Carnival Cruises 2010 Annual Report Download - page 45

Download and view the complete annual report

Please find page 45 of the 2010 Carnival Cruises annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 63

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63

Net passenger ticket revenues reflect gross cruise revenues, net of (1) onboard and other revenues,
(2) commissions, transportation and other costs and (3) onboard and other cruise costs. Net onboard and other
revenues reflect gross cruise revenues, net of (1) passenger ticket revenues, (2) commissions, transportation and
other costs and (3) onboard and other cruise costs. Net passenger ticket revenue yields and net onboard and other
revenue yields are computed by dividing net passenger ticket revenues and net onboard and other revenues by
ALBDs.
Net cruise costs per ALBD and net cruise costs excluding fuel per ALBD are the most significant measures we
use to monitor our ability to control our cruise segment costs rather than gross cruise costs per ALBD. We
exclude the same variable costs that are included in the calculation of net cruise revenues to calculate net cruise
costs with and without fuel to avoid duplicating these variable costs in our non-GAAP financial measures.
In addition, because our EAA cruise brands utilize the euro, sterling and Australian dollar to measure their results
and financial condition, the translation of those 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. Accordingly, we also monitor and report our non-GAAP financial measures assuming the
2010 and 2009 periods’ currency exchange rates have remained constant with the 2009 and 2008 periods’ rates,
respectively, or on a “constant dollar basis,” in order to remove the impact of changes in exchange rates on our
non-U.S. dollar cruise operations. We believe that this is a useful measure since it facilitates a comparative view
of the growth of our business in a fluctuating currency exchange rate environment.
There are no specific rules for determining our non-GAAP current and constant dollar financial measures and,
accordingly, it is possible that they may not be exactly comparable to the like-kind information presented by
other cruise companies, which is a potential risk associated with using these measures to compare us to other
cruise companies.
44