Norwegian Cruise Line(NCLH) - 2024 Q4 - Annual Report

Debt and Interest Rates - As of December 31, 2024, 94% of the company's debt was fixed and 6% was variable, compared to 95% fixed and 5% variable as of December 31, 2023[381] - A one percentage point increase in annual Term SOFR interest rates would increase the company's annual interest expense by approximately $7.8 million, excluding the effects of capitalization of interest[381] - The company is exposed to market risks from changes in interest rates, foreign currency exchange rates, and fuel prices, which it attempts to mitigate through derivatives[380] Foreign Currency Exposure - The company had foreign currency payments not hedged aggregating €16.0 billion (approximately$16.6 billion) as of December 31, 2024, up from €5.4 billion (approximately $6.0 billion) as of December 31, 2023[382] Fuel Expenses - Fuel expense as a percentage of total cruise operating expense was 12.3$65.1 million, partially offset by an increase in the fair value of fuel swap agreements of $34.7 million[386] Newbuild Agreements - The company has eight new effective newbuild agreements, excluding two ships on order for Oceania Cruises scheduled for delivery in 2030 and 2031[382] Financial Metrics - The company’s adjusted EBITDA and adjusted net income metrics are defined in the annual report, reflecting the adjustments made for various income and expense items[15] Financing Activities - The company issued$862.5 million aggregate principal amount of exchangeable senior notes due 2024 on May 8, 2020[15]