Carnival Cruises 2010 Annual Report Download - page 19

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Debt issuance costs are generally amortized to interest expense using the straight-line method, which
approximates the effective interest method, over the term of the notes. In addition, all debt issue discounts are
amortized to interest expense using the effective interest rate method over the term of the notes.
Committed Ship Financings
We have unsecured long-term export credit committed ship financings, for which we have the option to draw in
euros and/or U.S. dollars depending on the facility, in order to pay for a portion of our ships’ purchase prices.
These commitments, if drawn, are generally repayable semi-annually over 12 years. We have the option to cancel
each one until 60 days prior to the underlying ship’s delivery date.
At January 31, 2011, our committed ship financings are as follows:
Cruise Brands and Ships
Month/Year
Committed
Fiscal Year
Scheduled for
Funding Amount
(in millions)
North America Brands
Carnival Cruise Lines
Carnival Magic .......................................... 11/09 2011 $ 544
Carnival Breeze ......................................... 11/09 2012 560
1,104
Princess
Newbuild .............................................. 04/10 2013 535
Newbuild .............................................. 04/10 2014 535
1,070
North America Cruise Brands ............................ 2,174
Europe, Australia & Asia (“EAA”) Brands
AIDA
AIDAbella .............................................. 12/10 2011 233
AIDAsol ............................................... 12/08 2011 381
AIDAmar ............................................... 12/08 2012 387
Newbuild .............................................. 12/10 2013 316
1,317
Costa
Costa Favolosa .......................................... 06/09 2011 199
EAA Cruise Brands .................................... 1,516
$3,690
Revolving Credit Facilities
Under our principal revolver, we are required to pay a commitment fee of 30% of the margin per annum on any
undrawn portion. If more than 50% of this revolver is drawn, we will incur an additional 5 bps utilization fee on
the total amount outstanding. This revolver matures in October 2012, except for $39 million which matures in
October 2011. In addition, we had four other revolving credit facilities with an aggregate amount of $423 million
available at November 30, 2010. These other facilities serve as back-up liquidity to our principal revolver and
mature through 2014. At November 30, 2010, $1.8 billion was available under our revolvers. In January 2011,
we cancelled one of these other revolving credit facilities in the amount of $100 million.
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