Sony 2006 Annual Report Download - page 143

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STOCK ACQUISITION RIGHTS (SARS)
Date of issue Total number of Exercise Outstanding Percentage of
Name (Exercise period) SARs to be issued price balance SARs exercised (%)
The first series of common stock acquisition rights December 9, 2002 12,004 ¥5,396.00 11,957 0.4
(December 8, 2012)
The third series of common stock acquisition rights March 31, 2003 14,475 U.S.$36.57 12,000 17.1
(March 31, 2013)
The fourth series of common stock acquisition rights November 14, 2003 13,978 ¥4,101.00 13,304 4.8
(November 13, 2013)
The sixth series of common stock acquisition rights March 31, 2004 12,236 U.S.$40.90 11,510 5.9
(March 31, 2014)
The seventh series of common stock acquisition rights November 18, 2004 14,242 ¥3,782.00 14,242 0
(November 17, 2014)
The ninth series of common stock acquisition rights March 31, 2005 10,094 U.S.$40.34 10,094 0
(March 31, 2015)
The tenth series of common stock acquisition rights November 17, 2005 11,241 ¥4,060.00 11,241 0
(November 16, 2015)
The eleventh series of common stock acquisition rights November 17, 2005 13,675 U.S.$34.14 13,675 0
(November 17, 2015)
Notes: 1. Stock acquisition rights numbers 1 through 11 were issued at no cost for the purpose of granting stock options.
2. Subsidiary tracking stock acquisition rights numbers 2, 5 and 8 were all exercised.
CONVERTIBLE BONDS
Interest rate Total amount Conversion Outstanding balance
Name Date of issue Years (%) of issue price (Percentage of bonds converted)
Euroyen-denominated notes with convertible bond-type December 18, 2003 5 0 ¥250,000.million ¥ 5,605.0 ¥250,000.million
stock acquisition rights and conversion restrictions (0%)
U.S. dollar convertible bonds April 17, 2000 10 0 U.S.$57,331.thousand ¥13,220.0 U.S.$46,276.thousand
(0%)
U.S. dollar convertible bonds April 16, 2001 10 0 U.S.$77,056.thousand ¥ 8,814.0 U.S.$49,273.thousand
(0%)
U.S. dollar convertible bonds December 17, 2001 5 0 U.S.$57,307.thousand ¥5,952.23 U.S.$32,728.thousand
(41.5%)
U.S. dollar convertible bonds April 15, 2002 10 0 U.S.$67,297.thousand ¥ 6,931.0 U.S.$39,067.thousand
(0%)
Notes: 1. The stock acquisition rights of the bonds with stock acquisition rights (principal amount of ¥250 billion) cannot be detached from the bonds, and the exercise of a stock acquisition right causes
the corresponding bond to be canceled in lieu of a cash payment for purchase of shares. Due to this close interrelation between the bonds and stock acquisition rights, and in consideration of
the value of the stock acquisition rights and the economic value obtainable by issuing the bonds with the coupon, issue price and other terms of the issue, the stock acquisition rights are
issued at no cost.
2. All U.S. dollar convertible bonds were issued to provide equity-based compensation to certain executives in Sony’s U.S. subsidiary companies. All U.S. dollar convertible bonds were issued for
distribution to certain executives in Sony Corporation’s U.S. subsidiary companies as an equity-based incentive plan. Although the conversion ratio is 0% for all these bonds, the value of bonds
issued does not match the outstanding balance of bonds because Sony Corporation purchased and canceled a portion of these warrants that were not used for the incentive plan.
BONDS WITH WARRANTS
Interest rate Total amount Conversion Outstanding balance
Name Date of issue Years (%) of issue price (Percentage of warrants exercised)
The tenth series of unsecured October 19, 2000 6 1.55 ¥12,000 million ¥12,457.0 ¥11,490 million
bonds with warrants (0%)
The thirteenth series of unsecured December 21, 2001 6 0.9 ¥ 7,300 million ¥ 6,039.0 ¥ 6,920 million
bonds with warrants (0%)
The fourteenth series of unsecured bonds with December 21, 2001 6 0.9 ¥ 150 million ¥ 2,962.3 ¥ — million
warrants (100%)
Notes: 1. All bonds with warrants were issued for distribution to the directors and other executives of Sony Corporation as an equity-based incentive plan. The fourteenth series of unsecured bonds with
warrants for shares of subsidiary tracking stock was issued for distribution to the directors and other executives of Sony Communication Network. Regarding the tenth series of unsecured
bonds with warrants and the thirteenth series of unsecured bonds with warrants, Sony Corporation canceled a portion of the warrants that were not used for the incentive plan. As a result,
although the exercise ratio is 0% for both issues, the value of bonds issued does not match the outstanding balance of warrants.
2. The seventh series of unsecured bonds with warrants (¥4,000 million) was redeemed at maturity on August 23, 2005.
STRAIGHT BONDS
Name Date of issue Years Interest rate (%) Total amount of issue Outstanding balance
The seventh (2) series of unsecured bonds July 26, 2000 7 1.99 ¥ 15,000 million ¥ 15,000 million
The eighth (2) series of unsecured bonds July 26, 2000 10 (Note 2) ¥ 5,000 million ¥ 4,900 million
The ninth series of unsecured bonds September 13, 2000 10 2.04 ¥ 50,000 million ¥ 50,000 million
The eleventh series of unsecured bonds September 17, 2001 5 0.64 ¥100,000 million ¥100,000 million
The twelfth series of unsecured bonds September 17, 2001 10 1.52 ¥ 50,000 million ¥ 50,000 million
The fifteenth series of unsecured bonds September 8, 2005 5 0.80 ¥ 50,000 million ¥ 50,000 million
The sixteenth series of unsecured bonds September 8, 2005 7 1.16 ¥ 40,000 million ¥ 40,000 million
The seventeenth series of unsecured bonds September 8, 2005 10 1.57 ¥ 30,000 million ¥ 30,000 million
The eighteenth series of unsecured bonds February 28, 2006 4 1.01 ¥ 40,000 million ¥ 40,000 million
The nineteenth series of unsecured bonds February 28, 2006 7 1.52 ¥ 35,000 million ¥ 35,000 million
The twentieth series of unsecured bonds February 28, 2006 10 1.75 ¥ 25,000 million ¥ 25,000 million
Notes: 1. Sony Corporation assumed responsibility for the sixth (2) series of unsecured bonds, the seventh (2) series of unsecured bonds and the eighth (2) series of unsecured bonds as a result of its
merger with AIWA Corporation. Sony Corporation repurchased and canceled ¥100 million of the eighth (2) series of unsecured bonds.
2. The interest rate of the eighth (2) series of unsecured bonds is calculated by subtracting 2-year interest rate swap from 20-year interest rate swap and then adding 1.00%. (If the result of this
calculation is negative, the interest rate is 0%.)
3. The eighth series of unsecured bonds (¥100,000 million) and the sixth (2) series of unsecured bonds (¥15,000 million) were redeemed at maturity on September 13 and October 21, 2005,
respectively.
Stock Acquisition Rights and Bond Information
As of March 31, 2006