| 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 | | Six Months Ended | | | June 30, | | June 30, | | | 2025 | | 2024 | | 2025 | | 2024 | Net income (loss) | | $ | 29,992 | | $ | 163,436 | | $ | (10,303) | | $ | 180,789 | Effect of dilutive securities - exchangeable notes | | | — | | | 16,017 | | | — | | | 9,225 | Net income and assumed conversion of exchangeable notes - Diluted EPS | | $ | 29,992 | | $ | 179,453 | | $ | (10,303) | | $ | 190,014 | Basic weighted-average shares outstanding | | | 446,586,784 | | | 434,807,434 | | | 443,882,011 | | | 430,805,477 | Dilutive effect of share awards | | | 1,446,354 | | | 2,054,804 | | | — | | | 3,135,246 | Dilutive effect of exchangeable notes | | | — | | | 76,727,496 | | | — | | | 34,137,750 | Diluted weighted-average shares outstanding | | | 448,033,138 | | | 513,589,734 | | | 443,882,011 | | | 468,078,473 | Basic EPS | | $ | 0.07 | | $ | 0.38 | | $ | (0.02) | | $ | 0.42 | Diluted EPS | | $ | 0.07 | | $ | 0.35 | | $ | (0.02) | | $ | 0.41 |
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| Schedule of reconciliation of adjusted operating income (loss) to net income (loss) 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 (loss) before income taxes (in thousands): | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | June 30, | | June 30, | | | 2025 | | 2024 | | 2025 | | 2024 | Total revenue | | $ | 2,517,497 | | $ | 2,372,492 | | $ | 4,645,050 | | $ | 4,563,707 | Cruise operating expense | | | | | | | | | | | | | Commissions, transportation and other | | | 487,835 | | | 501,039 | | | 883,178 | | | 937,249 | Onboard and other | | | 187,684 | | | 171,707 | | | 326,542 | | | 303,743 | Adjusted payroll and related (1) | | | 340,173 | | | 324,783 | | | 669,300 | | | 663,731 | Fuel | | | 157,377 | | | 174,964 | | | 332,391 | | | 372,698 | Food | | | 81,323 | | | 77,046 | | | 156,911 | | | 161,754 | Other | | | 196,495 | | | 199,421 | | | 381,126 | | | 391,875 | Adjusted total cruise operating expense | | | 1,450,887 | | | 1,448,960 | | | 2,749,448 | | | 2,831,050 | Other operating expense | | | | | | | | | | | | | Adjusted marketing, general and administrative (2) | | | 372,563 | | | 335,864 | | | 748,482 | | | 680,999 | Depreciation and amortization | | | 243,760 | | | 222,405 | | | 475,057 | | | 445,334 | Adjusted total other operating expense | | | 616,323 | | | 558,269 | | | 1,223,539 | | | 1,126,333 | Adjusted operating income | | $ | 450,287 | | $ | 365,263 | | $ | 672,063 | | $ | 606,324 | | | | | | | | | | | | | | Adjusted operating income | | $ | 450,287 | | $ | 365,263 | | $ | 672,063 | | $ | 606,324 | Non-cash compensation (3) | | | (26,451) | | | (23,702) | | | (47,285) | | | (46,369) | Interest expense, net | | | (236,782) | | | (178,472) | | | (454,654) | | | (396,649) | Other income (expense), net | | | (156,425) | | | 1,896 | | | (180,930) | | | 20,033 | Net income (loss) before income taxes | | $ | 30,629 | | $ | 164,985 | | $ | (10,806) | | $ | 183,339 |
| (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): |
| | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | June 30, | | June 30, | | | 2025 | | 2024 | | 2025 | | 2024 | Service cost | | $ | 552 | | $ | 718 | | $ | 1,105 | | $ | 1,437 |
| (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. |
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