Carnival Cruises 2009 Annual Report Download - page 23

the general repurchase authorization was $787 million. The general repurchase authorization does not have an
expiration date and may be discontinued by our Boards of Directors at any time.
In addition to the general repurchase authorization, the Boards of Directors have authorized the repurchase
of up to 19.2 million Carnival plc ordinary shares and up to 25 million shares of Carnival Corporation common
stock under the “Stock Swap” programs described below. We use the “Stock Swap” programs in situations where
we can obtain an economic benefit because either Carnival Corporation common stock or Carnival plc ordinary
shares are trading at a price that is at a premium or discount to the price of Carnival plc ordinary shares or
Carnival Corporation common stock, as the case may be. All Carnival plc share repurchases under both the
general repurchase authorization and the “Stock Swap” authorization require annual shareholder approval.
In fiscal 2009 and 2008, we sold 450,000 shares and 633,000 shares of Carnival Corporation common stock
for $9 million and $15 million of net proceeds, respectively. In fiscal 2009 and 2008, substantially all of these net
proceeds were used to fund the repurchase of 450,000 shares and 633,000 shares of Carnival plc ordinary shares,
respectively. In these offerings, we sold Carnival Corporation common stock in the U.S., only to the extent we
were able to purchase shares of Carnival plc in the UK on at least an equivalent basis under the “Stock Swap”
program.
In fiscal 2009, we also sold 5.8 million shares of Carnival plc ordinary shares for $187 million of net
proceeds, substantially all of which was used to fund the repurchase of 5.8 million shares of Carnival Corporation
common stock. In these offerings, we sold in the UK Carnival plc ordinary shares held in treasury, only to the
extent we were able to purchase shares of Carnival Corporation in the U.S. on at least an equivalent basis under
the “Stock Swap” program.
At November 30, 2009, there were 42.9 million shares of Carnival Corporation common stock reserved for
issuance pursuant to its convertible notes and its employee benefit and dividend reinvestment plans. In addition,
Carnival plc shareholders have authorized 12.5 million ordinary shares for future issuance under its employee
benefit plans.
At November 30, 2009 and 2008, accumulated other comprehensive income (loss) was as follows
(in millions):
November 30,
2009 2008
Cumulative foreign currency translation adjustments, net ................................ $565 $(478)
Unrecognized pension expenses .................................................... (99) (35)
Unrealized loss on marketable security ............................................... (16) (20)
Net gains (losses) on effective cash flow derivative hedges ............................... 12 (90)
$462 $(623)
NOTE 10 – Fair Value Measurements, Derivative Instruments and Hedging Activities
Fair Value Measurements
U.S. accounting standards establish a fair value hierarchy that prioritizes the inputs used to measure fair
value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets
or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). This
hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable
inputs. The three levels of inputs used to measure fair value are as follows:
• Level 1 measurements are based on quoted prices in active markets for identical assets or liabilities that
we have the ability to access.
• Level 2 measurements are based on quoted prices for similar assets or liabilities in active markets,
quoted prices for identical or similar assets or liabilities in markets that are not active or market data
other than quoted prices that are observable for the assets or liabilities.
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