Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Royal Caribbean Cruises Ltd., balance sheet: goodwill and intangible assets

US$ in thousands

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Goodwill	809,383)	809,480)	1,385,644)	1,378,353)	288,512)
Customer relationships	97,400)	97,400)	97,400)	97,400)	—)
Galapagos operating license	47,669)	47,669)	47,669)	47,669)	—)
Other finite-life intangible assets	11,560)	11,560)	11,560)	11,560)	11,600)
Finite-life intangible assets, gross carrying value	156,629)	156,629)	156,629)	156,629)	11,600)
Accumulated amortization	(43,548)	(33,250)	(20,329)	(6,251)	(3,700)
Finite-life intangible assets, net carrying value	113,081)	123,379)	136,300)	150,378)	7,900)
Indefinite-life intangible assets	321,475)	321,475)	352,275)	351,725)	—)
Intangible assets, net	434,556)	444,854)	488,575)	502,103)	7,900)
Goodwill and intangible assets	1,243,939)	1,254,334)	1,874,219)	1,880,456)	296,412)

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
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.	Royal Caribbean Cruises Ltd. goodwill decreased from 2019 to 2020 and from 2020 to 2021.
Intangible assets, net	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Royal Caribbean Cruises Ltd. intangible assets, net decreased from 2019 to 2020 and from 2020 to 2021.
Goodwill and intangible assets	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Royal Caribbean Cruises Ltd. goodwill and intangible assets decreased from 2019 to 2020 and from 2020 to 2021.

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 Total Assets
Total assets (as reported)	32,258,355)	32,465,187)	30,320,284)	27,698,270)	22,296,317)
Less: Goodwill	809,383)	809,480)	1,385,644)	1,378,353)	288,512)
Total assets (adjusted)	31,448,972)	31,655,707)	28,934,640)	26,319,917)	22,007,805)
Adjustment to Shareholders’ Equity
Shareholders’ equity (as reported)	5,085,556)	8,760,669)	12,163,846)	11,105,461)	10,702,303)
Less: Goodwill	809,383)	809,480)	1,385,644)	1,378,353)	288,512)
Shareholders’ equity (adjusted)	4,276,173)	7,951,189)	10,778,202)	9,727,108)	10,413,791)
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: Goodwill impairment charge	—)	576,208)	—)	—)	—)
Net income (loss) attributable to Royal Caribbean Cruises Ltd. (adjusted)	(5,260,499)	(5,221,254)	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%	-236.38%	17.16%	19.08%	18.51%
Total Asset Turnover
Reported total asset turnover	0.05	0.07	0.36	0.34	0.39
Adjusted total asset turnover	0.05	0.07	0.38	0.36	0.40
Financial Leverage
Reported financial leverage	6.34	3.71	2.49	2.49	2.08
Adjusted financial leverage	7.35	3.98	2.68	2.71	2.11
Return on Equity (ROE)
Reported ROE	-103.44%	-66.18%	15.45%	16.31%	15.18%
Adjusted ROE	-123.02%	-65.67%	17.43%	18.62%	15.61%
Return on Assets (ROA)
Reported ROA	-16.31%	-17.86%	6.20%	6.54%	7.29%
Adjusted ROA	-16.73%	-16.49%	6.49%	6.88%	7.38%

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 revenue.	Royal Caribbean Cruises Ltd. adjusted net profit margin ratio deteriorated from 2019 to 2020 and from 2020 to 2021.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Royal Caribbean Cruises Ltd. adjusted total asset turnover 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 and 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 Goodwill
Selected Financial Data (US$ in thousands)
Adjusted net income (loss) attributable to Royal Caribbean Cruises Ltd.	(5,260,499)	(5,221,254)	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%	-236.38%	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 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)
Revenues	1,532,133)	2,208,805)	10,950,661)	9,493,849)	8,777,845)
Total assets	32,258,355)	32,465,187)	30,320,284)	27,698,270)	22,296,317)
Activity Ratio
Total asset turnover¹	0.05	0.07	0.36	0.34	0.39
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Revenues	1,532,133)	2,208,805)	10,950,661)	9,493,849)	8,777,845)
Adjusted total assets	31,448,972)	31,655,707)	28,934,640)	26,319,917)	22,007,805)
Activity Ratio
Adjusted total asset turnover²	0.05	0.07	0.38	0.36	0.40

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 Total asset turnover = Revenues ÷ Total assets
= 1,532,133 ÷ 32,258,355 = 0.05

² Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 1,532,133 ÷ 31,448,972 = 0.05

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Royal Caribbean Cruises Ltd. adjusted total asset turnover 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 Goodwill
Selected Financial Data (US$ in thousands)
Adjusted total assets	31,448,972)	31,655,707)	28,934,640)	26,319,917)	22,007,805)
Adjusted shareholders’ equity	4,276,173)	7,951,189)	10,778,202)	9,727,108)	10,413,791)
Solvency Ratio
Adjusted financial leverage²	7.35	3.98	2.68	2.71	2.11

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).

2021 Calculations

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

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity
= 31,448,972 ÷ 4,276,173 = 7.35

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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 Goodwill
Selected Financial Data (US$ in thousands)
Adjusted net income (loss) attributable to Royal Caribbean Cruises Ltd.	(5,260,499)	(5,221,254)	1,878,887)	1,811,042)	1,625,133)
Adjusted shareholders’ equity	4,276,173)	7,951,189)	10,778,202)	9,727,108)	10,413,791)
Profitability Ratio
Adjusted ROE²	-123.02%	-65.67%	17.43%	18.62%	15.61%

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 ÷ 4,276,173 = -123.02%

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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 Goodwill
Selected Financial Data (US$ in thousands)
Adjusted net income (loss) attributable to Royal Caribbean Cruises Ltd.	(5,260,499)	(5,221,254)	1,878,887)	1,811,042)	1,625,133)
Adjusted total assets	31,448,972)	31,655,707)	28,934,640)	26,319,917)	22,007,805)
Profitability Ratio
Adjusted ROA²	-16.73%	-16.49%	6.49%	6.88%	7.38%

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. ÷ Adjusted total assets
= 100 × -5,260,499 ÷ 31,448,972 = -16.73%

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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 and from 2020 to 2021.

Royal Caribbean Cruises Ltd. (NYSE:RCL)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

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

Adjusted Financial Ratios: Removal of Goodwill (Summary)

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

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)