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 fixed-rate debt is the potential increase in fair value resulting from a decrease in interest rates.
−Removed: 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: 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.
−Removed: 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, 2023 was $15.9 billion, using quoted market prices, where available, or using the present value of expected future cash flows which incorporates risk profile.
−Removed: 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, 2022 would decrease the fair value of our hedged and unhedged long-term fixed-rate debt by approximately $369.4 million.
+Added: A hypothetical one percentage point decrease in interest rates at December 31, 2023 would increase the fair value of our hedged and unhedged long-term fixed-rate debt by approximately $2.1 billion.
Market risk associated with our long-term floating-rate debt is the potential increase in interest expense from an increase in interest rates.
2 unchanged sentences
At December 31, 2023, we maintained interest rate swap agreements on the following floating-rate debt instruments:
−Removed: Debt Instrument Swap Notional as of December 31, 2022 (In thousands) Maturity Debt Floating Rate All-in Swap Fixed Rate
+Added: Debt Instrument Swap Notional as of December 31, 2023 (In millions) Maturity Debt Floating Rate (3) All-in Fixed Rate
Celebrity Reflection term loan
−Removed: $ 109,083 October 2024 LIBOR plus 0.40% 2.85%
+Added: $ 55 October 2024 Term SOFR 0.40% 2.88%
Quantum of the Seas term loan
−Removed: 245,000 October 2026 LIBOR plus 1.30% 3.74%
+Added: 184 October 2026 Term SOFR 1.30% 3.78%
Anthem of the Seas term loan
−Removed: 271,875 April 2027 LIBOR plus 1.30% 3.86%
+Added: 211 April 2027 Term SOFR 1.30% 3.9%
Ovation of the Seas term loan
−Removed: 380,417 April 2028 LIBOR plus 1.00% 3.16%
+Added: 311 April 2028 Term SOFR 1.00% 3.2%
Harmony of the Seas term loan (1)
1 unchanged sentence
Odyssey of the Seas term loan (2)
−Removed: 383,333 October 2032 LIBOR plus 0.96% 3.21%
+Added: 345 October 2032 Term SOFR 0.96% 3.28%
Odyssey of the Seas term loan (2)
−Removed: 191,667 October 2032 LIBOR plus 0.96% 2.84%
+Added: 173 October 2032 Term SOFR 0.96% 2.91%
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1 unchanged sentence
Amount presented is based on the exchange rate as of December 31, 2023.
−Removed: (2) Interest rate swap agreements hedging the term loan of Odyssey of the Seas include LIBOR zero-floors matching the debt LIBOR zero-floor.
−Removed: The effective dates of the $383.3 million and $191.7 million interest rate swap agreements are October 2020 and October 2022, respectively.
−Removed: The unsecured term loan for the financing of Odyssey of the Seas was drawn on March 2021.
+Added: (2) Interest rate swap agreements hedging the term loan of Odyssey of the Seas include Term SOFR zero-floors, Term SOFR with no floors, and Overnight SOFR.
+Added: (3) During the year ended December 31, 2023, we completed our transition from LIBOR to Term SOFR rates for substantially all of our Interest rate swap agreements.
These interest rate swap agreements are accounted for as cash flow hedges.
4 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 manage portions of the exposure to movements in foreign currency exchange rates.
−Removed: 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, 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.
−Removed: 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.
+Added: The estimated fair value, as of December 31, 2023, of our Euro-denominated forward contracts associated with our ship construction contracts was an asset of $51 million, based on the present value of expected future cash flows.
+Added: As of December 31, 2023, the aggregate cost of our ships on order, not including ships on order by our Partner Brands, was approximately $7.9 billion, of which we had deposited $698 million as of such date.
+Added: Approximately 43.5% and 52.3% of the aggregate cost of the ships under construction was exposed to fluctuations in the Euro exchange rate at December 31, 2023 and 2022, respectively.
A hypothetical 10% strengthening of the Euro as of December 31, 2023, assuming no changes in comparative interest rates, would result in a $346 million increase in the United States dollar cost of the foreign currency denominated ship construction contracts exposed to fluctuations in the Euro exchange rate.
15 unchanged sentences
These instruments are not designated as hedging instruments.
−Removed: 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.
−Removed: These changes were recognized in earnings within Other income (expense) in our consolidated statements of comprehensive income (loss).
+Added: For the years ended December 31, 2023, 2022 and 2021 changes in the fair value of the foreign currency forward contracts resulted in gain (losses) of approximately $19 million, $(102) million and $(31) million, respectively, which offset gains (losses) arising from the remeasurement of monetary assets and liabilities denominated in foreign currencies in those same years of $(43) million, $93 million and $24 million, respectively.
+Added: These changes were recognized in earnings within Other (expense) income in our consolidated statements of comprehensive income (loss).
Fuel Price Risk
4 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 50% of our projected 2023 fuel requirements.
+Added: The fuel swap agreements designated as hedges of projected fuel purchases represented 61% of our projected 2024 fuel
+Added: requirements.
The estimated fair value of our fuel swap agreements at December 31, 2023 was estimated to be a liability of $48 million.
4 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.