Carnival Cruises 2013 Annual Report Download - page 100

Table of Contents
The remaining 19% of 2013 total revenues were comprised of onboard and other cruise revenues, which increased $45 million, or 4.3% to $1.1 billion in 2013
from $1.0 billion in 2012. This increase was principally due to our 3.4% capacity increase in ALBDs, which accounted for $36 million. Onboard and other
revenues included concession revenues of $370 million in 2013 and $356 million in 2012.
Costs and Expenses
Consolidated
Operating costs and expenses increased $304 million, or 2.9%, to $10.6 billion in 2013 from $10.3 billion in 2012.
This increase was caused by:
• $291 million – 2.9% capacity increase in ALBDs;
• $176 million – impairment charges related to two smaller Costa ships;
• $56 million – additional costs and expenses related to the 2013 Carnival Triumph voyage disruptions, net of third-party insurance recoverables of $20
million;
• $46 million – 2013 net currency impact;
• $46 million – additional ship repair and maintenance expenses;
• $34 million – nonrecurrence in 2013 of Costa’s hull and machinery insurance proceeds for the total loss of a ship in excess of its net book value and a
gain from a Cunard litigation settlement (“Costa’s excess insurance proceeds and Cunard’s litigation settlement”);
• $20 million – higher insurance premiums;
• $15 million – special expense assessment from the MNOPF and
• $14 million – new market development initiative costs.
These increases were partially offset by:
• $131 million – lower fuel consumption per ALBD;
• $111 million – lower fuel prices;
• $65 million – decreases in commissions, transportation and other related expenses driven by lower cruise ticket pricing, partially offset by increases in
air transportation costs related to guests who purchased their tickets from us;
• $34 million – nonrecurrence in 2013 of the 2012 Costa Allegra ship impairment charge;
• $29 million – nonrecurrence in 2013 of the 2012 Ship Incident related expenses and
• $24 million – various other operating expenses, net.
Selling and administrative expenses increased $159 million, or 9.2%, to $1.9 billion in 2013 from $1.7 billion in 2012.
Depreciation and amortization expenses increased $61 million, or 4.0%, to $1.6 billion in 2013 from $1.5 billion in 2012.
In 2013, a $13 million impairment charge was recorded for Ibero’s trademarks. In 2012, $173 million of impairment charges were recorded for Ibero’s
goodwill and trademarks. See Note 10 – “Fair Value Measurements, Derivative Instruments and Hedging Activities” in the accompanying consolidated
financial statements for additional discussion of these impairment charges.
Our total costs and expenses as a percentage of revenues increased to 91% in 2013 from 89% in 2012.
North America Brands
Operating costs and expenses increased $179 million, or 2.9%, to $6.3 billion in 2013 from $6.1 billion in 2012.
This increase was caused by:
• $154 million – 2.5% capacity increase in ALBDs;
• $63 million – additional ship repair and maintenance expenses;
• $56 million – additional costs and expenses related to the 2013 Carnival Triumph voyage disruptions, net of third-party insurance recoverables of $20
million;
• $23 million – increases in commissions, transportation and other related expenses driven by increases in air transportation costs related to guests who
purchased their tickets from us, partially offset by the impact of lower cruise ticket pricing;
• $14 million – new market development initiative costs and
• $45 million – various other operating expenses, net.
These increases were partially offset by:
• $58 million – lower fuel consumption per ALBD;
• $53 million – lower fuel prices;
• $39 million – intersegment transaction, which was fully offset in our Cruise Support segment and
• $26 million – slight decrease in occupancy.
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