Ryanair 2011 Annual Report Download - page 171

169
The weighted average fair value of the individual options granted during the years ended March 31,
2009 were estimated, using a binomial lattice model, based on the following assumptions. There were no share
options granted during the years ended March 31, 2010 and 2011.
2009
Date granted ................................
................................
Sept 18, 2008
Date of earliest exercise
................................
Sept 18, 2013
Date of expiration ................................
................................
Sept 18, 2015
Fair value ................................
................................
11.02
2009
Assumptions:
Risk-free interest rate ................................
................................
3.9%
Volatility (a) ................................
................................
40.0%
Dividend yield ................................
................................
Nil
Expected life (years) ................................
................................
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, 2011 was 125.3 million (2010: 126.5 million;
2009: 122.1 million). The available-for-sale financial asset reserve at March 31, 2011 was 134.3 million (2010:
136.5 million; 2009: nil). The total cash-flow hedge reserve amounted to 1257.4 million at March 31, 2011
(2010: 160.3 million; 2009: 1(2.0) 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, 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.
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 entire aircraft fleet,
which are uniform in type. The objective in making resource allocation decisions is to maximise consolidated
financial results, rather than results on individual routes within the network.
The CODM assesses the performance of the business based on the consolidated adjusted profit/ (loss)
after tax of the Company for the year. This measure excludes the effects of certain income and expense items,
which are unusual, by virtue of their size and incidence, in the context of the Company’s ongoing core
operations, such as the impairment of a financial asset investment, accelerated depreciation related to aircraft
disposals and Icelandic volcanic ash related costs.
All segment revenue is derived wholly from external customers and, as the Company has a single
reportable segment, inter-segment revenue is zero.
The Company’s major revenue-generating asset class comprises its aircraft fleet, which is flexibly
employed across the Company’s integrated route network and is directly attributable to its reportable segment
operations. In addition, as the Company is managed as a single business unit, all other assets and liabilities have
been allocated to the Company’s single reportable segment.
There have been no changes to the basis of segmentation or the measurement basis for the segment
profit or loss since the prior year.