Royal Caribbean Cruises Ltd., balance sheet: property, plant and equipment

US$ in thousands

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Ships	31,357,703)	29,872,655)	28,348,088)	27,209,553)	23,714,745)
Ship improvements	2,152,457)	2,108,922)	3,920,800)	2,965,634)	2,410,525)
Ships under construction	1,180,486)	1,078,243)	1,110,962)	817,800)	642,235)
Land, buildings and improvements, including leasehold improvements and port facilities	746,785)	524,849)	472,067)	321,136)	250,079)
Computer hardware and software, transportation equipment and other	1,650,249)	1,678,903)	1,698,007)	1,120,988)	762,512)
Property and equipment, gross	37,087,680)	35,263,572)	35,549,924)	32,435,111)	27,780,096)
Accumulated depreciation and amortization	(11,179,731)	(10,016,977)	(10,083,116)	(8,968,948)	(8,044,916)
Property and equipment, net	25,907,949)	25,246,595)	25,466,808)	23,466,163)	19,735,180)

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Item	Description	The company
Property and equipment, gross	Amount before accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures.	Royal Caribbean Cruises Ltd. property and equipment, gross decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.
Property and equipment, net	Amount after accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business to produce goods and services and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures.	Royal Caribbean Cruises Ltd. property and equipment, net decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Royal Caribbean Cruises Ltd., asset age ratios

		Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
	Average age ratio	30.14%	28.41%	28.36%	27.65%	28.96%

Asset age ratio	Description	The company
Average age ratio	As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient.	Royal Caribbean Cruises Ltd. average age ratio of depreciable property, plant and equipment 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
Selected Financial Data (US$ in thousands)
Accumulated depreciation and amortization	11,179,731)	10,016,977)	10,083,116)	8,968,948)	8,044,916)
Property and equipment, gross	37,087,680)	35,263,572)	35,549,924)	32,435,111)	27,780,096)
Asset Age Ratio
Average age¹	30.14%	28.41%	28.36%	27.65%	28.96%

2021 Calculations

¹ Average age = 100 × Accumulated depreciation and amortization ÷ Property and equipment, gross
= 100 × 11,179,731 ÷ 37,087,680 = 30.14%

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Asset age ratio	Description	The company
Average age	As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient.	Royal Caribbean Cruises Ltd. average age ratio of depreciable property, plant and equipment deteriorated from 2019 to 2020 and from 2020 to 2021.

Royal Caribbean Cruises Ltd. (NYSE:RCL)

Analysis of Property, Plant and Equipment