Carnival Cruises 2014 Annual Report Download - page 38

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We also monitor the creditworthiness of travel agencies and tour operators in Asia, Australia and Europe and
credit and debit card providers to which we extend credit in the normal course of our business, which includes
charter-hire agreements in Asia prior to sailing. Our credit exposure also includes contingent obligations related
to cash payments received directly by travel agents and tour operators for cash collected by them on cruise sales
in Australia and most of Europe where we are obligated to honor our guests’ cruise payments made by them to
their travel agents and tour operators regardless of whether we have received these payments. Concentrations of
credit risk associated with these receivables, charter-hire agreements and contingent obligations are not
considered to be material, primarily due to the large number of unrelated accounts within our customer base, the
amount of these contingent obligations and their short maturities. We have experienced only minimal credit
losses on our trade receivables and related contingent obligations. We do not normally require collateral or other
security to support normal credit sales.
NOTE 11 – Segment Information
We have three reportable cruise segments that are comprised of our (1) North America cruise brands, (2) EAA
cruise brands and (3) Cruise Support. In addition, we have a Tour and Other segment. Our segments are reported
on the same basis as the internally reported information that is provided to our chief operating decision maker
(“CODM”), who is the President and Chief Executive Officer of Carnival Corporation and Carnival plc.
Decisions to allocate resources and assess performance for Carnival Corporation & plc are made by the CODM
upon review of the segment results across all of our cruise brands and other segments.
Our North America cruise segment includes Carnival Cruise Line, Holland America Line, Princess and
Seabourn. Our EAA cruise segment includes AIDA, Costa, Cunard, P&O Cruises (Australia), P&O Cruises (UK)
and prior to November 2014, Ibero. These individual cruise brand operating segments have been aggregated into
two reportable segments based on the similarity of their economic and other characteristics, including types of
customers, regulatory environment, ship maintenance requirements, supporting systems and processes and
products and services they provide. Our Cruise Support segment represents certain of our port and related
facilities and other services that are provided for the benefit of our cruise brands. Our Tour and Other segment
represents the hotel and transportation operations of Holland America Princess Alaska Tours. In 2012, our Tour
and Other segment also included two ships that we chartered to an unaffiliated entity. In April 2013, we sold one
of these two ships and recognized a $15 million gain as a reduction of Tour and Other operating expenses.
Accordingly, subsequent to this 2013 sale and through November 30, 2014, our Tour and Other segment included
only one ship. The significant accounting policies of our segments are the same as those described in Note
2 – “Summary of Significant Accounting Policies.”
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