EX-12 13 exh12-1fccr.htm EX-12.1 RATIO OF EARNINGS TO FIXED CHARGES

 

Exhibit 12.1

 

Royal Caribbean Cruises Ltd.

Ratio of Earnings to Fixed Charges

(in thousands, except ratios)

 

 

 

Years Ended December 31,

 

2007

 

2006

 

2005

 

2004

 

2003

 

 

 

 

 

 

 

 

 

 

Earnings

 

 

 

 

 

 

 

 

 

Income before cumulative effect of a change in accounting principle

 

$603,405

 

 

$633,922

 

 

$663,465

 

 

$474,691

 

 

$280,664

Income tax expense

2,524

 

7,881

 

16,124

 

2,810

 

2,100

(Income) loss from equity investees

(7,837)

 

(4,417)

 

(6,661)

 

(1,912)

 

(1,694)

Fixed charges

394,503

 

327,263

 

310,442

 

343,272

 

307,369

Capitalized interest

(39,939)

 

(27,844)

 

(17,688)

 

(7,228)

 

(15,932)

 

 

 

 

 

 

 

 

 

 

Earnings

$952,656

 

$936,805

 

$965,682

 

$811,633

 

$572,507

 

 

 

 

 

 

 

 

 

 

Fixed Charges

 

 

 

 

 

 

 

 

 

Interest expense (1)

$373,723

 

$295,705

 

$287,438

 

$317,205

 

$284,328

Interest portion of rent expense (2)

20,780

 

31,558

 

23,004

 

26,067

 

23,041

 

 

 

 

 

 

 

 

 

 

Fixed charges

$394,503

 

$327,263

 

$310,442

 

$343,272

 

$307,369

 

 

 

 

 

 

 

 

 

 

Ratio of Earnings to Fixed Charges

2.4x

 

2.9x

 

3.1x

 

2.4x

 

1.9x

 

(1) Interest expense includes capitalized interest and amortization of deferred financing expenses.

 

 

(2) Interest portion of rent expense represents actual interest charges for the Brilliance of the Seas operating lease

and, for all other rentals, we have assumed that one-third of rent expense is representative of the interest factor.