APC 2005 Annual Report Download - page 95

93
Consolidated Financial Statements
14.5.2 - Outstanding options as of December 31, 2005
Plan Number of options Options Options Number of options
no. outstanding exercised and or cancelled outstanding
at Dec. 31, 2004 created in 2005 in 2005 (1) at Dec. 31, 2005
14 919,046 (894,846) (24,200) 0
15 46,700 (46,700) - 0
16 919,800 (436,880) (4,200) 478,720
17 944,100 (321,248) (800) 622,052
18 642,000 (35,219) (22,800) 583,981
19 1,464,875 (9,700) (28,800) 1,426,375
20 1,494,400 (311,450) (212,100) 970,850
21 1,921,200 - (60,100) 1,861,100
22 91,500 (21,550) - 69,950
23 107,000 (33,000) - 74,000
24 2,060,700 - (35,800) 2,024,900
25* - 89,150 - 89,150
26 - 2,003,800 (9,000) 1,994,800
27 - 1,614,900 - 1,614,900
Total 10,611,321 1,597,257 (397,800) 11,810,778
* Of which 49,350 options exercised.
(1) After potential cancellations due to targets being only partially met or options not being exercised.
On May 12, 2005, the Board of Directors set up stock
option plan 25, granting the prizewinners of the com-
pany program trophies 138,500 options to subscribe
new shares of Company stock at a price of 57.02
between October 1, 2005 and May 12, 2013.
On June 28, 2005, the Board of Directors set up stock
option plan 26, granting 2,003,800 options to sub-
scribe new shares or purchase existing shares of
Company stock at a price of 60.78, in principle exer-
cisable between June 28, 2009 and June 27, 2013.
On December 1, 2005, the Board of Directors set up
stock option plan 27, granting 1,614,900 options to
subscribe new shares or purchase existing shares of
Company stock at a price of 72.10, in principle exer-
cisable between December 1, 2009 and November 30,
2013. For US employees, the plan awards 317,100
Stock Appreciation Rights (SARs) at a price of 73.25,
with the same vesting period and expiration date as
the options in plan 27.
To exercise the options granted under plans 26 and 27
and the SARs, the grantee must be part of the Group
at the exercise date. In addition, exercise of half the
options is conditional on the achievement of annual
objectives based on operating margin.
In 2005, 425,050 new Schneider Electric SA shares
were issued on the exercise of currently vested stock
options.
14.5.3 - Valuation of share-based payment
In accordance with the accounting principles described
in note 1.18, the stock option plans set up in 2005
have been valued on the basis of an average estimat-
ed life of seven years using the following assumptions:
Expected volatility of between 20% and 22%, corre-
sponding to implicit volatility.
A payout rate of 3%.
A discount rate of between 3% and 4%, correspon-
ding to a risk-free rate over the life of the plans.
Based on these assumptions, the amount recorded
under "Selling, general and administrative expenses"
for plans set up after November 7, 2002 breaks down
as follows:
2005
Plan 21 5.8
Plan 24 5.9
Plan 25 1.5
Plan 26 3.1
Plan 27 0.5
16.7