Registration Document

P ◀ CONTENTS ▶
The expected life of the options is incorporated into
the binomial model based on beneficiary behavior
expected over the contractual life of the options
and based on historical data, and is not necessarily
indicative of future exercises.
The expected volatility is based on the assumption
that volatility calculated using regression analysis
of daily returns over the five- or six-year period
(the expected life of the options) prior to the date
of grant, excluding the share price fluctuations of
September 2002, is an indicator of future trends.
Effective for plans granted in 2008, the expected
volatility is based on a weighted average of the
historical volatility of the shares observed over
five years and the implicit volatility expected in the
marketplace.
The risk-free interest rate is the rate on Government
bonds (with reference to Iboxx rates in the euro zone)
for a maturity similar to the life of the options.
The assumptions with respect to the exercise
behavior of grantees used in determining the fair
value of the options are also based on historical
4.23.3 Initial charge and movements during Fiscal 2011
Consolidated information 06
Notes to the Consolidated Financial Statements
data, which may not be indicative of future exercise
behavior, and are as follows:
• grantees resident in France for tax purposes:
• 50% of grantees will exercise their options
once the share price exceeds 20% of the
exercise price,
• 50% of grantees will exercise their options
once the share price exceeds 40% of the
exercise price;
• grantees not resident in France for tax purposes:
• 30% of grantees will exercise their options
once the share price exceeds 20% of the
exercise price,
• 30% of grantees will exercise their options
once the share price exceeds 40% of the
exercise price,
• 30% of grantees will exercise their options
once the share price exceeds 70% of the
exercise price,
• 10% of grantees will exercise their options
once the share price exceeds 100% of the
exercise price.
The stock option expense recognized in the Fiscal 2011 income statement was 17 million euro, compared to
9 million euro in Fiscal 2010.
The table below provides the quantity, weighted average exercise price (WAP) and movements of stock options
during the period.
August 31, 2011 August 31, 2010
Number WAP (in euro) Number WAP (in euro)
outstanding at the beginning of the period 6,703,643 40.83 5,959,157 39.44
Granted during the period 1,734,700 48.37 1,699,700 39.88
Forfeited during the period (852,501) (1) 42.36 (166,450) 42.20
Exercised during the period (1,143,248) (2) 38.04 (784,463) (3) 27.97
Expired during the period (3,556) 23.08 (4,301) 24.48
outstanding at the end of the period 6,439,038 43.17 6,703,643 40.83
exercisable at the end of the period 1,944,228 43.26 2,223,047 40.59
(1) Including options cancelled due to non-satisfaction of performance conditions for 2008 plans.
(2) The weighted average share price at the exercise date of options exercised in the period was 51.15 euro.
(3) The weighted average share price at the exercise date of options exercised in the period was 43.40 euro.
The weighted average residual life of options
outstanding as of August 31, 2011 was 4.1 years
(August 31, 2010: 4 years).
The weighted average fair value of options granted
during the year was 11.21 euro per share (Fiscal 2010:
9.41 euro).
Sodexo Registration Document Fiscal 2011
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