Casio 2004 Annual Report Download - page 39

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ANNUAL REPORT 2004
14. CONTINGENT LIABILITIES
At March 31, 2004, the Group was contingently liable for trade notes and export drafts discounted with banks in the amount of
¥3,116 million ($29,396 thousand) and as guarantor of others for bank loans in the amount of ¥1,032 million ($9,736 thousand).
15. STOCK OPTION
By special resolution at the 46th annual shareholders’ meeting held on June 27, 2002, the Company introduced a stock option plan
in accordance with Article 280-20, 21 of the Commercial Code in Japan, and granted stock purchase rights at advantageous terms
to directors, corporate auditors and employees of the Company and subsidiaries, as of June 27, 2002.
The stock purchase rights can be exercised at a price of ¥699 ($6.59) per share in the period from July 1, 2004 to June 30, 2009,
and a total of 1,270 thousand shares of common stock could be issued by the exercise of these rights. The exercise price of stock
purchase rights would be adjusted, if the Company issues new shares at a price below the market price.
By special resolution at the 47th annual shareholders’ meeting held on June 27, 2003, the Company introduced a stock option
plan in accordance with Article 280-20, 21 of the Commercial Code in Japan, and granted stock purchase rights at advantageous
terms to directors, corporate auditors and employees of the Company and subsidiaries, as of June 27, 2003.
The stock purchase rights can be exercised at a price of ¥1,221 ($11.52) per share in the period from July 1, 2005 to June 30,
2010, and a total of 280 thousand shares of common stock could be issued by the exercise of these rights. The exercise price of
stock purchase rights would be adjusted, if the Company issues new shares at a price below the market price.
By special resolution at the 48th annual shareholders’ meeting held on June 29, 2004, the Company introduced a stock option
plan in accordance with Article 280-20, 21 of the Commercial Code in Japan, and granted stock purchase rights at advantageous
terms to directors, corporate auditors and employees of the Company and subsidiaries, as of June 29, 2004.
The stock purchase rights can be exercised at a price, which is determined by the average of each day closing price during the
previous month before the issue of stock options, in the period from July 1, 2006 to June 30, 2011, and a total of 500 thousand
shares of common stock could be issued by the exercise of these rights. The exercise price of stock purchase rights would be
adjusted, if the Company issues new shares at a price below the market price.
16. EARNINGS PER SHARE
Effective April 1, 2002, the Company adopted the new accounting standard for earnings per share and related guidance
(Accounting Standards Board Statement No. 2, “Accounting Standard for Earnings Per Share” and Financial Standards
Implementation Guidance No. 4, “Implementation Guidance for Accounting Standard for Earnings Per Share,” issued by the
Accounting Standards Board of Japan on September 25, 2002).
Earnings per share for the year ended March 31, 2002 would have been reported as follows, if this new accounting standard
were applied retroactively.
Yen
Net loss per share:
Basic ..................................................................................................................................................................... ¥(91.84)
Diluted .................................................................................................................................................................. —
17. SUBSEQUENT EVENTS
At the annual shareholders’ meeting held on June 29, 2004, the Company’s shareholders approved the payment of a cash dividend
of ¥15.00 ($0.14) per share aggregating ¥3,992 million ($37,660 thousand) to shareholders of record as of March 31, 2004 and
the payments of bonuses to directors and corporate auditors totaling ¥141 million ($1,330 thousand).