Square Enix 2013 Annual Report Download - page 59

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57
(2) Scale of and changes in stock options
With respect to stock options outstanding at this fiscal year-end, the number of stock options and the status of their exercise to shares of common
stock are indicated below:
1) Number of stock options
2007
stock options
2007
stock options
2008
stock options
2009
stock options
2009
stock options
2010
stock options
2010
stock options
2010
stock options
2011
stock options
2011
stock options
2012
stock options
2012
stock options
Before vesting
(shares)
March 31, 2012
— — — — — — 140,000 20,000 — 180,000 — —
Granted
——————————67,000 110,000
Forfeited
————————————
Vested
— — — — — — 140,000 20,000 — — 67,000 —
Unvested balance
—————————180,000 — 110,000
After vesting
(shares)
            
March 31, 2012
250,000 504,000 19,800 57,000 130,000 77,000 — — 87,000 — — —
Vested
— — — — — — 140,000 20,000 — — 67,000 —
Exercised
————————————
Forfeited
250,000 504,000 — —————————
Balance
unexercised
— — 19,800 57,000 130,000 77,000 140,000 20,000 87,000 — 67,000 —
2) Price information
Yen
2007
stock options
2007
stock options
2008
stock options
2009
stock options
2009
stock options
2010
stock options
2010
stock options
2010
stock options
2011
stock options
2011
stock options
2012
stock options
2012
stock options
Exercise price ¥3,706 ¥3,706 ¥1 ¥1 ¥2,293 ¥1 ¥1,895 ¥1,779 ¥1 ¥1,835 ¥1 ¥1,515
Average share
price at
exercise
————————————
Fair market
value on grant
date
526
A. 526
B. 594
C. 715
3,171 2,107 385 1,464 364 250 1,312 435 948 214
4. Method of estimating the fair value of stock options
The fair value of the 2012 Stock Options granted during the fiscal year under review was estimated using the following method.
(1) Method of valuation used: Black-Scholes option pricing model
(2) Main assumptions used and method of valuation
2012 Stock Options 2012 Stock Options
Expected share price volatility (Note 1) 32.5% 31.3%
Expected life (Note 2) 10 years 3.4 years
Expected dividend (Note 3) Dividend yield 2.47% Dividend yield 2.18%
Risk-free interest rate (Note 4) 0.74% 0.12%
Notes: 1. Calculated based on historical share price data prior to the grant date over a period equivalent to the expected life.
2. Owing to insuffi cient accumulated data, an appropriate estimate is problematic. Consequently, the midpoint of the available exercise period has been used as the estimated life.
3. For the 2012 Stock Options, this was calculated based on the actual dividend applicable to the fi scal year ended March 31, 2012.
4. Yield of government bonds corresponding to the expected life of the options.
5. Method of estimating the number of vested stock options
In principle, owing to the difficulty of appropriately estimating the forfeited number of stock options for future periods, estimation of the vested
number is based on actual forfeitures in prior periods.