Carnival Cruises 2015 Annual Report Download - page 40

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NOTE 12 – Segment Information
We have three reportable cruise segments that are comprised of our (1) North America cruise brands, (2) EAA
cruise brands and (3) Cruise Support. In addition, we have a Tour and Other segment. Our segments are reported
on the same basis as the internally reported information that is provided to our chief operating decision maker
(“CODM”), who is the President and Chief Executive Officer of Carnival Corporation and Carnival plc.
Decisions to allocate resources and assess performance for Carnival Corporation & plc are made by the CODM
upon review of the segment results across all of our cruise brands and other segments.
Our North America cruise segment includes Carnival Cruise Line, Holland America Line, Princess and
Seabourn. Our EAA cruise segment includes AIDA, Costa, Cunard, P&O Cruises (Australia), P&O Cruises (UK)
and prior to November 2014, Ibero. These individual cruise brand operating segments have been aggregated into
two reportable segments based on the similarity of their economic and other characteristics, including types of
customers, regulatory environment, maintenance requirements, supporting systems and processes and products
and services they provide. Our Cruise Support segment represents certain of our port and related facilities and
other services that are provided for the benefit of our cruise brands and Fathom’s pre-launch selling, general and
administrative expenses.
Our Tour and Other segment represents the hotel and transportation operations of Holland America Princess
Alaska Tours. In 2014, our Tour and Other segment also included one ship that we chartered to an unaffiliated
entity. In November 2014, we entered into a bareboat charter/sale agreement under which Grand Holiday was
chartered to an unrelated entity in January 2015 through March 2025. Additionally, in December 2014, we
entered into a bareboat charter/sale agreement under which Costa Celebration was chartered to an unrelated
entity in December 2014 through August 2021. Under these agreements, ownership of Grand Holiday and Costa
Celebration will be transferred to the buyer at the end of their lease term. Neither of these transactions met the
criteria to qualify as a sales-type lease and, accordingly, they are being accounted for as operating leases whereby
we recognize the charter revenue over the term of the agreements. Subsequent to entering into these agreements,
our Tour and Other segment includes these three ships. The significant accounting policies of our segments are
the same as those described in Note 2 – “Summary of Significant Accounting Policies.”
Selected information for our segments as of and for the years ended November 30 was as follows (in millions):
Revenues
Operating
costs and
expenses
Selling
and
administrative
Depreciation
and
amortization
Operating
income (loss)
Capital
expenditures
Total
assets
2015
North America Cruise Brands (a) .......... $ 9,866 $ 5,925 $1,140 $ 994 $1,807 $ 854 $22,420
EAA Cruise Brands ..................... 5,636 3,442 695 561 938 1,265 14,076
Cruise Support ......................... 119 58 223 27 (189) 162 2,248
Tour and Other (a) ...................... 226 155 9 44 18 13 493(b)
Intersegment elimination (a) .............. (133) (133) - - - - -
$15,714 $ 9,447 $2,067 $1,626 $2,574 $2,294 $39,237
2014
North America Cruise Brands (a) (c) ........ $ 9,559 $ 6,436 $1,121 $ 961 $1,041 $1,315 $22,681
EAA Cruise Brands ..................... 6,148 3,914 725 616 893 1,054 15,228
Cruise Support ......................... 90 39 200 25 (174) 156 1,023
Tour and Other (a) ...................... 215 160 8 35 12 58 516(b)
Intersegment elimination (a) .............. (128) (128) - - - - -
$15,884 $10,421 $2,054 $1,637 $1,772 $2,583 $39,448
2013
North America Cruise Brands (a) (c) ........ $ 9,370 $ 6,460 $1,048 $ 929 $ 933 $1,350 $22,386
EAA Cruise Brands ..................... 5,906 4,137 686 599 471 (d) 642 16,126
Cruise Support ......................... 96 31 136 26 (97) 108 1,016
Tour and Other (a) ...................... 210 143 9 36 22 49 514(b)
Intersegment elimination (a) .............. (126) (126) - - - - -
$15,456 $10,645 $1,879 $1,590 $1,329 $2,149 $40,042
(See next page for footnotes.)
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