| Schedule of revenues by destination |
Revenue and cash flows are affected by economic factors in various geographical regions. Revenues by destination were as follows (in thousands): | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | June 30, | | June 30, | | | 2026 | | 2025 | | 2026 | | 2025 | North America | | $ | 1,552,908 | | $ | 1,290,919 | | $ | 3,319,159 | | $ | 2,737,647 | Europe | | | 815,032 | | | 963,830 | | | 846,973 | | | 1,037,080 | Asia-Pacific | | | 209,056 | | | 232,944 | | | 575,793 | | | 638,733 | Other | | | 63,548 | | | 29,804 | | | 229,840 | | | 231,590 | Total revenue | | $ | 2,640,544 | | $ | 2,517,497 | | $ | 4,971,765 | | $ | 4,645,050 |
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| Schedule of reconciliation of adjusted operating income 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, | | | 2026 | | 2025 | | 2026 | | 2025 | Total revenue | | $ | 2,640,544 | | $ | 2,517,497 | | $ | 4,971,765 | | $ | 4,645,050 | Cruise operating expense | | | | | | | | | | | | | Commissions, transportation and other | | | 484,668 | | | 487,835 | | | 882,273 | | | 883,178 | Onboard and other | | | 191,446 | | | 187,684 | | | 343,314 | | | 326,542 | Adjusted payroll and related (1) | | | 388,374 | | | 340,173 | | | 762,753 | | | 669,300 | Fuel | | | 219,384 | | | 157,377 | | | 388,310 | | | 332,391 | Food | | | 87,322 | | | 81,323 | | | 168,004 | | | 156,911 | Other | | | 209,415 | | | 196,495 | | | 407,999 | | | 381,126 | Adjusted total cruise operating expense | | | 1,580,609 | | | 1,450,887 | | | 2,952,653 | | | 2,749,448 | Other operating expense | | | | | | | | | | | | | Adjusted marketing, general and administrative (2) | | | 393,856 | | | 371,824 | | | 819,779 | | | 747,605 | Depreciation and amortization | | | 271,205 | | | 243,760 | | | 531,921 | | | 475,057 | Adjusted total other operating expense | | | 665,061 | | | 615,584 | | | 1,351,700 | | | 1,222,662 | Adjusted operating income | | $ | 394,874 | | $ | 451,026 | | $ | 667,412 | | $ | 672,940 | | | | | | | | | | | | | | Adjusted operating income | | $ | 394,874 | | $ | 451,026 | | $ | 667,412 | | $ | 672,940 | Non-cash compensation, severance and professional advisory fees (3) | | | (30,983) | | | (26,451) | | | (70,221) | | | (47,285) | Interest expense, net | | | (189,915) | | | (260,013) | | | (374,362) | | | (504,235) | Other income (expense), net | | | (24,843) | | | (167,729) | | | 141,376 | | | 77,457 | Net income (loss) before income taxes | | $ | 149,133 | | $ | (3,167) | | $ | 364,205 | | $ | 198,877 |
| (1) | Excludes non-cash share-based compensation expenses related to equity awards for shipboard officers (see Note 9 – “Employee Benefits and Share-Based Compensation”) and non-cash deferred compensation expenses related to the Shipboard Retirement Plan as follows (in thousands): |
| | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | June 30, | | June 30, | | | 2026 | | 2025 | | 2026 | | 2025 | Service cost | | $ | 614 | | $ | 552 | | $ | 1,228 | | $ | 1,105 |
| (2) | Excludes non-cash share-based compensation expenses related to equity awards for corporate employees (see Note 9 – “Employee Benefits and Share-Based Compensation”), professional advisory fees incurred related to activist investors and the cash portion of our restructuring costs related to certain employee terminations as follows (in thousands): |
| | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | June 30, | | June 30, | | | 2026 | | 2025 | | 2026 | | 2025 | Professional advisory fees | | $ | 175 | | $ | — | | $ | 5,242 | | $ | — | Severance costs and other fees | | | 7,460 | | | — | | | 17,652 | | | — |
| (3) | Includes, in aggregate, the adjustments noted above. |
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