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Fair Value Measurements and Derivative Instruments (Tables)
 3 Months Ended
Mar. 31, 2022
Derivative Instruments  
Fair Value Measurements, Nonrecurring
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 thousands): 
Fair Value Measurements at March 31, 2022Fair Value Measurements at December 31, 2021
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)
$1,968,504 $1,968,504 $1,968,504 $— $— $2,701,770 $2,701,770 $2,701,770 $— $— 
Total Assets$1,968,504 $1,968,504 $1,968,504 $— $— $2,701,770 $2,701,770 $2,701,770 $— $— 
Liabilities:
Long-term debt (including current portion of debt)(5)
$22,073,589 $23,323,063 $— $23,323,063 $— $20,618,065 $22,376,480 $— $22,376,480 $— 
Total Liabilities$22,073,589 $23,323,063 $— $23,323,063 $— $20,618,065 $22,376,480 $— $22,376,480 $— 
(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.
(3) Inputs that are unobservable. The Company did not use any Level 3 inputs as of March 31, 2022 and December 31, 2021.
(4) Consists of cash and marketable securities with original maturities of less than 90 days.
(5) Consists of unsecured revolving credit facilities, senior notes, term loans and convertible notes. These amounts do not include our finance lease obligations or commercial paper.
The following table presents information about the Company’s nonfinancial instruments recorded at fair value on a nonrecurring basis (in thousands):
Fair Value Measurements at December 31, 2021
DescriptionTotal Carrying AmountTotal Fair ValueLevel 3Total Impairment for the Year Ended December 31, 2021 (1)
Long-lived assets— — — 55,213 
Total— — — 55,213 
(1) Amount is primarily composed of construction in progress assets that were impaired during the year ended 2021 due to a reduction in scope or the decision to not complete the projects. The impairments were calculated based on orderly liquidation values. The fair value of these assets was estimated as of the date the assets were last impaired.
Schedule of Fair Value, Assets and Liabilities Measured 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 thousands):
 Fair Value Measurements at March 31, 2022Fair Value Measurements at December 31, 2021
DescriptionTotal
Level 1(1)
Level 2(2)
Level 3(3)
Total
Level 1(1)
Level 2(2)
Level 3(3)
Assets:        
Derivative financial instruments(4)
$241,254 $— $241,254 $— $69,808 $— $69,808 $— 
Total Assets$241,254 $— $241,254 $— $69,808 $— $69,808 $— 
Liabilities:        
Derivative financial instruments(5)
$117,708 $— $117,708 $— $200,541 $— $200,541 $— 
Total Liabilities$117,708 $— $117,708 $— $200,541 $— $200,541 $— 
(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 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 March 31, 2022 and December 31, 2021.
(4)Consists of foreign currency forward contracts, interest rate swaps and fuel swaps. Refer to the "Fair Value of Derivative Instruments" table for breakdown by instrument type.
(5) Consists of foreign currency forward contracts, interest rate swaps and fuel swaps. Refer to the "Fair Value of Derivative Instruments" table for breakdown by instrument type.
Offsetting Assets
The following table presents information about the Company’s offsetting of financial assets under master netting agreements with derivative counterparties (in thousands):
Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements
As of March 31, 2022As of December 31, 2021
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$241,254 $(68,784)$— $172,470 $69,808 $(67,995)$— $1,813 
Total$241,254 $(68,784)$— $172,470 $69,808 $(67,995)$— $1,813 
Offsetting Liabilities
The following table presents information about the Company’s offsetting of financial liabilities under master netting agreements with derivative counterparties (in thousands):
Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements
As of March 31, 2022As of December 31, 2021
Gross Amount of Derivative Liabilities Presented in the Consolidated Balance SheetGross Amount of Eligible Offsetting
Recognized
Derivative Assets		Cash Collateral
Pledged		Net Amount of
Derivative Liabilities		Gross Amount of Derivative Liabilities Presented in the Consolidated Balance SheetGross Amount of Eligible Offsetting
Recognized
Derivative Assets		Cash Collateral
Pledged		Net Amount of
Derivative Liabilities
Derivatives subject to master netting agreements$(117,708)$68,784 $16,668 $(32,256)$(200,541)$67,995 $44,411 $(88,135)
Total$(117,708)$68,784 $16,668 $(32,256)$(200,541)$67,995 $44,411 $(88,135)
Schedule of Price Risk Derivatives As of March 31, 2022 and December 31, 2021, we had the following outstanding fuel swap agreements:
 Fuel Swap Agreements
 As of March 31, 2022As of December 31, 2021
Designated as hedges:(metric tons)
2022660,650 821,850 
2023249,050 249,050 
 Fuel Swap Agreements
 As of March 31, 2022As of December 31, 2021
 (% hedged)
Designated hedges as a % of projected fuel purchases:  
202255 %54 %
202315 %15 %
Fuel Swap Agreements
As of March 31, 2021As of December 31, 2021
Not designated as hedges:(metric tons)
2022(1)139,100 231,900 
2023— — 
(1)    As of March 31, 2022, 69,550 metric tons relate to fuel swap agreements with discontinued hedge accounting, in which we effectively pay fixed prices and receive floating prices from the counterparty. The remaining 69,550 tons relate to fuel swap agreements that were not designated as hedges since inception, in which we effectively pay floating prices and receive fixed prices from the counterparty.
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value
The fair value and line item caption of derivative instruments recorded within our consolidated balance sheets were as follows (in thousands):
Fair Value of Derivative Instruments
Asset DerivativesLiability Derivatives
Balance Sheet LocationAs of March 31, 2022As of December 31, 2021Balance Sheet LocationAs of March 31, 2022As of December 31, 2021
Fair ValueFair ValueFair ValueFair Value
Derivatives designated as hedging instruments under ASC 815-20(1)
Interest rate swapsOther assets$23,791 $— Other long-term liabilities$1,072 $62,080 
Interest rate-swapsDerivative financial instruments741 6,478 Derivative financial instruments— — 
Foreign currency forward contractsDerivative financial instruments15,133 7,357 Derivative financial instruments84,872 116,027 
Foreign currency forward contractsOther assets3,932 2,070 Other long-term liabilities15,082 8,813 
Fuel swapsDerivative financial instruments145,456 31,919 Derivative financial instruments— 7,944 
Fuel swapsOther assets35,370 13,452 Other long-term liabilities— 1,202 
Total derivatives designated as hedging instruments under 815-20$224,423 $61,276 $101,026 $196,066 
Derivatives not designated as hedging instruments under ASC 815-20
Foreign currency forward contractsDerivative financial instruments$— $— Derivative financial instruments$— $— 
Foreign currency forward contractsOther assets— — Other long-term liabilities— — 
Fuel swapsDerivative financial instruments16,831 8,430 Derivative financial instruments16,682 3,264 
Fuel swapsOther Assets— 102 Other long-term liabilities— 1,211 
Total derivatives not designated as hedging instruments under 815-2016,831 8,532 16,682 4,475 
Total derivatives$241,254 $69,808 $117,708 $200,541 
(1)Accounting Standard Codification 815-20 “Derivatives and Hedging.”
The fair value and line item caption of derivative instruments recorded within our consolidated balance sheets for the cumulative basis adjustment for fair value hedges were as follows (in thousands):
Line Item in the Statement of Financial Position Where the Hedged Item is IncludedCarrying Amount of the Hedged LiabilitiesCumulative amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liabilities
As of March 31, 2022As of December 31, 2021As of March 31, 2022As of December 31, 2021
Current portion of debt and Long-term debt$649,755 $655,502 $404 $6,428 
$649,755 $655,502 $404 $6,428 
Fair Value and Line Item Caption of Non-derivative 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 thousands):
Carrying Value
Non-derivative instrument designated as
hedging instrument under ASC 815-20		Balance Sheet LocationAs of March 31, 2022As of December 31, 2021
Foreign currency debtCurrent portion of debt$64,938 $75,518 
Foreign currency debtLong-term debt45,165 34,795 
$110,103 $110,313 
Non Derivative Instruments Qualifying and Designated as Hedging Instruments in Net Investment Hedges
The effect of non-derivative instruments qualifying and designated as net investment hedging instruments on the consolidated financial statements was as follows (in thousands):
Amount of Gain (Loss) Recognized in Other Comprehensive Loss
Non-derivative instruments under ASC 815-20 Net
Investment Hedging Relationships		Quarter Ended March 31, 2022Quarter Ended March 31, 2021
Foreign Currency Debt$2,745 $5,822 
 $2,745 $5,822 
Not Designated as Hedging Instrument  
Derivative Instruments  
Derivative Instruments, Gain (Loss)
The effect of derivatives not designated as hedging instruments on the consolidated financial statements was as follows (in thousands):
  Amount of Gain (Loss) Recognized in Income on Derivatives
Derivatives Not Designated as Hedging
Instruments under ASC 815-20		Location of
Gain (Loss) Recognized in
Income on Derivatives		Quarter Ended March 31, 2022Quarter Ended March 31, 2021
Foreign currency forward contractsOther income (expense)$(6,985)$(13,498)
Fuel swapsOther income (expense)(7)12,655 
  $(6,992)$(843)
Fair Value Hedging  
Derivative Instruments  
Schedule of Interest Rate Derivatives At March 31, 2022 and December 31, 2021, we maintained interest rate swap agreements on the following fixed-rate debt instruments:
Debt InstrumentSwap Notional as of March 31, 2022 (in thousands)MaturityDebt Fixed RateSwap Floating Rate: LIBOR plusAll-in Swap Floating Rate as of March 31, 2022
Unsecured senior notes650,000 November 20225.25%3.63%4.14%
$650,000 
Derivative Instruments, Gain (Loss)
The effect of derivative instruments qualifying and designated as hedging instruments and the related hedged items in fair value hedges on the consolidated statements of comprehensive loss was as follows (in thousands):
Derivatives and Related Hedged Items under ASC 815-20 Fair Value Hedging RelationshipsLocation of Gain (Loss) Recognized in Income on Derivative and Hedged ItemAmount of Gain (Loss)
Recognized in
Income on Derivative		Amount of Gain (Loss)
Recognized in
Income on Hedged Item
Quarter Ended March 31, 2022Quarter Ended March 31, 2021Quarter Ended March 31, 2022Quarter Ended March 31, 2021
Interest rate swapsInterest expense (income), net of interest capitalized$(3,365)$(552)$6,024 $2,930 
$(3,365)$(552)$6,024 $2,930 
Cash flow hedge  
Derivative Instruments  
Schedule of Interest Rate Derivatives At March 31, 2022 and December 31, 2021, we maintained interest rate swap agreements on the following floating-rate debt instruments:
Debt InstrumentSwap Notional as of March 31, 2022 (in thousands)MaturityDebt Floating RateAll-in Swap Fixed Rate
Celebrity Reflection term loan
$163,625 October 2024LIBOR plus0.40%2.85%
Quantum of the Seas term loan
306,250 October 2026LIBOR plus1.30%3.74%
Anthem of the Seas term loan
332,292 April 2027LIBOR plus 1.30%3.86%
Ovation of the Seas term loan
449,583 April 2028LIBOR plus1.00%3.16%
Harmony of the Seas term loan (1)
417,714 May 2028EURIBOR plus1.15%2.26%
Odyssey of the Seas term loan (2)
421,667 October 2032LIBOR plus0.96%3.21%
Odyssey of the Seas term loan (2)
191,667 October 2032LIBOR plus0.96%2.84%
$2,282,798 
(1)Interest rate swap agreements hedging the Euro-denominated term loan for Harmony of the Seas include EURIBOR zero-floor matching the hedged debt EURIBOR zero-floor. Amount presented is based on the exchange rate as of March 31, 2022.
(2)Interest rate swap agreements hedging the term loan of Odyssey of the Seas include LIBOR zero-floors matching the debt LIBOR zero-floor. The effective dates of the $421.7 million and $191.7 million interest rate swap agreements are October 2020 and October 2022, respectively. The unsecured term loan for the financing of Odyssey of the Seas was drawn on March 2021.
Derivative Instruments, Gain (Loss)
The effect of derivative instruments qualifying and designated as cash flow hedging instruments on the consolidated financial statements was as follows (in thousands):
Derivatives under ASC 815-20 Cash Flow Hedging RelationshipsAmount of Gain (Loss) Recognized in
Accumulated Other
Comprehensive Loss on Derivatives 
Quarter Ended March 31, 2022Quarter Ended March 31, 2021
Interest rate swaps$74,865 $43,408 
Foreign currency forward contracts(40,062)(99,581)
Fuel swaps189,816 55,246 
 $224,619 $(927)
The table below represents amounts excluded from the assessment of effectiveness for our net investment hedging instruments for which the difference between changes in fair value and periodic amortization is recorded in accumulated other comprehensive income (loss) (in thousands):
Gain (Loss) Recognized in Income (Net Investment Excluded Components) Three Months Ended March 31, 2022
Net inception fair value at January 1, 2022$(554)
Amount of gain recognized in income on derivatives for the period ended March 31, 2022577 
Amount of gain (loss) remaining to be amortized in accumulated other comprehensive loss, as of March 31, 2022(39)
Fair value at March 31, 2022$(16)