Sony 2001 Annual Report Download - page 108

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Sony Corporation Annual Report 2001
106
As described in Note 2, Sony adopted SOP 00-2 for the year ended March 31, 2001. As a result, film cost
balances at March 31, 2001 are presented under the new accounting rule, while those at March 31, 2000 are
presented in accordance with the old accounting rule, FAS No. 53.
Sony estimates that approximately 90% of unamortized costs of released films (excluding amounts allocated to
acquired film libraries) at March 31, 2001 will be amortized within the next three years. Approximately ¥113,766
million ($910 million) of released film costs are expected to be amortized during the next twelve months. As of
March 31, 2001, unamortized acquired film libraries of approximately ¥29,092 million ($233 million) remain to be
amortized on a straight-line basis over an average of the remaining life of 9 years. Approximately ¥84,508 million
($676 million) of accrued participation liabilities are expected to be paid during the next twelve months.
7. Investments in and transactions with affiliated companies
Sony accounts for its investments in affiliated companies over which Sony has significant influence or ownership of
more than 20% but less than or equal to 50% under the equity method. Such investments include but are not
limited to Sony’s interest in ST Liquid Crystal Display Corporation (50%), The Columbia House Company (50%),
Loews Cineplex Entertainment Corporation (“Loews”) (39.5%), Telemundo Group (39.5%), BE-ST Bellevuestrasse
Development GmbH & Co. First Real Estate KG, Berlin (50%), and Crosswave Communications Inc. (23.9%).
Summarized combined financial information that is based on information provided by equity investees is
shown below:
Dollars in
Yen in millions millions
March 31 March 31,
2000 2001 2001
Current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥217,419 ¥209,419 $1,675
Property, plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 263,895 164,076 1,313
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207,338 146,519 1,172
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥688,652 ¥520,014 $4,160
Current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥288,838 ¥215,966 $1,728
Long-term liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 228,938 153,876 1,231
Stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170,876 150,172 1,201
Total liabilities and stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . ¥688,652 ¥520,014 $4,160
Number of companies at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 86
Dollars in
Yen in millions millions
Year ended
Year ended March 31 March 31,
1999 2000 2001 2001
Sales and revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥459,168 ¥503,186 ¥418,213 $3,346
Gross profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146,678 135,828 134,388 1,075
Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (36,862) (89,207) (65,229) (522)
During the year ended March 31, 2000, additional costs relating to shortened amortization periods and an
impairment of deferred direct-response advertising and member acquisition expenses in The Columbia House
Company and the devaluation of real estate for sale in BE-ST Bellevuestrasse Development GmbH & Co. First Real
Estate KG, Berlin, which develops and operates commercial- and other-use facility, negatively affected the equity in
net losses of affiliated companies by approximately ¥7,632 million and ¥5,154 million, respectively.