MIAMI, June 21, 2011 /PRNewswire-FirstCall/ — Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK) reported net income of $206 million, or $0.26 diluted EPS, on revenues of $3.6 billion for its second quarter ended May 31, 2011. Net income for the second quarter of 2010 was $252 million, or $0.32 diluted EPS, on revenues of $3.3 billion.
Commenting on the second quarter, Carnival Corporation & plc Chairman and CEO Micky Arison said, "Our North America brands’ revenue yields increased 3 percent in the second quarter while yields for our Europe, Australia and Asia brands were up slightly (constant dollars), having been affected by the geo-political events which unfolded in the Middle East and North Africa, as well as the earthquake and nuclear disaster in Japan. The revenue yield improvement was more than offset by higher fuel prices which cost the company approximately $150 million, or $0.19 per share."
Key metrics for the second quarter 2011 compared to the prior year were as follows:
— On a constant dollar basis net revenue yields (net revenue per available
lower berth day) increased 2.3 percent for 2Q 2011, which was in line
with the company’s March guidance, up 1.5 to 2.5 percent. Net revenue
yields in current dollars increased 6.0 percent due to favorable
currency exchange rates. Gross revenue yields increased 5.8 percent in
current dollars.
— Net cruise costs excluding fuel per available lower berth day ("ALBD")
increased 2.7 percent in constant dollars, which was in line with March
guidance, up 2.0 to 3.0 percent. Gross cruise costs including fuel per
ALBD in current dollars increased 10.3 percent.
— Fuel prices increased 35 percent to $673 per metric ton for 2Q 2011 from
$498 per metric ton in 2Q 2010 and was higher than March guidance of
$659 per metric ton.
Continuing with its strategic growth initiatives, the company took delivery of its 100(th) ship, Carnival Cruise Lines’ 3,690-passenger Carnival Magic, in late April. Two additional ships, AIDA Cruises’ 2,194-passenger AIDAsol and Seabourn’s 450-passenger Seabourn Quest were also delivered during the 2011 second quarter.
Also, during the second quarter a contract was finalized with Fincantieri for the construction of a 3,611-passenger ship for P&O Cruises (UK) scheduled to be delivered in February 2015. The order marks Carnival Corporation & plc’s first ship delivery for 2015, aligned with the company’s strategy to have two to three ships constructed per year.
2011 Outlook
At this point in time, cumulative advance bookings for the remainder of the year are at higher prices with lower occupancies versus last year. For the last six weeks, booking volumes for the second half of 2011 are well ahead of the prior year for the North America brands, as well as, the Europe, Australia and Asia brands. Pricing for the North America brands remains strong. Pricing for the Europe, Australia and Asia brands has been significantly affected by the prolonged conflict in the Middle East and North Africa regions and earthquake in Japan, which necessitated very close-in deployment changes for more than 300 cruises. The Southern Europe brands were particularly affected with over 40 percent of their deployments in these areas.
As previously announced, the impact of these events are expected to cost the company an additional $0.15 per share in the second half of the year and reduces full year revenue yields by approximately 1.0 percent. The company now expects full year net revenue yields, on a constant dollar basis, to increase 1.5 to 2.5 percent, compared to its March guidance increase of 2.5 to 3.5 percent. Net revenue yields on a current dollar basis are expected to increase 4.0 to 5.0 percent for the full year 2011 compared to 2010.
Arison noted, "Our North America brands continue to perform well, benefiting from the gradual economic recovery, with strong yield growth expected in the second half of the year. We expect lower yields for our Europe, Australia and Asia segment in the second half of 2011 as a result of the significant deployment changes in Europe. Despite the considerable challenges we have faced this year, the long-term fundamentals of our business remain sound."
The company continues to expect net cruise costs excluding fuel per ALBD for the full year 2011 to be flat to up 1.0 percent on a constant dollar basis, which is in line with its March guidance.
Taking all the above factors into consideration, the company now forecasts full year 2011 fully diluted earnings per share to be in the range of $2.40 to $2.50, compared to 2010 earnings of $2.47 per share. Based on the current spot prices for fuel, fuel costs for the full year 2011 are now expected to increase $515 million compared to 2010, costing an additional $0.65 per share.
Third Quarter 2011
Third quarter constant dollar net revenue yields are expected to increase 1.0 to 2.0 percent (up 5.5 to 6.5 percent on a current dollar basis) compared to the prior year. Net cruise costs excluding fuel per ALBD for the third quarter are expected to be 2.5 to 3.5 percent higher on a constant dollar basis (up 7.0 to 8.0 percent on a current dollar basis) compared to prior year. Fuel costs for the third quarter are expected to increase $170 million compared to the prior year, costing an additional $0.21 per share.
Based on the above factors and using current fuel prices and currency exchange rates, the company expects fully diluted earnings for the third quarter 2011 to be in the range of $1.60 to $1.64 per share, compared to $1.62 per share in 2010.
Selected Key Forecast Metrics
—————————–
Full Year 2011 Third Quarter 2011
Current Constant Current Constant
Dollars Dollars Dollars Dollars
Change in:
Net revenue
yields 4.0 to 5.0% 1.5 to 2.5% 5.5 to 6.5% 1.0 to 2.0%
Net cruise
costs excl.
fuel /ALBD 2.5 to 3.5% 0.0 to 1.0% 7.0 to 8.0% 2.5 to 3.5%
Full Year 2011 Third Quarter 2011
Fuel price per
metric ton $639 $670
Fuel consumption
(metric tons in
thousands) 3,415 860
Currency
Euro $1.41 to euro 1 $1.43 to euro 1
Sterling $1.61 to 1 pound Sterling $1.62 to 1 pound Sterling
The company has scheduled a conference call with analysts at 10:00 a.m. EDT (3:00 p.m. BST) today to discuss its 2011 second quarter earnings. This call can be listened to live, and additional information can be obtained, via Carnival Corporation & plc’s Web site at www.carnivalcorp.com and www.carnivalplc.com.
Carnival Corporation & plc is the largest cruise vacation group in the world, with a portfolio of cruise brands in North America, Europe, Australia and Asia, comprised of Carnival Cruise Lines, Holland America Line, Princess Cruises, Seabourn, AIDA Cruises, Costa Cruises, Cunard, Ibero Cruises, P&O Cruises (UK) and P&O Cruises (Australia).
Together, these brands operate 100 ships totaling approximately 197,000 lower berths with eight new ships scheduled to be delivered between now and February 2015. Carnival Corporation & plc also operates Holland America Princess Alaska Tours, the leading tour company in Alaska and the Canadian Yukon. Traded on both the New York and London Stock Exchanges, Carnival Corporation & plc is the only group in the world to be included in both the S&P 500 and the FTSE 100 indices.
Cautionary Note Concerning Factors That May Affect Future Results
Some of the statements, estimates or projections contained in this earnings release are "forward-looking statements" that involve risks, uncertainties and assumptions with respect to Carnival Corporation & plc, including some statements concerning future results, outlooks, plans, goals and other events which have not yet occurred. These statements are intended to qualify for the safe harbors from liability provided by Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. We have tried, whenever possible, to identify these statements by using words like "will," "may," "could," "should," "would," "believe," "expect," "anticipate," "forecast," "future," "intend," "plan," "estimate" and similar expressions of future intent or the negative of such terms. Because forward-looking statements involve risks and uncertainties, there are many factors that could cause Carnival Corporation & plc’s actual results, performance or achievements to differ materially from those expressed or implied in this earnings release. Forward-looking statements include those statements which may impact, among other things, the forecasting of Carnival Corporation & plc’s earnings per share, net revenue yields, booking levels, pricing, occupancy, operating, financing and tax costs, fuel expenses, costs per available lower berth day, estimates of ship depreciable lives and residual values, liquidity, goodwill and trademark fair values and outlook. These factors include, but are not limited to, the following: general economic and business conditions; fluctuations in foreign currency exchange rates; the international political climate, armed conflicts, terrorist and pirate attacks, vessel seizures, and threats thereof, and other world events affecting the safety and security of travel; competition from and overcapacity in the cruise ship or land-based vacation industries; accidents, the spread of contagious diseases and threats thereof, adverse weather conditions or natural disasters and other incidents affecting the health, safety, security and satisfaction of guests and crew; adverse publicity concerning the cruise industry in general, or Carnival Corporation & plc in particular, including any adverse impact that cruising may have on the marine environment; changes in and compliance with laws and regulations relating to the protection of persons with disabilities, employment, environment, health, safety, security, tax and other regulations under which Carnival Corporation & plc operates; economic, market and political factors that are beyond Carnival Corporation & plc’s control, which could increase its operating, financing and other costs; the ability of Carnival Corporation & plc to implement its shipbuilding programs and ship repairs, maintenance and refurbishments on terms that are favorable or consistent with its expectations; increases in Carnival Corporation & plc’s repairs and maintenance expenses and refurbishment costs as its fleet ages; the continued strength of Carnival Corporation & plc’s cruise brands and its ability to implement its brand strategies; Carnival Corporation & plc’s international operations are subject to additional risks not generally applicable to its U.S. operations; geographic regions in which Carnival Corporation & plc tries to expand its business may be slow to develop and ultimately not develop how it expects; whether Carnival Corporation & plc’s future operating cash flow will be sufficient to fund future obligations and whether it will be able to obtain financing, if necessary, in sufficient amounts and on terms that are favorable or consistent with its expectations; Carnival Corporation & plc counterparties’ abilities to perform; continuing financial viability of Carnival Corporation & plc’s travel agent distribution system, air service providers and other key vendors in its supply chain and reductions in the availability of, and increases in the pricing for, the services and products provided by these vendors; Carnival Corporation & plc’s decisions to self-insure against various risks or its inability to obtain insurance for certain risks at reasonable rates; disruptions and other damages to Carnival Corporation & plc’s information technology and other networks and operations and breaches in data security; loss of key personnel or Carnival Corporation & plc’s ability to recruit or retain qualified personnel; union disputes and other employee relation issues; lack of continuing availability of attractive, convenient and safe port destinations; and risks associated with the dual listed company arrangement. Forward-looking statements should not be relied upon as a prediction of actual results. Subject to any continuing obligations under applicable law or any relevant stock exchange rules, Carnival Corporation & plc expressly disclaim any obligation to disseminate, after the date of this release, any updates or revisions to any such forward-looking statements to reflect any change in expectations or events, conditions or circumstances on which any such statements are based.
CARNIVAL CORPORATION & PLC
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(in millions, except per share data)
Three Months Ended
May 31,
——-
2011 2010
—- —-
Revenues
Cruise
Passenger tickets $2,778 $2,499 (a)
Onboard and other 817 737
Tour and other 25 31
— —
3,620 3,267
—– —–
Costs and Expenses
Operating
Cruise
Commissions, transportation and 562 512 (a)
other
Onboard and other 121 106
Payroll and related 435 383
Fuel 579 416
Food 241 212
Other ship operating 556 504
Tour and other 27 32
— —
Total 2,521 2,165
Selling and administrative 440 404
Depreciation and amortization 380 349
— —
3,341 2,918
—– —–
Operating Income 279 349
— —
Nonoperating (Expense) Income
Interest income 3 3
Interest expense, net of
capitalized (91) (99)
interest
Other income (expense), net 13 (2)
— —
(75) (98)
— —
Income Before Income Taxes 204 251
Income Tax Benefit (Expense),
Net 2 1
— —
Net Income $206 $252
==== ====
Earnings Per Share
Basic $0.26 $0.32
===== =====
Diluted $0.26 $0.32
===== =====
Dividends Declared Per Share $0.25 $0.10
===== =====
Weighted-Average Shares
Outstanding – Basic 791 788
=== ===
Weighted-Average Shares
Outstanding – Diluted 793 806
=== ===
Six Months
Ended
May 31,
——-
2011 2010
—- —-
Revenues
Cruise
Passenger tickets $5,430 $4,940 (a)
Onboard and other 1,574 1,466
Tour and other 35 39
— —
7,039 6,445
—– —–
Costs and Expenses
Operating
Cruise
Commissions, transportation and 1,226 1,092 (a)
other
Onboard and other 241 219
Payroll and related 846 774
Fuel 1,029 813
Food 472 424
Other ship operating 1,066 978
Tour and other 36 47
— —
Total 4,916 4,347
Selling and administrative 862 800
Depreciation and amortization 747 694
— —
6,525 5,841
—– —–
Operating Income 514 604
— —
Nonoperating (Expense) Income
Interest income 5 7
Interest expense, net of
capitalized (177) (195)
interest
Other income (expense), net 19 (5)
— —
(153) (193)
—- —-
Income Before Income Taxes 361 411
Income Tax Benefit (Expense),
Net (3) 16
— —
Net Income $358 $427
==== ====
Earnings Per Share
Basic $0.45 $0.54
===== =====
Diluted $0.45 $0.54
===== =====
Dividends Declared Per Share $0.50 $0.20
===== =====
Weighted-Average Shares
Outstanding – Basic 791 788
=== ===
Weighted-Average Shares
Outstanding – Diluted 793 806
=== ===
(a) During the fourth quarter of 2010, we changed the classification of
our port costs that vary with guest head counts to a gross
presentation from a net presentation, which resulted in an increase
in passenger ticket revenues and commissions, transportation and
other costs. The amounts reclassified and included on a gross basis
in passenger ticket revenues and commissions, transportation and
other costs were $72 million and $155 million for the three and six
months ended May 31, 2010, respectively.
CARNIVAL CORPORATION & PLC
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in millions, except par values)
May 31, November 30,
2011 2010
—- —-
ASSETS
Current Assets
Cash and cash equivalents $557 $429
Trade and other receivables, net 360 248
Inventories 365 320
Prepaid expenses and other 217 247
— —
Total current assets 1,499 1,244
—– —–
Property and Equipment, Net 32,822 30,967
Goodwill 3,424 3,320
Other Intangibles 1,396 1,320
Other Assets 622 639
— —
$39,763 $37,490
======= =======
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Short-term borrowings $274 $740
Current portion of long-term debt 890 613
Accounts payable 552 503
Accrued liabilities and other 1,137 1,094
Customer deposits 3,668 2,805
—– —–
Total current liabilities 6,521 5,755
—– —–
Long-Term Debt 8,678 8,011
Other Long-Term Liabilities and
Deferred Income 712 693
Shareholders’ Equity
Common stock of Carnival Corporation,
$0.01 par value; 6 6
1,960 shares authorized; 647 shares
at 2011 and
646 shares at 2010 issued
Ordinary shares of Carnival plc,
$1.66 par value; 215 357 355
shares at 2011 and 214 shares at 2010
issued
Additional paid-in capital 8,155 8,094
Retained earnings 17,186 17,224
Accumulated other comprehensive
income (loss) 542 (254)
Treasury stock, 39 shares at 2011 and
2010 of Carnival (2,394) (2,394)
Corporation and 31 shares at 2011 and
2010 of —— ——
Carnival plc, at cost
Total shareholders’ equity 23,852 23,031
—— ——
$39,763 $37,490
======= =======
CARNIVAL CORPORATION & PLC
OTHER INFORMATION
Three Months Ended Six Months Ended
May 31, May 31,
——- ——-
2011 2010 2011 2010
—- —- —- —-
STATISTICAL
INFORMATION
Passengers carried
(in thousands) 2,330 2,222 4,515 4,271
Occupancy
percentage 104.5% 103.8% 104.8% 103.7%
Fuel consumption
(metric tons in
thousands) 861 835 1,689 1,635
Fuel cost per
metric ton (a) $673 $498 $609 $497
Currency
U.S. dollar to euro
1 $1.43 $1.32 $1.38 $1.36
U.S. dollar to 1
pound Sterling $1.63 $1.50 $1.60 $1.55
U.S. dollar to
Australian dollar $1.05 $0.91 $1.02 $0.90
CASH FLOW
INFORMATION
Cash from
operations $1,389 $1,398 $1,801 $1,794
Capital
expenditures $1,450 $999 $1,622 $2,168
Dividends paid $198 $79 $277 $79
(a) Fuel cost per metric ton is calculated by dividing the cost of
fuel by the number of metric tons consumed.
CARNIVAL CORPORATION & PLC
NON-GAAP FINANCIAL MEASURES
Consolidated gross and net revenue yields were computed by dividing
the gross and net cruise revenues, without rounding, by ALBDs as
follows (dollars in millions, except yields) (a):
Three Months Ended
May 31,
——-
2011
2011 Constant 2010
—- Dollar —-
——
Passenger ticket revenues $2,778 $2,678 $2,499
Onboard and other
revenues 817 794 737
— — —
Gross cruise revenues 3,595 3,472 3,236
—– —– —–
Less cruise costs
Commissions,
transportation and other (562) (542) (512)
Onboard and other (121) (116) (106)
—- —- —-
(683) (658) (618)
—- —- —-
Net passenger ticket
revenues 2,216 2,136 1,987
Net onboard and other
revenues 696 678 631
— — —
Net cruise revenues $2,912 $2,814 $2,618
====== ====== ======
ALBDs (b) 17,402,349 17,402,349 16,575,242
========== ========== ==========
Gross revenue yields $206.60 $199.49 $195.22
% increase vs. 2010 5.8% 2.2%
Net revenue yields $167.39 $161.67 $157.97
% increase vs. 2010 6.0% 2.3%
Net passenger ticket
revenue yields $127.37 $122.74 $119.89
% increase vs. 2010 6.2% 2.4%
Net onboard and other
revenue yields $40.03 $38.94 $38.07
% increase vs. 2010 5.1% 2.3%
——————- — —
Six Months Ended
May 31,
——-
2011
2011 Constant 2010
—- Dollar —-
——
Passenger ticket revenues $5,430 $5,366 $4,940
Onboard and other
revenues 1,574 1,556 1,466
—– —– —–
Gross cruise revenues 7,004 6,922 6,406
—– —– —–
Less cruise costs
Commissions,
transportation and other (1,226) (1,221) (1,092)
Onboard and other (241) (237) (219)
—- —- —-
(1,467) (1,458) (1,311)
—— —— ——
Net passenger ticket
revenues 4,204 4,145 3,848
Net onboard and other
revenues 1,333 1,319 1,247
—– —– —–
Net cruise revenues $5,537 $5,464 $5,095
====== ====== ======
ALBDs (b) 34,089,059 34,089,059 32,465,324
========== ========== ==========
Gross revenue yields $205.47 $203.07 $197.31
% increase vs. 2010 4.1% 2.9%
Net revenue yields $162.44 $160.30 $156.91
% increase vs. 2010 3.5% 2.2%
Net passenger ticket
revenue yields $123.33 $121.60 $118.51
% increase vs. 2010 4.1% 2.6%
Net onboard and other
revenue yields $39.12 $38.70 $38.40
% increase vs. 2010 1.9% 0.8%
——————- — —
Consolidated gross and net cruise costs and net cruise costs
excluding fuel per ALBD were computed by dividing the gross and net
cruise costs and net cruise costs excluding fuel, without rounding,
by ALBDs as follows (dollars in millions, except costs per ALBD)
(a):
Three Months Ended
May 31,
——-
2011
2011 Constant 2010
—- Dollar —-
——
Cruise operating expenses $2,494 $2,429 $2,133
Cruise selling and
administrative 434 421 396
expenses (c) — — —
Gross cruise costs 2,928 2,850 2,529
Less cruise costs
included in net
cruise revenues
Commissions,
transportation (562) (542) (512)
and other
Onboard and other (121) (116) (106)
—- —- —-
Net cruise costs 2,245 2,192 1,911
Less fuel (579) (579) (416)
—- —- —-
Net cruise costs
excluding fuel $1,666 $1,613 $1,495
====== ====== ======
ALBDs (b) 17,402,349 17,402,349 16,575,242
========== ========== ==========
Gross cruise costs per
ALBD $168.28 $163.77 $152.55
% increase vs. 2010 10.3% 7.4%
Net cruise costs per ALBD $129.07 $125.95 $115.29
% increase vs. 2010 11.9% 9.2%
Net cruise costs
excluding $95.75 $92.64 $90.22
fuel per ALBD
% increase vs. 2010 6.1% 2.7%
——————- — —
Six Months Ended
May 31,
——-
2011
2011 Constant 2010
—- Dollar —-
——
Cruise operating expenses $4,880 $4,843 $4,300
Cruise selling and
administrative 850 841 785
expenses (c) — — —
Gross cruise costs 5,730 5,684 5,085
Less cruise costs
included in net
cruise revenues
Commissions,
transportation (1,226) (1,221) (1,092)
and other
Onboard and other (241) (237) (219)
—- —- —-
Net cruise costs 4,263 4,226 3,774
Less fuel (1,029) (1,029) (813)
—— —— —-
Net cruise costs
excluding fuel $3,234 $3,197 $2,961
====== ====== ======
ALBDs (b) 34,089,059 34,089,059 32,465,324
========== ========== ==========
Gross cruise costs per
ALBD $168.10 $166.73 $156.64
% increase vs. 2010 7.3% 6.4%
Net cruise costs per ALBD $125.07 $123.96 $116.25
% increase vs. 2010 7.6% 6.6%
Net cruise costs
excluding $94.87 $93.76 $91.21
fuel per ALBD
% increase vs. 2010 4.0% 2.8%
——————- — —
NOTES TO NON-GAAP FINANCIAL MEASURES
(a) We use net cruise revenues per ALBD ("net revenue yields"), net cruise costs per ALBD and net cruise costs excluding fuel per ALBD as significant non-GAAP financial measures of our cruise segment financial performance. These measures enable us to separate the impact of predictable capacity changes from the more unpredictable rate changes that affect our business. We believe these non-GAAP measures provide an expanded insight to measure our revenue and cost performance in addition to the standard U.S. GAAP-based financial measures.
Net revenue yields are commonly used in the cruise industry to measure a company’s cruise segment revenue performance and for revenue management purposes. We use "net cruise revenues" rather than "gross cruise revenues" to calculate net revenue yields. We believe that net cruise revenues is a more meaningful measure in determining revenue yield than gross cruise revenues because it reflects the cruise revenues earned net of our most significant variable costs, which are travel agent commissions, cost of air and other transportation, certain other costs that are directly associated with onboard and other revenues and credit card fees. Substantially all of our remaining cruise costs are largely fixed, except for the impact of changing prices, once our ship capacity levels have been determined.
Net passenger ticket revenues reflect gross cruise revenues, net of (1) onboard and other revenues, (2) commissions, transportation and other costs and (3) onboard and other cruise costs. Net onboard and other revenues reflect gross cruise revenues, net of (1) passenger ticket revenues, (2) commissions, transportation and other costs and (3) onboard and other cruise costs. Net passenger ticket revenue yields and net onboard and other revenue yields are computed by dividing net passenger ticket revenues and net onboard and other revenues by ALBDs.
Net cruise costs per ALBD and net cruise costs excluding fuel per ALBD are the most significant measures we use to monitor our ability to control our cruise segment costs rather than gross cruise costs per ALBD. We exclude the same variable costs that are included in the calculation of net cruise revenues to calculate net cruise costs with and without fuel to avoid duplicating these variable costs in our non-GAAP financial measures.
We have not provided estimates of future gross revenue yields or future gross cruise costs per ALBD because the quantitative reconciliations of forecasted gross cruise revenues to forecasted net cruise revenues or forecasted gross cruise costs to forecasted net cruise costs would include a significant amount of uncertainty in projecting the costs deducted to arrive at this measure. As such, management does not believe that this reconciling information would be meaningful.
In addition, because our Europe, Australia & Asia cruise brands utilize the euro, sterling and Australian dollar to measure their results and financial condition, the translation of those operations to our U.S. dollar reporting currency results in increases in reported U.S. dollar revenues and expenses if the U.S. dollar weakens against these foreign currencies and decreases in reported U.S. dollar revenues and expenses if the U.S. dollar strengthens against these foreign currencies. Accordingly, we also monitor and report our non-GAAP financial measures assuming the 2011 period currency exchange rates have remained constant with the 2010 period rates, or on a "constant dollar basis," in order to remove the impact of changes in exchange rates on our non-U.S. dollar cruise operations. We believe that this is a useful measure since it facilitates a comparative view of the growth of our business in a fluctuating currency exchange rate environment.
There are no specific rules for determining our non-GAAP current and constant dollar financial measures and, accordingly, it is possible that they may not be exactly comparable to the like-kind information presented by other cruise companies, which is a potential risk associated with using these measures to compare us to other cruise companies.
(b) ALBDs is a standard measure of passenger capacity for the period, which we use to perform rate and capacity variance analyses to determine the main non-capacity driven factors that cause our cruise revenues and expenses to vary. ALBDs assume that each cabin we offer for sale accommodates two passengers and is computed by multiplying passenger capacity by revenue-producing ship operating days in the period.
(c) For the three and six months ended May 31, 2011, selling and administrative expenses were $440 million ($404 million in 2010) and $862 million ($800 million in 2010), respectively. For the three and six months ended May 31, 2011, selling and administrative expenses were comprised of cruise selling and administrative expenses of $434 million ($396 million in 2010) and $850 million ($785 million in 2010) and Tour and Other selling and administrative expenses of $6 million ($8 million in 2010) and $12 million ($15 million in 2010), respectively.
SOURCE Carnival Corporation