Carnival Cruises 2006 Annual Report Download - page 43
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Nonoperating(Expense)Income
Netinterestexpense,excludingcapitalizedinterest,was
$323millioninboth2006and2005.Thisflatinterestexpense
wasprimarilyduetoloweraverageborrowingsoffsetting
theimpactofhigheraverageinterestratesonborrowings.
Capitalizedinterestincreased$16millionduring2006com-
paredto2005primarilyduetohigheraveragelevelsofinvest-
mentinshipconstructionprojectsandhigheraverageinterest
ratesonborrowings.
Otherexpensein2006includeda$10millionexpensefor
thewrite-downofanon-cruiseinvestment.
IncomeTaxes
Incometaxexpensedecreasedby$33millionto$39million
in2006from$72millionin2005primarilyasaresultoflower
U.S.incometaxesrelatedtotheMSCcharterin2006com-
paredto2005,andthereversalin2006ofpreviouslyrecorded
taxliabilitiesanddeferredtaxvaluationallowances,whichwere
nolongerrequiredbasedupontheresultsoftaxauthority
auditsandotherfactors.
Fiscal2005(“2005”)ComparedtoFiscal2004(“2004”)
Revenues
Netcruiserevenuesincreased$1.18billion,or15.8%,to
$8.68billionin2005from$7.50billionin2004.The8.5%
increaseinALBDsbetween2005and2004accountedfor
$638millionoftheincrease,andtheremaining$546million
wasfromincreasednetrevenueyields,whichincreased6.7%
in2005comparedto2004(grossrevenueyieldsincreasedby
5.0%).Netrevenueyieldsincreasedin2005primarilyfrom
highercruiseticketprices,a1.1%increaseinoccupancyand
higheronboardrevenues.Netrevenueyieldsasmeasuredon
aconstantdollarbasisincreased6.4%in2005.Grosscruise
revenuesincreased$1.31billion,or13.9%,in2005to$10.74
billionfrom$9.43billionin2004forlargelythesamereasons
asnetcruiserevenues.
Onboardandotherrevenuesincludedconcessionrevenues
of$638millionin2005and$561millionin2004.Onboard
andotherrevenuesincreasedin2005comparedto2004,pri-
marilybecauseofthe8.5%increaseinALBDsandincreased
passengerspendingonourships.
Othernon-cruiserevenuesincreased$63million,or15.8%,
to$461millionin2005from$398millionin2004primarilydue
totheincreaseinthenumberofcruise/tourssoldinAlaska.
CostsandExpenses
Netcruisecostsincreased$604million,or13.2%,to
$5.20billionin2005from$4.59billionin2004.The8.5%
increaseinALBDsbetween2004and2005accountedfor
$391millionoftheincrease,andtheremaining$213million
wasfromincreasednetcruisecostsperALBD,which
increased4.3%in2005comparedto2004(grosscruise
costsperALBDincreased2.5%).NetcruisecostsperALBD
increasedprimarilyduetoa$65increaseinfuelcostper
metricton,or33.5%,to$259permetrictonin2005anda
$23millionMNOPFcontribution(seeNote12intheaccom-
panyingfinancialstatements).NetcruisecostsperALBD
asmeasuredonaconstantdollarbasiscomparedto2004
increased3.9%in2005andwereflatexcludingincreased
fuelpricesandtheMNOPFcontribution,comparedto2004.
Grosscruisecostsincreased$730million,or11.2%,in2005
to$7.25billionfrom$6.52billionin2004,whichwasalower
percentageincreasethannetcruisecostsprimarilybecause
ofthelowerproportionofpassengerswhopurchasedair
transportationfromusin2005.