LensCrafters 2012 Annual Report Download - page 262

ANNUAL REPORT 2012> 176 |
The fair value of the stock options was estimated on the grant date using the binomial
model and following weighted average assumptions:
2012
Ordinary Plan -
for citizens
resident
in the U.S.
2012
Ordinary Plan -
for citizens
not resident
in the U.S. PSP 2012
Share price at the grant date (in Euro) 28.23 28.23 28.23
Expected option life 5.61 years 5.61 years 3 years
Volatility 35.70% 35.70% -
Dividend yield 1.94% 1.94% 1.94%
Risk-free interest rate 1.40% 1.40% -
Expected volatilities are based on implied volatilities from traded share options on the
Company’s stock, historical volatility of the Company’s share price and other factors.
The expected option life is based on the historical exercise experience for the Company
based upon the date of grant and represents the period of time that options granted are
expected to be outstanding. The risk-free rate for periods within the contractual life of the
option is based on the U.S. Federal Treasury or European government bond yield curve,
as appropriate, in effect at the time of grant.
The weighted average fair value of the stock options under plans granted in 2012 was
Euro8.11. The fair value of the units granted under the 2012 PSP was Euro26.65 per unit.