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62 NIKON REPORT 2015
10. Selling, General and Administrative Expenses
Selling, general and administrative expenses for the scal years ended March 31, 2014 and 2015 principally consisted of the following:
Millions of Yen
Thousands of
U.S. Dollars
2014 2015 2015
Advertising expenses ¥73,232 ¥70,269 $584,746
Provision for doubtful receivables (129) (71) (593)
Provision of warranty costs 4,992 2,984 24,832
Employees’ salaries 32,966 35,028 291,488
Net periodic retirement benet cost 2,149 3,142 26,143
Employees’ bonuses and others 17,333 17,360 144,462
Research and development costs 74,552 66,730 555,298
11. Income Taxes
The Company and its domestic subsidiaries are subject to Japanese national and local income taxes, which, in the aggregate, resulted in a
normal effective statutory tax rate of approximately 38.0% and 35.6% for the scal years ended March 31, 2014 and 2015, respectively.
The tax effects of signicant temporary differences and tax loss carryforwards, which resulted in deferred tax assets and liabilities at
March 31, 2014 and 2015, were as follows:
Millions of Yen
Thousands of
U.S. Dollars
2014 2015 2015
Deferred tax assets:
Write-down of inventories ¥28,204 ¥24,339 $202,542
Liability for employees’ retirement benets 1,474 2,612 21,737
Depreciation and amortization 15,844 14,271 118,759
Impairment loss 192 5,982 49,780
Accrued bonuses 4,575 3,848 32,018
Tax loss carryforwards 5,694 5,342 44,454
Other 13,408 19,845 165,139
Subtotal 69,391 76,239 634,429
Less valuation allowance (7,897) (12,682) (105,536)
Total ¥61,494 ¥63,557 $528,893
Notes to Consolidated Financial Statements
2004 Stock
Options
2005 Stock
Options
2007 Stock
Options
2007 Stock
Options
2008 Stock
Options
2009 Stock
Options
2010 Stock
Options
2012 Stock
Options
2012 Stock
Options
2013 Stock
Options
2014 Stock
Options
Vested
March 31, 2014-Outstanding 23,000 97,000 79,000 24,200 111,300 65,100 64,000 99,700 108,300 119,600
Vested 177,400
Exercised 23,000 40,000 2,500 1,000 4,000
Canceled 11,000
March 31, 2015-Outstanding 57,000 68,000 21,700 110,300 65,100 64,000 95,700 108,300 119,600 177,400
Exercise price ¥ 1,225 ¥ 1,273 ¥ 2,902 ¥ 1 ¥ 1 ¥ 1 ¥ 1 ¥ 1 ¥ 1 ¥ 1 ¥ 1
Average stock price at exercise ¥ 1,623 ¥ 1,594 ¥ 1,582 ¥ 1,577 ¥ 1,574
Fair value price at grant date ¥ 840 ¥ 3,259 ¥ 734 ¥ 1,408 ¥ 1,527 ¥ 2,037 ¥ 1,726 ¥ 1,632 ¥ 1,183
The assumptions used to measure the fair value of 2015 Stock Options which were granted on August 1, 2014:
Estimate method: Black-Scholes option pricing model
Volatility of stock price: 46.188%
Estimate remaining outstanding period: 15 years
Estimate dividend: ¥32.00 per share
Risk free interest rate: 0.951%