Carnival Cruises 2008 Annual Report Download - page 82

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F-23
A combined summary of Carnival Corporation and Carnival plc stock option activity during
the year ended November 30, 2008 was as follows:
Weighted- Weighted-Average Aggregate
Average Remaining Intrinsic
Shares Exercise Price Contractual Term Value (a)
(in years) (in millions)
Outstanding at
November 30, 2007 17,716,892 $44.22
Exercised (510,434) $29.38
Forfeited or expired (518,306) $44.82
Outstanding at
November 30, 2008 16,688,152 $42.03 4.2 $1
Exercisable at
November 30, 2008 13,771,397 $40.38 3.8 $1
(a) The aggregate intrinsic value represents the amount by which the fair value of underlying
stock exceeds the option exercise price at November 30, 2008.
As of the dates of exercise, the total intrinsic value of options exercised in fiscal
2008, 2007 and 2006 was $5 million, $31 million and $48 million, respectively. As of
November 30, 2008, there was $23 million of total unrecognized compensation cost related to
unvested stock options. This cost is expected to be recognized over a weighted-average
period of 1.9 years.
Restricted Stock Awards and Restricted Stock Units
RSAs generally have the same rights as Carnival Corporation common stock, except for
transfer restrictions and forfeiture provisions. Prior to fiscal 2006, unearned stock
compensation was recorded within shareholders' equity at the date of award based on the
quoted market price of the Carnival Corporation common stock on the date of grant. In fiscal
2006 upon adoption of SFAS No. 123(R), the $13 million of unearned stock compensation as of
November 30, 2005 was required to be charged against additional paid-in capital. RSAs have
been granted to certain officers and non-executive board members and either have three or
five-year cliff vesting or vest evenly over five years after the grant date. In addition,
Carnival Corporation and Carnival plc grant RSUs that vest evenly over five years or at the
end of three or five years after the grant date and accrue dividend equivalents on each
outstanding RSU, in the form of additional RSUs, based on dividends declared. The share-
based compensation expense associated with RSAs and RSUs is based on the quoted market price
of the Carnival Corporation or Carnival plc shares on the date of grant, and is amortized to
expense using the straight-line method from the grant date through the earlier of the vesting
date or the estimated retirement eligibility date.
During the year ended November 30, 2008, RSA and RSU activity was as follows:
Restricted Stock Awards Restricted Stock Units
Weighted- Weighted-
Average Average
Grant Date Grant Date
Shares Fair Value Shares Fair Value
Outstanding at
November 30, 2007 918,307 $45.39 737,439 $51.10
Granted 261,879 $41.58 806,800 $41.43
Vested (224,991) $31.41 (73,032) $52.22
Forfeited (37,417) $48.09
Outstanding at
November 30, 2008 955,195 $47.63 1,433,790 $45.68
The total grant date fair value of RSAs and RSUs vested was $11 million during fiscal
2008 and $9 million in each of 2007 and 2006. As of November 30, 2008, there was $33 million
of total unrecognized compensation cost related to RSAs and RSUs. This cost is expected to be
recognized over a weighted-average period of 1.8 years.