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General | 9 Months Ended
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Aug. 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 August 31, 2015, the Consolidated Statements of Income and the Consolidated Statements of Comprehensive Income for the three and nine months ended August 31, 2015 and 2014 and the Consolidated Statements of Cash Flows for the nine months ended August 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 periods included in our Form 10-Q for the quarters ended February 28, 2015, May 31, 2015 and August 31, 2015. We will revise all other previously reported periods 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 August 31, 2014 |  | Nine Months Ended August 31, 2014
| As Previously Reported |  | Adjustment |  | As Revised |  | As Previously Reported |  | Adjustment |  | As Revised
Other ship operating | $ | 599 |  |  | $ | 6 |  |  | $ | 605 |  |  | $ | 1,825 |  |  | $ | 17 |  |  | $ | 1,842 |
Depreciation and amortization | $ | 414 |  |  | $ | — |  |  | $ | 414 |  |  | $ | 1,227 |  |  | $ | 2 |  |  | $ | 1,229 |
Operating income | $ | 1,298 |  |  | $ | (6 | ) |  | $ | 1,292 |  |  | $ | 1,525 |  |  | $ | (19 | ) |  | $ | 1,506 |
Income before income taxes | $ | 1,247 |  |  | $ | (6 | ) |  | $ | 1,241 |  |  | $ | 1,340 |  |  | $ | (19 | ) |  | $ | 1,321 |
Net income | $ | 1,247 |  |  | $ | (6 | ) |  | $ | 1,241 |  |  | $ | 1,338 |  |  | $ | (19 | ) |  | $ | 1,319 |
Earnings per share |  |  |  |  |  |  |  |  |  |  |
Basic | $ | 1.61 |  |  | $ | (0.01 | ) |  | $ | 1.60 |  |  | $ | 1.72 |  |  | $ | (0.02 | ) |  | $ | 1.70 |
Diluted | $ | 1.60 |  |  | $ | — |  |  | $ | 1.60 |  |  | $ | 1.72 |  |  | $ | (0.02 | ) |  | $ | 1.70 |
The effects of this revision on our Consolidated Statements of Comprehensive Income were as follows (in millions):
| Three Months Ended August 31, 2014 |  | Nine Months Ended August 31, 2014
| As Previously Reported |  | Adjustment |  | As Revised |  | As Previously Reported |  | Adjustment |  | As Revised
Net income | $ | 1,247 |  |  | $ | (6 | ) |  | $ | 1,241 |  |  | $ | 1,338 |  |  | $ | (19 | ) |  | $ | 1,319 |
Total comprehensive income | $ | 976 |  |  | $ | (6 | ) |  | $ | 970 |  |  | $ | 1,149 |  |  | $ | (19 | ) |  | $ | 1,130 |
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):
| Nine Months Ended August 31, 2014
| As Previously Reported |  | Adjustment |  | As Revised
Net income | $ | 1,338 |  |  | $ | (19 | ) |  | $ | 1,319 |
Depreciation and amortization | $ | 1,227 |  |  | $ | 2 |  |  | $ | 1,229 |
Inventories | $ | 15 |  |  | $ | — |  |  | $ | 15 |
Insurance recoverables, prepaid expenses and other | $ | 402 |  |  | $ | 19 |  |  | $ | 421 |
Claims reserves and accrued and other liabilities | $ | (379 | ) |  | $ | (2 | ) |  | $ | (381 | )
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 $141 million and $146 million and $398 million and $407 million for the three and nine months ended August 31, 2015 and 2014, respectively. During the three and nine months ended August 31, 2015 and 2014, repairs and maintenance expenses, including minor improvement costs and dry-dock expenses, were $184 million and $186 million and $786 million and $712 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. This 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. We are required to adopt this guidance in the first quarter of 2016 on a modified retrospective basis. Early adoption, however, is permitted. The adoption of this guidance will not have a material impact to our consolidated financial statements.

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