LensCrafters 2004 Annual Report Download - page 137
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
136
subsidiaries provide limited non-pension benefits to
retirees in addition to government sponsored
programs. The cost of these programs is not
significant to the Company.
10. STOCK OPTION
AND INCENTIVE PLANS
STOCK OPTION PLAN
Beginning in April 1998, certain officers and other key
employees of the Company and its subsidiaries were
granted stock options of Luxottica Group S.p.A. under
the Company’s stock option plan. The stock options
were granted at a price equal to the market value of
the shares at the date of grant. These options become
exercisable in three equal annual installments from the
date of grant and expire on or before January 31,
2012.
As Luxottica Group has elected to apply APB 25, no
compensation expense was recognized because the
option exercise price was equal to the quoted market
value on the date of grant.
The following table summarizes information about
stock options for each year:
Outstanding as of January 1, 2002
Granted
Forfeitures
Exercised
Outstanding as of December 31, 2002
Granted
Forfeitures
Exercised
Outstanding as of December 31, 2003
Granted
Forfeitures
Exercised
Outstanding as of December 31, 2004
7,407,783
2,348,400
(248,367)
(1,397,783)
8,110,033
2,397,300
(176,600)
(213,433)
10,117,300
2,035,500
(70,300)
(728,440)
11,354,060
Number of options
outstanding
9.67
16.98
14.54
6.67
11.51
10.51
11.77
6.97
10.29
13.79
9.73
8.07
10.74
Weighted average exercise price
(in Euro) (1)
(1) For convenience all amounts
are translated at the noon
buying rate in effect at the end of
each year.
(2) Certain options were granted
in U.S. Dollars and have been
converted using a December 31,
2004 conversion rate of Euro
1.00 to US$ 1.3538.
1
2
3
4
5
6
7
Grant
807,250
1,161,960
1,292,700
1,669,850
2,150,700
2,236,100
2,035,500
Number outstanding
7.38
4.38
9.52
11.23
13.15
10.51
13.79
Exercise price
(in Euro) (2)
807,250
1,161,960
1,292,700
1,669,850
1,429,000
689,100
0
Number exercisable
2.1
3.1
4.1
5.1
6.1
7.1
8.1
Remaining life (years)
Stock option grants outstanding at December 31, 2004 are summarized as follows:
Included as an addition to the Company’s paid-in capital
account in fiscal years 2003 and 2004 is Euro 0.3 million
and Euro 0.8 million, respectively, of tax benefits the
Company received from employees exercising these
stock options.