HispanicBusiness

Depreciation & Amortization
Depreciation & Amortization includes Depreciation and Amortization of Deferred Dry-docking and Special Survey Costs.

Depreciation
Depreciation expense increased 35.5%, or $37.7 million, to $143.9 million in the twelve months ended December 31, 2012, from $106.2 million in the twelve months ended December 31, 2011. The increase in depreciation expense was due to the increased average number of vessels in our fleet (with higher cost base) during the twelve months ended December 31, 2012 compared to the same period of 2011.

Amortization of Deferred Dry-docking and Special Survey Costs
Amortization of deferred dry-docking and special survey costs increased 5.2%, or $0.3 million, to $6.1 million in the twelve months ended December 31, 2012, from $5.8 million in the twelve months ended December 31, 2011. The increase reflects increased dry-docking and special survey costs incurred and amortized during the twelve months ended December 31, 2012 compared to the same period of 2011.

General and Administrative Expenses
General and administrative expenses decreased 2.9%, or $0.6 million, to $20.4 million in the twelve months ended December 31, 2012, from $21.0 million in the same period of 2011. The decrease was mainly the result of a non-cash stock based compensation expense of $2.2 million recorded in the twelve months ended December 31, 2011 compared to $0.1 million in the same period of 2012. Furthermore, fees to our Manager increased by $1.9 million, due to the increase in the average number of vessels in our fleet.

Other Operating Expenses
Other Operating Expenses includes Voyage Expenses

Voyage Expenses
Voyage expenses increased by $2.7 million, to $13.5 million in the twelve months ended December 31, 2012, from $10.8 million in the twelve months ended December 31, 2011. The increase was the result of increased commissions to our Manager by $2.4 million, due to the increase in the average number of vessels in our fleet and the increase in the commission on gross charter hires to our Manager, to 1.0% from 0.75%, effective January 1, 2012, as well as increased other voyage expenses due to the increase in the average number of vessels in the twelve months ended December 31, 2012 compared to the same period of 2011.

Interest Expense and Interest Income
Interest expense increased by 58.4%, or $32.2 million, to $87.3 million in the twelve months ended December 31, 2012, from $55.1 million in the twelve months ended December 31, 2011. The change in interest expense was due to the increase in our average debt by $495.3 million, to $3,308.3 million in the twelve months ended December 31, 2012, from $2,813.0 million in the twelve months ended December 31, 2011, as well as the increased average LIBOR payable on interest under our credit facilities in the twelve months ended December 31, 2012 compared to the twelve months ended December 31, 2011. Furthermore, the financing of our newbuilding program resulted in $3.7 million of interest being capitalized, rather than such interest being recognized as an expense, for the twelve months ended December 31, 2012 compared to $16.1 million of capitalized interest for the twelve months ended December 31, 2011.

Interest income was $1.6 million in the twelve months ended December 31, 2012 compared to $1.3 million in the twelve months ended December 31, 2011.