Holiday Inn 2015 Annual Report Download - page 137

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26. Share-based payments continued
The Group recognised a cost of $19m (2014: $21m, 2013: $22m) in operating profit 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 $nil (2014: $nil, 2013: $5m).
The following table sets forth awards granted during 2015:
APP LTIP
Number of shares awarded in 2015 265,285 1,803,308
The Group uses separate option pricing models and assumptions depending on the plan. The following table sets out information about awards
granted in 2015, 2014 and 2013:
APP LTIP
Binomial valuation model
Monte Carlo Simulation and
Binomial valuation model
2015 2014 2013 2015 2014 2013
Weighted average share price 2,565.0p 1,925.0p 1,928.0p 2,634.0p 1,916.0p 1,913.0p
Expected dividend yield n/a n/a 2.63% 2.34% 2.55% 2.59%
Risk-free interest rate 0.59% 1.29% 0.27%
Volatilitya22% 28% 28%
Term (years) 3.0 3.0 3.0 3.0 3.0 3.0
a 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.
Movements in the awards outstanding under the schemes are as follows:
APP
Number
of shares
thousands
LTIP
Number
of shares
thousands
Outstanding at 1 January 2013 622 7,160
Granted 319 2,227
Vested (72) (2,206)
Lapsed or cancelled (29) (406)
Outstanding at 31 December 2013 840 6,775
Granted 305 2,171
Vested (310) (1,447)
Share capital consolidation (38) –
Lapsed or cancelled (29) (1,379)
Outstanding at 31 December 2014 768 6,120
Granted 265 1,803
Vested (307) (1,278)
Lapsed or cancelled (37) (1,370)
Outstanding at 31 December 2015 689 5,275
Fair value of awards granted during the year (cents) APP LTIP
2015 3,874.5 1,734.5
2014 3,134.6 1,202.1
2013 2,873.4 1,127.9
Weighted average remaining contract life (years) APP LTIP
At 31 December 2015 1.2 1.1
At 31 December 2014 1.1 1.1
At 31 December 2013 1.1 1.1
The above awards do not vest until the performance and service conditions have been met.
STRATEGIC REPORT GOVERNANCE GROUP FINANCIAL STATEMENTS ADDITIONAL INFORMATIONPARENT COMPANY FINANCIAL STATEMENTS
135IHG Annual Report and Form 20-F 2015