Sony 2000 Annual Report Download - page 90

Download and view the complete annual report

Please find page 90 of the 2000 Sony annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 102

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102

88
SONY CORPORATION ANNUAL REPORT 2000
Outstanding Exercisable
Weighted- Weighted- Weighted-
Number of average average Number of average
Exercise price range Shares exercise price remaining life Shares exercise price
Yen Yen Dollars Years Yen Dollars
¥3,511 –5,000 . . . . . . . 28,450 ¥3,51 1 $33.12 0.42 28,450 ¥3,51 1 $33.12
5,001 –7,167 . . . . . . . 1,503,1 23 6,511 61 .42 4.1 2 51 3,516 6,008 56.68
¥3,511 –7,1 67 . . . . . . . 1,531,573 ¥6,456 $60.91 4.05 541,966 ¥5,877 $55.44
Warrant plan
Upon issuance of unsecured bonds with detachable
warrants, Sony Corporation has purchased all of the
detachable warrants and distributed them to the direc-
tors and selected employees of Sony Corporation. By
exercising a warrant, directors and selected employees
can purchase the common stock of Sony Corporation,
Year ended March 31
1998 1999 2000 2000
Yen in millions Dollars in millions
Net income:
As reported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥222,068 ¥179,004 ¥1 21 ,835 $1 ,1 49
Pro forma . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 221,885 178,505 121 ,1 91 1 ,143
Yen Dollars
Basic EPS:
As reported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥278.9 ¥218.4 ¥144.6 $1 .36
Pro forma . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 278.6 217.8 143.8 1 .36
Diluted EPS:
As reported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 241.7 195.5 1 31 .7 1.24
Pro forma . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 241.5 195.0 131.0 1.24
Year ended March 31
1998 1999 2000
Weighted- Weighted- Weighted-
Number of average Number of average Number of average
Shares exercise price Shares exercise price Shares exercise price
Yen Yen Yen Dollars
Outstanding at beginning
of year . . . . . . . . . . . . 708,471 ¥3,283 773,078 ¥5,306 1 ,357,568 ¥5,846 $55.15
Granted . . . . . . . . . . . . 593,250 5,894 638,000 6,264 558,000 7,1 67 67.61
Exercised . . . . . . . . . . . (528,643) 3,254 (53,510) 3,025 (383,995) 5,333 50.31
Outstanding at end
of year . . . . . . . . . . . . 773,078 ¥5,306 1,357,568 ¥5,846 1 ,531,573 ¥6,456 $60.91
Exercisable at end
of year . . . . . . . . . . . . 179,828 ¥3,366 719,568 ¥5,476 541,966 ¥5,877 $55.44
A summary of warrants outstanding and exercisable
at March 31, 2000 is as follows:
As the exercise prices were determined based on
the prevailing market price shortly before the date of
grant, the compensation expense for warrant plan was
not significant for the years ended March 31, 1998,
1999 and 2000, respectively.
In accordance with FAS 123 “Accounting for Stock-
Based Compensation”, Sony has elected to account for
stock-based compensation under the provisions of APB
25. Had compensation for Sony’s warrant plan been
recognized based on the fair value on the grant date
under the methodology prescribed by FAS 123, Sony’s
net income and net income per share (“EPS”) for the
years ended March 31, 1998, 1999 and 2000 would have
been impacted as shown in the following table:
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 exercis-
able up to six years from the date of grant.
Presented below is a summary of the warrant plan
activity for the years shown: