Brambles 2006 Annual Report - Alle jaarverslagen
Brambles 2006 Annual Report - Alle jaarverslagen
Brambles 2006 Annual Report - Alle jaarverslagen
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129<br />
<strong>Brambles</strong><br />
<strong>2006</strong> <strong>Annual</strong> <strong>Report</strong><br />
<strong>2006</strong> 2005<br />
Weighted average fair value of grants during the year £ 1.98 1.78<br />
Weighted average share price at the date of exercise £ 3.19 2.59<br />
Weighted average remaining contractual life at reporting date years 2.6 3.6<br />
There were nil grants, 94,363 exercises and 375,739 lapses in options or performance share rights over BIP shares between the end<br />
of the financial year and 23 August <strong>2006</strong>.<br />
c) Fair value calculations<br />
Options and performance share rights<br />
The fair value of options and performance share rights granted during the year was determined at the various grant dates, using a<br />
binominal valuation methodology. The values calculated do not take into account the probability of options and performance share rights<br />
being forfeited prior to vesting, as a probability adjustment is made when computing the share-based payment expense.<br />
Cash-settled share-based payments<br />
Executives and employees in certain jurisdictions are provided cash incentives calculated by reference to options and performance share<br />
rights under the share option plans, referred to as phantom shares. Fair value of phantom shares granted during the year was initially<br />
determined at the various grant dates using a binomial model and recalculated at reporting date.<br />
The significant inputs into the valuation models were specific to each plan and fell within the following ranges:<br />
<strong>2006</strong> 2005<br />
BIL<br />
Weighted average share price A$ 11.00 8.17<br />
Weighted average exercise price of options A$ 7.51 8.20<br />
Expected volatility % 25.0 25.0<br />
Expected life years 3.25–4 4.5<br />
<strong>Annual</strong> risk-free interest rate % 4.98–5.26 5.1<br />
Expected dividends % 2.5 3.2<br />
BIP<br />
Weighted average share price £ 4.38 3.06<br />
Expected volatility % 25.0 25.0<br />
Expected life years 4.0 4.5<br />
<strong>Annual</strong> risk-free interest rate % 4.3 4.5<br />
Expected dividends % 2.5 3.2<br />
The expected volatility was determined based on a two-year historic volatility of <strong>Brambles</strong>’ share prices.<br />
d) Share-based payment expense – continuing operations<br />
<strong>Brambles</strong> recognised a total expense of US$16.2 million (2005: US$14.2 million) relating to share-based payments for continuing<br />
operations. Of this amount, US$1.5 million (2005: US$1.4 million) related to phantom shares.<br />
Note 29.<br />
Reserves and retained earnings<br />
<strong>2006</strong><br />
US$m<br />
2005<br />
US$m<br />
Reserves 457.5 474.7<br />
Retained earnings 1,534.4 824.9<br />
1,991.9 1,299.6<br />
Minority interests in reserves and retained earnings 3.9 7.7
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