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69
page
Sony Corporation Annual Report 1999
17. Leased assets
Sony leases certain plant facilities, office space, ware-
houses, employees’ residential facilities and other assets.
16. Research and development expenses and advertising costs
Advertising costs
Advertising costs included in selling, general and
administrative expenses for the years ended March 31,
1997, 1998 and 1999 were ¥216,579 million, ¥268,985
million and ¥315,310 million ($2,627,583 thousand),
respectively.
Research and development expenses
Research and development expenses charged to cost of
sales for the years ended March 31, 1997, 1998 and
1999 were ¥282,569 million, ¥318,044 million and
¥375,314 million ($3,127,617 thousand), respectively.
Yen in millions Dollars in thousands
March 31 March 31,
Class of property 1998 1999 1999
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 2,501 ¥ 2,277 $ 18,975
Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,682 19,616 163,467
Machinery and equipment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,103 8,581 71,508
Accumulated amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (12,243) (11,730) (97,750)
¥22,043 ¥18,744 $156,200
An analysis of leased assets under capital leases is as
follows:
Year ending March 31 Yen in millions Dollars in thousands
2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 5,071 $ 42,258
2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,403 36,692
2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,958 32,983
2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,846 32,050
2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,103 17,525
Later years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,627 63,558
Total minimum lease payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,008 225,066
Less—Amount representing interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,440 45,333
Present value of net minimum lease payments. . . . . . . . . . . . . . . . . . . . . . 21,568 179,733
Less—Current obligations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,136 34,467
Long-term capital lease obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥17,432 $145,266
required under operating leases that have initial or
remaining noncancelable lease terms in excess of one
year at March 31, 1999 are as follows:
Year ending March 31 Yen in millions Dollars in thousands
2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 46,647 $ 388,725
2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,549 337,908
2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,545 271,208
2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,688 214,067
2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,248 168,733
Later years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90,773 756,442
Total minimum future rentals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥256,450 $2,137,083
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, 1999:
Rental expenses under operating leases for the years
ended March 31, 1997, 1998 and 1999 were ¥86,570
million, ¥87,564 million and ¥98,925 million ($824,375
thousand), respectively. The minimum rental payments