Carnival Cruises 2014 Annual Report Download - page 33

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We classify the fair values of all our derivative contracts as either current or long-term, depending on whether the
maturity date of the derivative contract is within or beyond one year from the balance sheet date. The cash flows
from derivatives treated as hedges are classified in our Consolidated Statements of Cash Flows in the same
category as the item being hedged. Our cash flows related to fuel derivatives are classified within investing
activities.
The estimated fair values of our derivative financial instruments and their location in the Consolidated Balance
Sheets were as follows (in millions):
November 30,
Balance Sheet Location 2014 2013
Derivative assets
Derivatives designated as hedging instruments
Net investment hedges (a) ........................... Prepaid expenses and other $ 6 $ -
Other assets – long-term 6 2
Foreign currency zero cost collars (b) .................. Other assets – long-term - 8
Interest rate swaps (c) .............................. Prepaid expenses and other 1 1
Other assets – long-term 1 5
14 16
Derivatives not designated as hedging instruments
Fuel (d) ......................................... Prepaid expenses and other - 14
Other assets – long-term - 30
-44
Total derivative assets .................................. $ 14 $60
Derivative liabilities
Derivatives designated as hedging instruments
Net investment hedges (a) ........................... Accrued liabilities and other $ - $ 4
Foreign currency zero cost collars (b) .................. Accrued liabilities and other 1 -
Interest rate swaps (c) .............................. Accrued liabilities and other 13 13
Other long-term liabilities 35 13
49 30
Derivatives not designated as hedging instruments
Fuel (d) ......................................... Accrued liabilities and other 90 -
Other long-term liabilities 139 1
229 1
Total derivative liabilities ............................... $278 $31
(a) At November 30, 2014 and 2013, we had foreign currency forwards totaling $403 million and $578 million,
respectively, that are designated as hedges of our net investments in foreign operations, which have a euro-
denominated functional currency. At November 30, 2014, these foreign currency forwards settle through
July 2017.
(b) At November 30, 2014 and 2013, we had foreign currency derivatives consisting of foreign currency zero
cost collars that are designated as foreign currency cash flow hedges for a portion of our euro-denominated
shipbuilding payments. See “Newbuild Currency Risks” below for additional information regarding these
derivatives.
(c) We have euro interest rate swaps designated as cash flow hedges whereby we receive floating interest rate
payments in exchange for making fixed interest rate payments. At November 30, 2014 and 2013, these
interest rate swap agreements effectively changed $750 million and $909 million, respectively, of
31