Carnival Cruises 2013 Annual Report Download - page 79

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Table of Contents
Financial Instruments that are not Measured at Fair Value on a Recurring Basis
The estimated carrying and fair values and basis of valuation 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, 2013 November 30, 2012
Carrying
Value
Fair Value Carrying
Value
Fair Value
Level 1 Level 2 Level 3 Level 1 Level 2 Level 3
Assets
Cash and cash
equivalents (a) $349 $349 $- $- $269 $269 $- $-
Long-term other assets
(b) 110 1 58 50 104 1 36 62
Total $459 $350 $58 $ 50 $373 $270 $ 36 $62
Liabilities
Fixed rate debt (c) $5,574 $- $5,941 $- $5,195 $- $5,825 $-
Floating rate debt (c) 3,986 - 3,997 - 3,707 - 3,706 -
Total $9,560 $- $9,938 $- $8,902 $- $9,531 $-
(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, 2013 and 2012, substantially all of our long-term other assets were comprised of notes and other receivables. The fair values of our
Level 1 and Level 2 notes and other receivables were based on estimated future cash flows discounted at appropriate market interest rates. The fair
values of our Level 3 notes receivable were estimated using risk-adjusted discount rates.
(c) The net difference between the fair value of our fixed rate debt and its carrying value was due to the market interest rates in existence at November 30,
2013 and 2012 being lower than the fixed interest rates on these debt obligations, including the impact of any changes in our credit ratings. At
November 30, 2013, the net difference between the fair value of our floating rate debt and its carrying value was due to the market interest rates in
existence at November 30, 2013 being slightly lower than the floating interest rates on these debt obligations, including the impact of any changes in our
credit ratings. The fair values of our publicly-traded notes were based on their unadjusted quoted market prices in markets that are not sufficiently
active to be Level 1. The fair values of our other debt were estimated based on appropriate market interest rates being applied to this debt.
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, 2013 November 30, 2012
Level 1 Level 2 Level 3 Level 1 Level 2 Level 3
Assets
Cash equivalents (a) $113 $- $- $196 $- $-
Restricted cash (b) 28 - - 28 - -
Marketable securities held in rabbi trusts (c) 113 10 - 104 16 -
Derivative financial instruments (d) - 60 - - 48 -
Long-term other assets (e) - - 17 - - 11
Total $ 254 $70 $ 17 $328 $ 64 $11
Liabilities
Derivative financial instruments (d) $- $31 $- $- $43 $-
Total $- $31 $- $- $43 $-
F-20