13 unchanged sentences
We use interest rate swap agreements to modify our exposure to interest rate movements and to manage our interest expense.
−Removed: Market risk associated with our long-term fixed rate debt is the potential increase in fair value resulting from a decrease in interest rates.
+Added: Market risk associated with our fixed-rate debt is the potential increase in fair value resulting from a decrease in interest rates.
We use interest rate swap agreements that effectively convert a portion of our fixed-rate debt to a floating-rate basis to manage this risk.
−Removed: At December 31, 2021, we maintained interest rate swap agreements on the following fixed-rate debt instruments:
−Removed: Debt Instrument Swap Notional as of December 31, 2021 (In thousands) Maturity Debt Fixed Rate Swap Floating Rate:
−Removed: LIBOR plus All-in Swap Floating Rate as of December 31, 2021
−Removed: Unsecured senior notes 650,000 November 2022 5.25% 3.63% 3.79%
−Removed: These interest rate swap agreements are accounted for as fair value hedges.
+Added: During the quarter ended September 30, 2022, we redeemed our 5.25% senior unsecured notes due 2022 in full and terminated the related interest rate swap agreements, which resulted in the dedesignation of the fair value hedges and recognition of an immaterial loss representing the fair value hedge carrying amount adjustment on these notes.
+Added: At December 31, 2022, there were no interest rate swap agreements for fixed-rate debt instruments.
The estimated fair value of our long-term fixed-rate debt at December 31, 2022 was $14.8 billion, using quoted market prices, where available, or using the present value of expected future cash flows which incorporates risk profile.
The fair value of our fixed to floating interest rate swap agreements was estimated to be an asset of $7.7 million as of December 31, 2021, based on the present value of expected future cash flows.
−Removed: A hypothetical one percentage point decrease in interest rates at December 31, 2021 would increase the fair value of our hedged and unhedged long-term fixed-rate debt by approximately $105.3 million and would increase the fair value of our fixed to floating interest rate swap agreements by approximately $5.0 million.
+Added: A hypothetical one percentage point decrease in interest rates at December 31, 2022 would decrease the fair value of our hedged and unhedged long-term fixed-rate debt by approximately $369.4 million.
Market risk associated with our long-term floating-rate debt is the potential increase in interest expense from an increase in interest rates.
24 unchanged sentences
These interest rate swap agreements are accounted for as cash flow hedges.
−Removed: The fair value of our floating to fixed interest rate swap agreements was estimated to be a liability of $70.7 million as of December 31, 2021 based on the present value of expected future cash flows.
+Added: The fair value of our floating to fixed interest rate swap agreements was estimated to be an asset of $123.3 million as of December 31, 2022 based on the present value of expected future cash flows.
These interest rate swap agreements are accounted for as cash flow hedges.
3 unchanged sentences
The estimated fair value, as of December 31, 2022, of our Euro-denominated forward contracts associated with our ship construction contracts was a liability of $40.7 million, based on the present value of expected future cash flows.
−Removed: 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: As of December 31, 2022, the aggregate cost of our ships on order, not including ships on order by our Partner Brands, was approximately $9.8 billion, of which we had deposited $0.8 billion as of such date.
Approximately 52.3% of the aggregate cost of the ships under construction was exposed to fluctuations in the Euro exchange rate at December 31, 2022 and 2021, respectively.
9 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, 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.
−Removed: This forward currency contract matures in April 2022.
−Removed: 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.
+Added: We 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.
We had designated debt as a hedge of our net investments primarily in TUI Cruises of approximately €433.0 million, or approximately $461.9 million, through December 31, 2022.
2 unchanged sentences
On a regular basis, we enter into foreign currency forward contracts and, from time to time, we utilize cross-currency swap agreements and collar options to minimize the volatility resulting from the remeasurement of net monetary assets and liabilities denominated in a currency other than our functional currency or the functional currencies of our foreign subsidiaries.
−Removed: During 2021, we maintained an average of approximately $483.2 million of these foreign currency forward contracts.
+Added: During 2022, we maintained an average of approximately $1.1 billion of these foreign currency forward contracts.
These instruments are not designated as hedging instruments.
−Removed: For the years ended December 31, 2021, 2020 and 2019 changes in the fair value of the foreign currency forward contracts resulted in gains (losses) of approximately $(30.9) million, $(19.0) million and $1.4 million, respectively, which offset gains (losses) arising from the remeasurement of monetary assets and liabilities denominated in foreign currencies in those same years of $24.3 million, $(1.5) million and $0.4 million, respectively.
+Added: For the years ended December 31, 2022, 2021 and 2020 changes in the fair value of the foreign currency forward contracts resulted in losses of approximately $(101.8) million, $(30.9) million and $(19.0) million, respectively, which offset gains (losses) arising from the remeasurement of monetary assets and liabilities denominated in foreign currencies in those same years of $93.0 million, $24.3 million and $(1.5) million, respectively.
These changes were recognized in earnings within Other income (expense) in our consolidated statements of comprehensive income (loss).
5 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 54% of our projected 2022 fuel requirements and 15% of our projected 2023 fuel requirements.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: The estimated fair value of our fuel swap agreements at December 31, 2021 was estimated to be an asset of $40.3 million.
+Added: The fuel swap agreements designated as hedges of projected fuel purchases represented 50% of our projected 2023 fuel requirements.
+Added: The estimated fair value of our fuel swap agreements at December 31, 2022 was estimated to be a liability of $6.1 million.
We estimate that a hypothetical 10% increase in our weighted-average fuel price from that experienced during the year ended December 31, 2022 would increase our forecasted 2023 fuel cost by approximately $61.0 million, net of the impact of fuel swap agreements.
3 unchanged sentences
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.