Royal Caribbean Cruises Ltd., balance sheet: debt

US$ in thousands

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Current portion of long-term debt	2,243,131)	961,768)	1,186,586)	1,646,841)	1,188,514)
Commercial paper	—)	409,319)	1,434,180)	775,488)	—)
Long-term debt, excluding current portion	18,847,209)	17,957,956)	8,414,110)	8,355,370)	6,350,937)
Total debt (carrying amount)	21,090,340)	19,329,043)	11,034,876)	10,777,699)	7,539,451)

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Debt item	Description	The company
Total debt (carrying amount)	Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations.	Royal Caribbean Cruises Ltd. total debt increased from 2019 to 2020 and from 2020 to 2021.

	Dec 31, 2021
Selected Financial Data (US$ in thousands)
Commercial paper	—)
Long-term debt, including current portion of long-term debt	22,376,480)
Finance lease liabilities	472,275)
Total debt (fair value)	22,848,755)
Financial Ratio
Debt, fair value to carrying amount ratio	1.08

Weighted-average interest rate on debt: 5.47%

Interest rate	Debt amount¹	Interest rate × Debt amount
5.47%	21,453,872)	1,173,527)
Total	21,453,872)	1,173,527)
5.47%

¹ US$ in thousands

² Weighted-average interest rate = 100 × 1,173,527 ÷ 21,453,872 = 5.47%

Royal Caribbean Cruises Ltd., interest costs incurred

US$ in thousands

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Interest expense, net of interest capitalized	1,291,753)	844,238)	408,513)	333,672)	299,982)
Capitalized interest costs	58,800)	59,100)	56,500)	49,600)	24,200)
Interest costs incurred	1,350,553)	903,338)	465,013)	383,272)	324,182)

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Debt item	Description	The company
Interest expense, net of interest capitalized	Amount of the cost of borrowed funds accounted for as interest expense for debt.	Royal Caribbean Cruises Ltd. interest expense, net of interest capitalized increased from 2019 to 2020 and from 2020 to 2021.
Capitalized interest costs	Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred.	Royal Caribbean Cruises Ltd. capitalized interest costs increased from 2019 to 2020 but then slightly decreased from 2020 to 2021.
Interest costs incurred	Total interest costs incurred during the period and either capitalized or charged against earnings.	Royal Caribbean Cruises Ltd. interest costs incurred increased from 2019 to 2020 and from 2020 to 2021.

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Selected Financial Data (US$ in thousands)
Net income (loss) attributable to Royal Caribbean Cruises Ltd.	(5,260,499)	(5,797,462)	1,878,887)	1,811,042)	1,625,133)
Add: Net income attributable to noncontrolling interest	—)	22,332)	28,713)	4,750)	—)
Add: Income tax expense	(45,200)	(15,000)	32,600)	20,900)	18,300)
Add: Interest expense, net of interest capitalized	1,291,753)	844,238)	408,513)	333,672)	299,982)
Earnings before interest and tax (EBIT)	(4,013,946)	(4,945,892)	2,348,713)	2,170,364)	1,943,415)

Interest costs incurred	1,350,553)	903,338)	465,013)	383,272)	324,182)
Financial Ratio With and Without Capitalized Interest
Interest coverage ratio (without capitalized interest)¹	-3.11	-5.86	5.75	6.50	6.48
Adjusted interest coverage ratio (with capitalized interest)²	-2.97	-5.48	5.05	5.66	5.99

2021 Calculations

¹ Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense, net of interest capitalized
= -4,013,946 ÷ 1,291,753 = -3.11

² Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest costs incurred
= -4,013,946 ÷ 1,350,553 = -2.97

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Solvency ratio	Description	The company
Adjusted interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments (including capitalized interest).	Royal Caribbean Cruises Ltd. adjusted interest coverage ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.

Royal Caribbean Cruises Ltd. (NYSE:RCL)

Analysis of Debt