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Fair Value Measurements, Derivative Instruments and Hedging Activities (Tables)
3 Months Ended
Feb. 28, 2018
Fair Value Disclosures [Abstract]  
Estimated Carrying and Fair Values of Financial Instrument Assets and Liabilities Not Measured at Fair Value on a Recurring Basis
Financial Instruments that are not Measured at Fair Value on a Recurring Basis 
 
February 28, 2018
 
November 30, 2017
 
Carrying
Value
 
Fair Value
 
Carrying
Value
 
Fair Value
(in millions)
 
Level 1
 
Level 2
 
Level 3
 
Level 1
 
Level 2
 
Level 3
Assets
 
 
 
 
 
 

 
 
 
 
 
 
 

Long-term other assets (a)
$
117

 
$

 
$
43

 
$
71

 
$
126

 
$

 
$
49

 
$
75

Total
$
117

 
$

 
$
43

 
$
71

 
$
126

 
$

 
$
49

 
$
75

Liabilities
 
 
 
 
 
 

 
 
 
 
 
 
 

Fixed rate debt (b)
$
5,168

 
$

 
$
5,418

 
$

 
$
5,588

 
$

 
$
5,892

 
$

Floating rate debt (b)
4,442

 

 
4,488

 

 
3,658

 

 
3,697

 

Total
$
9,610

 
$

 
$
9,906

 
$

 
$
9,246

 
$

 
$
9,589

 
$

 
(a)
Long-term other assets are comprised of notes receivable. The fair values of our Level 2 notes receivable 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.
(b)
The debt amounts above do not include the impact of interest rate swaps or debt issuance costs. 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 current market interest rates being applied to this debt.
Estimated Fair Value and Basis of Valuation of Financial Instrument Assets and Liabilities Measured at Fair Value on Recurring Basis
Financial Instruments that are Measured at Fair Value on a Recurring Basis
 
February 28, 2018
 
November 30, 2017
(in millions)
Level 1
 
Level 2
 
Level 3
 
Level 1
 
Level 2
 
Level 3
Assets
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
453

 
$

 
$

 
$
395

 
$

 
$

Restricted cash
29

 

 

 
26

 

 

Marketable securities held in rabbi trusts (a)
6

 

 

 
97

 

 

Derivative financial instruments

 
17

 

 

 
15

 

Total
$
488

 
$
17

 
$

 
$
518

 
$
15

 
$

Liabilities
 
 
 
 
 
 
 
 
 
 
 
Derivative financial instruments
$

 
$
130

 
$

 
$

 
$
161

 
$

Total
$

 
$
130

 
$

 
$

 
$
161

 
$

 
(a)
The use of marketable securities held in rabbi trusts is restricted to funding certain deferred compensation and non-qualified U.S. pension plans.
Reconciliation of Changes in Carrying Amounts of Goodwill
Valuation of Goodwill and Other Intangibles 
 
Goodwill
(in millions)
NAA (a)
Segment
 
EA (b)
Segment
 
Total
At November 30, 2017
$
1,898

 
$
1,069

 
$
2,967

Foreign currency translation adjustment

 
47

 
47

At February 28, 2018
$
1,898

 
$
1,115

 
$
3,014

 (a)
North America & Australia (“NAA”)
 (b)
Europe & Asia (“EA”)
Reconciliation of Changes in Carrying Amounts of Trademarks
 
Trademarks
(in millions)
NAA
Segment
 
EA
Segment
 
Total
At November 30, 2017
$
927

 
$
252

 
$
1,179

Foreign currency translation adjustment

 
11

 
11

At February 28, 2018
$
927

 
$
263

 
$
1,190

Estimated Fair Values of Derivative Financial Instruments and Location in the Consolidated Balance Sheets
Derivative Instruments and Hedging Activities  

(in millions)
Balance Sheet Location
 
February 28, 2018
 
November 30, 2017
Derivative assets
 
 
 
 
 
Derivatives designated as hedging instruments
 
 
 
 
 
Net investment hedges (a)
Prepaid expenses and other
 
$
4

 
$
3

Foreign currency zero cost collars (b)
Prepaid expenses and other
 
13

 
12

Total derivative assets
 
 
$
17

 
$
15

Derivative liabilities
 
 
 
 
 
Derivatives designated as hedging instruments
 
 
 
 
 
Net investment hedges (a)
Accrued liabilities and other
 
$
17

 
$
13

 
Other long-term liabilities
 
21

 
17

Interest rate swaps (c)
Accrued liabilities and other
 
10

 
10


Other long-term liabilities
 
14

 
17

 
 
 
63

 
57

Derivatives not designated as hedging instruments
 
 
 
 
 
Fuel (d)
Accrued liabilities and other
 
67

 
95

 
Other long-term liabilities
 

 
9

 
 
 
67

 
104

Total derivative liabilities
 
 
$
130

 
$
161

 
(a)
At February 28, 2018 and November 30, 2017, we had foreign currency swaps totaling $337 million and $324 million, respectively, that are designated as hedges of our net investments in foreign operations with a euro-denominated functional currency. At February 28, 2018, these foreign currency swaps settle through September 2019.
(b)
At February 28, 2018 and November 30, 2017, 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. These interest rate swap agreements effectively changed $485 million at February 28, 2018 and $479 million at November 30, 2017 of EURIBOR-based floating rate euro debt to fixed rate euro debt. At February 28, 2018, these interest rate swaps settle through March 2025.
(d)
At February 28, 2018 and November 30, 2017, 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 derivatives.

Offsetting Derivative Instruments
Our derivative contracts include rights of offset with our counterparties. We have elected to net certain of our derivative assets and liabilities within counterparties.
 
 
February 28, 2018
(in millions)
 
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
 
$
17

 
$

 
$
17

 
$
(5
)
 
$
12

Liabilities
 
$
130

 
$

 
$
130

 
$
(5
)
 
$
125

 
 
 
 
 
 
 
 
 
 
 
 
 
November 30, 2017
(in millions)
 
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
 
$
15

 
$

 
$
15

 
$
(8
)
 
$
7

Liabilities
 
$
161

 
$

 
$
161

 
$
(8
)
 
$
153

Derivatives Qualifying and Designated as Hedging Instruments Recognized in Other Comprehensive Income
The effective gain (loss) portions of our derivatives qualifying and designated as hedging instruments recognized in other comprehensive income were as follows:
 
Three Months Ended
February 28,
(in millions)
2018
 
2017
Net investment hedges
$
(6
)
 
$
1

Foreign currency zero cost collars – cash flow hedges
$
1

 
$
8

Interest rate swaps – cash flow hedges
$
4

 
$
2

Unrealized and Realized Gains (Losses) on Fuel Derivatives, Net
 
Three Months Ended
February 28,
(in millions)
2018

2017
Unrealized gains on fuel derivatives, net
$
32


$
72

Realized losses on fuel derivatives, net
(16
)

(45
)
Gains on fuel derivatives, net
$
16

 
$
27

Outstanding Fuel Derivatives
At February 28, 2018, 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 2018
 
 
 
 
 
 
 
 
January 2014
 
2,025

 
$
75

 
$
110

 
October 2014
 
2,250

 
$
80

 
$
114

 
 
 
4,275

 
 
 
 
 
(a)
Fuel derivatives mature evenly over each month in 2018.
At February 28, 2018, for the following newbuilds, we had foreign currency zero cost collars for a portion of euro-denominated shipyard payments. These collars are designated as cash flow hedges.
 
Entered Into
 
Matures in
 
Weighted-Average Floor Rate
 
Weighted- Average Ceiling Rate
Carnival Horizon
2016
 
March 2018
 
$
1.02

 
$
1.25

Seabourn Ovation
2016
 
April 2018
 
$
1.02

 
$
1.25

Nieuw Statendam
2016
 
November 2018
 
$
1.05

 
$
1.25