Carnival Cruises 2010 Annual Report Download - page 37

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
Cautionary Note Concerning Factors That May Affect Future Results
Some of the statements, estimates or projections contained in this 2010 Annual Report are “forward-looking
statements” that involve risks, uncertainties and assumptions with respect to us, including some statements
concerning future results, outlooks, plans, goals and other events which have not yet occurred. These statements
are intended to qualify for the safe harbors from liability provided by Section 27A of the Securities Act of 1933
and Section 21E of the Securities Exchange Act of 1934. We have tried, whenever possible, to identify these
statements by using words like “will,” “may,” “could,” “should,” “would,” “believe,” “expect,” “anticipate,”
“forecast,” “future,” “intend,” “plan,” “estimate” and similar expressions of future intent or the negative of such
terms.
Because forward-looking statements involve risks and uncertainties, there are many factors that could cause our
actual results, performance or achievements to differ materially from those expressed or implied in this 2010
Annual Report. Forward-looking statements include those statements which may impact, among other things, the
forecasting of our earnings per share, net revenue yields, booking levels, pricing, occupancy, operating, financing
and tax costs, fuel expenses, costs per available lower berth day (“ALBDs”), estimates of ship depreciable lives
and residual values, liquidity, goodwill and trademark fair values and outlook. These factors include, but are not
limited to, the following:
– general economic and business conditions;
– fluctuations in foreign currency exchange rates;
– the international political climate, armed conflicts, terrorist and pirate attacks, vessel seizures, and threats
thereof, and other world events affecting the safety and security of travel;
– competition from and overcapacity in the cruise ship or land-based vacation industries;
– accidents, the spread of contagious diseases and threats thereof, adverse weather conditions or natural
disasters and other incidents affecting the health, safety, security and satisfaction of guests and crew;
– adverse publicity concerning the cruise industry in general, or us in particular, including any adverse impact
that cruising may have on the marine environment;
– changes in and compliance with laws and regulations relating to the protection of persons with disabilities,
employment, environment, health, safety, security, tax and other regulations under which we operate;
– economic, market and political factors that are beyond our control, which could increase our operating,
financing and other costs;
– our ability to implement our shipbuilding programs and ship repairs, maintenance and refurbishments on
terms that are favorable or consistent with our expectations;
– increases to our repairs and maintenance expenses and refurbishment costs as our fleet ages;
– the continued strength of our cruise brands and our ability to implement our brand strategies;
– our international operations are subject to additional risks not generally applicable to our U.S. operations;
– geographic regions in which we try to expand our business may be slow to develop and ultimately not
develop how we expect;
– whether our future operating cash flow will be sufficient to fund future obligations and whether we will be
able to obtain financing, if necessary, in sufficient amounts and on terms that are favorable or consistent
with our expectations;
– our counterparties’ abilities to perform;
– continuing financial viability of our travel agent distribution system, air service providers and other key
vendors in our supply chain and reductions in the availability of, and increases in the pricing for, the
services and products provided by these vendors;
– our decisions to self-insure against various risks or our inability to obtain insurance for certain risks at
reasonable rates;
– disruptions and other damages to our information technology and other networks and operations and
breaches in data security;
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