Carnival Cruises 2011 Annual Report Download - page 56

ordinary shares have been or will be registered under the Securities Act. At January 23, 2012, the remaining
availability under the “Stock Swap” programs repurchase authorization was 18.1 million Carnival plc ordinary
shares and 31.5 million Carnival Corporation shares.
At November 30, 2011, we had liquidity of $6.9 billion. Our liquidity consisted of $450 million of cash and cash
equivalents, excluding $293 million of cash used for current operations, $2.4 billion available for borrowing
under our revolving credit facilities, net of commercial paper borrowings, and $4.3 billion under committed ship
financings. Of this $4.3 billion of committed ship financings, $949 million, $856 million, $1.1 billion, $1.0
billion and $452 million are scheduled to be funded in fiscal 2012, 2013, 2014, 2015 and 2016,
respectively. Substantially all of our revolving credit facilities are scheduled to mature in 2016. We rely on, and
have banking relationships with, numerous large, well-established banks, which we believe will assist us in
accessing multiple sources of funding in the event that some lenders are unwilling or unable to lend to
us. However, we believe that our revolving credit facilities and committed financings will be honored as required
pursuant to their contractual terms.
Substantially all of our debt agreements contain financial covenants as described in “Note 5 – Debt” in the
accompanying consolidated financial statements. At November 30, 2011, we believe we were in compliance with
all of our debt covenants. In addition, based on our forecasted operating results, financial condition and cash
flows, we expect to be in compliance with our debt covenants over the next several years. Generally, if an event
of default under any debt agreement occurs, then pursuant to cross default acceleration clauses, substantially all
of our outstanding debt and derivative contract payables could become due, and all debt and derivative contracts
could be terminated.
Off-Balance Sheet Arrangements
We are not a party to any off-balance sheet arrangements, including guarantee contracts, retained or contingent
interests, certain derivative instruments and variable interest entities that either have, or are reasonably likely to
have, a current or future material effect on our consolidated financial statements.
Quantitative and Qualitative Disclosures About Market Risk
For a discussion of our hedging strategies and market risks see the discussion below and “Note 10 - Fair Value
Measurements, Derivative Instruments and Hedging Activities,” in the accompanying consolidated financial
statements.
Foreign Currency Exchange Rate Risks
Operational and Investment Currency Risks
We have $183 million of foreign currency forwards that are designated as hedges of our net investments in
foreign operations, which have a euro-denominated functional currency, thus partially offsetting this foreign
currency exchange rate risk. Based upon a 10% hypothetical change in the U.S. dollar compared to the euro as of
November 30, 2011, assuming no changes in comparative interest rates, we estimate that these foreign currency
forwards’ fair values would change by $18 million, which would be offset by a corresponding change of $18
million in the U.S. dollar value of our net investments. In addition, based upon a 10% hypothetical change in the
U.S. dollar compared to the euro, sterling and Australian dollar, which are the functional currencies that we
translate into our U.S. dollar reporting currency, assuming no changes in comparative interest rates, we estimate
that our 2012 full year December 20, 2011 non-GAAP guidance would change by approximately $200 million.
Newbuild Currency Risks
At November 30, 2011, none of our newbuild passenger capacity under contract that is exposed to currency
exchange risk is hedged. The only newbuild contracts that have currency exchange risk for our cruise brands are
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