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This excerpt taken from the SNE 20-F filed Jun 23, 2009. Restructuring
In the fiscal year ended March 31, 2008, Sony recorded
restructuring charges of 47.3 billion yen, an increase from
the 38.8 billion yen recorded in the previous fiscal
year. The primary restructuring activities were in
the Electronics segment. Of the total
47.3 billion yen incurred, Sony recorded 12.6 billion
yen in personnel-related costs.
Table of Contents
Restructuring charges in the Electronics segment amounted to
45.6 billion yen for the fiscal year ended March 31,
2008, compared with 37.4 billion yen in the previous fiscal
year.
Sony made the decision to exit the LCD rear-projection
television business in the fiscal year ended March 31, 2008
due to the shrinking market for these products. In
association with this action, Sony recorded 19.7 billion
yen of restructuring charges consisting mainly of inventory
write downs. Of this amount, 11.9 billion yen
was recorded in cost of sales and 6.7 billion yen was
recorded in loss on sale, disposal or impairment of assets, net
in the consolidated statements of income. This phase
of the restructuring program was completed in the fiscal year
ended March 31, 2008, and the remaining liability balance
as of March 31, 2008 was 1.6 billion yen, which was
paid during the fiscal year ended March 31, 2009.
In addition to the restructuring efforts described above, Sony
has undergone several headcount reduction programs to further
reduce operating costs within its Electronics
segment. As a result of these programs, Sony recorded
restructuring charges totaling 11.0 billion yen for the
fiscal year ended March 31, 2008, and these charges were
included in selling, general and administrative expenses in the
consolidated statements of income. The remaining
liability balance as of March 31, 2008 was 9.4 billion
yen and was paid throughout the fiscal year ended March 31,
2009.
This excerpt taken from the SNE 20-F filed Jun 23, 2008. Restructuring
In the fiscal year ended March 31, 2007, Sony recorded
restructuring charges of 38.8 billion yen, a decrease from
the 138.7 billion yen recorded in the previous fiscal year.
The primary restructuring activities were in the Electronics
segment.
Of the total 38.8 billion yen, Sony recorded
10.8 billion yen in personnel-related costs including early
retirement programs.
Restructuring charges in the Electronics segment for the fiscal
year ended March 31, 2007 were 37.4 billion yen,
compared to 125.8 billion yen in the previous fiscal year.
Due to the worldwide market shrinkage as a result of demand
shift from CRT televisions to LCD and plasma televisions, Sony
has been implementing a worldwide plan to rationalize CRT and
CRT television production facilities and has been downsizing its
business over several years. As a part of this restructuring
program, in the fiscal year ended March 31, 2007, Sony
recorded a non-cash impairment charge of 1.7 billion yen
for CRT television manufacturing facilities located in the
U.S. The impairment charge was calculated as the difference
between the carrying value of the asset and the present value of
estimated future cash flows. The charge was recorded in loss on
sale, disposal or impairment of assets, net in the consolidated
statements of income. While continuing to manufacture and sell
CRT televisions in countries and territories where demand
remains, Sony is actively shifting its focus in those areas to
LCD televisions. As a result, Sony planned to cease
manufacturing CRTs by March 2008, after it has stockpiled a
sufficient quantity for future use.
As a result of the contraction of the European rear-projection
television market, Sony decided to discontinue the production of
LCD rear-projection televisions in Europe. In association with
this action, Sony recorded inventory writedowns and charges for
supplier claims of 3.8 billion yen for the fiscal year
ended March 31, 2007, with most of these expenses recorded
as cost of sales in the consolidated statements of income.
Table of Contents
In addition to the above restructuring efforts, Sony undertook
headcount reduction programs to further reduce operating costs
in the Electronics segment. As a result of these programs, Sony
recorded restructuring charges of 9.7 billion yen for the
fiscal year ended March 31, 2007, and these charges were
included in selling, general and administrative expenses in the
consolidated statements of income. The remaining liability
balance as of March 31, 2007 was 7.2 billion yen and
was fully paid as of March 31, 2008.
For more detailed information about restructuring, please refer
to Note 17 of the notes to the consolidated financial
statements.
This excerpt taken from the SNE 20-F filed Jun 22, 2007. Restructuring
In the fiscal year ended March 31, 2006, Sony recorded
restructuring charges of 138.7 billion yen, an increase
from the 90.0 billion yen recorded in the previous fiscal
year. The primary restructuring activities were in the
Electronics segment and All Other.
Of the total 138.7 billion yen, Sony recorded
48.3 billion yen in personnel-related costs. This expense
was incurred because 5,700 people, mainly in Japan, the
U.S. and Western Europe, left Sony primarily through early
retirement programs.
For more detailed information about restructuring, please refer
to Note 17 of Notes to the Consolidated Financial
Statements.
Electronics
Restructuring charges in the Electronics segment for the fiscal
year ended March 31, 2006 were 125.8 billion yen,
compared to 83.2 billion yen in the previous fiscal year.
Due to the worldwide market shrinkage and demand shift from CRT
televisions to plasma and LCD panel televisions, Sony has been
implementing a worldwide plan to rationalize CRT and CRT
television production facilities and has been downsizing its
business over several years. In the fiscal year ended
March 31, 2006, as part of this restructuring program, Sony
recorded a non-cash impairment charge of 25.5 billion yen
for CRT TV display manufacturing facilities located in the
U.S. The impairment charge was calculated as the difference
between the carrying value of the asset group and the present
value of estimated future cash flows. The charge was recorded in
loss on sale, disposal or impairment of assets, net in the
consolidated statements of income.
In addition to the above restructuring efforts, Sony undertook
several headcount reduction programs to further reduce operating
costs in the Electronics segment. As a result of these programs,
Sony recorded restructuring charges of 45.1 billion yen for
the fiscal year ended March 31, 2006, and these charges
were included in selling, general and administrative expenses in
the consolidated statements of income. These staff reductions
were achieved worldwide mostly through the implementation of
early retirement programs. The remaining liability balance as of
March 31, 2006 was 19.4 billion yen and will be paid
through the fiscal year ending March 31, 2007. Sony will
continue to seek the appropriate headcount level to optimize the
workforce in the Electronics segment.
All
Other
Restructuring charges within All Other for the fiscal year ended
March 31, 2006 were 10.4 billion yen, compared to
5.3 billion yen recorded in the previous fiscal year. The
main component of the restructuring charges recorded during the
fiscal year ended March 31, 2006 was an 8.5 billion
yen asset impairment write-down associated with the sale of the
Metreon, a U.S. entertainment complex.
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