Royal Caribbean Cruise Lines 2011 Annual Report Download - page 56

2011 ANNUAL REPORT 52
PART II
facilities whereas during 2010, we drew $1.7 billion
through unsecured term loans to purchase Celebrity
Eclipse and Allure of the Seas and drew $715.0 million
on our unsecured revolving credit facilities.
FUTURE CAPITAL COMMITMENTS
Our future capital commitments consist primarily of
new ship orders. As of December 31, 2011, we have
Celebrity Reflection and our Project Sunshine ship
under construction for an aggregate additional
capacity of approximately 7,100 berths. In addition,
in February 2012, we exercised our option to con-
struct a second Project Sunshine ship with a capacity
of approximately 4,100 berths which is expected to
enter service in the second quarter of 2015.
As of December 31, 2011, the aggregate cost of our
ships on order was approximately $2.0 billion, of
which we had deposited $185.8 million as of such
date. Approximately 43.3% of the aggregate cost was
exposed to fluctuations in the euro exchange rate at
December 31, 2011. Including our recently ordered
second Project Sunshine ship, the aggregate cost of
our ships on order is approximately $2.8 billion. These
amounts do not include any costs associated with the
construction agreement entered into by TUI Cruises
to build its first newbuild ship. (See Note 13. Fair
Value Measurements and Derivative Instruments and
Note 14. Commitments and Contingencies to our con-
solidated financial statements under Item 8. Financial
Statements and Supplementary Data).
As of December 31, 2011, we anticipated overall capi-
tal expenditures will be approximately $1.2 billion for
2012, $500.0 million for 2013 and $1.1 billion for 2014.
Including our recently ordered second Project Sunshine
ship, our anticipated capital expenditures will be
approximately $1.3 billion for 2012, $600.0 million for
2013, $1.1 billion for 2014 and $1.0 billion for 2015.
CONTRACTUAL OBLIGATIONS
As of December 31, 2011, our contractual obligations were as follows (in thousands):
Payments due by period
Less than More than
Total 1 year 1–3 years 3–5 years 5 years
Operating Activities:
Operating lease obligations(1)(2)          
Interest on long-term debt(3)     
Other(4)     
Investing Activities:
Ship purchase obligations(5)    — —
Financing Activities:
Long-term debt obligations(6)     
Capital lease obligations(7)     
Other(8)     
Total          
(1) We are obligated under noncancelable operating leases primarily for a ship, offices, warehouses and motor vehicles.
(2) Under the Brilliance of the Seas lease agreement, we may be required to make a termination payment of approximately £66.8 million, or approxi-
mately $103.8 million based on the exchange rate at December 31, 2011, if the lease is canceled in 2020. This amount is included in the more than
5 years column.
(3) Long-term debt obligations mature at various dates through fiscal year 2027 and bear interest at fixed and variable rates. Interest on variable-rate
debt is calculated based on forecasted debt balances, including interest swapped from a fixed-rate to a variable-rate using the applicable rate at
December 31, 2011. Debt denominated in other currencies is calculated based on the applicable exchange rate at December 31, 2011. Amounts are
based on existing debt obligations and do not consider potential refinancing of expiring debt obligations.
(4) Amounts represent future commitments with remaining terms in excess of one year to pay for our usage of certain port facilities, marine consumables,
services and maintenance contracts.
(5) Amounts represent contractual obligations with initial terms in excess of one year. Amounts do not include our second Project Sunshine ship which
was ordered in February 2012.
(6) Amounts represent debt obligations with initial terms in excess of one year.
(7) Amounts represent capital lease obligations with initial terms in excess of one year.
(8) Amounts represent fees payable to sovereign guarantors in connection with certain of our export credit debt facilities and facility fees on our
revolving credit facilities.