Royal Caribbean Cruise Lines 2002 Annual Report Download - page 36

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
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ROYAL CARIBBEAN CRUISES LTD.
Our debt agreements contain covenants that require us, among other things, to maintain minimum
liquidity, net worth, and fixed charge coverage ratio and limit our debt to capital ratio. We are in
compliance with all covenants as of December 31, 2002. Following is a schedule of annual matu-
rities on long-term debt as of December 31, 2002 for each of the next five years (in thousands):
Year
2003 $ 122,544
2004 (1) 364,385
2005 (2) 1,660,941
2006 713,361
2007 350,878
(1) Includes $51.8 million related to our Zero Coupon Convertible Notes. This amount represents the $397.6 million accret-
ed value of the notes as of May 18, 2004, the first date holders may require us to purchase any outstanding notes net of
a $345.8 million loan facility available to us to satisfy this obligation. We may choose to pay any amounts in cash or com-
mon stock or a combination thereof.
(2) Includes the $697.2 million accreted value of our Liquid Yield Option™ Notes as of February 2, 2005, the first date hold-
ers may require us to purchase any outstanding notes. We may choose to pay any amounts in cash or common stock
or a combination thereof.
NOTE 7. SHAREHOLDERS' EQUITY
In April 2000, we redeemed all outstanding shares of our convertible preferred stock and divi-
dends ceased to accrue.
Our Employee Stock Purchase Plan, which has been in effect since January 1, 1994, facilitates
the purchase by employees of up to 800,000 shares of common stock. Offerings to employees
are made on a quarterly basis. Subject to certain limitations, the purchase price for each share
of common stock is equal to 90% of the average of the market prices of the common stock as
reported on the New York Stock Exchange on the first business day of the purchase period and
the last business day of each month of the purchase period. Shares of common stock of
25,649, 33,395 and 40,838 were issued under the Employee Stock Purchase Plan at a weighted-
average price of $17.34, $17.69 and $23.09 during 2002, 2001 and 2000, respectively.
Under an executive compensation program approved in 1994, we will award to a trust 10,086
shares of common stock per quarter, up to a maximum of 806,880 shares. We issued 40,344
shares each year under the program during 2002, 2001 and 2000.
Compensation expense related to our "Taking Stock in Employees" program, which was dis-
continued effective December 31, 2001, was $1.6 million and $2.1 million in 2001 and 2000,
respectively. Under the plan, employees were awarded five shares of our stock, or the cash
equivalent, at the end of each year of employment.
We have three Employee Stock Option Plans which provide for awards to our officers, direc-
tors and key employees of options to purchase shares of our common stock. During 2001, two
of the Employee Stock Option Plans were amended to increase the number of shares reserved
for issuance by a total of 8,000,000 shares of common stock between the two plans. Options
are granted at a price not less than the fair value of the shares on the date of grant. Options
expire not later than ten years after the date of grant and generally become exercisable in full
over three or five years after the grant date.