Carnival Cruises 2014 Annual Report Download - page 19

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Given the DLC arrangement, we believe that providing separate financial statements for each of Carnival
Corporation and Carnival plc would not present a true and fair view of the economic realities of their operations.
Accordingly, separate financial statements for both Carnival Corporation and Carnival plc have not been
presented.
NOTE 4 – Property and Equipment
Property and equipment consisted of the following (in millions):
November 30,
2014 2013
Ships, including ship improvements .......................................... $42,886 $ 42,367
Ships under construction .................................................. 533 535
43,419 42,902
Land, buildings and improvements, including leasehold improvements and port
facilities ............................................................. 1,088 971
Computer hardware and software, transportation equipment and other ............... 1,322 1,251
Total property and equipment .............................................. 45,829 45,124
Less accumulated depreciation and amortization ................................ (13,056) (12,219)
$ 32,773 (a) $ 32,905 (a)
(a) At November 30, 2014 and 2013, the net carrying values of ships and ships under construction for our North
America, EAA, Cruise Support and Tour and Other segments were $18.6 billion, $12.6 billion, $0.3 billion
and $0.1 billion and $18.3 billion, $13.2 billion, $0.3 billion and $0.1 billion, respectively.
Ships under construction include progress payments for the construction of new ships, as well as design and
engineering fees, capitalized interest, construction oversight costs and various owner supplied items. Capitalized
interest, substantially all included in our ships under construction, amounted to $21 million, $15 million and $17
million in 2014, 2013 and 2012, respectively.
Repairs and maintenance expenses, including minor improvement costs and dry-dock expenses, were $918
million, $954 million and $832 million in 2014, 2013 and 2012, respectively, and are substantially all included in
other ship operating expenses.
During 2012, we wrote-off the net carrying value of a ship related to the January 2012 ship incident and received
€395 million (or $508 million) of hull and machinery insurance proceeds for the total loss of the ship. As a result,
in 2012 we recognized €14 million (or $17 million) of proceeds in excess of the net carrying value of the ship as
a reduction of other ship operating expenses. In addition, during 2012 we incurred $28 million of January 2012
ship incident-related expenses, that were not covered by insurance and are principally included in other ship
operating expenses. See Note 7 for a discussion of loss contingencies related to the January 2012 ship incident.
See Note 10 for a discussion regarding ship sales and impairments.
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