Carnival Cruises 2011 Annual Report Download - page 54

At November 30, 2011 and 2010, we had working capital deficits of $4.8 billion and $4.5 billion,
respectively. Our November 30, 2011 deficit included $3.1 billion of customer deposits, which represent the
passenger revenues we collect in advance of sailing dates and, accordingly, are substantially more like deferred
revenue transactions rather than actual current cash liabilities. Our November 30, 2011 working capital deficit
included $1.3 billion of current debt obligations, which included $162 million outstanding under our commercial
paper programs and $1.1 billion outstanding under our export credit facilities, bank loans and other debt. We
continue to generate substantial cash from operations and have a strong balance sheet. This strong balance sheet
provides us with the ability to refinance our current debt obligations as they become due in most financial credit
market environments. We also have our main revolver available to provide long-term rollover financing should
the need arise, or we choose to do so. After excluding customer deposits and current debt obligations from our
November 30, 2011 working capital deficit balance, our non-GAAP adjusted working capital deficit was only
$387 million. Our business model allows us to operate with an adjusted working capital deficit and, accordingly,
we believe we will continue to have a working capital deficit for the foreseeable future.
Sources and Uses of Cash
Our business provided $3.8 billion of net cash from operations during fiscal 2011 and 2010.
During fiscal 2011, our expenditures for capital projects were $2.7 billion, of which $2.2 billion was spent on our
ongoing new shipbuilding program, including $1.8 billion for the final delivery payments for AIDAsol, Carnival
Magic, Costa Favolosa and Seabourn Quest. In addition to our new shipbuilding program, we had capital
expenditures of $337 million for ship improvements and replacements and $176 million for information
technology, buildings and other assets.
During fiscal 2011, we repaid a net $450 million of short-term borrowings in connection with our availability of,
and needs for, cash at various times throughout the year. In addition, we repaid $1.2 billion of other long-term
debt substantially for scheduled payments on export credit facilities and the early repayment of two floating rate
bank loans and a portion of one export credit facility. Also, we borrowed $1.7 billion of new other long-term debt
during fiscal 2011, under three export credit facilities and four bank loans. Finally, we paid cash dividends of
$671 million and purchased $454 million of Carnival Corporation common stock and Carnival plc ordinary
shares in open market transactions during fiscal 2011, which represented all of our $1.1 billion of fiscal 2011 free
cash flow.
Future Commitments and Funding Sources
At November 30, 2011, our contractual cash obligations were as follows (in millions):
Payments Due by Fiscal
2012 2013 2014 2015 2016
There-
after Total
Recorded Contractual Cash Obligations
Short-term borrowings (a) ................ $ 281 $ 281
Long-term debt (a) ...................... 1,019 $1,624 $1,557 $1,195 $ 780 $2,897 9,072
Other long-term liabilities reflected on the
balance sheet (b) ...................... 54 110 93 62 54 202 575
Unrecorded Contractual Cash Obligations
Shipbuilding (c) ........................ 1,847 1,141 1,418 1,178 507 - 6,091
Operating leases (c) ..................... 41 39 34 31 28 180 353
Port facilities and other (c) ................ 120 118 104 101 103 743 1,289
Purchase obligations (d) .................. 767 63 38 31 24 27 950
Fixed rate interest payments (e) ............ 362 309 205 183 135 717 1,911
Floating rate interest payments (e) .......... 51 46 51 46 47 150 391
Total Contractual Cash Obligations (f) .... $4,542 $3,450 $3,500 $2,827 $1,678 $4,916 $20,913
(See next page for footnotes.)
53