BT 1999 Annual Report Download - page 89

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88
Number of
ordinary shares
))))!!!!!!0051111
Normal
dates of Option price 1999 1998
exercise per share millions millions
00000005
Savings-related schemes:
1998 320p –45
1999 341p 25 27
1999 300p 78
2000 404p 55
2000 306p 43 47
2001 267p 64 68
00000005
Number of
ordinary shares
))))!!!!!!0051111
Normal
dates of Option price 1999 1998
exercise per share millions millions
00000005
2001 583p 4–
2002 359p 50 53
2003 518p 39 –
Other share option schemes:
1993-2009 289p to 1053p 68
00000005
Total options outstanding 243 261
00000005
31. Employee share schemes (continued)
In the period 1 April 1999 to 25 May 1999, no share options were granted, and options over one million shares were exercised
or lapsed.
During the year ended 31 March 1999, BT granted options over 46 million shares (1998 – 60 million, 1997 – 79 million)
substantially all under the employee sharesave schemes. The weighted average fair value of share options granted during the year
ended 31 March 1999 has been estimated on the date of grant using the Black-Scholes option pricing model. The following
weighted average assumptions were used in that model: an expected life extending one month later than the first exercise date;
estimated annualised dividend yield of approximately 3% (1998 – 5%, 1997 – 5%); risk free interest rates of 7% (1998 – 7%, 1997
– 7%) on options exercisable three years after the date of grant and 7% (1998 – 8%, 1997 – 8%) on options exercisable five years
after the date of grant; and expected volatility of approximately 30% (1998 – 18%, 1997 – 18%).
The weighted average fair value of the share options granted in the year ended 31 March 1999 was 313p (1998 – 80p, 1997 –
85p) for options exercisable three years after the date of grant and 309p (1998 – 120p, 1997 – 107p) for options exercisable five
years after the date of grant. The total value of share options granted by BT in the year ended 31 March 1999 was £139m (1998 –
£70m, 1997 – £83m). In accordance with UK accounting practices, no compensation expense is recognised for the fair value of
options granted. See United States Generally Accepted Accounting Principles – IV Accounting for share options for the treatment
under US GAAP.
Options granted, exercised and lapsed under these share option schemes during the years ended 31 March 1997, 1998 and 1999
and options exercisable at 31 March 1997, 1998 and 1999 were as follows:
Savings Other share Weighted
related option Exercise average
schemes schemes Total price exercise
millions millions millions range price
0000000!!!0111!!!0111!!!0111!!!1110111!!!0111%
Outstanding, 31 March 1996 238 19 257 211p–460p 294p
Granted 79 – 79 267p–300p 271p
Exercised (61) (3) (64) 211p–430p 251p
Lapsed (7) (2) (9) 244p–430p 299p
0000000011!!!0111!!!0111!!!0111!!!1110111!!!0111
Outstanding, 31 March 1997 249 14 263 243p–460p 297p
Granted 60 – 60 359p–596p 363p
Exercised (46) (6) (52) 243p–430p 275p
Lapsed (10) – (10) 243p–430p 313p
0000000011!!!0111!!!0111!!!0111!!!1110111!!!0111
Outstanding, 31 March 1998 253 8 261 262p–596p 316p
Granted 45 1 46 518p–1053p 536p
Exercised (46) (3) (49) 262p–583p 321p
Lapsed (15) – (15) 265p–773p 328p
0000000011!!!0111!!!0111!!!0111!!!1110111!!!0111
Outstanding, 31 March 1999 237 6 243 267p–1053p 356p
0000000011!!!0111!!!0111!!!0111!!!1110111!!!0111
Exercisable, 31 March 1997 – 11 11 243p–460p 337p
Exercisable, 31 March 1998 – 7 7 262p–460p 362p
Exercisable, 31 March 1999 – 4 4 289p–460p 369p
0000000011!!!0111!!!0111!!!0111!!!1110111!!!0111
NOTES TO THE FINANCIAL STATEMENTS