71 unchanged sentences
Although our ships can be redeployed, cruise sales and/or pricing may be impacted by the introduction of new ships into the marketplace, reductions in cruise capacity, overall market growth and deployment decisions of ourselves and our competitors.
−Removed: As of March 31, 2023, a total of 46 new ships with approximately 98,887 berths were on order for delivery through 2028 in the cruise industry, including 10 ships currently scheduled to be delivered to our Global and Partner Brands.
−Removed: The further net growth in capacity from these new ships and future orders, without an increase in the cruise industry’s demand and/or share of the vacation market, could depress cruise prices and impede our ability to achieve yield improvement.
+Added: As of June 30, 2023, a total of 46 new ships with approximately 91,677 berths were on order for delivery through 2028 in the cruise industry, including 10 ships currently scheduled to be delivered to our Global and Partner Brands.
+Added: net growth in capacity from these new ships and future orders, without an increase in the cruise industry’s demand and/or share of the vacation market, could depress cruise prices and impede our ability to achieve yield improvement.
In addition, to the extent that we or our competitors deploy ships to a particular itinerary/region and the resulting capacity in that region exceeds the demand, it may negatively affect our pricing and profitability.
101 unchanged sentences
We have a substantial amount of debt and significant debt service obligations.
−Removed: As of March 31, 2023, we had total debt of $21.5 billion.
+Added: As of June 30, 2023, we had total debt of $20.4 billion.
Our substantial debt has required us to dedicate a large portion of our cash flow from operations to service debt and fund repayments on our debt, thereby reducing the availability of our cash flow to fund working capital, capital expenditures and other general corporate expenses.
20 unchanged sentences
Additionally, there is no guarantee that financing will be available in the future or that such financing will be available with similar terms or terms that are commercially acceptable to us.
−Removed: As of March 31, 2023, we have commitments for approximately $7.2 billion of debt to finance the purchase of 7 ships on order by our Royal Caribbean International, Celebrity Cruises and Silversea Cruises brands, all of which are guaranteed by the export credit agencies in the countries in which the ships are being built.
+Added: As of June 30, 2023, we have commitments for approximately $8.3 billion of debt to finance the purchase of 7 ships on order by our Royal Caribbean International, Celebrity Cruises and Silversea Cruises brands, all of which are guaranteed by the export credit agencies in the countries in which the ships are being built.
The ultimate size of each facility will depend on the final contract price (including change orders and owner’s supply) as well as fluctuations in the EUR/USD exchange rate.
33 unchanged sentences
If note holders elect to convert, the notes will be converted into our shares of common stock, cash, or a combination of common stock and cash, at our
−Removed: Prior to March 15, 2023, August 15, 2023, and May 15, 2025, our convertible notes issued in June 2020, October 2020, and August 2022, respectively, will be convertible at the option of holders during certain periods only upon satisfaction of certain conditions.
+Added: Prior to August 15, 2023, and May 15, 2025, our convertible notes issued in October 2020, and August 2022, respectively, will be convertible at the option of holders during certain periods only upon satisfaction of certain conditions.
Beyond those dates, the convertible notes will be convertible at any time until the close of business on the second scheduled trading day immediately preceding their maturity date.
1 unchanged sentence
Additionally, if we raise additional funds through equity or convertible debt issuances, our shareholders could experience dilution of their ownership interest, and these equity or convertible debt securities could have rights, preferences, and privileges that are superior to that of holders of our common stock.
−Removed: We did not declare quarterly dividends on our common stock in the quarter ended March 31, 2023 and do not expect to pay dividends on our common stock for the foreseeable future.
+Added: We did not declare quarterly dividends on our common stock in the quarter ended June 30, 2023 and do not expect to pay dividends on our common stock for the foreseeable future.
We have not declared a dividend since the first quarter of 2020.
3 unchanged sentences
Payment of dividends would, in any case, depend upon our profitability at the time, cash available for those dividends, and other factors as our board of directors may consider relevant.
−Removed: Increased regulatory oversight, and the phasing out of LIBOR may adversely affect the value of a portion of our indebtedness.
−Removed: The publication of certain LIBOR settings ceased after December 31, 2021, and uncertainty regarding alternative reference rates remains as many market participants await a wider adoption of replacement products prior to the cessation of the remaining USD LIBOR tenors (currently scheduled for June 30, 2023).
−Removed: When LIBOR ceases to exist, the level of interest payments on the portion of our indebtedness that bears interest at variable rates might be affected if we, the agent, and/or the lenders holding a majority of the outstanding loans or commitments under such indebtedness fail to amend such indebtedness to implement a replacement rate.
−Removed: Regardless, such replacement rate will give due consideration to any evolving or then-existing conventions for similar credit facilities, which may result in different than expected interest payments.
Compliance and Regulatory Risks
12 unchanged sentences
Such activity may also impact us by increasing our operating costs, including fuel costs.
−Removed: For example, the European Union has proposed a series of significant carbon reforms under its Fit for 55 package designed to meet its 2030 emission goals, which would require us, among other things, to increase the use of low carbon fuel onboard our vessels as well as connectivity to shore power.
−Removed: The proposed legislation also includes updates to the European Union Emission Trading System which would impose requirements to purchase carbon emission allowances beginning in 2024.
+Added: For example, the European Union has proposed and enacted parts of a series of significant carbon reforms under its Fit for 55 package designed to meet its 2030 emission goals, which would require us, among other things, to increase the use of low carbon fuel onboard our vessels as well as connectivity to shore power.
+Added: Part of the reforms that were enacted includes updates to the European Union Emission Trading System that imposes requirements on us to purchase carbon emission allowances for our emissions beginning in 2024.
In addition, the U.S.
4 unchanged sentences
Labor, health and safety, financial responsibility and other maritime regulations and measures could affect operations and increase operating costs.
−Removed: We are subject to various international, national, state and local laws, regulations and treaties that govern, among other things, discharge from our ships, safety standards applicable to our ships, treatment of disabled persons, health and sanitary standards applicable to our guests, security standards on board our ships and at the ship/port interface areas, and financial responsibilities to our guests.
+Added: We are subject to various international, national, state and local laws, regulations and treaties that govern, among other things, discharge from our ships, safety standards applicable to our ships, treatment of disabled persons, health and sanitary
+Added: standards applicable to our guests, security standards on board our ships and at the ship/port interface areas, and financial responsibilities to our guests.
These issues are, and we believe will continue to be, an area of focus by the relevant authorities throughout the world.
32 unchanged sentences
There may also be practical difficulties for shareholders attempting to bring suit in Liberia, and Liberian courts may or may not recognize and enforce foreign judgments.
−Removed: Thus, our shareholders may have
−Removed: more difficulty challenging actions taken by management, directors or controlling shareholders than would shareholders of a corporation incorporated in a U.S.
+Added: Thus, our shareholders may have more difficulty challenging actions taken by management, directors or controlling shareholders than would shareholders of a corporation incorporated in a U.S.
jurisdiction.
1 unchanged sentence
Conducting business globally results in increased costs and other risks.
−Removed: We operate our business globally, which exposes us to a number of risks, including increased exposure to a wider range of regional and local economic conditions, volatile local political conditions, potential changes in duties and taxes, including changing and/or uncertain interpretations of existing tax laws and regulations, required compliance with additional laws and policies affecting cruising, vacation or maritime businesses or governing the operations of foreign-based companies, currency fluctuations, interest rate movements, difficulties in operating under local business environments, port quality and availability in certain regions, U.S.
+Added: We operate our business globally, which exposes us to a number of risks, including increased exposure to a wider range of regional and local economic conditions, volatile local political conditions, potential changes in duties and taxes, including changing and/or uncertain interpretations of existing tax laws and regulations, required compliance with additional laws and policies affecting cruising, vacation or maritime businesses or governing the operations of foreign-based companies, currency
+Added: fluctuations, interest rate movements, difficulties in operating under local business environments, port quality and availability in certain regions, U.S.
and global anti-bribery laws and regulations, imposition of trade barriers and restrictions on repatriation of earnings.
26 unchanged sentences
As a result, an increase in market interest rates would increase our interest expense and our debt service obligations.
−Removed: As of March 31, 2023, we had approximately $3.4 billion of indebtedness that bears interest at variable rates, which is net of our interest rate swap
+Added: As of June 30, 2023, we had approximately $2.9 billion of indebtedness that bears interest at variable rates, which is net of our interest rate swap agreements.
This amount represented approximately 14.0% of our total indebtedness.
−Removed: As of March 31, 2023, a hypothetical 1% increase in prevailing interest rates would increase our forecasted 2023 interest expense by approximately $11.1 million.
+Added: As of June 30, 2023, a hypothetical 1% increase in prevailing interest rates would increase our forecasted 2023 interest expense by approximately $13.3 million.
Additionally, the value of our earnings in foreign currencies is adversely impacted by a strong U.S.
1 unchanged sentence
We evaluate goodwill for impairment on an annual basis, or more frequently when circumstances indicate that the carrying value of a reporting unit may not be recoverable.
−Removed: A challenging operating environment, conditions affecting consumer demand or spending, the deterioration of general macroeconomic conditions, expected ship deliveries, or other factors could result in a change to the future cash flows we expect to derive from our operations.
+Added: A challenging operating environment, conditions affecting consumer demand or spending, the deterioration of general macroeconomic conditions, expected ship deliveries, or other factors could
+Added: result in a change to the future cash flows we expect to derive from our operations.
Reductions of cash flows used in the valuation analyses may result in the recording of impairments, which could adversely affect our financial condition and operating results.
4 unchanged sentences
A prolonged shortage of qualified personnel and/or increased turnover may inhibit our ability to operate our business in an optimal manner, and may result in increased costs if we need to hire temporary personnel, and/or increased wages and/or benefits in order to attract and retain employees, all of which may negatively impact our results of operations.
−Removed: As of March 31, 2023, approximately 89% of our shipboard employees were covered by collective bargaining agreements.
+Added: As of June 30, 2023, approximately 87% of our shipboard employees were covered by collective bargaining agreements.
A dispute under our collective bargaining agreements could result in a work stoppage of those employees covered by the agreements.
20 unchanged sentences
In the regular course of business, we collect employee, customer, and other third-party data, including personally identifiable information and individual payment data, for various business purposes.
−Removed: Although we have policies and procedures in place to safeguard such sensitive information, this information has been and could be subject to cyber security attacks and the aforementioned risks.
+Added: Although we have policies and procedures
+Added: in place to safeguard such sensitive information, this information has been and could be subject to cyber security attacks and the aforementioned risks.
In addition, we are subject to federal, state, and international laws relating to the collection, use, retention, security and transfer of personally identifiable information and individual payment data.
16 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.