Carnival Cruises 2015 Annual Report Download - page 37

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derivative markets with significant trading liquidity and our program currently consists of zero cost collars on
Brent.
All of our derivatives are based on Brent prices whereas the actual fuel used on our ships is marine fuel. Changes
in the Brent prices may not show a high degree of correlation with changes in our underlying marine fuel prices.
We will not realize any economic gain or loss upon the monthly maturities of our zero cost collars unless the
average monthly price of Brent is above the ceiling price or below the floor price. We believe that these
derivatives will act as economic hedges; however, hedge accounting is not applied. As part of our fuel derivatives
program, we will continue to evaluate various derivative products and strategies.
Our unrealized and realized (losses) gains, net on fuel derivatives were as follows (in millions):
November 30,
2015 2014 2013
Unrealized (losses) gains on fuel derivatives, net ................................. $(332) $(268) $36
Realized losses on fuel derivatives, net ......................................... (244) (3) -
(Losses) gains on fuel derivatives, net .......................................... $(576) $(271) $36
At November 30, 2015, our outstanding fuel derivatives consisted of zero cost collars on Brent as follows:
Maturities (a)
Transaction
Dates
Barrels
(in thousands)
Weighted-Average
Floor Prices
Weighted-Average
Ceiling Prices
Fiscal 2016
June 2012 ........................ 3,564 $75 $108
February 2013 .................... 2,160 $80 $120
April 2013 ....................... 3,000 $75 $115
8,724
Fiscal 2017
February 2013 .................... 3,276 $80 $115
April 2013 ....................... 2,028 $75 $110
January 2014 ..................... 1,800 $75 $114
October 2014 ..................... 1,020 $80 $113
8,124
Fiscal 2018
January 2014 ..................... 2,700 $75 $110
October 2014 ..................... 3,000 $80 $114
5,700
(a) Fuel derivatives mature evenly over each month within the above fiscal periods.
Foreign Currency Exchange Rate Risks
Overall Strategy
We manage our exposure to fluctuations in foreign currency exchange rates through our normal operating and
financing activities, including netting certain exposures to take advantage of any natural offsets and, when
considered appropriate, through the use of derivative and non-derivative financial instruments. Our primary focus
is to manage the economic foreign currency exchange risks faced by our operations, which are the ultimate
foreign currency exchange risks that would be realized by us if we exchanged one currency for another, and not
accounting risks. While we will continue to monitor our exposure to these economic risks, we do not currently
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