Carnival Cruises 2009 Annual Report Download - page 29

have long-term credit ratings of A or above, and by diversifying our counterparties. In addition, we have
established guidelines regarding credit ratings and investment maturities that we follow to help maintain liquidity
and minimize risk. We normally do require collateral and/or guarantees to support notes receivable on significant
asset sales, long-term ship charters and new ship progress payments to shipyards. We do not currently anticipate
nonperformance by any of our significant counterparties.
We also monitor the creditworthiness of foreign travel agencies and tour operators to which we extend
credit in the normal course of our business. Concentrations of credit risk associated with these receivables are
considered minimal, primarily due to their short maturities and the large number of unrelated accounts within our
customer base. We have experienced only minimal credit losses on our trade receivables. We do not normally
require collateral or other security to support normal credit sales.
Finally, if the shipyard with which we have contracts to build our ships is unable to perform, we would be
required to perform under our foreign currency forwards and options related to these shipbuilding contracts.
Accordingly, if the shipyard is unable to perform we may have to discontinue the accounting for these currency
forwards and options as hedges. However, we believe that the risk of shipyard nonperformance is remote.
NOTE 11 – Segment Information
Our cruise segment includes all of our cruise brands, which have been aggregated as a single reportable
segment based on the similarity of their economic and other characteristics, including the products and services
they provide. Substantially all of our other segment represents the hotel, tour and transportation operation of
Holland America Princess Alaska Tours. 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 years ended November 30 was as follows (in millions):
Revenues(a)
Operating
expenses
Selling
and
adminis-
trative
Depreciation
and
amortization
Operating
income(loss)
Capital
expend-
itures
Total
assets
2009
Cruise ..................... $12,870 $7,868 $1,558 $1,274 $2,170 $3,355 $36,325
Other ...................... 427 376 32 35 (16) 25 510 (b)
Intersegment elimination ...... (140) (140)
$13,157 $8,104 $1,590 $1,309 $2,154 $3,380 $36,835
2008
Cruise ..................... $14,254 $8,746 $1,594 $1,213 $2,701 $3,321 $32,833
Other ...................... 561 462 35 36 28 32 567(b)
Intersegment elimination ...... (169) (169)
$14,646 $9,039 $1,629 $1,249 $2,729 $3,353 $33,400
2007
Cruise ..................... $12,638 $7,332 $1,547 $1,065 $2,694 $3,265 $33,602
Other ...................... 553 454 32 36 31 47 579(b)
Intersegment elimination ...... (158) (158)
$13,033 $7,628 $1,579 $1,101 $2,725 $3,312 $34,181
(a) A portion of other segment revenues include revenues for the cruise portion of a tour, when a cruise is sold
along with a land tour package by Holland America Princess Alaska Tours, and shore excursion and port
hospitality services provided to cruise guests by this tour company. These intersegment revenues, which are
included in full in the cruise segment, are eliminated directly against the other segment revenues and
operating expenses in the line “Intersegment elimination.”
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