Holiday Inn 2013 Annual Report Download - page 150

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28. Share-based payments continued
The Group recognised a cost of $22m (2012 $22m, 2011 $25m) in operating profit and $nil (2012 $1m, 2011 $nil) within exceptional
administrative expenses related to equity-settled share-based payment transactions during the year, net of amounts borne by the
SystemFund.
The aggregate consideration in respect of ordinary shares issued under option schemes during the year was $5m (2012 $10m, 2011 $8m).
The following table sets forth awards and options granted during 2013. No awards were granted under the Executive Share Option Plan,
SharesavePlan or US Employee Stock Purchase Plan during the year.
APP LTIP
Number of shares awarded in 2013 318,911 2,227,293
The Group uses separate option pricing models and assumptions depending on the plan. The following tables set out information about
awards granted in 2013, 2012 and 2011:
APP LTIP
2013
Valuation model Binomial
Monte Carlo
Simulation and
Binomial
Weighted average share price 1,928.0p 1,913.0p
Expected dividend yield 2.63% 2.59%
Risk-free interest rate 0.27%
Volatility128%
Term (years) 3.0 3.0
ABP LTIP
2012
Valuation model Binomial
Monte Carlo
Simulation and
Binomial
Weighted average share price 1,440.0p 1,440.0p
Expected dividend yield 2.95% 2.99%
Risk-free interest rate 0.59%
Volatility131%
Term (years) 3.0 3.0
ABP LTIP
2011
Valuation model Binomial
Monte Carlo
Simulation and
Binomial
Weighted average share price 1,415.0p 1,281.0p
Expected dividend yield 2.14% 2.78%
Risk-free interest rate 1.88%
Volatility139%
Term (years) 3.0 3.0
1
The expected volatility was determined by calculating the historical volatility of the Company’s share price corresponding to the expected life of the shareaward.
148 IHG Annual Report and Form 20-F 2013
Notes to the Group Financial Statements continued