Sony 1999 Annual Report Download - page 63

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61
page
Sony Corporation Annual Report 1999
Yen in millions
Carrying amount Estimated fair value
At March 31, 1998
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 423,286 ¥ 423,286
Time deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107,139 107,139
Short-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (114,617) (114,617)
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)
At March 31, 1999
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 592,210 ¥ 592,210
Time deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,304 24,304
Short-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (40,877) (40,877)
Long-term debt including the current portion . . . . . . . . . . . . . . . . . . . . (1,125,285) (1,351,358)
Forward exchange contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (516) (4,423)
Interest rate swap agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (549) (1,025)
Interest rate and currency swap agreements . . . . . . . . . . . . . . . . . . . . . — (21,470)
Option contracts purchased . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,252 3,252
Option contracts written . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,226) (4,226)
Bond option contracts written . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (436) (436)
Dollars in thousands
Carrying amount Estimated fair value
At March 31, 1999
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,935,083 $ 4,935,083
Time deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 202,533 202,533
Short-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (340,642) (340,642)
Long-term debt including the current portion . . . . . . . . . . . . . . . . . . . . (9,377,375) (11,261,317)
Forward exchange contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,300) (36,858)
Interest rate swap agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,575) (8,542)
Interest rate and currency swap agreements . . . . . . . . . . . . . . . . . . . . . — (178,917)
Option contracts purchased . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,100 27,100
Option contracts written . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (35,217) (35,217)
Bond option contracts written . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,633) (3,633)
to fix the yields from bonds on hand to certain ranges.
All of these contracts expire within two months of the
balance sheet date and their notional principal amounts
were ¥181,509 million and ¥108,700 million ($905,833
thousand) at March 31, 1998 and 1999, 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 market quotations. The average fair value and
the net gain/loss from those written bond option con-
tracts during the years ended March 31, 1997, 1998 and
1999 were insignificant.
The estimated fair values of Sony’s financial instru-
ments, both on and off the balance sheets excluding
notes and accounts receivable, trade and notes and
accounts payable, trade that are carried at amounts
which approximate fair value and excluding debt and
equity securities disclosed in Note 9, are summarized
as follows: