Omron 2003 Annual Report Download - page 46

The following summarizes information about fixed stock options at March 31, 2003:
Options outstanding Options exercisable
Yen Yen Yen
Weighted-average
Range of remaining Weighted-average Weighted-average
exercise prices Shares contractual life exercise price Shares exercise price
¥1,839 143,000 1.25 years ¥1,839 143,000 ¥1,839
2,936 260,000 2.25 years 2,936 260,000 2,936
2,306 292,000 3.25 years 2,306 — —
1,913 276,000 4.25 years 1,913 — —
¥1,839 to ¥2,936 971,000 2.97 years ¥2,294 403,000 ¥2,547
Options outstanding Options exercisable
U.S. dollars U.S. dollars U.S. dollars
Weighted-average
Range of remaining Weighted-average Weighted-average
exercise prices Shares contractual life exercise price Shares exercise price
$15.3 143,000 1.25 years $15.3 143,000 $15.3
24.5 260,000 2.25 years 24.5 260,000 24.5
19.2 292,000 3.25 years 19.2 — —
15.9 276,000 4.25 years 15.9 — —
$15.3 to $24.5 971,000 2.97 years $19.1 403,000 $21.2
The fair value of each option grant was estimated as of the grant date using the Black-Scholes option-pricing
model with the following assumptions:
2003 2002 2001
Risk-free interest rate ....................................................................................... 0.271% 0.560% 0.650%
Volatility ........................................................................................................... 25.0 20.0 20.0
Dividend yield ................................................................................................... 0.559 0.576 0.451
Expected life ..................................................................................................... 3.5 years 3.5 years 3.5 years
The Black-Scholes option valuation model used by the Company was developed for use in estimating the fair
value of fully tradable options, which have no vesting restrictions and are fully transferable. In addition, option valu-
ation models require the input of highly subjective assumptions including the expected stock price volatility. It is
management’s opinion that the Company’s stock options have characteristics significantly different from those of
traded options and because changes in the subjective input assumptions can materially affect the fair value esti-
mate, the existing models do not necessarily provide a reliable single measure of the fair value of its stock options.
Other expenses (income), net for the years ended March 31, 2003, 2002 and 2001 consisted of the following:
Thousands of
Millions of yen U.S. dollars
2003 2002 2001 2003
Loss on relocation ........................................................... ¥— ¥— ¥2,312 $—
Loss on impairment of investment
securities and other assets............................................ 2,269 17,199 2,460 18,908
Net loss (gain) on sales and disposals of
property, plant and equipment,
excluding loss on relocation.......................................... 11 1,314 (43) 92
Loss on impairment of
property, plant and equipment ...................................... 4,231 6,815 — 35,258
Net loss (gain) on sales of short-term investments
and investment securities.............................................. 1,221 (1,008) (3,703) 10,175
Net gain on sales of business entities ............................. (1,550) ——(12,917)
Voluntary early retirement program ................................. 18,968 ——158,067
Other, net......................................................................... 1,508 3,545 1,786 12,567
Total............................................................................. ¥26,658 ¥27,865 ¥ 2,812 $222,150
10. Other
Expenses, net
44 • Omron Corporation