Sony 2000 Annual Report Download - page 60

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SONY CORPORATION ANNUAL REPORT 2000
58
Dividend Policy
In the coming broadband network era, Sony Corporation, as
the Sony Group Headquarters, considers that it is important
to return profit to each shareholder by maintaining future
competitiveness and increasing corporate value. As for re-
tained earnings, Sony Corporation plans to utilize them ef-
fectively to carry out research and development and
investments that are indispensable for continuing future
growth of the Sony group.
A year-end cash dividend per share of Sony Corporation
at the rate of 25 yen will be subject to approval at the Ordi-
nary General Meeting of Shareholders, which will be held
on June 29, 2000. Sony Corporation has already paid 25 yen
per share to each shareholder; accordingly the annual cash
dividend per share will be 50 yen.
Sony Corporation completed the split of its shares at the
ratio of 2 shares for each share as of May 19, 2000. Subject to
Board of Directors and shareholder approval, the annual cash
dividend per share, after the split, for the fiscal year ending
March 31, 2001 would be 25 yen (12.5 yen for interim divi-
dend), which is half of the level of the annual cash dividend
per share on a pre-split basis, thus, Sony intends to maintain
the same overall dividend as the fiscal year ended March 31,
2000 after taking the split into account.
THE YEAR 2000 ISSUE
After the transition period toward 2000, Sony gathered in-
formation through its customer service support centers and
internal communication structure for Year 2000 related is-
sues. Although some minor issues have been discovered in
some internal information systems at the end of February
2000 relating to a leap year problem, Sony does not cur-
rently believe that any issues exist that will materially affect
Sony’s customers, operations, or consolidated financial re-
sults or condition.
COMPLIANCE WITH STATEMENTS OF FINANCIAL
ACCOUNTING STANDARDS
In June 1998, the Financial Accounting Standards Board
(“FASB”) issued Statement of Financial Accounting Standards
(“FAS”) No. 133, “Accounting for Derivative Instruments and
Hedging Activities.” This standard requires all derivatives to
be recognized in the balance sheet as either assets or liabili-
ties and measured at fair value. To implement this standard,
all hedging relationships must be reassessed. In June 1999,
the FASB issued FAS 137, “Accounting for Derivative Instru-
ments and Hedging Activities - Deferral of the Effective Date
of FASB Statement No. 133.” The statement defers the effec-
tive date of FAS 133 for one year until the fiscal year begin-
ning after June 15, 2000. Sony will adopt this standard as of
April 1, 2001. Sony is now in the process of assessing the
impact that this standard will have on Sony’s results of op-
erations and consolidated financial position.