Telstra 2010 Annual Report Download - page 197

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Telstra Corporation Limited and controlled entities
182
Notes to the Financial Statements (continued)
(b) Long term incentive (LTI) plans (continued)
(iv) Summary of movements and other information
(continued)
(*) Options include RTSR, TSR, RG, NGN, ITT, ROI, SEBITDA, ESOP
and US ESOP options. The options “exercised” includes those
participants that have been made redundant and are then
consequently entitled to the Telstra shares.
(^) Performance rights include TSR, EPS, OEG, RG, NT, ITT and
ROI performance rights.
(#) Restricted shares relate to ROI restricted shares.
(**) The fair value of these instruments is calculated using an
option pricing model that takes into account various factors,
including the exercise price and expected life of the instrument, the
current price of the underlying share and its expected volatility,
expected dividends, the risk-free rate for the expected life of the
instrument, and the expected average volatility of Telstra’s peer
group companies.
(^^) The weighted average share price for instruments exercised
during fiscal 2009 was $4.05 for the fiscal 2008 ESOP allocation of
options, $4.32 for the fiscal 2004 allocation of deferred shares, and
$4.30 for fiscal 2003, fiscal 2004, fiscal 2005 and fiscal 2006
allocation of performance rights respectively. These share prices
were based on the closing market price on the exercise dates.
(##) The weighted average share price for instruments exercised
during fiscal 2010 was $3.36 for the fiscal 2008 and fiscal 2009
ESOP allocation of options, and $3.38 for fiscal 2005, fiscal 2006
and fiscal 2010 allocation of performance rights respectively. These
share prices were based on the closing market price on the exercise
dates.
27. Employee share plans (continued)
Options (*) Deferred shares Performance rights
(^)
Restricted shares (#)
Number
Weighted
average
fair value
(**) Number
Weighted
average
fair value
(**) Number
Weighted
average
fair value
(**) Number
Weighted
average
fair value
(**)
Outstanding
as at 30 June 2008 187,965,322 $0.74 87,925 $4.29 7,858,160 $2.95 - -
Granted . . . . . . . . 39,999,473 $0.20 - - - - 5,818,222 $2.83
Forfeited . . . . . . . (13,256,429) $0.73 - - (243,652) $2.97 - -
Exercised (^^) . . . . (1,459) $0.43 (76,025) $4.29 (3,310,467) $2.97 - -
Expired . . . . . . . . (12,135,695) $0.85 (11,900) $4.29 (591,620) $3.25 - -
Outstanding
as at 30 June 2009. . 202,571,212 $0.63 - - 3,712,421 $2.87 5,818,222 $2.83
Granted . . . . . . . . - - - - 2,047,583 $2.88 14,826,456 $1.81
Forfeited . . . . . . . (28,441,454) $0.64 - - (427,037) $2.47 (722,042) $2.80
Exercised (##) . . . . (638) $0.33 - - (231,263) $3.05 - -
Expired . . . . . . . . (102,976,856) $0.74 - - (2,738,571) $2.25 (1,534,394) $2.83
Outstanding
as at 30 June 2010. . 71,152,264 $0.47 - - 2,363,133 $2.91 18,388,242 $2.01
Exercisable
as at 30 June 2010. . 13,651,319 $0.94 - - 418,271 $3.18 - -