Carnival Cruises 2010 Annual Report Download - page 32

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A combined summary of Carnival Corporation and Carnival plc stock option activity during the year ended
November 30, 2010 was as follows:
Shares
Weighted-Average
Exercise Price
Weighted-
Average
Remaining
Contractual
Term
Aggregate
Intrinsic
Value (a)
(in years) (in millions)
Outstanding at November 30, 2009 ............... 15,346,257 $42.54
Exercised ................................... (1,563,055) $27.85
Forfeited or expired ........................... (1,063,354) $41.95
Outstanding at November 30, 2010 ............... 12,719,848 $43.91 2.8 $37
Exercisable at November 30, 2010 ............... 12,201,129 $43.75 2.8 $37
(a) The aggregate intrinsic value represents the amount by which the fair value of underlying stock exceeds the
option exercise price at November 30, 2010.
As of the dates of exercise, the total intrinsic value of options exercised in fiscal 2010, 2009 and 2008 was $17
million, $1 million and $5 million, respectively. As of November 30, 2010, there was $2 million of total
unrecognized compensation cost related to unvested stock options which will be recognized in 2011.
RSAs and RSUs
RSAs generally have the same rights as Carnival Corporation common stock, except for transfer restrictions and
forfeiture provisions. RSAs have been granted to certain officers and non-executive board members and either
have three or five-year cliff vesting or vest evenly over five years after the grant date. In addition, Carnival
Corporation and Carnival plc grant RSUs that vest evenly over five years or at the end of three or five years after
the grant date and accrue dividend equivalents on each outstanding RSU, in the form of additional RSUs, based
on dividends declared. The share-based compensation expense associated with RSAs and RSUs is based on the
quoted market price of the Carnival Corporation or Carnival plc shares on the date of grant, and is amortized to
expense using the straight-line method from the grant date through the earlier of the vesting date or the estimated
retirement eligibility date.
During the year ended November 30, 2010, RSA and RSU activity was as follows:
RSAs RSUs
Shares
Weighted-Average
Grant Date Fair
Value Shares
Weighted-Average
Grant Date Fair
Value
Outstanding at November 30, 2009 ............. 1,229,027 $39.37 2,406,653 $34.02
Granted ................................... 336,345 $34.57 864,883 $34.52
Vested .................................... (239,046) $49.77 (328,962) $47.75
Forfeited .................................. - $ - (115,773) $39.44
Outstanding at November 30, 2010 ............. 1,326,326 $36.28 2,826,801 $32.35
The total grant date fair value of RSAs and RSUs vested was $28 million, $18 million and $11 million in fiscal
2010, 2009 and 2008, respectively. As of November 30, 2010, there was $35 million of total unrecognized
compensation cost related to RSAs and RSUs. This cost is expected to be recognized over a weighted-average
period of 1.6 years.
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