Ryanair 2010 Annual Report Download - page 175

173
At March 31, 2010 the range of exercise prices and weighted average remaining contractual life of
outstanding and exercisable options was as follows:
Options outstanding Options exercisable
Range of
exercise
price (1)
Number
outstanding
M
Weighed-
average
remaining
contractual life
(years)
Weighted-
average
exercise
price (1)
Number
exercisable
M
Weighed-
average
remaining
contractual life
(years)
Weighted-
average
exercise
price (1)
2.21 – 3.21 31.4 2.79 2.74 12.7 1.01 2.54
3.77 – 4.99 4.4 2.81 4.83 1.5 0.47 4.99
35.8 2.79 3.00 14.2 0.96 2.80
The Company has accounted for its share option grants to employees at fair value, in accordance with
IFRS 2, using a binomial lattice model to value the option grants. This has resulted in a charge of 14.9 million
(2009: 13.8 million; 2008: 110.9 million) being recognised within the income statement in respect of employee
services rendered, which was based on 23.2 million share options within the scope of IFRS 2 (2009: 23.7
million; 2008: 19.3 million) as compared to the total share options disclosed above (as permitted by the
transitional rules in IFRS 1).
The weighted average fair value of the individual options granted during the years ended March 31,
2010, 2009 and 2008 were estimated, using a binomial lattice model, based on the following assumptions:
2009 2008 2008 2007
Date granted................................
................
Sept 18, 2008 June 11, 2007 June 08, 2007 Apr 07, 2006
Date of earliest exercise
..............................
Sept 18, 2013 June 11, 2012 July 03, 2008 Apr 07, 2011
Date of expiration ................................
.......
Sept 18, 2015 June 11, 2014 July 03, 2014 Apr 07, 2013
Fair value................................
....................
11.02 12.14 11.88 11.51
2009 2008 2008 2007
Assumptions:
Risk-free interest rate
................
3.9% 4.5% 4.1% 3.7%
Volatility (a)
..............................
40.0% 35.0% 35.0% 40.0%
Dividend yield
...........................
Nil Nil Nil Nil
Expected life (years)
.................
5.5 5.5 5.5 5.5
____________________________
(a) Historical daily volatility over a five-and-a-half-year period.
16 Other equity reserve
The total share based payments reserve at March 31, 2010 was 126.5 million (2009: 122.1 million;
2008: 118.3 million). The available-for-sale financial asset reserve at March 31, 2010 was 136.5 million (2009:
nil; 2008: nil). The total cash-flow hedge reserve amounted to 160.3 million at March 31, 2010 (2009: 1(2.0)
million; 2008: 1(142.2) million). Further details of the group’s derivatives are set out in Notes 5 and 11 to the
consolidated financial statements.
17 Analysis of operating revenues and segmental analysis
The Company is managed as a single business unit that provides low fares airline-related services,
including scheduled services, car hire services, and internet and other related services to third parties across a
European route network. The Company operates a single fleet of aircraft that is deployed through a single route
scheduling system.
As of April 1, 2009 the Company determines and presents operating segments based on the information
that internally is provided to Michael O’Leary, CEO, who is the Company’s Chief Operating Decision Maker
(CODM). When making resource allocation decisions the CODM evaluates route revenue and yield data,
however resource allocation decisions are made based on the entire route network and the deployment of the