Carnival Cruises 2013 Annual Report Download - page 83

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Table of Contents
The estimated fair values of our derivative financial instruments and their location on the Consolidated Balance Sheets were as follows (in millions):
November 30,
Balance Sheet Location 2013 2012
Derivative assets
Derivatives designated as hedging instruments
Net investment hedges (a) Prepaid expenses and other $- $ 1
Other assets – long-term 2 6
Foreign currency zero cost collars (b) Prepaid expenses and other - 11
Other assets – long-term 8 5
Interest rate swaps (c) Prepaid expenses and other 1 -
Other assets – long-term 5 -
16 23
Derivatives not designated as hedging instruments
Fuel (d) Prepaid expenses and other 14 -
Other assets – long-term 30 25
44 25
Total derivative assets $ 60 $48
Derivative liabilities
Derivatives designated as hedging instruments
Net investment hedges (a) Accrued liabilities and other $4 $-
Interest rate swaps (c) Accrued liabilities and other 13 7
Other long-term liabilities 13 17
30 24
Derivatives not designated as hedging instruments
Fuel (d) Accrued liabilities and other - 16
Other long-term liabilities 1 3
1 19
Total derivative liabilities $31 $43
(a) At November 30, 2013 and 2012, we had foreign currency forwards totaling $578 million and $235 million, respectively, that are designated as hedges
of our net investments in foreign operations, which have a euro-denominated functional currency. At November 30, 2013, these outstanding foreign
currency forwards mature through July 2017.
(b) At November 30, 2013 and 2012, 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, 2013 and 2012, these interest rate swap agreements have or will effectively change $909 million and $269 million,
respectively, of EURIBOR-based floating rate euro debt to fixed rate euro debt. These interest rate swaps settle through March 2025. In addition, at
November 30, 2013 we had U.S. dollar interest rate swaps designated as fair value hedges whereby we receive fixed interest rate payments in exchange
for making floating interest rate payments. These interest rate swap agreements effectively changed $500 million of fixed rate debt to U.S. dollar LIBOR-
based floating rate debt. These interest rate swaps settle through February 2016.
(d) At November 30, 2013, we had fuel derivatives consisting of zero cost collars on Brent crude oil (“Brent”) to cover a portion of our estimated fuel
consumption through 2017. See “Fuel Price Risks” below for additional information regarding these fuel derivatives. At November 30, 2012, we had
fuel derivatives consisting of zero cost collars on Brent to cover a portion of our estimated fuel consumption through 2016.
F-24