U.S. Political Contributions and Disclosure Policy
The Royal Caribbean Group may choose to use company funds in the public sphere to advance our interests. From time to time, this may include spending in relation to developing public policy. In doing so, we believe it is essential to abide by our commitment to act ethically, with integrity and in accordance with the law.
This policy serves our interests in advancing our public policy goals and business objectives, while promoting transparency and accountability by providing important information to our stakeholders.
Royal Caribbean Cruises Ltd. does not make political contributions in connection with U.S. elections, as foreign corporations are prohibited from making such contributions. Royal Caribbean Cruises Ltd. may contribute to ballot measure campaigns or committees as permitted by applicable law. Any such contribution must be approved by the Senior Vice President, Corporate Affairs of Royal Caribbean Cruises Ltd.
Royal Caribbean Cruises Ltd.’s U.S. subsidiaries may, with their own funds, make political contributions as permitted by applicable law. Any such contribution must be approved by the most senior officer of the relevant U.S. subsidiary.
All contributions will be administered to ensure they comply with applicable federal, state and local laws and reporting requirements.
It is the Royal Caribbean Group’s policy not to make independent expenditures directly in support of or in opposition to any candidate. We do not sponsor any political action committees.
Trade Association Memberships
The Royal Caribbean Group holds memberships in trade associations. Our involvement with these organizations helps us gain insight into issues that affect the Royal Caribbean Group and our stakeholders and advance the strategic priorities and policy objectives of our industry. Our membership in and payments to specific trade associations do not mean we share or agree with all of the views espoused by these trade associations. The conduct of the associations is governed by their respective bylaws, and the Royal Caribbean Group does not control how the associations use membership dues.
Our membership dues or contributions to a trade association expected to exceed $50,000 in a calendar year must be approved in advance by the Senior Vice President, Corporate Affairs of Royal Caribbean Cruises Ltd.
Donations to 501(c)(4) Organizations
Donations by Royal Caribbean Cruises Ltd., or one of its U.S. subsidiaries, to an entity operating under section 501(c)(4) of the Internal Revenue Code must be approved by the Senior Vice President, Corporate Affairs of Royal Caribbean Cruises Ltd., or the most senior officer of the relevant U.S. subsidiary.
The Royal Caribbean Group’s annual voluntary disclosure on our website will include the following (beginning for the year ending December 31, 2021):
A copy of this U.S. Political Contributions and Disclosure Policy;
Trade associations that received dues in excess of $50,000 from company funds, and the portion of those dues used for political and lobbying purposes; and
Contributions from company funds to candidates, political parties, campaign committees, political party committees, political action committees, ballot measure campaigns and committees, and 527 organizations.
Donations from company funds to an entity operating under section 501(c)(4) of the Internal Revenue Code that may be used for political purposes.
Certain expenditures covered by this policy are subject to significant regulation and public disclosure requirements with which we also must comply.
Certain statements in this release relating to, among other things, our future performance estimates, forecasts and projections constitute forward-looking statements under the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to: statements regarding revenues, costs and financial results for 2020 and beyond. Words such as “anticipate,” “believe,” “could,” “driving,” “estimate,” “expect,” “goal,” “intend,” “may,” “plan,” “project,” “seek,” “should,” “will,” “would,” “considering”, and similar expressions are intended to help identify forward-looking statements. Forward-looking statements reflect management’s current expectations, are based on judgments, are inherently uncertain and are subject to risks, uncertainties and other factors, which could cause our actual results, performance or achievements to differ materially from the future results, performance or achievements expressed or implied in those forward-looking statements. Examples of these risks, uncertainties and other factors include, but are not limited to the following: the impact of the global incidence and spread of COVID-19, which has led to the temporary suspension of our operations and has had and will continue to have a material adverse impact on our business and results of operations, or other contagious illnesses on economic conditions and the travel industry in general and the financial position and operating results of our Company in particular, such as: the current and potential additional governmental and self-imposed travel restrictions, the current and potential extension of the suspension of cruises and new additional suspensions, guest cancellations; our ability to obtain sufficient financing, capital or revenues to satisfy liquidity needs, capital expenditures, debt repayments and other financing needs; the effectiveness of the actions we have taken to improve and address our liquidity needs; the impact of the economic and geopolitical environment on key aspects of our business, such as the demand for cruises, passenger spending, and operating costs; incidents or adverse publicity concerning our ships, port facilities, land destinations and/or passengers or the cruise vacation industry in general; concerns over safety, health and security of guests and crew; further impairments of our goodwill, long-lived assets, equity investments and notes receivable; an inability to source our crew or our provisions and supplies from certain places; the incurrence of COVID-19 and other contagious diseases on our ships and an increase in concern about the risk of illness on our ships or when traveling to or from our ships, all of which reduces demand; unavailability of ports of call; growing anti-tourism sentiments and environmental concerns; changes in US foreign travel policy; the uncertainties of conducting business internationally and expanding into new markets and new ventures; our ability to recruit, develop and retain high quality personnel; changes in operating and financing costs; our indebtedness, any additional indebtedness we may incur and restrictions in the agreements governing our indebtedness that limit our flexibility in operating our business, including the significant portion of assets that are collateral under these agreements; the impact of foreign currency exchange rates, interest rate and fuel price fluctuations; the settlement of conversions of our convertible notes, if any, in shares of our common stock or a combination of cash and shares of our common stock, which may result in substantial dilution for our existing shareholders; our expectation that we will not declare or pay dividends on our common stock for the near future; vacation industry competition and changes in industry capacity and overcapacity; the risks and costs associated with protecting our systems and maintaining integrity and security of our business information, as well as personal data of our guests, employees and others; the impact of new or changing legislation and regulations or governmental orders on our business; pending or threatened litigation, investigations and enforcement actions; the effects of weather, natural disasters and seasonality on our business; emergency ship repairs, including the related lost revenue; the impact of issues at shipyards, including ship delivery delays, ship cancellations or ship construction cost increases; shipyard unavailability; and the unavailability or cost of air service.
In addition, many of these risks and uncertainties are currently heightened by and will continue to be heightened by, or in the future may be heightened by, the COVID-19 pandemic. It is not possible to predict or identify all such risks.
More information about factors that could affect our operating results is included under the caption “Risk Factors” in our most recent quarterly report on Form 10-Q, as well as our other filings with the SEC, and the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our most recent annual report on Form 10-K, copies of which may be obtained by visiting our Investor Relations website at www.rclinvestor.com or the SEC’s website at www.sec.gov. Undue reliance should not be placed on the forward-looking statements in this release, which are based on information available to us on the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.