Sony 2003 Annual Report Download - page 209

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Consolidated Financial Information 2003
- 123 -
The status of the SAR plans is summarized as follows:
Year ended March 31
2001 2002 2003
Number of
SARs
Weighted-
average
exercise
price
Number of
SARs
Weighted-
average
exercise
price
Number of
SARs
Weighted-
average
exercise
price
Weighted-
average
exercise
price
Yen Yen Yen Dollars
Outstanding at beginning
of year 4,046,490 ¥5,443
3,565,246 ¥6,218 2,410,394 ¥6,644
$55.37
Granted 154,700 9,801 141,525 7,813 28,750 6,323 52.69
Exercised (588,092) 5,198 (91,330) 5,862 (11,800) 5,727 47.73
Cancelled − − (1,192,672) 5,951 − − −
Expired or forfeited (47,852) 5,869 (12,375) 8,520 (84,316) 7,274 60.62
Outstanding at end of year 3,565,246 ¥6,218 2,410,394 ¥6,644 2,343,028 ¥6,341 $52.84
Exercisable at end
of year 1,397,216 ¥5,966
1,864,928 ¥6,282 2,176,319 ¥6,211
$51.76
A summary of SARs outstanding and exercisable at March 31, 2003 is as follows:
Outstanding Exercisable
Exercise price
range
Number of
SARs
Weighted-
average
exercise price
Weighted-
average
exercise price
Weighted-
average
remaining life
Number of
SARs
Weighted-
average
exercise price
Weighted-
average
exercise price
Yen Yen Dollars Years Yen Dollars
¥3,615∼5,000 242,534 ¥4,455 $37.12 1.79 241,601 ¥4,455 $37.13
5,001∼10,000 2,046,369 6,393 53.28 2.17 1,896,036 6,298 52.48
10,001∼15,000 54,125 12,823 106.86 6.56 38,682 12,940 107.83
¥3,615∼15,000 2,343,028 ¥6,341 $52.84 2.23 2,176,319 ¥6,211 $51.76
In accordance with APB No. 25 and its related interpretations, the SARs compensation expense is
measured as the excess of the quoted market price of Sony Corporation’s common stock over the SARs strike
price, which is consistent with the accounting treatment prescribed for SAR plans in FAS No. 123. For the
years ended March 31, 2001, 2002 and 2003, Sony recognized a reduction in SARs compensation expense of
¥5,587 million, ¥4,748 million and ¥670 million ($6 million), respectively, due to the decline in Sony’s stock
price during the years.
18. Restructuring charges and asset impairments
As part of its effort to improve the performance of the various businesses, Sony has undertaken a number of
restructuring initiatives within the Electronics, Music and Pictures businesses. For the years ended March 31,
2001, 2002 and 2003, Sony recorded total restructuring charges of ¥34,718 million, ¥106,974 million and
¥106,251 million ($885 million), respectively. Significant restructuring charges and asset impairments include
the following: