HSBC 2009 Annual Report Download - page 463

461
Bank of Bermuda plan
Following the acquisition of Bank of Bermuda in 2004, all outstanding employee share options over Bank of
Bermuda shares were converted into rights to receive HSBC Holdings ordinary shares based on the consideration of
US$40 for each Bank of Bermuda share and the average closing price of HSBC Holdings ordinary shares, derived
from the London Stock Exchange Daily Official List, for the five business days preceding the closing date of the
acquisition. During 2009, options over 18,153 HSBC Holdings ordinary shares were exercised (2008: 12,847) and
satisfied by delivery from the HSBC (Bank of Bermuda) Employee Benefit Trust 2004. During 2009, options over
24,673 (2008: 95,915) HSBC Holdings ordinary shares lapsed. At 31 December 2009, the HSBC (Bank of Bermuda)
Employee Benefit Trust 2004 held 2,113,611 (2008: 1,877,056) HSBC Holdings ordinary shares which may be used
to satisfy the exercise of options.
Options outstanding over HSBC Holdings ordinary shares under the Bank of Bermuda share plans were as follows:
Number of HSBC
Holdings
ordinary shares Period of exercise Exercise price
31 December 20091....................................................... 2,481,702 2010 to 2013 US$6.13 – 15.99
31 December 2008 ........................................................ 2,205,321 2009 to 2013 US$7.04 – 18.35
31 December 2007 ........................................................ 2,314,083 2008 to 2013 US$7.04 – 18.35
1 During 2009, the number and prices of unexercised share options were adjusted for the rights issue.
Maximum obligation to deliver HSBC Holdings ordinary shares
At 31 December 2009, the maximum obligation to deliver HSBC Holdings ordinary shares under all of the above
option arrangements, together with awards of Performance Shares and Restricted Shares under the HSBC Holdings
Restricted Share Plan 2000 and the HSBC Share Plan, was 559,960,290 (2008: 400,887,713). The total number of
shares at 31 December 2009 held by employee benefit trusts that may be used to satisfy such obligations to deliver
HSBC Holdings ordinary shares was 134,903,061 (2008: 164,985,811).
38 Notes on the statement of cash flows
Non-cash items included in profit before tax
HSBC HSBC Holdings
2009 2008 2007 2009 2008
US$m US$m US$m US$m US$m
Depreciation, amortisation and impairment ............... 2,538 13,367 2,522 5,947 3,601
Gains arising from dilution of interests in associates . – – (1,092) – –
Revaluations on investment property ......................... 24 92 (152) – –
Share-based payment expense .................................... 683 819 870 21 14
Loan impairment losses gross of recoveries and
other credit risk provisions ..................................... 27,378 25,771 18,247 – –
Provisions ................................................................... 669 591 989 – –
Impairment of financial investments .......................... 358 1,042 42 – –
Charge for defined benefit plans ................................ 192 490 727 – –
Accretion of discounts and amortisation of
premiums ................................................................ (458) (867) (452) 6 4
31,384 41,305 21,701 5,974 3,619