Carnival Cruises 2015 Annual Report Download - page 44

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 at March 31, 2014 of the MNOPF New Section and the MNRPF, it was determined that
these plans were 87% and 67% 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 2015 and 2014, 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. We expensed a nominal amount in 2015 and $18 million in
2014 of our estimated probable obligation relating to our allocated share of the MNRPF deficit in cruise payroll
and related expenses. As of November 30, 2015, we had no remaining estimated obligation of the MNRPF deficit
after contributing $14.3 million in 2015. In 2015 and 2014, our contributions to the MNRPF exceeded 5% of
total contributions to the fund. In 2013, 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 $47 million in 2015,
$69 million in 2014 and $62 million in 2013.
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 $30
million in 2015 and $25 million in both 2014 and 2013.
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