Sony 2003 Annual Report Download - page 179

Consolidated Financial Information 2003
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Dividends from affiliated companies accounted for under the equity method for the years ended March 31,
2001, 2002 and 2003 were ¥2,764 million, ¥3,065 million and ¥2,002 million ($17 million), respectively.
7. Accounts receivable securitization program
In the United States of America, Sony set up an accounts receivable securitization program whereby Sony can
sell interests in up to $900 million of eligible trade accounts receivable, as defined. Through this program,
Sony can securitize and sell a percentage of undivided interest in that pool of receivables to several multi-seller
commercial paper conduits owned and operated by banks. Sony can sell receivables in which the agreed
upon original due dates are no more than 90 days after the invoice dates. The value assigned to undivided
interests retained in securitized trade receivables is based on the relative fair values of the interest retained
and sold in the securitization. Sony has assumed that the fair value of the retained interest is equivalent to its
carrying value as the receivables are short-term in nature, high quality and have appropriate reserves for bad
debt incidence. The initial sale of the receivables was in October 2001 and the maximum amount funded was
¥109,060 million for the fiscal year ended March 31, 2002. There was no sale of receivables for the fiscal year
ended March 31, 2003. There were no outstanding amounts due at March 31, 2002 and 2003 relating to the
existing undivided interests in the pool of receivables that had been sold. Losses from these transactions were
insignificant.