Royal Caribbean Cruise Lines 2011 Annual Report Download

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2011 Annual Report
Royal Caribbean Cruises Ltd.

Table of contents

  • Page 1
    Royal Caribbean Cruises Ltd. 2011 Annual Report

  • Page 2
    ...cruise company, operating the Royal Caribbean International, Celebrity Cruises, Pullmantur, Azamara Club Cruises and CDF Croisieres de France brands, with 40 ships and a passenger capacity of approximately 94,000, and TUI Cruises through a 50% joint venture. It also offers unique land-tour vacations...

  • Page 3
    ... an additional Solstice Class ship, Celebrity Reflection, scheduled to join the fleet this fall. Celebrity Cruises is part of global vacation company Royal Caribbean Cruises Ltd. (NYSE, OSE: RCL). For more information, dial 1-800-437-3111, visit www.celebritycruises.com, or call your travel agent...

  • Page 4
    ... is the cruise industry's market leader. There is a relaxed and comfortable atmosphere onboard its five ships, which visit the Mediterranean, Baltic, Caribbean, Mexico, and South America. Acquired by Royal Caribbean Cruises Ltd. in 2006, the company also provides tour operations in Europe and Africa...

  • Page 5
    ...cost discipline. We have reached an important milestone this year as we are now attracting about half of all our guests from outside the United States. This is a particular thrill for me-when I first joined the company, 90% of our guests boarded within 100 meters of my office; today, an equal number...

  • Page 6
    ... vessel in the class, Celebrity Reflection this October. The first of the two Royal Caribbean International Sunshine-class vessels delivers in the fourth quarter of 2014 and will be followed by a sister-ship in the second quarter of 2015. In addition, our German joint venture, TUI Cruises, will take...

  • Page 7
    ...) will enhance our guests' experiences onboard and will improve our ticket and onboard revenue opportunities as well. By year-end 2012, seven vessels from the Royal Caribbean International fleet and three vessels from the celebrity Cruises fleet will have benefitted from these revitalizations...

  • Page 8
    Financial Highlights Royal Caribbean Cruises Ltd. dollars in thousands, except per share data 20112 $7,537,2632 931,628 607,421 2.77 8,407,823 20102 $6,752,5042 802,6332 515,6532 2.372 7,900,7522 2009 $5,889,8262 488,5112 152,4852 0.712 7,489,781 Total Revenues Operating... in accounting principle...

  • Page 9
    2011 FORM 10-K R O YA L C A R I B B E A N C R U I S E S LT D . R OYA L C A R I B B E A N C R U I S E S LT D. 5

  • Page 10
    THIS PAGE INTENTIONALLY LEFT BLANK

  • Page 11
    ... Caribbean Way, Miami, Florida 33132 (Address of principal executive offices) (zip code) (305) 539-6000 (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: Title of each class Common Stock, par value $.01 per share Securities registered...

  • Page 12
    ...Legal Proceedings ...Mine Safety Disclosures ...PART II Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities ...Selected Financial Data ...Management's Discussion and Analysis of Financial Condition and Results of Operations ...Quantitative and...

  • Page 13
    ...quarter of 2015, respectively. Royal Caribbean International offers a variety of itineraries to destinations worldwide, including Alaska, Asia, Australia, Bahamas, Bermuda, Canada, the Caribbean, Europe, the Middle East, the Panama Canal, South America, South Pacific and New Zealand. Royal Caribbean...

  • Page 14
    ... lengths and itineraries to premium destinations throughout the world, including Alaska, Asia, Australia, Bermuda, Canada, the Caribbean, Europe, Hawaii, the Middle East, New Zealand, the Panama Canal and South America. Celebrity Cruises is also the only major cruise line to operate a ship in the...

  • Page 15
    ... product for German guests. All onboard activities, services, shore excursions and menu offerings are designed to suit the preferences of this target market. TUI Cruises operates two ships, Mein Schiff I and Mein Schiff II, with an aggregate capacity of approximately 3,800 berths. In 2011, TUI...

  • Page 16
    ... cruise guests, and the weighted-average supply of berths marketed globally, in North America and Europe are based on a combination of data that we obtain from various publicly available cruise industry trade information sources including Seatrade Insider and Cruise Line International Association...

  • Page 17
    ... we believe will provide opportunities for increased ticket and onboard revenues. We sell and market our global brands, Royal Caribbean International, Celebrity Cruises and Azamara Club Cruises, to guests outside of North America through our offices in the United Kingdom, France, Germany, Norway...

  • Page 18
    ... committed to building state-of-the-art ships, and currently have signed agreements for the construction of three new ships, Celebrity Reflection which is scheduled to enter service in the fourth quarter of 2012 and two ships of a new generation of Royal Caribbean International cruise ships known as...

  • Page 19
    ... the Seas, Freedom of the Seas, Radiance of the Seas and Splendour of the Seas were revitalized in 2011 as part of this revitalization program. An additional five ships are scheduled for revitalization in 2012. Continuing our commitment to build state-of-the-art ships, Royal Caribbean International...

  • Page 20
    ...seek opportunities to optimally deploy ships in our Royal Caribbean International, Celebrity Cruises, Azamara Club Cruises and Pullmantur brands to new markets and itineraries throughout the world. The portability of our ships and our investment in infrastructure allows us to expand into new markets...

  • Page 21
    ... of 2013. During the winter season, Celebrity Cruises will have ships in Australia and New Zealand, Hawaii, the Panama Canal and, for the first time in the brand's history, Asia with longer cruises calling in ports in Southeast Asia, Indonesia, China and Japan. In 2012, Azamara Club Cruises' voyages...

  • Page 22
    ...customize flight arrangements by selecting a specific airline, flight and class of service. Choice Air can be accessed and utilized by both travel agents and guests. Royal Caribbean International, Celebrity Cruises and Azamara Club Cruises offer rewards to their guests through their loyalty programs...

  • Page 23
    ... 2012. Ship Royal Caribbean International Allure of the Seas Oasis of the Seas Independence of the Seas Liberty of the Seas Freedom of the Seas Jewel of the Seas Mariner of the Seas Serenade of the Seas Navigator of the Seas Brilliance of the Seas Adventure of the Seas Radiance of the Seas Explorer...

  • Page 24
    ...Celebrity Reflection Royal Caribbean International- Project Sunshine: Unnamed Unnamed Total Berths Expected to Enter Service Approximate Berths In addition, in 2011, TUI Cruises entered into a construction agreement to build its first newbuild ship, scheduled for delivery in the second quarter...

  • Page 25
    ... travel agents and others the opportunity to purchase gifts for guests. In conjunction with our cruise vacations, we offer preand post-cruise hotel packages to our Royal Caribbean International, Celebrity Cruises and Azamara Club Cruises guests. We also offer these guests escorted, premium land-tour...

  • Page 26
    ... that we have sufficient coverage to meet the level of coverage required under the EU Passenger Liability Regulation. TRADEMARKS We own a number of registered trademarks related to the Royal Caribbean International, Celebrity Cruises, Azamara Club Cruises, Pullmantur and CDF Croisières de France...

  • Page 27
    ... as discussed more fully below. Ships operating out of United States ports are subject to inspection by the United States Coast Guard for compliance with international treaties and by the United States Public Health Service for sanitary conditions. Our ships are also subject to similar inspections...

  • Page 28
    ... two U.S. shipoperating companies, Royal Caribbean Cruises Ltd. and Celebrity Cruises, Inc. and a bond in the amount of $15.0 million for one of our U.K. ship-operating companies, as a condition to obtaining the required certificates. In September 2011, the United States Federal Maritime Commission...

  • Page 29
    ... or some other measure. We are primarily foreign corporations engaged in the business of operating passenger cruise ships in international transportation. We also own and operate other businesses primarily consisting of the land-tour operation in Alaska and the Pullmantur land-tour and air business...

  • Page 30
    ... tonnage tax company. Regulations under Section 883 list activities that are not considered by the Internal Revenue Service to be incidental to the international operation of ships including income from the sale of air and land transportation, shore excursions and pre- and post-cruise tours. To...

  • Page 31
    ... Vice President, Brand Operations of Royal Caribbean International, Senior Vice President, Total Guest Satisfaction and Senior Vice President, Marketing. Mr. Goldstein served as National Chair of the United States Travel Association (formerly, Travel Industry Association of America) in 2001. Daniel...

  • Page 32
    ... management, air/sea, groups, international operations, decision support, reservations and customer service for both Royal Caribbean International and Celebrity Cruises. Harri U. Kulovaara has served as Executive Vice President, Maritime, since January 2005. Mr. Kulovaara is responsible for fleet...

  • Page 33
    ... sales and results of operations. The operation of cruise ships, airplanes, land tours, port facilities and shore excursions involves the risk of accidents, illnesses, environmental incidents and other incidents which may bring into question guest safety, health, security and vacation satisfaction...

  • Page 34
    ... vacation operators, which provide other leisure options including hotels, resorts and package holidays and tours. We face significant competition from other cruise lines on the basis of cruise pricing, travel agent preference and also in terms of the nature of ships and services we offer to guests...

  • Page 35
    ... expenses to purchase and/or develop new equipment and adversely impact the cruise vacation industry. See "Item 1. Business- Regulation-Environmental Regulations." An increase in fuel prices not only impacts our fuel costs, but also some of our other expenses, such as crew travel, freight and...

  • Page 36
    ... their communities from additional tourists. Any limitations on the availability of our ports of call or on the availability of shore excursion and other service providers at such ports could adversely affect our results of operations. Price increases for commercial airline service for our guests or...

  • Page 37
    ... costs or could impair our operating results. A change in our tax status under the United States Internal Revenue Code, or other jurisdictions, may have adverse effects on our income. We and a number of our subsidiaries are foreign corporations that derive income from a United States trade...

  • Page 38
    ... ships, including their size and primary areas of operation, may be found within the Operating Strategies-Fleet revitalization, maintenance and expansion section and the Operations- Cruise Ships and Itineraries section in Item 1. Business. Information regarding our cruise ships under construction...

  • Page 39
    ... in June 2011 against Royal Caribbean Cruises Ltd. in the United States District Court for the Southern District of Florida on behalf of a purported class of stateroom attendants employed onboard Royal Caribbean International cruise vessels alleging that they were required to pay other crew members...

  • Page 40
    ...'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES MARKET INFORMATION Our common stock is listed on the New York Stock Exchange ("NYSE") and the Oslo Stock Exchange ("OSE") under the symbol "RCL." The table below sets forth the high and low sales prices of our...

  • Page 41
    ...and the Dow Jones United States Travel and Leisure Index for a five-year period by measuring the changes in common stock prices from December 31, 2006 to December 31, 2011. $140 $120 $100 $80 $60 $40 $20 0 12/06 12/07 12/08 S&P 500 12/09 12/10 12/11 Royal Caribbean Cruises Ltd. Dow Jones US...

  • Page 42
    ...do not impact operating income, cash flows, Net Yields, Net Cruise Costs or Net Cruise Costs Excluding Fuel. The discussion and analysis included herein is based on the revised financial results for the years ended December 31, 2010 and 2009. CAUTIONARY NOTE CONCERNING FORWARD-LOOKING STATEMENTS The...

  • Page 43
    ... generally accepted in the United States of America ("GAAP"). (See Note 1. General and Note 2. Summary of Significant Accounting Policies to our consolidated financial statements under Item 8. Financial Statements and Supplementary Data.) Certain of our accounting policies are deemed "critical," as...

  • Page 44
    ... of the cash flows of other assets and liabilities is at the ship level. (See Note 2. Summary of Significant Accounting Policies to our consolidated financial statement under Item 8. Financial Statements and Supplementary Data.) If estimated future cash flows are less than the carrying value of...

  • Page 45
    ... on accessing capital, changes in forecasted operating results, changes in fuel prices and fluctuations in foreign exchange rates. Based on our qualitative assessment, we concluded that it was more-likely-than-not that the estimated fair value of the Royal Caribbean International reporting unit...

  • Page 46
    ...Significant Accounting Policies and Note 13. Fair Value Measurements and Derivative Instruments to our consolidated financial statements for more information on related authoritative guidance, the Company's hedging programs and derivative financial instruments. We enter into foreign currency forward...

  • Page 47
    ...of revenues from the sale of goods and/or services onboard our ships not included in passenger ticket prices, cancellation fees, sales of vacation protection insurance, pre- and post-cruise tours, Pullmantur's land-based tours and hotel and air packages including Pullmantur Air's charter business to...

  • Page 48
    ... beyond, especially within developmental markets. During 2012, we expect a significant amount of our passenger ticket revenues from outside of the United States. In 2012, Royal Caribbean International will focus on the development of key markets in Southern Europe and Asia, where we have established...

  • Page 49
    ... our 2012 scheduled maturities and other obligations in 2012 through operating cash flows, our current available revolving credit facilities and our current financing arrangements, although we may opportunistically access the credit and capital markets. RESULTS OF OPERATIONS Summary YEAR ENDED...

  • Page 50
    ... to build two ships of a new generation of Royal Caribbean International cruise ships, known as "Project Sunshine." The ships will each have a capacity of approximately 4,100 berths and are expected to enter service in the third quarter of 2014 and in the second quarter of 2015, respectively...

  • Page 51
    ... three years: Year Ended December 31, Passenger ticket revenues Onboard and other revenues Total revenues Cruise operating expenses Commissions, transportation and other Onboard and other Payroll and related Food Fuel Other operating Total cruise operating expenses Marketing, selling and...

  • Page 52
    ... levels. We believe the decline in new bookings was driven by the extensive media coverage of the incident and the curtailment of marketing activities by most cruise lines and travel agencies. We also noted that the impact on bookings was the greatest for the first three quarters of 2012, while...

  • Page 53
    ... offset by the sale of Celebrity Mercury to TUI Cruises in February 2011. In addition, approximately $277.0 million of the increase in revenue was driven by an increase in ticket prices and the favorable effect of changes in foreign currency exchange rates related to our revenue transactions...

  • Page 54
    ...demand for our cruises and tours to Mexico. These increases were partially offset by a decrease in air revenue due to a reduction in guests booking air service through us and an overall decrease in air ticket prices, a decrease in shore excursions revenue on a per passenger basis related to seasonal...

  • Page 55
    ... of Celebrity Mercury and $55.0 million from the sale of Bleu de France. In addition, during 2011, we received $34.3 million in proceeds primarily from the sale of our fuel call options, partially offset by cash paid on settlements on our foreign currency forward contracts of $18.0 million, compared...

  • Page 56
    ... approximately 7,100 berths. In addition, in February 2012, we exercised our option to construct a second Project Sunshine ship with a capacity of approximately 4,100 berths which is expected to enter service in the second quarter of 2015. As of December 31, 2011, the aggregate cost of our ships on...

  • Page 57
    ... of our business, depending on market conditions, pricing and our overall growth strategy, we continuously consider opportunities to enter into contracts for the building of additional ships. We may also consider the sale of ships or the purchase of existing ships. We continuously consider potential...

  • Page 58
    ... after receipt of cash from related bookings. In addition, we finance the purchase of our ships through long-term debt instruments. We generate substantial cash flows from operations and our business model, along with our unsecured revolving credit facilities, has historically allowed us to maintain...

  • Page 59
    ... market risk attributable to changes in interest rates, foreign currency exchange rates and fuel prices. We manage these risks through a combination of our normal operating and financing activities and through the use of derivative financial instruments pursuant to our hedging practices and policies...

  • Page 60
    ...in comparative interest rates, would result in a $81.3 million increase in the United States dollar cost of the foreign currency denominated ship construction contracts exposed to fluctuations in the euro exchange rate. Our growing international business operations subject us to an increasing level...

  • Page 61
    ... foreign currency forward contracts are recognized in earnings within other income (expense) in our consolidated statements of operations. Fuel Price Risk Our exposure to market risk for changes in fuel prices primarily relates to the consumption of fuel on our ships. Fuel cost (net of the financial...

  • Page 62
    ... of our internal control over financial reporting as of December 31, 2011 has been audited by PricewaterhouseCoopers LLP, the independent registered certified public accounting firm that audited our consolidated financial statements included in this Annual Report on Form 10-K, as stated in its...

  • Page 63
    ... in Part I of this Annual Report on Form 10-K, the information required by Items 10, 11, 12, 13 and 14 is incorporated herein by reference to the Royal Caribbean Cruises Ltd. definitive proxy statement (the "Proxy Statement") to be filed with the Securities and Exchange Commission no later than 120...

  • Page 64
    ... CARIBBEAN CRUISES LTD. (Registrant) By: /s/ BRIAN J. RICE Brian J. Rice Executive Vice President and Chief Financial Officer (Principal Financial Officer and duly authorized signatory) February 29, 2012 Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed...

  • Page 65
    ...dated as of January 25, 2007 among the Company, as issuer, The Bank of New York, as trustee, transfer agent, principal paying agent and security registrar, and AIB/ BNY Fund Management (Ireland) Limited, as Irish paying agent (incorporated by reference to Exhibit 10.1 to the Company's Current Report...

  • Page 66
    ..., 2010 and Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2011). Exhibit Description 10.8 -Credit Agreement dated as of March 15, 2010, as amended, among Allure of the Seas Inc., as borrower, Royal Caribbean Cruises Ltd. as guarantor, various...

  • Page 67
    ... Annual Report on Form 10-K). 10.22 -Form of Royal Caribbean Cruises Ltd. 2008 Equity Incentive Plan Performance Share Agreement (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the Commission on February 22, 2012). 10.23 -Employment Agreement dated...

  • Page 68
    ...quarterly period ended September 30, 2008 and Exhibit 10.38 to the Company's Annual Report on Form 10-K). 10.32 -Summary of Royal Caribbean Cruises Ltd. Board of Directors Compensation (incorporated by reference to Exhibit 10.29 to the Company's 2010 Annual Report on Form 10-K). 10.33 -Cruise Policy...

  • Page 69
    INDEX TO CONSOLIDATED FINANCIAL STATEMENTS Page Report of Independent Registered Certified Public Accounting Firm ...Consolidated Statements of Operations...Consolidated Balance Sheets ...Consolidated Statements of Cash Flows ...Consolidated Statements of Shareholders' Equity ...Notes to the ...

  • Page 70
    ... of their operations and their cash flows for each of the three years in the period ended December 31, 2011 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control...

  • Page 71
    ...117 5,889,826 Passenger ticket revenues Onboard and other revenues Total revenues Cruise operating expenses: Commissions, transportation and other Onboard and other Payroll and related Food Fuel Other operating Total cruise operating expenses Marketing, selling and administrative expenses...

  • Page 72
    ... of long-term debt Accounts payable Accrued interest Accrued expenses and other liabilities Customer deposits Total current liabilities Long-term debt Other long-term liabilities Commitments and contingencies (Note 14) Shareholders' equity Preferred stock ($0.01 par value; 20,000,000 shares...

  • Page 73
    ... common stock options Other, net Net cash (used in) provided by financing activities Effect of exchange rate changes on cash Net (decrease) increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year Supplemental Disclosures Cash paid...

  • Page 74
    ... shareholder. See Note 6. Other Assets for further information regarding Pullmantur Air, S.A.'s ownership structure. Comprehensive income is as follows (in thousands): Year Ended December 31, Net income Changes related to cash flow derivative hedges Change in defined benefit plans Foreign currency...

  • Page 75
    ...global cruise company. We own five cruise brands, Royal Caribbean International, Celebrity Cruises, Pullmantur, Azamara Club Cruises, and CDF Croisières de France with a combined total of 39 ships in operation at December 31, 2011. Our ships operate on a selection of worldwide itineraries that call...

  • Page 76
    ...received on sales of passenger cruises are initially recorded as customer deposit liabilities on our balance sheet. Customer deposits are subsequently recognized as passenger ticket revenues, together with revenues from onboard and other goods and services and all associated direct costs of a voyage...

  • Page 77
    ...assets allocated to the reporting unit. Factors to consider when performing the qualitative assessment include general economic conditions, limitations on accessing capital, changes in forecasted operating results, changes in fuel prices and fluctuations in foreign exchange rates. If the qualitative...

  • Page 78
    ... hedged items. In the event that hedge accounting is discontinued, cash flows subsequent to the date of discontinuance are classified within investing activities. Cash flows from derivative instruments not designated as hedging instruments are classified as investing activities. Foreign Currency...

  • Page 79
    ... the related tax effects are recognized as they vest. We use the estimated amount of expected forfeitures to calculate compensation costs for all outstanding awards. Segment Reporting We operate five wholly-owned cruise brands, Royal Caribbean International, Celebrity Cruises, Azamara Club Cruises...

  • Page 80
    ... by operating activities in order to conform to the current year presentation. NOTE 3. GOODWILL In 2011, 2010 and 2009, we completed our annual goodwill impairment test and determined there was no impairment. The carrying amount of goodwill attributable to our Royal Caribbean International and...

  • Page 81
    ... future cash flows includes numerous uncertainties which require our significant judgment when making assumptions of expected revenues, operating costs, marketing, selling and administrative expenses, interest rates, ship additions and retirements as well as assumptions regarding the cruise vacation...

  • Page 82
    ... of one year from the sale date to fulfill existing passenger commitments. The sale resulted in an immaterial gain that was recognized over the charter period. In February 2011, we sold Celebrity Mercury to TUI Cruises for â,¬234.3 million. We executed certain forward exchange contracts to lock...

  • Page 83
    ... ship, scheduled for delivery in the second quarter of 2014. TUI Cruises has entered into a credit agreement for financing of up to 80% of the contract price of the ship. The remaining portion of the contract price of the ship will be funded through either TUI Cruises' cash flows from operations...

  • Page 84
    ... the first and second of a new generation of Royal Caribbean International cruise ships, known as "Project Sunshine," which are scheduled for delivery in the third quarter of 2014 and in the second quarter of 2015, respectively. Refer to Note 15. Subsequent Events for information on our recent order

  • Page 85
    ... made from the ship-owning subsidiary level to Royal Caribbean Cruises Ltd. for the facilities relating to Celebrity Equinox, Celebrity Eclipse and Celebrity Silhouette and for the credit agreement relating to Celebrity Reflection, expected to be delivered in the fourth quarter of 2012. Other than...

  • Page 86
    ... the aggregate. Offerings to employees are made on a quarterly basis. Subject to certain limitations, the purchase price for each share of common stock is equal to 90% of the average of the market prices of the common stock as reported on the New York Stock Exchange on the first business day of the...

  • Page 87
    ..., related to restricted stock unit grants, which will be recognized over the weighted-average period of 1.0 years. NOTE 12. INCOME TAXES We and the majority of our subsidiaries are currently exempt from United States corporate tax on United States source income from the international operation of...

  • Page 88
    ... NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Additionally, some of our ship-operating subsidiaries are subject to income tax under the tonnage tax regimes of Malta or the United Kingdom. Under these regimes, income from qualifying activities is not subject to corporate income tax. Instead, these...

  • Page 89
    ... in an active market. 3. Inputs that are unobservable for the asset or liability. The Company did not use any Level 3 inputs as of December 31, 2011 and December 31, 2010. 4. Consists of foreign currency forward contracts, interest rate, cross currency, fuel swaps and fuel call options. Please...

  • Page 90
    ... market risk attributable to changes in interest rates, foreign currency exchange rates and fuel prices. We manage these risks through a combination of our normal operating and financing activities and through the use of derivative financial instruments pursuant to our hedging practices and policies...

  • Page 91
    ... majority of our foreign exchange contracts and our cross currency swap agreements are accounted for as cash flow or fair value hedges depending on the designation of the related hedge. During 2011, we implemented a strategy for benefiting from anticipated weakness in the euro exchange rate. As part...

  • Page 92
    ...to market risk for changes in fuel prices relates primarily to the consumption of fuel on our ships. We use fuel swap agreements and fuel call options to mitigate the financial impact of fluctuations in fuel prices. Our fuel swap agreements are accounted for as cash flow hedges. At December 31, 2011...

  • Page 93
    ...The fair value and line item caption of non-derivative instruments recorded was as follows: Carrying Value Non-derivative instrument designated as hedging instrument under ASC 815-20 (in thousands) Foreign currency debt Balance Sheet Location Long-term debt As of December 31, 2011 $863,217 $863,217...

  • Page 94
    ... under ASC 815-20 Cash Flow Hedging Relationships (in thousands) Cross currency swaps Interest rate swaps Foreign currency forward contracts Foreign currency forward contracts Fuel swaps $ (6,013) (10,131) $ 13,016 Year Ended December 31, 2011 Year Ended December 31, 2010 Location of Gain (Loss...

  • Page 95
    ... filed on behalf of a purported class of purchasers of our common stock during the period from October 26, 2010 through July 27, 2011 and names the Company, our Chairman and CEO, our CFO and the Presidents and CEOs of our Royal Caribbean International and Celebrity Cruises brands as defendants. The...

  • Page 96
    ...CONSOLIDATED FINANCIAL STATEMENTS A class action complaint was filed in June 2011 against Royal Caribbean Cruises Ltd. in the United States District Court for the Southern District of Florida on behalf of a purported class of stateroom attendants employed onboard Royal Caribbean International cruise...

  • Page 97
    ... of operations. In addition, we are obligated under other noncancelable operating leases primarily for offices, warehouses and motor vehicles. As of December 31, 2011, future minimum lease payments under noncancelable operating leases were as follows (in thousands): Year 2012 2013 2014 2015 2016...

  • Page 98
    .... The following tables present the effects of the revision on the Company's Consolidated Statements of Operations for the periods noted above. (See Note 1. General-Revision of Prior Period Financial Statements for further details.) Quarter Ended March 31, 2011 As Previously Reported $(87,483) (57...

  • Page 99
    ... Onboard Onboard Onboard Credit Credit Credit Credit Onboard credit is valid for any cruise vacation on Royal Caribbean International, Celebrity Cruises, or Azamara Club Cruises (excludes any charter sailings or sailings on the Celebrity Xpeditionâ„¢ Galapagos). Additional terms and conditions...

  • Page 100
    ... the Investor Relations Department at our corporate headquarters. PricewaterhouseCoopers LLP 1441 Brickell Avenue Suite 1100 Miami, Florida 33131-2330 Transfer Agent & Registrar American Stock Transfer & Trust Company, LLC 6201 15th Avenue Brooklyn, New York 11219 www.amstock.com 2011 Board of...

  • Page 101
    Royal Caribbean Cruises Ltd. 1050 Caribbean Way, Miami, Florida 33132-2096 USA