Included in cruise passenger ticket revenues and the

included in cruise passenger ticket revenues, and the related cost of purchasing these services are included in
cruise transportation costs. The proceeds that we collect from the sales of third-party shore excursions and on
behalf of our onboard concessionaires, net of the amounts remitted to them, are included in onboard and other
cruise revenues as concession revenues. All of these amounts are recognized on a completed voyage or pro rata
basis as discussed above.
Cruise passenger ticket revenues include fees, taxes and charges collected by us from our guests. A portion of
these fees, taxes and charges vary with guest head counts and are directly imposed on a revenue-producing
arrangement. This portion of the fees, taxes and charges is expensed in commissions, transportation and other
costs when the corresponding revenues are recognized. These fees, taxes and charges included in passenger ticket
revenues and commissions, transportation and other costs were $540 million in 2016, $524 million in 2015 and
$532 million in 2014. The remaining portion of fees, taxes and charges are also included in cruise passenger
ticket revenues and are expensed in other ship operating expenses when the corresponding revenues are
recognized.
Revenues and expenses from our hotel and transportation operations, which are included in our Tour and Other
segment, are recognized at the time the services are performed or expenses are incurred. Revenues from the long-
term leasing of ships, which are also included in our Tour and Other segment, are recognized ratably over the
term of the agreement.
Insurance
We maintain insurance to cover a number of risks including illness and injury to crew, guest injuries, pollution,
other third-party claims in connection with our cruise activities, damage to hull and machinery for each of our
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ships, war risks, workers compensation, directors’ and officers’ liability, property damage and general liability
for shoreside third-party claims. We recognize insurance recoverables from third-party insurers for recorded
losses at the time the recovery is probable and upon settlement for amounts in excess of the recorded losses. All
of our insurance policies are subject to coverage limits, exclusions and deductible levels. The liabilities
associated with crew illnesses and crew and guest injury claims, including all legal costs, are estimated based on
the specific merits of the individual claims or actuarially estimated based on historical claims experience, loss
development factors and other assumptions.
Selling and Administrative Expenses
Selling expenses include a broad range of advertising, marketing and promotional expenses. Advertising is
charged to expense as incurred, except for media production costs, which are expensed upon the first airing of the
advertisement. Selling expenses totaled $630 million in 2016, $627 million in 2015 and $623 million in 2014.
Administrative expenses represent the costs of our shoreside ship support, reservations and other administrative