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Annual Report 1998 Sony Corporation [63]
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 amount Estimated fair value
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)
At March 31, 1998
Cash and cash equivalents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 423,286 ¥ 423,286
Time deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107,139 107,139
Notes and accounts receivable, trade . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,230,799 1,230,799
Short-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (114,617) (114,617)
Notes and accounts payable, trade . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (768,152) (768,152)
Long-term debt including the current portion . . . . . . . . . . . . . . . . . . . . . (1,189,214) (1,191,367)
Forward exchange contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (471) (1,682)
Interest rate and currency swap agreements . . . . . . . . . . . . . . . . . . . . . . — (24,757)
Option contracts purchased . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,461 2,461
Option contracts written . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,548) (2,548)
Bond option contracts written . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (909) (909)
Dollars in thousands
Carrying amount Estimated fair value
At March 31, 1998
Cash and cash equivalents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,206,712 $3,206,712
Time deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 811,659 811,659
Notes and accounts receivable, trade . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,324,235 9,324,235
Short-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (868,311) (868,311)
Notes and accounts payable, trade . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5,819,333) (5,819,333)
Long-term debt including the current portion . . . . . . . . . . . . . . . . . . . . . (9,009,196) (9,025,508)
Forward exchange contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,568) (12,742)
Interest rate and currency swap agreements . . . . . . . . . . . . . . . . . . . . . . — (187,553)
Option contracts purchased . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,644 18,644
Option contracts written . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (19,303) (19,303)
Bond option contracts written . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6,886) (6,886)
13. Pension and severance plans
Upon terminating employment, employees of the parent company and subsidiaries in Japan are entitled, under most
circumstances, to lump-sum indemnities or pension payments as described below. For employees voluntarily retiring,
under normal circumstances, minimum payment is an amount based on current rates of pay and lengths of service.
In calculating the minimum payment for employees involuntarily retiring, including employees retiring due to meet-
ing mandatory retirement age requirements, the company may grant additional benefits. With respect to directors’
resignations, lump-sum severance indemnities are calculated using a similar formula and are normally paid subject to
the approval of the company’s stockholders.