Caribbean Utilities Company, Ltd.  2011  Annual Report Management’s Discussion and Analysis 14 Other Income and Expenses Under the T&D Licence there  is a provision for an AFUDC. This  capitalisation of the ‘Financing  Cost’ is calculated by multiplying  the Company’s Cost of Capital rate  by the average work in progress for  each month. The cost of capital rate  for 2011 was 8.75% as agreed with  the ERA in accordance with the T&D  Licence and will be reviewed annually.  United States (“US”) dollars at the  exchange rate prevailing on the  Balance Sheet date. Revenue and  expense items denominated in foreign  currencies are translated into US  dollars at the exchange rate prevailing  on the transaction date. Foreign  exchange gains totalled $2.1 million  for Fiscal 2011 a $0.3 million or 17%  increase when compared to $1.8  million for Fiscal 2010. Other income is comprised of pole  rental fees, income from pipeline  operations, sales of meter sockets,  sale of recyclable metals and other  miscellaneous income. Other income  totalled $1.9 million for Fiscal 2011,  a $0.6 million or 44% increase from  $1.3 million for Fiscal 2010. Other  Income for Fiscal 2011 includes  billing adjustments for commercial  The AFUDC amount for Fiscal 2011  totalled $3.7 million a $0.7 million  increase when compared to $3.0  million for Fiscal 2010. This increase  is attributable to increased capital  expenditure. Foreign exchange gains and losses  are the result of monetary assets and  liabilities denominated in foreign  currencies that are translated into  Tourist Arrivals to the Cayman Islands Key Indicators for the Financial Services Industry Twelve Twelve  Change  Change  months ended months ended  % December 31, 2011 December 31, 2010  Total interest costs  (12,332) (12,122)  (210)  2% AFUDC  3,673 2,979  694  23% Total finance charges  (8,659) (9,143)  484  (5%) Foreign exchange gains  2,125 1,785  340  19% Other income  1,907 1,323  584  44% Total net other expenses  (4,627) (6,035)  1,408  (23%) 2011 2010 2009 2008 2007 By air 309,091 288,272  271,958  302,879  291,503 By sea  1,401,495 1,597,838  1,520,372  1,553,053  1,715,666 Total  1,710,586 1,886,110  1,792,330  1,855,932  2,007,169  As at  As at  As at  As at  As at  December 2011 December 2010  December 2009  December 2008  December 2007  Bank licences  234  245  266  278  281 Registered companies  92,964  91,206  92,867  93,693  87,109 Mutual funds  9,258  9,348  9,523  9,870  9,413 Mutual fund administrators  129  134  141  155  152 Captive insurance companies  739  738  780  777  765 (for the twelve months ending December 31) ($ thousands) Other Income :