Sony 1997 Annual Report Download - page 59

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Changes in common stock and additional paid-in capital have resulted from the following:
Yen in millions
Number of Common Additional
shares stock paid-in capital
Balance at March 31, 1994 . . . . . . . . . . . . . . . . . . . . . . . . 373,728,323 ¥299,194 ¥440,845
Conversion of convertible debt . . . . . . . . . . . . . . . . . . . . . 183,167 395 396
Balance at March 31, 1995 . . . . . . . . . . . . . . . . . . . . . . . . 373,911,490 299,589 441,241
Conversion of convertible debt . . . . . . . . . . . . . . . . . . . . . 156,216 296 384
Common stock warrants. . . . . . . . . . . . . . . . . . . . . . . . . . . — — 110
Balance at March 31, 1996 . . . . . . . . . . . . . . . . . . . . . . . . 374,067,706 299,885 441,735
Exercise of stock purchase warrants . . . . . . . . . . . . . . . . . . 117,838 336 336
Conversion of convertible debt . . . . . . . . . . . . . . . . . . . . . 9,999,499 31,816 31,762
Common stock warrants. . . . . . . . . . . . . . . . . . . . . . . . . . . — — 200
Balance at March 31, 1997 . . . . . . . . . . . . . . . . . . . . . . . . 384,185,043 ¥332,037 ¥474,033
Dollars in thousands
Common Additional
stock paid-in capital
Balance at March 31, 1996 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,418,427 $3,562,379
Exercise of stock purchase warrants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,710 2,710
Conversion of convertible debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 256,581 256,145
Common stock warrants. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 1,613
Balance at March 31, 1997 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,677,718 $3,822,847
On November 20, 1991, the company made a free share distribution of 33,908,621 shares for which no
accounting entry is required in Japan. Had the distribution been accounted for in the manner adopted by
companies in the United States of America, ¥201,078 million ($1,621,597 thousand) would have been
transferred from retained earnings to the appropriate capital accounts.
Conversions of convertible debt into common stock are accounted for in accordance with the provisions of
the Japanese Commercial Code by crediting approximately one-half of the conversion proceeds to the com-
mon stock account and the remainder to the additional paid-in capital account.
The Japanese Commercial Code provides that an amount equal to at least 10% of cash dividends and other
distributions from retained earnings paid by the company and its Japanese subsidiaries be appropriated as a
legal reserve. No further appropriation is required when the legal reserve equals 25% of stated capital. The
amounts of statutory retained earnings of the parent company available for the payments of dividends to stock-
holders as of March 31, 1996 and 1997 were ¥490,265 million and ¥507,253 million ($4,090,750 thousand),
respectively. These amounts include cash dividends for the six-month periods ended March 31, 1996 and 1997,
respectively, which have been incorporated in the accompanying consolidated financial statements.
The appropriations of retained earnings for the year ended March 31, 1997, which have been incorporated
in the accompanying consolidated financial statements, will be proposed for approval at the general stock-
holders’ meeting to be held on June 27, 1997 and will be recorded in the statutory books of account, in
accordance with the Japanese Commercial Code, after stockholders’ approval.
An analysis of the changes in the cumulative translation adjustment is presented below:
Yen in millions Dollars in thousands
Year ended March 31 Year ended March 31,
1995 1996 1997 1997
Balance, beginning of year . . . . . . . . . . . . . . . . . ¥(335,703) ¥(411,167) ¥(302,503) $(2,439,540)
Aggregate translation adjustment for the year . . . (75,354) 114,461 127,705 1,029,879
Income taxes for the year allocated
to translation adjustment . . . . . . . . . . . . . . . . . (110) (5,797) (6,423) (51,799)
Balance, end of year . . . . . . . . . . . . . . . . . . . . . ¥(411,167) ¥(302,503) ¥(181,221) $(1,461,460)
15. Stockholders’
equity