Twenty-First Century Fox 2011 Annual Report Download - page 67

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Notes to the Consolidated Financial Statements (continued)
The following table summarizes information about the Company’s stock option transactions for all the Company’s stock option plans (options
in thousands):
Fiscal 2011 Fiscal 2010 Fiscal 2009
Options
Weighted average
exercise price Options
Weighted average
exercise price Options
Weighted average
exercise price
(in US$) (in A$) (in US$) (in A$) (in US$) (in A$)
Outstanding at the beginning of the year 45,121 $13.56 $22.99 80,536 $16.38 $26.80 85,745 $16.23 $26.74
Granted — — — — — — 1,103 7.48 *
Exercised (938) 10.17 16.02 (2,082) 12.23 22.35 (186) 10.37 16.35
Cancelled (11,596) 18.84 32.38 (33,333) 20.45 32.24 (6,126) 12.95 20.36
Outstanding at the end of the year(1) 32,587 $11.78 $19.85 45,121 $13.56 $22.99 80,536 $16.38 $26.80
Vested and unvested expected to vest at June 30, 2011 32,587
Exercisable at the end of the year 31,586 43,764 78,054
Weighted average fair value of options granted ** ** ** ** $ 1.44 *
(1) The intrinsic value of options outstanding at June 30, 2011 was $11 million. The intrinsic value of options outstanding for fiscal 2010 and 2009 was not material.
* Granted in U.S. dollars.
** No options were granted in fiscal 2011 or 2010.
The Company did not grant any stock options in fiscal 2011 or 2010. The fair value of each stock option grant is estimated on the date of
grant using the Black-Scholes option-pricing model with the following assumptions used for grants in the fiscal year ended June 30, 2009:
2009
Weighted average risk free interest rate 1.56%
Dividend yield 1.2%
Expected volatility 36.29%
Maximum expected life of options 7 years
The fair value of each outstanding stock option award under the 2004 Plan was estimated on the date of grant using the Black-Scholes option
valuation model that uses the following assumptions: expected volatility was based on historical volatility of the Class A Common Stock; expected
term of stock options granted was derived from the historical activity of the Company’s stock options and represented the period of time that
stock options granted were expected to be outstanding; weighted average risk-free interest rate was an average of the interest rates of U.S.
government bonds with similar lives on the dates of the stock option grants; and dividend yield was calculated as an average of a ten year history
of the Company’s yearly dividend divided by the fiscal year’s closing stock price.
The exercise prices for the stock options issued prior to the Company’s reorganization in November 2004 are in Australian dollars. The U.S.
dollar equivalents presented above have been converted at historical exchange rates; therefore, the proceeds from the exercise of these stock
options may differ due to fluctuations in exchange rates in periods subsequent to the date of the grant.
2011 Annual Report 65