Pentax 2002 Annual Report Download - page 49

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47
No»16 derivatives
The Group enters into foreign currency forward contracts to hedge foreign exchange risk associated with certain assets and
liabilities denominated in foreign currencies.
All derivative transactions are entered into to hedge foreign currency exposures incorporated within its business. Accordingly,
market risk in these derivatives is basically offset by opposite movements in the value of hedged assets or liabilities.
Because the counterparties to these derivatives are limited to major international financial institutions, the Group does not
anticipate any losses arising from credit risk.
Derivative transactions entered into by the Group have been made in accordance with internal policies which regulate the
authorization and credit limit amount.
According to the new accounting standards for derivative financial instruments, foreign currency forward contracts which
qualify for hedge accounting for the years ended March 31, 2002 and 2001 and such amounts which are assigned to the
associated assets or liabilities and are recorded on the balance sheet at March 31, 2002 and 2001, are not subjected to disclose
market value information.
No»17 subsequent event
(1) Appropriations of Retained Earnings
The following appropriations of retained earnings for the year ended March 31, 2002 were approved at the Company’s
shareholders meeting held on June 21, 2002:
Thousands of
Millions of Yen U.S. Dollars
Year-end cash dividends, ¥25.00 ($0.19) per share ¥2,903 $21,827
Bonuses to directors 96 722
Total ¥2,999 $ 22,549
In addition to the cash dividends described above, the Company paid interim cash dividends of ¥2,903 million [$21,827
thousand, ¥25.00 ($0.19) per share] on October 22, 2001, to shareholders of record as of September 30, 2001, based on a
resolution of the Board of Directors.
(2) Stock Option Plan and Purchase of Treasury Stock
At the Company’s shareholders meeting held on June 21, 2002, the Company’s shareholders approved the following stock
option plan for the Group’s directors and key employees and the purchase of treasury stock for the stock option plan and
retirement and the related reduction of retained earnings:
a. Stock option plan
The plan provides for granting options to the Group’s directors and key employees to purchase up to 3,500 thousand shares of
the Company’s common stock in the period from October 1, 2003 to September 30, 2007. The options are granted at an
exercise price at the fair value at the previous date of the option grant. The Company plans to issue acquired treasury stock
upon exercise of the stock options.
b. Purchase of treasury stock
The Company is authorized to repurchase up to 1,160 million shares of the Company’s common stock (aggregate amount of
¥105 billion).