Olympus 2008 Annual Report Download - page 51

Download and view the complete annual report

Please find page 51 of the 2008 Olympus annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 68

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68

OLYMPUS 2008 49
A summary of information regarding the consolidated subsidiaries stock option plans for the year ended March 31, 2007 was 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 Common stock
5,795 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 settled
March 31, 2006 ....................................................................................... — 607
Vested.................................................................................................... — 4,400
Exercised ............................................................................................... — —
Lapsed ................................................................................................... — —
March 31, 2007 ....................................................................................... — 5,007
For stock options outstanding at the end of the year:
Exercise price (yen) ................................................................................ ¥266,859 ¥42,565
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 at the year ended March 31, 2007.
13. 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, 2008, 2007 and 2006.
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 con-
solidated financial statement purposes for the years ended March 31, 2008, 2007 and 2006.
2008 2007 2006
Japanese statutory tax rate .......................................................................................... 40.7% 40.7% 40.7%
Non-deductible expenses .......................................................................................... 1.2 2.1 8.3
Effect of foreign tax rate differences.......................................................................... (0.8) (2.5) (1.0)
Increase (decrease) of allowance for evaluation ......................................................... (2.2) (1.0) (16.5)
Tax deduction for research and development ............................................................. (4.0) (6.6) (3.9)
Amortization of consolidated adjustment accounts ................................................... — — 5.3
Amortization of goodwill ............................................................................................ 3.7 3.6 —
Other, net ................................................................................................................... 0.2 (0.9) 1.4
Effective tax rate .......................................................................................................... 38.8% 35.4% 34.3%