Canon 2012 Annual Report Download - page 82

Strategy Business Units Management System FINANCIAL SECTION
80
2012:
Foreign currency translation adjustments
Net unrealized gains and losses on securities:
Amount arising during the year
Reclassification adjustments for gains and losses realized in net income
Net change during the year
Net gains and losses on derivative instruments:
Amount arising during the year
Reclassification adjustments for gains and losses realized in net income
Net change during the year
Pension liability adjustments:
Amount arising during the year
Reclassification adjustments for gains and losses realized in net income
Net change during the year
Other comprehensive income (loss)
Before-tax
amount
Tax (expense)
or benefit
Thousands of U.S. dollars
Net-of-tax
amount
$ 1,550,920
39,287
15,023
54,310
(122,379)
28,046
(94,333)
(159,633)
50,954
(108,679)
$ 1,402,218
$ (13,736)
(11,540)
(5,241)
(16,781)
46,448
(8,207)
38,241
(19,977)
(18,322)
(38,299)
$ (30,575)
$ 1,537,184
27,747
9,782
37,529
(75,931)
19,839
(56,092)
(179,610)
32,632
(146,978)
$ 1,371,643
16. STOCK-BASED COMPENSATION
On May 1, 2011, based on the approval of the stockholders,
the Company granted stock options to its directors, execu-
tive officers and certain employees to acquire 912,000 shares
of common stock. These option awards vest after two years
of continued service beginning on the grant date and have
a four year contractual term. The grant-date fair value per
share of the stock options granted during the year ended
December 31, 2011 was ¥772.
On May 1, 2010, based on the approval of the stockholders,
the Company granted stock options to its directors, execu-
tive officers and certain employees to acquire 890,000 shares
of common stock. These option awards vest after two years
of continued service beginning on the grant date and have
a four year contractual term. The grant-date fair value per
share of the stock options granted during the year ended
December 31, 2010 was ¥988.
On May 1, 2009, based on the approval of the stockholders,
the Company granted stock options to its directors, execu-
tive officers and certain employees to acquire 954,000 shares
of common stock. These option awards vest after two years
of continued service beginning on the grant date and have
a four year contractual term. The grant-date fair value per
share of the stock options granted during the year ended
December 31, 2009 was ¥699.
On May 1, 2008, based on the approval of the stockholders,
the Company granted stock options to its directors, execu-
tive officers and certain employees to acquire 592,000 shares
of common stock. These option awards vest after two years
of continued service beginning on the grant date and have
a four year contractual term. The grant-date fair value per
share of the stock options granted during the year ended
December 31, 2008 was ¥1,247.
The compensation cost recognized for these stock options
for the years ended December 31, 2012, 2011 and 2010 was
¥364 million ($4,184 thousand), ¥748 million and ¥643 million,
respectively, and is included in selling, general and administra-
tive expenses in the consolidated statements of income.
Expected term of option (in years)
Expected volatility
Dividend yield
Risk-free interest rate
2011 2010
4.0
36.44%
3.16%
0.44%
4.0
38.00%
2.53%
0.45%
Years ended December 31
Years ended December 31
The fair value of each option award was estimated on the date of grant using the Black-Scholes option pricing model that
incorporates the assumptions presented below: