Sony 2001 Annual Report Download - page 127

Download and view the complete annual report

Please find page 127 of the 2001 Sony annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 140

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140

Sony Corporation Annual Report 2001
125
20. Income taxes
Income before income taxes and income tax expense comprise the following:
Dollars in
Yen in millions millions
Year ended
Year ended March 31 March 31,
1999 2000 2001 2001
Income before income taxes:
Sony Corporation and subsidiaries in Japan . . . . . . . . . . . . . ¥203,944 ¥70,892 ¥158,987 $1,272
Foreign subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173,747 193,418 106,881 855
¥377,691 ¥264,310 ¥265,868 $2,127
Income taxes—Current:
Sony Corporation and subsidiaries in Japan . . . . . . . . . . . . . ¥85,970 ¥59,239 ¥89,708 $ 718
Foreign subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72,416 61,564 31,405 251
¥158,386 ¥120,803 ¥121,113 $ 969
Income taxes—Deferred:
Sony Corporation and subsidiaries in Japan . . . . . . . . . . . . . ¥16,433 ¥(17,977) ¥(106) $ (1)
Foreign subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,154 (8,182) (5,473) (44)
¥18,587 ¥(26,159) ¥(5,579) $ (45)
Sony is subject to a number of different income taxes. Due to a change in Japanese income tax regulations,
effective April 1, 1999, the statutory tax rate was reduced from 48% to 42% and such rate was used in calculating
the future expected tax effects of temporary differences as of March 31, 1999. The effect of the change in the tax
rate on the balance of deferred tax assets and liabilities reduced the net deferred tax liability and income tax
expense by approximately ¥13,400 million as of March 31, 1999.
Reconciliation of the differences between the statutory tax rate and the effective income tax rate is as follows:
Year ended March 31
1999 2000 2001
Statutory tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48.0% 42.0% 42.0%
Increase (reduction) in taxes resulting from:
Income tax credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1.3) (1.3) (1.7)
Valuation allowance recognized on current losses of subsidiaries . . . . . . . . . . . . 5.4 2.8 10.5
Decrease in deferred tax liabilities on
undistributed earnings of foreign subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . (2.8) (5.6) (6.5)
Changes in Japanese income tax rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3.5) — —
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.1 (2.1) (0.8)
Effective income tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46.9% 35.8% 43.5%