Sony 2007 Annual Report Download - page 79

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CONTRACTUAL OBLIGATIONS, COMMITMENTS, AND CONTINGENT LIABILITIES
The following table summarizes Sony’s contractual obligations and major commitments as of March 31, 2007. The references to the
Notes below refer to corresponding notes within the Notes to Consolidated Financial Statements.
Yen in millions
Payments due by period
Less than
Tota l 1 year 1 to 3 years 3 to 5 years After 5 years
Contractual Obligations and Major Commitments:*
Long-term debt (Note 11)
Capital lease obligations (Notes 8 and 11) . . . . . . . . . . . . . . . . . . . . . . . . .
49,403 12,559 13,674 6,052 17,118
Other long-term debt (Note 11). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 994,772 30,611 448,404 272,798 242,959
Minimum rental payments required under operating leases (Note 8) . . . . . . 202,723 46,154 64,811 31,129 60,629
Purchase commitments for property, plant and equipment and
other assets (Note 23) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
43,329 43,083 213 33 —
Expected cost for the production or purchase of films and
television programming or certain rights (Note 23) . . . . . . . . . . . . . . . . . .
67,717 54,940 12,033 585 159
Partnership program contract with
Fédération Internationale de Football Association (Note 23) . . . . . . . . . . .
30,939 3,897 7,794 9,624 9,624
8th generation amorphous TFT LCD panel manufacturing line
at joint venture, S-LCD Corporation (Note 23) . . . . . . . . . . . . . . . . . . . . . 50,200 50,200 — — —
* The total amount of expected future pension payments is not included in either the above table or the total amount of commitments outstanding at March 31, 2007
discussed below as such amount is not currently determinable. Sony expects to contribute approximately 37.0 billion yen to the Japanese pension plans and approximately
5.0 billion yen to the foreign pension plans during the fiscal year ending March 31, 2008 (Note 14).
* The total unused portion of the line of credit extended under loan agreements in the Financial Services segment is not included in either the above table or the amount of
commitments outstanding at March 31, 2007 discussed below as it is not foreseeable how many loans will be executed. The total unused portion of the line of credit
extended under these contracts was 348.4 billion yen as of March 31, 2007 (Note 23).
* The 5-year Revolving Credit Agreement with SONY BMG, which matures on August 5, 2009 and provides for a base commitment of 300 million U.S. dollars and additional
incremental borrowings of up to 150 million U.S. dollars, is not included in either the above table or the amount of commitments outstanding at March 31, 2007 discussed
below as such amount is not currently determinable. Sony’s outstanding commitment under this Credit Agreement as of March 31, 2007 was 26.6 billion yen (Note 23).
The total amount of commitments outstanding at March 31,
2007 was 296.1 billion yen (Note 23). The commitments include
major purchase obligations as shown above.
In the ordinary course of business, Sony makes commitments
for the purchase of property, plant and equipment. As of March
31, 2007, such commitments outstanding were 43.3 billion yen.
A subsidiary in the Pictures segment has committed to fund a
portion of the production costs of completed films and is
responsible for all distribution and marketing expenses relating
to these films under a distribution agreement with a third party.
Further, certain subsidiaries in the Pictures segment have
entered into agreements with creative talent for the development
and production of films and television programming as well as
agreements with third parties to acquire completed films, or
certain rights therein. As of March 31, 2007, the total amount of
the expected cost for the production or purchase of films and
television programming or certain rights under the above
commitments was 67.7 billion yen.
Sony Corporation has entered into a partnership program
contract with Fédération Internationale de Football Association
(“FIFA”). Through this program Sony Corporation will be able to
exercise various rights as an official sponsor of FIFA events from
2007 to 2014. As of March 31, 2007, Sony Corporation was
committed to make payments of 30.9 billion yen under such
contract.
In July 2006, Sony Corporation and Samsung signed the final
contract with respect to the construction of an 8th generation
amorphous TFT LCD panel manufacturing line at their joint
venture, S-LCD. As of March 31, 2007, Sony Corporation was
committed to make payments of 50.2 billion yen under such
contract.
In order to fulfill its commitments, Sony will use cash generated
by its operating activities, intra-group loans and borrowings from
subsidiaries with excess funds to subsidiaries that are short of
funds through its finance subsidiaries, and, when necessary,
raise funds from the global capital markets and banks.
The following table summarizes Sony’s contingent liabilities as
of March 31, 2007.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yen in millions
Contingent Liabilities (Note 23):
Loan guarantees to related parties . . . . . . . . 11,100
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,581
Total contingent liabilities . . . . . . . . . . . . . . . . . 21,681