Carnival Cruises 2010 Annual Report Download - page 24

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asset position, and our creditworthiness was considered when in a liability position in the fair value measurement
of our financial instruments. Creditworthiness did not have a material impact on the fair values of our financial
instruments at November 30, 2010 and 2009. Both the counterparties and we are expected to continue to perform
under the contractual terms of the instruments.
Financial Instruments that are not Measured at Fair Value on a Recurring Basis
The estimated carrying and fair values of our financial instrument assets and (liabilities) that are not measured at
fair value on a recurring basis were as follows (in millions):
November 30, 2010 November 30, 2009
Carrying
Value Fair Value
Carrying
Value Fair Value
Cash and cash equivalents (a) ................................ $ 404 $ 404 $ 324 $ 324
Long-term other assets (b) .................................. $ 191 $ 178 $ 187 $ 181
Fixed rate, non-convertible debt (c) ........................... $(6,689) $(7,076) $(7,173) $(7,194)
Floating rate, non-convertible debt (c) ......................... $(2,669) $(2,630) $(2,270) $(2,182)
Publicly-traded convertible notes (d) .......................... $ (6) $ (7) $ (604) $ (627)
(a) Cash and cash equivalents are comprised of cash on hand and time deposits and, due to their short
maturities, the carrying values approximate their fair values.
(b) At November 30, 2010 and 2009, substantially all of our long-term other assets were comprised of notes and
other receivables. The fair values of notes and other receivables were based on estimated future cash flows
discounted at appropriate market interest rates.
(c) The net difference between the fair value of our fixed rate, non-convertible debt and its carrying value was
due to the market interest rates in existence at November 30, 2010 and 2009 being lower than the fixed
interest rates on these debt obligations, including the impact of changes in our credit ratings, if any. The net
difference between the fair value of our floating rate, non-convertible debt and its carrying value was due to
the market interest rates in existence at November 30, 2010 and 2009 being higher than the floating interest
rates on these debt obligations, including the impact of changes in our credit ratings, if any. The fair values
of our publicly-traded notes were based on their quoted market prices in active markets. The fair values of
our other debt were estimated based on appropriate market interest rates being applied to this debt.
(d) The net difference between the fair value of our publicly-traded convertible notes and their carrying value
was primarily due to the impact of changes in the Carnival Corporation common stock price underlying the
value of these convertible notes. The fair values were based on quoted market prices in active markets.
Financial Instruments that are Measured at Fair Value on a Recurring Basis
The estimated fair value and basis of valuation of our financial instrument assets and (liabilities) that are
measured at fair value on a recurring basis were as follows (in millions):
November 30, 2010 November 30, 2009
Level 1 Level 2 Level 1 Level 2
Cash equivalents (a) ............................................ $ 25 $ - $214 $ -
Marketable securities held in rabbi trusts (b) ......................... $105 $21 $106 $ 17
Derivatives:
Ship foreign currency forwards and options (c) ..................... $ - $ 8 $ - $41
Net investment hedges (d) ..................................... $ - $12 $ - $(33)
Interest rate swaps (e)(f) ....................................... $ - $ 1 $ - $ 3
(See next page for footnotes.)
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