Amadeus IT Holding, S.A. and Subsidiaries - Investor relations at ...

AMADEUS IT HOLDING, S.A. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED ANNUAL ACCOUNTS FOR THE YEARS ENDED
DECEMBER 31, 2011, AND 2010
(EXPRESSED IN THOUSANDS OF EUROS - KEUR)
For the second cycle, at grant date, 480,836 shares have been allotted to
the eligible employees, excluding the Chief Executive Officer (CEO). The
number of shares allotted deliverable to the CEO amount to 51,209 shares.
This number of shares could increase up to double if Amadeus performance
in all performance objectives is extraordinary. The fair value of those
instruments at grant date was estimated to be EUR 13.19 per equity
instrument. The fair value of the equity instruments granted has been
determined using a scholastic valuation model (Monte-Carlo) for the
tranche that involves market conditions, and the Black-Scholes model and
an estimation of expected performance for the tranches that involve nonmarket
conditions. The fair value of the equity instruments at grant date is
adjusted to incorporate the market conditions to which the performance of
the plan is linked. When measuring the fair value an expected dividend
yield of 2.2%, a expected volatility of 24.0%, and a risk free interest rate of
1.5%, have been considered. The expected volatility has been estimated as
a combination of historical volatility and volatility of peer companies due to
the recent trading history of the Amadeus Group.
The detail of the changes in the Company’s PSP for 2011 and 2010, is as
follows:
PSP
First
Cycle
87
31/12/2011 31/12/2010
PSP
Second
Cycle Total
PSP First
Cycle Total
Number of shares allotted at beginning of the year 564,917 - 564,917 - -
Shares allotted during the period - 532,045 532,045 564,917 564,917
Forfeiture during the period (23,600) (8,569) (32,169) - -
Other changes (1,974) - (1,974) - -
Number of shares allotted at end of the year (*) 539,343 523,476 1,062,819 564,917 564,917
(*) This number of shares could increase up to double if Amadeus performance in all performance objectives is extraordinary.
ii) The Restricted Shares Plan (RSP) consists on the delivery of a given
number of Amadeus shares to certain employees on a non-recurring basis,
after pre-determined services requirements are met. The RSP beneficiaries
must remain employed in a Group company during a determined period of
time, which oscillates between two and five years. The grants under the
RSP can be made in 2010, 2011 and 2012. This plan is considered as
equity-settled under IFRS2. The fair value of services received during the
years ended as of December 31, 2011, and 2010, as consideration for the
equity instruments granted (21,046 in 2011 and 16,679 in 2010 Restricted