REGISTRATION DOCUMENT AND FINANCIAL REPORT - Iliad

20. FINANCIAL INFORMATION CONCERNING THE COMPANY’S ASSETS AND LIABILITIES,
FINANCIAL POSITION AND PROFITS AND LOSSES
20.1 CONSOLIDATED FINANCIAL STATEMENTS FOR 2007, 2006 AND 2005
Exercise date of the options
The exercise terms and conditions applicable to the outstanding stock options are as follows:
Date of plan launch Exercise terms and conditions
January 20, 2004 Options exercisable on January 20, 2008
December 20, 2005 Half of the options under this plan are exercisable on December 20, 2009 and half on
December 20, 2010.
June 14, 2007 Options exercisable on June 13, 2012
August 30, 2007 Options exercisable on August 30, 2012
Fair value of options granted
The fair value of the options granted was calculated using the Black & Scholes option pricing model.
The main assumptions applied under this model were as follows:
01/20/2004 12/19/2005 12/19/2005 06/14/2007 08/30/2007
Quantity .......................................... 487,769 270,758 270,757 162,455 703,960
Exercise price .................................... €16.30 €48.44 €48.44 €74.62 €68.17
Underlying volatility ............................. 15% 30.40% 30.40% 38.40% 38.85%
Life of the options ................................ 4 years 4 years 5 years 5 years 5 years
Annual cost (in € thousands) ...................... 275 865 675 700 2,800
The expense recorded in relation to these plans totaled €3,167,000 in 2007 and €1,815,000 in 2006.
NOTE 28: PROVISIONS
Provisions break down as follows:
(in € thousands)
At December 31,
2007
At December 31,
2006
Long-term provisions
Provisions for charges .......................................................... 1,416 1,015
Total long-term provisions ...................................................
Short-term provisions
1,416 1,015
Provisions for contingencies ................................................... 1,152 1,205
Provisions for charges .......................................................... 0 262
Total short-term provisions .................................................. 1,152 1,467
Total provisions ............................................................... 2,568 2,482
Provisions are considered to be “long-term” when the Iliad Group does not expect to use them within 12 months
after the balance sheet date. In all other cases they are deemed to be “short-term”.
Provisions for contingencies and charges break down as follows:
(in € thousands)
At December 31,
2007
At December 31,
2006
Provisions for charges .......................................................... 1,416 1,277
Provisions for contingencies ................................................... 1,152 1,205
Total provisions for contingencies and charges .............................. 2,568 2,482
Iliad – Registration Document 2007 - 141