Carnival Cruises 2012 Annual Report Download - page 104

Table of Contents
The remaining 24% of 2012 total revenues were substantially all comprised of onboard and other cruise revenues, which increased by $156 million, or 4.6%,
to $3.5 billion in 2012 from $3.4 billion in 2011. This increase was caused by our 2.9% capacity increase in ALBDs, which accounted for $96 million,
higher onboard spending by our guests, which accounted for $51 million, and the change in the accounting for our North America cruise brands and Tour
and Other segments (See “Note 12 – Segment Information” in the accompanying consolidated financial statements for a further discussion). These increases
were partially offset by the net currency impact, which accounted for $58 million, and a slight decrease in occupancy percentage, which accounted for $23
million. Onboard and other revenues included concession revenues of $1.1 billion in 2012, which were flat compared to 2011.
North America Brands
Cruise passenger ticket revenues made up 74% of our 2012 total revenues. Cruise passenger ticket revenues increased by $123 million, or 1.8%, to $6.9
billion in 2012 from $6.8 billion in 2011. This increase was caused by our 3.4% capacity increase in ALBDs, which accounted for $229 million, partially
offset by a decrease in cruise ticket pricing, which accounted for $59 million, and a decrease in air transportation revenues from guests who purchased their
tickets from us, which accounted for $39 million. Our cruise ticket pricing was affected by the indirect consequences of the ship incident.
The remaining 26% of 2012 total revenues were comprised of onboard and other cruise revenues, which increased $214 million, or 9.9%, to $2.4 billion in
2012 from $2.2 billion in 2011. This increase was substantially due to our 3.4% capacity increase in ALBDs, which accounted for $73 million, higher
onboard spending by our guests, which accounted for $42 million, and the change in the accounting for our North America cruise brands and Tour and Other
segments. Onboard and other revenues included concession revenues of $727 million in 2012 and $681 million in 2011.
EAA Brands
Cruise passenger ticket revenues made up 82% of our 2012 total revenues. Cruise passenger ticket revenues decreased by $621 million, or 11%, to $4.8
billion in 2012 from $5.4 billion in 2011. This decrease was caused by a decrease in cruise ticket pricing, which accounted for $354 million, the net
currency impact, which accounted for $282 million, and a 2.1 percentage point decrease in occupancy, which accounted for $110 million, partially offset by
our 2.0% capacity increase in ALBDs, which also accounted for $110 million. Our cruise ticket pricing and occupancy were affected by the direct and
indirect consequences of the ship incident and the challenging economic environment in Europe.
The remaining 18% of 2012 total revenues were comprised of onboard and other cruise revenues, which decreased $56 million, or 5.1%, to $1.0 billion in
2012 from $1.1 billion in 2011. This decrease was caused by the net currency impact, which accounted for $58 million, and a 2.1 percentage point decrease
in occupancy, which accounted for $23 million, partially offset by our 2.0% capacity increase in ALBDs, which also accounted for $23 million. Onboard
and other revenues included concession revenues of $356 million in 2012 and $397 million in 2011.
Costs and Expenses
Consolidated
Operating costs and expenses of $10.3 billion in 2012 were flat compared to 2011. Operating costs and expenses in 2012 increased due to our 2.9% capacity
increase in ALBDs, which accounted for $289 million, and higher fuel prices, which accounted for $214 million. These increases were offset by the net
currency impact, which accounted for $172 million, a decrease in commissions, transportation and other costs primarily as a result of our lower cruise ticket
pricing, the change in our UK brands’ commission structure and a decrease in air transportation costs related to guests who purchased their tickets from us,
which together accounted for $158 million, lower fuel consumption per ALBD, which accounted for $89 million, and a slight decrease in occupancy
percentage, which accounted for $27 million. In addition, operating costs and expenses in 2012 increased as a result of Costa Allegra’s impairment charge
and incident-related expenses, which together accounted for $51 million, and the ship incident-related expenses that were not covered by insurance, which
accounted for $28 million, partially offset by Costa’s excess insurance proceeds and a gain from Cunard’s litigation settlement, which together accounted for
$34 million, and the nonrecurrence in 2012 of $28 million of ship impairment charges recognized in 2011 related to the sale of Costa Marina and Pacific Sun
(the net impact of these changes in operating costs and expenses are referred to as “the other net charges related to our EAA brands,” which combined
accounted for $17 million).
Selling and administrative expenses of $1.7 billion in 2012 were flat compared to 2011.
Depreciation and amortization expenses of $1.5 billion in 2012 were flat compared to 2011.
Ibero goodwill and trademark impairment charges of $173 million were recorded in 2012. See “Note 11 - Fair Value Measurements, Derivative Instruments
and Hedging Activities” in the accompanying consolidated financial statements for additional discussion of these impairment charges.
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