Royal Caribbean Cruises .(RCL) - 2024 Q4 - Annual Report

Passenger Statistics - In 2024, the company carried 8,564,272 passengers, a 12% increase from 2023's 7,646,203 passengers[81] - Passenger cruise days reached 54,844,780 in 2024, up 11% from 49,549,127 in 2023[81] - The occupancy rate for 2024 was 108.5%, compared to 105.6% in 2023, indicating strong demand[81] Revenue Breakdown - Passenger ticket revenues accounted for approximately 70% of total revenues in 2024, up from 69% in 2023[86] - Onboard activities and other revenues made up about 30% of total revenues in 2024, down from 31% in 2023[88] Workforce Information - As of December 31, 2024, the company employed approximately 106,000 employees, with 95,150 working shipboard[91] - The shipboard workforce is comprised of employees from approximately 145 countries, with 33% from the Philippines[93] - In 2024, the workforce invested approximately 3.2 million hours in learning programs, completing around 4.1 million courses[97] Compliance and Regulations - The company believes it is in material compliance with all applicable regulations and has all necessary licenses to conduct its business[107] - The company has equipped 72% of its fleet with Advanced Emissions Purification (AEP) systems to comply with MARPOL sulfur regulations[117] - The EU Emission Trading System (ETS) will require the company to purchase carbon emission allowances for 40% of its emissions within Europe starting in 2024, increasing to 100% by 2026[124] - The FuelEU Maritime regulation mandates a 2% reduction in GHG intensity of fuels by 2025, escalating to 80% by 2050[125] - Compliance with the IMO's Data Collection System (DCS) for carbon emissions reporting began in 2019, with further obligations expected[120] - The company is subject to various international and national environmental regulations, including MARPOL and EU directives, which may affect operations[115] - The Clean Water Act mandates standards for incidental discharges from commercial vessels, impacting operational costs[126] Financial Obligations - The company is required to maintain surety bonds of $32 million per operator for non-performance obligations to guests[129] - The company has established financial responsibility for liabilities resulting from non-performance obligations in multiple jurisdictions, including the UK and Norway[130] Taxation - Royal Caribbean Cruises Ltd. operates 16 ships under the United Kingdom tonnage tax regime during the year ended December 31, 2024[145] - The company is subject to a special 4% tax on U.S. source gross transportation income for its ship-owning subsidiaries if Section 883 is not available[142] - The Organization for Economic Co-operation and Development (OECD) introduced a global minimum tax of 15%, effective January 1, 2024, which may impact the company's earnings starting in 2026[148] - The company has developed mitigation strategies to minimize the impact of the new global minimum tax provisions to an immaterial amount[149] - Royal Caribbean Cruises Ltd. is subject to various U.S. state income taxes, including a 33% tax on adjusted gross income from onboard gambling activities conducted in Alaska waters[144] - The company earns U.S. source income from activities not considered incidental to international shipping, but the tax on such income is not material to its results of operation[143] - The U.K. tonnage tax regime requires companies to operate qualifying ships that are strategically and commercially managed in the U.K.[146] - The company is subject to value-added and other indirect taxes, most of which are reclaimable, zero-rated, or exempt[150] - The impact of the Pillar Two rules on the company's 2024 results of operations is expected to be immaterial[149] Executive Leadership - The company’s executive officers include Jason T. Liberty as President and CEO, and Naftali Holtz as Chief Financial Officer, both serving since January 2022[152]