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085084
2014 Samsung Electronics Annual Report2014 Samsung Electronics Annual Report
24. Share-Based Compensation
The Group has a stock option plan that provides for the granting of stock purchase options to employees or directors who have contributed, or are expected to contribute, to the
management and technological innovation of the Group. No share-based compensation has been granted since December 20, 2005.
A summary of the terms and the number of outstanding stock options as at December 31, 2014, is as follows:
• Type of stock to be issued through stock options: registered common stock
• Granting method: Issuance of new common stock (use of treasury stock possible as well)
• Exercise conditions: 2 or more years of employee service from the date of the grant
• The number of shares and per-share exercise price of stock to be issued through stock options (after the exclusion of stock options expired due to termination)
Date of the Grant
March 7, 2003 April 16, 2004 December 20, 2005
Granted 368,100 590,000 10,000
Expired 37,744 53,061 -
Exercised prior to December 31, 2013 314,509 438,034 5,000
Outstanding as at January 1, 2014 15,847 98,905 5,000
Exercised during 2013 15,847 51,375 -
Exercised during 2014 - 47,530 -
Outstanding as at December 31, 2014 - - 5,000
Exercise price ₩288,800 ₩580,300 ₩606,700
Weighted average share price at the date of
exercise during 2014 ₩-₩1,342,919 ₩-
Exercise period 2005. 3. 8 - 2013. 3. 7 2006. 4. 17 - 2014. 4. 16 2007. 12. 21 - 2015. 12. 20
Note 1: The number of shares and exercise prices are subject to adjustments resulting from capital increase with or without consideration, stock dividends, stock splits, and stock consolidations.
Note 2: As at the reporting date, the exercise periods of stock options granted on March 16, 2000, March 9, 2001, February 28, 2002, March 25, 2002, March 7, 2003, April 16, 2004, and
October 15, 2004 have all expired.
25. Expenses by Nature
Expenses by nature for the years ended December 31, 2014 and 2013, are as follows: (In millions of Korean won)
2014 2013
Changes in finished goods and work in process ₩1,261,097 ₩(716,124)
Raw materials used and
merchandise purchased
84,356,410 95,786,128
Wages and salaries 17,696,265 17,250,962
Pension 1,289,973 971,997
Depreciation 16,910,026 15,470,012
Amortization 1,143,395 975,401
Welfare 3,478,817 3,142,187
Commission and service charges 8,499,107 9,124,803
Other expenses 46,545,826 49,902,288
Total1₩181,180,916 ₩191,907,654
1 Equal to the sum of cost of sales and selling and administrative expenses on the consolidated statements of income.