Carnival Cruises 2009 Annual Report Download - page 48

At November 30, 2009 and 2008, we had working capital deficits of $3.4 billion and $4.1 billion,
respectively. Our November 30, 2009 deficit included $2.6 billion of customer deposits, which represent the
passenger revenues we collect in advance of sailing dates and, accordingly, are substantially more like deferred
revenue transactions rather than actual current cash liabilities. We use our long-term ship assets to realize a
portion of this deferred revenue in addition to consuming current assets. In addition, our November 30, 2009
working capital deficit included $950 million of current debt obligations, which included $264 million
outstanding under our principal revolver. This revolver is available to provide long-term rollover financing of our
current debt. After excluding customer deposits and current debt obligations from our November 30, 2009
working capital deficit balance, our non-GAAP adjusted working capital was $76 million. As explained above,
our business model allows us to operate with a significant working capital deficit and, accordingly, we believe
we will continue to have a working capital deficit for the foreseeable future.
During fiscal 2009, our net expenditures for capital projects were $3.4 billion, of which $2.8 billion was
spent on our ongoing new shipbuilding program, including $2.1 billion for the final delivery payments for
AIDAluna, Carnival Dream, Costa Luminosa, Costa Pacifica and Seabourn Odyssey. In addition to our new
shipbuilding program, we had capital expenditures of $418 million for ship improvements and replacements and
$194 million for cruise port facilities, information technology and other assets.
During fiscal 2009, we repaid $1.7 billion and borrowed $1.2 billion under our principal revolver in
connection with our needs for cash at various times throughout the year. In addition during fiscal 2009, we
borrowed $2.3 billion of new other long-term debt, equally split between our export credit financing facilities and
bank loans, and we repaid $1.3 billion of other long-term debt primarily for scheduled payments under our bank
loans and export credit facilities, and for repurchases of our 1.75% Notes. We also repaid a net $288 million
during fiscal 2009 under our short-term borrowing facilities. Finally, we paid cash dividends of $314 million in
fiscal 2009.
Future Commitments and Funding Sources
At November 30, 2009, our contractual cash obligations were as follows (in millions):
Payments Due by Fiscal Year
Contractual Cash Obligations Total 2010 2011 2012 2013 2014 Thereafter
Recorded Contractual Obligations
Short-term borrowings (a) .............. $ 135 $ 135
Revolver (a) ......................... 264 126 $ 138
Convertible notes (a) .................. 604 $ 595 $ 9
Other long-term debt (a) ................ 9,044 689 588 1,379 1,681 $ 894 $3,813
Other long-term liabilities reflected on the
balance sheet (b) .................... 649 59 123 111 90 59 207
Unrecorded Contractual Obligations
Shipbuilding (c) ...................... 7,446 3,416 2,228 1,802
Operating leases (c) ................... 301 49 43 37 33 24 115
Port facilities and other (c) .............. 962 146 112 87 77 50 490
Purchase obligations (d) ................ 927 747 95 33 15 10 27
Fixed rate interest payments (e) .......... 2,363 368 342 318 264 196 875
Floating rate interest payments (e) ........ 304 28 42 55 48 44 87
Total contractual cash obligations (f) ...... $22,999 $5,763 $4,168 $3,960 $2,217 $1,277 $5,614
(a) Our 2010 cash obligations include $126 million of debt outstanding under our long-term principal revolver,
and as such these obligations can be rolled-over on a long-term basis under this revolver, if we so
desire. Included in 2011 is $595 million of our convertible notes, since the noteholders have put options in
April 2011. If these notes are put to us, at our election we can settle these obligations through the issuance
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