Sony 2003 Annual Report Download - page 201

Consolidated Financial Information 2003
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(2) Common stock:
Changes in the number of shares of common stock issued and outstanding during the years ended March 31,
2001, 2002 and 2003 have resulted from the following:
Number of
shares
Balance at March 31, 2000 453,639,163
Stock split 453,639,163
Exercise of stock purchase warrants 111,209
Conversion of convertible bonds 12,145,253
Stock issued under exchange offerings 82,346
Balance at March 31, 2001 919,617,134
Exercise of stock purchase warrants 8,301
Conversion of convertible bonds 118,920
Balance at March 31, 2002 919,744,355
Conversion of convertible bonds 138,330
Stock issued under exchange offering 2,502,491
Balance at March 31, 2003 922,385,176
At March 31, 2003, 84,652,963 shares of common stock would be issued upon conversion or exercise of
all convertible bonds, warrants and stock acquisition rights outstanding.
On October 1, 2002, Sony Corporation implemented a share exchange as a result of which Aiwa Co., Ltd.
become a wholly-owned subsidiary. As a result of this share exchange, Sony Corporation issued 2,502,491
new shares, the minority interest in Aiwa Co., Ltd. was eliminated from the balance sheet, and additional
paid-in capital increased ¥15,791 million ($132 million). On December 1, 2002, Sony Corporation absorbed
Aiwa Co., Ltd. by merger. The merger had no effect on Sony’s consolidated financial statements.
On May 19, 2000, Sony Corporation completed a two-for-one stock split. The number of shares issued
was 453,639,163 shares. There was no increase in the common stock account because the new shares
were distributed from the portion of previously issued shares accounted for as excess of par value in the
common stock account in accordance with the Japanese Commercial Code.
On November 20, 1991, Sony Corporation made a free share distribution of 33,908,621 shares in ratios
of one share for each ten shares held for which no accounting entry was required in Japan. Had the
distribution been accounted for in the manner adopted by companies in the United States of America,
¥201,078 million would have been transferred from retained earnings to the appropriate capital accounts.
This has been the only free distribution of common stock where no accounting entry was required in Japan.
Conversions of convertible bonds into common stock are accounted for in accordance with the provisions
of the Japanese Commercial Code by crediting approximately one-half of the conversion proceeds to the
common stock account and the remainder to the additional paid-in capital account.
The Ordinary General Meeting of Shareholders held on June 27, 1997 authorized Sony Corporation,
pursuant to the Japanese regulations, to acquire and retire up to a total not exceeding 30 million outstanding
shares of its common stock with its profit, whenever deemed necessary by the Board of Directors in view of
general economic conditions, Sony’s business performance and financial condition and other factors.