Vanguard International Stock Index Funds Annual Report

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90 Emerging Markets Stock Index Fund Total Return Swaps Floating Unrealized Notional Interest Rate Appreciation Termination Amount Received (Depreciation) Reference Entity Date Counterparty1 ($000) (Paid) 2 ($000) Cyrela Brazil Realty SA Jan. 21, 2010 MSCS 21,141 4.89% (4,604) 1 MSCS—Morgan Stanley Capital Services. 2 Based on one-month Fed Funds rate as of October 31, 2009. The fund had net unrealized foreign currency gains of $1,039,000 resulting from the translation of other assets and liabilities at October 31, 2009. E. 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 losses of $9,547,000, which decreased distributable net income for tax purposes; accordingly, such losses 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 $3,107,000 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 $3,271,000, 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 $17,309,000. During the year ended October 31, 2009, the fund realized $179,907,000 of net capital gains resulting from in-kind redemptions—in which shareholders exchanged fund shares for securities held by the fund rather than for cash. Because such gains are not taxable to the fund, and are not distributed to shareholders, they have been reclassified from accumulated net realized losses to paid-in capital. For tax purposes, at October 31, 2009, the fund had $345,678,000 of ordinary income available for distribution. The fund had available capital loss carryforwards totaling $2,235,121,000 to offset future net capital gains of $15,143,000 through October 31, 2012, $167,331,000 through October 31, 2014, $460,853,000 through October 31, 2016, and $1,591,794,000 through October 31, 2017. At October 31, 2009, the cost of investment securities for tax purposes was $24,152,956,000. Net unrealized appreciation of investment securities for tax purposes was $3,883,509,000, consisting of unrealized gains of $5,735,715,000 on securities that had risen in value since their purchase and $1,852,206,000 in unrealized losses on securities that had fallen in value since their purchase.
Emerging Markets Stock Index Fund F. During the year ended October 31, 2009, the fund purchased $10,332,952,000 of investment securities and sold $2,765,237,000 of investment securities, other than temporary cash investments. G. 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 1,853,897 96,420 3,872,977 135,857 Issued in Lieu of Cash Distributions 223,214 15,577 222,748 6,777 Redeemed 1 (2,386,527) (159,509) (5,049,916) (185,897) Net Increase (Decrease)—Investor Shares (309,416) (47,512) (954,191) (43,263) Admiral Shares Issued 639,959 25,023 997,071 24,577 Issued in Lieu of Cash Distributions 60,382 3,205 58,820 1,359 Redeemed 1 (366,673) (16,316) (837,580) (25,354) Net Increase (Decrease)—Admiral Shares 333,668 11,912 218,311 582 Signal Shares Issued 154,975 6,912 301,803 8,027 Issued in Lieu of Cash Distributions 11,476 633 7,172 172 Redeemed 1 (123,822) (5,646) (101,168) (3,051) Net Increase (Decrease)—Signal Shares 42,629 1,899 207,807 5,148 Institutional Shares Issued 554,729 28,701 650,503 24,200 Issued in Lieu of Cash Distributions 28,341 1,978 16,639 505 Redeemed 1 (278,817) (14,848) (195,314) (7,891) Net Increase (Decrease)—Institutional Shares 304,253 15,831 471,828 16,814 ETF Shares Issued 7,505,813 231,324 3,410,974 76,025 2 Issued in Lieu of Cash Distributions — — — — Redeemed 1 (56,081) (2,000) (90,323) (2,400) 2 Net Increase (Decrease)—ETF Shares 7,449,732 229,324 3,320,651 73,625 2 1 Net of redemption fees for fiscal 2009 and 2008 of $5,687,000 and $14,015,000, respectively (fund totals). 2 Shares adjusted to reflect a 2-for-1 split as of the close of business on June 13, 2008. H. 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. 91
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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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A note on fair-value pricing An ind
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Results of Proxy Voting At a specia
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European Stock Index Fund Fund Prof
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European Stock Index Fund Since Fin
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European Stock Index Fund Financial
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European Stock Index Fund Market Va
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European Stock Index Fund Market Va
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European Stock Index Fund At Octobe
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European Stock Index Fund Statement
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European Stock Index Fund Notes to
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European Stock Index Fund B. The Va
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European Stock Index Fund The fund
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Pacific Stock Index Fund Fund Profi
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Page 51 and 52: Pacific Stock Index Fund Statement
Page 59 and 60: Pacific Stock Index Fund futures ar
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Page 63 and 64: Pacific Stock Index Fund H. Capital
Page 65 and 66: Emerging Markets Stock Index Fund M
Page 67 and 68: Emerging Markets Stock Index Fund S
Page 69 and 70: Emerging Markets Stock Index Fund F
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Page 95 and 96: Special 2009 tax information (unaud
Page 97 and 98: About Your Fund’s Expenses As a s
Page 99 and 100: Six Months Ended October 31, 2009 B
Page 101 and 102: The People Who Govern Your Fund The
Page 103: Connect with Vanguard ® > www.vang
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Vanguard International Stock Index Funds Annual Report

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