Olympus 2007 Annual Report Download - page 46

44 OLYMPUS 2007
The discount rates used by the Company are mainly 2.0% in fiscal 2007 and 2006. The rate of expected return on plan assets used by the
Company is mainly 4.0% in fiscal 2007 and 2006. The estimated amount of all retirement benefits to be paid at the future retirement date is
allocated equally to each service year using the estimated number of total service years. Prior service costs and net transition obligation are
both recognized as expense (or income) in equal amounts over mainly five years in fiscal 2007 and 2006, and actuarial gains (or losses) are
recognized as income (or expense) in equal amounts over mainly five years in fiscal 2007 and 2006.
11. STOCK OPTION PLANS
A summary of information regarding the consolidated subsidiaries stock option plans is as follows:
ITX Corporation Other consolidated subsidiaries
Qualified beneficiaries .......................................................................... 5 directors 29 directors
1 corporate auditor 4 corporate auditors
91 employees 372 employees
6 directors of subsidiaries 3 directors of subsidiaries
of ITX Corporation 29 employees of subsidiaries
6 external coagents
Class and number of shares of common stock for which new subscription
rights were offered ............................................................................... Common stock 5,795 Common stock 19,556
Date of rights granted ............................................................................ From October 6, 2005 From April 25, 2005
to April 28, 2006 to November 15, 2006
Period of exercise of rights ..................................................................... From June 24, 2007 From May 1, 2007
to June 23, 2010 to June 27, 2017
Exercise price (yen) ............................................................................... ¥266,859 ¥42,565
Number of options before vested
March 31, 2006 .................................................................................. 5,190 7,369
Granted ............................................................................................. 455 8,841
Lapsed ............................................................................................... 595 1,219
Vested ................................................................................................ — 4,400
March 31, 2007 .................................................................................. 5,050 10,591
Number of options vested
March 31, 2006 .................................................................................. — 607
Vested ................................................................................................ — 4,400
Exercised ............................................................................................ — —
Lapsed ............................................................................................... — —
March 31, 2007 .................................................................................. — 5,007
Average price of common stock at exercise date (yen) ................................ ¥ — ¥ —
The fairly evaluated unit value on the stock option of the other consolidated subsidiaries was evaluated by the intrinsic value per unit for
the year ended March 31, 2007. The evaluation methods utilized by the consolidated subsidiaries were net equity value method, cash flow
method, or other methods which were optimum at the evaluation dates.
The total intrinsic value of the stock options was ¥19 million ($158 thousand) at the year ended March 31, 2007.
12. INCOME TAXES
Income taxes applicable to the Company and its domestic consolidated subsidiaries consist of corporate tax, inhabitant tax and enterprise
tax, which in the aggregate resulted in normal statutory rates of approximately 40.7% for the years ended March 31, 2007, 2006 and 2005.
Income taxes of foreign consolidated subsidiaries are based generally on tax rates applicable in their countries of incorporation.
The following table summarizes the significant differences between the statutory tax rate and the Company’s effective tax rate for consoli-
dated financial statement purposes for the years ended March 31, 2007, 2006 and 2005.