consolidated statement of financial condition - Barclays Capital

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certain conditions are met. Additional bonus shares aresubsequently awarded to recipients of the provisionalallocation and vest upon achieving continued service forthree and five years from the date of award. Sharesunder this scheme qualify for dividends.Incentive Share Plan (“ISP”)Incentive shares are granted to participants in the formof a provisional allocation of BBPLC shares, and vestupon achieving continued service after either two orthree years. Participants do not pay to receive an awardor to receive a release of shares. Incentive shares qualifyfor dividends. Dividend shares are released only at thediscretion of the trustee.Performance Share Plan (“PSP”)The PSP was approved by shareholders at theBarclays PLC 2005 Annual General Meeting (“AGM”) toreplace the Incentive Share Option Plan scheme.Performance shares are ‘free’ BBPLC shares for which noexercise price is payable and which qualify for dividends.Performance share awards are communicated toparticipants as an initial allocation. BBPLC’s performanceover a three-year period determines the final number ofshares that may be released to participants. Theseshares generally vest over a performance period of threeyears. Dividend shares are released only at the discretionof the trustee.Incentive Share Option Plan (“ISOP”) – Closed SchemeThe ISOP is now a closed scheme. Options were grantedat the market price at the date of grant calculated inaccordance with the rules of the ISOP, and werenormally exercisable between three and ten years fromthat date. The final number of shares over which theoption may be exercised is determined by reference toset performance criteria. All options outstanding underthe ISOP have been fully vested. The final shares underthe ISOP were granted in 2005 from which options areexercisable until 2015.Share Value Plan (“SVP”)The Share Value Plan shares are granted to participantsin the form of a provisional allocation of BBPLC shares,and vest upon achieving continuous service of one, twoand three years. Participants do not pay to receive areward or to receive a release of shares. Share Value Planshares qualify for dividends. Dividend shares are releasedonly at the discretion of the trustee. The SVP plan wasimplemented in 2010.34
For the purposes of determining the expected life andnumber of options to vest, historical exercise patternshave been used, together with an assumption that acertain percentage of options will lapse due to leavers.The number of options and restricted stock sharesoutstanding at December 31, 2010 is set forth below (inmillions):ESAS (a) ISP (a) PSP (a) ISOP (a) SVP (a)Outstanding at end of year 181.7 13.4 0.1 0.5 92.1Of which are exercisable 0.1 – – 0.5 –(a) Options/shares granted relate to Barclays PLC shares.14. Financial Instruments with Off-Balance SheetRiskIn the normal course of its business, the Company entersinto transactions involving financial instruments withoff-balance-sheet risk in order to meet financing andhedging needs of customers and to reduce theCompany’s own exposure to market and interest raterisk in connection with trading activities. These financialinstruments include forward and futures contracts,options contracts, and options on futures contracts.Each of these financial instruments contains varyingdegrees of off-balance-sheet risk as changes in the fairvalues of the financial instruments subsequent toDecember 31, 2010 may, in certain circumstances, be inexcess of the amounts recognized in the ConsolidatedStatement of Financial Condition. The Company is alsoat risk from the potential inability of counterparties toperform under the terms of the contracts.The Company also bears market risk for unfavorablechanges in the price of securities sold but not yetpurchased. In the normal course of business, theCompany enters into securities sales transactions asprincipal. If the securities subject to such transactionsare not in the possession of the Company, the Companymay incur a loss if the security the Company is obligatedto deliver is not received and the market value hasincreased over the contract amount of the saletransaction.The Company also executes customer transactions incommodity futures contracts (including options onfutures), all of which are transacted on a margin basissubject to individual exchange regulations. Thesetransactions may expose the Company to off-balancesheetrisk in the event margin deposits are insufficient to35
Page 1 and 2: CONSOLIDATEDSTATEMENTOF FINANCIALCO
Page 3 and 4: Report of Independent AuditorsTo th
Page 5 and 6: Consolidated Statement of Financial
Page 7 and 8: 1. OrganizationBarclays Capital Inc
Page 10 and 11: Transfers of Financial AssetsIn gen
Page 12 and 13: absolute terms and relative to the
Page 14 and 15: In such cases, exchange-traded deri
Page 16 and 17: • Mortgage-backed and other asset
Page 18 and 19: tax returns in New York State and N
Page 20 and 21: and requiring expanded information
Page 22 and 23: of Financial Condition. The Company
Page 24 and 25: On March 31, 2010, the Company tran
Page 26 and 27: generally de-recognizes those secur
Page 28 and 29: 6. Receivables from and Payables to
Page 30 and 31: 10. Subordinated DebtAt December 31
Page 32 and 33: 12. Benefit PlansPension PlanThe Co
Page 34 and 35: The Company's pension assets are in
Page 38 and 39: fully cover losses that customers m
Page 40 and 41: concerning (amongst other things) B
Page 42 and 43: $1,893 million of the maximum poten
Page 44 and 45: dealer price quotations, or alterna
Page 46: SENIOR OFFICERSJerry del MissierChi

consolidated statement of financial condition - Barclays Capital

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