Philips 2006 Annual Report Download - page 165

Philips Annual Report 2006 165
In December 2006, the Company offered to exchange outstanding Lumileds Depository Receipts and options for cash
and shared-based
instruments settled in cash. The amount to be paid to settle the obligation, with respect to share-based
instruments, will fl uctuate based upon changes in the fair value of Lumileds. Substantially all of the holders of the
options and the depository receipts accepted the Company offer. The amount of the share-based payment liability
recorded at December 31, 2006 was EUR 97 million of which EUR 17
million is a defi nitive amount payable in March
2007 and EUR 79 million
is an estimate of the liability based upon the most recent Lumileds appraisal value as of
the end of the year. Of the EUR 79 million estimated
liability, EUR 18 million is scheduled to be paid in 2007, the exact
amount
to be calculated based upon an appraised value determined in the fi rst quarter of 2007. The remaining liability,
which is subject to changes in the fair value of Lumileds, will be paid between 2008 and 2011.
The following table summarizes information about the Lumileds stock options during 2006.
shares
weighted
average exercise
(price in USD)
weighted average
remaining contractual
term (in years)
aggregate
intrinsic value
(in millions of USD)
Outstanding at January 1, 2006 15,634,566 2.78
Granted 36,000 8.06
Exercised 696,203 1.89
Forfeited 83,822 4.72
Exchanged/Accepted Company offer 14,778,574 2.82
Outstanding at December 31, 2006 111,967 2.74 2.1 1
Exercisable at December 31, 2006 111,759 2.74 2.1 1
The total intrinsic value of options exercised during 2006 was USD 4 million.
226 Corporate governance224 Reconciliation of
non-US GAAP information
234 The Philips Group
in the last ten years
236 Investor information