Square Enix 2015 Annual Report Download - page 62

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60
(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
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
2014
stock options
Before vesting (shares)
March 31, 2014
—————————80,000—
Granted
——————————16,000
Forfeited
———————————
Vested
— — — — — — — — — 80,000 16,000
Unvested balance
———————————
After vesting (shares)
March 31, 2014
10,500 27,000 100,000 32,000 103,700 10,000 32,000 117,000 27,000 — —
Vested
— — — — — — — — — 80,000 16,000
Exercised
— — 5,200 — 18,900 — — — — 17,900 —
Forfeited
600 1,000 94,800 1,000 — — 1,000 — 1,000 — —
Balance unexercised
9,900 26,000 — 31,000 84,800 10,000 31,000 117,000 26,000 62,100 16,000
2) Price information
Yen
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
2014
stock options
Exercise price ¥ 1 ¥ 1 ¥2,293 ¥ 1 ¥1,895 ¥1,779 ¥ 1 ¥1,835 ¥ 1 ¥1,515 ¥ 1
Average share
price at exercise
——
2,433
—
2,436
————
2,358
—
Fair market value
on grant date 3,171 2,107 385 1,464 364 250 1,312 435 948 214 2,041
4. Method of estimating the fair value of stock options:
The fair value of the 2014 stock options granted during the fiscal year ended March 31, 2015 was estimated using the following method.
(1) Method of valuation: Black-Scholes option pricing model
(2) Main assumptions:
2014 stock options
Expected share price volatility *135.9%
Expected life *210 years
Expected dividend yield *31.29%
Risk-free interest rate *40.54%
Notes: 1 This was calculated based on historical share price data prior to the grant date over a period equivalent to the expected life.
2 Owing to insufficient accumulated data, it is difficult to determine an appropriate estimate. Consequently, the midpoint of the available exercise period has been used as the
estimated life.
3 For the 2014 stock options, this was calculated based on the actual dividend applicable to the fiscal year ended March 31, 2014.
4 This was determined based on the 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.
Notes to Consolidated Financial Statements (JPNGAAP)