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Company Financial Statements as of December 31, 2015
Notes to the Company Financial Statements
Provisions
1.12
A provision is recorded when (i) the Company has an obligation deliver existing shares to grantees and (iii) it is probable or certain that
towards a third party, (ii) the amount of the obligation can be reliably
an outflow of resources will be necessary to settle the obligation
estimated, (iii) it is probable that an outflow of resources will be without any equivalent economic benefit being received in return.
necessary to settle the obligation and (iv) no equivalent economic When the stock rights or stock option rights may only be exercised at
benefit is expected to be received in return.
the end of a specified period of employee service, the liability is
recognized as a provision that is reduced over the vesting period as the
A liability is recognized when (i) the decision has been made to set up a
employee service is received.
stock option or stock grant plan, (ii) the Company has an obligation to
The main characteristics of stock option plans outstanding at December 31, 2015 or that expired during the year are presented below:
Number of
Number of
options Life of the
Number of
options Exercise price
Grant date
(1)
granted
(2)
options
grantees
Exercise period
(3)
outstanding
(4)
(in euros)
(2)
June 6, 2010
2008 Presence plan
I
June 6, 2008 4,545,183 7
years
505 to June 5, 2015
0
39.68
July 7, 2010
2008 Presence plan
II
July 7, 2008 17,109 7
years
1 to July 6, 2015
0
39.68
June 17, 2011
2009 Performance plan June 17, 2009 1,252,994 7
years
57 to June 16, 2016 399,711
29.55
June 17, 2011
2009 Presence plan
June 17, 2009 6,974,861 7
years
2,571 to June 16, 2016 5,064,396
29.55
July 17, 2012
2010 Performance plan July 16, 2010 1,439,017 7
years
56 to July 16, 2017 471,416
29.91
July 17, 2012
2010 Presence plan
II
July 16, 2010 1,941,610 7
years
507 to July 16, 2017 1,351,784
29.91
TOTAL
7,287,307
Date of the meeting of the Management Board (before July 28, 2008) or Board of Directors (after that date) when the stock option grants were decided.
(1)
Adjusted number of options and adjusted exercise price.
(2)
The options will vest only if the grantee is still employed by the Group at the start of the exercise period. Since 2006, the options vest as follows:
(3)
50% after two
years;
●
25% after three
years;
●
25% after four
years.
●
Concerning the exercise date, specific rules apply in the event of the grantee’s death.
The number of options outstanding includes both options exercisable at December 31, 2015 and options that were not yet exercisable at that date.
(4)
There are two types of plans:
Performance plans, for which the above presence condition applies
●
as well as two conditions based on the Group’s financial
Presence plans, for which the only condition is that grantees must
●
performance, with 50% of the options vesting when each of these
remain employed by the Group between the grant date and the start
conditions are met:
date of the exercise period for each tranche of options (50% of
Performance conditions for the 2009 Performance plan
●
options vest after two
years, 25% after three years and 25% after
concerned (i) sales growth for the period 2008 to 2010 and (ii)
four years);
the level of 2010 free cash flow,
Performance conditions for the 2010 Performance plan
●
concerned growth in (i) sales and (ii) recurring operating income
over the period 2009 to 2011.
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