v3.25.4
Fair Value Measurements and Derivative Instruments (Tables)
 12 Months Ended
Dec. 31, 2025
Derivative instruments disclosure  
Schedule of Estimated Fair Value of Financial Instruments Not Measured at Fair Value on Recurring Basis
The estimated fair value of our financial instruments that are not measured at fair value, categorized based upon the fair value hierarchy, are as follows (in millions):
Fair Value Measurements at December 31, 2025Fair Value Measurements at December 31, 2024
DescriptionTotal Carrying AmountTotal Fair Value
Level 1(1)
Level 2(2)
Level 3(3)
Total Carrying AmountTotal Fair Value
Level 1(1)
Level 2(2)
Level 3(3)
Assets:
Cash and cash equivalents(4)$825 $825 $825 $— $— $388 $388 $388 $— $— 
Total Assets$825 $825 $825 $— $— $388 $388 $388 $— $— 
Liabilities:
Long-term debt (including current portion of long-term debt)(5)$21,186 $21,877 $— $21,877 $— $19,959 $21,325 $— $21,325 $— 
Total Liabilities$21,186 $21,877 $— $21,877 $— $19,959 $21,325 $— $21,325 $— 
___________________________________________________________________
(1)Inputs based on quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access. Valuation of these items does not entail a significant amount of judgment.
(2)Inputs other than quoted prices included within Level 1 that are observable for the liability, either directly or indirectly. For unsecured revolving credit facilities and unsecured term loans, fair value is determined utilizing the income valuation approach. This valuation model takes into account the contract terms of our debt such as the debt maturity and the interest rate on the debt. The valuation model also takes into account the creditworthiness of the Company. We valued our senior notes and convertible notes using a quoted market price, which is considered a Level 2 input as it is observable in the market; however, these instruments have a limited trading volume and as such this fair value estimate is not necessarily indicative of the value at which the instruments could be retired or transferred.
(3)Inputs that are unobservable. The Company did not use any Level 3 inputs as of December 31, 2025 and 2024.
(4)Consists of cash and marketable securities with original maturities of less than 90 days.
(5)Consists of unsecured revolving credit facilities, senior notes, convertible notes, and term loans. These amounts do not include our finance lease obligations.
Schedule of Assets and Liabilities Recorded at Fair Value on Recurring Basis
Assets and liabilities that are recorded at fair value have been categorized based upon the fair value hierarchy. The following table presents information about the Company's financial instruments recorded at fair value on a recurring basis (in millions):
Fair Value Measurements at December 31, 2025Fair Value Measurements at December 31, 2024
DescriptionTotal Fair Value
Level 1(1)
Level 2(2)
Level 3(3)
Total Fair Value
Level 1(1)
Level 2(2)
Level 3(3)
Assets:
Derivative financial instruments(4)
$144 $— $144 $— $71 $— $71 $— 
Total Assets$144 $— $144 $— $71 $— $71 $— 
Liabilities:
Derivative financial instruments(4)
$124 $— $124 $— $139 $— $139 $— 
Total Liabilities$124 $— $124 $— $139 $— $139 $— 
___________________________________________________________________
(1)Inputs based on quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access. Valuation of these items does not entail a significant amount of judgment. No Level 1 inputs were used in fair value measurements of other financial instruments as of December 31, 2025 and 2024.
(2)Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. For foreign currency forward contracts, interest rate swaps and fuel swaps, fair value is derived using valuation models that utilize the income valuation approach. These valuation models take into account the contract terms, such as maturity as well as other inputs, such as foreign exchange rates and curves, fuel types, fuel curves and interest rate yield curves. Derivative instrument fair values take into account the creditworthiness of the counterparty and the Company.
(3)Inputs that are unobservable. No Level 3 inputs were used in fair value measurements of other financial instruments as of December 31, 2025 and 2024.
(4)Consists of foreign currency forward contracts, interest rate and fuel swaps. Refer to the "Fair Value of Derivative Instruments" table for breakdown by instrument type.
Schedule of Offsetting Assets
The following table presents information about the Company’s offsetting of financial assets and liabilities under master netting agreements with derivative counterparties (in millions):
Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements
As of December 31, 2025As of December 31, 2024
Gross Amount of Derivative Assets Presented in the Consolidated Balance SheetGross Amount of Eligible Offsetting
Recognized
Derivative Liabilities		Cash Collateral
Received		Net Amount of
Derivative Assets		Gross Amount of Derivative Assets Presented in the Consolidated Balance SheetGross Amount of Eligible Offsetting
Recognized
Derivative Liabilities		Cash Collateral
Received		Net Amount of
Derivative Assets
Derivatives subject to master netting agreements$144 $(59)$— $85 $71 $(52)$— $19 
Total$144 $(59)$— $85 $71 $(52)$— $19 
Gross Amount of Derivative Liabilities Presented in the Consolidated Balance SheetGross Amount of Eligible Offsetting
Recognized
Derivative Assets		Cash Collateral
Pledged		Net Amount of
Derivative Liabilities		Gross Amount of Derivative Liabilities Presented in the Consolidated Balance SheetGross Amount of Eligible Offsetting
Recognized
Derivative Assets		Cash Collateral
Pledged		Net Amount of
Derivative Liabilities
Derivatives subject to master netting agreements$(124)$59 $— $(65)$(139)$52 $— $(87)
Total$(124)$59 $— $(65)$(139)$52 $— $(87)
Schedule of Offsetting Liabilities
The following table presents information about the Company’s offsetting of financial assets and liabilities under master netting agreements with derivative counterparties (in millions):
Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements
As of December 31, 2025As of December 31, 2024
Gross Amount of Derivative Assets Presented in the Consolidated Balance SheetGross Amount of Eligible Offsetting
Recognized
Derivative Liabilities		Cash Collateral
Received		Net Amount of
Derivative Assets		Gross Amount of Derivative Assets Presented in the Consolidated Balance SheetGross Amount of Eligible Offsetting
Recognized
Derivative Liabilities		Cash Collateral
Received		Net Amount of
Derivative Assets
Derivatives subject to master netting agreements$144 $(59)$— $85 $71 $(52)$— $19 
Total$144 $(59)$— $85 $71 $(52)$— $19 
Gross Amount of Derivative Liabilities Presented in the Consolidated Balance SheetGross Amount of Eligible Offsetting
Recognized
Derivative Assets		Cash Collateral
Pledged		Net Amount of
Derivative Liabilities		Gross Amount of Derivative Liabilities Presented in the Consolidated Balance SheetGross Amount of Eligible Offsetting
Recognized
Derivative Assets		Cash Collateral
Pledged		Net Amount of
Derivative Liabilities
Derivatives subject to master netting agreements$(124)$59 $— $(65)$(139)$52 $— $(87)
Total$(124)$59 $— $(65)$(139)$52 $— $(87)
Schedule of Outstanding Fuel Swap Agreements As of December 31, 2025 and December 31, 2024, we had the following outstanding fuel swap agreements:
Fuel Swap Agreements
As of December 31, 2025As of December 31, 2024
(metric tons)
Designated as hedges:
20261,065,500 786,750 
2027819,048 364,048 
2028465,699 — 
Fuel Swap Agreements
As of December 31, 2025As of December 31, 2024
(% hedged)
Designated hedges as a % of projected fuel purchases:
202660 %44 %
202747 %20 %
202826 %— %
Schedule of Fair Value And Line item Caption of Derivative Instruments
The fair value and line item caption of derivative instruments recorded within our consolidated balance sheets were as follows (in millions):
Fair Value of Derivative Instruments
Asset DerivativesLiability Derivatives
Balance Sheet
Location		As of December 31, 2025As of December 31, 2024Balance Sheet
Location		As of December 31, 2025As of December 31, 2024
Fair ValueFair ValueFair ValueFair Value
Derivatives designated as hedging instruments under ASC 815-20(1)
Interest rate swapsDerivative financial instruments$1 $— Derivative financial instruments$— $— 
Interest rate swapsOther assets29 58 Other long-term liabilities1 — 
Foreign currency forward contracts
Derivative financial instruments114 — Derivative financial instruments— 71 
Foreign currency forward contracts
Other assets— — Other long-term liabilities— 22 
Fuel swapsDerivative financial instruments— 10 Derivative financial instruments67 19 
Fuel swapsOther assets— 3 Other long-term liabilities56 27 
Total derivatives designated as hedging instruments under ASC 815-20
$144 $71 $124 $139 
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(1)Subtopic 815-20 “Hedging-General” under ASC 815.
Schedule of Carrying Value and Line Item Caption of Non-Derivative Instruments Designated as Hedging Instruments
The carrying value and line item caption of non-derivative instruments designated as hedging instruments recorded within our consolidated balance sheets were as follows (in millions):
Carrying Value
Non-derivative instrument designated as
hedging instrument under ASC 815-20		Balance Sheet LocationAs of December 31, 2025As of December 31, 2024
Foreign currency debtCurrent portion of long-term debt$136 $60 
Foreign currency debtLong-term debt605 860 
$741 $920 
Schedule of Non-Derivative Instruments Designated as Net Investment Hedging Instruments
The effect of non-derivative instruments qualifying and designated as net investment hedging instruments on the consolidated financial statements was as follows (in millions):
Amount of Gain (Loss)
Recognized in Other Comprehensive Income (Loss)
Non-derivative instruments under ASC 815-20
Net Investment Hedging Relationships		Year Ended December 31, 2025Year Ended December 31, 2024Year Ended December 31, 2023
Foreign Currency Debt$(109)$56 $(23)
$(109)$56 $(23)
Not Designated as Hedging Instrument  
Derivative instruments disclosure  
Schedule of Effect of Derivative Instruments Designated and Not Designated as Cash Flow Hedging Instruments
The effect of derivatives not designated as hedging instruments on the consolidated financial statements was as follows (in millions):
Amount of Gain (Loss) Recognized
in Income on Derivatives
Derivatives Not Designated as Hedging
Instruments under ASC 815-20		Location of Gain (Loss)
Recognized in Income
on Derivatives		Year Ended December 31, 2025Year Ended December 31, 2024Year Ended December 31, 2023
Foreign currency forward contractsOther income (expense)$49 $(77)$19 
Fuel swapsOther income (expense)2 — 1 
$51 $(77)$20 
Cash flow hedge  
Derivative instruments disclosure  
Schedule of Interest Rate Derivatives At December 31, 2025, we maintained interest rate swap agreements on the following floating-rate debt instruments:
Debt InstrumentSwap Notional as of December 31, 2025 (In millions)MaturityDebt Floating RateSpreadAll-in Fixed Rate
Quantum of the Seas term loan
61 October 2026Term SOFR plus1.30%3.78%
Anthem of the Seas term loan
91 April 2027Term SOFR plus1.30%3.9%
Ovation of the Seas term loan
173 April 2028Term SOFR plus1.00%3.20%
Harmony of the Seas term loan (1)
170 May 2028EURIBOR plus1.15%2.26%
Odyssey of the Seas term loan(2)
268 October 2032Term SOFR plus0.96%3.28%
Odyssey of the Seas term loan(2)
134 October 2032Term SOFR plus0.96%2.91%
$897 
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(1)    Interest rate swap agreements hedging the Euro-denominated term loan for Harmony of the Seas include EURIBOR zero-floors matching the hedged debt EURIBOR zero-floor. Amount presented is based on the exchange rate as of December 31, 2025.
(2)    Interest rate swap agreements hedging the term loan of Odyssey of the Seas include Term SOFR zero-floors, Term SOFR with no floors, and Overnight SOFR.
Schedule of Effect of Derivative Instruments Designated and Not Designated as Cash Flow Hedging Instruments
The effect of derivative instruments qualifying and designated as cash flow hedging instruments on the consolidated financial statements was as follows (in millions):
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivatives
Derivatives under ASC 815-20 Cash Flow Hedging RelationshipsYear Ended December 31, 2025Year Ended December 31, 2024Year Ended December 31, 2023
Interest rate swaps$(6)$28 $11 
Foreign currency forward contracts325 (175)24 
Fuel swaps(103)27 (32)
$216 $(120)$3