Royal Caribbean Cruise Lines 2014 Annual Report Download - page 49

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48 Royal Caribbean Cruises Ltd.
PART II
under Item 8. Financial Statements and Supplemen-
tary Data for further information.
• As of September 30, 2014, we changed our voyage
proration methodology and recognized passenger
ticket revenues, revenues from onboard and other
goods and services and all associated cruise operat-
ing costs for all of our uncompleted voyages, includ-
ing voyages of ten days or less, on a pro-rata basis.
The effect of this change was an increase to net
income of $53.2 million for the year ended December
31, 2014. Refer to Note 2. Summary of Significant
Accounting Policies to our consolidated financial
statements under Item 8. Financial Statements and
Supplementary Data for further information.
• During the fourth quarter of 2014, Spain adopted
tax reform legislation that, among other things,
amended the net operating loss carryforward rules.
As a result, we reversed a portion of the deferred tax
asset valuation allowance recorded in 2012 which
resulted in a deferred tax benefit of $33.5 million.
Refer to Note 12. Income Taxes to our consolidated
financial statements under Item 8. Financial State-
ments and Supplementary Data for further discus-
sion on the transaction.
Other Items
• On March 31, 2014, Pullmantur sold the majority
of its interest in its non-core businesses. Refer to
Note 16. Restructuring and Related Charges to our
consolidated financial statements under Item 8.
Financial Statements and Supplementary Data for
further discussion on the sales transaction.
• In December 2014, we terminated the leasing of
Brilliance of the Seas under the 25-year operating
lease originally entered into in July 2002, denomi-
nated in British pound sterling. As part of the agree-
ment, we purchased the Brilliance of the Seas for
a net settlement purchase price of approximately
£175.4 million or $275.4 million. Refer to Note 5.
Property and Equipment to our consolidated finan-
cial statements under Item 8. Financial Statements
and Supplementary Data for further discussion on
the transaction.
• During 2014, we entered into an agreement with
STX France S.A. to build the fourth Oasis-class ship
for Royal Caribbean International. Refer to Note 15.
Commitments and Contingencies to our consolidated
financial statements for further information.
• During the fourth quarter of 2014, we repurchased
from A. Wilhelmsen AS, our largest shareholder, 3.5
million shares of our common stock. Refer to Note 8.
Shareholders’ Equity to our consolidated financial
statements for further information.

We reported total revenues, operating income, net income, Adjusted Net Income, earnings per share and Adjusted
Earnings per Share as shown in the following table (in thousands, except per share data):
Year Ended December 31,   
Adjusted Net Income      
Net income   
Net Adjustments to Net Income (Decrease) Increase  ()    
Adjustments to Net Income:
Pullmantur impairment related charges()  —  —  
Restructuring and related impairment charges   —
Other initiative costs  — —
Estimated impact of divested businesses prior to sales transaction   
Loss on sale of ship included within other operating expenses  — —
Impact of voyage proration change() () — —
Reversal of a deferred tax valuation allowance () — —
Net Adjustments to Net Income (Decrease) Increase  ()    
Basic:
Adjusted Earnings per Share      
Earnings per Share      
Diluted:
Adjusted Earnings per Share      
Earnings per Share      
Weighted-Average Shares Outstanding:
Basic   
Diluted   
() Includes $28.5 million in net deferred tax expense related to the Pullmantur impairment.
() Represents the net income amount that would have been recognized in 2013 had we recognized revenues and cruise operating expenses on a pro-
rata basis for all voyages.