Carnival Cruises 2009 Annual Report Download - page 20

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Corporation common stock, cash or a combination of cash and common stock with a total value equal to the
value of the consideration otherwise deliverable.
On October 29, 2009, as a result of substantially all of the holders of the Carnival Corporation 1.75%
Convertible Notes (“1.75% Notes”) exercising their put options, we repurchased $409 million of the then
outstanding 1.75% Notes at their accreted value plus accrued interest.
NOTE 6 – Commitments
Ship Commitments
At November 30, 2009, we had 13 ships under contract for construction with an aggregate passenger
capacity of 30,442. The estimated total cost of these ships is approximately $8.2 billion, which includes the
contract price with the shipyard, design and engineering fees, capitalized interest, construction oversight costs
and various owner supplied items. We have paid $770 million through November 30, 2009 and anticipate paying
the remaining estimated total costs as follows: $3.4 billion, $2.2 billion and $1.8 billion in fiscal 2010, 2011 and
2012, respectively.
Operating Leases, Port Facilities and Other Commitments
Rent expense under our operating leases, primarily for office and warehouse space, was $54 million, $52
million and $46 million in fiscal 2009, 2008 and 2007, respectively. At November 30, 2009, minimum amounts
payable for our operating leases, with initial or remaining terms in excess of one year, and for the annual usage of
port facilities and other contractual commitments with remaining terms in excess of one year, were as follows (in
millions):
Fiscal Year
Operating
Leases
Port
Facilities
and Other
2010 ..................................................................... $ 49 $146
2011 ..................................................................... 43 112
2012 ..................................................................... 37 87
2013 ..................................................................... 33 77
2014 ..................................................................... 24 50
Thereafter ................................................................ 115 490
Total ................................................................ $301 $962
NOTE 7 – Contingencies
Litigation
In the normal course of our business, various claims and lawsuits have been filed or are pending against
us. Most of these claims and lawsuits are covered by insurance and, accordingly, the maximum amount of our
liability, net of any insurance recoverables, is typically limited to our self-insurance retention levels. However,
the ultimate outcome of these claims and lawsuits which are not covered by insurance cannot be determined at
this time.
Contingent Obligations – Lease Out and Lease Back Type (“LILO”) Transactions
At November 30, 2009, Carnival Corporation had estimated contingent obligations totaling $585 million,
excluding termination payments as discussed below, to participants in LILO transactions for two of its ships. At
the inception of these leases, the aggregate of the net present value of these obligations was paid by Carnival
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