Omron 2005 Annual Report Download - page 65

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63
imposed by the Code.
Under the Code, the amount legally available for dividends is
based on retained earnings as recorded in the books of the
Company for Japanese financial reporting purposes. At March 31,
2005, retained earnings amounting to ¥41,432 million ($387,215
thousand) were available for future dividends subject to legal
reserve requirements.
In 2003, the Company acquired the minority interests of cer-
tain domestic subsidiaries in exchange for the Company’s com-
mon stock previously held in its treasury. The Company reissued
52,275 shares of treasury stock to acquire minority interests with
book values and fair values equal to ¥84 million. These transac-
tions resulted in a combined loss on reissuance of treasury stock
of ¥32 million, representing the aggregate difference between the
cost of shares repurchased and the fair value of shares reissued
on the effective date of acquisition. The loss was charged directly
to retained earnings.
Stock Options
The Company has authorized the grant of options to purchase
common stock of the Company to certain directors and officers
of the Company under a fixed stock option plan. All of the author-
ized shares available for grant have been granted.
Under the above plan, the exercise price of each option
exceeded the market price of the Company’s common stock on
the date of grant and the options expire 5 years after the date of
the grant. Generally, options become fully vested and exercisable
after 3 years. A summary of the Company’s fixed stock option
plan activity and related information is as follows:
Options outstanding at April 1, 2002...............................................................
Granted.........................................................................................................
Options outstanding at March 31, 2003..........................................................
Granted.........................................................................................................
Exercised .....................................................................................................
Options outstanding at March 31, 2004..........................................................
Granted.........................................................................................................
Exercised .....................................................................................................
Exercised .....................................................................................................
Expired .........................................................................................................
Options outstanding at March 31, 2005..........................................................
285
736
186
¥ 2,446
1,913
2,294
2,435
1,839
2,357
2,580
1,839
1,913
1,839
¥ 2,419
695,000
276,000
971,000
204,000
(86,000)
1,089,000
204,000
(46,000)
(5,000)
(11,000)
1,231,000
Yen
Weighted-average
fair value of options
granted during
the year
Weighted-average
exercise price
SharesFixed options
Weighted-average
fair value of options
granted during
the year
Weighted-average
exercise price
Options outstanding at March 31, 2004.......................................................................................
Granted......................................................................................................................................
Exercised...................................................................................................................................
Exercised...................................................................................................................................
Expired ......................................................................................................................................
Options outstanding at March 31, 2005.......................................................................................
$ 1.74
$ 22.03
24.11
17.19
17.88
17.19
$ 22.61
U.S. dollars
Options exercisable at March 31, 2003........................................................................................
Options exercisable at March 31, 2004........................................................................................
Options exercisable at March 31, 2005........................................................................................
¥ 2,547
¥ 2,531
¥ 2,376
403,000
609,000
823,000
Yen
Weighted-average
exercise price
Shares