Carnival Cruises 2009 Annual Report Download - page 33

liability of $20 million in cruise payroll and related expense in 2007. We expect to receive another special
assessment invoice in 2010, although the amount of such invoice is not currently determinable. It is still possible
that the fund’s trustee may invoice us for additional amounts after 2010, if they believe the fund requires further
contributions.
As of the DLC formation date in April 2003 and through November 30, 2007, the MNOPF’s Old Section
had a funding surplus and, accordingly, no expenses had been recorded for this section of the plan in our
financial statements. We believe that while the Old Section had a funding deficit at November 30, 2008, this
deficit has reverted to a surplus at November 30, 2009. If the Old Section has a funding deficit in the future, then
it could result in the fund’s trustee invoicing us for amounts, if they believe the fund requires further
contributions. We will record any required Old Section contributions in the same manner as the New Section.
Our share of the Old Section deficit, if any, which covers predecessor employers’ officers prior to 1978, is not
currently known and, accordingly, the amount of any such contribution is not currently determinable.
Total expense for all defined benefit pension plans, including multiemployer plans, was $36 million, $42
million and $55 million in fiscal 2009, 2008 and 2007, respectively.
On November 30, 2007, we adopted a new accounting standard related to accounting for defined benefit
pension plans. This standard required us, upon adoption, to recognize the funded status of our defined benefit
single employer pension plans. Accordingly, as of November 30, 2007, we recorded an increase in our pension
plan assets and liabilities of $17 million and $24 million, respectively, and a reduction to AOCI of $7
million. The adoption of this standard had no effect on our accompanying Consolidated Statement of Operations
for fiscal 2007, and it will not affect our results of operations in future periods.
Defined Contribution Plans
We have several defined contribution plans available to most of our employees. We contribute to these
plans based on employee contributions, salary levels and length of service. Total expense for these plans was $16
million, $22 million and $18 million in fiscal 2009, 2008 and 2007, respectively.
NOTE 13 – Earnings Per Share
Our basic and diluted earnings per share were computed as follows (in millions, except per share data):
Years Ended November 30,
2009 2008 2007
Net income ........................................................... $1,790 $2,330 $2,408
Interest on dilutive convertible notes ....................................... 12 34 34
Net income for diluted earnings per share ................................... $1,802 $2,364 $2,442
Weighted-average common and ordinary shares outstanding .................... 787 786 793
Dilutive effect of convertible notes ........................................ 15 28 33
Dilutive effect of equity plans ............................................222
Diluted weighted-average shares outstanding ................................ 804 816 828
Basic earnings per share ................................................. $ 2.27 $ 2.96 $ 3.04
Diluted earnings per share ............................................... $ 2.24 $ 2.90 $ 2.95
Anti-dilutive stock options excluded from diluted earnings per share computations . . 14 12 8
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