Integrated Report 2019

97/110

(Vested stock options)(Unit: shares)The 2006 planThe 2007 planThe 2008 planThe 2009 planThe 2010 planThe 2011 planThe 2012 planThe 2013 planThe 2014 planThe 2015 planThe 2016 planThe 2017 planThe 2018 planStock options outstanding at April 1, 20183,3002,9005,2007,7007,2006,80013,10020,00016,60014,10011,70014,400—Conversion from non-vested stock options————————————3,900Stock options exercised1,9001,8003,7005,6003,8003,6006,6007,4002,2001,0009001,100—Forfeitures—————————————Stock options outstanding at March 31, 20191,4001,1001,5002,1003,4003,2006,50012,60014,40013,10010,80013,3003,900The following table summarizes the price information of stock options as of March 31, 2019:The 2006 planThe 2007 planThe 2008 planThe 2009 planThe 2010 planThe 2011 planThe 2012 planThe 2013 planThe 2014 planThe 2015 planThe 2016 planThe 2017 planThe 2018 planExercise price¥    1¥    1¥    1¥    1¥    1¥    1¥    1¥    1¥    1¥    1¥    1¥    1¥    1Average market price of the stock at the time of exercise2,9912,9912,9912,8802,9242,7072,6822,6822,8373,2423,2423,242—Fair value at the date of grant2,7881,9471,4811,7261,4741,3031,2031,5951,8252,2831,4452,2612,509The fair value of stock options granted during the year ended March 31, 2019 was valued by using the Black-Scholes option pricing model with the following assumptions:The 2018 planVolatility33.505%Expected remaining period10 yearsExpected dividend per share¥66Risk free interest rate0.055%The expected remaining period for stock options is assumed to be the mid-point of the exercise period.19. Income Taxes1. The Company and its consolidated subsidiaries are subject to a number of taxes based on income which, in the aggregate, resulted in a statutory tax rate of approximately 30.62% and 30.86% for the years ended March 31, 2019 and 2018, respectively. Income taxes of the foreign consolidated subsidiaries are based generally on the tax rates applicable in their countries of incorporation. The effective tax rates reflected in the consoli-dated statement of income for the years ended March 31, 2019 and 2018 differ from the statutory tax rate for the following reasons:20192018Statutory tax rate30.62%30.86%Effect of:Permanently non-deductible expenses for income tax purposes such as entertainment expenses0.270.35Permanently non-taxable income for income tax purposes such as dividend income(15.70)(11.88)Municipal tax0.310.35The difference of tax rates applied to foreign subsidiaries(4.60)(6.25)Tax deduction in accordance with special tax measures(2.62)(2.62)Decrease of valuation allowance for such as net operating loss carryforward0.205.06Consolidated adjustments of dividend income from consolidated subsidiaries17.4812.51The impairment loss on goodwill―2.12Foreign withholding tax4.042.92Other, net(0.46)(0.31)Effective tax rate29.54%33.11%95LINTEC INTEGRATED REPORT 2019Financial InformationESGStrategyOverview