Royal Caribbean Cruise Lines 2012 Annual Report Download - page 51

47
PART II
names and certain long-lived assets, consisting of
three aircraft owned and operated by Pullmantur Air,
to their fair value. In addition, we recognized a $33.7
million charge to record a 100% valuation allowance
related to our deferred tax assets for Pullmantur
and we reduced the deferred tax liability related to
Pullmantur’s trademarks and trade names by $5.2
million. As a result, our net income for 2012 was
$18.3 million as compared to $607.4 million for 2011.
• We took delivery of Celebrity Reflection. To finance
the purchase, we borrowed $673.5 million under our
previously committed 12-year unsecured term loan
which is 95% guaranteed by Hermes. See Note 7.
Long-Term Debt to our consolidated financial state-
ments under Item 8. Financial Statements and
Supplementary Data for further information.
• We exercised our option under our agreement with
Meyer Werft to construct Anthem of the Seas, the
second Quantum-class ship for Royal Caribbean
International with approximately 4,100 berths which
is expected to enter service in the second quarter
of 2015. We have a committed bank financing agree-
ment to finance the purchase of the ship which
includes a sovereign financing guarantee. See Note
14. Commitments and Contingencies to our consoli-
dated financial statements under Item 8. Financial
Statements and Supplementary Data for further
information.
• We reached a conditional agreement with STX
France to build the third Oasis-class ship for Royal
Caribbean International. The agreement is subject
to certain closing conditions and is expected to
become effective in the first quarter of 2013. The
ship will have a capacity of approximately 5,400
berths and is expected to enter service in the sec-
ond quarter of 2016. If the agreement becomes
effective, Pullmantur’s Atlantic Star, which has been
out of operation since 2009, will be transferred to
an affiliate of STX France as part of the consider-
ation. The transfer is not expected to result in a gain
or a loss. See Note 5. Property and Equipment to
our consolidated financial statements under Item 8.
Financial Statements and Supplementary Data for
further information.
Other Items:
• TUI Cruises, our 50% joint venture, entered into
an agreement with STX Finland to build its second
newbuild ship, scheduled for delivery in the second
quarter of 2015. TUI Cruises has entered into a credit
agreement providing financing for up to 80% of the
contract price of the ship.
We reported historical total revenues, operating income,
net income, non-GAAP net income (excluding the
impairment related charges), earnings per share and
non-GAAP earnings per share (excluding the impair-
ment related charges) as shown in the following table
(in thousands, except per share data):
Year Ended
December 31, 2012 2011 2010
Total revenues      
Operating income      
Net income      
Pullmantur impair-
ment related
charges  — —
Non-GAAP
Net income      
Basic earnings
per share:
Net income      
Non-GAAP
Net income      
Diluted earnings
per share:
Net income      
Non-GAAP
Net income      
The following table presents historical operating
data as a percentage of total revenues for the last
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 admin-
istrative expenses   
Depreciation and amortization
expenses   
Impairment of Pullmantur
related assets  — —
Operating income   
Other expense () () ()
Net income   