Carnival Cruises 2014 Annual Report Download - page 41

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During the year ended November 30, 2014, TBS, PBS and MBS award activity was as follows:
TBS Awards PBS Awards MBS Awards
Shares
Weighted-
Average
Grant Date Fair
Value Shares
Weighted-
Average
Grant Date Fair
Value Shares
Weighted-
Average
Grant Date Fair
Value
Outstanding at November 30, 2013 3,026,701 $37.01 510,839 $35.91 93,457 $47.03
Granted ..................... 1,184,099 $41.89 228,506 $36.63 176,763 $73.14
Vested ...................... (862,232) $45.97 (31,698) $33.29 - $ -
Forfeited .................... (138,518) $39.27 (134,860) $42.40 - $ -
Outstanding at November 30, 2014 3,210,050 $36.30 572,787 $34.82 270,220 $64.11
The total grant date fair value of TBS, PBS and MBS awards vested was $41 million, $42 million and $52
million in 2014, 2013 and 2012, respectively. As of November 30, 2014, there was $55 million of total
unrecognized compensation cost related to TBS, PBS and MBS awards. As of November 30, 2014, the total
unrecognized compensation costs are expected to be recognized over a weighted-average period of 0.9 years for
both TBS and PBS awards and 1.5 years for MBS awards.
Stock Option Plans
In 2007 and 2008, the Committee decided to cease granting stock options to our employees and non-executive
board members, respectively, and to instead grant them TBS awards. A combined summary of Carnival
Corporation and Carnival plc stock option activity during the year ended November 30, 2014 related to stock
options previously granted 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, 2013 ................ 3,922,172 $48.42
Exercised .................................... (17,889) $39.87
Forfeited or expired ............................ (2,845,027) $46.88
Outstanding and exercisable at November 30, 2014 . . . 1,059,256 $51.36 0.4 $ -
(a) The aggregate intrinsic value represents the amount by which the fair value of underlying stock exceeds the
option exercise price at November 30, 2014.
As of the dates of exercise, there was a nominal intrinsic value of options exercised in 2014 and a total of $3
million and $7 million in 2013 and 2012, respectively. As of November 30, 2014, 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, 2014 and 2013, we assumed
weighted-average discount rates of 3.5% and 4.0%, respectively. The net asset or net liability positions under
these single-employer defined benefit pension plans are not material.
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