Carnival Cruises 2007 Annual Report Download - page 42

CARNIVAL CORPORATION & PLC | 39
During fiscal 2007, we borrowed $2.65 billion of long-term
debt, which included $1.49 billion to pay part of Carnival
Freedom, Emerald Princess, AIDAdiva and Queen Victoria
purchase prices and Ibero Cruises borrowed €185 million
($274 million U.S. dollars at November 30, 2007, exchange
rate) under our Facility to finance a portion of its purchase
price. In addition during fiscal 2007, we repaid $1.66 billion
of long-term debt, which included $323 million for the early
repayment of £165 million of debt and $835 million upon
maturity of our 3.75% Senior and other fixed rate notes. We
also repaid net short-term borrowings of $330 million under
our commercial paper programs and short-term bank loans
during fiscal 2007. Finally, we paid cash dividends of $990
million and purchased $326 million of Carnival Corporation
common stock and Carnival plc ordinary shares in open market
transactions during fiscal 2007.
Future Commitments and Funding Sources
At November 30, 2007, our contractual cash obligations, including new ship orders placed in December 2007, and the effects
such obligations are expected to have on our liquidity and cash flow in future periods were as follows (in millions):
Payments Due by Fiscal Year
Contractual Cash Obligations Total 2008 2009 2010 2011 2012 Thereafter
Recorded Contractual Obligations
Debt(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8,852 $ 2,539 $ 329 $ 1,342 $ 325 $ 1,028 $3,289
Other long-term liabilities reflected on the balance sheet(b) . . . . . . . . . . 499 32 59 52 38 30 288
Unrecorded Contractual Obligations
Shipbuilding(a) .............................................. 12,328 2,680 2,964 3,334 2,202 1,148
Port facilities and other(a) ..................................... 561 111 95 75 51 45 184
Operating leases(a) .......................................... 330 38 40 33 31 30 158
Purchase obligations(c) ....................................... 747 650 56 29 5 2 5
Fixed-rate interest payments(d) ................................. 1,884 251 226 217 204 191 795
Variable-rate interest payments(d) ............................... 379 110 93 72 34 29 41
Total contractual cash obligations(e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 25,580 $ 6,411 $ 3,862 $ 5,154 $ 2,890 $ 2,503 $4,760
(a) See Notes 5 and 6 in the accompanying financial statements for additional information regarding these contractual cash obligations.
(b) Represents cash outflows for certain of our long-term liabilities that could be reasonably estimated. The primary outflows are for estimates of our employee benefit
plan obligations, crew and guest claims, certain deferred income taxes, derivative contracts payable, and other long-term liabilities. Other long-term liabilities, such
as deferred income and certain deferred income taxes, have been excluded from the table as they do not require cash settlement in the future or the timing of the
cash outflow cannot be reasonably estimated.
(c) Represents legally-binding commitments to purchase inventory and other goods and services made in the normal course of business to meet operational require-
ments. Many of our contracts contain clauses that allow us to terminate the contract with notice, and with or without a termination penalty. Termination penalties
are generally an amount less than the original obligation. Historically, we have not had any significant defaults of our contractual obligations or incurred significant
penalties for termination of our contractual obligations.
(d) Fixed-rate interest payments represent cash outflows for fixed interest payments, including interest swapped from a variable-rate to a fixed-rate. Variable-rate interest
payments represent forecasted cash outflows for interest payments on variable-rate debt, including interest swapped from a fixed-rate to a variable-rate, using the
November 30, 2007 interest rates for the remaining terms of the loans.
(e) Foreign currency payments are based on the November 30, 2007 exchange rates.