Sony 2003 Annual Report Download - page 115

Consolidated Financial Information 2003
29
and future cash flows of the issuer of the security. Accordingly, it is possible that investments in Sony’s portfolio that
have had a decline in value that the Company currently believes to be temporary may be determined to be
other-than-temporary in the future based on the Company’s evaluation of additional information such as continued
poor operating results, future broad declines in value of worldwide equity markets and the effect of world wide interest
rate fluctuations. As a result, unrealized losses recorded for investments may be recognized into income in future
periods.
The following table contains available for sale and held to maturity securities, breaking out the unrealized gains
and losses by investment category.
Yen in Millions
March 31, 2003
Cost
Unrealized
gain
Unrealized
Loss
Fair market
Value
Financial Services Business:
Available for sale
Debt securities
Sony Life ････････････････････････････････････････････ 1,301,734 36,073 8,231 1,329,576
Other････････････････････････････････････････････････ 248,483 1,164 199 249,448
Equity securities
Sony Life ････････････････････････････････････････････ 23,337 1,710 2,603 22,444
Other････････････････････････････････････････････････ 2,662 1,710 4 4,368
Held to maturity
Debt securities
Sony Life ････････････････････････････････････････････ -- - -
Other････････････････････････････････････････････････ 17,322 656 1 17,977
Total Financial Services ････････････････････････････ 1,593,538 41,313 11,038 1,623,813
Non-Financial Services:
Available for sale securities ･･･････････････････････････････ 37,860 4,802 1,723 40,939
Held to maturity securities･････････････････････････････････ 831 16 0 847
Total Non-Financial Services････････････････････････ 38,691 4,818 1,723 41,786
Consolidated 1,632,229 46,131 12,761 1,665,599
The most significant portion of these unrealized losses relate to investments held by Sony Life. Sony Life
principally invests in debt securities in various industries. Almost all of these securities were rated “BBB” or better by
Standard & Poor’s, Moody’s or others. As of March 31, 2003, Sony Life had debt and equity securities with 8.2 billion
yen and 2.6 billion yen, respectively, of gross unrealized losses. Of the unrealized loss amounts recorded by Sony
Life, approximately 80 percent relate to securities being in an unrealized loss position of greater than 6 months.
These unrealized losses related to numerous investments, with no single investment being in a material unrealized
loss position. In addition, there was no individual security with unrealized losses that met the test discussed above for
impairment as the declines in value were observed to be small both in amounts and percentage, and therefore, the
decline in value for those investments was still determined to be temporary in nature. The percentage of
noninvestment grade securities held by Sony Life represents approximately 5 percent of Sony Life’s total investment
portfolio, while the percentage of unrealized losses that relate to those noninvestment grade securities is
approximately 19 percent of Sony Life’s total unrealized losses as of March 31, 2003.
For fixed maturity securities with unrecognized losses held by Sony Life as of March 31, 2003 (8.2 billion yen),