UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) May 1, 2015


Carnival Corporation
Carnival plc
(Exact name of registrant as
specified in its charter)
(Exact name of registrant as
specified in its charter)
 
 
 Republic of Panama
England and Wales
(State or other jurisdiction of
incorporation)
(State or other jurisdiction of
incorporation)
 
 
001-9610
001-15136
(Commission File Number)
(Commission File Number)
 
 
59-1562976
98-0357772
(IRS Employer Identification No.)
(IRS Employer Identification No.)
 
 
3655 N.W. 87th Avenue
Miami, Florida 33178-2428
Carnival House, 100 Harbour Parade,
Southampton SO15 1ST, United Kingdom
(Address of principal
executive offices)
(Zip Code)
(Address of principal
executive offices)
(Zip Code)
 
 
(305) 599-2600
011 44 23 8065 5000
(Registrant’s telephone number,
including area code)
(Registrant’s telephone number,
including area code)
 
 
None
None
(Former name or former address,
 if changed since last report.)
(Former name, former address,
if changed since last report.)



Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrants under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))



Section 8 - Other Events

Item 8.01 Other Events.

Carnival Corporation & plc is filing this Form 8-K to provide financial information that revises and corrects the accounting for one of our brand’s marine and technical spare parts in order to consistently expense and classify them fleetwide. We evaluated the materiality of this revision and concluded that it was not material to any of our previously issued financial statements. However, had we not revised the accounting, this may have resulted in material inconsistencies to our financial statements in the future.

In order to assist investors prior to the time that we revise previously reported results in future filings, Carnival Corporation & plc is presenting certain financial information to reflect the impact of the revision described above on our annual financial information. This unaudited Carnival Corporation & plc revised consolidated financial information is filed as Exhibits 99.1, 99.2 and 99.3 to this report as follows:

•
Summary Impact of Revision to Prior Period Financial Information as of November 30, 2014 and 2013 and for the years ended November 30, 2014, 2013 and 2012;
•
Consolidated Statements of Income for the years ended November 30, 2014, 2013 and 2012;
•
Consolidated Statements of Comprehensive Income for the years ended November 30, 2014, 2013 and 2012;
•
Consolidated Balance Sheets at November 30, 2014 and 2013;
•
Consolidated Statements of Cash Flows for the years ended November 30, 2014, 2013 and 2012;
•
Consolidated Statements of Shareholders' Equity for the years ended November 30, 2014, 2013 and 2012 and
•
Ratio of Earnings to Fixed Charges for the years ended November 30, 2014, 2013, 2012, 2011 and 2010.

Section 9 - Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

99.1 Summary Impact of Revision to Prior Period Financial Information.
99.2 Consolidated Statements of Income (Unaudited).
99.2 Consolidated Statements of Comprehensive Income (Unaudited).
99.2 Consolidated Balance Sheets (Unaudited).
99.2 Consolidated Statements of Cash Flows (Unaudited).
99.2 Consolidated Statements of Shareholders' Equity (Unaudited).
99.3 Ratio of Earnings to Fixed Charges (Unaudited).






















2

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, each of the registrants has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

CARNIVAL CORPORATION
 
CARNIVAL PLC
 
 
 
By: /s/ Larry Freedman
 
By: /s/ Larry Freedman
Name: Larry Freedman
 
Name: Larry Freedman
Title: Chief Accounting Officer and Controller
 
Title: Chief Accounting Officer and Controller
 
 
 
Date: May 1, 2015
 
Date: May 1, 2015












































3

Exhibit Index
Exhibit No.
Description
 
 
99.1
Summary Impact of Revision to Prior Period Financial Information.
99.2
Consolidated Statements of Income (Unaudited).
99.2
Consolidated Statements of Comprehensive Income (Unaudited).
99.2
Consolidated Balance Sheets (Unaudited).
99.2
Consolidated Statements of Cash Flows (Unaudited).
99.2
Consolidated Statements of Shareholders' Equity (Unaudited).
99.3
Ratio of Earnings to Fixed Charges (Unaudited).


4



Exhibit 99.1

CARNIVAL CORPORATION & PLC
SUMMARY IMPACT OF REVISION TO PRIOR PERIOD FINANCIAL INFORMATION

In the first quarter of 2015, we revised and corrected the accounting for one of our brands' marine and technical spare parts in order to consistently expense and classify them fleetwide. We evaluated the materiality of this revision and concluded that it was not material to any of our previously issued financial statements. However, had we not revised, this accounting may have resulted in material inconsistencies to our financial statements in the future.

The effects of this revision on our Consolidated Statements of Income were as follows (in millions, except per share data):

 
Year Ended November 30, 2014
 
As Previously
Reported
 
Adjustment
 
As Revised
Other ship operating
$
2,445

 
$
18

 
$
2,463

Depreciation and amortization
$
1,635

 
$
2

 
$
1,637

Operating income
$
1,792

 
$
(20
)
 
$
1,772

Income before income taxes
$
1,245

 
$
(20
)
 
$
1,225

Net income
$
1,236

 
$
(20
)
 
$
1,216

Earnings per share
 
 
 
 
 
     Basic
$
1.59

 
$
(0.02
)
 
$
1.57

     Diluted
$
1.59

 
$
(0.03
)
 
$
1.56


 
Year Ended November 30, 2013
 
As Previously
Reported
 
Adjustment
 
As Revised
Other ship operating
$
2,589

 
$
21

 
$
2,610

Depreciation and amortization
$
1,588

 
$
2

 
$
1,590

Operating income
$
1,352

 
$
(23
)
 
$
1,329

Income before income taxes
$
1,072

 
$
(23
)
 
$
1,049

Net income
$
1,078

 
$
(23
)
 
$
1,055

Earnings per share
 
 
 
 
 
     Basic
$
1.39

 
$
(0.03
)
 
$
1.36

     Diluted
$
1.39

 
$
(0.03
)
 
$
1.36


 
Year Ended November 30, 2012
 
As Previously
Reported
 
Adjustment
 
As Revised
Other ship operating
$
2,233

 
$
12

 
$
2,245

Depreciation and amortization
$
1,527

 
$
1

 
$
1,528

Operating income
$
1,642

 
$
(13
)
 
$
1,629

Income before income taxes
$
1,302

 
$
(13
)
 
$
1,289

Net income
$
1,298

 
$
(13
)
 
$
1,285

Earnings per share
 
 
 
 
 
     Basic
$
1.67

 
$
(0.01
)
 
$
1.66

     Diluted
$
1.67

 
$
(0.02
)
 
$
1.65







5

Exhibit 99.1

CARNIVAL CORPORATION & PLC
SUMMARY IMPACT OF REVISION TO PRIOR PERIOD FINANCIAL INFORMATION
(CONTINUED)

The effects of this revision on our Consolidated Statements of Comprehensive Income were as follows (in millions):

 
Year Ended November 30, 2014
 
As Previously
Reported
 
Adjustment
 
As Revised
Net income
$
1,236

 
$
(20
)
 
$
1,216

Total comprehensive income
$
459

 
$
(20
)
 
$
439


 
Year Ended November 30, 2013
 
As Previously
Reported
 
Adjustment
 
As Revised
Net income
$
1,078

 
$
(23
)
 
$
1,055

Total comprehensive income
$
1,446

 
$
(23
)
 
$
1,423


 
Year Ended November 30, 2012
 
As Previously
Reported
 
Adjustment
 
As Revised
Net income
$
1,298

 
$
(13
)
 
$
1,285

Total comprehensive income
$
1,300

 
$
(13
)
 
$
1,287



The effects of this revision on our Consolidated Balance Sheets were as follows (in millions):

 
November 30, 2014
 
As Previously
Reported
 
Adjustment
 
As Revised
Inventories
$
364

 
$
(15
)
 
$
349

Total current assets
$
1,503

 
$
(15
)
 
$
1,488

Property and equipment, net
$
32,773

 
$
46

 
$
32,819

Other assets
$
859

 
$
(115
)
 
$
744

Total assets
$
39,532

 
$
(84
)
 
$
39,448

Retained earnings
$
19,242

 
$
(84
)
 
$
19,158

Total shareholders' equity
$
24,288

 
$
(84
)
 
$
24,204

Total liabilities and shareholders' equity
$
39,532

 
$
(84
)
 
$
39,448
















6

Exhibit 99.1


CARNIVAL CORPORATION & PLC
SUMMARY IMPACT OF REVISION TO PRIOR PERIOD FINANCIAL INFORMATION
(CONTINUED)

 
November 30, 2013
 
As Previously
Reported
 
Adjustment
 
As Revised
Inventories
$
374

 
$
(14
)
 
$
360

Total current assets
$
1,937

 
$
(14
)
 
$
1,923

Property and equipment, net
$
32,905

 
$
46

 
$
32,951

Other assets
$
760

 
$
(94
)
 
$
666

Total assets
$
40,104

 
$
(62
)
 
$
40,042

Accrued liabilities
$
1,126

 
$
2

 
$
1,128

Total current liabilities
$
6,720

 
$
2

 
$
6,722

Retained earnings
$
18,782

 
$
(64
)
 
$
18,718

Total shareholders' equity
$
24,556

 
$
(64
)
 
$
24,492

Total liabilities and shareholders' equity
$
40,104

 
$
(62
)
 
$
40,042



This non-cash revision did not impact our operating cash flows for any period. The effects of this revision on the individual line items within operating cash flows on our Consolidated Statements of Cash Flows were as follows (in millions):

 
Year Ended November 30, 2014
 
As Previously
Reported
 
Adjustment
 
As Revised
Net income
$
1,236

 
$
(20
)
 
$
1,216

Depreciation and amortization
$
1,635

 
$
2

 
$
1,637

Inventories
$
1

 
$
—

 
$
1

Insurance recoverables, prepaid expenses and other
$
401

 
$
21

 
$
422

Claims reserves and accrued and other liabilities
$
(379
)
 
$
(3
)
 
$
(382
)

 
Year Ended November 30, 2013
 
As Previously
Reported
 
Adjustment
 
As Revised
Net income
$
1,078

 
$
(23
)
 
$
1,055

Depreciation and amortization
$
1,588

 
$
2

 
$
1,590

Inventories
$
19

 
$
2

 
$
21

Insurance recoverables, prepaid expenses and other
$
402

 
$
22

 
$
424

Claims reserves and accrued and other liabilities
$
(330
)
 
$
(3
)
 
$
(333
)

 
Year Ended November 30, 2012
 
As Previously
Reported
 
Adjustment
 
As Revised
Net income
$
1,298

 
$
(13
)
 
$
1,285

Depreciation and amortization
$
1,527

 
$
1

 
$
1,528

Inventories
$
(16
)
 
$
(1
)
 
$
(17
)
Insurance recoverables, prepaid expenses and other
$
148

 
$
8

 
$
156

Claims reserves and accrued and other liabilities
$
(192
)
 
$
5

 
$
(187
)

7


        
Exhibit 99.2

CARNIVAL CORPORATION & PLC
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(in millions, except per share data)
 
 
Years Ended November 30,
 
2014
 
2013
 
2012
Revenues
 
 
 
 
 
Cruise
 
 
 
 
 
Passenger tickets
$
11,889

 
$
11,648

 
$
11,658

Onboard and other
3,780

 
3,598

 
3,513

Tour and other
215

 
210

 
211

 
15,884

 
15,456

 
15,382

Operating Costs and Expenses
 
 
 
 
 
Cruise
 
 
 
 
 
Commissions, transportation and other
2,299

 
2,303

 
2,292

Onboard and other
519

 
539

 
558

Fuel
2,033

 
2,208

 
2,381

Payroll and related
1,942

 
1,859

 
1,742

Food
1,005

 
983

 
960

Other ship operating
2,463

 
2,610

 
2,245

Tour and other
160

 
143

 
154

 
10,421

 
10,645

 
10,332

Selling and administrative
2,054

 
1,879

 
1,720

Depreciation and amortization
1,637

 
1,590

 
1,528

Ibero goodwill and trademark impairment charges
—

 
13

 
173

 
14,112

 
14,127

 
13,753

Operating Income
1,772

 
1,329

 
1,629

Nonoperating (Expense) Income
 
 
 
 
 
Interest income
8

 
11

 
10

Interest expense, net of capitalized interest
(288
)
 
(319
)
 
(336
)
(Losses) gains on fuel derivatives, net
(271
)
 
36

 
(7
)
Other income (expense), net
4

 
(8
)
 
(7
)
 
(547
)
 
(280
)
 
(340
)
Income Before Income Taxes
1,225

 
1,049

 
1,289

Income Tax (Expense) Benefit, Net
(9
)
 
6

 
(4
)
Net Income
$
1,216

 
$
1,055

 
$
1,285

Earnings Per Share
 
 
 
 
 
Basic
$
1.57

 
$
1.36

 
$
1.66

Diluted
$
1.56

 
$
1.36

 
$
1.65

Dividends Declared Per Share
$
1.00

 
$
1.00

 
$
1.50



8
        
Exhibit 99.2

CARNIVAL CORPORATION & PLC
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)
(in millions)
 
 
Years Ended November 30,
 
2014
 
2013
 
2012
Net Income
$
1,216

 
$
1,055

 
$
1,285

Items Included in Other Comprehensive (Loss) Income
 
 
 
 
 
Change in foreign currency translation adjustment
(746
)
 
332

 
25

Other
(31
)
 
36

 
(23
)
Other Comprehensive (Loss) Income
(777
)
 
368

 
2

Total Comprehensive Income
$
439

 
$
1,423

 
$
1,287




9
        
Exhibit 99.2

CARNIVAL CORPORATION & PLC
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in millions, except par values)
 
 
November 30,
 
November 30,
 
2014
 
2013
ASSETS
 
 
 
Current Assets
 
 
 
Cash and cash equivalents
$
331

 
$
462

Trade and other receivables, net
332

 
405

Insurance recoverables
154

 
381

Inventories
349

 
360

Prepaid expenses and other
322

 
315

Total current assets
1,488

 
1,923

Property and Equipment, Net
32,819

 
32,951

Goodwill
3,127

 
3,210

Other Intangibles
1,270

 
1,292

Other Assets
744

 
666

 
$
39,448

 
$
40,042

LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 
 
Current Liabilities
 
 
 
Short-term borrowings
$
666

 
$
60

Current portion of long-term debt
1,059

 
1,408

Accounts payable
626

 
639

Claims reserve
262

 
456

Accrued liabilities and other
1,276

 
1,128

Customer deposits
3,032

 
3,031

Total current liabilities
6,921

 
6,722

Long-Term Debt
7,363

 
8,092

Other Long-Term Liabilities
960

 
736

Shareholders’ Equity
 
 
 
Common stock of Carnival Corporation, $0.01 par value; 1,960 shares authorized; 652
     shares at 2014 and 651 shares at 2013 issued
7

 
7

Ordinary shares of Carnival plc, $1.66 par value; 216 shares at 2014 and 2013 issued
358

 
358

Additional paid-in capital
8,384

 
8,325

Retained earnings
19,158

 
18,718

Accumulated other comprehensive (loss) income
(616
)
 
161

Treasury stock, 59 shares at 2014 and 2013 of Carnival Corporation and 32 shares at
      2014 and 2013 of Carnival plc, at cost
(3,087
)
 
(3,077
)
Total shareholders’ equity
24,204

 
24,492

 
$
39,448

 
$
40,042




10
        
Exhibit 99.2

CARNIVAL CORPORATION & PLC
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in millions)
 
 
Years Ended November 30,
 
2014
 
2013
 
2012
OPERATING ACTIVITIES
 
 
 
 
 
Net income
$
1,216

 
$
1,055

 
$
1,285

Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization
1,637

 
1,590

 
1,528

Losses on ship sales and ship impairments, net
2

 
163

 
49

Goodwill, trademark and other impairment charges
—

 
27

 
173

Share-based compensation
52

 
42

 
39

Losses (gains) on fuel derivatives, net
271

 
(36
)
 
7

Other, net
35

 
35

 
12

Changes in operating assets and liabilities
 
 
 
 
 
Receivables
75

 
(128
)
 
(15
)
Inventories
1

 
21

 
(17
)
Insurance recoverables, prepaid expenses and other
422

 
424

 
156

Accounts payable
9

 
79

 
(24
)
Claims reserves and accrued and other liabilities
(382
)
 
(333
)
 
(187
)
Customer deposits
92

 
(105
)
 
(7
)
Net cash provided by operating activities
3,430

 
2,834

 
2,999

INVESTING ACTIVITIES
 
 
 
 
 
Additions to property and equipment
(2,583
)
 
(2,149
)
 
(2,332
)
Proceeds from sale of ships
42

 
70

 
46

Insurance proceeds for a ship
—

 
—

 
508

Other, net
34

 
23

 
6

Net cash used in investing activities
(2,507
)
 
(2,056
)
 
(1,772
)
FINANCING ACTIVITIES
 
 
 
 
 
Proceeds from (repayments of) short-term borrowings, net
617

 
4

 
(224
)
Principal repayments of long-term debt
(2,466
)
 
(2,212
)
 
(1,052
)
Proceeds from issuance of long-term debt
1,626

 
2,687

 
946

Dividends paid
(776
)
 
(1,164
)
 
(779
)
Purchases of treasury stock
—

 
(138
)
 
(90
)
Sales of treasury stock
—

 
35

 
—

Other, net
(29
)
 
8

 
9

Net cash used in financing activities
(1,028
)
 
(780
)
 
(1,190
)
Effect of exchange rate changes on cash and cash equivalents
(26
)
 
(1
)
 
(22
)
Net (decrease) increase in cash and cash equivalents
(131
)
 
(3
)
 
15

Cash and cash equivalents at beginning of year
462

 
465

 
450

Cash and cash equivalents at end of year
$
331

 
$
462

 
$
465




11
        
Exhibit 99.2

CARNIVAL CORPORATION & PLC
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
(UNAUDITED)
(in millions)
 
 
Common
stock
 
Ordinary
shares
 
Additional
paid-in
capital
 
Retained
earnings
 
Accumulated
other  comprehensive
(loss) income
 
Treasury
stock
 
Total
shareholders’
equity
Balances at November 30, 2011
$
6

 
$
357

 
$
8,180

 
$
18,321

 
$
(209
)
 
$
(2,851
)
 
$
23,804

Net income
—

 
—

 
—

 
1,285

 
—

 
—

 
1,285

Other comprehensive income
—

 
—

 
—

 
—

 
2

 
—

 
2

Cash dividends declared
—

 
—

 
—

 
(1,168
)
 
—

 
—

 
(1,168
)
Purchases of treasury stock
     under the Repurchase
     Program and other
—

 
—

 
72

 
—

 
—

 
(107
)
 
(35
)
Balances at November 30, 2012
6

 
357

 
8,252

 
18,438

 
(207
)
 
(2,958
)
 
23,888

Net income
—

 
—

 
—

 
1,055

 
—

 
—

 
1,055

Other comprehensive income
—

 
—

 
—

 
—

 
368

 
—

 
368

Cash dividends declared
—

 
—

 
—

 
(775
)
 
—

 
—

 
(775
)
Purchases and sales under the
     Stock Swap program
—

 
—

 
10

 
—

 
—

 
(9
)
 
1

Purchases of treasury stock
     under the Repurchase
     Program and other
1

 
1

 
63

 
—

 
—

 
(110
)
 
(45
)
Balances at November 30, 2013
7

 
358

 
8,325

 
18,718

 
161

 
(3,077
)
 
24,492

Net income
—

 
—

 
—

 
1,216

 
—

 
—

 
1,216

Other comprehensive loss
—

 
—

 
—

 
—

 
(777
)
 
—

 
(777
)
Cash dividends declared
—

 
—

 
—

 
(777
)
 
—

 
—

 
(777
)
Other
—

 
—

 
59

 
1

 
—

 
(10
)
 
50

Balances at November 30, 2014
$
7

 
$
358

 
$
8,384

 
$
19,158

 
$
(616
)
 
$
(3,087
)
 
$
24,204




12



Exhibit 99.3

CARNIVAL CORPORATION & PLC
RATIO OF EARNINGS TO FIXED CHARGES
(UNAUDITED)
(in millions, except ratios)

 
         Years Ended November 30,
 
2014
 
2013
 
2012
 
2011
 
2010
Net income (as previously reported)
$
1,236

 
$
1,078

 
$
1,298

 
$
1,912

 
$
1,978

Effect of revision
(20
)
 
(23
)
 
(13
)
 
—

 
(3
)
Net income (revised)
1,216

 
1,055

 
1,285

 
1,912

 
1,975

Income tax (benefit) expense, net
9

 
(6
)
 
4

 
—

 
1

Income before income taxes
1,225

 
1,049

 
1,289

 
1,912

 
1,976

Fixed charges
 
 
 
 
 
 
 
 
 
   Interest expense, net
288

 
319

 
336

 
365

 
378

   Interest portion of rent expense (a)
21

 
20

 
19

 
20

 
21

   Capitalized interest
21

 
15

 
17

 
21

 
26

Total fixed charges
330

 
354

 
372

 
406

 
425

Fixed charges not affecting earnings
 
 
 
 
 
 
 
 
 
   Capitalized interest
(21
)
 
(15
)
 
(17
)
 
(21
)
 
(26
)
Earnings before fixed charges
$
1,534

 
$
1,388

 
$
1,644

 
$
2,297

 
$
2,375

Ratio of earnings to fixed charges
4.6

 
3.9

 
4.4

 
5.7

 
5.6


(a) Represents one-third of rent expense, which we believe to be representative of the interest portion of rent expense.




13
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