Philips 2015 Annual Report Download - page 159

Group nancial statements 12.9
Annual Report 2015 159
A summary of the status of the Company’s restricted
shares as of December 31, 2015 and changes during the
year are presented below:
Philips Group
Restricted shares
2015
shares1)
weighted
average
grant-date
fair value
EUR-denominated
Outstanding at January 1, 2015 525,462 16.44
Granted 871,881 23.63
Vested/Issued 381,915 15.27
Forfeited 6,753 14.56
Outstanding at December 31, 2015 1,008,675 23.41
USD-denominated
Outstanding at January 1, 2015 600,679 21.51
Granted 601,206 26.08
Vested/Issued 422,288 19.15
Forfeited 21,188 26.88
Outstanding at December 31, 2015 758,409 26.90
1) Restricted shares granted before 2013 excludes 20% additional
(premium) shares that may be received if shares delivered under the
plan are not sold for a three-year period. Restricted shares granted after
2013 excludes dividend declared on outstanding shares between grant
date and vesting date that will be issued in shares.
At December 31, 2015, a total of EUR 24 million of
unrecognized compensation costs relate to non-vested
restricted shares. These costs are expected to be
recognized over a weighted-average period of 1.6
years.
Option plans
The Company granted options that expire after 10
years. These options vest after 3 years, provided that
the grantee is still employed with the Company.
The following tables summarize information about the
Company’s options as of December 31, 2015 and
changes during the year:
Philips Group
Options on EUR-denominated listed share
2015
options
weighted
average
exercise price
Outstanding at January 1, 2015 15,076,954 21.65
Exercised 2,868,531 18.57
Forfeited 466,739 26.68
Expired 94,370 19.45
Outstanding at December 31, 2015 11,647,314 22.23
Exercisable at December 31, 2015 11,630,889 22.23
The exercise prices range from EUR 12.63 to EUR 32.04.
The weighted average remaining contractual term for
options outstanding and options exercisable at
December 31, 2015, was 3.6 years. The aggregate
intrinsic value of the options outstanding and options
exercisable at December 31, 2015, was EUR 38 million.
The total intrinsic value of options exercised during
2015 was EUR 21 million (2014: EUR 11 million, 2013: EUR
15 million).
Philips Group
Options on USD-denominated listed share
2015
options
weighted
average
exercise price
Outstanding at January 1, 2015 11,361,836 29.84
Exercised 1,013,652 20.90
Forfeited 569,858 33.46
Expired 101,519 25.38
Outstanding at December 31, 2015 9,676,807 30.62
Exercisable at December 31, 2015 9,670,357 30.62
The exercise prices range from USD 16.76 to USD 44.15.
The weighted average remaining contractual term for
options outstanding and options exercisable at
December 31, 2015, was 3.7 years. The aggregate
intrinsic value of the options outstanding and options
exercisable at December 31, 2015, was USD 16 million.
The total intrinsic value of options exercised during
2015 was USD 8 million (2014: USD 9 million, 2013: USD
17 million).
At December 31, 2015 there were no unrecognized
compensation costs related to outstanding options.
Cash received from exercises under the Company’s
option plans amounted to EUR 72 million in 2015 (2014:
EUR 77 million, 2013: EUR 84 million). The actual tax
deductions realized as a result of option exercises
totaled approximately EUR 3 million in 2015 (2014: EUR
3 million, 2013: EUR 5 million).
The outstanding options as of December 31, 2015 are
categorized in exercise price ranges as follows:
Philips Group
Outstanding options
2015
exercise price options
intrinsic
value in
millions
weighted
average
remaining
contractual
term
EUR-denominated
10-15 3,077,645 30 5.5 yrs
15-20 86,137 1 5.8 yrs
20-25 5,281,935 7 4.2 yrs
25-30 1,306,224 0.3 yrs
30-35 1,895,373 1.3 yrs
Outstanding options 11,647,314 38 3.6 yrs
USD-denominated
15-20 2,276,293 15 5.6 yrs
20-25 237,689 1 6.0 yrs
25-30 1,907,931 5.2 yrs
30-35 2,339,551 2.7 yrs
35-40 1,435,203 2.2 yrs
40-55 1,480,140 1.3 yrs
Outstanding options 9,676,807 16 3.7 yrs