Sony 1997 Annual Report Download - page 60

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58
16. Research and
development
expenses and
advertising
costs
Research and development expenses
Research and development expenses charged to cost of sales for the years ended March 31, 1995, 1996 and
1997 were ¥239,164 million, ¥257,326 million and ¥282,569 million ($2,278,782 thousand), respectively.
Advertising costs
Advertising costs included in selling, general and administrative expenses for the years ended March 31,
1995, 1996 and 1997 were ¥141,017 million, ¥159,821 million and ¥216,579 million ($1,746,605
thousand), respectively.
17. Leased assets The company leases certain plant facilities, office space, warehouses, employees’ residential facilities and
other assets.
An analysis of leased assets under capital leases is as follows:
Yen in millions Dollars in thousands
March 31 March 31,
Class of property 1996 1997 1997
Land. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 2,351 ¥ 2,538 $ 20,468
Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,080 24,623 198,572
Machinery and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,466 9,682 78,081
Accumulated amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . (9,838) (13,022) (105,016)
¥24,059 ¥ 23,821 $ 192,105
The following is a schedule by year of the future minimum lease payments under capital leases together
with the present value of the net minimum lease payments as of March 31, 1997:
Year ending March 31 Yen in millions Dollars in thousands
1998 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 6,521 $ 52,589
1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,222 42,113
2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,643 37,444
2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,118 33,210
2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,239 34,185
Later years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,909 112,169
Total minimum lease payments . . . . . . . . . . . . . . . . . . . . . . . . . . . 38,652 311,710
Less—Amount representing interest . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,338 75,307
Present value of net minimum lease payments . . . . . . . . . . . . . . . . . . . 29,314 236,403
Less—Current obligations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,409 35,556
Long-term capital lease obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥24,905 $200,847
Rental expenses under operating leases for the years ended March 31, 1995, 1996 and 1997 were ¥79,295
million, ¥81,385 million and ¥86,570 million ($698,145 thousand), respectively. The minimum rental pay-
ments required under operating leases that have initial or remaining noncancelable lease terms in excess of
one year at March 31, 1997 are as follows:
Year ending March 31 Yen in millions Dollars in thousands
1998 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 38,526 $ 310,693
1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34,687 279,734
2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,388 245,064
2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,864 192,452
2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,643 166,476
Later years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132,739 1,070,476
Total minimum future rentals . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥280,847 $2,264,895