (2)	322		214
Total revenues by itinerary	3,539		2,742
Other revenues (3)	189		144
Total revenues	$	3,728	$	2,886

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

(2) Includes seasonality impacted itineraries primarily in South and Latin American countries.

(3) Includes revenues primarily related to cancellation fees, vacation protection insurance, casino operations, pre- and post-cruise tours and fees for operating certain port facilities. Amounts also include revenues related to procurement and management related services we perform on behalf of our unconsolidated affiliates. Refer to Note 5. Investments and Other Assets for more information on our unconsolidated affiliates.

Passenger ticket revenues are attributed to geographic areas based on where the reservation originates. For the quarters ended March 31, 2024 and 2023, our guests were sourced from the following areas:

	Quarter Ended March 31,
	2024		2023
Passenger ticket revenues:
United States	73	%	76	%
All other countries (1)	27	%	24	%

(1)No other individual country's revenue exceeded 10% for the quarters ended March 31, 2024 and 2023.

Customer Deposits and Contract Liabilities

Our payment terms generally require an upfront deposit to confirm a reservation, with the balance due prior to the cruise. Deposits received on sales of passenger cruises are initially recorded as Customer deposits in our consolidated balance sheets and subsequently recognized as passenger ticket revenues or onboard revenues during the duration of the cruise. ASC 606, Revenues from Contracts with Customers, defines a “contract liability” as an entity’s obligation to transfer goods or services to a customer for which the entity has received consideration from the customer. We do not consider customer deposits to be a contract liability until the customer no longer retains the unilateral right, resulting from the passage of time, to cancel such customer's reservation and receive a full refund. Customer deposits presented in our consolidated balance sheets include contract liabilities of $2.9 billion and $2.6 billion as of March 31, 2024 and December 31, 2023, respectively.

During the pandemic we provided flexibility to guests with bookings on sailings that were cancelled by allowing guests to receive future cruise credits (“FCCs”). As of March 31, 2024, our customer deposit balance includes approximately $317 million of unredeemed FCCs. Our FCCs are not refundable and do not have expiration dates. Based upon our analysis of historical redemption experience, we believe a portion of our FCCs are not probable of being used in future periods. Based on our current estimates, we recognized an immaterial amount of FCC breakage revenue during the quarter ended March 31, 2024. We will continue to monitor changes in redemption behavior and estimate and record revenue associated with breakage when the likelihood of the customer exercising their remaining rights becomes remote.

Contract Receivables and Contract Assets

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

Our credit card processors agreements require us, under certain circumstances, to maintain a reserve that can be satisfied by posting collateral. As of March 31, 2024, none of our credit card processors required us to maintain a reserve.

We have contract assets that are conditional rights to consideration for satisfying the construction services performance obligations under a service concession arrangement. As of March 31, 2024 and December 31, 2023, our contract assets were $166 million and $167 million, respectively, and were included within Other assets in our consolidated balance sheets. Given the short duration of our cruises and our collection terms, we do not have any other significant contract assets.

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

Prepaid travel advisor commissions and prepaid credit and debit card fees are an incremental cost of obtaining contracts with customers that we recognize as an asset and include within Prepaid expenses and other assets in our consolidated balance sheets. Prepaid travel advisor commissions and prepaid credit and debit card fees were $293 million as of March 31, 2024 and $257 million as of December 31, 2023. Our prepaid travel advisor commissions and prepaid credit and debit card fees are recognized at the time of revenue recognition or at the time of voyage cancellation, and are reported primarily within Commissions, transportation and other in our consolidated statements of comprehensive income (loss).

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Earnings (Loss) Per Share

3 Months Ended

Mar. 31, 2024

Earnings Per Share [Abstract]

Earnings (Loss) Per Share

Note 4. Earnings (Loss) Per Share

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

	Quarter Ended March 31,
	2024		2023
Net Income (Loss) attributable to Royal Caribbean Cruises Ltd. for basic earnings (loss) per share	$	360	$	(48)
Add convertible notes interest	19		—
Net Income (Loss) attributable to Royal Caribbean Cruises Ltd. for diluted earnings (loss) per share	379		(48)
Weighted-average common shares outstanding	257		255
Dilutive effect of stock-based awards	1		—
Dilutive effect of convertible notes	23		—
Diluted weighted-average shares outstanding	281		255
Basic earnings (loss) per share	$	1.40	$	(0.19)
Diluted earnings (loss) per share	$	1.35	$	(0.19)

There were no antidilutive shares for the quarter ended March 31, 2024, compared to 30,994,718 antidilutive shares from our stock-based awards and convertible notes for the quarter ended March 31, 2023

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Investments and Other Assets

3 Months Ended

Mar. 31, 2024

Other Assets [Abstract]

Investments and Other Assets

Note 5. Investments and Other Assets

A Variable Interest Entity (“VIE”) is an entity in which the equity investors have not provided enough equity to finance the entity’s activities or the equity investors: (1) cannot directly or indirectly make decisions about the entity’s activities through their voting rights or similar rights; (2) do not have the obligation to absorb the expected losses of the entity; (3) do not have the right to receive the expected residual returns of the entity; or (4) have voting rights that are not proportionate to their economic interests and the entity’s activities involve or are conducted on behalf of an investor with a disproportionately small voting interest. We hold equity interests in ventures related to our cruise operations. We account for the majority of these investments as either an equity method investment or a controlled subsidiary.

Effective March 31, 2023, we closed on the partnership agreement with iCON Infrastructure Partners VI, L.P. ("iCON"). This partnership will own, develop, and manage cruise terminal facilities and infrastructure in key ports of call, initially including several development projects in Italy and Spain. As part of the transaction with iCON we also sold 80% of the entity which owns our terminal at PortMiami. Refer below to equity method investments and controlled subsidiaries for further information on the transaction. In addition, the partnership will pursue additional port infrastructure developments, including future plans to own, develop, and manage an infrastructure project in the U.S. Virgin Islands.

Unconsolidated investments ("equity method investments")

We have determined that TUI Cruises GmbH ("TUIC"), our 50%-owned joint venture, which operates the brands TUI Cruises and Hapag-Lloyd Cruises, is a VIE. We have determined that we are not the primary beneficiary of TUIC. We believe that the power to direct the activities that most significantly impact TUIC’s economic performance is shared between ourselves and TUI AG, our joint venture partner. All the significant operating and financial decisions of TUIC require the consent of both parties, which we believe creates shared power over TUIC. Accordingly, we do not consolidate this entity and account for this investment under the equity method of accounting.

As of March 31, 2024, the net book value of our investment in TUIC was $678 million, primarily consisting of $594 million in equity and a loan of €67 million, or approximately $73 million based on the exchange rate at March 31, 2024. As of December 31, 2023, the net book value of our investment in TUIC was $657 million, primarily consisting of $566 million in equity and a loan of €71 million, or approximately $79 million based on the exchange rate at December 31, 2023. The loan, which was made in connection with the sale of Splendour of the Seas in April 2016, accrues interest at a rate of 6.25% per annum and is payable over 10 years. This loan is 50% guaranteed by TUI AG and is secured by a first priority mortgage on the ship.

TUIC has various ship construction and financing agreements which include certain restrictions on each of our and TUI AG’s ability to reduce our current ownership interest in TUIC below 37.55% through May 2033. Our investment amount and outstanding term loan are substantially our maximum exposure to loss in connection with our investment in TUIC.

We have determined that Grand Bahama Shipyard Ltd. ("Grand Bahama"), a ship repair and maintenance facility in which we have a 40% noncontrolling interest, is a VIE. This facility serves cruise and cargo ships, oil and gas tankers and offshore units. We utilize this facility, among other ship repair facilities, for our regularly scheduled drydocks and certain emergency repairs as may be required. We have determined that we are not the primary beneficiary of this facility as we do not have the power to direct the activities that most significantly impact the facility’s economic performance. Accordingly, we do not consolidate this entity and account for this investment under the equity method of accounting.

During the second half of 2023, we formed a 50%-owned joint venture with the other 40% shareholder of Grand Bahama to operate Floating Docks S. DE RL. (“Floating Docks”). Floating Docks will construct two floating drydocks, with delivery dates expected in 2025 and 2026, that will be leased to Grand Bahama and allow it to service the entire range of cruise ships in operation and under construction, as well as much of the world’s commercial shipping fleet. We and our joint venture partner have each guaranteed 50% of certain installment payments payable by Floating Docks under the drydock and related construction contracts, which are contingent on the achievement of certain construction milestones, bringing our total payment guarantees to $59 million as of March 31, 2024. Our investment in Floating Docks, including loans, is immaterial to our consolidated financial statements as of March 31, 2024.

We have determined that Floating Docks is a VIE. We have determined that we are not the primary beneficiary of Floating Docks since we believe that the power to direct the activities that most significantly impact Floating Docks' economic performance is shared between ourselves and our joint venture partner. All the significant operating and financial decisions of Floating Docks require the consent of both parties which we believe creates shared power over Floating Docks. Accordingly, we do not consolidate this entity and account for this investment under the equity method of accounting.

As part of the transaction with iCON, we sold our controlling interest in two Italian entities for an immaterial amount of net proceeds and recognized an immaterial gain on the sale. At closing, we have determined that the partnership and both Italian entities are VIE's. These entities in Italy represent development projects to own, develop, and manage cruise terminal facilities in key ports of call. We have determined that we are not the primary beneficiary for either of these entities as we do not have the power to direct the activities that most significantly impact the economic performance. Accordingly, we do not consolidate these entities and account for these investments under the equity method of accounting.

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

	Quarter Ended March 31,
	2024		2023
Share of equity income from investments	$	41	$	20

	As of March 31, 2024		As of December 31, 2023
Total notes receivable due from equity investments	$	107	$	105
Less-current portion (1)	18		19
Long-term portion (2)	$	89	$	86

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

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

Consolidated investments ("controlled subsidiaries")

As part of the transaction with iCON, we sold an 80% interest in the entity which owns our terminal at PortMiami for $209 million and retained a 20% minority interest, effective March 31, 2023. We also sold a noncontrolling interest in another entity which is developing a port project in Spain for an immaterial amount. We have determined that both of these entities are VIEs, and we are the primary beneficiary as we have the power to direct the activities that most significantly impact the facility’s economic performance. Accordingly, we continue to consolidate both entities. The cash consideration received for the sale of the PortMiami terminal company, net of transaction costs, was allocated between paid-in capital and noncontrolling interest using the net book value of our investment in the PortMiami terminal, as presented in the statement of shareholders' equity.

Other Assets

Credit Losses

We reviewed our receivables for credit losses in connection with the preparation of our financial statements for the quarter ended March 31, 2024. In evaluating the allowance, management considered factors such as historical loss experience, the types of loans and the amount of loans in the loan portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, peer group information and prevailing economic conditions. Our credit loss allowance as of March 31, 2024 and 2023 primarily relates to credit losses recognized on notes receivable for the previous sale of certain property and equipment of $43 million and $63 million, respectively, which were originated in 2015 and 2020.

The following table summarizes our credit loss allowance related to receivables (in millions):

	Three Months Ended March 31,
	2024		2023
Balance, beginning of period	$	49	$	83
Credit loss (recovery), net	2		(7)
Write-offs	—		(2)
Balance, end of period	$	51	$	74

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Debt

3 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

Debt

Note 6. Debt

Debt consists of the following (in millions):

	Interest Rate (1)	Maturities Through	As of March 31, 2024		As of December 31, 2023
Fixed rate debt:
Unsecured senior notes	3.70% to 9.25%	2026 - 2032	$	7,898	$	7,899
Secured senior notes	8.25%	2029	1,000		1,000
Unsecured term loans	1.28% to 5.89%	2027 - 2035	6,420		6,569
Convertible notes	6.00%	2025	1,150		1,150
Total fixed rate debt			16,468		16,618
Variable rate debt:
Unsecured revolving credit facilities (2)	6.76% to 7.48%	2025 - 2028	304		899
USD unsecured term loan	6.05% to 9.95%	2024 - 2037	3,555		3,666
Euro unsecured term loan	5.00% to 6.14%	2024 - 2028	352		443
Total variable rate debt			4,211		5,008
Finance lease liabilities			363		369
Total debt (3)			21,042		21,995
Less: unamortized debt issuance costs			(523)		(543)
Total debt, net of unamortized debt issuance costs			20,519		21,452
Less—current portion			(1,643)		(1,720)
Long-term portion			$	18,876	$	19,732

(1) Interest rates based on outstanding loan balance as of March 31, 2024, and for variable rate debt include either EURIBOR or Term SOFR plus the applicable margin.

(2) Advances under our unsecured revolving credit facilities accrue interest at Term SOFR plus a 0.10% credit adjustment spread plus an interest rate margin primarily at 1.33%. Based on applicable Term SOFR rates, as of March 31, 2024, the maximum interest rate under the unsecured credit facilities was 6.76%. We also pay a facility fee primarily at 0.17% of the total commitments under such facility.

(3) At March 31, 2024 and December 31, 2023, the weighted average interest rate for total debt was 5.75% and 6.06%, respectively.

Unsecured revolving credit facilities

As of March 31, 2024 our aggregate revolving credit capacity is $3.6 billion of which $1.8 billion of the commitments are scheduled to mature in October 2026, $1.8 billion of the commitments are scheduled to mature in October 2028, and the remaining $77 million of commitments are scheduled to mature in April 2025. As of March 31, 2024, we had undrawn capacity of $3.3 billion under our unsecured revolving credit facilities.

In March 2024, we issued $1.25 billion of senior unsecured notes (the "notes") due in 2032 for net proceeds of approximately $1.24 billion. Interest accrues on the notes at a fixed rate of 6.25% per annum and is payable semi-annually in arrears. The proceeds from this notes issuance, together with cash on hand, were used to redeem all of the outstanding $1.25 billion aggregate principal amount of 11.625% Senior Notes due 2027. The repayment resulted in a loss on extinguishment of debt of $116 million that was recognized within Interest expense, net of interest capitalized within our consolidated statements of comprehensive income (loss) for the quarter ended March 31, 2024.

Export credit agency guarantees

Except for the term loans we incurred to acquire Celebrity Flora and Silver Moon, all of our unsecured ship financing term loans are guaranteed by the export credit agency in the respective country in which the ship is constructed. For the majority of the loans as of March 31, 2024, we pay to the applicable export credit agency, depending on the financing agreement, an upfront fee of 2.35% to 5.48% of the maximum loan amount in consideration for these guarantees. We amortize

the fees that are paid upfront over the life of the loan. We classify these fees within Amortization of debt issuance costs, discounts and premiums in our consolidated statements of cash flows. Prior to the loan being drawn, we present these fees within Other assets in our consolidated balance sheets. Once the loan is drawn, such fees are classified as a discount to the related loan, or contra-liability account, within Current portion of long-term debt or long-term debt.

Debt covenants

Our revolving credit facilities, the majority of our term loans, and certain of our credit card processing agreements, contain covenants that require us, among other things, to maintain a fixed charge coverage ratio, limit our net debt-to-capital ratio, maintain minimum liquidity, and under certain facilities, to maintain a minimum stockholders' equity. As of March 31, 2024, our credit facility amendments require us to prepay outstanding deferred amounts of $839 million, if we elect to pay dividends or complete share repurchases. As of March 31, 2024, we were in compliance with our debt covenants and we estimate we will be in compliance for the next twelve months.

The following is a schedule of annual maturities on our total debt, including finance leases, as of March 31, 2024 for each of the next five years (in millions):

Year	As of March 31, 2024 (1)
Remainder of 2024	$	1,390
2025	2,628
2026	3,045
2027	2,509
2028	3,267
Thereafter	8,203
	$	21,042

(1)    Debt denominated in other currencies is calculated based on the applicable exchange rate at March 31, 2024.

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Leases

3 Months Ended

Mar. 31, 2024

Leases [Abstract]

Leases

Note 7. Leases

Operating Leases

Our operating leases primarily relate to preferred berthing arrangements, real estate, and shipboard equipment which are included within Operating lease right-of-use assets, and Long-term operating lease liabilities with the current portion of the liability included within Current portion of operating lease liabilities in our consolidated balance sheets as of March 31, 2024 and December 31, 2023. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet. We recognize lease expense for these leases on a straight-line basis over the lease term.

The company's preferred berthing agreement with Miami-Dade County ("County") includes the development plans for the County to finance the construction of a new and improved cruise Terminal G at PortMiami. The aggregate amount of the operating lease liabilities recorded for this berthing agreement was $167 million as of March 31, 2024 and December 31, 2023. There will be future remeasurements as the County completes several construction milestones throughout the term of the extended lease. The most significant of which will be for Terminal G, which will include a remeasurement of the operating lease in 2027 or later, when the County satisfies substantial completion, as the minimum lease payments will increase to approximately $55 million per year, with expected 3% annual increases thereafter.

For some of our real estate leases and berthing agreements, we do have the option to extend our current lease term. For those lease agreements with renewal options, the renewal periods for real estate leases primarily range from one to 10 years and the renewal periods for berthing agreements primarily range from one to 20 years. Generally, we do not include renewal options as a component of our present value calculation for berthing agreements. However, for certain real estate leases, we include them.

As most of our leases do not provide an implicit rate, we use our incremental borrowing rate in determining the present value of lease payments. We estimate our incremental borrowing rates based on Term SOFR and U.S. Treasury note rates corresponding to lease terms increased by the Company’s credit risk spread and reduced by the estimated impact of collateral. In addition, we have lease agreements with lease and non-lease components, which are generally accounted for separately. However, for berthing agreements, we account for the lease and non-lease components as a single lease component.

Finance Leases

Our finance leases primarily relate to buildings and surrounding land located at our Miami headquarters and our lease for Silver Dawn. Finance leases are included within Property and Equipment, net and Long-term debt with the current portion of the liability included within Current portion of long-term debt in our consolidated balance sheets as of March 31, 2024 and December 31, 2023.

The Company's master lease agreement (“Master Lease”) with Miami-Dade County related to the buildings and surrounding land located at our Miami headquarters is classified as a finance lease in accordance with ASC 842, Leases. The Master Lease includes two five-year options to extend the lease, which we are reasonably certain to exercise. In November 2023, we executed a modification to the Master Lease agreement to extend its expiration from 2076 to 2077 after coming to an agreement with Miami-Dade County on the financing plans to finalize the development of the buildings and land. The modification of the Master Lease did not change the classification of the lease. The total aggregate amount of the finance lease liabilities recorded for this Master Lease was $105 million and $104 million as of March 31, 2024 and December 31, 2023, respectively. The development of the new campus buildings are expected to be completed in 2026, and the lease components will be recorded within our consolidated financial statements upon commencement.

Silversea Cruises operates Silver Dawn under a sale-leaseback agreement with a bargain purchase option at the end of the 15-year lease term. Due to the bargain purchase option at the end of the lease term in 2036, whereby Silversea Cruises is reasonably certain of obtaining ownership of the ship, Silver Dawn is accounted for as a finance lease. The lease includes other purchase options beginning in year three, none of which are reasonably certain of being exercised at this time. The aggregate amount of finance lease liabilities recorded for this ship was $241 million and $246 million as of March 31, 2024 and December 31, 2023, respectively. The lease payments on the Silver Dawn are subject to adjustments based on the Term SOFR rate.

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

	Consolidated Statement of Comprehensive Income (Loss) Classification	Quarter Ended March 31, 2024		Quarter Ended March 31, 2023
Lease costs:
Operating lease costs	Commission, transportation and other	$	71	$	55
Operating lease costs	Other operating expenses	4		6
Operating lease costs	Marketing, selling and administrative expenses	4		5
Financial lease costs:
Amortization of right-of-use-assets	Depreciation and amortization expenses	3		6
Interest on lease liabilities	Interest expense, net of interest capitalized	8		8
Total lease costs		$	90	$	80

In addition, certain of our berthing agreements include variable lease costs based on the number of passengers berthed. During the quarters ended March 31, 2024, and 2023 we had $51 million and $38 million of variable lease costs recorded within Commission, transportation and other in our consolidated statement of comprehensive income (loss), respectively. These variable lease costs are included within the balances presented above.

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

	As of March 31, 2024		As of December 31, 2023
Weighted average of the remaining lease term in years
Operating leases	20.02		19.43
Finance leases	24.06		23.92
Weighted average discount rate
Operating leases	7.55	%	7.53	%
Finance leases	5.84	%	5.83	%

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

	Three Months Ended March 31, 2024		Three Months Ended March 31, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	99	$	36
Operating cash flows from finance leases	8		8
Financing cash flows from finance leases	$	6	$	14

As of March 31, 2024, maturities related to lease liabilities were as follows (in millions):

Year	Operating Leases		Finance Leases
Remainder of 2024	$	84	$	35
2025	101		45
2026	91		39
2027	72		38
2028	72		37
Thereafter	1,062		684
Total lease payments	1,482		878
Less: Interest	(816)		(515)
Present value of lease liabilities	$	666	$	363

Leases

Note 7. Leases

Operating Leases

Our operating leases primarily relate to preferred berthing arrangements, real estate, and shipboard equipment which are included within Operating lease right-of-use assets, and Long-term operating lease liabilities with the current portion of the liability included within Current portion of operating lease liabilities in our consolidated balance sheets as of March 31, 2024 and December 31, 2023. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet. We recognize lease expense for these leases on a straight-line basis over the lease term.

The company's preferred berthing agreement with Miami-Dade County ("County") includes the development plans for the County to finance the construction of a new and improved cruise Terminal G at PortMiami. The aggregate amount of the operating lease liabilities recorded for this berthing agreement was $167 million as of March 31, 2024 and December 31, 2023. There will be future remeasurements as the County completes several construction milestones throughout the term of the extended lease. The most significant of which will be for Terminal G, which will include a remeasurement of the operating lease in 2027 or later, when the County satisfies substantial completion, as the minimum lease payments will increase to approximately $55 million per year, with expected 3% annual increases thereafter.

For some of our real estate leases and berthing agreements, we do have the option to extend our current lease term. For those lease agreements with renewal options, the renewal periods for real estate leases primarily range from one to 10 years and the renewal periods for berthing agreements primarily range from one to 20 years. Generally, we do not include renewal options as a component of our present value calculation for berthing agreements. However, for certain real estate leases, we include them.

As most of our leases do not provide an implicit rate, we use our incremental borrowing rate in determining the present value of lease payments. We estimate our incremental borrowing rates based on Term SOFR and U.S. Treasury note rates corresponding to lease terms increased by the Company’s credit risk spread and reduced by the estimated impact of collateral. In addition, we have lease agreements with lease and non-lease components, which are generally accounted for separately. However, for berthing agreements, we account for the lease and non-lease components as a single lease component.

Finance Leases

Our finance leases primarily relate to buildings and surrounding land located at our Miami headquarters and our lease for Silver Dawn. Finance leases are included within Property and Equipment, net and Long-term debt with the current portion of the liability included within Current portion of long-term debt in our consolidated balance sheets as of March 31, 2024 and December 31, 2023.

The Company's master lease agreement (“Master Lease”) with Miami-Dade County related to the buildings and surrounding land located at our Miami headquarters is classified as a finance lease in accordance with ASC 842, Leases. The Master Lease includes two five-year options to extend the lease, which we are reasonably certain to exercise. In November 2023, we executed a modification to the Master Lease agreement to extend its expiration from 2076 to 2077 after coming to an agreement with Miami-Dade County on the financing plans to finalize the development of the buildings and land. The modification of the Master Lease did not change the classification of the lease. The total aggregate amount of the finance lease liabilities recorded for this Master Lease was $105 million and $104 million as of March 31, 2024 and December 31, 2023, respectively. The development of the new campus buildings are expected to be completed in 2026, and the lease components will be recorded within our consolidated financial statements upon commencement.

Silversea Cruises operates Silver Dawn under a sale-leaseback agreement with a bargain purchase option at the end of the 15-year lease term. Due to the bargain purchase option at the end of the lease term in 2036, whereby Silversea Cruises is reasonably certain of obtaining ownership of the ship, Silver Dawn is accounted for as a finance lease. The lease includes other purchase options beginning in year three, none of which are reasonably certain of being exercised at this time. The aggregate amount of finance lease liabilities recorded for this ship was $241 million and $246 million as of March 31, 2024 and December 31, 2023, respectively. The lease payments on the Silver Dawn are subject to adjustments based on the Term SOFR rate.

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

	Consolidated Statement of Comprehensive Income (Loss) Classification	Quarter Ended March 31, 2024		Quarter Ended March 31, 2023
Lease costs:
Operating lease costs	Commission, transportation and other	$	71	$	55
Operating lease costs	Other operating expenses	4		6
Operating lease costs	Marketing, selling and administrative expenses	4		5
Financial lease costs:
Amortization of right-of-use-assets	Depreciation and amortization expenses	3		6
Interest on lease liabilities	Interest expense, net of interest capitalized	8		8
Total lease costs		$	90	$	80

In addition, certain of our berthing agreements include variable lease costs based on the number of passengers berthed. During the quarters ended March 31, 2024, and 2023 we had $51 million and $38 million of variable lease costs recorded within Commission, transportation and other in our consolidated statement of comprehensive income (loss), respectively. These variable lease costs are included within the balances presented above.

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

	As of March 31, 2024		As of December 31, 2023
Weighted average of the remaining lease term in years
Operating leases	20.02		19.43
Finance leases	24.06		23.92
Weighted average discount rate
Operating leases	7.55	%	7.53	%
Finance leases	5.84	%	5.83	%

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

	Three Months Ended March 31, 2024		Three Months Ended March 31, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	99	$	36
Operating cash flows from finance leases	8		8
Financing cash flows from finance leases	$	6	$	14

As of March 31, 2024, maturities related to lease liabilities were as follows (in millions):

Year	Operating Leases		Finance Leases
Remainder of 2024	$	84	$	35
2025	101		45
2026	91		39
2027	72		38
2028	72		37
Thereafter	1,062		684
Total lease payments	1,482		878
Less: Interest	(816)		(515)
Present value of lease liabilities	$	666	$	363

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2024

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 8. Commitments and Contingencies

Ship Purchase Obligations

Our future capital commitments consist primarily of new ship orders. As of March 31, 2024, the dates that the ships on order by our Global and Partner Brands are expected to be delivered, subject to change in the event of construction delays, and their approximate berths are as follows:

Ship	Shipyard	Expected delivery	Approximate Berths
Royal Caribbean International —
Oasis-class:
Utopia of the Seas	Chantiers de l'Atlantique	2nd Quarter 2024	5,700
Icon-class:
Star of the Seas	Meyer Turku Oy	3rd Quarter 2025	5,600
Unnamed	Meyer Turku Oy	2nd Quarter 2026	5,600
Celebrity Cruises —
Edge-class:
Celebrity Xcel	Chantiers de l'Atlantique	4th Quarter 2025	3,250
Silversea Cruises —
Evolution-class:
Silver Ray	Meyer Werft	2nd Quarter 2024	730
TUI Cruises (50% joint venture) —
Mein Schiff 7	Meyer Turku Oy	2nd Quarter 2024	2,900
Mein Schiff Relax	Fincantieri	4th Quarter 2024	4,100
Unnamed	Fincantieri	2nd Quarter 2026	4,100
Total Berths			31,980

In addition, in February 2024, we entered into an agreement with Chantiers de l’Atlantique to build an additional Oasis class ship for delivery in 2028, which is contingent upon completion of certain conditions precedent including financing.

As of March 31, 2024, the aggregate cost of our ships on order presented in the table above, not including any ships on order by our Partner Brands, was approximately $8.1 billion, of which we had deposited $748 million as of such date. Refer to Note 11. Fair Value Measurements and Derivative Instruments for further information.

Litigation

As previously reported, a lawsuit was filed against us in August 2019 in the U.S. District Court for the Southern District of Florida (the "Court") under Title III of the Cuban Liberty and Democratic Solidarity Act, also known as the Helms-Burton Act. The complaint filed by Havana Docks Corporation ("Havana Docks Action") alleges it holds an interest in the Havana Cruise Port Terminal, was expropriated by the Cuban government. The complaint further alleges that we trafficked in the terminal by embarking and disembarking passengers at these facilities. The plaintiff seeks all available statutory remedies, including the value of the expropriated property, plus interest, treble damages, attorneys’ fees and costs.

The Court entered final judgment in December 2022 in favor of the plaintiff and awarded damages and attorneys' fees to the plaintiff in the aggregate amount of approximately $112 million. We have appealed the judgment to the United States Court of Appeals for the 11th Circuit. We believe we have meritorious grounds for and intend to vigorously pursue our appeal. During the fourth quarter of 2022, we recorded a charge of approximately $130.0 million to Other (expense) income within our consolidated statements of comprehensive income (loss) related to the Havana Docks Action, including post-judgment interest and related legal defense costs and bonding fees.

In addition, we are routinely involved in claims typical within the cruise vacation industry. The majority of these claims are covered by insurance. We believe the outcome of such claims, net of expected insurance recoveries, will not have a material adverse impact on our financial condition or results of operations and cash flows.

Other

Some of the contracts that we enter into include indemnification provisions that obligate us to make payments to the counterparty if certain events occur. These contingencies generally relate to changes in taxes, increased lender capital costs and other similar costs. The indemnification clauses are often standard contractual terms and are entered into in the normal course of business. There are no stated or notional amounts included in the indemnification clauses and we are not able to estimate the maximum potential amount of future payments, if any, under these indemnification clauses. We have not been required to make any payments under such indemnification clauses in the past and, under current circumstances, we do not believe an indemnification in any material amount is probable.

If any person acquires ownership of more than 50% of our common stock or, subject to certain exceptions, during any 24-month period, a majority of our board of directors is no longer comprised of individuals who were members of our board of directors on the first day of such period, we may be obligated to prepay indebtedness outstanding under our credit facilities, which we may be unable to replace on similar terms. Our public debt securities also contain change of control provisions that would be triggered by a third-party acquisition of greater than 50% of our common stock coupled with a ratings downgrade. If this were to occur, it would have an adverse impact on our liquidity and operations.

XML

Shareholders' Equity

3 Months Ended

Mar. 31, 2024

Equity [Abstract]

Shareholders' Equity

Note 9. Shareholders' Equity

Dividends

We did not declare any dividends during the quarters ended March 31, 2024 and 2023. We were previously restricted under certain of our credit facilities from paying dividends while waivers to the financial covenants within such facilities were in effect. While the waivers have now expired, in the event we declare a dividend, we will need to repay the principal amounts deferred under our export credit facilities.

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Changes in Accumulated Other Comprehensive Loss

3 Months Ended

Mar. 31, 2024

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

Changes in Accumulated Other Comprehensive Loss

Note 10. Changes in Accumulated Other Comprehensive Loss

The following table presents the changes in accumulated other comprehensive loss by component for the quarters ended March 31, 2024 and 2023 (in millions):

	Accumulated Other Comprehensive Loss for the Three Months Ended March 31, 2024								Accumulated Other Comprehensive Loss for the Three Months Ended March 31, 2023
	Changes related to cash flow derivative hedges		Changes in defined benefit plans		Foreign currency translation adjustments		Accumulated other comprehensive loss		Changes related to cash flow derivative hedges		Changes in defined benefit plans		Foreign currency translation adjustments		Accumulated other comprehensive loss
Accumulated comprehensive loss at beginning of the year	$	(666)	$	(2)	$	(6)	$	(674)	$	(638)	$	(8)	$	3	$	(643)
Other comprehensive income (loss) before reclassifications	56		9		4		69		(30)		4		(7)		(33)
Amounts reclassified from accumulated other comprehensive loss	(12)		—		—		(12)		(2)		—		—		(2)
Net current-period other comprehensive income (loss)	44		9		4		57		(32)		4		(7)		(35)
Ending balance	$	(622)	$	7	$	(2)	$	(617)	$	(670)	$	(4)	$	(4)	$	(678)

The following table presents reclassifications out of accumulated other comprehensive loss for the quarters ended March 31, 2024 and 2023 (in millions):

	Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income
Details About Accumulated Other Comprehensive Loss Components	Quarter Ended March 31, 2024		Quarter Ended March 31, 2023		Affected Line Item in Statements of Comprehensive Income (Loss)
Gain (loss) on cash flow derivative hedges:
Interest rate swaps	$	14	$	10	Interest expense, net of interest capitalized
Foreign currency forward contracts	(6)		(3)		Depreciation and amortization expenses
Foreign currency forward contracts	—		(1)		Other (expense) income
Fuel swaps	—		—		Other (expense) income
Fuel swaps	4		(4)		Fuel
	$	12	$	2

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Fair Value Measurements and Derivative Instruments

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

Fair Value Measurements and Derivative Instruments

Note 11. Fair Value Measurements and Derivative Instruments 

Fair Value Measurements

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

	Fair Value Measurements at March 31, 2024										Fair Value Measurements at December 31, 2023
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)	$	437	$	437	$	437	$	—	$	—	$	497	$	497	$	497	$	—	$	—
Total Assets	$	437	$	437	$	437	$	—	$	—	$	497	$	497	$	497	$	—	$	—
Liabilities:
Long-term debt (including current portion of debt)(5)	$	20,156	$	22,768	$	—	$	22,768	$	—	$	21,083	$	23,700	$	—	$	23,700	$	—
Total Liabilities	$	20,156	$	22,768	$	—	$	22,768	$	—	$	21,083	$	23,700	$	—	$	23,700	$	—

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

(2) Inputs other than quoted prices included within Level 1 that are observable for the liability, either directly or indirectly. For unsecured revolving credit facilities and unsecured term loans, fair value is determined utilizing the income valuation approach. This valuation model takes into account the contract terms of our debt such as the debt maturity and the interest rate on the debt. The valuation model also takes into account the creditworthiness of the Company. We valued our senior notes and convertible notes using a quoted market price, which is considered a Level 2 input as it is observable in the market; however, these instruments have a limited trading volume and as such this fair value estimate is not necessarily indicative of the value at which the instruments could be retired or transferred.

(3) Inputs that are unobservable. The Company did not use any Level 3 inputs as of March 31, 2024 and December 31, 2023.

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

(5) Consists of unsecured revolving credit facilities, senior notes, term loans and convertible notes. These amounts do not include our finance lease obligations.

Other Financial Instruments 

The carrying amounts of accounts receivable, accounts payable, accrued interest and accrued expenses approximate fair value as of March 31, 2024 and December 31, 2023.

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

	Fair Value Measurements at March 31, 2024								Fair Value Measurements at December 31, 2023
Description	Total		Level 1(1)		Level 2(2)		Level 3(3)		Total		Level 1(1)		Level 2(2)		Level 3(3)
Assets:
Derivative financial instruments(4)	$	173	$	—	$	173	$	—	$	144	$	—	$	144	$	—
Total Assets	$	173	$	—	$	173	$	—	$	144	$	—	$	144	$	—
Liabilities:
Derivative financial instruments(4)	$	58	$	—	$	58	$	—	$	66	$	—	$	66	$	—
Total Liabilities	$	58	$	—	$	58	$	—	$	66	$	—	$	66	$	—

(1)Inputs based on quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access. Valuation of these items does not entail a significant amount of judgment. No Level 1 inputs were used in fair value measurements of other financial instruments as of March 31, 2024 and December 31, 2023.

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

(3)Inputs that are unobservable. No Level 3 inputs were used in fair value measurements of other financial instruments as of March 31, 2024 and December 31, 2023.

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

The reported fair values are based on a variety of factors and assumptions. Accordingly, the fair values may not represent actual values of the financial instruments that could have been realized as of March 31, 2024 or December 31, 2023, or that will be realized in the future, and do not include expenses that could be incurred in an actual sale or settlement.

Nonfinancial Instruments Recorded at Fair Value on a Nonrecurring Basis

Nonfinancial instruments include items such as goodwill, indefinite-lived intangible assets, long-lived assets, right-of-use assets and equity method investments that are measured at fair value on a nonrecurring basis when events and circumstances indicate the carrying value is not recoverable. There were no material nonfinancial instruments recorded at fair value as of March 31, 2024.

Master Netting Agreements

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

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

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

	Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements
	As of March 31, 2024								As of December 31, 2023
	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 Liabilities		Cash Collateral Received		Net Amount of Derivative Assets
Derivatives subject to master netting agreements	$	173	$	(48)	$	—	$	125	$	144	$	(28)	$	—	$	116
Total	$	173	$	(48)	$	—	$	125	$	144	$	(28)	$	—	$	116
	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 Assets		Cash Collateral Pledged		Net Amount of Derivative Liabilities
Derivatives subject to master netting agreements	$	(58)	$	48	$	—	$	(10)	$	(66)	$	28	$	—	$	(38)
Total	$	(58)	$	48	$	—	$	(10)	$	(66)	$	28	$	—	$	(38)

Concentrations of Credit Risk

We monitor our credit risk associated with financial and other institutions with which we conduct significant business, and to minimize these risks, we select counterparties with credit risks acceptable to us and we seek to limit our exposure to an individual counterparty. Credit risk, including, but not limited to, counterparty nonperformance under derivative instruments, our credit facilities and new ship progress payment guarantees, is not considered significant, as we primarily conduct business with large, well-established financial institutions, insurance companies and export credit agencies many of which we have long-term relationships with and which have credit risks acceptable to us or where the credit risk is spread out among a large number of counterparties. As of March 31, 2024, we had counterparty credit risk exposure under our derivative instruments of $149 million, which was limited to the cost of replacing the contracts in the event of non-performance by the counterparties to the contracts, the majority of which are currently our lending banks. We do not anticipate nonperformance by any of our significant counterparties. In addition, we have established guidelines we follow regarding credit ratings and instrument maturities to maintain safety and liquidity. We do not normally require collateral or other security to support credit relationships; however, in certain circumstances this option is available to us.

Derivative Instruments

We are exposed to market risk attributable to changes in interest rates, foreign currency exchange rates and fuel prices. We try to mitigate these risks through a combination of our normal operating and financing activities and through the use of derivative financial instruments pursuant to our hedging practices and policies. The financial impact of these hedging instruments is primarily offset by corresponding changes in the underlying exposures being hedged. We achieve this by closely matching the notional amount, term and conditions of the derivative instrument with the underlying risk being hedged. Although certain of our derivative financial instruments do not qualify or are not accounted for under hedge accounting, our objective is not to hold or issue derivative financial instruments for trading or other speculative purposes. 

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

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

Changes in the fair value of derivatives that are designated as fair value hedges are offset against changes in the fair value of the underlying hedged assets, liabilities or firm commitments. Gains and losses on derivatives that are designated as cash flow hedges are recorded as a component of Accumulated other comprehensive loss until the underlying hedged transactions are recognized in earnings. The foreign currency transaction gain or loss of our non-derivative financial instruments and the changes in the fair value of derivatives designated as hedges of our net investment in foreign operations and investments are recognized as a component of Accumulated other comprehensive loss along with the associated foreign currency translation adjustment of the foreign operation or investment. In certain hedges of our net investment in foreign operations and investments, we exclude forward points from the assessment of hedge effectiveness and we amortize the related amounts directly into earnings.

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

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

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

Interest Rate Risk

Our exposure to market risk for changes in interest rates primarily relates to our debt obligations, including future interest payments. At March 31, 2024 and December 31, 2023, approximately 86.3% and 83.2%, respectively, of our debt was effectively fixed-rate debt, which is net of our interest rate swap agreements. We use interest rate swap agreements to modify our exposure to interest rate movements and to manage our interest expense.

We use interest rate swap agreements that effectively convert a portion of our floating-rate debt to a fixed-rate basis to manage the market risk of increasing interest rates. At March 31, 2024 and December 31, 2023, we maintained interest rate swap agreements on the following floating-rate debt instruments:

Debt Instrument	Swap Notional as of March 31, 2024 (in millions)		Maturity	Debt Floating Rate		All-in Fixed Rate as of March 31, 2024
Celebrity Reflection term loan	$	55	October 2024	Term SOFR plus	0.40%	2.88%
Quantum of the Seas term loan	184		October 2026	Term SOFR plus	1.30%	3.78%
Anthem of the Seas term loan	211		April 2027	Term SOFR plus	1.30%	3.90%
Ovation of the Seas term loan	311		April 2028	Term SOFR plus	1.00%	3.20%
Harmony of the Seas term loan (1)	281		May 2028	EURIBOR plus	1.15%	2.26%
Odyssey of the Seas term loan (2)	345		October 2032	Term SOFR plus	0.96%	3.28%
Odyssey of the Seas term loan (2)	173		October 2032	Term SOFR plus	0.96%	2.91%
	$	1,560

(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 March 31, 2024.

(2)Interest rate swap agreements hedging the term loan of Odyssey of the Seas include Term SOFR zero-floors, Term SOFR with no floors, and Overnight SOFR.

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

The notional amount of interest rate swap agreements related to outstanding debt as of March 31, 2024 and December 31, 2023 was $1.6 billion.

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 March 31, 2024, the aggregate cost of our ships on order was $8.1 billion, of which we had deposited $748 million as of such date. These amounts do not include any ships placed on order that are contingent upon completion of conditions precedent and/or financing and any ships on order by our Partner Brands. Refer to Note 8. Commitments and Contingencies, for further information on our ships on order. At March 31, 2024 and December 31, 2023, approximately 44.1% and 43.5%, respectively, of the aggregate cost of the ships under construction was exposed to fluctuations in the Euro exchange rate. Our foreign currency forward contract agreements are accounted for as cash flow or net investment hedges depending on the designation of the related hedge.

On a regular basis, we enter into foreign currency forward contracts and, from time to time, we utilize cross-currency swap agreements and collar options to minimize the volatility resulting from the remeasurement of net monetary assets and liabilities denominated in a currency other than our functional currency or the functional currencies of our foreign subsidiaries. During the first quarter of 2024 and 2023 the average notional amount of foreign currency forward contracts was approximately $1.1 billion and $1.2 billion, respectively. These instruments are not designated as hedging instruments. For the quarters ended March 31, 2024 and 2023, changes in the fair value of the foreign currency forward contracts resulted in (losses) gain of $(35) million and $4 million, respectively, which offset gains (losses) arising from the remeasurement of monetary assets and liabilities denominated in foreign currencies in those same periods of $30 million and $(11) million, respectively. These amounts were recognized in earnings within Other (expense) income in our consolidated statements of comprehensive income (loss).

The notional amount of outstanding foreign exchange contracts, excluding the forward contracts entered into to minimize remeasurement volatility, as of March 31, 2024 and December 31, 2023 was $2.9 billion.

Non-Derivative Instruments

We consider our investments in our foreign operations to be denominated in relatively stable currencies and to be of a long-term nature. We address the exposure of our investments in foreign operations by denominating a portion of our debt in our subsidiaries’ and investments’ functional currencies and designating it as a hedge of these subsidiaries and investments. We had designated debt as a hedge of our net investments primarily in TUI Cruises of €659 million, or approximately $712 million, as of March 31, 2024. As of December 31, 2023, we had designated debt as a hedge of our net investments primarily in TUI Cruises of €648 million, or approximately $716 million.

Fuel Price Risk

Our exposure to market risk for changes in fuel prices relates primarily to the consumption of fuel on our ships. We use fuel swap agreements to mitigate the financial impact of fluctuations in fuel prices.

Our fuel swap agreements are generally accounted for as cash flow hedges. In the case that our hedged forecasted fuel consumption is not probable of occurring, hedge accounting will be discontinued and the related accumulated other comprehensive gain or loss will be reclassified to Other (expense) income immediately. For hedged forecasted fuel consumption that remains possible of occurring, hedge accounting will be discontinued and the related accumulated other comprehensive gain or loss will remain in accumulated other comprehensive gain or loss until the underlying hedged transactions are recognized in earnings or the related hedged forecasted fuel consumption is deemed probable of not occurring.

Changes in the fair value of fuel swaps for which cash flow hedge accounting was discontinued are currently recognized in Other (expense) income for each reporting period through the maturity dates of the fuel swaps. For the quarters ended March 31, 2024 and March 31, 2023, we did not discontinue cash flow hedge accounting on any of our fuel swap agreements.

At March 31, 2024, we have hedged the variability in future cash flows for certain forecasted fuel transactions occurring through 2026. As of March 31, 2024 and December 31, 2023, we had the following outstanding fuel swap agreements:

	Fuel Swap Agreements
	As of March 31, 2024	As of December 31, 2023
Designated as hedges:	(metric tons)
2024	789,801	1,054,501
2025	773,700	685,400
2026	252,700	44,200

	Fuel Swap Agreements
	As of March 31, 2024		As of December 31, 2023
Designated hedges as a % of projected fuel purchases:	(% hedged)
2024	62	%	61	%
2025	45	%	39	%
2026	15	%	3	%

As of March 31, 2024, there was $39 million of estimated unrealized net gain associated with our cash flow hedges pertaining to fuel swap agreements that is expected to be reclassified to earnings from Accumulated other comprehensive loss within the next twelve months when compared to $21 million of estimated unrealized net loss at December 31, 2023. Reclassification is expected to occur as the result of fuel consumption associated with our hedged forecasted fuel purchases.

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

	Fair Value of Derivative Instruments
	Asset Derivatives					Liability Derivatives
	Balance Sheet Location	As of March 31, 2024		As of December 31, 2023		Balance Sheet Location	As of March 31, 2024		As of December 31, 2023
		Fair Value		Fair Value			Fair Value		Fair Value
Derivatives designated as hedging instruments under ASC 815-20(1)
Interest rate-swaps	Derivative financial instruments	$	—	1		Derivative financial instruments	$	—	$	—
Interest rate swaps	Other assets	83		75		Other long-term liabilities	—		—
Foreign currency forward contracts	Derivative financial instruments	10		20		Derivative financial instruments	44		9
Foreign currency forward contracts	Other assets	22		44		Other long-term liabilities	9		4
Fuel swaps	Derivative financial instruments	42		4		Derivative financial instruments	3		26
Fuel swaps	Other assets	16		—		Other long-term liabilities	2		27
Total derivatives designated as hedging instruments under 815-20		$	173	$	144		$	58	$	66

(1)Subtopic 815-20 “Hedging-General” under ASC 815.

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

		Carrying Value
Non-derivative instrument designated as hedging instrument under ASC 815-20	Balance Sheet Location	As of March 31, 2024		As of December 31, 2023
Foreign currency debt	Current portion of long-term debt	$	63	$	65
Foreign currency debt	Long-term debt	649		523
		$	712	$	588

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

Derivatives under ASC 815-20 Cash Flow Hedging Relationships	Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Loss on Derivatives
	Quarter Ended March 31, 2024		Quarter Ended March 31, 2023
Interest rate swaps	$	21	$	(11)
Foreign currency forward contracts	(71)		21
Fuel swaps	106		(41)
	$	56	$	(31)

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

	Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss)
Non-derivative instruments under ASC 815-20 Net Investment Hedging Relationships	Quarter Ended March 31, 2024		Quarter Ended March 31, 2023
Foreign Currency Debt	$	16	$	(9)
	$	16	$	(9)

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

		Amount of (Loss) Gain Recognized in Income on Derivatives
Derivatives Not Designated as Hedging Instruments under ASC 815-20	Location of Gain (Loss) Recognized in Income on Derivatives	Quarter Ended March 31, 2024		Quarter Ended March 31, 2023
Foreign currency forward contracts	Other (expense) income	$	(35)	$	4
		$	(35)	$	4

Credit Related Contingent Features

Our current interest rate derivative instruments require us to post collateral if our Standard & Poor’s and Moody’s credit ratings fall below specified levels. Specifically, under most of our agreements, if on the fifth anniversary of executing a derivative instrument, or on any succeeding fifth-year anniversary, our credit ratings for our senior unsecured debt is rated below BBB- by Standard & Poor’s and Baa3 by Moody’s, then the counterparty will periodically have the right to demand that we post collateral in an amount equal to the difference

between (i) the net market value of all derivative transactions with such counterparty that have reached their fifth year anniversary, to the extent negative, and (ii) the applicable minimum call amount.

The amount of collateral required to be posted will change as, and to the extent, our net liability position increases or decreases by more than the applicable minimum call amount. If our credit rating for our senior unsecured debt is subsequently equal to or above BBB- by Standard & Poor’s or Baa3 by Moody’s, then any collateral posted at such time will be released to us and we will no longer be required to post collateral unless we meet the collateral trigger requirement, generally, at the next fifth-year anniversary.

As of March 31, 2024, our senior unsecured debt credit rating was BB+ by Standard & Poor's and Ba2 by Moody's. As of March 31, 2024, five of our ship debt interest rate derivative hedges had reached their fifth-year anniversary; however, the net market value for these derivative hedges were in a net asset position, and accordingly, we were not required to post any collateral as of such date.

XML

Pay vs Performance Disclosure - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 360	$ (48)

XML

Insider Trading Arrangements

3 Months Ended

Mar. 31, 2024

shares

Trading Arrangements, by Individual

Material Terms of Trading Arrangement

On February 14, 2024, Michael W. Bayley, the President and Chief Executive Officer of Royal Caribbean International, entered into a 10b5-1 trading arrangement that provides for the sale of up to 73,356 shares of the Company’s common stock, subject to certain conditions. This includes all common stock, net of shares withheld to cover tax withholding obligations, to be issued upon the anticipated vesting of 58,941 restricted stock units and 91,360 performance share awards. The arrangement's expiration date is August 30, 2024.

On February 23, 2024, R. Alexander Lake, Chief Legal Officer and Secretary of the Company, entered into a 10b5-1 trading arrangement providing for the sale of up to 7,750 shares, subject to certain conditions. The arrangement's expiration date is February 21, 2025.

The foregoing trading arrangements were entered into during an open insider trading window and are intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act and the Company’s policies regarding insider transactions.

Non-Rule 10b5-1 Arrangement Adopted

false

Rule 10b5-1 Arrangement Terminated

false

Non-Rule 10b5-1 Arrangement Terminated

false

Michael W. Bayley [Member]

Trading Arrangements, by Individual

Name

Michael W. Bayley

Title

President and Chief Executive Officer

Rule 10b5-1 Arrangement Adopted

true

Adoption Date

February 14, 2024

Arrangement Duration

198 days

Aggregate Available

73,356

R. Alexander Lake [Member]

Trading Arrangements, by Individual

Name

R. Alexander Lake

Title

Chief Legal Officer and Secretary of the Company

Rule 10b5-1 Arrangement Adopted

true

Adoption Date

February 23, 2024

Arrangement Duration

364 days

Aggregate Available

7,750

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Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2024

Accounting Policies [Abstract]

Basis for Preparation of Consolidated Financial Statements

Basis for Preparation of Consolidated Financial Statements

The unaudited consolidated financial statements are presented pursuant to the rules and regulations of the Securities and Exchange Commission. In our opinion, these statements include all adjustments necessary for a fair statement of the results of the interim periods reported herein. Adjustments consist only of normal recurring items, except for any items discussed in the notes below. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted as permitted by such Securities and Exchange Commission rules and regulations. Estimates are required for the preparation of financial statements in accordance with these principles. Actual results could differ from these estimates. Refer to Note 2. Summary of Significant Accounting Policies in this Quarterly Report on Form 10-Q and in our Annual Report on Form 10-K for the year ended December 31, 2023 for a discussion of our significant accounting policies. The Company has changed its presentation from thousands to millions and, as a result, any necessary rounding adjustments have been made to prior period disclosed amounts.

Basis of Consolidation

All significant intercompany accounts and transactions are eliminated in consolidation. We consolidate entities over which we have control, usually evidenced by a direct ownership interest of greater than 50%, and variable interest entities where we are determined to be the primary beneficiary. Refer to Note 5. Investments and Other Assets for further information regarding our variable interest entities. For affiliates we do not control but over which we have significant influence on financial and operating policies, usually evidenced by a direct ownership interest from 20% to 50%, the investment is accounted for using the equity method.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In August 2023, the FASB issued ASU No. 2023-05, Business Combinations - Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement. This ASU provides guidance requiring a joint venture to initially measure all contributions received upon its formation at fair value. The guidance is intended to provide users of joint venture financial statements with more decision-useful information. This ASU is effective for joint venture entities with a formation date on or after January 1, 2025 on a prospective basis. Early adoption is permitted, and joint ventures formed prior to the adoption date

may elect to apply the new guidance retrospectively back to their original formation date. We are currently evaluating the impact of the new guidance on our consolidated financial statements.

In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This ASU requires enhanced disclosures about significant segment expenses and other segment items and requires companies to disclose all annual disclosures about segments in interim periods. This ASU also requires public entities with a single reportable segment to provide all the disclosures required by the amendments in this ASU and all existing segment disclosures in Topic 280. The amendments in this ASU are intended to improve financial reporting by requiring disclosure of incremental segment information on an annual and interim basis for all public entities to enable investors to develop more decision-useful financial analyses. The amendments in this ASU are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted and the amendments should be applied retrospectively to all periods presented. We are currently evaluating the impact of the new guidance on our consolidated financial statements and related disclosures.

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The new guidance is intended to enhance the transparency and decision usefulness of income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. This ASU is effective for annual periods beginning after December 15, 2024 on a prospective basis. Early adoption and retrospective application is permitted. We are currently evaluating the impact of the new guidance on our consolidated financial statements and related disclosures.

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Revenue (Tables)

3 Months Ended

Mar. 31, 2024

Revenue from Contract with Customer [Abstract]

Schedule of Disaggregation of Revenue

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

	Quarter Ended March 31,
	2024		2023
Revenues by itinerary
North America (1)	$	2,690	$	2,193
Asia/Pacific	506		333
Europe	21		2
Other regions (2)	322		214
Total revenues by itinerary	3,539		2,742
Other revenues (3)	189		144
Total revenues	$	3,728	$	2,886

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

(2) Includes seasonality impacted itineraries primarily in South and Latin American countries.

(3) Includes revenues primarily related to cancellation fees, vacation protection insurance, casino operations, pre- and post-cruise tours and fees for operating certain port facilities. Amounts also include revenues related to procurement and management related services we perform on behalf of our unconsolidated affiliates. Refer to Note 5. Investments and Other Assets for more information on our unconsolidated affiliates.

For the quarters ended March 31, 2024 and 2023, our guests were sourced from the following areas:

	Quarter Ended March 31,
	2024		2023
Passenger ticket revenues:
United States	73	%	76	%
All other countries (1)	27	%	24	%

(1)No other individual country's revenue exceeded 10% for the quarters ended March 31, 2024 and 2023.

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Earnings (Loss) Per Share (Tables)

3 Months Ended

Mar. 31, 2024

Earnings Per Share [Abstract]

Schedule of Reconciliation Between Basic and Diluted Earnings (Loss) Per Share

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

	Quarter Ended March 31,
	2024		2023
Net Income (Loss) attributable to Royal Caribbean Cruises Ltd. for basic earnings (loss) per share	$	360	$	(48)
Add convertible notes interest	19		—
Net Income (Loss) attributable to Royal Caribbean Cruises Ltd. for diluted earnings (loss) per share	379		(48)
Weighted-average common shares outstanding	257		255
Dilutive effect of stock-based awards	1		—
Dilutive effect of convertible notes	23		—
Diluted weighted-average shares outstanding	281		255
Basic earnings (loss) per share	$	1.40	$	(0.19)
Diluted earnings (loss) per share	$	1.35	$	(0.19)

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Investments and Other Assets (Tables)

3 Months Ended

Mar. 31, 2024

Other Assets [Abstract]

Schedule of Other Nonoperating Income

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

	Quarter Ended March 31,
	2024		2023
Share of equity income from investments	$	41	$	20

Schedule of Related Party Transactions

	As of March 31, 2024		As of December 31, 2023
Total notes receivable due from equity investments	$	107	$	105
Less-current portion (1)	18		19
Long-term portion (2)	$	89	$	86

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

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

Schedule of Credit Loss Allowance

The following table summarizes our credit loss allowance related to receivables (in millions):

	Three Months Ended March 31,
	2024		2023
Balance, beginning of period	$	49	$	83
Credit loss (recovery), net	2		(7)
Write-offs	—		(2)
Balance, end of period	$	51	$	74

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Debt (Tables)

3 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

Schedule of Long-term Debt

Debt consists of the following (in millions):

	Interest Rate (1)	Maturities Through	As of March 31, 2024		As of December 31, 2023
Fixed rate debt:
Unsecured senior notes	3.70% to 9.25%	2026 - 2032	$	7,898	$	7,899
Secured senior notes	8.25%	2029	1,000		1,000
Unsecured term loans	1.28% to 5.89%	2027 - 2035	6,420		6,569
Convertible notes	6.00%	2025	1,150		1,150
Total fixed rate debt			16,468		16,618
Variable rate debt:
Unsecured revolving credit facilities (2)	6.76% to 7.48%	2025 - 2028	304		899
USD unsecured term loan	6.05% to 9.95%	2024 - 2037	3,555		3,666
Euro unsecured term loan	5.00% to 6.14%	2024 - 2028	352		443
Total variable rate debt			4,211		5,008
Finance lease liabilities			363		369
Total debt (3)			21,042		21,995
Less: unamortized debt issuance costs			(523)		(543)
Total debt, net of unamortized debt issuance costs			20,519		21,452
Less—current portion			(1,643)		(1,720)
Long-term portion			$	18,876	$	19,732

(1) Interest rates based on outstanding loan balance as of March 31, 2024, and for variable rate debt include either EURIBOR or Term SOFR plus the applicable margin.

(2) Advances under our unsecured revolving credit facilities accrue interest at Term SOFR plus a 0.10% credit adjustment spread plus an interest rate margin primarily at 1.33%. Based on applicable Term SOFR rates, as of March 31, 2024, the maximum interest rate under the unsecured credit facilities was 6.76%. We also pay a facility fee primarily at 0.17% of the total commitments under such facility.

(3) At March 31, 2024 and December 31, 2023, the weighted average interest rate for total debt was 5.75% and 6.06%, respectively.

Schedule of Maturities of Long-term Debt

The following is a schedule of annual maturities on our total debt, including finance leases, as of March 31, 2024 for each of the next five years (in millions):

Year	As of March 31, 2024 (1)
Remainder of 2024	$	1,390
2025	2,628
2026	3,045
2027	2,509
2028	3,267
Thereafter	8,203
	$	21,042

(1)    Debt denominated in other currencies is calculated based on the applicable exchange rate at March 31, 2024.

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Leases (Tables)

3 Months Ended

Mar. 31, 2024

Leases [Abstract]

Schedule of Lease Expense and Cash Flow Information

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

	Consolidated Statement of Comprehensive Income (Loss) Classification	Quarter Ended March 31, 2024		Quarter Ended March 31, 2023
Lease costs:
Operating lease costs	Commission, transportation and other	$	71	$	55
Operating lease costs	Other operating expenses	4		6
Operating lease costs	Marketing, selling and administrative expenses	4		5
Financial lease costs:
Amortization of right-of-use-assets	Depreciation and amortization expenses	3		6
Interest on lease liabilities	Interest expense, net of interest capitalized	8		8
Total lease costs		$	90	$	80

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

	As of March 31, 2024		As of December 31, 2023
Weighted average of the remaining lease term in years
Operating leases	20.02		19.43
Finance leases	24.06		23.92
Weighted average discount rate
Operating leases	7.55	%	7.53	%
Finance leases	5.84	%	5.83	%

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

	Three Months Ended March 31, 2024		Three Months Ended March 31, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	99	$	36
Operating cash flows from finance leases	8		8
Financing cash flows from finance leases	$	6	$	14

Schedule of Maturities, Operating Leases

As of March 31, 2024, maturities related to lease liabilities were as follows (in millions):

Year	Operating Leases		Finance Leases
Remainder of 2024	$	84	$	35
2025	101		45
2026	91		39
2027	72		38
2028	72		37
Thereafter	1,062		684
Total lease payments	1,482		878
Less: Interest	(816)		(515)
Present value of lease liabilities	$	666	$	363

Schedule of Maturities, Finance Leases

As of March 31, 2024, maturities related to lease liabilities were as follows (in millions):

Year	Operating Leases		Finance Leases
Remainder of 2024	$	84	$	35
2025	101		45
2026	91		39
2027	72		38
2028	72		37
Thereafter	1,062		684
Total lease payments	1,482		878
Less: Interest	(816)		(515)
Present value of lease liabilities	$	666	$	363

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Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2024

Commitments and Contingencies Disclosure [Abstract]

Schedule of Capital Commitments

As of March 31, 2024, the dates that the ships on order by our Global and Partner Brands are expected to be delivered, subject to change in the event of construction delays, and their approximate berths are as follows:

Ship	Shipyard	Expected delivery	Approximate Berths
Royal Caribbean International —
Oasis-class:
Utopia of the Seas	Chantiers de l'Atlantique	2nd Quarter 2024	5,700
Icon-class:
Star of the Seas	Meyer Turku Oy	3rd Quarter 2025	5,600
Unnamed	Meyer Turku Oy	2nd Quarter 2026	5,600
Celebrity Cruises —
Edge-class:
Celebrity Xcel	Chantiers de l'Atlantique	4th Quarter 2025	3,250
Silversea Cruises —
Evolution-class:
Silver Ray	Meyer Werft	2nd Quarter 2024	730
TUI Cruises (50% joint venture) —
Mein Schiff 7	Meyer Turku Oy	2nd Quarter 2024	2,900
Mein Schiff Relax	Fincantieri	4th Quarter 2024	4,100
Unnamed	Fincantieri	2nd Quarter 2026	4,100
Total Berths			31,980

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Changes in Accumulated Other Comprehensive Loss (Tables)

3 Months Ended

Mar. 31, 2024

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

Schedule of Changes In Accumulated Other Comprehensive Income (Loss) by Component

The following table presents the changes in accumulated other comprehensive loss by component for the quarters ended March 31, 2024 and 2023 (in millions):

	Accumulated Other Comprehensive Loss for the Three Months Ended March 31, 2024								Accumulated Other Comprehensive Loss for the Three Months Ended March 31, 2023
	Changes related to cash flow derivative hedges		Changes in defined benefit plans		Foreign currency translation adjustments		Accumulated other comprehensive loss		Changes related to cash flow derivative hedges		Changes in defined benefit plans		Foreign currency translation adjustments		Accumulated other comprehensive loss
Accumulated comprehensive loss at beginning of the year	$	(666)	$	(2)	$	(6)	$	(674)	$	(638)	$	(8)	$	3	$	(643)
Other comprehensive income (loss) before reclassifications	56		9		4		69		(30)		4		(7)		(33)
Amounts reclassified from accumulated other comprehensive loss	(12)		—		—		(12)		(2)		—		—		(2)
Net current-period other comprehensive income (loss)	44		9		4		57		(32)		4		(7)		(35)
Ending balance	$	(622)	$	7	$	(2)	$	(617)	$	(670)	$	(4)	$	(4)	$	(678)

Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Loss)

The following table presents reclassifications out of accumulated other comprehensive loss for the quarters ended March 31, 2024 and 2023 (in millions):

	Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income
Details About Accumulated Other Comprehensive Loss Components	Quarter Ended March 31, 2024		Quarter Ended March 31, 2023		Affected Line Item in Statements of Comprehensive Income (Loss)
Gain (loss) on cash flow derivative hedges:
Interest rate swaps	$	14	$	10	Interest expense, net of interest capitalized
Foreign currency forward contracts	(6)		(3)		Depreciation and amortization expenses
Foreign currency forward contracts	—		(1)		Other (expense) income
Fuel swaps	—		—		Other (expense) income
Fuel swaps	4		(4)		Fuel
	$	12	$	2

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Fair Value Measurements and Derivative Instruments (Tables)

3 Months Ended

Mar. 31, 2024

Derivative Instruments

Schedule of 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 millions): 

	Fair Value Measurements at March 31, 2024										Fair Value Measurements at December 31, 2023
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)	$	437	$	437	$	437	$	—	$	—	$	497	$	497	$	497	$	—	$	—
Total Assets	$	437	$	437	$	437	$	—	$	—	$	497	$	497	$	497	$	—	$	—
Liabilities:
Long-term debt (including current portion of debt)(5)	$	20,156	$	22,768	$	—	$	22,768	$	—	$	21,083	$	23,700	$	—	$	23,700	$	—
Total Liabilities	$	20,156	$	22,768	$	—	$	22,768	$	—	$	21,083	$	23,700	$	—	$	23,700	$	—

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

(2) Inputs other than quoted prices included within Level 1 that are observable for the liability, either directly or indirectly. For unsecured revolving credit facilities and unsecured term loans, fair value is determined utilizing the income valuation approach. This valuation model takes into account the contract terms of our debt such as the debt maturity and the interest rate on the debt. The valuation model also takes into account the creditworthiness of the Company. We valued our senior notes and convertible notes using a quoted market price, which is considered a Level 2 input as it is observable in the market; however, these instruments have a limited trading volume and as such this fair value estimate is not necessarily indicative of the value at which the instruments could be retired or transferred.

(3) Inputs that are unobservable. The Company did not use any Level 3 inputs as of March 31, 2024 and December 31, 2023.

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

(5) Consists of unsecured revolving credit facilities, senior notes, term loans and convertible notes. These amounts do not include our finance lease obligations.

Schedule of Company's Financial Instruments Recorded at Fair Value on Recurring Basis

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

	Fair Value Measurements at March 31, 2024								Fair Value Measurements at December 31, 2023
Description	Total		Level 1(1)		Level 2(2)		Level 3(3)		Total		Level 1(1)		Level 2(2)		Level 3(3)
Assets:
Derivative financial instruments(4)	$	173	$	—	$	173	$	—	$	144	$	—	$	144	$	—
Total Assets	$	173	$	—	$	173	$	—	$	144	$	—	$	144	$	—
Liabilities:
Derivative financial instruments(4)	$	58	$	—	$	58	$	—	$	66	$	—	$	66	$	—
Total Liabilities	$	58	$	—	$	58	$	—	$	66	$	—	$	66	$	—

(1)Inputs based on quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access. Valuation of these items does not entail a significant amount of judgment. No Level 1 inputs were used in fair value measurements of other financial instruments as of March 31, 2024 and December 31, 2023.

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

(3)Inputs that are unobservable. No Level 3 inputs were used in fair value measurements of other financial instruments as of March 31, 2024 and December 31, 2023.

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

Schedule of Offsetting Assets

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

	Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements
	As of March 31, 2024								As of December 31, 2023
	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 Liabilities		Cash Collateral Received		Net Amount of Derivative Assets
Derivatives subject to master netting agreements	$	173	$	(48)	$	—	$	125	$	144	$	(28)	$	—	$	116
Total	$	173	$	(48)	$	—	$	125	$	144	$	(28)	$	—	$	116
	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 Assets		Cash Collateral Pledged		Net Amount of Derivative Liabilities
Derivatives subject to master netting agreements	$	(58)	$	48	$	—	$	(10)	$	(66)	$	28	$	—	$	(38)
Total	$	(58)	$	48	$	—	$	(10)	$	(66)	$	28	$	—	$	(38)

Schedule of Offsetting Liabilities

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

	Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements
	As of March 31, 2024								As of December 31, 2023
	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 Liabilities		Cash Collateral Received		Net Amount of Derivative Assets
Derivatives subject to master netting agreements	$	173	$	(48)	$	—	$	125	$	144	$	(28)	$	—	$	116
Total	$	173	$	(48)	$	—	$	125	$	144	$	(28)	$	—	$	116
	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 Assets		Cash Collateral Pledged		Net Amount of Derivative Liabilities
Derivatives subject to master netting agreements	$	(58)	$	48	$	—	$	(10)	$	(66)	$	28	$	—	$	(38)
Total	$	(58)	$	48	$	—	$	(10)	$	(66)	$	28	$	—	$	(38)

Schedule of Fuel Swap Agreements

As of March 31, 2024 and December 31, 2023, we had the following outstanding fuel swap agreements:

	Fuel Swap Agreements
	As of March 31, 2024	As of December 31, 2023
Designated as hedges:	(metric tons)
2024	789,801	1,054,501
2025	773,700	685,400
2026	252,700	44,200

	Fuel Swap Agreements
	As of March 31, 2024		As of December 31, 2023
Designated hedges as a % of projected fuel purchases:	(% hedged)
2024	62	%	61	%
2025	45	%	39	%
2026	15	%	3	%

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

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

	Fair Value of Derivative Instruments
	Asset Derivatives					Liability Derivatives
	Balance Sheet Location	As of March 31, 2024		As of December 31, 2023		Balance Sheet Location	As of March 31, 2024		As of December 31, 2023
		Fair Value		Fair Value			Fair Value		Fair Value
Derivatives designated as hedging instruments under ASC 815-20(1)
Interest rate-swaps	Derivative financial instruments	$	—	1		Derivative financial instruments	$	—	$	—
Interest rate swaps	Other assets	83		75		Other long-term liabilities	—		—
Foreign currency forward contracts	Derivative financial instruments	10		20		Derivative financial instruments	44		9
Foreign currency forward contracts	Other assets	22		44		Other long-term liabilities	9		4
Fuel swaps	Derivative financial instruments	42		4		Derivative financial instruments	3		26
Fuel swaps	Other assets	16		—		Other long-term liabilities	2		27
Total derivatives designated as hedging instruments under 815-20		$	173	$	144		$	58	$	66

(1)Subtopic 815-20 “Hedging-General” under ASC 815.

Schedule of 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 millions):

		Carrying Value
Non-derivative instrument designated as hedging instrument under ASC 815-20	Balance Sheet Location	As of March 31, 2024		As of December 31, 2023
Foreign currency debt	Current portion of long-term debt	$	63	$	65
Foreign currency debt	Long-term debt	649		523
		$	712	$	588

Schedule of Non Derivative Instruments Qualifying and Designated as Hedging Instruments in Net Investment Hedges

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

	Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss)
Non-derivative instruments under ASC 815-20 Net Investment Hedging Relationships	Quarter Ended March 31, 2024		Quarter Ended March 31, 2023
Foreign Currency Debt	$	16	$	(9)
	$	16	$	(9)

Not Designated as Hedging Instrument

Derivative Instruments

Schedule of Derivative Instruments, Gain (Loss)

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

		Amount of (Loss) Gain Recognized in Income on Derivatives
Derivatives Not Designated as Hedging Instruments under ASC 815-20	Location of Gain (Loss) Recognized in Income on Derivatives	Quarter Ended March 31, 2024		Quarter Ended March 31, 2023
Foreign currency forward contracts	Other (expense) income	$	(35)	$	4
		$	(35)	$	4

Cash flow hedge

Derivative Instruments

Schedule of Interest Rate Derivatives

At March 31, 2024 and December 31, 2023, we maintained interest rate swap agreements on the following floating-rate debt instruments:

Debt Instrument	Swap Notional as of March 31, 2024 (in millions)		Maturity	Debt Floating Rate		All-in Fixed Rate as of March 31, 2024
Celebrity Reflection term loan	$	55	October 2024	Term SOFR plus	0.40%	2.88%
Quantum of the Seas term loan	184		October 2026	Term SOFR plus	1.30%	3.78%
Anthem of the Seas term loan	211		April 2027	Term SOFR plus	1.30%	3.90%
Ovation of the Seas term loan	311		April 2028	Term SOFR plus	1.00%	3.20%
Harmony of the Seas term loan (1)	281		May 2028	EURIBOR plus	1.15%	2.26%
Odyssey of the Seas term loan (2)	345		October 2032	Term SOFR plus	0.96%	3.28%
Odyssey of the Seas term loan (2)	173		October 2032	Term SOFR plus	0.96%	2.91%
	$	1,560

(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 March 31, 2024.

(2)Interest rate swap agreements hedging the term loan of Odyssey of the Seas include Term SOFR zero-floors, Term SOFR with no floors, and Overnight SOFR.

Schedule of Derivative Instruments, Gain (Loss)

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

Derivatives under ASC 815-20 Cash Flow Hedging Relationships	Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Loss on Derivatives
	Quarter Ended March 31, 2024		Quarter Ended March 31, 2023
Interest rate swaps	$	21	$	(11)
Foreign currency forward contracts	(71)		21
Fuel swaps	106		(41)
	$	56	$	(31)

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General (Details) destination in Thousands	Mar. 31, 2024 ship destination brand country continent
Schedule of Equity Method Investments [Line Items]
Number of cruise brands | brand	3
Number of cruise ships | ship	65
Number of destinations (more than) | destination	1
Number of countries (over) | country	120
Number of continents | continent	7
TUI Cruises
Schedule of Equity Method Investments [Line Items]
Investment in a joint venture, percentage of interest	50.00%

XML

Revenue - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Capitalized Contract Cost [Line Items]
Passenger ticket revenues	$ 3,728	$ 2,886
Contract liability	2,900		$ 2,600
Customer deposit	317
Contract asset	166		167
Commission, transportation and other
Capitalized Contract Cost [Line Items]
Capitalized contract costs	293		$ 257
Port Costs
Capitalized Contract Cost [Line Items]
Passenger ticket revenues	$ 242	$ 203
Minimum
Capitalized Contract Cost [Line Items]
Duration of cruises	3 days
Maximum
Capitalized Contract Cost [Line Items]
Duration of cruises	28 days

XML

Revenue - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2024	Mar. 31, 2023
Disaggregation of Revenue [Line Items]
Total revenues		$ 3,728	$ 2,886
Cruise Itinerary
Disaggregation of Revenue [Line Items]
Total revenues		3,539	2,742
Cruise Itinerary | North America
Disaggregation of Revenue [Line Items]
Total revenues	[1]	2,690	2,193
Cruise Itinerary | Asia/Pacific
Disaggregation of Revenue [Line Items]
Total revenues		506	333
Cruise Itinerary | Europe
Disaggregation of Revenue [Line Items]
Total revenues		21	2
Cruise Itinerary | Other regions
Disaggregation of Revenue [Line Items]
Total revenues	[2]	322	214
Other Revenues
Disaggregation of Revenue [Line Items]
Total revenues	[3]	$ 189	$ 144
Passenger Ticket | Other regions
Disaggregation of Revenue [Line Items]
Percentage of revenues by country	[4]	27.00%	24.00%
Passenger Ticket | United States
Disaggregation of Revenue [Line Items]
Percentage of revenues by country		73.00%	76.00%

[1] Includes the United States, Canada, Mexico and the Caribbean.

[2] Includes seasonality impacted itineraries primarily in South and Latin American countries.

[3] Includes revenues primarily related to cancellation fees, vacation protection insurance, casino operations, pre- and post-cruise tours and fees for operating certain port facilities. Amounts also include revenues related to procurement and management related services we perform on behalf of our unconsolidated affiliates. Refer to Note 5. Investments and Other Assets for more information on our unconsolidated affiliates.

[4] No other individual country's revenue exceeded 10% for the quarters ended March 31, 2024 and 2023.

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Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Earnings Per Share [Abstract]
Net Income (Loss) attributable to Royal Caribbean Cruises Ltd. for basic earnings (loss) per share	$ 360	$ (48)
Add convertible notes interest	19	0
Net Income (Loss) attributable to Royal Caribbean Cruises Ltd. for diluted earnings (loss) per share	$ 379	$ (48)
Weighted-average common shares outstanding (in shares)	257,000,000	255,000,000
Dilutive effect of stock-based awards (in shares)	1,000,000	0
Dilutive effect of convertible notes (in shares)	23,000,000	0
Diluted weighted-average shares outstanding (in shares)	281,000,000	255,000,000
Basic earnings (loss) per share (in dollars per share)	$ 1.40	$ (0.19)
Diluted earnings (loss) per share (in dollars per share)	$ 1.35	$ (0.19)
Antidilutive securities (in shares)	0	30,994,718

XML

Investments and Other Assets - Narrative (Details) € in Millions, $ in Millions	1 Months Ended	3 Months Ended		6 Months Ended
	Apr. 30, 2016	Mar. 31, 2024 USD ($) entity	Mar. 31, 2023 USD ($)	Dec. 31, 2023 USD ($) floating_drydock	Mar. 31, 2024 EUR (€) entity	Dec. 31, 2023 EUR (€)
Investments in and Advances to Affiliates [Line Items]
Proceeds from sale of noncontrolling interest		$ 0	$ 209
Credit loss		2	(7)
Property, Plant and Equipment
Investments in and Advances to Affiliates [Line Items]
Credit loss		$ 43	$ 63
Port Of Miami
Investments in and Advances to Affiliates [Line Items]
Percentage of investment sold			80.00%
Proceeds from sale of noncontrolling interest			$ 209
Port Of Miami | Variable Interest Entity, Primary Beneficiary
Investments in and Advances to Affiliates [Line Items]
Percentage of ownership interest			20.00%
TUI Cruises GmbH joint venture
Investments in and Advances to Affiliates [Line Items]
Percentage of ownership interest		50.00%			50.00%
Investments in entity		$ 678		$ 657
Underlying equity in net assets		594		566
Advances to affiliate		$ 73		$ 79	€ 67	€ 71
TUI Cruises GmbH joint venture | TUI cruise ships
Investments in and Advances to Affiliates [Line Items]
Restriction on reduction of current ownership interest (as a percent)		37.55%			37.55%
TUI Cruises GmbH joint venture | Splendour of the Seas
Investments in and Advances to Affiliates [Line Items]
Interest rate on loan provided to related party (as a percent)	6.25%
Debt instrument, term	10 years
Debt, guaranteed percentage	50.00%
TUI Cruises GmbH joint venture | Not Primary Beneficiary
Investments in and Advances to Affiliates [Line Items]
Percentage of ownership interest		50.00%			50.00%
Grand Bahama | Not Primary Beneficiary
Investments in and Advances to Affiliates [Line Items]
Percentage of ownership interest		40.00%			40.00%
Floating Docks S. DE RL | Not Primary Beneficiary
Investments in and Advances to Affiliates [Line Items]
Percentage of ownership interest				50.00%		50.00%
Number of floating drydocks | floating_drydock				2
Percentage of certain installment payments payable				50.00%		50.00%
Investment total guaranteed		$ 59
Italian Entities
Investments in and Advances to Affiliates [Line Items]
Number of entities | entity		2			2
Other Shareholder | Grand Bahama | Not Primary Beneficiary
Investments in and Advances to Affiliates [Line Items]
Percentage of ownership interest				40.00%		40.00%

XML

Investments and Other Assets - Schedule of Other Nonoperating Income (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Other Assets [Abstract]
Share of equity income from investments	$ 41	$ 20

XML

Investments and Other Assets - Schedule of Related Party Transactions (Details) - Equity Investment - USD ($) $ in Millions		Mar. 31, 2024	Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total notes receivable due from equity investments		$ 107	$ 105
Less-current portion	[1]	18	19
Long-term portion	[2]	$ 89	$ 86

[1] Included within Trade and other receivables, net in our consolidated balance sheets.

[2] Included within Other assets in our consolidated balance sheets.

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Investments and Other Assets - Schedule of Credit Loss Allowance (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	$ 49	$ 83
Credit loss (recovery), net	2	(7)
Write-offs	0	(2)
Balance, end of period	$ 51	$ 74

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Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Total debt	[1]	$ 21,042	$ 21,995
Less: unamortized debt issuance costs		(523)	(543)
Total debt, net of unamortized debt issuance costs		20,519	21,452
Less—current portion		(1,643)	(1,720)
Long-term portion		$ 18,876	$ 19,732
Weighted average interest rate		5.75%	6.06%
Total fixed rate debt
Debt Instrument [Line Items]
Long-term debt		$ 16,468	$ 16,618
Unsecured senior notes
Debt Instrument [Line Items]
Long-term debt		7,898	7,899
Secured senior notes
Debt Instrument [Line Items]
Long-term debt		1,000	1,000
Unsecured term loans
Debt Instrument [Line Items]
Long-term debt		6,420	6,569
Convertible notes
Debt Instrument [Line Items]
Long-term debt		1,150	1,150
Total variable rate debt
Debt Instrument [Line Items]
Long-term debt		4,211	5,008
Unsecured revolving credit facilities
Debt Instrument [Line Items]
Long-term debt	[2]	$ 304	899
Unsecured revolving credit facilities | Unsecured Revolving Credit Facility Due 2024
Debt Instrument [Line Items]
Facility fee		0.17%
USD unsecured term loan
Debt Instrument [Line Items]
Long-term debt		$ 3,555	3,666
Euro unsecured term loan
Debt Instrument [Line Items]
Long-term debt		352	443
Finance lease liabilities
Debt Instrument [Line Items]
Long-term debt		$ 363	$ 369
Term SOFR plus | Unsecured revolving credit facilities | Unsecured Revolving Credit Facility Due 2024
Debt Instrument [Line Items]
Credit adjustment spread		0.10%
Margin on floating rate base (as a percent)		1.33%
Minimum | Unsecured senior notes
Debt Instrument [Line Items]
Long term debt, stated interest rate (as a percent)	[3]	3.70%
Minimum | Secured senior notes
Debt Instrument [Line Items]
Long term debt, stated interest rate (as a percent)	[3]	8.25%
Minimum | Unsecured term loans
Debt Instrument [Line Items]
Long term debt, stated interest rate (as a percent)	[3]	1.28%
Minimum | Convertible notes
Debt Instrument [Line Items]
Long term debt, stated interest rate (as a percent)	[3]	6.00%
Minimum | Unsecured revolving credit facilities
Debt Instrument [Line Items]
Long term debt, current interest rate (as a percent)	[2],[3]	6.76%
Minimum | USD unsecured term loan
Debt Instrument [Line Items]
Long term debt, current interest rate (as a percent)	[3]	6.05%
Minimum | Euro unsecured term loan
Debt Instrument [Line Items]
Long term debt, current interest rate (as a percent)	[3]	5.00%
Maximum | Unsecured senior notes
Debt Instrument [Line Items]
Long term debt, stated interest rate (as a percent)	[3]	9.25%
Maximum | Unsecured term loans
Debt Instrument [Line Items]
Long term debt, stated interest rate (as a percent)	[3]	5.89%
Maximum | Unsecured revolving credit facilities
Debt Instrument [Line Items]
Long term debt, current interest rate (as a percent)	[2],[3]	7.48%
Maximum | Unsecured revolving credit facilities | Unsecured Revolving Credit Facility Due 2024
Debt Instrument [Line Items]
Long term debt, current interest rate (as a percent)		6.76%
Maximum | USD unsecured term loan
Debt Instrument [Line Items]
Long term debt, current interest rate (as a percent)	[3]	9.95%
Maximum | Euro unsecured term loan
Debt Instrument [Line Items]
Long term debt, current interest rate (as a percent)	[3]	6.14%

[1] At March 31, 2024 and December 31, 2023, the weighted average interest rate for total debt was 5.75% and 6.06%, respectively

[2] Advances under our unsecured revolving credit facilities accrue interest at Term SOFR plus a 0.10% credit adjustment spread plus an interest rate margin primarily at 1.33%. Based on applicable Term SOFR rates, as of March 31, 2024, the maximum interest rate under the unsecured credit facilities was 6.76%. We also pay a facility fee primarily at 0.17% of the total commitments under such facility.

[3] Interest rates based on outstanding loan balance as of March 31, 2024, and for variable rate debt include either EURIBOR or Term SOFR plus the applicable margin.

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Debt - Narrative (Details) - USD ($)		1 Months Ended	3 Months Ended
		Mar. 31, 2024	Mar. 31, 2024	Mar. 31, 2023	Oct. 31, 2023
Long-Term Debt
Loss on extinguishment of debt			$ 116,000,000	$ 13,000,000
Outstanding deferred amount		$ 839,000,000	$ 839,000,000
Minimum | Contract With Customer, Liability, Up-Front Payment Arrangement
Long-Term Debt
Credit agency fees, percentage of loan amount payable			2.35%
Maximum | Contract With Customer, Liability, Up-Front Payment Arrangement
Long-Term Debt
Credit agency fees, percentage of loan amount payable			5.48%
Unsecured senior notes | Minimum
Long-Term Debt
Fixed interest rate	[1]	3.70%	3.70%
Unsecured senior notes | Maximum
Long-Term Debt
Fixed interest rate	[1]	9.25%	9.25%
Unsecured senior notes | Senior Notes Due 2032
Long-Term Debt
Face amount		$ 1,250,000,000	$ 1,250,000,000
Proceeds from senior notes		$ 1,240,000,000
Fixed interest rate		6.25%	6.25%
Unsecured senior notes | Senior Notes Due 2027
Long-Term Debt
Fixed interest rate		11.625%	11.625%
Repayment of debt		$ 1,250,000,000
Loss on extinguishment of debt		116,000,000
Revolving Credit Facility | Line of Credit
Long-Term Debt
Remaining borrowing capacity		3,300,000,000	$ 3,300,000,000
Revolving Credit Facility | Line of Credit | Aggregate Revolving Capacity, October 2024
Long-Term Debt
Maximum borrowing capacity					$ 3,600,000,000
Revolving Credit Facility | Line of Credit | Aggregate Revolving Capacity, October 2026
Long-Term Debt
Maximum borrowing capacity		1,800,000,000	1,800,000,000
Revolving Credit Facility | Line of Credit | Aggregate Revolving Capacity, October 2028
Long-Term Debt
Maximum borrowing capacity		1,800,000,000	1,800,000,000
Revolving Credit Facility | Line of Credit | Aggregate Revolving Capacity, April 2025
Long-Term Debt
Maximum borrowing capacity		$ 77,000,000	$ 77,000,000

[1] Interest rates based on outstanding loan balance as of March 31, 2024, and for variable rate debt include either EURIBOR or Term SOFR plus the applicable margin.

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Debt - Schedule of Maturities of Long-term Debt (Details) $ in Millions	Mar. 31, 2024 USD ($)	[1]
Debt Disclosure [Abstract]
Remainder of 2024	$ 1,390
2025	2,628
2026	3,045
2027	2,509
2028	3,267
Thereafter	8,203
Total	$ 21,042

[1] Debt denominated in other currencies is calculated based on the applicable exchange rate at March 31, 2024.

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Leases - Narrative (Details) $ in Millions	3 Months Ended
	Mar. 31, 2024 USD ($) extension_option	Mar. 31, 2023 USD ($)	Dec. 31, 2023 USD ($)	Nov. 30, 2023 USD ($)
Lessee, Lease, Description [Line Items]
Present value of lease liabilities	$ 666
Increase percentage of annual lease payment				3.00%
Present value of lease liabilities	363
Variable lease cost	51	$ 38
Berthing Agreement
Lessee, Lease, Description [Line Items]
Present value of lease liabilities	$ 167		$ 167
Lease payments to be paid when certain conditions are met				$ 55
Berthing Agreement | Minimum
Lessee, Lease, Description [Line Items]
Renewal term	1 year
Berthing Agreement | Maximum
Lessee, Lease, Description [Line Items]
Renewal term	20 years
Building | Minimum
Lessee, Lease, Description [Line Items]
Renewal term	1 year
Building | Maximum
Lessee, Lease, Description [Line Items]
Renewal term	10 years
Land and Building
Lessee, Lease, Description [Line Items]
Number of extension options | extension_option	2
Additional lease term	5 years
Present value of lease liabilities	$ 105		104
Ships | Silver Dawn
Lessee, Lease, Description [Line Items]
Present value of lease liabilities	$ 241		$ 246
Finance lease term	15 years

XML

Leases - Schedule of Lease Expense (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Lessee, Lease, Description [Line Items]
Amortization of right-of-use-assets	$ 3	$ 6
Interest on lease liabilities	8	8
Total lease costs	90	80
Commission, transportation and other
Lessee, Lease, Description [Line Items]
Operating lease costs	71	55
Other operating expenses
Lessee, Lease, Description [Line Items]
Operating lease costs	4	6
Marketing, selling and administrative expenses
Lessee, Lease, Description [Line Items]
Operating lease costs	$ 4	$ 5

XML

Leases - Schedule of Lease Terms and Discount Rates (Details)	Mar. 31, 2024	Dec. 31, 2023
Weighted average of the remaining lease term in years
Operating leases	20 years 7 days	19 years 5 months 4 days
Finance leases	24 years 21 days	23 years 11 months 1 day
Weighted average discount rate
Operating leases	7.55%	7.53%
Finance leases	5.84%	5.83%

XML

Leases - Supplemental Noncash Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Leases [Abstract]
Operating cash flows from operating leases	$ 99	$ 36
Operating cash flows from finance leases	8	8
Financing cash flows from finance leases	$ 6	$ 14

XML

Leases - Schedule of Lease Maturities (Details) $ in Millions	Mar. 31, 2024 USD ($)
Operating Leases
Remainder of 2024	$ 84
2025	101
2026	91
2027	72
2028	72
Thereafter	1,062
Total lease payments	1,482
Less: Interest	(816)
Present value of lease liabilities	666
Finance Leases
Remainder of 2024	35
2025	45
2026	39
2027	38
2028	37
Thereafter	684
Total lease payments	878
Less: Interest	(515)
Present value of lease liabilities	$ 363

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Commitments and Contingencies - Schedule of Capital Commitments (Details)	Mar. 31, 2024 berth
Long-term Purchase Commitment [Line Items]
Ship passenger capacity berths	31,980
Royal Caribbean International | Utopia of the Seas
Long-term Purchase Commitment [Line Items]
Ship passenger capacity berths	5,700
Royal Caribbean International | Star of the Seas
Long-term Purchase Commitment [Line Items]
Ship passenger capacity berths	5,600
Royal Caribbean International | Unnamed
Long-term Purchase Commitment [Line Items]
Ship passenger capacity berths	5,600
Celebrity Cruises | Celebrity Xcel
Long-term Purchase Commitment [Line Items]
Ship passenger capacity berths	3,250
Silversea Cruises | Silver Ray
Long-term Purchase Commitment [Line Items]
Ship passenger capacity berths	730
TUI Cruises | Mein Schiff 7
Long-term Purchase Commitment [Line Items]
Ship passenger capacity berths	2,900
TUI Cruises | Mein Schiff Relax
Long-term Purchase Commitment [Line Items]
Ship passenger capacity berths	4,100
TUI Cruises | Unnamed
Long-term Purchase Commitment [Line Items]
Ship passenger capacity berths	4,100

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Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended
	Dec. 31, 2022	Mar. 31, 2024	Dec. 31, 2022
Commitments and Contingencies
Aggregate cost of ships on order, not including TUI cruises on order		$ 8,100.0
Deposit for the purchase of ships expected to enter service		$ 748.0
Plaintiff amount	$ 112.0
Loss in period			$ 130.0
Number of months considered to determine requirement of prepayment of debts		24 months
Line of Credit | Minimum
Commitments and Contingencies
Debt instrument covenant, minimum percentage of ownership by a person		50.00%
Debt Securities | Minimum
Commitments and Contingencies
Debt instrument covenant, minimum percentage of ownership by a person		50.00%

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Changes in Accumulated Other Comprehensive Loss - Schedule of Changes In Accumulated Other Comprehensive Income (Loss) by Component (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	$ 4,724
Other comprehensive income (loss) before reclassifications	69	$ (33)
Amounts reclassified from accumulated other comprehensive loss	(12)	(2)
Net current-period other comprehensive income (loss)	57	(35)
Ending balance	5,151
Changes related to cash flow derivative hedges
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(666)	(638)
Other comprehensive income (loss) before reclassifications	56	(30)
Amounts reclassified from accumulated other comprehensive loss	(12)	(2)
Net current-period other comprehensive income (loss)	44	(32)
Ending balance	(622)	(670)
Changes in defined benefit plans
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(2)	(8)
Other comprehensive income (loss) before reclassifications	9	4
Amounts reclassified from accumulated other comprehensive loss	0	0
Net current-period other comprehensive income (loss)	9	4
Ending balance	7	(4)
Foreign currency translation adjustments
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(6)	3
Other comprehensive income (loss) before reclassifications	4	(7)
Amounts reclassified from accumulated other comprehensive loss	0	0
Net current-period other comprehensive income (loss)	4	(7)
Ending balance	(2)	(4)
Accumulated other comprehensive loss
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(674)	(643)
Ending balance	$ (617)	$ (678)

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Changes in Accumulated Other Comprehensive Loss - Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest expense, net of interest capitalized	$ (424)	$ (360)
Depreciation and amortization expenses	(387)	(360)
Other (expense) income	(8)	5
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | Gain (loss) on cash flow derivative hedges:
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total reclassifications for the period	12	2
Interest rate swaps | Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | Gain (loss) on cash flow derivative hedges:
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest expense, net of interest capitalized	14	10
Foreign currency forward contracts | Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | Gain (loss) on cash flow derivative hedges:
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Depreciation and amortization expenses	(6)	(3)
Other (expense) income	0	(1)
Fuel swaps | Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | Gain (loss) on cash flow derivative hedges:
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other (expense) income	0	0
Fuel	$ 4	$ (4)

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Fair Value Measurements and Derivative Instruments - Schedule of Estimated Fair Value (Details) - Nonrecurring - USD ($) $ in Millions		Mar. 31, 2024	Dec. 31, 2023
Level 1
Assets:
Cash and cash equivalents	[1],[2]	$ 437	$ 497
Total Assets	[2]	437	497
Liabilities:
Long-term debt (including current portion of debt)	[2],[3]	0	0
Total Liabilities	[2]	0	0
Level 2
Assets:
Cash and cash equivalents	[1],[4]	0	0
Total Assets	[4]	0	0
Liabilities:
Long-term debt (including current portion of debt)	[3],[4]	22,768	23,700
Total Liabilities	[4]	22,768	23,700
Level 3
Assets:
Cash and cash equivalents	[1],[5]	0	0
Total Assets	[5]	0	0
Liabilities:
Long-term debt (including current portion of debt)	[3],[5]	0	0
Total Liabilities	[5]	0	0
Total Carrying Amount
Assets:
Cash and cash equivalents	[1]	437	497
Total Assets		437	497
Liabilities:
Long-term debt (including current portion of debt)	[3]	20,156	21,083
Total Liabilities		20,156	21,083
Total Fair Value
Assets:
Cash and cash equivalents	[1]	437	497
Total Assets		437	497
Liabilities:
Long-term debt (including current portion of debt)	[3]	22,768	23,700
Total Liabilities		$ 22,768	$ 23,700

[1] Consists of cash and marketable securities with original maturities of less than 90 days.

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

[3] Consists of unsecured revolving credit facilities, senior notes, term loans and convertible notes. These amounts do not include our finance lease obligations.

[4] Inputs other than quoted prices included within Level 1 that are observable for the liability, either directly or indirectly. For unsecured revolving credit facilities and unsecured term loans, fair value is determined utilizing the income valuation approach. This valuation model takes into account the contract terms of our debt such as the debt maturity and the interest rate on the debt. The valuation model also takes into account the creditworthiness of the Company. We valued our senior notes and convertible notes using a quoted market price, which is considered a Level 2 input as it is observable in the market; however, these instruments have a limited trading volume and as such this fair value estimate is not necessarily indicative of the value at which the instruments could be retired or transferred.

[5] Inputs that are unobservable. The Company did not use any Level 3 inputs as of March 31, 2024 and December 31, 2023.

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Fair Value Measurements and Derivative Instruments - Schedule of Company's Financial Instruments Recorded at Fair Value on Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions		Mar. 31, 2024	Dec. 31, 2023
Level 1
Assets:
Asset Derivatives	[1],[2]	$ 0	$ 0
Total Assets	[2]	0	0
Liabilities:
Liability Derivatives	[1],[2]	0	0
Total Liabilities	[2]	0	0
Level 2
Assets:
Asset Derivatives	[1],[3]	173	144
Total Assets	[3]	173	144
Liabilities:
Liability Derivatives	[1],[3]	58	66
Total Liabilities	[3]	58	66
Level 3
Assets:
Asset Derivatives	[1],[4]	0	0
Total Assets	[4]	0	0
Liabilities:
Liability Derivatives	[1],[4]	0	0
Total Liabilities	[4]	0	0
Total
Assets:
Asset Derivatives	[1]	173	144
Total Assets		173	144
Liabilities:
Liability Derivatives	[1]	58	66
Total Liabilities		$ 58	$ 66

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

[2] Inputs based on quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access. Valuation of these items does not entail a significant amount of judgment. No Level 1 inputs were used in fair value measurements of other financial instruments as of March 31, 2024 and December 31, 2023.

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

[4] Inputs that are unobservable. No Level 3 inputs were used in fair value measurements of other financial instruments as of March 31, 2024 and December 31, 2023.

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Fair Value Measurements and Derivative Instruments - Schedule of Offsetting of Derivative Instruments (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Offsetting of Financial Assets under Master Netting Agreements [Abstract]
Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheet	$ 173	$ 144
Gross Amount of Eligible Offsetting Recognized Derivative Liabilities	(48)	(28)
Cash Collateral Received	0	0
Net Amount of Derivative Assets	125	116
Offsetting of Financial Liabilities under Master Netting Agreements [Abstract]
Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheet	(58)	(66)
Gross Amount of Eligible Offsetting Recognized Derivative Assets	48	28
Cash Collateral Pledged	0	0
Net Amount of Derivative Liabilities	$ (10)	$ (38)

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Fair Value Measurements and Derivative Instruments - Derivative Instruments, Interest Rate Risk, Foreign Currency Exchange Rate Risk (Narrative) (Details) € in Millions, $ in Millions	3 Months Ended			6 Months Ended		12 Months Ended
	Mar. 31, 2024 USD ($)	Mar. 31, 2024 EUR (€)	Mar. 31, 2023 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2023 EUR (€)	Dec. 31, 2023 USD ($)
Gains and losses from derivatives involved in hedging relationships
Derivative instrument, credit risk exposure	$ 149
Maximum length of time hedged in derivative contract	3 years	3 years
Percentage of debt bearing fixed interest	86.30%					83.20%
Aggregate cost of ships on order, not including partner brands on order	$ 8,100
Amount deposited for cost of ships on order	$ 748
Percentage of aggregate cost exposed to fluctuations in the euro exchange rate	44.10%					43.50%
Foreign currency gain (loss)	$ 30		$ (11)
Foreign currency debt
Gains and losses from derivatives involved in hedging relationships
Carrying Value	712					$ 588
TUI Cruises | Foreign currency debt
Gains and losses from derivatives involved in hedging relationships
Carrying Value	712	€ 659		$ 716	€ 648
Interest rate swaps
Gains and losses from derivatives involved in hedging relationships
Notional amount	1,600					1,600
Foreign currency forward contracts | Not Designated
Gains and losses from derivatives involved in hedging relationships
Notional amount	1,100		1,200
Gain (loss) fair value of foreign currency forward contracts recognized in earnings	(35)		$ 4
Foreign exchange contracts
Gains and losses from derivatives involved in hedging relationships
Notional amount	$ 2,900					$ 2,900

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Fair Value Measurements and Derivative Instruments - Schedule of Interest Rate Derivatives (Details) - Interest rate swaps - Cash flow hedge $ in Millions	3 Months Ended
	Mar. 31, 2024 USD ($)
Interest Rate Cash Flow Hedges [Abstract]
Notional Amount	$ 1,560
Celebrity Reflection term loan
Interest Rate Cash Flow Hedges [Abstract]
Notional Amount	$ 55
All-in Fixed Rate as of March 31, 2024	2.88%
Celebrity Reflection term loan | Term SOFR plus
Interest Rate Cash Flow Hedges [Abstract]
Debt Floating Rate	0.40%
Quantum of the Seas term loan
Interest Rate Cash Flow Hedges [Abstract]
Notional Amount	$ 184
All-in Fixed Rate as of March 31, 2024	3.78%
Quantum of the Seas term loan | Term SOFR plus
Interest Rate Cash Flow Hedges [Abstract]
Debt Floating Rate	1.30%
Anthem of the Seas term loan
Interest Rate Cash Flow Hedges [Abstract]
Notional Amount	$ 211
All-in Fixed Rate as of March 31, 2024	3.90%
Anthem of the Seas term loan | Term SOFR plus
Interest Rate Cash Flow Hedges [Abstract]
Debt Floating Rate	1.30%
Ovation of the Seas term loan
Interest Rate Cash Flow Hedges [Abstract]
Notional Amount	$ 311
All-in Fixed Rate as of March 31, 2024	3.20%
Ovation of the Seas term loan | Term SOFR plus
Interest Rate Cash Flow Hedges [Abstract]
Debt Floating Rate	1.00%
Harmony of the Seas term loan
Interest Rate Cash Flow Hedges [Abstract]
Notional Amount	$ 281	[1]
All-in Fixed Rate as of March 31, 2024	2.26%	[1]
Harmony of the Seas term loan | EURIBOR plus
Interest Rate Cash Flow Hedges [Abstract]
Debt Floating Rate	1.15%	[1]
Odyssey of the Seas term loan
Interest Rate Cash Flow Hedges [Abstract]
Notional Amount	$ 345	[2]
All-in Fixed Rate as of March 31, 2024	3.28%	[2]
Odyssey of the Seas term loan | Term SOFR plus
Interest Rate Cash Flow Hedges [Abstract]
Debt Floating Rate	0.96%	[2]
Odyssey of the Seas term loan
Interest Rate Cash Flow Hedges [Abstract]
Notional Amount	$ 173	[2]
All-in Fixed Rate as of March 31, 2024	2.91%	[2]
Odyssey of the Seas term loan | Term SOFR plus
Interest Rate Cash Flow Hedges [Abstract]
Debt Floating Rate	0.96%	[2]

[1] Interest rate swap agreements hedging the Euro-denominated term loan for Harmony of the Seas include EURIBOR zero-floors matching the hedged debt EURIBOR zero-floor. Amount presented is based on the exchange rate as of March 31, 2024.

[2] Interest rate swap agreements hedging the term loan of Odyssey of the Seas include Term SOFR zero-floors, Term SOFR with no floors, and Overnight SOFR.

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Fair Value Measurements and Derivative Instruments - Schedule of Fuel Price Risk (Details) - Fuel Swap Agreements $ in Millions	Mar. 31, 2024 USD ($) T	Dec. 31, 2023 USD ($) T
Derivative Instruments
Estimated unrealized net gain (loss) associated with cash flow hedges pertaining to fuel swap agreements expected to be reclassified to earnings from accumulated other comprehensive income loss | $	$ 39	$ (21)
2024
Derivative Instruments
Fuel Swap Agreements (metric tons)	789,801	1,054,501
Percentage of projected requirements	62.00%	61.00%
2025
Derivative Instruments
Fuel Swap Agreements (metric tons)	773,700	685,400
Percentage of projected requirements	45.00%	39.00%
2026
Derivative Instruments
Fuel Swap Agreements (metric tons)	252,700	44,200
Percentage of projected requirements	15.00%	3.00%

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Fair Value Measurements and Derivative Instruments - Schedule of Derivative Instruments in Statement of Financial Position, Fair Value (Details) - USD ($) $ in Millions		Mar. 31, 2024	Dec. 31, 2023
Derivative financial instruments
Asset Derivatives
Derivative Asset, Statement of Financial Position [Extensible Enumeration]		Derivative financial instruments	Derivative financial instruments
Liability Derivatives
Derivative Liability, Statement of Financial Position [Extensible Enumeration]		Derivative financial instruments	Derivative financial instruments
Other assets
Asset Derivatives
Derivative Asset, Statement of Financial Position [Extensible Enumeration]		Other assets, net of allowances of $43 at March 31, 2024 and December 31, 2023.	Other assets, net of allowances of $43 at March 31, 2024 and December 31, 2023.
Other long-term liabilities
Liability Derivatives
Derivative Liability, Statement of Financial Position [Extensible Enumeration]		Other long-term liabilities	Other long-term liabilities
Designated as Hedging Instrument
Asset Derivatives
Asset Derivatives	[1]	$ 173	$ 144
Liability Derivatives
Liability Derivatives	[1]	58	66
Interest rate swaps | Designated as Hedging Instrument | Derivative financial instruments
Asset Derivatives
Asset Derivatives		0	1
Liability Derivatives
Liability Derivatives		0	0
Interest rate swaps | Designated as Hedging Instrument | Other assets
Asset Derivatives
Asset Derivatives	[1]	83	75
Interest rate swaps | Designated as Hedging Instrument | Other long-term liabilities
Liability Derivatives
Liability Derivatives	[1]	0	0
Foreign currency forward contracts | Designated as Hedging Instrument | Derivative financial instruments
Asset Derivatives
Asset Derivatives	[1]	10	20
Liability Derivatives
Liability Derivatives	[1]	44	9
Foreign currency forward contracts | Designated as Hedging Instrument | Other assets
Asset Derivatives
Asset Derivatives	[1]	22	44
Foreign currency forward contracts | Designated as Hedging Instrument | Other long-term liabilities
Liability Derivatives
Liability Derivatives	[1]	9	4
Fuel swaps | Designated as Hedging Instrument | Derivative financial instruments
Asset Derivatives
Asset Derivatives	[1]	42	4
Liability Derivatives
Liability Derivatives	[1]	3	26
Fuel swaps | Designated as Hedging Instrument | Other assets
Asset Derivatives
Asset Derivatives	[1]	16	0
Fuel swaps | Designated as Hedging Instrument | Other long-term liabilities
Liability Derivatives
Liability Derivatives	[1]	$ 2	$ 27

[1] Subtopic 815-20 “Hedging-General” under ASC 815.

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Fair Value Measurements and Derivative Instruments - Schedule of Balance Sheet Hedging Instruments (Details) - Foreign currency debt - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Derivative Instruments
Carrying Value	$ 712	$ 588
Current portion of long-term debt
Derivative Instruments
Carrying Value	63	65
Long-term debt
Derivative Instruments
Carrying Value	$ 649	$ 523

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Fair Value Measurements and Derivative Instruments - Schedule of Designated Cash Flow Hedges (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Effect of derivative instruments involved in hedging on the consolidated financial statements
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Loss on Derivatives	$ 56	$ (31)
Interest rate swaps
Effect of derivative instruments involved in hedging on the consolidated financial statements
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Loss on Derivatives	21	(11)
Foreign currency forward contracts
Effect of derivative instruments involved in hedging on the consolidated financial statements
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Loss on Derivatives	(71)	21
Fuel swaps
Effect of derivative instruments involved in hedging on the consolidated financial statements
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Loss on Derivatives	$ 106	$ (41)

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Fair Value Measurements and Derivative Instruments - Non-Derivative Net Investment (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Foreign currency debt
Net investment hedge
Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss)	$ 16	$ (9)

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Fair Value Measurements and Derivative Instruments - Derivatives Not Designated as Hedging Instruments (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Derivative Instruments
Amount of (Loss) Gain Recognized in Income on Derivatives	$ (35)	$ 4
Foreign currency forward contracts | Other income (expense)
Derivative Instruments
Amount of (Loss) Gain Recognized in Income on Derivatives	$ (35)	$ 4

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Fair Value Measurements and Derivative Instruments - Credit Features (Details)	Mar. 31, 2024 derivative
Fair Value Disclosures [Abstract]
Number of interest rate derivative hedges requiring collateral to be posted	5