Vanguard International Stock Index Funds Annual Report

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60 Pacific Stock Index Fund F. Distributions are determined on a tax basis and may differ from net investment income and realized capital gains for financial reporting purposes. Differences may be permanent or temporary. Permanent differences are reclassified among capital accounts in the financial statements to reflect their tax character. Temporary differences arise when certain items of income, expense, gain, or loss are recognized in different periods for financial statement and tax purposes; these differences will reverse at some time in the future. Differences in classification may also result from the treatment of shortterm gains as ordinary income for tax purposes. During the year ended October 31, 2009, the fund realized net foreign currency gains of $11,266,000, which increased distributable net income for tax purposes; accordingly, such gains have been reclassified from accumulated net realized losses to undistributed net investment income. Certain of the fund’s investments are in securities considered to be “passive foreign investment companies,” for which any unrealized appreciation and/or realized gains are required to be included in distributable net income for tax purposes. Unrealized appreciation of $9,510,000 on the fund’s passive foreign investment company holdings at October 31, 2008, has been distributed and is reflected in the balance of undistributed net investment income. During the year ended October 31, 2009, the fund realized gains on the sale of passive foreign investment companies of $8,195,000, which have been included in current and prior periods’ taxable income; accordingly, such gains have been reclassified from accumulated net realized losses to undistributed net investment income. Unrealized appreciation on the fund’s passive foreign investment company holdings at October 31, 2009, was $3,675,000. During the year ended October 31, 2009, the fund realized $532,937,000 of net capital losses resulting from in-kind redemptions—in which shareholders exchanged fund shares for securities held by the fund rather than for cash. Because such losses are not taxable losses to the fund, they have been reclassified from accumulated net realized losses to paid-in capital. For tax purposes, at October 31, 2009, the fund had $142,861,000 of ordinary income available for distribution. The fund had available capital loss carryforwards totaling $1,138,170,000 to offset future net capital gains of $68,660,000 through October 31, 2010, $4,471,000 through October 31, 2011, $4,674,000 through October 31, 2013, $453,022,000 through October 31, 2016, and $607,343,000 through October 31, 2017. Capital loss carryforwards of $1,920,000 expired on October 31, 2009; accordingly, such losses have been reclassified from accumulated net realized losses to paid-in capital. At October 31, 2009, the cost of investment securities for tax purposes was $7,466,201,000. Net unrealized depreciation of investment securities for tax purposes was $1,773,936,000, consisting of unrealized gains of $218,393,000 on securities that had risen in value since their purchase and $1,992,329,000 in unrealized losses on securities that had fallen in value since their purchase. G. During the year ended October 31, 2009, the fund purchased $815,024,000 of investment securities and sold $4,678,274,000 of investment securities, other than temporary cash investments.
Pacific Stock Index Fund H. Capital share transactions for each class of shares were: Investor Shares Year Ended October 31, 2009 2008 Amount Shares Amount Shares ($000) (000) ($000) (000) Issued 697,406 89,584 2,411,768 203,868 Issued in Lieu of Cash Distributions 89,093 11,571 244,964 19,319 Redeemed 1 (3,280,999) (442,815) (4,188,958) (380,723) Net Increase (Decrease)—Investor Shares (2,494,500) (341,660) (1,532,226) (157,536) Admiral Shares Issued 122,233 2,241 226,260 2,951 Issued in Lieu of Cash Distributions 11,409 227 24,546 296 Redeemed 1 (164,001) (3,133) (216,451) (2,998) Net Increase (Decrease)—Admiral Shares (30,359) (665) 34,355 249 Signal Shares Issued 60,869 3,310 119,279 4,249 Issued in Lieu of Cash Distributions 2,555 146 5,089 176 Redeemed 1 (81,397) (4,472) (92,729) (3,794) Net Increase (Decrease)—Signal Shares (17,973) (1,016) 31,639 631 Institutional Shares Issued 405,620 51,039 918,220 82,517 Issued in Lieu of Cash Distributions 29,986 3,894 51,874 4,047 Redeemed 1 (1,752,130) (206,617) (876,722) (75,668) Net Increase (Decrease)—Institutional Shares (1,316,524) (151,684) 93,372 10,896 ETF Shares Issued 150,908 3,422 541,682 8,588 Issued in Lieu of Cash Distributions — — — — Redeemed 1 (265,157) (6,300) (22,550) (400) Net Increase (Decrease)—ETF Shares (114,249) (2,878) 519,132 8,188 1 Net of redemption fees for fiscal 2009 and 2008 of $361,000 and $911,000, respectively (fund totals). I. In preparing the financial statements as of October 31, 2009, management considered the impact of subsequent events occurring through December 15, 2009, for potential recognition or disclosure in these financial statements. 61
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Vanguard International Stock Index
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Your Fund’s Total Returns Fiscal
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Your Fund’s Performance at a Glan
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All three funds succeeded in captur
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end of 2008, as the credit markets
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Vanguard International Stock Index Funds Annual Report

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