Royal Caribbean Cruise Lines 2008 Annual Report Download - page 61

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Royal Caribbean Cruises Ltd. F-6
Accumulated
Other Total
Common Paid-in Retained Comprehensive Treasury Shareholders’
(in thousands) Stock Capital Earnings Income (Loss) Stock Equity
Balances at January 1, 2006 $2,165 $2,706,236 $3,132,286 $ (28,263) $(257,959) $5,554,465
Issuance under employee related plans 12 42,031 – – (559) 41,484
Purchases of treasury stock – – – – (164,582) (164,582)
Common stock dividends – – (126,997) – – (126,997)
Changes related to cash flow derivative hedges – – – 3,507 – 3,507
Adoption of SFAS Statement No. 158 – – – (6,981) – (6,981)
Minimum pension liability adjustment – – – 834 – 834
Foreign currency translation adjustments – – – 101 – 101
Debt converted to common stock 48 155,774 – – – 155,822
Net income – – 633,922 – – 633,922
Balances at December 31, 2006 2,225 2,904,041 3,639,211 (30,802) (423,100) 6,091,575
Issuance under employee related plans 10 38,894 – – (559) 38,345
Common stock dividends – – (127,739) – – (127,739)
Changes related to cash flow derivative hedges – – – 152,523 – 152,523
Change in defined benefit plans – – – 3,500 – 3,500
Foreign currency translation adjustments – – – (4,266) – (4,266)
Net income – – 603,405 – – 603,405
Balances at December 31, 2007 2,235 2,942,935 4,114,877 120,955 (423,659) 6,757,343
Issuance under employee related plans 4 9,605 – – (701) 8,908
Common stock dividends – – (96,070) – – (96,070)
Changes related to cash flow derivative hedges – – – (430,051) – (430,051)
Change in defined benefit plans – – – (2,835) – (2,835)
Foreign currency translation adjustments – – – (8,005) – (8,005)
Net income – – 573,722 – – 573,722
Balances at December 31, 2008 $2,239 $2,952,540 $4,592,529 $(319,936) $(424,360) $6,803,012
Comprehensive income is as follows (in thousands):
Year Ended December 31, 2008 2007 2006
Net income
$ 573,722 $ 603,405 $ 633,922
Changes related to cash flow derivative hedges (430,051) 152,523 3,507
Minimum pension liability adjustment – – 834
Change in defined benefit plans (2,835) 3,500 –
Foreign currency translation adjustments (8,005) (4,266) 101
Total comprehensive income $ 132,831 $ 755,162 $ 638,364
The following tables summarize activity in accumulated other comprehensive income (loss) related to derivatives designated as cash flow hedges,
change in defined benefit plans and the foreign currency translation adjustments (in thousands):
Year Ended December 31, 2008 2007 2006
Accumulated net (loss) gain on cash flow derivative hedges at beginning of year $ 137,859 $ (14,664) $ (18,171)
Net gain (loss) on cash flow derivative hedges (374,810) 163,444 (7,483)
Net (loss) gain reclassified into earnings (55,241) (10,921) 10,990
Accumulated net gain (loss) on cash flow derivative hedges at end of year $(292,192) $ 137,859 $ (14,664)
Changes Foreign Accumulated
Related to Cash Change in Currency Other
Flow Derivative Defined Translation Comprehensive
Hedges Benefit Plans Adjustments Income (Loss)
Accumulated other comprehensive loss at beginning of the year $ 137,859 $ (12,739) $ (4,165) $ 120,955
Current-period change (430,051) (2,835) (8,005) (440,891)
Accumulated other comprehensive loss at end of year $ (292,192) $ (15,574) $ (12,170) $ (319,936)
The accompanying notes are an integral part of these consolidated financial statements.
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY