Carnival Cruises 2013 Annual Report Download - page 90

Table of Contents
As of the dates of exercise, the total intrinsic value of options exercised in 2013, 2012 and 2011 was $3 million, $7 million and $18 million, respectively. As
of November 30, 2013, there is no unrecognized compensation cost as there were no unvested stock options. Our stock options will expire through 2016.
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. Substantially all of the remaining
defined benefit plans are unfunded. In determining all of our plans’ benefit obligations at November 30, 2013 and 2012, we assumed weighted-average
discount rates of 4.0% and 3.5%, respectively. The net asset or net liability positions under these single-employer defined benefit pension plans are not
material.
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, 2013, it was determined that these plans were 85% 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 any multiemployer plan deficit as amounts are invoiced by, and become due and payable to, the trustees. 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 2012 and 2011, our
contributions to the MNOPF fund were not material and did not exceed 5% of total contributions to the fund. In 2013, 2012 and 2011, our contributions to the
MNRPF were not material and did not exceed 5% of total contributions to the plan. 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.
Total expense for all defined benefit pension plans, including the multiemployer plans, was $62 million, $45 million and $46 million in 2013, 2012 and
2011, 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, $22 million and $21 million in 2013, 2012 and 2011, respectively.
F-31