Carnival Cruises 2015 Annual Report Download - page 69

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These decreases were partially offset by:
– $271 million – 4.3% capacity increase in ALBDs;
– $39 million – nonrecurrence in 2014 of an intersegment transaction, which was fully offset in our Cruise
Support segment and
– $72 million – various other operating expenses, net.
Our total costs and expenses as a percentage of revenues decreased to 89% in 2014 from 90% in 2013.
EAA Brands
Operating costs and expenses decreased by $223 million, or 5.4%, to $3.9 billion in 2014 from $4.1 billion in
2013.
This decrease was caused by:
– $176 million – nonrecurrence in 2014 of impairment charges related to Costa Classica and Costa Voyager;
– $51 million – lower fuel consumption per ALBD;
– $41 million – lower fuel prices;
– $39 million – lower dry-dock and other ship repair and maintenance expenses;
– $37 million – gain from the sale of Costa Voyager and
– $37 million – various other operating expenses, net.
These decreases were partially offset by:
– $59 million – 2014 net foreign currency translational impact;
– $53 million – impairment charges related to Grand Celebration and Grand Holiday and
– $46 million – increases in commissions, transportation and other related expenses principally due to an
increase in air transportation costs related to guests who purchased their tickets from us.
Our total costs and expenses as a percentage of revenues decreased to 86% in 2014 from 92% in 2013.
Operating Income
Our consolidated operating income increased by $443 million, or 33%, to $1.8 billion in 2014 from $1.3 billion
in 2013. Our North America brands’ operating income increased by $108 million, or 12%, to $1.0 billion in 2014
from $933 million in 2013, and our EAA brands’ operating income increased by $422 million, or 90%, to $893
million in 2014 from $471 million in 2013. These changes were primarily due to the reasons discussed above.
Nonoperating Expense
Net interest expense decreased by $31 million, or 9.7%, to $288 million in 2014 from $319 million in 2013.
(Losses) gains on fuel derivatives, net were comprised of the following (in millions):
Year Ended November 30,
2014 2013
Unrealized (losses) gains on fuel derivatives, net ................................ $(268) $36
Realized losses on fuel derivatives, net ....................................... (3) -
(Losses) gains on fuel derivatives, net ........................................ $(271) $36
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