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•	Incidents, such as ship incidents, security incidents, the spread of contagious diseases and threats thereof, adverse weather conditions or other natural disasters and the related adverse publicity affecting our reputation and the health, safety, security and satisfaction of guests and crew;

•	Economic conditions and adverse world events affecting the safety and security of travel, such as civil unrest, armed conflicts and terrorist attacks;

•	Changes in and compliance with laws and regulations relating to environment, health, safety, security, tax and anti-corruption under which we operate;

•	Disruptions and other damages to our information technology and other networks and operations, and breaches in data security;

•	Ability to recruit, develop and retain qualified personnel;

•	Increases in fuel prices;

•	Fluctuations in foreign currency exchange rates;

•	Misallocation of capital among our ship, joint venture and other strategic investments;

•	Future operating cash flow may not be sufficient to fund future obligations and we may be unable to obtain financing;

•	Deterioration of our cruise brands' strengths and our inability to implement our strategies;

•	Continuing financial viability of our travel agent distribution system, air service providers and other key vendors in our supply chain and reductions in the availability of, and increases in the prices for, the services and products provided by these vendors;

•	Inability to implement our shipbuilding programs and ship repairs, maintenance and refurbishments on terms that are favorable or consistent with our expectations and increases to our repairs and maintenance expenses and refurbishment costs as our fleet ages;

•	Failure to keep pace with developments in technology;

•	Geographic regions in which we try to expand our business may be slow to develop and ultimately not develop how we expect and our international operations are subject to additional risks not generally applicable to our U.S. operations;

•	Competition from and overcapacity in the cruise ship and land-based vacation industry;

•	Economic, market and political factors that are beyond our control, which could increase our operating, financing and other costs;

•	Changes in global consumer confidence and impacts to various foreign currency exchange rates as a result of the June 24, 2016 UK electorate vote to withdraw from the European Union (“EU”);

•	Friction in travel, changes to international tax treaties and changes to laws and regulations that could result from the exit of the UK from the EU;

•	Litigation, enforcement actions, fines or penalties;

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•	Lack of continuing availability of attractive, convenient and safe port destinations on terms that are favorable or consistent with our expectations;

•	Union disputes and other employee relationship issues;

•	Decisions to self-insure against various risks or the inability to obtain insurance for certain risks at reasonable rates;

•	Reliance on third-party providers of various services integral to the operations of our business;

•	Business activities that involve our co-investment with third parties;

•	Disruptions in the global financial markets or other events that may negatively affect the ability of our counterparties and others to perform their obligations to us;

•	Our shareholders may be subject to the uncertainties of a foreign legal system since Carnival Corporation and Carnival plc are not U.S. corporations;

•	Small group of shareholders may be able to effectively control the outcome of shareholder voting;

•	Provisions in Carnival Corporation’s and Carnival plc’s constitutional documents may prevent or discourage takeovers and business combinations that our shareholders might consider to be in their best interests and

•	The DLC arrangement involves risks not associated with the more common ways of combining the operations of two companies.

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(a)

ALBD is a standard measure of passenger capacity for the period that we use to approximate rate and capacity variances, based on consistently applied formulas that we use to perform analyses to determine the main non-capacity driven factors that cause our cruise revenues and expenses to vary. ALBDs assume that each cabin we offer for sale accommodates two passengers and is computed by multiplying passenger capacity by revenue-producing ship operating days in the period.

(b)	For the three months ended August 31, 2016 compared to the three months ended August 31, 2015, we had a 3.9% capacity increase in ALBDs comprised of a 6.4% capacity increase in our EAA segment and a 2.3% capacity increase in our North America segment.

•	full quarter impact from one AIDA 3,286-passenger capacity ship delivered in 2016;

•	full quarter impact from the transfer of two Holland America Line 1,260-passenger capacity ships to P&O Cruises (Australia) in 2015.

•	full quarter impact from one Carnival Cruise Line 3,934-passenger capacity ship delivered in 2016;

•	full quarter impact from one Holland America Line 2,650-passenger capacity ship delivered in 2016, partially offset by

•	full quarter impact from the transfer of two Holland America Line 1,260-passenger capacity ships to P&O Cruises (Australia) in 2015.

•	full period impact from the transfer of two Holland America Line 1,260-passenger capacity ships to P&O Cruises

•	partial period impact from one AIDA 3,286-passenger capacity ship delivered in 2016;

•	partial period impact from one P&O Cruises (UK) 3,647-passenger capacity ship delivered in 2015 and

•	fewer ship dry-dock days in 2016 compared to 2015.

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•	partial period impact from one Carnival Cruise Line 3,934-passenger capacity ship delivered in 2016;

•	partial period impact from one Holland America Line 2,650-passenger capacity ship delivered in 2016, partially offset by

•	full period impact from the transfer of two Holland America Line 1,260-passenger capacity ships to P&O Cruises (Australia) in 2015.

(c)	In accordance with cruise industry practice, occupancy is calculated using a denominator of ALBDs, which assumes two passengers per cabin even though some cabins can accommodate three or more passengers. Percentages in excess of 100% indicate that on average more than two passengers occupied some cabins.

•	$143 million - 3.9% capacity increase in ALBDs;

•	$38 million - an accounting reclassification in our EAA segment, which has no impact on our operating income as the increase in passenger ticket revenues is fully offset by an increase in operating expenses (“accounting reclassification”);

•	$28 million - increase in air transportation revenues from guests who purchased their tickets from us;

•	$17 million - increase in cruise ticket prices, driven primarily by improvements in our Caribbean and Alaskan programs for our North America segment and European programs for our EAA segment, partially offset by yield reductions in Asia and Australia deployments and unfavorable foreign currency transactional movements and

•	$16 million - a slight increase in occupancy.

•	$52 million - 2.3% capacity increase in ALBDs;

•	$39 million - increase in air transportation revenues from guests who purchased their tickets from us;

•	$30 million - increase in cruise ticket pricing, partially offset by unfavorable foreign currency transactional impacts and

•	$12 million - a slight increase in occupancy.

•	$18 million - 2.3% capacity increase in ALBDs and

•	$13 million - higher onboard spending by our guests.

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•	$90 million - 6.4% capacity increase in ALBDs and

•	$38 million - the accounting reclassification.

•	$62 million - foreign currency translational impact;

•	$19 million - decrease in cruise ticket pricing driven by unfavorable foreign currency transactional impacts and

•	$12 million - decrease in air transportation revenues from guests who purchased their tickets from us.

•	$95 million - 3.9% capacity increase in ALBDs;

•	$40 million - higher dry-dock expenses and other ship repair and maintenance expenses;

•	$38 million - the accounting reclassification and

•	$26 million - higher air costs.

•	$83 million - lower fuel prices;

•	$33 million - foreign currency translational impact and

•	$11 million - lower fuel consumption.

•	$33 million - various selling and administrative initiatives and

•	$19 million - 3.9% capacity increase in ALBDs.

•	$36 million - 2.3% capacity increase in ALBDs;

•	$36 million - higher air costs and

•	$25 million - higher ship repair and maintenance expenses.

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•	$55 million - 6.4% capacity increase in ALBDs;

•	$38 million - the accounting reclassification;

•	$24 million - higher dry-dock expenses and other ship repair and maintenance expenses and

•	$11 million - quarterly timing of various other operating expenses, net.

•	$33 million - lower fuel prices;

•	$33 million - foreign currency translational impact and

•	$11 million - lower air costs.

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•	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 America 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.

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•

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.

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•	$156 million - 3.9% capacity increase in ALBDs and

•	$111 million - 2.7% increase in constant currency net revenue yields.

•	$101 million - 5.5% increase in constant currency net cruise costs excluding fuel and

•	$69 million - 3.9% capacity increase in ALBDs.

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•	$83 million - lower fuel prices and

•	$11 million - lower fuel consumption.

•	$288 million - 3.2% capacity increase in ALBDs;

•	$101 million - the accounting reclassification and

•	$79 million - slight increase in occupancy.

•	$95 million - 3.2% capacity increase in ALBDs;

•	$39 million - higher onboard spending by our guests and

•	$26 million - slight increase in occupancy.

•	$56 million - increase in cruise ticket pricing, partially offset by unfavorable foreign currency transactional impacts;

•	$51 million - 1.0 percentage point increase in occupancy and

•	$48 million - increase in air transportation revenues from guests who purchased their tickets from us.

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•	$276 million - 7.9% capacity increase in ALBDs;

•	$101 million - the accounting reclassification and

•	$36 million - 1.0 percentage point increase in occupancy.

•	$145 million - foreign currency translational impact;

•	$76 million - decrease in cruise ticket pricing, driven by unfavorable foreign currency impacts and

•	$46 million - decrease in air transportation revenues from guests who purchased their tickets from us.

•	$363 million - lower fuel prices;

•	$95 million - foreign currency translational impact and

•	$60 million - lower dry-dock expenses.

•	$230 million - 3.2% capacity increase in ALBDs;

•	$101 million - the accounting reclassification and

•	$25 million - slight increase in occupancy.

•	$80 million - various selling and administrative initiatives and

•	$49 million - 3.2% capacity increase in ALBDs.

•	$226 million - lower fuel prices and

•	$25 million - lower dry-dock expenses.

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•	$136 million - lower fuel prices;

•	$95 million - foreign currency translational impact;

•	$55 million - decrease in air transportation costs related to guests who purchased their tickets from us and

•	$33 million - lower dry-dock expenses.

•	$209 million - 7.9% capacity increase in ALBDs and

•	$101 million - the accounting reclassification.

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•	$390 million - 3.9% increase in constant currency net revenue yields and

•	$316 million - 3.2% capacity increase in ALBDs.

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•	Our expenditures for capital projects, of which $1.5 billion was spent on our ongoing new shipbuilding program, substantially for AIDAprima, net of liquidated damages, and Holland America Line's Koningsdam and Carnival Vista;

•	Capital expenditures of $657 million for ship improvements and replacements;

•	Capital expenditures of $257 million for information technology, buildings and improvements and other assets;

•	Payment of $231 million of fuel derivative settlements and

•	Payment of $22 million of collateral to one of our fuel derivative counterparties.

•	Our expenditures for capital projects, of which $728 million was spent on our ongoing new shipbuilding program, primarily for P&O Cruises (UK)'s Britannia;

•	Capital expenditures of $790 million for ship improvements and replacements;

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•	Capital expenditures of $187 million for information technology, buildings and improvements and other assets;

•	Cash installments of $25 million from the sales of Ocean Princess, Seabourn Legend and Seabourn Spirit and

•	$139 million of fuel derivative settlements.

•	borrowed $301 million of short-term borrowings, net of repayments, in connection with our availability of, and needs for, cash at various times throughout the period;

•	repaid $971 million of long-term debt;

•	issued $555 million of euro-denominated publicly-traded notes, which net proceeds were used for general corporate purposes;

•	borrowed $379 million of long-term debt under an export credit facility;

•	borrowed $110 million of long-term debt under euro-denominated bank loans;

•	paid cash dividends of $721 million;

•	purchased $2.1 billion of shares of Carnival Corporation common stock in open market transactions of which $2.1 billion were repurchased under our Repurchase Program and $39 million were repurchased under our Stock Swap and

•	sold $40 million of treasury stock under our Stock Swap program.

•	repaid a net $625 million of short-term borrowings in connection with our availability of, and needs for, cash at various times throughout the period;

•	repaid $772 million of long-term debt;

•	borrowed $472 million of long-term debt under an export credit facility;

•	paid cash dividends of $584 million;

•	purchased $166 million shares of Carnival Corporation common stock in open market transactions under our Stock Swap and Repurchase Programs and

•	sold $167 million of treasury stock under our Stock Swap program.

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