Ardagh Glass Finance plc - Irish Stock Exchange

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
21. Share based payments (Continued)
The fair value of options granted was measured by a Black-Scholes pricing model. The grant date
fair value was determined by reference to recent transactions in the ordinary share capital of the
company.
The expected volatility rates applied were based upon the weighted average historical volatility of
comparable companies over an equivalent period to the period from valuation dates to expected exit
dates. The risk-free interest rates used were based upon Euro-denominated government bonds with
similar lives. No dividend yield was included in the model as Ardagh had no history or expectation of
regular dividend payments at the valuation dates.
The table below shows the key numbers in relation to the share option schemes for both 2007 and
2006:
2007 2006
E’000 E’000
Income statement charge ............................................... 150 23
Charge to equity ...................................................... 150 23
On 15 June 2007, the scheme was modified such that all options vested immediately on date of
modification. The options were exercised immediately and new shares in Ardagh Glass Group plc were
issued and fully paid up. The modified scheme contains certain clauses that may require the holder of
the issued shares to sell the shares back to the company should their employment terminate before
certain requisite periods of service have elapsed. The outstanding share-based payment expense related
to the 2006 grant was recognised immediately at the modification date. As there was no incremental
fair value attaching to the modified share options no additional share-based payment expense has been
recognised.
22. Minority interests
2007 2006
E’000 E’000
At 1 January ....................................................... 2,404 2,141
Purchase of minority interest in HSU ..................................... — (69)
Dividends paid to minority interest in FFS ................................. (168) —
Profit for the financial year ............................................ 367 332
At 31 December .................................................... 2,603 2,404
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