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Annual Report 2000
Year Ended March 31, 2000

Table of contents

  • Page 1
    A n n u a l R e p o r t 2 0 0 0 Ye a r E n d e d M a r c h 3 1 , 2 0 0 0

  • Page 2
    ...Review Electronics ...Game ...Music ...Pictures ...Insurance ...Topics ...Environmental Activities at Sony ...Management ...1 2 8 10 16 18 24 26 28 30 32 36 38 Management's Discussion and Analysis of Financial Condition and Results of Operations Quarterly Financial and Stock Information ...Five-Year...

  • Page 3
    ... ANNU AL REPORT 2000 FINA NC IA L HIGHLIGHT S Sony Corporation and Consolidated Subsidiaries Year ended March 31 Yen in millions except per share amounts 1999 2000 Percent change 2000/1999 Dollars in millions except per share amounts 2000 FOR THE YEAR Sales and operating revenue Operating...

  • Page 4
    ...a year in which Sony's businesses performed well, with both consolidated sales and operating income rising. In the Electronics business, doubledigit growth on a local currency basis was achieved in all four geographic areas - Japan, the U.S., Europe, and Other areas. By product category, information...

  • Page 5
    ... Chief Executive Of ficer home-use PCs and digital AV products such as Digital Handycam home-use camcorders and DVD-Video players were introduced and well received, and semiconductors and electronic components also performed well. As a result, sales in the Electronics business on a local currency...

  • Page 6
    ...core Electronics business. To create the desired management model for the Sony Group in the network era, we will further pursue "unified dispersed" management. The group head office will set corporate management policies as well as plan and promote group-wide strategies. Concurrently, business units...

  • Page 7
    ... realign the Electronics business, during the year under review, we established the Home Network Company, the Personal IT Network Company, the Core Technology & Network Company, and the Communication System Solutions Network Company to develop and introduce competitive products and services. At the...

  • Page 8
    ... Electronics business. We plan to expand EVA® to other business fields of the Sony Group starting from the fiscal year that began in April 2000 and to use it for business planning, performance monitoring, and evaluating investment. Additionally, part of the remuneration for directors and corporate...

  • Page 9
    S ONY C ORPORATION ANNU AL REPORT 2000 April 2000. We plan to expand this system to encompass other levels of management in the following fiscal year. AIMING T O CREAT E GREAT ER SHAREHOLDER V ALUE At the end of March 2000, the market capitalization of Sony Corporation was ¥ 13 trillion, ...

  • Page 10
    ... Japan. New ideas springing from Mr. Morita 's limitless curiosity led to many of Sony's bestknown products. The Walkman was based on the unprecedented concept of enjoying your favorite music anywhere and anytime, even outdoors. This created an entirely new market category, compact headphone stereos...

  • Page 11
    ... ANNU AL REPORT 2000 REPRESENT ING JAPAN AROUND T HE WORLD Mr. Morita's vitality and cheerful disposition allowed him to form a broad base of personal relationships in Japan and elsewhere. He constantly strove to build bridges between Japan and other nations, helping to build sound economic...

  • Page 12
    ... NET WORK ERA Presently, music distribution services and e-commerce are readily available on the Internet. However, in the broadband network era, reams of data, including images and music, will be smoothly exchanged over high-capacity, high-speed communications infrastructures based on ADSL...

  • Page 13
    ...and other financial services over networks. NET WORKS AND T HE EV OLUT ION OF ELECT RONICS In its Electronics business, Sony has positioned four product categories as gateways to the networked world: digital TVs and set-top boxes, VAIO home-use PCs, PlayStation 2, and mobile devices. Based on this...

  • Page 14
    ... like music, pictures, and TV programs in the broadband network era, Sony will concentrate on bolstering its content production and network distribution operations, a mission that may include strategic alliances outside the Sony Group. For this purpose, Sony created a flexible entertainment business...

  • Page 15
    S ONY C ORPORATION ANNU AL REPORT 2000 broadband networks 13

  • Page 16
    ... be a very strategic project in the carrying out of Sony's network business strategy. Sony envisions net-based financial services as a business sector alongside electronics and entertainment and will be offering a growing selection of competitive services within a network environment. BUILDING NET...

  • Page 17
    ... as game software directly over the Internet. In February 2000, Sony established SonyStyle.com in Japan to conduct marketing and sales of Sony products and to offer related services. We will offer products and services together that meet the needs and preferences of customers who can access the site...

  • Page 18
    ... and VHS-format VTRs, DVD-Video players, digital still cameras, broadcast- and professional-use video equipment, and videotapes. 96 97 98 99 00 T E L E V I S I O N S - Televisions includes color TVs, projection TVs, flat panel displays, personal LCD monitors, car TVs, and professional-use monitors...

  • Page 19
    ...Sony Life Insurance Co., Ltd. and Sony Assurance Inc. 96 97 98 99 00 OTHER Sales to Customers* (Billion ¥) 80 89 88 85 123 Other business includes leasing and credit card businesses, satellite distribution-related businesses in Japan, development and operation of location-based entertainment...

  • Page 20
    ... technology, the four Network Companies that carry forward Sony's Electronics business have been striving to offer customers new forms of enjoyment and lifestyles by developing broadbandready AV products and network platforms. At the same time, the Network Companies have been steadily implementing...

  • Page 21
    ... on 8mm tape, were strong. Sales of VAIO home-use PCs, which feature unique functions and stylish exteriors, posted dramatic increases in Japan, the U.S., and Europe. Digital still cameras using the IC recording media Memory Stick or floppy disks to store pictures also performed well. On the other...

  • Page 22
    ... semiconductors, storage media, batteries, electronic components, computer peripherals, circuit boards, factory automation systems, and related businesses. During the year under review, CNC worked with Sony Computer Entertainment to initiate volume production of several key devices for PlayStation...

  • Page 23
    ... REPORT 2000 types of MPEG IMX equipment, including VTRs and camcorders for creating next-generation digital broadcasting systems. In the area of high definition equipment, CSNC received a large order for Sony's HDCAM studio production equipment from Mexico 's largest media company, Televisa Group...

  • Page 24
    ... of storing audio, video, and other data. During the year, Sony introduced Digital Handycam home-use camcorders, VAIO home-use PCs, digital still cameras, and an IC recorder with Memory Stick slots. Other introductions were a digital photo frame to view still images and a Memory Stick Walkman. The...

  • Page 25
    ...Singapore, and Malaysia to sell VAIO notebook PCs. During the year under review, Sony established the Sony Style Internet site in Japan and Europe and began direct Internet sales of Sony products. In Japan, Sony is using this e-commerce platform to cater to individual customer preferences by selling...

  • Page 26
    ... has spurred growth in Japan's DVD-Video software market as well. SCE is now preparing for the launch of PlayStation 2 in North America and Europe in October 2000. By leveraging the PlayStation and PlayStation 2 platforms, SCE, along with enhancing the existing world of gaming entertainment, aims to...

  • Page 27
    ....com (Japan) Inc. (URL: www.jp.playstation.com). On February 18, 2000, the company began direct sales of products over the Internet (e-commerce), including PlayStation 2 consoles as well as PlayStation 2 software, DVD-Video software, and other related products. The new site achieved sales of...

  • Page 28
    ... of SDMI (Secure Digital Music Initiative) compliant portable digital devices with commercial downloading of titles from online retail and Sony sites. We also acquired and invested in digital media companies we believe will help define the direction of digital entertainment. Strategically, SMEI is...

  • Page 29
    ... Sarah McLachlan. SONY MUSIC ENT ERT AINMENT ( JAPAN) INC. ( SMEJ) SMEJ continues to strive vigorously to improve business efficiencies. During the year under review, in the music business, SMEJ has been focusing and concentrating resources related to artist development and marketing costs. During...

  • Page 30
    ... business unit, Sony Pictures Digital Entertainment, to oversee our digital initiatives for the networked entertainment age. We delivered strong financial results from several film releases, home video titles, and television shows. For the third straight year, we increased SPE's profitability...

  • Page 31
    ... services, online content, and digital distribution to life. We launched interactive versions of Wheel of Fortune and Jeopa rdy! and original interactive programming on our cable channel Game Show Network. MOT ION PIC T URE & HOME V IDEO PERFORMA NC E Columbia Pictures delivered box office...

  • Page 32
    ...RT 2 0 0 0 BUSINESS REVIEW insurance Sony Life differentiates itself through its Lifeplanners who use both their ex tensive financial consulting training and sophisticated computer software to create customized solutions tailored for individual customers' present and future requirements. MESSA GE...

  • Page 33
    ...subsidiary of Sony Corporation, began operating in October 1999. Using a direct marketing model tailored to today's networked society, the new company is working to build a new type of relationship between customers and an insurer. During the year under review, Sony Assurance started selling "one on...

  • Page 34
    ... sound. This home-use camcorder based on the Digital8 format can record and playback in digital format as well as playback analog recordings on 8mm tape. Still images can be recorded on the Memory Stick IC recording media for easy transfer to PCs or Memory Stick compatible AV devices. This high...

  • Page 35
    ... units. The February 2000 establishment by SCE of PlayStation.com (Japan) Inc. gives consumers a direct channel to purchase PlayStation 2 consoles, software, DVD-Video software, and other products through its Internet site. Extending beyond just e-commerce, the new company plans to provide a divers...

  • Page 36
    ...'s albums ark and ray debuted as the number one and number two albums, respectively, on the weekly Japanese ranking chart ORICON after their releases on July 1, 1999. Dixie Chicks' second album, Fly, was the biggest selling album by a country music group in 1999. Ami Suzuki's 2nd album infinity...

  • Page 37
    ... Sandler, had the second-strongest domestic opening weekend ever for a Columbia Pictures film (after 1997's Men In Black) and became a major box office success worldwide. Wheel of Fortune remained the highestrated show in the history of syndicated television and each week is seen by an es timated...

  • Page 38
    ...the fiscal year ending March 31, 2001, environmental assessments will be used as an additional measure for evaluating the performance of each of Sony's Network Companies. REDUCING T HE IMPACT OF BUSINESS AND PRODUCT ION PROCESSES Sony is striving to build an environmental management system in order...

  • Page 39
    ... A L INFORMA T ION Sony discloses its environmental record in line with its strong belief that companies have an accountability to explain their environmental activities to the public. During the year, Sony's Environmental Report 1999 won Japan's Director-general of Environment Agency Minister Prize...

  • Page 40
    ... Kamon Tsutomu Niimura Michiaki Tsurumi Iwao Nakatani Direc to r (Director of Research, Sanwa Research Institute and Consulting Corporation) ST AT UT ORY AUDIT ORS Sta n d in g Sta tu to ry Au d ito rs GROUP EXECUT IVE OFFICERS Ken Iwaki Yoshio Ishigaki Shigeo Maruyama Ken Kutaragi Sumio Sano...

  • Page 41
    ... OF FINA NC IA L C ONDIT ION AND RESULT S OF OPERAT IONS The following "Management's Discussion and Analysis of Financial Condition and Results of Operations" is based on current information known to management as of June 6, 2000. In the U.S., Europe, and Asia, Sony carries out financing functions...

  • Page 42
    ...liquid assets, free cash flows and access to capital markets, taken together, provide adequate resources to fund ongoing operating requirements and future capital expenditures related to the expansion of existing businesses and development of new projects. INVENTORIES and INVENTORY TO COST OF SALES...

  • Page 43
    ... at the previous fiscal year-end.) The increase was principally attributable to increases in future insurance policy benefits and other and notes and accounts payable, trade, despite decreases in total long-term debt. Among current liabilities, the current portion of long-term debt increased due to...

  • Page 44
    ... quarter of the year. Inventories increased principally at manufacturing facilities in Japan, reflecting the startup of PlayStation 2 in the Game business. However, notes and accounts payable increased due to sales increases noted above. Increases in future insurance policy benefits and other were...

  • Page 45
    ... value of the yen had remained the same. Regarding the U.S. based Music and Pictures businesses, results of worldwide subsidiaries (in the case of Music, excluding those of Japan) are consolidated on a U.S. dollar basis. Local currency basis results are not reflected in Sony's financial statements...

  • Page 46
    ...of Notes to Consolidated Financial Statements). As a result, of the approximately 348 billion yen which represented the increase in total capital (equivalent to the purchase price from external shareholders) of Sony Corporation, S ales Sales for the fiscal year ended March 31, 2000 decreased by 117...

  • Page 47
    ... of approximately 19.2 billion yen for stock-price linked incentive compensation resulting from the sharp rise in Sony Corporation's stock price in the fiscal year ended March 31, 2000, compared with a minor charge in the previous year. COST OF SALES and SELLING, GENERAL AND ADMINISTRATIVE EXPENSES...

  • Page 48
    ... a low level as a result of the yen's appreciation. 5 7 10 14 10 9 7 42 27 64 Electronics Game Music Pictures Insurance Other Outside: Sales and operating revenue Inside: Operating income * Year ended March 31, 2000 * Including intersegment transactions * Operating profit charts are calculated...

  • Page 49
    ... Sales of digital still cameras increased in all areas principally due to Sony's efforts to improve picture quality and further penetration of PCs. Sales of DVD-Video players increased, especially in the U.S., reflecting increased software lineups and higher demand for home-theater use. "Televisions...

  • Page 50
    ... In Europe, sales of such products as PCs, home-use video cameras, home stereos, and DVD-Video players increased in Western Europe. In Other areas, sales of such products as color TVs, semiconductors, and home stereos increased in Asia. G ame Sales for the fiscal year ended March 31, 2000 decreased...

  • Page 51
    ... direct marketing results that did not reoccur as well as expenses for the year incurred in advancing SMEI's digital media initiatives. Regarding results of the Music business in Japan, comprised of Sony Music Entertainment (Japan) Inc. ("SMEJ") and its subsidiaries, although overall sales decreased...

  • Page 52
    ... GAAP used in Sony's consolidated financial statements, because the Insurance business is different in nature from Sony's Electronics, Game, Music, and Pictures businesses, Sony believes that this type of comparative presentation helps the understanding and analysis of Sony's consolidated financial...

  • Page 53
    ...leasing and credit card business in Japan, a business focused on parts trading services within the Sony group, certain satellite distribution services businesses in Japan, an advertising agency business in Japan, an Internet-related business in the U.S., and a location-based entertainment complex in...

  • Page 54
    ... venture in Japan, ii) in the Music business - The Columbia House Company ("CHC"), a direct marketer of music and videos, iii) in the Pictures business - Telemundo group, a U.S. based Spanish language television network and station group and Loews Cineplex Entertainment Corporation, a theatrical...

  • Page 55
    S ONY C ORPORATION ANNU AL REPORT 2000 In March 2000, Sony, Time Warner Inc., and CDNOW Inc., which provides services for selling music and video software via the Internet, announced the termination of a merger plan between CDNOW Inc. and CHC, which is equally owned by Sony and Time Warner Inc. ...

  • Page 56
    .... In line with this strategy, Sony is actively proceeding with strategic investments in venture companies, especially in the U.S. During the fiscal year ended March 31, 2000, approximately 11.0 billion yen of investments were made, both through Sony Corporation initiatives and through digital media...

  • Page 57
    ... key devices, high levels of research and development expenses and long-term investment for making high value-added and digital network products, and various costs including expenses for raw materials, personnel, and licenses. Regarding the forecast of consolidated results for the fiscal year ending...

  • Page 58
    ... and new products production equipment in the Electronics business, for semiconductor production equipment in the Game business, and for DVD discs manufactured in the Music business are expected to increase. Regarding the breakdown of capital expenditures for the fiscal year ending March...

  • Page 59
    ... revenues during the fiscal year. Expenses relating to development of new interactive services that combine digital technology and film and television assets, and other strategic investments are expected to negatively affect profit. In the Insurance business, although the life insurance business...

  • Page 60
    ... information systems at the end of February 2000 relating to a leap year problem, Sony does not currently believe that any issues exist that will materially affect Sony's customers, operations, or consolidated financial results or condition. COMPLIANCE WITH STATEMENTS OF FINANCIAL ACCOUNTING...

  • Page 61
    ... ST OC K INFORMA T ION Sony Corporation and Consolidated Subsidiaries (Unaudited) Year ended March 31 Yen in billions except per share amounts 1st Quarter 1999 2nd Quarter 1999 3rd Quarter 1999 4th Quarter 1999 2000 2000 2000 2000 Sales and operating revenue ...Operating income (loss) ...Income...

  • Page 62
    ... ED FINA NC IA L DA T A Sony Corporation and Consolidated Subsidiaries Year ended March 31 • Yen in millions except per share amounts 1996 1997 1998 1999 Dollars in millions except per share amounts 2000 2000 FOR THE YEAR Sales and operating revenue ...¥4,586,740 ¥5,658,253 Operating income...

  • Page 63
    ...REPORT 2000 COMPOSIT ION OF SALES AND OPERAT ING REV ENUE BY BUSINESS AND GEOGRAPHIC SEGMENT Sony Corporation and Consolidated Subsidiaries Year ended March 31 • Yen in millions 1996 1997 1998 1999 Dollars in millions** 2000 2000 BY BUSINESS SEGMENT * Electronics ...Game ...Music ...Pictures...

  • Page 64
    ... 13) ...Time deposits (Note 13) ...Marketable securities (Note 10) ...Notes and accounts receivable, trade (Note 9) ...Allowance for doubtful accounts and sales returns . Inventories (Note 8) ...Deferred income taxes (Note 16) ...Prepaid expenses and other current assets ...Â¥ 592,210 24,304 117,857...

  • Page 65
    ... REPORT 2000 Yen in millions 1999 Dollars in millions (Note 3) 2000 2000 LIABILITIES AND STOCKHOLDERS' EQUITY Cur r en t liabilities: Short-term borrowings (Notes 11 and 13) ...Current portion of long-term debt (Notes 11, 13 and 20) Notes and accounts payable, trade (Note 9) ...Accounts payable...

  • Page 66
    ... ED ST AT EMENT S OF INCOME Sony Corporation and Consolidated Subsidiaries Year ended March 31 • Yen in millions 1998 1999 Dollars in millions (Note 3) 2000 2000 Sales an d oper atin g r even ue: Net sales (Note 9) ...Insurance revenue ...Other operating revenue ...¥6,424,805 291,061 45,138...

  • Page 67
    ... exhibition business (Note 7) ...Payments for purchases of marketable securities ...Proceeds from sales of marketable securities ...(Increase) decrease in time deposits ...Net cash used in investing activities ... Cash flow s fr om fin an cin g activities: Proceeds from issuance of long-term debt...

  • Page 68
    ...' EQUIT Y Sony Corporation and Consolidated Subsidiaries Year ended March 31 • Yen in millions Additional paid-in capital Accumulated other Treasury comprehensive stock, at income cost Common stock Retained earnings Total Balance at March 31, 1997 ...Exercise of stock purchase warrants...

  • Page 69
    ...REPORT 2000 Yen in millions Additional paid-in capital Accumulated other comprehensive income Treasury stock, at cost Common stock Retained earnings Total Balance at March 31, 1999 ...Exercise of stock purchase warrants ...Conversion of convertible bonds ...Stock issued under exchange offerings...

  • Page 70
    ... program supplying businesses in Japan, Internet-related businesses, development and operation of location-based entertainment complexes, and others. Basis of consolidation and accounting for investments in affiliated companies The consolidated financial statements include the accounts of Sony...

  • Page 71
    ... method for Sony Corporation and Japanese subsidiaries and on the straightline method for foreign subsidiary companies at rates based on estimated useful lives of the assets, principally, ranging from 15 years up to 50 years for buildings and from 2 years up to 10 years for machinery and equipment...

  • Page 72
    ... the related revenue streams in each market that such costs are intended to benefit in accordance with Financial Accounting Standards Board ("FASB") Statement No. 53, "Financial Reporting by Producers and Distributors of Motion Picture Films". Advertising costs for acquiring new insurance policies...

  • Page 73
    ... stock split that became effective subsequent to the date of the financial statements but before the issuance of the statements. 4. In tegr ation of th r ee listed subsidiar ies On January 5, 2000, Sony Corporation made three listed subsidiaries, Sony Music Entertainment (Japan) Inc. ("SMEJ"), Sony...

  • Page 74
    ... the full year. After the date of the exchange, minority interest income or losses relating to these subsidiaries were no longer recognized in Sony's consolidated financial statements. The following unaudited consolidated pro forma information shows the results of Sony's consolidated operations for...

  • Page 75
    ...results are now reported on an equity basis. In connection with the Loews merger and the subsequent public offering, Sony received proceeds of ¥53,007 million and recorded a gain of ¥5,181 million, which is reflected in gain on sale of securities investments and other on the consolidated statement...

  • Page 76
    ... in millions Mar ch 31 , 2000 2000 Current assets ...Property, plant and equipment ...Other assets ...Total assets ...Current liabilities ...Long-term liabilities ...Stockholders' equity ...Total liabilities and stockholders' equity ...Number of companies at end of year ... ¥271,796 222,346 162...

  • Page 77
    ... Accounts receivable, trade ...Accounts payable, trade ... ¥14,744 132 Yen in millions Year ended March 31 ¥1 4,453 1 ,085 $1 36 10 Dollars in millions Year en ded 2000 Mar ch 31 , 2000 1998 1999 Sales ...Purchases ...Dividends from affiliated companies accounted for by the equity method...

  • Page 78
    ... O RT 2 0 0 0 In December 1998, Sony Corporation contributed certain marketable equity securities, not including those of its subsidiaries and affiliated companies, to an employee retirement benefit trust, with no cash proceeds thereon. The fair value of these securities at the time of contribution...

  • Page 79
    ... 2005 ...15,000 Unsecured fixed coupon U.S. dollar notes linked to the Yen/U.S. dollar rate of a consolidated subsidiary, due 2001 ...784 Secured 3.8% bonds of a consolidated subsidiary, due 2001, redeemable before due date ...3,000 Long-term capital lease obligations: Due 1999 to 2009 with interest...

  • Page 80
    ... March 31, 2000, property, plant and equipment with a book value of ¥4,060 million ($38 million) was mortgaged as collateral for loans and bonds issued by consolidated subsidiaries. Aggregate amounts of annual maturities of long-term debt during the next five years are as follows: Year ending March...

  • Page 81
    ... longterm debt, including the current portion, were estimated based on either the market value or the discounted amounts of future cash flows using Sony's current incremental borrowing rates for similar liabilities. Der ivative financial instr uments Futur e insur ance policy benefits Liabilities...

  • Page 82
    ... 1999 and 2000 were insignificant. The estimated fair values of Sony's financial instruments, 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...

  • Page 83
    ... indemnities are covered by severance payments by the companies. The pension benefits are determined based on years of service and the compensation amounts, as stipulated in the aforementioned regulations, are payable at the option of the retiring employee in a lump-sum amount or on a monthly...

  • Page 84
    ... 09 (1 31 ) (1 09) 981 Benefit obligation at end of year ...Change in plan assets: Fair value of plan assets at beginning of year ...Actual return on plan assets ...Foreign currency exchange rate changes . Employer contribution ...Plan participants' contributions ...Benefits paid ... 729,803 6,885...

  • Page 85
    ... certain marketable equity securities to an employee retirement benefit trust. The securities held in this trust are qualified as plan assets under U.S. GAAP. 1 5. Restr uctur in g ch ar ges Sony discontinued its engineering, sales, and marketing operations for the cellular phone business in...

  • Page 86
    ... the effective income tax rate is as follows: Year ended March 31 1998 1999 2000 Statutory tax rate ...Increase (reduction) in taxes resulting from: Income tax credit ...Valuation allowance recognized on current losses of subsidiaries Decrease in deferred tax liabilities on undistributed earnings...

  • Page 87
    ...Music Entertainment (Japan) Inc. in a public offering to third parties in November 1991, as Sony does not anticipate any significant tax consequences on possible future disposition of its investment based on its tax planning strategies. The unrecognized deferred tax liabilities as of March 31, 2000...

  • Page 88
    ..., to acquire and retire up to a total not exceeding 30 million outstanding shares of its common stock with its profit, on and after June 28, 1997, whenever deemed necessary by the Board of Directors in view of general economic conditions, Sony's business performance and financial condition and other...

  • Page 89
    ...plan s The number of shares and the exercise prices in the following information are adjusted for all periods to reflect the two-for-one stock split that has become effective on May 19, 2000. Sony has two types of stock-based compensation plans as incentive plans for directors and selected employees...

  • Page 90
    ... warrant, directors and selected employees can purchase the common stock of Sony Corporation, the number of which is calculated as ¥2 million divided by the strike price. The warrants generally vest ratably over a period of three years, and are generally exercisable up to six years from the date of...

  • Page 91
    ...% 2.78 year s 33.1 2% 0.40% SAR plan Sony adopted separate SAR plans in Japan, Europe and the United States of America for selected employees. Under the terms of these plans, employees on exercise receive cash equal to the amount that the market price of Sony Corporation's common stock exceeds the...

  • Page 92
    ... Leased assets Sony 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 March 31 Dollars in millions Mar ch 31 , 2000 2000 Class of property Land ...Buildings...

  • Page 93
    ...of recorded music, in all commercial formats and musical genres. The Pictures segment develops, produces and manufactures image-based software, including film, video, and television mainly in the United States of America, and markets, distributes and broadcasts in the worldwide market. The Insurance...

  • Page 94
    ... Year en ded 2000 Mar ch 31 , 2000 Sales and operating revenue: Electronics - Customers ...Intersegment ...Total ...Game - Customers ...Intersegment ...Total ...Music - Customers ...Intersegment ...Total ...Pictures - Customers ...Intersegment ...Total ...Insurance - Customers ...Intersegment...

  • Page 95
    ... unallocated corporate expenses in the year ended March 31, 2000 was primarily due to an increase in stock-based compensation expenses. Assets: Yen in millions March 31 1998 1999 Dollars in millions Mar ch 31 , 2000 2000 Total assets: Electronics . Game ...Music ...Pictures ...Insurance . Other...

  • Page 96
    ... customers by product category. The Electronics business is managed as a single operating segment by Sony's management. Yen in millions Year ended March 31 1998 1999 Dollars in millions 2000 Year en ded Mar ch 31 , 2000 Audio ...Video ...Televisions ...Information and Communications Electronic...

  • Page 97
    ... to countries based on location of customers and long-lived assets for the years ended March 31, 1998, 1999 and 2000 are as follows: Yen in millions Year ended March 31 1998 1999 Dollars in millions 2000 Year en ded Mar ch 31 , 2000 Sales and operating revenue: Japan ...U.S.A...Europe ...Other...

  • Page 98
    ...Exchange Law, to which Sony, as a Japanese public company, is subject. Yen in millions Year ended March 31 1998 1999 Dollars in millions 2000 Year en ded Mar ch 31 , 2000 Sales and operating revenue: Japan- Customers ...Intersegment ...Total ...U.S.A.- Customers ...Intersegment ...Total ...Europe...

  • Page 99
    ... to which the date is May 19, 2000 To the Stockholders and Board of Directors of Sony Corporation (Sony Kabushiki Kaisha) In our opinion, the accompanying consolidated balance sheets and the related consolidated statements of income, cash flows and changes in stockholders' equity present fairly, in...

  • Page 100
    ... Sapporo stock exchanges Son y on th e In ter n et Sony's Home Pages on the World Wide Web offer a wealth of corporate and product information, including the latest annual report and financial results. 'Sony Corporation' http://www.world.sony.com 'Sony USA' http://www.sony.com Number of Sh ar eh...

  • Page 101
    ...AT I O N A N N U A L R E P O RT 2 0 0 0 NEW DIRECT ORS Assuming shareholder approval, the appointments will become official at the meeting of the Board of Directors to be held immediately after the Ordinary General Meeting of Shareholders to be held on June 29, 2000. Norio Ohga Ch a irm a n o f th...

  • Page 102
    Sony Corporation This annual report was printed entirely on recycled paper. Printed in Japan