Carnival Cruises 2011 Annual Report Download - page 36

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NOTE 14 – Supplemental Cash Flow Information
Cash paid for interest, net of capitalized interest, was $358 million, $361 million and $366 million in fiscal 2011, 2010
and 2009, respectively. In addition, cash received (paid), net for income taxes was $9 million, $(15) million and $(27)
million in fiscal 2011, 2010 and 2009, respectively.
NOTE 15 – Subsequent Event
On January 13, 2012, the 2,978-passenger capacity Costa Concordia grounded off the coast of Isola del Giglio, Italy
and sustained significant damage. The ship remains grounded and partially submerged. The net carrying value of this
euro-denominated ship, including ship improvements, at December 31, 2011 was $490 million (at the December 31,
2011 exchange rate or €379 million). We have euro-denominated insurance coverage of $510 million (at the
December 31, 2011 exchange rate or €395 million) for damage to the ship with a potential deductible of approximately
$30 million as well as insurance for third party personal injury liability subject to an additional deductible of
approximately $10 million for this incident. We self-insure for loss of use of the ship.
A damage assessment review of the ship is being undertaken to determine whether the ship can be repaired and what
the total cost would be. If the ship is repairable, it is expected to be out-of-service for the remainder of fiscal 2012 if
not longer.
MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as
such term is defined in the Securities Exchange Act of 1934 Rule 13a-15(f). Under the supervision and with the
participation of our management, including our Chief Executive Officer, Chief Operating Officer and Chief Financial
Officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the
framework in Internal Control – Integrated Framework, issued by the Committee of Sponsoring Organizations of the
Treadway Commission (“COSO Framework”). Based on our evaluation under the COSO Framework, our management
concluded that our internal control over financial reporting was effective as of November 30, 2011.
PricewaterhouseCoopers LLP, the independent registered certified public accounting firm that audited our consolidated
financial statements, has also audited the effectiveness of our internal control over financial reporting as of
November 30, 2011 as stated in their report, which is included in this 2011 Annual Report.
Micky Arison Howard S. Frank David Bernstein
Chairman of the Board and
Chief Executive Officer
Vice Chairman of the Board and
Chief Operating Officer
Senior Vice President and
Chief Financial Officer
January 30, 2012 January 30, 2012 January 30, 2012
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