Carnival Cruises 2014 Annual Report Download - page 42

In addition, we participate in two multiemployer defined benefit pension plans in the UK, the British Merchant
Navy Officers Pension Fund (registration number 10005645) (“MNOPF”), and the British Merchant Navy
Ratings Pension Fund (registration number 10005646) (“MNRPF”), which are referred to as “the multiemployer
plans.” The MNOPF is divided into two sections, the “New Section” and the “Old Section.” The multiemployer
plans are maintained for the benefit of the employees of the participating employers who make contributions to
the plans. However, contributions made by employers, including us, may be used to provide benefits to
employees of other participating employers, and if any of the participating employers withdraw from the
multiemployer plans or fail to make their required contributions, any unfunded obligations would be the
responsibility of the remaining participating employers. We are contractually obligated to make all required
contributions as determined by the plans’ trustees. All of our multiemployer plans are closed to new membership,
and the MNOPF Old Section is also closed to further benefit accrual and is fully funded. Based on the most
recent actuarial reviews of the MNOPF New Section and the MNRPF at March 31, 2014 and March 31, 2013,
respectively, it was determined that these plans were 87% and 74% funded, respectively. The multiemployer
plans have implemented recovery plans, as appropriate, whereby their estimated funding deficits are to be
recovered through funding contributions from participating employers.
We expense our portion of the MNOPF deficit as amounts are invoiced by, and become due and payable to, the
trustees. In 2014 and 2012, our contributions to the MNOPF fund were not material and did not exceed 5% of
total contributions to the fund. In 2013, we received and paid in full a special assessment invoice from the
MNOPF trustee for our additional share of the MNOPF New Section deficit. Accordingly, we expensed the
invoice of $15 million in cruise payroll and related expense in 2013, which exceeded 5% of total contributions to
the fund. In addition, we accrue and expense our portion of the MNRPF deficit based on our estimated probable
obligation from the most recent actuarial review. In 2014, we expensed $18 million of our estimated probable
obligation relating to our allocated share of the MNRPF deficit in cruise payroll and related expenses. As of
November 30, 2014, our remaining estimated obligation of the MNRPF deficit was $13 million after contributing
$24 million in 2014. In 2014, our contributions to the MNRPF are expected to exceed 5% of total contributions
to the fund. In 2013 and 2012, our contributions to the MNRPF were not material and did not exceed 5% of total
contributions to the fund. It is possible that we will be required to fund and expense additional amounts for the
multiemployer plans in the future, however, such amounts are not expected to be material to our consolidated
financial statements.
Total expense for all defined benefit pension plans, including the multiemployer plans, was $69 million, $62
million and $45 million in 2014, 2013 and 2012, respectively.
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 $25
million in both 2014 and 2013 and $22 million in 2012.
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