Carnival Cruises 2015 Annual Report Download - page 36

shipbuilding payments. See “Newbuild Currency Risks” below for additional information regarding these
derivatives.
(d) At November 30, 2015 and 2014, we had fuel derivatives consisting of zero cost collars on Brent crude oil
(“Brent”) to cover a portion of our estimated fuel consumption through 2018. See “Fuel Price Risks” below
for additional information regarding these fuel derivatives.
Our derivative contracts include rights of offset with our counterparties. We have elected to net certain of our
derivative assets and liabilities within counterparties. The amounts recognized within assets and liabilities were
as follows (in millions):
November 30, 2015
Gross Amounts
Gross Amounts
Offset in the
Balance Sheet
Total Net Amounts
Presented in the
Balance Sheet
Gross Amounts
not Offset in the
Balance Sheet
Net
Amounts
Assets ........................ $ 73 $(44) $ 29 $(29) $ -
Liabilities ..................... $669 $(44) $625 $(29) $596
November 30, 2014
Gross Amounts
Gross Amounts
Offset in the
Balance Sheet
Total Net Amounts
Presented in the
Balance Sheet
Gross Amounts
not Offset in the
Balance Sheet
Net
Amounts
Assets ........................ $ 78 $(64) $ 14 $(14) $ -
Liabilities ..................... $342 $(64) $278 $(14) $264
The effective portions of our derivatives qualifying and designated as hedging instruments recognized in other
comprehensive (loss) income were as follows (in millions):
November 30,
2015 2014 2013
Net investment hedges ....................................................... $58 $25 $(11)
Foreign currency zero cost collars – cash flow hedges ............................... $(57) $(10) $ (1)
Interest rate swaps – cash flow hedges ........................................... $ 2 $(28) $ 2
There are no credit risk related contingent features in our derivative agreements, except for bilateral credit
provisions within our fuel derivative counterparty agreements. These provisions require interest-bearing, non-
restricted cash to be posted or received as collateral to the extent the fuel derivative fair value payable to or
receivable from an individual counterparty exceeds $100 million. At November 30, 2015, we had $25 million of
collateral posted to one of our fuel derivative counterparties. Subsequent to November 30, 2015, we were
required to post an additional $22 million of collateral. At November 30, 2015, no collateral was required to be
received from our fuel derivative counterparties. At November 30, 2014, no collateral was required to be posted
to or received from our fuel derivative counterparties.
The amount of estimated cash flow hedges’ unrealized gains and losses that are expected to be reclassified to
earnings in the next twelve months is not significant. We have not provided additional disclosures of the impact
that derivative instruments and hedging activities have on our consolidated financial statements as of
November 30, 2015 and 2014 and for the years ended November 30, 2015, 2014 and 2013 where such impacts
were not significant.
Fuel Price Risks
Our exposure to market risk for changes in fuel prices substantially all relates to the consumption of fuel on our
ships. We use our fuel derivatives program to mitigate a portion of our economic risk attributable to potential
fuel price increases. We designed our fuel derivatives program to maximize operational flexibility by utilizing
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