SIGNIFICANT FACTORS AND ASSUMPTIONS
2015
Grant date
3/11/2014
17/03/2015
Share price on grant date ($)
$6.51
$5.99
Risk free interest rate (%)
2.80%
2.38%
Expected dividend yield (%)
5.82%
6.31%
Expected life of rights (years)
*
3 or 4 years
3 or 4 years
2014
Grant date
1/11/2013
11/03/2014
Share price on grant date ($)
$6.13
$5.41
Risk free interest rate (%)
5.71%
3.13%
Expected dividend yield (%)
3.25%
6.44%
Expected life of rights (years)
*
3 or 4 years
3 or 4 years
* The expected life for the ROE rights is three years and four years for TSR rights.
B. EMPLOYEE SHARE PLANS
Offers were made under the employee share plans during the year ended 30 June 2015 in Australia and New Zealand which gave
employees the opportunity to own a stake in IAG and share in the Group's future success.
Under the plans, shares are purchased under salary sacrifice arrangements, allowing employees to acquire shares in a tax effective
manner, and IAG contributes towards 10% of the cost of the share purchase. IAG ordinary shares taken up through the plans do not
incur any brokerage. The salary sacrifice arrangements and structure of the plans differ between jurisdictions to comply with local
legislation and utilise tax concessions.
NOTE 29. COMMITMENTS
CONSOLIDATED
2015
2014
$m
$m
OPERATING LEASE COMMITMENTS
I. Property
Due within 1 year
130
134
Due within 1 to 2 years
113
118
Due within 2 to 5 years
192
263
Due after 5 years
40
85
II. Equipment
Due within 1 year
20
19
Due within 1 to 2 years
12
18
Due within 2 to 5 years
13
24
520
661
Certain property, motor vehicles and computer equipment are leased under non-cancellable operating leases. Most leases are subject
to annual reviews with increases subject to a set percentage or based on either movements in consumer price indices or operating
criteria. Where appropriate, a right of renewal has been incorporated into the lease agreements at which time all terms and conditions
may be renegotiated. There are no options to purchase the relevant assets on expiry of the lease.
92 IAG ANNUAL REPORT 2015
