Telstra 2013 Annual Report Download - page 182

Download and view the complete annual report

Please find page 182 of the 2013 Telstra annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 208

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197
  • 198
  • 199
  • 200
  • 201
  • 202
  • 203
  • 204
  • 205
  • 206
  • 207
  • 208

NOTES TO THE
FINANCIAL STATEMENTS
(CONTINUED)
180 Telstra Annual Report 2013 Telstra Corporation Limited and controlled entities
Telstra Growthshare Trust (continued)
(b) Long term incentive (LTI) plans (continued)
(v) Fair value of equity instruments granted
The fair value of LTI instruments granted during the financial year
was calculated using a valuation technique that is consistent with
the Black-Scholes methodology and utilises Monte Carlo
simulations. The following weighted average assumptions were
used in determining the valuation:
(*) The date the instruments become exercisable.
For financial year 2013 LTI FCF ROI and RTSR performance rights,
the fair value has been measured at a grant date of 22 October 2012
and has been allocated over the period for which the service is
received which commenced 1 July 2012.
The expected stock volatility is a measure of the amount by which
the price is expected to fluctuate during a period. This was based
on historical daily and weekly closing share prices.
The fair value of financial year 2013 ESP restricted shares is $4.58
based on the market value of Telstra shares at the allocation date
of 21 February 2013 and has been allocated over the period for
which the service is received which commenced 1 July 2012.
The fair value of financial year 2013 GMD Telstra Wholesale
restricted shares is $3.82 and is based on the market value of
Telstra shares at the allocation date of 17 August 2012.
27. EMPLOYEE SHARE PLANS (CONTINUED)
Growthshare
LTI FCF ROI
performance
rights
Growthshare
LTI RTSR
performance
rights
Growthshare
LTI FCF ROI
performance
rights
Growthshare
LTI RTSR
performance
rights
Oct 2012 Oct 2012 Dec 2011 Dec 2011
Share price . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4.03 $4.03 $3.33 $3.33
Risk free rate . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.51% 2.51% 3.13% 3.13%
Dividend yield . . . . . . . . . . . . . . . . . . . . . . . . . . 8.0% 8.0% 9.0% 9.0%
Expected stock volatility . . . . . . . . . . . . . . . . . . . . . 19% 19% 22% 22%
Expected life . . . . . . . . . . . . . . . . . . . . . . . . . . . (*) (*) (*) (*)
Expected rate of achievement of TSR performance hurdles. . . n/a 44% n/a 71%