Sony 2001 Annual Report Download - page 71

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Sony Corporation Annual Report 2001
69
During the year, sales increased primarily due to an increase in the sales of Sony Trading International
Corporation, reflecting increases in product demand within the Electronics business. Regarding profit performance,
losses were recorded primarily from location-based entertainment businesses in Japan, the U.S., and Germany
and satellite distribution-related businesses in Japan. Regarding the location-based entertainment business,
losses decreased in the U.S. as a result of the devaluation of assets for an entertainment facility recorded in the
previous year, losses in Japan increased due to the devaluation of assets for an entertainment facility, and losses
in Germany increased due to expenses relating to the shutdown of an entertainment facility.
Other Income and Expenses
In consolidated results for the fiscal year ended March 31, 2001, other income increased by 21.4 billion yen, or
14.6%, to 167.7 billion yen, while other expenses increased by 21.9 billion yen, or 20.9%, to 127.1 billion yen,
compared with the previous year.
The increase in other income was primarily due to gains on sales of securities investments and other, net,
gains on issuance of stock by equity investees, and gains from the contribution of certain marketable investment
securities to employee retirement benefit trusts. Gain on sales of securities investments and other, net during the
year was 41.7 billion yen. This gain resulted primarily from the sale to Liberty Digital of 50% of the equity of
Game Show Network, a subsidiary that provides television programming services in the U.S exclusively dedicated
to interactive game playing and pre-recorded game shows; the sale of a small portion of the equity of a subsidiary
engaged in a television channel operation in India; and the sale of a subsidiary engaged in the in-flight enter-
tainment business in the U.S. On the other hand, gain on sales of securities investments and other, net in the
previous year was 28.1 billion yen, which included gains from the sales of certain investment securities. In addition,
other income during the year under review included 18.0 billion yen of gains on issuance of stock by equity
investees. These gains were primarily related to public offerings during the year by Crosswave Communications
Inc. which provides high-capacity/high-speed network services in Japan; Monex, Inc. which provides on-line
security trading services in Japan; and SKY Perfect Communications Inc. which provides satellite broadcasting
services in Japan (refer to Note 19 of Notes to Consolidated Financial Statements). Moreover, other income
during the year under review included 11.1 billion yen of gains from the contribution of certain marketable
investment securities held by Sony Corporation and its subsidiaries to employee retirement benefit trusts. Royalty
income increased from 21.7 billion yen in the previous year to 29.3 billion yen, primarily due to increases in
licensing revenues from optical disc and video signal compression technologies. Interest and dividends increased
from 17.7 billion yen in the previous year to 18.5 billion yen, primarily due to increase in interest received at
subsidiaries outside Japan. Other income was negatively impacted by a foreign exchange loss, net, that was
recorded during the year, compared with a foreign exchange gain, net, recorded in the previous year.