Pioneer 2007 Annual Report Download - page 61

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Annual Report 2007 60
in the United States issuing shares in similar transactions would
be required to account for them as stock dividends. Had the
distributions been accounted for in the manner adopted by
companies in the United States, ¥179,076 million ($1,517,593
thousand) would have been transferred from retained earnings
to appropriate capital accounts at March 31, 2007.
The appropriation of retained earnings for the year ended
March 31, 2007, which has been incorporated in the accom-
panying consolidated financial statements, was approved at
the ordinary general meeting of shareholders held on June
28, 2007.
15. Stock-based compensation plans:
acquisition rights to directors, executive officers and certain
employees of the parent company. These stock options
become exercisable two years after the date of grant and the
exercisable period is three years. The Company recorded the
fair value of the stock options as a part of their remuneration.
The Company has incentive stock option plans for directors,
executive officers and selected employees.
In accordance with approval at the ordinary general meet-
ings of shareholders on June 27, 2002, June 27, 2003, June
29, 2004, and June 29, 2005, the Company granted share
A summary of information for the Company’s stock option plans is as follows:
Yen
Weighted-Average Number of
Weighted-Average Grant Date Shares
Years ended March 31 Plan Exercisable Period Exercise Price Share Price (Thousands)
2003 Stock option From July 1, 2004 to June 29, 2007 2,477 2,170 564
2004 Stock option From July 1, 2005 to June 30, 2008 2,951 2,845 313
2005 Stock option From July 3, 2006 to June 30, 2009 2,944 2,660 316
2006 Stock option From July 2, 2007 to June 30, 2010 1,828 1,658 315
Remuneration costs recognized for stock option plans for the
years ended March 31, 2005, 2006 and 2007 were ¥270 million,
¥175 million and ¥73 million ($619 thousand), respectively.
The weighted-average fair value per share on the date of
grant of the stock option issued during the years ended March
31, 2005 and 2006 were ¥654 and ¥306, respectively. The fair
value of the stock option on the date of grant, which is amor-
tized to expense over the period from the granting through the
commencement of the exercisable period, is estimated using
the Black-Scholes option-valuation model with the following
weighted-average assumptions:
2005 2006
Risk-free interest rate 0.50% 0.23%
Expected lives 3.48 years 3.48 years
Expected volatility 40.02% 31.98%
Expected dividends 0.93% 0.90%