Carnival Cruises 2015 Annual Report Download - page 35

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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 2015 2014
Derivative assets
Derivatives designated as hedging instruments
Net investment hedges (a) .......................... Prepaid expenses and other $ 14 $ 6
Other assets – long-term 13 6
Interest rate swaps (b) ............................. Prepaid expenses and other 2 1
Other assets – long-term - 1
Total derivative assets ................................. $ 29 $ 14
Derivative liabilities
Derivatives designated as hedging instruments
Interest rate swaps (b) ............................. Accrued liabilities and other $ 11 $ 13
Other long-term liabilities 27 35
Foreign currency zero cost collars (c) ................. Accrued liabilities and other - 1
Other long-term liabilities 26 -
64 49
Derivatives not designated as hedging instruments
Fuel (d) ......................................... Accrued liabilities and other 227 90
Other long-term liabilities 334 139
561 229
Total derivative liabilities .............................. $625 $278
(a) At November 30, 2015 and 2014, we had foreign currency forwards totaling $43 million and $403 million,
respectively, that are designated as hedges of our net investments in foreign operations, which have a euro-
denominated functional currency. At November 30, 2015, these foreign currency forwards settle through
July 2017. At November 30, 2015, we also had foreign currency swaps totaling $387 million that are
designated as hedges of our net investments in foreign operations, which have a euro-denominated
functional currency. At November 30, 2015, these foreign currency swaps settle through September 2019.
(b) 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. These interest rate swap agreements
effectively changed $568 million at November 30, 2015 and $750 million at November 30, 2014 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, 2015 and 2014 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. At November 30, 2015 and 2014, 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.
(c) At November 30, 2015 and 2014, 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
33