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Fair Value Measurements and Derivative Instruments (Tables)
 3 Months Ended
Mar. 31, 2023
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, 2023Fair Value Measurements at December 31, 2022
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)
$1,226,871 $1,226,871 $1,226,871 $— $— $1,935,005 $1,935,005 $1,935,005 $— $— 
Total Assets$1,226,871 $1,226,871 $1,226,871 $— $— $1,935,005 $1,935,005 $1,935,005 $— $— 
Liabilities:
Long-term debt (including current portion of debt)(5)
$21,123,218 $21,909,938 $— $21,909,938 $— $23,039,859 $22,856,306 $— $22,856,306 $— 
Total Liabilities$21,123,218 $21,909,938 $— $21,909,938 $— $23,039,859 $22,856,306 $— $22,856,306 $— 
(1) Inputs based on quoted prices (unadjusted) in active markets for identical assets 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, 2023 and December 31, 2022.
(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.
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, 2023Fair Value Measurements at December 31, 2022
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)
$168,737 $— $168,737 $— $203,802 $— $203,802 $— 
Total Assets$168,737 $— $168,737 $— $203,802 $— $203,802 $— 
Liabilities:        
Derivative financial instruments(5)
$135,485 $— $135,485 $— $135,608 $— $135,608 $— 
Total Liabilities$135,485 $— $135,485 $— $135,608 $— $135,608 $— 
(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 March 31, 2023 and December 31, 2022.
(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, 2023 and December 31, 2022.
(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.
(5) 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.
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, 2023As of December 31, 2022
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$168,737 $(96,057)$— $72,680 $203,802 $(105,228)$— $98,574 
Total$168,737 $(96,057)$— $72,680 $203,802 $(105,228)$— $98,574 
Offsetting Liabilities
The following table presents information about the Company’s offsetting of financial liabilities under master netting agreements with derivative counterparties (in thousands):
Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements
As of March 31, 2023As of December 31, 2022
Gross Amount of Derivative Liabilities Presented in the Consolidated Balance SheetGross Amount of Eligible Offsetting
Recognized
Derivative Assets		Cash Collateral
Pledged		Net Amount of
Derivative Liabilities		Gross Amount of Derivative Liabilities Presented in the Consolidated Balance SheetGross Amount of Eligible Offsetting
Recognized
Derivative Assets		Cash Collateral
Pledged		Net Amount of
Derivative Liabilities
Derivatives subject to master netting agreements$(135,485)$96,057 $— $(39,428)$(135,608)$105,228 $— $(30,380)
Total$(135,485)$96,057 $— $(39,428)$(135,608)$105,228 $— $(30,380)
Schedule of Price Risk Derivatives As of March 31, 2023 and December 31, 2022, we had the following outstanding fuel swap agreements:
 Fuel Swap Agreements
 As of March 31, 2023As of December 31, 2022
Designated as hedges:(metric tons)
2023673,551 825,651 
2024176,450 — 
 Fuel Swap Agreements
 As of March 31, 2023As of December 31, 2022
Designated hedges as a % of projected fuel purchases:(% hedged)
202354 %50 %
202410 %— %
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, 2023As of December 31, 2022Balance Sheet LocationAs of March 31, 2023As of December 31, 2022
Fair ValueFair ValueFair ValueFair Value
Derivatives designated as hedging instruments under ASC 815-20(1)
Interest rate swapsOther assets$94,170 $115,049 Other long-term liabilities$— $— 
Foreign currency forward contractsDerivative financial instruments23,602 18,892 Derivative financial instruments69,290 84,953 
Foreign currency forward contractsOther assets31,916 25,504 Other long-term liabilities3,461 150 
Fuel swapsDerivative financial instruments19,049 40,191 Derivative financial instruments52,546 46,359 
Fuel swapsOther assets— 4,166 Other long-term liabilities10,188 4,147 
Total derivatives designated as hedging instruments under 815-20$168,737 $203,802 $135,485 $135,609 
(1)Subtopic 815-20 “Hedging-General” under ASC 815.
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, 2023As of December 31, 2022
Foreign currency debtCurrent portion of long-term debt$62,282 $62,282 
Foreign currency debtLong-term debt423,230 399,577 
$485,512 $461,859 
Non Derivative Instruments Qualifying and Designated as Hedging Instruments in Net Investment Hedges
The effect of non-derivative instruments qualifying and designated as net investment hedging instruments on the consolidated financial statements was as follows (in thousands):
Amount of (Loss) Gain Recognized in Other Comprehensive Loss
Non-derivative instruments under ASC 815-20 Net
Investment Hedging Relationships		Quarter Ended March 31, 2023Quarter Ended March 31, 2022
Foreign Currency Debt$(8,980)$2,745 
 $(8,980)$2,745 
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, 2023Quarter Ended March 31, 2022
Foreign currency forward contractsOther income (expense)$4,118 $(6,985)
Fuel swapsOther income (expense)— (7)
  $4,118 $(6,992)
Fair Value Hedging  
Derivative Instruments  
Derivative Instruments, Gain (Loss)
The effect of derivative instruments qualifying and designated as hedging instruments and the related hedged items in fair value hedges on the consolidated statements of comprehensive loss was as follows (in thousands):
Derivatives and Related Hedged Items under ASC 815-20 Fair Value Hedging RelationshipsLocation of Gain (Loss) Recognized in Income on Derivative and Hedged ItemAmount of Gain (Loss)
Recognized in
Income on Derivative		Amount of Gain (Loss)
Recognized in
Income on Hedged Item
Quarter Ended March 31, 2023Quarter Ended March 31, 2022Quarter Ended March 31, 2023Quarter Ended March 31, 2022
Interest rate swapsInterest expense, net of interest capitalized$— $(3,365)$— $6,024 
$— $(3,365)$— $6,024 
Cash flow hedge  
Derivative Instruments  
Schedule of Interest Rate Derivatives At March 31, 2023 and December 31, 2022, we maintained interest rate swap agreements on the following floating-rate debt instruments:
Debt InstrumentSwap Notional as of March 31, 2023 (in thousands)MaturityDebt Floating RateAll-in Swap Fixed Rate as of March 31, 2023
Celebrity Reflection term loan
$109,083 October 2024LIBOR plus0.40%2.85%
Quantum of the Seas term loan
245,000 October 2026LIBOR plus1.30%3.74%
Anthem of the Seas term loan
271,875 April 2027LIBOR plus 1.30%3.86%
Ovation of the Seas term loan
380,417 April 2028LIBOR plus1.00%3.16%
Harmony of the Seas term loan (1)
345,267 May 2028EURIBOR plus1.15%2.26%
Odyssey of the Seas term loan (2)
383,333 October 2032LIBOR plus0.96%3.21%
Odyssey of the Seas term loan (2)
191,667 October 2032LIBOR plus0.96%2.84%
$1,926,642 
(1)Interest rate swap agreements hedging the Euro-denominated term loan for Harmony of the Seas include EURIBOR zero-floors matching the hedged debt EURIBOR zero-floor. Amount presented is based on the exchange rate as of March 31, 2023.
(2)Interest rate swap agreements hedging the term loan of Odyssey of the Seas include LIBOR zero-floors matching the debt LIBOR zero-floor. Amount presented is based on the exchange rate as of March 31, 2023.
Derivative Instruments, Gain (Loss)
The effect of derivative instruments qualifying and designated as cash flow hedging instruments on the consolidated financial statements was as follows (in thousands):
Derivatives under ASC 815-20 Cash Flow Hedging RelationshipsAmount of Gain (Loss) Recognized in
Accumulated Other
Comprehensive Loss on Derivatives 
Quarter Ended March 31, 2023Quarter Ended March 31, 2022
Interest rate swaps$(10,620)$74,865 
Foreign currency forward contracts21,420 (40,062)
Fuel swaps(41,079)189,816 
 $(30,279)$224,619