Carnival Cruises 2008 Annual Report Download - page 64

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F-5
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 memorandum of association 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
consolidated subsidiaries they are referred to collectively in these consolidated financial
statements and elsewhere in this 2008 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, 2008, 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 Brand Capacity(a) Cruise Ships Market
Carnival Cruise Lines 52,286 22 North America
Princess Cruises ("Princess") 37,532 17 North America
Costa Cruises ("Costa") 23,196 12 Europe
Holland America Line 21,088 14 North America
P&O Cruises 11,998 6 United Kingdom
AIDA Cruises ("AIDA") 7,812 5 Germany
Cunard Line ("Cunard") 4,572 2 United Kingdom and North America
Ibero Cruises ("Ibero") 3,570 3 Spain and Brazil
Ocean Village(b) 3,286 2 United Kingdom
P&O Cruises Australia 3,076 2 Australia and New Zealand
The Yachts of Seabourn ("Seabourn") 624 3 North America
169,040 88
(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.
(b) The Ocean Village brand will be phased-out with the transfer of its ships to P&O
Cruises Australia in November 2009 and November 2010.
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 disclosed in our financial statements.
Actual results could differ from these estimates. All significant intercompany balances and
transactions are eliminated in consolidation.