Sony 1997 Annual Report Download - page 55

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¥185,621 million ($1,496,944 thousand) at March 31, 1996 and 1997, respectively. The majority of these
contracts are part of range forward contract arrangements and expire in the same month with the correspond-
ing currency option contracts purchased shown above and are limited to those which lower the premiums
paid. The fair values of such foreign currency options were estimated based on the values quoted by brokers.
A consolidated insurance subsidiary entered into written government bond option contracts as an integral
part of short-term investing activities in order to fix the yields from bonds on hand to certain ranges. All of
these contracts expire within two months of the balance sheet dates and their notional principal amounts
were ¥91,485 million and ¥204,945 million ($1,652,782 thousand) at March 31, 1996 and 1997, respectively.
For accounting purposes, those transactions do not qualify for hedge accounting. Accordingly, those written
bond option contracts were marked to market. The fair values of such written bond option contracts were
estimated based on the market quotes.
The estimated fair values of the company’s financial instruments excluding debt and equity securities, both
on and off the balance sheets, are summarized as follows:
Yen in millions
Carrying Estimated
amount fair value
At March 31, 1996
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 459,339 ¥ 459,339
Time deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,605 32,605
Notes and accounts receivable, trade . . . . . . . . . . . . . . . . . . . . . . . 923,566 923,566
Short-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (292,396) (292,396)
Notes and accounts payable, trade . . . . . . . . . . . . . . . . . . . . . . . . . (565,044) (565,044)
Long-term debt including the current portion . . . . . . . . . . . . . . . . . (1,337,455) (1,247,781)
Forward exchange contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,226) (4,058)
Interest rate and currency swap agreements . . . . . . . . . . . . . . . . . . — 9,740
Option contracts purchased . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,577 1,577
Option contracts written . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,232) (1,232)
Bond option contracts written. . . . . . . . . . . . . . . . . . . . . . . . . . . . . (526) (526)
At March 31, 1997
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 428,518 ¥ 428,518
Time deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52,518 52,518
Notes and accounts receivable, trade . . . . . . . . . . . . . . . . . . . . . . . 1,066,314 1,066,314
Short-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (117,801) (117,801)
Notes and accounts payable, trade . . . . . . . . . . . . . . . . . . . . . . . . . (653,826) (653,826)
Long-term debt including the current portion . . . . . . . . . . . . . . . . . (1,310,080) (1,248,046)
Forward exchange contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 997 2,464
Interest rate and currency swap agreements . . . . . . . . . . . . . . . . . . — (27,740)
Option contracts purchased . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 724 724
Option contracts written . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,035) (1,035)
Bond option contracts written. . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,026) (1,026)
Dollars in thousands
Carrying Estimated
amount fair value
At March 31, 1997
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,455,790 $ 3,455,790
Time deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 423,533 423,533
Notes and accounts receivable, trade . . . . . . . . . . . . . . . . . . . . . . . 8,599,306 8,599,306
Short-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (950,008) (950,008)
Notes and accounts payable, trade . . . . . . . . . . . . . . . . . . . . . . . . . (5,272,790) (5,272,790)
Long-term debt including the current portion . . . . . . . . . . . . . . . . . (10,565,162) (10,064,887)
Forward exchange contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,040 19,871
Interest rate and currency swap agreements . . . . . . . . . . . . . . . . . . — (223,710)
Option contracts purchased . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,839 5,839
Option contracts written . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8,347) (8,347)
Bond option contracts written. . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8,274) (8,274)