Royal Caribbean Cruise Lines 2008 Annual Report Download - page 60

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F-5 Royal Caribbean Cruises Ltd.
(in thousands)
Year Ended December 31, 2008 2007 2006
Operating Activities
Net income $ 573,722 $ 603,405 $ 633,922
Adjustments:
Depreciation and amortization 520,353 483,066 421,645
Accretion of original issue discount on debt 1,750 1,810 17,902
Changes in operating assets and liabilities:
Decrease (increase) in trade and other receivables, net 28,150 (122,682) (38,855)
Increase in inventories (140) (19,424) (7,441)
Decrease (increase) in prepaid expenses and other assets 12,884 (37,650) 707
Increase (decrease) in accounts payable 22,322 23,398 (29,671)
(Decrease) increase in accrued interest (3,571) 78,160 (2,196)
Increase in accrued expenses and other liabilities 39,766 72,035 24,011
(Decrease) increase in customer deposits (118,541) 184,713 9,724
Accreted interest paid on LYONs repurchase – – (121,199)
Other, net (5,440) 1,863 39,957
Net cash provided by operating activities 1,071,255 1,268,694 948,506
Investing Activities
Purchases of property and equipment (2,223,534) (1,317,381) (1,178,960)
Repayment (purchase) of notes from TUI Travel – 100,000 (100,000)
Purchase of Pullmantur, net of cash acquired – – (553,312)
Cash received on settlement of derivative financial instruments 269,815 59,392 7,288
Loans and equity contributions to unconsolidated affiliates (52,323) – (12,019)
Proceeds from sale of investment in Island Cruises 51,400 – –
Other, net (22,607) (12,569) (12,075)
Net cash used in investing activities (1,977,249) (1,170,558) (1,849,078)
Financing Activities
Proceeds from issuance of debt 2,223,402 1,934,979 2,933,915
Debt issuance costs (23,872) (10,146) (10,004)
Repayments of debt (987,547) (1,805,798) (1,785,773)
Dividends paid (128,045) (98,298) (124,460)
Proceeds from exercise of common stock options 3,817 19,632 23,026
Purchases of treasury stock – – (164,582)
Other, net (4,369) (3,758) 7,585
Net cash provided by financing activities 1,083,386 36,611 879,707
Effect of exchange rate changes on cash (5,298) (8,483) –
Net increase (decrease) in cash and cash equivalents 172,094 126,264 (20,865)
Cash and cash equivalents at beginning of year 230,784 104,520 125,385
Cash and cash equivalents at end of year $ 402,878 $ 230,784 $ 104,520
Supplemental Disclosures
Cash paid during the year for:
Interest, net of amount capitalized $ 321,206 $ 285,206 $ 376,817
Noncash Investing Transactions
We accrued for purchases of property and equipment paid in 2009 $ 63,857 $ – $ –
Supplemental Schedule of Noncash Investing Activity
The Company purchased all of the capital stock of Pullmantur for approximately $558.9 million in November 2006. In conjunction with the
acquisition, liabilities were assumed as follows:
Fair value of assets acquired $ 1,111,117
Cash paid for capital stock (558,948)
Liabilities assumed $ 552,169
The accompanying notes are an integral part of these consolidated financial statements.
CONSOLIDATED STATEMENTS OF CASH FLOWS