Sony 2005 Annual Report Download - page 119

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116 Sony Corporation
The changes in the accrued restructuring charges for the years ended March 31, 2003, 2004 and 2005 are as follows:
Yen in millions
Employee Non-cash Other
termination write-downs associated
benefits and disposals costs Total
Balance at March 31, 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥ 6,243 — ¥ 13,637 ¥ 19,880
Restructuring costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
46,953 ¥ 42,768 16,530 106,251
Non-cash charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
—(42,240) — (42,240)
Cash payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(38,548) — (23,172) (61,720)
Adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
136 (528) (1,208) (1,600)
Balance at March 31, 2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14,784 — 5,787 20,571
Restructuring costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
133,367 19,170 15,554 168,091
Non-cash charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
—(19,170) — (19,170)
Cash payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(124,674) — (13,686) (138,360)
Adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,173 0 333 1,506
Balance at March 31, 2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
24,650 — 7,988 32,638
Restructuring costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
53,563 25,564 10,836 89,963
Non-cash charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
—(25,564) — (25,564)
Cash payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(61,523) — (10,427) (71,950)
Adjustments* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1,705) — (3,096) (4,801)
Balance at March 31, 2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥ 14,985 — ¥ 5,301 ¥ 20,286
Dollars in millions
Employee Non-cash Other
termination write-downs associated
benefits and disposals costs Total
Balance at March 31, 2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ 230 — $ 75 $ 305
Restructuring costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
501 $ 239 101 841
Non-cash charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
—(239) — (239)
Cash payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(575) — (97) (672)
Adjustments* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(16) — (29) (45)
Balance at March 31, 2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ 140 — $ 50 $ 190
*Adjustments primarily consist of the transfer of the accrued restructuring charges to SONY BMG, a joint venture with Bertelsmann AG (Note 6).
19. Research and development costs, advertising
costs and shipping and handling costs
(1) Research and development costs:
Research and development costs charged to cost of sales for the
years ended March 31, 2003, 2004 and 2005 were ¥443,128
million, ¥514,483 million and ¥502,008 million ($4,692 million),
respectively.
(2) Advertising costs:
Advertising costs included in selling, general and administrative
expenses for the years ended March 31, 2003, 2004 and 2005
were ¥442,741 million, ¥421,433 million and ¥359,661 million
($3,361 million), respectively.
(3) Shipping and handling costs:
Shipping and handling costs for finished goods included in selling,
general and administrative expenses for the years ended March
31, 2003, 2004 and 2005 were ¥98,195 million, ¥106,590 million
and ¥107,983 million ($1,009 million), respectively, which included
the internal transportation costs of finished goods.
20. Gain on change in interest in subsidiaries and
equity investees
In January 2004, FeliCa Networks, Inc., whose field of business
is Mobile FeliCa IC chip development and production/sales
licensing and operation of the Mobile FeliCa service platform,
issued 115,000 shares at ¥100,000 per share with a total value
of ¥11,500 million in connection with its private offering. As a
result of this issuance, Sony recorded a gain of ¥3,364 million
and provided deferred taxes on this gain. This issuance reduced
Sony’s ownership interest from 100% to 60%.
In addition to the above transaction, for the year ended March
31, 2004, Sony recognized ¥1,506 million of other gains on
change in interest in subsidiaries and equity investees resulting
in total gains of ¥4,870 million.
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