Carnival Cruises 2011 Annual Report Download - page 35

contributions, then it could result in them also invoicing us for our share of such amounts. 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 employed prior to 1978, is not currently known and, accordingly, our share of
any such contribution is not currently determinable.
P&O Cruises (UK) participates in an industry-wide British Merchant Navy Ratings Pension Fund (“MNRPF”), which
is a defined benefit multiemployer pension plan available to certain of their shipboard British personnel. This plan is
closed to new membership and has a significant funding deficit. Our estimated share of the ultimate fund deficit relates
to the obligations of P&O Cruises (UK) that existed prior to the formation of our DLC in 2003. In 1999, we withdrew
from the plan, but continued making voluntary payments through 2006. However, pursuant to a 2011 court order, it
was determined that P&O Cruises (UK), along with other unrelated employers, were required to continue to be named
participating employers of the plan. Based on the most recent actuarial valuation, which was performed as of March 31,
2008, the MNRPF had an accumulated funding deficit of $270 million. No decision has yet been reached as to how the
deficit will be recovered, but we expect that the participating employers will be invoiced for their allocated share. We
estimate probable contributions relating to our allocated share of the deficit to be $18 million, which is recorded as a
liability in our accompanying Consolidated Balance Sheets. Depending on the outcome of future actuarial valuations
and other decisions made by the trustee, it is possible that we will be required to fund amounts in excess of our
recorded liability, which we will recognize in cruise payroll and related expense in future periods as amounts are
invoiced by, and become due and payable to, the MNRPF’s trustee. The amount of such additional funding is not
currently determinable, but is not expected to be material.
Total expense for all defined benefit pension plans, including multiemployer plans, was $46 million, $85 million and
$36 million in fiscal 2011, 2010 and 2009, 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 $21 million, $20 million
and $16 million in fiscal 2011, 2010 and 2009, 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,
2011 2010 2009
Net income ................................................................ $1,912 $1,978 $1,790
Interest on dilutive convertible notes ............................................ - 11 12
Net income for diluted earnings per share ........................................ $1,912 $1,989 $1,802
Weighted-average common and ordinary shares outstanding ......................... 787 788 787
Dilutive effect of convertible notes ............................................. - 14 15
Dilutive effect of equity plans .................................................232
Diluted weighted-average shares outstanding ..................................... 789 805 804
Basic earnings per share ..................................................... $ 2.43 $ 2.51 $ 2.27
Diluted earnings per share .................................................... $ 2.42 $ 2.47 $ 2.24
Anti-dilutive stock options excluded from diluted earnings per share computations ....... 9 10 14
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