Ryanair 2012 Annual Report Download - page 171

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At March 31, 2012 the range of exercise prices and weighted average remaining contractual life of
outstanding and exercisable options was as follows:
Options outstanding
Options exercisable
Range of
exercise
price (€)
Number
outstanding
M
Weighted-
average
remaining
contractual life
(years)
Weighted-
average
exercise
price (€)
Number
exercisable
M
Weighted-
average
remaining
contractual life
(years)
Weighted-
average
exercise
price (€)
2.56-4.96
18.0
3.1
3.11
6.2
0.4
3.24
The Company has accounted for its share option grants to employees at fair value, in accordance with
IFRS 2, using a binomial lattice model to value the option grants. The net credit to the income statement of €0.7
million (2011: €3.3 million charge; 2010: €4.9 million charge) comprises a €2.5 million reversal of previously
recognised share-based compensation expense for awards that did not vest, offset by a charge of €1.8 million for
the fair value of various share options granted in prior periods, which are recognised within the income
statement in accordance with employee services rendered. This was based on 8.4 million share options within
the scope of IFRS 2 (2011: 22.6 million; 2010: 23.2 million) as compared to the total share options disclosed
above (as permitted by the transitional rules in IFRS 1).
There were no share options granted during the years ended March 31, 2010, 2011 and 2012.
16 Other equity reserve
The total share based payments reserve at March 31, 2012 was €21.6 million (2011: €25.3 million;
2010: €26.5 million). The available-for-sale financial asset reserve at March 31, 2012 was €70.0 million (2011:
€34.3 million; 2010: €36.5 million). The total cash-flow hedge reserve amounted to €138.6 million at March 31,
2012 (2011: €257.4 million; 2010: €60.3 million). Further details of the group‘s derivatives are set out in Notes
5 and 11 to the consolidated financial statements.
17 Analysis of operating revenues and segmental analysis
The Company is managed as a single business unit that provides low fares airline-related services,
including scheduled services, internet and other related services to third parties across a European route
network. The Company operates a single fleet of aircraft that is deployed through a single route scheduling
system.
The Company determines and presents operating segments based on the information that internally is
provided to Michael O‘Leary, CEO, who is the Company‘s Chief Operating Decision Maker (CODM). When
making resource allocation decisions the CODM evaluates route revenue and yield data, however resource
allocation decisions are made based on the entire route network and the deployment of the entire aircraft fleet,
which are uniform in type. The objective in making resource allocation decisions is to maximise consolidated
financial results, rather than results on individual routes within the network.
The CODM assesses the performance of the business based on the consolidated adjusted profit/(loss)
after tax of the Company for the year. This measure excludes the effects of certain income and expense items,
which are unusual, by virtue of their size and incidence, in the context of the Company‘s ongoing core
operations, such as the impairment of a financial asset investment, accelerated depreciation related to aircraft
disposals and Icelandic volcanic ash related costs.
All segment revenue is derived wholly from external customers and, as the Company has a single
reportable segment, inter-segment revenue is zero.
The Company‘s major revenue-generating asset class comprises its aircraft fleet, which is flexibly
employed across the Company‘s integrated route network and is directly attributable to its reportable segment
operations. In addition, as the Company is managed as a single business unit, all other assets and liabilities have
been allocated to the Company‘s single reportable segment.