Royal Caribbean Cruise Lines 2012 Annual Report Download - page 97

93
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
In addition, we are obligated under other noncancel-
able operating leases primarily for offices, ware-
houses and motor vehicles. As of December 31, 2012,
future minimum lease payments under noncancelable
operating leases were as follows (in thousands):
Year
 
 
 
 
 
Thereafter 

Total expense for all operating leases amounted to
$61.6 million, $60.2 million and $50.8 million for the
years 2012, 2011 and 2010, respectively.
Other
Some of the contracts that we enter into include
indemnification provisions that obligate us to make
payments to the counterparty if certain events occur.
These contingencies generally relate to changes in
taxes, increased lender capital costs and other similar
costs. The indemnification clauses are often standard
contractual terms and are entered into in the normal
course of business. There are no stated or notional
amounts included in the indemnification clauses and
we are not able to estimate the maximum potential
amount of future payments, if any, under these
indemnification clauses. We have not been required
to make any payments under such indemnification
clauses in the past and, under current circumstances,
we do not believe an indemnification in any material
amount is probable.
If (i) any person other than A. Wilhelmsen AS. and
Cruise Associates and their respective affiliates (the
“Applicable Group”) acquires ownership of more than
33% of our common stock and the Applicable Group
owns less of our common stock than such person, or
(ii) subject to certain exceptions, during any 24-month
period, a majority of the Board is no longer comprised
of individuals who were members of the Board on the
first day of such period, we may be obligated to pre-
pay indebtedness outstanding under the majority of
our credit facilities, which we may be unable to replace
on similar terms. Certain of our outstanding debt
securities also contain change of control provisions
that would be triggered by the acquisition of greater
than 50% of our common stock by a person other
than a member of the Applicable Group coupled with
a ratings downgrade. If this were to occur, it would
have an adverse impact on our liquidity and operations.
At December 31, 2012, we have future commitments
to pay for our usage of certain port facilities, marine
consumables, services and maintenance contracts as
follows (in thousands):
Year
 
 
 
 
 
Thereafter 

NOTE 15. QUARTERLY SELECTED FINANCIAL DATA (UNAUDITED)
(in thousands, except First Quarter Second Quarter Third Quarter Fourth Quarter
per share data)        
Total revenues(1)                
Operating income(2)              ()  
Net income (loss)(2,3)      ()        ()  
Earnings per share:
Basic      ()        ()  
Diluted      ()        ()  
Dividends declared
per share    —    —        
() Our revenues are seasonal based on the demand for cruises. Demand is strongest for cruises during the Northern Hemisphere’s summer months
and holidays.
() Amounts for the fourth quarter of 2012 include an impairment charge of $385.4 million to write down Pullmantur’s goodwill to its implied fair value
and to write down trademarks and trade names and certain long-lived assets, consisting of three aircraft owned and operated by Pullmantur Air, to
their fair value.
() Amounts for the fourth quarter of 2012 include a $33.7 million charge to record a 100% valuation allowance related to our deferred tax assets for
Pullmantur. In addition, we reduced the deferred tax liability related to Pullmantur’s trademarks and trade names by $5.2 million. These adjustments
resulted in an increase of $28.5 million to other (expense) income.