Carnival Cruises 2011 Annual Report Download - page 34

During the year ended November 30, 2011, RSA/RSU and PBS activity was as follows:
RSAs/RSUs PBSs
Shares
Weighted-Average
Grant Date Fair
Value Shares
Weighted-Average
Grant Date Fair
Value
Outstanding at November 30, 2010 ................... 4,153,127 $33.61 - $ -
Granted ........................................ 940,623 $46.32 130,088 $45.07
Vested ......................................... (1,260,378) $42.42 (12,508) $44.61
Forfeited ....................................... (207,406) $36.03 (588) $44.61
Outstanding at November 30, 2011 ................... 3,625,966 $33.70 116,992 $45.12
The total grant date fair value of RSAs/ RSUs vested was $53 million, $28 million and $18 million in fiscal 2011, 2010
and 2009, respectively. As of November 30, 2011, there was $34 million of total unrecognized compensation cost
related to RSAs/RSUs and PBSs. As of November 30, 2011, the total unrecognized compensation costs related to
RSAs/RSUs and PBSs are expected to be recognized over a weighted-average period of 1.7 years and 2.2 years,
respectively.
Defined Benefit Pension Plans
We have several single-employer defined benefit pension plans, which cover some of our shipboard and shoreside
employees. The U.S. and UK shoreside employee plans are closed to new membership and are funded at or above the
level required by U.S. or UK regulations. The remaining defined benefit plans are primarily unfunded. In determining
all of our plans’ benefit obligations at November 30, 2011 and 2010, we assumed weighted-average discount rates of
4.5% and 5.0%, respectively. The net asset or net liability positions under these single-employer defined benefit
pension plans are not material.
In addition, P&O Cruises (UK), Princess and Cunard participate in an industry-wide British Merchant Navy Officers
Pension Fund (“MNOPF” or the “fund”), which is a defined benefit multiemployer pension plan available to certain of
their British shipboard officers. The MNOPF is divided into two sections, the “New Section” and the “Old Section,”
each of which covers a different group of participants, with the Old Section closed to further benefit accrual and the
New Section only closed to new membership. At November 30, 2011, the New Section was estimated to have a
funding deficit.
The MNOPF trustee had previously determined that the MNOPF’s New Section funding was inadequate based on its
actuarially determined deficit. Substantially all of any MNOPF New Section deficit liability that we may have relates
to the obligations of P&O Cruises (UK) and Princess, which existed prior to the formation of our DLC in 2003. We
have not been able to record our estimated share of the ultimate fund deficit as of the DLC formation date or thereafter
because our ultimate amount of the deficit was and remains uncertain. The amount of our share of the fund’s ultimate
deficit could vary considerably if different assumptions and estimates are used to estimate the fund deficit. Therefore,
we expense our portion of any deficit as amounts are invoiced by, and become due and payable to, the fund’s trustee.
In 2010, we received a special assessment invoice from the fund’s trustee for an amount the trustee calculated to be our
additional share of the entire MNOPF New Section deficit. The calculation was based on the March 31, 2009 actuarial
valuations, as adjusted for subsequent market value recoveries. Accordingly, we recorded the full invoiced liability of
$41 million in cruise payroll and related expense in 2010. It is still possible that the fund’s trustee may invoice us in the
future for additional amounts.
We believe that while the Old Section had a funding deficit at November 30, 2008, there has been a surplus since
November 30, 2009 and, accordingly, no expenses have been recorded for the Old Section in fiscal 2011, 2010 and
2009. If the Old Section has a funding deficit in the future and the fund’s trustee believes the fund requires further
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