Quarterly report [Sections 13 or 15(d)]

Summary of Significant Accounting Policies (Tables)

v3.25.3
Summary of Significant Accounting Policies (Tables)
9 Months Ended
Sep. 30, 2025
Accounting Policies [Abstract]  
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):

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​

​

​

​

​

​

​

​

​

​

​

​

​

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

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​

​

​

​

​

​

​

​

​

​

​

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

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​

4,298,266

​

​

4,364,415

Other operating expense

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​

​

​

​

​

​

​

​

​

​

​

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):

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​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

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.