Notes to Consolidated Financial Statements
NSK Ltd. and Consolidated Subsidiaries For the year ended March 31, 2007
20. Stock Option
Information regarding stock option plans of the Company at March 31, 2007 is as follows:
| Date of approval | June 27, 2002 | June 29, 2004 | June 29, 2005 | June 27, 2006 |
| Date of grant | August 6, 2002 | August 18, 2004 | August 18, 2005 | August 25, 2006 |
| Grantees | 8 directors, 26 executive officers, 37 employees 12 directors of subsidiaries specified by the NSK Board of Directors Total 83 |
11 directors and 28 executive officers, 34 employees, 16 directors of subsidiaries specified by the NSK Board of Directors Total 89 |
12 directors and 28 executive officers, 34 employees, 16 directors of subsidiaries specified by the NSK Board of Directors Total 90 |
12 directors and 28 executive officers, 37 employees, 18 directors of subsidiaries specified by the NSK Board of Directors Total 95 |
| Type of shares to be issued upon exercise of share subscription rights | Common stock | Common stock | Common stock | Common stock |
| Number of shares to be issued upon exercise of share subscription rights | 545,000 shares | 613,000 shares | 639,000 shares | 667,000 shares |
| Exercise price (yen) | ¥512 | ¥531 | ¥615 | ¥928 |
| Exercise period | August 6, 2002– August 3, 2007 |
August 18, 2004– August 17, 2009 |
August 18, 2005– August 17, 2010 |
August 25, 2006– August 24, 2011 |
| Stock options outstanding as of March 31, 2006 | 152,000 shares | 613,000 shares | 639,000 shares | - |
| Exercised in this period | 130,000 shares | 466,000 shares | 8,000 shares | 5,000 shares |
| Stock options outstanding as of March 31, 2007 | 22,000 shares | 147,000 shares | 631,000 shares | 662,000 shares |
| Weighted average exercise price (yen) | ¥995 | ¥1,005 | ¥1,120 | ¥1,144 |
| Weighted average fair value per stock at the granted date | - | - | - | ¥240 |
Stock option expense included in selling, general and administrative expenses for the year ended March 31, 2007 amounted to ¥57 million ($483 thousand). The fair value of the stock options granted for the fiscal year ended March 31, 2007 is estimated based on the following preconditions:
| Date of approval | June 27, 2006 | |
| Valuation model | Binominal model | |
| Expected volatility | 35% | |
| Expected holding period | 4 years | |
| Expected dividend | 1.55% | |
| Risk-free rate | 1 year | 0.41% |
| 2 year | 0.65% | |
| 3 year | 0.86% | |
| 4 year | 1.03% | |
| 5 year | 1.18% | |