Exhibit 12.1
Royal Caribbean Cruises Ltd.
Ratio of Earnings to Fixed Charges
(in thousands, except ratios)
Years Ended December 31, | |||||||||||
2011 | 2010 | 2009 | 2008 | 2007 | |||||||
Earnings | |||||||||||
Net income | $607,421 | $515,653 | (3) | $152,485 | (3) | $573,722 | $603,405 | ||||
Income tax expense (benefit) | 20,673 | 20,266 | (5,053) | 2,617 | 2,524 | ||||||
(Income) loss from equity investees, net of distributions | (118) | (200) | 15,244 | (4,042) | (7,837) | ||||||
Fixed charges | 409,246 | 409,065 | 363,277 | 392,596 | 394,503 | ||||||
Capitalized interest | (13,986) | (28,093) | (3) | (41,473) | (3) | (44,341) | (39,939) | ||||
Earnings | $1,023,236 | $916,691 | $484,480 | $920,552 | $952,656 | ||||||
Fixed Charges | |||||||||||
Interest expense (1) | $396,402 | $399,300 | (3) | $351,421 | (3) | $371,654 | $373,723 | ||||
Interest portion of rent expense (2) | 12,844 | 9,765 | 11,856 | 20,942 | 20,780 | ||||||
Fixed charges | $409,246 | $409,065 | $363,277 | $392,596 | $394,503 | ||||||
Ratio of Earnings to Fixed Charges | 2.5x | 2.2x | 1.3x | 2.3x | 2.4x |
(1) | Interest expense includes capitalized interest and amortization of deferred financing expenses. | |
(2) | Interest portion of rent expense represents actual interest charges for the Brilliance of the Seas operating lease and, for all other rentals, we have assumed that one-third of rent expense is representative of the interest factor. | |
(3) | Amounts for 2010 and 2009 include a revision for the correction of errors in the manner in which we were amortizing certain guarantee fees related to three outstanding export credit agency guaranteed loans, and to a much lesser extent, fees associated with our revolving credit facilities. Refer to Note 1. “General – Revision of Prior Period Financial Statements” to our consolidated financial under Item 8. Financial Statements and Supplementary Data for further details included in our Annual Report on Form 10-K for the year ended December 31, 2011. |