Carnival Cruises 2010 Annual Report Download - page 31

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Revenues by geographic areas, which are based on where the guests are sourced and not the cruise brands on
which they sailed, were as follows (in millions):
Years Ended November 30,
2010 2009 2008
North America ..................................................... $ 7,467 $ 7,085 $ 8,320
Europe ........................................................... 5,574 5,190 5,513
Australia and Asia .................................................. 1,063 790 780
Others ............................................................ 365 395 334
$14,469 $13,460 $14,947
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 38.9 million shares available for future grant at November 30, 2010. 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 $43 million in fiscal 2010 and $50 million in each of fiscal
2009 and 2008, of which $40 million, $46 million and $44 million has been included in our accompanying
Consolidated Statements of Income as selling and administrative expenses and $3 million, $4 million and $6
million as cruise payroll and related expenses in fiscal 2010, 2009 and 2008, respectively.
Stock Option Plans
The Committee generally set stock option exercise prices at 100% or more of the fair market value of the
underlying common stock/ordinary shares on the date the option was granted. Generally, employee options either
vest evenly over five years or at the end of three years. Our employee options granted prior to October 2005 have
a ten-year term and those options granted thereafter have a seven-year term. In the fourth quarter of fiscal 2007,
the Committee decided to cease granting employee stock options, and to instead grant restricted stock awards
(“RSAs”) or restricted stock units (“RSUs”) to our employee groups who were previously granted options. This
change from options to RSAs or RSUs enables us to grant equity awards in a more uniform method to our
employees. Since fiscal 2001, Carnival Corporation Board of Director options vest evenly over five years and
have a ten-year term. In 2008, the Committee decided to also cease granting stock options to non-executive board
members and will instead grant them RSAs and/or RSUs.
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