18 unchanged sentences
LIBOR plus All-in Swap Floating Rate as of December 31, 2021
−Removed: Oasis of the Seas term loan
−Removed: $ 35,000 October 2021 5.41% 3.87% 4.12%
Unsecured senior notes 650,000 November 2022 5.25% 3.63% 3.79%
27 unchanged sentences
The effective dates of the $421.7 million and $191.7 million interest rate swap agreements are October 2020 and October 2022, respectively.
−Removed: The anticipated unsecured term loan for the financing of Odyssey of the Seas was initially expected to be drawn in October 2020.
−Removed: However, due to the impact of COVID-19 to shipyard operations, there is a delay in the ship delivery.
+Added: The unsecured term loan for the financing of Odyssey of the Seas was drawn on March 2021.
These interest rate swap agreements are accounted for as cash flow hedges.
5 unchanged sentences
The estimated fair value, as of December 31, 2021, of our Euro-denominated forward contracts associated with our ship construction contracts was a liability of $122.5 million, based on the present value of expected future cash flows.
−Removed: As of December 31, 2020, the aggregate cost of our ships on order, not including ships on order by our Partner Brands and the Silversea Cruises ships that remain contingent upon final documentation and financing, was approximately $14.2 billion, of which we had deposited $684.8 million as of such date.
−Removed: Approximately 66.3% and 65.9% of the aggregate cost of the ships under construction was exposed to fluctuations in the Euro exchange rate at December 31, 2020 and 2019, respectively.
+Added: As of December 31, 2021, the aggregate cost of our ships on order, not including ships on order by our Partner Brands, was approximately $12.4 billion, of which we had deposited $800.2 million as of such date.
+Added: Approximately 59.0% of the aggregate cost of the ships under construction was exposed to fluctuations in the Euro exchange rate at December 31, 2021 and 2020, respectively.
A hypothetical 10% strengthening of the Euro as of December 31, 2021, assuming no changes in comparative interest rates, would result in a $730.4 million increase in the United States dollar cost of the foreign currency denominated ship construction contracts exposed to fluctuations in the Euro exchange rate.
8 unchanged sentences
We consider our investments in our foreign operations to be denominated in relatively stable currencies and of a long-term nature.
−Removed: As of December 31, 2020, we maintained foreign currency forward contracts and designated them as hedges of a portion of our net investment in TUI Cruises of €245.0 million, or approximately $299.7 million based on the exchange rate at December 31, 2020.
−Removed: These forward currency contracts mature in October 2021.
+Added: As of December 31, 2021, we maintained a foreign currency forward contract and designated it as a hedge of a portion of our net investment in TUI Cruises of €245.0 million, or approximately $278.6 million based on the exchange rate at December 31, 2021.
+Added: This forward currency contract matures in April 2022.
We also address the exposure of our investments in foreign operations by denominating a portion of our debt in our subsidiaries' and investments' functional currencies and designating it as a hedge of these subsidiaries and investments.
13 unchanged sentences
These fuel swap agreements are generally accounted for as cash flow hedges.
−Removed: The fuel swap agreements designated as hedges of projected fuel purchases represented 40% of our projected 2021 fuel requirements, 23% of our projected 2022 fuel requirements and 5% of our projected 2023 fuel requirements.
−Removed: The current suspension of the cruise operations due to the COVID-19 pandemic and our 2020 and expected 2021 ship disposals resulted in reductions to our forecasted fuel consumption.
−Removed: As of December 31, 2020, the Company had outstanding fuel swaps of 229,850 and 14,650 metric tons maturing in 2021 and 2022, respectively, that no longer hedge forecasted fuel consumption.
−Removed: The estimated fair value of our fuel swap agreements at December 31, 2020 was estimated to be a liability of $88.0 million.
+Added: The fuel swap agreements designated as hedges of projected fuel purchases represented 54% of our projected 2022 fuel requirements and 15% of our projected 2023 fuel requirements.
+Added: The prior suspension of our cruise operations due to the COVID-19 pandemic and our gradual resumption of cruise operations has resulted in reductions to our forecasted fuel purchases.
+Added: As of December 31, 2021, the Company had outstanding fuel swaps of 231,900 metric tons, maturing in 2022, that do not hedge forecasted fuel consumption.
+Added: Of these swaps, 115,950 metric tons relate to fuel swap agreements with discontinued hedge accounting, in which we effectively pay fixed prices for our fuel purchases and receive floating prices from the counterparty.
+Added: The remaining 115,950 tons relate to fuel swap agreements that were not designated as hedges since inception, in which we effectively pay floating prices for our fuel purchases and receive fixed prices from the counterparty.
+Added: The estimated fair value of our fuel swap agreements at December 31, 2021 was estimated to be an asset of $40.3 million.
We estimate that a hypothetical 10% increase in our weighted-average fuel price from that experienced during the year ended December 31, 2021 would increase our forecasted 2022 fuel cost by approximately $50.0 million, net of the impact of fuel swap agreements.
Financial Statements and Supplementary Data
−Removed: Our Consolidated Financial Statements and Quarterly Selected Financial Data are included beginning on page F-1 of this report.
+Added: Our Consolidated Financial Statements are included beginning on page F-1 of this report.
Changes In and Disagreements With Accountants on Accounting and Financial Disclosure
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.