v3.25.4
Leases
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Leases
Note 9. Leases
Operating leases
Our operating leases primarily relate to preferred berthing arrangements, real estate, and shipboard equipment which are included within Operating lease right-of-use assets and Long-term operating lease liabilities, with the current portion of the liability included within Current portion of operating lease liabilities in our consolidated balance sheets as of December 31, 2025 and 2024. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet. We recognize lease expense for these leases on a straight-line basis over the lease term.
The company's preferred berthing agreement with Miami-Dade County ("County") includes the development plans for the County to finance the construction of a new and improved cruise Terminal G at PortMiami. The aggregate amount of the operating lease liabilities recorded for this berthing agreement was $168 million as of December 31, 2025 and December 31, 2024, respectively. There will be future remeasurements of the operating lease as the County completes several construction milestones throughout the term of the extended lease, including an expected remeasurement in 2027 or later, when the County satisfies substantial completion of Terminal G, as the minimum lease payments will increase at such time to approximately $55 million per year, with expected 3% annual increases thereafter.
For some of our real estate leases and berthing agreements, we do have the option to extend our current lease term. For those lease agreements with renewal options, the renewal periods for real estate leases primarily range from one to 10 years and the renewal periods for berthing agreements primarily range from one to 20 years. Generally, we do not include renewal options as a component of our present value calculation for berthing agreements. However, for certain real estate leases, we include them.
As most of our leases do not provide an implicit rate, we use our incremental borrowing rate in determining the present value of lease payments. We estimate our incremental borrowing rates based on Term SOFR and U.S. Treasury note rates corresponding to lease terms increased by the Company’s credit risk spread and reduced by the estimated impact of collateral. In addition, we have lease agreements with lease and non-lease components, which are generally accounted for separately. However, for berthing agreements, we account for the lease and non-lease components as a single lease component.
Finance leases
Our finance leases primarily relate to buildings and surrounding land located at our Miami headquarters. Finance leases are included within Property, and Equipment, net, and Long-term debt with the current portion of the liability included within Current portion of long-term debt in our consolidated balance sheets as of December 31, 2025 and 2024.
The Company's master lease agreement (“Master Lease”) with the County related to the buildings and surrounding land located at our Miami headquarters is classified as a finance lease in accordance with ASC 842, Leases. The Master Lease, including two five-year options to extend, which we are reasonably certain to exercise, expires in 2077. The agreement with the County includes financing plans to finalize the development of the buildings and land. The total aggregate amount of the finance lease liabilities recorded for this Master Lease was $108 million and $106 million as of December 31, 2025 and December 31, 2024, respectively. The development of the new campus buildings are expected to be completed in 2026, and the lease components will be recorded within our consolidated financial statements upon commencement.
In 2024, we executed the bargain purchase option and paid in full all of the outstanding aggregate principal amount of the Silver Dawn finance lease for approximately $227 million, which resulted in an immaterial loss on extinguishment of debt.

Supplemental balance sheet information for leases was as follows (in millions):
As of December 31, 2025As of December 31, 2024
Lease assets:
Finance lease right-of-use assets, net:
Property and equipment, gross$195 $146 
Accumulated depreciation(54)(50)
Property and equipment, net141 96 
Operating lease right-of-use assets620 677 
Total lease assets$761 $773 
Lease liabilities:
Finance lease liabilities:
Current portion of debt$4 $7 
   Long-term debt 155 110 
Total finance lease liabilities159 117 
Operating lease liabilities:
Current portion of operating lease liabilities90 74 
Long-term operating lease liabilities600 670 
Total operating lease liabilities690 744 
Total lease liabilities$849 $861 
The components of lease expense were as follows (in millions):
Consolidated Statement of Comprehensive Income (Loss) ClassificationYear Ended December 31, 2025Year Ended December 31, 2024Year Ended December 31, 2023
Lease costs:
Operating lease costsCommission, transportation and other$212 $208 $183 
Operating lease costsOther operating expenses14 14 22 
Operating lease costsMarketing, selling and administrative expenses20 19 21 
Finance lease costs:
Amortization of right-of-use-assetsDepreciation and amortization expenses3 13 22 
Interest on lease liabilitiesInterest expense, net of interest capitalized8 30 30 
Total lease costs$257 $284 $278 
In addition, certain of our berthing agreements include variable lease costs based on the number of passengers berthed. During the twelve months ended December 31, 2025, 2024, and 2023, we had $135 million, $115 million, and $85 million, of variable lease costs recorded within Commission, transportation and other in our consolidated statements of comprehensive income (loss), respectively. These variable lease costs are included within the balances presented above.
The weighted average of the remaining lease terms and weighted average discount rates are as follows:
As of December 31, 2025As of December 31, 2024
Weighted average of the remaining lease term in years
Operating leases18.2617.96
Finance leases43.7747.54
Weighted average discount rate
Operating leases7.09 %7.23 %
Finance leases6.69 %6.90 %
Supplemental cash flow information related to leases is as follows (in millions):
Year Ended December 31, 2025Year Ended December 31, 2024Year Ended December 31, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$237 $232 $178 
Operating cash flows from finance leases8 30 30 
Financing cash flows from finance leases$6 $252 $31 
As of December 31, 2025, maturities related to lease liabilities were as follows (in millions):
YearsOperating LeasesFinance Leases
2026$134 $15 
2027118 14 
2028106 14 
202957 14 
203047 13 
Thereafter973 574 
Total lease payments1,435 644 
Less: Interest(745)(485)
Present value of lease liabilities$690 $159 
Leases
Note 9. Leases
Operating leases
Our operating leases primarily relate to preferred berthing arrangements, real estate, and shipboard equipment which are included within Operating lease right-of-use assets and Long-term operating lease liabilities, with the current portion of the liability included within Current portion of operating lease liabilities in our consolidated balance sheets as of December 31, 2025 and 2024. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet. We recognize lease expense for these leases on a straight-line basis over the lease term.
The company's preferred berthing agreement with Miami-Dade County ("County") includes the development plans for the County to finance the construction of a new and improved cruise Terminal G at PortMiami. The aggregate amount of the operating lease liabilities recorded for this berthing agreement was $168 million as of December 31, 2025 and December 31, 2024, respectively. There will be future remeasurements of the operating lease as the County completes several construction milestones throughout the term of the extended lease, including an expected remeasurement in 2027 or later, when the County satisfies substantial completion of Terminal G, as the minimum lease payments will increase at such time to approximately $55 million per year, with expected 3% annual increases thereafter.
For some of our real estate leases and berthing agreements, we do have the option to extend our current lease term. For those lease agreements with renewal options, the renewal periods for real estate leases primarily range from one to 10 years and the renewal periods for berthing agreements primarily range from one to 20 years. Generally, we do not include renewal options as a component of our present value calculation for berthing agreements. However, for certain real estate leases, we include them.
As most of our leases do not provide an implicit rate, we use our incremental borrowing rate in determining the present value of lease payments. We estimate our incremental borrowing rates based on Term SOFR and U.S. Treasury note rates corresponding to lease terms increased by the Company’s credit risk spread and reduced by the estimated impact of collateral. In addition, we have lease agreements with lease and non-lease components, which are generally accounted for separately. However, for berthing agreements, we account for the lease and non-lease components as a single lease component.
Finance leases
Our finance leases primarily relate to buildings and surrounding land located at our Miami headquarters. Finance leases are included within Property, and Equipment, net, and Long-term debt with the current portion of the liability included within Current portion of long-term debt in our consolidated balance sheets as of December 31, 2025 and 2024.
The Company's master lease agreement (“Master Lease”) with the County related to the buildings and surrounding land located at our Miami headquarters is classified as a finance lease in accordance with ASC 842, Leases. The Master Lease, including two five-year options to extend, which we are reasonably certain to exercise, expires in 2077. The agreement with the County includes financing plans to finalize the development of the buildings and land. The total aggregate amount of the finance lease liabilities recorded for this Master Lease was $108 million and $106 million as of December 31, 2025 and December 31, 2024, respectively. The development of the new campus buildings are expected to be completed in 2026, and the lease components will be recorded within our consolidated financial statements upon commencement.
In 2024, we executed the bargain purchase option and paid in full all of the outstanding aggregate principal amount of the Silver Dawn finance lease for approximately $227 million, which resulted in an immaterial loss on extinguishment of debt.

Supplemental balance sheet information for leases was as follows (in millions):
As of December 31, 2025As of December 31, 2024
Lease assets:
Finance lease right-of-use assets, net:
Property and equipment, gross$195 $146 
Accumulated depreciation(54)(50)
Property and equipment, net141 96 
Operating lease right-of-use assets620 677 
Total lease assets$761 $773 
Lease liabilities:
Finance lease liabilities:
Current portion of debt$4 $7 
   Long-term debt 155 110 
Total finance lease liabilities159 117 
Operating lease liabilities:
Current portion of operating lease liabilities90 74 
Long-term operating lease liabilities600 670 
Total operating lease liabilities690 744 
Total lease liabilities$849 $861 
The components of lease expense were as follows (in millions):
Consolidated Statement of Comprehensive Income (Loss) ClassificationYear Ended December 31, 2025Year Ended December 31, 2024Year Ended December 31, 2023
Lease costs:
Operating lease costsCommission, transportation and other$212 $208 $183 
Operating lease costsOther operating expenses14 14 22 
Operating lease costsMarketing, selling and administrative expenses20 19 21 
Finance lease costs:
Amortization of right-of-use-assetsDepreciation and amortization expenses3 13 22 
Interest on lease liabilitiesInterest expense, net of interest capitalized8 30 30 
Total lease costs$257 $284 $278 
In addition, certain of our berthing agreements include variable lease costs based on the number of passengers berthed. During the twelve months ended December 31, 2025, 2024, and 2023, we had $135 million, $115 million, and $85 million, of variable lease costs recorded within Commission, transportation and other in our consolidated statements of comprehensive income (loss), respectively. These variable lease costs are included within the balances presented above.
The weighted average of the remaining lease terms and weighted average discount rates are as follows:
As of December 31, 2025As of December 31, 2024
Weighted average of the remaining lease term in years
Operating leases18.2617.96
Finance leases43.7747.54
Weighted average discount rate
Operating leases7.09 %7.23 %
Finance leases6.69 %6.90 %
Supplemental cash flow information related to leases is as follows (in millions):
Year Ended December 31, 2025Year Ended December 31, 2024Year Ended December 31, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$237 $232 $178 
Operating cash flows from finance leases8 30 30 
Financing cash flows from finance leases$6 $252 $31 
As of December 31, 2025, maturities related to lease liabilities were as follows (in millions):
YearsOperating LeasesFinance Leases
2026$134 $15 
2027118 14 
2028106 14 
202957 14 
203047 13 
Thereafter973 574 
Total lease payments1,435 644 
Less: Interest(745)(485)
Present value of lease liabilities$690 $159