| 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 | | Nine Months Ended | | | September 30, | | September 30, | | | 2026 | | 2025 | | 2026 | | 2025 | North America | | $ | 1,672,551 | | $ | 1,463,030 | | $ | 4,991,710 | | $ | 4,200,677 | Europe | | | 1,257,946 | | | 1,349,391 | | | 2,104,919 | | | 2,386,471 | Asia-Pacific | | | 12,442 | | | 124,830 | | | 588,235 | | | 763,563 | Other | | | 3,824 | | | 891 | | | 233,664 | | | 232,481 | Total revenue | | $ | 2,946,763 | | $ | 2,938,142 | | $ | 7,918,528 | | $ | 7,583,192 |
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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 before income taxes (in thousands): | | | | | | | | | | | | | | | Three Months Ended | | Nine Months Ended | | | September 30, | | September 30, | | | 2026 | | 2025 | | 2026 | | 2025 | Total revenue | | $ | 2,946,763 | | $ | 2,938,142 | | $ | 7,918,528 | | $ | 7,583,192 | Cruise operating expense | | | | | | | | | | | | | Commissions, transportation and other | | | 547,675 | | | 521,981 | | | 1,429,948 | | | 1,405,159 | Onboard and other | | | 236,180 | | | 222,002 | | | 579,494 | | | 548,544 | Adjusted payroll and related (1) | | | 383,914 | | | 349,355 | | | 1,146,667 | | | 1,018,655 | Fuel | | | 195,733 | | | 175,913 | | | 584,043 | | | 508,304 | Food | | | 92,043 | | | 81,866 | | | 260,047 | | | 238,777 | Other | | | 205,722 | | | 197,701 | | | 613,721 | | | 578,827 | Adjusted total cruise operating expense | | | 1,661,267 | | | 1,548,818 | | | 4,613,920 | | | 4,298,266 | Other operating expense | | | | | | | | | | | | | Adjusted marketing, general and administrative (2) | | | 348,794 | | | 369,973 | | | 1,168,573 | | | 1,117,578 | Adjusted depreciation and amortization (3) | | | 270,878 | | | 250,832 | | | 802,799 | | | 725,889 | Adjusted total other operating expense | | | 619,672 | | | 620,805 | | | 1,971,372 | | | 1,843,467 | Adjusted operating income | | $ | 665,824 | | $ | 768,519 | | $ | 1,333,236 | | $ | 1,441,459 | | | | | | | | | | | | | | Adjusted operating income | | $ | 665,824 | | $ | 768,519 | | $ | 1,333,236 | | $ | 1,441,459 | Non-cash compensation, severance, professional advisory fees and loss on ship disposal (4) | | | (41,620) | | | (18,971) | | | (111,841) | | | (66,256) | Interest expense, net | | | (190,111) | | | (278,155) | | | (564,473) | | | (782,390) | Other income (expense), net | | | 200,096 | | | (134,429) | | | 341,472 | | | (56,972) | Net income before income taxes | | $ | 634,189 | | $ | 336,964 | | $ | 998,394 | | $ | 535,841 |
| (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 | | Nine Months Ended | | | September 30, | | September 30, | | | 2026 | | 2025 | | 2026 | | 2025 | Service cost | | $ | 614 | | $ | 553 | | $ | 1,842 | | $ | 1,658 |
| (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 investor activities and the cash portion of our restructuring costs related to certain employee terminations as follows (in thousands): |
| | | | | | | | | | | | | | | Three Months Ended | | Nine Months Ended | | | September 30, | | September 30, | | | 2026 | | 2025 | | 2026 | | 2025 | Professional advisory fees | | $ | 150 | | $ | — | | $ | 5,392 | | $ | — | Severance costs and other fees | | | 2,710 | | | — | | | 20,362 | | | — |
| (3) | Excludes the loss related to the disposal of Oceania Sirena as follows (in thousands): |
| | | | | | | | | | | | | | | Three Months Ended | | Nine Months Ended | | | September 30, | | September 30, | | | 2026 | | 2025 | | 2026 | | 2025 | Loss on ship disposal | | $ | 16,825 | | $ | — | | $ | 16,825 | | $ | — |
| (4) | Includes, in aggregate, the adjustments noted above. |
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