AT&S World

The carrying amounts of the reported liabilities approximate the
respective fair values.
Government grants
Government grants mainly relate to grants for property, plant
and equipment and are released to income according to the useful
life of the related property, plant and equipment.
Furthermore, the Group has received grants for project costs for
several research projects, which are recognised in income on a
pro rata basis according to the costs incurred and the grant ratio,
or the accrual amount is included in the liabilities, respectively.
Liabilities from stock options
At the Supervisory Board Meeting held on 8 November 2004 a
stock option plan (2005-2008) was approved, which allows the
Company to grant stock options to the Management Board and
executive employees, which can be settled in cash or by issuing
equity instruments.
Each of these options entitles the holder to the right to either:
purchase a share (equity-settled share-based payment transactions)
or
be settled in cash (cash-settled share-based payment transactions)
at the remaining amount between exercise price and the
closing rate of AT&S shares at the stock exchange with the main
quotation of AT&S shares respectively at the date the option is
exercised by the beneficiary.
The stock options may be granted between 1 April 2005 and
1 April 2008.
The exercise price is determined at the respective date of grant,
representing the average AT&S share price over a period of six
months prior to the date of grant plus 10%. The exercise price corresponds
at least to the nominal value of a share of the Company.
Consolidated Financial Statements as of 31 March 2011
Granted options vest gradually with 20% of the options after
two years, 30% of the options after three years and 50% of the
options after four years. Options not exercised can be exercised
after the expiration of the subsequent waiting period. Options
not exercised within five years after grant date forfeit without
compensation.
In the 1st meeting of the nomination and compensation committee
of the Supervisory Board on 17 March 2009 an additional
stock option plan was approved, after it had been submitted
for examination in the 55th Supervisory Board Meeting on
16 December 2008. This stock option plan 2009-2012 for the grant
of stock options to be settled either in cash or equity instruments
to members of the Management Board, managing directors and
executive employees is consistent with the stock option plan
2005-2008.
Each of these options entitles to either acquire shares or a cash
settlement can be demanded, a mark-up of 10% is added to the
average price of six months and the granted stock options may
be exercised at staggered intervals, with 20% of the granted stock
options exercisable after two years, 30% after three years and 50%
after four years. Non-exercised stock options may be exercised
after the subsequent waiting period has expired.
The stock options may be granted in the period between 1 April
2009 and 1 April 2012.
The stock options may be exercised in full or in part after completion
of the vesting period, not however during a restricted period.
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