Sony 2005 Annual Report Download - page 100

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Sony Corporation 97
Total carrying amount of intangible assets having an indefinite
life comprise the following:
Dollars in
Yen in millions millions
March 31 2004 2005 2005
Trademarks . . . . . . . . . . . .
¥57,384 ¥57,195 $535
Distribution agreement . . . .
18,834 18,848 176
. . . . . . . . . . . . . . . . . . . . .
¥76,218 ¥76,043 $711
The changes in the carrying amount of goodwill by operating segment for the years ended March 31, 2004 and 2005 are as follows:
Yen in millions
Financial
Electronics Game Music Pictures Services Other Total
Balance at March 31, 2003 . . . . . . . . . . . . . . . . . .
¥53,179 ¥110,606 ¥(46,021 ¥78,697 — ¥1,624 ¥290,127
Goodwill acquired during year . . . . . . . . . . . . . . . . .
5,634 — 76 1,666 — 534 7,910
Impairment losses . . . . . . . . . . . . . . . . . . . . . . . . . .
(6,049) —————(6,049)
Other * . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(528) (244) (3,771) (9,574) — (1) (14,118)
Balance at March 31, 2004 . . . . . . . . . . . . . . . . .
52,236 110,362 42,326 70,789 — 2,157 277,870
Reallocated from Music segment to
Electronics segment . . . . . . . . . . . . . . . . . . . . .
12,329 — (12,329) ————
Goodwill acquired during year . . . . . . . . . . . . . . .
5,872 4,349 52 5,868 ¥441 2,069 18,651
Goodwill contributed to the Joint Venture
with Bertelsmann AG . . . . . . . . . . . . . . . . . . . . .
——(15,626) — — — (15,626)
Other * . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
378 29 1,281 1,277 — 63 3,028
Balance at March 31, 2005 . . . . . . . . . . . . . . . . .
¥70,815 ¥114,740 ¥(15,704 ¥77,934 ¥441 ¥4,289 ¥283,923
Dollars in millions
Financial
Electronics Game Music Pictures Services Other Total
Balance at March 31, 2004 . . . . . . . . . . . . . . . . . .
$488 $1,031 $396 $662 — $20 $2,597
Reallocated from Music segment to
Electronics segment . . . . . . . . . . . . . . . . . . . . . . .
116 — (116) ————
Goodwill acquired during year . . . . . . . . . . . . . . . .
55 41 1 54 $4 19 174
Goodwill contributed to the Joint Venture
with Bertelsmann AG . . . . . . . . . . . . . . . . . . . . . .
——(146) — — — (146)
Other *. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
301212 — 1 28
Balance at March 31, 2005 . . . . . . . . . . . . . . . . . .
$662 $1,072 $147 $728 $4 $40 $2,653
*Other consists of translation adjustments and reclassification to/from other accounts.
During the year ended March 31, 2004, Sony performed the
annual impairment test for goodwill and recorded an impairment
loss of ¥6,049 million in the Electronics segment. This impair-
ment charge reflected the overall decline in the fair value of a
subsidiary within the Electronics segment. The fair value of that
reporting unit was estimated principally using the expected
present value of future cash flows.
As discussed in Notes 6 and 25, as of August 1, 2004, Sony
and Bertelsmann AG combined their recorded music business in
a joint venture. In connection with the establishment of the joint
venture, assets contributed by Sony included ¥15,626 million
($146 million) of goodwill. In addition, the non-Japan based disc
manufacturing and physical distribution businesses, formerly
included within the Music segment, have been reclassified to the
Electronics segment and accordingly, Sony reallocated ¥12,329
million ($116 million) of goodwill relating to the non-Japan based
disc manufacturing and physical distribution business from the
Music segment to the Electronics segment.
11. Insurance-related accounts
Sony’s life and non-life insurance subsidiaries in Japan maintain
their accounting records as described in Note 2 in accordance
with the accounting principles and practices generally accepted
in Japan, which vary in some respects from U.S. GAAP.
Those differences are mainly that insurance acquisition costs
for life and non-life insurance are charged to income when
incurred in Japan whereas in the United States of America those
In addition to the amortizable and indefinite-lived intangible
assets shown in the above tables, intangible assets at March 31,
2004 and 2005 also include unrecognized prior service costs
totaling ¥21,376 million and ¥41 million ($0 million), respectively,
which were recorded under FAS No. 87 as discussed in Note 15.
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