Royal Caribbean Cruise Lines 2013 Annual Report Download - page 89
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Stock option activity and information about stock options outstanding are summarized in the following table:
Stock Option Activity
Number
ofOptions
Weighted-
Average
Exercise
Price
Weighted-
Average
Remaining
Contractual
Term
Aggregate
IntrinsicValue()
(years) (in thousands)
Outstanding at January 1, 2013
Granted — —
Exercised ()
C anc ele d ()
Outstanding at December 31, 2013
Vested and expected to vest at December 31, 2013
Options Exercisable at December 31, 2013
() The intrinsic value represents the amount by which the fair value of stock exceeds the option exercise price as of December 31, 2013.
The weighted-average estimated fair value of stock
options granted was $9.90 and $21.39 during the
years ended December 31, 2012 and 2011, respectively.
The total intrinsic value of stock options exercised
during the years ended December 31, 2013, 2012 and
2011 was $17.5 million, $15.3 million and $17.3 million,
respectively. As of December 31, 2013, there was
approximately $0.7 million of total unrecognized com-
pensation cost, net of estimated forfeitures, related to
stock options granted under our stock incentive plans
which is expected to be recognized over a weighted-
average period of 0.4 years.
Restricted stock units are converted into shares of
common stock upon vesting or, if applicable, settle
on a one-for-one basis. The cost of these awards is
determined using the fair value of our common stock
on the date of the grant, and compensation expense
is recognized over the vesting period. Restricted
stock activity is summarized in the following table:
Restricted Stock Activity
Number
of Awards
Weighted-
Average
Grant Date
Fair Value
Non-vested share units at
January 1, 2013
Granted
Vested ()
Canceled ()
Non-vested share units
expected to vest as of
December 31, 2013
The weighted-average estimated fair value of restricted
stock units granted during the year ended December
31, 2012, and 2011 were $30.03 and $45.67, respec-
tively. The total fair value of shares released on the
vesting of restricted stock units during the years
ended December 31, 2013, 2012 and 2011 was $19.2
million, $18.8 million and $25.1 million, respectively.
As of December 31, 2013, we had $9.4 million of total
unrecognized compensation expense, net of esti-
mated forfeitures, related to restricted stock unit
grants, which will be recognized over the weighted-
average period of 1.19 years.
Performance stock awards are converted into shares
of common stock upon vesting on a one-for-one
basis. We estimate the fair value of each performance
share when the grant is authorized and the related
service period has commenced. We remeasure the
fair value of our performance shares in each subse-
quent reporting period until the grant date has
occurred, which is the date when the performance
conditions are satisfied. We recognize compensation
cost over the vesting period based on the probability
of the service and performance conditions being
achieved adjusted for each subsequent fair value
measurement until the grant date. If the specified
service and performance conditions are not met,
compensation expense will not be recognized and
any previously recognized compensation expense
will be reversed. Performance stock activity is sum-
marized in the following table:
Performance Stock Activity
Number
of Awards
Weighted-
Average
Grant Date
Fair Value
Non-vested share units at
January 1, 2013
Granted
Vested ()
Canceled ()
Non-vested share units
expected to vest as of
December 31, 2013
As of December 31, 2013, we had $8.1 million of total
unrecognized compensation expense, net of estimated
forfeitures, related to performance share unit grants,
which will be recognized over the weighted-average
period of 1.6 years.