Carnival Cruises 2003 Annual Report Download - page 27

24 Carnival Corporation & plc
Our other segment represents the transportation, hotel and tour operations of Holland America Tours and Princess
Tours and the business to business travel agency operations of P&O Travel Ltd., the latter two since completion of
the DLC transaction on April 17, 2003. The significant accounting policies of our segments are the same as those
described in Note 2—“Summary of Significant Accounting Policies.” Information for our cruise and other segments
as of and for the year ended November 30, was as follows (in millions):
Selling
and Depreciation Operating Capital
Operating adminis- and income expend- Total
Revenues(a)(b) expenses trative amortization (loss) itures assets
2003
Cruise . . . . . . . . . . . . . . . . . . . . $6,459 $3,624 $896 $568 $1,371 $ 2,454 $24,090
Other . . . . . . . . . . . . . . . . . . . . 345 280 36 17 12 62 401(c)
Intersegment elimination . . . . . (86) (86)
$6,718 $3,818 $932 $585 $1,383 $ 2,516 $24,491
2002
Cruise(d) . . . . . . . . . . . . . . . . . . $4,244 $2,222 $577 $371 $1,055(c) $ 1,949 $12,120
Other . . . . . . . . . . . . . . . . . . . . 176 145 32 11 (13) 37 215(c)
Intersegment elimination . . . . . (37) (37)
$4,383 $2,330 $609 $382 $1,042 $ 1,986 $12,335
2001
Cruise(d) . . . . . . . . . . . . . . . . . . $4,371 $2,347 $584 $361 $ 946(e) $ 802 $11,375
Other . . . . . . . . . . . . . . . . . . . . 229 186 35 11 (10)(e) 25 189(c)
Affiliated operations(f) . . . . . . . . (44)
Intersegment elimination . . . . . (51) (51)
$4,549 $2,482 $619 $372 $ 892 $ 827 $11,564
(a) Other revenues included revenues for the cruise portion of a tour, when a cruise is sold along with a land tour package by
Holland America Tours and Princess Tours, and shore excursion and port hospitality services provided to cruise passengers by
these tour companies. These intersegment revenues are eliminated from other revenues in the line “Intersegment elimination.”
(b) Revenue amounts in 2002 and 2001 have been reclassified to conform to the 2003 presentation.
(c) Other assets primarily included hotels and lodges in Alaska and the Canadian Yukon, luxury dayboats offering tours to the glaciers
of Alaska and the Yukon River, motor coaches used for sightseeing and charters in the States of Washington and Alaska, British
Columbia, Canada and the Canadian Yukon and private, domed rail cars, which run on the Alaska Railroad between Anchorage
and Fairbanks.
(d) In 2003, we commenced allocating all corporate expenses to our cruise segment. Accordingly, the 2002 and 2001 presentations
have been restated to allocate the previously unallocated 2002 and 2001 corporate expenses and assets to our cruise segment.
(e) Cruise operating income included impairment charges of $20 million in 2002 and $134 million in 2001 and other operating loss
included an impairment charge of $6 million in 2001.
(f) On June 1, 2001, we sold our investment in Airtours. Accordingly, we did not record any equity in the earnings or losses of
Airtours after May 31, 2001.
Notes to Consolidated Financial Statements (continued)
Foreign revenues for our cruise brands represent sales
generated from outside the U.S. primarily by foreign tour
operators and foreign travel agencies. Substantially all of
these foreign revenues are from the UK, Italy, Germany,
Canada, France, Australia, Spain, Switzerland and Brazil.
Substantially all of our long-lived assets are located out-
side of the U.S. and consist principally of our goodwill,
trademarks, ships and ships under construction.
Revenue information by geographic area for fiscal
2003, 2002 and 2001 was as follows (in millions):
2003 2002 2001
U.S. . . . . . . . . . . . . . . . . . . . . $4,513 $3,304 $3,500
Foreign . . . . . . . . . . . . . . . . . 2,205 1,079 1,049
$6,718 $4,383 $4,549
Note 14—Benefit Plans
Stock Option Plans
We have stock option plans primarily for supervisory
and management level employees and members of
our Board of Directors. The Carnival Corporation and
Carnival plc plans are administered by a committee of
three of our directors (the “Committee”) which deter-
mines who is eligible to participate, the number of
shares for which options are to be granted and the
amounts that may be exercised within a specified term.
The Carnival Corporation and Carnival plc option exer-
cise price is generally set by the Committee at 100%
of the fair market value of the common stock/ordinary
shares on the date the option is granted. Substantially
all Carnival Corporation options granted during fiscal