Carnival Cruises 2012 Annual Report Download - page 83

Table of Contents
Revolving Credit Facilities
Carnival Corporation, Carnival plc and certain of Carnival plc’s subsidiaries are party to a five-year multi-currency revolving credit facility for $2.4 billion
(comprised of $1.6 billion, €450 million and £150 million) (the “Facility”), which expires in May 2016. The Facility currently bears interest at
LIBOR/EURIBOR plus a margin of 65 basis points (“bps”). The margin varies based on changes to Carnival Corporation’s and Carnival plc’s long-term
senior unsecured credit ratings. We are required to pay a commitment fee of 35% of the margin per annum on any undrawn portion. If more than one-third or if
more than two-thirds of the Facility is drawn, we will incur an additional 15 bps or 30 bps utilization fee, respectively, on the total amount outstanding.
At November 30, 2012, we also had one other undrawn revolving credit facility for $78 million, which expires in 2015. At November 30, 2012, $2.5 billion
was available under all of our revolving credit facilities.
NOTE 6 – Commitments
Ship Commitments
At November 30, 2012, we had nine ships under contract for construction with an aggregate passenger capacity of over 29,800. The estimated total cost of
these ships is $5.9 billion, which includes the contract prices with the shipyards, design and engineering fees, capitalized interest, construction oversight
costs and various owner supplied items. We have paid $0.4 billion through November 30, 2012 and anticipate paying $1.1 billion, $1.6 billion, $1.7 billion
and $1.1 billion of the remaining estimated total costs in 2013, 2014, 2015 and 2016, respectively.
Operating Leases, Port Facilities and Other Commitments
Rent expense under our operating leases, primarily for office and warehouse space, was $57 million, $59 million and $61 million in 2012, 2011 and 2010,
respectively.
At November 30, 2012, minimum amounts payable for our operating leases, with initial or remaining terms in excess of one year, and for the annual usage of
port facilities and other contractual commitments with remaining terms in excess of one year, were as follows (in millions):
Fiscal
2013 2014 2015 2016 2017 Thereafter Total
Operating leases $43 $41 $38 $34 $25 $179 $360
Port facilities and other 135 127 121 113 105 678 1,279
$ 178 $168 $159 $147 $130 $857 $1,639
NOTE 7 – Costa Concordia
During 2012, we wrote-off the net carrying value of the ship in the amount of €381 million (or $515 million) and received €395 million (or $508 million) of
hull and machinery insurance proceeds for the total loss of the ship. As a result, in 2012 we recognized €14 million (or $17 million) of proceeds in excess of
the net carrying value of the ship as a reduction of other ship operating expenses. In addition, during 2012 we incurred $28 million for ship incident-related
expenses that were not covered by insurance, including a $10 million insurance deductible related to third party personal injury liabilities. These ship incident-
related expenses are principally included in other ship operating expenses.
As a result of the ship incident, litigation claims, enforcement actions, regulatory actions and investigations, including, but not limited to, those arising from
personal injury, loss of life, loss of or damage to personal property, business interruption losses or environmental damage to any affected coastal waters and
the surrounding areas, have been and may be asserted or brought against various parties, including us. The existing assertions are in their initial stages and
there are significant jurisdictional uncertainties. The ultimate outcome of these matters cannot be determined at this time. However, we do not expect these
matters to have a significant impact on our results of operations because we have insurance coverage for these types of third-party claims.
Since the ship incident, we have separately presented short-term insurance recoverables and short-term claims reserve in our Consolidated Balance Sheets. At
November 30, 2012, substantially all of our aggregated short-term and long-term insurance recoverables relate to crew, guest and other third party claims for
the ship incident. At November 30, 2012, primarily all of our aggregated short-term and long-term claims reserves also relate to the ship incident. At
November 30, 2012 and 2011, our long-term insurance recoverables and long-term claims reserve are included in other assets and other long-term liabilities,
respectively, and are not material.
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