Royal Caribbean Cruise Lines 2005 Annual Report Download - page 41

were issued under the ESPP at a weighted-average price of $40.83,
$39.34 and $19.56 during 2005, 2004 and 2003, 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 2005, 2004 and 2003.
We have three Employee Stock Option Plans which provide for
awards to our officers, directors and key employees of options to
purchase shares of our common stock. The plans consist of a 1990
Employee Stock Option Plan, a 1995 Incentive Stock Option Plan and
a 2000 Stock Award Plan. The 1990 Stock Option Plan and the 1995
Incentive Stock Option Plan terminated by their terms in March 2000
and February 2005, respectively. The 2000 Stock Award Plan, as
amended, provides for the issuance, in addition to nonqualified
stock options, of (i) incentive stock options, (ii) stock appreciation
rights, (iii) restricted stock, (iv) restricted stock units and (v) perform-
ance shares of up to 13,000,000 shares of our common stock.
During any calendar year, no one individual shall be granted awards
with respect to more than 500,000 shares. We awarded 160,574,
331,756 and 14,025 restricted stock units in 2005, 2004 and 2003,
respectively. Options and restricted stock units outstanding as of
December 31, 2005, vest over three to five years and four to five
years, respectively, from the date of grant. Generally, the shares are
forfeited if the recipient ceases to be a director or employee before
the shares vest. Options are granted at a price not less than the fair
value of the shares on the date of grant and expire not later than ten
years after the date of grant.
Stock options activity and information about stock options outstand-
ing are summarized in the following tables:
Stock Options Activity
2005 2004 2003
Weighted- Weighted- Weighted-
Average Average Average
Number Exercise Number EXercise Number Exercise
of options Price of Options Price of Options Price
Outstanding options
at January 1 7,592,741 $ 27.76 11,994,522 $ 23.28 15,234,577 $ 21.63
Granted 634,621 $ 47.69 973,769 $ 40.34 536,991 $ 25.59
Exercised (1,027,503) $ 21.49 (5,064,496) $ 19.39 (3,064,355) $ 14.89
Canceled (341,725) $ 38.70 (311,054) $ 30.02 (712,691) $ 25.72
Outstanding options
at December 31 6,858,134 $ 30.00 7,592,741 $ 27.76 11,994,522 $ 23.28
Exercisable options
at December 31 5,156,340 $ 27.34 5,368,655 $ 25.47 7,949,284 $ 23.53
Available for future grants
at December 31 3,432,602 5,766,889 6,793,185
Stock Options Outstanding
As of December 31, 2005
Outstanding Exercisable
Weighted- Weighted- Weighted-
Average Average Average
Exercise Number Remaining Exercise Number Exercise
Price Range of Options Life Price of Options Price
$ 9.55 - $ 20.30 2,050,467 5.38 years $ 13.45 1,934,742 $ 13.13
$ 21.71 - $ 28.88 1,667,021 4.57 years $ 25.95 1,413,259 $ 26.36
$28.88 - $ 40.06 1,274,139 6.91 years $ 37.39 551,986 $ 36.26
$40.06 - $ 52.95 1,866,507 5.65 years $ 46.74 1,256,353 $ 46.40
6,858,134 5.54 years $ 30.00 5,156,340 $ 27.34
Royal Caribbean Cruises Ltd 39
Notes to the Consolidated
Financial Statements (continued)