Carnival Cruises 2007 Annual Report Download - page 12

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
CARNIVAL CORPORATION & PLC | 9
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 incorpo-
ration and by-laws and Carnival plc’s memorandum of associa-
tion and 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 accompanying consolidated financial statements
include the accounts of Carnival Corporation and Carnival plc
and their respective subsidiaries. Together with their consoli-
dated subsidiaries they are referred to collectively in these
consolidated financial statements and elsewhere in this 2007
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, 2007,
a summary by brand of our passenger capacity, the number of
cruise ships we operate, and the primary areas in which they
are marketed is as follows:
Passenger Number of Primary
Cruise Brands Capacity(a) Cruise Ships Market
Carnival Cruise Lines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,770 22 North America
Princess Cruises (“Princess”) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34,450 16 North America
Costa Cruises (“Costa”) ...................................... 23,196 12 Europe
Holland America Line . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,916 13 North America
P&O Cruises ............................................... 8,840 5 United Kingdom
Cunard Line (“Cunard”) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,360 3 United Kingdom and North America
AIDA Cruises (“AIDA”) ....................................... 5,762 4 Germany
P&O Cruises Australia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,070 3 Australia and New Zealand
Ocean Village .............................................. 3,286 2 United Kingdom
Ibero Cruises ............................................... 2,078 2 Spain
The Yachts of Seabourn (“Seabourn”) ........................... 624 3 North America
158,352 85
(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.