Carnival Cruises 2012 Annual Report Download - page 111

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Table of Contents
deposits and current debt obligations from our November 30, 2012 working capital deficit balance, our non-GAAP adjusted working capital deficit was $709
million. Our business model, along with our unsecured revolving credit facilities, allows us to operate with a working capital deficit and still meet our
operating, investing and financing needs. We believe we will continue to have working capital deficits for the foreseeable future.
Sources and Uses of Cash
Our business provided $3.0 billion of net cash from operations during 2012, a decrease of $767 million, or 20%, compared to $3.8 billion in 2011. This
decrease was substantially due to less cash being provided from our operating results and customer deposits.
During 2012, our expenditures for capital projects were $2.3 billion, of which $1.7 billion was spent on our ongoing new shipbuilding program, including
$1.5 billion for the final delivery payments for AIDAmar, Carnival Breeze and Costa Fascinosa. In addition to our new shipbuilding program, we had
capital expenditures of $0.4 billion for ship improvements and replacements and $0.2 billion for information technology, buildings and other assets.
Furthermore, in 2012 we received $508 million of euro-denominated hull and machinery insurance proceeds for the total loss of a ship.
During 2012, we repaid a net $224 million of short-term borrowings in connection with our availability of, and needs for, cash at various times throughout
the year. In addition, during 2012, we repaid $1.1 billion of scheduled long-term debt payments. Furthermore, during 2012, we borrowed $946 million of
new long-term debt substantially all under two export credit facilities. Finally, we paid cash dividends of $779 million and purchased $90 million of Carnival
Corporation common stock in open market transactions during 2012.
Future Commitments and Funding Sources
At November 30, 2012, our contractual cash obligations were as follows (in millions):
Payments Due by
2013 2014 2015 2016 2017 Thereafter Total
Recorded Contractual
Cash Obligations
Short-term borrowings
(a) $56 $56
Long-term debt (a) 1,678 $1,615 $1,269 $848 $593 $2,843 8,846
Other long-term liabilities
reflected
on the balance sheet
(b) 90 113 79 50 65 279 676
Unrecorded
Contractual Cash
Obligations
Shipbuilding (c) 1,138 1,584 1,700 1,122 - - 5,544
Operating leases (c) 43 41 38 34 25 179 360
Port facilities and other
(c) 135 127 121 113 105 678 1,279
Purchase obligations (d) 770 99 63 53 24 33 1,042
Fixed rate interest
payments (e) 309 247 182 134 110 605 1,587
Floating rate interest
payments (e) 28 27 22 25 24 86 212
Total Contractual
Cash
Obligations (f) $4,247 $ 3,853 $3,474 $2,379 $946 $4,703 $19,602
(a) Our debt, excluding short-term borrowings, has a weighted-average maturity of 4.3 years. See “Note 5 – Debt” in the accompanying consolidated
financial statements for additional information regarding these debt obligations.
(b) Represents cash outflows for certain of our long-term liabilities, including their current portion, that could be reasonably estimated. The primary
outflows are for estimates of our compensation plans’ obligations, crew and guest claims, uncertain income tax position liabilities and certain deferred
income taxes. Other deferred income taxes have been excluded from the table because they do not require a cash settlement in the future.
(c) Our shipbuilding contractual obligations are legal commitments and, accordingly, cannot be cancelled without cause by the shipyards or us, and such
cancellation will subject the defaulting party to significant contractual liquidating damage payments. See “Note 6 – Commitments” in the accompanying
consolidated financial statements for additional information regarding these contractual cash obligations.
(d) Represents legally-binding commitments to purchase inventory and other goods and services made in the normal course of business to meet operational
requirements. Many of our contracts contain clauses that allow us to terminate the contract with notice, either with or without a termination
penalty. Termination penalties are generally an amount less than the original obligation. Historically, we have not had any significant defaults of our
contractual obligations or incurred significant penalties for their termination.
F-41