ROYAL CARIBBEAN CRUISES LTD. CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (in thousands, except per share data) Year Ended December 31, 2020 2019 1,504,569 $ 7,857,057 $ 704,236 3,093,604 2,208,805 10,950,661 2018 6,792,716 2,701,133 9,493,849 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 Depreciation and amortization expenses Impairment and credit losses Operating (Loss) Income Other income (expense): Interest income Interest expense, net of interest capitalized Equity investment (loss) income Other (expense) income 344,625 157,213 788,273 161,750 371,015 942,232 2,765,108 1,199,620 1,279,254 1,566,380 (4,601,557) 1,656,297 639,782 1,079,121 583,905 697,962 1,405,698 6,062,765 1,559,253 1,245,942 1,433,739 537,355 924,985 520,909 710,617 1,134,602 5,262,207 1,303,144 1,033,697 2,082,701 1,894,801 21,036 (844,238) (213,286) (137,085) (1,173,573) (5,775,130) 22,332 (5,797,462) $ 26,945 (408,513) 230,980 (24,513) (175,101) 1,907,600 28,713 1,878,887 $ 32,800 (333,672) 210,756 11,107 (79,009) 1,815,792 4,750 1,811,042 (27.05) $ (27.05) $ 8.97 $ 8.95 $ 8.60 8.56 S (5,775,130) $ 1,907,600 $ 1,815,792 Net (Loss) Income Less: Net Income attributable to noncontrolling interest Net (Loss) Income attributable to Royal Caribbean Cruises Ltd. (Loss) Earnings per Share: Basic Diluted Comprehensive (Loss) Income Net (Loss) Income Other comprehensive (loss) income: Foreign currency translation adjustments Change in defined benefit plans Gain (loss) on cash flow derivative hedges Total other comprehensive income (loss) Comprehensive (Loss) Income Less: Comprehensive Income attributable to noncontrolling interest Comprehensive (Loss) Income attributable to Royal Caribbean Cruises Ltd. 40,346 (19,984) 38,010 58,372 (5,716,758) $ 22,332 (5,739,090) $ 869 (19,535) (151,313) (169,979) 1,737,621 $ 28,713 1,708,908 $ (14,251) 7,643 (286,861) (293,469) 1,522,323 4,750 1,517,573 S ROYAL CARIBBEAN CRUISES LTD. CONSOLIDATED BALANCE SHEETS As of December 31, 2020 2019 (in thousands, except share data) S 243,738 3,684,474 $ 284,149 118,703 154,339 70,082 4,311,747 25,246,595 599,985 809,480 1,497,380 32,465,187 $ 305,821 162,107 429,211 21,751 1,162,628 25,466,808 687,555 1,385,644 1,617,649 30,320,284 $ S Assets Current assets Cash and cash equivalents Trade and other receivables, net of allowances of $3,867 and $5,635 at December 31, 2020 and December 31, 2019, respectively Inventories Prepaid expenses and other assets Derivative financial instruments Total current assets Property and equipment, net Operating lease right-of-use assets Goodwill Other assets, net of allowances of $81,580 and $0 at December 31, 2020 and December 31, 2019, respectively Total assets Liabilities, redeemable noncontrolling interest and shareholders' equity Current liabilities Current portion of long-term debt Commercial paper Current portion of operating lease liabilities Accounts payable Accrued interest Accrued expenses and other liabilities Derivative financial instruments Customer deposits Total current liabilities Long-term debt Long-term operating lease liabilities Other long-term liabilities Total liabilities Commitments and contingencies (Note 19) Redeemable noncontrolling interest Shareholders' equity Preferred stock ($0.01 par value; 20,000,000 shares authorized; none outstanding) Common stock ($0.01 par value; 500,000,000 shares authorized; 265,198,371 and 236,547,842 shares issued, December 31, 2020 and December 31, 2019, respectively) Paid-in capital Retained earnings Accumulated other comprehensive loss Treasury stock (27,799,775 and 27,746,848 common shares at cost, December 31, 2020 and December 31, 2019, respectively) Total shareholders' equity Total liabilities, redeemable noncontrolling interest and shareholders' equity 961,768 $ 409,319 102,677 353,422 252,668 615,750 56,685 1,784,832 4,537,121 17,957,956 563,876 645,565 23,704,518 1,186,586 1,434,180 96,976 563,706 70,090 1,078,345 94,875 3,428,138 7,952,896 8,414, 110 601,641 617,810 17,586,457 569,981 2,652 5,998,574 5,562,775 (739,341) 2,365 3,493,959 11,523,326 (797,713) (2,063,991) 8,760,669 32,465,187 $ (2,058,091) 12,163,846 30,320,284 $ Year Ended December 31, 2020 2019 2018 (in thousands) $ (5,775,130) $ 1,907,600 $ 1,815,792 1,245,942 1,279,254 1,566,380 (8,791) 49,316 39,779 213,286 89,442 66,776 41,109 (45,126) 69,044 7,745 (1,431) 75,930 (230,980) 31,991 31,616 6,326 18,400 1,033,697 33,651 (2,679) 61,148 46,061 (210,756) 41,978 11,004 (13,680) (21,794) Operating Activities Net (Loss) Income Adjustments: Depreciation and amortization Impairment and credit losses Net deferred income tax (benefit) expense Loss (gain) on derivative instruments not designated as hedges Share-based compensation expense Equity investment loss (income) Amortization of debt issuance costs Amortization of debt discounts and premiums Loss on extinguishment of secured senior term loan Change in fair value of contingent consideration Recognition of deferred currency translation adjustment loss on sale of assets Gain on sale of unconsolidated affiliate Recognition of deferred gain Changes in operating assets and liabilities: Decrease (increase) in trade and other receivables, net Decrease increase) in inventories Decrease increase) in prepaid expenses and other assets (Decrease) increase in accounts payable Increase (decrease) in accrued interest (Decrease) increase in accrued expenses and other liabilities (Decrease) increase in customer deposits Dividends received from unconsolidated affiliates Other, net Net cash (used in) provided by operating activities Investing Activities Purchases of property and equipment Cash received on settlement of derivative financial instruments Cash paid on settlement of derivative financial instruments Investments in and loans to unconsolidated affiliates Cash received on loans to unconsolidated affiliates Proceeds from the sale of property and equipment Proceeds from the sale of unconsolidated affiliate Acquisition of Silversea Cruises, net of cash acquired Other, net Net cash used in investing activities 121,055 27,077 295,876 (133,815) 182,578 (180,479) (1,643,560) 2,215 12,061 (3,731,653) (9,898) (8,533) 15,669 75,281 (4,460) 96,490 280,139 150,177 28,362 3,716,366 (9,573) (23,849) (71,770) 91,737 18,773 42,937 385,990 243,101 7,371 3,479,139 (1,965,131) 15,874 (161,335) (100,609) 21,086 27,796 (3,024,663) 7,621 (68,836) (25,569) 32,870 (3,660,028) 76,529 (98,074) (27,172) 124,238 13,215 (916,135) (1,731) (4,489,158) (16,247) (2,178,566) (12,829) (3,091,406) Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. We capitalize interest as part of the cost of acquiring certain assets. Improvement costs that we believe add value to our ships are capitalized as additions to the ship, the useful lives of the improvements are estimated and depreciated over the shorter of the improvements' estimated useful lives or that of the associated ship, and the replaced assets are disposed of on a net cost basis. The estimated cost and accumulated depreciation of replaced or refurbished ship components are written off and any resulting losses are recognized in F-13 Table of Contents ROYAL CARIBBEAN CRUISES LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) Cruise operating expenses. Liquidated damages received from shipyards as a result of the late delivery of a new ship are recorded as reductions to the cost basis of the ship Depreciation of property and equipment is computed using the straight-line method over the estimated useful life of the asset. The useful lives of our ships are generally 30-35 years, net of a 10%-15% projected residual value. The 30-35-year useful life and 10%-15% residual value are based on the weighted average of all major components of a ship. Our useful life and residual value estimates take into consideration the impact of anticipated technological changes, long-term cruise and vacation market conditions and historical useful lives of similarly-built ships. In addition, we take into consideration our estimates of the weighted average useful lives of the ships' major component systems, such as hull, superstructure, main electric, engines and cabins. We employ a cost allocation methodology at the component level, in order to support the estimated weighted-average useful lives and residual values, as well as to determine the net cost basis of assets being replaced. Given the very large and complex nature of our ships, our accounting estimates related to ships and determinations of ship improvement costs to be capitalized require considerable judgment and are inherently uncertain. Depreciation for assets under capital leases is computed using the shorter of the lease term or related asset life. Depreciation of property and equipment is computed utilizing the following useful lives: Years Ships generally, 30-35 Ship improvements 3-25 Buildings and improvements 10-40 Computer hardware and software 3-10 Transportation equipment and other 3-30 Leasehold improvements Shorter of remaining lease term or useful life 3-30 ROYAL CARIBBEAN CRUISES LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) As of December 31, 2019 Remaining Weighted Average Amortization Period (Years) Gross Carrying Value Accumulated Amortization Net Carrying Value Finite-life intangible assets: Customer relationships Galapagos operating license Other finite-life intangible assets Total finite-life intangible assets Indefinite-life intangible assets (1) Total intangible assets, net 13.8 24.7 0.8 97,400 $ 47,669 11,560 156,629 352,275 508,904 7,576 $ 6,010 6,743 20,329 89,824 41,659 4,817 136,300 352,275 488,575 20,329 S Primarily relates to the Silversea Cruises trade name. The estimated future amortization for finite-life intangible assets for each of the next five years is as follows (in thousands): Year 2021 2022 2023 2024 2025 S S S S S 8,179 8,179 8,179 8,179 8,179 S Note 7. Property and Equipment Property and equipment consists of the following (in thousands): As of December 31, 2020 2019 Ships 29,872,655 $ 28,348,088 Ship improvements 2,108,922 3,920,800 Ships under construction 1,078,243 1,110,962 Land, buildings and improvements, including leasehold improvements and port facilities 524,849 472,067 Computer hardware and software, transportation equipment and other 1,678,903 1,698,007 Total property and equipment 35,263,572 35,549,924 Less-accumulated depreciation and amortization) (10,016,977) (10,083,116) 25,246,595 25,466,808 (1) Amount includes accumulated depreciation and amortization for assets in service. Ships under construction include progress payments for the construction of new ships as well as planning, design, capitalized interest and other associated costs. We capitalized interest costs of $59.1 million, $56.5 million and $49.6 million for the years ended December 31, 2020, 2019 and 2018, respectively. During 2020, we took delivery of Celebrity Apex, Silver Origin and Silver Moon. Refer to Note 9. Debt for further information on the financings for Celebrity Apex and Silver Moon. The October 2020 Silversea Cruises delivery and related financing for the Silver Moon was reported in our consolidated financial statements as of and for the year ended December 31, 2020, regardless of the three month reporting lag for Silversea Cruises, due to the The historical cost of Royal Caribbeans' property and equipment at December 31.2020 was $25,246,595 (in thousands). True False The book value of Royal Caribbeans' property and equipment at December 31.2020 was $25,246,595 (in thousands). O True False Property and equipment is Royal Caribbean's largest asset. True False at 12/31/2020. Total depreciation and amortization expense recognized by Royal Caribbean's on property and equipment since the assets were acquired was O a. $220,213 (in thousands) O b. $1,279,254 (in thousands) O c. $10,016,977 (in thousands) O d. $66,139 (in thousands) Royal Caribbean recognized depreciation and amortization expense in 2020 than in 2019 and 2018. a. the same amount b. more c. less O d. cannot be determined Sales to Property and Equipment = Total Revenues / Property and Equipment, net. Round to two decimal places, for example, 10.5876329 = 10.59. Now answer the question below. Did Royal Caribbean more effectively use property and equipment to generate revenue in the year ended 12/31/2020 than in the year ended 12/31/2019? O a. Yes. O b. No. over the last three reporting periods. The amount of cash that Royal Caribbean paid for property and equipment a, increased O b. decreased c. stayed the same d. cannot be determined Royal Caribbean uses depreciation method. O a. units of activity O b.double-declining balance c. accelerated O d. straight-line In the first year of a Royal Caribbean ship's useful life: O a. book value would be higher on the company's balance sheet with the depreciation method used by Royal Caribbean compared to the double-declining balance depreciation method. b.book value would be lower on the company's balance sheet with the depreciation method used by Royal Caribbean compared to the double-declining balance depreciation method O c. net income would be lower on the company's income statement with the depreciation method used by Royal Caribbean compared to the double-declining balance depreciation method. O d. net income would be the same amount on the company's income statement with the depreciation method used by Royal Caribbean compared to the double-declining balance depreciation method. Royal Caribbean depreciates computer hardware and software over longer useful lives than its ships. a, True b. False O c. Cannot be determined. ROYAL CARIBBEAN CRUISES LTD. CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (in thousands, except per share data) Year Ended December 31, 2020 2019 1,504,569 $ 7,857,057 $ 704,236 3,093,604 2,208,805 10,950,661 2018 6,792,716 2,701,133 9,493,849 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 Depreciation and amortization expenses Impairment and credit losses Operating (Loss) Income Other income (expense): Interest income Interest expense, net of interest capitalized Equity investment (loss) income Other (expense) income 344,625 157,213 788,273 161,750 371,015 942,232 2,765,108 1,199,620 1,279,254 1,566,380 (4,601,557) 1,656,297 639,782 1,079,121 583,905 697,962 1,405,698 6,062,765 1,559,253 1,245,942 1,433,739 537,355 924,985 520,909 710,617 1,134,602 5,262,207 1,303,144 1,033,697 2,082,701 1,894,801 21,036 (844,238) (213,286) (137,085) (1,173,573) (5,775,130) 22,332 (5,797,462) $ 26,945 (408,513) 230,980 (24,513) (175,101) 1,907,600 28,713 1,878,887 $ 32,800 (333,672) 210,756 11,107 (79,009) 1,815,792 4,750 1,811,042 (27.05) $ (27.05) $ 8.97 $ 8.95 $ 8.60 8.56 S (5,775,130) $ 1,907,600 $ 1,815,792 Net (Loss) Income Less: Net Income attributable to noncontrolling interest Net (Loss) Income attributable to Royal Caribbean Cruises Ltd. (Loss) Earnings per Share: Basic Diluted Comprehensive (Loss) Income Net (Loss) Income Other comprehensive (loss) income: Foreign currency translation adjustments Change in defined benefit plans Gain (loss) on cash flow derivative hedges Total other comprehensive income (loss) Comprehensive (Loss) Income Less: Comprehensive Income attributable to noncontrolling interest Comprehensive (Loss) Income attributable to Royal Caribbean Cruises Ltd. 40,346 (19,984) 38,010 58,372 (5,716,758) $ 22,332 (5,739,090) $ 869 (19,535) (151,313) (169,979) 1,737,621 $ 28,713 1,708,908 $ (14,251) 7,643 (286,861) (293,469) 1,522,323 4,750 1,517,573 S ROYAL CARIBBEAN CRUISES LTD. CONSOLIDATED BALANCE SHEETS As of December 31, 2020 2019 (in thousands, except share data) S 243,738 3,684,474 $ 284,149 118,703 154,339 70,082 4,311,747 25,246,595 599,985 809,480 1,497,380 32,465,187 $ 305,821 162,107 429,211 21,751 1,162,628 25,466,808 687,555 1,385,644 1,617,649 30,320,284 $ S Assets Current assets Cash and cash equivalents Trade and other receivables, net of allowances of $3,867 and $5,635 at December 31, 2020 and December 31, 2019, respectively Inventories Prepaid expenses and other assets Derivative financial instruments Total current assets Property and equipment, net Operating lease right-of-use assets Goodwill Other assets, net of allowances of $81,580 and $0 at December 31, 2020 and December 31, 2019, respectively Total assets Liabilities, redeemable noncontrolling interest and shareholders' equity Current liabilities Current portion of long-term debt Commercial paper Current portion of operating lease liabilities Accounts payable Accrued interest Accrued expenses and other liabilities Derivative financial instruments Customer deposits Total current liabilities Long-term debt Long-term operating lease liabilities Other long-term liabilities Total liabilities Commitments and contingencies (Note 19) Redeemable noncontrolling interest Shareholders' equity Preferred stock ($0.01 par value; 20,000,000 shares authorized; none outstanding) Common stock ($0.01 par value; 500,000,000 shares authorized; 265,198,371 and 236,547,842 shares issued, December 31, 2020 and December 31, 2019, respectively) Paid-in capital Retained earnings Accumulated other comprehensive loss Treasury stock (27,799,775 and 27,746,848 common shares at cost, December 31, 2020 and December 31, 2019, respectively) Total shareholders' equity Total liabilities, redeemable noncontrolling interest and shareholders' equity 961,768 $ 409,319 102,677 353,422 252,668 615,750 56,685 1,784,832 4,537,121 17,957,956 563,876 645,565 23,704,518 1,186,586 1,434,180 96,976 563,706 70,090 1,078,345 94,875 3,428,138 7,952,896 8,414, 110 601,641 617,810 17,586,457 569,981 2,652 5,998,574 5,562,775 (739,341) 2,365 3,493,959 11,523,326 (797,713) (2,063,991) 8,760,669 32,465,187 $ (2,058,091) 12,163,846 30,320,284 $ Year Ended December 31, 2020 2019 2018 (in thousands) $ (5,775,130) $ 1,907,600 $ 1,815,792 1,245,942 1,279,254 1,566,380 (8,791) 49,316 39,779 213,286 89,442 66,776 41,109 (45,126) 69,044 7,745 (1,431) 75,930 (230,980) 31,991 31,616 6,326 18,400 1,033,697 33,651 (2,679) 61,148 46,061 (210,756) 41,978 11,004 (13,680) (21,794) Operating Activities Net (Loss) Income Adjustments: Depreciation and amortization Impairment and credit losses Net deferred income tax (benefit) expense Loss (gain) on derivative instruments not designated as hedges Share-based compensation expense Equity investment loss (income) Amortization of debt issuance costs Amortization of debt discounts and premiums Loss on extinguishment of secured senior term loan Change in fair value of contingent consideration Recognition of deferred currency translation adjustment loss on sale of assets Gain on sale of unconsolidated affiliate Recognition of deferred gain Changes in operating assets and liabilities: Decrease (increase) in trade and other receivables, net Decrease increase) in inventories Decrease increase) in prepaid expenses and other assets (Decrease) increase in accounts payable Increase (decrease) in accrued interest (Decrease) increase in accrued expenses and other liabilities (Decrease) increase in customer deposits Dividends received from unconsolidated affiliates Other, net Net cash (used in) provided by operating activities Investing Activities Purchases of property and equipment Cash received on settlement of derivative financial instruments Cash paid on settlement of derivative financial instruments Investments in and loans to unconsolidated affiliates Cash received on loans to unconsolidated affiliates Proceeds from the sale of property and equipment Proceeds from the sale of unconsolidated affiliate Acquisition of Silversea Cruises, net of cash acquired Other, net Net cash used in investing activities 121,055 27,077 295,876 (133,815) 182,578 (180,479) (1,643,560) 2,215 12,061 (3,731,653) (9,898) (8,533) 15,669 75,281 (4,460) 96,490 280,139 150,177 28,362 3,716,366 (9,573) (23,849) (71,770) 91,737 18,773 42,937 385,990 243,101 7,371 3,479,139 (1,965,131) 15,874 (161,335) (100,609) 21,086 27,796 (3,024,663) 7,621 (68,836) (25,569) 32,870 (3,660,028) 76,529 (98,074) (27,172) 124,238 13,215 (916,135) (1,731) (4,489,158) (16,247) (2,178,566) (12,829) (3,091,406) Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. We capitalize interest as part of the cost of acquiring certain assets. Improvement costs that we believe add value to our ships are capitalized as additions to the ship, the useful lives of the improvements are estimated and depreciated over the shorter of the improvements' estimated useful lives or that of the associated ship, and the replaced assets are disposed of on a net cost basis. The estimated cost and accumulated depreciation of replaced or refurbished ship components are written off and any resulting losses are recognized in F-13 Table of Contents ROYAL CARIBBEAN CRUISES LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) Cruise operating expenses. Liquidated damages received from shipyards as a result of the late delivery of a new ship are recorded as reductions to the cost basis of the ship Depreciation of property and equipment is computed using the straight-line method over the estimated useful life of the asset. The useful lives of our ships are generally 30-35 years, net of a 10%-15% projected residual value. The 30-35-year useful life and 10%-15% residual value are based on the weighted average of all major components of a ship. Our useful life and residual value estimates take into consideration the impact of anticipated technological changes, long-term cruise and vacation market conditions and historical useful lives of similarly-built ships. In addition, we take into consideration our estimates of the weighted average useful lives of the ships' major component systems, such as hull, superstructure, main electric, engines and cabins. We employ a cost allocation methodology at the component level, in order to support the estimated weighted-average useful lives and residual values, as well as to determine the net cost basis of assets being replaced. Given the very large and complex nature of our ships, our accounting estimates related to ships and determinations of ship improvement costs to be capitalized require considerable judgment and are inherently uncertain. Depreciation for assets under capital leases is computed using the shorter of the lease term or related asset life. Depreciation of property and equipment is computed utilizing the following useful lives: Years Ships generally, 30-35 Ship improvements 3-25 Buildings and improvements 10-40 Computer hardware and software 3-10 Transportation equipment and other 3-30 Leasehold improvements Shorter of remaining lease term or useful life 3-30 ROYAL CARIBBEAN CRUISES LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) As of December 31, 2019 Remaining Weighted Average Amortization Period (Years) Gross Carrying Value Accumulated Amortization Net Carrying Value Finite-life intangible assets: Customer relationships Galapagos operating license Other finite-life intangible assets Total finite-life intangible assets Indefinite-life intangible assets (1) Total intangible assets, net 13.8 24.7 0.8 97,400 $ 47,669 11,560 156,629 352,275 508,904 7,576 $ 6,010 6,743 20,329 89,824 41,659 4,817 136,300 352,275 488,575 20,329 S Primarily relates to the Silversea Cruises trade name. The estimated future amortization for finite-life intangible assets for each of the next five years is as follows (in thousands): Year 2021 2022 2023 2024 2025 S S S S S 8,179 8,179 8,179 8,179 8,179 S Note 7. Property and Equipment Property and equipment consists of the following (in thousands): As of December 31, 2020 2019 Ships 29,872,655 $ 28,348,088 Ship improvements 2,108,922 3,920,800 Ships under construction 1,078,243 1,110,962 Land, buildings and improvements, including leasehold improvements and port facilities 524,849 472,067 Computer hardware and software, transportation equipment and other 1,678,903 1,698,007 Total property and equipment 35,263,572 35,549,924 Less-accumulated depreciation and amortization) (10,016,977) (10,083,116) 25,246,595 25,466,808 (1) Amount includes accumulated depreciation and amortization for assets in service. Ships under construction include progress payments for the construction of new ships as well as planning, design, capitalized interest and other associated costs. We capitalized interest costs of $59.1 million, $56.5 million and $49.6 million for the years ended December 31, 2020, 2019 and 2018, respectively. During 2020, we took delivery of Celebrity Apex, Silver Origin and Silver Moon. Refer to Note 9. Debt for further information on the financings for Celebrity Apex and Silver Moon. The October 2020 Silversea Cruises delivery and related financing for the Silver Moon was reported in our consolidated financial statements as of and for the year ended December 31, 2020, regardless of the three month reporting lag for Silversea Cruises, due to the The historical cost of Royal Caribbeans' property and equipment at December 31.2020 was $25,246,595 (in thousands). True False The book value of Royal Caribbeans' property and equipment at December 31.2020 was $25,246,595 (in thousands). O True False Property and equipment is Royal Caribbean's largest asset. True False at 12/31/2020. Total depreciation and amortization expense recognized by Royal Caribbean's on property and equipment since the assets were acquired was O a. $220,213 (in thousands) O b. $1,279,254 (in thousands) O c. $10,016,977 (in thousands) O d. $66,139 (in thousands) Royal Caribbean recognized depreciation and amortization expense in 2020 than in 2019 and 2018. a. the same amount b. more c. less O d. cannot be determined Sales to Property and Equipment = Total Revenues / Property and Equipment, net. Round to two decimal places, for example, 10.5876329 = 10.59. Now answer the question below. Did Royal Caribbean more effectively use property and equipment to generate revenue in the year ended 12/31/2020 than in the year ended 12/31/2019? O a. Yes. O b. No. over the last three reporting periods. The amount of cash that Royal Caribbean paid for property and equipment a, increased O b. decreased c. stayed the same d. cannot be determined Royal Caribbean uses depreciation method. O a. units of activity O b.double-declining balance c. accelerated O d. straight-line In the first year of a Royal Caribbean ship's useful life: O a. book value would be higher on the company's balance sheet with the depreciation method used by Royal Caribbean compared to the double-declining balance depreciation method. b.book value would be lower on the company's balance sheet with the depreciation method used by Royal Caribbean compared to the double-declining balance depreciation method O c. net income would be lower on the company's income statement with the depreciation method used by Royal Caribbean compared to the double-declining balance depreciation method. O d. net income would be the same amount on the company's income statement with the depreciation method used by Royal Caribbean compared to the double-declining balance depreciation method. Royal Caribbean depreciates computer hardware and software over longer useful lives than its ships. a, True b. False O c. Cannot be determined