The movements in share premium for the years ended December 31, 2015, 2016 and 2017 are as follows:
| (In millions of yen) | ||||||||||||||||
| Share-based payments (1) |
Common control business combinations |
Others(2) | Share premium total |
|||||||||||||
|
January 1, 2015 |
3,810 | 294 | 3,668 | 7,772 | ||||||||||||
|
Share-based payments |
11,213 | — | — | 11,213 | ||||||||||||
|
Change in ownership interest in a subsidiary without losing control |
— | — | (2 | ) | (2 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
|
December 31, 2015 |
15,023 | 294 | 3,666 | 18,983 | ||||||||||||
|
Share-based payments |
9,520 | — | — | 9,520 | ||||||||||||
|
Exercise of stock options |
(2,548 | ) | — | 2,460 | (88 | ) | ||||||||||
|
Forfeiture of stock options |
(60 | ) | — | — | (60 | ) | ||||||||||
|
Initial public offering(3) |
— | — | 63,424 | 63,424 | ||||||||||||
|
Cost related to initial public offering(4) |
— | — | (571 | ) | (571 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
|
December 31, 2016 |
21,935 | 294 | 68,979 | 91,208 | ||||||||||||
|
Share-based payments |
1,882 | — | — | 1,882 | ||||||||||||
|
Exercise of stock options |
(16,746 | ) | — | 15,721 | (1,025 | ) | ||||||||||
|
Forfeiture of stock options |
(9 | ) | — | — | (9 | ) | ||||||||||
|
Issuance of common shares(5) |
— | — | 2,000 | 2,000 | ||||||||||||
|
Cost related to issuance of common shares (4) |
— | — | (73 | ) | (73 | ) | ||||||||||
|
Acquisition of non-controlling interests |
— | — | (423 | ) | (423 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
|
December 31, 2017 |
7,062 | 294 | 86,204 | 93,560 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| (1) |
Through the amendment of its articles of incorporation on June 15, 2015, the Company amended the terms applicable to a portion of two tranches of stock options, which are the acquisition rights for common shares (the “Common Stock Options”). As a result of the amendment, 24,724 Common Stock Options originally granted on December 17, 2012 and 6,949 Common Stock Options originally granted on February 4, 2015 were converted to the acquisition rights for class A shares (the “Class A Stock Options”), with the holders of such options entitled to acquire 500 class A shares upon exercise of each stock option. Refer to Note 27 Share-Based Payments for further details. |
Through an amendment of its article of incorporation effective as of March 31, 2016, the Company amended the terms applicable to stock options from class A shares to common shares.
| (2) |
Others mainly consists of capital reserve required under the Companies Act of Japan. |
| (3) |
The Company issued 35,000,000 common shares through the initial public offering of new shares on July 14, 2016. Additionally, on August 16, 2016, Nomura Securities Co., Ltd. and Morgan Stanley & Co. LLC. exercised their options to purchase 5,250,000 additional shares of common stock in an allotment of new shares. As of December 31, 2016, there were no outstanding allotment options granted to underwriters. |
| (4) |
Incremental costs directly attributable to the issuance of common shares are recognized as a deduction from equity, net of any tax effects, in accordance with IAS 32 Financial instruments: Presentation. Refer to Note 13 (1) Income Taxes for further details on these tax effects. |
| (5) |
In conjunction with the introduction of the Employee Stock Ownership Plans Trust (J-ESOP) on July 18, 2017, the Company issued 1,007,810 common shares to Trust & Custody Services Bank, Ltd. (Trust E account). The total amount of issuance price of shares was 4,000 million yen, which increased share premium by 2,000 million yen. |