Philips 2012 Annual Report Download - page 168

12 Group financial statements 12.11 - 12.11
168 Annual Report 2012
price, multiplied by the number of in-the-money options) that would
have been received by the option holders if the options had been
exercised on December 31, 2012.
The following table summarizes information about the Company’s
Accelerate! options as of December 31, 2012 and changes during the
year:
Accelerate! options
shares
weighted average
exercise price
EUR-denominated
Granted 3,082,000 15.24
Forfeited 155,000 15.24
Outstanding at December 31, 2012 2,927,000 15.24
USD-denominated
Granted 940,000 20.02
Forfeited 80,000 20.02
Outstanding at December 31, 2012 860,000 20.02
The exercise price of the Accelerate! options are EUR 15.24 and USD
20.02. The average remaining contractual term for both EUR and USD
Accelerate! options outstanding at December 31, 2012, was 9.1 years.
The aggregate intrinsic value of the Accelerate! options outstanding at
December 31, 2012, was EUR 14 million and USD 6 million respectively.
The grant-date fair value of Accelerate! options granted during 2012
was EUR 3.01 and USD 4.90. At December 31, 2012, a total of EUR 6
million of unrecognized compensation costs relate to both EUR and
USD non-vested Accelerate! options. These costs are expected to be
recognized over a period of 1.3 years.
Share plans
The fair value of restricted and Accelerate! share rights is equal to the
fair value of the share at grant date less the present value of dividends
which will not be received up to the vesting date.
The Company issues restricted share rights that vest in equal annual
installments over a three-year period, starting one year after the date
of grant. If the grantee still holds the shares after three years from the
delivery date, Philips will grant 20% additional (premium) shares,
provided the grantee is still with the Company on the respective
delivery dates.
A summary of the status of the Company’s restricted share plans as of
December 31, 2012 and changes during the year are presented below:
Restricted share rights (excluding Accelerate! share
rights)1)
shares
weighted average
grant-date fair value
EUR-denominated
Outstanding at January 1, 2012 1,860,891 19.10
Granted 1,147,926 13.44
Vested/Issued 849,144 18.28
Forfeited 204,688 17.69
Outstanding at December 31, 2012 1,954,985 16.45
USD-denominated
Outstanding at January 1, 2012 1,264,699 26.33
Granted 1,445,614 17.81
Vested/Issued 579,861 24.87
Forfeited 206,296 22.39
Outstanding at December 31, 2012 1,924,156 20.99
1) Excludes 20% additional (premium) shares that may be received if shares
delivered under the restricted share rights plan are not sold for a three-year
period
At December 31, 2012, a total of EUR 35 million of unrecognized
compensation costs relate to non-vested restricted share rights. These
costs are expected to be recognized over a weighted-average period
of 2 years.
The Company issues Accelerate! share rights that ultimately vest on
March 31, 2014. After vesting an additional two-year holding period
applies. The actual number of Accelerate! share rights that will
ultimately vest is dependent on the performance targets under the
Accelerate! program, which are based on the 2013 mid-term financial
targets, and provided that the employee is still employed with the
Company.
A summary of the status of the Company’s Accelerate! share plans as
of December 31, 2012 and changes during the year are presented
below:
Accelerate! share rights
shares
weighted average
grant-date fair value
EUR-denominated
Granted 3,082,000 13.75
Forfeited 155,000 13.75
Outstanding at December 31, 2012 2,927,000 13.75
USD-denominated
Granted 940,000 18.05
Forfeited 80,000 18.05
Outstanding at December 31, 2012 860,000 18.05
At December 31, 2012, a total of EUR 27 million of unrecognized
compensation costs relate to both EUR and USD non-vested
Accelerate! share rights. These costs are expected to be recognized
over a period of 1.3 years.