Carnival Cruises 2012 Annual Report Download - page 76

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Table of Contents
CARNIVAL CORPORATION & PLC
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 – General
Description of Business
Carnival Corporation is incorporated in Panama, and Carnival plc is incorporated in England and Wales. Carnival Corporation and Carnival plc operate a
dual listed company (“DLC”), whereby the businesses of Carnival Corporation and Carnival plc are combined through a number of contracts and through
provisions in Carnival Corporation’s Articles of Incorporation and By-Laws and Carnival plc’s Articles of Association. The two companies operate as if they
are a single economic enterprise, but each has retained its separate legal identity. Each company’s shares are publicly traded; on the New York Stock Exchange
(“NYSE”) for Carnival Corporation and the London Stock Exchange for Carnival plc. In addition, Carnival plc American Depository Shares are traded on
the NYSE. See Note 3.
The consolidated financial statements include the accounts of Carnival Corporation and Carnival plc and their respective subsidiaries. Together with their
consolidated subsidiaries, they are referred to collectively in these consolidated financial statements and elsewhere in this 2012 Annual Report as “Carnival
Corporation & plc,” “our,” “us” and “we.”
We are the largest cruise company and among the largest leisure travel companies in the world. Each of our ten cruise brands is an operating segment that we
aggregate into either the (1) North America or (2) Europe, Australia & Asia (“EAA”) reportable cruise segments (see Note 12). As of January 22, 2013, our
cruise brands’ summary information is as follows:
Cruise Brands
Passenger
Capacity (a)
Number of
Cruise Ships Primary Markets (b)
North America
Carnival Cruise Lines 61,968 24 North America
Princess Cruises (“Princess”) 36,912 16 North America
Holland America Line 23,492 15 North America
Seabourn 1,986 6 North America
North America Cruise Brands 124,358 61
EAA
Costa Cruises (“Costa”) 31,720 14 Italy, France and Germany
AIDA Cruises (“AIDA”) 16,442 9 Germany
P&O Cruises (UK) 14,636 7 United Kingdom (“UK”)
Cunard 6,672 3 UK and North America
P&O Cruises (Australia) 4,780 3 Australia
Ibero Cruises (“Ibero”) 4,176 3 Spain and South America
EAA Cruise Brands 78,426 39
202,784 100
(a) In accordance with cruise business practice, passenger capacity is calculated based on the assumption of two passengers per cabin even though some
cabins can accommodate three or more passengers.
(b) Represents the primary regions or countries where guests are sourced.
NOTE 2 – Summary of Significant Accounting Policies
Basis of Presentation
We consolidate entities over which we have control, as typically evidenced by a voting control of greater than 50% or for which we are the primary beneficiary,
whereby we have the power to direct the most significant activities and the obligation to absorb significant losses or receive significant benefits from the entity
(see Note 3). We do not separately present our noncontrolling interests in the consolidated financial statements since the amounts are insignificant. For affiliates
we do not control but where significant influence over financial and operating policies exists, as typically evidenced by a voting control of 20% to 50%, the
investment is accounted for using the equity method.
Preparation of Financial Statements
The preparation of our consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the amounts reported and disclosed in our financial statements. Actual results may differ from the
estimates used in preparing our consolidated financial statements. All significant intercompany balances and transactions are eliminated in consolidation.
F-6