Experian 2009 Annual Report Download - page 125

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123Experian Annual Report 2009
Introduction
2 – 7
Business review
8 – 43
Governance
44 – 72
Financial statements
Group nancial statements
27. Share-based payment arrangements (continued)
(ii) Information relating to share grant valuation techniques
The majority of the grants under the Experian share award plans were made on the rst day of trading for Experian plc shares
in October 2006 and trading was particularly volatile on that day. The weighted average share price for that day’s trading was
used to determine the value of demerger share awards. For the former GUS plans the value of awards is determined as the
market closing price on the date awarded grants are issued to participants. For the Experian Reinvestment Plan and the
former GUS Co-Investment Plan, this occurs after the rst year of performance is assessed. Where appropriate market-based
performance conditions are included in the fair value measurement on grant date and are not revised for actual performance.
Participants in the share award plans have an entitlement to dividend distributions on awarded shares from the issue date
until the date of vesting. The market price on the day of valuation is considered inclusive of such future dividend distributions
and no modications are made for dividend distributions or other factors.
(iii) Reconciliation of Experian plc share awards outstanding
Number Number
of awards of awards
2009 2008
m m
Awards outstanding at 1 April 23.7 24.6
New grants 0.7 2.1
Forfeitures (1.8) (2.5)
Expired awards (0.6) –
Vesting (1.2) (0.5)
Awards outstanding at 31 March 20.8 23.7
Share awards granted in the year had a weighted average fair value of £3.69 (2008: £5.67).
(c) Summary of the total cost of share-based compensation
2009 2008
US$m US$m
Share options 10 15
Share awards 43 51
Total expense recognised (all equity settled) 53 66
Costs of associated social security obligations1 2 10
Total expense recognised in Group income statement 55 76
The expense is reported as follows:
Employee cost included in Benchmark PBT 21 22
Charge in respect of demerger-related equity incentive plans (excluded from Benchmark PBT) 32 43
Exceptional item – other costs incurred relating to the demerger – 1
Total expense recognised (all equity settled) 53 66
Costs of associated social security obligations:
Included in Benchmark PBT 2 4
Excluded from Benchmark PBT – 6
Total expense recognised in Group income statement 55 76
1. The costs of associated social security obligations include the costs of derivatives, in the form of equity swaps, entered into in connection with such obligations.