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This excerpt taken from the LPL 20-F filed Jun 23, 2009. Stock Appreciation Plan Effective January 1, 2005, the Company adopted Statement of Financial Accounting Standards No. 123(R), “Share-Based Payment” (“SFAS 123(R)”). SFAS 123(R) establishes accounting for share-based awards exchanged for employee services and requires that all stock-based compensation be recognized as an expense in the financial statements and that such cost be measured at the fair value of the awards. The Company determines the fair value of the award using the Black-Scholes option-pricing model. This excerpt taken from the LPL 20-F filed Apr 16, 2008. Stock Appreciation Plan Effective January 1, 2005, the Company adopted the provisions of Statement of Financial Accounting Standards No. 123(R), “Share-Based Payment” (“SFAS 123(R)”). SFAS 123(R) establishes accounting for share-based awards exchanged for employee services. Accordingly, share-based compensation cost is measured at grant date, based on the fair value of the award, and is recognized as expense over the requisite employee service period. The option price is determined by Black-Scholes Option Pricing Model. This excerpt taken from the LPL 6-K filed Mar 28, 2008. Stock Appreciation Plan Compensation costs for stock options granted to employees and executives are recognized on the basis of fair value. Under the fair value basis method, compensation costs for stock option plans are determined by calculating the difference between the exercise price and the market price of the underlying stock. Stock-based compensation cost is remeasured at each reporting date, based on the fair value of the award, and is recognized as expense over the agreed minimum service period. This excerpt taken from the LPL 6-K filed Feb 20, 2008. Stock Appreciation Plan Compensation costs for stock options granted to employees and executives are recognized on the basis of fair value. Under the fair value basis method, compensation costs for stock option plans are determined by calculating the difference between the exercise price and the market price of the underlying stock. Stock-based compensation cost is remeasured at each reporting date, based on the fair value of the award, and is recognized as expense over the agreed minimum service period. This excerpt taken from the LPL 20-F filed Apr 11, 2007. Stock Appreciation Plan Effective January 1, 2005, the company adopted the provisions of Statement of Financial Accounting Standards No. 123(R), “Share-Based Payment” (“SFAS 123(R)”). SFAS 123(R) establishes accounting for share-based awards exchanged for employee services. Accordingly, share-based compensation cost is measured at grant date, based on the fair value of the award, and is recognized as expense over the requisite employee service period. The option price is determined by Black-Scholes Option Pricing Model. This excerpt taken from the LPL 6-K filed Mar 30, 2007. 13. Stock Appreciation Plan On April 7, 2005, the Company granted 450,000 shares of stock appreciations rights (“SARs”) to certain executives. Under the terms of this plan, executives, upon exercising their SARs, are entitled to receive cash equal to the excess of the market price of the Company’s common stock over the exercise price of (Won) 44,050 per share. The exercise price decreased from (Won) 44,260 to (Won) 44,050 due to the additional issuance of common stock in 2005. These SARs are exercisable starting April 8, 2008, through April 7, 2012. Additionally, when the increase rate of the Company’s share price is the same or less than the increase rate of the Korea Composite Stock Price Index (“KOSPI”) over the three-year period following the grant date, only 50% of the initially granted shares can be exercised. The options activity under the SARs for the year ended December 31, 2006, follows:
¹ Options canceled due to the retirement of several executive officers. The Company did not recognize any compensation costs in 2006 as market price is below the exercise price as of December 31, 2006.
32
Table of ContentsLG. Philips LCD Co., Ltd. Notes to Non-Consolidated Financial Statements December 31, 2006 and 2005
This excerpt taken from the LPL 6-K filed Feb 20, 2007. 13. Stock Appreciation Plan On April 7, 2005, the Company granted 450,000 shares of stock appreciations rights (“SARs”) to certain executives. Under the terms of this plan, executives, upon exercising their SARs, are entitled to receive cash equal to the excess of the market price of the Company’s common stock over the exercise price of (Won) 44,050 per share. The exercise price decreased from (Won) 44,260 to (Won) 44,050 due to the additional issuance of common stock in 2005. These SARs are exercisable starting April 8, 2008, through April 7, 2012. Additionally, when the increase rate of the Company’s share price is the same or less than the increase rate of the Korea Composite Stock Price Index (“KOSPI”) over the three-year period following the grant date, only 50% of the initially granted shares can be exercised. The options activity under the SARs for the year ended December 31, 2006, follows:
The Company did not recognize any compensation costs in 2006 as market price is below the exercise price as of December 31, 2006.
85
Table of ContentsLG. Philips LCD Co., Ltd. Notes to Non-Consolidated Financial Statements December 31, 2006 and 2005
This excerpt taken from the LPL 20-F filed Dec 7, 2006. 14. Stock Appreciation Plan Effective January 1, 2005, the company adopted the provisions of Statement of Financial Accounting Standards (“SFAS”) No. 123(R), “Share-Based Payment” (“SFAS 123(R)”). SFAS 123(R) establishes
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LG. Philips LCD Co., Ltd. Notes to Consolidated Financial Statements—(Continued) December 31, 2003, 2004 and 2005
accounting for share-based awards exchanged for employee services. SFAS No. 123(R) requires that an award that is classified as a liability to be initially measured at its grant date fair value and remeasured at fair value at the end of each reporting period until the award is settled or expires. The measurement is based on the current stock price and other relevant factors. The difference between the fair value amounts is recognized as compensation expense during the requisite service period, based on the percentage of the requisite service that the employee has rendered as of that date. In accordance with SFAS No. 123(R), compensation expense is remeasured at each reporting date, based on the fair value of the award, and is recognized as expense over the employee requisite service period. On April 7, 2005, the Company granted 450,000 shares of stock appreciations rights (“SARs”) for selected management employees. Under the terms of this plan, management, on exercise, receive cash equal to the amount that the market price of the Company’s common stock exceeds the strike price ((Won)44,050) of the SARs. The vesting period is two years starting from the grant date, and exercisable period is April 8, 2008 through April 7, 2012. The following table shows total share-based compensation expense included in the consolidated statement of operations:
There were no capitalized share-based compensation costs at December 31, 2005. The following tables summarize option activity under the SARs for the year ended December 31, 2005:
In connection with the adoption of SFAS 123(R), the company assessed its valuation technique and related assumptions. The company estimates the fair value of stock options using a Black-Scholes valuation model, consistent with the provisions of SFAS 123(R) and Securities and Exchange Commission (SEC) Staff Accounting Bulletin No. 107. Key input assumptions used to estimate the fair value of stock options include the grant price of the award, the expected option term, volatility of the company’s stock, the risk-free rate and the company’s dividend yield. Estimates of fair value are not intended to predict actual future events or the value ultimately realized by selected managements who receive SARs, and subsequent events are not indicative of the reasonableness of the original estimates of fair value made by the Company under SFAS 123(R).
F-23
LG. Philips LCD Co., Ltd. Notes to Consolidated Financial Statements—(Continued) December 31, 2003, 2004 and 2005
The fair value of SARs was estimated using a Black-Scholes valuation model with the following assumptions:
This excerpt taken from the LPL 6-K filed Aug 14, 2006. 6. Stock Appreciation Plan Effective January 1, 2005, the company adopted the provisions of Statement of Financial Accounting Standards (“SFAS”) No. 123(R), “Share-Based Payment” (“SFAS 123(R)”). SFAS 123(R) establishes accounting for stock-based awards exchanged for employee services. SFAS No. 123(R) requires that an award that is classified as a liability to be initially measured at its grant date fair value and remeasured at fair value at the end of each reporting period until the award is settled or expires. The measurement is based on the current stock price and other relevant factors. The difference between the fair value amounts is recognized as compensation expense during the requisite service period, based on the percentage of the requisite service that the employee has rendered as of that date. In accordance with SFAS No. 123(R), compensation expense is remeasured at each reporting date, based on the fair value of the award, and is recognized as expense over the employee requisite service period. The following table shows total stock-based compensation expense included in the consolidated statement of operations:
There were no capitalized stock-based compensation costs at June 30, 2006 In connection with the adoption of SFAS 123(R), the company assessed its valuation technique and related assumptions. The company estimates the fair value of stock options using a Black-Scholes valuation model, consistent with the provisions of SFAS 123(R) and Securities and Exchange Commission (SEC) Staff Accounting Bulletin No. 107. Key input assumptions used to estimate the fair value of stock options include the grant price of the award, the expected option term, volatility of the company’s stock, the risk-free rate and the company’s dividend yield. Estimates of fair value are not intended to predict actual future events or the value ultimately realized by selected managements who receive SARs, and subsequent events are not indicative of the reasonableness of the original estimates of fair value made by the company under SFAS 123(R). This excerpt taken from the LPL 20-F filed Jun 21, 2006. 14. Stock Appreciation Plan Effective January 1, 2005, the company adopted the provisions of Statement of Financial Accounting Standards (“SFAS”) No. 123(R), “Share-Based Payment” (“SFAS 123(R)”). SFAS 123(R) establishes
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Table of ContentsLG. Philips LCD Co., Ltd. Notes to Consolidated Financial Statements—(Continued) December 31, 2003, 2004 and 2005
accounting for share-based awards exchanged for employee services. SFAS No. 123(R) requires that an award that is classified as a liability to be initially measured at its grant date fair value and remeasured at fair value at the end of each reporting period until the award is settled or expires. The measurement is based on the current stock price and other relevant factors. The difference between the fair value amounts is recognized as compensation expense during the requisite service period, based on the percentage of the requisite service that the employee has rendered as of that date. In accordance with SFAS No. 123(R), compensation expense is remeasured at each reporting date, based on the fair value of the award, and is recognized as expense over the employee requisite service period. On April 7, 2005, the Company granted 450,000 shares of stock appreciations rights (“SARs”) for selected management employees. Under the terms of this plan, management, on exercise, receive cash equal to the amount that the market price of the Company’s common stock exceeds the strike price ((Won)44,050) of the SARs. The vesting period is two years starting from the grant date, and exercisable period is April 8, 2008 through April 7, 2012. The following table shows total share-based compensation expense included in the consolidated statement of operations:
There were no capitalized share-based compensation costs at December 31, 2005. The following tables summarize option activity under the SARs for the year ended December 31, 2005:
In connection with the adoption of SFAS 123(R), the company assessed its valuation technique and related assumptions. The company estimates the fair value of stock options using a Black-Scholes valuation model, consistent with the provisions of SFAS 123(R) and Securities and Exchange Commission (SEC) Staff Accounting Bulletin No. 107. Key input assumptions used to estimate the fair value of stock options include the grant price of the award, the expected option term, volatility of the company’s stock, the risk-free rate and the company’s dividend yield. Estimates of fair value are not intended to predict actual future events or the value ultimately realized by selected managements who receive SARs, and subsequent events are not indicative of the reasonableness of the original estimates of fair value made by the Company under SFAS 123(R).
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Table of ContentsLG. Philips LCD Co., Ltd. Notes to Consolidated Financial Statements—(Continued) December 31, 2003, 2004 and 2005
The fair value of SARs was estimated using a Black-Scholes valuation model with the following assumptions:
This excerpt taken from the LPL 6-K filed May 15, 2006. 7. Stock Appreciation Plan On April 7, 2005, the Company granted 450,000 shares of stock appreciations rights (“SARs”) for certain executives. Under the terms of this plan, executives, upon exercising their SARs, are entitled to receive cash equal to the excess of the market price of the Company’s common stock over the exercise price of (Won) 44,050 per share. The exercise price decreased from (Won) 44,260 to (Won) 44,050 due to the additional issuance of common stock in 2005. These SARs are exercisable on or after April 8, 2008, through April 7, 2012. Additionally, when the increase rate of the Company’s share price is the same or less than the increase rate of the Korea Composite Stock Price Index (“KOSPI”) over the three-year period following the grant date, only 50% of the initially granted shares can be exercised. The options activity under the SARs since April 7, 2005 is as follows:
¹Options canceled due to the retirement of an executive officer in 2005.
See Report of Independent Accountants 11
Table of ContentsLG. Philips LCD Co., Ltd. Notes to Non-Consolidated Financial Statements March 31, 2006 and 2005, and December 31, 2005 (Unaudited)
The compensation costs recognized for the three-month period ended March 31, 2006 and after April 1, 2006, are as follows: (in millions of Korean won)
¹ The Company did not recognize any compensation costs in 2005 as market price is below the exercise price as of December 31, 2005. ² As of April 7, 2005, (Won)12 million of total unrecognized compensation costs related to non-vested awards is expected to be recognized over the next 12 months of residual contract service periods. This excerpt taken from the LPL 6-K filed Mar 31, 2006. Stock Appreciation Plan Effective January 1, 2005, the company adopted the provisions of Statement of Financial Accounting Standards No. 123(R), “Share-Based Payment” (“SFAS 123(R)”). SFAS 123(R) establishes accounting for share-based awards exchanged for employee services. Accordingly, share-based compensation cost is measured at grant date, based on the fair value of the award, and is recognized as expense over the requisite employee service period. The option price is determinded by Black-Scholes Option Pricing Model. This excerpt taken from the LPL 6-K filed Feb 14, 2006. 13. Stock Appreciation Plan
On April 7, 2005, the Company granted 450,000 shares of stock appreciations rights (“SARs”) for certain executives. Under the terms of this plan, executives, upon exercising their SARs, are entitled to receive cash equal to the excess of the market price of the Company’s common stock over the exercise price of (Won) 44,050 per share. The exercise price decreased from (Won) 44,260 to (Won) 44,050 due to the additional issuance of common stock in 2005. These SARs are exercisable on or after April 8, 2008, through April 7, 2012. Additionally, when the increase rate of the Company’s share price is the same or less than the increase rate of the Korea Composite Stock Price Index (“KOSPI”) over the three-year period following the grant date, only 50% of the initially granted shares can be exercised.
The options activity under the SARs for the year ended December 31, 2005, follows:
The Company did not recognize any compensation costs in 2005 as market price is below the exercise price as of December 31, 2005.
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Table of ContentsLG. Philips LCD Co., Ltd. Notes to Non-Consolidated Financial Statements December 31, 2005 and 2004
This excerpt taken from the LPL 6-K filed Nov 14, 2005. Stock Appreciation Plan
Compensation costs for stock options granted to employees and executives are recognized on the basis of intrinsic value. Under the intrinsic value basis method, compensation costs for stock option plans are determined by calculating the difference between the exercise price and the market price of the underlying stock. Stock-based compensation cost is remeasured at each reporting date, based on the intrinsic value of the award, and is recognized as expense over the agreed minimum service period.
These excerpts taken from the LPL 6-K filed Aug 16, 2005. Stock Appreciation Plan
Compensation costs for stock options granted to employees and executives are recognized on the basis of intrinsic value. Under the intrinsic value basis method, compensation costs for stock option plans are determined by calculating the difference between the exercise price and the market price of the underlying stock. Stock-based compensation cost is remeasured at each reporting date, based on the intrinsic value of the award, and is recognized as expense over the agreed minimum service period.
Stock Appreciation Plan
Compensation costs for stock options granted to employees and executives are recognized on the basis of intrinsic value. Under the intrinsic value basis method, compensation costs for stock option plans are determined by calculating the difference between the exercise price and the market price of the underlying stock. Stock-based compensation cost is remeasured at each reporting date, based on the intrinsic value of the award, and is recognized as expense over the agreed minimum service period.
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