Carnival Cruises 2014 Annual Report Download - page 67

Future Commitments and Funding Sources
At November 30, 2014, our contractual cash obligations, including ship construction contracts entered into
through January 22, 2015, were as follows (in millions):
Payments Due by
2015 2016 2017 2018 2019 Thereafter Total
Recorded Contractual Cash Obligations
Short-term borrowings ................... $ 666 $ - $ - $ - $ - $ - $ 666
Long-term debt (a) ...................... 1,059 1,785 634 1,302 685 2,957 8,422
Other long-term liabilities reflected on the
balance sheet (b) ..................... - 245 187 158 59 175 824
Unrecorded Contractual Cash Obligations
Shipbuilding (c) ........................ 1,560 1,881 815 1,371 - - 5,627
Operating leases (c) ..................... 56 45 30 25 24 147 327
Port facilities and other (c) ............... 231 188 141 110 70 600 1,340
Purchase obligations (d) ................. 903 71 30 22 14 4 1,044
Fixed rate interest payments (e) ........... 182 157 127 103 86 331 986
Floating rate interest payments (e) ......... 37 43 48 48 43 127 346
Total Contractual Cash Obligations (f) .... $4,694 $4,415 $2,012 $3,139 $981 $4,341 $19,582
(a) Our long-term debt has a weighted-average maturity of 4.3 years. See Note 5 – “Unsecured Debt” in the
consolidated financial statements for additional information regarding these debt obligations.
(b) Represents cash outflows for certain of our long-term liabilities 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. Customer deposits and certain 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 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.
(e) Fixed rate interest payments represent cash outflows for fixed interest payments, including interest swapped
from a floating rate to a fixed rate. Floating rate interest payments represent forecasted cash outflows for
interest payments on floating rate debt, including interest swapped from a fixed rate to a floating rate, using
the November 30, 2014 forward interest rates for the remaining terms of the loans.
(f) Amounts payable in foreign currencies, which are principally the euro, sterling and Australian dollars, are
based on the November 30, 2014 exchange rates.
As of November 30, 2014, as adjusted for our new ship orders through January 22, 2015, our total annual capital
expenditures consist of ships under contract for construction, estimated improvements to existing ships and
shoreside assets and for 2015, 2016, 2017 and 2018 are expected to be $3.0 billion, $3.3 billion, $2.1 billion and
$2.5 billion, respectively.
The year-over-year percentage increase in our annual capacity is currently expected to be 2.0%, 4.4%, 2.8% and
1.9% for 2015, 2016, 2017 and 2018, respectively. These percentage increases are expected to result primarily
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