REG-Carnival PLC: Carnival Corp & plc Second Quarter Results <Origin Href="QuoteRef">CCL.L</Origin> - Part 2

CarnivalAnnouncement

22/06/2017 14:20

- Part 2: For the preceding part double click  ID:nPRrM49E6a 

to foreign
currency transactional risk.

We report net revenue yields, net passenger revenue yields, net onboard and
other revenue yields and net cruise costs excluding fuel per ALBD on a
“constant dollar” and “constant currency” basis assuming the 2017
periods’ currency exchange rates have remained constant with the 2016
periods’ rates. These metrics facilitate a comparative view for the changes
in our business in an environment with fluctuating exchange rates.

Constant dollar reporting is a non-GAAP financial measure that removes only
the impact of changes in exchange rates on the translation of our EAA segment
and Cruise Support segment operations.

Constant currency reporting is a non-GAAP financial measure that removes the
impact of changes in exchange rates on the translation of our EAA segment and
Cruise Support segment operations (as in constant dollar) plus the
transactional impact of changes in exchange rates from revenues and expenses
that are denominated in a currency other than the functional currency for our
North America, EAA and Cruise Support segments.

Examples:

• The translation of our EAA segment operations to our U.S. dollar reporting
currency results in decreases in reported U.S. dollar revenues and expenses if
the U.S. dollar strengthens against these foreign currencies and increases in
reported U.S. dollar revenues and expenses if the U.S. dollar weakens against
these foreign currencies.

• Our North American segment operations have a U.S. dollar functional
currency but also have revenue and expense transactions in currencies other
than the U.S. dollar. If the U.S. dollar strengthens against these other
currencies, it reduces the U.S. dollar revenues and expenses. If the U.S.
dollar weakens against these other currencies, it increases the U.S. dollar
revenues and expenses.       

• Our EAA segment operations have euro, sterling and Australian dollar
functional currencies but also have revenue and expense transactions in
currencies other than their functional currency. If their functional currency
strengthens against these other currencies, it reduces the functional currency
revenues and expenses. If the functional currency weakens against these other
currencies, it increases the functional currency revenues and expenses.

b.  Under U.S. GAAP, the realized and unrealized gains and losses on fuel
derivatives not qualifying as fuel hedges are recognized currently in
earnings. We believe that unrealized gains and losses on fuel derivatives are
not an indication of our earnings performance since they relate to future
periods and may not ultimately be realized in our future earnings. Therefore,
we believe it is more meaningful for the unrealized gains and losses on fuel
derivatives to be excluded from our net income and earnings per share and,
accordingly, we present adjusted net income and adjusted earnings per share
excluding these unrealized gains and losses.

c.  We believe that gains and losses on ship sales and ship impairments and
restructuring and other expenses are not part of our core operating business
and are not an indication of our future earnings performance. Therefore, we
believe it is more meaningful for gains and losses on ship sales and ship
impairments and restructuring and other non-core gains and charges to be
excluded from our net income and earnings per share and, accordingly, we
present adjusted net income and adjusted earnings per share excluding these
items.



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