Sony 2001 Annual Report Download - page 2

FINANCIAL HIGHLIGHTS
Sony Corporation and Consolidated Subsidiaries
Year ended March 31 Yen in millions Dollars in
except per share amounts and millions except
number of employees per share amounts
2000 2001 2001/2000 2001
FOR THE YEAR
Sales and operating revenue . . . . . . . . . . . . . . . . ¥6,686,661 ¥7,314,824 +9.4% $58,518
Operating income . . . . . . . . . . . . . . . . . . . . . . . . 223,204 225,346 +1.0 1,803
Income before income taxes . . . . . . . . . . . . . . . 264,310 265,868 +0.6 2,127
Income before cumulative effect of
accounting changes . . . . . . . . . . . . . . . . . . . . 121,835 121,227 -0.5 970
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121,835 16,754 -86.2 134
Per share data:
Income before cumulative effect of
accounting changes
–Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥6,6144.58 ¥7,3132.64 -8.3% $581.06
–Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131.70 124.36 -5.6 0.99
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . .
–Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144.58 18.33 -87.3 0.15
–Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131.70 19.28 -85.4 0.15
Cash dividends . . . . . . . . . . . . . . . . . . . . . . . . 25.00 25.00 0.20
AT YEAR-END
Stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . ¥2,182,906 ¥2,315,453 +6.1% $18,524
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,807,197 7,827,966 +15.0 62,624
Number of employees . . . . . . . . . . . . . . . . . . . . . 189,700 181,800
Notes: 1. U.S. dollar amounts have been translated from yen, for convenience only, at the rate of ¥125=U.S.$1, the approximate Tokyo foreign exchange
market rate as of March 30, 2001.
2. All per share data have been adjusted to reflect the two-for-one stock split that has been completed on May 19, 2000.
3. Cash dividends per share for the year ended March 31, 2001 include a dividend which is subject to approval of the Ordinary General Meeting of
Shareholders to be held on June 21, 2001.
4. In June 2000, the Accounting Standards Executive Committee of the American Institute of Certified Public Accountants issued Statement of
Position (“SOP”) 00-2, “Accounting by Producers or Distributors of Films.” The provision of SOP 00-2 is effective for fiscal years starting on or after
December 16, 2000 with early application encouraged. Sony adopted SOP 00-2 in the first quarter ended June 30, 2000, effective as of April 1,
2000. As a result, Sony’s operating income, income before income taxes, and net income for the year ended March 31, 2001 each decreased by
approximately ¥28.5 billion ($228 million). Additionally, Sony’s net income for the fiscal year ended March 31, 2001 decreased by ¥101.7 billion
($813 million), reflecting a one-time non-cash cumulative effect adjustment in the income statement directly above the caption of “net income” for
a change in accounting principle.
5. On January 5, 2000, the acquisition transactions by way of exchanges of stock, whereby Sony Music Entertainment (Japan) Inc., Sony Chemicals
Corporation, and Sony Precision Technology Inc. became wholly-owned subsidiaries of Sony Corporation, were completed. Intangible assets and
goodwill realized from these transactions are being amortized over their useful lives of up to a maximum of 20 years. Such amortization is recorded
in selling, general and administrative expenses. As a result, during the fiscal year ended March 31, 2001, operating income and income before
income taxes each decreased by approximately ¥16.7 billion ($134 million), and net income decreased by approximately ¥13.3 billion ($106
million), and during the fiscal year ended March 31, 2000, operating income and income before income taxes each decreased by approximately
¥4.2 billion, and net income decreased by approximately ¥3.3 billion.
6. In December 1999, the Securities and Exchange Commission issued Staff Accounting Bulletin (“SAB”) No. 101, “Revenue Recognition in Financial
Statements.” Sony adopted SAB No. 101 in the fourth quarter ended March 31, 2001, effective as of April 1, 2000. As a result, a one-time non-cash
cumulative effect adjustment of ¥2.8 billion ($23 million) was recorded in the income statement directly above the caption of “net income” for a
change in accounting principle. The accounting change did not have a material effect on Sony’s consolidated financial results.
7. Effective with the year ended March 31, 2001, net loss on sale, disposal or impairment of long-lived assets, which was previously included in other
income/expense and shown below operating income, is included in selling, general and administrative expense and shown above operating income.
As a result, operating income for the year ended March 31, 2000 has been restated to conform to the presentation for the fiscal year ended March
31, 2001.
Percent change
Cautionary Statement with Respect to Forward–Looking Statements
Statements made in this annual report with respect to Sony’s current plans, estimates, strategies and beliefs and other statements that are
not historical facts are forward–looking statements about the future performance of Sony. These statements are based on management’s
assumptions and beliefs in light of the information currently available to it and therefore you should not place undue reliance on them. Sony
cautions you that a number of important factors could cause actual results to differ materially from those discussed in the forward–looking
statements. Such factors include, but are not limited to (i) general economic conditions in Sony’s markets, particularly levels of consumer
spending; (ii) exchange rates, particularly between the yen and the U.S. dollar, euro, and other currencies in which Sony makes significant
sales or in which Sony’s assets and liabilities are denominated; and (iii) Sony’s ability to continue to design and develop and win acceptance
of its products and services, which are offered in highly competitive markets characterized by continual new product introductions, rapid
development in technology (particularly in the Electronics business), and subjective and changing consumer preferences (particularly in the
Game, Music, and Pictures businesses).
Sony Corporation Annual Report 2001