Name: Royal Caribbean Cruises Ltd. (NYSE:RCL) | Statement of Comprehensive Income
Creator: Stock Analysis on Net

Statement of Comprehensive Income

Comprehensive income is the change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.

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Royal Caribbean Cruises Ltd., consolidated statement of comprehensive income

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)
Foreign currency translation adjustments	15,703)	40,346)	869)	(14,251)	17,307)
Change in defined benefit plans	8,707)	(19,984)	(19,535)	7,643)	(5,583)
Gain (loss) on cash flow derivative hedges	4,046)	38,010)	(151,313)	(286,861)	570,495)
Other comprehensive income (loss)	28,456)	58,372)	(169,979)	(293,469)	582,219)
Comprehensive income (loss)	(5,232,043)	(5,716,758)	1,737,621)	1,522,323)	2,207,352)
Comprehensive income attributable to noncontrolling interest	—)	(22,332)	(28,713)	(4,750)	—)
Comprehensive income (loss) attributable to Royal Caribbean Cruises Ltd.	(5,232,043)	(5,739,090)	1,708,908)	1,517,573)	2,207,352)

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).

The financial performance of Royal Caribbean Cruises Ltd. between 2017 and 2021 is characterized by a period of steady growth followed by a severe contraction. From 2017 through 2019, the entity maintained consistent profitability, which was abruptly reversed in 2020 and 2021, resulting in substantial comprehensive losses.

Net Income Trends: Net income exhibited a positive trajectory in the first three years of the period, rising from 1.63 billion US$ in 2017 to 1.91 billion US$ in 2019. This growth phase was succeeded by a dramatic shift to negative territory, with a loss of 5.78 billion US$ in 2020 and a loss of 5.26 billion US$ in 2021. The magnitude of these losses indicates a significant operational disruption starting in 2020.
Other Comprehensive Income (OCI) Volatility: The components of other comprehensive income show significant volatility, primarily driven by cash flow derivative hedges. A substantial gain of 570.5 million US$ in 2017 contributed positively to the overall comprehensive income, whereas losses were recorded in 2018 and 2019. By 2020 and 2021, OCI returned to positive values of 58.4 million US$ and 28.5 million US$ respectively, though these amounts were insufficient to offset the massive net losses incurred during those years.
Foreign Currency and Benefit Plan Adjustments: Foreign currency translation adjustments fluctuated throughout the period, peaking at 40.3 million US$ in 2020. Changes in defined benefit plans remained relatively immaterial compared to net income, oscillating between minor gains and losses, including a loss of 19.9 million US$ in 2020 and a gain of 8.7 million US$ in 2021.
Comprehensive Income Analysis: Comprehensive income mirrored the trajectory of net income but was modulated by OCI. In 2017, comprehensive income reached 2.21 billion US$, benefiting significantly from derivative hedge gains. However, the period ended with severe comprehensive losses of 5.72 billion US$ in 2020 and 5.23 billion US$ in 2021. The attribution of comprehensive income to the parent company aligns closely with the total results, as the impact of noncontrolling interests remained minimal.

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