Carnival Cruises 2009 Annual Report Download - page 30

(b) Other segment assets primarily included hotels and lodges in the state of Alaska and the Yukon Territory of
Canada, motorcoaches used for sightseeing and charters and domed rail cars, which run on the Alaska
railroad.
Foreign revenues for our cruise brands represent sales generated from outside the U.S. primarily by foreign
tour operators and foreign travel agencies. Substantially all of our long–lived assets are located outside of the
U.S. and consist principally of our ships and ships under construction.
Revenues by geographic area, which is based on where the guest is from, were as follows (in millions):
Years Ended November 30,
2009 2008 2007
North America ..................................................... $ 6,855 $ 8,090 $ 7,803
Europe ........................................................... 5,119 5,443 4,355
Others ............................................................ 1,183 1,113 875
$13,157 $14,646 $13,033
NOTE 12 – Benefit Plans
Equity Plans
We issue our share-based compensation awards under the Carnival Corporation and Carnival plc stock
plans, which have an aggregate of 37.1 million shares available for future grant at November 30, 2009. These
plans allow us to issue stock options, restricted stock awards and restricted stock units (collectively “equity
awards”). Equity awards are primarily granted to management level employees and members of our Boards of
Directors. The plans are administered by a committee of our independent directors (the “Committee”) that
determines which employees are eligible to participate, the monetary value or number of shares for which equity
awards are to be granted and the amounts that may be exercised or sold within a specified term. These plans
allow us to fulfill our equity award obligations using shares purchased in the open market, or with unissued or
treasury shares. Certain equity awards provide for accelerated vesting if we have a change in control, as defined.
Our total share-based compensation expense was $50 million in each of fiscal 2009 and 2008 and $64
million in fiscal 2007, of which $46 million, $44 million and $57 million has been included in our accompanying
Consolidated Statements of Operations as selling, general and administrative expenses and $4 million, $6 million
and $7 million as cruise payroll expenses in fiscal 2009, 2008 and 2007, respectively.
The fair values of options, which we granted in fiscal 2007, were estimated using the Black-Scholes option-
pricing model. The Black-Scholes weighted-average values and assumptions for fiscal 2007 were as follows:
Fair value of options at the dates of grant .................................................. $11.76
Risk-free interest rate (a) ............................................................... 4.9%
Expected dividend yield ................................................................ 3.3%
Expected volatility (b) ................................................................. 29.3%
Expected option life (in years) (c) ........................................................ 5.0
(See next page for footnotes.)
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