Carnival Cruises 2003 Annual Report Download - page 42

39Carnival Corporation & plc
long-term debt and interest rate swaps at November 30,
2003 was $7.69 billion. Based upon a hypothetical 10%
decrease or increase in the November 30, 2003 market
interest rates, the fair value of our long-term debt and
swaps would increase or decrease by $128 million. In
addition, based upon a hypothetical 10% decrease or
increase in our November 30, 2003 common stock price,
the fair value of our convertible notes would increase
or decrease by approximately $97 million.
These hypothetical amounts are determined by con-
sidering the impact of the hypothetical interest rates
and common stock price on our existing long-term debt
and interest rate swaps. This analysis does not con-
sider the effects of the changes in the level of overall
economic activity that could exist in such environments
or any relationships which may exist between interest
rate and stock price movements. Furthermore, since
substantially all of our fixed rate long-term debt cannot
currently be called or prepaid and some of our variable
rate long-term debt is subject to interest rate swaps
which effectively fix the interest rate, it is unlikely we
would be able to take any significant steps in the short-
term to mitigate our exposure in the unlikely event of a
significant decrease in market interest rates.
Reported GAAP Reconciling Information
Gross and net revenue yields were computed as follows:
(in millions, Years Ended November 30,
except ALBDs and yields) 2003 2002 2001
Cruise revenues
Passenger
tickets . . . . . . . . $ 5,039 $ 3,346 $ 3,530
Onboard
and other. . . . . . 1,420 898 841
Gross cruise
revenues . . . . . . . . 6,459 4,244 4,371
Less cruise costs
Passenger
tickets . . . . . . . . (1,021) (658) (813)
Onboard
and other. . . . . . (229) (116) (116)
Net cruise
revenues . . . . . . . . $ 5,209 $ 3,470 $ 3,442
ALBDs(a) . . . . . . . . . . 33,309,785 21,435,828 20,685,123
Gross revenue
yields(b) . . . . . . . . . $193.91 $198.01 $211.33
Net revenue
yields(c) . . . . . . . . . $156.38 $161.91 $166.44
Gross and net cruise costs per ALBD were com-
puted as follows:
(in millions, except Years Ended November 30,
ALBDs and costs per ALBD) 2003 2002 2001
Cruise operating
expenses . . . . . . . $ 3,624 $ 2,222 $ 2,347
Cruise selling and
administrative
expenses . . . . . . . 896 577 584
Gross cruise costs . . 4,520 2,799 2,931
Less cruise costs
Passenger
tickets . . . . . . . . (1,021) (658) (813)
Onboard
and other. . . . . . (229) (116) (116)
Net cruise costs . . . . $ 3,270 $ 2,025 $ 2,002
ALBDs(a) . . . . . . . . . . 33,309,785 21,435,828 20,685,123
Gross cruise costs
per ALBD(d) . . . . . . $135.69 $130.54 $141.66
Net cruise costs
per ALBD(e) . . . . . . $ 98.16 $ 94.43 $ 96.76
Pro Forma GAAP Reconciling Information
Pro forma gross and net revenue yields, assuming
that the DLC transaction was completed and Carnival
plc was consolidated for the full years noted below,
would have been computed as follows(f):
Years Ended
(in millions, except November 30,
ALBDs and yields) 2003 2002
Cruise revenues
Passenger tickets . . . . . . . . . . . $ 5,732 $ 5,128
Onboard and other . . . . . . . . . . 1,600 1,356
Gross cruise revenues . . . . . . . . . 7,332 6,484
Less cruise costs
Passenger tickets . . . . . . . . . . . (1,227) (1,121)
Onboard and other . . . . . . . . . . (279) (240)
Net cruise revenues . . . . . . . . . . . $ 5,826 $ 5,123
ALBDs(a). . . . . . . . . . . . . . . . . . . . 37,554,709 31,962,000
Gross revenue yields(b) . . . . . . . . . $195.23 $202.85
Net revenue yields(c). . . . . . . . . . . $155.11 $160.25