Sony 2003 Annual Report Download - page 219

Consolidated Financial Information 2003
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carryforwards. Although realization is not assured, management believes it is more likely than not that all
of the deferred tax assets, less valuation allowance, will be realized. The amount of such net deferred tax
assets considered realizable, however, could be changed in the near term if estimates of future taxable
income during the carryforward period are changed.
22. Reconciliation of the differences between basic and diluted net income per share (“EPS”)
(1) Income before cumulative effect of accounting changes and net income allocated to each class
of stock:
Year ended
Year ended March 31 March 31,
2001 2002 2003 2003
Yen in millions
Dollars
in millions
Income before cumulative effect of
accounting changes allocated to the
common stock ¥121,227 ¥9,381 ¥115,648 $964
Income before cumulative effect of
accounting changes allocated to the
subsidiary tracking stock
– (49) (129) (1)
Income before cumulative effect of
accounting changes ¥121,227 ¥9,332 ¥115,519 $963
Net income allocated to the
common stock ¥16,754 ¥15,359 ¥115,648 $964
Net income allocated to the
subsidiary tracking stock
– (49) (129) (1)
Net income ¥16,754 ¥15,310 ¥115,519 $963
As discussed in Note 2, the earnings allocated to the subsidiary tracking stock are determined based on the
subsidiary tracking stock holders’ economic interest.
The statutory retained earnings of SCN (the subsidiary tracking stock entity as discussed in Note 16)
available for dividends to the shareholders were ¥209 million as of March 31, 2002, which decreased by
¥374 million during the year ended March 31, 2002 after the date of issuance.
The accumulated losses of SCN were ¥779 million ($6 million) as of March 31, 2003. The accumulated
losses increased by ¥989 million ($8 million) during the year ended March 31, 2003.