Nikon 2012 Annual Report Download - page 46

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NIKON CORPORATION ANNUAL REPORT 2012
The Companies Act permits companies to distribute divi-
dends in kind (non-cash assets) to shareholders subject to
a certain limitation and additional requirements.
Semiannual interim dividends may also be paid once a year
upon resolution by the Board of Directors if the articles of
incorporation of the company so stipulate. The Companies
Act provides certain limitations on the amounts available for
dividends or the purchase of treasury stock. The limitation is
defined as the amount available for distribution to the share-
holders, but the amount of net assets after dividends must be
maintained at no less than ¥3 million.
(b) Increases/Decreases and Transfer of Common Stock,
Reserve and Surplus
The Companies Act requires that an amount equal to 10%
of dividends must be appropriated as a legal reserve (a com-
ponent of retained earnings) or as additional paid-in capital
(a component of capital surplus) depending on the equity
account charged upon the payment of such dividends until
the total of aggregate amount of the legal reserve and addi-
tional paid-in capital equals 25% of the common stock. Under
the Companies Act, the total amount of additional paid-in
capital and the legal reserve may be reversed without limita-
tion. The Companies Act also provides that common stock,
legal reserve, additional paid-in capital, other capital surplus
and retained earnings can be transferred among the accounts
under certain conditions upon resolution of the shareholders.
(c) Treasury Stock and Treasury Stock Acquisition Rights
The Companies Act also provides for companies to purchase
treasury stock and dispose of such treasury stock by resolu-
tion of the Board of Directors. The amount of treasury stock
purchased cannot exceed the amount available for distribution
to the shareholders, which is determined by a specific
formula.
Under the Companies Act, stock acquisition rights are
presented as a separate component of equity.
The Companies Act also provides that companies can
purchase both treasury stock acquisition rights and treasury
stock. Such treasury stock acquisition rights are presented
as a separate component of equity or deducted directly from
stock acquisition rights.
9. Stock Options
The stock options outstanding as of March 31, 2012 were as follows:
Stock Options
Persons
Granted
Number of
Options Granted
Date of
Grant
Exercise
Price Exercise Period
2001 Stock Options 9 directors 99,000 shares June 28, 2001 ¥1,321 From June 29, 2003
13 officers to June 28, 2011
2003 Stock Options 11 directors 203,000 shares June 27, 2003 ¥1,048 From June 28, 2005
11 officers to June 27, 2013
2004 Stock Options 12 directors 210,000 shares June 29, 2004 ¥1,225 From June 30, 2006
10 officers to June 29, 2014
2005 Stock Options 11 directors 178,000 shares June 29, 2005 ¥1,273 From June 30, 2007
10 officers to June 29, 2015
2007 Stock Options 12 directors 99,000 shares March 14, 2007 ¥2,902 From February 28, 2009
12 officers to February 27, 2017
2007 Stock Options 8 directors 26,100 shares August 27, 2007 ¥ 1 From August 28, 2007
15 officers to August 27, 2037
2008 Stock Options 8 directors 117,900 shares November 25, 2008 ¥ 1 From November 26, 2008
16 officers to November 25, 2038
2009 Stock Options 9 directors 68,100 shares August 10, 2009 ¥ 1 From August 11, 2009
15 officers to August 10, 2039
2010 Stock Options 10 directors 66,800 shares July 14, 2010 ¥ 1 From July 15, 2010
13 officers to July 14, 2040
2012 Stock Options 10 directors 99,700 shares March 19, 2012 ¥ 1 From March 20, 2012
14 officers to March 19, 2042