Carnival Cruises 2010 Annual Report Download - page 49

North America Brands
Operating costs and expenses decreased $566 million, or 10.3%, to $4.9 billion in 2009 from $5.5 billion in
2008. This decrease was primarily due to lower fuel prices, which accounted for $409 million, decreased
commissions as a result of our lower ticket revenues and lower fuel consumption, as a result of fuel saving
initiatives compared to 2008. This decrease was partially offset by our 3.9% capacity increase in ALBDs, which
accounted for $213 million.
Selling and administrative expenses decreased $9 million, or 1.0%, to $896 million in 2009 from $905 million in
2008. The decrease was primarily caused by the impact of cost containment initiatives, partially offset by our
3.9% capacity increase in ALBDs, which accounted for $35 million.
Depreciation and amortization expense increased $68 million, or 9.4%, to $791 million in 2009 from $723
million in 2008, caused by $28 million from our 3.9% capacity increase in ALBDs through the addition of new
ships, and additional ship and other improvement expenditures.
Our total costs and expenses as a percentage of revenues increased to 84.8% in 2009 from 81.4% in 2008.
EAA Brands
Operating costs and expenses decreased $288 million, or 8.2%, to $3.2 billion in 2009 from $3.5 billion in
2008. This decrease was primarily due to lower fuel prices, which accounted for $212 million, the impact of the
stronger U.S. dollar against the euro, sterling and Australian dollar, decreased commissions as a result of our
lower ticket revenues and lower fuel consumption, resulting from fuel saving initiatives. This decrease was
partially offset by our 8.2% capacity increase in ALBDs, which accounted for $288 million.
Selling and administrative expenses decreased $39 million, or 6.4%, to $573 million in 2009 from $612 million
in 2008. The decrease was primarily caused by the stronger U.S. dollar against the euro, sterling and Australian
dollar and the impact of cost containment initiatives, partially offset by our 8.2% capacity increase in ALBDs,
which accounted for $50 million.
Depreciation and amortization expense decreased $4 million to $458 million in 2009 from $462 million in 2008.
This decrease was caused by a stronger U.S. dollar against the euro, sterling and Australian dollar compared to
2008, which accounted for $52 million and disposals, partially offset by our 8.2% capacity increase in ALBDs.
Our total costs and expenses as a percentage of revenues increased to 80.4% in 2009 from 80.1% in 2008.
Operating Income
Our consolidated operating income decreased $575 million, or 21.1% to $2.2 billion in 2009 from $2.7 billion in
2008. Our North America brands’ operating income decreased $444 million, or 27.3%, to $1.2 billion in 2009
from $1.6 billion in 2008, and our EAA brands’ operating income decreased $102 million, or 9.0%, to $1.0
billion in 2009 from $1.1 billion in 2008. These increases were primarily due to the reasons discussed above.
Key Performance Non-GAAP Financial Indicators
Net cruise revenues decreased $1.0 billion, or 8.9%, to $10.5 billion in 2009 from $11.5 billion in 2008. This was
caused by a 9.8% decrease in constant dollar net revenue yields, which accounted for $1.2 billion and the impact
of a stronger U.S. dollar against the euro, sterling and Australian dollar, which accounted for $462 million (gross
revenue yields decreased by 14.1%). This decrease was partially offset by our 5.4% capacity increase in ALBDs,
which accounted for $618 million. The 9.8% decrease in net revenue yields on a constant dollar basis was
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