June 27, 2024
RELEASE OF CARNIVAL CORPORATION & PLC JOINT QUARTERLY REPORT ON FORM 10-Q FOR THE
SECOND QUARTER OF 2024 AND CARNIVAL PLC GROUP HALF-YEARLY FINANCIAL REPORT
Carnival Corporation & plc announced its second quarter results of operations in its earnings release issued on June 25, 2024. Carnival Corporation & plc is hereby announcing that today it has filed its joint Quarterly Report on Form 10-Q ("Form 10-Q") with the U.S. Securities and Exchange Commission ("SEC") containing the Carnival Corporation & plc unaudited consolidated financial statements as of and for the three and six months ended May 31, 2024.
In addition, the Directors are today presenting in the attached Schedule A, the unaudited interim condensed financial statements for the Carnival plc Group ("Interim Financial Statements") as of and for the six months ended May 31, 2024. The Interim Financial Statements exclude the consolidated results of Carnival Corporation and are prepared under UK-adopted International Financial Reporting Standards.
Schedule B contains the Carnival Corporation & plc Form 10-Q which includes unaudited consolidated financial statements as of and for the three and six months ended May 31, 2024, management's discussion and analysis ("MD&A") of financial conditions and results of operations, and information on Carnival Corporation and Carnival plc's sales and purchases of their equity securities and use of proceeds from such sales. The information included in the Form 10-Q (Schedule B) has been prepared in accordance with SEC rules and regulations. The Carnival Corporation & plc unaudited consolidated financial statements contained in the Form 10-Q have been prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP").
The Directors consider that within the Carnival Corporation and Carnival plc dual listed company ("DLC") arrangement, the most appropriate presentation of Carnival plc's results and financial position is by reference to the Carnival Corporation & plc U.S. GAAP unaudited consolidated financial statements ("DLC Financial Statements").
These schedules (A & B) are presented together as Carnival plc's Group half-yearly financial report ("Interim Financial Report") in accordance with the requirements of the UK Disclosure Guidance and Transparency Rules of the Financial Conduct Authority.
MEDIA CONTACT | INVESTOR RELATIONS CONTACT |
Jody Venturoni | Beth Roberts |
001 469 797 6380 | 001 305 406 4832 |
The Form 10-Q is available for viewing on the SEC website at www.sec.govunder Carnival Corporation or Carnival plc or the Carnival Corporation & plc website at www.carnivalcorp.comor www.carnivalplc.com. A copy of the Form 10-Q and the Interim Financial Statements have been submitted to the National Storage Mechanism and will shortly be available for inspection at https://data.fca.org.uk/#/nsm/nationalstoragemechanism. Additional information can be obtained via Carnival Corporation & plc's website listed above or by writing to Carnival plc at Carnival House, 100 Harbour Parade, Southampton, SO15 1ST, United Kingdom.
Carnival Corporation & plc is the largest global cruise company, and among the largest leisure travel companies, with a portfolio of world-class cruise lines - AIDA Cruises, Carnival Cruise Line, Costa Cruises, Cunard, Holland America Line, P&O Cruises (Australia), P&O Cruises (UK), Princess Cruises, and Seabourn.
Additional information can be found on www.carnivalcorp.com, www.aida.de, www.carnival.com, www.costacruise.com, www.cunard.com, www.hollandamerica.com, www.pocruises.com.au, www.pocruises.com, www.princess.comand
www.seabourn.com. For more information on Carnival Corporation's industry-leading sustainability initiatives, visit
www.carnivalsustainability.com.
SCHEDULE A | ||||||
CARNIVAL PLC | ||||||
INTERIM CONDENSED GROUP STATEMENTS OF INCOME (LOSS) | ||||||
(UNAUDITED) | ||||||
(in millions, except per share data) | ||||||
Notes | Six Months Ended May 31, | |||||
2024 | 2023 | |||||
Revenues | ||||||
Passenger ticket | $ | 3,227 | $ | 2,495 | ||
Onboard and related | 1,121 | 896 | ||||
7 | 4,347 | 3,391 | ||||
Operating Expenses | ||||||
Commissions, transportation and related | 764 | 604 | ||||
Onboard and related | 271 | 213 | ||||
Payroll and related | 521 | 503 | ||||
Fuel | 458 | 446 | ||||
Food | 265 | 228 | ||||
Other operating | 933 | 863 | ||||
Cruise and tour operating expenses | 3,212 | 2,856 | ||||
Selling and administrative | 7 | 539 | 495 | |||
Depreciation and amortisation | 7 | 365 | 367 | |||
4,116 | 3,718 | |||||
Operating Income (Loss) | 232 | (327) | ||||
Nonoperating Income (Expense) | ||||||
Interest income | 29 | 6 | ||||
Loss from investments in associates | (5) | (25) | ||||
Interest expense, net of capitalised interest | (168) | (178) | ||||
Other income (expense), net | 29 | (26) | ||||
(116) | (224) | |||||
Income (Loss) Before Income Taxes | 116 | (550) | ||||
Income Tax Expense, Net | (1) | (12) | ||||
Net Income (Loss) | $ | 115 | $ | (563) | ||
Earnings (Loss) Per Share | ||||||
Basic | $ | 0.61 | $ | (3.02) | ||
Diluted | ||||||
$ | 0.61 | $ | (3.02) | |||
The accompanying notes are an integral part of these Interim Financial Statements.
These Interim Financial Statements only present the Carnival plc consolidated IFRS Interim Financial Statements and, accordingly, do not include the consolidated IFRS results of Carnival Corporation.
Within the DLC arrangement the most appropriate presentation of Carnival plc's results and financial position is considered to be by reference to the DLC Financial Statements.
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CARNIVAL PLC
INTERIM CONDENSED GROUP STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(UNAUDITED)
(in millions)
Six Months Ended May 31, | |||||
2024 | 2023 | ||||
Net Income (Loss) | $ | 115 | $ | (563) | |
Other Comprehensive Income (Loss) | |||||
Items that will not be reclassified through the Statements of Income (Loss) | |||||
Remeasurements of post-employment benefit obligations | (5) | (11) | |||
Items that may be reclassified through the Statements of Income (Loss) | |||||
Changes in foreign currency translation adjustment | (5) | 127 | |||
Other Comprehensive Income (Loss) | (10) | 116 | |||
Total Comprehensive Income (Loss) | $ | 104 | $ | (447) | |
The accompanying notes are an integral part of these Interim Financial Statements.
These Interim Financial Statements only present the Carnival plc consolidated IFRS Interim Financial Statements and, accordingly, do not include the consolidated IFRS results of Carnival Corporation.
Within the DLC arrangement the most appropriate presentation of Carnival plc's results and financial position is considered to be by reference to the DLC Financial Statements.
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CARNIVAL PLC
INTERIM CONDENSED GROUP BALANCE SHEETS
(UNAUDITED)
(in millions)
Notes | May 31, | November 30, | ||||
2024 | 2023 | |||||
ASSETS | ||||||
Current Assets | ||||||
Cash and cash equivalents | $ | 703 | $ | 1,363 | ||
Trade and other receivables, net | 235 | 303 | ||||
Inventories | 193 | 241 | ||||
Prepaid expenses and related | 238 | 269 | ||||
Total current assets | 1,368 | 2,176 | ||||
Property and Equipment, Net | 3 | 11,148 | 11,480 | |||
Right-of-Use Assets, Net | 556 | 623 | ||||
Investments in Associates | 80 | 85 | ||||
Other Assets | 4 | 210 | 324 | |||
$ | 13,362 | $ | 14,689 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
Current Liabilities | ||||||
Current portion of long-term debt | 5 | $ | 1,140 | $ | 1,040 | |
Current portion of lease liabilities | 138 | 134 | ||||
Accounts payable | 362 | 487 | ||||
Accrued liabilities and related | 624 | 622 | ||||
Customer deposits | 2 | 2,235 | 2,237 | |||
Amount owed to the Carnival Corporation group | 417 | 2,659 | ||||
Total current liabilities | 4,916 | 7,178 | ||||
Long-Term Debt | 5 | 6,926 | 6,043 | |||
Long-Term Lease Liabilities | 452 | 518 | ||||
Contingencies | 6 | 102 | 101 | |||
Other Long-Term Liabilities | 289 | 280 | ||||
Shareholders' Equity | ||||||
Share capital | 361 | 361 | ||||
Share premium | 1,143 | 1,143 | ||||
Retained earnings | 1,429 | 1,366 | ||||
Other reserves | (2,255) | (2,300) | ||||
Total shareholders' equity | 677 | 569 | ||||
$ | 13,362 | $ | 14,689 | |||
The accompanying notes are an integral part of these Interim Financial Statements.
These Interim Financial Statements only present the Carnival plc consolidated IFRS Interim Financial Statements and, accordingly, do not include the consolidated IFRS results of Carnival Corporation.
Within the DLC arrangement the most appropriate presentation of Carnival plc's results and financial position is considered to be by reference to the DLC Financial Statements.
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CARNIVAL PLC
INTERIM CONDENSED GROUP STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in millions)
Six Months Ended May 31, | |||||
2024 | 2023 | ||||
Restated* | |||||
OPERATING ACTIVITIES | |||||
Income (Loss) before income taxes | $ | 116 | $ | (550) | |
Adjustments to reconcile income (loss) before income taxes to net cash provided by | |||||
(used in) operating activities | |||||
Depreciation and amortisation | 365 | 367 | |||
Share-based compensation | 4 | 6 | |||
Interest expense, net | 147 | 180 | |||
(Income) loss from investments in associates | 5 | 25 | |||
Unrealized foreign currency exchange (gain) loss | (45) | 29 | |||
Other | 25 | 6 | |||
617 | 62 | ||||
Changes in operating assets and liabilities | |||||
Receivables | 48 | (35) | |||
Inventories | 43 | 23 | |||
Prepaid expenses and other assets | (2) | 79 | |||
Accounts payable | (80) | (67) | |||
Accrued liabilities, other and contingencies | (21) | (30) | |||
Customer deposits | 53 | 257 | |||
Cash provided by (used in) operations before interest, debt issuance costs and income | 659 | 290 | |||
taxes | |||||
Interest received | 29 | 6 | |||
Interest paid | (142) | (105) | |||
Debt issuance costs paid | (53) | (34) | |||
Income tax benefit received (paid), net | (6) | 1 | |||
Net cash provided by (used in) operating activities | 487 | 157 | |||
INVESTING ACTIVITIES | |||||
Purchases of property and equipment | (839) | (997) | |||
Proceeds from sales of ships | - | 32 | |||
Other | 103 | - | |||
Net cash provided by (used in) investing activities | (736) | (965) | |||
FINANCING ACTIVITIES | |||||
Payments to the Carnival Corporation group, net | (1,533) | 1,395 | |||
Principal repayments of long-term debt | (410) | (1,027) | |||
Proceeds from issuance of long-term debt | 1,581 | 830 | |||
Lease liabilities principal payments | (47) | (40) | |||
Net cash provided by (used in) financing activities | (409) | 1,158 | |||
Effect of exchange rate changes on cash and cash equivalents | (2) | (20) | |||
Net increase (decrease) in cash and cash equivalents | (660) | 330 | |||
Cash and cash equivalents at beginning of period | 1,363 | 251 | |||
Cash and cash equivalents at end of period | $ | 703 | $ | 582 | |
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*The Group statement of cash flows for the six months ended May 31, 2023 was restated. Refer to Note 1 - "General" for further details.
The accompanying notes are an integral part of these Interim Financial Statements.
These Interim Financial Statements only present the Carnival plc consolidated IFRS Interim Financial Statements and, accordingly, do not include the consolidated IFRS results of Carnival Corporation.
Within the DLC arrangement the most appropriate presentation of Carnival plc's results and financial position is considered to be by reference to the DLC Financial Statements.
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CARNIVAL PLC
INTERIM CONDENSED GROUP STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
(UNAUDITED)
(in millions)
Reserves | |||||||||||||||||||||||||||||
Cash | Total | ||||||||||||||||||||||||||||
Share | Share | Retained | Translation | Treasury | Other | Merger | shareholders | ||||||||||||||||||||||
flow | Total | (deficit)' | |||||||||||||||||||||||||||
capital | premium | earnings | reserve | hedges | shares | reserves | reserve | equity | |||||||||||||||||||||
At November 30, 2022 | $ | 361 | $ | 143 | $ | 1,175 | $ | (2,526) | $ | 22 | $ | (1,734) | $ | 116 | $ | 1,503 | $ | (2,619) | $ | (940) | |||||||||
Comprehensive income | |||||||||||||||||||||||||||||
(loss) | |||||||||||||||||||||||||||||
Net income (loss) | - | - | (563) | - | - | - | - | - | - | (563) | |||||||||||||||||||
Changes in foreign | |||||||||||||||||||||||||||||
currency translation | - | - | - | 127 | - | - | - | - | 127 | 127 | |||||||||||||||||||
adjustment | |||||||||||||||||||||||||||||
Remeasurements of | |||||||||||||||||||||||||||||
post-employment | - | - | (11) | - | - | - | - | - | - | (11) | |||||||||||||||||||
benefit obligations | |||||||||||||||||||||||||||||
Total comprehensive | - | - | (574) | 127 | - | - | - | - | 127 | (447) | |||||||||||||||||||
income | |||||||||||||||||||||||||||||
Issuance of ordinary | - | 1,000 | - | - | - | - | - | - | - | 1,000 | |||||||||||||||||||
share capital | |||||||||||||||||||||||||||||
Issuance of treasury | |||||||||||||||||||||||||||||
shares for vested | - | - | (41) | - | - | 41 | - | - | 41 | - | |||||||||||||||||||
share-based awards | |||||||||||||||||||||||||||||
Other, net (a) | - | - | - | - | - | (1) | 8 | - | 7 | 7 | |||||||||||||||||||
At May 31, 2023 | $ | 361 | $ | 1,143 | $ | 560 | $ | (2,399) | $ | 22 | $ | (1,694) | $ | 124 | $ | 1,503 | $ | (2,444) | $ | (380) | |||||||||
At November 30, 2023 | |||||||||||||||||||||||||||||
$ | 361 | $ | 1,143 | $ | 1,366 | $ | (2,258) | $ | 21 | $ | (1,694) | $ | 128 | $ | 1,503 | $ | (2,300) | $ | 569 | ||||||||||
Comprehensive income | |||||||||||||||||||||||||||||
(loss) | |||||||||||||||||||||||||||||
Net income (loss) | - | - | 115 | - | - | - | - | - | - | 115 | |||||||||||||||||||
Changes in foreign | |||||||||||||||||||||||||||||
currency translation | - | - | - | (5) | - | - | - | - | (5) | (5) | |||||||||||||||||||
adjustment | |||||||||||||||||||||||||||||
Remeasurements of | |||||||||||||||||||||||||||||
post-employment | - | - | (5) | - | - | - | - | - | - | (5) | |||||||||||||||||||
benefit obligations | |||||||||||||||||||||||||||||
Total comprehensive | - | - | 110 | (5) | - | - | - | - | (5) | 104 | |||||||||||||||||||
income (loss) | |||||||||||||||||||||||||||||
Issuance of treasury | |||||||||||||||||||||||||||||
shares for vested | - | - | (47) | - | - | 47 | - | - | 47 | - | |||||||||||||||||||
share-based awards | |||||||||||||||||||||||||||||
Other, net (a) | - | - | - | - | - | - | 3 | - | 3 | 4 | |||||||||||||||||||
At May 31, 2024 | $ | 361 | $ | 1,143 | $ | 1,429 | $ | (2,263) | $ | 21 | $ | (1,647) | $ | 131 | $ | 1,503 | $ | (2,255) | $ | 677 | |||||||||
(a) Includes equity settled share-based payments
The accompanying notes are an integral part of these Interim Financial Statements.
These Interim Financial Statements only present the Carnival plc consolidated IFRS Interim Financial Statements and, accordingly, do not include the consolidated IFRS results of Carnival Corporation.
Within the DLC arrangement the most appropriate presentation of Carnival plc's results and financial position is considered to be by reference to the DLC Financial Statements.
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CARNIVAL PLC
NOTES TO INTERIM CONDENSED GROUP FINANCIAL STATEMENTS
(UNAUDITED)
NOTE 1 - General
Description of Business
Carnival plc was incorporated in England and Wales in 2000 and is domiciled in the UK with its headquarters located at Carnival House, 100 Harbour Parade, Southampton, Hampshire, SO15 1ST, UK (registration number 04039524). Carnival plc and its subsidiaries and associates are referred to collectively in these Interim Financial Statements as the "Group," "our," "us" and "we".
Carnival Corporation & plc is the largest global cruise company, and among the largest leisure travel companies, with a portfolio of world-class cruise lines - AIDA Cruises, Carnival Cruise Line, Costa Cruises, Cunard, Holland America Line, P&O Cruises (Australia), P&O Cruises (UK), Princess Cruises, and Seabourn.
DLC Arrangement
Carnival Corporation and Carnival plc operate a dual listed company ("DLC") arrangement, whereby the businesses of Carnival Corporation and Carnival plc are combined through a number of contracts and provisions in Carnival Corporation's Articles of Incorporation and By-Laws and Carnival plc's Articles of Association. The two companies operate as a single economic enterprise with a single senior management team and identical Boards of Directors, 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. The Carnival plc American Depositary Shares are traded on the NYSE.
The constitutional documents of each company provide that, on most matters, the holders of the common equity of both companies effectively vote as a single body. The Equalization and Governance Agreement between Carnival Corporation and Carnival plc provides for the equalization of dividends and liquidation distributions based on an equalization ratio and contains provisions relating to the governance of the DLC arrangement. Because the equalization ratio is 1 to 1, one share of Carnival Corporation common stock and one Carnival plc ordinary share are generally entitled to the same distributions.
Under deeds of guarantee executed in connection with the DLC arrangement, as well as stand-alone guarantees executed since that time, each of Carnival Corporation and Carnival plc have effectively cross guaranteed all indebtedness and certain other monetary obligations of each other. Once the written demand is made, the holders of indebtedness or other obligations may immediately commence an action against the relevant guarantor.
Under the terms of the DLC arrangement, Carnival Corporation and Carnival plc are permitted to transfer assets between the companies, make loans to or investments in each other and otherwise enter into intercompany transactions. In addition, the cash flows and assets of one company are required to be used to pay the obligations of the other company, if necessary.
The Boards of Directors consider that, within the DLC arrangement, the most appropriate presentation of Carnival plc's results and financial position is by reference to the U.S. generally accepted accounting principles ("U.S. GAAP") DLC Financial Statements because all significant financial and operating decisions affecting the DLC companies are made on a joint basis to optimize the consolidated performance as a single economic entity. Accordingly, the DLC Financial Statements for the three and six months ended May 31, 2024 are provided to shareholders as supplementary information, which are included in Schedule B, but do not form part of these Carnival plc interim financial statements.
Going Concern
The assessment of liquidity, financial conditions and capital resources within Schedule B indicates that Carnival Corporation & plc has sufficient liquidity to meet its commitments and obligations for at least 12 months from the date of the report. In light of these circumstances, the Board of Directors of the Group have a reasonable expectation that Carnival Corporation & plc has adequate resources to continue its operational existence and continue to adopt the going concern basis of preparing the Carnival plc Interim Financial Statements.
Basis of Preparation
The Carnival plc Interim financial statements are presented in U.S. dollars unless otherwise noted and are prepared on the historical cost basis. These Interim Financial Statements are required to satisfy reporting requirements of the United Kingdom's
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Financial Conduct Authority ("FCA") and do not include the consolidated results and financial position of Carnival Corporation and its subsidiaries. These Interim Financial Statements have been prepared in accordance with the Disclosure Guidance and Transparency Rules of the FCA and with International Accounting Standard 34 "Interim Financial Reporting" as adopted by the UK ("IAS 34"). The Interim Financial Statements should be read in conjunction with the audited annual financial statements for the year ended November 30, 2023, which were prepared in accordance with UK-adopted International Financial Reporting Standards ("IFRS").
Prior Period Cash Flow Restatement
The Group statement of cash flows for the six months ended May 31, 2023 was restated to correct the presentation of:
- Unrealized foreign currency exchange gains as an adjustment to reconcile income (loss) before income taxes to net cash provided by (used in) operating activities.
- Debt issuance costs, which are now presented within operating activities and were previously presented as financing activities.
May 31, 2023 | |||||||||||
Unrealized | |||||||||||
As previously | foreign | Debt issuance | |||||||||
(in millions) | currency | Restated | |||||||||
stated | exchange | costs | |||||||||
Operating Activities | |||||||||||
Unrealized foreign currency exchange (gain) loss | $ | - | $ | 29 | $ | - | $ | 29 | |||
Receivables | $ | (29) | $ | (6) | $ | - | $ | (35) | |||
Accrued liabilities, and other contingencies | $ | (29) | $ | (1) | $ | - | $ | (30) | |||
Customer deposits | $ | 251 | $ | 6 | $ | - | $ | 257 | |||
Debt issuance costs paid | $ | - | $ | - | $ | (34) | $ | (34) | |||
Net cash provided by (used in) operating | $ | 164 | $ | 28 | $ | (34) | $ | 157 | |||
activities | |||||||||||
Financing Activities | |||||||||||
Payments to the Carnival Corporation group, net | $ | 1,406 | $ | (11) | $ | - | $ | 1,395 | |||
Debt issuance costs | $ | (34) | $ | - | $ | 34 | $ | - | |||
Net cash provided by (used in) financing | $ | 1,135 | $ | (11) | $ | 34 | $ | 1,158 | |||
activities | |||||||||||
Effect of exchange rate changes on cash and cash | $ | (4) | $ | (16) | $ | - | $ | (20) | |||
equivalents |
Status of Financial Statements
Our Interim Financial Statements for the six months ended May 31, 2024 have not been audited or reviewed by the auditors.
Our Interim Financial Statements do not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006 Act. Statutory accounts for the year ended November 30, 2023 were approved by the Boards of Directors on January 26, 2024 and delivered to the Registrar of Companies. The report of the auditors on those accounts was (i) unqualified, (ii) did not contain a material uncertainty related to going concern and (iii) did not contain any statement under section 498 of the 2006 Act.
Use of Estimates and Risks and Uncertainty
The preparation of our Interim Financial Statements in conformity with IFRS as adopted in the UK requires management to make judgements, estimates and assumptions that affect the application of policies and reported and disclosed amounts in these financial statements. The estimates and underlying assumptions are based on historical experience and various other factors that we believe to be reasonable under the circumstances and form the basis of making judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from the estimates used in preparing these Interim Financial Statements.
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Significant accounting estimates, assumptions and judgements are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods. For a detailed discussion of our significant accounting estimates, assumptions and judgements refer to Note 2 - Significant Accounting Policies included in our 2023 Carnival plc Annual Report.
Accounting Pronouncements
The International Accounting Standards Board ("IASB") has issued amendments to the standard, IAS 1, Presentation of Financial Statements - Classification of Liabilities as Current or Non-current, providing a more general approach to the classification of liabilities based on the contractual agreements in place at the reporting date. These amendments are required to be adopted by us for the financial year commencing on December 1, 2024 and must be applied retrospectively. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.
The IASB has issued amendments to the standards, IAS 7, Statement of Cash Flows and IFRS 7, Financial Instruments: Disclosures titled Supplier Finance Arrangements. These amendments require that an entity disclose information about its supplier finance arrangements that enables users of financial statements to assess the effects of those arrangements on the entity's liabilities and cash flows and the entity's exposure to liquidity risk. These amendments are required to be adopted by us for the financial year commencing on December 1, 2024. We are currently evaluating the impact of these amendments on the disclosures to our consolidated financial statements.
NOTE 2 - Revenue and Expense Recognition
Guest cruise deposits and advance onboard purchases are initially included in customer deposits when received. Customer deposits are subsequently recognized as cruise revenues, together with revenues from onboard and other activities, and all associated direct costs and expenses of a voyage are recognized as cruise costs and expenses, upon completion of voyages with durations of ten nights or less and on a pro rata basis for voyages in excess of ten nights. The impact of recognizing these shorter duration cruise revenues and costs and expenses on a completed voyage basis versus on a pro rata basis is not material. Certain of our product offerings are bundled and we allocate the value of the bundled services and goods between passenger ticket revenues and onboard and related revenues based upon the estimated standalone selling prices of those goods and services. Guest cancellation fees, when applicable, are recognized in passenger ticket revenues at the time of cancellation.
Our sales to guests of air and other transportation to and from airports near the home ports of our ships are included in passenger ticket revenues, and the related costs of purchasing these services are included in transportation costs. The proceeds that we collect from the sales of third-party shore excursions are included in onboard and related revenues and the related costs are included in onboard and related costs. The amounts collected on behalf of our onboard concessionaires, net of the amounts remitted to them, are included in onboard and related revenues as concession revenues. All of these amounts are recognized on a completed voyage or pro rata basis as discussed above.
Revenues and expenses from our hotel and transportation operations, which are included in our Tour and Other segment, are recognized at the time the services are performed.
Customer Deposits
Our payment terms generally require an initial deposit to confirm a reservation, with the balance due prior to the voyage. Cash received from guests in advance of the cruise is recorded in customer deposits and in other long-term liabilities on our Consolidated Balance Sheets. These amounts include refundable deposits. We had total customer deposits of $2.4 billion as of May 31, 2024 and November 30, 2023. During the six months ended May 31, 2024 and 2023, we recognized revenues of $1.8 billion and $1.3 billion related to our customer deposits as of November 30, 2023 and 2022. Our customer deposits balance changes due to the seasonal nature of cash collections, which typically results from higher ticket prices and occupancy levels during the third quarter, the recognition of revenue, refunds of customer deposits and foreign currency changes.
Trade and Other Receivables
Although we generally require full payment from our customers prior to or concurrently with their cruise, we grant credit terms to a relatively small portion of our revenue source. We have receivables from credit card merchants and travel agents for cruise ticket purchases and onboard revenue. These receivables are included within trade and other receivables, net and are less allowances for expected credit losses.
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Carnival plc published this content on 27 June 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 June 2024 20:30:45 UTC.