Carnival Cruises 2014 Annual Report Download - page 28

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under the contractual terms of the instruments. Considerable judgment may be required in interpreting market
data used to develop the estimates of fair value. Accordingly, certain estimates of fair value presented herein are
not necessarily indicative of the amounts that could be realized in a current or future market exchange.
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, 2014 November 30, 2013
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) ...... $ 240 $240 $ - $ - $ 349 $349 $ - $ -
Restricted cash (b) .............. 11 11 - - - - - -
Long-term other assets (c) ........ 156 1 103 49 110 1 58 50
Total ....................... $ 407 $252 $ 103 $49 $ 459 $350 $ 58 $50
Liabilities
Fixed rate debt (d) ............... $4,433 $ - $4,743 $ - $5,574 $ - $5,941 $ -
Floating rate debt (d) ............ 4,655 - 4,562 - 3,986 - 3,997 -
Total ....................... $9,088 $ - $9,305 $ - $9,560 $ - $9,938 $ -
(a) Cash and cash equivalents are comprised of cash on hand, and at November 30, 2013 also include time
deposits. Due to their short maturities, the carrying values approximate their fair values.
(b) Restricted cash is comprised of a money market deposit account.
(c) At November 30, 2014 and 2013, long-term other assets were substantially all 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.
(d) Debt does not include the impact of interest rate swaps. 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, 2014
and 2013 being lower than the fixed interest rates on these debt obligations, including the impact of any
changes in our credit ratings. At November 30, 2014 and 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, 2014 and 2013 being slightly higher and slightly lower, respectively, 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 and, accordingly, are considered Level 2. The fair values of our other debt
were estimated based on appropriate market interest rates being applied to this debt.
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