Omron 2003 Annual Report Download - page 45

Under the Code, the amount legally available for dividends is based on retained earnings as recorded in the
books of the Company for Japanese financial reporting purposes. At March 31, 2003, retained earnings amounting
to ¥36,472 million ($303,933 thousand) were available for future dividends subject to legal reserve requirements.
The Company acquired the minority interests of certain domestic subsidiaries in exchange for the Company’s
common stock previously held in its treasury. For the year ended March 31, 2003, the Company reissued 52,275
shares of treasury stock to acquire minority interests with book values and fair values of ¥84 million ($700 thou-
sand). These transactions resulted in a combined loss on reissuance of treasury stock of ¥32 million ($267 thou-
sand), representing the aggregate difference between the cost of shares repurchased and the fair market value of
shares reissued on the effective date of acquisition. The loss was charged directly to retained earnings.
Stock Options
The Company has authorized the grant of options to purchase common stock of the Company to certain direc-
tors and officers of the Company under a fixed stock option plan. All of the authorized shares available for grant
have been granted.
Under the above plan, the exercise price of each option exceeded the market price of the Company’s common
stock on the date of grant and the options expire 5 years after the date of the grant. Generally, options become fully
vested and exercisable after 3 years. A summary of the Company’s fixed stock option plan activity and related
information is as follows:
Yen
Weighted-average
Weighted-average fair value of options
Fixed options Shares exercise price granted during the year
Options outstanding at April 1, 2000................................................. 307,000 ¥1,995
Granted.......................................................................................... 260,000 2,936 ¥424
Exercised ....................................................................................... (64,000) 2,161
Forfeited ........................................................................................ (5,000) 1,839
Options outstanding at March 31, 2001............................................ 498,000 2,467
Granted.......................................................................................... 292,000 2,306 325
Exercised ....................................................................................... (10,000) 1,839
Expired........................................................................................... (85,000) 2,161
Options outstanding at March 31, 2002............................................ 695,000 2,446
Granted.......................................................................................... 276,000 1,913 285
Options outstanding at March 31, 2003............................................ 971,000 ¥2,294
U.S. dollars
Weighted-average
Weighted-average fair value of options
exercise price granted during the year
Options outstanding at March 31, 2002 .............................................................. $20.4
Granted ............................................................................................................ 15.9 $2.4
Options outstanding at March 31, 2003 .............................................................. $19.1
Yen
Weighted-average
Shares exercise price
Options exercisable at March 31, 2001 ................................................................... 85,000 ¥2,161
Options exercisable at March 31, 2002 ................................................................... 143,000 ¥1,839
Options exercisable at March 31, 2003 ................................................................... 403,000 ¥2,547
U.S. dollars
Weighted-average
exercise price
Options exercisable at March 31, 2003............................................................................................ $21.2
Annual Report 2003 • 43