Royal Caribbean Cruise Lines 2012 Annual Report Download - page 38

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PART I
—Cruise Ships and Itineraries section in Item 1. Busi-
ness. Information regarding our cruise ships under
construction, estimated expenditures and financing
may be found within the Future Capital Commitments
and Funding Needs and Sources sections of Item 7.
Management’s Discussion and Analysis of Financial
Condition and Results of Operations.
Our principal executive office and principal shoreside
operations are located at the Port of Miami, Florida
where we lease three office buildings totaling approx-
imately 361,800 square feet from Miami-Dade County,
Florida, under long-term leases with current terms
expiring in 2021. We lease two office buildings in
the United Kingdom totaling approximately 57,000
square feet used to conduct our operations in the
United Kingdom. We also lease a number of inter-
national offices throughout Europe, Asia, Mexico,
South America and Australia to administer our brand
operations globally.
We lease an office building in Springfield, Oregon
totaling approximately 163,000 square feet, which
is used as a call center for reservations. In addition,
we own two office buildings totaling approximately
95,000 square feet in Wichita, Kansas, which are used
as call centers for reservations and customer service.
We lease two buildings in Miramar, Florida totaling
approximately 178,000 square feet. One building is
used primarily as office space and the other building
is used as a call center for reservations. We also lease
our logistics center in Weston, Florida totaling
approximately 267,000 square feet.
We believe that our facilities are adequate for our
current needs and that we are capable of obtaining
additional facilities as necessary.
We also operate two private destinations which we
utilize as a port-of-call on certain of our itineraries:
(i) an island we own in the Bahamas which we call
CocoCay; and (ii) Labadee, a secluded peninsula we
lease on the north coast of Haiti.
ITEM 3. LEGAL PROCEEDINGS
Between August 1, 2011 and September 8, 2011, three
similar purported class action lawsuits were filed
against us and certain of our current and former
officers in the U.S. District Court of the Southern
District of Florida. The cases have since been con-
solidated and a consolidated amended complaint
was filed on February 17, 2012. The consolidated
amended complaint was filed on behalf of a purported
class of purchasers of our common stock during the
period from October 26, 2010 through July 27, 2011
and names the Company, our Chairman and CEO, our
CFO, the President and CEO of our Royal Caribbean
International brand and the former President and CEO
of our Celebrity Cruises brand as defendants. The
consolidated amended complaint alleges violations of
Section 10(b) of the Securities Exchange Act of 1934
and SEC Rule 10b-5 as well as, in the case of the indi-
vidual defendants, the control person provisions of
the Securities Exchange Act. The complaint princi-
pally alleges that the defendants knowingly made
incorrect statements concerning the Company’s
outlook for 2011 by not taking into proper account
lagging European and Mediterranean bookings. The
consolidated amended complaint seeks unspecified
damages, interest, and attorneys’ fees. We filed a
motion to dismiss the complaint on April 9, 2012.
Briefing on that motion was completed on August 2,
2012. The motion is currently pending. We believe
the claims made against us are without merit and we
intend to vigorously defend ourselves against them.
A class action complaint was filed in June 2011 against
Royal Caribbean Cruises Ltd. in the United States
District Court for the Southern District of Florida on
behalf of a purported class of stateroom attendants
employed onboard Royal Caribbean International
cruise vessels alleging that they were required to
pay other crew members to help with their duties in
violation of the U.S. Seaman’s Wage Act. The lawsuit
also alleges that certain stateroom attendants were
required to work back of house assignments without
the ability to earn gratuities in violation of the U.S.
Seaman’s Wage Act. Plaintiffs seek judgment for
damages, wage penalties and interest in an indetermi-
nate amount. In May 2012, the Court granted our
motion to dismiss the complaint on the basis that the
applicable collective bargaining agreement requires
any such claims to be arbitrated. Plaintiff’s appeal
of this decision was dismissed for lack of jurisdiction
by the United States Court of Appeals, 11th Circuit.
Plaintiffs are seeking to renew their appeal. We believe
the appeal is without merit as are the underlying
claims made against us and we intend to vigorously
defend ourselves against them.
Because of the inherent uncertainty as to the out-
come of the proceedings described above, we are
unable at this time to estimate the possible impact
of these matters on us.
We are routinely involved in other claims typical
within the cruise vacation industry. The majority of
these claims are covered by insurance. We believe the
outcome of such claims, net of expected insurance
recoveries, will not have a material adverse impact on
our financial condition or results of operations and
cash flows.
ITEM 4. MINE SAFETY DISCLOSURES
None.