| Schedule of reconciliation between basic and diluted EPS |
A reconciliation between basic and diluted earnings per share was as follows (in thousands, except share and per share data):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, |
|
September 30, |
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
Net income |
|
$ |
419,295 |
|
$ |
474,932 |
|
$ |
408,992 |
|
$ |
655,721 |
Effect of dilutive securities - exchangeable notes |
|
|
7,287 |
|
|
14,965 |
|
|
32,056 |
|
|
48,323 |
Net income and assumed conversion of exchangeable notes - Diluted EPS |
|
$ |
426,582 |
|
$ |
489,897 |
|
$ |
441,048 |
|
$ |
704,044 |
Basic weighted-average shares outstanding |
|
|
450,996,955 |
|
|
439,697,135 |
|
|
446,279,721 |
|
|
433,790,997 |
Dilutive effect of share awards |
|
|
4,230,422 |
|
|
3,333,627 |
|
|
3,630,304 |
|
|
3,201,373 |
Dilutive effect of exchangeable notes |
|
|
40,500,001 |
|
|
71,848,157 |
|
|
55,407,417 |
|
|
77,009,661 |
Diluted weighted-average shares outstanding |
|
|
495,727,378 |
|
|
514,878,919 |
|
|
505,317,442 |
|
|
514,002,031 |
Basic EPS |
|
$ |
0.93 |
|
$ |
1.08 |
|
$ |
0.92 |
|
$ |
1.51 |
Diluted EPS |
|
$ |
0.86 |
|
$ |
0.95 |
|
$ |
0.87 |
|
$ |
1.37 |
|
| Schedule of reconciliation of adjusted operating income to net income before income taxes |
The below table includes our calculation of adjusted operating income, our significant segment expenses therein, and a reconciliation of adjusted operating income to net income before income taxes (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, |
|
September 30, |
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
Total revenue |
|
$ |
2,938,142 |
|
$ |
2,806,578 |
|
$ |
7,583,192 |
|
$ |
7,370,285 |
Cruise operating expense |
|
|
|
|
|
|
|
|
|
|
|
|
Commissions, transportation and other |
|
|
521,981 |
|
|
564,614 |
|
|
1,405,159 |
|
|
1,501,863 |
Onboard and other |
|
|
222,002 |
|
|
211,753 |
|
|
548,544 |
|
|
515,496 |
Adjusted payroll and related (1) |
|
|
349,355 |
|
|
331,856 |
|
|
1,018,655 |
|
|
995,587 |
Fuel |
|
|
175,913 |
|
|
164,934 |
|
|
508,304 |
|
|
537,632 |
Food |
|
|
81,866 |
|
|
78,096 |
|
|
238,777 |
|
|
239,850 |
Other |
|
|
197,701 |
|
|
182,112 |
|
|
578,827 |
|
|
573,987 |
Adjusted total cruise operating expense |
|
|
1,548,818 |
|
|
1,533,365 |
|
|
4,298,266 |
|
|
4,364,415 |
Other operating expense |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted marketing, general and administrative (2) |
|
|
370,072 |
|
|
342,218 |
|
|
1,118,554 |
|
|
1,023,217 |
Depreciation and amortization |
|
|
250,832 |
|
|
218,428 |
|
|
725,889 |
|
|
663,762 |
Adjusted total other operating expense |
|
|
620,904 |
|
|
560,646 |
|
|
1,844,443 |
|
|
1,686,979 |
Adjusted operating income |
|
$ |
768,420 |
|
$ |
712,567 |
|
$ |
1,440,483 |
|
$ |
1,318,891 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income |
|
$ |
768,420 |
|
$ |
712,567 |
|
$ |
1,440,483 |
|
$ |
1,318,891 |
Non-cash compensation (3) |
|
|
(18,971) |
|
|
(21,357) |
|
|
(66,256) |
|
|
(67,726) |
Interest expense, net |
|
|
(328,816) |
|
|
(175,216) |
|
|
(783,470) |
|
|
(571,865) |
Other income (expense), net |
|
|
13,003 |
|
|
(34,146) |
|
|
(167,927) |
|
|
(14,113) |
Net income before income taxes |
|
$ |
433,636 |
|
$ |
481,848 |
|
$ |
422,830 |
|
$ |
665,187 |
| (1) |
Excludes non-cash share-based compensation expenses related to equity awards for shipboard officers (see Note 9 – “Employee Benefits and Compensation Plans”) and non-cash deferred compensation expenses related to the crew pension plan as follows (in thousands): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, |
|
September 30, |
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
Service cost |
|
$ |
553 |
|
$ |
719 |
|
$ |
1,658 |
|
$ |
2,156 |
| (2) |
Excludes non-cash share-based compensation expenses related to equity awards for corporate employees (see Note 9 – “Employee Benefits and Compensation Plans”). |
| (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. |
|