Sony 2003 Annual Report Download - page 119

Consolidated Financial Information 2003
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149.5 billion yen, or 10.3 percent, to 1,600.5 billion yen. Among long-term liabilities, accrued pension and severance
costs increased 195.8 billion yen, or 67.1 percent, to 487.4 billion yen. The increase was primarily due to an increase
in benefit obligations due to a review of discount rates and other factors used to calculate benefit obligations, as well
as an additional minimum pension liability that was recorded due to decreases in the current value of pension plan
assets held by Sony Corporation, reflecting sluggish stock market conditions in Japan during the fiscal year.
Long-term liabilities on March 31, 2003 in the Financial Services segment increased by 245.4 billion yen, or
12.8 percent, to 2,168.5 billion yen. This was due to an increase in insurance-in-force in the life insurance business
which resulted in an increase in future insurance policy benefits and other of 234.0 billion yen, or 13.9 percent, to
1,914.4 billion yen.
Total Interest-bearing Debt
Total interest-bearing debt (the total of short-term borrowings and long-term debt) on March 31, 2003 decreased
by 226.5 billion yen, or 19.0 percent, to 966.2 billion yen, compared with the previous fiscal year-end.
Total interest-bearing debt on March 31, 2003 in all segments excluding the Financial Services segment
decreased by 213.9 billion yen, or 18.7 percent, to 929.6 billion yen. As a result of repayment of debt including 1.5
billion U.S. dollars of U.S. dollar notes redeemed on March 4, 2003, long-term debt decreased by 10.6 billion yen, or
1.3 percent, to 802.9 billion yen and short-term debt decreased by 203.3 billion yen, or 61.6 percent, to 126.7 billion
yen, compared with the previous fiscal year-end.
Stockholders’ Equity
Stockholders’ equity on March 31, 2003 decreased by 89.5 billion yen, or 3.8 percent, to 2,280.9 billion yen
compared with the previous fiscal year-end. Stockholders’ equity decreased because the amount of stockholders’
equity that was deducted for minimum pension liability adjustments increased from 72.0 billion yen at the end of the
previous fiscal year to 182.7 billion yen, reflecting sluggish stock market conditions in Japan during the fiscal year.
Also, the amount of stockholders’ equity that was deducted for foreign currency translation adjustments increased
from 225.8 billion yen at the end of the previous fiscal year to 302.2 billion yen, due to the appreciation of the yen
against the U.S. dollar. Stockholders’ equity on March 31, 2003 in all segments excluding the Financial Services
segment decreased by 94.2 billion yen, or 4.2 percent, to 2,138.1 billion yen compared with the previous fiscal
year-end. Stockholders’ equity on March 31, 2003 in the Financial Services segment increased by 3.5 billion yen, or
1.1 percent, to 321.7 billion yen compared with the previous fiscal year-end. The ratio of stockholders’ equity to total
assets decreased from 29.0 percent to 27.2 percent.
Condensed Balance Sheets Separating Out the Financial Services Segment (Unaudited)
The following schedule shows an unaudited condensed balance sheet for the Financial Services segment and
all other segments excluding the Financial Services as well as the condensed consolidated balance sheet. This