Annual Report 2012


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11.SHAREHOLDERS’EQUITYTHELAWPROVIDESTHATANAMOUNTEQUALTO10%OFTHEAMOUNTTOBEDISBURSEDASDISTRIBUTIONSOFCAPITALSURPLUS(OTHERTHANTHECAPITALRE-SERVE)ANDRETAINEDEARNINGS(OTHERTHANTHELEGALRESERVE)BETRANS-FERREDTOTHECAPITALRESERVEANDTHELEGALRESERVE,RESPECTIVELY,UNTILTHESUMOFTHECAPITALRESERVEANDTHELEGALRESERVEEQUALS25%OFTHECAPITALSTOCKACCOUNT.SUCHDISTRIBUTIONSCANBEMADEATANYTIMEBYRESOLUTIONOFTHESHAREHOLDERS,ORBYTHEBOARDOFDIRECTORSIFCERTAINCONDITIONSAREMET.THECOMPANY’SLEGALRESERVEINCLUDEDINRETAINEDEARNINGSATMARCH31,2012AND2011AMOUNTEDTO¥2,540MILLION($30,904THOUSAND).INACCORDANCEWITHTHEFORMERCOMMERCIALCODEOFJAPAN(THE“CODE”),STOCKOPTIONPLANSFORCERTAINDIRECTORSANDCERTAINEMPLOY-EESOFTHECOMPANYANDCERTAINDIRECTORSOFCERTAINSUBSIDIARIESWEREAPPROVEDATANNUALGENERALMEETINGSOFTHESHAREHOLDERSOFTHECOM-PANY.THE2002STOCKOPTIONPLAN(THE2002PLAN)WASAPPROVEDBYSHAREHOLDERSOFTHECOMPANYONJUNE27,2002.THE2003STOCKOP-TIONPLAN(THE2003PLAN)WASAPPROVEDBYSHAREHOLDERSOFTHECOM-PANYONJUNE27,2003.THE2004STOCKOPTIONPLAN(THE2004PLAN)WASAPPROVEDBYSHAREHOLDERSOFTHECOMPANYONJUNE29,2004.THE2005STOCKOPTIONPLAN(THE2005PLAN)WASAPPROVEDBYSHARE-HOLDERSOFTHECOMPANYONJUNE29,2005.THESTOCKOPTIONPLANSOFTHECOMPANYARESUMMARIZEDASFOLLOWS:STOCKOPTIONPLANDATEOFGRANTEXERCISABLEPERIODTHE2002PLANSEPTEMBER2,2002FROMJUNE28,2004UPTOANDINCLUDINGJUNE27,2012THE2003PLANJULY24,2003FROMJUNE28,2005UPTOANDINCLUDINGJUNE27,2013THE2004PLANAUGUST9,2004FROMJUNE30,2006UPTOANDINCLUDINGJUNE29,2014THE2005PLANJULY25,2005FROMJUNE30,2007UPTOANDINCLUDINGJUNE29,2015MOVEMENTSINTHENUMBEROFSTOCKOPTIONSFOREACHSTOCKOPTIONPLANOFTHECOMPANYDURINGTHEYEARSENDEDMARCH31,2012AND2011ARESUMMARIZEDASFOLLOWS:THE2002PLANTHE2003PLANTHE2004PLANTHE2005PLANNUMBEROFSTOCKOPTIONS*:OUTSTANDINGASOFMARCH31,201022255106187VESTED————EXERCISED416——EXPIRED————OUTSTANDINGASOFMARCH31,201118239106187VESTED————EXERCISED13——EXPIRED————OUTSTANDINGASOFMARCH31,201217236106187*ONESTOCKOPTIONGIVESTHEHOLDERTHERIGHTTOPURCHASEONETHOUSANDSHARESOFTHECOMPANY’SCOMMONSTOCK.THEUNITPRICEOFSTOCKOPTIONSFOREACHSTOCKOPTIONPLANOFTHECOMPANYDURINGTHEYEARSENDEDMARCH31,2012AND2011ISSUMMARIZEDASFOLLOWS:YENTHE2002PLANTHE2003PLANTHE2004PLANTHE2005PLANUNITPRICEOFSTOCKOPTIONS:EXERCISEPRICEASOFMARCH31,2011¥156¥278¥633¥693AVERAGEMARKETPRICEPERSHAREATEXERCISEDURINGTHEYEARENDEDMARCH31,2011355348——EXERCISEPRICEASOFMARCH31,2012156278633693AVERAGEMARKETPRICEPERSHAREATEXERCISEDURINGTHEYEARENDEDMARCH31,2012265296——U.S.DOLLARSTHE2002PLANTHE2003PLANTHE2004PLANTHE2005PLANUNITPRICEOFSTOCKOPTIONS:EXERCISEPRICEASOFMARCH31,2012$1.90$3.38$7.70$8.43AVERAGEMARKETPRICEPERSHAREATEXERCISEDURINGTHEYEARENDEDMARCH31,20123.223.60——THEEXERCISEPRICESABOVEARESUBJECTTOADJUSTMENTINTHECASEOFCERTAINEVENTSINCLUDINGSTOCKSPLITS.60ANNUALREPORT2012


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