Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Royal Caribbean Cruises Ltd., consolidated cash flow statement

US$ in thousands

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Net income (loss)	(5,260,499)	(5,775,130)	1,907,600)	1,815,792)	1,625,133)
Depreciation and amortization	1,292,878)	1,279,254)	1,245,942)	1,033,697)	951,194)
Impairment and credit losses	82,001)	1,566,380)	—)	33,651)	—)
Net deferred income tax expense (benefit)	(42,979)	(8,791)	7,745)	(2,679)	1,730)
(Gain) loss on derivative instruments not designated as hedges	(1,492)	49,316)	(1,431)	61,148)	(61,704)
Share-based compensation expense	63,638)	39,779)	75,930)	46,061)	69,459)
Equity investment (income) loss	135,469)	213,286)	(230,980)	(210,756)	(156,247)
Amortization of debt issuance costs	125,116)	89,442)	31,991)	41,978)	45,943)
Amortization of debt discounts and premiums	123,439)	66,776)	31,616)	11,004)	—)
Loss on extinguishment of debt	138,759)	41,109)	6,326)	—)	—)
Currency translation adjustment losses	—)	69,044)	—)	—)	—)
Change in fair value of contingent consideration	—)	(45,126)	18,400)	—)	—)
Gain on sale of property and equipment	—)	—)	—)	—)	(30,902)
Gain on sale of unconsolidated affiliate	—)	—)	—)	(13,680)	—)
Recognition of deferred gain	—)	—)	—)	(21,794)	—)
(Increase) decrease in trade and other receivables, net	(181,707)	121,055)	(9,898)	(9,573)	(32,043)
(Increase) decrease in inventories	(34,527)	27,077)	(8,533)	(23,849)	2,424)
(Increase) decrease in prepaid expenses and other assets	(152,071)	295,876)	15,669)	(71,770)	20,859)
Increase (decrease) in accounts payable	188,518)	(133,815)	75,281)	91,737)	36,780)
Increase (decrease) in accrued interest	(694)	182,578)	(4,460)	18,773)	1,303)
Increase (decrease) in accrued expenses and other liabilities	235,446)	(180,479)	96,490)	42,937)	34,215)
Increase (decrease) in customer deposits	1,426,647)	(1,643,560)	280,139)	385,990)	274,705)
Changes in operating assets and liabilities	1,481,612)	(1,331,268)	444,688)	434,245)	338,243)
Dividends received from unconsolidated affiliates	—)	2,215)	150,177)	243,101)	109,677)
Other, net	(15,757)	12,061)	28,362)	7,371)	(17,960)
Adjustments	3,382,684)	2,043,477)	1,808,766)	1,663,347)	1,249,433)
Net cash provided by (used in) operating activities	(1,877,815)	(3,731,653)	3,716,366)	3,479,139)	2,874,566)
Purchases of property and equipment	(2,229,704)	(1,965,131)	(3,024,663)	(3,660,028)	(564,138)
Cash received on settlement of derivative financial instruments	44,492)	15,874)	7,621)	76,529)	63,224)
Cash paid on settlement of derivative financial instruments	(74,249)	(161,335)	(68,836)	(98,074)	—)
Investments in and loans to unconsolidated affiliates	(70,228)	(100,609)	(25,569)	(27,172)	(10,396)
Cash received on loans to unconsolidated affiliates	31,334)	21,086)	32,870)	124,238)	62,303)
Proceeds from the sale of property and equipment and other assets	176,039)	27,796)	—)	—)	230,000)
Proceeds from the sale of unconsolidated affiliate	—)	—)	—)	13,215)	—)
Acquisition of Silversea Cruises, net of cash acquired	—)	—)	—)	(916,135)	—)
Other, net	(22,423)	(16,247)	(12,829)	(1,731)	5,415)
Net cash used in investing activities	(2,144,739)	(2,178,566)	(3,091,406)	(4,489,158)	(213,592)
Debt proceeds	4,467,789)	13,547,189)	3,525,564)	8,590,740)	5,866,966)
Debt issuance costs	(201,698)	(374,715)	(50,348)	(81,959)	(51,590)
Repayments of debt	(2,296,990)	(3,845,133)	(4,060,244)	(6,963,511)	(7,835,087)
Premium on repayment of debt	(135,372)	—)	—)	—)	—)
Proceeds from issuance of commercial paper notes	—)	6,765,816)	26,240,540)	4,730,286)	—)
Repayments of commercial paper notes	(414,570)	(7,837,635)	(25,613,111)	(3,965,450)	—)
Purchase of treasury stock	—)	—)	(99,582)	(575,039)	(224,998)
Dividends paid	—)	(326,421)	(602,674)	(527,494)	(437,455)
Proceeds from common stock issuances	1,621,860)	1,431,375)	—)	—)	—)
Other, net	(442)	(10,688)	(10,516)	(9,500)	6,368)
Net cash provided by (used in) financing activities	3,040,577)	9,349,788)	(670,371)	1,198,073)	(2,675,796)
Effect of exchange rate changes on cash	(727)	1,167)	1,297)	(20,314)	2,331)
Net increase (decrease) in cash and cash equivalents	(982,704)	3,440,736)	(44,114)	167,740)	(12,491)
Cash and cash equivalents at beginning of year	3,684,474)	243,738)	287,852)	120,112)	132,603)
Cash and cash equivalents at end of year	2,701,770)	3,684,474)	243,738)	287,852)	120,112)

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).

Net income (loss): There is a steady increase in net income from 2017 through 2019, reaching a peak of approximately $1.9 billion in 2019. However, significant net losses were recorded in 2020 and 2021, with losses exceeding $5 billion in both years, reflecting a drastic downturn.
Depreciation and amortization: Depreciation and amortization expenses show a consistent upward trend from 2017 to 2021, increasing from around $951 million to over $1.29 billion, indicating ongoing capital expenditure and asset usage.
Impairment and credit losses: Impairment and credit losses, absent in most years, spike sharply in 2020 to over $1.56 billion, then decrease substantially in 2021, suggesting notable asset impairments and credit risks during 2020.
Net deferred income tax expense (benefit): This item fluctuates over the years with small values, generally negative in the later years, indicating a tax benefit mainly in 2020 and 2021.
(Gain) loss on derivative instruments not designated as hedges: The gains and losses fluctuate without a clear trend, presenting volatility in derivative instruments impacting the results in various years.
Share-based compensation expense: There is variability year-over-year, with expenses declining sharply in 2020 but rising again in 2021.
Equity investment (income) loss: Equity investment results are positive in 2020 and 2021, a reversal from consistent losses in the preceding years, suggesting improvements or changes in associated investments.
Operating assets and liabilities changes: Significant positive changes in 2017-2019 contrast with a large negative change in 2020 followed by a strong positive reversal in 2021, reflecting volatile working capital management aligned with the operational challenges faced.
Net cash provided by (used in) operating activities: Operating cash flow is robust and increasing until 2019 but turns sharply negative in 2020 and remains negative in 2021, indicating operational difficulties affecting cash generation during these years.
Purchases of property and equipment: Capital expenditures fluctuate significantly, with an exceptionally high outflow in 2018 and continued substantial investments through 2021, signifying ongoing asset investment despite challenges.
Net cash used in investing activities: Investing activities show substantial cash outflows every year, with the heaviest use in 2018 and consistent negative cash flow to 2021, reflecting continued investments and acquisitions.
Debt proceeds and repayments: Debt proceeds spike notably in 2020, reaching over $13.5 billion, a substantial increase compared to prior years, while repayments generally decrease over time post-2017, indicating significant borrowing likely to support liquidity amid operational challenges.
Proceeds and repayments of commercial paper notes: Commercial paper financing increased dramatically in 2019 and 2020, followed by repayments in subsequent years, showing active short-term debt management.
Dividends paid and purchase of treasury stock: Dividend payments decline after 2019 and cease to appear in 2021, while treasury stock purchases stop after 2019, indicating a suspension of shareholder returns during financially strenuous periods.
Proceeds from common stock issuances: Equity issuance occurs in 2020 and 2021, supporting financing needs during the downturn.
Net cash provided by (used in) financing activities: Financing cash flows fluctuate sharply, with negative cash flow in 2017, positive inflows in 2018, negative again in 2019, and a large positive inflow in 2020 and 2021, underscoring active financing strategies to address liquidity.
Cash and cash equivalents: Cash levels rise notably in 2020 to over $3.68 billion by year-end, followed by a decline in 2021, reflecting the impact of financing activities and operational cash usage.

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Royal Caribbean Cruises Ltd. (NYSE:RCL)

Cash Flow Statement