Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Feb. 28, 2015 | Mar. 27, 2015 | |
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 28-Feb-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Registrant Name | CARNIVAL CORP | |
Entity Central Index Key | 815097 | |
Entity Common Stock, Shares Outstanding | 593,428,395 | |
CARNIVAL PLC | ||
Entity Registrant Name | CARNIVAL PLC | |
Entity Central Index Key | 1125259 | |
Entity Common Stock, Shares Outstanding | 216,118,073 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 |
Cruise | ||
Passenger tickets | $2,632 | $2,727 |
Onboard and other | 889 | 850 |
Tour and other | 10 | 8 |
Revenues | 3,531 | 3,585 |
Cruise | ||
Commissions, transportation and other | 586 | 620 |
Onboard and other | 111 | 114 |
Payroll and related | 467 | 481 |
Fuel | 318 | 523 |
Food | 239 | 245 |
Other ship operating | 598 | 594 |
Tour and other | 16 | 15 |
Operating expenses | 2,335 | 2,592 |
Selling and administrative | 529 | 521 |
Depreciation and amortization | 401 | 405 |
Costs and Expenses | 3,265 | 3,518 |
Operating Income | 266 | 67 |
Nonoperating (Expense) Income | ||
Interest income | 2 | 2 |
Interest expense, net of capitalized interest | -57 | -72 |
Losses on fuel derivatives, net | -169 | -16 |
Other income, net | 10 | 0 |
Nonoperating (Expense) Income, Total | -214 | -86 |
Income (Loss) Before Income Taxes | 52 | -19 |
Income Tax Expense, Net | -3 | -1 |
Net Income (Loss) | $49 | ($20) |
Earnings (Loss) Per Share | ||
Basic (in dollars per share) | $0.06 | ($0.03) |
Diluted (in dollars per share) | $0.06 | ($0.03) |
Dividends Declared Per Share (in dollars per share) | $0.25 | $0.25 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive (Loss) Income (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Net Income (Loss) | $49 | ($20) |
Items Included in Other Comprehensive (Loss) Income | ||
Change in foreign currency translation adjustment | -683 | 116 |
Other | -40 | -4 |
Other Comprehensive (Loss) Income | -723 | 112 |
Total Comprehensive (Loss) Income | ($674) | $92 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Feb. 28, 2015 | Nov. 30, 2014 |
In Millions, unless otherwise specified | ||
Current Assets | ||
Cash and cash equivalents | $280 | $331 |
Trade and other receivables, net | 329 | 332 |
Insurance recoverables | 163 | 154 |
Inventories | 332 | 349 |
Prepaid expenses and other | 322 | 322 |
Total current assets | 1,426 | 1,488 |
Property and Equipment, Net | 32,294 | 32,819 |
Goodwill | 3,055 | 3,127 |
Other Intangibles | 1,252 | 1,270 |
Other Assets | 687 | 744 |
Total assets | 38,714 | 39,448 |
Current Liabilities | ||
Short-term borrowings | 874 | 666 |
Current portion of long-term debt | 1,321 | 1,059 |
Accounts payable | 594 | 626 |
Claims reserve | 278 | 262 |
Accrued liabilities and other | 1,198 | 1,276 |
Customer deposits | 3,147 | 3,032 |
Total current liabilities | 7,412 | 6,921 |
Long-Term Debt | 6,944 | 7,363 |
Other Long-Term Liabilities | 1,008 | 960 |
Contingencies | ||
Shareholders’ Equity | ||
Additional paid-in capital | 8,398 | 8,384 |
Retained earnings | 19,013 | 19,158 |
Accumulated other comprehensive loss | -1,339 | -616 |
Treasury stock, 59 shares at 2015 and 2014 of Carnival Corporation and 32 shares at 2015 and 2014 of Carnival plc, at cost | -3,087 | -3,087 |
Total shareholders’ equity | 23,350 | 24,204 |
Liabilities and Equity, Total | 38,714 | 39,448 |
Common Stock | ||
Shareholders’ Equity | ||
Common stock | 7 | 7 |
Ordinary Shares | ||
Shareholders’ Equity | ||
Common stock | $358 | $358 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Feb. 28, 2015 | Nov. 30, 2014 |
Common Stock | ||
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 1,960,000,000 | 1,960,000,000 |
Common stock, shares issued | 653,000,000 | 652,000,000 |
Treasury stock, shares | 59,000,000 | 59,000,000 |
Ordinary Shares | ||
Common stock, par value (in dollars per share) | $1.66 | $1.66 |
Common stock, shares issued | 216,000,000 | 216,000,000 |
Treasury stock, shares | 32,000,000 | 32,000,000 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 |
OPERATING ACTIVITIES | ||
Net Income (Loss) | $49 | ($20) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities | ||
Depreciation and amortization | 401 | 405 |
Losses on fuel derivatives, net | 169 | 16 |
Share-based compensation | 11 | 13 |
Other, net | 4 | 5 |
Changes in operating assets and liabilities | ||
Receivables | -21 | 146 |
Inventories | 7 | -9 |
Insurance recoverables, prepaid expenses and other | 20 | 114 |
Accounts payable | 6 | -88 |
Claims reserves and accrued and other liabilities | -35 | -128 |
Customer deposits | 160 | 23 |
Net cash provided by operating activities | 771 | 477 |
INVESTING ACTIVITIES | ||
Additions to property and equipment | -942 | -353 |
(Payments) receipts of fuel derivative settlements | -42 | 1 |
Other, net | 10 | 3 |
Net cash used in investing activities | -974 | -349 |
FINANCING ACTIVITIES | ||
Proceeds from short-term borrowings, net | 210 | 344 |
Principal repayments of long-term debt | -336 | -312 |
Proceeds from issuance of long-term debt | 472 | 0 |
Dividends paid | -194 | -194 |
Other, net | -1 | 0 |
Net cash provided by (used in) financing activities | 151 | -162 |
Effect of exchange rate changes on cash and cash equivalents | 1 | -7 |
Net decrease in cash and cash equivalents | -51 | -41 |
Cash and cash equivalents at beginning of period | 331 | 462 |
Cash and cash equivalents at end of period | $280 | $421 |
General
General | 3 Months Ended | |||||||||||
Feb. 28, 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 February 28, 2015 and the Consolidated Statements of Operations, the Consolidated Statements of Comprehensive (Loss) Income and the Consolidated Statements of Cash Flows for the three months ended February 28, 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 will revise all other previously reported results in future filings. | ||||||||||||
The effects of this revision on our Consolidated Statement of Operations were as follows (in millions, except per share data): | ||||||||||||
Three Months Ended February 28, 2014 | ||||||||||||
As Previously | Adjustment | As Revised | ||||||||||
Reported | ||||||||||||
Other ship operating | $ | 590 | $ | 4 | $ | 594 | ||||||
Depreciation and amortization | $ | 404 | $ | 1 | $ | 405 | ||||||
Operating income | $ | 72 | $ | (5 | ) | $ | 67 | |||||
Loss before income taxes | $ | (14 | ) | $ | (5 | ) | $ | (19 | ) | |||
Net loss | $ | (15 | ) | $ | (5 | ) | $ | (20 | ) | |||
Loss per share | ||||||||||||
Basic | $ | (0.02 | ) | $ | (0.01 | ) | $ | (0.03 | ) | |||
Diluted | $ | (0.02 | ) | $ | (0.01 | ) | $ | (0.03 | ) | |||
The effects of this revision on our Consolidated Statement of Comprehensive Income were as follows (in millions): | ||||||||||||
Three Months Ended February 28, 2014 | ||||||||||||
As Previously | Adjustment | As Revised | ||||||||||
Reported | ||||||||||||
Net loss | $ | (15 | ) | $ | (5 | ) | $ | (20 | ) | |||
Total comprehensive income | $ | 97 | $ | (5 | ) | $ | 92 | |||||
The effects of this revision on our Consolidated Balance Sheet were as follows (in millions): | ||||||||||||
30-Nov-14 | ||||||||||||
As Previously | Adjustment | As Revised | ||||||||||
Reported | ||||||||||||
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 for each of 2014 and 2013 were $0.03, and for 2012, pre-2010 and in the aggregate, they were $0.02, $0.03 and $0.11, respectively. There was no annual diluted earnings per share impact for 2011 and 2010. The notes to the consolidated financial statements for the three months ended February 28, 2014 have been revised, as applicable. | ||||||||||||
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): | ||||||||||||
Three Months Ended February 28, 2014 | ||||||||||||
As Previously | Adjustment | As Revised | ||||||||||
Reported | ||||||||||||
Net loss | $ | (15 | ) | $ | (5 | ) | $ | (20 | ) | |||
Depreciation and amortization | $ | 404 | $ | 1 | $ | 405 | ||||||
Inventories | $ | (5 | ) | $ | (4 | ) | $ | (9 | ) | |||
Insurance recoverables, prepaid expenses and other | $ | 103 | $ | 11 | $ | 114 | ||||||
Claims reserves and accrued and other liabilities | $ | (125 | ) | $ | (3 | ) | $ | (128 | ) | |||
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 $135 million and $137 million for the three months ended February 28, 2015 and 2014, respectively. | ||||||||||||
During the three months ended February 28, 2015 and 2014, repairs and maintenance expenses, including minor improvement costs and dry-dock expenses, were $250 million and $252 million, respectively, and are substantially all included in other ship operating expenses. |
Unsecured_Debt
Unsecured Debt | 3 Months Ended |
Feb. 28, 2015 | |
Debt Disclosure [Abstract] | |
Unsecured Debt | Unsecured Debt |
At February 28, 2015, our short-term borrowings consisted of commercial paper of $856 million and euro-denominated bank loans of $18 million with an aggregate weighted-average interest rate of 0.4%. | |
In February 2015, we entered into an export credit facility that will provide us with the ability to borrow up to an aggregate of $505 million. Proceeds from this facility will be used to pay for a portion of the purchase price of a Princess Cruises' ("Princess") ship, which is expected to be delivered in March 2017. If drawn, this borrowing will be due in semi-annual installments through March 2029. | |
In February 2015, we borrowed $472 million under a euro-denominated export credit facility, the proceeds of which were used to pay for a portion of the purchase price of P&O Cruises (UK)'s Britannia. The floating rate facility is due in semi-annual installments through February 2027. |
Contingencies
Contingencies | 3 Months Ended |
Feb. 28, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies |
Litigation | |
As a result of the January 2012 ship incident, litigation claims, enforcement actions, regulatory actions and investigations, including, but not limited to, those arising from personal injury, loss of life, loss of or damage to personal property, business interruption losses or environmental damage to any affected coastal waters and the surrounding areas, have been and may be asserted or brought against various parties, including us. The ultimate outcome of these matters cannot be determined at this time. However, we do not expect these matters to have a significant impact on our results of operations because we have insurance coverage for these types of third-party claims. | |
The UK Maritime & Coastguard Agency and the U.S. Department of Justice are investigating allegations that Caribbean Princess breached international pollution laws. We are cooperating with the investigations, including conducting our own internal investigation into the matter. The ultimate outcome of this matter cannot be determined at this time. However, we do not expect it to have a significant impact on our results of operations. | |
Additionally, in the normal course of our business, various claims and lawsuits have been filed or are pending against us. Most of these claims and lawsuits are covered by insurance and, accordingly, the maximum amount of our liability, net of any insurance recoverables, is typically limited to our self-insurance retention levels. Management believes the ultimate outcome of these claims and lawsuits will not have a material adverse impact on our consolidated financial statements. | |
Contingent Obligations – Lease Out and Lease Back Type (“LILO”) Transactions | |
At February 28, 2015, Carnival Corporation had estimated contingent obligations totaling $374 million, excluding termination payments as discussed below, to participants in LILO transactions for two of its ships. At the inception of these leases, the aggregate of the net present value of these obligations was paid by Carnival Corporation to a group of major financial institutions, who agreed to act as payment undertakers and directly pay these obligations. As a result, these contingent obligations are considered extinguished and neither the funds nor the contingent obligations have been included in our Consolidated Balance Sheets. | |
In the event that Carnival Corporation were to default on its contingent obligations and assuming performance by all other participants, we estimate that it would, as of February 28, 2015, be responsible for a termination payment of $22 million. In 2017, Carnival Corporation has the right to exercise options that would terminate these LILO transactions at no cost to it. | |
If the credit rating of one of the financial institutions who is directly paying the contingent obligations falls below AA-, or below A- for the other financial institution, then Carnival Corporation will be required to replace the applicable financial institution with another financial institution whose credit rating is at least AA or meets other specified credit requirements. In such circumstances, it would incur additional costs, although we estimate that they would not be significant to our consolidated financial statements. The financial institution payment undertaker subject to the AA- credit rating threshold has a credit rating of AA, and the financial institution subject to the A- credit rating threshold has a credit rating of A+. If Carnival Corporation's credit rating, which is BBB+, falls below BBB, it will be required to provide a standby letter of credit for $30 million, or, alternatively, provide mortgages for this aggregate amount on these two ships. | |
Contingent Obligations – Indemnifications | |
Some of the debt contracts that we enter into include indemnification provisions that obligate us to make payments to the counterparty if certain events occur. These contingencies generally relate to changes in taxes and changes in laws that increase lender capital costs and other similar costs. The indemnification clauses are often standard contractual terms and were entered into in the normal course of business. There are no stated or notional amounts included in the indemnification clauses, and we are not able to estimate the maximum potential amount of future payments, if any, under these indemnification clauses. We have not been required to make any material payments under such indemnification clauses in the past and, under current circumstances, we do not believe a request for material future indemnification payments is probable. |
Fair_Value_Measurements_Deriva
Fair Value Measurements, Derivative Instruments and Hedging Activities | 3 Months Ended | |||||||||||||||||||||||||||||||
Feb. 28, 2015 | ||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||
Fair Value Measurements, Derivative Instruments and Hedging Activities | Fair Value Measurements, Derivative Instruments and Hedging Activities | |||||||||||||||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||||||||||||||
U.S. accounting standards establish a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: | ||||||||||||||||||||||||||||||||
• | Level 1 measurements are based on unadjusted quoted prices in active markets for identical assets or liabilities that we have the ability to access. Valuation of these items does not entail a significant amount of judgment. | |||||||||||||||||||||||||||||||
• | Level 2 measurements are based on quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active or market data other than quoted prices that are observable for the assets or liabilities. | |||||||||||||||||||||||||||||||
• | Level 3 measurements are based on unobservable data that are supported by little or no market activity and are significant to the fair value of the assets or liabilities. | |||||||||||||||||||||||||||||||
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between independent and knowledgeable market participants at the measurement date. Therefore, even when market assumptions are not readily available, our own assumptions are set to reflect those that we believe market participants would use in pricing the asset or liability at the measurement date. | ||||||||||||||||||||||||||||||||
The fair value measurement of a financial asset or financial liability must reflect the nonperformance risk of the counterparty and us. Therefore, the impact of our counterparty’s creditworthiness was considered when in an asset position, and our creditworthiness was considered when in a liability position in the fair value measurement of our financial instruments. Creditworthiness did not have a significant impact on the fair values of our financial instruments at February 28, 2015 and November 30, 2014. Both the counterparties and we are expected to continue to perform under the contractual terms of the instruments. Considerable judgment may be required in interpreting market data used to develop the estimates of fair value. Accordingly, certain estimates of fair value presented herein are not necessarily indicative of the amounts that could be realized in a current or future market exchange. | ||||||||||||||||||||||||||||||||
Financial Instruments that are not Measured at Fair Value on a Recurring Basis | ||||||||||||||||||||||||||||||||
The carrying values and estimated fair values and basis of valuation of our financial instrument assets and liabilities that are not measured at fair value on a recurring basis were as follows (in millions): | ||||||||||||||||||||||||||||||||
28-Feb-15 | 30-Nov-14 | |||||||||||||||||||||||||||||||
Carrying | Fair Value | Carrying | Fair Value | |||||||||||||||||||||||||||||
Value | Level 1 | Level 2 | Level 3 | Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Cash and cash equivalents (a) | $ | 241 | $ | 241 | $ | — | $ | — | $ | 240 | $ | 240 | $ | — | $ | — | ||||||||||||||||
Restricted cash (b) | 7 | 7 | — | — | 11 | 11 | — | — | ||||||||||||||||||||||||
Long-term other assets (c) | 150 | 1 | 102 | 44 | 156 | 1 | 103 | 49 | ||||||||||||||||||||||||
Total | $ | 398 | $ | 249 | $ | 102 | $ | 44 | $ | 407 | $ | 252 | $ | 103 | $ | 49 | ||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Fixed rate debt (d) | $ | 4,290 | $ | — | $ | 4,624 | $ | — | $ | 4,433 | $ | — | $ | 4,743 | $ | — | ||||||||||||||||
Floating rate debt (d) | 4,849 | — | 4,829 | — | 4,655 | — | 4,562 | — | ||||||||||||||||||||||||
Total | $ | 9,139 | $ | — | $ | 9,453 | $ | — | $ | 9,088 | $ | — | $ | 9,305 | $ | — | ||||||||||||||||
(a) | Cash and cash equivalents are comprised of cash on hand and, due to their short maturities, the carrying values approximate their fair values. | |||||||||||||||||||||||||||||||
(b) | Restricted cash is comprised of a money market deposit account. | |||||||||||||||||||||||||||||||
(c) | At February 28, 2015 and November 30, 2014, long-term other assets were substantially all comprised of notes and other receivables. The fair values of our Level 1 and Level 2 notes and other receivables were based on estimated future cash flows discounted at appropriate market interest rates. The fair values of our Level 3 notes receivable were estimated using risk-adjusted discount rates. | |||||||||||||||||||||||||||||||
(d) | Debt does not include the impact of interest rate swaps. The net difference between the fair value of our fixed rate debt and its carrying value was due to the market interest rates in existence at February 28, 2015 and November 30, 2014 being lower than the fixed interest rates on these debt obligations, including the impact of any changes in our credit ratings. At February 28, 2015 and November 30, 2014, the net difference between the fair value of our floating rate debt and its carrying value was due to the market interest rates in existence at February 28, 2015 and November 30, 2014 being slightly higher than the floating interest rates on these debt obligations, including the impact of any changes in our credit ratings. The fair values of our publicly-traded notes were based on their unadjusted quoted market prices in markets that are not sufficiently active to be Level 1, and accordingly, are considered Level 2. The fair values of our other debt were estimated based on appropriate market interest rates being applied to this debt. | |||||||||||||||||||||||||||||||
Financial Instruments that are Measured at Fair Value on a Recurring Basis | ||||||||||||||||||||||||||||||||
The estimated fair value and basis of valuation of our financial instrument assets and liabilities that are measured at fair value on a recurring basis were as follows (in millions): | ||||||||||||||||||||||||||||||||
28-Feb-15 | 30-Nov-14 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Cash equivalents (a) | $ | 39 | $ | — | $ | — | $ | 91 | $ | — | $ | — | ||||||||||||||||||||
Restricted cash (b) | 21 | — | — | 19 | — | — | ||||||||||||||||||||||||||
Marketable securities held in rabbi trusts (c) | 112 | 9 | — | 113 | 9 | — | ||||||||||||||||||||||||||
Derivative financial instruments (d) | — | 19 | — | — | 14 | — | ||||||||||||||||||||||||||
Long-term other asset (e) | — | — | 20 | — | — | 20 | ||||||||||||||||||||||||||
Total | $ | 172 | $ | 28 | $ | 20 | $ | 223 | $ | 23 | $ | 20 | ||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Derivative financial instruments (d) | $ | — | $ | 392 | $ | — | $ | — | $ | 278 | $ | — | ||||||||||||||||||||
Total | $ | — | $ | 392 | $ | — | $ | — | $ | 278 | $ | — | ||||||||||||||||||||
(a) | Cash equivalents are comprised of money market funds. | |||||||||||||||||||||||||||||||
(b) | The majority of restricted cash is comprised of money market funds. | |||||||||||||||||||||||||||||||
(c) | At February 28, 2015, and November 30, 2014, marketable securities held in rabbi trusts were comprised of Level 1 bonds, frequently-priced mutual funds invested in common stocks and money market funds and Level 2 other investments. Their use is restricted to funding certain deferred compensation and non-qualified U.S. pension plans. | |||||||||||||||||||||||||||||||
(d) | See “Derivative Instruments and Hedging Activities” section below for detailed information regarding our derivative financial instruments. | |||||||||||||||||||||||||||||||
(e) | Long-term other asset is comprised of an auction-rate security. The fair value was based on a broker quote in an inactive market, which is considered a Level 3 input. During the three months ended February 28, 2015, there were no purchases or sales pertaining to this auction rate security. | |||||||||||||||||||||||||||||||
We measure our derivatives using valuations that are calibrated to the initial trade prices. Subsequent valuations are based on observable inputs and other variables included in the valuation models such as interest rate, yield and commodity price curves, forward currency exchange rates, credit spreads, maturity dates, volatilities and netting arrangements. We use the income approach to value derivatives for foreign currency options and forwards, interest rate swaps and fuel derivatives using observable market data for all significant inputs and standard valuation techniques to convert future amounts to a single present value amount, assuming that participants are motivated, but not compelled to transact. We also corroborate our fair value estimates using valuations provided by our counterparties. | ||||||||||||||||||||||||||||||||
Nonfinancial Instruments that are Measured at Fair Value on a Nonrecurring Basis | ||||||||||||||||||||||||||||||||
Valuation of Goodwill and Other Intangibles | ||||||||||||||||||||||||||||||||
The reconciliation of the changes in the carrying amounts of our goodwill, which goodwill has been allocated to our North America and Europe, Australia & Asia (“EAA”) cruise brands, was as follows (in millions): | ||||||||||||||||||||||||||||||||
North America | EAA | Total | ||||||||||||||||||||||||||||||
Cruise Brands | Cruise Brands | |||||||||||||||||||||||||||||||
Balance at November 30, 2014 | $ | 1,898 | $ | 1,229 | $ | 3,127 | ||||||||||||||||||||||||||
Foreign currency translation adjustment | — | (72 | ) | (72 | ) | |||||||||||||||||||||||||||
Balance at February 28, 2015 | $ | 1,898 | $ | 1,157 | $ | 3,055 | ||||||||||||||||||||||||||
At July 31, 2014, all of our cruise brands carried goodwill, except for Ibero Cruises ("the former Ibero") and Seabourn. As of that date, we performed our annual goodwill impairment reviews and no goodwill was impaired. At February 28, 2015, accumulated goodwill impairment charges were $153 million, which were all related to the former Ibero. | ||||||||||||||||||||||||||||||||
The reconciliation of the changes in the carrying amounts of our intangible assets not subject to amortization, which represent trademarks that have been allocated to our North America and EAA cruise brands, was as follows (in millions): | ||||||||||||||||||||||||||||||||
North America | EAA | Total | ||||||||||||||||||||||||||||||
Cruise Brands | Cruise Brands | |||||||||||||||||||||||||||||||
Balance at November 30, 2014 | $ | 927 | $ | 338 | $ | 1,265 | ||||||||||||||||||||||||||
Foreign currency translation adjustment | — | (18 | ) | (18 | ) | |||||||||||||||||||||||||||
Balance at February 28, 2015 | $ | 927 | $ | 320 | $ | 1,247 | ||||||||||||||||||||||||||
As of July 31, 2014, we also performed our annual trademark impairment reviews for our cruise brands that have trademarks recorded, which are AIDA Cruises ("AIDA"), P&O Cruises (Australia), P&O Cruises (UK) and Princess. No trademarks were considered to be impaired at that time. | ||||||||||||||||||||||||||||||||
The determination of our cruise brand, cruise ship and trademark fair values includes numerous assumptions that are subject to various risks and uncertainties. We believe that we have made reasonable estimates and judgments in determining whether our goodwill, cruise ships and trademarks have been impaired. However, if there is a change in assumptions used or if there is a change in the conditions or circumstances influencing fair values in the future, then we may need to recognize an impairment charge. | ||||||||||||||||||||||||||||||||
At February 28, 2015 and November 30, 2014, our intangible assets subject to amortization are not significant to our consolidated financial statements. | ||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities | ||||||||||||||||||||||||||||||||
We utilize derivative and nonderivative financial instruments, such as foreign currency forwards, options and swaps, foreign currency debt obligations and foreign currency cash balances, to manage our exposure to fluctuations in certain foreign currency exchange rates, and interest rate swaps to manage our interest rate exposure in order to achieve a desired proportion of fixed and floating rate debt. In addition, we utilize our fuel derivatives program to mitigate a portion of the risk to our future cash flows attributable to potential fuel price increases, which we define as our “economic risk.” Our policy is to not use any financial instruments for trading or other speculative purposes. | ||||||||||||||||||||||||||||||||
All derivatives are recorded at fair value. The changes in fair value are recognized currently in earnings if the derivatives do not qualify as effective hedges, or if we do not seek to qualify for hedge accounting treatment, such as for our fuel derivatives. If a derivative is designated as a fair value hedge, then changes in the fair value of the derivative are offset against the changes in the fair value of the underlying hedged item. If a derivative is designated as a cash flow hedge, then the effective portion of the changes in the fair value of the derivative is recognized as a component of accumulated other comprehensive income ("AOCI") until the underlying hedged item is recognized in earnings or the forecasted transaction is no longer probable. If a derivative or a nonderivative financial instrument is designated as a hedge of our net investment in a foreign operation, then changes in the fair value of the financial instrument are recognized as a component of AOCI to offset a portion of the change in the translated value of the net investment being hedged, until the investment is sold or substantially liquidated. We formally document hedging relationships for all derivative and nonderivative hedges and the underlying hedged items, as well as our risk management objectives and strategies for undertaking the hedge transactions. | ||||||||||||||||||||||||||||||||
We classify the fair values of all our derivative contracts as either current or long-term, depending on whether the maturity date of the derivative contract is within or beyond one year from the balance sheet date. The cash flows from derivatives treated as hedges are classified in our Consolidated Statements of Cash Flows in the same category as the item being hedged. Our cash flows related to fuel derivatives are classified within investing activities. | ||||||||||||||||||||||||||||||||
The estimated fair values of our derivative financial instruments and their location in the Consolidated Balance Sheets were as follows (in millions): | ||||||||||||||||||||||||||||||||
Balance Sheet Location | February 28, 2015 | November 30, 2014 | ||||||||||||||||||||||||||||||
Derivative assets | ||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments | ||||||||||||||||||||||||||||||||
Net investment hedges (a) | Prepaid expenses and other | $ | 10 | $ | 6 | |||||||||||||||||||||||||||
Other assets – long-term | 8 | 6 | ||||||||||||||||||||||||||||||
Interest rate swaps (b) | Prepaid expenses and other | 1 | 1 | |||||||||||||||||||||||||||||
Other assets – long-term | — | 1 | ||||||||||||||||||||||||||||||
Total derivative assets | $ | 19 | $ | 14 | ||||||||||||||||||||||||||||
Derivative liabilities | ||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments | ||||||||||||||||||||||||||||||||
Interest rate swaps (b) | Accrued liabilities and other | 12 | 13 | |||||||||||||||||||||||||||||
Other long-term liabilities | 34 | 35 | ||||||||||||||||||||||||||||||
Foreign currency zero cost collars (c) | Accrued liabilities and other | — | 1 | |||||||||||||||||||||||||||||
Other long-term liabilities | 6 | — | ||||||||||||||||||||||||||||||
52 | 49 | |||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||||||||||||||
Fuel (d) | Accrued liabilities and other | 132 | 90 | |||||||||||||||||||||||||||||
Other long-term liabilities | 208 | 139 | ||||||||||||||||||||||||||||||
340 | 229 | |||||||||||||||||||||||||||||||
Total derivative liabilities | $ | 392 | $ | 278 | ||||||||||||||||||||||||||||
(a) | At February 28, 2015 and November 30, 2014, we had foreign currency forwards totaling $652 million and $403 million, respectively, that are designated as hedges of our net investments in foreign operations, which have a euro- and sterling-denominated functional currency. At February 28, 2015, these foreign currency forwards settle through July 2017. | |||||||||||||||||||||||||||||||
(b) | We have euro interest rate swaps designated as cash flow hedges whereby we receive floating interest rate payments in exchange for making fixed interest rate payments. At February 28, 2015 and November 30, 2014, these interest rate swap agreements effectively changed $662 million and $750 million, respectively, of EURIBOR-based floating rate euro debt to fixed rate euro debt. These interest rate swaps settle through March 2025. In addition, at February 28, 2015 and November 30, 2014 we had U.S. dollar interest rate swaps designated as fair value hedges whereby we receive fixed interest rate payments in exchange for making floating interest rate payments. At February 28, 2015 and November 30, 2014, these interest rate swap agreements effectively changed $500 million of fixed rate debt to U.S. dollar LIBOR-based floating rate debt. These interest rate swaps settle through February 2016. | |||||||||||||||||||||||||||||||
(c) | At February 28, 2015 and November 30, 2014, we had foreign currency derivatives consisting of foreign currency zero cost collars that are designated as foreign currency cash flow hedges for a portion of our euro-denominated shipbuilding payments. See “Newbuild Currency Risks” below for additional information regarding these derivatives. | |||||||||||||||||||||||||||||||
(d) | At February 28, 2015 and November 30, 2014, we had fuel derivatives consisting of zero cost collars on Brent crude oil (“Brent”) to cover a portion of our estimated fuel consumption through 2018. See “Fuel Price Risks” below for additional information regarding these fuel derivatives. | |||||||||||||||||||||||||||||||
Our derivative contracts include rights of offset with our counterparties. We have elected to net certain of our derivative assets and liabilities within counterparties. The amounts recognized within assets and liabilities were as follows (in millions): | ||||||||||||||||||||||||||||||||
February 28, 2015 | ||||||||||||||||||||||||||||||||
Gross Amounts | Gross Amounts Offset in the Balance Sheet | Total Net Amounts Presented in the Balance Sheet | Gross Amounts not Offset in the Balance Sheet | Net Amounts | ||||||||||||||||||||||||||||
Assets | $ | 58 | $ | (39 | ) | $ | 19 | $ | (18 | ) | $ | 1 | ||||||||||||||||||||
Liabilities | $ | 431 | $ | (39 | ) | $ | 392 | $ | (18 | ) | $ | 374 | ||||||||||||||||||||
November 30, 2014 | ||||||||||||||||||||||||||||||||
Gross Amounts | Gross Amounts Offset in the Balance Sheet | Total Net Amounts Presented in the Balance Sheet | Gross Amounts not Offset in the Balance Sheet | Net Amounts | ||||||||||||||||||||||||||||
Assets | $ | 78 | $ | (64 | ) | $ | 14 | $ | (14 | ) | $ | — | ||||||||||||||||||||
Liabilities | $ | 342 | $ | (64 | ) | $ | 278 | $ | (14 | ) | $ | 264 | ||||||||||||||||||||
The effective portions of our derivatives qualifying and designated as hedging instruments recognized in other comprehensive (loss) income were as follows (in millions): | ||||||||||||||||||||||||||||||||
Three Months Ended February 28, | ||||||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||||
Net investment hedges | $ | 39 | $ | 2 | ||||||||||||||||||||||||||||
Foreign currency zero cost collars – cash flow hedges | $ | (37 | ) | $ | (3 | ) | ||||||||||||||||||||||||||
Interest rate swaps – cash flow hedges | $ | (2 | ) | $ | (4 | ) | ||||||||||||||||||||||||||
There are no credit risk related contingent features in our derivative agreements, except for bilateral credit provisions within our fuel derivative counterparty agreements. These provisions require interest-bearing, non-restricted cash to be posted or received as collateral to the extent the fuel derivative fair value payable to or receivable from an individual counterparty, respectively, exceeds $100 million. At February 28, 2015, we had $15 million of collateral posted to one of our fuel derivative counterparties, which was all returned to us in March 2015 as the collateral posting was no longer required. At February 28, 2015, no collateral was required to be received from our fuel derivative counterparties. At November 30, 2014, no collateral was required to be posted to or received from our fuel derivative counterparties. | ||||||||||||||||||||||||||||||||
The amount of estimated cash flow hedges’ unrealized gains and losses that are expected to be reclassified to earnings in the next twelve months is not significant. We have not provided additional disclosures of the impact that derivative instruments and hedging activities have on our consolidated financial statements as of February 28, 2015 and November 30, 2014 and for the three months ended February 28, 2015 and 2014 where such impacts were not significant. | ||||||||||||||||||||||||||||||||
Fuel Price Risks | ||||||||||||||||||||||||||||||||
Our exposure to market risk for changes in fuel prices substantially all relates to the consumption of fuel on our ships. We use our fuel derivatives program to mitigate a portion of our economic risk attributable to potential fuel price increases. We designed our fuel derivatives program to maximize operational flexibility by utilizing derivative markets with significant trading liquidity and our program currently consists of zero cost collars on Brent. | ||||||||||||||||||||||||||||||||
All of our derivatives are based on Brent prices whereas the actual fuel used on our ships is marine fuel. Changes in the Brent prices may not show a high degree of correlation with changes in our underlying marine fuel prices. We will not realize any economic gain or loss upon the monthly maturities of our zero cost collars unless the average monthly price of Brent is above the ceiling price or below the floor price. We believe that these derivatives will act as economic hedges; however, hedge accounting is not applied. As part of our fuel derivatives program, we will continue to evaluate various derivative products and strategies. During the three months ended February 28, 2015 and 2014, our unrealized losses, net on fuel derivatives were $(112) million and $(17) million and our realized (losses) gains were $(57) million and $1 million, respectively. | ||||||||||||||||||||||||||||||||
At February 28, 2015, our outstanding fuel derivatives consisted of zero cost collars on Brent to cover a portion of our estimated fuel consumption as follows: | ||||||||||||||||||||||||||||||||
Maturities (a) | Transaction | Barrels | Weighted-Average | Weighted-Average | Percent of Estimated | |||||||||||||||||||||||||||
Dates | (in thousands) | Floor Prices | Ceiling Prices | Fuel Consumption | ||||||||||||||||||||||||||||
Covered | ||||||||||||||||||||||||||||||||
Fiscal 2015 (Q2-Q4) | ||||||||||||||||||||||||||||||||
November 2011 | 1,620 | $ | 80 | $ | 114 | |||||||||||||||||||||||||||
Feb-12 | 1,620 | $ | 80 | $ | 125 | |||||||||||||||||||||||||||
Jun-12 | 927 | $ | 74 | $ | 110 | |||||||||||||||||||||||||||
Apr-13 | 783 | $ | 80 | $ | 111 | |||||||||||||||||||||||||||
May-13 | 1,413 | $ | 80 | $ | 110 | |||||||||||||||||||||||||||
Oct-14 | 1,440 | $ | 79 | $ | 110 | |||||||||||||||||||||||||||
7,803 | 50% | |||||||||||||||||||||||||||||||
Fiscal 2016 | ||||||||||||||||||||||||||||||||
Jun-12 | 3,564 | $ | 75 | $ | 108 | |||||||||||||||||||||||||||
Feb-13 | 2,160 | $ | 80 | $ | 120 | |||||||||||||||||||||||||||
Apr-13 | 3,000 | $ | 75 | $ | 115 | |||||||||||||||||||||||||||
8,724 | 44% | |||||||||||||||||||||||||||||||
Fiscal 2017 | ||||||||||||||||||||||||||||||||
Feb-13 | 3,276 | $ | 80 | $ | 115 | |||||||||||||||||||||||||||
Apr-13 | 2,028 | $ | 75 | $ | 110 | |||||||||||||||||||||||||||
Jan-14 | 1,800 | $ | 75 | $ | 114 | |||||||||||||||||||||||||||
Oct-14 | 1,020 | $ | 80 | $ | 113 | |||||||||||||||||||||||||||
8,124 | 41% | |||||||||||||||||||||||||||||||
Fiscal 2018 | ||||||||||||||||||||||||||||||||
Jan-14 | 2,700 | $ | 75 | $ | 110 | |||||||||||||||||||||||||||
Oct-14 | 3,000 | $ | 80 | $ | 114 | |||||||||||||||||||||||||||
5,700 | 29% | |||||||||||||||||||||||||||||||
(a) | Fuel derivatives mature evenly over each month within the above fiscal periods. | |||||||||||||||||||||||||||||||
Foreign Currency Exchange Rate Risks | ||||||||||||||||||||||||||||||||
Overall Strategy | ||||||||||||||||||||||||||||||||
We manage our exposure to fluctuations in foreign currency exchange rates through our normal operating and financing activities, including netting certain exposures to take advantage of any natural offsets and, when considered appropriate, through the use of derivative and nonderivative financial instruments. Our primary focus is to manage the economic foreign currency exchange risks faced by our operations, which are the ultimate foreign currency exchange risks that would be realized by us if we exchanged one currency for another, and not accounting risks. While we will continue to monitor our exposure to these economic risks, we do not currently hedge our foreign currency exchange risks with derivative or nonderivative financial instruments, with the exception of certain of our ship commitments and net investments in foreign operations. The financial impacts of the hedging instruments we do employ generally offset the changes in the underlying exposures being hedged. | ||||||||||||||||||||||||||||||||
Operational Currency Risks | ||||||||||||||||||||||||||||||||
Our European and Australian cruise brands generate significant revenues and incur significant expenses in their euro, sterling or Australian dollar functional currency, which subjects us to "foreign currency translational" risk related to these currencies. Accordingly, exchange rate fluctuations of the euro, sterling and Australian dollar against the U.S. dollar will affect our reported financial results since the reporting currency for our consolidated financial statements is the U.S. dollar. Any strengthening of the U.S. dollar against these foreign currencies has the financial statement effect of decreasing the U.S. dollar values reported for these cruise brands’ revenues and expenses. Any weakening of the U.S. dollar has the opposite effect. | ||||||||||||||||||||||||||||||||
Substantially all of our brands also have non-functional currency risk related to their international sales operations, which has become an increasingly larger part of most of their businesses over time, and principally includes the euro, sterling and Australian, Canadian and U.S. dollars. In addition, all of our brands have non-functional currency expenses for a portion of their operating expenses. Accordingly, we also have "foreign currency transactional" risks related to changes in the exchange rates for our brands’ revenues and expenses that are in a currency other than their functional currency. However, these brands’ revenues and expenses in non-functional currencies create some degree of natural offset from these currency exchange movements. In addition, we monitor this foreign currency transactional risk in order to measure its impact on our results of operations. | ||||||||||||||||||||||||||||||||
Investment Currency Risks | ||||||||||||||||||||||||||||||||
We consider our investments in foreign operations to be denominated in relatively stable currencies and of a long-term nature. We partially mitigate our net investment currency exposures by denominating a portion of our foreign currency intercompany payables in our foreign operations’ functional currencies, principally sterling. As of February 28, 2015 and November 30, 2014, we have designated $1.8 billion and $2.4 billion, respectively, of our foreign currency intercompany payables as nonderivative hedges of our net investments in foreign operations. Accordingly, we have included $431 million and $359 million of cumulative foreign currency transaction nonderivative gains in the cumulative translation adjustment component of AOCI at February 28, 2015 and November 30, 2014, respectively, which offsets a portion of the losses recorded in AOCI upon translating our foreign operations’ net assets into U.S. dollars. During the three months ended February 28, 2015 and 2014, we recognized foreign currency nonderivative transaction gains (losses) of $72 million and $(40) million, respectively, in the cumulative translation adjustment component of AOCI. | ||||||||||||||||||||||||||||||||
Newbuild Currency Risks | ||||||||||||||||||||||||||||||||
Our shipbuilding contracts are typically denominated in euros. Our decisions regarding whether or not to hedge a non-functional currency ship commitment for our cruise brands are made on a case-by-case basis, taking into consideration the amount and duration of the exposure, market volatility, economic trends, our overall expected net cash flows by currency and other offsetting risks. We use foreign currency derivative contracts and have used nonderivative financial instruments to manage foreign currency exchange rate risk for some of our ship construction payments. | ||||||||||||||||||||||||||||||||
In January 2015, we entered into foreign currency zero cost collars that are designated as cash flow hedges for a portion of a Princess newbuild's and Seabourn Encore's euro-denominated shipyard payments. The Princess newbuild’s collars mature in March 2017 at a weighted-average ceiling of $590 million and a weighted-average floor of $504 million. The Seabourn Encore's collars mature in November 2016 at a weighted-average ceiling of $221 million and a weighted-average floor of $185 million. If the spot rate is between the weighted-average ceiling and floor rates on the date of maturity, then we would not owe or receive any payments under these collars. | ||||||||||||||||||||||||||||||||
In February 2015, we settled our foreign currency zero cost collars that were designated as cash flow hedges for the final euro-denominated shipyard payments of P&O Cruises (UK) Britannia, which resulted in $33 million being recognized in other comprehensive loss during the three months ended February 28, 2015. | ||||||||||||||||||||||||||||||||
At February 28, 2015, our remaining newbuild currency exchange rate risk relates to euro-denominated newbuild construction payments, which represent a total unhedged commitment of $1.6 billion and substantially relates to a Carnival Cruise Line, Holland America Line and Seabourn newbuild all scheduled to be delivered in 2018. | ||||||||||||||||||||||||||||||||
The cost of shipbuilding orders that we may place in the future that is denominated in a different currency than our cruise brands’ or the shipyards’ functional currency is expected to be affected by foreign currency exchange rate fluctuations. These foreign currency exchange rate fluctuations may affect our desire to order new cruise ships. | ||||||||||||||||||||||||||||||||
Interest Rate Risks | ||||||||||||||||||||||||||||||||
We manage our exposure to fluctuations in interest rates through our debt portfolio management and investment strategies. We evaluate our debt portfolio to determine whether to make periodic adjustments to the mix of fixed and floating rate debt through the use of interest rate swaps and the issuance of new debt or the early retirement of existing debt. At February 28, 2015, 49% and 51% (52% and 48% at November 30, 2014) of our debt bore fixed and floating interest rates, respectively, including the effect of interest rate swaps. In addition, to the extent that we have excess cash available for investment, we purchase high quality short-term investments with floating interest rates, which offset a portion of the impact of interest rate fluctuations arising from our floating interest rate debt portfolio. | ||||||||||||||||||||||||||||||||
Concentrations of Credit Risk | ||||||||||||||||||||||||||||||||
As part of our ongoing control procedures, we monitor concentrations of credit risk associated with financial and other institutions with which we conduct significant business. Our maximum exposure under foreign currency and fuel derivative contracts and interest rate swap agreements that are in-the-money, which were not material at February 28, 2015, is the replacement cost, net of any collateral received or contractually allowed offset, in the event of nonperformance by the counterparties to the contracts, all of which are currently our lending banks. We seek to minimize these credit risk exposures, including counterparty nonperformance primarily associated with our cash equivalents, investments, committed financing facilities, contingent obligations, derivative instruments, insurance contracts and new ship progress payment guarantees, by normally conducting business with large, well-established financial institutions, insurance companies and export credit agencies, and by diversifying our counterparties. In addition, we have guidelines regarding credit ratings and investment maturities that we follow to help safeguard liquidity and minimize risk. We normally do require collateral and/or guarantees to support notes receivable on significant asset sales, long-term ship charters and new ship progress payments to shipyards. We currently believe the risk of nonperformance by any of these significant counterparties is remote. | ||||||||||||||||||||||||||||||||
We also monitor the creditworthiness of travel agencies and tour operators in Asia, Australia and Europe and credit and debit card providers to which we extend credit in the normal course of our business, which includes charter-hire agreements in Asia prior to sailing. Our credit exposure also includes contingent obligations related to cash payments received directly by travel agents and tour operators for cash collected by them on cruise sales in Australia and most of Europe where we are obligated to honor our guests' cruise payments made by them to their travel agents and tour operators regardless of whether we have received these payments. Concentrations of credit risk associated with these trade receivables, charter-hire agreements and contingent obligations are not considered to be material, principally due to the large number of unrelated accounts within our customer base, the nature of these contingent obligations and their short maturities. We have experienced only minimal credit losses on our trade receivables, charter-hire agreements and contingent obligations. We do not normally require collateral or other security to support normal credit sales. |
Segment_Information
Segment Information | 3 Months Ended | |||||||||||||||||||
Feb. 28, 2015 | ||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||
Segment Information | 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 Cruises, Cunard, P&O Cruises (Australia), P&O Cruises (UK) and prior to November 2014, the former 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. | ||||||||||||||||||||
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 and December 2014, we entered into bareboat charter/sale agreements under which Grand Holiday and Costa Celebration, respectively, were chartered to an unrelated entity in January 2015 through March 2025 and December 2014 through December 2024, respectively. Under these agreements, ownership of Grand Holiday and Costa Celebration will be transferred to the buyer at the end of their lease term. Both of these transactions did not meet 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. | ||||||||||||||||||||
Selected information for our segments was as follows (in millions): | ||||||||||||||||||||
Three Months Ended February 28, | ||||||||||||||||||||
Revenues | Operating costs and | Selling | Depreciation | Operating | ||||||||||||||||
expenses | and | and | income (loss) | |||||||||||||||||
administrative | amortization | |||||||||||||||||||
2015 | ||||||||||||||||||||
North America Cruise Brands | $ | 2,193 | $ | 1,377 | $ | 287 | $ | 246 | $ | 283 | ||||||||||
EAA Cruise Brands | 1,303 | 943 | 179 | 138 | 43 | |||||||||||||||
Cruise Support | 26 | (1 | ) | 61 | 6 | (40 | ) | |||||||||||||
Tour and Other | 9 | 16 | 2 | 11 | (20 | ) | ||||||||||||||
$ | 3,531 | $ | 2,335 | $ | 529 | $ | 401 | $ | 266 | |||||||||||
2014 | ||||||||||||||||||||
North America Cruise Brands | $ | 2,119 | $ | 1,537 | $ | 297 | $ | 236 | $ | 49 | ||||||||||
EAA Cruise Brands | 1,433 | 1,039 | 187 | 152 | 55 | |||||||||||||||
Cruise Support | 25 | 1 | 35 | 9 | (20 | ) | ||||||||||||||
Tour and Other | 8 | 15 | 2 | 8 | (17 | ) | ||||||||||||||
$ | 3,585 | $ | 2,592 | $ | 521 | $ | 405 | $ | 67 | |||||||||||
Earnings_Loss_Per_Share
Earnings (Loss) Per Share | 3 Months Ended | |||||||
Feb. 28, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Earnings (Loss) Per Share | Earnings (Loss) Per Share | |||||||
Our basic and diluted earnings (loss) per share were computed as follows (in millions, except per share data): | ||||||||
Three Months Ended | ||||||||
February 28, | ||||||||
2015 | 2014 | |||||||
Net income (loss) for basic and diluted earnings per share | $ | 49 | $ | (20 | ) | |||
Weighted-average common and ordinary shares outstanding | 777 | 776 | ||||||
Dilutive effect of equity plans | 2 | — | ||||||
Diluted weighted-average shares outstanding | 779 | 776 | ||||||
Basic and diluted earnings (loss) per share | $ | 0.06 | $ | (0.03 | ) | |||
Anti-dilutive equity awards excluded from diluted earnings (loss) per share | — | 6 | ||||||
computations | ||||||||
General_Tables
General (Tables) | 3 Months Ended | |||||||||||
Feb. 28, 2015 | ||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||
Schedule of Prior Period Adjustments | The effects of this revision on our Consolidated Statement of Operations were as follows (in millions, except per share data): | |||||||||||
Three Months Ended February 28, 2014 | ||||||||||||
As Previously | Adjustment | As Revised | ||||||||||
Reported | ||||||||||||
Other ship operating | $ | 590 | $ | 4 | $ | 594 | ||||||
Depreciation and amortization | $ | 404 | $ | 1 | $ | 405 | ||||||
Operating income | $ | 72 | $ | (5 | ) | $ | 67 | |||||
Loss before income taxes | $ | (14 | ) | $ | (5 | ) | $ | (19 | ) | |||
Net loss | $ | (15 | ) | $ | (5 | ) | $ | (20 | ) | |||
Loss per share | ||||||||||||
Basic | $ | (0.02 | ) | $ | (0.01 | ) | $ | (0.03 | ) | |||
Diluted | $ | (0.02 | ) | $ | (0.01 | ) | $ | (0.03 | ) | |||
The effects of this revision on our Consolidated Statement of Comprehensive Income were as follows (in millions): | ||||||||||||
Three Months Ended February 28, 2014 | ||||||||||||
As Previously | Adjustment | As Revised | ||||||||||
Reported | ||||||||||||
Net loss | $ | (15 | ) | $ | (5 | ) | $ | (20 | ) | |||
Total comprehensive income | $ | 97 | $ | (5 | ) | $ | 92 | |||||
The effects of this revision on our Consolidated Balance Sheet were as follows (in millions): | ||||||||||||
30-Nov-14 | ||||||||||||
As Previously | Adjustment | As Revised | ||||||||||
Reported | ||||||||||||
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 for each of 2014 and 2013 were $0.03, and for 2012, pre-2010 and in the aggregate, they were $0.02, $0.03 and $0.11, respectively. There was no annual diluted earnings per share impact for 2011 and 2010. The notes to the consolidated financial statements for the three months ended February 28, 2014 have been revised, as applicable. | ||||||||||||
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): | ||||||||||||
Three Months Ended February 28, 2014 | ||||||||||||
As Previously | Adjustment | As Revised | ||||||||||
Reported | ||||||||||||
Net loss | $ | (15 | ) | $ | (5 | ) | $ | (20 | ) | |||
Depreciation and amortization | $ | 404 | $ | 1 | $ | 405 | ||||||
Inventories | $ | (5 | ) | $ | (4 | ) | $ | (9 | ) | |||
Insurance recoverables, prepaid expenses and other | $ | 103 | $ | 11 | $ | 114 | ||||||
Claims reserves and accrued and other liabilities | $ | (125 | ) | $ | (3 | ) | $ | (128 | ) |
Fair_Value_Measurements_Deriva1
Fair Value Measurements, Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended | |||||||||||||||||||||||||||||||
Feb. 28, 2015 | ||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||
Estimated Carrying and Fair Values of Financial Instrument Assets and (Liabilities) Not Measured at Fair Value on a Recurring Basis | The carrying values and estimated fair values and basis of valuation of our financial instrument assets and liabilities that are not measured at fair value on a recurring basis were as follows (in millions): | |||||||||||||||||||||||||||||||
28-Feb-15 | 30-Nov-14 | |||||||||||||||||||||||||||||||
Carrying | Fair Value | Carrying | Fair Value | |||||||||||||||||||||||||||||
Value | Level 1 | Level 2 | Level 3 | Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Cash and cash equivalents (a) | $ | 241 | $ | 241 | $ | — | $ | — | $ | 240 | $ | 240 | $ | — | $ | — | ||||||||||||||||
Restricted cash (b) | 7 | 7 | — | — | 11 | 11 | — | — | ||||||||||||||||||||||||
Long-term other assets (c) | 150 | 1 | 102 | 44 | 156 | 1 | 103 | 49 | ||||||||||||||||||||||||
Total | $ | 398 | $ | 249 | $ | 102 | $ | 44 | $ | 407 | $ | 252 | $ | 103 | $ | 49 | ||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Fixed rate debt (d) | $ | 4,290 | $ | — | $ | 4,624 | $ | — | $ | 4,433 | $ | — | $ | 4,743 | $ | — | ||||||||||||||||
Floating rate debt (d) | 4,849 | — | 4,829 | — | 4,655 | — | 4,562 | — | ||||||||||||||||||||||||
Total | $ | 9,139 | $ | — | $ | 9,453 | $ | — | $ | 9,088 | $ | — | $ | 9,305 | $ | — | ||||||||||||||||
(a) | Cash and cash equivalents are comprised of cash on hand and, due to their short maturities, the carrying values approximate their fair values. | |||||||||||||||||||||||||||||||
(b) | Restricted cash is comprised of a money market deposit account. | |||||||||||||||||||||||||||||||
(c) | At February 28, 2015 and November 30, 2014, long-term other assets were substantially all comprised of notes and other receivables. The fair values of our Level 1 and Level 2 notes and other receivables were based on estimated future cash flows discounted at appropriate market interest rates. The fair values of our Level 3 notes receivable were estimated using risk-adjusted discount rates. | |||||||||||||||||||||||||||||||
(d) | Debt does not include the impact of interest rate swaps. The net difference between the fair value of our fixed rate debt and its carrying value was due to the market interest rates in existence at February 28, 2015 and November 30, 2014 being lower than the fixed interest rates on these debt obligations, including the impact of any changes in our credit ratings. At February 28, 2015 and November 30, 2014, the net difference between the fair value of our floating rate debt and its carrying value was due to the market interest rates in existence at February 28, 2015 and November 30, 2014 being slightly higher than the floating interest rates on these debt obligations, including the impact of any changes in our credit ratings. The fair values of our publicly-traded notes were based on their unadjusted quoted market prices in markets that are not sufficiently active to be Level 1, and accordingly, are considered Level 2. The fair values of our other debt were estimated based on appropriate market interest rates being applied to this debt. | |||||||||||||||||||||||||||||||
Estimated Fair Value and Basis of Valuation of Financial Instrument Assets and (Liabilities) Measured at Fair Value on Recurring Basis | The estimated fair value and basis of valuation of our financial instrument assets and liabilities that are measured at fair value on a recurring basis were as follows (in millions): | |||||||||||||||||||||||||||||||
28-Feb-15 | 30-Nov-14 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Cash equivalents (a) | $ | 39 | $ | — | $ | — | $ | 91 | $ | — | $ | — | ||||||||||||||||||||
Restricted cash (b) | 21 | — | — | 19 | — | — | ||||||||||||||||||||||||||
Marketable securities held in rabbi trusts (c) | 112 | 9 | — | 113 | 9 | — | ||||||||||||||||||||||||||
Derivative financial instruments (d) | — | 19 | — | — | 14 | — | ||||||||||||||||||||||||||
Long-term other asset (e) | — | — | 20 | — | — | 20 | ||||||||||||||||||||||||||
Total | $ | 172 | $ | 28 | $ | 20 | $ | 223 | $ | 23 | $ | 20 | ||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Derivative financial instruments (d) | $ | — | $ | 392 | $ | — | $ | — | $ | 278 | $ | — | ||||||||||||||||||||
Total | $ | — | $ | 392 | $ | — | $ | — | $ | 278 | $ | — | ||||||||||||||||||||
(a) | Cash equivalents are comprised of money market funds. | |||||||||||||||||||||||||||||||
(b) | The majority of restricted cash is comprised of money market funds. | |||||||||||||||||||||||||||||||
(c) | At February 28, 2015, and November 30, 2014, marketable securities held in rabbi trusts were comprised of Level 1 bonds, frequently-priced mutual funds invested in common stocks and money market funds and Level 2 other investments. Their use is restricted to funding certain deferred compensation and non-qualified U.S. pension plans. | |||||||||||||||||||||||||||||||
(d) | See “Derivative Instruments and Hedging Activities” section below for detailed information regarding our derivative financial instruments. | |||||||||||||||||||||||||||||||
(e) | Long-term other asset is comprised of an auction-rate security. The fair value was based on a broker quote in an inactive market, which is considered a Level 3 input. During the three months ended February 28, 2015, there were no purchases or sales pertaining to this auction rate security. | |||||||||||||||||||||||||||||||
Reconciliation of Changes in Carrying Amounts of Goodwill | The reconciliation of the changes in the carrying amounts of our goodwill, which goodwill has been allocated to our North America and Europe, Australia & Asia (“EAA”) cruise brands, was as follows (in millions): | |||||||||||||||||||||||||||||||
North America | EAA | Total | ||||||||||||||||||||||||||||||
Cruise Brands | Cruise Brands | |||||||||||||||||||||||||||||||
Balance at November 30, 2014 | $ | 1,898 | $ | 1,229 | $ | 3,127 | ||||||||||||||||||||||||||
Foreign currency translation adjustment | — | (72 | ) | (72 | ) | |||||||||||||||||||||||||||
Balance at February 28, 2015 | $ | 1,898 | $ | 1,157 | $ | 3,055 | ||||||||||||||||||||||||||
Reconciliation of Changes in Carrying Amounts of Intangible Assets Not Subject to Amortization, which Represents Trademarks | The reconciliation of the changes in the carrying amounts of our intangible assets not subject to amortization, which represent trademarks that have been allocated to our North America and EAA cruise brands, was as follows (in millions): | |||||||||||||||||||||||||||||||
North America | EAA | Total | ||||||||||||||||||||||||||||||
Cruise Brands | Cruise Brands | |||||||||||||||||||||||||||||||
Balance at November 30, 2014 | $ | 927 | $ | 338 | $ | 1,265 | ||||||||||||||||||||||||||
Foreign currency translation adjustment | — | (18 | ) | (18 | ) | |||||||||||||||||||||||||||
Balance at February 28, 2015 | $ | 927 | $ | 320 | $ | 1,247 | ||||||||||||||||||||||||||
Estimated Fair Values of Derivative Financial Instruments and Location on Consolidated Balance Sheets | The estimated fair values of our derivative financial instruments and their location in the Consolidated Balance Sheets were as follows (in millions): | |||||||||||||||||||||||||||||||
Balance Sheet Location | February 28, 2015 | November 30, 2014 | ||||||||||||||||||||||||||||||
Derivative assets | ||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments | ||||||||||||||||||||||||||||||||
Net investment hedges (a) | Prepaid expenses and other | $ | 10 | $ | 6 | |||||||||||||||||||||||||||
Other assets – long-term | 8 | 6 | ||||||||||||||||||||||||||||||
Interest rate swaps (b) | Prepaid expenses and other | 1 | 1 | |||||||||||||||||||||||||||||
Other assets – long-term | — | 1 | ||||||||||||||||||||||||||||||
Total derivative assets | $ | 19 | $ | 14 | ||||||||||||||||||||||||||||
Derivative liabilities | ||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments | ||||||||||||||||||||||||||||||||
Interest rate swaps (b) | Accrued liabilities and other | 12 | 13 | |||||||||||||||||||||||||||||
Other long-term liabilities | 34 | 35 | ||||||||||||||||||||||||||||||
Foreign currency zero cost collars (c) | Accrued liabilities and other | — | 1 | |||||||||||||||||||||||||||||
Other long-term liabilities | 6 | — | ||||||||||||||||||||||||||||||
52 | 49 | |||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||||||||||||||
Fuel (d) | Accrued liabilities and other | 132 | 90 | |||||||||||||||||||||||||||||
Other long-term liabilities | 208 | 139 | ||||||||||||||||||||||||||||||
340 | 229 | |||||||||||||||||||||||||||||||
Total derivative liabilities | $ | 392 | $ | 278 | ||||||||||||||||||||||||||||
(a) | At February 28, 2015 and November 30, 2014, we had foreign currency forwards totaling $652 million and $403 million, respectively, that are designated as hedges of our net investments in foreign operations, which have a euro- and sterling-denominated functional currency. At February 28, 2015, these foreign currency forwards settle through July 2017. | |||||||||||||||||||||||||||||||
(b) | We have euro interest rate swaps designated as cash flow hedges whereby we receive floating interest rate payments in exchange for making fixed interest rate payments. At February 28, 2015 and November 30, 2014, these interest rate swap agreements effectively changed $662 million and $750 million, respectively, of EURIBOR-based floating rate euro debt to fixed rate euro debt. These interest rate swaps settle through March 2025. In addition, at February 28, 2015 and November 30, 2014 we had U.S. dollar interest rate swaps designated as fair value hedges whereby we receive fixed interest rate payments in exchange for making floating interest rate payments. At February 28, 2015 and November 30, 2014, these interest rate swap agreements effectively changed $500 million of fixed rate debt to U.S. dollar LIBOR-based floating rate debt. These interest rate swaps settle through February 2016. | |||||||||||||||||||||||||||||||
(c) | At February 28, 2015 and November 30, 2014, we had foreign currency derivatives consisting of foreign currency zero cost collars that are designated as foreign currency cash flow hedges for a portion of our euro-denominated shipbuilding payments. See “Newbuild Currency Risks” below for additional information regarding these derivatives. | |||||||||||||||||||||||||||||||
(d) | At February 28, 2015 and November 30, 2014, we had fuel derivatives consisting of zero cost collars on Brent crude oil (“Brent”) to cover a portion of our estimated fuel consumption through 2018. See “Fuel Price Risks” below for additional information regarding these fuel deriv | |||||||||||||||||||||||||||||||
Offsetting Derivative Instruments | Our derivative contracts include rights of offset with our counterparties. We have elected to net certain of our derivative assets and liabilities within counterparties. The amounts recognized within assets and liabilities were as follows (in millions): | |||||||||||||||||||||||||||||||
February 28, 2015 | ||||||||||||||||||||||||||||||||
Gross Amounts | Gross Amounts Offset in the Balance Sheet | Total Net Amounts Presented in the Balance Sheet | Gross Amounts not Offset in the Balance Sheet | Net Amounts | ||||||||||||||||||||||||||||
Assets | $ | 58 | $ | (39 | ) | $ | 19 | $ | (18 | ) | $ | 1 | ||||||||||||||||||||
Liabilities | $ | 431 | $ | (39 | ) | $ | 392 | $ | (18 | ) | $ | 374 | ||||||||||||||||||||
November 30, 2014 | ||||||||||||||||||||||||||||||||
Gross Amounts | Gross Amounts Offset in the Balance Sheet | Total Net Amounts Presented in the Balance Sheet | Gross Amounts not Offset in the Balance Sheet | Net Amounts | ||||||||||||||||||||||||||||
Assets | $ | 78 | $ | (64 | ) | $ | 14 | $ | (14 | ) | $ | — | ||||||||||||||||||||
Liabilities | $ | 342 | $ | (64 | ) | $ | 278 | $ | (14 | ) | $ | 264 | ||||||||||||||||||||
Derivatives Qualifying and Designated as Hedging Instruments Recognized in Other Comprehensive Income | The effective portions of our derivatives qualifying and designated as hedging instruments recognized in other comprehensive (loss) income were as follows (in millions): | |||||||||||||||||||||||||||||||
Three Months Ended February 28, | ||||||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||||
Net investment hedges | $ | 39 | $ | 2 | ||||||||||||||||||||||||||||
Foreign currency zero cost collars – cash flow hedges | $ | (37 | ) | $ | (3 | ) | ||||||||||||||||||||||||||
Interest rate swaps – cash flow hedges | $ | (2 | ) | $ | (4 | ) | ||||||||||||||||||||||||||
Fuel Derivatives Outstanding | At February 28, 2015, our outstanding fuel derivatives consisted of zero cost collars on Brent to cover a portion of our estimated fuel consumption as follows: | |||||||||||||||||||||||||||||||
Maturities (a) | Transaction | Barrels | Weighted-Average | Weighted-Average | Percent of Estimated | |||||||||||||||||||||||||||
Dates | (in thousands) | Floor Prices | Ceiling Prices | Fuel Consumption | ||||||||||||||||||||||||||||
Covered | ||||||||||||||||||||||||||||||||
Fiscal 2015 (Q2-Q4) | ||||||||||||||||||||||||||||||||
November 2011 | 1,620 | $ | 80 | $ | 114 | |||||||||||||||||||||||||||
Feb-12 | 1,620 | $ | 80 | $ | 125 | |||||||||||||||||||||||||||
Jun-12 | 927 | $ | 74 | $ | 110 | |||||||||||||||||||||||||||
Apr-13 | 783 | $ | 80 | $ | 111 | |||||||||||||||||||||||||||
May-13 | 1,413 | $ | 80 | $ | 110 | |||||||||||||||||||||||||||
Oct-14 | 1,440 | $ | 79 | $ | 110 | |||||||||||||||||||||||||||
7,803 | 50% | |||||||||||||||||||||||||||||||
Fiscal 2016 | ||||||||||||||||||||||||||||||||
Jun-12 | 3,564 | $ | 75 | $ | 108 | |||||||||||||||||||||||||||
Feb-13 | 2,160 | $ | 80 | $ | 120 | |||||||||||||||||||||||||||
Apr-13 | 3,000 | $ | 75 | $ | 115 | |||||||||||||||||||||||||||
8,724 | 44% | |||||||||||||||||||||||||||||||
Fiscal 2017 | ||||||||||||||||||||||||||||||||
Feb-13 | 3,276 | $ | 80 | $ | 115 | |||||||||||||||||||||||||||
Apr-13 | 2,028 | $ | 75 | $ | 110 | |||||||||||||||||||||||||||
Jan-14 | 1,800 | $ | 75 | $ | 114 | |||||||||||||||||||||||||||
Oct-14 | 1,020 | $ | 80 | $ | 113 | |||||||||||||||||||||||||||
8,124 | 41% | |||||||||||||||||||||||||||||||
Fiscal 2018 | ||||||||||||||||||||||||||||||||
Jan-14 | 2,700 | $ | 75 | $ | 110 | |||||||||||||||||||||||||||
Oct-14 | 3,000 | $ | 80 | $ | 114 | |||||||||||||||||||||||||||
5,700 | 29% | |||||||||||||||||||||||||||||||
(a) | Fuel derivatives mature evenly over each month within the above fiscal periods. |
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | |||||||||||||||||||
Feb. 28, 2015 | ||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||
Selected Information for Cruise and Tour and Other Segments | Selected information for our segments was as follows (in millions): | |||||||||||||||||||
Three Months Ended February 28, | ||||||||||||||||||||
Revenues | Operating costs and | Selling | Depreciation | Operating | ||||||||||||||||
expenses | and | and | income (loss) | |||||||||||||||||
administrative | amortization | |||||||||||||||||||
2015 | ||||||||||||||||||||
North America Cruise Brands | $ | 2,193 | $ | 1,377 | $ | 287 | $ | 246 | $ | 283 | ||||||||||
EAA Cruise Brands | 1,303 | 943 | 179 | 138 | 43 | |||||||||||||||
Cruise Support | 26 | (1 | ) | 61 | 6 | (40 | ) | |||||||||||||
Tour and Other | 9 | 16 | 2 | 11 | (20 | ) | ||||||||||||||
$ | 3,531 | $ | 2,335 | $ | 529 | $ | 401 | $ | 266 | |||||||||||
2014 | ||||||||||||||||||||
North America Cruise Brands | $ | 2,119 | $ | 1,537 | $ | 297 | $ | 236 | $ | 49 | ||||||||||
EAA Cruise Brands | 1,433 | 1,039 | 187 | 152 | 55 | |||||||||||||||
Cruise Support | 25 | 1 | 35 | 9 | (20 | ) | ||||||||||||||
Tour and Other | 8 | 15 | 2 | 8 | (17 | ) | ||||||||||||||
$ | 3,585 | $ | 2,592 | $ | 521 | $ | 405 | $ | 67 | |||||||||||
Earnings_Loss_Per_Share_Tables
Earnings (Loss) Per Share (Tables) | 3 Months Ended | |||||||
Feb. 28, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Basic and Diluted Earnings Per Share Computation | Our basic and diluted earnings (loss) per share were computed as follows (in millions, except per share data): | |||||||
Three Months Ended | ||||||||
February 28, | ||||||||
2015 | 2014 | |||||||
Net income (loss) for basic and diluted earnings per share | $ | 49 | $ | (20 | ) | |||
Weighted-average common and ordinary shares outstanding | 777 | 776 | ||||||
Dilutive effect of equity plans | 2 | — | ||||||
Diluted weighted-average shares outstanding | 779 | 776 | ||||||
Basic and diluted earnings (loss) per share | $ | 0.06 | $ | (0.03 | ) | |||
Anti-dilutive equity awards excluded from diluted earnings (loss) per share | — | 6 | ||||||
computations | ||||||||
General_Statement_of_Operation
General - Statement of Operations (Details) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 |
Other ship operating | $598 | $594 |
Depreciation and amortization | 401 | 405 |
Operating income | 266 | 67 |
Loss before income taxes | 52 | -19 |
Net loss | 49 | -20 |
Loss per share | ||
Basic (in dollars per share) | $0.06 | ($0.03) |
Diluted (in dollars per share) | $0.06 | ($0.03) |
Reclassification of Expense | ||
Other ship operating | 594 | |
Depreciation and amortization | 405 | |
Operating income | 67 | |
Loss before income taxes | -19 | |
Net loss | -20 | |
Loss per share | ||
Basic (in dollars per share) | ($0.03) | |
Diluted (in dollars per share) | ($0.03) | |
As Previously Reported | Reclassification of Expense | ||
Other ship operating | 590 | |
Depreciation and amortization | 404 | |
Operating income | 72 | |
Loss before income taxes | -14 | |
Net loss | -15 | |
Loss per share | ||
Basic (in dollars per share) | ($0.02) | |
Diluted (in dollars per share) | ($0.02) | |
Adjustment | Reclassification of Expense | ||
Other ship operating | 4 | |
Depreciation and amortization | 1 | |
Operating income | -5 | |
Loss before income taxes | -5 | |
Net loss | ($5) | |
Loss per share | ||
Basic (in dollars per share) | ($0.01) | |
Diluted (in dollars per share) | ($0.01) |
General_Statement_of_Comprehen
General - Statement of Comprehensive Income (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 |
Net loss | $49 | ($20) |
Total comprehensive income | -674 | 92 |
Reclassification of Expense | ||
Net loss | -20 | |
Total comprehensive income | 92 | |
As Previously Reported | Reclassification of Expense | ||
Net loss | -15 | |
Total comprehensive income | 97 | |
Adjustment | Reclassification of Expense | ||
Net loss | -5 | |
Total comprehensive income | ($5) |
General_Balance_Sheet_Details
General - Balance Sheet (Details) (USD $) | 12 Months Ended | 84 Months Ended | ||||||
In Millions, except Per Share data, unless otherwise specified | Nov. 30, 2014 | Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2011 | Nov. 30, 2010 | Nov. 30, 2008 | Nov. 30, 2014 | Feb. 28, 2015 |
Inventories | $349 | $349 | $332 | |||||
Total current assets | 1,488 | 1,488 | 1,426 | |||||
Property and equipment, net | 32,819 | 32,819 | 32,294 | |||||
Other assets | 744 | 744 | 687 | |||||
Total assets | 39,448 | 39,448 | 38,714 | |||||
Retained earnings | 19,158 | 19,158 | 19,013 | |||||
Total shareholders’ equity | 24,204 | 24,204 | 23,350 | |||||
Total liabilities and shareholders' equity | 39,448 | 39,448 | 38,714 | |||||
Reclassification of Expense | ||||||||
Inventories | 349 | 349 | ||||||
Total current assets | 1,488 | 1,488 | ||||||
Property and equipment, net | 32,819 | 32,819 | ||||||
Other assets | 744 | 744 | ||||||
Total assets | 39,448 | 39,448 | ||||||
Retained earnings | 19,158 | 19,158 | ||||||
Total shareholders’ equity | 24,204 | 24,204 | ||||||
Total liabilities and shareholders' equity | 39,448 | 39,448 | ||||||
Cumulative impact of revision, reduction in retained earnings | 84 | |||||||
Impact of revision on diluted earnings per share, decrease (in dollars per share) | $0.03 | $0.03 | $0.02 | $0 | $0 | $0.03 | $0.11 | |
As Previously Reported | Reclassification of Expense | ||||||||
Inventories | 364 | 364 | ||||||
Total current assets | 1,503 | 1,503 | ||||||
Property and equipment, net | 32,773 | 32,773 | ||||||
Other assets | 859 | 859 | ||||||
Total assets | 39,532 | 39,532 | ||||||
Retained earnings | 19,242 | 19,242 | ||||||
Total shareholders’ equity | 24,288 | 24,288 | ||||||
Total liabilities and shareholders' equity | 39,532 | 39,532 | ||||||
Adjustment | Reclassification of Expense | ||||||||
Inventories | -15 | -15 | ||||||
Total current assets | -15 | -15 | ||||||
Property and equipment, net | 46 | 46 | ||||||
Other assets | -115 | -115 | ||||||
Total assets | -84 | -84 | ||||||
Retained earnings | -84 | -84 | ||||||
Total shareholders’ equity | -84 | -84 | ||||||
Total liabilities and shareholders' equity | ($84) | ($84) |
General_Statement_of_Cash_Flow
General - Statement of Cash Flows (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 |
Net loss | $49 | ($20) |
Depreciation and amortization | 401 | 405 |
Inventories | 7 | -9 |
Insurance recoverables, prepaid expenses and other | 20 | 114 |
Claims reserves and accrued and other liabilities | -35 | -128 |
Reclassification of Expense | ||
Net loss | -20 | |
Depreciation and amortization | 405 | |
Inventories | -9 | |
Insurance recoverables, prepaid expenses and other | 114 | |
Claims reserves and accrued and other liabilities | -128 | |
As Previously Reported | Reclassification of Expense | ||
Net loss | -15 | |
Depreciation and amortization | 404 | |
Inventories | -5 | |
Insurance recoverables, prepaid expenses and other | 103 | |
Claims reserves and accrued and other liabilities | -125 | |
Adjustment | Reclassification of Expense | ||
Net loss | -5 | |
Depreciation and amortization | 1 | |
Inventories | -4 | |
Insurance recoverables, prepaid expenses and other | 11 | |
Claims reserves and accrued and other liabilities | ($3) |
General_Other_Details
General - Other (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Fees, taxes and charges collected by us from our guests | $135 | $137 |
Cost of Property Repairs and Maintenance | $250 | $252 |
Unsecured_Debt_Additional_Info
Unsecured Debt - Additional Information (Detail) (USD $) | 1 Months Ended |
Feb. 28, 2015 | |
Debt Instrument [Line Items] | |
Weighted average interest rate | 0.40% |
Export Credit Facility | |
Debt Instrument [Line Items] | |
Maximum borrowing capacity | $505,000,000 |
Euro-denominated Export Credit Facility | |
Debt Instrument [Line Items] | |
Proceeds from credit facility | 472,000,000 |
Commercial Paper | |
Debt Instrument [Line Items] | |
Short-term borrowings | 856,000,000 |
Bank Loans | Euro-denominated | |
Debt Instrument [Line Items] | |
Short-term borrowings | $18,000,000 |
Contingencies_Additional_Infor
Contingencies - Additional Information (Detail) (USD $) | Feb. 28, 2015 | Nov. 30, 2014 |
In Millions, unless otherwise specified | ||
Loss Contingencies [Line Items] | ||
Required standby letter of credit if Carnival Corporation's credit rating falls below BBB | ||
Lease Out And Lease Back Type Transactions | ||
Loss Contingencies [Line Items] | ||
Estimated contingent obligations | 374 | |
Estimated termination payment in the event that Carnival Corporation were to default on its contingent obligations and assuming performance by all other participants | 22 | |
Required standby letter of credit if Carnival Corporation's credit rating falls below BBB | $30 |
Fair_Value_Measurements_Deriva2
Fair Value Measurements, Derivative Instruments and Hedging Activities - Estimated Carrying and Fair Values of Financial Instrument Assets and Liabilities Not Measured at Fair Value on Recurring Basis (Detail) (Financial Instruments Not Measured at Fair Value on a Recurring Basis, USD $) | Feb. 28, 2015 | Nov. 30, 2014 |
In Millions, unless otherwise specified | ||
Carrying Value | ||
Assets | ||
Cash and cash equivalents | $241 | $240 |
Restricted cash | 7 | 11 |
Long-term other assets | 150 | 156 |
Total | 398 | 407 |
Liabilities | ||
Total | 9,139 | 9,088 |
Carrying Value | Fixed Rate | ||
Liabilities | ||
Debt | 4,290 | 4,433 |
Carrying Value | Floating Rate | ||
Liabilities | ||
Debt | 4,849 | 4,655 |
Fair Value | Level 1 | ||
Assets | ||
Cash and cash equivalents | 241 | 240 |
Restricted cash | 7 | 11 |
Long-term other assets | 1 | 1 |
Total | 249 | 252 |
Liabilities | ||
Total | 0 | 0 |
Fair Value | Level 1 | Fixed Rate | ||
Liabilities | ||
Debt | 0 | 0 |
Fair Value | Level 1 | Floating Rate | ||
Liabilities | ||
Debt | 0 | 0 |
Fair Value | Level 2 | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Long-term other assets | 102 | 103 |
Total | 102 | 103 |
Liabilities | ||
Total | 9,453 | 9,305 |
Fair Value | Level 2 | Fixed Rate | ||
Liabilities | ||
Debt | 4,624 | 4,743 |
Fair Value | Level 2 | Floating Rate | ||
Liabilities | ||
Debt | 4,829 | 4,562 |
Fair Value | Level 3 | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Long-term other assets | 44 | 49 |
Total | 44 | 49 |
Liabilities | ||
Total | 0 | 0 |
Fair Value | Level 3 | Fixed Rate | ||
Liabilities | ||
Debt | 0 | 0 |
Fair Value | Level 3 | Floating Rate | ||
Liabilities | ||
Debt | $0 | $0 |
Fair_Value_Measurements_Deriva3
Fair Value Measurements, Derivative Instruments and Hedging Activities - Estimated Fair Value and Basis of Valuation of Financial Instrument Assets And Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) | Feb. 28, 2015 | Nov. 30, 2014 |
In Millions, unless otherwise specified | ||
Assets | ||
Derivative financial instruments | $58 | $78 |
Liabilities | ||
Derivative financial instruments | 431 | 342 |
Financial Instruments Measured at Fair Value on a Recurring Basis | Level 1 | ||
Assets | ||
Total | 172 | 223 |
Financial Instruments Measured at Fair Value on a Recurring Basis | Level 1 | Money market funds | ||
Assets | ||
Cash equivalents | 39 | 91 |
Restricted cash | 21 | 19 |
Financial Instruments Measured at Fair Value on a Recurring Basis | Level 1 | Marketable securities held in rabbi trusts | ||
Assets | ||
Marketable securities held in rabbi trusts | 112 | 113 |
Financial Instruments Measured at Fair Value on a Recurring Basis | Level 2 | ||
Assets | ||
Total | 28 | 23 |
Liabilities | ||
Total | 392 | 278 |
Financial Instruments Measured at Fair Value on a Recurring Basis | Level 2 | Marketable securities held in rabbi trusts | ||
Assets | ||
Marketable securities held in rabbi trusts | 9 | 9 |
Financial Instruments Measured at Fair Value on a Recurring Basis | Level 2 | Derivative financial instruments | ||
Assets | ||
Derivative financial instruments | 19 | 14 |
Financial Instruments Measured at Fair Value on a Recurring Basis | Level 2 | Derivative financial instruments | ||
Liabilities | ||
Derivative financial instruments | 392 | 278 |
Financial Instruments Measured at Fair Value on a Recurring Basis | Level 3 | ||
Assets | ||
Total | 20 | 20 |
Financial Instruments Measured at Fair Value on a Recurring Basis | Level 3 | Marketable securities held in rabbi trusts | ||
Assets | ||
Marketable securities held in rabbi trusts | ||
Financial Instruments Measured at Fair Value on a Recurring Basis | Level 3 | Long-term other assets | ||
Assets | ||
Long-term other assets | $20 | $20 |
Fair_Value_Measurements_Deriva4
Fair Value Measurements, Derivative Instruments and Hedging Activities - Reconciliation of Changes in Carrying Amounts of Goodwill (Detail) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Feb. 28, 2015 |
Goodwill [Roll Forward] | |
Beginning Balance | $3,127 |
Foreign currency translation adjustment | -72 |
Ending Balance | 3,055 |
Accumulated goodwill impairment | 153 |
North America Cruise Brands | |
Goodwill [Roll Forward] | |
Beginning Balance | 1,898 |
Foreign currency translation adjustment | 0 |
Ending Balance | 1,898 |
EAA Cruise Brands | |
Goodwill [Roll Forward] | |
Beginning Balance | 1,229 |
Foreign currency translation adjustment | -72 |
Ending Balance | $1,157 |
Fair_Value_Measurements_Deriva5
Fair Value Measurements, Derivative Instruments and Hedging Activities - Reconciliation of Changes in Carrying Amounts of Intangible Assets Not Subject to Amortization (Detail) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Feb. 28, 2015 |
Indefinite-lived Intangible Assets [Roll Forward] | |
Beginning Balance | $1,265 |
Foreign currency translation adjustment | -18 |
Ending Balance | 1,247 |
North America Cruise Brands | |
Indefinite-lived Intangible Assets [Roll Forward] | |
Beginning Balance | 927 |
Foreign currency translation adjustment | 0 |
Ending Balance | 927 |
EAA Cruise Brands | |
Indefinite-lived Intangible Assets [Roll Forward] | |
Beginning Balance | 338 |
Foreign currency translation adjustment | -18 |
Ending Balance | $320 |
Fair_Value_Measurements_Deriva6
Fair Value Measurements, Derivative Instruments and Hedging Activities - Estimated Fair Values of Derivative Financial Instruments and Location on Consolidated Balance Sheets (Detail) (USD $) | Feb. 28, 2015 | Nov. 30, 2014 |
In Millions, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $19 | $14 |
Derivative liabilities | 392 | 278 |
Designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 52 | 49 |
Not Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 340 | 229 |
Net investment hedges | Designated as hedging instruments | Prepaid Expenses and Other | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 10 | 6 |
Net investment hedges | Designated as hedging instruments | Other Assets – Long-term | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 8 | 6 |
Interest Rate Swaps | Designated as hedging instruments | Prepaid Expenses and Other | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 1 | 1 |
Interest Rate Swaps | Designated as hedging instruments | Other Assets – Long-term | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 1 | |
Interest Rate Swaps | Designated as hedging instruments | Accrued Liabilities And Other | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 12 | 13 |
Interest Rate Swaps | Designated as hedging instruments | Other Long-term Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 34 | 35 |
Foreign currency zero cost collars | Designated as hedging instruments | Accrued Liabilities And Other | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 1 | |
Foreign currency zero cost collars | Designated as hedging instruments | Other Long-term Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 6 | |
Fuel | Not Designated as Hedging Instruments | Accrued Liabilities And Other | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 132 | 90 |
Fuel | Not Designated as Hedging Instruments | Other Long-term Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 208 | 139 |
Foreign Currency Forward | Designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 403 | |
Foreign Currency Forward | Designated as hedging instruments | Accrued Liabilities And Other | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 652 | |
Interest Rate Swaps | Cash Flow Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Interest rate cash flow hedge asset at fair value | 662 | 750 |
Interest Rate Swaps | Fair Value Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Interest rate fair value hedge asset at fair value | $500 | $500 |
Fair_Value_Measurements_Deriva7
Fair Value Measurements, Derivative Instruments and Hedging Activities - Offsetting Derivative Instruments (Details) (USD $) | Feb. 28, 2015 | Nov. 30, 2014 |
In Millions, unless otherwise specified | ||
Assets | ||
Gross Amounts | $58 | $78 |
Gross Amounts Offset in the Balance Sheet | -39 | -64 |
Total Net Amounts Presented in the Balance Sheet | 19 | 14 |
Gross Amounts not Offset in the Balance Sheet | -18 | -14 |
Net Amounts | 1 | 0 |
Liabilities | ||
Gross Amounts | 431 | 342 |
Gross Amounts Offset in the Balance Sheet | -39 | -64 |
Total Net Amounts Presented in the Balance Sheet | 392 | 278 |
Gross Amounts not Offset in the Balance Sheet | -18 | -14 |
Net Amounts | $374 | $264 |
Fair_Value_Measurements_Deriva8
Fair Value Measurements, Derivative Instruments and Hedging Activities - Derivatives Qualifying and Designated as Hedging Instruments Recognized in Other Comprehensive Income (Detail) (USD $) | 3 Months Ended | ||
Feb. 28, 2015 | Feb. 28, 2014 | Nov. 30, 2014 | |
Fuel | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Collateral posted | $15,000,000 | ||
Collateral required to be received | 0 | 0 | |
Collateral required to be posted | 0 | ||
Minimum | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative asset, cash collateral netting threshold, fair value | 100,000,000 | ||
Net investment hedges | Designated as hedging instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Effective portions of derivatives qualifying and designated as hedging instruments recognized in other comprehensive income | 39,000,000 | 2,000,000 | |
Foreign currency zero cost collars | Designated as hedging instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Effective portions of derivatives qualifying and designated as hedging instruments recognized in other comprehensive income | -37,000,000 | -3,000,000 | |
Interest Rate Swaps | Designated as hedging instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Effective portions of derivatives qualifying and designated as hedging instruments recognized in other comprehensive income | ($2,000,000) | ($4,000,000) |
Fair_Value_Measurements_Deriva9
Fair Value Measurements, Derivative Instruments and Hedging Activities - Fuel Derivatives Outstanding (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 |
Fuel Derivatives 2015 Maturity | ||
Derivative [Line Items] | ||
Barrels | 7,803,000 | |
Percent of Estimated Fuel Consumption | 50.00% | |
Fuel Derivatives 2015 Maturity November 2011 Transaction Date | ||
Derivative [Line Items] | ||
Barrels | 1,620,000 | |
Weighted-Average Floor Price (in dollars per barrel) | 80 | |
Weighted-Average Ceiling Price (in dollars per barrel) | 114 | |
Fuel Derivatives 2015 Maturity February 2012 Transaction Date | ||
Derivative [Line Items] | ||
Barrels | 1,620,000 | |
Weighted-Average Floor Price (in dollars per barrel) | 80 | |
Weighted-Average Ceiling Price (in dollars per barrel) | 125 | |
Fuel Derivatives 2015 Maturity June 2012 Transaction Date | ||
Derivative [Line Items] | ||
Barrels | 927,000 | |
Weighted-Average Floor Price (in dollars per barrel) | 74 | |
Weighted-Average Ceiling Price (in dollars per barrel) | 110 | |
Fuel Derivatives 2015 Maturity April 2013 Transaction Date | ||
Derivative [Line Items] | ||
Barrels | 783,000 | |
Weighted-Average Floor Price (in dollars per barrel) | 80 | |
Weighted-Average Ceiling Price (in dollars per barrel) | 111 | |
Fuel Derivatives 2015 Maturity May 2013 Transaction Date | ||
Derivative [Line Items] | ||
Barrels | 1,413,000 | |
Weighted-Average Floor Price (in dollars per barrel) | 80 | |
Weighted-Average Ceiling Price (in dollars per barrel) | 110 | |
Fuel Derivatives 2015 Maturity October 2014 Transaction Date | ||
Derivative [Line Items] | ||
Barrels | 1,440,000 | |
Weighted-Average Floor Price (in dollars per barrel) | 79 | |
Weighted-Average Ceiling Price (in dollars per barrel) | 110 | |
Fuel Derivatives 2016 Maturity | ||
Derivative [Line Items] | ||
Barrels | 8,724,000 | |
Percent of Estimated Fuel Consumption | 44.00% | |
Fuel Derivatives 2016 Maturity June 2012 Transaction Date | ||
Derivative [Line Items] | ||
Barrels | 3,564,000 | |
Weighted-Average Floor Price (in dollars per barrel) | 75 | |
Weighted-Average Ceiling Price (in dollars per barrel) | 108 | |
Fuel Derivatives 2016 Maturity February 2013 Transaction Date | ||
Derivative [Line Items] | ||
Barrels | 2,160,000 | |
Weighted-Average Floor Price (in dollars per barrel) | 80 | |
Weighted-Average Ceiling Price (in dollars per barrel) | 120 | |
Fuel Derivatives 2016 Maturity April 2013 Transaction Date | ||
Derivative [Line Items] | ||
Barrels | 3,000,000 | |
Weighted-Average Floor Price (in dollars per barrel) | 75 | |
Weighted-Average Ceiling Price (in dollars per barrel) | 115 | |
Fuel Derivatives 2017 Maturity | ||
Derivative [Line Items] | ||
Barrels | 8,124,000 | |
Percent of Estimated Fuel Consumption | 41.00% | |
Fuel Derivatives 2017 Maturity February 2013 Transaction Date | ||
Derivative [Line Items] | ||
Barrels | 3,276,000 | |
Weighted-Average Floor Price (in dollars per barrel) | 80 | |
Weighted-Average Ceiling Price (in dollars per barrel) | 115 | |
Fuel Derivatives 2017 Maturity April 2013 Transaction Date | ||
Derivative [Line Items] | ||
Barrels | 2,028,000 | |
Weighted-Average Floor Price (in dollars per barrel) | 75 | |
Weighted-Average Ceiling Price (in dollars per barrel) | 110 | |
Fuel Derivatives 2017 Maturity January 2014 Transaction Date | ||
Derivative [Line Items] | ||
Barrels | 1,800,000 | |
Weighted-Average Floor Price (in dollars per barrel) | 75 | |
Weighted-Average Ceiling Price (in dollars per barrel) | 114 | |
Fuel Derivatives 2017 Maturity October 2014 Transaction Date | ||
Derivative [Line Items] | ||
Barrels | 1,020,000 | |
Weighted-Average Floor Price (in dollars per barrel) | 80 | |
Weighted-Average Ceiling Price (in dollars per barrel) | 113 | |
Fuel Derivatives 2018 Maturity | ||
Derivative [Line Items] | ||
Barrels | 5,700,000 | |
Percent of Estimated Fuel Consumption | 29.00% | |
Fuel Derivatives 2018 Maturity January 2014 Transaction Date | ||
Derivative [Line Items] | ||
Barrels | 2,700,000 | |
Weighted-Average Floor Price (in dollars per barrel) | 75 | |
Weighted-Average Ceiling Price (in dollars per barrel) | 110 | |
Fuel Derivatives 2018 Maturity October 2014 Transaction Date | ||
Derivative [Line Items] | ||
Barrels | 3,000,000 | |
Weighted-Average Floor Price (in dollars per barrel) | 80 | |
Weighted-Average Ceiling Price (in dollars per barrel) | 114 | |
Fuel | ||
Derivative [Line Items] | ||
Unrealized gain (loss), net on derivatives | ($112) | ($17) |
Realized gain (loss), net on derivatives | ($57) | $1 |
Recovered_Sheet1
Fair Value Measurements, Derivative Instruments and Hedging Activities - Foreign Currency Exchange Rate Risks (Detail) (USD $) | 3 Months Ended | 0 Months Ended | 1 Months Ended | |||
Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2015 | Nov. 30, 2014 | Feb. 28, 2015 | Jan. 31, 2015 | |
Fair Value, Measurement Inputs, Disclosure [Line Items] | ||||||
Cumulative foreign currency transaction gains and (losses) included in the cumulative translation adjustment component of AOCI | $431,000,000 | $431,000,000 | $359,000,000 | $431,000,000 | ||
Foreign currency transaction gains (losses) | 72,000,000 | -40,000,000 | ||||
Foreign currency contract commitments | 1,600,000,000 | 1,600,000,000 | 1,600,000,000 | |||
Percentage of debt bore fixed interest rates, including the effect of interest rate swaps | 49.00% | 49.00% | 52.00% | 49.00% | ||
Percentage of debt bore floating interest rates, including the effect of interest rate swaps | 51.00% | 51.00% | 48.00% | 51.00% | ||
Foreign Currency Intercompany Payable | ||||||
Fair Value, Measurement Inputs, Disclosure [Line Items] | ||||||
Designated debt and other obligations as non-derivative hedges of net investments in foreign operations | 1,800,000,000 | 2,400,000,000 | ||||
Foreign currency zero cost collars | Princess Cruises | Cash Flow Hedging | Maximum | ||||||
Fair Value, Measurement Inputs, Disclosure [Line Items] | ||||||
Currency exchange risk hedged | 590,000,000 | |||||
Foreign currency zero cost collars | Princess Cruises | Cash Flow Hedging | Minimum | ||||||
Fair Value, Measurement Inputs, Disclosure [Line Items] | ||||||
Currency exchange risk hedged | 504,000,000 | |||||
Foreign currency zero cost collars | Seabourn Cruises | Cash Flow Hedging | Maximum | ||||||
Fair Value, Measurement Inputs, Disclosure [Line Items] | ||||||
Currency exchange risk hedged | 221,000,000 | |||||
Foreign currency zero cost collars | Seabourn Cruises | Cash Flow Hedging | Minimum | ||||||
Fair Value, Measurement Inputs, Disclosure [Line Items] | ||||||
Currency exchange risk hedged | 185,000,000 | |||||
Foreign currency zero cost collars | P&O Cruises (UK) Britannia | Cash Flow Hedging | ||||||
Fair Value, Measurement Inputs, Disclosure [Line Items] | ||||||
Settlement of foreign currency zero cost collars, amount of loss recognized in other comprehensive loss | $33,000,000 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Nov. 30, 2014 |
ship | ship | ||
Segment Reporting Information [Line Items] | |||
Number of Reportable Segments | 3 | ||
Revenues | $3,531 | $3,585 | |
Operating expenses | 2,335 | 2,592 | |
Selling and administrative | 529 | 521 | |
Depreciation and amortization | 401 | 405 | |
Operating Income | 266 | 67 | |
North America Cruise Brands | |||
Segment Reporting Information [Line Items] | |||
Revenues | 2,193 | 2,119 | |
Operating expenses | 1,377 | 1,537 | |
Selling and administrative | 287 | 297 | |
Depreciation and amortization | 246 | 236 | |
Operating Income | 283 | 49 | |
EAA Cruise Brands | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,303 | 1,433 | |
Operating expenses | 943 | 1,039 | |
Selling and administrative | 179 | 187 | |
Depreciation and amortization | 138 | 152 | |
Operating Income | 43 | 55 | |
Cruise Support | |||
Segment Reporting Information [Line Items] | |||
Revenues | 26 | 25 | |
Operating expenses | -1 | 1 | |
Selling and administrative | 61 | 35 | |
Depreciation and amortization | 6 | 9 | |
Operating Income | -40 | -20 | |
Tour and Other | |||
Segment Reporting Information [Line Items] | |||
Number of cruise ships | 3 | 1 | |
Revenues | 9 | 8 | |
Operating expenses | 16 | 15 | |
Selling and administrative | 2 | 2 | |
Depreciation and amortization | 11 | 8 | |
Operating Income | ($20) | ($17) |
Earnings_Loss_Per_Share_Basic_
Earnings (Loss) Per Share - Basic and Diluted Earnings (Loss) Per Share Computation (Detail) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 |
Earnings Per Share [Abstract] | ||
Net Income (Loss) | $49 | ($20) |
Weighted-average common and ordinary shares outstanding | 777 | 776 |
Dilutive effect of equity plans | 2 | 0 |
Diluted weighted-average shares outstanding | 779 | 776 |
Basic and diluted earnings (loss) per share (in dollars per share) | $0.06 | ($0.03) |
Anti-dilutive equity awards excluded from diluted earnings (loss) per share computations | 0 | 6 |