Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Aug. 31, 2016 | Sep. 23, 2016 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Aug. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --11-30 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Registrant Name | CARNIVAL CORP | |
Entity Central Index Key | 815,097 | |
Entity Common Stock, Shares Outstanding | 537,602,085 | |
CARNIVAL PLC | ||
Entity Registrant Name | CARNIVAL PLC | |
Entity Central Index Key | 1,125,259 | |
Entity Common Stock, Shares Outstanding | 216,457,117 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2016 | Aug. 31, 2015 | |
Cruise | ||||
Passenger tickets | $ 3,803 | $ 3,631 | $ 9,217 | $ 8,891 |
Onboard and other | 1,146 | 1,102 | 3,047 | 2,918 |
Tour and other | 148 | 150 | 190 | 194 |
Revenues | 5,097 | 4,883 | 12,454 | 12,003 |
Cruise | ||||
Commissions, transportation and other | 646 | 603 | 1,723 | 1,671 |
Onboard and other | 171 | 170 | 411 | 395 |
Payroll and related | 494 | 453 | 1,488 | 1,388 |
Fuel | 265 | 345 | 648 | 996 |
Food | 260 | 255 | 755 | 737 |
Other ship operating | 643 | 582 | 1,914 | 1,913 |
Tour and other | 84 | 82 | 125 | 129 |
Operating expenses | 2,563 | 2,490 | 7,064 | 7,229 |
Selling and administrative | 529 | 484 | 1,613 | 1,504 |
Depreciation and amortization | 443 | 399 | 1,303 | 1,206 |
Costs and Expenses | 3,535 | 3,373 | 9,980 | 9,939 |
Operating Income | 1,562 | 1,510 | 2,474 | 2,064 |
Nonoperating (Expense) Income | ||||
Interest income | 2 | 2 | 5 | 6 |
Interest expense, net of capitalized interest | (61) | (53) | (168) | (167) |
Losses on fuel derivatives, net | (36) | (197) | (102) | (378) |
Other (expense) income, net | (2) | (12) | 6 | 3 |
Nonoperating (Expense) Income, Total | (97) | (260) | (259) | (536) |
Income Before Income Taxes | 1,465 | 1,250 | 2,215 | 1,528 |
Income Tax Expense, Net | (41) | (34) | (44) | (41) |
Net Income | $ 1,424 | $ 1,216 | $ 2,171 | $ 1,487 |
Earnings Per Share | ||||
Earnings Per Share, Basic (in dollars per share) | $ 1.93 | $ 1.56 | $ 2.89 | $ 1.91 |
Earnings Per Share, Diluted (in dollars per share) | 1.93 | 1.56 | 2.88 | 1.91 |
Dividends Declared Per Share (in dollars per share) | $ 0.35 | $ 0.30 | $ 1 | $ 0.80 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2016 | Aug. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 1,424 | $ 1,216 | $ 2,171 | $ 1,487 |
Items Included in Other Comprehensive (Loss) Income | ||||
Change in foreign currency translation adjustment | (366) | 80 | (294) | (738) |
Other | 2 | 21 | 23 | (24) |
Other Comprehensive (Loss) Income | (364) | 101 | (271) | (762) |
Total Comprehensive Income | $ 1,060 | $ 1,317 | $ 1,900 | $ 725 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Aug. 31, 2016 | Nov. 30, 2015 |
Current Assets | ||
Cash and cash equivalents | $ 462 | $ 1,395 |
Trade and other receivables, net | 321 | 303 |
Insurance recoverables | 102 | 109 |
Inventories | 314 | 330 |
Prepaid expenses and other | 355 | 314 |
Total current assets | 1,554 | 2,451 |
Property and Equipment, Net | 32,864 | 31,818 |
Goodwill | 2,964 | 3,010 |
Other Intangibles | 1,290 | 1,308 |
Other Assets | 660 | 650 |
Total assets | 39,332 | 39,237 |
Current Liabilities | ||
Short-term borrowings | 334 | 30 |
Current portion of long-term debt | 739 | 1,344 |
Accounts payable | 704 | 627 |
Accrued liabilities and other | 1,738 | 1,683 |
Customer deposits | 3,585 | 3,272 |
Total current liabilities | 7,100 | 6,956 |
Long-Term Debt | 8,320 | 7,413 |
Other Long-Term Liabilities | 1,012 | 1,097 |
Contingencies | ||
Shareholders’ Equity | ||
Additional paid-in capital | 8,618 | 8,562 |
Retained earnings | 21,488 | 20,060 |
Accumulated other comprehensive loss | (2,012) | (1,741) |
Treasury stock, 114 shares at 2016 and 70 shares at 2015 of Carnival Corporation and 26 shares at 2016 and 27 shares at 2015 of Carnival plc, at cost | (5,559) | (3,475) |
Total shareholders’ equity | 22,900 | 23,771 |
Liabilities and Equity, Total | 39,332 | 39,237 |
Common Stock | ||
Shareholders’ Equity | ||
Common stock | 7 | 7 |
Ordinary Shares | ||
Shareholders’ Equity | ||
Common stock | $ 358 | $ 358 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions | Aug. 31, 2016 | Nov. 30, 2015 |
Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 1,960 | 1,960 |
Common stock, shares issued (in shares) | 654 | 653 |
Treasury stock, shares (in shares) | 114 | 70 |
Ordinary Shares | ||
Common stock, par value (in dollars per share) | $ 1.66 | $ 1.66 |
Common stock, shares issued (in shares) | 216 | 216 |
Treasury stock, shares (in shares) | 26 | 27 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Aug. 31, 2016 | Aug. 31, 2015 | |
OPERATING ACTIVITIES | ||
Net Income | $ 2,171 | $ 1,487 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 1,303 | 1,206 |
Losses on fuel derivatives | 102 | 378 |
Share-based compensation | 40 | 38 |
Other, net | 46 | 19 |
Adjustments to reconcile net income to net cash provided by operating activities | 3,662 | 3,128 |
Changes in operating assets and liabilities | ||
Receivables | (35) | (23) |
Inventories | 15 | 35 |
Insurance recoverables, prepaid expenses and other | (10) | 94 |
Accounts payable | 88 | (23) |
Accrued and other liabilities | (5) | (19) |
Customer deposits | 395 | 375 |
Net cash provided by operating activities | 4,110 | 3,567 |
INVESTING ACTIVITIES | ||
Additions to property and equipment | (2,416) | (1,704) |
Proceeds from sales of ships | 19 | 25 |
Payments of fuel derivative settlements | (231) | (139) |
Collateral proceeds (payments) for fuel derivatives | 22 | (22) |
Other, net | (16) | 35 |
Net cash used in investing activities | (2,622) | (1,805) |
FINANCING ACTIVITIES | ||
Proceeds from (repayments of) short-term borrowings, net | 301 | (625) |
Principal repayments of long-term debt | (971) | (772) |
Proceeds from issuance of long-term debt | 1,044 | 472 |
Dividends paid | (721) | (584) |
Purchases of treasury stock | (2,110) | (166) |
Sales of treasury stock | 40 | 167 |
Other, net | (9) | (1) |
Net cash used in financing activities | (2,426) | (1,509) |
Effect of exchange rate changes on cash and cash equivalents | 5 | (45) |
Net (decrease) increase in cash and cash equivalents | (933) | 208 |
Cash and cash equivalents at beginning of period | 1,395 | 331 |
Cash and cash equivalents at end of period | $ 462 | $ 539 |
General
General | 9 Months Ended |
Aug. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | General The consolidated financial statements include the accounts of Carnival Corporation and Carnival plc and their respective subsidiaries. Together with their consolidated subsidiaries, they are referred to collectively in these consolidated financial statements and elsewhere in this joint Quarterly Report on Form 10-Q as “Carnival Corporation & plc,” “our,” “us” and “we.” Basis of Presentation The Consolidated Balance Sheet at August 31, 2016 , the Consolidated Statements of Income and the Consolidated Statements of Comprehensive Income for the three and nine months ended August 31, 2016 and 2015 and the Consolidated Statements of Cash Flows for the nine months ended August 31, 2016 and 2015 are unaudited and, in the opinion of our management, contain all adjustments necessary for a fair statement. 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 2015 joint Annual Report on Form 10-K (“Form 10-K”) filed with the U.S. Securities and Exchange Commission on January 29, 2016. Our operations are seasonal and results for interim periods are not necessarily indicative of the results for the entire year. Accounting Pronouncements Amended guidance was issued by the Financial Accounting Standards Board (“FASB”) regarding the accounting for Service Concession Arrangements . The new guidance defines a service concession as an arrangement between a public-sector grantor, such as a port authority, and a company that will operate and maintain the grantor's infrastructure for a specified period of time. In exchange, the company may be given a right to charge the public, such as our cruise guests, for the use of the infrastructure. This guidance required us to record certain of the infrastructure we had constructed to be used by us pursuant to a service concession arrangement outside of property and equipment. On December 1, 2015, we adopted this guidance and, accordingly, reclassified $70 million from Property and Equipment, Net to Other Intangibles on our November 30, 2015 Consolidated Balance Sheet (see “Note 4 - Nonfinancial Instruments that are Measured at Fair Value on a Nonrecurring Basis”). The FASB issued amended guidance regarding accounting for Interest - Imputation of Interest , which simplifies the presentation of debt issuance costs. The guidance requires that debt issuance costs related to a recognized debt liability be presented on the balance sheet as a direct deduction from the carrying amount of that debt liability. This guidance is required to be adopted by us in the first quarter of fiscal 2017, and will be applied on a retrospective basis. The adoption of this guidance is not expected to have a significant impact on our Consolidated Balance Sheets. The FASB issued amended guidance regarding accounting for Intangibles - Goodwill and Other - Internal-Use Software , which clarifies the accounting for fees paid in a cloud computing arrangement. The amendments provide guidance to customers about whether a cloud computing arrangement includes a software license or if the arrangement should be accounted for as a service contract. The amendments will impact the accounting for software licenses but will not change a customer's accounting for service contracts. This guidance is required to be adopted by us in the first quarter of fiscal 2017 on either a prospective or retrospective basis. The adoption of this guidance is not expected to have a material impact to our consolidated financial statements. The FASB issued amended guidance regarding accounting for Revenue from Contracts with Customers , which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. When effective, this standard will replace most existing revenue recognition guidance in U.S. generally accepted accounting principles (“U.S. GAAP”). The standard also requires more detailed disclosures and provides additional guidance for transactions that were not comprehensively addressed in U.S. GAAP. This guidance is required to be adopted by us in the first quarter of fiscal 2019 by either recasting all years presented in our financial statements or by recording the impact of adoption as an adjustment to retained earnings at the beginning of the year of adoption. We are currently evaluating the impact this guidance will have on our consolidated financial statements. The FASB issued guidance regarding accounting for Leases , which requires an entity to recognize both assets and liabilities arising from financing and operating leases, along with additional qualitative and quantitative disclosures. This guidance is required to be adopted by us in the first quarter of fiscal 2020. We are currently evaluating the impact this guidance will have on our consolidated financial statements. 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 $148 million and $141 million and $407 million and $398 million for the three and nine months ended August 31, 2016 and 2015 , respectively. |
Unsecured Debt
Unsecured Debt | 9 Months Ended |
Aug. 31, 2016 | |
Debt Disclosure [Abstract] | |
Unsecured Debt | Unsecured Debt At August 31, 2016 , our short-term borrowings consisted of euro- and U.S. dollar-denominated commercial paper of $246 million and $ 85 million , respectively, and euro-denominated bank loans of $3 million with an aggregate weighted-average floating interest rate of 0.2% . In February 2016 , we issued $555 million of euro-denominated, publicly-traded notes, which bear interest at 1.625% and are due in February 2021. In April 2016, we borrowed $ 379 million under an export credit facility, the proceeds of which were used to pay for a portion of AIDA Cruises' (“AIDA”) AIDAprima purchase price. Of this facility, a portion bears fixed and a portion bears floating interest rates. The facility is due in semi-annual installments through August 2027. In May 2016, we entered into four export credit facilities that will provide us with the ability to borrow up to an aggregate of $2.3 billion . Proceeds from these facilities will be used to pay for a portion of the purchase price of four cruise ships, which are expected to be delivered between February 2019 and September 2020. These borrowings will be due in semi-annual installments through September 2032. In May 2016, we exercised our option to extend the termination date of our multi-currency revolving credit facility from June 2020 to June 2021. In addition, the total capacity of the revolving credit facility increased to $2.6 billion (comprised of $1.9 billion , €500 million and £169 million ). In July 2016, we borrowed $ 110 million under a euro-denominated, floating rate bank loan, due in July 2021. In July 2016, we entered into a $ 168 million euro-denominated, fixed rate bank loan, which was drawn in September 2016 and is due in September 2020. In July 2016, we entered into a $ 100 million , floating rate bank loan, which is expected to be drawn in November 2016, and is due in November 2021. In August 2016, we canceled an export credit facility that provided us with the ability to borrow up to an aggregate of $201 million to pay for a portion of the purchase price of a Seabourn ship, which is expected to be delivered in November 2016. In August 2016, we extended the termination date of a $100 million , floating rate bank loan, from October 2016 to October 2021. We use the net proceeds from our borrowings for general corporate purposes and purchases of new ships. |
Contingencies
Contingencies | 9 Months Ended |
Aug. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Litigation 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 material impact on our results of operations. 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 the maximum amount of our liability, net of any insurance recoverables, is typically limited to our self-insurance retention levels. We believe the ultimate outcome of these claims and lawsuits will not have a material impact on our consolidated financial statements. Contingent Obligations – Lease Out and Lease Back Type (“LILO”) Transactions At August 31, 2016 , we had estimated contingent obligations totaling $364 million , excluding termination payments as discussed below, to participants in LILO transactions for two of our ships. At the inception of these leases, we paid the aggregate of the net present value of these obligations 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 we were to default on our contingent obligations and assuming performance by all other participants, we estimate that we would, as of August 31, 2016 , be responsible for a termination payment of $13 million . In January 2016, we elected to exercise our options to terminate, at no cost, the LILO transactions as of January 1, 2017 for one ship and as of January 1, 2018 for the second ship. In advance of the termination dates, 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 we 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, we 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 our credit rating, which is BBB+ , falls below BBB, we will be required to provide a standby letter of credit for $27 million , or, alternatively, provide mortgages for this aggregate amount on these two ships. Contingent Obligations – Indemnifications Some of the debt contracts we enter into include indemnification provisions obligating us to make payments to the counterparty if certain events occur. These contingencies generally relate to changes in taxes or other changes in laws which increase our lender's 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 similar indemnification clauses in the past and 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 | 9 Months Ended |
Aug. 31, 2016 | |
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 prioritizing 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. When quoted prices 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. The fair value measurement of a financial asset or financial liability reflects the nonperformance risk of both parties to the contract. Therefore, the fair value measurement of our financial instruments reflects the impact of our counterparty’s creditworthiness for asset positions and our creditworthiness for liability positions. Creditworthiness did not have a significant impact on the fair values of our financial instruments at August 31, 2016 and November 30, 2015 . 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 not measured at fair value on a recurring basis were as follows (in millions): August 31, 2016 November 30, 2015 Carrying Fair Value Carrying Fair Value Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets Cash and cash equivalents (a) $ 242 $ 242 $ — $ — $ 647 $ 647 $ — $ — Restricted cash (b) 37 37 — — 7 7 — — Long-term other assets (c) 108 1 73 34 119 1 87 31 Total $ 387 $ 280 $ 73 $ 34 $ 773 $ 655 $ 87 $ 31 Liabilities Fixed rate debt (d) $ 5,274 $ — $ 5,631 $ — $ 5,193 $ — $ 5,450 $ — Floating rate debt (d) 4,119 — 4,054 — 3,594 — 3,589 — Total $ 9,393 $ — $ 9,685 $ — $ 8,787 $ — $ 9,039 $ — (a) Cash and cash equivalents are comprised of cash on hand and at November 30, 2015 also included a money market deposit account and time deposits. Due to their short maturities, the carrying values approximate their fair values. (b) Restricted cash is comprised of a money market deposit account and at August 31, 2016 also included funds held in escrow. (c) Long-term other assets are substantially all comprised of notes and other receivables. The fair values of our 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 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 measured at fair value on a recurring basis were as follows (in millions): August 31, 2016 November 30, 2015 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets Cash equivalents (a) $ 220 $ — $ — $ 748 $ — $ — Restricted cash (b) 25 — — 22 — — Short-term investments (c) — — 21 — — — Marketable securities held in rabbi trusts (d) 96 4 — 105 8 — Derivative financial instruments (e) — 10 — — 29 — Long-term other asset (c) — — — — — 21 Total $ 341 $ 14 $ 21 $ 875 $ 37 $ 21 Liabilities Derivative financial instruments (e) $ — $ 515 $ — $ — $ 625 $ — Total $ — $ 515 $ — $ — $ 625 $ — (a) Cash equivalents are comprised of money market funds. (b) Restricted cash is primarily comprised of money market funds. (c) The fair value of auction rate security included in short-term investments and long-term other asset was based on a broker quote in an inactive market. During the nine months ended August 31, 2016 , there were no purchases or sales pertaining to this auction rate security. (d) Marketable securities held in rabbi trusts are 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 limited to funding certain deferred compensation and non-qualified U.S. pension plans. (e) See “Derivative Instruments and Hedging Activities” section below for detailed information regarding our derivative financial instruments. 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. Nonfinancial Instruments that are Measured at Fair Value on a Nonrecurring Basis Sale of Ship In March 2016, we entered into a bareboat charter/sale agreement under which the 1,546-passenger capacity Pacific Pearl will be chartered to an unrelated entity from April 2017 through April 2027. Under this agreement, ownership of Pacific Pearl will be transferred to the buyer in April 2027. Valuation of Goodwill and Other Intangibles The reconciliation of the changes in the carrying amounts of our goodwill was as follows (in millions): North America EAA (a) Total Balance at November 30, 2015 $ 1,898 $ 1,112 $ 3,010 Foreign currency translation adjustment — (46 ) (46 ) Balance at August 31, 2016 $ 1,898 $ 1,066 $ 2,964 (a) Europe, Australia & Asia (“EAA”) At July 31, 2016, all of our cruise brands carried goodwill, except for Seabourn and Fathom. As of that date, we performed our annual goodwill impairment reviews, which included performing a qualitative assessment for AIDA, Carnival Cruise Line, Cunard, P&O Cruises (UK) and Princess. Qualitative factors such as industry and market conditions, macroeconomic conditions, changes to the weighted-average cost of capital (“WACC”), overall financial performance, changes in fuel prices and capital expenditures were considered in the qualitative assessment to determine how changes in these factors would affect each of these cruise brands’ estimated fair values. Based on our qualitative assessments, we determined it was more-likely-than-not that each of these cruise brands’ estimated fair values exceeded their carrying values and, therefore, we did not proceed to the two-step quantitative goodwill impairment reviews. As of July 31, 2016, we also performed our annual goodwill impairment reviews for Costa Cruises' ("Costa"), Holland America Line's and P&O Cruises (Australia). We did not perform a qualitative assessment but instead proceeded directly to step one of the two-step quantitative goodwill impairment review and compared each of Costa's, Holland America Line's and P&O Cruises (Australia)’s estimated fair value to the carrying value of their allocated net assets. Their estimated cruise brand fair value was based on a discounted future cash flow analysis. The principal assumptions used in our cash flow analyses consisted of forecasted operating results, including net revenue yields and net cruise costs including fuel prices; capacity changes, including the expected rotation of vessels into, or out of, Costa, Holland America Line and P&O Cruises (Australia); WACC of market participants, adjusted for the risk attributable to the geographic regions in which Costa, Holland America Line and P&O Cruises (Australia) operate; capital expenditures; proceeds from forecasted dispositions of ships and terminal values, which are all considered Level 3 inputs. Based on the discounted cash flow analyses, we determined that each of Costa's, Holland America Line’s and P&O Cruises (Australia)’s estimated fair value significantly exceeded their carrying value and, therefore, we did not proceed to step two of the impairment reviews. The reconciliation of the changes in the carrying amounts of our other intangible assets not subject to amortization, which represent trademarks, was as follows (in millions): North America EAA Total Balance at November 30, 2015 $ 927 $ 307 $ 1,234 Foreign currency translation adjustment — (15 ) (15 ) Balance at August 31, 2016 $ 927 $ 292 $ 1,219 At July 31, 2016, our cruise brands that have significant trademarks recorded include AIDA, P&O Cruises (Australia), P&O Cruises (UK) and Princess. As of that date, we performed our annual trademark impairment reviews for these cruise brands, which included performing a qualitative assessment for AIDA, P&O Cruises (UK) and Princess. Qualitative factors such as industry and market conditions, macroeconomic conditions, changes to the WACC, changes in royalty rates and overall financial performance were considered in the qualitative assessment to determine how changes in these factors would affect the estimated fair value for AIDA's, P&O Cruises (UK)'s and Princess' recorded trademarks. Based on our qualitative assessment, we determined it was more likely-than-not that the estimated fair value for AIDA's, P&O Cruises (UK)’s and Princess's recorded trademarks exceeded their carrying value and, therefore, none of these trademarks were impaired. As of July 31, 2016, we did not perform a qualitative assessment for P&O Cruises (Australia)'s trademarks but instead proceeded directly to the quantitative trademark impairment reviews. Our quantitative assessment included estimating P&O Cruises (Australia)'s trademarks fair value based upon a discounted future cash flow analysis, which estimated the amount of royalties that we are relieved from having to pay for use of the associated trademarks, based upon forecasted cruise revenues and a market participant’s royalty rate. The royalty rate was estimated primarily using comparable royalty agreements for similar industries. Based on our quantitative assessment, we determined that the estimated fair values for P&O Cruises (Australia)’s trademarks significantly exceeded their carrying values and, therefore, none of these trademarks were impaired. The determination of our reporting unit goodwill 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. 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. The reconciliation of the changes in the net carrying amounts of our other intangible assets subject to amortization, which represent port usage rights, was as follows (in millions): Cruise Support EAA Total Balance at November 30, 2015 (See “Note 1 - General”) $ 62 $ 12 $ 74 Amortization (3 ) — (3 ) Foreign currency translation adjustment (1 ) 1 — Balance at August 31, 2016 $ 58 $ 13 $ 71 Port usage rights are stated at cost. Amortization is computed using the straight-line method over the shorter of the arrangement term or their expected useful lives. Derivative Instruments and Hedging Activities We utilize derivative and non-derivative 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. We use interest rate swaps to manage our interest rate exposure 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 non-derivative 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 non-derivative 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 the maturity date of the derivative contract. 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 August 31, November 30, 2015 Derivative assets Derivatives designated as hedging instruments Net investment hedges (a) Prepaid expenses and other $ 10 $ 14 Other assets – long-term — 13 Interest rate swaps (b) Prepaid expenses and other — 2 Total derivative assets $ 10 $ 29 Derivative liabilities Derivatives designated as hedging instruments Net investment hedges (a) Accrued liabilities and other $ 2 $ — Other long-term liabilities 12 — Interest rate swaps (b) Accrued liabilities and other 11 11 Other long-term liabilities 31 27 Foreign currency zero cost collars (c) Accrued liabilities and other 5 — Other long-term liabilities — 26 61 64 Derivatives not designated as hedging instruments Fuel (d) Accrued liabilities and other 234 227 Other long-term liabilities 220 334 454 561 Total derivative liabilities $ 515 $ 625 (a) We had foreign currency forwards totaling $296 million at August 31, 2016 and $43 million at November 30, 2015 that are designated as hedges of our net investments in foreign operations, which have a euro-denominated functional currency. At August 31, 2016 , these foreign currency forwards settle through July 2017. We also had foreign currency swaps totaling $409 million at August 31, 2016 and $387 million at November 30, 2015 that are designated as hedges of our net investments in foreign operations, which have a euro-denominated functional currency. At August 31, 2016 , these foreign currency swaps settle through September 2019. (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. These interest rate swap agreements effectively changed $551 million at August 31, 2016 and $568 million at November 30, 2015 of EURIBOR-based floating rate euro debt to fixed rate euro debt. At August 31, 2016 , these interest rate swaps settle through March 2025. In addition, at November 30, 2015 , 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 November 30, 2015 , 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 settled in February 2016. (c) At August 31, 2016 and November 30, 2015 , 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 August 31, 2016 and November 30, 2015 , 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 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): August 31, 2016 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 $ 13 $ (3 ) $ 10 $ (10 ) $ — Liabilities $ 518 $ (3 ) $ 515 $ (10 ) $ 505 November 30, 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 $ 73 $ (44 ) $ 29 $ (29 ) $ — Liabilities $ 669 $ (44 ) $ 625 $ (29 ) $ 596 The effective gain (loss) portions of our derivatives qualifying and designated as hedging instruments recognized in other comprehensive income (loss) were as follows (in millions): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Net investment hedges $ — $ (13 ) $ (17 ) $ 33 Foreign currency zero cost collars – cash flow hedges $ 2 $ 9 $ 21 $ (39 ) Interest rate swaps – cash flow hedges $ — $ 5 $ 3 $ 8 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 cash collateral to be posted or received to the extent the fuel derivative fair value payable to or receivable from an individual counterparty exceeds $100 million . At August 31, 2016 and November 30, 2015 , we had $3 million and $25 million , respectively, of collateral posted to one of our fuel derivative counterparties. At August 31, 2016 and November 30, 2015 , no collateral was required to be 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 August 31, 2016 and November 30, 2015 and for the three and nine months ended August 31, 2016 and 2015 where such impacts were not significant. Fuel Price Risks Substantially all of our exposure to market risk for changes in fuel prices 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. Our unrealized and realized gains (losses), net on fuel derivatives were as follows (in millions): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Unrealized gains (losses) on fuel derivatives, net $ 25 $ (137 ) $ 121 $ (215 ) Realized losses on fuel derivatives (61 ) (60 ) (223 ) (163 ) Gains (losses) on fuel derivatives, net $ (36 ) $ (197 ) $ (102 ) $ (378 ) At August 31, 2016 , our outstanding fuel derivatives consisted of zero cost collars on Brent as follows: Maturities (a) Transaction Barrels Weighted-Average Weighted-Average Fiscal 2016 (Q4) June 2012 891 $ 75 $ 108 February 2013 540 $ 80 $ 120 April 2013 750 $ 75 $ 115 2,181 Fiscal 2017 February 2013 3,276 $ 80 $ 115 April 2013 2,028 $ 75 $ 110 January 2014 1,800 $ 75 $ 114 October 2014 1,020 $ 80 $ 113 8,124 Fiscal 2018 January 2014 2,700 $ 75 $ 110 October 2014 3,000 $ 80 $ 114 5,700 (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 non-derivative financial instruments. Our primary focus is to monitor our exposure to and manage the economic foreign currency exchange risks faced by our operations and realized if we exchange one currency for another. We currently only hedge 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 EAA segment operations 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 segment's revenues and expenses. Any weakening of the U.S. dollar has the opposite effect. Substantially all of our operations also have non-functional currency risk related to their international sales, which are principally denominated in euro, sterling and Australian, Canadian and U.S. dollars. In addition, we have a portion of our operating expenses denominated in non-functional currencies. Accordingly, we also have “foreign currency transactional” risks related to changes in the exchange rates for our revenues and expenses that are in a currency other than the functional currency. The revenues and expenses which occur in the same non-functional currencies create some degree of natural offset. Investment Currency Risks We consider our investments in foreign operations to be denominated in stable currencies. Our investments in foreign operations are 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, majority sterling. We have designated $3.5 billion as of August 31, 2016 and $2.6 billion as of November 30, 2015 of our foreign currency intercompany payables as non-derivative hedges of our net investments in foreign operations. Accordingly, we have included $821 million at August 31, 2016 and $509 million at November 30, 2015 of cumulative foreign currency transaction non-derivative gains in the cumulative translation adjustment component of AOCI. These amounts have offset a portion of the losses recorded in AOCI upon translating our foreign operations’ net assets into U.S. dollars. During the three and nine months ended August 31, 2016 and 2015 , we recognized foreign currency non-derivative transaction (losses) gains of $243 million ( $7 million in 2015 ) and $312 million ( $97 million in 2015 ), respectively, in the cumulative translation adjustment component of AOCI. Newbuild Currency Risks Our shipbuilding contracts are typically denominated in euros. Our decision to hedge a non-functional currency ship commitment for our cruise brands is made on a case-by-case basis, considering 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 non-derivative 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 Majestic Princess' and Seabourn Encore's euro-denominated shipyard payments. The Majestic Princess' 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. At August 31, 2016 , including the three ships ordered under the Memorandum of Agreement signed with Meyer Werft and Meyer Turku on September 5, 2016, our remaining newbuild currency exchange rate risk relates to euro-denominated newbuild contract payments, which represent a total unhedged commitment of $5.8 billion and relates to Carnival Cruise Line, Holland America Line, P&O Cruises (Australia), P&O Cruises (UK), Princess and Seabourn newbuilds scheduled to be delivered through 2022. 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 August 31, 2016 , 62% and 38% ( 60% and 40% at November 30, 2015 ) of our debt bore fixed and floating interest rates, respectively, including the effect of interest rate swaps. 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. 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: • conducting business with large, well-established financial institutions, insurance companies and export credit agencies, • diversifying our counterparties, • having guidelines regarding credit ratings and investment maturities that we follow to help safeguard liquidity and minimize risk, and • requiring 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 our significant counterparties is remote. At August 31, 2016, our exposures under foreign currency and fuel derivative contracts and interest rate swap agreements were not material. We also monitor the creditworthiness of travel agencies and tour operators in Asia, Australia and Europe, which includes charter-hire agreements in Asia, and credit and debit card providers to which we extend credit in the normal course of our business 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, the nature of these contingent obligations and their short maturities. We have not experienced significant 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 | 9 Months Ended |
Aug. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We have four reportable segments that are comprised of (1) North America, (2) EAA, (3) Cruise Support and (4) Tour and Other. 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. The CODM assesses performance and makes decisions to allocate resources for Carnival Corporation & plc based upon review of the results across all of our segments. Our North America segment includes Carnival Cruise Line, Holland America Line, Princess and Seabourn. Our EAA segment includes AIDA, Costa, Cunard, P&O Cruises (Australia), P&O Cruises (UK) and ship operations of Fathom, our newest brand. The operations of these reporting units have been aggregated into two reportable segments based on the similarity of their economic and other characteristics, including types of customers, regulatory environment, maintenance requirements, supporting systems and processes and products and services they provide. Our Cruise Support segment represents certain of our port and related facilities and other services that are provided for the benefit of our cruise brands and Fathom's selling, general and administrative expenses. Our Tour and Other segment represents the hotel and transportation operations of Holland America Princess Alaska Tours and three ships that we bareboat charter to unaffiliated entities. Selected information for our segments was as follows (in millions): Three Months Ended August 31, Revenues Operating costs and Selling Depreciation Operating 2016 North America (a) $ 3,284 $ 1,668 $ 293 $ 272 $ 1,051 EAA 1,738 903 161 152 522 Cruise Support 31 12 73 9 (63 ) Tour and Other (a) 148 84 2 10 52 Intersegment elimination (a) (104 ) (104 ) — — — $ 5,097 $ 2,563 $ 529 $ 443 $ 1,562 2015 North America (a) $ 3,111 $ 1,647 $ 271 $ 242 $ 951 EAA 1,691 852 162 140 537 Cruise Support 30 8 49 6 (33 ) Tour and Other (a) 150 82 2 11 55 Intersegment elimination (a) (99 ) (99 ) — — — $ 4,883 $ 2,490 $ 484 $ 399 $ 1,510 Nine Months Ended August 31, Revenues Operating costs and Selling Depreciation Operating 2016 North America (a) $ 7,823 $ 4,368 $ 897 $ 791 $ 1,767 EAA 4,466 2,666 513 450 837 Cruise Support 93 23 196 32 (158 ) Tour and Other (a) 190 125 7 30 28 Intersegment elimination (a) (118 ) (118 ) — — — $ 12,454 $ 7,064 $ 1,613 $ 1,303 $ 2,474 2015 North America (a) $ 7,570 $ 4,558 $ 830 $ 738 $ 1,444 EAA 4,273 2,644 511 417 701 Cruise Support 82 14 156 18 (106 ) Tour and Other (a) 194 129 7 33 25 Intersegment elimination (a) (116 ) (116 ) — — — $ 12,003 $ 7,229 $ 1,504 $ 1,206 $ 2,064 (a) A portion of the North America segment's revenues includes revenues for the tour portion of a cruise when a cruise and land tour package are sold together by Holland America Line and Princess. These intersegment tour revenues, which are also included in our Tour and Other segment, are eliminated by the North America segment's revenues and operating expenses in the line “Intersegment elimination.” |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Aug. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Our basic and diluted earnings per share were computed as follows (in millions, except per share data): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Net income for basic and diluted earnings per share $ 1,424 $ 1,216 $ 2,171 $ 1,487 Weighted-average common and ordinary shares outstanding 737 778 751 778 Dilutive effect of equity plans 2 3 3 3 Diluted weighted-average shares outstanding 739 781 754 781 Basic earnings per share $ 1.93 $ 1.56 $ 2.89 $ 1.91 Diluted earnings per share $ 1.93 $ 1.56 $ 2.88 $ 1.91 |
Shareholder's Equity
Shareholder's Equity | 9 Months Ended |
Aug. 31, 2016 | |
Shareholder's Equity [Abstract] | |
Shareholders' Equity | Shareholders' Equity During the nine months ended August 31, 2016 , we repurchased 43.6 million shares of Carnival Corporation common stock for $2.1 billion under our general repurchase authorization program (“Repurchase Program”). On June 27, 2016, our Board of Directors increased the authorization under our Repurchase Program by $1.0 billion . From September 1, 2016 through September 23, 2016 , we repurchased 2.3 million shares of Carnival Corporation common stock for $107 million under the Repurchase Program. Accordingly, at September 23, 2016 , the remaining availability under the Repurchase Program was $531 million . During the nine months ended August 31, 2016 , Carnival Investments Limited (“CIL”), a subsidiary of Carnival Corporation, sold 891,000 of Carnival plc ordinary shares for net proceeds of $40 million . Substantially all of the net proceeds from these sales were used to purchase 891,000 shares of Carnival Corporation common stock. Pursuant to our Stock Swap Program, Carnival Corporation sold these Carnival plc ordinary shares owned by CIL only to the extent it was able to repurchase shares of Carnival Corporation common stock in the U.S. on at least an equivalent basis. During the nine months ended August 31, 2016 , our Board of Directors declared a 17% dividend increase to holders of Carnival Corporation common stock and Carnival plc ordinary shares from $0.30 per share to $0.35 per share. |
General (Policies)
General (Policies) | 9 Months Ended |
Aug. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Accounting Pronouncements | Accounting Pronouncements Amended guidance was issued by the Financial Accounting Standards Board (“FASB”) regarding the accounting for Service Concession Arrangements . The new guidance defines a service concession as an arrangement between a public-sector grantor, such as a port authority, and a company that will operate and maintain the grantor's infrastructure for a specified period of time. In exchange, the company may be given a right to charge the public, such as our cruise guests, for the use of the infrastructure. This guidance required us to record certain of the infrastructure we had constructed to be used by us pursuant to a service concession arrangement outside of property and equipment. On December 1, 2015, we adopted this guidance and, accordingly, reclassified $70 million from Property and Equipment, Net to Other Intangibles on our November 30, 2015 Consolidated Balance Sheet (see “Note 4 - Nonfinancial Instruments that are Measured at Fair Value on a Nonrecurring Basis”). The FASB issued amended guidance regarding accounting for Interest - Imputation of Interest , which simplifies the presentation of debt issuance costs. The guidance requires that debt issuance costs related to a recognized debt liability be presented on the balance sheet as a direct deduction from the carrying amount of that debt liability. This guidance is required to be adopted by us in the first quarter of fiscal 2017, and will be applied on a retrospective basis. The adoption of this guidance is not expected to have a significant impact on our Consolidated Balance Sheets. The FASB issued amended guidance regarding accounting for Intangibles - Goodwill and Other - Internal-Use Software , which clarifies the accounting for fees paid in a cloud computing arrangement. The amendments provide guidance to customers about whether a cloud computing arrangement includes a software license or if the arrangement should be accounted for as a service contract. The amendments will impact the accounting for software licenses but will not change a customer's accounting for service contracts. This guidance is required to be adopted by us in the first quarter of fiscal 2017 on either a prospective or retrospective basis. The adoption of this guidance is not expected to have a material impact to our consolidated financial statements. The FASB issued amended guidance regarding accounting for Revenue from Contracts with Customers , which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. When effective, this standard will replace most existing revenue recognition guidance in U.S. generally accepted accounting principles (“U.S. GAAP”). The standard also requires more detailed disclosures and provides additional guidance for transactions that were not comprehensively addressed in U.S. GAAP. This guidance is required to be adopted by us in the first quarter of fiscal 2019 by either recasting all years presented in our financial statements or by recording the impact of adoption as an adjustment to retained earnings at the beginning of the year of adoption. We are currently evaluating the impact this guidance will have on our consolidated financial statements. The FASB issued guidance regarding accounting for Leases , which requires an entity to recognize both assets and liabilities arising from financing and operating leases, along with additional qualitative and quantitative disclosures. This guidance is required to be adopted by us in the first quarter of fiscal 2020. We are currently evaluating the impact this guidance will have on our consolidated financial statements. |
Fair Value Measurements, Deri15
Fair Value Measurements, Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Aug. 31, 2016 | |
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 not measured at fair value on a recurring basis were as follows (in millions): August 31, 2016 November 30, 2015 Carrying Fair Value Carrying Fair Value Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets Cash and cash equivalents (a) $ 242 $ 242 $ — $ — $ 647 $ 647 $ — $ — Restricted cash (b) 37 37 — — 7 7 — — Long-term other assets (c) 108 1 73 34 119 1 87 31 Total $ 387 $ 280 $ 73 $ 34 $ 773 $ 655 $ 87 $ 31 Liabilities Fixed rate debt (d) $ 5,274 $ — $ 5,631 $ — $ 5,193 $ — $ 5,450 $ — Floating rate debt (d) 4,119 — 4,054 — 3,594 — 3,589 — Total $ 9,393 $ — $ 9,685 $ — $ 8,787 $ — $ 9,039 $ — (a) Cash and cash equivalents are comprised of cash on hand and at November 30, 2015 also included a money market deposit account and time deposits. Due to their short maturities, the carrying values approximate their fair values. (b) Restricted cash is comprised of a money market deposit account and at August 31, 2016 also included funds held in escrow. (c) Long-term other assets are substantially all comprised of notes and other receivables. The fair values of our 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 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 measured at fair value on a recurring basis were as follows (in millions): August 31, 2016 November 30, 2015 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets Cash equivalents (a) $ 220 $ — $ — $ 748 $ — $ — Restricted cash (b) 25 — — 22 — — Short-term investments (c) — — 21 — — — Marketable securities held in rabbi trusts (d) 96 4 — 105 8 — Derivative financial instruments (e) — 10 — — 29 — Long-term other asset (c) — — — — — 21 Total $ 341 $ 14 $ 21 $ 875 $ 37 $ 21 Liabilities Derivative financial instruments (e) $ — $ 515 $ — $ — $ 625 $ — Total $ — $ 515 $ — $ — $ 625 $ — (a) Cash equivalents are comprised of money market funds. (b) Restricted cash is primarily comprised of money market funds. (c) The fair value of auction rate security included in short-term investments and long-term other asset was based on a broker quote in an inactive market. During the nine months ended August 31, 2016 , there were no purchases or sales pertaining to this auction rate security. (d) Marketable securities held in rabbi trusts are 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 limited to funding certain deferred compensation and non-qualified U.S. pension plans. (e) See “Derivative Instruments and Hedging Activities” section below for detailed information regarding our derivative financial instruments. |
Reconciliation of Changes in Carrying Amounts of Goodwill | The reconciliation of the changes in the carrying amounts of our goodwill was as follows (in millions): North America EAA (a) Total Balance at November 30, 2015 $ 1,898 $ 1,112 $ 3,010 Foreign currency translation adjustment — (46 ) (46 ) Balance at August 31, 2016 $ 1,898 $ 1,066 $ 2,964 (a) Europe, Australia & Asia (“EAA”) |
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 other intangible assets not subject to amortization, which represent trademarks, was as follows (in millions): North America EAA Total Balance at November 30, 2015 $ 927 $ 307 $ 1,234 Foreign currency translation adjustment — (15 ) (15 ) Balance at August 31, 2016 $ 927 $ 292 $ 1,219 |
Reconciliation of Changes in Carrying Amounts of Intangible Assets Subject to Amortization, Which Represents Port Usage Rights | The reconciliation of the changes in the net carrying amounts of our other intangible assets subject to amortization, which represent port usage rights, was as follows (in millions): Cruise Support EAA Total Balance at November 30, 2015 (See “Note 1 - General”) $ 62 $ 12 $ 74 Amortization (3 ) — (3 ) Foreign currency translation adjustment (1 ) 1 — Balance at August 31, 2016 $ 58 $ 13 $ 71 |
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 August 31, November 30, 2015 Derivative assets Derivatives designated as hedging instruments Net investment hedges (a) Prepaid expenses and other $ 10 $ 14 Other assets – long-term — 13 Interest rate swaps (b) Prepaid expenses and other — 2 Total derivative assets $ 10 $ 29 Derivative liabilities Derivatives designated as hedging instruments Net investment hedges (a) Accrued liabilities and other $ 2 $ — Other long-term liabilities 12 — Interest rate swaps (b) Accrued liabilities and other 11 11 Other long-term liabilities 31 27 Foreign currency zero cost collars (c) Accrued liabilities and other 5 — Other long-term liabilities — 26 61 64 Derivatives not designated as hedging instruments Fuel (d) Accrued liabilities and other 234 227 Other long-term liabilities 220 334 454 561 Total derivative liabilities $ 515 $ 625 (a) We had foreign currency forwards totaling $296 million at August 31, 2016 and $43 million at November 30, 2015 that are designated as hedges of our net investments in foreign operations, which have a euro-denominated functional currency. At August 31, 2016 , these foreign currency forwards settle through July 2017. We also had foreign currency swaps totaling $409 million at August 31, 2016 and $387 million at November 30, 2015 that are designated as hedges of our net investments in foreign operations, which have a euro-denominated functional currency. At August 31, 2016 , these foreign currency swaps settle through September 2019. (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. These interest rate swap agreements effectively changed $551 million at August 31, 2016 and $568 million at November 30, 2015 of EURIBOR-based floating rate euro debt to fixed rate euro debt. At August 31, 2016 , these interest rate swaps settle through March 2025. In addition, at November 30, 2015 , 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 November 30, 2015 , 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 settled in February 2016. (c) At August 31, 2016 and November 30, 2015 , 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 August 31, 2016 and November 30, 2015 , 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 derivatives. |
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): August 31, 2016 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 $ 13 $ (3 ) $ 10 $ (10 ) $ — Liabilities $ 518 $ (3 ) $ 515 $ (10 ) $ 505 November 30, 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 $ 73 $ (44 ) $ 29 $ (29 ) $ — Liabilities $ 669 $ (44 ) $ 625 $ (29 ) $ 596 |
Derivatives Qualifying and Designated as Hedging Instruments Recognized in Other Comprehensive Income | The effective gain (loss) portions of our derivatives qualifying and designated as hedging instruments recognized in other comprehensive income (loss) were as follows (in millions): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Net investment hedges $ — $ (13 ) $ (17 ) $ 33 Foreign currency zero cost collars – cash flow hedges $ 2 $ 9 $ 21 $ (39 ) Interest rate swaps – cash flow hedges $ — $ 5 $ 3 $ 8 |
(Losses) gains on fuel derivatives, net | Our unrealized and realized gains (losses), net on fuel derivatives were as follows (in millions): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Unrealized gains (losses) on fuel derivatives, net $ 25 $ (137 ) $ 121 $ (215 ) Realized losses on fuel derivatives (61 ) (60 ) (223 ) (163 ) Gains (losses) on fuel derivatives, net $ (36 ) $ (197 ) $ (102 ) $ (378 ) |
Fuel Derivatives Outstanding | At August 31, 2016 , our outstanding fuel derivatives consisted of zero cost collars on Brent as follows: Maturities (a) Transaction Barrels Weighted-Average Weighted-Average Fiscal 2016 (Q4) June 2012 891 $ 75 $ 108 February 2013 540 $ 80 $ 120 April 2013 750 $ 75 $ 115 2,181 Fiscal 2017 February 2013 3,276 $ 80 $ 115 April 2013 2,028 $ 75 $ 110 January 2014 1,800 $ 75 $ 114 October 2014 1,020 $ 80 $ 113 8,124 Fiscal 2018 January 2014 2,700 $ 75 $ 110 October 2014 3,000 $ 80 $ 114 5,700 (a) Fuel derivatives mature evenly over each month within the above fiscal periods. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Aug. 31, 2016 | |
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 August 31, Revenues Operating costs and Selling Depreciation Operating 2016 North America (a) $ 3,284 $ 1,668 $ 293 $ 272 $ 1,051 EAA 1,738 903 161 152 522 Cruise Support 31 12 73 9 (63 ) Tour and Other (a) 148 84 2 10 52 Intersegment elimination (a) (104 ) (104 ) — — — $ 5,097 $ 2,563 $ 529 $ 443 $ 1,562 2015 North America (a) $ 3,111 $ 1,647 $ 271 $ 242 $ 951 EAA 1,691 852 162 140 537 Cruise Support 30 8 49 6 (33 ) Tour and Other (a) 150 82 2 11 55 Intersegment elimination (a) (99 ) (99 ) — — — $ 4,883 $ 2,490 $ 484 $ 399 $ 1,510 Nine Months Ended August 31, Revenues Operating costs and Selling Depreciation Operating 2016 North America (a) $ 7,823 $ 4,368 $ 897 $ 791 $ 1,767 EAA 4,466 2,666 513 450 837 Cruise Support 93 23 196 32 (158 ) Tour and Other (a) 190 125 7 30 28 Intersegment elimination (a) (118 ) (118 ) — — — $ 12,454 $ 7,064 $ 1,613 $ 1,303 $ 2,474 2015 North America (a) $ 7,570 $ 4,558 $ 830 $ 738 $ 1,444 EAA 4,273 2,644 511 417 701 Cruise Support 82 14 156 18 (106 ) Tour and Other (a) 194 129 7 33 25 Intersegment elimination (a) (116 ) (116 ) — — — $ 12,003 $ 7,229 $ 1,504 $ 1,206 $ 2,064 (a) A portion of the North America segment's revenues includes revenues for the tour portion of a cruise when a cruise and land tour package are sold together by Holland America Line and Princess. These intersegment tour revenues, which are also included in our Tour and Other segment, are eliminated by the North America segment's revenues and operating expenses in the line “Intersegment elimination.” |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Aug. 31, 2016 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share Computation | Our basic and diluted earnings per share were computed as follows (in millions, except per share data): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Net income for basic and diluted earnings per share $ 1,424 $ 1,216 $ 2,171 $ 1,487 Weighted-average common and ordinary shares outstanding 737 778 751 778 Dilutive effect of equity plans 2 3 3 3 Diluted weighted-average shares outstanding 739 781 754 781 Basic earnings per share $ 1.93 $ 1.56 $ 2.89 $ 1.91 Diluted earnings per share $ 1.93 $ 1.56 $ 2.88 $ 1.91 |
General - Other (Details)
General - Other (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2016 | Aug. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Fees, taxes and charges collected by us from our guests | $ 148 | $ 141 | $ 407 | $ 398 |
General - Accounting Pronouncem
General - Accounting Pronouncements (Details) - USD ($) $ in Millions | Aug. 31, 2016 | Dec. 01, 2015 | Nov. 30, 2015 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Other Intangibles | $ 1,290 | $ 1,308 | |
Adjustments for New Accounting Pronouncement | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Other Intangibles | $ 70 |
Unsecured Debt (Details)
Unsecured Debt (Details) € in Millions, £ in Millions, $ in Millions | 1 Months Ended | 9 Months Ended | ||||||
Aug. 31, 2016USD ($) | May 31, 2016EUR (€)credit_facility | Apr. 30, 2016USD ($) | Feb. 29, 2016USD ($) | Aug. 31, 2016USD ($)CruiseShip | Jul. 31, 2016USD ($) | May 31, 2016GBP (£) | May 31, 2016USD ($) | |
Debt Instrument [Line Items] | ||||||||
Weighted average interest rate (as a percent) | 0.20% | 0.20% | ||||||
Proceeds from Lines of Credit | $ 379 | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,300 | $ 2,300 | ||||||
Number of cruise ships purchased | CruiseShip | 4 | |||||||
Extinguishment of Debt, Amount | 201 | |||||||
Line of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Number of export credit facilities | credit_facility | 4 | |||||||
Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,600 | |||||||
Revolving Credit Facility | Euro Member Countries, Euro | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | € | € 500 | |||||||
Revolving Credit Facility | United States of America, Dollars | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,900 | |||||||
Revolving Credit Facility | United Kingdom, Pounds | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | £ | £ 169 | |||||||
Commercial Paper | Euro Member Countries, Euro | ||||||||
Debt Instrument [Line Items] | ||||||||
Short-term borrowings | 246 | $ 246 | ||||||
Commercial Paper | United States of America, Dollars | ||||||||
Debt Instrument [Line Items] | ||||||||
Short-term borrowings | 85 | 85 | ||||||
Euro-denominated | Bank Loans | ||||||||
Debt Instrument [Line Items] | ||||||||
Short-term borrowings | $ 3 | $ 3 | ||||||
Publicly Traded Notes Euro-denominated Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Proceeds from issuance of notes | $ 555 | |||||||
Notes, interest rate (percentage) | 1.625% | 1.625% | ||||||
Floating Rate Bank Loan Due July 2021 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 110 | |||||||
Fixed Rate Bank Loan Due September 2020 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | 168 | |||||||
Floating Rate Bank Loan Due November 2021 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 100 | |||||||
Floating Rate Bank Loan Due October 2021 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 100 | $ 100 |
Contingencies (Details)
Contingencies (Details) - Lease Out And Lease Back Type Transactions $ in Millions | Aug. 31, 2016USD ($)ship |
Loss Contingencies [Line Items] | |
Estimated contingent obligations | $ 364 |
Contingent Obligations, Number of Cruise Ships | ship | 2 |
Estimated termination payment in the event that Carnival Corporation were to default on its contingent obligations and assuming performance by all other participants | $ 13 |
Required standby letter of credit if Carnival Corporation's credit rating falls below BBB | $ 27 |
Fair Value Measurements, Deri22
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 (Details) - Financial Instruments Not Measured at Fair Value on a Recurring Basis - USD ($) $ in Millions | Aug. 31, 2016 | Nov. 30, 2015 |
Carrying Value | ||
Assets | ||
Cash and cash equivalents | $ 242 | $ 647 |
Restricted cash | 37 | 7 |
Long-term other assets | 108 | 119 |
Total | 387 | 773 |
Liabilities | ||
Total | 9,393 | 8,787 |
Carrying Value | Fixed Rate | ||
Liabilities | ||
Debt | 5,274 | 5,193 |
Carrying Value | Floating Rate | ||
Liabilities | ||
Debt | 4,119 | 3,594 |
Fair Value | Level 1 | ||
Assets | ||
Cash and cash equivalents | 242 | 647 |
Restricted cash | 37 | 7 |
Long-term other assets | 1 | 1 |
Total | 280 | 655 |
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 | 73 | 87 |
Total | 73 | 87 |
Liabilities | ||
Total | 9,685 | 9,039 |
Fair Value | Level 2 | Fixed Rate | ||
Liabilities | ||
Debt | 5,631 | 5,450 |
Fair Value | Level 2 | Floating Rate | ||
Liabilities | ||
Debt | 4,054 | 3,589 |
Fair Value | Level 3 | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Long-term other assets | 34 | 31 |
Total | 34 | 31 |
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, Deri23
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 (Details) - USD ($) $ in Millions | Aug. 31, 2016 | Nov. 30, 2015 |
Assets | ||
Derivative financial instruments | $ 13 | $ 73 |
Liabilities | ||
Derivative financial instruments | 518 | 669 |
Financial Instruments Measured at Fair Value on a Recurring Basis | Level 1 | ||
Assets | ||
Total | 341 | 875 |
Financial Instruments Measured at Fair Value on a Recurring Basis | Level 1 | Money market funds | ||
Assets | ||
Cash equivalents | 220 | 748 |
Restricted cash | 25 | 22 |
Financial Instruments Measured at Fair Value on a Recurring Basis | Level 1 | Marketable securities held in rabbi trusts | ||
Assets | ||
Investments | 96 | 105 |
Financial Instruments Measured at Fair Value on a Recurring Basis | Level 2 | ||
Assets | ||
Total | 14 | 37 |
Liabilities | ||
Total | 515 | 625 |
Financial Instruments Measured at Fair Value on a Recurring Basis | Level 2 | Marketable securities held in rabbi trusts | ||
Assets | ||
Investments | 4 | 8 |
Financial Instruments Measured at Fair Value on a Recurring Basis | Level 2 | Derivative financial instruments | ||
Assets | ||
Derivative financial instruments | 10 | 29 |
Financial Instruments Measured at Fair Value on a Recurring Basis | Level 2 | Derivative financial instruments | ||
Liabilities | ||
Derivative financial instruments | 515 | 625 |
Financial Instruments Measured at Fair Value on a Recurring Basis | Level 3 | ||
Assets | ||
Total | 21 | 21 |
Financial Instruments Measured at Fair Value on a Recurring Basis | Level 3 | Short-term investments | ||
Assets | ||
Investments | $ 21 | |
Financial Instruments Measured at Fair Value on a Recurring Basis | Level 3 | Marketable securities held in rabbi trusts | ||
Assets | ||
Investments | ||
Financial Instruments Measured at Fair Value on a Recurring Basis | Level 3 | Long-term other assets | ||
Assets | ||
Long-term other assets | $ 21 |
Fair Value Measurements, Deri24
Fair Value Measurements, Derivative Instruments and Hedging Activities - Reconciliation of Changes in Carrying Amounts of Goodwill (Details) $ in Millions | 9 Months Ended |
Aug. 31, 2016USD ($) | |
Goodwill [Roll Forward] | |
Beginning Balance | $ 3,010 |
Foreign currency translation adjustment | (46) |
Ending Balance | 2,964 |
North America Segment | |
Goodwill [Roll Forward] | |
Beginning Balance | 1,898 |
Foreign currency translation adjustment | 0 |
Ending Balance | 1,898 |
EAA | |
Goodwill [Roll Forward] | |
Beginning Balance | 1,112 |
Foreign currency translation adjustment | (46) |
Ending Balance | $ 1,066 |
Fair Value Measurements, Deri25
Fair Value Measurements, Derivative Instruments and Hedging Activities - Reconciliation of Changes in Carrying Amounts of Intangible Assets Not Subject to Amortization (Details) $ in Millions | 9 Months Ended |
Aug. 31, 2016USD ($) | |
Indefinite-lived Intangible Assets [Roll Forward] | |
Beginning Balance | $ 1,234 |
Foreign currency translation adjustment | (15) |
Ending Balance | 1,219 |
North America Segment | |
Indefinite-lived Intangible Assets [Roll Forward] | |
Beginning Balance | 927 |
Foreign currency translation adjustment | 0 |
Ending Balance | 927 |
EAA | |
Indefinite-lived Intangible Assets [Roll Forward] | |
Beginning Balance | 307 |
Foreign currency translation adjustment | (15) |
Ending Balance | $ 292 |
Fair Value Measurements, Deri26
Fair Value Measurements, Derivative Instruments and Hedging Activities - Reconciliation of Changes in Carrying Amounts of Intangible Assets Subject to Amortization (Details) $ in Millions | 9 Months Ended |
Aug. 31, 2016USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |
Beginning balance | $ 74 |
Amortization | (3) |
Foreign currency translation adjustment | 0 |
Ending balance | 71 |
Cruise Support | |
Finite-Lived Intangible Assets [Line Items] | |
Beginning balance | 62 |
Amortization | (3) |
Foreign currency translation adjustment | (1) |
Ending balance | 58 |
EAA | |
Finite-Lived Intangible Assets [Line Items] | |
Beginning balance | 12 |
Amortization | 0 |
Foreign currency translation adjustment | 1 |
Ending balance | $ 13 |
Fair Value Measurements, Deri27
Fair Value Measurements, Derivative Instruments and Hedging Activities - Estimated Fair Values of Derivative Financial Instruments and Location on Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Aug. 31, 2016 | Nov. 30, 2015 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 10 | $ 29 |
Derivative liabilities | 515 | 625 |
Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 61 | 64 |
Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 454 | 561 |
Net investment hedges | Derivatives designated as hedging instruments | Prepaid expenses and other | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 10 | 14 |
Net investment hedges | Derivatives designated as hedging instruments | Other assets – long-term | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 0 | 13 |
Net investment hedges | Derivatives designated as hedging instruments | Accrued liabilities and other | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 2 | 0 |
Net investment hedges | Derivatives designated as hedging instruments | Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 12 | 0 |
Interest Rate Swaps | Derivatives designated as hedging instruments | Prepaid expenses and other | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 0 | 2 |
Interest Rate Swaps | Derivatives designated as hedging instruments | Accrued liabilities and other | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 11 | 11 |
Interest Rate Swaps | Derivatives designated as hedging instruments | Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 31 | 27 |
Interest Rate Swaps | Cash Flow Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Interest rate cash flow hedge asset at fair value | 551 | 568 |
Interest Rate Swaps | Fair Value Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Interest rate fair value hedge asset at fair value | 500 | |
Foreign currency zero cost collars – cash flow hedges | Derivatives designated as hedging instruments | Accrued liabilities and other | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 5 | 0 |
Foreign currency zero cost collars – cash flow hedges | Derivatives designated as hedging instruments | Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 26 | |
Fuel | Derivatives not designated as hedging instruments | Accrued liabilities and other | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 234 | 227 |
Fuel | Derivatives not designated as hedging instruments | Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 220 | 334 |
Foreign Currency Forward | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 296 | 43 |
Currency swap | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | $ 409 | $ 387 |
Fair Value Measurements, Deri28
Fair Value Measurements, Derivative Instruments and Hedging Activities - Offsetting Derivative Instruments (Details) - USD ($) $ in Millions | Aug. 31, 2016 | Nov. 30, 2015 |
Assets | ||
Gross Amounts | $ 13 | $ 73 |
Gross Amounts Offset in the Balance Sheet | (3) | (44) |
Total Net Amounts Presented in the Balance Sheet | 10 | 29 |
Gross Amounts not Offset in the Balance Sheet | (10) | (29) |
Net Amounts | 0 | 0 |
Liabilities | ||
Gross Amounts | 518 | 669 |
Gross Amounts Offset in the Balance Sheet | (3) | (44) |
Total Net Amounts Presented in the Balance Sheet | 515 | 625 |
Gross Amounts not Offset in the Balance Sheet | (10) | (29) |
Net Amounts | $ 505 | $ 596 |
Fair Value Measurements, Deri29
Fair Value Measurements, Derivative Instruments and Hedging Activities - Derivatives Qualifying and Designated as Hedging Instruments Recognized in Other Comprehensive Income (Details) | 3 Months Ended | 9 Months Ended | |||
Aug. 31, 2016USD ($)counterparty | Aug. 31, 2015USD ($) | Aug. 31, 2016USD ($)counterparty | Aug. 31, 2015USD ($) | Nov. 30, 2015USD ($)counterparty | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Fuel Derivative, Counterparty | counterparty | 1 | 1 | 1 | ||
Fuel | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Collateral posted | $ 3,000,000 | $ 3,000,000 | $ 25,000,000 | ||
Collateral required to be received | 0 | 0 | $ 0 | ||
Minimum | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative asset, cash collateral netting threshold, fair value | 100,000,000 | 100,000,000 | |||
Designated as hedging instruments | Net investment hedges | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Effective portions of derivatives qualifying and designated as hedging instruments recognized in other comprehensive income | 0 | $ (13,000,000) | (17,000,000) | $ 33,000,000 | |
Designated as hedging instruments | Foreign currency zero cost collars – cash flow hedges | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Effective portions of derivatives qualifying and designated as hedging instruments recognized in other comprehensive income | 2,000,000 | 9,000,000 | 21,000,000 | (39,000,000) | |
Designated as hedging instruments | Interest rate swaps – cash flow hedges | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Effective portions of derivatives qualifying and designated as hedging instruments recognized in other comprehensive income | $ 0 | $ 5,000,000 | $ 3,000,000 | $ 8,000,000 |
Fair Value Measurements, Deri30
Fair Value Measurements, Derivative Instruments and Hedging Activities - Fuel Derivatives Outstanding (Details) bbl in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2016USD ($)bbl$ / bbl | Aug. 31, 2015USD ($) | Aug. 31, 2016USD ($)bbl$ / bbl | Aug. 31, 2015USD ($) | |
Derivative [Line Items] | ||||
Gains (losses) on fuel derivatives, net | $ | $ (36) | $ (197) | $ (102) | $ (378) |
Fuel | ||||
Derivative [Line Items] | ||||
Unrealized gains (losses) on fuel derivatives, net | $ | 25 | (137) | 121 | (215) |
Realized losses on fuel derivatives | $ | $ (61) | $ (60) | $ (223) | $ (163) |
Fuel Derivatives 2016 Maturity June 2012 Transaction | ||||
Derivative [Line Items] | ||||
Barrels | bbl | 891 | 891 | ||
Weighted-Average Floor Price (in dollars per barrel) | 75 | 75 | ||
Weighted-Average Ceiling Price (in dollars per barrel) | 108 | 108 | ||
Fuel Derivatives 2016 Maturity February 2013 Transaction | ||||
Derivative [Line Items] | ||||
Barrels | bbl | 540 | 540 | ||
Weighted-Average Floor Price (in dollars per barrel) | 80 | 80 | ||
Weighted-Average Ceiling Price (in dollars per barrel) | 120 | 120 | ||
Fuel Derivatives 2016 Maturity April 2013 Transaction | ||||
Derivative [Line Items] | ||||
Barrels | bbl | 750 | 750 | ||
Weighted-Average Floor Price (in dollars per barrel) | 75 | 75 | ||
Weighted-Average Ceiling Price (in dollars per barrel) | 115 | 115 | ||
Fuel Derivatives 2016 Maturity | ||||
Derivative [Line Items] | ||||
Barrels | bbl | 2,181 | 2,181 | ||
Fuel Derivatives 2017 Maturity February 2013 Transaction | ||||
Derivative [Line Items] | ||||
Barrels | bbl | 3,276 | 3,276 | ||
Weighted-Average Floor Price (in dollars per barrel) | 80 | 80 | ||
Weighted-Average Ceiling Price (in dollars per barrel) | 115 | 115 | ||
Fuel Derivatives 2017 Maturity April 2013 Transaction | ||||
Derivative [Line Items] | ||||
Barrels | bbl | 2,028 | 2,028 | ||
Weighted-Average Floor Price (in dollars per barrel) | 75 | 75 | ||
Weighted-Average Ceiling Price (in dollars per barrel) | 110 | 110 | ||
Fuel Derivatives 2017 Maturity Date January Twenty Fourteen Transaction [Member] | ||||
Derivative [Line Items] | ||||
Barrels | bbl | 1,800 | 1,800 | ||
Weighted-Average Floor Price (in dollars per barrel) | 75 | 75 | ||
Weighted-Average Ceiling Price (in dollars per barrel) | 114 | 114 | ||
Fuel Derivatives 2017 Maturity October 2014 Transaction | ||||
Derivative [Line Items] | ||||
Barrels | bbl | 1,020 | 1,020 | ||
Weighted-Average Floor Price (in dollars per barrel) | 80 | 80 | ||
Weighted-Average Ceiling Price (in dollars per barrel) | 113 | 113 | ||
Fuel Derivatives 2017 Maturity | ||||
Derivative [Line Items] | ||||
Barrels | bbl | 8,124 | 8,124 | ||
Fuel Derivatives 2018 Maturity January 2014 Transaction | ||||
Derivative [Line Items] | ||||
Barrels | bbl | 2,700 | 2,700 | ||
Weighted-Average Floor Price (in dollars per barrel) | 75 | 75 | ||
Weighted-Average Ceiling Price (in dollars per barrel) | 110 | 110 | ||
Fuel Derivatives 2018 Maturity October 2014 Transaction | ||||
Derivative [Line Items] | ||||
Barrels | bbl | 3,000 | 3,000 | ||
Weighted-Average Floor Price (in dollars per barrel) | 80 | 80 | ||
Weighted-Average Ceiling Price (in dollars per barrel) | 114 | 114 | ||
Fuel Derivatives 2018 Maturity | ||||
Derivative [Line Items] | ||||
Barrels | bbl | 5,700 | 5,700 |
Fair Value Measurements, Deri31
Fair Value Measurements, Derivative Instruments and Hedging Activities - Foreign Currency Exchange Rate Risks (Details) $ in Millions | Sep. 05, 2016ship | Aug. 31, 2016USD ($) | Aug. 31, 2015USD ($) | Aug. 31, 2016USD ($)CruiseShip | Aug. 31, 2015USD ($) | Nov. 30, 2015USD ($) | Jan. 31, 2015USD ($) |
Fair Value, Measurement Inputs, Disclosure [Line Items] | |||||||
Cumulative foreign currency transaction gains and (losses) included in the cumulative translation adjustment component of AOCI | $ 821 | $ 821 | $ 509 | ||||
Foreign currency transaction gains (losses) | 243 | $ 7 | $ 312 | $ 97 | |||
Number of cruise ships purchased | CruiseShip | 4 | ||||||
Foreign currency contract commitments | $ 5,800 | $ 5,800 | |||||
Percentage of debt bore fixed interest rates, including the effect of interest rate swaps | 62.00% | 62.00% | 60.00% | ||||
Percentage of debt bore floating interest rates, including the effect of interest rate swaps | 38.00% | 38.00% | 40.00% | ||||
Princess Cruises | Cash Flow Hedging | Maximum | Foreign currency zero cost collars – cash flow hedges | |||||||
Fair Value, Measurement Inputs, Disclosure [Line Items] | |||||||
Currency exchange risk hedged | $ 590 | ||||||
Princess Cruises | Cash Flow Hedging | Minimum | Foreign currency zero cost collars – cash flow hedges | |||||||
Fair Value, Measurement Inputs, Disclosure [Line Items] | |||||||
Currency exchange risk hedged | 504 | ||||||
Seabourn Cruises | Cash Flow Hedging | Maximum | Foreign currency zero cost collars – cash flow hedges | |||||||
Fair Value, Measurement Inputs, Disclosure [Line Items] | |||||||
Currency exchange risk hedged | 221 | ||||||
Seabourn Cruises | Cash Flow Hedging | Minimum | Foreign currency zero cost collars – cash flow hedges | |||||||
Fair Value, Measurement Inputs, Disclosure [Line Items] | |||||||
Currency exchange risk hedged | $ 185 | ||||||
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 | $ 3,500 | $ 2,600 | |||||
Subsequent Event | |||||||
Fair Value, Measurement Inputs, Disclosure [Line Items] | |||||||
Number of cruise ships purchased | ship | 3 |
Segment Information (Details)
Segment Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2016USD ($)ship | Aug. 31, 2015USD ($) | Aug. 31, 2016USD ($)Segmentship | Aug. 31, 2015USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of Reportable Segments | Segment | 4 | |||
Number of Reportable Cruise Brand Operating Segments | Segment | 2 | |||
Operating costs and expenses | $ 2,563 | $ 2,490 | $ 7,064 | $ 7,229 |
Selling and administrative | 529 | 484 | 1,613 | 1,504 |
Depreciation and amortization | 443 | 399 | 1,303 | 1,206 |
Operating Income | 1,562 | 1,510 | 2,474 | 2,064 |
North America | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 3,284 | 3,111 | 7,823 | 7,570 |
Operating costs and expenses | 1,668 | 1,647 | 4,368 | 4,558 |
Selling and administrative | 293 | 271 | 897 | 830 |
Depreciation and amortization | 272 | 242 | 791 | 738 |
Operating Income | 1,051 | 951 | 1,767 | 1,444 |
EAA | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,738 | 1,691 | 4,466 | 4,273 |
Operating costs and expenses | 903 | 852 | 2,666 | 2,644 |
Selling and administrative | 161 | 162 | 513 | 511 |
Depreciation and amortization | 152 | 140 | 450 | 417 |
Operating Income | 522 | 537 | 837 | 701 |
Cruise Support | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 31 | 30 | 93 | 82 |
Operating costs and expenses | 12 | 8 | 23 | 14 |
Selling and administrative | 73 | 49 | 196 | 156 |
Depreciation and amortization | 9 | 6 | 32 | 18 |
Operating Income | $ (63) | (33) | $ (158) | (106) |
Tour and Other | ||||
Segment Reporting Information [Line Items] | ||||
Number of cruise ships | ship | 3 | 3 | ||
Revenues | $ 148 | 150 | $ 190 | 194 |
Operating costs and expenses | 84 | 82 | 125 | 129 |
Selling and administrative | 2 | 2 | 7 | 7 |
Depreciation and amortization | 10 | 11 | 30 | 33 |
Operating Income | 52 | 55 | 28 | 25 |
Intersegment elimination | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | (104) | (99) | (118) | (116) |
Operating costs and expenses | (104) | (99) | (118) | (116) |
Selling and administrative | 0 | 0 | 0 | 0 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Operating Income | $ 0 | $ 0 | $ 0 | $ 0 |
Earnings Per Share - Basic and
Earnings Per Share - Basic and Diluted Earnings Per Share Computation (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2016 | Aug. 31, 2015 | |
Earnings Per Share [Abstract] | ||||
Net income for basic and diluted earnings per share | $ 1,424 | $ 1,216 | $ 2,171 | $ 1,487 |
Weighted-average common and ordinary shares outstanding (in shares) | 737 | 778 | 751 | 778 |
Dilutive effect of equity plans (in shares) | 2 | 3 | 3 | 3 |
Diluted weighted-average shares outstanding (in shares) | 739 | 781 | 754 | 781 |
Basic earnings per share (in dollars per share) | $ 1.93 | $ 1.56 | $ 2.89 | $ 1.91 |
Diluted earnings per share (in dollars per share) | $ 1.93 | $ 1.56 | $ 2.88 | $ 1.91 |
Shareholder's Equity (Details)
Shareholder's Equity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 23, 2016 | Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2016 | Aug. 31, 2015 | Nov. 30, 2015 | Jun. 27, 2016 | |
Equity, Class of Treasury Stock [Line Items] | |||||||
Purchases of treasury stock | $ 2,110 | $ 166 | |||||
Sales of treasury stock | $ 40 | $ 167 | |||||
Dividends Declared Per Share (in dollars per share) | $ 0.35 | $ 0.30 | $ 1 | $ 0.80 | |||
Common Stock | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Increase in dividend rate (as a percent) | 17.00% | ||||||
Dividends Declared Per Share (in dollars per share) | $ 0.35 | $ 0.30 | |||||
Ordinary Shares | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Increase in dividend rate (as a percent) | 17.00% | ||||||
Dividends Declared Per Share (in dollars per share) | $ 0.35 | $ 0.30 | |||||
Carnival Corp | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Shares repurchased (in shares) | 43,600 | ||||||
Purchases of treasury stock | $ 2,100 | ||||||
Stock Repurchase Program, Authorized Amount, Increase | $ 1,000 | ||||||
Carnival Corp | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Shares repurchased (in shares) | 891 | ||||||
Treasury stock sold (in shares) | 891 | ||||||
Sales of treasury stock | $ 40 | ||||||
Subsequent Event | Carnival Corp | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Shares repurchased (in shares) | 2,300 | ||||||
Purchases of treasury stock | $ 107 | ||||||
Remaining number of shares available under the Repurchase Program (in shares) | $ 500 |