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 | ) | ||||||||||
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Earnings | $ | 1,023,236 | $ | 916,691 | $ | 484,480 | $ | 920,552 | $ | 952,656 | ||||||||||
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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 | |||||||||||||||
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Fixed charges | $ | 409,246 | $ | 409,065 | $ | 363,277 | $ | 392,596 | $ | 394,503 | ||||||||||
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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 theBrilliance 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 statements 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. |