Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Aug. 31, 2018 | Sep. 20, 2018 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Aug. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
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 | 526,850,769 | |
CARNIVAL PLC | ||
Entity Registrant Name | CARNIVAL PLC | |
Entity Central Index Key | 1,125,259 | |
Entity Common Stock, Shares Outstanding | 198,323,911 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2018 | Aug. 31, 2017 | |
Revenues | ||||
Revenues | $ 5,836 | $ 5,515 | $ 14,425 | $ 13,251 |
Cruise | ||||
Selling and administrative | 573 | 547 | 1,794 | 1,649 |
Depreciation and amortization | 511 | 473 | 1,510 | 1,368 |
Goodwill and trademark impairment | 0 | 89 | 0 | 89 |
Operating Costs and Expenses | 4,042 | 4,122 | 11,653 | 10,990 |
Operating Income | 1,794 | 1,393 | 2,772 | 2,261 |
Nonoperating Income (Expense) | ||||
Interest income | 5 | 3 | 10 | 7 |
Interest expense, net of capitalized interest | (49) | (49) | (147) | (150) |
Gains (losses) on fuel derivatives, net | 4 | 7 | 61 | (19) |
Other (expense) income, net | (9) | 14 | 2 | 7 |
Nonoperating Income (Expense) | (50) | (25) | (74) | (155) |
Income Before Income Taxes | 1,744 | 1,368 | 2,699 | 2,106 |
Income Tax Expense, Net | (37) | (39) | (40) | (46) |
Net Income | $ 1,707 | $ 1,329 | $ 2,659 | $ 2,060 |
Earnings Per Share | ||||
Earnings per share, basic (in dollars per share) | $ 2.42 | $ 1.84 | $ 3.73 | $ 2.85 |
Earnings per share, diluted (in dollars per share) | 2.41 | 1.83 | 3.72 | 2.84 |
Dividends declared per share (in dollars per share) | $ 0.5 | $ 0.4 | $ 1.45 | $ 1.15 |
Cruise and tour | ||||
Cruise | ||||
Operating Costs and Expenses | $ 2,958 | $ 3,013 | $ 8,348 | $ 7,884 |
Cruise | ||||
Cruise | ||||
Commissions, transportation and other | 760 | 699 | 2,000 | 1,781 |
Onboard and other | 207 | 184 | 485 | 438 |
Payroll and related | 537 | 520 | 1,638 | 1,552 |
Fuel | 434 | 307 | 1,166 | 914 |
Food | 275 | 270 | 804 | 774 |
Other ship operating | 655 | 947 | 2,115 | 2,293 |
Cruise passenger ticket | ||||
Revenues | ||||
Revenues | 4,353 | 4,138 | 10,694 | 9,814 |
Cruise onboard and other | ||||
Revenues | ||||
Revenues | 1,316 | 1,223 | 3,509 | 3,237 |
Tour and other | ||||
Revenues | ||||
Revenues | 167 | 154 | 222 | 200 |
Cruise | ||||
Operating Costs and Expenses | $ 90 | $ 86 | $ 140 | $ 132 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2018 | Aug. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 1,707 | $ 1,329 | $ 2,659 | $ 2,060 |
Items Included in Other Comprehensive Income (Loss) | ||||
Change in foreign currency translation adjustment | 15 | 285 | (50) | 543 |
Other | 0 | 24 | (9) | 66 |
Other Comprehensive Income (Loss) | 14 | 309 | (59) | 609 |
Total Comprehensive Income | $ 1,722 | $ 1,638 | $ 2,600 | $ 2,669 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Aug. 31, 2018 | Nov. 30, 2017 |
Current Assets | ||
Cash and cash equivalents | $ 526 | $ 395 |
Trade and other receivables, net | 366 | 312 |
Inventories | 405 | 387 |
Prepaid expenses and other | 458 | 502 |
Total current assets | 1,755 | 1,596 |
Property and Equipment, Net | 35,178 | 34,430 |
Goodwill | 2,949 | 2,967 |
Other Intangibles | 1,182 | 1,200 |
Other Assets | 689 | 585 |
Total assets | 41,753 | 40,778 |
Current Liabilities | ||
Short-term borrowings | 632 | 485 |
Current portion of long-term debt | 688 | 1,717 |
Accounts payable | 666 | 762 |
Accrued liabilities and other | 1,616 | 1,877 |
Customer deposits | 4,418 | 3,958 |
Total current liabilities | 8,020 | 8,800 |
Long-Term Debt | 8,297 | 6,993 |
Other Long-Term Liabilities | 783 | 769 |
Contingencies | ||
Shareholders’ Equity | ||
Additional paid-in capital | 8,741 | 8,690 |
Retained earnings | 24,921 | 23,292 |
Accumulated other comprehensive loss | (1,840) | (1,782) |
Treasury stock, 129 shares at 2018 and 122 shares at 2017 of Carnival Corporation and 44 shares at 2018 and 32 shares at 2017 of Carnival plc, at cost | (7,533) | (6,349) |
Total shareholders’ equity | 24,654 | 24,216 |
Total liabilities and shareholders' equity | 41,753 | 40,778 |
Common Stock | ||
Shareholders’ Equity | ||
Common stock | 7 | 7 |
Ordinary Shares | ||
Shareholders’ Equity | ||
Common stock | $ 358 | $ 358 |
Consolidated Balance Sheets (U5
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares shares in Millions | Aug. 31, 2018 | Nov. 30, 2017 |
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) | 656 | 655 |
Treasury stock, shares (in shares) | 129 | 122 |
CARNIVAL PLC | Ordinary Shares | ||
Common stock, par value (in dollars per share) | $ 1.66 | $ 1.66 |
Common stock, shares issued (in shares) | 217 | 217 |
Treasury stock, shares (in shares) | 44 | 32 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Aug. 31, 2018 | Aug. 31, 2017 | |
OPERATING ACTIVITIES | ||
Net income | $ 2,659 | $ 2,060 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 1,510 | 1,368 |
Impairments | 16 | 392 |
(Gains) losses on fuel derivatives, net | (61) | 19 |
Share-based compensation | 49 | 48 |
Other, net | (22) | 52 |
Adjustments to reconcile net income to net cash provided by operating activities | 4,151 | 3,939 |
Changes in operating assets and liabilities | ||
Receivables | (61) | (1) |
Inventories | (19) | (18) |
Prepaid expenses and other | 76 | (1) |
Accounts payable | (94) | (101) |
Accrued liabilities and other | (166) | 25 |
Customer deposits | 549 | 455 |
Net cash provided by operating activities | 4,436 | 4,298 |
INVESTING ACTIVITIES | ||
Purchases of property and equipment | (2,784) | (2,296) |
Proceeds from sales of ships | 282 | 0 |
Payments of fuel derivative settlements | (37) | (157) |
Other, net | (67) | 34 |
Net cash used in investing activities | (2,606) | (2,419) |
FINANCING ACTIVITIES | ||
Proceeds from (repayments of) short-term borrowings, net | 182 | (335) |
Principal repayments of long-term debt | (1,271) | (1,012) |
Proceeds from issuance of long-term debt | 1,618 | 467 |
Dividends paid | (1,003) | (797) |
Purchases of treasury stock | (1,205) | (305) |
Other, net | (28) | (22) |
Net cash used in financing activities | (1,707) | (2,004) |
Effect of exchange rate changes on cash and cash equivalents | 7 | 11 |
Net increase (decrease) in cash and cash equivalents | 131 | (114) |
Cash and cash equivalents at beginning of period | 395 | 603 |
Cash and cash equivalents at end of period | $ 526 | $ 489 |
General
General | 9 Months Ended |
Aug. 31, 2018 | |
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 Statements of Income and the Consolidated Statements of Comprehensive Income for the three and nine months ended August 31, 2018 and 2017 , the Consolidated Balance Sheet at August 31, 2018 and the Consolidated Statements of Cash Flows for the nine months ended August 31, 2018 and 2017 are unaudited and, in the opinion of our management, contain all adjustments, consisting of only normal recurring 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 2017 joint Annual Report on Form 10-K (“Form 10-K”) filed with the U.S. Securities and Exchange Commission on January 29, 2018 . Our operations are seasonal and results for interim periods are not necessarily indicative of the results for the entire year. Accounting Pronouncements The Financial Accounting Standards Board (the “FASB”) issued amended guidance, Compensation - Retirement Benefits - Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , which requires the bifurcation of service costs and other components of net benefit cost. The presentation of the other components of net benefit cost have been recorded in other income. On December 1, 2017, we adopted this guidance using the retrospective transition method for the presentation of the service cost component and other components of net benefit cost. The impact of adopting this guidance was immaterial to our consolidated financial statements, and as such, prior period information was not revised. The FASB issued guidance, 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 2019. We have elected the modified retrospective adoption method which requires entities to apply the new revenue standard only to the current period consolidated financial statements and record a cumulative-effect adjustment to the December 1, 2018 opening balance of retained earnings, if any. We are substantially complete with our evaluation of changes to our revenues using the model supported by the new revenue standard. The adoption of this guidance will result in the gross presentation of prepaid travel agent commissions, shore excursions and other onboard revenues and costs, all of which were historically presented net, and will require additional disclosures. It is not expected to have a material impact to the timing of our recognition of revenues. The FASB issued amended guidance, Business Combinations - Clarifying the Definition of a Business , which assists entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. This guidance is required to be adopted by us in the first quarter of 2019 on a prospective basis. Early adoption is permitted, including adoption in an interim period. The adoption of this guidance is not expected to have a material impact on our consolidated financial statements. The FASB issued amended guidance, Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments , which clarifies how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments are aimed at reducing the existing diversity in practice. This guidance is required to be adopted by us in the first quarter of 2019 and must be applied using a retrospective approach for each period presented. Early adoption is permitted, including adoption in an interim period. The adoption of this guidance is not expected to have a material impact on our consolidated financial statements. The FASB issued amended guidance, Statement of Cash Flows - Restricted Cash , which requires restricted cash to be presented with cash and cash equivalents in the statement of cash flows. This guidance is required to be adopted by us in the first quarter of 2019 and must be applied using a retrospective approach to each period presented. Early adoption is permitted, including adoption in an interim period. The adoption of this guidance is not expected to have a material impact on our consolidated financial statements. The FASB issued amended guidance, Service Concession Arrangements, which clarifies that the grantor in a service arrangement should be considered the customer of the operating entity in all cases. This guidance is required to be adopted by us in the first quarter of 2019 and can be applied using either a retrospective or a modified retrospective approach. The adoption of this guidance is not expected to have a material impact on our consolidated financial statements. The FASB issued guidance, 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 2020 and must be applied using a modified retrospective approach which allows entities to either apply the new lease standard to the beginning of the earliest period presented or only to the current period consolidated financial statements. Early adoption is permitted. The initial adoption of this guidance is expected to increase both our total assets and total liabilities, reflecting the lease rights and obligations arising from our lease arrangements, and will require additional disclosures. We are currently evaluating if this guidance will have any other impact on our consolidated financial statements. The FASB issued guidance, Derivatives and Hedging , which targeted improvements to accounting for hedging activities such as hedging strategies, effectiveness assessments, and recognition of derivative gains or losses. This guidance is required to be adopted by us in the first quarter of 2020 and must be applied using a modified retrospective approach. Early adoption is permitted. 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 $174 million and $161 million and $465 million and $440 million for the three and nine months ended August 31, 2018 and 2017 , respectively. |
Unsecured Debt
Unsecured Debt | 9 Months Ended |
Aug. 31, 2018 | |
Debt Disclosure [Abstract] | |
Unsecured Debt | Unsecured Debt At August 31, 2018 , our short-term borrowings consisted of euro- denominated commercial paper of $398 million and a euro-denominated bank loan of $234 million due in 2019. For the nine months ended August 31, 2018 and 2017, we had borrowings of $2 million and $111 million and repayments of $2 million and $364 million of commercial paper with original maturities greater than three months. In December 2017, we repaid a $500 million bond and borrowed $469 million under a sterling-denominated floating rate bank loan due in 2022. In January 2018, we repaid $365 million of euro-denominated floating rate bank loans prior to their 2018 and 2021 maturity dates. In March 2018, we borrowed $370 million under a euro-denominated floating rate bank loan due in 2020 and borrowed $567 million under an export credit facility due in semi-annual installments through 2030. In April 2018, we borrowed $229 million under an export credit facility due in semi-annual installments through 2030. In June 2018, we entered into a $914 million export credit facility, which may be drawn in euro or U.S. dollars in 2022 and will be due in semi-annual installments through 2034. The interest rate on this export credit facility can be fixed or floating, at our discretion. |
Contingencies
Contingencies | 9 Months Ended |
Aug. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Litigation 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 – 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 changes in laws which increase our lender’s costs. 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. |
Fair Value Measurements, Deriva
Fair Value Measurements, Derivative Instruments and Hedging Activities and Financial Risks | 9 Months Ended |
Aug. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Derivative Instruments and Hedging Activities and Financial Risks | Fair Value Measurements, Derivative Instruments and Hedging Activities and Financial Risks Fair Value Measurements Fair value is defined as the amount that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date and is measured using inputs in one of the following three categories: • 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. 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 August 31, 2018 November 30, 2017 Carrying Fair Value Carrying Fair Value (in millions) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets Long-term other assets (a) $ 136 $ — $ 37 $ 98 $ 126 $ — $ 49 $ 75 Total $ 136 $ — $ 37 $ 98 $ 126 $ — $ 49 $ 75 Liabilities Fixed rate debt (b) $ 5,308 $ — $ 5,463 $ — $ 5,588 $ — $ 5,892 $ — Floating rate debt (b) 4,372 — 4,409 — 3,658 — 3,697 — Total $ 9,680 $ — $ 9,872 $ — $ 9,246 $ — $ 9,589 $ — (a) Long-term other assets are comprised of notes receivable. The fair values of our Level 2 notes receivable 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. (b) The debt amounts above do not include the impact of interest rate swaps or debt issuance costs. 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 current market interest rates being applied to this debt. Financial Instruments that are Measured at Fair Value on a Recurring Basis August 31, 2018 November 30, 2017 (in millions) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 526 $ — $ — $ 395 $ — $ — Restricted cash 15 — — 26 — — Marketable securities held in rabbi trusts (a) 6 — — 97 — — Derivative financial instruments — 5 — — 15 — Total $ 547 $ 5 $ — $ 518 $ 15 $ — Liabilities Derivative financial instruments $ — $ 40 $ — $ — $ 161 $ — Total $ — $ 40 $ — $ — $ 161 $ — (a) The use of marketable securities held in rabbi trusts is restricted to funding certain deferred compensation and non-qualified U.S. pension plans. Nonfinancial Instruments that are Measured at Fair Value on a Nonrecurring Basis Valuation of Goodwill and Trademarks Goodwill (in millions) NAA (a) EA (b) Total At November 30, 2017 $ 1,898 $ 1,069 $ 2,967 Foreign currency translation adjustment — (18 ) (18 ) At August 31, 2018 $ 1,898 $ 1,050 $ 2,949 (a) North America & Australia (“NAA”) (b) Europe & Asia (“EA”) Trademarks (in millions) NAA EA Total At November 30, 2017 $ 927 $ 252 $ 1,179 Foreign currency translation adjustment — (5 ) (5 ) At August 31, 2018 $ 927 $ 247 $ 1,174 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. A change in the conditions, circumstances or strategy, may result in a need to recognize an impairment charge. Derivative Instruments and Hedging Activities (in millions) Balance Sheet Location August 31, 2018 November 30, 2017 Derivative assets Derivatives designated as hedging instruments Net investment hedges (a) Prepaid expenses and other $ 5 $ 3 Foreign currency zero cost collars (b) Prepaid expenses and other — 12 Total derivative assets $ 5 $ 15 Derivative liabilities Derivatives designated as hedging instruments Net investment hedges (a) Accrued liabilities and other $ — $ 13 Other long-term liabilities 13 17 Interest rate swaps (c) Accrued liabilities and other 8 10 Other long-term liabilities 13 17 35 57 Derivatives not designated as hedging instruments Fuel (d) Accrued liabilities and other 6 95 Other long-term liabilities — 9 6 104 Total derivative liabilities $ 40 $ 161 (a) At August 31, 2018 and November 30, 2017 , we had foreign currency swaps totaling $160 million and $324 million , respectively, that are designated as hedges of our net investments in foreign operations with a euro-denominated functional currency. At August 31, 2018 , this foreign currency swap settles in September 2019. (b) At August 31, 2018 and November 30, 2017 , 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. (c) 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 $422 million at August 31, 2018 and $479 million at November 30, 2017 of EURIBOR-based floating rate euro debt to fixed rate euro debt. At August 31, 2018 , these interest rate swaps settle through March 2025. (d) At August 31, 2018 and November 30, 2017 , 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. August 31, 2018 (in millions) 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 $ 5 $ — $ 5 $ (5 ) $ — Liabilities $ 40 $ — $ 40 $ (5 ) $ 36 November 30, 2017 (in millions) 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 $ 15 $ — $ 15 $ (8 ) $ 7 Liabilities $ 161 $ — $ 161 $ (8 ) $ 153 The effective gain (loss) portions of our derivatives qualifying and designated as hedging instruments recognized in other comprehensive income were as follows: Three Months Ended Nine Months Ended (in millions) 2018 2017 2018 2017 Net investment hedges $ 3 $ (17 ) $ 13 $ (33 ) Foreign currency zero cost collars – cash flow hedges $ (1 ) $ 17 $ (11 ) $ 52 Interest rate swaps – cash flow hedges $ 1 $ 1 $ 5 $ 5 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, 2018 and November 30, 2017 , no collateral was required to be posted to or received from our fuel derivative counterparties. The amount of estimated cash flow hedges’ unrealized gains and losses that are expected to be reclassified to earnings in the next twelve months is not significant. Financial Risks 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 manage fuel consumption through ship maintenance practices, modifying our itineraries and implementing innovative technologies. We are also adding new, more fuel efficient ships to our fleet and are strategically disposing of less fuel efficient ships. We have Brent call options and Brent put options, collectively referred to as zero cost collars, that establish ceiling and floor prices and mitigate a portion of our economic risk attributable to potential fuel price increases through the end of 2018. Three Months Ended Nine Months Ended (in millions) 2018 2017 2018 2017 Unrealized gains on fuel derivatives, net $ 8 $ 65 $ 90 $ 134 Realized losses on fuel derivatives, net (4 ) (57 ) (29 ) (153 ) Gains (losses) on fuel derivatives, net $ 4 $ 7 $ 61 $ (19 ) 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 operations primarily utilize the U.S. dollar, Australian dollar, euro or sterling as their functional currencies. Our operations also have revenue and expenses denominated in non-functional currencies. Movements in foreign currency exchange rates will affect our financial statements. 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 have $5.5 billion and $861 million of euro- and sterling-denominated debt, respectively, including the effect of foreign currency swaps, which provides an economic offset for our operations with euro and sterling functional currency. We also partially mitigate our net investment currency exposures by denominating a portion of our foreign currency intercompany payables in our foreign operations’ functional currencies. 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 to manage foreign currency exchange rate risk for some of our ship construction payments. At August 31, 2018 , for the following newbuild, we had foreign currency zero cost collars for a portion of euro-denominated shipyard payments. These collars are designated as cash flow hedges. Entered Into Matures in Weighted-Average Floor Rate Weighted- Average Ceiling Rate Nieuw Statendam 2016 November 2018 $ 1.05 $ 1.25 If the spot rate is between the ceiling and floor rates on the date of maturity, then we would not owe or receive any payments under these collars. At August 31, 2018 , our remaining newbuild currency exchange rate risk primarily relates to euro-denominated newbuild contract payments to non-euro functional currency brands, which represent a total unhedged commitment of $10.5 billion and relates to newbuilds scheduled to be delivered in 2019 through 2025. The cost of shipbuilding orders that we may place in the future that is denominated in a different currency than our cruise brands’ will be affected by foreign currency exchange rate fluctuations. These foreign currency exchange rate fluctuations may affect our decision 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, issuance of new debt, amendment of existing debt or early retirement of existing debt. 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 • Generally 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, 2018 , 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. 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, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Beginning in the first quarter of 2018, we revised our operating segments due to changes in our internal reporting as a result of the recent strategic realignment of our business in Australia. The presentation of prior period segment information has been revised to reflect this change. Our operating 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 four reportable segments are comprised of (1) NAA cruise operations, (2) EA cruise operations, (3) Cruise Support and (4) Tour and Other. The operating segments within each of our NAA and EA reportable segments have been aggregated based on the similarity of their economic and other characteristics. Our Cruise Support segment represents our portfolio of leading port destinations and other services, all of which are operated for the benefit of our cruise brands. Our Tour and Other segment represents the hotel and transportation operations of Holland America Princess Alaska Tours and other operations. Three Months Ended August 31, (in millions) Revenues Operating costs and Selling Depreciation Operating 2018 NAA $ 3,805 $ 1,981 $ 333 $ 323 $ 1,168 EA 1,832 891 172 150 621 Cruise Support 31 (4 ) 64 28 (57 ) Tour and Other 167 90 4 10 62 $ 5,836 $ 2,958 $ 573 $ 511 $ 1,794 2017 NAA $ 3,565 $ 1,920 $ 320 $ 303 $ 933 (a) EA 1,767 1,007 158 147 455 Cruise Support 28 — 65 13 (50 ) Tour and Other 155 86 4 10 55 $ 5,515 $ 3,013 $ 547 $ 473 $ 1,393 Nine Months Ended August 31, (in millions) Revenues Operating costs and Selling Depreciation Operating 2018 NAA $ 9,325 $ 5,385 $ 1,039 $ 940 $ 1,961 EA 4,784 2,783 551 466 984 Cruise Support 94 40 183 76 (204 ) Tour and Other 222 140 22 29 31 $ 14,425 $ 8,348 $ 1,794 $ 1,510 $ 2,772 2017 NAA $ 8,744 $ 5,073 $ 982 $ 893 $ 1,708 (a) EA 4,206 2,661 475 411 658 Cruise Support 101 18 180 36 (133 ) Tour and Other 200 132 12 28 28 $ 13,251 $ 7,884 $ 1,649 $ 1,368 $ 2,261 (a) Includes $89 million of impairment charges related to NAA’s goodwill and trademarks. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Aug. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Three Months Ended Nine Months Ended (in millions, except per share data) 2018 2017 2018 2017 Net income for basic and diluted earnings per share $ 1,707 $ 1,329 $ 2,659 $ 2,060 Weighted-average shares outstanding 706 723 712 724 Dilutive effect of equity plans 2 3 2 3 Diluted weighted-average shares outstanding 707 726 714 727 Basic earnings per share $ 2.42 $ 1.84 $ 3.73 $ 2.85 Diluted earnings per share $ 2.41 $ 1.83 $ 3.72 $ 2.84 |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Aug. 31, 2018 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Effective August 27, 2018, the company approved a modification of the general authorization to repurchase Carnival Corporation common stock and/or Carnival plc ordinary shares (the “Repurchase Program”), which replenished the remaining authorized repurchases at the time of the approval to $1.0 billion. During the nine months ended August 31, 2018 , we repurchased 11.8 million shares of Carnival plc ordinary shares and 7.8 million shares of Carnival Corporation common stock for $726 million and $475 million , respectively, under the Repurchase Program. At August 31, 2018 , the remaining availability under the Repurchase Program was $987 million . During the three months ended August 31, 2018 , our Boards of Directors declared a dividend to holders of Carnival Corporation common stock and Carnival plc ordinary shares of $0.50 per share. |
Property and Equipment
Property and Equipment | 9 Months Ended |
Aug. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment In March 2018, we sold and transferred an EA segment 700 -passenger capacity ship. In April 2018, we sold and transferred an EA segment 1,300 -passenger capacity ship. In June 2018, we sold an NAA segment 840 -passenger capacity ship. The ship will be transferred to the buyer in July 2019. In June 2018, we sold an EA segment 1,880 -passenger capacity ship. The ship will be transferred to the buyer in August 2019. In August 2018, we sold an NAA segment 1,680 -passenger capacity ship. The ship will be transferred to the buyer in March 2019. |
Other Assets
Other Assets | 9 Months Ended |
Aug. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets In July 2018, we acquired a minority interest in the White Pass & Yukon Route (“White Pass”) division of TWC Enterprises Ltd. that includes White Pass’ port, railroad and retail operations in Skagway, Alaska. |
General (Policies)
General (Policies) | 9 Months Ended |
Aug. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The Consolidated Statements of Income and the Consolidated Statements of Comprehensive Income for the three and nine months ended August 31, 2018 and 2017 , the Consolidated Balance Sheet at August 31, 2018 and the Consolidated Statements of Cash Flows for the nine months ended August 31, 2018 and 2017 are unaudited and, in the opinion of our management, contain all adjustments, consisting of only normal recurring 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 2017 joint Annual Report on Form 10-K (“Form 10-K”) filed with the U.S. Securities and Exchange Commission on January 29, 2018 . Our operations are seasonal and results for interim periods are not necessarily indicative of the results for the entire year. |
Accounting Pronouncements | Accounting Pronouncements The Financial Accounting Standards Board (the “FASB”) issued amended guidance, Compensation - Retirement Benefits - Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , which requires the bifurcation of service costs and other components of net benefit cost. The presentation of the other components of net benefit cost have been recorded in other income. On December 1, 2017, we adopted this guidance using the retrospective transition method for the presentation of the service cost component and other components of net benefit cost. The impact of adopting this guidance was immaterial to our consolidated financial statements, and as such, prior period information was not revised. The FASB issued guidance, 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 2019. We have elected the modified retrospective adoption method which requires entities to apply the new revenue standard only to the current period consolidated financial statements and record a cumulative-effect adjustment to the December 1, 2018 opening balance of retained earnings, if any. We are substantially complete with our evaluation of changes to our revenues using the model supported by the new revenue standard. The adoption of this guidance will result in the gross presentation of prepaid travel agent commissions, shore excursions and other onboard revenues and costs, all of which were historically presented net, and will require additional disclosures. It is not expected to have a material impact to the timing of our recognition of revenues. The FASB issued amended guidance, Business Combinations - Clarifying the Definition of a Business , which assists entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. This guidance is required to be adopted by us in the first quarter of 2019 on a prospective basis. Early adoption is permitted, including adoption in an interim period. The adoption of this guidance is not expected to have a material impact on our consolidated financial statements. The FASB issued amended guidance, Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments , which clarifies how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments are aimed at reducing the existing diversity in practice. This guidance is required to be adopted by us in the first quarter of 2019 and must be applied using a retrospective approach for each period presented. Early adoption is permitted, including adoption in an interim period. The adoption of this guidance is not expected to have a material impact on our consolidated financial statements. The FASB issued amended guidance, Statement of Cash Flows - Restricted Cash , which requires restricted cash to be presented with cash and cash equivalents in the statement of cash flows. This guidance is required to be adopted by us in the first quarter of 2019 and must be applied using a retrospective approach to each period presented. Early adoption is permitted, including adoption in an interim period. The adoption of this guidance is not expected to have a material impact on our consolidated financial statements. The FASB issued amended guidance, Service Concession Arrangements, which clarifies that the grantor in a service arrangement should be considered the customer of the operating entity in all cases. This guidance is required to be adopted by us in the first quarter of 2019 and can be applied using either a retrospective or a modified retrospective approach. The adoption of this guidance is not expected to have a material impact on our consolidated financial statements. The FASB issued guidance, 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 2020 and must be applied using a modified retrospective approach which allows entities to either apply the new lease standard to the beginning of the earliest period presented or only to the current period consolidated financial statements. Early adoption is permitted. The initial adoption of this guidance is expected to increase both our total assets and total liabilities, reflecting the lease rights and obligations arising from our lease arrangements, and will require additional disclosures. We are currently evaluating if this guidance will have any other impact on our consolidated financial statements. The FASB issued guidance, Derivatives and Hedging , which targeted improvements to accounting for hedging activities such as hedging strategies, effectiveness assessments, and recognition of derivative gains or losses. This guidance is required to be adopted by us in the first quarter of 2020 and must be applied using a modified retrospective approach. Early adoption is permitted. We are currently evaluating the impact this guidance will have on our consolidated financial statements. |
Fair Value Measurements, Deri17
Fair Value Measurements, Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Aug. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Estimated Carrying and Fair Values of Financial Instrument Assets and Liabilities Not Measured at Fair Value on a Recurring Basis | Financial Instruments that are not Measured at Fair Value on a Recurring Basis August 31, 2018 November 30, 2017 Carrying Fair Value Carrying Fair Value (in millions) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets Long-term other assets (a) $ 136 $ — $ 37 $ 98 $ 126 $ — $ 49 $ 75 Total $ 136 $ — $ 37 $ 98 $ 126 $ — $ 49 $ 75 Liabilities Fixed rate debt (b) $ 5,308 $ — $ 5,463 $ — $ 5,588 $ — $ 5,892 $ — Floating rate debt (b) 4,372 — 4,409 — 3,658 — 3,697 — Total $ 9,680 $ — $ 9,872 $ — $ 9,246 $ — $ 9,589 $ — (a) Long-term other assets are comprised of notes receivable. The fair values of our Level 2 notes receivable 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. (b) The debt amounts above do not include the impact of interest rate swaps or debt issuance costs. 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 current 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 | Financial Instruments that are Measured at Fair Value on a Recurring Basis August 31, 2018 November 30, 2017 (in millions) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 526 $ — $ — $ 395 $ — $ — Restricted cash 15 — — 26 — — Marketable securities held in rabbi trusts (a) 6 — — 97 — — Derivative financial instruments — 5 — — 15 — Total $ 547 $ 5 $ — $ 518 $ 15 $ — Liabilities Derivative financial instruments $ — $ 40 $ — $ — $ 161 $ — Total $ — $ 40 $ — $ — $ 161 $ — (a) The use of marketable securities held in rabbi trusts is restricted to funding certain deferred compensation and non-qualified U.S. pension plans. |
Reconciliation of Changes in Carrying Amounts of Goodwill | Valuation of Goodwill and Trademarks Goodwill (in millions) NAA (a) EA (b) Total At November 30, 2017 $ 1,898 $ 1,069 $ 2,967 Foreign currency translation adjustment — (18 ) (18 ) At August 31, 2018 $ 1,898 $ 1,050 $ 2,949 (a) North America & Australia (“NAA”) (b) Europe & Asia (“EA”) |
Reconciliation of Changes in Carrying Amounts of Trademarks | Trademarks (in millions) NAA EA Total At November 30, 2017 $ 927 $ 252 $ 1,179 Foreign currency translation adjustment — (5 ) (5 ) At August 31, 2018 $ 927 $ 247 $ 1,174 |
Estimated Fair Values of Derivative Financial Instruments and Location in the Consolidated Balance Sheets | Derivative Instruments and Hedging Activities (in millions) Balance Sheet Location August 31, 2018 November 30, 2017 Derivative assets Derivatives designated as hedging instruments Net investment hedges (a) Prepaid expenses and other $ 5 $ 3 Foreign currency zero cost collars (b) Prepaid expenses and other — 12 Total derivative assets $ 5 $ 15 Derivative liabilities Derivatives designated as hedging instruments Net investment hedges (a) Accrued liabilities and other $ — $ 13 Other long-term liabilities 13 17 Interest rate swaps (c) Accrued liabilities and other 8 10 Other long-term liabilities 13 17 35 57 Derivatives not designated as hedging instruments Fuel (d) Accrued liabilities and other 6 95 Other long-term liabilities — 9 6 104 Total derivative liabilities $ 40 $ 161 (a) At August 31, 2018 and November 30, 2017 , we had foreign currency swaps totaling $160 million and $324 million , respectively, that are designated as hedges of our net investments in foreign operations with a euro-denominated functional currency. At August 31, 2018 , this foreign currency swap settles in September 2019. (b) At August 31, 2018 and November 30, 2017 , 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. (c) 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 $422 million at August 31, 2018 and $479 million at November 30, 2017 of EURIBOR-based floating rate euro debt to fixed rate euro debt. At August 31, 2018 , these interest rate swaps settle through March 2025. (d) At August 31, 2018 and November 30, 2017 , 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. August 31, 2018 (in millions) 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 $ 5 $ — $ 5 $ (5 ) $ — Liabilities $ 40 $ — $ 40 $ (5 ) $ 36 November 30, 2017 (in millions) 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 $ 15 $ — $ 15 $ (8 ) $ 7 Liabilities $ 161 $ — $ 161 $ (8 ) $ 153 |
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 were as follows: Three Months Ended Nine Months Ended (in millions) 2018 2017 2018 2017 Net investment hedges $ 3 $ (17 ) $ 13 $ (33 ) Foreign currency zero cost collars – cash flow hedges $ (1 ) $ 17 $ (11 ) $ 52 Interest rate swaps – cash flow hedges $ 1 $ 1 $ 5 $ 5 |
Unrealized and Realized Gains (Losses) on Fuel Derivatives, Net | Three Months Ended Nine Months Ended (in millions) 2018 2017 2018 2017 Unrealized gains on fuel derivatives, net $ 8 $ 65 $ 90 $ 134 Realized losses on fuel derivatives, net (4 ) (57 ) (29 ) (153 ) Gains (losses) on fuel derivatives, net $ 4 $ 7 $ 61 $ (19 ) |
Outstanding Fuel Derivatives | At August 31, 2018 , for the following newbuild, we had foreign currency zero cost collars for a portion of euro-denominated shipyard payments. These collars are designated as cash flow hedges. Entered Into Matures in Weighted-Average Floor Rate Weighted- Average Ceiling Rate Nieuw Statendam 2016 November 2018 $ 1.05 $ 1.25 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Aug. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | The operating segments within each of our NAA and EA reportable segments have been aggregated based on the similarity of their economic and other characteristics. Our Cruise Support segment represents our portfolio of leading port destinations and other services, all of which are operated for the benefit of our cruise brands. Our Tour and Other segment represents the hotel and transportation operations of Holland America Princess Alaska Tours and other operations. Three Months Ended August 31, (in millions) Revenues Operating costs and Selling Depreciation Operating 2018 NAA $ 3,805 $ 1,981 $ 333 $ 323 $ 1,168 EA 1,832 891 172 150 621 Cruise Support 31 (4 ) 64 28 (57 ) Tour and Other 167 90 4 10 62 $ 5,836 $ 2,958 $ 573 $ 511 $ 1,794 2017 NAA $ 3,565 $ 1,920 $ 320 $ 303 $ 933 (a) EA 1,767 1,007 158 147 455 Cruise Support 28 — 65 13 (50 ) Tour and Other 155 86 4 10 55 $ 5,515 $ 3,013 $ 547 $ 473 $ 1,393 Nine Months Ended August 31, (in millions) Revenues Operating costs and Selling Depreciation Operating 2018 NAA $ 9,325 $ 5,385 $ 1,039 $ 940 $ 1,961 EA 4,784 2,783 551 466 984 Cruise Support 94 40 183 76 (204 ) Tour and Other 222 140 22 29 31 $ 14,425 $ 8,348 $ 1,794 $ 1,510 $ 2,772 2017 NAA $ 8,744 $ 5,073 $ 982 $ 893 $ 1,708 (a) EA 4,206 2,661 475 411 658 Cruise Support 101 18 180 36 (133 ) Tour and Other 200 132 12 28 28 $ 13,251 $ 7,884 $ 1,649 $ 1,368 $ 2,261 (a) Includes $89 million of impairment charges related to NAA’s goodwill and trademarks. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Aug. 31, 2018 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share Computation | Three Months Ended Nine Months Ended (in millions, except per share data) 2018 2017 2018 2017 Net income for basic and diluted earnings per share $ 1,707 $ 1,329 $ 2,659 $ 2,060 Weighted-average shares outstanding 706 723 712 724 Dilutive effect of equity plans 2 3 2 3 Diluted weighted-average shares outstanding 707 726 714 727 Basic earnings per share $ 2.42 $ 1.84 $ 3.73 $ 2.85 Diluted earnings per share $ 2.41 $ 1.83 $ 3.72 $ 2.84 |
General (Details)
General (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2018 | Aug. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Fees, taxes and charges collected from guests | $ 174 | $ 161 | $ 465 | $ 440 |
Unsecured Debt (Details)
Unsecured Debt (Details) - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended | |||||
Apr. 30, 2018 | Mar. 31, 2018 | Jan. 31, 2018 | Dec. 31, 2017 | Aug. 31, 2018 | Aug. 31, 2017 | Jun. 30, 2018 | |
Senior notes | |||||||
Debt Instrument [Line Items] | |||||||
Repayments of long-term debt | $ 500 | ||||||
Euro-denominated bank loan | |||||||
Debt Instrument [Line Items] | |||||||
Repayments of long-term debt | $ 365 | ||||||
Euro-denominated bank loan | Bank loan due 2020 | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds from long-term debt | $ 370 | ||||||
Sterling-denominated bank loan | Bank loan due 2022 | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds from long-term debt | $ 469 | ||||||
Export credit facility | Export credit facility due 2030 | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds from long-term debt | $ 229 | $ 567 | |||||
Export credit facility | Export credit facility due 2034 | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 914 | ||||||
Commercial paper | |||||||
Debt Instrument [Line Items] | |||||||
Current unsecured debt | $ 398 | ||||||
Proceeds from short term debt | 2 | $ 111 | |||||
Repayments of short term debt | 2 | $ 364 | |||||
Euro-denominated bank loan | Bank loan due 2019 | |||||||
Debt Instrument [Line Items] | |||||||
Current unsecured debt | $ 234 |
Fair Value Measurements, Deri22
Fair Value Measurements, Derivative Instruments and Hedging Activities and Financial Risks - Estimated Carrying and Fair Values of Financial Instrument Assets and Liabilities Not Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Millions | Aug. 31, 2018 | Nov. 30, 2017 |
Carrying Value | ||
Assets | ||
Long-term other assets | $ 136 | $ 126 |
Total | 136 | 126 |
Liabilities | ||
Total | 9,680 | 9,246 |
Carrying Value | Fixed Rate | ||
Liabilities | ||
Debt | 5,308 | 5,588 |
Carrying Value | Floating Rate | ||
Liabilities | ||
Debt | 4,372 | 3,658 |
Fair Value | Level 1 | ||
Assets | ||
Long-term other assets | 0 | 0 |
Total | 0 | 0 |
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 | ||
Long-term other assets | 37 | 49 |
Total | 37 | 49 |
Liabilities | ||
Total | 9,872 | 9,589 |
Fair Value | Level 2 | Fixed Rate | ||
Liabilities | ||
Debt | 5,463 | 5,892 |
Fair Value | Level 2 | Floating Rate | ||
Liabilities | ||
Debt | 4,409 | 3,697 |
Fair Value | Level 3 | ||
Assets | ||
Long-term other assets | 98 | 75 |
Total | 98 | 75 |
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 and Financial Risks - 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, 2018 | Nov. 30, 2017 |
Assets | ||
Derivative financial instruments | $ 5 | $ 15 |
Liabilities | ||
Derivative financial instruments | 40 | 161 |
Financial Instruments Measured at Fair Value on a Recurring Basis | Level 1 | ||
Assets | ||
Restricted cash | 15 | 26 |
Total | 547 | 518 |
Financial Instruments Measured at Fair Value on a Recurring Basis | Level 1 | Money market funds | ||
Assets | ||
Cash and cash equivalents | 526 | 395 |
Financial Instruments Measured at Fair Value on a Recurring Basis | Level 1 | Marketable securities held in rabbi trusts | ||
Assets | ||
Marketable securities held in rabbi trusts | 6 | 97 |
Financial Instruments Measured at Fair Value on a Recurring Basis | Level 2 | ||
Assets | ||
Total | 5 | 15 |
Liabilities | ||
Total | 40 | 161 |
Financial Instruments Measured at Fair Value on a Recurring Basis | Level 2 | Derivative financial instruments | ||
Assets | ||
Derivative financial instruments | 5 | 15 |
Financial Instruments Measured at Fair Value on a Recurring Basis | Level 2 | Derivative financial instruments | ||
Liabilities | ||
Derivative financial instruments | $ 40 | $ 161 |
Fair Value Measurements, Deri24
Fair Value Measurements, Derivative Instruments and Hedging Activities and Financial Risks - Reconciliation of Changes in Carrying Amounts of Goodwill (Details) $ in Millions | 9 Months Ended |
Aug. 31, 2018USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 2,967 |
Foreign currency translation adjustment | (18) |
Ending balance | 2,949 |
NAA Segment | |
Goodwill [Roll Forward] | |
Beginning balance | 1,898 |
Foreign currency translation adjustment | 0 |
Ending balance | 1,898 |
EA Segment | |
Goodwill [Roll Forward] | |
Beginning balance | 1,069 |
Foreign currency translation adjustment | (18) |
Ending balance | $ 1,050 |
Fair Value Measurements, Deri25
Fair Value Measurements, Derivative Instruments and Hedging Activities and Financial Risks - Reconciliation of Changes in Carrying Amounts of Intangible Assets Not Subject to Amortization (Details) $ in Millions | 9 Months Ended |
Aug. 31, 2018USD ($) | |
Indefinite-lived Intangible Assets [Roll Forward] | |
Beginning balance | $ 1,179 |
Foreign currency translation adjustment | (5) |
Ending balance | 1,174 |
NAA Segment | |
Indefinite-lived Intangible Assets [Roll Forward] | |
Beginning balance | 927 |
Foreign currency translation adjustment | 0 |
Ending balance | 927 |
EA Segment | |
Indefinite-lived Intangible Assets [Roll Forward] | |
Beginning balance | 252 |
Foreign currency translation adjustment | (5) |
Ending balance | $ 247 |
Fair Value Measurements, Deri26
Fair Value Measurements, Derivative Instruments and Hedging Activities and Financial Risks - Estimated Fair Values of Derivative Financial Instruments and Location on Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Aug. 31, 2018 | Nov. 30, 2017 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 5 | $ 15 |
Derivative liabilities | 40 | 161 |
Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 5 | 15 |
Derivative liabilities | 35 | 57 |
Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 6 | 104 |
Net investment hedges | Derivatives designated as hedging instruments | Prepaid expenses and other | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 5 | 3 |
Net investment hedges | Derivatives designated as hedging instruments | Accrued liabilities and other | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 0 | 13 |
Net investment hedges | Derivatives designated as hedging instruments | Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 13 | 17 |
Foreign currency zero cost collars | Derivatives designated as hedging instruments | Prepaid expenses and other | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 0 | 12 |
Interest rate swaps | Derivatives designated as hedging instruments | Accrued liabilities and other | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 8 | 10 |
Interest rate swaps | Derivatives designated as hedging instruments | Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 13 | 17 |
Interest rate swaps | Cash flow hedging | ||
Derivatives, Fair Value [Line Items] | ||
Interest rate cash flow hedge asset at fair value | 422 | 479 |
Fuel | Derivatives not designated as hedging instruments | Accrued liabilities and other | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 6 | 95 |
Fuel | Derivatives not designated as hedging instruments | Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 9 | |
Currency swap | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | $ 160 | $ 324 |
Fair Value Measurements, Deri27
Fair Value Measurements, Derivative Instruments and Hedging Activities and Financial Risks - Offsetting Derivative Instruments (Details) - USD ($) $ in Millions | Aug. 31, 2018 | Nov. 30, 2017 |
Assets | ||
Gross Amounts | $ 5 | $ 15 |
Gross Amounts Offset in the Balance Sheet | 0 | 0 |
Total Net Amounts Presented in the Balance Sheet | 5 | 15 |
Gross Amounts not Offset in the Balance Sheet | (5) | (8) |
Net Amounts | 0 | 7 |
Liabilities | ||
Gross Amounts | 40 | 161 |
Gross Amounts Offset in the Balance Sheet | 0 | 0 |
Total Net Amounts Presented in the Balance Sheet | 40 | 161 |
Gross Amounts not Offset in the Balance Sheet | (5) | (8) |
Net Amounts | $ 36 | $ 153 |
Fair Value Measurements, Deri28
Fair Value Measurements, Derivative Instruments and Hedging Activities and Financial Risks - Derivatives Qualifying and Designated as Hedging Instruments Recognized in Other Comprehensive Income (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2018 | Aug. 31, 2017 | Nov. 30, 2017 | |
Minimum | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative asset, cash collateral netting threshold, fair value | $ 100,000,000 | $ 100,000,000 | |||
Fuel | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Collateral required to be posted | 0 | 0 | $ 0 | ||
Collateral required to be received | 0 | 0 | $ 0 | ||
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 | 3,000,000 | $ (17,000,000) | 13,000,000 | $ (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 | (1,000,000) | 17,000,000 | (11,000,000) | 52,000,000 | |
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 | $ 1,000,000 | $ 1,000,000 | $ 5,000,000 | $ 5,000,000 |
Fair Value Measurements, Deri29
Fair Value Measurements, Derivative Instruments and Hedging Activities and Financial Risks - Fuel Derivatives Outstanding (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2018 | Aug. 31, 2017 | |
Derivative [Line Items] | ||||
Gains (losses) on fuel derivatives, net | $ 4 | $ 7 | $ 61 | $ (19) |
Fuel | ||||
Derivative [Line Items] | ||||
Unrealized gains on fuel derivatives, net | 8 | 65 | 90 | 134 |
Realized losses on fuel derivatives, net | (4) | (57) | (29) | (153) |
Gains (losses) on fuel derivatives, net | $ 4 | $ 7 | $ 61 | $ (19) |
Fair Value Measurements, Deri30
Fair Value Measurements, Derivative Instruments and Hedging Activities and Financial Risks - Foreign Currency Exchange Rate Risks (Details) | Aug. 31, 2018USD ($) |
Fair Value, Measurement Inputs, Disclosure [Line Items] | |
Foreign currency contract commitments | $ 10,500,000,000 |
Foreign currency zero cost collars – cash flow hedges | Nieuw Statendam | Cash flow hedging | |
Fair Value, Measurement Inputs, Disclosure [Line Items] | |
Weighted-Average Floor Rate | 1.05 |
Weighted- Average Ceiling Rate | 1.25 |
Euro-denominated | |
Fair Value, Measurement Inputs, Disclosure [Line Items] | |
Debt instrument, face amount | $ 5,500,000,000 |
Sterling-denominated | |
Fair Value, Measurement Inputs, Disclosure [Line Items] | |
Debt instrument, face amount | $ 861,000,000 |
Segment Information (Details)
Segment Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2018USD ($) | Aug. 31, 2017USD ($) | Aug. 31, 2018USD ($)segment | Aug. 31, 2017USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | segment | 4 | |||
Revenues | $ 5,836 | $ 5,515 | $ 14,425 | $ 13,251 |
Operating costs and expenses | 2,958 | 3,013 | 8,348 | 7,884 |
Selling and administrative | 573 | 547 | 1,794 | 1,649 |
Depreciation and amortization | 511 | 473 | 1,510 | 1,368 |
Operating Income | 1,794 | 1,393 | 2,772 | 2,261 |
Goodwill and trademark impairment | 0 | 89 | 0 | 89 |
Operating Segments | NAA | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 3,805 | 3,565 | 9,325 | 8,744 |
Operating costs and expenses | 1,981 | 1,920 | 5,385 | 5,073 |
Selling and administrative | 333 | 320 | 1,039 | 982 |
Depreciation and amortization | 323 | 303 | 940 | 893 |
Operating Income | 1,168 | 933 | 1,961 | 1,708 |
Operating Segments | EA | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,832 | 1,767 | 4,784 | 4,206 |
Operating costs and expenses | 891 | 1,007 | 2,783 | 2,661 |
Selling and administrative | 172 | 158 | 551 | 475 |
Depreciation and amortization | 150 | 147 | 466 | 411 |
Operating Income | 621 | 455 | 984 | 658 |
Operating Segments | Cruise Support | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 31 | 28 | 94 | 101 |
Operating costs and expenses | (4) | 0 | 40 | 18 |
Selling and administrative | 64 | 65 | 183 | 180 |
Depreciation and amortization | 28 | 13 | 76 | 36 |
Operating Income | (57) | (50) | (204) | (133) |
Operating Segments | Tour and Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 167 | 155 | 222 | 200 |
Operating costs and expenses | 90 | 86 | 140 | 132 |
Selling and administrative | 4 | 4 | 22 | 12 |
Depreciation and amortization | 10 | 10 | 29 | 28 |
Operating Income | $ 62 | $ 55 | $ 31 | $ 28 |
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, 2018 | Aug. 31, 2017 | Aug. 31, 2018 | Aug. 31, 2017 | |
Earnings Per Share [Abstract] | ||||
Net income for basic and diluted earnings per share | $ 1,707 | $ 1,329 | $ 2,659 | $ 2,060 |
Weighted-average shares outstanding (in shares) | 706 | 723 | 712 | 724 |
Dilutive effect of equity plans (in shares) | 2 | 3 | 2 | 3 |
Diluted weighted-average shares outstanding (in shares) | 707 | 726 | 714 | 727 |
Basic earnings per share (in dollars per share) | $ 2.42 | $ 1.84 | $ 3.73 | $ 2.85 |
Diluted earnings per share (in dollars per share) | $ 2.41 | $ 1.83 | $ 3.72 | $ 2.84 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, shares in Millions | 3 Months Ended | 9 Months Ended | |||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2018 | Aug. 31, 2017 | Apr. 10, 2018 | |
Equity, Class of Treasury Stock [Line Items] | |||||
Shares repurchase program, aggregate value authorized for repurchase | $ 1,000,000,000 | ||||
Purchases of treasury stock (in dollars) | $ 1,205,000,000 | $ 305,000,000 | |||
Dividends declared per share (in dollars per share) | $ 0.5 | $ 0.4 | $ 1.45 | $ 1.15 | |
Repurchase Program | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Remaining authorized repurchase amount | $ 987,000,000 | $ 987,000,000 | |||
Repurchase Program | CARNIVAL PLC | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Shares repurchased (in shares) | 11.8 | ||||
Purchases of treasury stock (in dollars) | $ 726,000,000 | ||||
Repurchase Program | Carnival Corp | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Shares repurchased (in shares) | 7.8 | ||||
Purchases of treasury stock (in dollars) | $ 475,000,000 |
Property and Equipment (Details
Property and Equipment (Details) - passenger | 1 Months Ended | ||||
Aug. 31, 2018 | Jul. 31, 2018 | Jun. 30, 2018 | Apr. 30, 2018 | Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |||||
Passenger capacity of ship sold | 1,680 | 1,880 | 840 | 1,300 | 700 |