ANNUAL REPORT 2004 - Luxottica Group
ANNUAL REPORT 2004 - Luxottica Group
ANNUAL REPORT 2004 - Luxottica Group
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<br />
subsidiaries provide limited non-pension benefits to<br />
retirees in addition to government sponsored<br />
programs. The cost of these programs is not<br />
significant to the Company.<br />
10. STOCK OPTION<br />
AND INCENTIVE PLANS<br />
STOCK OPTION PLAN<br />
Beginning in April 1998, certain officers and other key<br />
employees of the Company and its subsidiaries were<br />
Outstanding as of January 1, 2002<br />
Granted<br />
Forfeitures<br />
Exercised<br />
Outstanding as of December 31, 2002<br />
Granted<br />
Forfeitures<br />
Exercised<br />
Outstanding as of December 31, 2003<br />
Granted<br />
Forfeitures<br />
Exercised<br />
Outstanding as of December 31, <strong>2004</strong><br />
136<br />
granted stock options of <strong>Luxottica</strong> <strong>Group</strong> S.p.A. under<br />
the Company’s stock option plan. The stock options<br />
were granted at a price equal to the market value of<br />
the shares at the date of grant. These options become<br />
exercisable in three equal annual installments from the<br />
date of grant and expire on or before January 31,<br />
2012.<br />
As <strong>Luxottica</strong> <strong>Group</strong> has elected to apply APB 25, no<br />
compensation expense was recognized because the<br />
option exercise price was equal to the quoted market<br />
value on the date of grant.<br />
The following table summarizes information about<br />
stock options for each year:<br />
Number of options<br />
outstanding<br />
7,407,783<br />
2,348,400<br />
(248,367)<br />
(1,397,783)<br />
8,110,033<br />
2,397,300<br />
(176,600)<br />
(213,433)<br />
10,117,300<br />
2,035,500<br />
(70,300)<br />
(728,440)<br />
11,354,060<br />
Stock option grants outstanding at December 31, <strong>2004</strong> are summarized as follows:<br />
Grant<br />
1<br />
2<br />
3<br />
4<br />
5<br />
6<br />
7<br />
Exercise price<br />
(in Euro) (2)<br />
7.38<br />
4.38<br />
9.52<br />
11.23<br />
13.15<br />
10.51<br />
13.79<br />
Included as an addition to the Company’s paid-in capital<br />
account in fiscal years 2003 and <strong>2004</strong> is Euro 0.3 million<br />
and Euro 0.8 million, respectively, of tax benefits the<br />
Number outstanding<br />
807,250<br />
1,161,960<br />
1,292,700<br />
1,669,850<br />
2,150,700<br />
2,236,100<br />
2,035,500<br />
Number exercisable<br />
807,250<br />
1,161,960<br />
1,292,700<br />
1,669,850<br />
1,429,000<br />
689,100<br />
0<br />
Weighted average exercise price<br />
(in Euro) (1)<br />
9.67<br />
16.98<br />
14.54<br />
6.67<br />
11.51<br />
10.51<br />
11.77<br />
6.97<br />
10.29<br />
13.79<br />
9.73<br />
8.07<br />
10.74<br />
Remaining life (years)<br />
2.1<br />
3.1<br />
4.1<br />
5.1<br />
6.1<br />
7.1<br />
8.1<br />
Company received from employees exercising these<br />
stock options.<br />
(1) For convenience all amounts<br />
are translated at the noon<br />
buying rate in effect at the end of<br />
each year.<br />
(2) Certain options were granted<br />
in U.S. Dollars and have been<br />
converted using a December 31,<br />
<strong>2004</strong> conversion rate of Euro<br />
1.00 to US$ 1.3538.
Change language