LensCrafters 2006 Annual Report Download - page 148

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Asummary of option activity under the performance plans as of December 31, 2006, and changes
during the year then ended are as follows:
Performance plan Number Weighted Weighted Aggregate
of options average average intrinsic
oustanding exercise price remaining value
(Euro) (1) contractual terms (Euro/000)
Outstanding as of December 31, 2005 10,600,000 13.79
Granted 13,000,000 21.27
Forfeitures
Exercised
Outstanding as of December 31, 2006 23,600,000 17.91 8.61 126,696
Exercisable at December 31, 2006 9,600,000 13.67 7.67 92,256
The weighted-average fair value of grant-date fair value options granted during the years 2004,
and 2006 was Euro 3.99, and Euro 5.13, respectively. There were no performance grants issued in
2005.
Cash received from option exercises under all share-based arrangements and actual tax benefits
realized for the tax deductions from option exercises are disclosed in the Consolidated Statement
of Shareholders’ Equity.
12. SHAREHOLDERS' EQUITY
In June 2005 and June 2006, the Company’s Annual Shareholders Meetings approved cash
dividends of Euro 103.5 million and Euro 131.4 million, respectively. These amounts became
payable in June 2005 and June 2006, respectively.Italian law requires that 5% of net income be
retained as a legal reserve until this reserve is equal to one-fifth of the issued share capital. As
such, this legal reserve is not available for dividends to the shareholders. Legal reserves of the
Italian entities included in retained earnings were Euro 8.6 million at December 31, 2005 and 2006,
respectively. In addition Euro 5.3 million of other legal reserves of foreign entities is not available for
dividends to the shareholders.
Luxottica Group’s legal reserve rollforward for fiscal period 2004-2006 is detailed as follows:
(Euro/000)
January 1, 2004 5,451
Increase in fiscal year 2004 3
December 31, 2004 5,454
Increase in fiscal year 2005 23
December 31, 2005 5,477
Increase in fiscal year 2006 36
December 31, 2006 5,513
>148 | ANNUAL REPORT 2006