Omron 2005 Annual Report Download - page 66

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64
¥ 2,936
2,306
1,913
—
—
¥ 2,376
260,000
292,000
271,000
—
—
823,000
¥ 2,936
2,306
1,913
2,435
2,580
¥ 2,419
0.25 years
1.25 years
2.25 years
3.25 years
4.25 years
2.09 years
260,000
292,000
271,000
204,000
204,000
1,231,000 ¥1,913 to ¥2,936
Options exercisable
Yen
Weighted-average
exercise price
Shares
Weighted-average
exercise price
Weighted-average
remaining
contractual life
Shares
Range of
exercise prices
Options outstanding
YenYen
The following summarizes information about fixed stock options at March 31, 2005:
Options exercisable at March 31, 2005 ............................................................................................ $ 22.21 823,000
U.S. dollars
Weighted-average
exercise price
Shares
$ 27.44
21.55
17.88
—
—
$ 22.21
260,000
292,000
271,000
—
—
823,000
$ 27.44
21.55
17.88
22.76
24.11
$ 22.61
0.25 years
1.25 years
2.25 years
3.25 years
4.25 years
2.09 years
260,000
292,000
271,000
204,000
204,000
1,231,000 $17.88 to $27.44
¥ 2,936
2,306
1,913
2,435
2,580
$ 27.44
21.55
17.88
22.76
24.11
Options exercisable
U.S. dollars
Weighted-average
exercise price
Shares
Weighted-average
exercise price
Weighted-average
remaining
contractual life
Shares
Range of
exercise prices
Options outstanding
U.S. dollarsU.S. dollars
The fair value of each option grant was estimated as of the grant date using the Black-Scholes option-pricing model with the following
assumptions:
Risk-free interest rate..............................................................................................
Volatility...................................................................................................................
Dividend yield..........................................................................................................
Expected life ...........................................................................................................
0.738%
45.0
0.857
3.5 years
0.271%
25.0
0.559
3.5 years
2004 2003
0.628%
10.0
0.783
3.5 years
2005
The Black-Scholes option valuation model used by the Company
was developed for use in estimating the fair value of fully tradable
options, which have no vesting restrictions and are fully transfer-
able. In addition, option valuation models require the input of
highly subjective assumptions including the expected stock price
volatility. It is management’s opinion that the Company’s stock
options have characteristics significantly different from those of
traded options and because changes in the subjective input
assumptions can materially affect the fair value estimate, the
existing models do not necessarily provide a reliable single meas-
ure of the fair value of its stock options.