Carnival Cruises 2003 Annual Report Download - page 28

25Carnival Corporation & plc
2003, 2002 and 2001 and Carnival plc options granted in
2003 were granted at an exercise price per share equal
to the fair market value of the Carnival Corporation com-
mon stock and Carnival plc ordinary shares, respectively,
on the date of grant. Carnival Corporation employee
options generally vest evenly over five years and have
a ten year term. Carnival plc employee options gener-
ally vest at the end of three years and have a ten year
term. Carnival Corporation director options granted
subsequent to fiscal 2000 vest evenly over five years
and have a ten year term. At November 30, 2003,
Carnival Corporation had 34.9 million shares and
Carnival plc had 4.8 million shares, which were avail-
able for future grants under the option plans.
A combined summary of the activity and status of the Carnival Corporation and Carnival plc stock option plans was
as follows:
Weighted-
Average Exercise Price Number of Options
Per Share Years Ended November 30,
2003 2002 2001 2003 2002 2001
Outstanding options—beginning of year . . . . . . . . . . . $29.26 $28.95 $26.80 11,828,958 12,774,293 8,840,793
Carnival plc outstanding options at April 17, 2003(a) . . . $19.64 5,523,013
Options granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $30.88 $26.54 $26.44 5,464,109 33,000 6,580,250
Options exercised(b) . . . . . . . . . . . . . . . . . . . . . . . . . . $17.35 $14.35 $11.70 (2,919,554) (404,615) (2,218,075)
Options canceled . . . . . . . . . . . . . . . . . . . . . . . . . . . . $28.64 $32.80 $35.15 (598,547) (573,720) (428,675)
Outstanding options—end of year(e) . . . . . . . . . . . . . . $28.79 $29.26 $28.95 19,297,979(c) 11,828,958 12,774,293
Options exercisable—end of year . . . . . . . . . . . . . . . . $27.68 $28.71 $25.96 7,848,335(d) 4,775,894 2,972,498
(a) All Carnival plc unvested options outstanding on the date the DLC transaction was completed vested fully on such date, except
for 1.3 million options, which were granted on April 15, 2003.
(b) Included 1.8 million Carnival plc options in 2003, of which 1.0 million had a sterling denominated exercise price.
(c) Included 3.6 million of Carnival plc options at a weighted-average exercise price of $20.89 per share, based on the November 30,
2003 U.S. dollar to sterling exchange rate.
(d) Included 2.2 million of Carnival plc options at a weighted-average exercise price of $18.06 per share.
(e) On December 1, 2003, as a result of the Princess cruise operations being transferred to the Carnival Corporation side of the DLC
structure, options to purchase 567,000 shares of Carnival plc vested immediately, and the termination date of 1.5 million Carnival
plc exercisable options were shortened to the earlier of 12 months after the December 1, 2003 reorganization date or 42 months
after the date of grant. All such changes have been made pursuant to the original terms of the Carnival plc plan.
Combined information with respect to outstanding and exercisable Carnival Corporation and Carnival plc stock
options at November 30, 2003 was as follows:
Options Outstanding Options Exercisable
Weighted- Weighted- Weighted-
Average Average Average
Exercise Remaining Exercise Exercise
Price Range Shares Life (Years) Price Shares Price
$ 1.94–$ 2.25. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,980 (a) $ 2.07 30,980 $ 2.07
$10.59–$15.00. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 735,102 5.4 $13.54 735,102 $13.54
$16.28–$22.57. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,477,849 7.1 $20.71 2,617,539 $19.70
$23.04–$27.88. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,714,089 8.4 $26.44 1,319,694 $25.00
$28.21–$34.91. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,518,009 8.4 $32.12 1,172,570 $30.27
$36.72–$41.34. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102,000 4.8 $38.09 97,600 $38.06
$43.56–$48.56. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,719,950 5.7 $44.36 1,874,850 $44.50
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,297,979 7.6 $28.79 7,848,335 $27.68
(a) These stock options do not have an expiration date.