Toyota 2006 Annual Report Download - page 113

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111
U.S. dollars in millions
Tax
Pre-tax expense Net-of-tax
amount (benefit) amount
For the year ended March 31, 2006
Foreign currency translation adjustments ...................................................................... $ 2,318 $ (33) $2,285
Unrealized gains on securities:
Unrealized net holding gains arising for the year....................................................... 4,731 (1,902) 2,829
Less: reclassification adjustments for gains included in net income ............................ (1,249) 502 (747)
Minimum pension liability adjustments ......................................................................... 70 (28) 42
Other comprehensive income ................................................................................... $ 5,870 $(1,461) $4,409
18. Stock-based compensation:
In June 1997, the parent company’s shareholders approved a
stock option plan for board members. In June 2001, the
shareholders approved an amendment of the plan to include
both board members and key employees. Each year, since the
plans’ inception, the shareholders have approved the autho-
rization for the grant of options for the purchase of Toyota’s
common stock. Authorized shares for each year that remain
ungranted are unavailable for grant in future years. Stock
options with a term ranging from 4 years to 6 years are
granted with an exercise price equal to 1.025 times the clos-
ing price of Toyota’s common stock on the date of grant and
generally vest 2 years from the date of grant.
On June 23, 2006, at the Ordinary General Shareholders’
Meeting, the shareholders of the parent company approved
the authorization of an additional up to 3,500,000 shares for
issuance under the Toyota’s stock option plan for board mem-
bers and key employees.
The following table summarizes Toyota’s stock option activity:
Yen
Weighted-
average
Weighted- remaining
Number of average contractual
options exercise price life in years
Options outstanding at March 31, 2003 ...................................................................... 3,925,400 ¥3,656 3.53
Granted ............................................................................................................................. 1,958,000 3,116
Exercised ............................................................................................................................ — —
Canceled ............................................................................................................................ (987,000) 3,849
Options outstanding at March 31, 2004 ...................................................................... 4,896,400 3,401 3.83
Granted ............................................................................................................................. 2,021,000 4,541
Exercised ............................................................................................................................ (810,300) 2,995
Canceled ............................................................................................................................ (606,800) 4,105
Options outstanding at March 31, 2005 ...................................................................... 5,500,300 3,802 3.86
Granted ............................................................................................................................. 2,104,000 4,377
Exercised ............................................................................................................................ (1,354,000) 3,052
Canceled ............................................................................................................................ (1,463,400) 4,085
Options outstanding at March 31, 2006 ...................................................................... 4,786,900 ¥4,180 4.52
Options exercisable at March 31, 2004............................................................................... 1,371,400 ¥4,319 1.15
Options exercisable at March 31, 2005............................................................................... 1,740,300 ¥3,641 1.69
Options exercisable at March 31, 2006............................................................................... 946,900 ¥3,078 3.09