HSBC 2010 Annual Report Download - page 358

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
39 – Share capital and other equity instruments / 40 – Notes on the statement of cash flows
356
Options outstanding over HSBC Holdings ordinary shares under the HSBC Finance share plan
Number of
HSBC Holdings
ordinary shares Period of exercise Exercise price
31 December 2010 .......................................................... 11,117,826 2011 to 2012 US$9.29 – 18.62
31 December 20091 .......................................................... 18,105,959 2010 to 2012 US$9.29 – 18.62
31 December 2008 ........................................................... 20,681,582 2009 to 2012 US$10.66 – 21.37
1 During 2009, the number and prices of unexercised share options were adjusted for the rights issue.
HSBC Bank Bermuda plans
Following the acquisition of HSBC Bank Bermuda in 2004, all outstanding employee share options over HSBC Bank
Bermuda shares were converted into rights to receive HSBC Holdings ordinary shares based on the consideration of
US$40 for each HSBC Bank Bermuda share and the average closing price of HSBC Holdings ordinary shares,
derived from the London Stock Exchange Daily Official List, for the five business days preceding the closing date of
the acquisition. During 2010, options over 4,781 HSBC Holdings ordinary shares were exercised (2009: 18,153) and
satisfied by delivery from the HSBC (Bank of Bermuda) Employee Benefit Trust 2004. During 2010, options over
137,888 (2009: 24,673) HSBC Holdings ordinary shares lapsed. At 31 December 2010, the HSBC (Bank of
Bermuda) Employee Benefit Trust 2004 held 2,108,830 (2009: 2,113,611) HSBC Holdings ordinary shares which
may be used to satisfy the exercise of options.
Options outstanding over HSBC Holdings ordinary shares under the HSBC Bank Bermuda share plan
Number of HSBC
Holdings
ordinary shares Period of exercise Exercise price
31 December 2010 .......................................................... 2,339,033 2011 to 2013 US$9.32 – 15.99
31 December 20091........................................................... 2,481,702 2010 to 2013 US$6.13 – 15.99
31 December 2008 ........................................................... 2,205,321 2009 to 2013 US$7.04 – 18.35
1 During 2009, the number and prices of unexercised share options were adjusted for the rights issue.
Maximum obligation to deliver HSBC Holdings ordinary shares
At 31 December 2010, the maximum obligation to deliver HSBC Holdings ordinary shares under all of the above
option arrangements, together with awards of Performance Shares and Restricted Shares under the HSBC Share Plan,
was 558,187,326 (2009: 559,960,290). The total number of shares at 31 December 2010 held by employee benefit
trusts that may be used to satisfy such obligations to deliver HSBC Holdings ordinary shares was 79,541,700 (2009:
134,903,061).
40 Notes on the statement of cash flows
Non-cash items included in profit before tax
HSBC HSBC Holdings
2010 2009 2008 2010 2009
US$m US$m US$m US$m US$m
Depreciation, amortisation and impairment ..................... 2,801 2,538 13,367 2 5,947
Gains arising from dilution of interests in associates .......... (188) – – – –
Revaluations on investment property ............................... (93) 24 92 – –
Share-based payment expense .......................................... 812 683 819 28 21
Loan impairment losses gross of recoveries and
other credit risk provisions ........................................... 15,059 27,378 25,771 – –
Provisions ......................................................................... 680 669 591 – –
Impairment of financial investments ................................ 105 358 1,042 113 –
Charge for defined benefit plans ...................................... 526 192 490 – –
Accretion of discounts and amortisation of premiums .... (815) (458) (867) 42 6
18,887 31,384 41,305 185 5,974