Sony 2003 Annual Report Download - page 103

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Consolidated Financial Information 2003
17
differ from the results that Sony Life discloses on a Japanese statutory basis.
Condensed Statements of Income Separating Out the Financial Services Segment (Unaudited)
The following schedule shows unaudited condensed statements of income for the Financial Services segment
and all other segments excluding Financial Services as well as condensed consolidated statements of income. This
presentation is not required under U.S. GAAP, which is used in Sony’s consolidated financial statements. However,
because the Financial Services segment is different in nature from Sony’s other segments, Sony believes that a
comparative presentation may be useful in understanding and analyzing Sony’s consolidated financial statements.
Transactions between the Financial Services segment and all other segments excluding Financial Services are
eliminated in the consolidated figures shown below.
(Yen in millions)
Financial Services
All other segments
excluding Financial
Services Consolidated
Year ended March 31 2002 2003 2002 2003 2002
2003
Financial Services revenue . . . . . . . . . . . . . 512,245 540,519 --483,313 512,641
Net sales and operating revenue . . . . . . . . - -7,102,369 6,971,737 7,094,945
6,960,992
512,245 540,519 7,102,369 6,971,737 7,578,258
7,473,633
Costs and expenses. . . . . . . . . . . . . . . . . . 490,111 517,181 6,989,446 6,808,635 7,443,627
7,288,193
Operating income . . . . . . . . . . . . . . . . . . . 22,134 23,338 112,923 163,102 134,631 185,440
Other income (expenses), net . . . . . . . . . . (1,861)
(
1,307
)
(40,421) 67,878 (41,856) 62,181
Income before income taxes . . . . . . . . . . . 20,273 22,031 72,502 230,980 92,775 247,621
Income taxes and other . . . . . . . . . . . . . . . 11,477 13,072 72,785 120,062 83,443 132,102
Cumulative effect of accounting changes. 4,305 -1,673 -5,978 -
Net income . . . . . . . . . . . . . . . . . . . . . . . . . 13
,
101 8
,
959 1
,
390 110
,
918 15
,
310 115
,
519
Other
During the fiscal year ended March 31, 2003, the Other segment was mainly comprised of the NACS, which
includes SCN, an Internet-related service business subsidiary operating mainly in Japan, an in-house oriented
information system service business and an IC card business, and an advertising agency business in Japan.
Sales for the fiscal year ended March 31, 2003 increased by 46.5 billion yen, or 22.8 percent, to 250.3 billion
yen, compared with the previous fiscal year. During the fiscal year ended March 31, 2003, 52 percent of sales in the
Other segment reflected intersegment transactions. In terms of profit performance, operating losses for the segment
increased from 16.6 billion yen to 32.0 billion yen.
During the fiscal year, sales for the segment increased because intersegment transactions increased primarily
due to an increase in sales at the advertising agency business in Japan due to its taking over the media buying for all
Sony Group companies in Japan, and at the in-house oriented information system service business, in addition to an
increase in sales at SCN. Regarding profit performance, losses were recorded at the NACS-related businesses and
the advertising agency business in Japan. In comparison with the previous fiscal year, segment losses increased
primarily due to an increase in expenses associated with the development of network technology intended to facilitate
new businesses in the broadband age and the write-off of professional-use video software in the professional-use