Virgin Media 2013 Annual Report Download - page 70

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VIRGIN MEDIA INC.
(See note 1)
Notes to Consolidated Financial Statements — (Continued)
December 31, 2013, 2012 and 2011
II - 45
The following table summarizes certain information related to the incentive awards granted or remeasured and exercised by
employees of our subsidiaries with respect to Liberty Global ordinary shares during the Successor period and Old Virgin Media
common stock during the Predecessor period:
Successor Predecessor
Period from
June 8 to
December 31,
2013
Period from
January 1 to
June 7, 2013
Year ended
December 31,
2012
Year ended
December 31,
2011
Assumptions used to estimate fair value of options,
SARs and performance-based share appreciation
rights (PSARs) granted:
Risk-free interest rate ................................................. 0.78% - 1.19% 0.40% - 1.42% 0.31% - 1.27% 0.13% - 2.97%
Expected life (a) ......................................................... 0.4 - 4.6 years 3.0 - 7.3 years 2.9 - 6.9 years 0.8 - 7.7 years
Expected volatility (a)................................................ 23.6% - 32.6% 31.1% - 50.9% 36.5% - 60.2% 34.3% - 69.5%
Expected dividend yield............................................. none 0.41% - 0.50% 0.65% - 0.69% 0.52% - 0.68%
Weighted average grant-date fair value per share
awards granted:
Options ....................................................................... $ 45.64 $ 29.13 $ 9.95 $ 10.44
SARs........................................................................... $ 15.57 $ — $ — $ —
PSARs ........................................................................ $ 16.67 $ — $ — $ —
Restricted share units (RSUs) .................................... $ 73.81 $ 39.39 $ 24.44 $ 19.81
Performance-based share units (PSUs) ...................... $ 68.08 $ 39.66 $ 24.46 $ 20.67
Total intrinsic value of options exercised (in millions)... £ 97.1 £ 57.0 £ 27.2 £ 31.1
Cash received by Liberty Global during the Successor
period and Old Virgin Media during the Predecessor
period from exercise of options (in millions).............. £ 47.8 £ 26.7 £ 18.1 £ 31.9
Income tax benefit related to share-based compensation
(in millions) ................................................................. £ 13.8 £ 5.9 £ 5.2 £ 2.9
______________
(a) The 2013 ranges shown for these assumptions exclude the awards for certain former employees of Virgin Media who were
expected to exercise their awards immediately or soon after the LG/VM Transaction. For these awards, the assumptions
used for expected life and volatility were essentially nil.
Share Incentive Plans — Liberty Global Ordinary Shares
Incentive Plans
As of December 31, 2013, Liberty Global was authorized to grant incentive awards under the Liberty Global Incentive Plan
and the VM Incentive Plan. Generally, the compensation committee of Liberty Global’s board of directors may grant non-qualified
share options, SARs, restricted shares, RSUs, cash awards, performance awards or any combination of the foregoing under any
of the incentive plans (collectively, awards). Ordinary shares issuable pursuant to awards made under these incentive plans will
be made available from either authorized but unissued shares or shares that have been issued but reacquired by Liberty Global.
Awards may be granted at or above fair value in any class of ordinary shares. As of December 31, 2013, the Liberty Global
Incentive Plan and the VM Incentive Plan had 238,907 and 12,017,912 ordinary shares available for grant, respectively.
In connection with the LG/VM Transaction, Liberty Global assumed the VM Incentive Plan. Awards under the VM Incentive
Plan issued prior to June 7, 2013 have a ten-year term and become fully exercisable within five years of continued employment.
Certain performance-based awards that were granted during the first quarter of 2013 were canceled upon completion of the LG/