Atari 2010 Annual Report Download - page 95

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ANNUAL FINANCIAL REPORT – REGISTRATION DOCUMENT
95
19.2. SHARE-BASED PAYMENT EXPENSE
The share-based payment expense recorded in the consolidated income statement for the years ended March 31, 2010
and 2009 breaks down as follows:
(€ millions) Year ended March
31, 2010 Year ended March
31, 2009
Grant of free Infogrames Entertainment shares 0.5 0.2
Infogrames Entertainment SA stock option plans 0.4 3.5
Atari Inc stock option plans - 0.1
Employer social security contributions on stock options 0.0 0.2
Incentive bonus (2.4) 2.4
Share-based payment expense (income) (1.6) 6.4
19.3 STOCK OPTIONS GRANTED TO EMPLOYEES
The Company grants stock options to officers and senior executives as well as other employees for their contribution to
the Group’s performance. At the grant date, the options’ exercise price is set close to the trading price of the Company’s
shares. The options granted have an eight-year life and a vesting period of between zero and three years.
The table below summarizes the information concerning the Company's current stock option plans:
Number of options
(in thousands) Average exercise
price
Number of
options
(in thousands)
Average
exercise price
Number
of
options
outstanding
at
the
beginning
of
the
year 275,613 18.2 275,658 19.0
Options granted (1) 2,495 36.3 317 13.1
Options cancelled (218,252) 11.9 (308) 54.7
Options exercised - -
Options forfeited (2,251) 335.0 (54) 806.8
Number of options outstanding at the end of the year 57,605 19.3 275,613 18.2
Of which, exercisable - - 70,322 36.1
2009-2010 2008-2009
Following the reverse stock split carried out on March 4, 2008 and the adjustments made to the stock option exercise
ratios on February 4, 2009, the exercise ratio for the Company’s stock options now corresponds to 100.51 options for
1 share.
(1) of which 836,234 stock options granted (potentially converted to 8,362 new shares) following January 22, 2010
financial operation adjustments. The average exercise price is €4.63 for the 1,659,696 stock options granted over the
period versus €99.54 for the 836,234 stock options resulting from the adjustment.
A €0.9 million expense was recorded in relation to these plans in the year ended March 31, 2010, including the cost of
employer social security contributions. The expense recorded in relation to these plans for the year ended
March 31, 2009 was €3.8 million.
19.4. FAIR VALUE OF OPTIONS GRANTED DURING THE YEAR
As explained in Note 2.17, the fair value of options is calculated on the grant date using the Black & Scholes option
pricing model. Subsequent changes in fair value are not recognized.
The Group used the following principal assumptions to determine the fair value of options granted by the Company in
fiscal year 2009-2010: