Annual report [Section 13 and 15(d), not S-K Item 405]

Summary of Significant Accounting Policies (Tables)

v3.25.0.1
Summary of Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Schedule of reconciliation between basic and diluted EPS

A reconciliation between basic and diluted EPS was as follows (in thousands, except share and per share data):

Year Ended December 31, 

    

2024

    

2023

    

2022

Net income (loss)

$

910,257

$

166,178

$

(2,269,909)

Effect of dilutive securities - exchangeable notes

63,308

Net income (loss) and assumed conversion of exchangeable notes - Diluted EPS

$

973,565

$

166,178

$

(2,269,909)

Basic weighted-average shares outstanding

 

435,278,605

 

424,424,962

 

419,773,195

Dilutive effect of share awards

 

4,039,709

 

2,975,887

 

Dilutive effect of exchangeable notes

75,712,234

Diluted weighted-average shares outstanding

 

515,030,548

 

427,400,849

 

419,773,195

Basic EPS

$

2.09

$

0.39

$

(5.41)

Diluted EPS

$

1.89

$

0.39

$

(5.41)

Schedule of revenues by destination

Revenues by destination consisted of the following (in thousands):

Year Ended December 31, 

    

2024

    

2023

 

2022

North America

$

5,318,676

$

5,002,796

$

3,076,788

Europe

 

3,035,406

 

2,754,160

 

1,557,308

Asia-Pacific

 

779,484

 

533,484

 

115,438

Other

 

346,085

 

259,484

 

94,226

Total revenue

$

9,479,651

$

8,549,924

$

4,843,760

Schedule of reconciliation of adjusted operating income (loss) to net income (loss) before income taxes

The below table includes our calculation of adjusted operating income (loss), our significant segment expenses therein, and a reconciliation of adjusted operating income (loss) to net income (loss) before income taxes (in thousands):

Year Ended December 31, 

    

2024

    

2023

    

2022

Total revenue

$

9,479,651

$

8,549,924

$

4,843,760

Cruise operating expense

 

  

 

  

 

  

Commissions, transportation and other

 

1,917,443

1,883,279

1,034,629

Onboard and other

 

661,553

 

599,904

 

357,932

Adjusted payroll and related (1)

 

1,322,465

 

1,241,243

 

1,064,799

Fuel

 

698,050

 

716,833

 

686,825

Food

 

312,992

 

358,310

 

263,807

Other

 

753,940

 

648,142

 

835,254

Adjusted total cruise operating expense

 

5,666,443

 

5,447,711

 

4,243,246

Other operating expense

 

  

 

  

 

  

Adjusted marketing, general and administrative (2)

 

1,362,404

 

1,241,482

 

1,286,585

Depreciation and amortization

 

890,242

 

808,568

 

749,326

Adjusted total other operating expense

 

2,252,646

 

2,050,050

 

2,035,911

Adjusted operating income (loss)

$

1,560,562

$

1,052,163

$

(1,435,397)

Adjusted operating income (loss)

$

1,560,562

$

1,052,163

$

(1,435,397)

Non-cash compensation (3)

(94,656)

(121,252)

(116,360)

Interest expense, net

 

(747,223)

 

(727,531)

 

(801,512)

Other income (expense), net

 

54,224

 

(40,204)

 

76,566

Net income (loss) before income taxes

$

772,907

$

163,176

$

(2,276,703)

(1) Excludes non-cash deferred compensation expenses related to the crew pension plan and non-cash share-based compensation expenses related to equity awards for shipboard officers. We refer you to Note 11 – “Employee Benefits and Share-Based Compensation.”
(2) Excludes non-cash share-based compensation expenses related to equity awards for corporate employees. We refer you to Note 11 – “Employee Benefits and Share-Based Compensation.”
(3) Includes non-cash deferred compensation expenses related to the crew pension plan and non-cash share-based compensation expenses related to equity awards, which are included in payroll and related expense and marketing, general and administrative expense.
Schedule of estimated residual values of ships

Depreciation is computed on a straight-line basis over the estimated useful lives of the assets, after a 10-15% reduction for the estimated residual values of ships as follows:

    

Useful Life

Ships

 

30‑35 years

Computer hardware and software

 

3‑15 years

Other property and equipment

 

3‑40 years

Leasehold improvements

 

Shorter of lease term or asset life

Ship improvements

 

Shorter of asset life or life of the ship