10. Share-based payments

10.1 Accounting policy

The Company principally operates equity-settled share-based payment arrangements for its employees. Equity-settled share-based payments are measured at fair value at the date of grant. The fair value determined at the grant date takes account of the effect of market-based conditions, such as the Total Shareholder Return target upon which vesting for some of the awards is conditional, and is expensed on a straight-line basis over the vesting period with a corresponding increase in equity. The cumulative expense recognised is adjusted for the best estimate of the shares that will eventually vest and for the effect of other non market-based vesting conditions, such as growth in headline earnings per share, which are not included in the fair value determined at the date of grant. For grants with market-based conditions attaching to them, fair value is measured using a form of stochastic option pricing model. For all other grants, fair value is measured using the Black–Scholes model.

10.2 Profit and loss account recognition

The Company operates a number of different share-based payment schemes, the main features of which are detailed in the Directors' Remuneration Report.

10.3 Details of outstanding options

The information in the tables below has been restated to take into account the demerger of the Alent business from the Cookson Group. The number of share options, and other related disclosures, were adjusted with reference to the Vesuvius share price at the date of demerger.

The demerger was effective on 19 December 2012, at which point certain employees previously employed by other Group companies were transferred to Vesuvius plc. The share options attached to these employees is shown in the table below, and represents the options outstanding at the date of transfer.

Outstanding awardsAwards
exercisable
as at
31
December
2012
no.
Weighted
average
outstanding
contractual
life of
awards
years
Range of
exercise
prices
pence
As at 17
September
2012
no.
Transfers
no.
As at
31
Decembe
2012
no.
LTIP847,076847,0761.3
Weighted average exercise pricenilnilniln/a
Other plans108,805108,8051.8
Weighted average exercise pricenilnilniln/a

Details of options granted during the year prior to the date of transfer can be found in note 32 of the Consolidated Financial Statements.