Sony 2015 Annual Report Download - page 176

SONY CORPORATION AND CONSOLIDATED SUBSIDIARIES
common stock price. The reduced conversion price ranges from 3,526.5 yen to 5,008.0 yen per common share.
The conversion price is also adjusted for dividends in excess of 25 yen per common share per fiscal year. Sony
has the option to redeem all of the Zero Coupon Convertible Bonds outstanding at 100% of the principal amount
after July 21, 2020, if the closing sales price per share of Sony’s common stock on the Tokyo Stock Exchange is
130% or more of the conversion price of the Zero Coupon Convertible Bonds for 20 consecutive trading days.
Sony was not required to bifurcate any of the embedded features contained in the Zero Coupon Convertible
Bonds for accounting purposes. There are no significant adverse debt covenants under the Zero Coupon
Convertible Bonds.
There are no significant adverse debt covenants or cross-default provisions related to the other short-term
borrowings and long-term debt.
Aggregate amounts of annual maturities of long-term debt are as follows:
Fiscal year ending March 31 Yen in millions
2017 187,668
2018 82,616
2019 202,151
2020 75,474
2021 4,429
Later fiscal years 191,935
Total 744,273
At March 31, 2016, Sony had unused committed lines of credit amounting to 523,043 million yen and can
generally borrow up to 180 days from the banks with whom Sony has committed line contracts. Furthermore, at
March 31, 2016, Sony has commercial paper programs totaling 838,040 million yen. Sony can issue commercial
paper for a period generally not in excess of 270 days up to the size of the programs.
12. Housing loans and deposits from customers in the banking business
(1) Housing loans in the banking business
Sony acquires and holds certain financial receivables in the normal course of business. The majority of
financing receivables held by Sony consists of housing loans in the banking business and no other significant
financial receivables exist.
A subsidiary in the banking business monitors the credit quality of housing loans based on the classification
set by the financial conditions and the past due status of individual obligors. Past due status is monitored on a
daily basis and the aforementioned classification is reviewed on a quarterly basis.
The allowance for the credit losses is established based on the aforementioned classifications and the
evaluation of collateral. The amount of housing loans in the banking business and the corresponding allowance
for credit losses as of March 31, 2015 were 1,074,386 million yen and 1,037 million yen, respectively, and as of
March 31, 2016 were 1,235,311 million yen and 910 million yen, respectively. During the fiscal years ended
March 31, 2015 and 2016, charge-offs on housing loans in the banking business and changes in the allowance for
credit losses were not significant.
The balance of housing loans placed on nonaccrual status or past due status were not significant as of
March 31, 2015 and 2016.
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