Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Royal Caribbean Cruises Ltd., income tax expense (benefit), continuing operations

US$ in thousands

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Current income taxes	(45,200)	(15,000)	32,600)	20,900)	18,300)
Deferred income taxes	—)	—)	—)	—)	—)
Income tax (expense) benefit	(45,200)	(15,000)	32,600)	20,900)	18,300)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

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Item	Description	The company
Current income taxes	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Royal Caribbean Cruises Ltd. current income taxes decreased from 2019 to 2020 and from 2020 to 2021.
Deferred income taxes	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.
Income tax (expense) benefit	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Royal Caribbean Cruises Ltd. income tax (expense) benefit decreased from 2019 to 2020 and from 2020 to 2021.

Royal Caribbean Cruises Ltd., effective income tax rate (EITR) reconciliation

		Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
	Effective income tax rate	0.85%	0.26%	1.68%	1.14%	1.11%
	Effective income tax rate	0.85%	0.26%	1.68%	1.14%	1.11%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

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Item	Description	The company
Effective income tax rate	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Royal Caribbean Cruises Ltd. effective income tax rate decreased from 2019 to 2020 but then slightly increased from 2020 to 2021.

Royal Caribbean Cruises Ltd., components of deferred tax assets and liabilities

US$ in thousands

		Dec 31, 2021		Dec 31, 2020		Dec 31, 2019		Dec 31, 2018		Dec 31, 2017
	Net deferred tax assets (liabilities)	—)		—)		—)		—)		—)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

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Item	Description	The company
Net deferred tax assets (liabilities)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.

Royal Caribbean Cruises Ltd., adjustments to financial statements

US$ in thousands

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Adjustment to Shareholders’ Equity
Shareholders’ equity (as reported)	5,085,556)	8,760,669)	12,163,846)	11,105,461)	10,702,303)
Less: Net deferred tax assets (liabilities)	—)	—)	—)	—)	—)
Shareholders’ equity (adjusted)	5,085,556)	8,760,669)	12,163,846)	11,105,461)	10,702,303)
Adjustment to Net Income (loss) Attributable To Royal Caribbean Cruises Ltd.
Net income (loss) attributable to Royal Caribbean Cruises Ltd. (as reported)	(5,260,499)	(5,797,462)	1,878,887)	1,811,042)	1,625,133)
Add: Deferred income tax expense (benefit)	—)	—)	—)	—)	—)
Net income (loss) attributable to Royal Caribbean Cruises Ltd. (adjusted)	(5,260,499)	(5,797,462)	1,878,887)	1,811,042)	1,625,133)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Royal Caribbean Cruises Ltd., Financial Data: Reported vs. Adjusted

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Royal Caribbean Cruises Ltd., adjusted financial ratios

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Net Profit Margin
Reported net profit margin	-343.34%	-262.47%	17.16%	19.08%	18.51%
Adjusted net profit margin	-343.34%	-262.47%	17.16%	19.08%	18.51%
Financial Leverage
Reported financial leverage	6.34	3.71	2.49	2.49	2.08
Adjusted financial leverage	6.34	3.71	2.49	2.49	2.08
Return on Equity (ROE)
Reported ROE	-103.44%	-66.18%	15.45%	16.31%	15.18%
Adjusted ROE	-103.44%	-66.18%	15.45%	16.31%	15.18%
Return on Assets (ROA)
Reported ROA	-16.31%	-17.86%	6.20%	6.54%	7.29%
Adjusted ROA	-16.31%	-17.86%	6.20%	6.54%	7.29%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Royal Caribbean Cruises Ltd. adjusted net profit margin ratio deteriorated from 2019 to 2020 and from 2020 to 2021.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Royal Caribbean Cruises Ltd. adjusted financial leverage ratio increased from 2019 to 2020 and from 2020 to 2021.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Royal Caribbean Cruises Ltd. adjusted ROE deteriorated from 2019 to 2020 and from 2020 to 2021.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Royal Caribbean Cruises Ltd. adjusted ROA deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.

Royal Caribbean Cruises Ltd., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
As Reported
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)
Revenues	1,532,133)	2,208,805)	10,950,661)	9,493,849)	8,777,845)
Profitability Ratio
Net profit margin¹	-343.34%	-262.47%	17.16%	19.08%	18.51%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income (loss) attributable to Royal Caribbean Cruises Ltd.	(5,260,499)	(5,797,462)	1,878,887)	1,811,042)	1,625,133)
Revenues	1,532,133)	2,208,805)	10,950,661)	9,493,849)	8,777,845)
Profitability Ratio
Adjusted net profit margin²	-343.34%	-262.47%	17.16%	19.08%	18.51%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

¹ Net profit margin = 100 × Net income (loss) attributable to Royal Caribbean Cruises Ltd. ÷ Revenues
= 100 × -5,260,499 ÷ 1,532,133 = -343.34%

² Adjusted net profit margin = 100 × Adjusted net income (loss) attributable to Royal Caribbean Cruises Ltd. ÷ Revenues
= 100 × -5,260,499 ÷ 1,532,133 = -343.34%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Royal Caribbean Cruises Ltd. adjusted net profit margin ratio deteriorated from 2019 to 2020 and from 2020 to 2021.

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Total assets	32,258,355)	32,465,187)	30,320,284)	27,698,270)	22,296,317)
Shareholders’ equity	5,085,556)	8,760,669)	12,163,846)	11,105,461)	10,702,303)
Solvency Ratio
Financial leverage¹	6.34	3.71	2.49	2.49	2.08
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Total assets	32,258,355)	32,465,187)	30,320,284)	27,698,270)	22,296,317)
Adjusted shareholders’ equity	5,085,556)	8,760,669)	12,163,846)	11,105,461)	10,702,303)
Solvency Ratio
Adjusted financial leverage²	6.34	3.71	2.49	2.49	2.08

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

¹ Financial leverage = Total assets ÷ Shareholders’ equity
= 32,258,355 ÷ 5,085,556 = 6.34

² Adjusted financial leverage = Total assets ÷ Adjusted shareholders’ equity
= 32,258,355 ÷ 5,085,556 = 6.34

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Royal Caribbean Cruises Ltd. adjusted financial leverage ratio 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
As Reported
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)
Shareholders’ equity	5,085,556)	8,760,669)	12,163,846)	11,105,461)	10,702,303)
Profitability Ratio
ROE¹	-103.44%	-66.18%	15.45%	16.31%	15.18%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income (loss) attributable to Royal Caribbean Cruises Ltd.	(5,260,499)	(5,797,462)	1,878,887)	1,811,042)	1,625,133)
Adjusted shareholders’ equity	5,085,556)	8,760,669)	12,163,846)	11,105,461)	10,702,303)
Profitability Ratio
Adjusted ROE²	-103.44%	-66.18%	15.45%	16.31%	15.18%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

¹ ROE = 100 × Net income (loss) attributable to Royal Caribbean Cruises Ltd. ÷ Shareholders’ equity
= 100 × -5,260,499 ÷ 5,085,556 = -103.44%

² Adjusted ROE = 100 × Adjusted net income (loss) attributable to Royal Caribbean Cruises Ltd. ÷ Adjusted shareholders’ equity
= 100 × -5,260,499 ÷ 5,085,556 = -103.44%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Royal Caribbean Cruises Ltd. adjusted ROE deteriorated from 2019 to 2020 and from 2020 to 2021.

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
As Reported
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)
Total assets	32,258,355)	32,465,187)	30,320,284)	27,698,270)	22,296,317)
Profitability Ratio
ROA¹	-16.31%	-17.86%	6.20%	6.54%	7.29%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income (loss) attributable to Royal Caribbean Cruises Ltd.	(5,260,499)	(5,797,462)	1,878,887)	1,811,042)	1,625,133)
Total assets	32,258,355)	32,465,187)	30,320,284)	27,698,270)	22,296,317)
Profitability Ratio
Adjusted ROA²	-16.31%	-17.86%	6.20%	6.54%	7.29%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

¹ ROA = 100 × Net income (loss) attributable to Royal Caribbean Cruises Ltd. ÷ Total assets
= 100 × -5,260,499 ÷ 32,258,355 = -16.31%

² Adjusted ROA = 100 × Adjusted net income (loss) attributable to Royal Caribbean Cruises Ltd. ÷ Total assets
= 100 × -5,260,499 ÷ 32,258,355 = -16.31%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Royal Caribbean Cruises Ltd. adjusted ROA deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.

Royal Caribbean Cruises Ltd. (NYSE:RCL)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Adjustments to Financial Statements: Removal of Deferred Taxes

Royal Caribbean Cruises Ltd., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Royal Caribbean Cruises Ltd., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)