CCL » Topics » Revenue and Expense Recognition

This excerpt taken from the CCL 10-K filed Jan 29, 2009.

Revenue and Expense Recognition

Guest cruise deposits represent unearned revenues and are initially recorded as customer deposit liabilities when received. Customer deposits are subsequently recognized as cruise revenues, together with revenues from onboard and other activities (which include transportation and shore excursion revenues), and all associated direct costs of a voyage are recognized as cruise expenses, upon completion of voyages with durations of ten nights or less and on a pro rata basis for voyages in excess of ten nights. Future travel discount vouchers issued to guests are typically recorded as a reduction of cruise passenger ticket revenues when such vouchers are utilized. Cancellation fees are recognized in cruise passenger ticket revenues at the time of the cancellation.

Our sale to guests of air and other transportation to and from our ships and the related cost of purchasing this service is recorded as cruise passenger ticket revenues and cruise transportation costs, respectively. The proceeds that we collect from the sale of third party shore excursions and on behalf of onboard concessionaires, net of the amounts remitted to them, are recorded as concession revenues, on a net basis, in onboard and other cruise revenues.

Revenues and expenses from our tour and travel services are recognized at the time the services are performed or expenses are incurred.

Port and other taxes assessed on a per guest basis by a government or quasi-governmental entity are excluded from expenses as they are presented on a net basis against the corresponding amounts collected from our guests, which are excluded from revenues.

These excerpts taken from the CCL 10-K filed Jan 29, 2008.

          Revenue and Expense Recognition

          Guest cruise deposits represent unearned revenues and are initially recorded as customer deposit liabilities when received. Customer deposits are subsequently recognized as cruise revenues, together with revenues from onboard and other activities, which include transportation and shore excursion revenues and all associated direct costs of a voyage, upon completion of voyages with durations of ten nights or less and on a pro rata basis for voyages in excess of ten nights. Future travel discount vouchers issued to guests are typically recorded as a reduction of revenues when such vouchers are utilized. Cancellation fees are recognized in revenues at the time of the cancellation. Revenues and expenses from our tour and travel services are recognized at the time the services are performed or expenses are incurred. Port and other taxes assessed on a per guest basis by a government or quasi-governmental entity are excluded from expenses as they are presented on a net basis against the corresponding amounts collected from our guests, which are excluded from revenues.

          Our sale to guests of air and other transportation to and from our ships and the related cost of purchasing this service is recorded as cruise passenger ticket revenues and cruise transportation costs, respectively. The proceeds that we collect from the sale of third party shore excursions and on behalf of onboard concessionaires, net of the amounts remitted to them, are recorded as concession revenues, on a net basis, in onboard and other cruise revenues.

          Revenue
and Expense Recognition



          Guest
cruise deposits represent unearned revenues and are initially recorded as
customer deposit liabilities when received. Customer deposits are subsequently
recognized as cruise revenues, together with revenues from onboard and other
activities, which include transportation and shore excursion revenues and all
associated direct costs of a voyage, upon completion of voyages with durations
of ten nights or less and on a pro rata basis for voyages in excess of ten
nights. Future travel discount vouchers issued to guests are typically recorded
as a reduction of revenues when such vouchers are utilized. Cancellation fees
are recognized in revenues at the time of the cancellation. Revenues and
expenses from our tour and travel services are recognized at the time the
services are performed or expenses are incurred. Port and other taxes assessed
on a per guest basis by a government or quasi-governmental entity are excluded
from expenses as they are presented on a net basis against the corresponding
amounts collected from our guests, which are excluded from revenues.



          Our
sale to guests of air and other transportation to and from our ships and the
related cost of purchasing this service is recorded as cruise passenger ticket
revenues and cruise transportation costs, respectively. The proceeds that we collect
from the sale of third party shore excursions and on behalf of onboard
concessionaires, net of the amounts remitted to them, are recorded as
concession revenues, on a net basis, in onboard and other cruise revenues.



SIZE=2>          Insurance/Self-Insurance



          We
use a combination of insurance and self-insurance for a number of risks
including claims related to crew and guests, hull and machinery, war risk,
workers’ compensation, property damage and general liability. Liabilities
associated with certain of these risks, including crew and guest claims, are
estimated actuarially based on, among other things, historical
claims experience, loss development factors and other assumptions. Our expected
loss accruals are based on estimates, and while we believe the amounts
accrued are adequate, the ultimate loss may differ from the amounts provided.



"Revenue and Expense Recognition" elsewhere:

Carnival Plc ADS (CUK)
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