HSBC 2011 Annual Report Download - page 332

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
9 – Share-based payments / 10 – Tax
330
Savings-related share
option plans
HSBC Holdings Group
share option plan
HSBC Finance share
option plan
Number
(000s)
WAEP1
£
Number
(000s)
WAEP1
£
Number
(000s)
WAEP1
US$
2010
Outstanding at 1 January ...................................................... 172,526 3.69 157,719 7.12 2,736 9.29
Granted during the year2 ....................................................... 22,017 5.39 – – – –
Exercised during the year3 .................................................... (16,830) 4.18 (1,015) 6.08 (307) 9.29
Expired during the year ........................................................ (19,858) 4.44 (3,946) 7.36 – –
Outstanding at 31 December ................................................ 157,855 3.87 152,758 7.12 2,429 9.29
At 31 December 2010
Exercise price range (£):
3.00 – 4.50 ......................................................................... 126,198 – –
4.51 – 6.00 ......................................................................... 26,036 – –
6.01 – 7.50 ......................................................................... 3,864 119,439 –
7.51 – 9.29 ......................................................................... 1,757 33,319 2,429
Of which exercisable ............................................................ 1,883 152,758 2,429
Weighted average remaining contractual life (years) .......... 2.76 2.33 1.89
1 Weighted Average Exercise Price.
2 The weighted average fair value of options granted during the year was US$2.11 (2010: US$2.41).
3 The weighted average share price at the date the options were exercised was US$8.65 (2010: US$10.08) and US$9.51 (2010: US$10.26)
for the Savings-related share option plans and HSBC Holdings Group share option plan respectively.
10 Tax
Tax charged to the income statement
2011 2010 2009
US$m US$m US$m
Current tax
UK corporation tax ..................................................................................................... 820 383 206
– for this year ........................................................................................................... 462 404 280
– adjustments in respect of prior years .................................................................... 358 (21) (74)
Overseas tax1 .............................................................................................................. 4,255 3,328 1,847
– for this year ........................................................................................................... 4,155 3,235 1,826
– adjustments in respect of prior years .................................................................... 100 93 21
5,075 3,711 2,053
Deferred tax ................................................................................................................ (1,147) 1,135 (1,668)
Origination and reversal of temporary differences ................................................. (1,178) 1,176 (1,672)
Effect of changes in tax rates .................................................................................. (3) 31 (10)
Adjustments in respect of prior years ...................................................................... 34 (72) 14
Total tax charged to the income statement.................................................................. 3,928 4,846 385
1 Overseas tax included Hong Kong profits tax of US$997m (2010: US$962m; 2009 US$783m). The Hong Kong tax rate applying to the
profits of subsidiaries assessable in Hong Kong was 16.5% (2010: 16.5%; 2009: 16.5%). Other overseas subsidiaries and overseas
branches provided for taxation at the appropriate rates in the countries in which they operate.