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Fair Value Measurements and Derivative Instruments (Tables)
 12 Months Ended
Dec. 31, 2023
Derivative instruments disclosure  
Schedule of Estimated Fair Value of Financial Instruments that are 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, 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)$497 $497 $497 $— $— $1,935 $1,935 $1,935 $— $— 
Total Assets$497 $497 $497 $— $— $1,935 $1,935 $1,935 $— $— 
Liabilities:
Long-term debt (including current portion of long-term debt)(5)$21,083 $23,700 $— $23,700 $— $23,040 $22,856 $— $22,856 $— 
Total Liabilities$21,083 $23,700 $— $23,700 $— $23,040 $22,856 $— $22,856 $— 
___________________________________________________________________
(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, 2023 and 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 Company's Financial Instruments Recorded at Fair Value on Recurring Basis 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, 2023Fair Value Measurements at December 31, 2022
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 $— $204 $— $204 $— 
Total Assets$144 $— $144 $— $204 $— $204 $— 
Liabilities:
Derivative financial instruments(4)
$66 $— $66 $— $136 $— $136 $— 
Total Liabilities$66 $— $66 $— $136 $— $136 $— 
___________________________________________________________________
(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, 2023 and 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 December 31, 2023 and 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.
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, 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$144 $(28)$— $116 $204 $(105)$— $99 
Total$144 $(28)$— $116 $204 $(105)$— $99 
Gross Amount of Derivative Liabilities Presented in the Consolidated Balance SheetGross Amount of Eligible Offsetting
Recognized
Derivative Assets		Cash Collateral
Pledged		Net Amount of
Derivative Liabilities		Gross Amount of Derivative Liabilities Presented in the Consolidated Balance SheetGross Amount of Eligible Offsetting
Recognized
Derivative Assets		Cash Collateral
Pledged		Net Amount of
Derivative Liabilities
Derivatives subject to master netting agreements$(66)$28 $— $(38)$(136)$105 $— $(31)
Total$(66)$28 $— $(38)$(136)$105 $— $(31)
Schedule of Fuel Swap Agreements As of December 31, 2023 and December 31, 2022, we had the following outstanding fuel swap agreements:
Fuel Swap Agreements
As of December 31, 2023As of December 31, 2022
(metric tons)
Designated as hedges:
20241,054,501 825,651 
2025685,400 — 
202644,200 — 
Fuel Swap Agreements
As of December 31, 2023As of December 31, 2022
(% hedged)
Designated hedges as a % of projected fuel purchases:
202461 %50 %
202539 %— %
20263 %— %
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, 2023As of December 31, 2022Balance Sheet
Location		As of December 31, 2023As of December 31, 2022
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 assets75 115 Other long-term liabilities— — 
Foreign currency forward contracts
Derivative financial instruments20 19 Derivative financial instruments9 85 
Foreign currency forward contracts
Other assets44 26 Other long-term liabilities4 — 
Fuel swapsDerivative financial instruments4 40 Derivative financial instruments26 46 
Fuel swapsOther assets— 4 Other long-term liabilities27 5 
Total derivatives designated as hedging instruments under ASC 815-20
$144 $204 $66 $136 
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(1)Subtopic 815-20 “Hedging-General” under ASC 815.
Schedule of 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 millions):
Carrying Value
Non-derivative instrument designated as
hedging instrument under ASC 815-20		Balance Sheet LocationAs of December 31, 2023As of December 31, 2022
Foreign currency debtCurrent portion of long-term debt$65 $62 
Foreign currency debtLong-term debt523 400 
$588 $462 
Schedule of Effect of Non-derivative Instruments Qualifying and Designated as Hedging Instruments in Net Investment Hedges on Consolidated Financial Statements
The effect of non-derivative instruments qualifying and designated as net investment hedging instruments on the consolidated financial statements was as follows (in millions):
Amount of Gain (Loss)
Recognized in Other Comprehensive Income (Loss)
Non-derivative instruments under ASC 815-20
Net Investment Hedging Relationships		Year Ended December 31, 2023Year Ended December 31, 2022Year Ended December 31, 2021
Foreign Currency Debt$(23)$5 $8 
$(23)$5 $8 
Not Designated as Hedging Instrument  
Derivative instruments disclosure  
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance
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 Derivative
Derivatives Not Designated as Hedging
Instruments under ASC 815-20		Location of Gain (Loss)
Recognized in Income
on Derivative		Year Ended December 31, 2023Year Ended December 31, 2022Year Ended December 31, 2021
Foreign currency forward contractsOther (expense) income$19 $(102)$(31)
Fuel swapsOther (expense) income1 — 34 
$20 $(102)$3 
Fair value hedging  
Derivative instruments disclosure  
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance
The effect of derivative instruments qualifying and designated as hedging instruments and the related hedged items in fair value hedges on the consolidated statements of comprehensive income (loss) was as follows (in millions):
Location of Gain (Loss) Recognized in Income on Derivative and Hedged ItemAmount of Gain (Loss) Recognized in Income on DerivativeAmount of Gain (Loss) Recognized in Income on Hedged Item
Derivatives and related Hedged Items under ASC 815-20 Fair Value Hedging RelationshipsYear Ended December 31, 2023Year Ended December 31, 2022Year Ended December 31, 2021Year Ended December 31, 2023Year Ended December 31, 2022Year Ended December 31, 2021
Interest rate swapsInterest expense, net of interest capitalized$— $(4)$(1)$— $5 $11 
$— $(4)$(1)$— $5 $11 
Cash flow hedge  
Derivative instruments disclosure  
Schedule of Interest Rate Derivatives At December 31, 2023, we maintained interest rate swap agreements on the following floating-rate debt instruments:
Debt InstrumentSwap Notional as of December 31, 2023 (In millions)MaturityDebt Floating Rate (3)All-in Fixed Rate
Celebrity Reflection term loan
$55 October 2024Term SOFR0.40%2.88%
Quantum of the Seas term loan
184 October 2026Term SOFR1.30%3.78%
Anthem of the Seas term loan
211 April 2027Term SOFR1.30%3.9%
Ovation of the Seas term loan
311 April 2028Term SOFR1.00%3.20%
Harmony of the Seas term loan (1)
287 May 2028EURIBOR plus1.15%2.26%
Odyssey of the Seas term loan(2)
345 October 2032Term SOFR0.96%3.28%
Odyssey of the Seas term loan(2)
173 October 2032Term SOFR0.96%2.91%
$1,566 
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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, 2023.
(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.
(3)    During the year ended December 31, 2023, we completed our transition from LIBOR to Term SOFR rates for all of our Interest rate swap agreements.
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance
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 Derivative
Derivatives under ASC 815-20 Cash Flow Hedging RelationshipsYear Ended December 31, 2023Year Ended December 31, 2022Year Ended December 31, 2021
Interest rate swaps$11 $165 $46 
Foreign currency forward contracts24 (145)(204)
Fuel swaps(32)151 141 
$3 $171 $(17)