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General
6 Months Ended
May. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
General
General

The 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 joint Quarterly Report on Form 10-Q as “Carnival Corporation & plc,” “our,” “us” and “we.”

Basis of Presentation
The Consolidated Balance Sheet at May 31, 2015, the Consolidated Statements of Income and the Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended May 31, 2015 and 2014 and the Consolidated Statements of Cash Flows for the six months ended May 31, 2015 and 2014 are unaudited and, in the opinion of our management, contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation. Our interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the related notes included in the Carnival Corporation & plc 2014 joint Annual Report on Form 10-K (“Form 10-K”) filed with the U.S. Securities and Exchange Commission on January 29, 2015. Our operations are seasonal and results for interim periods are not necessarily indicative of the results for the entire year.

Revision of Prior Period Financial Statements

In the first quarter of 2015, we revised and corrected the accounting for one of our brands' marine and technical spare parts in order to consistently expense and classify them fleetwide. We evaluated the materiality of this revision and concluded that it was not material to any of our previously issued financial statements. However, had we not revised, this accounting may have resulted in material inconsistencies to our financial statements in the future. Accordingly, we revised previously reported results for the three months ended February 28, 2014 and as of November 30, 2014 in our Form 10-Q for the quarter ended February 28, 2015. In addition, we revised previously reported results for the three and six months ended May 31, 2014 in this Form 10-Q. We will revise all other previously reported results as such financial information is included in future filings.

The effects of this revision on our Consolidated Statements of Income were as follows (in millions, except per share data):
 
Three Months Ended May 31, 2014
 
Six Months Ended May 31, 2014
 
As Previously
Reported
 
Adjustment
 
As
Revised
 
As Previously
 Reported
 
Adjustment
 
As
Revised
Other ship operating
$
635

 
$
7

 
$
642

 
$
1,226

 
$
12

 
$
1,238

Depreciation and amortization
$
409

 
$
1

 
$
410

 
$
814

 
$
1

 
$
815

Operating income
$
155

 
$
(8
)
 
$
147

 
$
227

 
$
(13
)
 
$
214

Income before income taxes
$
107

 
$
(8
)
 
$
99

 
$
93

 
$
(13
)
 
$
80

Net income
$
106

 
$
(8
)
 
$
98

 
$
91

 
$
(13
)
 
$
78

Earnings per share
 
 
 
 
 
 
 
 
 
 
 
     Basic
$
0.14

 
$
(0.01
)
 
$
0.13

 
$
0.12

 
$
(0.02
)
 
$
0.10

     Diluted
$
0.14

 
$
(0.01
)
 
$
0.13

 
$
0.12

 
$
(0.02
)
 
$
0.10


The effects of this revision on our Consolidated Statements of Comprehensive Income were as follows (in millions):
 
Three Months Ended May 31, 2014
 
Six Months Ended May 31, 2014
 
As Previously
Reported
 
Adjustment
 
As
Revised
 
As Previously Reported
 
Adjustment
 
As
Revised
Net income
$
106

 
$
(8
)
 
$
98

 
$
91

 
$
(13
)
 
$
78

Total comprehensive income
$
76

 
$
(8
)
 
$
68

 
$
173

 
$
(13
)
 
$
160






The effects of this revision on our Consolidated Balance Sheet were as follows (in millions):
 
November 30, 2014
 
As Previously
Reported
 
Adjustment
 
As
Revised
Inventories
$
364

 
$
(15
)
 
$
349

Total current assets
$
1,503

 
$
(15
)
 
$
1,488

Property and equipment, net
$
32,773

 
$
46

 
$
32,819

Other assets
$
859

 
$
(115
)
 
$
744

Total assets
$
39,532

 
$
(84
)
 
$
39,448

Retained earnings
$
19,242

 
$
(84
)
(a)
$
19,158

Total shareholders' equity
$
24,288

 
$
(84
)
 
$
24,204

Total liabilities and shareholders' equity
$
39,532

 
$
(84
)
 
$
39,448


(a) As of November 30, 2014, the cumulative impact of this revision was an $84 million reduction in retained earnings. The diluted earnings per share decreases were $0.03 for each of 2014 and 2013, $0.02 for 2012, $0.03 for pre-2010 and $0.11 in the aggregate. There was no annual diluted earnings per share impact for 2011 and 2010.

This non-cash revision did not impact our operating cash flows for any period. The effects of this revision on the individual line items within operating cash flows on our Consolidated Statement of Cash Flows were as follows (in millions):
 
Six Months Ended May 31, 2014
 
As Previously
Reported
 
Adjustment
 
As
Revised
Net income
$
91

 
$
(13
)
 
$
78

Depreciation and amortization
$
814

 
$
1

 
$
815

Inventories
$
(8
)
 
$
(1
)
 
$
(9
)
Insurance recoverables, prepaid expenses and other
$
201

 
$
15

 
$
216

Claims reserves and accrued and other liabilities
$
(219
)
 
$
(2
)
 
$
(221
)


Other

Cruise passenger ticket revenues include fees, taxes and charges collected by us from our guests. The portion of these fees, taxes and charges included in passenger ticket revenues and commissions, transportation and other costs were $123 million and $125 million and $257 million and $262 million for the three and six months ended May 31, 2015 and 2014, respectively.

During the three and six months ended May 31, 2015 and 2014, repairs and maintenance expenses, including minor improvement costs and dry-dock expenses, were $352 million and $274 million and $603 million and $526 million, respectively, and are substantially all included in other ship operating expenses.

Accounting Pronouncement

In 2014, amended guidance was issued by the Financial Accounting Standards Board regarding the accounting for service concession arrangements. The new guidance defines a service concession as an arrangement between a public-sector grantor, such as a port authority, and a company that will operate and maintain the grantor's infrastructure for a specified period of time. In exchange, the company may be given a right to charge the public, such as our cruise guests, for the use of the infrastructure. The guidance will prohibit us from recording the infrastructure we have constructed to be used by us pursuant to the service concession arrangement within property and equipment. This guidance is required to be adopted by us in the first quarter of 2016 on a modified retrospective basis, however, early adoption is permitted. The adoption of this guidance will not have a material impact to our consolidated financial statements.