Royal Caribbean Cruise Lines 2013 Annual Report Download - page 38
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PART I
result in us prevailing in a matter. Such events could
lead to an adverse impact on our financial condition
or results of operations.
Provisions of our Articles of Incorporation, By-Laws
and Liberian law could inhibit others from acquiring us,
prevent a change of control, and may prevent efforts
by our shareholders to change our management.
Certain provisions of our Articles of Incorporation and
By-Laws and Liberian law may inhibit third parties
from effectuating a change of control of the Company
without Board approval which could result in the
entrenchment of current management. These include
provisions in our Articles of Incorporation that prevent
third parties, other than A. Wilhelmsen AS. and Cruise
Associates, from acquiring beneficial ownership of
more than 4.9% of our outstanding shares without
the consent of our Board of Directors.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
ITEM 2. PROPERTIES
Information about our cruise ships, including their size
and primary areas of operation, may be found within
the Operating Strategies—Fleet revitalization, mainte-
nance and expansion section and the Operations—
Cruise Ships and Itineraries section in Item 1. Business.
Information regarding our cruise ships under con-
struction, 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. In connection with the consolidation of our
global sales structure, we will be reducing our office
space in the UK and will lease only one building with
approximately 24,000 square feet. We also lease a
number of international offices throughout Europe,
Asia, Mexico, South America and Australia to adminis-
ter 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 approx-
imately 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
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 viola-
tion of the U.S. Seaman’s Wage Act. Plaintiffs seek
judgments for damages, wage penalties and interest
in an indeterminate amount. In May 2012, the Court
granted our motion to dismiss the complaint on the
basis that the applicable collective bargaining agree-
ment requires any such claims to be arbitrated. The
United States Court of Appeals, 11th Circuit affirmed
the Court’s dismissal and denied Plaintiff’s petition
for re-hearing and re-hearing en banc. We believe the
underlying claims made against us are without merit,
and we intend to vigorously defend ourselves against
them. Because of the inherent uncertainty as to the
outcome of this proceeding, we are unable at this
time to estimate the possible impact of this matter
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.