Carnival Cruises 2004 Annual Report Download - page 30

Carnival Corporation & plc 27
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,
2004 2003 2002 2004 2003 2002
Outstanding options—beginning of year . . . . . . . . . . $28.79 $29.26 $28.95 19,297,979 11,828,958 12,774,293
Carnival plc outstanding options at April 17, 2003(a) . . . $19.64 5,523,013
Options granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . $47.52 $30.88 $26.54 5,306,802(c) 5,464,109 33,000
Options exercised(b) . . . . . . . . . . . . . . . . . . . . . . . . . . $25.23 $17.35 $14.35 (5,686,484)(c,d) (2,919,554) (404,615)
Options canceled . . . . . . . . . . . . . . . . . . . . . . . . . . . $30.17 $28.64 $32.80 (714,355) (598,547) (573,720)
Outstanding options—end of year . . . . . . . . . . . . . . . $35.61 $28.79 $29.26 18,203,942(e) 19,297,979(e) 11,828,958
Options exercisable—end of year . . . . . . . . . . . . . . . $32.05 $27.68 $28.71 5,920,890(f) 7,848,335(f) 4,775,894
(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 2.0 million and 1.8 million Carnival plc options in 2004 and 2003, of which 0.8 million and 1.0 million had a sterling
denominated exercise price, respectively.
(c) During 2004, as a result of Costa being transferred to the Carnival plc side of the DLC structure, options to purchase 973,000
shares of Carnival Corporation vested immediately and their termination dates were accelerated to 2004. These vested options,
along with all of Costa employees’ already exercisable options, were exercised in 2004 to avoid unduly burdensome taxes. In
2004, Carnival plc granted 1.1 million options at an exercise price equal to the fair market value of Carnival plc ordinary shares on
the grant date, to replace Costa options, whose termination was accelerated to 2004. See Note 2.
(d) 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 657,000 shares of Carnival plc vested immediately, and the termination dates on all Princess
employees’ Carnival plc exercisable options were accelerated to 2004. All such changes have been made pursuant to the original
terms of the Carnival plc plan. In January 2005, Carnival Corporation granted 1.4 million options at an exercise price per share
equal to the fair market value of Carnival Corporation common stock on the grant date, to replace those Princess options which
terminated in 2004 prior to their original termination dates.
(e) Included 3.3 million and 3.6 million of Carnival plc options at a weighted-average exercise price of $38.42 and $20.89 per share,
based on the November 30, 2004 and 2003 U.S. dollar to sterling exchange rate, respectively.
(f) Included 0.9 million and 2.2 million of Carnival plc options at a weighted-average exercise price of $22.15 and $18.06 per share,
based on the November 30, 2004 and 2003 U.S. dollar to sterling exchange rate, respectively.
Combined information with respect to outstanding and exercisable Carnival Corporation and Carnival plc stock
options at November 30, 2004 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46,071 4.0 $13.11 46,071 $13.11
$16.28–$23.03 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,512,830 6.4 $21.48 1,358,328 $20.85
$24.36–$27.88 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,388,674 7.3 $26.98 1,246,686 $26.22
$28.21–$34.88 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,840,230 7.6 $31.95 1,117,990 $30.69
$36.72–$41.34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102,000 3.8 $38.08 102,000 $38.09
$43.56–$48.56 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,393,814 6.1 $44.58 2,018,835 $44.51
$48.69–$54.46 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,889,343 9.7 $49.46
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,203,942 7.5 $35.61 5,920,890 $32.05
(a) These stock options do not have an expiration date.