XML 87 R26.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Employee share ownership plans | 12 Months Ended
--- | ---
Jun. 30, 2018
Text block1 [abstract] |
Employee share ownership plans | 22 Employee share ownership plans Awards, in the form of the right to receive ordinary shares in either BHP Billiton Limited or BHP Billiton Plc, have been granted under the following employee share ownership plans: Long-Term Incentive Plan (LTIP), Short-Term Incentive Plan (STIP), Management Award Plan (MAP), Group Short-Term Incentive Plan (GSTIP), Transitional Executive KMP awards and the all-employee share plan, Shareplus. Some awards are eligible to receive a cash payment, or the equivalent value in shares, equal to the dividend amount that would have been earned on the underlying shares awarded to those participants (the Dividend Equivalent Payment, or DEP). The DEP is provided to the participants once the underlying shares are allocated or transferred to them. Awards under the plans do not confer any rights to participate in a share issue; however, there is discretion under each of the plans to adjust the awards in response to a variation in the share capital of BHP Billiton Limited or BHP Billiton Plc. The table below provides a description of each of the plans.
Plan |  | STIP and GSTIP |  | LTIP and MAP |  | Transitional Executive KMP awards |  | Shareplus
Type |  | Short-term incentive |  | Long-term incentive |  | Long-term incentive |  | All-employee share purchase plan
Overview |  | The STIP is a plan for the Executive KMP and the GSTIP is a plan for BHP senior management who are not KMP. Under both plans, half of the value of a participant’s short-term incentive amount is awarded as rights to receive BHP Billiton Limited or BHP Billiton Plc shares at the end of the vesting period. |  | The LTIP is a plan for Executive KMP and awards are granted annually. The MAP is a plan for BHP senior management who are not KMP. The number of share rights awarded is determined by a participant’s role and grade. |  | Awards may be granted to new Executive KMP recruited from within the Group to bridge the gap created by the different timeframes of the vesting of MAP awards, granted in their non-KMP role, and LTIP awards, granted to Executive KMP. No Transitional awards were granted to Executive KMP in FY2018. |  | Employees may contribute up to US$5,000 to acquire shares in any plan year. On the third anniversary of the start of a plan year, the Group will match the number of acquired shares.
Vesting conditions |  | Service condition only. |  | LTIP: Service and performance conditions. For awards granted from December 2013 onwards, BHP’s Total Shareholder Return (TSR)(1) performance relative to the Peer Group TSR over a five-year performance period determines the vesting of 67 per cent of the awards, while performance relative to the Index TSR (being the index value where the comparator group is a market index) determines the vesting of 33 per cent of the awards. For the awards to vest in full, BHP’s TSR(1) must exceed the Peer Group TSR and Index TSR (if applicable) by a specified percentage per year, determined for each grant by the Remuneration Committee. Since the establishment of the LTIP in 2004, this percentage has been set at 5.5 per cent per year. MAP: Service conditions only. |  | Service conditions and performance conditions. The Remuneration Committee has absolute discretion to determine if the performance condition has been met and whether any, all or part of the award will vest (or otherwise lapse), having regard to (but not limited to) the BHP’s TSR(1) over the three- or four-year performance period (respectively), the participant’s contribution to Group outcomes and the participant’s personal performance (with guidance on this assessment from the CEO). |  | Service conditions only.
Vesting period |  | 2 years |  | LTIP – 5 years MAP – 1 to 5 years |  | 3 years or 4 years |  | 3 years
Dividend Equivalent Payment |  | Yes, except GSTIP awards granted after 1 July 2011 |  | Yes, except MAP granted after 1 July 2011 |  | No |  | No
Exercise period |  | None |  | LTIP – None MAP – None |  | None |  | None
(1) | BHP’s TSR is the weighted average of the TSRs of BHP Billiton Limited and BHP Billiton Plc.
Employee share awards
2018 |  | Number of awards at the beginning of the financial year |  |  | Number of awards issued during the year |  |  | Number of awards vested and exercised |  |  | Number of awards lapsed |  |  | Number of awards at the end of the financial year |  |  | Number of awards vested and exercisable at the end of the financial year |  |  | Weighted average remaining contractual life (years) |
BHP Billiton Limited |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
STIP awards |  |  | 497,634 |  |  |  | 274,743 |  |  |  | 464,349 |  |  |  | – |  |  |  | 308,028 |  |  |  | – |  |  |  | 1.0 |
GSTIP awards |  |  | 2,001,583 |  |  |  | 1,422,338 |  |  |  | 1,383,656 |  |  |  | 31,810 |  |  |  | 2,008,455 |  |  |  | 28,981 |  |  |  | 0.8 |
LTIP awards |  |  | 4,679,513 |  |  |  | 1,523,309 |  |  |  | 65,247 |  |  |  | 156,600 |  |  |  | 5,980,975 |  |  |  | – |  |  |  | 2.5 |
Transitional OMC awards |  |  | 137,194 |  |  |  | – |  |  |  | 61,485 |  |  |  | 28,869 |  |  |  | 46,840 |  |  |  | – |  |  |  | 0.7 |
MAP awards |  |  | 7,348,428 |  |  |  | 5,731,891 |  |  |  | 2,185,614 |  |  |  | 515,442 |  |  |  | 10,379,263 |  |  |  | 60,134 |  |  |  | 1.5 |
Shareplus |  |  | 5,998,517 |  |  |  | 2,483,091 |  |  |  | 3,184,545 |  |  |  | 521,984 |  |  |  | 4,775,079 |  |  |  | – |  |  |  | 1.2 |
Employee Share Plan shares (legacy plan) |  |  | 338,883 |  |  |  | – |  |  |  | 338,883 |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | n/a |
BHP Billiton Plc |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
GSTIP awards |  |  | 84,250 |  |  |  | 40,957 |  |  |  | 59,577 |  |  |  | 1,762 |  |  |  | 63,868 |  |  |  | – |  |  |  | 0.8 |
LTIP awards |  |  | 386,912 |  |  |  | – |  |  |  | 74,988 |  |  |  | 311,924 |  |  |  | – |  |  |  | – |  |  |  | n/a |
MAP awards |  |  | 596,443 |  |  |  | 133,926 |  |  |  | 406,783 |  |  |  | 8,135 |  |  |  | 315,451 |  |  |  | – |  |  |  | 1.3 |
Shareplus |  |  | 336,108 |  |  |  | 137,832 |  |  |  | 165,450 |  |  |  | 26,331 |  |  |  | 282,159 |  |  |  | – |  |  |  | 1.2 |
Fair value and assumptions in the calculation of fair value for awards issued
2018 |  | Weighted average fair value of awards granted during the year US$ |  |  | Risk-free interest rate |  |  | Estimated life of awards |  |  | Share price at grant date |  |  | Estimated volatility of share price |  |  | Dividend yield |
BHP Billiton Limited |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
STIP awards |  |  | 20.65 |  |  |  | n/a |  |  |  | 3 years |  |  |  | A$27.97 |  |  |  | n/a |  |  |  | n/a |
GSTIP awards |  |  | 18.83 |  |  |  | n/a |  |  |  | 3 years |  |  |  | A$25.98 |  |  |  | n/a |  |  |  | 4.30 | %
LTIP awards |  |  | 13.11 |  |  |  | 2.08 | % |  |  | 5 years |  |  |  | A$27.97 |  |  |  | 33.0 | % |  |  | n/a |
MAP awards |  |  | 18.37 |  |  |  | n/a |  |  |  | 1-2-3 years |  |  |  | A$25.98 |  |  |  | n/a |  |  |  | 4.30 | %
Shareplus |  |  | 18.12 |  |  |  | 1.85 | % |  |  | 3 years |  |  |  | A$24.00 |  |  |  | n/a |  |  |  | 4.33 | %
BHP Billiton Plc |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
GSTIP awards |  |  | 16.48 |  |  |  | n/a |  |  |  | 3 years |  |  |  | £13.29 |  |  |  | n/a |  |  |  | 5.10 | %
MAP awards |  |  | 15.62 |  |  |  | n/a |  |  |  | 1-2-3 years |  |  |  | £13.29 |  |  |  | n/a |  |  |  | 5.10 | %
Shareplus |  |  | 13.48 |  |  |  | 0.17 | % |  |  | 3 years |  |  |  | £12.34 |  |  |  | n/a |  |  |  | 5.10 | %
Employee share awards expense is US$123.313 million (2017: US$106.214 million; 2016: US$140.445 million). (1)
(1) | Total employee share awards expense includes Onshore US. Refer to note 4 ‘Expenses and other income’ employee share awards for continuing operations.
Recognition and measurement The fair value at grant date of equity-settled share awards is charged to the income statement over the period for which the benefits of employee services are expected to be derived. The fair values of awards granted were estimated using a Monte Carlo simulation methodology and Black-Scholes option pricing technique and consider the following factors:
• |  | exercise price;
• |  | expected life of the award;
• |  | current market price of the underlying shares;
• |  | expected volatility using an analysis of historic volatility over different rolling periods. For the LTIP, it is calculated for all sector comparators and the published MSCI World index;
• |  | expected dividends;
• |  | risk-free interest rate, which is an applicable government bond rate;
• |  | market-based performance hurdles;
• |  | non-vesting conditions.
Where awards are forfeited because non-market-based vesting conditions are not satisfied, the expense previously recognised is proportionately reversed. The tax effect of awards granted is recognised in income tax expense, except to the extent that the total tax deductions are expected to exceed the cumulative remuneration expense. In this situation, the excess of the associated current or deferred tax is recognised in other comprehensive income and forms part of the employee share awards reserve. The fair value of awards as presented in the tables above represents the fair value at grant date. In respect of employee share awards, the Group utilises the Billiton Employee Share Ownership Trust and the BHP Billiton Limited Employee Equity Trust. The trustees of these trusts are independent companies, resident in Jersey. The trusts use funds provided by the Group to acquire ordinary shares to enable awards to be made or satisfied. The ordinary shares may be acquired by purchase in the market or by subscription at not less than nominal value. The BHP Billiton Limited Employee Equity Trust has waived its rights to current and future dividends on shares held to meet future awards under the plans.

X
- Definition Text block. + References No definition available. + Details
Name: | bhp_TextBlock1Abstract
Namespace Prefix: | bhp_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for share-based payment arrangements. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IFRS -Number 2 -IssueDate 2017-01-01 -Paragraph 44 -URI http://eifrs.ifrs.org/eifrs/XBRL?type=IFRS&num=2&date=2017-03-01&anchor=para_44&doctype=Standard -URIDate 2017-03-09 + Details
Name: | ifrs-full_DisclosureOfSharebasedPaymentArrangementsExplanatory
Namespace Prefix: | ifrs-full_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration