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Carnival฀Corporation฀&฀plc฀|฀page฀9
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฀memorandum฀฀
of฀association฀and฀articles฀of฀association.฀Although฀the฀two฀
companies฀have฀retained฀their฀separate฀legal฀identities฀they฀
operate฀as฀if฀they฀were฀a฀single฀economic฀enterprise.฀Each฀
company’s฀shares฀continue฀to฀be฀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฀(“ADSs”)฀are฀traded฀
on฀the฀NYSE.฀See฀Note฀3.
The฀accompanying฀consolidated฀financial฀statements฀include฀
the฀accounts฀of฀Carnival฀Corporation฀and฀Carnival฀plc฀and฀their฀
respective฀subsidiaries.฀Together฀with฀their฀consolidated฀sub-
sidiaries฀they฀are฀referred฀to฀collectively฀in฀these฀consolidated฀
financial฀statements฀and฀elsewhere฀in฀this฀2006฀Annual฀Report฀
as฀“Carnival฀Corporation฀&฀plc,”฀“our,”฀“us,”฀and฀“we.”
We฀are฀the฀largest฀cruise฀company฀and฀one฀of฀the฀largest฀
vacation฀companies฀in฀the฀world.฀As฀of฀November฀30,฀2006,฀a฀
summary฀of฀the฀number฀of฀cruise฀ships฀we฀operate,฀by฀brand,฀
their฀passenger฀capacity฀and฀the฀primary฀areas฀in฀which฀they฀
are฀marketed฀is฀as฀follows:
Number฀of Passenger Primary
Cruise฀Brands Cruise฀Ships Capacity(a) Market
Carnival฀Cruise฀Lines ฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀. 21 47,818 North฀America
Princess฀Cruises฀(“Princess”) ฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀. 15 32,232 North฀America
Costa฀Cruises฀(“Costa”)฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀. 11 20,218 Europe
Holland฀America฀Line฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀. 13 18,848 North฀America
P&O฀Cruises฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀. 5 8,840 United฀Kingdom
AIDA฀Cruises฀(“AIDA”)฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀. 4 5,378 Germany
Cunard฀Line฀(“Cunard”) ฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀. 2 4,380 North฀America฀and฀United฀Kingdom
P&O฀Cruises฀Australia ฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀. 2 2,474 Australia฀and฀New฀Zealand
Ocean฀Village ฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀. 1 1,578 United฀Kingdom
Swan฀Hellenic฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀. 1 678 United฀Kingdom
Seabourn฀Cruise฀Line฀(“Seabourn”)฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀. 3 624 North฀America
Windstar฀Cruises ฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀.฀. 3 ฀ 608 North฀America
81 ฀ 143,676
(a)฀฀In฀accordance฀with฀cruise฀industry฀practice,฀passenger฀capacity฀is฀calculated฀based฀on฀two฀passengers฀per฀cabin฀even฀though฀some฀cabins฀can฀accommodate฀
three฀or฀more฀passengers.
Preparation฀of฀Financial฀Statements
The฀preparation฀of฀our฀consolidated฀financial฀statements฀in฀
accordance฀with฀accounting฀principles฀generally฀accepted฀in฀
the฀United฀States฀of฀America฀requires฀us฀to฀make฀estimates฀
and฀assumptions฀that฀affect฀the฀amounts฀reported฀and฀dis-
closed฀in฀our฀financial฀statements.฀Actual฀results฀could฀differ฀
from฀these฀estimates.฀All฀significant฀intercompany฀balances฀
and฀transactions฀are฀eliminated฀in฀consolidation.