<SEC-DOCUMENT>0000884887-19-000026.txt : 20190710
<SEC-HEADER>0000884887-19-000026.hdr.sgml : 20190710
<ACCEPTANCE-DATETIME>20190514131433
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0000884887-19-000026
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20190514

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ROYAL CARIBBEAN CRUISES LTD
		CENTRAL INDEX KEY:			0000884887
		STANDARD INDUSTRIAL CLASSIFICATION:	WATER TRANSPORTATION [4400]
		IRS NUMBER:				980081645
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		1050 CARIBBEAN WAY
		CITY:			MIAMI
		STATE:			FL
		ZIP:			33132
		BUSINESS PHONE:		3055396000

	MAIL ADDRESS:	
		STREET 1:		1050 CARIBBEAN WAY
		CITY:			MIAMI
		STATE:			FL
		ZIP:			33132

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	RA HOLDINGS INC
		DATE OF NAME CHANGE:	19920424
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>
<html>
<head>
<title></title>
<!--Licensed to: Royal Caribbean Cruises Ltd.
    Document created using EDGARfilings PROfile 4.5.0.0
    Copyright 1995 - 2019 Broadridge-->
</head>
<body style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif" bgcolor="#ffffff" text="#000000">
<div style="FONT: 20pt/13.7pt 'Times New Roman', Times, serif"><u>Royal Caribbean Cruises Ltd.</u></div>

<div style="LINE-HEIGHT: 13.7pt">&#160;</div>

<div style="LINE-HEIGHT: 13.7pt">
<table id="z88a9087804a5401ea2d7691a6bc43b93" style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 100%" cellspacing="0" cellpadding="0" border="0">
<tr>
<td style="WIDTH: 33.33%">
<div>1050 Caribbean Way</div>
</td>
<td style="WIDTH: 33.33%">
<div>&#160;</div>
</td>
<td style="WIDTH: 33.33%">
<div>tel:&#160; 305.539.6000</div>
</td>
</tr>

<tr>
<td style="WIDTH: 33.33%">
<div>Miami, Fl 33132.2096&#160; USA</div>
</td>
<td style="WIDTH: 33.33%">
<div>&#160;</div>
</td>
<td style="WIDTH: 33.33%">
<div>www.royalcaribbean.com</div>
</td>
</tr>
</table>

<br style="LINE-HEIGHT: 13.7pt">
</div>

<div style="LINE-HEIGHT: 13.7pt"><br style="LINE-HEIGHT: 13.7pt">
</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt">FOIA CONFIDENTIAL TREATMENT REQUESTED UNDER 17 C.F.R. &#167; 200.83</div>

<div style="MARGIN-BOTTOM: 10pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; LINE-HEIGHT: 17.15pt">BY ROYAL CARIBBEAN CRUISES LTD.</div>

<div style="MARGIN-BOTTOM: 10pt; FONT-SIZE: 12pt; LINE-HEIGHT: 17.15pt"><br style="LINE-HEIGHT: 17.15pt">
</div>

<div style="MARGIN-BOTTOM: 10pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left; LINE-HEIGHT: 17.15pt">May 14, 2019</div>

<div style="FONT-SIZE: 12pt; LINE-HEIGHT: 17.15pt"><br style="LINE-HEIGHT: 17.15pt">
</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left; LINE-HEIGHT: 17.15pt">Ms. Theresa Brillant</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left; LINE-HEIGHT: 17.15pt">Office of Transportation and Leisure</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left; LINE-HEIGHT: 17.15pt">Division of Corporation Finance</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left; LINE-HEIGHT: 17.15pt">Securities and Exchange Commission</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left; LINE-HEIGHT: 17.15pt">100 F Street, N.E.</div>

<div style="MARGIN-BOTTOM: 12pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left; LINE-HEIGHT: 17.15pt">Washington, DC&#160;&#160; 20549-3561</div>

<div style="FONT-SIZE: 12pt; TEXT-ALIGN: left; LINE-HEIGHT: 17.15pt"><font style="FONT-FAMILY: 'Times New Roman', Times, serif">cc:</font><font id="TRGRRTFtoHTMLTab" style="TEXT-INDENT: 0px">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><font style="FONT-FAMILY: 'Times New Roman', Times, serif">Andrew Mew</font></div>

<div style="FONT-SIZE: 12pt; LINE-HEIGHT: 17.15pt"><br style="LINE-HEIGHT: 17.15pt">
</div>

<div style="FONT-SIZE: 12pt; LINE-HEIGHT: 17.15pt"><br style="LINE-HEIGHT: 17.15pt">
</div>

<div style="FONT-SIZE: 12pt; TEXT-ALIGN: left; LINE-HEIGHT: 17.15pt"><font style="FONT-FAMILY: 'Times New Roman', Times, serif">RE:&#160;&#160;&#160;&#160;&#160; </font><font style="FONT-FAMILY: 'Times New Roman', Times, serif">Royal Caribbean Cruises Ltd.</font></div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left; LINE-HEIGHT: 17.15pt; TEXT-INDENT: 36pt">Form 10-K for Fiscal Year Ended December 31, 2018</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left; LINE-HEIGHT: 17.15pt; TEXT-INDENT: 36pt">Filed February 22, 2019</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left; LINE-HEIGHT: 17.15pt; TEXT-INDENT: 36pt">File No. 001-11884</div>

<div style="FONT-SIZE: 12pt; LINE-HEIGHT: 17.15pt"><br style="LINE-HEIGHT: 17.15pt">
</div>

<div style="MARGIN-BOTTOM: 10pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left; LINE-HEIGHT: 17.15pt">Dear Ms. Brillant:</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 36pt">This letter indicates the responses of Royal Caribbean Cruises Ltd. (the "Company") to the comments of the staff (the "Staff") of the Division of Corporation Finance of the Securities and Exchange Commission (the "Commission") set forth in your letter dated April 30, 2019 in relation to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2018 filed on February 22, 2019 (the "Form 10-K").</div>

<div style="FONT-SIZE: 12pt; LINE-HEIGHT: 13.7pt"><br style="LINE-HEIGHT: 13.7pt">
</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 36pt">For your convenience, we have set forth below in bold and italicized type each of the Staff's comments to the Form 10-K followed in each case by the Company's response.</div>

<div style="FONT-SIZE: 12pt; LINE-HEIGHT: 13.7pt"><br style="LINE-HEIGHT: 13.7pt">
</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt"><u>Form 10-K for the Year Ended December 31, 2018</u></div>

<div style="FONT-SIZE: 12pt; LINE-HEIGHT: 13.7pt"><br style="LINE-HEIGHT: 13.7pt">
</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt"><u>Executive Overview, page 46</u></div>

<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt">&#160;</div>

<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt">&#160;</div>

<div id="DSPFPageBreakArea" style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt">
<div id="DSPFPageBreak" style="PAGE-BREAK-AFTER: always">
<hr style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000" noshade="noshade">
</div>
</div>

<!--PROfilePageNumberReset%Num%2%%%-->
<div style="FONT-SIZE: 11pt; LINE-HEIGHT: 13.7pt"><br style="LINE-HEIGHT: 13.7pt">
</div>

<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: bold; FONT-STYLE: italic; TEXT-ALIGN: justify; MARGIN-LEFT: 36pt; LINE-HEIGHT: 13.7pt; TEXT-INDENT: -14.4pt">1.&#160; Please refer to comment two in your response letter dated May 3, 2017. In this regard, we note your intended disclosure in future filings to discuss changes in comparable GAAP measures with equal or greater prominence when discussing non-GAAP measures, specifically a discussion on "gross yields" in the case of "net yields on a constant currency basis", "gross cruise costs" in the case of "net cruise costs excluding fuel" and "onboard revenues" in the case of "net onboard revenue on a constant currency basis." It appears that the discussion in the Executive Overview on page 46 of the non-GAAP measures "net yields on a constant-currency basis", "net onboard revenue", and "net cruise costs excluding fuel" is not balanced with a discussion on GAAP measures with equal or greater prominence. Please advise.</div>

<div style="FONT-SIZE: 11pt; LINE-HEIGHT: 13.7pt"><br style="LINE-HEIGHT: 13.7pt">
</div>

<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; MARGIN-LEFT: 36pt; LINE-HEIGHT: 13.7pt"><font style="FONT-FAMILY: 'Times New Roman', Times, serif"><u>Response</u></font>:</div>

<div style="FONT-SIZE: 11pt; LINE-HEIGHT: 13.7pt"><br style="LINE-HEIGHT: 13.7pt">
</div>

<div style="MARGIN-BOTTOM: 10pt; FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; MARGIN-LEFT: 36pt; LINE-HEIGHT: 17.15pt">We acknowledge the Staff's comment that the Executive Overview as currently written appears to present an unbalanced view of non-GAAP and comparable GAAP measures.&#160; We respectfully wish to convey to the Staff our opinion that the Executive Overview, when viewed in the context of the entire MD&amp;A, presents a balanced view.&#160; The MD&amp;A contains numerous prominent references to GAAP financial measures, and the Company is aware of the Staff's guidance in CDI 102.10 which states that the determination of whether <font style="FONT-FAMILY: 'Times New Roman', Times, serif; BACKGROUND-COLOR: #ffffff">a non-GAAP measure is more prominent than the comparable GAAP measure generally depends on the facts and circumstances in which the disclosure is made.&#160;</font> The Company believes that the facts and circumstances around the GAAP disclosures in its MD&amp;A supports a conclusion that they are equally as prominent as the non-GAAP disclosures. Nevertheless, the Company acknowledges the Staff's position that the additional disclosures should be in the Executive Overview.&#160; Accordingly, the Company agrees in future filings to either expand its disclosures or remove references to the non-GAAP measures in the Executive Overview.</div>

<div style="FONT-SIZE: 11pt; LINE-HEIGHT: 13.7pt"><br style="LINE-HEIGHT: 13.7pt">
</div>

<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt"><u>Note 4. Revenues, page F-18</u></div>

<div style="FONT-SIZE: 11pt; LINE-HEIGHT: 13.7pt"><br style="LINE-HEIGHT: 13.7pt">
</div>

<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: bold; FONT-STYLE: italic; TEXT-ALIGN: justify; MARGIN-LEFT: 36pt; LINE-HEIGHT: 13.7pt; TEXT-INDENT: -14.4pt">2.&#160; We note that rewards are offered to guests through loyalty programs. Please tell us your consideration of identifying the points awarded to guests as a separate performance obligation and allocating the transaction price (i.e. cost of a cruise ticket) to the cruise and the loyalty points. See ASC 606-10-25-14 and ASC 606-10-55-353 through 356.</div>

<div style="FONT-SIZE: 11pt; LINE-HEIGHT: 13.7pt"><br style="LINE-HEIGHT: 13.7pt">
</div>

<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; MARGIN-LEFT: 36pt; LINE-HEIGHT: 13.7pt"><font style="FONT-FAMILY: 'Times New Roman', Times, serif"><u>Response</u></font>:</div>

<div style="FONT-SIZE: 11pt; LINE-HEIGHT: 13.7pt"><br style="LINE-HEIGHT: 13.7pt">
</div>

<div style="MARGIN-BOTTOM: 12pt; FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; MARGIN-LEFT: 36pt; LINE-HEIGHT: 13.7pt">Our loyalty programs were established to encourage repeat business and consist, broadly, of two types of benefits: (1) complimentary cruise benefits and (2) all other status benefits including but not limited to, priority ship embarkation, priority waitlist for shore excursions, discounts on laundry and internet services, onboard discount coupons,</div>

<div style="MARGIN-BOTTOM: 12pt; FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center; MARGIN-LEFT: 36pt; LINE-HEIGHT: 13.7pt">&#160;</div>

<div id="DSPFPageBreakArea" style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt">
<div id="DSPFPageNumberArea" style="TEXT-ALIGN: center"><font id="DSPFPageNumber" style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: normal; FONT-STYLE: normal">2</font></div>

<div id="DSPFPageBreak" style="PAGE-BREAK-AFTER: always">
<hr style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000" noshade="noshade">
</div>
</div>

<div style="MARGIN-BOTTOM: 12pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; MARGIN-LEFT: 36pt; LINE-HEIGHT: 13.7pt">upgraded bathroom amenities, ship tours and stateroom upgrades. Guests achieve tiered status and the related benefits associated with the respective tier based on achieving a certain level of cruise points which are earned in proportion to the number of cruise days and stateroom category purchased, with the complimentary cruise benefit requiring the highest level of cruise days purchased by our guests. Loyalty benefits do not expire and, except for complimentary cruises, are not reduced when rewards are accessed by guests.&#160; Once a guest takes a complimentary cruise, however, the benefit is consumed and the guest must purchase a certain number of additional cruises to re-establish this benefit. Overall, the aforementioned benefits offered to our guests through our loyalty programs are immaterial to our consolidated financial statements.&#160; Specifically, the annual value of complementary cruises historically redeemed has been less than $[***] and the annual value of tiered status benefits provided to our loyalty guests, at the time of adoption, was approximately $[***] or [***]% of our total revenues.</div>

<div style="MARGIN-BOTTOM: 12pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; MARGIN-LEFT: 36pt; LINE-HEIGHT: 13.7pt">Pursuant to ASC 606-10-25-14, we first assessed the goods and services promised within the cruise ticket contract to identify our performance obligations to our guests.&#160; A key consideration was whether certain loyalty program benefits, obtained by purchasing a cruise ticket contract, constituted a "material right," and therefore a performance obligation that required an allocation of the transaction price (i.e. cost of a cruise ticket) between the cruise and the loyalty benefits in accordance with ASC 606.</div>

<div style="MARGIN-BOTTOM: 12pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; MARGIN-LEFT: 36pt; LINE-HEIGHT: 13.7pt">The first benefits category we considered under ASC 606 was our complimentary cruise benefit, which we believe provides a "material right" (pursuant to ASC 606-10-25-18) that should be accounted for as a separate performance obligation to which a portion of the transaction price should be allocated to that performance obligation on a standalone selling price basis.&#160; Under our loyalty programs, a guest can earn a complimentary cruise after completing a specific number of cruises (i.e., approximately [***] cruises based on a [***] cruise itinerary).&#160; Considering the high volume of cruises needed to accumulate enough points to earn this complimentary cruise benefit, the vast majority of cruises taken by loyalty program members will never result in a complimentary cruise being earned.&#160; Historically, less than [***]% of our guests under our loyalty programs have earned and redeemed a complimentary cruise.&#160; As a result, we concluded that the complimentary cruise benefit is a material right requiring allocation of the transaction price (i.e. cost of a cruise ticket) in accordance with ASC 606-10-25-14 and ASC 606-10-55-353 through 356. However, given the immateriality of the redemption rate and associated value of the complimentary cruise benefit to our consolidated financial statements, we have not accounted for this benefit separately from the cruise ticket upon adoption of ASC 606.</div>

<div style="MARGIN-BOTTOM: 12pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; MARGIN-LEFT: 36pt; LINE-HEIGHT: 13.7pt">The second category of benefits considered under our loyalty programs were various other status benefits offered to our loyalty program members. Of these benefits, we viewed only those benefits that we sell on a standalone basis or, to the best of our knowledge, are sold separately by our competitors as goods and services that should be analyzed as to whether they represent separate performance obligations under ASC 606.</div>

<div style="MARGIN-BOTTOM: 12pt; FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center; MARGIN-LEFT: 36pt; LINE-HEIGHT: 13.7pt">&#160;</div>

<div id="DSPFPageBreakArea" style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt">
<div id="DSPFPageNumberArea" style="TEXT-ALIGN: center"><font id="DSPFPageNumber" style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: normal; FONT-STYLE: normal">3</font></div>

<div id="DSPFPageBreak" style="PAGE-BREAK-AFTER: always">
<hr style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000" noshade="noshade">
</div>
</div>

<div style="MARGIN-BOTTOM: 12pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; MARGIN-LEFT: 36pt; LINE-HEIGHT: 13.7pt">These benefits include discounts on stateroom upgrades, internet service, spa services, laundry, specialty restaurants, food and beverage items and other discount coupons ("tiered status benefits").</div>

<div style="MARGIN-BOTTOM: 12pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; MARGIN-LEFT: 36pt; LINE-HEIGHT: 13.7pt">We evaluated whether the aforementioned tiered status benefits available under our loyalty programs provide a material right, and determined that status and the related benefits available to our loyalty guests represents a marketing incentive rather than a material right. In our evaluation, we considered the guidance in the AICPA Revenue Recognition Audit and Accounting Guide, which encompasses the efforts of the AICPA's 16 industry task forces in addressing ASC 606 implementation topics. Our determination that the tiered status benefits are not a material right and a separate performance obligation was based on our practice of providing similar status benefits to guest who have not earned status with our brands through the appropriate level of past qualifying revenue transactions and accumulation of cruise points.&#160; Guests who have not earned status obtain similar tiered status benefits through our customary promotional programs, which we consistently use to attract new customers and incentivize future sales.&#160; In addition, we do not separately sell tiered status, the benefits offered under our loyalty programs do not result in losses on anticipated future cruise to be taken by the guests and tiered status under our loyalty programs is not transferable to others. Our evaluation considered an aggregate of transactions over a period of time, leading to our conclusion that tiered status under our loyalty programs should be accounted for as a marketing incentive. Therefore, we have not accounted for these tiered status benefits as a separate performance obligation upon adoption of ASC 606.</div>

<div style="MARGIN-BOTTOM: 12pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; MARGIN-LEFT: 36pt; LINE-HEIGHT: 13.7pt">We will continue to evaluate any changes to our loyalty programs in the future to determine whether such changes result in the recognition of a separate performance obligation.</div>

<div style="MARGIN-BOTTOM: 10pt; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center; MARGIN-LEFT: 36pt; LINE-HEIGHT: 17.15pt">******************************</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; LINE-HEIGHT: 13.7pt">If you have any questions regarding the foregoing responses, please feel free to contact me at (305) 539-6174.</div>

<div style="FONT-SIZE: 12pt; LINE-HEIGHT: 13.7pt"><br style="LINE-HEIGHT: 13.7pt">
</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left; MARGIN-LEFT: 234pt; LINE-HEIGHT: 13.7pt"><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;<font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;&#160; </font></font>Very truly yours,</div>

<div style="FONT-SIZE: 12pt; LINE-HEIGHT: 13.7pt"><br style="LINE-HEIGHT: 13.7pt">
</div>

<div style="TEXT-ALIGN: left; FONT: 12pt/13.7pt 'Times New Roman', Times, serif; MARGIN-LEFT: 234pt"><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160; </font>/s/ JASON T. LIBERTY</div>

<div style="FONT-SIZE: 12pt; LINE-HEIGHT: 13.7pt"><br style="LINE-HEIGHT: 13.7pt">
</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left; MARGIN-LEFT: 234pt; LINE-HEIGHT: 13.7pt"><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;</font>Jason T. Liberty</div>

<div style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left; MARGIN-LEFT: 234pt; LINE-HEIGHT: 13.7pt"><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;&#160;</font><font id="TRGRRTFtoHTMLTab">&#160;&#160;&#160;</font>Chief Financial Officer</div>

<div>&#160;</div>

<div>&#160;</div>

<div>&#160;</div>

<div>&#160;</div>

<div>&#160;</div>

<div>&#160;</div>

<div>&#160;</div>

<div>&#160;</div>

<div style="TEXT-ALIGN: center">&#160;</div>

<div>&#160;</div>

<div>&#160;</div>

<div><br>
</div>

<div id="DSPFPageNumberArea" style="TEXT-ALIGN: center"><font id="DSPFPageNumber" style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: normal; FONT-STYLE: normal">4</font></div>

<div style="TEXT-ALIGN: center">
<hr style="BORDER-TOP: medium none; HEIGHT: 2px; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; COLOR: #000000; TEXT-ALIGN: center; MARGIN-LEFT: auto; BORDER-LEFT: medium none; BACKGROUND-COLOR: #000000; MARGIN-RIGHT: auto" align="center" noshade="noshade">
</div>
</body>
</html>

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
