Royal Caribbean Cruise Lines 2014 Annual Report Download - page 37

Download and view the complete annual report

Please find page 37 of the 2014 Royal Caribbean Cruise Lines annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 104

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104

36 Royal Caribbean Cruises Ltd.
PART I
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. These leases may be extended for
an additional ten years under two five-year options.
We lease one office building in the United Kingdom
totaling approximately 24,000 square feet used to
conduct our operations in the United Kingdom. We
also lease a number of international 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 one office building totaling approximately
95,000 square feet in Wichita, Kansas, which is used
as a call center for reservations and customer service.
We lease two buildings in Miramar, Florida totaling
approximately 179,000 square feet. One building is
used primarily as office space and the other building
is used as a call center for reservations. We lease our
logistics center in Weston, Florida totaling approxi-
mately 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. The complaint alleged that the state-
room attendants were required to pay other crew
members to help with their duties and that certain
stateroom attendants were required to work back of
house assignments without the ability to earn gratu-
ities, in each case, in violation of the U.S. Seaman’s
Wage Act. In May 2012, the district court granted our
motion to dismiss the complaint on the basis that the
applicable collective bargaining agreement requires
any such claims to be arbitrated. The United States
Court of Appeals, 11th Circuit, affirmed the district
court’s dismissal and denied the plaintiffs’ petition for
re-hearing and re-hearing en banc. In October 2014,
the United States Supreme Court denied the plaintiffs’
request to review the order compelling arbitration.
Subsequently, approximately 575 crew members
submitted demands for arbitration. The demands
make substantially the same allegations as in the
federal court complaint and are similarly seeking
damages, wage penalties and interest in an indeter-
minate amount. Unlike the federal court complaint,
the demands for arbitration are being brought indi-
vidually by each of the crew members and not on
behalf of a purported class of stateroom attendants.
At this time, we are unable to estimate the possible
impact of this matter on us. However, we believe
the underlying claims made against us are without
merit, and we intend to vigorously defend ourselves
against them.
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 insur-
ance recoveries, will not have a material adverse
impact on our financial condition or results of oper-
ations and cash flows.
ITEM 4. MINE SAFETY DISCLOSURES
None.