Sony 2003 Annual Report Download - page 220

Consolidated Financial Information 2003
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(2) EPS attributable to common stock:
Basic and diluted EPS as well as the number of shares in the following table have been adjusted to reflect the
two-for-one stock split that was completed on May 19, 2000. Reconciliation of the differences between basic
and diluted EPS for the years ended March 31, 2001, 2002 and 2003 is as follows:
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
Effect of dilutive securities:
Convertible bonds 2,417 – 2,398 20
Income before cumulative effect of
accounting changes allocated to the
common stock
for diluted EPS computation
¥123,644
¥9,381
¥118,046
$984
Thousands of shares
Weighted-average shares 913,932 918,462 919,706
Effect of dilutive securities:
Warrants 472 108 12
Convertible bonds 79,830 2,664 78,873
Weighted-average shares
for diluted EPS computation 994,234 921,234 998,591
Yen Dollars
Basic EPS ¥132.64 ¥10.21 ¥125.74 $1.05
Diluted EPS ¥124.36 ¥10.18 ¥118.21 $0.99
In accordance with FAS No. 128, “Earnings per Share”, the computation of diluted EPS for the years
ended March 31, 2001 and 2002 uses the same weighted-average shares used for the computation of
diluted income before cumulative effect of accounting changes per share, and reflects the effect of assumed
conversion of convertible bonds in diluted net income.
For the year ended March 31, 2002, 75,201 thousand shares of potential common stock upon the
conversion of convertible bonds were excluded from the computation of diluted EPS due to their antidilutive
effect.
Potential common stock upon the exercise of warrants and stock acquisition rights, which were excluded
from the computation of diluted EPS since they have an exercise price in excess of the average market value
of Sony’s common stock during the fiscal year, were 1,329 thousand shares, 2,665 thousand shares, and
4,141 thousand shares for the years ended March 31, 2001, 2002 and 2003, respectively.
Warrants and stock acquisition rights of subsidiary tracking stock for the years ended March 31, 2002 and
2003, which have a potentially dilutive effect by decreasing net income allocated to common stock, were
excluded from the computation of diluted EPS since they did not have a dilutive effect.