1 unchanged sentence
Financial Instruments and Other
−Removed: We are exposed to market risk attributable to changes in interest rates, foreign currency exchange rates and fuel prices.
+Added: We are exposed to market risk attributable to changes in interest rates, foreign currency exchange rates, fuel prices, and carbon emission allowances.
We try to mitigate these risks through a combination of our normal operating and financing activities and through the use of derivative financial instruments pursuant to our hedging practices and policies.
6 unchanged sentences
Interest Rate Risk
−Removed: Our exposure to market risk for changes in interest rates relates to our long-term debt obligations including future interest payments.
−Removed: At December 31, 2023, approximately 83% of our long-term debt was effectively fixed as compared to 75.0% as of December 31, 2022.
+Added: Our exposure to market risk for changes in interest rates primarily relates to our debt obligations including future interest payments.
+Added: At December 31, 2024 and 2023, approximately 92.3% and 83.2%, respectively, of our debt was effectively fixed-rate debt, which is net of our interest rate swap agreements.
We use interest rate swap agreements to modify our exposure to interest rate movements and to manage our interest expense.
−Removed: 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: 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.
−Removed: Market risk associated with our long-term floating-rate debt is the potential increase in interest expense from an increase in interest rates.
+Added: The estimated fair value of our fixed-rate debt at December 31, 2024 was $18.4 billion, using quoted market prices, where available, or using the present value of expected future cash flows which incorporates risk profile.
+Added: A hypothetical one percentage point decrease in interest rates at December 31, 2024 would increase the fair value of our hedged and unhedged fixed-rate debt by approximately $701 million.
+Added: Market risk associated with our floating-rate debt is the potential increase in interest expense from an increase in interest rates.
We use interest rate swap agreements that effectively convert a portion of our floating-rate debt to a fixed-rate basis to manage this risk.
1 unchanged sentence
At December 31, 2024, we maintained interest rate swap agreements on the following floating-rate debt instruments:
−Removed: Debt Instrument Swap Notional as of December 31, 2023 (In millions) Maturity Debt Floating Rate (3) All-in Fixed Rate
−Removed: Celebrity Reflection term loan
−Removed: $ 55 October 2024 Term SOFR 0.40% 2.88%
+Added: Debt Instrument Swap Notional as of December 31, 2024 (In millions) Maturity Debt Floating Rate Spread All-in Fixed Rate
Quantum of the Seas term loan
−Removed: 184 October 2026 Term SOFR 1.30% 3.78%
+Added: 123 October 2026 Term SOFR plus 1.30% 3.78%
Anthem of the Seas term loan
−Removed: 211 April 2027 Term SOFR 1.30% 3.9%
+Added: 151 April 2027 Term SOFR plus 1.30% 3.9%
Ovation of the Seas term loan
−Removed: 311 April 2028 Term SOFR 1.00% 3.2%
+Added: 242 April 2028 Term SOFR plus 1.00% 3.2%
Harmony of the Seas term loan (1)
1 unchanged sentence
Odyssey of the Seas term loan (2)
−Removed: 345 October 2032 Term SOFR 0.96% 3.28%
+Added: 307 October 2032 Term SOFR plus 0.96% 3.28%
Odyssey of the Seas term loan (2)
−Removed: 173 October 2032 Term SOFR 0.96% 2.91%
+Added: 153 October 2032 Term SOFR plus 0.96% 2.91%
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2 unchanged sentences
(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.
−Removed: (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, 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: The estimated fair value, as of December 31, 2024, of our Euro-denominated forward contracts associated with our ship construction contracts was a liability of $92 million, based on the present value of expected future cash flows.
As of December 31, 2024, the aggregate cost of our ships on order, not including ships on order by our Partner Brands, was approximately $7.8 billion, of which we had deposited $815 million as of such date.
17 unchanged sentences
These instruments are not designated as hedging instruments.
−Removed: 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.
−Removed: These changes were recognized in earnings within Other (expense) income in our consolidated statements of comprehensive income (loss).
+Added: For the years ended December 31, 2024, 2023 and 2022 changes in the fair value of the foreign currency forward contracts resulted in (losses) gain of approximately $(77) million, $19 million and $(102) million, respectively, which offset gains (losses) arising from the remeasurement of monetary assets and liabilities denominated in foreign currencies in those same years of $65 million, $(43) million and $93 million, respectively.
+Added: These changes were recognized in earnings within Other income (expense) in our consolidated statements of comprehensive income (loss).
Fuel Price Risk
2 unchanged sentences
We use fuel swap agreements to mitigate the financial impact of fluctuations in fuel prices.
−Removed: As of December 31, 2023, we had fuel swap agreements to pay fixed prices for fuel with an aggregate notional amount of approximately $899 million, maturing through 2026.
+Added: As of December 31, 2024, we had fuel swap agreements to pay fixed prices for fuel with an aggregate notional amount of approximately $1.0 billion, maturing through 2027.
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 61% of our projected 2024 fuel
−Removed: requirements.
+Added: The fuel swap agreements designated as hedges of projected fuel purchases represented 60% of our projected 2025 fuel requirements.
The estimated fair value of our fuel swap agreements at December 31, 2024 was estimated to be a liability of $33 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.