Sony 2005 Annual Report Download - page 114

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Sony Corporation 111
Presented below is a summary of the activities regarding common stock warrant, convertible bond and stock acquisition rights
plans for the years shown:
2003 2004 2005
Weighted- Weighted- Weighted- Weighted-
Number of average Number of average Number of average average
shares exercise price shares exercise price shares exercise price exercise price
Years ended March 31 Yen Yen Yen Dollars
Outstanding at beginning of the fiscal year . . . . . . . .
5,853,892 ¥8,648 9,640,892 ¥7,832 11,705,592 ¥6,082 $56.84
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3,874,100 5,313 2,621,400 5,017 2,433,600 3,996 37.35
Exercised . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
————(27,400) 3,896 36.41
Forfeited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(87,100) 8,306 (556,700) 6,760 (998,592) 5,923 55.36
Outstanding at end of the fiscal year . . . . . . . . . . . .
9,640,892 ¥7,832 11,705,592 ¥6,082 13,113,200 ¥5,754 $53.78
Exercisable at end of the fiscal year . . . . . . . . . . . . .
4,314,292 ¥9,773 5,853,892 ¥7,522 7,223,600 ¥6,994 $65.36
A summary of common stock warrants, convertible bond options and stock acquisition rights outstanding and exercisable at March
31, 2005 is as follows:
Outstanding Exercisable
Weighted- Weighted- Weighted- Weighted- Weighted-
Number of average average average Number of average average
Exercise price range shares exercise price exercise price remaining life shares exercise price exercise price
Yen YenDollars Years Yen Dollars
¥3,782–07,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,497,600 ¥04,680 $43.74.8.24.4,608,000 ¥05,250 $49.07.
¥7,001–13,202 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,615,600 10,065 94.07.3.14.2,615,600 10,065 94.07.
¥3,782–13,202 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,113,200 ¥05,754 $53.78.7.22.7,223,600 ¥06,994 $65.36.
A summary of subsidiary tracking stock warrants and stock acquisition rights outstanding and exercisable at March 31, 2005 is as
follows:
Outstanding Exercisable
Weighted- Weighted- Weighted- Weighted- Weighted-
Number of average average average Number of average average
Exercise price range shares exercise price exercise price remaining life shares exercise price exercise price
Yen YenDollars Years Yen Dollars
¥815–3,300 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181,500 ¥1,591 $14.87.7.22.90,300 ¥2,118 $19.79.
As the exercise prices for the warrant, convertible bond and
stock acquisition rights plans were determined based on the
prevailing market price shortly before the date of grant, the
compensation expense for these plans was not significant for
the years ended March 31, 2003, 2004 and 2005.
As a result of the establishment of the joint venture between
Sony’s recorded music business with the recorded music busi-
ness of Bertelsmann AG (Note 6), employees of Sony’s recorded
music business who were granted options under the convertible
bond and stock acquisition rights plans prior to the establishment
of the joint venture are no longer considered employees of Sony
under FAS No. 123 as these individual are now employees of
SONY BMG which is accounted for under the equity method. As
a result, a compensation charge of ¥340 million ($3 million) was
recorded based on the fair value method of accounting for
stock-based compensation using the Black-Scholes model. The
fair value of the options as of August 1, 2004, the date on which
the joint venture was established, was ¥538 million ($5 million)
and is being recognized into income over the remaining vesting
period of the options.
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