Carnival Cruises 2012 Annual Report Download - page 81

Table of Contents
Ships under construction include progress payments for the construction of new ships, as well as design and engineering fees, capitalized interest,
construction oversight costs and various owner supplied items. Capitalized interest, substantially all on our ships under construction, amounted to $17
million, $21 million and $26 million in 2012, 2011 and 2010, respectively.
Repairs and maintenance expenses, including minor improvement costs and dry-dock expenses, were $832 million, $830 million and $797 million in 2012,
2011 and 2010, respectively, and are substantially all included in other ship operating expenses.
In February 2012, Costa Allegra suffered fire damage and, accordingly, we decided to withdraw this ship from operations resulting in a $34 million
impairment charge, which is included in other ship operating expenses. In addition, during 2012 we incurred $17 million for Costa Allegra incident-related
expenses, which are substantially all included in other ship operating expenses. In October 2012, we sold Costa Allegra.
See Note 7 for a discussion of the January 2012 Costa Concordia (“the ship”) incident.
During 2011, we reviewed certain of our ships for impairment since there were indicators of impairment. As a result of these reviews, in August 2011 we
included $28 million of estimated impairment charges in other ship operating expenses as a result of the possible sales of Costa Marina, which was sold in
November 2011, and Pacific Sun, which was sold in December 2011. We operated Pacific Sun under a bareboat charter agreement until July 2012.
In 2010, we recognized a $44 million gain on the sale of P&O Cruises (UK)’s Artemis as a reduction of other ship operating expenses. We operated Artemis
under a bareboat charter agreement until April 2011.
NOTE 5 – Debt
Unsecured long-term debt and short-term borrowings consisted of the following (in millions):
November 30,
2012(a) 2011(a)
Long-Term Debt
Export Credit Facilities
Fixed rate, bearing interest at 4.2% to 5.5%, due through 2020 (b) $ 2,009 $2,340
Euro fixed rate, bearing interest at 3.8% to 4.5%, due through 2025 (b) 423 470
Floating rate, bearing interest at LIBOR plus 1.3% to 1.6% (1.9% to 2.0%), due through 2024 (c) 1,303 872
Euro floating rate, bearing interest at EURIBOR plus 0.2% to 1.0% (0.4% to 2.0%), due through 2026 (b)(d) 1,516 1,314
Bank Loans
Fixed rate, bearing interest at 3.5% to 4.4%, due through 2015 (b)(e)(f) 650 850
Euro fixed rate, bearing interest at 3.9%, due in 2021 (b) 296 350
Floating rate, bearing interest at LIBOR plus 0.7% to 1.0% (1.0% to 1.3%), due through 2016 (b)(f) 700 500
Euro floating rate, bearing interest at EURIBOR plus 0.6% (0.8%), due in 2014 (b) 132 135
Private Placement Notes
Fixed rate, bearing interest at 5.9% to 6.0%, due through 2016 116 121
Euro fixed rate, bearing interest at 6.9% to 7.3%, due through 2018 (b) 185 247
Publicly-Traded Notes
Fixed rate, bearing interest at 6.7% to 7.2%, due through 2028 517 528
Euro fixed rate, bearing interest at 4.3%, due in 2013 971 997
Sterling fixed rate, bearing interest at 5.6%, repaid at maturity in 2012 - 314
Other 28 34
Short-Term Borrowings
Commercial paper, with aggregate weighted-average interest rate of 0.3% - 162
Euro bank loans, with aggregate weighted-average interest rate of 1.7% 56 119
Total Debt 8,902 9,353
Less short-term borrowings (56) (281)
Less current portion of long-term debt (1,678) (1,019)
Total Long-term Debt $7,168 $ 8,053
(a) All interest rates are as of the latest balance sheet date for which there is an outstanding debt balance. The debt table does not include the impact of our
foreign currency and interest rate swaps. At November 30, 2012, 58% and 42% of our debt was U.S. dollar and euro-denominated, respectively, and at
November 30, 2011, 56%, 41% and 3% of our debt was U.S. dollar, euro and sterling-denominated, respectively, including the effect of foreign
currency swaps. Substantially all of our fixed rate debt can
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