Sony 2003 Annual Report Download - page 117

Consolidated Financial Information 2003
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investment risks into account in order to disperse associated risks, and structuring its asset portfolio to ensure steady
returns from investments. In addition, the company is careful to match the duration of its asset portfolio with the
duration of liabilities resulting from customer deposits, in order to ensure that significant discrepancies do not occur.
Government bonds and corporate bonds constitute a majority of Sony Bank’s current portfolio. The company invests
in various types of government and corporate bonds in many countries, companies and industries, to diversify
associated risks. To safeguard its assets the company does not lend its assets to corporations or invest in equity
securities.
Tangible fixed assets (after deduction of accumulated depreciation)
Tangible fixed assets on March 31, 2003 decreased by 133.3 billion yen, or 9.4 percent, to 1,278.4 billion yen,
compared with the previous fiscal year-end.
Tangible fixed assets on March 31, 2003 in all segments excluding the Financial Services segment decreased
by 129.2 billion yen, or 9.5 percent, to 1,232.4 billion yen, compared with the previous fiscal year-end. The decrease
was due to a reduced level of capital expenditures, primarily in the Electronics segment, during the fiscal year.
Tangible fixed assets on March 31, 2003 in the Financial Services segment decreased by 4.1 billion yen, or 8.2
percent, to 46.0 billion yen, compared with the previous fiscal year-end.
Capital expenditures (additions to fixed assets) for the fiscal year ended March 31, 2003 decreased by 65.5
billion yen, or 20.0 percent, to 261.2 billion yen compared with the previous fiscal year. The largest decreases were in
the Electronics segment, where capital expenditures declined by 49.7 billion yen, or 22.6 percent year on year, to
170.3 billion yen, and in the Financial Services segment, where capital expenditures declined by 12.4 billion yen, or
77.2 percent, to 3.7 billion yen. Capital expenditures in the Electronics segment decreased year on year because
investments were reduced in response to the deterioration of the market environment, and because large
investments related to the construction of device manufacturing facilities, principally for semiconductors, were
recorded in the previous fiscal year. Capital expenditures in the Financial Services segment decreased year on year
because investments related to the start-up of Sony Bank were recorded in the previous fiscal year. On the other
hand, capital expenditures in the Other segment increased by 10.2 billion yen, or 195.7 percent, to 15.4 billion yen
because large investments related to the development of network technology intended to facilitate new businesses in
the broadband age were recorded in this fiscal year.
Capital expenditures in the Game segment decreased by 6.8 billion yen, or 14.3 percent, to 41.0 billion yen;
capital expenditures in the Pictures segment decreased by 4.4 billion yen, or 37.9 percent, to 7.1 billion yen and
capital expenditures in the Music segment increased by 0.3 billion yen, or 1.6 percent, to 21.9 billion yen.
Other Assets
Other assets on March 31, 2003 increased by 230.0 billion yen, or 16.1 percent, to 1,656.1 billion yen,
compared with the previous fiscal year-end.