Wacom 2013 Annual Report Download - page 20

Notes to Consolidated Financial Statements
ii) Unit price information
(4) Method for estimating fair market price related to
stock options granted in the fiscal year ended March
31, 2013
(a) The Black-Scholes Model is used for estimating the
fair market price of stock options
(b) Key assumptions in the valuation model:
Notes:
i) Stock price volatility is determined based on stock
market performance from February 2009 to August
2012.
ii) As there is not a sufficient history of stock option
exercises to use as data for making a precise estimate,
the average life is estimated to be half of the exercise
period.
iii) Expected dividend is based on cash dividend for the
year ended March 2012.
iv) Risk-free interest rate is the yield of government
bonds for expected life.
(5) Regarding the method for estimating the number of
effective rights of stock options, the number of expired
options is estimated based upon the past attrition rate.
17. Income taxes:
(1) Significant components of deferred tax assets and
liabilities
(Note 1) Net deferred tax assets are expressed in the
consolidated balance sheet for the years ended March
31, 2012 and 2013 as follows.
(2) Reconciliation between the statutory tax rate and the
effective income tax rate
The reconciliation between the statutory tax rate and
the effective income tax rate in the consolidated state-
ments of income for the year ended March 31, 2012
and 2013 has been omitted because the difference
between the rates is less than 5% of statutory tax rate.
Stock price volatility
Expected average life
Expected dividend
Risk-free interest rate
38
June 24, 2010
June 23, 2011
June 22, 2012
¥103,730
83,743
192,085
¥250,185
-
-
¥35,420
25,674
51,521
Exercise price
per share
(exact yen)
Average stock price
per share at exercise
(exact yen)
Fair market price
per share at grant
(exact yen)
Date of ordinary
shareholders’
meeting
43.590%
3.5 years
¥3,000 per share
0.123%
Thousands of yen Thousands of
U.S. dollars
¥521,406
200,834
177,918
149,484
86,619
205,163
130,464
51,201
20,166
15,773
15,082
115,0 41
1,689,151
(547,422)
(59,126)
(7,381)
(613,929)
¥1,075,222
¥565,572
238,510
212,517
175,313
166,046
148,945
132,961
43,554
34,167
24,257
13,916
91,984
1,847,742
(689,483)
(52,413)
(12,617)
(754,513)
¥1,093,229
$6,013
2,536
2,260
1,864
1,765
1,584
1,414
463
363
258
148
978
19,646
(7,331)
(557)
(134)
(8,022)
$11,624
2012 2013 2013
Thousands of yen Thousands of
U.S. dollars
¥1,107,663
13,786
(46,227)
¥1,228,865
24,788
(160,424)
$13,066
264
(1,706)
2012 2013 2013
Current assets – Deferred tax assets
Noncurrent assets – Deferred tax assets
Noncurrent liabilities – Deferred tax liabilities
Deferred tax assets:
Inventory-inter-company profit
Provision for bonuses
Provision for retirement benefits
Software development costs
Enterprise tax
Accrued expenses
Provision for directors and statutory
corporate auditors’ bonuses
Accounts receivable
Inventories
Accrued vacation payable
Net loss carried forward for
tax purposes
Others
Total deferred tax assets
Deferred tax liabilities:
Undistributed earnings of
overseas subsidiaries
Fixed assets of overseas
subsidiaries
Others
Total deferred tax liabilities
Net deferred tax assets (Note 1)
16. Stock options:
Information regarding stock options for the year
ended March 31, 2012 and 2013 is as follows:
(1) Account name and amount regarding share-based
compensation expenses
(2) Gains from forfeit by waived rights
(3) Contents, scale and changes of stock options
(a) Contents of stock options
(b) Scale and changes of stock options
i) Number of stock options
Thousands of yen Thousands of
U.S. dollars
(1)Projected benefit obligation
(2)Unrecognized actuarial loss
(3)Provision for retirement
benefits for employees (1)+(2)
(¥546,834)
35,573
(¥511,261)
(¥680,057)
69,374
(¥610,683)
March 31
2012
March 31
2013
March 31
2013
Fair value of derivative is calculated based on forward
quotation at year end.
There is no derivative transaction which hedge
accounting applied.
15. Provision for retirement benefits:
The Company has an unfunded retirement allowance
plan (the “Plan” ) covering substantially all of its em-
ployees who meet eligibility requirements under the
Plan. A portion of the overseas subsidiaries have
defined contribution pension plans.
The Company had historically been a member of the
Saitama prefectural industrial park multi employer
pension plan (the “Pension Plan” ). The Company
withdrew from the Pension Plan for the year ended
March 31 2012, and recognized a subsequent loss of
¥253,775 thousand in the year ended March 31 2012.
One of the overseas subsidiaries had a defined ben-
efit pension plan, but transferred it to a defined contri-
bution pension plan during the year ended March 31,
2012.
Projected benefit obligation as of March 31, 2012 and
2013 can be analyzed as follows:
The components of the net periodic pension expense
for the years ended March 31, 2012 and 2013 are as
follows:
The assumptions used as of March 31, 2012 and 2013
are as follows:
37
($7,231)
738
($6,493)
Thousands of yen Thousands of
U.S. dollars
(1)Service cost
(2)Interest cost
(3)Recognized actuarial loss
(4)Contribution
(5)Extra retirement payments
(6)
Net periodic pension expense
¥68,046
6,055
8,303
50,942
5,522
¥138,868
¥91,668
5,414
10,261
-
6,378
¥113,721
$974
58
109
-
68
$1,209
2012 2013 2013
(1)Discount rate
(2)Method of attributing the projected
benefits to periods of service
(3)Amortization of unrecognized
actuarial gains and losses
0.99%
Straight-line
basis
straight-line
over 5 years
0.51%
Straight-line
basis
straight-line
over 5 years
2012 2013
June 24, 2010
(August 11, 2010)
June 23, 2011
(August 11, 2011)
June 22, 2012
(August 16, 2012)
Directors
Executive officers
Employees
Subsidiaries’ directors
Subsidiaries’ employees
Employees
Subsidiaries’ employees
Directors
Executive officers
Employees
Subsidiaries’ directors
Subsidiaries’ employees
2,985
1,160
2,960
6
3
70
3
63
55
50
5
4
89
2
82
Person granted
Number of
options granted
(shares)
Date of ordinary
shareholders’ meeting
(Grant date)
Thousands of Yen Thousands of
U.S. dollars
Cost of sales
Selling, general and
administrative expenses
¥6,660
52,018
¥10,388
59,271
$110
630
March 31
2012
March 31
2013
March 31
2013
Thousands of Yen Thousands of
U.S. dollars
Gain on reversal of
subscription rights to shares
- ¥1,771 $19
March 31
2012
March 31
2013
March 31
2013
Before the vesting
of the rights
Outstanding at
March 31, 2012
Granted
Forfeited
Vested
Unvested
After the vesting
of the rights
Outstanding at
March 31, 2012
Vested
Exercised
Forfeited
Outstanding at
March 31, 2013
Exercise periods
2,715
-
20
2,695
-
-
2,695
1,772
50
873
From August 12, 2012
to August 11, 2015
1,120
-
20
-
1,100
-
-
-
-
-
From August 12, 2013
to August 11, 2016
2,960
40
-
2,920
-
-
-
-
-
From August 17, 2014
to August 16, 2017
June 24,
2010
June 23,
2011
June 22,
2012
Date of ordinary
shareholders’
meeting
(Unit: shares)