included in cruise passenger ticket revenues and the related cost of purchasing

Included in cruise passenger ticket revenues and the

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included in cruise passenger ticket revenues, and the related cost of purchasing these services are included incruise transportation costs. The proceeds that we collect from the sales of third-party shore excursions and onbehalf of our onboard concessionaires, net of the amounts remitted to them, are included in onboard and othercruise revenues as concession revenues. All of these amounts are recognized on a completed voyage or pro ratabasis as discussed above.Cruise passenger ticket revenues include fees, taxes and charges collected by us from our guests. A portion ofthese fees, taxes and charges vary with guest head counts and are directly imposed on a revenue-producingarrangement. This portion of the fees, taxes and charges is expensed in commissions, transportation and othercosts when the corresponding revenues are recognized. These fees, taxes and charges included in passenger ticketrevenues 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 passengerticket revenues and are expensed in other ship operating expenses when the corresponding revenues arerecognized.Revenues and expenses from our hotel and transportation operations, which are included in our Tour and Othersegment, 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 theterm of the agreement.InsuranceWe 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 our13
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ships, war risks, workers compensation, directors’ and officers’ liability, property damage and general liabilityfor shoreside third-party claims. We recognize insurance recoverables from third-party insurers for recordedlosses at the time the recovery is probable and upon settlement for amounts in excess of the recorded losses. Allof our insurance policies are subject to coverage limits, exclusions and deductible levels. The liabilitiesassociated with crew illnesses and crew and guest injury claims, including all legal costs, are estimated based onthe specific merits of the individual claims or actuarially estimated based on historical claims experience, lossdevelopment factors and other assumptions.Selling and Administrative ExpensesSelling expenses include a broad range of advertising, marketing and promotional expenses. Advertising ischarged to expense as incurred, except for media production costs, which are expensed upon the first airing of theadvertisement. 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
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  • Spring '17
  • Casiano
  • Balance Sheet, consolidated financial statements, Carnival Cruise Lines, Holland America Line, Carnival Corporation & PLC, Princess Cruises

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