Short-Term Borrowings and Long-Term Debt

12 Months Ended

Mar. 31, 2012

Short-Term Borrowings and Long-Term Debt

11. Short-term borrowings and long-term debt

Short-term borrowings are comprised of the following:

	Yen in millions
	March 31
	2011		2012
Unsecured loans:
with a weighted-average interest rate of 4.40%		43,737
with a weighted-average interest rate of 3.98%				89,878
Secured call money:
with a weighted-average interest rate of 0.11%		10,000
with a weighted-average interest rate of 0.11%				10,000
		53,737		99,878

At March 31, 2012, securities investments with a book value of 10,845 million yen were pledged as collateral for 10,000 million yen of call money, by subsidiaries in the Financial Services segment. In addition, marketable securities with a book value of 129,472 million yen were pledged as collateral for cash settlements, variation margins of futures markets and certain other purposes at March 31, 2012.

Long-term debt is comprised of the following:

	Yen in millions
	March 31
	2011		2012
Unsecured loans, representing obligations principally to banks:
Due 2011 to 2018, with interest rates ranging from 0.20% to 4.50% per annum		441,976
Due 2012 to 2024, with interest rates ranging from 0.23% to 4.50% per annum				564,275
Unsecured 1.52% bonds, due 2011, net of unamortized discount		50,000
Unsecured 1.16% bonds, due 2012, net of unamortized discount		39,996		39,999
Unsecured 1.52% bonds, due 2013, net of unamortized discount		34,999		35,000
Unsecured 1.57% bonds, due 2015, net of unamortized discount		29,991		29,993
Unsecured 1.75% bonds, due 2015, net of unamortized discount		24,996		24,997
Unsecured 1.17% bonds, due 2011		10,500
Unsecured 0.95% bonds, due 2012		60,000		60,000
Unsecured 1.40% bonds, due 2013		10,700		10,700
Unsecured 1.30% bonds, due 2014		110,000		110,000
Unsecured 0.55% bonds, due 2016				10,000
Unsecured 0.66% bonds, due 2017				45,000
Unsecured 2.00% bonds, due 2018		16,300		16,300
Unsecured 2.07% bonds, due 2019		50,000		50,000
Unsecured 1.41% bonds, due 2022				10,000
Capital lease obligations:
Due 2011 to 2021, with interest rates ranging from 0.03% to 9.09% per annum		24,673
Due 2012 to 2026, with interest rates ranging from 0.03% to 8.74% per annum				49,754
Guarantee deposits received		17,718		16,691
		921,849		1,072,709
Less — Portion due within one year		109,614		310,483
		812,235		762,226

In March 2012, Sony executed a 1,365 million U.S. dollar unsecured bank loan with a group of lenders having six to ten year maturity terms in connection with acquiring Ericsson’s 50% equity interest in Sony Ericsson. This bank loan utilizes the Japan Bank for International Cooperation (“JBIC”) Facility, which was established to facilitate overseas mergers and acquisitions by Japanese companies as one of countermeasures against yen appreciation. Of the 1,365 million U.S. dollar loan, 60% or 819 million U.S. dollars is from the JBIC Facility and 40% or 546 million U.S. dollars is from private banks. The terms of this U.S. dollar loan agreement require accelerated repayment of the loan if Sony Corporation or its wholly-owned subsidiaries discontinue the business of mobile devices featuring telephone functionality.

There are no significant adverse debt covenants or cross-default provisions related to the above borrowings.

Aggregate amounts of annual maturities of long-term debt are as follows:

Fiscal year ending March 31	Yen in millions
2013		310,483
2014		135,487
2015		209,814
2016		77,391
2017		97,419
Later years		242,115
Total		1,072,709

At March 31, 2012, Sony had unused committed lines of credit amounting to 800,306 million yen and can generally borrow up to 180 days from the banks with whom Sony has committed line contracts. Furthermore, at March 31, 2012, Sony has commercial paper programs, the size of which was 746,570 million yen. Sony can issue commercial paper for a period generally not in excess of 270 days up to the size of the programs.