APC 2011 Annual Report Download - page 188

186 2011 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC
CONSOLIDATED FINANCIAL STATEMENTS
5NOTES TO THE CONSOLIDATED FINANCIAL
To exercise the options granted under plans 26 to 33, and the SARs,
the grantee must be an employee or corporate offi cer of the Group.
In addition, exercise of some options is generally conditional on the
achievement of annual objectives based on fi nancial indicators.
In respect of subscription vesting conditions for current stock option
plans, Schneider ElectricSA has created 1,169,210shares in 2011.
Change in the number of stock grants
Plan no.
Number of stock grants
atDec.31, 2010 Number of existing or new shares grants in 2011 Number of shares cancelledin 2011 Number of shares outstanding Dec.31, 2011
4 54,086 (49,054) (5,032) -
5 274,680 - (1,850) 272,830
6 411,026 - (17,278) 393,748
7 2,500 - - 2,500
8 319,506 - (1,544) 317,962
9 772,190 - (21,780) 750,410
10 665,524 - (3,544) 661,980
11 1,161,696 - (25,620) 1,136,076
10 bis - 3,000 - 3,000
11 bis - 5,882 - 5,882
12 - 19,850 - 19,850
13 - 645,443 - 645,443
14 - 1,387,800 - 1,387,800
TOTAL 3,661,208 2,012,921 (76,648) 5,597,481
For stock grants to vest, the grantee must be an employee or corporate offi cer of the Group. In addition, vesting of some stock grants is
conditional on the achievement of annual objectives based on fi nancial indicators.
21.5.1 Valuation of share-based payments
Stock option valuation
In accordance with the accounting policies described in note1.20,
the stock option plans have been valued on the basis of an
average estimated life of between seven and ten years using the
followingassumptions:
•expected volatility of between 20% and 28%, corresponding to
capped historical volatility;
•a payout rate of between 3.0% and 4.5%;
•a discount rate of between 2.9% and 4.5%, corresponding to a
risk-free rate over the life of the plans (source: Bloomberg).
Based on these assumptions, the amount recorded under “Selling,
general and administrative expenses” for stock grant plans set up
after November7, 2002 breaks down as follows:
2011 2010
Plan 28 -5
Plan 29 -1
Plan 30 12
Plan 31 22
Plan 32 --
Plan 33 44
TOTAL 714