| 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) | | | 371,824 | | | 334,954 | | | 747,605 | | | 680,078 | Depreciation and amortization | | | 243,760 | | | 222,405 | | | 475,057 | | | 445,334 | Adjusted total other operating expense | | | 615,584 | | | 557,359 | | | 1,222,662 | | | 1,125,412 | Adjusted operating income | | $ | 451,026 | | $ | 366,173 | | $ | 672,940 | | $ | 607,245 | | | | | | | | | | | | | | Adjusted operating income | | $ | 451,026 | | $ | 366,173 | | $ | 672,940 | | $ | 607,245 | Non-cash compensation (3) | | | (26,451) | | | (23,702) | | | (47,285) | | | (46,369) | Interest expense, net | | | (260,013) | | | (205,765) | | | (504,235) | | | (453,183) | Other income (expense), net | | | (167,729) | | | 151,323 | | | 77,457 | | | 165,874 | Net income (loss) before income taxes | | $ | (3,167) | | $ | 288,029 | | $ | 198,877 | | $ | 273,567 |
| (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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