Carnival Cruises 2015 Annual Report Download - page 62

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Our foreign currency transactional impact is more significant to our 2015 results compared to 2014 and 2013
given the continuing expansion of our global business and the heightened volatility in foreign currency exchange
rates. This differed from previous years when our constant dollar reporting removed substantially all of the
impact of changes in currency exchange rates between periods. Accordingly, we also reported on a constant
currency basis beginning in 2015. See “Quantitative and Qualitative Disclosures About Market Risk” for a
further discussion of the 2016 impact of currency exchange rate changes.
Under U.S. GAAP, the realized and unrealized gains and losses on fuel derivatives not qualifying as fuel hedges
are recognized currently in earnings. We believe that unrealized gains and losses on fuel derivatives are not an
indication of our earnings performance since they relate to future periods and may not ultimately be realized in
our future earnings. Therefore, we believe it is more meaningful for the unrealized gains and losses on fuel
derivatives to be excluded from our net income and earnings per share and, accordingly, we present adjusted net
income and adjusted earnings per share excluding these unrealized gains and losses.
We have excluded from our earnings guidance the impact of unrealized gains and losses on fuel derivatives
because we do not believe they are an indication of our future earnings performance. Accordingly, our earnings
guidance is presented on an adjusted basis only. As a result, management has not provided a reconciliation
between forecasted adjusted earnings per share guidance and forecasted U.S. GAAP earnings per share guidance
because it would be too difficult to prepare a reliable U.S. GAAP quantitative reconciliation without
unreasonable effort. However, we do forecast realized gains and losses on fuel derivatives by applying current
Brent prices to the derivatives that settle in the forecast period.
Our consolidated financial statements are prepared in accordance with U.S. GAAP. The presentation of our non-
GAAP financial information is not intended to be considered in isolation from, as substitute for, or superior to the
financial information prepared in accordance with U.S. GAAP. There are no specific rules for determining our
non-GAAP as reported, constant dollar and constant currency financial measures and, accordingly, they are
susceptible to varying calculations, and it is possible that they may not be exactly comparable to the like-kind
information presented by other companies, which is a potential risk associated with using these measures to
compare us to other companies.
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